Did you know that starting a medical practice takes anywhere from $70,000 to $100,000? This is quite a substantial amount for a medical practitioner to start a new medical practice. Typically, when you open a business, there is a lot of required investment.
First, you have to consider the cost of renting the office space, which can be quite expensive. You also have to purchase your medical supplies and equipment and market your business. Read on to learn how to start a new medical clinic on a budget.
Create a Business Plan
Create a business plan that is in alignment with your budget. That’ll let you know how much money you need to start and run the new medical practice. Ensure that you create a business plan to determine how much funding is required for the project, how much existing resources are available to you, and what are the potential downsides.
A simple way of creating a budget can be done by creating a list of all your requirements broken down into categories such as insurance, facility costs, equipment cost, internet costs, etc. You also need to establish your goals, objectives, mission, and values in your business plan. You must include your financing modeling or budget plan, as the plan will guide you in the next few months.
Establish Your Business Entity
Typically, you’ll have to establish your business entity. A business entity is the legal structure of your medical practice. There are several options to choose from, so it can be best to meet with a professional, whether an attorney or another financial specialist.
They’ll help you determine which structure suits you and how it can benefit your new medical clinic. Some of the entity types include a Sole Proprietor, a Partnership, a Limited Liability Company (LLC), or a Corporation. When choosing an entity, there are two things you need to consider: tax implications and liability.
Establish Your Practice Location
In choosing your location, ensure that it is in an area with high traffic flow and low congestion. This will help you establish the first foothold for your practice as a place where there are enough patients to support your new medical practice. Make sure that the location is accessible by car and public transport and has ample parking space for patients.
Set out a budget for leasing or renting office space to benefit from the location of your choice without draining your funds too much. It’ll ensure you can keep up with the monthly expenses of running the new medical practice.
Plan Your Budget
With a complete business plan, you can now determine what your budget will look like. Include the costs associated with starting up a new medical clinic. This is more than just the monthly bills for rent, supplies, etc.
You also need to include costs associated with marketing and advertising and your budget for staff salaries, insurance, etc. Consider all aspects if you’re going to thrive in the medical industry.
Purchase Equipment, Supplies, and Technology
Once you know what services your new medical practice will offer, start the process of purchasing the necessary equipment. Some of the supplies you need include sterile gloves, cotton balls/swabs, needles, sterile supplies for suturing, etc.
Since you’re on a budget, consider purchasing second-hand medical equipment. They’ll save you money and give the patients the same high-quality services.
It’s also important to have an online presence, so get a website, social media handles, a business email, and the like. If you’re unable to create one on your own, you can pay a professional to develop one for you.
Starting a New Medical Practice on a Budget: A Guide
Now that you have decided to start your new medical practice, this is how you start on a budget. There are so many things to consider, but with our tips, you may e able to pull it off. For more tips, please check out our blog!