If you have a goal of practice ownership, developing a business plan can help determine the viability of your new venture. A well-designed business plan details the practice’s financial structure and day-to-day operations. This may help show whether or not you have a realistic roadmap for success based on your carefully considered ideas on developing and managing your business.
Here are five reasons why developing a business plan can be important:
1) Helps you achieve your goals
Sitting down and actually writing out your plan — thinking, dreaming, researching, and documenting your objectives — may increase the likelihood of reaching your business and career goals. In addition, by creating a business plan you begin to understand your healthcare practice’s place in the market. This helps determine the necessary actions to improve and grow your business.
2) Helps you to be proactive
Developing a business plan for your healthcare practice can show the potential risks within the market so you can develop strategies to respond. Rather than simply reacting as changes come along, this gives you a defined roadmap to follow to guide you toward your goals. Your business plan helps you respond to changes and fluctuations in your business.
Without this written plan when changes arise, you may feel like you are floundering without an end in sight or a guideline to respond to unforeseen circumstances, such as a significant drop in the market, or new technology opportunities.
3) Functions as a communications tool
As a business owner, you may need to borrow funds or hire service providers at some point in your career. Your business plan helps communicate your business objectives to lenders, contractors, and equipment vendors who may need to understand your practice vision.
The business plan introduces you and your practice. It shows your lender that you have the personal know-how and professional means to help ensure practice success. It demonstrates that you have a solid grasp on the local market and outside influences impacting your future practice.
Your well-developed business plan may help provide the financial rationale the lender needs to approve lending funds for your practice purchase or start-up based on historical or projected performance.
4) Provides a competitive edge
A documented vision or plan for your healthcare practice shows you are prepared for the future. You are ready to take on the competition. Your business plan should detail your marketing plans to announce your opening, attract new patients, and grow your practice. It may also give you a jump-start on potential new competition.
5) Forms the basis for an exit strategy
Thinking about the future and selling your practice or retiring, your business plan helps potential buyers see your vision and gives them a roadmap. It shows how the practice evolved, whether it met expectations, and if you achieved your vision for the future of the practice. If you sell your practice before fully implementing and achieving your practice goals, the business plan may serve as a helpful guideline for future practice owners.
There are many more reasons to establish a business plan including sharing your vision with others, establishing a framework to attract new associates or investors, and providing a foundation for practice valuation. Careful formulation of a business plan allows you to focus on the future of your practice and ultimately may help shape your success.
If you don’t already have one, consider getting started working on your business plan today.
The team at LenDRgroup Consulting cares about the long-term success of your healthcare practice. We get to know you and your business in order to customize our practice financing and business consulting services to meet the needs of your practice and your career.
Our lending platform consists of 300+ dental and healthcare-specific lenders. It was developed with the purpose of helping dentists, veterinarians, and physicians. Let us help you achieve practice ownership and eliminate your practice financing obstacles!
To date, we have helped hundreds of healthcare professionals like you start, expand, and grow their practices. LenDRgroup Consulting recognizes and understands your business needs and can help you avoid costly mistakes. So, let’s get started.
Contact us today for a consultation.