how to make a hospital business plan

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Hospital Business Plan

Starting a hospital is a huge responsibility because taking care of millions of people in a year is difficult. If you are considering starting a hospital, then staffing, financial and business planning are necessary, for which a business plan is vital.

Need help writing a business plan for your hospital business? You’re at the right place. Our hospital business plan template will help you get started.

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• Fill in the blanks – Outline
• Financial Tables

How to Write A Hospital Business Plan?

Writing a hospital business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the hospital services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information. Describe what kind of hospital you run and the name of it. You may specialize in one of the following hospital businesses:

• General hospitals
• Specialty hospitals
• Teaching hospitals
• Children’s hospitals
• Outpatient clinics
• Rehabilitation hospitals
• Maternity hospitals
• Describe the legal structure of your hospital, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hospital, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals:

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your target market and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as changes in patient behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hospital business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to patients. To write this section should include the following:

Describe your facilities:

Mention the hospital facilities your business will offer. This list may include,

• Intensive care
• Neonatal care
• You can also mention the number of beds & specialized units

Medical specialties:

Quality measures:.

This section should explain how you maintain quality standards and consistently provide the highest quality facility.

Additional Services:

In short, this section of your hospital plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Marketing Strategies:

Sales strategies:, testimonial and success stories:.

Overall, this section of your hospital business plan should focus on patient acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hospital business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for the hospital, such as operating rooms, tables, surgical lasers, surgical drills & saws, vital signs monitors, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hospital business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hospital, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your healthcare business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample hospital business plan will provide an idea for writing a successful hospital plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hospital business plan pdf .

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Frequently asked questions, why do you need a hospital business plan.

A business plan is an essential tool for anyone looking to start or run a successful hospital. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hospital.

How to get funding for your hospital business?

There are several ways to get funding for your hospital, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your hospital?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your hospital business plan and outline your vision as you have in your mind.

What is the easiest way to write your hospital business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any hospital business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Back to All Business Ideas

How to Start a Hospital

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on June 17, 2022 Updated on April 22, 2024

Investment range

$28,082,150 - $106,153,200

Revenue potential

$12 million - $36 million p.a.

Time to build

12 – 18 months

Profit potential

$1.2 million - $3.6 million p.a.

Industry trend

Hospitals, obviously, are vital to any community. In recent years, hospitals and clinics faced bed shortages due to the pandemic and struggled to keep up with demand. Now the industry is growing and most markets would welcome a new hospital. 

Starting a hospital is an expensive and demanding undertaking, but the investment is worth it, as it saves lives. You can also make good money in this trillion-dollar industry. 

But before you start exploring your financing options, you’ll need to understand the process of starting a business. Fortunately, this step-by-step guide details everything you need to know to launch a successful hospital. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hospital has pros and cons to consider before deciding if it’s right for you.

• Save lives — Hospitals give people second chances every day
• Consistent demand — People always need medical attention
• Good money — Medical care is expensive
• Large investment — Constructing and equipping a hospital costs a fortune
• Complicated to run — Hospitals require expert administration

Hospital Industry Trends

Industry size and growth.

• Industry size and past growth — The US hospital industry was worth $1.4 trillion in 2023 after growing 1.2% annually over the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/hospitals-united-states/ )) 
• Growth forecast — The US hospital industry is projected to grow 2.64% every year from 2024 to 2028.(( https://www.statista.com/outlook/hmo/hospitals/united-states/ ))
• Number of businesses — As of 2023, 2,596 hospital businesses have been operating in the US.(( h ttps://www.ibisworld.com/industry-statistics/number-of-businesses/hospitals-united-states/ )) 
• Number of people employed — In 2023, a total of 5,751,078 people worked in the US hospitals.(( https://www.ibisworld.com/industry-statistics/employment/hospitals-united-states/ ))

Trends and Challenges

• Artificial Intelligence (AI) is being used more and more in healthcare to analyze data and enable faster diagnoses 
• Virtual health care is becoming common, allowing hospital staff to conduct follow-up care remotely
• Many hospitals are not able to tap into the new technologies available due to their high costs
• Cybersecurity is a huge concern for hospitals due to the need to protect patients’ healthcare data

Demand Hotspots

• Most popular states — The most popular states for healthcare administrators are Nevada, Vermont, and Ohio. (( https://www.zippia.com/health-care-administrator-jobs/best-states/ ))
• Least popular states — The least popular states for healthcare administrators are Kentucky, Tennessee, and Illinois.

What Kind of People Work in Hospitals?

• Gender —   75.7% of health care administrators are female, while 24.3% are male.
• Average level of education — The average healthcare administrator has a bachelor’s degree. 
• Average age — The average hospital administrator in the US is 45.5 years old.(( https://www.zippia.com/health-care-administrator-jobs/demographics/ ))

How Much Does It Cost to Start a Hospital Business?

Startup costs for a hospital range from $28 to $100 million. The bulk of the cost is for the construction of the hospital. You’ll also need a large operating budget to start with. 

If you do not have hospital administration experience, most colleges and universities offer online degrees in healthcare administration and management. 

You can access many resources by becoming a member of the American Hospital Association . 

You’ll need many items to successfully launch your hospital business, including: 

• Computer system
• Hospital beds, gurneys
• Testing and diagnostic equipment
• Surgical equipment
• Medical and life-saving equipment
• Kitchen equipment

How Much Can You Earn From a Hospital Business?

You’ll need to form relationships with insurance companies so that your medical services will be covered. The average emergency room cost is $2,500, and the average hospital stay is $15,000. Hospital operations are expensive, so your profit margin will be about 10%. 

In your first year or two, you might have 100 emergency room visits per month and 50 inpatients, bringing in $12,000,000 in annual revenue. This would mean $1,200,000 in profit, assuming a 10% margin. As your hospital becomes more well-known, those numbers could triple. With annual revenue of $36,000,000, you’d make a tidy profit of $3,600,000!

What Barriers to Entry Are There?

There are a few barriers to entry for a hospital. Your biggest challenges will be:

• High startup costs of construction, equipment, and medical supplies
• The experience necessary to start and run a hospital

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Step 2: hone your idea.

Now that you know what’s involved in starting a hospital, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Understand Your Competitors

Analyzing your competitors is an essential part of starting a successful hospital business. Research hospitals in your area to examine their services, price points, and customer reviews.

Here are some steps you can follow to conduct competitor research:

• Identify your competitors — Make a list of all the hospitals in your area. This can include general hospitals or specialty hospitals that may offer services similar to yours.
• Analyze their size and scale — Look at the size of your competitors, such as the number of beds, staff, and range of services offered. Consider the facilities they have and how they may differ from yours.
• Analyze their services — Look at the range of services your competitors offer, such as emergency services, primary care, or specialized care. Consider their specialization and unique selling points.
• Analyze their reputation — Look at the reputation of your competitors, such as their patient satisfaction rates, accreditation status, and awards. Consider how they differentiate themselves from others in the market.
• Analyze their marketing strategies — Look at how your competitors market their services, such as websites, social media ads, Google My Business profile, or print ads. Consider their branding, messaging, and how they differentiate themselves from others in the market.
• Create a competitive analysis report — Compile all the data you have gathered into a report. This report should include your competitors’ strengths, weaknesses, and opportunities. Use this report to create a plan for how you can differentiate yourself from your competitors.

Why? Identify an Opportunity

You’re looking for a market gap to fill. For instance, maybe the local market is missing a medical center that offers outpatient surgical procedures or an emergency medicine specialty hospital.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as surgical procedures or patients who receive Medicaid.

What? Determine Your Products or Services

You can specialize in certain types of hospital care, such as emergency medicine or surgical procedures, but your best bet is to offer a full range of hospital services.

Offering a full range of services entails a multifaceted approach:

• Emergency services — Establish a 24/7 emergency department capable of handling acute conditions and traumas.
• Inpatient care — Create wards for patients requiring overnight stays, with facilities for various specialties such as surgery, internal medicine, and pediatrics.
• Outpatient services — Set up clinics for consultations, minor procedures, and follow-up visits that don’t necessitate hospital admission.
• Diagnostic services — These include laboratories for medical tests and imaging departments for X-rays, MRI, and CT scans, which are essential for accurate diagnoses.
• Surgical services — Equip operating rooms for a range of procedures, from minor surgeries to complex operations, with post-operative care units.
• Intensive care units (ICU) — Prepare for critical care services with advanced monitoring and life support for patients in severe conditions.
• Maternity and newborn services — Provide labor and delivery rooms, postnatal care, and neonatal intensive care units.
• Specialized centers — Consider adding centers of excellence such as cardiology, oncology, or neurology that offer cutting-edge treatments.
• Ancillary services — Ensure support services like pharmacy, physiotherapy, dietary, and counseling are in place for holistic patient care.
• Administrative services — Develop robust back-end support with medical records, billing, housekeeping, and facility maintenance.

How much should you charge for hospital services?

Your services will be mainly dictated by standard industry prices, which are what insurance companies cover. Your profit margin after the cost of all operations should be about 10%. 

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

The primary target market for a hospital is patients who need medical care, whether for acute or chronic conditions, preventive care, or elective procedures. Patients can range from infants to elderly adults and may come from different demographic backgrounds and income levels.

Where? Choose a Hospital Location

Start by doing thorough market research to understand the local population, existing healthcare facilities, and community health needs. Make sure the location is easily accessible, has good transport connections, and enough parking. It should also be safe, visible, and close to important services like pharmacies and specialized medical facilities. Plan for future growth.

Ensure you comply with all local regulations and zoning laws to avoid legal problems. Assess the financial aspects of the site, including land cost, potential profits, and any government incentives. Build relationships with the community to get support and explore partnership possibilities. Finally, make sure the area has dependable utilities and internet service.

Step 3: Brainstorm a Hospital Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hospital” or “medical center,” boosts SEO
• The name should allow for expansion, e.g,: “Premier Healthcare Alliance” over “Orthopedic Institute of New York”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 300 unique hospital business name ideas here . If you want your business name to include specific keywords, you can also use our hospital business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation.

Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hospital Business Plan

Here are the key components of a business plan:

• Executive summary — A high-level outline showcasing the hospital’s mission, the specific healthcare services it will offer, funding requirements, and projected financial outcomes to attract investors or partners.
• Business overview — This section describes the type of hospital (e.g., general, specialty, teaching), its intended size, location, the need it will fill in the community, and the legal structure of the business.
• Product and services — Detailed information on the medical care provided, including emergency care, surgical services, inpatient care, outpatient clinics, and any specialized services, highlighting how they meet patients’ needs.
• Market analysis — An assessment of the healthcare demand in the targeted area, population demographics, disease prevalence, and an overview of patient needs to justify the hospital’s establishment and potential for growth.
• Competitive analysis — An examination of existing healthcare providers in the region, their service offerings, strengths, and weaknesses to position the new hospital strategically in the market.
• Sales and marketing — Strategies to attract patients and referring physicians, including advertising plans, public relations efforts, partnerships, and pricing strategies tailored to the hospital’s services.
• Management team — Profiles of key team members, their qualifications, experience in healthcare management, and roles they will play in ensuring the hospital’s operational and financial success.
• Operations plan — A description of the hospital’s daily operational procedures, including patient intake processes, staffing, healthcare delivery workflows, and quality control measures.
• Financial plan — Detailed financial projections, including startup costs, operating expenses, revenue streams, profit margins, and break-even analysis to ensure sustainability and profitability.
• Appendix — Supporting documents such as resumes of the management team, legal agreements, detailed market study results, and any technical hospital design plans to provide credibility and context to the plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hospitals. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hospital will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — An S Corporation refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC , which just needs to elect to be an S Corp for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your Articles of Organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital — Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
• Angel investors — Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
• Friends and Family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Step 8: Apply for Hospital Business Licenses and Permits

Starting a hospital business requires obtaining a number of licenses and permits from local, state, and federal governments. Most states have a demanding hospital registration process that you must go through to become a licensed hospital. Check with your state for requirements. 

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hospital business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as brightly , eHospital , or Glorium , to manage your operations, records, compliance, staff, and invoicing. 

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using different website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

Your customers are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are various marketing strategies to consider:

• Content marketing — Create content that establishes your hospital as a health authority.
• Local SEO — Optimize your Yelp and Google Business profiles and encourage satisfied customers to leave positive reviews to boost local visibility.
• Social media — Use platforms like Linkedin and Facebook for updates and community interaction.
• Press releases — Announce new services.
• Logo and materials — Ensure branding reflects quality of care.
• Testimonials — Share patient success stories on your website to build trust.
• Community partnerships — Work with local businesses for health education.
• Loyalty programs and discounts — Reward frequent visits.
• Telemedicine — Provide online consultations.
• Healthcare apps — Develop apps for scheduling and health tracking.
• Seminars and webinars — Host educational events to engage the community.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hospital meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hospital business could be:

• Patient safety and care are our top priorities
• Professional, full-service care to ensure your health
• Trusted healthcare in a loving environment

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hospital business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hospitals for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hospitals. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hospital business include:

• Hospital registration agents — register patients
• Physicians — provide medical care in various specialties
• Surgeons — perform surgical procedures
• Nurses — assist with medical care
• Orderlies — transport patients in the hospital
• Housekeepers — clean all areas of the hospital
• Kitchen workers — prepare patient meals
• Security guards — protect patients and staff

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hospital — Start Making Money!

