April 28, 2025 • 58 mins
In today’s episode, we’re sharing exciting updates from The Briones Group and answering real questions from homecare agency owners looking to grow and strengthen their businesses. Whether you’re just starting out or scaling your agency, these insights are designed to help you navigate your next steps with confidence. If you find today’s conversation helpful, be sure to subscribe, leave us a review, and let us know what topics you’d like us to cover next! To learn more about how The Briones Group can support your growth journey, visit www.thebrionesgroup.com.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:34):
All right, welcome everybody. I'm just getting this shared shared
to the group. Welcome anyone joining us. All right, let's
take a look here. Okay, so it's twelve o'clock and
(00:59):
as promised, here we are. We are going live. I'm
going to talk about a few things. So today's live.
The agenda is going to simply be gonna you know,
we're going to talk about some company updates. Then we're
gonna go over a couple of questions that were submitted
(01:26):
through Messenger over the last week or so. I did
put a post in the Facebook group, but we haven't
done one of these lives in so long. I'm really
not terribly surprised didn't get much feedback. So we and
the questions are as follows. Question one is does it
make sense to open a home care agency with a
(01:47):
business partner? Question number two is how much should I
pay caregivers? You know, if I'm running a shortcase? And
question number three is, you know, I just want to
buy an agency that's already got clients. You know, what
should I look for in the agency besides? Okay, so
(02:12):
the for those of you that don't know, get into
what EBITA is during the live stream, when we get
to that question. All right, So here we are. Let's
take a look here, only get some of my notes
up on the screen and give people a moment to
(02:34):
join in. If you are joining in, you know, please
don't be shy. Feel free to say hello, and you know,
let us know you're watching you leave a comment, say hi,
give us a thumbs up, and like, if you are
watching the replay of this, whether on our Facebook page
(02:56):
or on YouTube, you know, again, feel free two go
ahead and you know, give us a thumbs up. Don't
forget to subscribe to the channel if you are watching
it on YouTube, and if you're watching this on you know,
(03:17):
some other platform, you know, feel free to you know,
leave a comment below and let us know what you're thinking.
All right, so let's go ahead and get started. Now
that we are that, we're ready to go. A couple
of company updates. So for those of you, as I
(03:37):
mentioned a moment ago, we have not been posting much.
We have not been posting much lately. I believe we
have not been actively posting, you know, for a few
months now. We for those of you that do follow
us and our members of the Facebook group, you know,
we've been actively making posts again, giving know tips and
(04:00):
things like that. We are also making a push towards,
you know, getting back to being more active answering questions,
and we're going to go back to doing these live
sessions like we used to now. For those of you
that have been part of the group for a while
or have followed followed the YouTube channel for a while,
we used to post videos weekly, either directly to YouTube
(04:25):
and you know, or do a live session in Facebook
group and then post that. We're going back to that.
We're going back to the format of bringing you guys
more content, you know, as time goes on, you know,
we're going to be giving We're we're going to be
(04:46):
doing the Facebook live sessions again weekly. We're setting up
a schedule for that now so that uh, the expected
start date is. Let me give a take a look
here my calendar what I have set for that will
all be taking place effective. That will be effective the
(05:13):
week of the fourteenth. I'm not sure that's the week
of August fourteenth, twenty twenty three. So whenever you're watching this,
you know, keep that in mind. You know, if you're
watching this after the fourteenth, then you'll already see a
schedule up somewhere as to what this is going to be. Now,
for those of you watching in Facebook group, you know
(05:36):
we we do appreciate, we do appreciate your time, and
we appreciate you, you know, joining us. So here's here's
where my question to you is, leave a comment wherever
it is. If you're watching this on Facebook, or if
you're wanting this on LinkedIn or or Twitter or YouTube.
(05:58):
Wherever you're watching this, let us know in the comment
section what day of the week would you prefer that
we do this. Our schedule used to be alternating Wednesdays
and Saturdays. Okay, so we would either do it if
we would do it on a Wednesday one week, the
following week would be on a Saturday, and that was
(06:18):
that used to be our routine for doing this.
Speaker 2 (06:23):
Now, if if you're looking.
Speaker 1 (06:27):
For something else, or if something else would be more
convenient to you, let us know in the common section.
Typically we like to do these in the afternoon, either
at noon or one pm Eastern Standard time. This way
people that are on the West coast can also join
in and watch the live sessions. So that that is
(06:50):
the first of our company updates. So you're going to
start seeing us a lot more and we're going to
start where we're pretty much back. So now as an explanation,
what happened, Well, a couple of things happened as to
why we stopped doing these videos and even this video,
I might break it up into two parts to let
(07:11):
people know. This way people could get to the content faster.
If nothing else, the replay of this will be timestamped
on YouTube. Okay, So back to the why. The reason
why is last December we won an award where we
went out to Las Vegas for the Health two point
(07:31):
zero conference. Right around the same time, something that I
wasn't mentioning is that we started a large contract with
home care agency where we were brought in, you know,
to come in and fix operations and marketing and all
of this hands on stuff. All right, So this is
part of the services that we do. It's not a
(07:52):
service that I advertise a lot on social media. It
is something that I usually only worked with select people
at a given moment, and that's that's where the contract was.
Speaker 2 (08:05):
Okay, so we came in.
Speaker 1 (08:09):
Yeah, I sometimes wonder if I want to do a
case study on this, but you know, the issue is
the agency owner hired us to come in to revamp
their scheduling, to their recruitment models, you know, to work
with them on getting them marketing up and implementing other
(08:29):
things just to bring order back to an agency that
was with chaos. And then at the end of the
six months, we gave control back to the owner. So
the end result of that, and I said, when we started,
they we essentially increased their revenue by about twenty five
thousand a month, and we also improved their top line
(08:52):
net revenue from about a eight percent net and we
brought them up to about a twenty seven percent net
by the end of the six months. You know, a
lot of things went into play on that, but as
you can imagine, that was a very time consuming process
on top of taking care of our other clients as well,
(09:12):
So that left us very little time for being as
active on social media as I normally like to be.
And that contract is over, So the the.
Speaker 2 (09:26):
Whole issue is with that.
Speaker 1 (09:27):
What it really comes down to is, apart from having
done my work as contracted with my client, it also
taught me a lot of lessons about my own business,
and some lessons that I hadn't quite realized is the
importance of maintaining a social media presence all right, which
(09:48):
is you know, part of what we go over in
our marketing course, you know, but it really hit home
as to how much it can impact potential growth.
Speaker 2 (09:59):
So one of.
Speaker 1 (09:59):
The things that we will be doing is, like I said,
we're going back to the social being on top of
social media. We've implemented some new tools and policies internally
so that we don't drop the ball again, and we
will be doing these videos live. Then keep a lookout
either in the description below or into the Facebook group.
(10:20):
If you're not part of the Facebook group and you're
watching the replay of this, there will be a link
in the description box as to how to join. But
we will be putting out a form where people can
submit questions for the weekly broadcast. Also, we will be
giving we will be going back to what we used
to do, and that will be giving people the opportunity
(10:44):
to actually join us live. So essentially we'll be doing
live strategy sessions with home care agency owners in the group.
For those who want to participate, those hold tremendous value
and it'll be a one on one learning experience and
so you'll essentially get what other people pay a lot
(11:04):
of money for in order to have the opportunity to
come in. As long as we agree to do it
on a live session, there will be much shorter than
a full strategy session. Typically they're about thirty to forty
minutes long. Okay, So that is our that is our
(11:26):
updates for now, well the reasons why and everything else.
The next update that we're going to talk about, Okay,
next thing we're going to talk about is a couple
of updates to our service offering. All right, let's come
into here. Okay, let me go ahead and share my screen.
(11:56):
All right, So if you go to our website at
the Brionas group, you will you will see that there's
a couple of changes that are going on that are
going on here.
Speaker 2 (12:10):
One.
Speaker 1 (12:10):
Let me bring out my pointer so that we can
get a better idea.
Speaker 2 (12:14):
Here.
Speaker 1 (12:17):
The website pretty much looks the same, just that some
of the tabs are different, all right. And there will
be cosmetic changes to the website coming in the very
near future, all right, just because we've updated some of
our services. So the first thing I want to point out,
if you guys want to talk and find out how
(12:39):
we can help, please feel free to click here and
book your discovery call. You know, it's a thirty minute call.
We can see if we're a good fit for each other.
You can ask more questions about some of the services
that we offer, all right. So the biggest change for
us is here. It's the homecare owner's corner where we've
(12:59):
included some things such as an e learning platform, and
that's going to probably be the biggest thing we're talking
about right now, all right, So you can feel free
to watch the video. This is the course introduction, so
you guys can come in take a look see what
it is. We're very transparent on pricing this class in
(13:20):
six point fifty right, and it isn't an e course.
Speaker 2 (13:25):
That will help you understand and.
Speaker 1 (13:26):
How to how to optimize and analyze your territory on
your own, of course. You know, we we always do
welcome people to reach out to us, and we do
this service for new people, you know, for agencies, whether
you're a brand new agency starting out or you're a
more seasoned agency and you just need to have a
(13:49):
review and a refresher as to what's actually going on
demographically in your territory. But we'll talk about that another time.
And then there's also a free course on understanding your
monthly break even.
Speaker 2 (14:07):
All right.
Speaker 1 (14:07):
So this we're gonna show you what's on the inside
of these here momentarily. But this is probably the most
important number in your home care business, all right. So
what I mean by that is a lot of people
don't understand what these numbers mean, okay, in relation to
(14:29):
their home care agency. So you have two major milestones
that you need to reach. Monthly break even is the
one that lets you sleep at night.
Speaker 2 (14:40):
Okay.
Speaker 1 (14:41):
That's when you know that the business is no longer
costing you anything out of your pocket.
Speaker 2 (14:48):
Okay.
Speaker 1 (14:49):
This is why we put this course up. This is
it comes with a lot of tools, and we're gonna
go over it here momentarily.
Speaker 2 (14:57):
Okay.
Speaker 1 (14:58):
So let's take a look at the free course and
what the training is and what it comes to, all right.
So this is a free course, all right, Please keep
that in mind. And so it talks a little bit
about what the about what what is the monthly break even?
(15:19):
There is a video involved in it, all right, So
let me turn off the volume here all right, and
as as you can see, we go over a monthly
break even calculator spreadsheet. This, like I said, It will
help you understand and figure out what your numbers are yours,
not someone else's, not what Facebook tells you they should be.
