Steps in Preparing a Business Plan

1
Steps in Preparing a Business Plan
2
Preliminary Step

• Must have a decision making apparatus in place
• Governing Board
• Viable committee structure
• Operations
• Planning
• Personnel

3
Essential Parts of a Business Plan
4
Plan Objectives

• 36 months
• Primary secondary objectives
• Present future orientation
• Rationale for philosophical bonding

5
History Development

• Perception, perception, perception
• Stability
• Trust
• Financing sources
• Funding sources

6
Primary Secondary Market

• Basic rule (not)
• Factors to be considered
• Population growth
• Cost of living
• Per capita income
• Primary market makers
• Industrial, manufacturing, service
  organizations
• Agricultural vs. non-agricultural

7
Primary Secondary Market

• Factors to be considered (cont.)
• Availability of human capital
• Colleges universities
• Technical schools
• Transportation resources
• Indicators of future growth

8
Medical Facilities

• Hospitals
• Skilled Nursing Facilities
• Retirement Centers
• Home Health Agencies
• Outpatient Surgical Centers
• Medical Specialties
• Dental Specialties
• Special Services Availability

9
Medical Personnel Associated with the Organization

• Professional background
• Board Certified or Board Eligible
• Specialty services provided by each

10
Payer Mix

• Three year lookback
• Stability predictability

11
Patient Origin

• Zip code of residence
• Focused understanding
• Organizational reach

12
Current Competition

• Objectivity
• Changing dynamics of primary secondary areas
• Sphere of control
• Cost advantages disadvantages
• The naivete of institutional planning

13
Positioning

• Economic relationship advantages
• Availability of medical resources
• Definition of service strategy
• Retention of existing business
• Attracting new business
• Expanding reach
• Capacity to grow
• Continuous assessment

14
Assessing the Business Risk

• Present future referral base
• Loss of referrals to competition
• Outreach efforts of competition
• Fickle posture of government
• La don ay mobilé factor
• Federal state
• Universal concern
• Emergence of specialty companies

15
Assessing the Business Risk

• Outlying area opportunities
• Balances skepticism
• Control of internal operations
• Procedures
• Costs
• Ongoing assessment of staffing needs

16
Development of Action Plan

• Statement of objectives by year
• Actions required for each objective
• Parties or position responsible
• Cost factor(s)

17
Financial Projections

• Income expense
• Surplus before capital distribution
• Capital expenses
• Cash flow
• Budgetary considerations
• Financial ratios

18
Epilogue
19
Follow Certain Risk Assessment Principles

• Business plan must emphasize system integration
• Reduce control loss producing situations
• Clearly articulate managements expectations as
  measurable outcomes

20
Follow Certain Risk Assessment Principles

• Plan must have a loss control component
• Clear parameters measuring success or failure of
  each objective
• QA QI are integral parts of the plan
• Make available objective information regarding
  benefits savings from plan

21
Five Generally Accepted Steps in Assessing Risks

• Identify potential loss exposures
• Examine alternative risk aversion techniques
• Select most viable proactive planning measure
• Describe how you arrived at this determination

22
Five Generally Accepted Steps in Assessing Risks

• Implement chosen procedure
• Explain how you intend to measure its success or
  lack thereof
• Monitor improve constantly each new program