Hospitals are a trillion-dollar US industry and a critical part of our society. Starting a hospital might seem daunting, but with a sizable investment and hard work, you can serve your community, save lives, and build a lucrative and rewarding healthcare operation.

Now that you know what’s involved from a business perspective, it’s time to be a local hero and start your successful hospital. 

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• Decide if the Business Is Right for You
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• Brainstorm a Hospital Name
• Create a Hospital Business Plan
• Register Your Business
• Register for Taxes
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• Apply for Hospital Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hospital — Start Making Money!

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How To Write a Business Plan for Hospital in 9 Steps: Checklist

By alex ryzhkov, resources on hospital.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Welcome to our blog post on how to write a business plan for a hospital! In today's rapidly growing healthcare industry, starting a hospital that focuses on providing quality, personalized medical services is a promising venture. According to recent statistics, the global healthcare market is projected to reach a value of $12.3 trillion by 2026, with a compound annual growth rate of 6.7%. This presents a great opportunity for entrepreneurs looking to make a difference in the lives of patients and contribute to the advancement of healthcare technology.

Before diving into the details of writing a business plan for your hospital, it's crucial to identify the market need and demand for this type of healthcare facility. Conducting a thorough market research will help you understand the current trends and assess the potential demand for specialized medical services. By analyzing competition and industry trends, you can gain insights into successful strategies and differentiate your hospital from others.

Developing a solid financial plan is essential for securing funding and partnerships. It involves outlining the hospital's projected revenue, expenses, and investment requirements. By preparing a comprehensive financial plan, you can demonstrate the viability and profitability of your venture to potential investors or lenders.

Defining the hospital's vision, mission, and values sets the foundation for its overall purpose. This helps in establishing a clear direction and guiding the decision-making process. Creating an organizational structure and identifying key roles ensures smooth operations and effective management of resources.

Formulating a comprehensive marketing strategy is crucial for attracting patients and building strong referral networks. It involves defining your target audience, identifying the best channels to reach them, and creating compelling messaging that highlights the unique benefits of your hospital.

Lastly, assessing the legal and regulatory requirements is vital to ensure compliance with healthcare laws and regulations. This includes obtaining the necessary licenses, permits, and certifications to operate your hospital.

By following these nine steps, you will be well-equipped to write a comprehensive business plan for your hospital. Stay tuned for our upcoming blog posts, where we will dive deeper into each step to provide you with practical insights and actionable tips.

Identify The Market Need And Demand

One of the first and most crucial steps in writing a business plan for a hospital is to identify the market need and demand for the services you intend to provide. Understanding the needs and preferences of potential patients is essential for developing a successful hospital that can effectively meet their healthcare requirements.

To gather this important information, conducting a thorough market research is key. This research should focus on the local healthcare landscape, demographics, and the specific services and medical treatments currently available in the area. By analyzing this data, you can identify any gaps or unmet needs in the market that your hospital can fulfill.

During the market research process, it is also important to evaluate the demographic trends and population dynamics in the area. Understanding factors such as age distribution, income levels, and prevalent medical conditions can help you tailor your services to the specific needs of the target population.

By thoroughly understanding the market need and demand for your hospital's services, you can develop a business plan that is aligned with the needs of the community you aim to serve. This will help ensure the success and sustainability of your hospital in the long run.

Conducting a Thorough Market Research

Conducting thorough market research is an essential step in developing a business plan for a hospital. This research will help you gain a clear understanding of the market need and demand, enabling you to make informed decisions about your hospital's offerings and target audience.

When conducting market research for a hospital, consider the following:

• Identify your target market: Determine the specific demographic and geographic characteristics of the population you intend to serve. This will help you tailor your services and marketing efforts accordingly.
• Analyze market trends: Stay updated with the latest trends in the healthcare industry. Identify emerging technologies, treatments, and practices that can distinguish your hospital from the competition.
• Assess competition: Study your competitors' offerings, pricing strategies, and marketing tactics. This will allow you to identify gaps in the market and position your hospital uniquely.
• Explore patient preferences: Understand what patients value when it comes to healthcare services. Conduct surveys or interviews to gather insights on their preferences, expectations, and experiences with existing healthcare providers.
• Evaluate regulatory factors: Familiarize yourself with the legal and regulatory requirements applicable to hospitals in your region. This includes licensing, documentation, and compliance with healthcare regulations.

Tips for Conducting Market Research for a Hospital

• Utilize online resources: Make use of online databases, industry reports, and market research tools to gather data on healthcare trends, market size, and consumer behavior.
• Engage with industry experts: Seek guidance from healthcare professionals, consultants, and experts who have in-depth knowledge of the industry. Their insights can provide valuable guidance during the research process.
• Consider qualitative and quantitative research: Combine qualitative methods like interviews and focus groups with quantitative techniques such as surveys and data analysis. This will provide a comprehensive understanding of your target market.
• Continuously update your research: Regularly review and update your market research to stay on top of industry developments and changing market dynamics. This will help you adapt your business plan accordingly.

By conducting thorough market research, you will be equipped with the necessary information to develop a business plan that aligns with the needs and expectations of your target market. This research will serve as a foundation for making informed decisions and ultimately contributing to the success of your hospital.

Analyze Competition And Industry Trends

One crucial step in developing a successful business plan for a hospital is to thoroughly analyze the competition and industry trends. This analysis provides valuable insights into the current market and helps identify opportunities and potential challenges that the hospital may face. Below are some important points to consider during this analysis:

Identify competitors: Begin by identifying existing hospitals and medical facilities that may be direct competitors. Research their offerings, facility size, capacity, and reputation within the community. Understanding their strengths and weaknesses will help you position your hospital effectively.

Study industry trends: Stay up-to-date with the latest trends in the healthcare industry. Identify key innovations, advancements in medical technology, and emerging treatments or services that could impact the hospital's success. This will help you adapt and stand out in a rapidly evolving industry.

Analyze market demand: Evaluate the current and projected demand for healthcare services in the target area. Consider factors such as population growth, demographic trends, and the prevalence of specific medical conditions. Understanding market demand will help in planning the hospital's service offerings and staffing requirements.

Evaluate competitive advantages: Identify what sets your hospital apart from the competition. This could include specialized services, unique treatment approaches, advanced technology, or a focus on personalized patient care. Highlighting these competitive advantages in your business plan will attract potential patients and investors.

• Use online resources, industry publications, and professional networks to gather information on competitors and industry trends.
• Engage with healthcare professionals, potential patients, and community members to gain insights into their expectations and preferences.
• Consider conducting surveys or focus groups to gather more specific feedback and opinions on the market and competition.
• Regularly revisit and update the analysis of competition and industry trends to stay ahead of the curve and maintain a competitive edge.

Develop A Solid Financial Plan

A solid financial plan is crucial for the success of any business, including a hospital. It provides a roadmap for achieving financial stability and sustainability. Here are some important steps to take when developing a solid financial plan for a hospital:

• Estimate costs and revenue: Start by estimating the costs involved in setting up and running the hospital. This includes expenses such as equipment, facility construction or lease, staff salaries, operational costs, and marketing expenses. Additionally, analyze the expected revenue sources, such as patient fees, insurance reimbursements, and potential partnerships or collaborations.
• Financial projections: Utilize the market research and competition analysis to make informed financial projections. This will include forecasting the number of patients, expected reimbursement rates, and expected revenue growth over a specific period of time. Be sure to consider factors such as seasonality, demand fluctuations, and potential economic changes.
• Budget allocation: Once you have estimated costs and revenue and made financial projections, prioritize how you will allocate your budget. Consider allocating resources for essential needs such as medical equipment, technology, employee training, marketing, and community outreach programs. Create a detailed budget plan that includes both recurrent and capital expenses.

Tips for developing a solid financial plan:

• Consult with financial advisors or experts in the healthcare industry to ensure accuracy and validity of financial projections.
• Consider different funding sources, such as private investors, loans, grants, or public funding programs specifically targeting healthcare projects.
• Account for contingency funds to handle unexpected expenses or emergencies.
• Regularly revisit and update your financial plan to reflect changing market conditions, trends, and regulatory requirements.

Developing a solid financial plan requires a thorough understanding of the healthcare industry, market dynamics, and financial management principles. It's essential to invest time and effort into this step to lay a strong foundation for the hospital's financial success.

Secure Funding and Partnerships

Once you have developed a solid financial plan, the next crucial step in starting a hospital is securing funding and building partnerships. This stage is vitally important as it determines the financial stability and sustainability of your hospital.

1. Identify potential funding sources: Start by exploring various funding options available to you. This may include approaching investors, applying for grants and loans, or seeking partnerships with other organizations. Assess the pros and cons of each option to determine the best fit for your hospital.

• Prepare a comprehensive business plan and financial projections to convince potential investors or lenders of your hospital's viability.
• Consider partnering with organizations that share a similar mission and vision to leverage their expertise, resources, and infrastructure.

2. Craft a compelling funding proposal: Develop a persuasive funding proposal that clearly outlines your hospital's mission, goals, financial needs, and potential benefits for investors or partners. Emphasize the unique value proposition and the impact your hospital can make in the healthcare industry.

3. Build strategic partnerships: Collaborate with other healthcare organizations, research institutions, or technology companies to access resources, expertise, and specialized services. Look for complementary strengths that align with your hospital's vision and objectives.

• Network within the healthcare industry to build connections and explore potential partnership opportunities.
• Consider joining professional associations or attending industry conferences to connect with potential partners.

4. Establish trust and credibility: Demonstrate your hospital's potential by showcasing the qualifications and expertise of your team, highlighting successful case studies, or sharing testimonials from satisfied patients or partners. Establishing credibility is crucial to attract investments and create fruitful partnerships.

5. Think beyond financial support: While securing funding is a primary concern, also consider the value that partners can bring beyond monetary contributions. Look for partners who can offer strategic guidance, business acumen, or access to a broader network of healthcare professionals and resources.

6. Seek legal and financial advice: Consult legal and financial experts to ensure that your funding and partnership agreements are robust and legally sound. They can assist in negotiating favorable terms and protecting your hospital's interests.

By carefully navigating the funding and partnership landscape, you can secure the necessary resources and allies to propel your hospital towards success. Remember, building strong partnerships is not just about financial support but also finding collaborative opportunities that align with your hospital's vision and values.

Define The Hospital's Vision, Mission, And Values

Defining the vision, mission, and values of your hospital is crucial for establishing its identity and guiding its direction. These elements serve as the foundation for your organization and shape its culture, goals, and strategies.

When crafting the vision statement , consider the long-term aspirations and purpose of your hospital. It should succinctly describe the desired future state and the impact you aim to make in the community. This statement should inspire and motivate both your staff and patients.

The mission statement clarifies the fundamental purpose and reason for the existence of your hospital. It outlines the primary services you will provide and the target population you aim to serve. This statement should be concise and clearly communicate the value you intend to deliver.

The values of your hospital outline the guiding principles and beliefs that underpin your organization's culture and conduct. These principles should align with the overall mission and vision. They provide a framework for decision-making, as well as help ensure consistency in providing patient care.

Tips for Defining Your Hospital's Vision, Mission, and Values:

• Involve key stakeholders, including staff, patients, and community members, in the process to gain diverse perspectives and foster a sense of ownership.
• Keep your statements concise and easily understandable to ensure clarity and coherence.
• Ensure that your vision, mission, and values are in line with the market need identified and the unique value proposition of your hospital.
• Regularly revisit and refine your vision, mission, and values to adapt to changes in the healthcare landscape and the evolving needs of your patients.

By clearly defining your hospital's vision, mission, and values, you establish a strong foundation that guides decision-making, fosters a sense of purpose among your staff, and communicates the unique value your hospital brings to the community.

Outline The Organizational Structure And Key Roles

In order to effectively run a hospital, it is crucial to clearly outline the organizational structure and identify the key roles within the healthcare facility. This will help ensure smooth operations, effective communication, and proper allocation of responsibilities. Here are some important steps to consider when outlining the organizational structure and key roles:

• Identify the leadership positions: Start by identifying the key leadership positions that will oversee the hospital's operations. This typically includes roles such as Chief Executive Officer (CEO), Chief Medical Officer (CMO), and Chief Nursing Officer (CNO).
• Define the departments: Next, outline the various departments within the hospital, such as administration, nursing, finance, human resources, and medical services. Each department should have a designated leader responsible for managing day-to-day operations and ensuring departmental goals are met.
• Establish reporting lines: Clearly define the reporting lines within the organizational structure to ensure efficient communication and decision-making processes. Indicate who reports to whom, and establish a hierarchical structure that promotes accountability and clarity.
• Identify key roles: Determine the key roles within each department and specify the responsibilities and qualifications for each position. This may include physicians, nurses, therapists, administrative staff, and other healthcare professionals required to deliver quality care.
• Promote teamwork and collaboration: Emphasize the importance of teamwork and collaboration among different departments and roles within the hospital. Encourage regular meetings, cross-functional projects, and open communication channels to foster a culture of cooperation and interdisciplinary care.
• Delegate authority: Delegate authority and empower individuals within their respective roles to make decisions and take ownership of their responsibilities. This encourages autonomy and accountability, and enables efficient problem-solving and decision-making processes.
• Consider developing an organizational chart to visually represent the hierarchical structure and reporting lines within the hospital.
• Regularly review and update the organizational structure to ensure it aligns with the evolving needs of the hospital and changing healthcare landscape.
• Communicate the organizational structure and key roles to all employees to ensure clarity and understanding of their responsibilities and reporting lines.

