quizzam 4

things to consider when starting your own business?

things to consider when starting your own business?

private practice are you going to accept insurance? how are you gonna set your rate?
cancellation policy?
structure of your business ?

one of the first things when starting your own business?

side hustle? help others? want to retire early? assist other RD?s? want flexibility

then you make your financial plan

creating a financial plan (2)

Need to first know your start up costs• Consider the current money situation to start the business-do you have cash orwill you need a loan• What is the plan when sales don't happen one month?• Need a contingency plan .• Find your break-even point

tracking metrics

Leading vs lagging indicators

lagging indicator

tells you what already happened

leading indicator

help predict future outcomes

examples of lagging indicator

revenue and profit

examples of leading indicator

help predict the future outcomes, customer satisfication, subscribers, followers, downloads

what contributes or drives revenue in your business

# of patient visits
# of doctors office visits # of social media posts
podcast downloads
courses sold

then equate that to how much i need to sell

budgeting for your business

consider all expenses that will incur in a year

use bank and credit card statements to help

which are monthly quartley

check with an accountant regarding taxes and write offs

keep all receipts

three phases or stages of your busienss

young business
growing business
flourishing business

young business (5)

try to keep your expenses to minimum

don't pay for what you don't need

track expenses in an excel spreadsheet

you are doing most of the work on your own rather than paying somoene

youre selling, invoice it, collect. the money, tracking income and expenses only

growing business

quickbooks for accounting

sstarting looking into. key performance indicators (KPIs)

outsourcing (what do you enjoy vs what you don't enjoy)

hiring who

indepdent contractor or w=2 employee

what benefiits will you offer?

with a w-2

they are on your payroll, and you're paying their taxes

floursihiing business

your role transitions from working onthe business and not in the business

syystems in place = more automation

inveseting in your business

paying someone else to do things

schedued time to look at finances and the big ppicture overview

establishing the bset team

investments such as owning real estate vs renting space

investing in your employee

investing in your business

putting money into your leadership role and into pushing the busienss to next level

business. coach
nutrition practice network

self - care

1. Which of the following is an essential consideration when creating a financial plan for your business?

identifying your startup costs and evaluating your current financial situation
Setting your rates without understanding your target market
Focusing only on revenue generation without planning for expenses.
Avoiding the establishment of a cancellation or refund policy.

identifying your startup costs and evaluating your current financial situation

2. What is the primary difference between leading and lagging indicators in business metrics?

Leading indicators help predict future outcomes, while lagging indicators tell you what has already happened.
Lagging indicators are harder to identify than leading indicators.
Both leading and lagging indicators measure the same outcomes, but in different time frames.
Lagging indicators predict future performance, while leading indicators report on past performance.

Leading indicators help predict future outcomes, while lagging indicators tell you what has already happened.

To achieve a revenue goal of $120,000 with each program priced at $2,500, how many programs must be sold per month?

4
2
8
16

4

4. When budgeting for your business, which of the following is NOT recommended as a practice?

Consider all expenses that will incur over the year.
Rely solely on verbal agreements for expense tracking.
Consult with an accountant regarding taxes and potential write-offs.
Use bank and credit card statements to help categorize expenses.

Correct! Rely solely on verbal agreements for expense tracking.

5. As a business transitions from a young business to a flourishing business, which of the following practices is emphasized for growth and efficiency?

Implementing systems for automation and focusing on the big picture.
Doing most of the work yourself and minimizing expenses.
Avoiding hiring help and maintaining all responsibilities independently.
Solely tracking income and expenses without considering investments.

Implementing systems for automation and focusing on the big picture.

steps in setting billing charge rates

step 1: set your target salary
step 2: determine paid leave benefits
step 3: adjust pay for leave
step 4: determine other benefits
step 5: adjust pay for benefits
step 6: final pay rate

step 1: set your target salary

how much would you like to make each year?

how much are you worth? (rdn salary calculator)

determine paid leave benefits

public holiday (10-12 days)
annual leave (vacation, 20 days)

sick leave (10 days)

miscellaneous ( funeral, jury, fmla)

professional development

total

step 3: adjust pay for leave

rate for 50,000$ actual working hours
adjust rate

consiuder adjusting for billable hours

new rate

step 4: determine other benefits

insurance, medical, denta, life, disability,

401 K or retirement accounts

other expenses: computer, paper, mileage, internet, phone, malpractice, taxes

step 5: adjust pay for benefits

insurance

other expenses

taxes 28%.

total additional rate=

step 6: final pay rate

final rate =

check going rates in area, adjust as needed

what is a budget

organizedp lan of operation, specififed perioid of time, forecasts activity and income, determine expenses, determine disposition of other funds
an estimate of overall financial position at the end of the period

one of the most important documents of an organization

budgeting

budgeting is central to

to the planning and control cycle of any organization

4 major components of budgeting

strategic planning, planning, implementation, controlling

strategic planning

identifying an organizations mission, goal, and strategy to. best position itself for the future

mission statement

a broad enduing statement of its vision and purpose

a statement identifies

unique attributes, why it exists, what it hopes to achive

as part of strategic planning you want to look at

external and internal environment

external environemtn

economic, social, political, regulatory, physical, labor markets

two divisions of internal environement

tangible vs intangible

tangible factors

financing, staff, services

iintangible factors

history, reputation, strength of board

regular planning to identify

goals, objectives, tasks, activities, resources needed

short term planning

marketing/productionn
control. structure
financing structure

overal big picture flow

strategy (mission, enviornement, goaks and objecives )

tactics and operations

budgets.

