When medical practitioners decide to open their practice, they take on the role of being an entrepreneur, as well. As such, they have to start thinking like an entrepreneur and find ways to bring profit into the business. One way of doing that is through strong marketing strategies. However, new medical entrepreneurs can be caught off-guard with the costs of running their Private Medical Practice. Fortunately, Private Medical Practice business loans can help them get the working capital they need.
When applying for business loans, one of the primary requirements that most lenders will ask for is your business plan. Through this document, the lenders will know how you plan to run your private medical practice. This will also tell them how you plan on bringing in sales and profits. The more comprehensive your business plan is, the better your chances are of getting approved.
Whether you’re a fresh medical school graduate or have been a practitioner at the hospital for quite some time, opening your Private Medical Practice is one dream that you aim to turn into reality one day. However, it’s not an easy path to undertake. That is why businesses, no matter the kind, need business strategies to help them throughout their journey.
5 Steps to Create a Medical Business Plan for Private Medical Practice
Your business plan will serve as your guide or blueprint on how you will run your business. With one, you’ll know what strategies you’ll use, where you’re planning to take your business, and how you’ll arrive or achieve your goal. To get you started, here are the sections that you should include on your medical business plan:
1. Executive Summary
Although your executive summary should be written last, it’s one that should be placed on the front page of your plan. This section should cover everything that you have written on your business plan, thus, the word summary. It should give the readers an overview of what your business is about, its purpose, your plans, and the services you offer. You should also include your team, financing plans, and target market in your executive summary.
Since it’s a summary, it should take two pages, at most. Be sure to cover all the sections within your business plan is the executive summary. This will be the first thing that lenders and investors will look at before deciding to do business with you.
2. Your Business’ Mission
This part of your business plan basically talks about what your goals are in your Private Medical Practice. It answers the following questions:
- Why did you choose this type of business?
- What are you planning to achieve?
- What steps are you going to take to achieve your goals?
A Private Medical Practice mission looks something similar to this statement: ‘Our mission is to provide [health services] to [customers] using these [methods]’
Your business’ mission statement is important as it explains what your business is all about. It communicates your business’ purpose to your investors, employees, and patients.
3. Opportunity
In this part of your business plan, you should show why the community needs your business. Who are the people you’re planning to target with your business? How will it address the needs of your audience targeting? Essentially, the opportunity section of your business plan should outline the services you provide and how they will help your patients.
4. Execution
Now that you have the opportunity, the only thing left is how you’ll act on that opportunity. This is the section where you’ll focus on how you’ll run your business. Your marketing, operations, and financial plan should be included here. You also have to include your partners and team, as well as the role they will be playing in the success of your business. Of course, you’ll also need to create metrics where you can base the success of your strategies and that should also be part of your business plan’s execution section.
In the execution part of your business plan, you should also remember to mention the possible risks. Aside from that, if you’re planning to apply for financing, the amount should also be indicated in this section. Most importantly, mention your exit strategy should your business fail to pay for the outside financing they obtained.
5. Appendix
The graphs, tables, charts, and other data should all be contained in the appendix of your business plan. These should be separated from the main parts as they can cause a distraction to the readers. When they’re distracted, they could forget the main idea of your entire business.
Why Business Plans are Needed for a Private Medical Practice Business Loan
Banks, most especially, aren’t particularly fans of taking risks that’s why they often don’t lend to small businesses. If they do, they make sure to do due diligence to make sure that the company is capable of paying the loan back.
Before approving a business for a loan, banks want to know if the business is capable of making repayments. Aside from the credit background, they also want to know how you will produce the money to pay for your loan. To do that, they dig into the company’s business plan.
Even if the entrepreneurs are not applying for Private Medical Practice business loans, the business plan will serve as their guide in running their company. It will help entrepreneurs measure their progress and whether they have reached their goals or not. In essence, it’s a map that will lead their Private Medical Practice to success.
