When the owner's not buying new equipment
The practice owner at the hospital where I'm an associate won't invest in a new piece of equipment that I think we really need. How can I convince her to buy?
Get to the root of the problem, says Fritz Wood, CPA, CFP, a financial consultant and owner of H.W. Wood Consulting in Lake Quivira, Kan. "Why won't the owner invest in new equipment?" Wood asks. There are several reasons she might balk:
1. The owner is afraid she won't be able to pay for the new equipment.2. She's afraid of learning how to use the new equipment.
3. She worries that clients won't buy the new service.
4. She doesn't believe the new option is better than what she's got.
Once you discover the reason for the owner's reluctance, you'll know how to proceed, Wood says. "For example, if the owner is afraid the equipment won't pay for itself, you can estimate how often you'll use it and the gross and net income you'll generate each time," he says. "Just be sure to estimate the best case, worst case, and most likely scenarios."