Creating a Business Plan for Clinical Practice

By:

LeeAnn Klemetson BSN RN

Lindsay Holt

BSN RN

Introduction

The purpose of this presentation is to take you through the steps of constructing a business plan for creating a nurse practitioner clinic including reasons for generating a business plan and overcoming the most common excuses.

The 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 the work is broken down into manageable steps.

A business plan is the foundation for which you build your business

What is a business plan?

A strategic plan of a clinical practice that details the set up, goals, and expectations of your clinic.

Excuses for not creating a business plan.

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

D'Angelo, J. M., 2007

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 the market.

Hire and maintain the right staff.

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

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

Executive Summary

Objectives Mission statement Health care service and products Market analysis Strategy

Company description

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

Product or Health care service

Health care service description Competitive comparison Service literature Technology Future services

Market analysis

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

Strategy and Implementation

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

Web plan Summary

Website marketing strategy Development requirements

Management Team

Organizational structure Management team Management team gap Personnel plan

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

Help for writing a business plan

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

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.– Don’t be afraid to ask questions and use the

resources available to you.

Resources

Berry, T. (nd). Bplans. Retrieved October 24, 2008, from www.bplans.com. Building your practice through word-of-mouth referrals. (2008). Retrieved

November 3, 2008 from http://www.nursepractionerbusinessowner.com D’Angelo, 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

don’t 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.

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. Small business readiness assessment tool (2008). Retrieved November 10, 2008

from http://web .sba.gov/sbat/sbat/dsp_sbat.cfm?Tool=4 US Department of Health and Human Services, (2008). Shortage

designation:Hpsa’s, mua’s, mup’s. Retrieved October 24, 2008, bhpr.hrsa.gov/shortage/

Resources cont.

Online business registration (2008). Retrieved November 11, 2008 from http;//secure.utah.gov/osbr-user/user/whatdoineed.html

Zaumeyer, C. R., (2003). How to start an independent practice: The nurse practitioners guide to success. F.A. Davis Publishers, Philadelphia.