implementing activities

process of. creating invidual. budgets

- often roll. up to service line budgets

- feed into the. overall organzational budget

two aspects to consider of creating budgets

revenue gathering cost centers

non revenue gathering cost centers

revenue gathering cost centers

historical trends, market projections, revised fee schedules, gross revenue expected

non revenue gathering cost centers

Present only projected costs
Budget rolled into administration

(IT, don't. generate revenue, but provide important service)

how to create budget for foodservice organizations (6)

forecast sales (include flexibiliyt)

analysis of F&B cost percentages

payroll projections

other controllable expenses - itemized or % of sales?

fixed costs

contingency plans

controlling activities

provide guidance and feedback to keep the organization within. its approved. budget.

tools vary

monthly reports
expenditures against budgets
financial. performance.

Budgets do not need to be monitored for variances.

t/f

false

Static budgets use a _____________________ level of activity.

Low
High
Static
Flexible

static

Flexible budgets accommodate for multiple levels of activities.t/f

true

A program budget is an extension of the __________________
.Line-item budget
Zero-based budget
Line-category budget
Line-ending budget

.Line-item budget

Budgeting is rarely needed for established organizations. t/f

false

The authoritarian approach is often called ____________________.

Monopolistic practices
Bottom-up strategizing
Top-down budgeting
Top-down spending

Top-down budgeting

After the cost of labor, the next largest cost is the cost of supplies. t/f

true

Cash budgets display all of the organization's projected cash inflows and outflows. t/f

true

A capital budget summarizes the major __________________ for the year.

Costs
Purchases
Income
Variances

purchases

Short-term plans primarily include:

Production
All of these
Control
Financing

all of these

5 different dimensions of budgeting

participation

budget. model

budget detail

budget forecast

budget modifications

participation in budgeting

authoritarian to participatory

authoritarian approach.

top. down budgeting

all aspects of budgeting concentrated in. top management.

budget. dictated. down from management throughout the. organzation

participatory approach.

top down bottom up.

guidance is given from upper. mannagement

department heads and service line managers develop budgets

budgets then approved by upper management

advantages to participatory.

shared understanding, cooperation and. competition, clarified roles and responsiblites, mmotivation, cost awareness.

disadvantages to particiipatory

loss of control, time consuming, high resource use, disappointment

incremental - decremental budgeting

begins with what. already exists, slight increase, no change, or slight decrease

changes can be same across the board or differential

zero base budgeting

AKA ZBB• Continually asks the need and level of funding for eachdepartment• Why does the program/department exist?• What will result in changing it's level of funding?• Departments prepare budget package includingoptions for various levels of funding• Management chooses from the budget packages tobuild the budget

three levels of budget detail

line item (least amount of detail, lists only revenues and expenses by. category).

program (extension of line item budget, list. revenues and expenses by program)

performance (extension of the. program budget, list revenues. and expenses by line item for each program or service, adds. performance. measures)

annual static

multi year flexible, forecast 3-5 years in advance

rolling budgets

regulalry updated and extended multiyear forecast

static budget

forecasts a single level of activity

flexible budgeet

forecasts for various levels of activity

budget modification

criteria established for modifying budgets

dollar amount

moving funds from one category to another

need for modification caused by

nurse shortage (requests to increase nursing salaries)

mission statement defintion

a statement that guides the organization by identifying the unique attributes o f the organization, why it. exists, and what it hopes to achieve. some organizations divide these attributes between a vision statement and a mission statement

implementing activities definition

the process of creating these individual budgets, which then get rolled up into service-line budgets, and eventually the overall organizational budget

operating budget

comprises the revenue budget and the expense budget

types of business ownership

sole proprietorship and limited liability corporation (LLC)

Sole Proprietorship

A business owned by one person, no distinction between u and business

LLC

wall between your personal assets and your business assets

NPI

National Provider Identifier , NPI Number, a unique health identifier created for each health care provider, used to identify providers in HIPAA transactions, no fee for NPI

two NPI entity types

1 - individuals
2 - organizations

MNT covered by medicare

diabetes and non dialysis kidney disease, three hours of MNT the initial year of referral, and up to two hours of MNT For subsequent years

credentialing with an insurance company

Being credentialed with insurance means that a healthcare provider has been affiliated with an insurance company and can accept third-party reimbursement for their services

To be credential with an insurance company allows you to expand your client base, enhances
visibility, and legitimize your practice within the health care community. To become
credentialed you must apply through the CAQH Provider Data portal where you will receive
your profile, after which you receive a personal CAQH number.

MNT benefits from insurance companies

Insurance companies often cover Medical Nutrition Therapy (MNT) for specific health conditions, such as diabetes, kidney disease, and heart disease. However, coverage varies widely by plan and policy, so it's important to check your particular policy

MNT number

97802 - mnt
97803 - reassement
97804 - group

length of units for billing

For CPT® codes 97802 and 97803, providers bill for a single 15-minute unit for visits lasting between 8 and 23 minute

1 unit > 8 minutes < 23 minutes = 15 minutes

2 unit > 23 minutes < 38 minutes = 30 minutes

3 unit > 38 minutes < 53 minutes = 45 minutes

4 unit > 53 minutes < 68 minutes = 1 hour