How to Write a Business Plan for a Medical Practice
Writing a business plan is a key element to starting a successful practice. Starting a medical practice requires specialized knowledge. Research and develop that knowledge to write an accurate business plan. By understanding and organizing the essential information required for your business plan, you can begin you medical practice secure in the knowledge that you understand your business and that your business plan reflects that understanding.
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Instructions
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Conduct market research for your medical practice. Find out how many practitioners offer similar services in your area. Investigate your competition for weak points in their practices such as high staff turnover rates or limited services. Use this information to develop a marketing plan that capitalizes on these points to give your practice a competitive edge. Create a profile of potential patients in your area and how often they seek services. Write up a marketing section for your business plan that summarizes your research and describes plans to capitalize on these factors to make your practice profitable.
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Develop a fee schedule that is marketable and covers your expenses. According to the Southern Medical Association, "Medicare relative values are many times used to determine procedure values. This can be a good point to begin developing the fees for the practice." Assess the minimum acceptable fees you can charge while still covering your business expenses, the Southern Medical Association also recommends. Use these guidelines to develop fees that are appropriate for your market and still profitable for your business. Develop an estimate of the average amount of fees you will collect per patient annually to use in your financial assessment.
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Develop an overview of the financial prospects for your practice. Create financial projections that look at least several years into the future of the practice. Use your market and fee research to develop an estimate of the number of clients and the average amount each client will pay into your practice to project your practice's annual income. Make a detailed list of expenditures including things like insurance, office rental costs, equipment purchases, advertising and taxes. Use this information to analyze the profitability of your business. Summarize the results of your research for the financial section of your business plan.
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Write an executive summary. The executive summary is the first thing readers see, but it should be written last to properly introduce the rest of your plan. Summarize your marketing and financial research and explain why your practice will be successful. Use the company mission statement to sell your plan to potential investors and briefly detail your company philosophy. Also include practical information like the location of your practice, your business services and the structure of your company.
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Tips & Warnings
Ask an accountant for help if you are confused by the financial section of your business plan to be as accurate as possible.