(15:42):
These are the most common expenses found in home care,
and they you know, when you register and you sign
up and everything, you'll be able to go. You'll get
this spreadsheet. It's right down here, you know, under the
downloadable resources, all right, and you'll be able to actually
(16:05):
get this all up and going.
Speaker 2 (16:07):
All right. So not only will this.
Speaker 1 (16:10):
Tell you what the what your total is for your
monthly break even number, but it will also tell you,
based on what you're billing and based on how much
you're paying your caregivers, how many billable hours you actually
need in order to break even month over month. Look,
there's always a lot of focus on how many clients
(16:31):
I have. I'll tell you the reality, nobody really cares. Okay,
this is a harsh thing to say, and I understand that.
But if you if at the end of the day,
the only thing that matters is how many hours are
you billing and once you've built those hours, how much
money is being left over?
Speaker 2 (16:51):
All right?
Speaker 1 (16:51):
What are you putting in your pocket once you hit
the monthly break even? I said monthly break even. Let's
sleep well at night. You'll have a clear understanding as
to what the reality is about what your business is
going through. And once you hit that monthly break even number,
anything beyond that is when you start making profit. You'll
you'll actually be surprised as to how low that number
(17:15):
that actually is, like how many, how few billable hours
you actually need to hit that hit that number every month?
Speaker 2 (17:23):
All right?
Speaker 1 (17:24):
So that's that there. Again, I'm going to be putting
links to all of this in the description below, all right.
And this course, again I cannot express it enough. It
is one hundred percent free, okay.
Speaker 2 (17:39):
All right.
Speaker 1 (17:42):
The next course that we're going to talk about a
little bit more detail is the Home Care Territory Optimization Class.
Speaker 2 (17:50):
All right.
Speaker 1 (17:50):
This one is a paid course, as you can see.
And this course it's Marketing one oh one.
Speaker 2 (17:56):
All right.
Speaker 1 (17:57):
We will be releasing more courses as far as the
from the Marketing one on one platform, but this is
the first one and it is the core fundamentals.
Speaker 2 (18:06):
Okay.
Speaker 1 (18:07):
So once you understand, you know, it's a little bit
of intro stuff, you know, we welcome to the course.
What you're gonna learn things like that, then we get
into the fundamentals. We start going over what links, what
links you need, you need to go through. All right,
(18:28):
we start going over the elements of the of a territory. Okay,
here we are all right, We start going over all
of this. You know how hospitals play a role. Then
we start going into the Here we are identifying who
(18:51):
your caregivers are and you know, understanding some some data
points that will help you, and then what role the
commune plays. We'll also be going into detail here on
how to find your clients. You know, what you need
to understand when you're looking things up, and we use
(19:13):
data data to support all of this, how to find
what conditions are most prevalent in your area, all of
these things.
Speaker 2 (19:22):
Then we start getting into.
Speaker 1 (19:26):
More of the fundamentals here, understanding the territories, understanding things
about prospecting, creating, marketing zones, you know, what the facilities are,
(19:49):
all of these things that you need to understand. You
know that you truly need to understand in order to
build out, build out, what your course build out, what
your territory needs to look like. You know, it's very comprehensive,
very in depth, and you know you'll you'll understand that
(20:11):
you're actually getting a ton of value from this.
Speaker 2 (20:15):
All right.
Speaker 1 (20:15):
So that's that's our walkthrough on the courses here, and
that's pretty much a wrap we are including. I said,
there's a lot of a lot of things here when
it comes to here we go, you know, and we
include a few few free downloads and gifts and things
(20:37):
like that, all right, So.
Speaker 2 (20:39):
That that's that.
Speaker 1 (20:40):
That's pretty much a wrap on what our updates are
for the company. So if you want to, you know,
if you want to understand and skip ahead, you know
that that's great. There will be time stamps on the
replay if you're coming back to look at this, and
we will be posting the rep play in in a
(21:03):
you know, on Facebook on our business page, and thanks.
If you're watching this in the group, you know, just
fast forward. I will put the time stamp at the
bottom so that you have a better understanding as to
where where it is that you need to skip to,
so that you're not listening to, you know, a whole
bunch of company updates if that's not your thing.
Speaker 2 (21:24):
All right.
Speaker 1 (21:25):
So now now that we've gone through all of that,
let's get to meat and potatoes of this. Okay, let's
take a look at question one. Okay, does it make
sense to open a business with a business partner? All right,
(21:48):
So here's a couple of pros and cons as to
how you're you're going to want to do this, all right?
When you're looking at when you're looking at your options,
you have to keep in mind a couple of things.
Number One, business partners serve a couple of purposes.
Speaker 2 (22:07):
Okay.
Speaker 1 (22:10):
So purpose number one typically that a business partner will
will serve will be a financial aspect. Okay, So is
this person bringing the money?
Speaker 2 (22:23):
Aspect?
Speaker 1 (22:23):
Number two they're bringing is experience and work and sharing
the work. Okay, So those are the two elements you
really have to look at. So is this individual bringing
money or are they bringing experience and sharing labor? And
if they are, what's the buy in? Because those are
the really the big things now when you are brand
(22:45):
new in business, and I see this mistake a lot,
especially with newer agency owners that just have no idea
what they're doing, where they're moving along with and everything else,
and they think that they can open a business with
a family. They think they can open a business, you know,
with their best friend. And there's nothing wrong with that
(23:07):
I have seen it work both ways. I have seen
great partnerships, even between like husband and wife, that have
worked out fantastically and that there has been no issue
anywhere along the way. I have seen friendships work fantastically.
I've seen complete strangers come together build a business and
(23:28):
be very successful. On the other end, I've also seen
it happen the other way. I have seen where peat
two people they come in with great intentions and they
just can't make it work. So there's a couple of
things that you have to keep in mind with that.
Number One, Absolutely you have to have some sort of
(23:53):
written document that is going to define the parameters and
the boundaries of the relationship. Okay, I do not care
if this is something that you are doing with your spouse.
I do not care if you're doing this with your parent.
I do not care if you're doing this with a
complete stranger. The reality is very simple that if you
(24:16):
are going to if you're going to go into business
with someone, you absolutely must have a document that is
going to outline all sorts of things. And we're going
to get into a few of those key points here
at the moment. The reason because that this document becomes
(24:37):
so important is in the beginning. It is very easy
to start a business when there is no money involved. Okay,
the business is broke, the odds are regardless of how
much money there is. There's no real skin in the game.
Yet you're just having a conversation about moving along and
(24:57):
wanting to start a business. Maybe one person said it before,
has a lot of a lot of money but no
business experience, and the other person has a lot of
business experience and no money. More times than not, that's
how these relationships begin. Somebody's got money, somebody knows what
they're doing.
Speaker 2 (25:17):
All right.
Speaker 1 (25:18):
Now, The reason for this document isn't for right now.
It's because let's fast forward two or three or four years.
Speaker 2 (25:27):
Down the road.
Speaker 1 (25:29):
If you've done the business properly and now your business
has transitioned three to five years down the road, you
should be somewhere between that two and five million dollar
range if you're in the private pay space, potentially higher
if you're in medicaid, as far as top line revenue,
depending on how you've grown and structured your business. Now,
(25:50):
what does this all mean, Well, the fastest way to
get rid of the friendship is to loan somebody money.
So the same thing happens with this. Okay, when you
have no money in between you, it's very easy to
remain friendly when there are millions of dollars at stake,
you know, as far as top line revenue, not necessarily profit,
(26:13):
but when you're talking about large sums of money, there's
a lot of different factors that can come into play.
What happens if one partner wants to sell, what happens
if you know, as the business is growing, if one
partner is not doing their part. So you have to
start out. And I'm going to give you guys a
few tips here. If you are going to sit down
(26:34):
with someone and discuss business partnership, understand what everyone's role is.
That is rule number one. Clearly define everybody's role. If
I am the guy bringing the experience and you're bringing
the money, we need to know how much involvement you
can have. How much decision making authority am I willing
(26:56):
to give you in order to grow the business. If
I'm the one that what I'm doing and you've never
worked in senior care before, then that needs to be
outlined that you you can have a say so, but
final decision making authority goes to whoever's all right? So
have that clearly defined? What is everyone's role, what is
(27:17):
everyone's decision making authority? And who has final say? There
is no such thing as a fifty to fifty split
in the business. That is a nightmare. That that is
a formula at one end up in court. Okay, So
what you want to do is make sure that that
division is clearly said. Somebody should hold fifty one percent
(27:42):
decision making. Now the profits, that's the second part of this.
How are you going to define that?
Speaker 2 (27:49):
All right?
Speaker 1 (27:50):
So first we have decision making authority and who has
decision making power? And how is that balanced out? At
a bare minimum, someone needs to have fifty one percent,
somebody needs to have forty nine percent. Now when it
comes to division of profits, that needs to be clearly
defined as well. How if you are the person that's
providing the knowledge and the experience, but you're not putting
(28:12):
in anything for financials, at what point have you paid
the other individual back their initial investment? And you know
what percentage are you going to take? Is everybody going
to take of the profit? So is your.
Speaker 2 (28:30):
Work valued at thirty percent of net? Is?
Speaker 1 (28:34):
How are you defining net? Is your work value? At
fifty percent of net is there is there going to
be a higher percentage given to the person who invested
the most capital until everybody breaks even? And at what
point do you start taking money out of the business.
So typically you want to make sure that first you
(28:55):
understand what the monthly break even is because that should
be the starting point for repayment of any initial investment
and then profits after. Okay, So all of these things
you want to make sure you have and just to
recap clearly defined roles and responsibilities, clear decision making authority,
(29:15):
and a clear division of finances. Then once you have
all of that done, who's going to do the day
to day work and how is that going to be measured?
If you are both equally invested financially, so who's responsible
for what? Please understand this is probably the biggest thing
(29:39):
when it comes to having a successful partnership, especially if
you are talking about a situation where you're like, you know, family, spouse,
something along those lines, Okay, where there's probably a likelihood
that you guys are going to come to work together,
spend all day at work together, go home together. If
(30:01):
you do not have individual responsibilities where somebody is fully
responsible for their own tasks. This could lead to arguments
it's people stepping on people's toes. I may know more
about the sales and marketing side than you do. You
may know more about you know, the back end administrative
stuff like QuickBooks and you know, regulatory compliance and things
(30:24):
of that nature. I should never step in step on
your decisions. You should never step on mind. Now does
that mean that you don't that I don't need to
learn what you do? No, I absolutely do as a
responsible business owner, just like as a responsible business owner,
you need to learn what I do. But it doesn't
(30:44):
change the dynamic of the role. You have to have
clearly defined boundaries and this is typically how it works.
