Welcome to On Demand's first article in our blog series "The Pillars of Private Practice Success." Our goal is to inspire medical professionals who are thinking about launching a new private practice. Over the next several weeks, we'll cover topics like hiring clinical and non-clinical staff, how to obtain medical equipment, medical billing and identifiable marketing.
Today, we start with the value of a strategic business plan and introduce you to the elements you should include in one.
How Business Plans for Independent Practitioners May Differ From Other New Businesses
Think of a business plan as your roadmap to success. It illustrates your starting point, your immediate and long-term growth goals, and lays out your plans to get there. Like any entrepreneur, you'll use a business plan to:
- Secure business loans
- Secure initial credit accounts from vendors
- Create marketing strategies and tactics
- Make a budget, project your expenses, and plan expenditures
For medical professionals in particular, a strategic business plan can help you find the right community and physical location for your clinic. This can further aid in deciding whether tenant improvements are needed, or a new facility is required. It can also help you formalize your unique needs for medical billing and administrative processes to support your specialty, such as information/risk management and HIPAA/PCI compliance.
Priority Elements of Your Business Plan
Your first draft of a business plan should include:
- A mission statement that represents your practice and resonates with your target market
- A timeline that describes long and short term objectives for the next five years
- A well-considered budget
- Market research and profitability projections
- An "ideal" patient profile
- The list of services you'll offer and how the community will appreciate those services
Once you've gathered that information and made the choices about your practice, here are some items to avoid:
- Bad-mouthing or bashing your competition
- Unrealistic financial projections
- Too many granular examples or patient case studies
- Too much information overall — nobody wants to read a 100-page business plan, so keep it to four or five pages that detail ten or twelve key points.
But most of all, remember that your business plan will be a tool to secure financing. More than anything, creditors need to know you have a solid plan for billing and collections. Even if you're self-financed, you'll want to have that plan in place.
At On Demand Solutions, our team is ready to help you craft a meaningful, professional business plan. We provide business solutions for independent medical professionals and private practices. From administration to medical coding and billing, we have the tools your practice needs, and we understand your compliance requirements. Start fortifying the pillars of your practice with On Demand today!
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