If you want to create your own medical practice, know that it can be a very difficult process. However, it’s only the beginning that will be hard, and once you get up and running you can slowly build up a head of steam in operating your business.
The most difficult part of any business is to figure out what it is all about. While some may think that once they have the basics of what products or services that they want to offer and who much they would like to charge for them, then that would be it. That, however, is very far from the truth.
A business plan is a blueprint or a rudimentary manual of how you would run your business. It contains everything that your medical practice will and should be. By creating these guidelines early on, you will be able to have a concrete plan in your hands when your practice starts to run.
It is also very important to note that business plans are not only limited to those who are starting a medical practice. Those who already have an existing business can greatly benefit from having a solid business plan that they use, for example, to request for additional investment or to entice partnerships.
If you do not have the time to create a formal business plan but would still like to know the basics of creating this type of document, then read on.
The executive summary, as the name implies, summarizes the nature of your business. It will include data arranged in such a way that, at a glance, the reader will immediately understand what your business is all about.
Information that should be included in the executive summary include:
- Business Name
- Contact Information
- Product and Services Provided
- Target Market
- Mission Statement and Vision
Your executive summary will give a clear idea of the business that you are trying to build. Many investors only look at executive summaries and will delve deeper into the plan once they like what they see. As such, make sure that this section is done well above all else.
Products and Services Offered
A medical practice encompasses many aspects. Will you be providing medical services only, or will you also be selling products such as medication or supplies? Be as specific as possible and categorize whenever it is necessary.
When listing down products or services being offered, provide a detailed description and also list down the advantages of why these offerings can help the business. Discuss why your product or service is unique and write it as if you are actually making a sales pitch to the reader.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. List down the strengths and weaknesses of your business with relation to all areas such as competition, geographical location, market share, product uniqueness, among others.
Opportunities and threats to the business such as changing landscapes in the industry or technological advances should also be mentioned. By listing down all of the factors, you would be able to create action plans to take advantage of strengths and opportunities while aiming to eliminate weaknesses and threats.
Your action plans on how to do move forward with your business according to the SWOT analysis can be included in this section as well.
Market and Competition Analysis
This section will include a very detailed study of both your target market as well as your competitors. The geographical scope of this study will depend on your intended reach. Be as thorough as possible when it comes to your research and cite references if data was derived from third party sources.
For your target market, develop a profile for your primary, secondary, and tertiary clientele. You can then break these down further by categories such as age, gender, or location. From this information, you can see and possibly even project the potential number of patients that you may have from these groups.
However, the next section will provide a much clearer justification for your projected market share. Competitor analysis is a detailed study of all other businesses that are within the same location or industry as you.
Like your target market, your competitors may also be grouped as primary, secondary, or tertiary. Examples of these are hospitals, clinics, health centers, or other private doctors. From this data, you can do surveys or do research to get their market share over your mutual target audience and clientele.
Sales and Marketing Plans
No one will know about your medical practice if you don’t advertise. In this section, you should provide your strategy on how to sell your business to your target market, and how you would gain a competitive edge over your competitors.
Included in this section are any marketing initiatives that you would be implementing such as social media campaigns, promotions, commercials, or printing of additional marketing materials. You should also include projected returns from these campaigns, such as the number of patients that you would get from each type of media.
Every business, even sole proprietorships, have an organizational structure. In this section, discuss what type of business your medical practice would be as well as who your management and operational team members would be.
Having an organized structure will have many benefits. First, it will ensure that there are no redundant positions in your practice. Secondly, the list of duties and responsibilities for every person in the practice would be clear. Lastly, it would give you an idea of how much your expenses, either in terms of revenue shares or payroll costs, would be.
The last things that you would include in your business plan are financial statements. The purpose of this is to ensure that your practice is or will be profitable, which is the main purpose of a business in the first place.
For new practices, a conservative projection would do. However, businesses that are already existing should include financial statements from the last fiscal year. This information will give the readers a clear idea of how profitable your business would be, making it more attractive to invest or participate in.