So in short, do I think that you know? Does
it make sense to open with a business partner? The
short answer is it depends all right. As long as
(31:05):
everybody's mature enough and understands what their role is in
the process, then yeah, you can absolutely have a good
business partnership that makes sense. On the final note of that,
there also needs to be clear, clearly defined instructions as
to an exit strategy. So if two people are opening
(31:28):
this business, are multiple people, who has first writer or
refusal is not going to be offered. Does it must
it be a mutual dissolution of the business. Does one
partner have to buy out the other? And you guys
have to decide how you're going to value the business,
what criteria you're going to use when it comes time
(31:50):
for the sale. All right? Question number two, how much
should I pay for a caregiver? My caregivers for short cases?
Speaker 2 (32:03):
All right?
Speaker 1 (32:04):
This was based on a couple of conversations that I've
had over the past few weeks. Shortcases are a big deal,
and they they really become a lot more prevalent when
when you're talking about areas that are kind of spread out.
Speaker 2 (32:24):
Okay, so.
Speaker 1 (32:27):
What do I mean, Like, if you're doing like, for example,
VA cases, VA cases tend to be shorter and they
tend to be a little more spread out. That's why
the VA pays a little bit higher rate than for example,
Medicaid does. And in fact, in some parts of the country,
VA pays a higher rate actually than even private pay
(32:49):
the Medicaid. You'll they'll have a lot of shorter cases
as well, but they tend to be concentrated in you know,
in relatively close areas. Now private pay because of the
relationship of where the clients live versus where the caregivers
send to live. And we talk all about this in
(33:09):
our you know, territory optimization course. So in that situation,
it may or may not make sense for you to
take a short case. That's why a lot of consultants
out there do get into the whole process of have
(33:31):
service minimums don't go below four or five or six hours.
You know, some people will even tell you to create
scaling price based on distance all of this other stuff.
Speaker 2 (33:40):
And but here's here's.
Speaker 1 (33:42):
The rule of thumb that I've learned in my career.
May people may agree, may not agree. Again, feel free
please leave us a comment and let us know what
you think that we use the.
Speaker 2 (33:53):
Ten minute rule.
Speaker 1 (33:54):
Okay, regardless of what your service minimum is. Okay, I
do believe in a service minimum, and that service minimum
should be somewhere between four and six hours, depending on
where you are, all right, so please don't get that wrong.
But the rule of ten minutes is this, every ten
(34:15):
minutes that a caregiver has to travel from their last
client to get to your client. Okay, I'm gonna explain
what I mean by that. Okay here momentarily, but every
ten minutes of travel equates to one hour of work. Okay,
so what do I mean by that. Let's say you
(34:36):
go through and you know that the typical commute in
your area is thirty minutes.
Speaker 2 (34:43):
Okay.
Speaker 1 (34:45):
In my course, I actually have a website that will
tell you what average commutes in are in certain metropolitan areas. Okay,
but let's say, like, for example, Chicago, the average commute
is about thirty six minutes long.
Speaker 2 (34:57):
All right.
Speaker 1 (34:57):
So let's say you you have a that lives in
let's say Glen Ellen. Okay, Glen Ellen is about an
hour and a half or so away, Like, let's say
about fifty five sixty minutes away from Chicago, So sixty
minutes at ten minutes, that using the ten minute rule
(35:19):
means that the client should be requesting at a minimum
of six hours. The reason is is that it has
to do with the drive time to wear and tear
at gasoline. Let's think about this this morning. Where I live, okay,
gas was at like three seventy seven a gallon, all right, So.
Speaker 2 (35:40):
And gas is not.
Speaker 1 (35:41):
Really that expensive out here, okay, So three seventy seven
a gallon, it might be more where you are.
Speaker 2 (35:49):
Whatever, So I drive.
Speaker 1 (35:52):
I drive an SUV, so at about quarter tank of
gas at three seventy seven a gallon, it's been cossible
six five dollars to fill my tank. Okay, if I
was a caregiver and I'm making you know, fifteen fifteen
to eighteen dollars an hour, which is about average where
depending on where you are. Okay, in the Chicago, Chicago area,
(36:16):
if I'm not mistaken, they're making about seventeen eighteen an
hour anyway, So that means to fill my tank, I
need a minimum of three and a half hours of work.
So using the ten minute rule six hours makes sense.
But what you know, you're probably thinking yourself, well, we're
talking about shortcases. So what happens if the client only
(36:37):
wants two hours. Well, here's where the problem comes in.
We're asking the caregiver to do a sixty minute commute
for two hours of pay. That means the caregiver will
not be satisfied unless they have about six hours equivalent
of pay. This is where that bonus comes in. That
a lot of agencies pay to get the caregiver to
(36:58):
show up. So if you equate the amount of hours,
you put a dollar value to it, and it could
be quite simply, here you are, we're paying you two hours,
but we're going to give you forty dollars worth of
gas to go out there on a gas card. Now,
why would you do that as an incentive? The incentive
for that is very simply. Forty dollars gas card may
(37:22):
be equivalent to two hours and change worth of work.
So it's actually going to cost you cheaper to give
them the forty dollars gas card than to give them
what they would be expecting, which would be an additional
four hours to pay.
Speaker 2 (37:35):
Okay.
Speaker 1 (37:36):
The other benefit of this is that one it becomes
an instant gratification for them, Okay, I got a full
tank of gas for going out to cover this case
for a couple of hours. So they have a higher
likelihood of going out there for the incentive, and it
saves you money because talk to your accountant. I'm not
giving financial advice here, but many times giving a gas
(37:58):
card to an employee becomes a tax write off, all right,
So all of these instead of tape paying the additional tax,
paying the additional taxes for giving a higher rating rate
of pay. So this is what you want to look
at when you're taking into account whether or not to
take these short cases. Now, on the other hand, let's
(38:19):
take a look. We're only now looking at it from
their home to the client, which was a sixty minute commute.
Let's be more realistic. We all know that many caregivers
work for multiple clients. So if for multiple agencies, okay,
so let's take a look at it this way. If
(38:40):
I know caregiver X is working for me and for
home care agency XYZ down the street, I'm going to
ask them, hey, where does the client that you're leaving
actually live? Because that is the real commute. It's not
from their home to the client. It's from the last
(39:02):
client to your client. So depending on the time of day,
that sixty minute commute from their home to howl where
you are may only realistically be a fifteen minute commute
or twenty minute commute, where the two hours that you're
trying to staff make sense. So this is where it
comes down to understanding the layout of your service area
(39:26):
of your You know where your caregivers live, where the
clients live. All of this other stuff comes into play,
and if once you have a good solid understanding of this,
you'll be able to map out and more effectively, not efficiently,
but more effectively. Schedule your caregivers to get more shifts covered,
even if you want to take these smaller shifts or
(39:48):
you have to because of how you're getting paid, you know,
and you'll actually be able to get them covered better.
Here's the thing that a lot of people don't take
into account. The commute often pays a bigger role in
retention for caregivers and on the caregiver's reliability than just
(40:10):
about anything else. You can offer a caregiver twenty five
dollars an hour in an area that's only paying you know,
fifteen or eighteen, and they may still flake on you
not show up to that case once they look at
it Google maps and they see, oh no, that's going
to take me too long to get there because they're
looking at it from a different perspective than you are.
(40:31):
So understand it, Know where everything is, Understand what the
rate is, and keep in mind the ten minutes. All right,
all right, any questions so far? For those of you
that are watching, you know, give us a thumbs up.
If you're finding this, you know, helpful, useful, you know,
(40:51):
leave us comment below whatever it is you're doing. If
you're watching the replay, please don't forget to give us
a like and leave a comment as to what you're
thinking on all of this. All right, that being said,
question number three, I'm looking to buy an agency with clients.
(41:11):
What should I look for besides EBITA?
Speaker 2 (41:15):
Okay?
Speaker 1 (41:17):
EBITA stands for earnings before interest, taxes, depreciation and amortization. Okay,
So for those of you who don't understand what that is,
all right, what it comes down to is EBITA is
how people value their business. So, after you pay all
your bills, okay, what are you really making? So, like
(41:40):
I said in the beginning of this video when I
was talking about the monthly break even free class that
we have again links links are going to be made
available after I finished doing this live. So the after
all of that is done, all right, what is Oh,
you're very welcome, rebelia. So after all all is said
(42:02):
and done, what are we actually going to? What do
we actually looking for? How much money are you putting
in your pocket? I could bill a million dollars a year,
but if I'm only putting in my pocket fifty thousand dollars, yeah,
I have a terrible business. Now if I'm billing a
million dollars a year, and I'm putting in my pocket
(42:23):
two hundred and fifty thousand or two hundred and eighty
thousand dollars. Now I have a business that shows growth.
But here's here's the thing. There's a lot of factors
besides EBETA that goes into the value of a agency.
What is what is the likelihood of your staff staying
(42:45):
after you leave. So let's say you're the business owner.
You want to leave, but you've got terrible culture, you
don't have solid staff that's been with you for a while.
You know, all of this just you're you have like
diculous turnover rate with your caregivers, ridiculous turnover rate with
your internal staff. People don't feel they can talk to you.
(43:07):
So once you leave, you know it's over. You know,
that makes your business worth a lot less, not worthless,
but just worth a lot less than it would be
if you had a solid culture, good policies in place,
good SOPs, so that it makes for smooth transition. Basically,
you need to figure out a way to hit the
easy button in your business.
Speaker 2 (43:29):
Okay, So.
Speaker 1 (43:32):
That's one thing, that's one evaluation that you need to
need to look at. Another thing that you really want
to take a look at, is what percentage of the
caregiver pool is is actually staying Like in other words,
how bad is your retention or your turnover rate seem
(43:52):
Because depending on where you are and how you've structured yourself,
the true cost of a care giver retention I'm sorry,
caregiver turnover fit greatly varies. There's a big calculation for this.
There's a lot of things that come into play, you know,
like time, time to efficiency. You know, the cost of
(44:13):
the staff to train, the cost of your recruiters, you know.
Speaker 2 (44:17):
Advertising budget.