By carefully outlining the organizational structure and key roles, a hospital can establish a strong foundation for effective management, collaboration, and seamless delivery of quality healthcare services.

Formulate A Comprehensive Marketing Strategy

A comprehensive marketing strategy is essential for successfully promoting and positioning your hospital in the healthcare industry. It involves identifying your target audience, creating effective messaging, choosing the right marketing channels, and continuously evaluating and adapting your strategies to ensure maximum reach and impact.

When formulating your marketing strategy, keep the following key aspects in mind:

Tips for Formulating A Comprehensive Marketing Strategy:

• Identify your target audience: Determine the demographics and characteristics of the patients you want to attract. This enables you to tailor your marketing efforts towards their specific needs and preferences.
• Create compelling messaging: Develop a clear and persuasive message that highlights the unique value proposition of your hospital. Emphasize the personalized care, cutting-edge technology, and evidence-based treatment you offer.
• Choose the right marketing channels: Utilize a mix of traditional and digital marketing channels to reach your target audience effectively. Consider strategies such as search engine optimization (SEO), social media marketing, email campaigns, and referral programs.
• Build strong relationships: Cultivate relationships with referring physicians, healthcare professionals, and community organizations. Establish partnerships to increase referrals and enhance your reputation within the healthcare community.
• Monitor and evaluate: Regularly measure the effectiveness of your marketing efforts by tracking key performance indicators (KPIs). Analyze data, gather feedback, and adapt your strategies accordingly to ensure maximum impact and return on investment.

A comprehensive marketing strategy plays a vital role in attracting patients, establishing your hospital's brand, and maintaining a competitive edge in the healthcare industry. By understanding your target audience, crafting compelling messaging, choosing the right channels, and continuously evaluating your strategies, you can position your hospital as a trusted provider of high-quality and personalized medical services.

Assess Legal And Regulatory Requirements

Ensuring compliance with legal and regulatory requirements is crucial when setting up a hospital. This step involves researching, understanding, and meeting the various laws and regulations that govern the healthcare industry.

• Obtain necessary licenses and permits: Familiarize yourself with the licensing requirements specific to hospitals in your jurisdiction. Determine the necessary permits and certifications required to operate legally.
• Comply with healthcare regulations: Understand and comply with regulations related to patient privacy, data protection, health and safety standards, and medical waste management. Implement appropriate policies and protocols to ensure compliance.
• Stay updated with healthcare laws: Keep abreast of any changes or updates in healthcare laws and regulations that may have an impact on your hospital. This includes staying informed about reimbursement policies, billing regulations, and insurance requirements.
• Secure professional licenses and certifications: Ensure all healthcare professionals working at the hospital possess valid licenses and certifications. Perform necessary background checks and verification procedures to maintain quality and patient safety standards.
• Implement proper documentation and record-keeping practices: Establish systems for accurate and organized documentation to comply with medical record-keeping requirements. Adhere to guidelines for the storage, retention, and disposal of medical records.
• Seek legal counsel: Consult with healthcare attorneys or legal experts with experience in the healthcare industry to navigate the complex legal landscape.
• Stay updated with changes: Regularly review and update your knowledge on relevant laws and regulations to ensure ongoing compliance.
• Establish a compliance team: Assign responsibilities to a dedicated compliance team or officer to monitor and enforce adherence to legal and regulatory requirements.

In conclusion, developing a business plan for a hospital requires careful consideration and thorough research. By following the nine steps outlined in this checklist, you can ensure that your hospital is well-prepared to meet the market demand, provide high-quality care, and comply with legal and regulatory requirements. By focusing on personalized medical services, leveraging cutting-edge technology, and adopting a multidisciplinary approach to treatment, your hospital can strive towards providing the best possible outcomes for patients.

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Hospital Business Plan Sample

MAR.14, 2017

Do you want to start a Hospital business plan?

Starting a business can be very hard and a big responsibility. And starting one that benefits humanity can be an even greater responsibility. However, if you follow the correct steps and stay persistent, it can be very rewarding. Establishing a business like a hospital needs to be very thoroughly planned. 

The best way to plan a business is to write a business plan for the hospital. Adding all the right details of your business will attract investors to the business plan and this will help you in setting up your business. If you want to learn how to write a hospital business plan, you should go through as many samples as possible. 

Plans like nursing home business plan can be a great resource in understanding crucial things about the hospital business. In this business plan, we will be providing all the details for starting a hospital called Mercy Ltd. You can follow this sample to develop a plan for your business.

Executive Summary

2.1 business summary.

Mercy Ltd will be a private healthcare setup, owned and started by Gillian Hail. It will provide state-of-the-art services to all its patients. Additionally, it will also run a free clinic and fund services for those who don’t have enough money to get treatment. 

2.2 About the Management

As a hospital business requires the utmost attention to detail to run well, a business plan is needed ahead of time. It is similar to a business plan for a wellness center in that regard. To make the management of Mercy Ltd smooth, a hospital business development plan was needed. Therefore, we prepared this sample. 

If you want to develop an executive summary hospital business plan for your business, you can consult a healthcare business plan template. Otherwise, to write the business plan, you can also hire experts and guide them along. 

2.3 Customers of Mercy Ltd

Considering that Mercy Ltd is a healthcare center, its customers will primarily be patients seeking treatment or help with funding for treatment. They will belong to all domains and lifestyles. The primary customers will include:

• OPD Patients
• Emergency Care Patients
• Chronic Patients
• Treatment Fund Patients

2.4 Business Target

The target of Mercy Ltd is to become a trustworthy healthcare center where people can come to get immediate treatment whenever they need it. It will also be a long-term target to expand the business. The financial targets we want to meet within the first three years are mentioned below in this hospital business plan pdf.

Company Summary

3.1 hospital ownership.

The hospital will be owned and managed primarily by Gillian Hail. She completed her MD five years ago after which she served as a head neurosurgeon in a renowned hospital in Baltimore. She then assumed the position of a consultant to start her healthcare setup. 

3.2 Why the Hospital Business is Established

Gillian always wanted to make a difference and help people due to which she became a doctor. However, after working in a hospital for so many years, she realized that there was a greater need for a healthcare setup that could deal with patients faster. Therefore, she decided that she would open Mercy Ltd to provide quick care to patients and to gain funding for people whose insurance couldn’t cover them.  

3.3 How will Mercy be Established

Step1: Plan Everything

The first step before establishing any business, no matter what the domain or scope, is thorough planning. You will need to map everything required to start the business in a business plan for starting a hospital. Additionally, you will also need to develop a business plan for hospital expansion if you have any plans to extend the business in the future. The process won’t stop here because at some point, you will also be developing a business continuity plan hospital.

Step2: Get Funding

One of the main reasons to develop a startup hospital business plan is to get funds. As Mercy Ltd had the aim to help treat those who couldn’t afford usual hospital charges, Gillian paid special attention to this hospital business plan sample pdf to attract investors. 

Step3: Find a Location

To house the healthcare setup, Gillian chose a building in Baltimore. The lower two floors will be for the hospital whereas the top floor will be for management and for housing on-call doctors. 

Step4: Developing a Brand

It is essential to make your business as humane as possible so that your customers can relate to it. Therefore, Gillian not only focused on her business model to help people but also described it in a way that is understandable to its customers. 

Step5: Promote and Market

To get the word out about her unique business model, Gillian established a partnership with as many local and big hospitals as she could so they refer patients to Mercy Ltd for treatments.

To write a business plan for a hospital, one needs to be clear about the type of business they want to establish. And this is true for every business plan, be it a reiki practice business plan or a private hospital business plan pdf. 

To develop a hospital business plan sample, you will need to know the services you want to provide to your customers as your services will form the basis of your setup. Here, we have provided a hospital business plan template that you can follow when writing about the services of your business. You can also look at any other hospital business plan example for reference. 

We will provide all the basic outpatient facilities including diagnosis, testing, and providing immediate treatment to patients. This will apply to patients with simple ailments like infection, common cold, fever or pain, etc. 

• Emergency Services

Mercy Ltd will also provide emergency services to patients who have been involved in an accident and need immediate care for stabilization. We shall also provide ambulances to transport these patients to bigger hospitals for complete and thorough treatment and recovery. 

• Regular Treatment and Therapy

For the patients who have chronic ailments or pain and who need regular care and treatment, we will offer therapy sessions and a complete care package that they can use utilize regularly.

One of our core services will be to provide treatment funding to deserving patients. The cases and situations of the patients will be thoroughly analyzed to ensure that there is no problem.

Marketing Analysis of Hospital Company

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

It can be very tricky to gain success as a new business. You need solid hospital strategic goals to ensure a clear direction in all the business operations. A good business owner needs to do a lot of research into hospital business development strategies before starting a business in this domain. 

A good business plan covers all details regarding the business such as hospital planning team and business model of the hospital. This information helps in showing the objectives of hospital planning to the investors. And all of this can only be achieved if you have a strong understanding of your target market. This includes your customers as well as your competitors. 

In this hospital marketing plan template, we have outlined all the marketing strategies that would be employed by Gillian to ensure the success of her business. You can follow this hospital business plan sample or a relevant plan like a massage therapy center business plan for more guidance. 

5.1 Market Trends

According to PolicyAdvice, the healthcare industry is one of the fastest-growing industries in the U.S. and the trend is expected to continue as the U.S. spends almost twice on healthcare when compared with other countries. Right now, the market share of the healthcare industry in the U.S. is at almost $10 billion and it is expected to rise. Therefore, healthcare is one of the best sectors to start a business.

5.2 Marketing Segmentation

The target customer groups of Mercy Ltd will be:

5.2.1 OPD Patients

Our primary services are centered around situations where patients only need immediate care and have straightforward illnesses. Therefore, these patients with simple ailments will be the key customers of Mercy Ltd as they will utilize our services more often. 

5.2.2 Emergency Care Patients

Our second target customers will be the people who need immediate care after an accident such as a fall or a crash. Our main responsibility will be to stabilize these patients so that they can be safely transferred to hospitals for full care. 

5.2.3 Chronic Patients

We will also get business from people with chronic ailments who only need to go to hospitals for regular check-ups but find it hard to. We will provide them with in-house regular check-ups and treatment facilities so that they don’t have to spend too much time or energy on commute. 

5.2.4 Treatment Fund Patients

Lastly, one of our primary services is funding, we will also take up cases of patients who need money for treatment but due to some reasons are not able to. The funding for these patients will come from our investors as well as from 8% of our profits.

5.3 Business Target

• To become the best immediate care hospital in Baltimore.
• To expand our services across the US in the form of multiple small centers.
• To earn a net profit margin of $15k/month by the end of our second year.
• To be the first healthcare service that helps patients with funding.

5.4 Product Pricing

Our prices will be similar to that of our competitors. However, we will aim at boosting our efficiency through efficient load management.

Marketing Strategy

To become successful in a market as tough as healthcare, you will need to work on your hospital business strategy. This strategy will be reflected in your business plan for the hospital . You can also look at strategic plan example for hospital startup for reference. 

Understanding all aspects of planning in hospital will help you gain a better view of the market and get your business to succeed. So, whether it is a business plan for healthcare setup or a business plan for occupational therapy , you should look into the market for a stronger plan.

6.1 Competitive Analysis

• We have excellent and unique services
• Our customers can get basic healthcare in half the time as required by regular hospitals.
• We provide treatment funding to people who cannot afford it.
• Our customers can avail of our ambulance and emergency services through a quick phone call as well.

6.2 Sales Strategy

• We will get the word out through partnerships with hospitals.
• We will organize health awareness seminars to get us known.
• We will use social media for a wider reach.
• We will offer discounts to deserving people.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

A good business plan for hospitals will reflect all the aspects of the setup thoroughly for better management. This even includes the workforce and employees that make it possible to run a setup. In this hospital business plan template, we will be looking at the employee and hiring structure of Mercy Ltd. 

7.1 Company Staff

• 1 Co-Manager to help in overall operations
• 8 Certified Doctors
• 3 General Cleaners
• 1 Technician to upkeep the machinery
• 1 HR Executive
• 2 Ambulance Drivers
• 2 Receptionists

Financial Plan

The success of a business and its smooth running depends on your research and asset management techniques.  Before stepping into the business world, you need to explore various hospital business plans. You need to ensure that you have enough finances to support your operations and range of services. This is where hospital financial planning comes in. 

To ensure that everything is running with balance and you’re not going into a loss, you will need to keep proper track of your finances. One way to deal with the overwhelming load of financial management is to make a financial plan. This can act as a guide for you to follow as the business progresses. 

Here, we are detailing the financial plan for Mercy Inc. You can also look at similar plans such as a non-medical home care business plan to get a hint. 

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

a. How do you start a hospital business?

You can start a healthcare setup by reviewing the strategic management in hospitals. This will inform you if you can manage the plethora of responsibilities that come with every healthcare business. After that, you need to plan everything and execute the business operations in steps. For the planning stage, you can take help from the sample business plan provided above.

b. What is a hospital business plan?

