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Operations

3 Things Contractors Need to Know About HIPAA Compliance

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The healthcare industry uses its fair share of contractors at all levels. Using outside staff and services is a matter of convenience, and it allows the healthcare facility to focus on taking care of patients. It’s important that contractors understand that they are held to the same rules and regulations as the facility, including HIPAA. While incidental viewing isn’t something that’s punishable, leaving patient information out in the open is. Every contractor from IT to laundry services needs to follow HIPAA at all times in order to avoid fines. Following are three things contractors need to know to stay within HIPAA compliance.

What Information is Protected by HIPAA?

Protected health information, or PHI, is information that cannot be released without consent of the patient. Personal identification that includes the first and last name, address, phone number, and Social Security information falls under the definition of PHI. Conversations between physicians and patient are confidential as are prescribing and financial records.

The only people who are allowed to view PHI is the physician, nurses, and office staff. The information cannot be released to anyone outside of the facility unless permission has been granted by the patient. Any unauthorized release of information can subject the offender and the facility to fines.

Defining Who Is and Isn’t a Contractor

The general rule of thumb for defining a contractor is someone who cannot be controlled by their employer. That is, the employer does not take out payroll deductions and the contractor can come and go as they please. The other definition of a contractor is an outside agency that’s been retained to perform a service. Services can include cleaning of the facility, laundry services, document shredding, and more.

People who are paid a regular wage, have payroll deductions, and work on a pre-defined schedule are employees. They lose the freedom to come and go but gain defined benefits in the form of paying taxes and Social Security.

Both contractor and employee have to follow HIPAA at all times. It’s doubly important for a contractor to pay attention to HIPAA as they have more freedom to come and go, and can be considered a higher risk than an employee. A data breach that’s attributable to the employee or contractor comes with the same results: fines and potential for prosecution.

Creating a Plan of Action to Prevent Accidents and Leaks

The key to preventing problems is education. Make sure employees are familiar with HIPAA, and if not, make plans to educate them. Make sure that contractors are educated in HIPAA before working with them. If a contractor isn’t versed in HIPAA, don’t work with them until they can prove they are. The same goes with IT services and electronic health records. Always work with contractors who know their duties before they step foot in the facility.

Patient privacy is a serious issue, and one that everyone needs to keep on top of regardless of whether they’re a contractor or employee. Always stay on top of compliance protocols in order to prevent fines and protect sensitive information.

Categories
Operations

Increasing Sales Through A POS System

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Your goal as a business owner is to keep your bottom line in the black, which means you need to increase sales and reduce operating expenses. Although there are still small enterprises whose owners love the idea of doing things manually, most stores today use one type of point of sale (POS) system. Depending on your cash position, you can either rent or buy a point of sale system that is suited to your type of business.

Automation

Using a POS system has many advantages over the traditional method of just using a manual cash register. With a POS system you can automate most tasks, which helps in reducing your overhead costs as you only need to hire staff for tasks that cannot be done automatically, such as serving customers and manning the checkout counter. You do not have to assign a staff to collate sales reports because you can generate that automatically, freeing your staff from the additional task and enable him or her to attend to customers. An integrated POS system is also capable of inventory management and cash reconciliation.

Next generation software

Moreover, most POS systems today are next generation software, thereby there are more features and innovations worked into the program to make the software more efficient and responsive. These additional features are meant to help retailers to further improve and raise their sales and net income through increasing their geographical reach and sales volume. Built-in as well is better customer service.

How a POS system increases sales

Extends your geographical reach – with its new features, you can integrate an ecommerce website into your POS system. This allows your customers to shop anytime and outside of your regular operating hours. Your customer base will increase because you are not limited to serving just the customers in your locality who can reach your physical store but those who live somewhere else. You can program the POS system to simplify your online checkout, which help greatly in preventing online customers from abandoning their shopping carts.

