Why should a healthcare business need a solid business plan

Jamie Frew
Jamie Frew
Share

Starting a healthcare practice

Starting a healthcare business practice can be a bit of a tricky thing, as there are a lot of aspects involved in its operations. Without a business plan, it can get complicated very quickly, so to avoid becoming entrapped in the common pitfalls of healthcare, it’s best to plan out every process and procedure. Making a plan is essential, and quite simply, is part of healthcare startup 101. With techniques such as predictive modeling, you can have more effective preparations in place to face any challenge posed to you, as well as better understand where to make adjustments, improvements, and allocate your resources. With the right plan implemented, you can take off in no time, and work on expanding and prioritizing growth in addition to your client's needs. 

Reasons why your healthcare business must have a strong business plan

There are multiple reasons why your healthcare business should have a strong business plan in place, including the following. 

To understand your step-by-step strategy for future

A business plan outlines all the resources you need across business operations and can provide a solid backbone to prepare you for potential future challenges. A plan provides a clear direction for all business areas and allows you to know what steps to take in regard to growth and expansion. 

To effectively manage your cash flow

Every healthy business needs a positive cash flow to secure investments and ensure there’s enough to be able to supply resources to meet client needs. A business plan can help you avoid breaking even and allow more transparency when it comes to seeing money flows, and can also improve your receivables and payables. Any delays can be accounted for, and when it comes to external financial services, you can appropriately receive reimbursements on time. 

To get additional funding for expansion

Continuing with the theme of finances, if successful, you’re likely to face important investment decisions to promote growth and expansion within your business. Sometimes cash flow isn’t enough, and additional funding is needed to accommodate more resources, such as a data warehouse. Having a detailed, and well-outlined business plan can contribute to a higher likelihood of being awarded the right funds to generate higher cash flows through expansion. 

To help identify any potential weaknesses

Plans are a great way to outline all your ideas and resources, and presenting information through this clarified format can often highlight areas that you may need to spare additional attention to. Using plans can identify areas of weakness that you may need external support and advice on, and having everything viewable from one place can allow for more valuable discussion. 

To communicate your ideas with stakeholders

Businesses are highly concerned with stakeholders and investors, and having a business plan in healthcare serves as a great communication tool for liaison with important institutions. You can use it to hire additional staff, as well as apply for credit and loans for investment purposes. This doesn’t need to be a complicated plan, but if stakeholders are to have a share in your operations, having an outline of your ideas and plans is the least you could do for their peace of mind. 

What should your business plan include?

You may be wondering about what needs to be included in a business plan; after all, they can be very detailed, and serve very different purposes depending on your business. Fortunately, we’re here to help, and every business plan should include the following. 

Executive summary

Your executive summary should be a concise description of your plan, including summarized details of every core aspect. This may include short descriptions of your market analysis, your value set, as well as finances. Keep in mind that this is a summary, and so it should be written after the plan is fully completed. 

Marketing strategy

Your marketing strategy should focus on answering the four Ps of product, price, promotion, and place. You should clearly describe the product or service that you are selling, in addition to the fees you charge. Promotion should outline all the marketing healthcare strategies that you’ll employ, and the place describing where you’ll be located.  

Competitive analysis

One of the most important aspects of a plan is considering your competitors, and how your service offers value that differentiates and sets you apart. Ideally, you should discuss your direct competitors and your indirect competitors, or those who target a different market within the same realm of healthcare. 

Description of your healthcare practice

Naturally, you should describe your healthcare practice in terms of its operations, mission, and how you’ll run. It should cover all the basics, so all clients and stakeholders who read it can grasp the essentials of what you’re about. 

Financial goals

Because investors and lenders will need to see evidence of your financial plans, it’s absolutely vital that you include this aspect. This is one of the most important sections of any business plan, as information such as income and cash flow statements, as well as balance sheets, all need to be included. Profitability should be emphasized at every point, and in regard to a future exit strategy. 

Organization and management policies

You should include details concerning your management teams, or any managerial type staff, as well as outlines concerning how you will manage your business data. Data security solutions are important, and so it’s important to make sure that you have considered this in regard to every operation. Regulatory compliance also ensures that you have the right organizational policies in place. 

Customer analysis

Similar to a target market, you need to crack down on the specifics of your service, and what exact demographic you’re catering to. 

Healthcare business plan template

To help you get started, we’ve covered all of the basics and compiled it into one business plan for you to follow and implement in your business practice and overcome revenue. For success in your business, consider expanding on the following aspects. 

1. Executive Summary

  • Business Overview
  • Products Served
  • Customer Focus
  • Management
  • Success Factors
  • Financial Highlights

2. Company Overview

  • Who You Are
  • Your History
  • Your Products/Services

3. Industry Analysis

4. Customer Analysis

  • Demograpic profile of target market
  • Customer segmentation

5. Competitive Analysis

  • Direct and Indirect Competitors
  • Competitive Pricing
  • Compeitive Advantage 

6. Marketing Plan

  • Your Brand
  • Promotions Strategy

7. Operations Plan

  • Functional Roles
  • Milestones

8. Management Team

  • Management Team
  • Hiring Plan

9. Financial Plan

  • Revenue and Cost Drivers
  • Capital Requirements and Use of Funds
  • Key Assumptions

Take home message

Every successful healthcare business must implement a business plan to be held accountable and to have a clear direction for the future of its services. Plans can help you have an outline according to your resources and aids in a better understanding of where to allocate your time and energy in improving business operations. You can identify your strengths and weaknesses, and gain a closer relationship with your business procedures and processes to further growth and expansion in the future. Additionally, having a business plan can help you understand your target market, and prioritize client needs. Plans enable you to do what you do best and capitalize on healthcare technology trends to promote growth and learning in the long term.

