7 Warning Signs Your Nemt Business Is Failing
No business owner wants to fail, but the reality is that 1 in 5 small businesses will fail within their first year. If you don’t want to become part of this statistic, you need to learn to recognize the signs that your business may be failing. The NEMT industry is a growing one, and there’s a lot of potential to run a successful gig for years to come. But, if you don’t catch red flags and figure out how to fix these problems, you’re going to struggle. Watch out for these signs that your business may be in trouble, and learn how to prevent them from happening in the first place.
Poor Employee Retention
If your drivers, dispatchers, and other members of your team aren’t sticking around for long, this could be a sign that your business is entering dangerous territory. It’s natural to have employee turnover, but if you’re noticing unusually high turnover rates, it’s time to figure out why that’s happening. As a new business, your goal is growth. It’s important to remember that your employees can and will leave the job if it’s not fulfilling, or if they find something better. That being said, focusing on employee satisfaction is an important task, especially as you build your business. A few big things you can do is offer competitive pay and flexible hours, create a comfortable work environment, and prioritize regular team building activities.
Your Cash Flow Is Plummeting
It can take a year or even longer for a new business to become profitable, but that doesn’t mean your cash flow should be suspiciously low. If you find this to be the case, you need to look into the problem and figure out where it’s stemming from. Do you have more drivers than necessary clocked in each day? Are you taking inefficient routes? Are you missing out on trip opportunities? If you’re experiencing any of these things at your business, there’s a chance you’re losing precious cash. The good news is, if you can identify where you’re struggling the most, you can adjust your tactics to improve your financial situation.
There’s a New Problem Every Day
Problem solving is a part of life, and that’s no different for business owners. Having the ability to calmly and rationally solve problems makes you a great leader. However, there’s a difference between a few problems here and there and finding a new problem every day. If this is happening, it’s probably because you haven’t figured out a proper process for your daily operations yet. This is okay, but if you don’t sort things out in a timely manner, your business is going to suffer because of it.
You Aren’t Securing Regular Trips
If you aren’t finding frequent trip opportunities, your business could be in trouble. As a new NEMT provider, it’s common to start out slow as you search for broker partnerships and private pay opportunities. However, as you begin to establish your business, you shouldn’t have a problem completing a handful of trips every day. If you find that your numbers are slipping, there may be a few reasons for this. Get in touch with the brokers you work with, and see if they’re experiencing a decline in trip requests. If they are, this could be due to the time of year, weather patterns, or something unrelated. It’s important to note that trip requests ebb and flow, so if there’s a small decline for a week on both the broker side and your end, it’s probably not cause for serious concern. If you’ve dealt with some recurring private pay passengers who haven’t booked a new trip in a while, follow up with them and ask if they’d like to book a ride for a scheduled appointment. Ask if there’s anything you can do to improve their trip experience or if there’s anything preventing them from rebooking with your company. It’s important to make sure you don’t burn any bridges with your customers, and if there was a problem, you should try your best to rectify it.
You Haven’t Had Success With Private Pay Passengers
Every NEMT provider runs their business differently. Some choose to work exclusively with private pay clients, while others commit to finding trips through broker partnerships. If you’re a company that falls in the middle of these two scenarios and you haven’t had much luck with private pay clients yet, this isn’t a huge cause for concern, but it’s definitely something to monitor. This is because when you receive trips through brokers, your reimbursements are limited to the amount your state Medicaid agency pays. If your business is in a state with reimbursement rates that won’t help your business quickly achieve the growth and profits you’re hoping for, private pay clients are crucial to your success. With private pay clients, you set your own rates, and you receive the full amount paid. Private pay passengers can be difficult to find, but once you have a loyal group of customers, you’ll be well on your way to reaching the profits you want.
You aren’t Passionate About Your Business Anymore
If you can’t remember what inspired you to start your business in the first place, this might mean that it’s not worth pursuing the vision any further. People start their own businesses because they’re passionate about solving a problem and putting their own unique spin on the solution. If you wake up every way dreading the work day and don’t care about the future of your business anymore, it’s probably time to cut your losses. It can be tough to walk away from something you built from scratch, but it’s not worth putting your valuable time and money into something you aren’t passionate about. If this sounds like your situation, think about what’s best for your business moving forward, and make that decision.
You haven’t Found Reliable NEMT Software
NEMT scheduling software is built to make your job simpler. When you find the right system, your entire trip management becomes a breeze. However, if you’re working with an outdated system or you’re still managing your business manually, your results could be suffering. If this is the case, it’s time to commit to finding software that changes the way you do business. At iSi Technology, we specialize in developing software for NEMT providers and Medicaid and homecare billers. We’d love to show you a free demo of one of our products—if this is something that interests you, get in touch with us today!