Improves your customer relations management (CRM) – a POS system allows you to provide better service to your customers, from always having their favorite products in stock, to reminding cashiers to upsell or provide you with customer information like birthdays and special occasions – things that will increase customer patronage and loyalty.

Use it as a marketing tool – you can build a customer database using a POS system and generate customer details that you can use for mass email or mass marketing campaigns. If you have newsletters, you can have an opt-in on your website and send newsletters automatically to customers who opted in to your service. You can send emails announcing exclusive discounts, special offers, anniversary sale or new products. These are marketing tools to encourage your customers to spend more money in your store.

Create customized receipts – when you have a POS system you can use a feature of the receipt printer to add a customized message at the bottom of the receipt. It can be a coupon, a discount voucher for the next purchase, an invitation to check out your website or answer a customer survey.

Serves as sales prompts – the flexibility, responsiveness and additional features of a POS system allows retailers to set it up with sales prompts. These are short reminders to cashiers to promote loyalty cards, add-ons to the purchase or announce particular or new products, all geared towards increasing sales for the day or to encourage customers to visit the store frequently.

When you’ve chosen your POS system carefully, it will become a critical part of your retail business operation. Not only will your customer base widen, a good POS system will turn you into  a very effective marketer. Ensure that your POS is well implemented as it will result in increased sales volume, lower marketing expenditure and a smoother business flow process.

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Entrepreneurship

Entrepreneurial Meanderings: How to Focus on a Niche

entrepreneurial-meanderings-how-to-focus-on-a-niche

You’ve probably heard the catch-phrase “the riches are in the niches” in the context of online marketing, but it’s also true for a traditional career.

If you’re someone who enjoys talking to people and helping them with their needs, then you should consider a professional career along those lines. Additionally, if you’re good with numbers, then you might find a career in the financial industry both emotionally and financially rewarding.

One niche career that might suit you well is becoming a mortgage loan officer. Let’s take a closer look at the type of work it involves, how to get fully credentialed, and how to grow your own business through some astute marketing.

What Does A Mortgage Loan Officer Do?

As a mortgage loan officer, you will assist your clients to get a loan for their home or business. After you assess your client’s need and inform them about loan requirements, you will research the best loans for them. You can niche down your business even more by becoming an expert in commercial or consumer loans. Before you create your own mortgage business, you should work for a credit union, mortgage company, or commercial bank to get experience. While the average salary is about $75,000, you can acquire the knowledge and experience to earn a six-figure income.

A Quick Guide to Starting a Career as a Mortgage Loan Officer

Here is a step-by-step guide to becoming a mortgage loan officer.

Step #1. Earn your bachelor’s degree in business, finance, or economics. Your degree should be able to help you analyze businesses’ finances, read financial statements, and understand basic accounting principles. Your coursework should include economic and business statistics, finance, mathematics, and accounting. Also take courses that can help improve your interpersonal skills like psychology, mass communications, and public speaking.

Step #2. Get Experience. You may not be given a job as a mortgage loan officer fresh out of college, and may have to work your way up the ladder of a banking career. Once you have some experience under your belt, you can then start pursuing loan origination work.

Step #3: Acquire Job Training. The banking or financial institution you work for will offer a variety of job-training opportunities. Be sure to take full advantage of company-sponsored training, whether it is learning how to use a new type of software or getting skilled in underwriting.

Step 4: Obtain Licensure. You must get licensed as a mortgage loan originator (MLO) to become a mortgage loan officer. This will require that you do 20 hours of coursework and pass an exam. The exam itself will cover a national component as well as one for the state you live in. Finally, you will need to pass a credit and background check.

Step 5: Become Certified. Technically speaking, certification is not necessary, but in practical terms, it can be helpful for securing employment. Both the Mortgage Bankers Association and the American Bankers Association offer certifications. For instance, the American Bankers Association offers certification as a certified trust and financial advisor (CTFA), a certified lender business banker (CLBB), and a certified financial marketing professional (CFMP).

