Healthcare Practice Management: The Importance of Having a Solid Business Plan

Contemplating healthcare practice ownership and becoming an entrepreneur is an exciting idea
for sure. However, while it’s true that you learned so much in medical, dental, or veterinary
school, it’s highly likely that there might be a gap in your knowledge as it relates to business
operations and management. Therefore, developing a solid business plan prior to pursuing
practice ownership is necessary.

In this blog, the business consultants at LenDRgroup Consulting explain why having a
a comprehensive business plan is a key step to starting your own practice or taking over a
practice—and ensuring it is run effectively.

What Is a Business Plan?

Simply put, a business plan outlines, in detail, a company’s objectives and the steps it will take
to achieve its goals. A business plan will describe the organization’s operations, industry
standing, marketing objectives, and financial projects, and serves as a guide as to how the
company will be run.

Furthermore, a business plan can be an incredibly valuable tool when a business owner is
seeking to obtain financing from banks and financial institutions as well as when working to
attract investors, strategic partners, and even top talent.

Why Your Healthcare Practice Should Have a Business Plan

It might feel incredibly tempting just to jump into healthcare practice ownership
headfirst—after all, you spent much time in school and you likely want to get going with your
career.

But we would caution you with these words: A business plan can help you avoid potential
pitfalls later—and help set you up for long-term success. Additionally, with a business plan, you
can set realistic goals and help you move in the right direction. Plus, it is likely that your practice
is going to need some loans for an office purchase or lease, equipment, as well as working
capital to cover things like payroll and regular operations expenses. Let us tell you frankly that
you will struggle to get a loan or any sort of financing without a solid business plan in place.

What to Include in Your Business Plan

• Now that you understand why a business plan is important to healthcare practice ownership, let’s identify what should be included in it. A business plan should provide:
• A summary of your healthcare practice, including the types of services you offer, where
  you are located, and the history of the business.
• Financial information related to projected cash flow, medical equipment expenses,
  marketing and practice management costs, and projected turnover.
• Operational factors, including staffing and payroll expenses, supplier and vendor costs,
  training and development, technology platforms and services, and the like.
• Risk identification and management—namely how you will manage and mitigate the
  biggest potential risks such as malpractice insurance, business insurance, security,
  credentialing processes, reputation management, and more.
• Marketing processes, including how you will attract and retain patients and develop
  new streams of revenue.

In your business plan, it is also important to set goals and targets for your healthcare venture.
Moreover, you must consider your business plan as sort of a “living document.” This means it is
not something you do once and then never think about it again. Rather, your business plan
should be monitored, regularly updated, and modified as business targets are met or the
practice itself adapts, evolves, and grows over the years.

Finally, at some point, your business plan should also identify your exit strategy and detail what
you plan on doing when you decide to hang up your lab coat and retire.

LenDRgroup Consulting Can Assist

LenDRgroup Consulting recognizes that the idea of creating a business plan can feel
daunting—especially since you went to medical school and not business school. While we
realize that you will be a highly proficient practice leader and help your patients achieve
positive health outcomes, know that there is no harm in surrounding yourself with a team of
business experts who can help you attain both short and long-term success.

Our team would welcome the chance to speak with you and develop a comprehensive business
plan that will help you realize your dream of healthcare practice ownership. Reach out and
schedule a consultation today.