CHAPTER 2
Developing the Business Plan
John Shufeldt
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WHETHER YOUR CLINIC IS already up and running or you are still in the stages of pulling everything together for the grand opening, writing a business plan is an invaluable process that can mean the difference between success and failure for your facility. Although you likely already know that writing a business plan is important, it is essential to also understand why you are doing it, so that you can leverage this iterative process to your fullest advantage.
Many entrepreneurs think of creating a business plan almost like a homework assignment that they have to do. In reality, a business plan is more a process than a physical document. Writing a business plan is a way to get you thinking critically and in detail about the dynamics of your clinic. It helps you ask questions that you would not have asked otherwise, and it helps you not only to think proactively about how you will build revenue but also to understand all of the interrelationships between the different facets of your organization by asking some of the right questions:
How quickly will my revenue grow?
How many patients can my staff realistically handle?
How should I allocate facility space to maximize efficiency?
What impact will economic instability have on the number of patients and hence my revenue?
What additional services should I offer to maximize revenue and profit margins?
A business plan can help both an operation that is still in the planning stages and one that is already running. Even if your practice has been in business for many years, if you have never written a business plan for it you could be foregoing significant return on investment (ROI) without realizing it.
You don’t have to start writing your business plan from scratch. Many valuable resources are available either free of charge or for a nominal fee. The websites http://business.usa.gov and www.sba.gov (the website of the US Small Business Administration) have great information, including business plan templates that can help you save valuable time. The Small Business Administration website gives you access to a free, interactive template for a business plan after you register for an account. The website also provides a self-assessment tool for new business owners and a highly informational online training section that has a wealth of tips and training videos specifically designed for owners of small business.
Another good resource is SCORE, formerly known as the Service Corps Of Retired Executives, whose website (www.score.org