A business plan for hospitals is a document that is developed before starting a venture. It is done to ensure that you take the right steps to make your business a success. It helps with planning, management, and problem resolution among other things. 

c. What are the 4 types of hospitals?

The basic 4 types of hospitals in the US according to JamaNetwork are:

• Community Hospitals
• Federal Govt Hospitals
• Non-Federal Psychiatric care
• Non-Federal Long-term care

The business plan hospital provided here was written for a private community hospital. 

d. How do I write a hospital proposal?

You can write a hospital proposal by going through the private hospital business plan provided above and following all the tips mentioned.

Download Hospital Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Healthcare Business Plan Template

Written by Dave Lavinsky

There are several types of Healthcare businesses, from family medicine practices to urgent care centers to home health care agencies. Regardless of the type of healthcare business you have, a business plan will keep you on track and help you grow your healthcare business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download our Ultimate Business Plan Template here >

Below is the business plan outline you should use to create a business plan for your healthcare company. Also, here are links to several healthcare business plan templates:

• Assisted Living Business Plan
• Counseling Private Practice Business Plan Template
• Dental Business Plan
• Home Health Care Business Plan
• Medical Practice Business Plan Template
• Medical Spa Business Plan Template
• Non Medical Home Care Business Plan Template
• Nursing Home Business Plan Template
• Pharmacy Business Plan
• Urgent Care Business Plan

Finish Your Business Plan Today!

Healthcare business plan example outline, executive summary.

Although it serves as the introduction to your business plan, your executive summary should be written last. The first page helps financiers decide whether to read the full plan, so provide the most important information. Give a clear and concise description of your healthcare company. Provide a summary of your market analysis that proves the need for another healthcare business, and explain your company’s unique qualifications to meet that need.  

Company Analysis

Your company analysis explains your healthcare business as it exists right now. Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up clients or hiring healthcare providers with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market.

Industry Analysis

The healthcare industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in pediatric healthcare? senior healthcare? emergency medicine? family medicine? Figure out where your healthcare company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.  

Customer Analysis

Who will your healthcare company serve? Are they families? The elderly? What is important to them in a healthcare business? How do they select a healthcare provider? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

Finish Your Healthcare Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your direct competitors are those healthcare companies that fulfill the same needs for the same target market as yours. Your indirect competitors are healthcare businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your healthcare company apart. Categorize your indirect competitors as a group and talk about them as a whole.  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. The Product section describes the healthcare you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in servicing clients. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of service.  

Management Team

The management team section highlights the backgrounds of the key members of your team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Healthcare is a strong market, it usually not subject to economic turns. The financial plan requires you to detail your individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.

Healthcare Business Plan FAQs

What is the easiest way to complete my healthcare business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Healthcare Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of healthcare business you are operating and the status; for example, are you a startup, do you have a healthcare business that you would like to grow, or are you operating a chain of healthcare businesses?

Don’t you wish there was a faster, easier way to finish your Healthcare business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how our professional business plan writers can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan For Hospital

Congratulations on taking the first step in creating a business plan for hospital. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for hospital that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan will help you think about your hospital business like you’ve never done before. This thinking will help you clarify important elements like your long-term goals and objectives. You can then work backwards from your goals to develop strategies and marketing campaigns to help make these objectives a reality.

A business plan will also help you think about your customers in great detail. You will be able to understand their wants and needs, where they hang out, and exactly how you will target them. This clarity will enable you to focus on developing the products or services they want.

Finally, if you are seeking outside capital such as investment or a bank loan, a well-thought-out business plan will show them you are serious about your business and you have developed a clear and thorough plan of action to achieve success.

A Business Plan For Hospital - The Key Parts

The executive summary, your company description, market analysis, products and services.

• Marketing Strategy
• Operational Plan
• Financial Projections

Risk Analysis

• Funding Request and Use of Funds (if applicable)
• Additional Information

An executive summary of your business plan for hospital is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

• Overview of the Business
• Mission Statement
• Key Objectives
• Summary of Products/Services
• Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for hospital inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your hospital business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

• Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
• Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
• Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
• Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
• Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
• Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

Tips for writing the company description section:

• Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
• Include strong visuals and infographics.
• Avoid jargon and keep the writing style clear and concise.
• Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
• Back up this information with customer testimonials if possible.

The market analysis section of your hospital business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

• Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
• Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
• Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
• Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
• SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

• Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
• Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
• Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
• Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your hospital business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

• Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
• Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
• Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
• Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

• Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
• Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
• Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
• Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
• Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

Key Information to Include Within the Marketing Strategy Section:

• Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
• Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
• Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
• Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
• Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
• Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

• Create a visual marketing timeline.
• Outline influencer or brand ambassador partnerships if applicable.
• Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your hospital business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

• Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
• Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
• Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
• Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
• Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
• Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
• Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

How to add value to the Operation Plan section:

• Use visuals to outline organisation structures and workflows.
• Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
• Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
• Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

• Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
• Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
• Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
• Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
• Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

How to add value to your financial projections section:

• Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
• Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
• Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
• Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

• Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
• Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
• Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
• Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
• Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

• Create a visual timeline for key milestones such as the initial investment and key payback periods.
• Outline risk mitigation plans to instil confidence.
• Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your hospital business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your hospital car rental business plan, consider including the following:

• Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
• Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
• Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
• Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

• Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
• Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
• Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for hospital:

• Customer Surveys and Feedback
• Letters of Support or Intent
• Legal Documents (e.g., licenses, permits)
• Resumes of Key Team Members

A Business Plan For Hospital Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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Learning ZoNe

Business Plan Template for Hospital

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Creating a business plan for a hospital is a critical step in ensuring its success. Whether you're a healthcare entrepreneur or a hospital administrator, having a well-structured and comprehensive plan is essential for securing funding, attracting investors, and effectively managing your facility.

ClickUp's Business Plan Template for Hospitals is designed to simplify this process and help you outline and organize all the key elements of your plan. From strategic goals and financial forecasts to operational structure and marketing plans, this template has got you covered. Plus, it includes strategies for providing top-notch patient care and ensuring the long-term success of your healthcare facility.

Don't let the complexities of starting and managing a hospital hold you back. Use ClickUp's Business Plan Template to stay organized, focused, and on track for success!

Business Plan Template for Hospital Benefits

When using the Business Plan Template for Hospital, you can enjoy a range of benefits that will set your healthcare facility up for success:

• Streamline your strategic goals, financial forecasts, operational structure, and marketing plans into a comprehensive plan
• Secure funding and attract investors with a professional and well-organized business plan
• Ensure the successful establishment and management of your healthcare facility with a clear roadmap
• Optimize patient care strategies and enhance the overall quality of healthcare services provided
• Stay organized and focused on your goals throughout the entire process

Main Elements of Hospital Business Plan Template

ClickUp’s Business Plan Template for Hospitals is designed to help hospital administrators and healthcare entrepreneurs create a comprehensive and organized business plan to secure funding and effectively manage their healthcare facilities. This template includes:

• Custom Statuses: Track the progress of different sections of your business plan with statuses such as Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Add important details to your business plan with custom fields like Reference, Approved, and Section to ensure all necessary information is included and easily accessible.
• Custom Views: Utilize 5 different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to structure and visualize your business plan according to your needs. Whether you prefer a topic-based view, a status-based view, or a timeline-based view, ClickUp has you covered.

With ClickUp's Business Plan Template for Hospitals, you can streamline the planning process and create a compelling business plan for your healthcare facility.

How To Use Business Plan Template for Hospital

If you're in the healthcare industry and looking to create a business plan for your hospital, ClickUp's Business Plan Template can help guide you through the process. Follow these six steps to effectively use the template:

1. Define your vision and mission

Begin by clearly defining the vision and mission of your hospital. What do you aim to achieve and how do you plan to do it? Outline your goals, values, and the unique aspects that set your hospital apart from others.

Use the Docs feature in ClickUp to draft and refine your hospital's vision and mission statements.

2. Conduct market research

Next, gather relevant data and conduct thorough market research. This step will help you understand the healthcare landscape in your area, identify your target market, and analyze your competitors. Look for gaps in service, potential growth opportunities, and challenges you may face.

Utilize the Table view in ClickUp to organize and analyze your market research data.

3. Develop a comprehensive financial plan

Creating a solid financial plan is crucial for the success of any business, including hospitals. Determine your operating costs, revenue streams, and projected financial statements. Consider factors such as staffing, equipment, insurance, and regulatory compliance.

Use custom fields in ClickUp to track and calculate financial data, ensuring accuracy and organization.

4. Outline your services and specialties

Detail the services your hospital will offer and any specialties or niche areas you plan to focus on. Consider the needs of your target market and how your hospital can meet those needs. Highlight any unique services or innovative approaches your hospital will provide.

Create tasks in ClickUp to outline and categorize your hospital's services and specialties.

5. Develop a marketing and outreach strategy

To attract patients and build relationships with healthcare providers, you'll need a comprehensive marketing and outreach strategy. Identify the most effective channels to reach your target audience, such as social media, community events, or partnerships with other healthcare organizations.

Use the Calendar view in ClickUp to plan and schedule marketing campaigns and outreach activities.

6. Implement a performance monitoring system

To ensure your hospital is meeting its goals and constantly improving, implement a performance monitoring system. Establish key performance indicators (KPIs) and regularly track and analyze data to measure the success of your hospital's operations and initiatives.

Utilize the Dashboards feature in ClickUp to create visual representations of your hospital's performance metrics and track progress over time.

By following these six steps and using ClickUp's Business Plan Template, you can create a comprehensive and strategic business plan for your hospital.

Get Started with ClickUp’s Business Plan Template for Hospital

Hospital administrators and healthcare entrepreneurs can use the Business Plan Template for Hospitals in ClickUp to effectively plan and execute their healthcare facility's goals and strategies.

To get started, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan for your hospital:

• Use the Topics View to outline and organize different sections of your business plan, such as strategic goals, financial forecasts, operational structure, marketing plans, and patient care strategies
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will allow you to set deadlines and milestones for each section of your business plan
• The Business Plan View provides a holistic overview of your entire plan, allowing you to easily navigate and review all sections
• The Getting Started Guide View offers a step-by-step guide to help you understand and utilize the template effectively
• Utilize the custom fields Reference, Approved, and Section to add additional information and categorize different aspects of your business plan
• Collaborate with your team to gather input, ideas, and feedback on each section
• Regularly review and update your business plan as needed to ensure it remains relevant and aligned with your hospital's goals and objectives.
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How to Start a Hospital

A hospital represents one of the few business opportunities that give you the ability to save lives on a regular basis. In addition to treating illnesses and injuries, many establishments offer preventive health services. They also provide access to advanced equipment that helps primary care physicians accurately diagnose ailments. 

If you desire to make a huge difference in peoples' lives and find innovative ways to improve medical care, consider starting a hospital.

Learn how to start your own Hospital and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a Hospital by following these 10 steps:

• Plan your Hospital
• Form your Hospital into a Legal Entity
• Register your Hospital for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Hospital
• Get the Necessary Permits & Licenses for your Hospital
• Get Hospital Insurance
• Define your Hospital Brand
• Create your Hospital Website
• Set up your Business Phone System

We have put together this simple guide to starting your Hospital. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is very important. Read our detailed guide on how to name your business . We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

Want some help naming your Hospital?

Business name generator, what are the costs involved in opening a hospital.

You'll need to rent, buy, or construct a large building. A new hospital with 120 beds costs about $112 million to build, according to Fixr . You could reduce initial expenses by constructing a smaller " micro-hospital " for less than $55 million. These facilities often have ten beds at most. 

Either way, sophisticated medical equipment proves costly. You can finance or lease expensive devices to minimize upfront expenditures. Hospitals have to acquire furnishings, kitchen equipment, and computers as well. Specialized computer software frequently costs around $25,000 to $35,000.

What are the ongoing expenses for a Hospital?

Health facilities face high maintenance, utility, equipment replacement, medical supply, billing, and collection costs. Per-bed energy spending often exceeds $13,000. Salaries represent a large portion of the expenses due to the highly skilled and demanding nature of hospital labor. The typical facility devotes over $5 million to marketing, according to Healthcare IT Today . These establishments carry a range of insurance policies, such as liability, workers' compensation, commercial auto, property, and umbrella coverage.

Who is the target market?

Everyone could potentially need advanced medical services, but certain demographics require more hospital care. Federal data shows that Americans that are 65 to 84 years old visit these facilities most frequently and that women use hospitals in greater numbers than men.

How does a Hospital make money?

The facility bills patients after it provides services. Insurers and government benefit programs often pay at least a portion of the expense. Compensation must exceed total labor, medical supply, and overhead costs. Hospitals can also earn money by selling food to guests, and some establishments operate retail gift shops. It's possible to rent out office space to doctors as well.

Kaiser Health News reports that it costs $2,032 for an average emergency room visit. People typically spend over $15,000 on inpatient care. Major surgeries such as heart valve replacement might cost over $150,000, according to Debt.org . Hospitals may bill different amounts depending on whether the patient has insurance, uses a government program, or pays in cash. Managed-care contracts dictate the amounts that many insurers pay; you'll need to negotiate with specific insurance companies. A recently enacted law requires hospitals to list prices on their websites.

How much profit can a Hospital make?

Around three out of four hospitals operate as public or nonprofit institutions. Nevertheless, some for-profit companies have become quite successful. These facilities achieve a profit margin of 11% on average.