Speaker 1 (44:19):
So basically, if you look at the industry standards, they're
saying it's about twenty five hundred dollars per caregiver. I'm
going to tell you I do these calculations for my
clients when I come in to evaluate businesses for them,
and the reality is I've seen it as low as
three hundred dollars per caregiver. I've also worked with clients
(44:40):
that have had a true cost of turnover be as
high as forty five hundred dollars. Okay, because there's so
many factors involved in that, and that cost of turnal,
your turnover rate will actually impact the value of your business.
So and it all comes down to the same same thing.
How efficiently have you structured your business and what plans
(45:04):
do you have in place. So if you have a
turnover rate, let's say a thirty day turnover of seventy
or eighty percent, you need to figure out where is
it that you're losing your caregivers and then come in
make adjustments and get this all fixed.
Speaker 2 (45:19):
If you are.
Speaker 1 (45:22):
If you're having a low turnover, let's say, because industry
average is fifty percent within thirty days, well let's say
your fifty percent turnover rate is thirty percent instead of
fifty percent in the first thirty days. Now you have
a business that's actually worth more because you're potentially creating
more revenue. So average depending on you know, your business
(45:42):
model and everything else, but industry average it's about eleven
thousand dollars per caregiver, and your average caregiver will work
with you three clients, so depend the longer your caregiver
stays with you, the more money they're actually bringing into
your agency. See, people don't look at the revenue and
profit that's associated with recruitment. People just think, oh, I'm
(46:04):
trying to cover a case or oh yeah, these caregivers
are terrible. But there's a lot more involved in this,
and there's a lot more to retention than all of this.
So that's one thing your staff and your turnover rates.
Speaker 2 (46:16):
Okay.
Speaker 1 (46:18):
Now, another thing that you're really going to want to
take a look at is the viability of your marketing.
So if I was going to go in and purchase,
and this is part one of the evaluations that I
said that we do for clients, it's great, find a
business broker, find somebody. I mean, hey, listen, I'll I
can recommend you a fantastic one if you're looking to
buy or sell a home care agency. But there's things
(46:40):
that you know, all sorts of people leave out. They
do not take into account when they're looking at it
from an accounting perspective. How viable is your territory your
market So here here's what I mean. If you are
a franchise, Okay, if you own an agency under a franchise,
they give you a set territory, meaning that set number
(47:03):
of counties a population, depending on which franchise system you
belong to, is how this is gonna work. Most of
them give you somewhere between two hundred thousand, and like
at the upper end that I've seen has been about
four or five hundred thousand population. Those are limited areas,
so you can only open an office that will service
(47:26):
those areas. Here's the problem. What if you get an
area that, based on demographic shifts, Okay, all of a sudden,
a whole bunch of older people die off and their
kids move away, or or all of a sudden, you know,
like unfortunately the reality of some parts of the country
right now, you have actual medical facilities because of high
(47:50):
crime rates closing down. So now you have actually built
a business in an area based on for example, private
pay and because of the increase in crime and everything else,
now your territory is no longer viable, okay, meaning you
cannot sustain growth in that area anymore because the people
(48:12):
that would have been able to afford your business has
gone down. All right, that that could be detrimental to
the sale of your business.
Speaker 2 (48:21):
Okay.
Speaker 1 (48:22):
The same thing can happen on the other end. Let's
say you've built a strong and solid medicaid business. You're
you've created something that's bringing in seven eight ten million
dollars out of one or two offices. Now comes time
to sell. But again you have a revert. You have
a different set of populationship now you went from you've
(48:43):
got a lot of expansion. You've got the government is
trying to bring in business. They've increased the income, meaning
less people qualify for Medicaid now, so the viability in
the future of that business has gone down. And these
are other things to keep in mind to consider when
you're buying or selling a home care agency. It's not
(49:06):
as simple as ebita all right, And it's not as
simple as just oh yeah, you know, this looks like
a great staff. The staff says, they'll stay okay. I've
been through a lot of sales, both when I was
working enfranchising and both then as an independent consultant where
I've come in and done these evaluations for people and
(49:28):
you know after the fact though, like I've been brought
in after they've purchased a business or after it's been open,
and people don't have an understanding as to what all
of these factors go into play, because all they did
was listen to the business broker or to the accountant,
and the accountant says it looks good because they're taking
a snapshot of that moment you know, like, here's another
(49:51):
really big one that I've done a number of these
evaluations for sale. How good is your relationship with is
that agency's relationship with the local market? What I mean
is this, Let's say I own X, Y, and Z
Senior Care and let's just pick Cincinnati, Ohio, just randomly. Okay,
(50:15):
Now I have a great relationship with these facilities, not
my staff. There is no depth in my business. That
means that there is nothing really going on as far
as the minute I.
Speaker 2 (50:29):
Leave, the faith in the agency leaves with me. Okay.
How well developed is your business development? Okay?
Speaker 1 (50:38):
So if you have an agency and you're one day
going to go to sell it, make sure that you
are building this with the purpose of sale in mind. Look,
it doesn't matter if you want to do this until
you drop that in the business. The business will still
change hands. If it's an inheritance and your kids or
your grandkids or whoever some family is going to take over.
(51:02):
If you are going to sell it, if you're going
to burn it to the ground, whatever it is you
want to do, you have to plan day one what
that's going to look like. Okay, So if I'm going
to be Johnny Young, jack of all trades here, and
I'm going to be the owner.
Speaker 2 (51:20):
I'm going to be the marketer. I'm going to be
the recruiter.
Speaker 1 (51:23):
That means I am building a a business on a peg,
not on a step, okay. So there's no foundation there.
So that means that business could be producing you know,
one and a half two million dollars a year, and
it is a worthless business, okay, because there's no structure
(51:44):
at place, there's no team, all right. So I'll tell
you this is actually something that I went through not
too long ago. I did a business evaluation, you know, again,
not financial. If you want people to do that type
of stuff, I could recommend them for you. But I
did a viability evaluation because somebody wants to prepare their
business for sale, went out there, visited with him, spent
(52:09):
about three or four days. And the reality is when
we went to these facilities, nobody knew anybody else in
the stead.
Speaker 2 (52:19):
Okay.
Speaker 1 (52:20):
The only person that was going to market was the owner.
And that becomes terrible because now that owner has to
fix this and instead of selling in the next ninety
days that they were hoping to, they have to now
put all these systems in place to make it more
attractive for a buyer. Understand something. People who are looking
to buy established businesses are not typically entrepreneurs. Typically they
(52:45):
are investors. They want to be able to buy your business,
put it, you know, come in, leave the management team
in place, and have it continue to make money. Then
they'll evaluate the processes and figure out how to improve them.
They will bring in people like me after the purchase
is done, just to see how they can improve the process. Okay,
(53:06):
but when it comes to this, that's what they're looking for.
And if you sell and if you're thinking, you're watching this,
you're thinking, oh, yeah, I'll just sell it to Capital Venture.
They are even more stringent about having businesses that operate
on autopilot. They really do not want to. They have
teams of people like me that come in and they
when they're doing their due diligence. Yes, they're looking at
(53:28):
your financials. Yes, they're looking at things like, you know
how much profit is being made, how long before they
make a return. All of this stuff. They're taking a
look at what they have to streamline. Where your salary
and you know how much you're overpaying your staff. All
of that normal stuff. Okay, but they also have teams
(53:49):
of people that are experienced territory and data analysts. They're
going to come in and they're going to actually and
look at the operation of your business. What is it
that your business is going to be able to produce
for them long term? How long will they actually be
able to hold onto this? They don't care to remember.
(54:11):
These are not you who is coming in with a
passion for the business. You as an owner, you do
it for the love of what you're doing as an investor,
they're doing it for the profit.
Speaker 2 (54:23):
Okay.
Speaker 1 (54:24):
They want people in place that do love what they're
doing so that they can go out and make money
for them. But their goal is the bottom line. So
you need to understand and this is one of the
things and it's not a you know, it's going to
be a shameless plug, but this is why I always
recommend you should be doing an analysis and evaluation of
(54:46):
your chosen territory. If you're an independent and if you're
a franchise e, you should be looking at, you know,
how everything is shifting in your territory annually. It will
help improve things, it'll just make go smoother. So that
is the you know, the answer so as to what
(55:07):
you should look for if you're doing this now, I'm
going to open this up. There's a few people watching
us live.
Speaker 2 (55:14):
Ask away.
Speaker 1 (55:15):
If you got a question, leave it in the comment
and I have it up on my other screen here. Oh,
you're very welcome, Frank, you know. Yeah, you have a
great day as well. If anybody has anything they want
me to go over before I sign off for today,
(55:36):
any other feedback, you know, please, by all means, leave
a comment and I'll answer it for you here in
the next minute or so.
Speaker 2 (55:56):
All right, So.
Speaker 1 (55:59):
Unless I get another question here in the next second
or two of you know, thank you all for watching
so much. Really appreciate you taking the time out of
your day to join me again. Just to recap a
little bit of the beginning. I'm gonna be posting a schedule.
We're going back to doing these live sessions every week,
all right. Leave a comment either in this or if
(56:21):
you're watching the replay, let us know when you when
works best for you. We used to do it every Wednesday,
with the occasional bonus one on Saturday that was unannounced,
or we would switch back and forth, like one week Wednesday,
another week Saturday. But if another time works for you,
let us know. I typically do like to do these
at around one. Can you DM me with a question? Yes, Debbie,
(56:46):
by all means shoot shoot the question and we will
we'll see about getting it answered for you. So but
the other thing is, please take take the time to
go ahead and look at take a look at the courses.
(57:09):
It is free, you know. We have the monthly break
even one for free, and we do have the territory
Optimization class and it's a low cost. Right now, we're
doing it for six fifty. That's temporary. Come January, I'm
going to be raising them only because I'm raising the
prices on them. I haven't decided yet to how much,
(57:29):
but that's a few months away. So thank you, and
don't forget. You can always book a Discovery Paul with
us if you're looking for services.
Speaker 2 (57:37):
All right.
Speaker 1 (57:38):
If you're watching this live, thanks again for participating. If
you are watching the replay on any of the social
media platform, most likely YouTube, because that's where I post
everything on here. You know, after I do these lives,
you know, leave a comment below and don't forget to
like the video and subscribe. It really helps us with
(57:58):
the algorithm. All right, have a great day everybody. I
look forward to hearing from Debby
All right, welcome everybody. I'm just getting this shared shared
to the group. Welcome anyone joining us. All right, let's
take a look here. Okay, so it's twelve o'clock and
(00:59):
as promised, here we are. We are going live. I'm
going to talk about a few things. So today's live.
