Tuesday, January 01, 2008

Expert Practice Management

One reader of our newsletter for experts recently shared with me these business model suggestions he uses in managing his own expert witness and consulting practice:
"These are basic operating rules that, in my opinion, if broken will cause problems:

1. Keep a low overhead. I work from my home, have resisted the temptation to pay anyone else rent. If the money is not coming in I don't have someone else looking for a check every month.

2. Stay out of debt. This sinks most businesses. I have a new car but it's not a Mercedes, BMW, etc. and I keep them 6 or 7 years. If you need a new car for a site visit or to impress a client, rent one for the day.

3. Keep a cash reserve. I always have at least a year of operating revenue in a CD. I do this not only for bad times but in place of buying disability insurance which has at least a 90 day deductible and is very pricey."

Do you agree with these suggestions? What are your "hard and fast" rules for maintaining a healthy practice? Share your policies and procedures in the Comments.

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