How can you make your business more profitable?

Outpatient treatments remain more lucrative than overnight inpatient services. While hospitals can advertise the benefits of highly profitable operations, it's difficult to control revenue. Closely monitor the number of minutes it takes to complete medical procedures. This will help you ensure that physicians don't retain operating rooms for unnecessarily long time periods.

Hospitals have many opportunities to cut expenses. They consume more energy than other buildings, so it's vital to optimize the orientation of new structures and insulate them thoroughly. Continually search for the best prices on well-made supplies; some hospitals successfully request discounts from existing suppliers. Encourage employees to think about the costs associated with their decisions and strive to find more economical solutions (without compromising the quality of care).

• Set up the HVAC system to automatically reduce heating or cooling levels in unoccupied areas.
• Identify patients who overuse the emergency room and help them find more suitable solutions.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Hospital is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a Hospital

You can enhance your institution's credibility by seeking positive media coverage of accomplishments and new services. Many local newspapers publish articles about nearby medical establishments. As Becker's Hospital Review points out, women often encourage men to visit health facilities. It's particularly important for your marketing messages to reach them. You need to gain the trust of surgeons and other doctors in the area as well. Invite these professionals to tour the hospital in hopes that they'll use it to perform operations. They could also refer patients to your establishment for services they don't provide.

How to keep customers coming back

Remember that a positive guest experience can turn visitors into customers. While sophisticated equipment and qualified staff hold great importance, simpler things like plants, artwork , and colorful decor also boost satisfaction. A warmer atmosphere creates more positive memories and may even promote faster recoveries.

To retain patients, collect feedback and respond to concerns quickly. Even when you provide exemplary health care, seemingly minor things like a tactless comment, billing error, or long waiting time can result in losing a customer. Don't overlook convenience and flexibility; patients want to feel "in control." They also appreciate efforts to enhance their enjoyment of life beyond the treatment of specific conditions.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

You might succeed in this field if you don't mind complicated projects that take a long time to reach completion. Hospital executives must have a willingness to hire competent individuals and let them make important decisions. This opportunity isn't ideal for someone who prefers to complete major tasks single-handedly. There are easier, simpler ways to earn money; you should only get involved in this business if you genuinely seek to help others.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a Hospital?

As patients arrive, physicians must diagnose a wide variety of conditions. Some people receive self-care instructions or referrals to specialists. Others need to undergo medical procedures in the operating rooms. Staff members also perform an assortment of mundane daily tasks, such as answering phones, serving meals, washing sheets, and cleaning surfaces.

What are some skills and experiences that will help you build a successful Hospital?

Management and medical skills will benefit you in this role. It helps if you have experience running a smaller health business, such as a clinic, pharmacy, or urgent care center. You'll need to communicate clearly and confidently. Hospital founders must have the ability to give commands as well as listen carefully. Successful health entrepreneurs may have prior experience in improving quality and efficiency within the limits of complex regulations.

What is the growth potential for a Hospital?

The federal government predicts that spending at hospitals will grow by nearly 6% annually through 2027. While some owners focus their efforts on a single facility, several companies operate large chains. For instance, Tennessee-based Hospital Corporation of America was founded in 1968 and eventually came to possess 185 locations.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a Hospital?

Before accepting patients, hold staff exercises that test out the new building and equipment by simulating medical emergencies. These drills provide beneficial training and a safe way to identify any defects. Be sure to collect detailed employee feedback. Clearer signage or enhanced lighting could make a big difference when the first ambulances arrive.

Use leasing to acquire a major piece of equipment if the machine involves rapidly changing technologies. For example, ultrasound tends to advance faster than X-rays. A lease lets you upgrade more easily. Otherwise, choose a financing option so that you'll eventually own the device.

If you rent out medical office space, you can make it more attractive with guaranteed parking spaces and permission to access the building at a wide range of hours. Don't require physicians to commit to leases for several years. They have many options, so it's crucial to offer flexibility and competitive pricing.

Some medical services need to subsidize others. Your hospital ought to charge private insurers enough money to compensate for smaller payments from other sources. Government programs often provide less reimbursement, and uninsured patients might lack sufficient income to pay bills in full. The same goes for insured customers with very high deductibles.

How and when to build a team

You'll have to immediately start hiring staff members such as managers, specialists, nurses, cooks, customer service representatives, and janitors. Hospitals don't necessarily need to hire physicians. They frequently lose money by directly employing doctors (rather than referring patients to independent doctors), according to the Harvard Business Review . Staff members should be qualified as well as caring and personable. Liability represents a serious concern; always thoroughly screen employees at every level, even when it becomes difficult to find suitable personnel. Health-oriented customer service representatives earn just over $12 per hour on average. Registered nurses get paid about $30 an hour, according to PayScale .

Have a Question? Leave a Comment!

Hospital Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Hospital and Clinic

Are you about starting a hospital/healthcare center? If YES, here is a complete sample hospital business plan template & feasibility study you can use for FREE .

Okay, so we have considered all the requirements for starting a hospital . We also took it further by analyzing and drafting a sample healthcare service marketing plan template backed up by actionable guerrilla marketing ideas for hospitals. So let’s proceed to the business planning section.

It might no longer be new to you that health is indeed wealth. We all have come to know that aphorism without no hassle.

It is therefore in place to say that when one has a sound health, one can be of optimum relevance to the society. This is one of the reason those who are in the medical line are solving this problem through diverse healthcare businesses. One healthcare business that is focus here is the hospital business.

Starting a hospital is one of those businesses that require you to first look at the existing laws in the country or the State you reside, before going all out to start the business. This is so because there is hardly any country that does not pay serious attention on their health sector.

The health industry is usually highly regulated so as to guide against the infiltration of quacks or substandard hospital or health facilities.

If you have interest in starting your own hospital business, then you would need to pay a visit to the health and medical regulatory body in your country ( the department / ministry of health and medical services ) to get all the needed information that is required before you can legally start your own hospital business in your city.

Also the business plan is something that you have got to tackle with before launching out in business. Very vital information such as the vision, mission, marketing plans, legal documents, as well as many other things will be looked in a business plan. Here is a sample hospital business plan that is capable of leading you all the way;

A Sample Hospital Business Plan Template

1. industry overview.

No doubt, the healthcare cum medical industry of which hospital business is a subset of, is perhaps one of the fastest growing and largest industries in the world; this is so because the wealth of any nation depends on the health of the nation.

Obviously there is hardly any country where the healthcare industry is not handled with all seriousness. As a matter of fact, the healthcare industry is known to gulp well over 10 percent of gross domestic product (GDP) of most developed countries.

Basically, a healthcare provider is a health professional such as nurse or doctor et al or an establishment such as a hospital or a medical clinic or a healthcare center / facility that provides preventive, curative, promotional, rehabilitative or palliative healthcare / medical services in a systematic way to individuals, families or communities.

The hospital industry comprises of operators who are licensed as general medical and surgical hospitals that provide surgical and nonsurgical diagnostic and medical treatment to inpatients with medical conditions. In general, hospitals maintain inpatient beds and usually provide other services such as outpatient services, operating room services and pharmacy services.

There is indeed a very large market for hospital (healthcare service) providers in the united states and of course in most parts of the world.

For instance, the World Health Organization (W.H.O) estimated that there are about 9.2 million physicians, 19.4 million nurses and midwives, 1.9 million dentists and other dentistry personnel, 2.6 million pharmacists and other pharmaceutical personnel, and over 1.3 million community health workers worldwide. This goes to show that the healthcare industry is indeed one of the largest segments of the workforce of any nation.

It is on record that in 2011, healthcare costs paid to hospitals, physicians, nursing homes , diagnostic laboratories, pharmacies, medical device manufacturers and other players in the healthcare system business value chain consumed an estimated value of 17.9 percent of the Gross Domestic Product (GDP) of the United States; this is indeed the largest of any country in the world.

As a matter of fact, experts projected that the healthcare share of the GDP of the United States will continue to grow, reaching 19.6 percent of GDP by 2016. The Healthcare cum Hospital industry is indeed a very massive industry in the U.S.

Statistics has it that The Hospital industry in the United States of America, is worth $986bn, with an estimated growth rate of 3.4 percent.

There are about 3,184 registered and licensed hospital businesses in the United States and they are responsible for employing about 5,513,669 people that comprises of doctors, nurses, pharmacists, dentist, opticians, surgeons and other health and non – health workers.

It is important to state that there is no hospital with a lion share of the available market in the United States. If you are considering starting your own hospital in the United States, then you should try and work around the industry barriers.

The truth is that, the barriers to entry in the Hospitals industry are high and this is due to the significant regulatory requirements and the experience and strength of incumbents. For example, medical licensure creates a barrier to entry in the healthcare sector.

As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a hospital to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.

Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.

Over and above, if you are determine and you are ready to go all the way, you will surely succeed in establishing your hospital in the United States of America and you will be glad you did because it is indeed a profitable line of business.

2. Executive Summary

Joan & Phil® Hospital, LLC is a standard, licensed and certified hospital service provider that will be located in the heart of Miami Beach, Florida – United States of America. We have been able to acquire a standard facility that is highly suitable for the kind of hospital business we want to operate.

Joan & Phil® Hospital, LLC is in the hospital industry to provide healthcare services such as Inpatient care, Outpatient care, Anatomical pathology services, Diagnostic X-ray services, Clinical laboratory services, Operating room services and other medical services. We are well trained and equipped to service the market segments that require healthcare services.

We are in the hospital business to deliver excellent healthcare services to all those who will patronize our services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in Florida and The United States of America. Our employees are well trained and qualified to handle the wide range of healthcare services.

Joan & Phil® Hospital, LLC will operate a 24 hours 7 days a week healthcare service; our hospital will be opened round the clock to attend to clients (patients). We have a standard medical call center that is manned by trained health workers.

Our work force is going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers. Joan & Phil® Hospital, LLC will ensure that all our patients cum customers are given first class treatment whenever they visit our hospital.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows. Joan & Phil® Hospital, LLC is a family business that is owned and managed by Dr. Marvin Clarkson and his wife Joan Clarkson (Nurse). Dr. Phil Clarkson is going to be the Medical Director (Chief Executive Officer) of the hospital;

He is a qualified and well trained Medical Doctor with well over 15 years of experience working as a medical doctor and medical researcher with the United States’ government. He will be ably supported by his wife Joan Clarkson who has grown in her career to become one of the most respected senior nurses in Miami, Florida.

3. Our Products and Services

Joan & Phil® Hospital, LLC is in the business of ensuring that our patient / clients are well treated and taken care of and our services will be carried out by highly trained professional doctors, dentist, surgeons, opticians, nurses, nurse’s aides, mental health counselors, chiropractors, medication management counselors, physical therapists and other health and non – health workers, who know what it takes to give our highly esteemed customers (patients) value for their money.

These are the healthcare services that Joan & Phil® Hospital, LLC will be offering;

• Inpatient care
• Outpatient care
• Anatomical pathology services
• Diagnostic X-ray services
• Clinical laboratory services
• Operating room services
• Occupational, Physical, and Speech Therapy
• Personal Injury Case Management

4. Our Mission and Vision Statement

• Our vision is to become the number one choice when it comes to healthcare service delivery in the whole of Florida and also to be amongst the top 20 ( hospital ) healthcare service provider in the United States of America within the next 10 years.
• Joan & Phil® Hospital, LLC is in business is to establish a first class hospital that will take care of both highly placed clients and lowly placed clients as long as they can afford our services.
• We want to become one of the leaders in the hospital cum healthcare services industry in Florida, and in The United States of America.

Our Business Structure

Joan & Phil® Hospital, LLC is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (doctors, dentist, surgeons, opticians, nurses, nurse’s aides, chiropractors, medication management counselors, physical therapists and other health and non – health workers) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the hospital cum healthcare industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our hospital brand to be well accepted in Florida and the whole of the United States.

When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Joan & Phil® Hospital, LLC;

• Chief Medical Director / Chief Executive Officer
• Doctor / Surgeon / Dentist

Nurses / Nurse’s Aides

• Information Technologist (Contract)
• Admin and Human Resources Manager
• Sales and Marketing Executive
• Accountant / Cashier
• Customer Care Executive

5. Job Roles and Responsibilities

Chief Medical Director / Chief Executive Officer:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Attend to high profile clients and severe medical cases
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for providing professional medical services to our patients
• Responsible for offering occupational, physical, and speech therapy
• Responsible for handling medical emergencies.

Pharmacist:

• Responsible for managing the daily activities in the company (dispensary store)
• providing advice about health issues, symptoms and medications in response to customer enquiries
• Responsible for recruiting, training and managing staff
• Responsible for processing prescriptions and dispensing medication
• Responsible for ordering, selling and controlling medicines and other stock
• Responsible for meeting medical representatives
• Responsible for managing the organizations’ budgets
• Responsible for keeping statistical and financial records
• Responsible for preparing publicity materials and displays
• Handle marketing services
• Interfaces with third – party providers (vendors)
• Handle any other duty as assigned by the Medical Director.
• Responsible for managing our patients
• Handles personal injury case management
• Responsible for offering medication management services
• Assist the doctors in treating patients

Sales and Marketing Manager

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
• Responsible for handling business research, market surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding increase sales
• Create new markets cum businesses for the organization
• Empower and motivates the sales team to meet and surpass agreed targets

Information Technologist

• Manage the organization website
• Handles e-commerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CRM software application
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for Joan & Phil® Hospital, LLC
• Serves as internal auditor for Joan & Phil® Hospital, LLC.