The agenda is going to simply be gonna you know,
we're going to talk about some company updates. Then we're
gonna go over a couple of questions that were submitted
(01:26):
through Messenger over the last week or so. I did
put a post in the Facebook group, but we haven't
done one of these lives in so long. I'm really
not terribly surprised didn't get much feedback. So we and
the questions are as follows. Question one is does it
make sense to open a home care agency with a
(01:47):
business partner? Question number two is how much should I
pay caregivers? You know, if I'm running a shortcase? And
question number three is, you know, I just want to
buy an agency that's already got clients. You know, what
should I look for in the agency besides? Okay, so
(02:12):
the for those of you that don't know, get into
what EBITA is during the live stream, when we get
to that question. All right, So here we are. Let's
take a look here, only get some of my notes
up on the screen and give people a moment to
(02:34):
join in. If you are joining in, you know, please
don't be shy. Feel free to say hello, and you know,
let us know you're watching you leave a comment, say hi,
give us a thumbs up, and like, if you are
watching the replay of this, whether on our Facebook page
(02:56):
or on YouTube, you know, again, feel free two go
ahead and you know, give us a thumbs up. Don't
forget to subscribe to the channel if you are watching
it on YouTube, and if you're watching this on you know,
(03:17):
some other platform, you know, feel free to you know,
leave a comment below and let us know what you're thinking.
All right, so let's go ahead and get started. Now
that we are that, we're ready to go. A couple
of company updates. So for those of you, as I
(03:37):
mentioned a moment ago, we have not been posting much.
We have not been posting much lately. I believe we
have not been actively posting, you know, for a few
months now. We for those of you that do follow
us and our members of the Facebook group, you know,
we've been actively making posts again, giving know tips and
(04:00):
things like that. We are also making a push towards,
you know, getting back to being more active answering questions,
and we're going to go back to doing these live
sessions like we used to now. For those of you
that have been part of the group for a while
or have followed followed the YouTube channel for a while,
we used to post videos weekly, either directly to YouTube
(04:25):
and you know, or do a live session in Facebook
group and then post that. We're going back to that.
We're going back to the format of bringing you guys
more content, you know, as time goes on, you know,
we're going to be giving We're we're going to be
(04:46):
doing the Facebook live sessions again weekly. We're setting up
a schedule for that now so that uh, the expected
start date is. Let me give a take a look
here my calendar what I have set for that will
all be taking place effective. That will be effective the
(05:13):
week of the fourteenth. I'm not sure that's the week
of August fourteenth, twenty twenty three. So whenever you're watching this,
you know, keep that in mind. You know, if you're
watching this after the fourteenth, then you'll already see a
schedule up somewhere as to what this is going to be. Now,
for those of you watching in Facebook group, you know
(05:36):
we we do appreciate, we do appreciate your time, and
we appreciate you, you know, joining us. So here's here's
where my question to you is, leave a comment wherever
it is. If you're watching this on Facebook, or if
you're wanting this on LinkedIn or or Twitter or YouTube.
(05:58):
Wherever you're watching this, let us know in the comment
section what day of the week would you prefer that
we do this. Our schedule used to be alternating Wednesdays
and Saturdays. Okay, so we would either do it if
we would do it on a Wednesday one week, the
following week would be on a Saturday, and that was
(06:18):
that used to be our routine for doing this.
Speaker 2 (06:23):
Now, if if you're looking.
Speaker 1 (06:27):
For something else, or if something else would be more
convenient to you, let us know in the common section.
Typically we like to do these in the afternoon, either
at noon or one pm Eastern Standard time. This way
people that are on the West coast can also join
in and watch the live sessions. So that that is
(06:50):
the first of our company updates. So you're going to
start seeing us a lot more and we're going to
start where we're pretty much back. So now as an explanation,
what happened, Well, a couple of things happened as to
why we stopped doing these videos and even this video,
I might break it up into two parts to let
(07:11):
people know. This way people could get to the content faster.
If nothing else, the replay of this will be timestamped
on YouTube. Okay, So back to the why. The reason
why is last December we won an award where we
went out to Las Vegas for the Health two point
(07:31):
zero conference. Right around the same time, something that I
wasn't mentioning is that we started a large contract with
home care agency where we were brought in, you know,
to come in and fix operations and marketing and all
of this hands on stuff. All right, So this is
part of the services that we do. It's not a
(07:52):
service that I advertise a lot on social media. It
is something that I usually only worked with select people
at a given moment, and that's that's where the contract was.
Speaker 2 (08:05):
Okay, so we came in.
Speaker 1 (08:09):
Yeah, I sometimes wonder if I want to do a
case study on this, but you know, the issue is
the agency owner hired us to come in to revamp
their scheduling, to their recruitment models, you know, to work
with them on getting them marketing up and implementing other
(08:29):
things just to bring order back to an agency that
was with chaos. And then at the end of the
six months, we gave control back to the owner. So
the end result of that, and I said, when we started,
they we essentially increased their revenue by about twenty five
thousand a month, and we also improved their top line
(08:52):
net revenue from about a eight percent net and we
brought them up to about a twenty seven percent net
by the end of the six months. You know, a
lot of things went into play on that, but as
you can imagine, that was a very time consuming process
on top of taking care of our other clients as well,
(09:12):
So that left us very little time for being as
active on social media as I normally like to be.
And that contract is over, So the the.
Speaker 2 (09:26):
Whole issue is with that.
Speaker 1 (09:27):
What it really comes down to is, apart from having
done my work as contracted with my client, it also
taught me a lot of lessons about my own business,
and some lessons that I hadn't quite realized is the
importance of maintaining a social media presence all right, which
(09:48):
is you know, part of what we go over in
our marketing course, you know, but it really hit home
as to how much it can impact potential growth.
Speaker 2 (09:59):
So one of.
Speaker 1 (09:59):
The things that we will be doing is, like I said,
we're going back to the social being on top of
social media. We've implemented some new tools and policies internally
so that we don't drop the ball again, and we
will be doing these videos live. Then keep a lookout
either in the description below or into the Facebook group.
(10:20):
If you're not part of the Facebook group and you're
watching the replay of this, there will be a link
in the description box as to how to join. But
we will be putting out a form where people can
submit questions for the weekly broadcast. Also, we will be
giving we will be going back to what we used
to do, and that will be giving people the opportunity
(10:44):
to actually join us live. So essentially we'll be doing
live strategy sessions with home care agency owners in the group.
For those who want to participate, those hold tremendous value
and it'll be a one on one learning experience and
so you'll essentially get what other people pay a lot
(11:04):
of money for in order to have the opportunity to
come in. As long as we agree to do it
on a live session, there will be much shorter than
a full strategy session. Typically they're about thirty to forty
minutes long. Okay, So that is our that is our
(11:26):
updates for now, well the reasons why and everything else.
The next update that we're going to talk about, Okay,
next thing we're going to talk about is a couple
of updates to our service offering. All right, let's come
into here. Okay, let me go ahead and share my screen.
(11:56):
All right, So if you go to our website at
the Brionas group, you will you will see that there's
a couple of changes that are going on that are
going on here.
Speaker 2 (12:10):
One.
Speaker 1 (12:10):
Let me bring out my pointer so that we can
get a better idea.
Speaker 2 (12:14):
Here.
Speaker 1 (12:17):
The website pretty much looks the same, just that some
of the tabs are different, all right. And there will
be cosmetic changes to the website coming in the very
near future, all right, just because we've updated some of
our services. So the first thing I want to point out,
if you guys want to talk and find out how
(12:39):
we can help, please feel free to click here and
book your discovery call. You know, it's a thirty minute call.
We can see if we're a good fit for each other.
You can ask more questions about some of the services
that we offer, all right. So the biggest change for
us is here. It's the homecare owner's corner where we've
(12:59):
included some things such as an e learning platform, and
that's going to probably be the biggest thing we're talking
about right now, all right, So you can feel free
to watch the video. This is the course introduction, so
you guys can come in take a look see what
it is. We're very transparent on pricing this class in
(13:20):
six point fifty right, and it isn't an e course.
Speaker 2 (13:25):
That will help you understand and.
Speaker 1 (13:26):
How to how to optimize and analyze your territory on
your own, of course. You know, we we always do
welcome people to reach out to us, and we do
this service for new people, you know, for agencies, whether
you're a brand new agency starting out or you're a
more seasoned agency and you just need to have a
(13:49):
review and a refresher as to what's actually going on
demographically in your territory. But we'll talk about that another time.
And then there's also a free course on understanding your
monthly break even.
Speaker 2 (14:07):
All right.
Speaker 1 (14:07):
So this we're gonna show you what's on the inside
of these here momentarily. But this is probably the most
important number in your home care business, all right. So
what I mean by that is a lot of people
don't understand what these numbers mean, okay, in relation to
(14:29):
their home care agency. So you have two major milestones
that you need to reach. Monthly break even is the
one that lets you sleep at night.
Speaker 2 (14:40):
Okay.
Speaker 1 (14:41):
That's when you know that the business is no longer
costing you anything out of your pocket.
Speaker 2 (14:48):
Okay.
Speaker 1 (14:49):
This is why we put this course up. This is
it comes with a lot of tools, and we're gonna
go over it here momentarily.
Speaker 2 (14:57):
Okay.
Speaker 1 (14:58):
So let's take a look at the free course and
what the training is and what it comes to, all right.
So this is a free course, all right, Please keep
that in mind. And so it talks a little bit
about what the about what what is the monthly break even?
(15:19):
There is a video involved in it, all right, So
let me turn off the volume here all right, and
as as you can see, we go over a monthly
break even calculator spreadsheet. This, like I said, It will
help you understand and figure out what your numbers are yours,
not someone else's, not what Facebook tells you they should be.
(15:42):
These are the most common expenses found in home care,
and they you know, when you register and you sign
up and everything, you'll be able to go. You'll get
this spreadsheet. It's right down here, you know, under the
downloadable resources, all right, and you'll be able to actually
(16:05):
get this all up and going.
Speaker 2 (16:07):
All right. So not only will this.
