Recently a NAMSAP member posted a question to the membership about how he could start an MSA business and garner the attention of insurance company and attorney clients. I am not sure that this forum was the right place to solicit such information since a group of competitors is probably not the best place to get helpful information. But the question is valid and it reminds me of what has made MEDVAL successful over the years. Here is my advice to this gentleman.

1.  Be great at what you do - There is no substitute for experience and professionalism. Take pride in your work, develop the skills needed to do a competent job and always seek to improve your knowledge. The world is full of so called "experts", be the real thing and customers will find you.

2. Deliver exceptional customer service - Most businesses provide good service. But loyal clients are developed by going above and beyond the call of duty. That means answering a phone call after hours, working through the weekend to meet a mediation deadline and always delivering more than you promise or the customer expects.

3. Be a problem solver - Too many people in the world are content to let others figure out problems for them. Don't be one of them. If a client has a problem, YOU figure out how to help them solve it. And most of all, don't become the problem yourself as so many vendors in the MSA industry have historically done to the detriment of their businesses.

4. Never stand still - Business moves at the speed of light. While everyone is playing catch up, you need to deliver industry leading solutions and continually push the envelope of what is possible in your field. Innovation is possible, even in seemingly static industries like Medicare Set-Asides, structured settlements or custodial administration.

5. Develop a reputation for honesty and integrity - Always tell your clients the truth even when they aren't going to like it. A wise lawyer once said the hardest part about practicing law is telling a client something they do not want to hear. And always do what is in the client's interest even if it momentarily conflicts with your own. Successful businesses are built over the long run and clients have very long memories.

6. Be humble - No matter how successful you are there is always someone doing better. Be thankful for whatever business your clients entrust to you and appreciate the small customers as much as the big ones. I am reminded of a structured settlement company that always boasts about how much better they are than their competitors, how they only do the "big" cases, yet financially underperform year after year.  Maybe their hubris clouds their judgment about what value the market places on their services.

7. Treat your employees like the invaluable assets they are - Great service businesses are built with great people. Find the best people you can and pay them 10% more than the "market" rate. Great people deliver great results and are worth the extra money. Always appreciate that top performers have other places they can devote their time and energy.

8. Find customers that fit with your business philosophy - No one can be all things to all people so don't try. Decide what you are best at and go from there. For example, we never participated in the "guaranteed MSA" marketing and did not seek out clients that wanted a guarantee. Nor are we aggressively pursuing MMSEA reporting in exchange for a Medicare Set Aside relationship, exclusive or otherwise. That may have cost us some clients but we don't believe our clients best interests are served by these types of programs.

9. Treat your vendors and partners with respect - One thing I have learned over the years is that seemingly "unimportant" people/vendors can have a huge impact on the success of your business. If you treat everyone fairly and with respect, there may come a time when they are in a position to influence a potential customer to do (or not to do) business with you. Even if that is never the case, wouldn't you rather have more friends than enemies?

10. Learn to run a business - You don't need to have an MBA from Harvard but you do need to understand the fundamentals of business. You cannot accomplish Steps 1 - 9 if you can't attract customers or your paychecks always bounce. A fundamental understanding of finance, human resources, marketing, sales and operations is critical no matter what business you are in.  Many a business has been done in by an incompetent President or CEO who thinks that their "industry knowledge" is an adequate substitute for sound business practices.

And finally, if you don't love what you do, then become a jewelry designer or hedge fund manager….life is too short.

Medicare Set-Aside Allocation/Arrangement Recommendations

Submissions to Centers for Medicare and Medicaid Services

Post-Settlement Administration

Pharmacy Benefit Management