Starting your own medical practice can be daunting. Doctors looking to put up their own private practice must plan ahead, develop an effective revenue stream, apply for loans for doctor, acquire health insurance, get credentials, and create a marketing strategy to attract patients.
Despite the challenges, starting a private medical practice is one of the most rewarding accomplishments for any medical professional. To minimize the risks associated with running a medical practice, here are three common mistakes you as a medical practitioner need to avoid:
1. Have a Long-Term Strategy
If you want your practice to succeed, creating long-term strategies are crucial. You need to have a comprehensive business plan for every aspect of your practice – from forecasting to hiring employees. You can do so by creating a detailed business plan that covers marketing, services offered, financial plan, management summary, market analysis, and more. But remember that as your practice grows, so should your business plan. You can continue to refer to your business plan to monitor the growth and performance of your clinic.
Try to create or update your business plans every year. It’s also better to educate your employees about it so everyone is on the same page and pulling together when it comes to the goals and plans of your clinic.
2. You Have Insufficient Capital (Apply for Loans for Doctor)
Funding your private practice out of pocket is downright impossible for many medical professionals. Starting out with insufficient capital is a common mistake among numerous medical professionals. Keep in mind that the expenses associated with starting a private practice are higher compared to other business ventures.
The cost of setting up a small primary care practice is around $70,000 but it can go as high as $100,000 or more. Make sure you include realistic establishment costs, such as equipment purchases, medical supplies renovations, and building lease. You might also want to consider other expenses, such as marketing, legal advisers, tax, and medical malpractice insurance.
While starting a medical practice is every doctor’s dream, but if it is done without enough cash flow, your practice might not survive at all. For this reason, you can apply for small business loans like SBA loans, a business line of credit, and equipment financing to help cover the costs of setting up your clinic.
3. You Don’t See Your Practice as a Business
The main reason why doctors and medical professionals start their own practice is to help people. However, your medical practice is also a business entity. As a business owner, you need financial and managerial skills in order to successfully run your practice.
But if managing a business is not for you, you can hire a reputable business advisor to assist you in creating strategies for your practice. Business advisers can also provide assistance in creating, developing, and updating your business plan.
If you want to know more about loans for a doctor, SMB Compass are the experts you can turn to. Our finance specialists are standing by and ready to answer all your questions. We have funded thousands of businesses all over the United States, including numerous medical practices.