Speaker 1 (16:10):
Tell you what the what your total is for your
monthly break even number, but it will also tell you,
based on what you're billing and based on how much
you're paying your caregivers, how many billable hours you actually
need in order to break even month over month. Look,
there's always a lot of focus on how many clients
(16:31):
I have. I'll tell you the reality, nobody really cares. Okay,
this is a harsh thing to say, and I understand that.
But if you if at the end of the day,
the only thing that matters is how many hours are
you billing and once you've built those hours, how much
money is being left over?
Speaker 2 (16:51):
All right?
Speaker 1 (16:51):
What are you putting in your pocket once you hit
the monthly break even? I said monthly break even. Let's
sleep well at night. You'll have a clear understanding as
to what the reality is about what your business is
going through. And once you hit that monthly break even number,
anything beyond that is when you start making profit. You'll
you'll actually be surprised as to how low that number
(17:15):
that actually is, like how many, how few billable hours
you actually need to hit that hit that number every month?
Speaker 2 (17:23):
All right?
Speaker 1 (17:24):
So that's that there. Again, I'm going to be putting
links to all of this in the description below, all right.
And this course, again I cannot express it enough. It
is one hundred percent free, okay.
Speaker 2 (17:39):
All right.
Speaker 1 (17:42):
The next course that we're going to talk about a
little bit more detail is the Home Care Territory Optimization Class.
Speaker 2 (17:50):
All right.
Speaker 1 (17:50):
This one is a paid course, as you can see.
And this course it's Marketing one oh one.
Speaker 2 (17:56):
All right.
Speaker 1 (17:57):
We will be releasing more courses as far as the
from the Marketing one on one platform, but this is
the first one and it is the core fundamentals.
Speaker 2 (18:06):
Okay.
Speaker 1 (18:07):
So once you understand, you know, it's a little bit
of intro stuff, you know, we welcome to the course.
What you're gonna learn things like that, then we get
into the fundamentals. We start going over what links, what
links you need, you need to go through. All right,
(18:28):
we start going over the elements of the of a territory. Okay,
here we are all right, We start going over all
of this. You know how hospitals play a role. Then
we start going into the Here we are identifying who
(18:51):
your caregivers are and you know, understanding some some data
points that will help you, and then what role the
commune plays. We'll also be going into detail here on
how to find your clients. You know, what you need
to understand when you're looking things up, and we use
(19:13):
data data to support all of this, how to find
what conditions are most prevalent in your area, all of
these things.
Speaker 2 (19:22):
Then we start getting into.
Speaker 1 (19:26):
More of the fundamentals here, understanding the territories, understanding things
about prospecting, creating, marketing zones, you know, what the facilities are,
(19:49):
all of these things that you need to understand. You
know that you truly need to understand in order to
build out, build out, what your course build out, what
your territory needs to look like. You know, it's very comprehensive,
very in depth, and you know you'll you'll understand that
(20:11):
you're actually getting a ton of value from this.
Speaker 2 (20:15):
All right.
Speaker 1 (20:15):
So that's that's our walkthrough on the courses here, and
that's pretty much a wrap we are including. I said,
there's a lot of a lot of things here when
it comes to here we go, you know, and we
include a few few free downloads and gifts and things
(20:37):
like that, all right, So.
Speaker 2 (20:39):
That that's that.
Speaker 1 (20:40):
That's pretty much a wrap on what our updates are
for the company. So if you want to, you know,
if you want to understand and skip ahead, you know
that that's great. There will be time stamps on the
replay if you're coming back to look at this, and
we will be posting the rep play in in a
(21:03):
you know, on Facebook on our business page, and thanks.
If you're watching this in the group, you know, just
fast forward. I will put the time stamp at the
bottom so that you have a better understanding as to
where where it is that you need to skip to,
so that you're not listening to, you know, a whole
bunch of company updates if that's not your thing.
Speaker 2 (21:24):
All right.
Speaker 1 (21:25):
So now now that we've gone through all of that,
let's get to meat and potatoes of this. Okay, let's
take a look at question one. Okay, does it make
sense to open a business with a business partner? All right,
(21:48):
So here's a couple of pros and cons as to
how you're you're going to want to do this, all right?
When you're looking at when you're looking at your options,
you have to keep in mind a couple of things.
Number One, business partners serve a couple of purposes.
Speaker 2 (22:07):
Okay.
Speaker 1 (22:10):
So purpose number one typically that a business partner will
will serve will be a financial aspect. Okay, So is
this person bringing the money?
Speaker 2 (22:23):
Aspect?
Speaker 1 (22:23):
Number two they're bringing is experience and work and sharing
the work. Okay, So those are the two elements you
really have to look at. So is this individual bringing
money or are they bringing experience and sharing labor? And
if they are, what's the buy in? Because those are
the really the big things now when you are brand
(22:45):
new in business, and I see this mistake a lot,
especially with newer agency owners that just have no idea
what they're doing, where they're moving along with and everything else,
and they think that they can open a business with
a family. They think they can open a business, you know,
with their best friend. And there's nothing wrong with that
(23:07):
I have seen it work both ways. I have seen
great partnerships, even between like husband and wife, that have
worked out fantastically and that there has been no issue
anywhere along the way. I have seen friendships work fantastically.
I've seen complete strangers come together build a business and
(23:28):
be very successful. On the other end, I've also seen
it happen the other way. I have seen where peat
two people they come in with great intentions and they
just can't make it work. So there's a couple of
things that you have to keep in mind with that.
Number One, Absolutely you have to have some sort of
(23:53):
written document that is going to define the parameters and
the boundaries of the relationship. Okay, I do not care
if this is something that you are doing with your spouse.
I do not care if you're doing this with your parent.
I do not care if you're doing this with a
complete stranger. The reality is very simple that if you
(24:16):
are going to if you're going to go into business
with someone, you absolutely must have a document that is
going to outline all sorts of things. And we're going
to get into a few of those key points here
at the moment. The reason because that this document becomes
(24:37):
so important is in the beginning. It is very easy
to start a business when there is no money involved. Okay,
the business is broke, the odds are regardless of how
much money there is. There's no real skin in the game.
Yet you're just having a conversation about moving along and
(24:57):
wanting to start a business. Maybe one person said it before,
has a lot of a lot of money but no
business experience, and the other person has a lot of
business experience and no money. More times than not, that's
how these relationships begin. Somebody's got money, somebody knows what
they're doing.
Speaker 2 (25:17):
All right.
Speaker 1 (25:18):
Now, The reason for this document isn't for right now.
It's because let's fast forward two or three or four years.
Speaker 2 (25:27):
Down the road.
Speaker 1 (25:29):
If you've done the business properly and now your business
has transitioned three to five years down the road, you
should be somewhere between that two and five million dollar
range if you're in the private pay space, potentially higher
if you're in medicaid, as far as top line revenue,
depending on how you've grown and structured your business. Now,
(25:50):
what does this all mean, Well, the fastest way to
get rid of the friendship is to loan somebody money.
So the same thing happens with this. Okay, when you
have no money in between you, it's very easy to
remain friendly when there are millions of dollars at stake,
you know, as far as top line revenue, not necessarily profit,
(26:13):
but when you're talking about large sums of money, there's
a lot of different factors that can come into play.
What happens if one partner wants to sell, what happens
if you know, as the business is growing, if one
partner is not doing their part. So you have to
start out. And I'm going to give you guys a
few tips here. If you are going to sit down
(26:34):
with someone and discuss business partnership, understand what everyone's role is.
That is rule number one. Clearly define everybody's role. If
I am the guy bringing the experience and you're bringing
the money, we need to know how much involvement you
can have. How much decision making authority am I willing
(26:56):
to give you in order to grow the business. If
I'm the one that what I'm doing and you've never
worked in senior care before, then that needs to be
outlined that you you can have a say so, but
final decision making authority goes to whoever's all right? So
have that clearly defined? What is everyone's role, what is
(27:17):
everyone's decision making authority? And who has final say? There
is no such thing as a fifty to fifty split
in the business. That is a nightmare. That that is
a formula at one end up in court. Okay, So
what you want to do is make sure that that
division is clearly said. Somebody should hold fifty one percent
(27:42):
decision making. Now the profits, that's the second part of this.
How are you going to define that?
Speaker 2 (27:49):
All right?
Speaker 1 (27:50):
So first we have decision making authority and who has
decision making power? And how is that balanced out? At
a bare minimum, someone needs to have fifty one percent,
somebody needs to have forty nine percent. Now when it
comes to division of profits, that needs to be clearly
defined as well. How if you are the person that's
providing the knowledge and the experience, but you're not putting
(28:12):
in anything for financials, at what point have you paid
the other individual back their initial investment? And you know
what percentage are you going to take? Is everybody going
to take of the profit? So is your.
Speaker 2 (28:30):
Work valued at thirty percent of net? Is?
Speaker 1 (28:34):
How are you defining net? Is your work value? At
fifty percent of net is there is there going to
be a higher percentage given to the person who invested
the most capital until everybody breaks even? And at what
point do you start taking money out of the business.
So typically you want to make sure that first you
(28:55):
understand what the monthly break even is because that should
be the starting point for repayment of any initial investment
and then profits after. Okay, So all of these things
you want to make sure you have and just to
recap clearly defined roles and responsibilities, clear decision making authority,
(29:15):
and a clear division of finances. Then once you have
all of that done, who's going to do the day
to day work and how is that going to be measured?
If you are both equally invested financially, so who's responsible
for what? Please understand this is probably the biggest thing
(29:39):
when it comes to having a successful partnership, especially if
you are talking about a situation where you're like, you know, family, spouse,
something along those lines, Okay, where there's probably a likelihood
that you guys are going to come to work together,
spend all day at work together, go home together. If
(30:01):
you do not have individual responsibilities where somebody is fully
responsible for their own tasks. This could lead to arguments
it's people stepping on people's toes. I may know more
about the sales and marketing side than you do. You
may know more about you know, the back end administrative
stuff like QuickBooks and you know, regulatory compliance and things
(30:24):
of that nature. I should never step in step on
your decisions. You should never step on mind. Now does
that mean that you don't that I don't need to
learn what you do? No, I absolutely do as a
responsible business owner, just like as a responsible business owner,
you need to learn what I do. But it doesn't
(30:44):
change the dynamic of the role. You have to have
clearly defined boundaries and this is typically how it works.