Client Service Executive

• Welcomes clients and potential clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the creative director in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
• Responsible for cleaning the hospital facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the hospital facility
• Handle any other duty as assigned by the admin and HR manager.

6. SWOT Analysis

Joan & Phil® Hospital, LLC is set to become one of the leading hospital cum healthcare service providers in Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our hospital to be the number one choice of all residence of Miami and other cities in Florida.

We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.

Even though our Chief Medical Director (owner) has a robust experience in health management services, public health and medical research, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the hospital / healthcare industry.

This is the summary of the SWOT analysis that was conducted for Joan & Phil® Hospital, LLC;

Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our hospital. As a matter of fact, they are some of the best hands in the whole of Miami Florida.

Our location, the Business model we will be operating on, opening 24 hours daily and 7 days in a week, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.

Our perceived weakness lies in the point that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed for the acquiring some of the latest medical and surgical equipment et al.

• Opportunities:

The opportunities that are available to hospitals cum healthcare services providers are unlimited considering the fact that hospital is not only meant for those who are sick and need treatment; people who are not sick may be required to conduct routine medical checkups from time to time and we are going to position our hospital to make the best out of the opportunities that will be available to us in Florida.

Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new and bigger / well established hospital or healthcare brand in same location where our hospital is located.

7. MARKET ANALYSIS

• Market Trends

The hospital cum healthcare industry is indeed a thriving and dynamic industry; with the aid of technology, it is becoming easier to treat, manage and cure some ailments that before now are not easy to handle. No doubt there are many ways of providing healthcare services in this changing era since the place of delivery may be in the patient home, the community, the workplace, or in health facilities.

The hospital industry has recently begun consolidating, largely due to the pressures of healthcare reform. The truth is that, the demand for hospital cum healthcare services has steadily grown over the last five years, as healthcare reform legislation broadened insurance coverage and the plummeting unemployment rate increased disposable income.

As an investor in the hospital cum healthcare industry, in order to maintain an advantaged position in this competitive industry, you should source for the most skilled and specialized healthcare professionals. One thing about this industry is that labor costs is on the high side. However, hospitals have also faced nurse and physician shortages and have struggled to recruit qualified personnel.

Industry profitability has generally risen over the past five years due to increases in service prices. No doubt the home healthcare industry will continue to grow and become more profitable because the aging baby-boomer generation in Unites States is expected to drive increasing demand for healthcare services.

8. Our Target Market

Joan & Phil® Hospital, LLC is in business to service a wide range of customers in Miami Beach, Florida – United States of America and other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We will ensure that we target but self – pay customers (who do not have health insurance cover), and those who have health insurance cover. Generally, every living person, whether old or young will at one point or the order need to visit the hospital.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the hospital cum healthcare industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies.

Our customers can be categorized into the following;

• The whole residents within the area where our hospital is located
• Expectant Mothers
• Injured Sports Men and Women
• Corporate organizations such as banks, insurance companies, manufacturing companies, oil and gas companies et al
• Health Management Organizations (HMOs)

Our Competitive Advantage

Aside from the competitions that exist amongst various hospitals, they also compete against other healthcare services providers such as home healthcare services providers, health centers and community clinics et al.

To be highly competitive in the hospital cum healthcare industry means that you should be able to deliver consistent quality patient service and should be able to meet the expectations of your patients at all time; they should experience improvement in their health when they patronize your hospital.

Joan & Phil® Hospital, LLC is coming into the market well prepared to favorably compete in the industry. Our hospital facility is well positioned ( centrally positioned ) and visible, we have enough parking space with good security. Our staff is well groomed in all aspect of healthcare service delivery and all our employees are trained to provide customized customer service to all our clients (patients).

Our services will be carried out by highly trained professionals ( doctors, dentist, surgeons, opticians, nurses, nurse’s aides, chiropractors, medication management counselors, physical therapists and other health and non – health workers ) who know what it takes to give our highly esteemed customers value for their money.

We are going to be one of the few hospitals cum healthcare service providers in the whole of Florida that will run a standard medical call center for 24 hours a day and 7 days a week. We have enough trained health workers that are ready to run a shift system.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups hospitals cum healthcare service providers in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Joan & Phil® Hospital LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Joan & Phil® Hospital, LLC;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. We have been able to critically examine the healthcare market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Miami – Florida. Below is the sales projection for Joan & Phil® Hospital, LLC it is based on the location of our hospital and of course the wide range of our services and target market;

• First Year-: $100,000 ( From Self – Pay Clients / Patients ): $250,000 ( From Health Insurance Companies )
• Second Year-: $250,000 ( From Self – Pay Clients / Patients ): $500,000 ( From Health Insurance Companies )
• Third Year-: $500,000 ( From Self – Pay Clients / Patients ): $1,500,000 ( From Health Insurance Companies )

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing and sales strategy of Joan & Phil® Hospital, LLC will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch all – round healthcare services at affordable prices compare to what is obtainable in Florida.

All our employees will be well trained and equipped to provide excellent and knowledgeable healthcare services and customer service.

We know that if we are consistent with offering high quality healthcare service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for our hospital, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Miami Beach, Florida – United States of America and other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al where our services will be available.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the hospital cum healthcare industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Florida. In summary, Joan & Phil® Hospital, LLC Services will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and corporate organizations
• Advertise our hospital in community based newspapers, local TV and local radio stations
• List our hospital on yellow pages ads (local directories)
• Leverage on the internet to promote our hospital
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals)
• Enter into business partnership with health management organizations, government agencies and health insurance companies.
• Attend healthcare related exhibitions / expos.

11. Publicity and Advertising Strategy

We are in the hospital business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote our hospital. Joan & Phil® Hospital, LLC has a long term plan of opening of hospital in key cities around Florida which is why we will deliberately build our brand to be well accepted in Miami Beach before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Joan & Phil® Hospital, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community health programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Miami Beach Florida.
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Joan & Phil® Hospital, LLC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.

On the average, hospitals and healthcare service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment.

In view of that, it is easier for hospitals and healthcare service providers to bill their clients based in their discretions. However, in some cases hospitals and healthcare service providers also adopt the hourly billing cum per visit billing method.

For example, it is easier and preferable for hospitals and healthcare services providers to bill personal injury case management services by the hour as against a fixed price.

• Payment Options

At Joan & Phil® Hospital, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Check (only from loyal customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

If you are looking towards starting a hospital, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You would need money to secure a standard hospital facility, you will need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.

Besides it is expensive to acquire a standard well – equipped ambulance. The items listed below are the basics that we would need when starting our hospital in the United States, although costs might vary slightly;

• The Total Fee for Registering the Business in the United States – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of Joan & Phil® Hospital, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for hospital remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $300,000
• The cost for Start-up inventory (stocking with a wide range of products) – $150,000
• Storage hardware (bins, rack, shelves,) – $3,720
• Cost for Nurse and Drugs Supplies (Injections, Bandages, Scissors, et al)- $3,000
• Cost for medical equipment – $300,000
• Cost of purchase of ambulance and other vehicles : $100,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching a Website: $700
• Miscellaneous: $10,000

We would need an estimate of $1.2M to successfully set up our hospital in Miami Beach – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Joan & Phil® Hospital, LLC

Joan & Phil® Hospital, LLC is a private business that is solely owned and financed by Dr. Phil Clarkson and his wife Joan Clarkson (Nurse). They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Joan & Phil® Hospital; LLC intends to generate our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $1M from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Joan & Phil® Hospital, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our healthcare services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Joan & Phil® Hospital, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of Medical Equipment and Ambulances et al: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our pharmacy store: Completed
• Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress .

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How to Write a Business Plan for an Outpatient Medical Practice

Noah Parsons

16 min. read

Updated February 7, 2024

Free Download:  Sample Medical Practice Business Plan Template

So you’re thinking about starting your own outpatient medical practice.

You probably have many good reasons to open a private practice. Private practices can be lucrative, although it requires you to spend time building relationships with patients while also attending to all business processes that are part of running your practice .

Maybe you want more autonomy over your practice and your workflow. Or maybe you hope to expand your services to underserved areas or specific populations based on your expertise.

If you’re thinking about starting an outpatient medical practice, one of the first things you should do is write a business plan. Even if you’re able to self-fund your practice and don’t need outside investment, your business plan is a great tool for thinking through all the different aspects of building a profitable and sustainable practice.

You should go into this thinking about your business plan as a living document, not something you do once and then file away forever. Use it as a tool, especially around your financials. Revisit and update it regularly by comparing your forecasts to your actuals and adjusting as necessary.

To help you get started, you can download our free business plan template . If you’ve never written a business plan before, Bplans also offers a library of sample medical business plans that you can review or even download to use as a model.

• Executive summary

The first section that will appear in your business plan is the executive summary . But before you dive right in, it’s the section of your plan that you should actually write last. It’s a summary and an overview of your outpatient medical practice and your plans, so it will be easy to put together after you’ve written the rest of your plan.  

Executive summaries are short—keep it to one to two pages. Keep in mind that if you’re using your plan to get funding, investors and banks tend to read your executive summary to get a sense of whether to read on and consider your request. Do not neglect it; just write it last.

Your executive summary will include the following sections:

• Who you are: Your business name, location, and contact information.  
• What you offer and the problem your business solves: What does your practice offer and why is it needed? This is your value proposition .
• Target market: Who is your ideal patient? Do they self-pay or use insurance? Be specific.
• Competition: Who else is offering similar services?
• Team: Who is on your management team?
• Financial summary: Explain your business model, startup costs, revenues, and liabilities to the company. Mention your funding needs.
• Milestones and traction: How have you validated that there’s a need for your practice in your location?

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Now that you’re familiar with what’s included in your executive summary, tuck that information away, and get to work on the rest of your plan.

Think of the next few sections of your plan as the overarching description of your practice’s business opportunity. You’ll cover the problem you’ve identified and the solution that your practice offers. Then you’ll think through your ideal customer , your competition , and your opportunities for growth . This section area should describe the services you provide and how they benefit your patients.

• Problem and solution

First, describe the problem that you’ve identified and how your practice solves that problem. Here’s a brief example:

The problem : There is a lack of affordable pediatric and gynecological care available in coastal areas of Lane County, Oregon. Many patients have to travel miles to the closest practice.  

The solution : Dr. Gardner plans to open Ocean Lane Outpatient Care to serve smaller Oregon coastal communities scattered outside of major towns with major hospitals. Due to her focus on pediatric and gynecological care, Dr. Gardner’s particular services are especially valuable in this location due to the lack of available service providers in the area. Dr. Gardner’s practice will accept private insurance and Medicaid, as well as a sliding scale for patients in a certain income bracket.   

The services section identifies what kind of medical practice you are opening. Restate who your practice serves and what kind of services you specialize in. Talk about how your practice approaches treatment and what goals you have in addition to providing quality care. Here’s an example from a sample business plan for a medical practice.

Include a breakdown of all services furnished by the clinic, being as granular as possible. For example:

Gynecology:

• Annual women’s wellness exam

Pediatrics:

• Immunizations
• Youth eating disorder treatment
• Target market

Next, talk about your ideal patients. If you’re in the earliest stages, you’ll want to do some research that verifies your hypotheses.

For example, Dr. Gardner would have needed to verify her assumption that people in coastal towns in Oregon are in need of pediatric and gynecological services—a need that isn’t currently satisfied by available resources.

A formal market analysis can help verify that there’s a need for your particular practice in your intended location.  

Your target market section should include:

• TAM, SAM, and SOM: Total Available Market (TAM), Segment of the Available Market (SAM), Share of the Market (SOM). Here, you are looking at the difference between targeting everyone: TAM (all people who need medical care—so all humans in your area), versus your ideal clients: SAM (maybe this is those with certain insurance or ability to self-pay), versus the number of new patients you think you can realistically reach: SOM, especially within your first few years. The idea is that not everyone will be an ideal patient. It matters because you can waste a lot of money with marketing outreach to everyone, instead of targeting a specific population that is more likely to be looking for your services.
• Buyer persona : Imagine there’s one specific patient who represents your ideal patient. Be specific. Maybe she’s 34 years old, has private insurance, is relatively healthy, but needs more regular medical care and advice.  
• Competition and competition matrix : List competitors and analyze what makes them competitive. For instance, your competitors might be large hospitals because of the wide range of services they offer. You might also be competing with local chiropractors or other alternative medicine practices that already have a foothold in local communities.
• Future products and services : Name the products/services you will offer as your practice grows and earns more money and as your patients develop new needs. Maybe you will want to open a second location when you gain enough patients. Or maybe you will want to extend your practice’s hours of operation.

Ideal patient profile

Your ideal patient profile identifies the type of patient whom you hope to attract and retain. To clarify, this does not mean you only serve your ideal patient type. Rather, focusing your outreach efforts on attracting your ideal patient will allow you to grow your practice more effectively than targeting a large number of patients who may or may not be in the market for your practice’s specialty.