Get Carepatron for free today and show us your business plan love!

Practice management software feedback

Further reading:

Related Articles

Right ArrowRight Arrow

Counseling CPT codes for private practitioners

Familiarize yourself with the most commonly used CPT codes for counselors. Equipping yourself with this knowledge will allow you to streamline the coding process and receive accurate reimbursements at a faster rate.

Katherine Ellison
Katherine Ellison
6min read

Depression worksheets for teenagers (Examples)

Managing depression for teenage clients can be complex. Here is a comprehensive overview of some of the tools you can use to help teenagers cope with their symptoms of depression, including examples of various worksheets.

Ashleigh Knowles
Ashleigh Knowles
6min read

Why Are ICD and CPT Codes Important for Private Practitioners? (A Complete Guide)

Understanding how medical coding works is an essential aspect of working in healthcare. Here is a complete guide to both ICD and CPT codes so your practice can perfect its coding process.

Ashleigh Knowles
Ashleigh Knowles
6min read

CPT Codes for Family Therapy Billing

Check out our guide to CPT codes for Family Therapy Billing, so you can improve the efficiency of your medical billing process and receive accurate reimbursement at a much faster rate.

Katherine Ellison
Katherine Ellison
7min read

CPT codes for psychological testing and evaluation

Familiarize yourself with the commonly used CPT codes for pyschological testing and evaluation so you can ensure you are maintaining compliance and staying on top of your billing.

Ashleigh Knowles
Ashleigh Knowles
6min read

Difference between CPT and HCPCS

Understanding the difference between CPT and HCPCS codes will allow you to optimize your coding process much more efficiently. Check out our guide and dive into the similarities and differences between these types of codes.

Jamie Frew
Jamie Frew
5min read

Top ICD-10 Codes for Speech Therapy (2023)

Here are 10 of the most commonly used ICD-10 Codes for Speech Therapy, so you can ensure your practice maintains its compliance and delivers accurate care services to patients in need.

Jamie Frew
Jamie Frew
7min read

Using the Right ICD Code for Autism

Having a good grasp of ICD codes will allow your practice to improve its compliance processes and ensure it receives accurate reimbursement. Here are some useful tips for accurately using ICD codes to diagnose Autism Spectrum Disorder.

Jamie Frew
Jamie Frew
7min read

A guide to CPT codes and how to use them

CPT codes are an essential aspect of classifying medical procedures in order to receive reimbursement. Check out this how-to guide and become an expert on CPT codes in no time.

Jamie Frew
Jamie Frew
7min read

Top ICD 10 Codes for Anxiety in 2023

Having a good understanding of commonly used ICD 10 codes will help your practice receive reimbursement in a timely manner. Find out what the most commonly used codes for anxiety are in 2023, and improve the efficiency of your medical billing and coding process.

Jamie Frew
Jamie Frew
7min read

10 coping skills worksheets for children (Examples)

Check out these 10 coping skills worksheets and help your young clients develop the skills to overcome whatever challenges they may be facing. These tasks are relevant, engaging, and most importantly, effective.

Jamie Frew
Jamie Frew
5min read

11 fun and engaging group activities for self care

Here are 11 fun and interesting group self-care activities that will leave you feeling refreshed and re-energized. From taking a yoga class together to hosting a game night, these activities will help you take care of yourself.

Jamie Frew
Jamie Frew
6min read

11 CBT Group Therapy Activity Ideas With Examples

Discover 11 creative and engaging CBT group therapy activity ideas with examples to help your clients build coping skills and improve their mental health.

Jamie Frew
Jamie Frew
6min read

20 ICD Codes for Mental Health in 2023

Here are 20 of the most commonly used ICD codes in the mental health sector in 2023. Having a good understanding of these codes will improve your medical billing and coding processes, enabling your practice to receive reimbursement at a much faster rate.

Jamie Frew
Jamie Frew
7min read

Top examples of group therapy game ideas

Check out some of the most effective group therapy game ideas, and help guide your clients toward their desired clinical outcomes using fun, engaging, and meaningful intervention strategies.

Jamie Frew
Jamie Frew
6min read

11 Engaging Ideas For Counseling Group Therapy

Discover effective and engaging ideas for your counseling group therapy sessions. Enhance your facilitation and improve outcomes for your clients. Read now.

Jamie Frew
Jamie Frew
8min read

11 ideas to run an effective family therapy session

Check out these 11 ideas to run an effective family therapy session. Designed to facilitate a safe environment, these ideas will improve your clients’ communication and honesty, guiding them toward good clinical outcomes.

Jamie Frew
Jamie Frew
8min read

Using ICD-10 Code for ADHD in 2023

We understand that using ICD codes can be confusing, so here is an in-depth overview and explanation of how to use ICD codes for ADHD diagnoses, helping you deliver accurate and useful treatment interventions for your clients.

Jamie Frew
Jamie Frew
8min read

Join 10,000+ teams using Carepatron to be more productive

One app for all your healthcare work