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When the doc's just not buying it
The practice owner won't invest in a piece of new equipment that I think we really need. How can I convince her to buy?
Q. The practice owner won't invest in a piece of new 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 who owns H.W. Wood Consulting in Lake Quivira, Kan. "Why won't the owner invest in new equipment?" Wood asks. There are several reasons the owner might balk:
1. The doctor is afraid she won't be able to pay for the 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's 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's afraid the equipment won't pay for itself, you can estimate how often you'll use the equipment 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."