If you’re reading this article then chances are you’re ready to open your first medical practice.

Congratulations!

You’re going to need a business plan to get things off the ground, especially for the purposes of taking out a loan or financing.

In this article, we’ll walk through how to create your own medical practice business plan, and share our sample business plan template for you to use.

Let’s dive in.

What is a Medical Practice Business Plan?

First things first, it’s important to understand what a business plan is.

A business plan is a roadmap to the success of your medical practice. It’s what you predict will happen 1-3 years from now in terms of your revenue and expenses.

Business plans are used predominantly for banks and third-party lenders when you need investors, financing, and loans.

Think of your business plan like a story: you’re going to need an introduction, various chapters of information, and an end.

Here are several important “chapters” to include:

• Mission Statement: Why do you want to start your medical practice? What is your “why”?

• Objectives: What do you hope to achieve by opening your medical practice? What are the ideal outcomes in 3, 5, and 10 years? Be clear on your goals – successful medical practices have tangible, concrete goals in place before they begin.

• Budget: Detail out what it will cost to open and operate your medical practice. This includes equipment, software, hiring staff, your lease, electricity, your own salary, administration costs, and more. You’ll need to forecast various scenarios in order to cover all of the “what-ifs” that come with opening a new business. We recommend working with an experienced medical accountant to help you make an accurate budget for the first few years of your practice. 

• Timeline: Map out how long it will take to get your medical practice up and running. Make sure to include contingencies.

• Market Research: Research other medical providers in your area to get an idea of competition and patient demographics. It won’t make much sense to open up a pediatrician’s office in a predominantly senior neighborhood.

• Profitability Projections: It’s a good idea to detail out a projected P&L. What will your expenses and revenues look like in your first 12 months of business? When will you break even?

• Ideal Patient Profile: Create avatars, or personas, for your ideal patient profile. How old are they? What is their income level? Where do they spend their time? How can you reach them with marketing?

• Services You Will Provide: What specific services will you provide?
• Overall Business Goals: Finally, what revenue goals do you have for your practice? Do you want to sell it in 5 years? What is your ideal salary as an owner?

There is a long list of to-do items aside from a business plan when it comes to starting your medical practice. You can check out our Medical Practice Checklist for a comprehensive list. 

Here are just a few of the other things you’ll need to do before opening the front doors:

• Make sure your credentials and licenses are in order – you will need this for insurance, among other things.

• Hire an accountant who is experienced in medical practices. You’ll need help deciding your business entity, deciding whether or not to elect an S Corp, and setting up your tax structure, among other things.

• Understand the competition. It’s important to know how competitive your local area is, and what you can expect to charge for your services.

• Research your funding options. This is also where an accountant can help. There are various funding options available – including SBA loans, specific medical practice loans, lines of credit, and more.

• Invest in best-industry software. Successful medical practices run on advanced technology. You can check out our blog How-to Choose Your Medical Practice Software for more information.
  

If all of the above seems overwhelming to you – don’t worry. We’ve made it really easy to create a business plan for your medical practice.

Simply download our sample business plan for your medical practice and use it as a guide.

We’ve helped dentists, doctors, and other medical professionals with their business goals and taxes for over 20 years.

Book your first 15-minute call to get started. 

Until next time!