Every new business needs a business plan, including a medical practice.
A business plan is a roadmap to the success of your practice. It shows you where you are starting, where you want your business to be in the future, and how you plan to get there. Here’s a look at the important points to include in your business plan and how to write them.
- Mission Statement: Why have you chosen to start your own practice? What are your personal and professional reasons for taking this step? What do you want to achieve?
- Objectives: Think about your practice 1, 3, and 5 years from now. What do you want it to look like? What type of patients are you treating? What type of staff do you have? What type of presence do you have in the community?
- Budget: Research various costs in your area and create multiple scenarios for what you will spend to open your practice. Plan A will be what you have to spend to get your doors open. Plan B will include what you will purchase if you have any money remaining from Plan A. Plan C is for your ideal future plans, purchases, and upgrades as your practice becomes profitable.
- Timeline: Map out your timeline from initial research to opening your doors. Know when each step has to happen for maximum efficiency. If your time to opening is either too short or too long, it will cost you more money.
- Market Research: Check out other providers as well as payers in your area. What is your patient demographic? What are the expected charges for services you plan to provide?
- Profitability Projections: Use a spreadsheet to create projections for expected expenses and revenue for at least your first 12 months.
- Ideal Patient Profile: Envision the type of patient you want to treat and create a patient avatar. How old is your patient? Where does your patient live? Where do they spend their days? What is their income? What type of services do they want?
- Services You Will Offer: What type of services do you plan to offer? Do they complement the needs of your ideal patient?
- Goals: Think again about where you want your practice to be in 1, 3, and 5 years. What will be your annual revenue? Will you expand?
When you are ready to begin writing, remember to keep it short and to the point. Avoid long, complicated sentences and stay away from medical jargon, using instead simple, straightforward language. Effective business plans are easy to read.
No matter what format you choose for your business plan, you must have one to guide the success of your practice. If you are applying for a loan to start your new practice, banks will require a formal business plan. And, even if you aren’t seeking financing, a business plan is a valuable tool for understanding how your business is put together, holding yourself accountable, and monitoring the progress of your practice.
If you are thinking about starting your own practice, download this helpful guide.