Medical Billing Business Plan

 
 
 

Medical Insurance Billing Business Plan imageWhat Is A Medical Billing Business Plan?

 

Answering this question can become very technical and overwhelming so I will simplify it by first giving you a definition of what a medical billing business plan is. Then I will give you an outline so you can get an understanding as to the planning that goes into one. I can hear you thinking…

 
 

Business Plans For Home Based medical billing business imageWhy Should I Listen To Your Medical Billing Business Plan Advice?

 

Great question and I would be shocked if you didn’t want to know!!! Hello, my name is Paul G. Hackett and I thank you for taking the time to visit today!

 

Listen… I could list all the accomplishments that have made me the billing, coding and transcription business expert I am today however, I created this page specifically for your benefit so I will not do so here!

 

However, you deserve the opportunity to learn more about me so here is a link that is dedicated to who I am, what I’ve gone through in my own businesses, why I have chosen to mentor others, etc., so please click here.

 

Once your done come back to this page and we will move onto what is the…

 

Definition Of A Medical Billing Business Plan & How It Impacts Your Business

 

Your business plan is a written outline that communicates the values, goals, marketing strategies, financial strategies and forecasts, competition analysis, and how the company will go about implementing all the above mentioned to make your medical billing company a success.

 

Your medical billing business plan does two things:

 

1. It allows you to step back from the normal flow of operations and look at ways to develop and improve the business (kind of like being a bystander looking at your business where you will be able to see things you never noticed before because of being personally involved).

 

2. It will allow an individual with no prior knowledge of your business to understand exactly what your industry is, who your competition is, what your market is like (is it a growth-stagnant-or declining market), why you are unique in this market, what value your services will bring to this industry, the level of understanding that you have about the industry-market-and customer and how much potential profits your company could reap from conducting business in this market.

 

The second reason given above will be necessary if you try to get investors to generate monies for getting your business up and running or if you ask a bank for a business loan for the same reason.

 

No one that you don’t know is going to part with their money and give it to you to start your business if you can’t prove to them that you are an expert at medical billing, fully understand your market, that you understand how to run and maintain a business financially, and that your business will turn a sizable enough profit in order to make them more money than they originally put in.

 

Every business owners medical billing business plan differs in length, complexity and detail. It will change over time as your business gets off the ground, begins to generate an income, or there are changes in the market that affect you, the customer, and the industry (so, be prepared to update it periodically).

 

The following is an outline of a simple business plan. The subsections I have included will serve as a guide to help you in the drafting of it to make it a more manageable task.

 

Introduction Of A Medical Billing Business Plan

 

1. Give a detailed description of the business and its goals.

 

2. Discuss the ownership of the business and the legal structure.

 

3. List the skills and experience you bring to the business.

 

4. Identify your competitors.

 

5. Discuss the advantages you and your business have over your competitors.

 

Marketing

 

1. Discuss the products/services offered.

 

2. Identify the customer demand for your product/service.

 

3. Identify your market, its size and locations.

 

4. Explain how your product/service will be advertised and marketed.

 

5. Explain the pricing strategy.

 

Financial Management

 

1. Explain your source and the amount of initial equity capital.

 

2. Develop a monthly operating budget for the first year.

 

3. Develop an expected return on investment and monthly cash flow for the first year.

 

4. Provide projected income statements and balance sheets for a two year period.

 

5. Discuss your break-even point.

 

6. Explain your personal balance sheet and method of compensation.

 

7. Discuss who will maintain your accounting records and how they will be kept.

 

Operations

 

1. Explain how the business will be managed on a day-to-day basis.

 

2. Discuss hiring and personnel procedures.

 

3. Discuss insurance, lease or rent agreements, and issues pertinent to your business.

 

4. Account for the equipment necessary to produce your products or assist your service.

 

5. Account for the production or delivery of your products or services.

 

Executive Summary

 

1) Summarize your business goals, objectives and express your commitment to the success of your business using all the parts mentioned above to back your statement up.

 

As I said in the beginning the topic of creating your business plan is confusing stuff and I am sure you want to know…

 
 

Can You Show Me A Completed Medical Billing Business Plan Example?

 

SURE! I put this webpage together so you can see an actual medical billing service plan to get you familiar with how one is worded along with the numbers and I will provide a link to that shortly! The website below used to allow you to download and edit the 8 page example on your own for free however that has changed (to edit it you will have to invest in their software) but you can still view it online so here’s the link:

 

Billing Business Plan Example

 
 

Where Do I Go To Get Help Putting My Medical Billing Business Plan Together?

 

Since 1999 I have had the opportunity to review several books on the topic of how to create, word and expand upon business plans however they were too general in nature and not geared specifically toward medical billing businesses.

Then in late 2014, I read a book entitled “The Business Plan For Your Medical Billing Service Workbook” and was so blown away by the simplistic way Ms. Gray (the author) broke everything down so clearly that I have been using it ever since to train my students! You should really invest and read this resource because it will save you from pulling your hair out trying to understand and implement all the hi-tech legal jargon you’ll find in other books so here’s the link:

 

Your MB Business Plan Workbook

 

I know this has been alot to take in, so lets move on to our next topic of:

 
 

Which Medical Billing Services You Will Provide

 
 

I really enjoyed sharing with you today and I hope you understand the importance of why every medical billing business owner should have a medical billing business plan.

 

Here’s To Your Success!

 
 
 
 
 
 

External Medical Billing Business Plan References

 

Business Plan Video From Youtube.com

 

How to Write a Business Plan Video From Youtube.com 

 

Examples and Best Practices of Business Plan Writing Video From Youtube.com

 
 
 
 

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