When developing your ideal patient profile, consider:

• Who you enjoy working with
• Who needs the services you provide
• Who can and will pay your pricing (or have an insurance plan that you want to accept)

For instance, because Dr. Gardner specializes in preventive and curative care, a patient seeking palliative treatment for terminal cancer is not the ideal patient. This patient would not receive the best care for their needs from Dr. Gardner’s services.

Acquiring a new patient is six to seven times more expensive than retaining a current patient. In order to support and retain current patients, develop a strategy to proactively meet their needs and set benchmarks to measure the success of your strategy.

• Execution: How your practice will respond to the opportunity

First, your business plan laid out the opportunity at hand. Now, the rest of your plan will focus on how to take advantage of that opportunity. Now is the time to lay out what you’ll do to attract patients and set up a viable business model with healthy financials.

Components of this section include:

• Your marketing and sales plan
• Strategic partnerships or alliances
• Your operations plan
• Your team and company information
• Financial plan
• Milestones and metrics that you’ll need to hit to be viable
• Your key assumptions and risks
• Your funding ask and exit strategy, if applicable
• Marketing and sales plan

The marketing and sales component of your plan should include how you plan to reach the patients in your target market, how you’ll bill for your services, and what you need to do to bring in the right number and type of patients.

• Positioning : Describe how you will present your company to your customers with your positioning statement . Think about answering these questions: What are you offering your patients that they can’t get elsewhere? Why should they pick you instead of another practice? Where do you see yourself in the competitive landscape? Use this model to help:

“For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].”

For [coastal community members] who [require gynecological care], Ocean Lane Outpatient Care [provides both pediatric and women’s health services]. Unlike [other area medical practices], Ocean Lane Outpatient Care is [conveniently located near the communities it serves and can fill the gap between pure pediatric care and full-blown adult care for young women].

• Pricing and billing : Medical pricing is complex, especially if you plan to work with insurance companies. Practice Builders says that “a 10 percent increase in pricing can result in a much better return than a 10 percent reduction in costs—or even a 10 percent increase in patient volume.”

Make sure you price your services at what they are worth and explain your pricing to your patients. Consider the demographics your practice serves when you choose your pricing. Research other practices in the area and learn more   about how you can choose the best prices for your patients and your practice.Also, consider how you will get patients to keep coming back to your practice. Sometimes you can increase sales by upselling and cross-selling , or offering complementary services.

If you accept insurance, the contracts you set up with insurance companies for reimbursement will probably dictate your pricing, so this is a good place to talk about your negotiation strategy as well.

• Update your website and social media frequently and ensure your website is mobile-friendly and share-friendly with credible links added.
• Make sure all communications with and about patients are HIPAA-compliant . Download a HIPAA Compliance Guide to ensure you are following regulations.
• Maintain a positive online reputation for your practice as a key management technique. You can do this by claiming your profile on any third-party sites that list it. Encourage your patients to review you online, too.
• Strategic alliances : List any people or organizations with whom you are working. You will most likely need to partner with a regional lab for medical testing. Opening an on-site lab can be costly for a smaller practice. You will most likely need to partner with a nearby hospital as part of a referral system or to share select services and equipment.

The operations section of your business plan covers how your business works, from the logistics to the technology.

• Technology: Describe how your technology works, but do not go into too much detail. Investors can ask for more information if they want to. Will you rent or buy equipment ? The technology you need ranges from simple items like thermometers to more complex items like centrifuges.
• Billing and information storage: Provide a brief overview of how you will manage information technology and patient records to promote safety, efficiency, and compliance with HIPPA  regulations and industry standards. Explain your usage of Electronic Medical Record (EMR) software in this section.
• Payment types you accept: Consider payment types such as private pay, private insurance, Medicaid/Medicare, etc. What kind of referrals can you offer to the uninsured or those who cannot afford your services?
• Milestones and metrics

In this part of your plan, you set measurable, achievable milestones, such as the number of new patients added per month in the first year of operations. Milestones can be about any aspect of your medical practice as long as they emphasize growth. For metrics , decide which numbers to check regularly to track your company’s health. This area should also include information about traction (past successes) and risks:

• Traction: Look back at major milestones you have achieved. Hopefully, they demonstrate that your business model works and that you are filling a need for your market. If you’re looking to attract private funders, this section is important since it shows your initial success .
• Key assumptions and risks : Acknowledge the assumptions you are basing your business on. Set out to prove them right if you can. Also, discuss risks so that investors know you have considered what could go wrong and that you have a plan for dealing with challenges. Malpractice suits and changing healthcare regulations are risks specific to the healthcare field. Malpractice insurance is a must for addressing the former. Changing healthcare regulations can affect the volume of patients who are able to afford your services.

Your team can be more important than your product or service. Describe your team here, even if it is just you and a receptionist who answers the phone in your office building.

• Management team and qualifications: Address who works for you, what do they do, and how much you pay them. Compile the details of their relevant experience and education.
• Hiring plans : Outline who, if anyone, you need to hire to fill skills gaps in your management team and how much you plan to pay them.
• Company overview

The company overview tells about who you and your staff are and appeals to potential investors. Keep it short—it should be the shortest chapter of your business plan but is still very important.

It needs to include these elements:

• Mission statement : Your mission statement articulates your goals for what your company does for its customers, employees, and owners. It will read something like this: “Our mission is to provide X (services) for Y (customers) by Z (methods).” For instance, Ocean Lane Outpatient Care is dedicated to providing quality care for all the inhabitants of coastal Lane County by providing affordable and versatile services.”
• Intellectual property : List any patents you have or have pending, and mention any core technology you are licensing from another company.
• Legal structure and ownership : Explain your business structure and who owns how much of it. More on considerations for physicians and legal structure here.
• Business location : Describe the company’s location and any facilities it owns.
• Company history if it’s an existing company

Having a solid financial plan is critical, whether you’re seeking funding or not.  A typical financial plan includes projections by month for the first year and annual projection for the next three to five.

Include these key elements:

• Profit and loss statement : this explains how your business made a profit or incurred a loss in a given amount of time (typically three months) by listing all revenue and expenses, then documenting the total amount of net profit or loss.
• Cash flow statement: documentation of how much cash the business brought in, how much it paid out, and the amount of its ending cash balance (on a monthly basis).
• Balance sheet : snapshots how your company is performing at a given moment by including how much money you have in the bank, how much your customers owe you, and how much you owe your vendors.
• Sales forecast : projections of what you think you will sell in a given timeframe (one to three years).
• Business ratios : Comparisons of your company’s financials with numbers from the industry profile.
• Keep it brief. For example, Dr. Gardner will employ administrative aides and nurses.
• Use of funds : Needed if you’re seeking investment or a loan. This section explains how you will use investors’ money.
• Exit strategy : You only need this if you’re seeking outside investment. An exit strategy is a method by which entrepreneurs and investors, especially those that have invested large sums of money, transfer ownership of their business to a third party to recoup money invested in the business. Common exit strategies include being acquired by another company, the sale of equity, or a management or employee buyout.

When writing your financial plan, make sure to consider startup costs . For a medical practice, average startup costs can include initial fees, malpractice insurance, cost of renting or leasing office space, and the cost of any legal or tax advisors.

Consider submitting your plan to at least five to 10 banks if you need help financing your startup costs. Many banks have divisions designated to providing loans to new dental and medical practices , so submit your plan to that division if you can. Startup costs can be high in the medical field, so make sure not to underestimate them.

Finally, your appendix is the holder for any supporting information such as charts, images, graphs, and more. If you need to include large sets of data or pages of information, put it here. That way, it is available but does not distract from the plan’s most important pieces.

For instance, you can expand on your personnel plan with charts of each employee’s annual insurance costs. You can also include versions of your profit and loss statements and other financials that extend further into the future.

Don’t forget to go back to your executive summary! Remember to keep it brief and write it based on what you have written already.

When you’re ready to write your business plan, there are an array of resources available to you. Download our free business startup checklist to think about the next steps. Also, check out our free business plan template . Reviewing sample business plans in the medical field can help you get a better sense of the process and information you’ll provide. Downloading this plan for a family medicine clinic will probably be most helpful if you’re setting up a primary care practice.

Remember that this plan is a living document. Schedule a regular business plan review meeting. You should review your trajectory and compare your financial projections to your actuals frequently to keep your practice on track.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Position your practice’s business opportunity

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How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Marketing is crucial for any industry, and healthcare industry is no exception. Whether you are a big hospital or private practice, creating and implementing an effective marketing plan will help to attract new patients, retain the existing ones and maintain relationships with your staff and patients. An effective marketing strategy will play an integral role in increasing revenue, building patient trust, improving online reputation and expanding your reach.

A healthcare business plan can help you define and identify the target audience and key prospects. It can also assist in evaluating and comparing your practice data against your industry. Clearly, a business plan is necessary, so does your practice have one? Here are some more benefits of creating a strategic plan for your medical practice:

• Physician business plan provides clear direction to your marketing initiatives, preventing random activities that may work against each other.
• The process of developing a strategic plan offers an opportunity for everybody involved to collaborate in shaping the future of the practice. Active participation of all the stakeholders ensures the success of projects and priorities.
• A strategic healthcare business plan helps the physician set marketing goals and priorities for the medical practice.
• Clarity of aims and objectives can improve the quality of patient care.

Strategic business planning offers great long-term value. After the initial planning is done, a practice can use it as the benchmark for measuring progress and monitoring areas of improvement.

The process for preparing a strategic business plan is not clear-cut, but it is one of the most important things you should do for the strategic growth of your practice. A well-defined marketing plan will outline how you will retain existing patients and attract new patients, retain staff and communicate your message in the most efficient manner.

You do not need to hire expensive consultants to create a marketing plan for your healthcare practice. All that you need is the willingness to put in time and effort. An ideal healthcare marketing plan should address every aspect related to promoting your practice, and to effectively plan, you must do some research.

Identify your target audience

The first step in any business plan is to figure out who is going to seek your service. If you have a specialty practice, you probably know the answer. According to industry experts, your marketing efforts will be effective only if they are targeted. So to identify your potential patients, start by defining the common characteristics of your current patients. Always remember, your marketing plan is all about reaching your target audience and adjusting your approach to fit their preferences. Beyond demographics, try to learn the reasons why your potential patients will come to your practice, know your competition and understand your competitors’ approach in reaching the target audience. Examine how your competitors market their practice and then compare their approach, services and marketing strategies with yours. You must also determine your unique selling proposition and understand what makes you different from your competition.

Marketing is all about keeping up-to-date. So make sure while doing your research, you stay updated on current affairs. The idea is to keep up-to-date with financial, political and marketing trends that influence the medical community so you can create an effective business plan that responds to changing market conditions.

Time for some brainstorming sessions

After you have identified your potential market and patients, you will need to categorize and address critical operational questions about your medical practice. You may need to set up brainstorming sessions with people you trust, including family, friends, team members or other professionals. During these sessions, try to find answers to these basic but critical questions:

Question: Which marketing platforms will make be most suitable for promoting your services?

Pro tip: You will need to think regarding how to present or sell your services. For instance, consider offering packages that are generic in nature and offer value for money.

Question: What is the best time and frequency of marketing your service?

Pro tip: Too much promotion can create a negative brand image in the minds of potential patients. Too much advertising tends to make patients suspicious. So depending on your target audience, determine the best time for promoting your practice.

Question: What are you trying to achieve from your business plan? How do you plan to measure these goals?

Pro tip: According to experts, your marketing plan should include basic tasks that have short-term goals so that you do not end up compromising on the patient experience. You can consider using big data to evaluate and measure results and their impact on ROI.

Penning the business plan

Now that you have completed the groundwork, it is time to put all your facts and figures into words. Here are some basic steps for creating a business plan for your medical practice:

• Define your mission and vision: This is where you need to determine your goals. You have to understand where you want your practice to be in five to seven years. You will need to prepare a list of all the marketing techniques and tactics and determine what options will work best for your practice. Some of the effective marketing tactics are networking, direct marketing, print advertising, training sessions, media, open houses, social media, blogs, third-party websites and much more.
• Identify your team: In order to build support and generate enthusiasm, you should determine the outgoing personalities in your organization. Find people who will help support your marketing efforts by hosting open houses, patient training sessions, interviews and other public relations initiatives.
• Market segmentation: Consider potential patients think outside the box. Look within your organization first – you may find some of your best customers and marketers there. You must understand where your patients come from and dive deeper into your business model. Is your practice mainly run by physician referrals, or do patients refer directly? You need to create an extensive list of potential patients and categorize them.
• Create patient personas: Patient personas are representations of your ideal patients. You must create patient personas based on your research and reflect on their needs and issues. For instance, if one of your buyer personas is a diabetic, his or her needs will be different from a flu patient.
• SWOT analysis: SWOT matrix is another important component of the business plan. You can use this analysis to assess your practice’s strengths, weaknesses, opportunities and threats. This study will help you understand your market situation better and discover growth opportunities. For a successful SWOT analysis , you must be specific, realistic, compare different situations and keep your business plans and goals updated.
• Prepare a budget: Now that you have all the market information you need and have established the best way to reach your potential patients, focus on your budget to support your marketing campaign. To begin with, it is advisable to stick with the 80/20 rule. According to this rule, 80 percent of your business volume will often come from 20 percent of your patients.
• Share your vision: The first step is to make sure the plan is received and understood by your organization’s leadership. Next, make sure your plan becomes a part of the organizational culture. You must encourage employees to come up with ideas that will support your idea. Always share your plans with physicians, volunteers, employees, board members and top leadership.
• Plan the rollout: To begin with, introduce your campaign internally. Your organization’s leadership and staff are often your best support. If they get the message, your marketing efforts will be successful.
• Measure and evaluate: You should regularly track new patients, physician referrals, leads, website hits and procedure volumes in order to assess the success of your business plan.