So in short, do I think that you know? Does
it make sense to open with a business partner? The
short answer is it depends all right. As long as
(31:05):
everybody's mature enough and understands what their role is in
the process, then yeah, you can absolutely have a good
business partnership that makes sense. On the final note of that,
there also needs to be clear, clearly defined instructions as
to an exit strategy. So if two people are opening
(31:28):
this business, are multiple people, who has first writer or
refusal is not going to be offered. Does it must
it be a mutual dissolution of the business. Does one
partner have to buy out the other? And you guys
have to decide how you're going to value the business,
what criteria you're going to use when it comes time
(31:50):
for the sale. All right? Question number two, how much
should I pay for a caregiver? My caregivers for short cases?
Speaker 2 (32:03):
All right?
Speaker 1 (32:04):
This was based on a couple of conversations that I've
had over the past few weeks. Shortcases are a big deal,
and they they really become a lot more prevalent when
when you're talking about areas that are kind of spread out.
Speaker 2 (32:24):
Okay, so.
Speaker 1 (32:27):
What do I mean, Like, if you're doing like, for example,
VA cases, VA cases tend to be shorter and they
tend to be a little more spread out. That's why
the VA pays a little bit higher rate than for example,
Medicaid does. And in fact, in some parts of the country,
VA pays a higher rate actually than even private pay
(32:49):
the Medicaid. You'll they'll have a lot of shorter cases
as well, but they tend to be concentrated in you know,
in relatively close areas. Now private pay because of the
relationship of where the clients live versus where the caregivers
send to live. And we talk all about this in
(33:09):
our you know, territory optimization course. So in that situation,
it may or may not make sense for you to
take a short case. That's why a lot of consultants
out there do get into the whole process of have
(33:31):
service minimums don't go below four or five or six hours.
You know, some people will even tell you to create
scaling price based on distance all of this other stuff.
Speaker 2 (33:40):
And but here's here's.
Speaker 1 (33:42):
The rule of thumb that I've learned in my career.
May people may agree, may not agree. Again, feel free
please leave us a comment and let us know what
you think that we use the.
Speaker 2 (33:53):
Ten minute rule.
Speaker 1 (33:54):
Okay, regardless of what your service minimum is. Okay, I
do believe in a service minimum, and that service minimum
should be somewhere between four and six hours, depending on
where you are, all right, so please don't get that wrong.
But the rule of ten minutes is this, every ten
(34:15):
minutes that a caregiver has to travel from their last
client to get to your client. Okay, I'm gonna explain
what I mean by that. Okay here momentarily, but every
ten minutes of travel equates to one hour of work. Okay,
so what do I mean by that. Let's say you
(34:36):
go through and you know that the typical commute in
your area is thirty minutes.
Speaker 2 (34:43):
Okay.
Speaker 1 (34:45):
In my course, I actually have a website that will
tell you what average commutes in are in certain metropolitan areas. Okay,
but let's say, like, for example, Chicago, the average commute
is about thirty six minutes long.
Speaker 2 (34:57):
All right.
Speaker 1 (34:57):
So let's say you you have a that lives in
let's say Glen Ellen. Okay, Glen Ellen is about an
hour and a half or so away, Like, let's say
about fifty five sixty minutes away from Chicago, So sixty
minutes at ten minutes, that using the ten minute rule
(35:19):
means that the client should be requesting at a minimum
of six hours. The reason is is that it has
to do with the drive time to wear and tear
at gasoline. Let's think about this this morning. Where I live, okay,
gas was at like three seventy seven a gallon, all right, So.
Speaker 2 (35:40):
And gas is not.
Speaker 1 (35:41):
Really that expensive out here, okay, So three seventy seven
a gallon, it might be more where you are.
Speaker 2 (35:49):
Whatever, So I drive.
Speaker 1 (35:52):
I drive an SUV, so at about quarter tank of
gas at three seventy seven a gallon, it's been cossible
six five dollars to fill my tank. Okay, if I
was a caregiver and I'm making you know, fifteen fifteen
to eighteen dollars an hour, which is about average where
depending on where you are. Okay, in the Chicago, Chicago area,
(36:16):
if I'm not mistaken, they're making about seventeen eighteen an
hour anyway, So that means to fill my tank, I
need a minimum of three and a half hours of work.
So using the ten minute rule six hours makes sense.
But what you know, you're probably thinking yourself, well, we're
talking about shortcases. So what happens if the client only
(36:37):
wants two hours. Well, here's where the problem comes in.
We're asking the caregiver to do a sixty minute commute
for two hours of pay. That means the caregiver will
not be satisfied unless they have about six hours equivalent
of pay. This is where that bonus comes in. That
a lot of agencies pay to get the caregiver to
(36:58):
show up. So if you equate the amount of hours,
you put a dollar value to it, and it could
be quite simply, here you are, we're paying you two hours,
but we're going to give you forty dollars worth of
gas to go out there on a gas card. Now,
why would you do that as an incentive? The incentive
for that is very simply. Forty dollars gas card may
(37:22):
be equivalent to two hours and change worth of work.
So it's actually going to cost you cheaper to give
them the forty dollars gas card than to give them
what they would be expecting, which would be an additional
four hours to pay.
Speaker 2 (37:35):
Okay.
Speaker 1 (37:36):
The other benefit of this is that one it becomes
an instant gratification for them, Okay, I got a full
tank of gas for going out to cover this case
for a couple of hours. So they have a higher
likelihood of going out there for the incentive, and it
saves you money because talk to your accountant. I'm not
giving financial advice here, but many times giving a gas
(37:58):
card to an employee becomes a tax write off, all right,
So all of these instead of tape paying the additional tax,
paying the additional taxes for giving a higher rating rate
of pay. So this is what you want to look
at when you're taking into account whether or not to
take these short cases. Now, on the other hand, let's
(38:19):
take a look. We're only now looking at it from
their home to the client, which was a sixty minute commute.
Let's be more realistic. We all know that many caregivers
work for multiple clients. So if for multiple agencies, okay,
so let's take a look at it this way. If
(38:40):
I know caregiver X is working for me and for
home care agency XYZ down the street, I'm going to
ask them, hey, where does the client that you're leaving
actually live? Because that is the real commute. It's not
from their home to the client. It's from the last
(39:02):
client to your client. So depending on the time of day,
that sixty minute commute from their home to howl where
you are may only realistically be a fifteen minute commute
or twenty minute commute, where the two hours that you're
trying to staff make sense. So this is where it
comes down to understanding the layout of your service area
(39:26):
of your You know where your caregivers live, where the
clients live. All of this other stuff comes into play,
and if once you have a good solid understanding of this,
you'll be able to map out and more effectively, not efficiently,
but more effectively. Schedule your caregivers to get more shifts covered,
even if you want to take these smaller shifts or
(39:48):
you have to because of how you're getting paid, you know,
and you'll actually be able to get them covered better.
Here's the thing that a lot of people don't take
into account. The commute often pays a bigger role in
retention for caregivers and on the caregiver's reliability than just
(40:10):
about anything else. You can offer a caregiver twenty five
dollars an hour in an area that's only paying you know,
fifteen or eighteen, and they may still flake on you
not show up to that case once they look at
it Google maps and they see, oh no, that's going
to take me too long to get there because they're
looking at it from a different perspective than you are.
(40:31):
So understand it, Know where everything is, Understand what the
rate is, and keep in mind the ten minutes. All right,
all right, any questions so far? For those of you
that are watching, you know, give us a thumbs up.
If you're finding this, you know, helpful, useful, you know,
(40:51):
leave us comment below whatever it is you're doing. If
you're watching the replay, please don't forget to give us
a like and leave a comment as to what you're
thinking on all of this. All right, that being said,
question number three, I'm looking to buy an agency with clients.
(41:11):
What should I look for besides EBITA?
Speaker 2 (41:15):
Okay?
Speaker 1 (41:17):
EBITA stands for earnings before interest, taxes, depreciation and amortization. Okay,
So for those of you who don't understand what that is,
all right, what it comes down to is EBITA is
how people value their business. So, after you pay all
your bills, okay, what are you really making? So, like
(41:40):
I said in the beginning of this video when I
was talking about the monthly break even free class that
we have again links links are going to be made
available after I finished doing this live. So the after
all of that is done, all right, what is Oh,
you're very welcome, rebelia. So after all all is said
(42:02):
and done, what are we actually going to? What do
we actually looking for? How much money are you putting
in your pocket? I could bill a million dollars a year,
but if I'm only putting in my pocket fifty thousand dollars, yeah,
I have a terrible business. Now if I'm billing a
million dollars a year, and I'm putting in my pocket
(42:23):
two hundred and fifty thousand or two hundred and eighty
thousand dollars. Now I have a business that shows growth.
But here's here's the thing. There's a lot of factors
besides EBETA that goes into the value of a agency.
What is what is the likelihood of your staff staying
(42:45):
after you leave. So let's say you're the business owner.
You want to leave, but you've got terrible culture, you
don't have solid staff that's been with you for a while.
You know, all of this just you're you have like
diculous turnover rate with your caregivers, ridiculous turnover rate with
your internal staff. People don't feel they can talk to you.
(43:07):
So once you leave, you know it's over. You know,
that makes your business worth a lot less, not worthless,
but just worth a lot less than it would be
if you had a solid culture, good policies in place,
good SOPs, so that it makes for smooth transition. Basically,
you need to figure out a way to hit the
easy button in your business.
Speaker 2 (43:29):
Okay, So.
Speaker 1 (43:32):
That's one thing, that's one evaluation that you need to
need to look at. Another thing that you really want
to take a look at, is what percentage of the
caregiver pool is is actually staying Like in other words,
how bad is your retention or your turnover rate seem
(43:52):
Because depending on where you are and how you've structured yourself,
the true cost of a care giver retention I'm sorry,
caregiver turnover fit greatly varies. There's a big calculation for this.
There's a lot of things that come into play, you know,
like time, time to efficiency. You know, the cost of
(44:13):
the staff to train, the cost of your recruiters, you know.
Speaker 2 (44:17):
Advertising budget.
Speaker 1 (44:19):
So basically, if you look at the industry standards, they're
saying it's about twenty five hundred dollars per caregiver. I'm
going to tell you I do these calculations for my
clients when I come in to evaluate businesses for them,
and the reality is I've seen it as low as
three hundred dollars per caregiver. I've also worked with clients
(44:40):
that have had a true cost of turnover be as
high as forty five hundred dollars. Okay, because there's so
many factors involved in that, and that cost of turnal,
your turnover rate will actually impact the value of your business.
