Why Prepare A Business Plan For Your Medical Practice


Why you need a business plan for your medical practice.

Success is partly down to hard work and partly about planning ahead so you’re always prepared to seize new opportunities.

In order to be prepared for the expected and the unforeseen, you need a roadmap which clearly details your ultimate vision for your surgery or practice and helps you maintain a competitive edge. A strategic business plan can also encourage the wholehearted support of key decision makers.

A formal planning process not only aids in developing an effective business strategy, it also helps significantly increase your staff’s satisfaction with how it is implemented. Best intentions aside, and while many doctors and health practitioners acknowledge the vital role a business plan plays in delivering short-term results, it is easy to get caught up in the commotion of daily life and neglect to outline a long-term plan which can serve as a roadmap for future growth.

Why strategic planning is a must

A strategic business plan can help you cope with the impact that non-stop technological developments are having on the healthcare industry. The rate at which these changes are occurring is so rapid that if you don’t keep up, you’re going to find yourself at a distinct disadvantage. Without a doubt, your long-term business plan should include a guide for using technology to optimise your practice or surgery operations, boost your financial performance, and, arguably, most importantly, improve the patient experience.

Secondly, a strategic plan can help to unite your team, fostering an environment that allows every member to focus on the “big picture” vision for your business. It also helps to establish a positive leadership model under which everyone understands your business goals and feels free to participate in the decision-making process and go the extra mile to make your practice or surgery great. This type of shared leadership allows both the staff and doctors or practitioners to have more say in how the business is run and ensures the burden of responsibility is more evenly distributed.

Finally, a strategic plan can be utilised to promote a culture of transparency where creativity is encouraged, and ideas can be exchanged without fear of reprisal or being mocked, criticized or undermined. To guarantee effective and enduring solutions it is best to set a timetable for regular open forums where issues and disagreements can be addressed in a constructive manner. Whether these forums take place weekly, monthly or quarterly is up to you; what is important is that key staff members are given the opportunity to discuss your business’s wins and challenges, and determine how you can further streamline your logistics, administration, and the level of care delivered by your practice or surgery.

The how of crafting an effective business plan

1. Establish your starting point

Think of this as checking your practice’s or surgery’s vital signs. An objective and honest assessment of the current state of your business will help you identify your strengths and weaknesses, giving you a starting point from which to proceed.

2. Outline your short term focus

The emphasis here should be on defining the type of practice or surgery you wish to create and the healthcare services you want to offer.

3. Describe your long-term direction

Now that you have the broader strokes down for your business’s vision, it’s time to fill in the details regarding the direction in which you’d like to take your practice or surgery. These details include your goals, value proposition, and the competitive advantages that you provide for your patients.

4. The plan and accountability

You’ve got the vision and set your course, now you need to highlight the tools and tactics that will empower you to effectively implement your strategic plan in the present, and the future too. This is the time to define your team’s roles and responsibilities, so everyone is on the same page regarding who needs to do what to ensure the plan is successful.

5. Review, Revise, Reward

Your strategic business plan should be treated as a living document, a guide to making your surgery or practice great, rather than a pile of papers which will only wind up gathering dust on a shelf. As a living document, it should be subject to regular reviews to determine how well reality is holding up to your ideal. Part of this assessment process should involve revising your milestones when relevant and setting new targets that will ensure you realise your long-term objectives. Also, remember to reward your staff for their contribution to making your surgery or practice a success.

SMART Business Planning

Our Business Planning service eliminates a factor that is all too common in business - PROCRASTINATION.

Planning is not everybody’s strong suit which is why SMART Business Solutions offers dedicated Business Planning sessions for medical professionals.

Our practical Business Planning sessions fall under our Business Development portfolio of services which is designed to create lasting and tangible results and certainly recommended if you’re considering a new business venture.

An effective business planning process gets to the heart and soul of your business. On completing the ‘pre-work’ session, we’ll have a greater understanding of your vision and core values, allowing us to facilitate a four-hour planning session during which we’ll help you outline a clear, concise business plan for your practice or surgery.

The planning process will require you to take time out from your schedule to focus on the business, but we’re confident you’ll find the returns more than justify the time sacrifice on your part.

Together we’ll review your performance against your targets and key indicators and establish a 90-day action plan to address immediate and critical issues. You’ll also set solid and realistic business goals and define strategies for achieving them.

At the end, you’ll walk away with an easy-to-interpret, one-page business plan which will act as a guide for you – and your team – to successfully implement your desired changes and ensure your business is on course for success.

Key benefits of our SMART Business Planning sessions:

  • Review and clarify your future direction
  • Align goals among the directors
  • Determine Gross Revenue Targets and KPIs
  • Establish a robust accountability system
  • Identify critical business challenges and opportunities and the actions required to resolve or optimise them

  • Set timeframes for achieving goals
  • Outline the support and resources you will need to attain your goals
  • Sharing your business goals and vision with your team
  • Provide a platform for developing financial forecasts
  • Set a foundation on which to base staff member’s individual roles and goals.

What now?

The healthcare industry is complex and fast-paced. There are constant technological advancements and shifting patient expectations to contend with, to name just a few of the challenges. Minus a plan, it’s unlikely you’ll be better positioned to take advantage of more cost-effective tactics or opportunities to improve your patients’ experience. A strategic business plan can also equip you to approach your practice or surgery with an entrepreneurial mindset and an emphasis on adaptability – a win-win for all.

Call SMART Business Solutions today on 03 5911 7000 to book your Business Planning session.

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