Things to think about?
Try using the J Curve Theory for all your Special Projects Under Development (S.P.U.D.). This will quickly prioritise projects that have the most value and their time frame.
We all get millions of ideas which we want to implement in a day but you don’t end up implementing one of them! Projects are long term and short term and it is important to prioritise them. Do not overload your practice or over capitalise.
Every project/practice is based on the ’J curve‘ theory, i.e. there are higher cash burn rates at the initial stages of any idea that is being executed. It is important to budget for it and monitor the spending. Avoid having too many J curve projects, with a maximum of three major projects every year. The practice should do the following:
- Set projects
- Prioritise and plan. Most small projects take two months, and major projects 6 – 18 months
It is important to note, there is a tipping point when insufficient cash or loans are available to make a project viable. It is important to know when to quit.
How to keep track of all your great ideas Read on…
Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service
David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)
After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.
You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.