What would you do with a $200,000 line of credit, or a windfall in that amount?
What would you buy? Who would you hire? What would you do to grow your practice or free up more time?
Would you hire more or better employees? What would you have them do?
Would you invest in additional web assets?
Would you invest in advertising, or increase your ad buys?
It’s up to you.
You might pay off higher interest debt. Maybe you’d open a second office, or move to a bigger one. Maybe you’d buy new computers or furniture or invest in training your staff to work more efficiently.
Think about your SWOT: Strengths, Weaknesses, Opportunities, and Threats. How would access to cash allow you to maximize your strengths, minimize your weaknesses, take advantage of opportunities, or neutralize threats?
What do you want to accomplish this year? Where do you want to be in five years?
Maybe you would invest in a business venture outside of your practice. For additional profit, for retirement, or just something you’ve always wanted to do.
As you think this through, you might decide to do nothing. You know you’re on track to meet your goals and you don’t need a pile of cash to get there.
The point of this exercise is to make you think about where you are and where you want to be. It’s to make you see what’s possible if money wasn’t an issue. It’s to give you ideas you can put on the drawing board.
If cash or credit would help you accomplish your goals more quickly, begin working towards acquiring a line of credit or amassing a pile of cash.
If you don’t need capital to get to the next level, however, consider building a line of credit anyway, because once you get to the next level, you might need cash to get to the level after that.
Do you know The Formula?