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.