3 Ways to Grow Your Business

As a mortgage loan officer, you need to get good at marketing your business, mastering lead generation by understanding buyer motivation. You should market your business even if you work for a financial institution that has a marketing department as this will help you make more sales.

Here are 3 ways to generate more leads:

  1. Deploy direct marketing. 

Create an email list that educates your subscribers about the mortgage business. You can build this email list by adding prospects and clients you meet in the course of business or by advertising your newsletter.

What should you send in these emails?

Here are some ideas:

  • White Paper.A link to a White Paper pdf. that will help educate your subscribers about some important things they might want to know about mortgages.
  • Case studies. A case study will describe how a person got their mortgage. It covers everything they went through — the process, pricing, and challenges. This will give you subscribers an idea of what deals can be financed.
  • Articles. Send out articles on timely topics related to the mortgage business.
  1. Give talks.

You can give talks based on what people would like to know about getting a mortgage. You can start by giving talks at service clubs like Lions or Rotary, and when you get good, you might be invited to speak at conferences.

  1. Start Networking.

By joining various organizations, from Meetups to Chamber of Commerce, you will be able to mingle with business people and tell them about what you do and how you can help them.

Although the minimum requirement is a high school diploma or equivalent, most employers will require you to have a bachelor’s degree in economics, finance or business. You will be required to get a license, and you have the option of additional certification. While licensure is compulsory, certification is voluntary. When applying for a job, experience is not necessary, but preference is given to those with two to five years of experience. High earning mortgage loan officers are thoroughly knowledgeable about mortgages, loan origination, and common policies of financial institutions. In addition, they are good decision-makers, have excellent interpersonal skills, and are great communicators.

Categories
Entrepreneurship

Considerations to Make When Starting Beverage Entrepreneurship

 considerations-to-make-when-starting-beverage-entrepreneurship

The difference between failure and success in the beverage business is often tons of hard work, vision and, most importantly, the right decisions based on the right advice.

And while your passion for beverage entrepreneurship may trend one direction or another, what really matters is how you leverage practical know-how and existing advice in your journey and make it work for you.

On that account, mentioned below are the considerations to make when you consider beverage entrepreneurship. You’ll see that some of them are simple mottos, but they can have a significant positive impact on your business.

1. Protect Your Manufacturing Investment

If you’re planning to set up a manufacturing facility to create and deliver beverages, make sure you do something to protect your investment. Remember, your machinery will depreciate if you don’t take measures to safeguard it from wear and tear.

Fortunately, wear blocks and other similar products are available to protect your investment via steel backing plates and other materials that get zero wear when experiencing abrasive flow. Such products manage the composite in severe conditions that are known to cause composite cracking. With options like these, you can make your units shatterproof. Therefore, you don’t have to worry about your machinery undergoing physical damage. Also, external casts will safeguard internal components from dust.

2. Give a Thought to Scaling

From the start, adopt the mindset that your idea could really work. This would help you take measures for scaling when they matter the most. In other words, do branding based on your potential to scale from the very first day. And instead of counting on co-packing facilities, be manufacturing-oriented, and get everyone on board when it comes to production from the early days.

And as you give a deep thought to scaling, avoid being a me-too. The thing is, the beverage market is highly competitive, so you won’t be able to survive in the long run by copying others. Therefore, do something creative, something different. Don’t try to fit an existing idea in your brand identity. Unique branding kicks in at scale, often leaving entrepreneurs surprised.

3. Know About Competition & Looming Challenges

It’s likely that a majority of new beverage companies will pop up as you start your venture. The small-to-medium sized beverage manufacturers and distributors will be your competition, not the large industry giants. Research about them to make sure that you’re able to employ sustainable practices to support business continuity. One thing you can do is keep innovative tactics for the future, and scrape along with your competitors for a year or so.

Also, analyze the challenges you’re going to face in this market. For instance, distribution can be a menace. Limited shelf space, crowded market, and consolidation among beverage distributors will give you headaches. Furthermore, you won’t be able to expand easily without hiring someone to sell on your behalf as it was doable in the past. A decent marketing plan needs to be in place if you want to survive in the industry.

