Managing cash flow effectively is crucial, especially when scaling a business like ours. Initially, we reinvested every dollar we earned back into the business. As we've grown, not only have we been able to pay ourselves better, but we've also established a financial safety net for each clinic. Every location maintains a "rainy day fund" that ensures we can cover all necessary expenses for up to two or three months, should we need to shut down temporarily. This fund never drops below a certain threshold. If it exceeds this limit, we can distribute dividends and bonuses.

Calculating the "vitality number" for each clinic helps us gauge the health of our financial reserves. Typically, this number is three to four times our payroll, which we strive to keep below 30% of our expenses. This calculation ensures we can cover payroll, marketing, cost of goods, and still have a margin for growth.

As the business expands, the financial needs can sometimes surpass the revenue we generate. In such scenarios, we've explored several strategies. One effective approach has been partnering with smaller entities within our industry. By integrating them into Genesis, they retain significant equity while gaining access to our comprehensive back-end management and marketing support, which often leads to a substantial increase in their revenues.

Alternatively, securing specialized loans from banks like Bank of America or Chase, which offer up to $2 million for medical ventures, is another viable path. These are especially common in the dental and medical sectors.

Lastly, selling a portion of the business to venture capitalists or private equity firms offers a direct influx of capital, crucial for extensive scaling efforts. This option not only provides immediate financial relief but also strategic support to foster further growth.

This multi-faceted approach to managing and leveraging cash flow has been integral to our ability to expand and thrive in a competitive market.