MedEsthetics magazines offers business education and in-depth coverage of the latest noninvasive cosmetic procedures for physicians and practice managers working in the medical aesthetics industry.
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BUSINESS CONSULT 26 APRIL 2014 | Med Esthetics ; Financial Plan: The purpose of the fi nancial plan is to demonstrate to yourself, and your potential lenders and investors that your business is economically feasible. This section includes a summary of start-up costs, personnel wages and salaries, revenue projections, cash fl ow state- ment, break-even analysis, balance sheet and appendix for the practice's fi rst year fi nancials. In addition to working with a CPA, there are several resources available to help entrepreneurs create their fi nancial plans, including online industry fi nancial benchmark reports (bizstats.com) and business consulting fi rms. These resources can provide guidance on personnel salaries as well as cost estimates and cost ratios for all aspects of prac- tice operations. ; Purchasing Plan: When it comes time to purchase supplies and equipment for your new venture, you must have a plan in place for expenditures. These include the cost of initial inventory, equipment and supplies that you will need in place prior to opening your practice. These costs, combined with your initial build-out, will likely be your most expensive fi nancial undertaking, so do it right the fi rst time. Develop a strategy for purchasing what is really needed for your initial launch vs. what you want to offer in the long-term. Ensure that you are fi nancially sound for what is required, and set up a strategic purchasing plan to begin your negotiation process with vendors. ; Organizational Effectiveness: This section spells out how and why your practice will be effective in catering to your market base. Here you want to include the names and background experience of all key personnel as well as detailed job descriptions and protocols for all positions that will be fi lled. If you are entering into a partnership, the de- tails of your partnership agreement should be included here as well. Don't ever be afraid to count on your advisors, such as your attorney and accountant, for additional information, which may include organizational charts, disaster planning and the protocols you have developed to honor all regula- tory concerns relating to your practice. ; Marketing: Marketing is an essential component and expenditure for any new business entity. Here you will provide a detailed marketing plan for your practice. When compiling the marketing section, be sure to include all of your products and service offerings, the cost to the con- sumer, your target consumer base, and how and where you plan to promote and position these products and services to attract that base. Once your plan has been created, it must be reviewed and then reviewed again. The more input you get along the way, the better. Seeking the advice of consultants who specialize in medical practices and practice management will give you a competitive advantage. These professionals have seen the successes and failures of other practices and can provide valuable insight into what works, and help you identify potential pitfalls or weaknesses in your business plan. If your practice is already established, but not perform- ing as you would like, formulating a new business plan can be instrumental in helping you rein in costs and reset a path to practice success. Jay A. Shorr BA, MBM-C, MAACS-AH, CAC I, II, III is the founder and managing partner of The Best Medical Business Solutions, assisting medical practices with the operational, fi nancial and administrative health of their businesses. Contact him at info@thebestmbs.com. Your operational plan details the management structure of your new practice or business venture. The fi nancial plan can help new practices maintain a healthy cost ratio at launch and throughout the life of the business. Develop a strategy for purchasing what is really needed for your initial launch vs. what you want to offer in the long-term. © ISTOCKPHOTO.COM B u s i n e s s C o n s u l t M E D 4 1 4 . i n d d 2 6 Business Consult MED414.indd 26 3 / 1 3 / 1 4 9 : 1 7 A M 3/13/14 9:17 AM