Business Plan Proposal

Business Plan Proposal

Introduction

The business to be established here is an independent medical services facility that targets nearby homesteads/the surrounding community. The name of the facility will be “For-me Practitioners.” Establishing an NP independent practice will require initial costs of approximately $300,000 for everything to kick-off successfully. The capital will be raised through investor’s funds of about $150,000, while the remaining amount will be raised through a bank loan. The business will be established as a sole proprietorship and will eventually be registered as a limited liability company. The purpose of the plan is to establish an NP Independent practice business in a home estate. The plan takes into account a projection of anticipated monthly income that will sustain the business operations. The business will render family medicine services to the children and adults in the community.

Mission and objective of the business

The organization’s mission is to become a leader in the target market of general medical services, which are allowed to be rendered by an NP (Nursing Practioner). The business’s objective is to promote the health and well-being of the local population by providing high-quality and accessible medical care for people of all ages. The facility will be committed to providing services that exceed the expectations of the patients, hence leading to a more successful and profitable business.

The business structure

The business structure for For-me Practitioners will be the sole proprietorship. This business structure makes sense considering the fact that the NP will start on his own as a solo practice. However, it will be critical to operating as either a professional organization or a limited liability company in the long run. In this case, a limited liability company or professional organization would be entitled to tax benefits that may not necessarily be available if the organization acts as a sole proprietorship without forming a legal entity (Grossman & O’Brien, 2010).

Services that will be provided

As mentioned earlier, the business will provide family medicine services to children and adults. This implies that the services will include family medical services, referrals to physicians, general medical advice/counseling, blood work, and examination. These services will be provided in collaboration with two NPs, whereby one will also be providing laboratory services (Barberio, 2010).

The monthly cost for establishing the independent practice in the community

The establishment cost for the first month will be relatively high. However, this may actually change as time goes by. The monthly costs will be approximately $200,000 when all the initial costs are taken into consideration. The employee remunerations and expenses will entail $15,000. The business will only have two additional employees, whereby one employee will earn 8,000, while the other will take home 7,000 dollars. The clinical site expenses will amount to $25,000, including all the installations, which will be made in the clinical site. The initial supplies will amount to $15,000, and this includes some which may not necessarily be incurred on a monthly basis, such as specific equipment that will be used. Utilities and other overhead expenses such as telephone, internet services, and electricity will amount to $10,000. All the insurance expenses will amount to $15,000. This will include malpractice insurance, a premium for business operations, and health coverage for the employees. The provision for continuing education expenses will amount to $40,000. This is a continuous initiative, and therefore adequate money should be allocated at the beginning of the business to avoid a shortage or under-budgeting in the long run. There will also be a provision for fees for the professional services of accountants, tax preparers, bookkeepers, and attorneys. This will sum up to $50,000. The remaining provision for costs will cushion the marketing, miscellaneous and unpredictable expenses.

The following table gives a breakdown of these costs.

Pricing

The pricing will be done according to the market rates. However, this may be reviewed at the point when the business would have attained a strategic competitive advantage. More so, charges may also be adjusted when the facility starts offering more specialized services. The major objective for pricing at this stage will be to cover the expenses while at the same time allowing for a small profit margin (Barberio, 2010).

Marketing

The traditional print advertisements and adverts placed on search engines will be the major marketing strategies implemented at this level. Services will be provided in the first month at subsidized rates for promotion purposes. It is also assumed that the facility will be able to provide very effective, personalized, and quality services to the extent that the clients will recommend it through word of mouth, hence giving it more momentum. As such, the monthly expense for marketing will be approximately $ 5000, which is reviewable. The marketing efforts are expected to yield quick results, given that the facility intends to drive more demand for cost-effective healthcare in the community. The local population is expected to grow by 3%, hence putting more pressure on the available medical facilities (Lim et al., 2018).

Competition

The medical facility will be part of the larger medical industry. There exist other private medical providers, which may provide either specialist or general services. There are 2 family facilities, although they are located far apart. Most people are obliged to travel long distances in order to access the facilities. There is also one government facility at the town center, which majorly carters for the urban population. The “For-me Practitioners” facility will differentiate itself from the competitors by lowering charges on some services such as the consultation fee, providing more patient-centered care and free follow up services. This strategy will be reviewed after the first financial year. For the subsequent financial years, For-me will be able to set itself apart from the competitors by providing specialist services that are not available in the other facilities such as cardiac electrophysiology and immunology.

Projected monthly income necessary to support the independent practice

During the first month of operation, it may not be possible for the business to generate any meaningful income, and that is the reason why it is projected that the business may make a loss at this time. However, the cash flow of the business will eventually stabilize in the following months, hence supporting the independent practice appropriately.

References

Barberio, J.A. (2010). Establishing an Independent Nurse Practitioner Practice. Retrieved from http://nurse-practitioners-andhysicianassistants.advanceweb.com/Features/Articles/Establishing-an-Independent-Nurse-Practitioner-Practice.aspx

Grossman, S., & O’Brien, M. B. (2010). How to run your nurse practitioner business: A guide for success. Springer Pub. Co.

Lim, Y. W., Ling, J., Lim, Z., & Chia, A. (2018). Family Medicine Clinic: a case study of a hospital–family medicine practice redesign to improve chronic disease care in the community in Singapore. Family Practice, 35(5), 612-618.