To conclude, you need to take the following considerations into account and develop a roadmap to get a decent payback on your efforts. The key lies in planning ahead, reducing the cost of scaling, and falling in love with your product (the main selling point).

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Finance & Capital

5 Items Your Books Need to Balance Before a Capital Raise

5-items-your-books-need-to-balance-before-a-capital-raise

Unless you are an accountant, the last thing on your mind is probably bookkeeping.  However, whether you like bookkeeping or not, it is important to the health of your business.  This is especially true if you are looking for a business loan, as you will need to ensure that the following 5 items are balanced before you can receive a capital raise.  So if you are thinking about how to get a working capital loan, then you need to read this article.

1.  Taxes Payable

We must pay our fair share, but the tax laws exist for the benefit of small business owners.  I realize some of you are doing a double take after reading the previous sentence, but it is true.  The tax code helps small business owners to offset the investments they have made in their business in the form of tax credits.

While filing taxes is cumbersome, a good accountant will be able to guide you through the process.  If taxes aren’t done correctly, then you are leaving money on the table and this gets me to the flip side of the tax equation, which is failing to properly account for sales tax.

Many small business owners see this as free money, but don’t fall into this trap.  You are collecting sales tax on behalf of the government and they are expecting to get paid.  Furthermore, tax liability could sink your chances to raise the capital you are looking for.

2.  Payroll

Your employees want to get paid on time and investors want to make sure that your books properly account for payroll.  This includes salary, taxes, and benefits.  Failure to balance your payroll accounts may not only undermine your chances of getting the funding you seek, but it could lead to issues with your employees and a bad reputation as an employer.  Don’t let this happen to you, get a payroll system in place and use it.  Doing so will give you more transparency and control of this important line item.

3.  Accounts Receivable

Up to this point, we have talked about two important liability accounts, but now I want to focus on one of the most important items on the asset side of your business’ balance sheet – Accounts Receivable.

In the simplest terms, your Accounts Receivable is the money your customers owe you for the goods or services they bought from your company.  One key to raising capital is to not only make sure that this account balances, but to make sure that account aging and overdue payments are not an issue.

Most lenders or investors will want to know the percentage of receivables which fall in the 30, 60, and 90-day periods.  This is called account aging and the longer the period, the higher the risk.  Not only will you need alternative sources of working capital, but the risk of nonpayment goes up. In fact, managing Accounts Receivable is such a problem that President Obama launched an initiative in 2014 to ensure small businesses were paid on time.

4.  Shareholder Loans

Shareholder loans are a big red flag to potential investors and lenders.  Either they will see it as a balance sheet manipulation or it is a sign that the business is losing a tremendous amount of money and the business owners are drowning while trying to keep it afloat.

Even the IRS is looking at these loans, and tax courts have found that repayment of shareholder loans could be subject to employment taxes.  While shareholder loans serve legitimate purposes, it is best to work with your accountant to make sure you are navigating the myriad of issues created by carrying shareholder loans on your books.

5.  Financial Ratios

The outcome of key financial ratios is directly tied to the financial health of your business.  Some of the most common ratios used to analyze a small business include current ratio, gross profit ratio, net profit margin, accounts receivable turnover, and if you are seeking a loan – debt-service coverage ratio.

While the current ratio looks at total current assets (mainly cash and receivables) to total current liabilities (accounts payable, taxes, short-term debt).  The debt-service coverage ratio looks at the amount of free cash available to service debt (principal, interest, and fees) over a given period.  In terms of a loan or a line of credit, this ratio is one of the key performance indicators for a lender as it will help to determine how much a lender will give you.

As you can see, having your books in order will keep you from getting into trouble with the tax man.  In addition, it will ensure you have a good reputation with employees and will help lenders and investors to feel confident in your business.