The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants

By Dr. David Edward Marcinko MBA

An Essential Document for Start-Up Practices

The analog to a personal financial plan is the medical practice business plan. While mature practitioners may casually be familiar with some elements of the former by default, most new physicians are totally unfamiliar with requirements of the later.  

The Need 

Unfortunately, without an initial business plan, the need for a personal financial plan may become moot. This is because absent financial backing from family, friends or a cushy nest egg, the business plan is a key tool for raising start-up capital for a new medical practice. It may also be demanded by a commercial bank, or the Small Business Administration (SBA), for a loan to finance growth of an existing practice; despite the use of new asset based lending and accounts receivable factoring techniques.  

On the other hand, a comprehensive business plan may be required by investment bankers for funding purposes; in exchange for a healthy percentage of your future large group practice. 

Standard Plan Format 

The following format for medical business plan writing can be used for every new practice, established practice or simply an existing practice that wishes to expand or establish a new service or product line to its existing offers.  

The format for any written business plan is somewhat standard. It usually contains at least the following topics and sub-topics, and perhaps many more depending on your specialty with a varying emphasis on some sections or a de-emphasis of others; also depending on the practice and covering no more than 25-40 numbered pages:

· Cover Sheet

· Table of Contents

· Physician Executive Summary (Statement of Purpose)

· Physician Credentials

· Mission Statement

· Goals and Objectives (Risks and Rewards)

· Business Office Form

· Operational and Facilities Management

· Marketing Plan

· Business Competition

· Patient Targeting

· Advertising Methodology

· SWOT Analysis

· Practice Philosophy

· Human Resources and Personnel

· Financial Management

· Financial and Operating Budget

· Proforma Financial Statements

· Exit Strategy

Assessment

In the past, perhaps the two most important components of a medical business plan were [1] physician credentials and [2] the business model. Today; it is the exit strategy! 

Have you ever written a medical office business plan and what was the outcome? 

Link: MBA Capstone Business Planning

Conclusion

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

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Filed under: Career Development, Marketing & Advertising, Practice Management | Tagged: business plan, Crafting a Business Plan and Starting a Medical Practice, Marketing & Advertising |