This year’s health crisis has altered the medical industry in a way no one could have predicted at the beginning of 2020. The need to respond to daily challenges may have delayed your ideas, discussions, or even preliminary business plans to open a new medical practice.
Now that we’re into the transition period of the pandemic, you may be thinking more about whether to open your own practice. But, you haven’t had time to research new opportunities to fill a specific void or whether it’s even financially feasible to open a new practice following the widespread disruption.
What you need is a strategic business plan and an experienced advisor to help guide you in the process of starting a new medical practice. A plan and an advisor can help build a strong foundation that will set you up for sustained success well after the crisis.
Why a Strategic Business Plan?
A strategic business plan helps set the framework for how the new practice will operate, how the financial results of the practice will be tracked, and how success will be measured to support long-term growth.
A plan is essential to any new business to maximize efficiency in the critical startup phase and set your path forward. And it is increasingly important during the transition period and aftermath of the health crisis. The medical field has been materially altered by the health crisis, creating new barriers to entry launching a medical practice.
Medical practitioners can expect additional medical oversight, provisions, and requirements for telehealth, plus other changes that will likely be introduced in the coming months and years.
Implementing a strategic business plan will help prepare your medical start-up for the current transition and future challenges maintaining the integrity of operations and achieving profitability.
What Should Be Included in the Practice’s Framework?
A strategic business plan should include the following elements that make up the framework of the practice.
1. Mission, Vision, and Values. What is the vision for the practice? This will help form the mission statement of the practice that outlines how you will conduct business. Clearly-stated mission, vision, and value statements will help communicate what you believe is important to your patients and, eventually, your team.
2. Financial Projection. The pro forma or financial projection should include measurable goals for at least the first year of planned operations. For some medical practices, we recommend looking out ahead 12-18 months for monthly operating cash flow to reach break-even.
3. Identify KPIs. What are the Key Performance Indicators for your practice that will help you track progress toward operational and financial goals? This is an important step to help you keep score and measure progress toward your goals.
4. Identify staffing levels. You won’t be able to run the practice by yourself. Take time to identify the required staffing levels to support operations. This should be tied to anticipated business volume to ensure you have cash flow to meet payroll.
How to Prepare for the Unexpected in a Medical Startup
Without question, there will be surprises during the start-up stage. Taking the time to create a strategic business plan will help you address each surprise and meet the unexpected challenges you may face during the health crisis transition.
Cash and liquidity are frequently the most critical factor in successfully launching a practice. We’ll help you determine how much liquidity you need. We’ll work with you and your bank to help you get a credit line to support your new business.
We can also help with other specific start-up challenges through our Practice Made Profitable program.
Our Practice Made Profitable program helps you create your strategic plan. We also address operational issues to help you get started including:
- Employee manuals and onboarding, job descriptions, and guidance on managing your team.
- Accounting and Payroll system selection that works for your practice and is set up to track your KPIs.
- Monthly consultations to find solutions to the challenges facing your practice during the set-up phase.
Here to Help Your Medical Practice Launch With Confidence
During this unprecedented period of uncertainty in the medical field, we believe it’s important to have an advisor that will walk side-by-side with you starting a new medical practice.
We’ll help you start with a strategic business plan to build out the framework, ensure you have the ability to measure results and track progress, understand how to address the unexpected, and prepare to open your doors with confidence.
To get started with our Practice Made Profitable program, call us today. We can help.