Creating a Business Plan for Clinical Practice

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Creating a Business Plan for Clinical Practice

• By
• LeeAnn Klemetson BSN RN
• Lindsay Holt
• BSN RN

2
Introduction

• The purpose of this presentation is to take you
  through the steps of creating a business plan for
  creating a nurse practitioner clinic including
  reasons for creating a business plan and
  overcoming the most common excuses.
• Number 1 reason for business failure is lack of a
  business plan.
• Starting a clinic can be an overwhelming task and
  by using a business plan it breaks it down into
  manageable steps.
• A business plan is the foundation for which you
  build your business

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What is a business plan?

• A strategic plan of a clinical practice that
  details the set up and expectations of a business

4
Excuses for not creating a business plan.

• Time
• Fear of Failure
• Lack of Business Knowledge
• Fear of Money
• Fear of Undertaking a Huge Project

5
Why create a business plan?

• Avoid the primary cause of most business failures
• Understand the needs and wants of target market
• Get a jump start on the competition
• Choose the right avenue of care or niche in
  market
• Hire the right staff at onset of business

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Why create a business plan? Cont.

• Address problems before they arise
• Maintain a solid patient base
• Develop a solid financial plan
• Build a marketing program that will drive
  business
• Keep your business from growing to fast
• Securing a business loan

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Key points of a business plan

• Executive Summary
• Company description
• Product or health care service
• Market analysis
• Strategy and implementation
• Web plan summary
• Management team

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Executive Summary

• Objectives
• Mission statement
• Product or service
• Market analysis
• Strategy

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Company description

• Ownership
• Company history for ongoing clinics
• Startup plan for new clinics
• Clinic location and facilities

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Product or Health care service

• Health care service description
• Competitive comparison
• Service literature
• Technology
• Future services

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Market analysis

• Market segmentation, segmentation strategy
• Market needs
• Market trends
• Changes is market size
• Industry analysis
• Industry participants
• Distribution patterns

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Strategy and Implementation

• Value proposition
• Competitive edge
• Sales forecast
• Strategic alliances
• Strengths and weaknesses
• Marketing

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Web plan Summary

• Website marketing strategy
• Development requirements

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Management Team

• Organizational structure
• Management team
• Management team gap
• Personnel plan

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Financial Analysis

• Important assumptions
• Break even analysis
• Projected profit and loss
• Projected cash flow
• Projected balance sheet
• Income per visit variable costs / into fixed
  costs of pts to be seen to break even.
• Long term plan

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Help for writing a business plan

• www.score.com
• www.bplans.com
• www.nursepractitionerbusinessowner.com

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Conclusion

• Take home message
• A business plan is must and increases your
  chances of success
• You have to put in the effort to do the research
  to formulate a good business plan.
• Dont be afraid to ask questions and use the
  resources available to you.

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Resources

• Berry, T. (nd). Bplans. Retrieved October 24,
  2008, from www.bplans.com.
• DAngelo, J. M., (2007). Top 10 reasons for
  writing a business plan. Message
  Bodywork.122-126.
• Danna, D., Porche, D. (2007). Business plan An
  entrepreneurial proposal. The Journal for
  Nurse Practitioners. 173-174.
• Heiser, S. (2004). How to write a business plan.
  Professional Nurse. 19(12) 54-55.
• Huss, W., Coleman, M. M., (2006). Start your own
  medical practice What they dont teach you in
  medical school. Sphinx Publishing, Naperville.
• North Portland Nurse Practitioner Community
  Health Clinic, Mission statement. Retrieved
  October 28, 2008, from www.volunteermatch.org.

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Resources cont.

• Marfell, J., Stone, S. (2008). Defining your
  mission statement. Advance for Nurse
  Practitioners. Retrieved October 28, 2008, from
  nurse- practitioners.advanceweb.com
• Moore, P., Dayhoff, N. E. (2005). Business plan
  development The first step to building a
  successful cns business. Clinical Nurse
  Specialist. 19(1) 20-22.
• SCORE, (2008). Business plan for a startup
  business. Retrieved October 23, 2008, from
  www.score.org.
• US Department of Health and Human Services,
  (2008). Shortage designationHpsas, muas,
  mups. Retrieved October 24, 2008,
  bhpr.hrsa.gov/shortage/
• Zaumeyer, C. R., (2003). How to start an
  independent practice The nurse practitioners
  guide to success. F.A. Davis Publishers,
  Philadelphia.