So and it all comes down to the same same thing.
How efficiently have you structured your business and what plans
(45:04):
do you have in place. So if you have a
turnover rate, let's say a thirty day turnover of seventy
or eighty percent, you need to figure out where is
it that you're losing your caregivers and then come in
make adjustments and get this all fixed.
Speaker 2 (45:19):
If you are.
Speaker 1 (45:22):
If you're having a low turnover, let's say, because industry
average is fifty percent within thirty days, well let's say
your fifty percent turnover rate is thirty percent instead of
fifty percent in the first thirty days. Now you have
a business that's actually worth more because you're potentially creating
more revenue. So average depending on you know, your business
(45:42):
model and everything else, but industry average it's about eleven
thousand dollars per caregiver, and your average caregiver will work
with you three clients, so depend the longer your caregiver
stays with you, the more money they're actually bringing into
your agency. See, people don't look at the revenue and
profit that's associated with recruitment. People just think, oh, I'm
(46:04):
trying to cover a case or oh yeah, these caregivers
are terrible. But there's a lot more involved in this,
and there's a lot more to retention than all of this.
So that's one thing your staff and your turnover rates.
Speaker 2 (46:16):
Okay.
Speaker 1 (46:18):
Now, another thing that you're really going to want to
take a look at is the viability of your marketing.
So if I was going to go in and purchase,
and this is part one of the evaluations that I
said that we do for clients, it's great, find a
business broker, find somebody. I mean, hey, listen, I'll I
can recommend you a fantastic one if you're looking to
buy or sell a home care agency. But there's things
(46:40):
that you know, all sorts of people leave out. They
do not take into account when they're looking at it
from an accounting perspective. How viable is your territory your
market So here here's what I mean. If you are
a franchise, Okay, if you own an agency under a franchise,
they give you a set territory, meaning that set number
(47:03):
of counties a population, depending on which franchise system you
belong to, is how this is gonna work. Most of
them give you somewhere between two hundred thousand, and like
at the upper end that I've seen has been about
four or five hundred thousand population. Those are limited areas,
so you can only open an office that will service
(47:26):
those areas. Here's the problem. What if you get an
area that, based on demographic shifts, Okay, all of a sudden,
a whole bunch of older people die off and their
kids move away, or or all of a sudden, you know,
like unfortunately the reality of some parts of the country
right now, you have actual medical facilities because of high
(47:50):
crime rates closing down. So now you have actually built
a business in an area based on for example, private
pay and because of the increase in crime and everything else,
now your territory is no longer viable, okay, meaning you
cannot sustain growth in that area anymore because the people
(48:12):
that would have been able to afford your business has
gone down. All right, that that could be detrimental to
the sale of your business.
Speaker 2 (48:21):
Okay.
Speaker 1 (48:22):
The same thing can happen on the other end. Let's
say you've built a strong and solid medicaid business. You're
you've created something that's bringing in seven eight ten million
dollars out of one or two offices. Now comes time
to sell. But again you have a revert. You have
a different set of populationship now you went from you've
(48:43):
got a lot of expansion. You've got the government is
trying to bring in business. They've increased the income, meaning
less people qualify for Medicaid now, so the viability in
the future of that business has gone down. And these
are other things to keep in mind to consider when
you're buying or selling a home care agency. It's not
(49:06):
as simple as ebita all right, And it's not as
simple as just oh yeah, you know, this looks like
a great staff. The staff says, they'll stay okay. I've
been through a lot of sales, both when I was
working enfranchising and both then as an independent consultant where
I've come in and done these evaluations for people and
(49:28):
you know after the fact though, like I've been brought
in after they've purchased a business or after it's been open,
and people don't have an understanding as to what all
of these factors go into play, because all they did
was listen to the business broker or to the accountant,
and the accountant says it looks good because they're taking
a snapshot of that moment you know, like, here's another
(49:51):
really big one that I've done a number of these
evaluations for sale. How good is your relationship with is
that agency's relationship with the local market? What I mean
is this, Let's say I own X, Y, and Z
Senior Care and let's just pick Cincinnati, Ohio, just randomly. Okay,
(50:15):
Now I have a great relationship with these facilities, not
my staff. There is no depth in my business. That
means that there is nothing really going on as far
as the minute I.
Speaker 2 (50:29):
Leave, the faith in the agency leaves with me. Okay.
How well developed is your business development? Okay?
Speaker 1 (50:38):
So if you have an agency and you're one day
going to go to sell it, make sure that you
are building this with the purpose of sale in mind. Look,
it doesn't matter if you want to do this until
you drop that in the business. The business will still
change hands. If it's an inheritance and your kids or
your grandkids or whoever some family is going to take over.
(51:02):
If you are going to sell it, if you're going
to burn it to the ground, whatever it is you
want to do, you have to plan day one what
that's going to look like. Okay, So if I'm going
to be Johnny Young, jack of all trades here, and
I'm going to be the owner.
Speaker 2 (51:20):
I'm going to be the marketer. I'm going to be
the recruiter.
Speaker 1 (51:23):
That means I am building a a business on a peg,
not on a step, okay. So there's no foundation there.
So that means that business could be producing you know,
one and a half two million dollars a year, and
it is a worthless business, okay, because there's no structure
(51:44):
at place, there's no team, all right. So I'll tell
you this is actually something that I went through not
too long ago. I did a business evaluation, you know, again,
not financial. If you want people to do that type
of stuff, I could recommend them for you. But I
did a viability evaluation because somebody wants to prepare their
business for sale, went out there, visited with him, spent
(52:09):
about three or four days. And the reality is when
we went to these facilities, nobody knew anybody else in
the stead.
Speaker 2 (52:19):
Okay.
Speaker 1 (52:20):
The only person that was going to market was the owner.
And that becomes terrible because now that owner has to
fix this and instead of selling in the next ninety
days that they were hoping to, they have to now
put all these systems in place to make it more
attractive for a buyer. Understand something. People who are looking
to buy established businesses are not typically entrepreneurs. Typically they
(52:45):
are investors. They want to be able to buy your business,
put it, you know, come in, leave the management team
in place, and have it continue to make money. Then
they'll evaluate the processes and figure out how to improve them.
They will bring in people like me after the purchase
is done, just to see how they can improve the process. Okay,
(53:06):
but when it comes to this, that's what they're looking for.
And if you sell and if you're thinking, you're watching this,
you're thinking, oh, yeah, I'll just sell it to Capital Venture.
They are even more stringent about having businesses that operate
on autopilot. They really do not want to. They have
teams of people like me that come in and they
when they're doing their due diligence. Yes, they're looking at
(53:28):
your financials. Yes, they're looking at things like, you know
how much profit is being made, how long before they
make a return. All of this stuff. They're taking a
look at what they have to streamline. Where your salary
and you know how much you're overpaying your staff. All
of that normal stuff. Okay, but they also have teams
(53:49):
of people that are experienced territory and data analysts. They're
going to come in and they're going to actually and
look at the operation of your business. What is it
that your business is going to be able to produce
for them long term? How long will they actually be
able to hold onto this? They don't care to remember.
(54:11):
These are not you who is coming in with a
passion for the business. You as an owner, you do
it for the love of what you're doing as an investor,
they're doing it for the profit.
Speaker 2 (54:23):
Okay.
Speaker 1 (54:24):
They want people in place that do love what they're
doing so that they can go out and make money
for them. But their goal is the bottom line. So
you need to understand and this is one of the
things and it's not a you know, it's going to
be a shameless plug, but this is why I always
recommend you should be doing an analysis and evaluation of
(54:46):
your chosen territory. If you're an independent and if you're
a franchise e, you should be looking at, you know,
how everything is shifting in your territory annually. It will
help improve things, it'll just make go smoother. So that
is the you know, the answer so as to what
(55:07):
you should look for if you're doing this now, I'm
going to open this up. There's a few people watching
us live.
Speaker 2 (55:14):
Ask away.
Speaker 1 (55:15):
If you got a question, leave it in the comment
and I have it up on my other screen here. Oh,
you're very welcome, Frank, you know. Yeah, you have a
great day as well. If anybody has anything they want
me to go over before I sign off for today,
(55:36):
any other feedback, you know, please, by all means, leave
a comment and I'll answer it for you here in
the next minute or so.
Speaker 2 (55:56):
All right, So.
Speaker 1 (55:59):
Unless I get another question here in the next second
or two of you know, thank you all for watching
so much. Really appreciate you taking the time out of
your day to join me again. Just to recap a
little bit of the beginning. I'm gonna be posting a schedule.
We're going back to doing these live sessions every week,
all right. Leave a comment either in this or if
(56:21):
you're watching the replay, let us know when you when
works best for you. We used to do it every Wednesday,
with the occasional bonus one on Saturday that was unannounced,
or we would switch back and forth, like one week Wednesday,
another week Saturday. But if another time works for you,
let us know. I typically do like to do these
at around one. Can you DM me with a question? Yes, Debbie,
(56:46):
by all means shoot shoot the question and we will
we'll see about getting it answered for you. So but
the other thing is, please take take the time to
go ahead and look at take a look at the courses.
(57:09):
It is free, you know. We have the monthly break
even one for free, and we do have the territory
Optimization class and it's a low cost. Right now, we're
doing it for six fifty. That's temporary. Come January, I'm
going to be raising them only because I'm raising the
prices on them. I haven't decided yet to how much,
(57:29):
but that's a few months away. So thank you, and
don't forget. You can always book a Discovery Paul with
us if you're looking for services.
Speaker 2 (57:37):
All right.
Speaker 1 (57:38):
If you're watching this live, thanks again for participating. If
you are watching the replay on any of the social
media platform, most likely YouTube, because that's where I post
everything on here. You know, after I do these lives,
you know, leave a comment below and don't forget to
like the video and subscribe. It really helps us with
(57:58):
the algorithm. All right, have a great day everybody. I
look forward to hearing from Debby
Popular Podcasts
Fudd Around And Find Out
UConn basketball star Azzi Fudd brings her championship swag to iHeart Women’s Sports with Fudd Around and Find Out, a weekly podcast that takes fans along for the ride as Azzi spends her final year of college trying to reclaim the National Championship and prepare to be a first round WNBA draft pick. Ever wonder what it’s like to be a world-class athlete in the public spotlight while still managing schoolwork, friendships and family time? It’s time to Fudd Around and Find Out!
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!