Don’t forget the 7Ps

Even the most insightful services, supported by the best business plan, will not survive on the market if they are unable to reach potential patients. That is why practices need to invest in strategies that will bridge the gap between them and the target audience. For your marketing initiatives to be successful, you must address the 7Ps in order to evaluate and measure your business activities. These seven Ps are product, price, promotion, place, packaging, positioning and people. These 7Ps will help you review and define key issues that impact your marketing activities.

• Product: When was the last time you took an unbiased look at your products, service, facility or value proposition? Do your products meet the needs of the patients? Do your products and services deliver value? Is your medical practice properly presented? The ‘product’ for your healthcare practice is the happiness and satisfaction of your patients, which is intangible and cannot be quantified. The only way is to know that customers receive value and comfort by way of your medical practice.
• People: Healthcare is all about people – your current patients, potential patients, staff and management – everyone delivers or receives a service plays a significant part in the product category. Your patients will evaluate the service and satisfaction based on assumptions and interactions. Usually, patients do not have much insight to your medical skills, but they will know if they are pleased based on how you deal with them. Your reputation and your image are not yours alone – it is teamwork.
• Price: It is the amount people pay in exchange for the product received. Therefore, the price must be competitive, enough to generate profit, but may vary when bundled with promotional offers. Sometimes, price is the biggest factor. Therefore, as a practice owner, you must take a serious look at those areas where there is flexibility and be open to adjusting and reducing prices to meet your patients’ needs.
• Promotion: This refers to all the direct and indirect ways of communicating about your product to your people or potential patients. This may include personal and mass interaction. In all instances, promotion should always be carried out in a professional manner. The objective of promoting your practice is to examine how, when, what and where you can offer your service to your target audience.
• Place: This points to presenting your products or services to your target audience in the right place and at the right time. Needless to say, the ‘place’ will be your office where the product will meet the user. However, in healthcare, a change in location can impact the user’s decision to buy.
• Packaging: Take an unbiased look at the appearance of your office, front office, waiting area, brochures and website and the appearance of your medical staff. You might be surprised to see what patients are observing when they walk through your front door.
• Positioning: This refers to the way your brand, products or service are perceived by your target customers. If you could get the opportunity to create the ideal impression in the minds of your patients, what would you want it to be?

For successfully growing their practice and attracting new patients, many practices are working with medical marketing agencies. As a medical marketing agency , Practice Builders knows what is suitable for different medical specialties. We can introduce you to the best marketing tactics that will draw new patients to your practice. Moreover, we know how to develop effective business plans that will lead to significant growth in your medical practice. To find out more, contact us today.

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Sharon Mason Parker

Sharon has spent 25 years building teams and developing people to work together to help improve the client experience in the markets we serve. This ultimately benefits both customers and staff equally. Sharing best practices and ideas helps clients and team members envision new alternatives, which is quite fulfilling when positive change results. Sharon enjoys working closely with clients to understand the true drivers that are affecting their business environment. By engaging clients in meaningful exploration of their goals and challenges, she often discovers that an issue they asked for help in solving is merely a symptom of something else or something greater. Solving the real issue through truly listening and not just addressing the symptoms helps create true partnerships with clients.

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Medical Practice Business Plan Template

Written by Dave Lavinsky

Medical Practice Business Plan

You’ve come to the right place to create your Medical Practice business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Medical Practices.

Medical Practice Business Plan Example

Below is a template to help you create each section of your Medical Practice business plan.

Executive Summary

Business overview.

Fresno Medical is a new medical practice located in Fresno, California. Our goal is to provide affordable healthcare to individuals and families living in the area and surrounding communities. We offer general and preventative healthcare for all ages, including checkups, screening tests, and immunizations.

Our medical practitioners and supporting staff are well-trained and have a passion for improving the health and well-being of our clients. We serve our patients not just with our knowledge and skills but also with our hearts. We aim to help our patients experience the best healthcare possible while maintaining relationships that last a lifetime.

Service Offering

Fresno Medical practice will focus on providing primary care services to every family member, from infants to adults. Some of the general and primary care services we provide include:

• Immunizations: flu shots, COVID boosters, measles, mumps, polio, etc.
• Annual checkups
• Pediatrics: checkups, developmental screening, immunizations, etc.
• Health screenings: blood pressure, cholesterol, depression, diabetes, etc.
• General health counseling

Fresno Medical will work with local and national insurance companies to ensure that every patient can afford our services. If the patient’s insurance does not cover all of their medical costs, Fresno Medical will provide payment plan options so that they are not overwhelmed by their medical bills.

Customer Focus

Fresno Medical will primarily serve the community of Fresno, California. The community consists primarily of middle to lower income residents who need access to affordable medical care. Many of these residents are hesitant to go to hospitals or other medical facilities due to their costs. We will offer lower prices, flexible payment plans, and flexibility when working with insurance companies to accommodate this demographic.

Management Team

Fresno Medical is owned and operated by Jessica Wells, who has been working as a doctor at local hospitals for 15 years. Throughout her career, she has worked for hundreds of patients and families with all their general and preventative care needs. Though she has never run a medical practice herself, she has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

Fresno Medical will also employ nurses, expert medical staff, and administrative assistants that are passionate about helping the local community.

Success Factors

Fresno Medical will be able to achieve success by offering the following competitive advantages:

• Location: Fresno Medical’s location is in a high-traffic area that is easily accessible to thousands of residents. It’s visible from the street with many people walking and driving to and from work on a daily basis.
• Patient-oriented service: Fresno Medical will have a staff that prioritizes the needs of the patients and educates them on the proper way to take care of themselves.
• Management: Jessica Wells has a genuine passion to help the community. Because of her previous experience and reputation in the medical community, she is fully equipped to open this practice.
• Relationships: Jessica Wells has developed strong connections with her patients and fellow staff throughout her career. Many patients have expressed interest in following Jessica to her new practice, and some former colleagues have shown interest in working for the clinic. Jessica also has relationships with medical equipment suppliers and insurance companies.

Financial Highlights

Fresno Medical is currently seeking $400,000 to launch. The capital will be used for funding capital expenditures, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Clinic design/build: $100,000
• Medical supplies and equipment: $130,000
• Three months of overhead expenses (payroll, rent, utilities): $100,000
• Marketing and advertising: $50,000
• Working capital: $20,000

The following graph below outlines the pro forma financial projections for Fresno Medical.

Company Overview

Who is fresno medical.

Fresno Medical is a medical practice located in Fresno, California. We offer general and preventative health care for all ages. We offer immunizations, pediatrics, health screenings, and more. Our medical practitioners and supporting staff are well-trained to improve the health and well-being of our patients.

Fresno Medical is run and owned by Jessica Wells, who has been a doctor in the local medical community for 15 years. She has helped hundreds of patients and families with their general healthcare needs throughout her career. She also has gained knowledge and experience in the operations and marketing aspects of the medical business, which will prove indispensable for this private practice.

Fresno Medical’s History

After years of working with patients in hospital settings, Jessica Wells decided to establish a private practice. She wanted to develop a closer relationship with her patients, which was difficult to achieve while working in a large hospital. With this goal in mind, Jessica incorporated Fresno Medical as an S-corporation on March 15th, 2023.

Since its incorporation, the medical practice has achieved the following milestones:

• Found a clinic space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired a contractor for the office build-out
• Determined equipment and fixture requirements
• Began recruiting key employees with previous healthcare experience
• Drafted marketing campaigns to promote the practice

Fresno Medical’s Services

Fresno Medical will focus on providing primary care services to every family member, from infants to adults. The costs will depend upon the materials used, the physician’s time, and the amount designated for each procedure. Some of the general and primary care services we provide include:

• Immunizations: flu shots, measles, mumps, polio, etc.

Fresno Medical will maintain privacy according to HIPAA regulations. All patients will be welcome, including those without insurance. However, we expect most patients to utilize their insurance plans to pay their costs. The medical practice will work with local and national insurance companies to ensure that every family can afford our services. After billing insurance, Fresno Medical will provide flexible payment plan options so that no patient is overwhelmed by their medical bills.

Industry Analysis

Healthcare is a human right that everyone deserves access to. The medical industry will always be a necessity as it is the industry keeping society alive and well. Therefore, the medical industry is expected to continue to grow as the population grows. This is especially true for private practices, as there is a rising demand for small, patient-focused clinics that provide top-tier medical services.

Furthermore, the demand for private physicians has been on the rise. Hospitals have been low on rooms and beds the past few years, and nurses and doctors have been overworked. This has led to an increased demand for more medical professionals and private practices that can help lessen the load of larger hospitals.

Moreover, the pandemic instilled the importance of quality healthcare and practices in the general population. We expect that people all around the world will now put in more effort towards taking care of their health and getting the care and screenings they need.

According to Facts & Factors, the global private medical market is expected to experience a compound annual growth rate (CAGR) of 12.5% over the next five years. This is enormous growth that is rarely seen in other industries. Furthermore, there is a growing demand for more primary care physicians as the general population aims to prevent developing chronic and preventable diseases. According to Grand View Research, the primary care market will experience a CAGR of 3.2% over the next 10 years, which is also moderate growth.

With such a demand for more medical practices and a greater emphasis on general health, we believe that Fresno Medical is starting at the right time and will see great success.

Customer Analysis

Demographic profile of target market.

Fresno Medical will serve the community residents of Fresno, California, and its surrounding areas. The community of Fresno, California has thousands of middle-class individuals and families seeking an affordable medical practice to take care of all their health concerns.

The demographics of Fresno, California are as follows:

Customer Segmentation

The company will primarily target the following customer segments:

• Middle-class individuals
• Hospital patients

Competitive Analysis

Direct and indirect competitors.

Fresno Medical will face competition from other companies with similar business profiles. A description of each competitor company is below.

City Metro Hospital

Founded in 1968, City Metro Hospital is one of the most popular hospitals in the area. Thousands of residents get all their primary care and emergency care needs taken care of with City Metro. It provides almost every service you can think of and enlists the help of thousands of doctors, nurses, and other expert medical professionals.

Though City Metro Hospital will continue to thrive, it does not foster an environment designed for long-lasting relationships. Since the pandemic, the hospital has been overwhelmed with patients and a staff shortage. This has led to doctors seeing thousands of patients and a tremendous increase in wait times. Fresno Medical will offer a more intimate setting where patients and doctors can create a long-lasting relationship that spans decades.

Quality Doctors

Quality Doctors is a private medical practice that provides highly personalized medical care. Quality Doctors includes a team of dedicated healthcare professionals with dual residency in emergency medicine and internal medicine. The practice offers same-day/next-day appointments, telemedicine, office visits, and home visits. Services offered by Quality Doctors include primary care, urgent care, and virtual visits.

Like City Metro Hospital, Quality Doctors is a large care system that cares for thousands of patients. This means that patients also do not get a close relationship with their doctor, which many crave. Furthermore, Quality Doctors has put much of its money and services toward emergency care in recent years and reduced its primary care services. Patients who want a lasting relationship with a primary care doctor will feel more welcome with Fresno Medical.

Johnson Community Care

Established in 1949, Johnson Community Care is a private medical practice with multiple locations. Patients all around the state can receive care at any location near them. Each site provides primary care services, emergency care, pharmacy services, and lab testing. Instead of heading to multiple locations to get all of these services, patients can get all their healthcare needs taken care of in one building.

Though Johnson is a highly successful medical practice, its major downfall is that it only provides services to those with its unique insurance plan. Therefore, anyone who has insurance through another company or plans provided by their employer cannot receive care at Johnson without paying out-of-network prices. Fresno Medical will partner with many insurance companies and provide flexible payment plans to help as many patients as possible.

Competitive Advantage

Fresno Medical enjoys several advantages over its competitors. These advantages include:

• Relationships: Jessica Wells has developed strong connections with her patients and fellow staff during her career. Many patients have expressed interest in following Jessica to her new practice, and some former colleagues have shown interest in working for the clinic. Jessica also has relationships with medical equipment suppliers and insurance companies.

Marketing Plan

Brand & value proposition.

The Fresno Medical brand will focus on the company’s unique value proposition:

• Client-focused healthcare services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-hospital expertise in a small-clinic environment
• Moderate pricing for all preventative and general health services

Promotions Strategy

The promotions strategy for Fresno Medical is as follows:

Fresno Medical understands that the best promotion comes from satisfied patients. The clinic will encourage its patients to refer their friends and family by providing healthcare benefits for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Social Media

We will maintain a social media presence to attract local clients looking for a new doctor or medical practice. We will post information about our team, services, and general health tips for better wellness. To create a genuine connection with our patients, we will also use social media to engage with them and answer any questions they may have about our practice.

Fresno Medical will have an informative and attractive website featuring all its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.  

Fresno Medical will invest in a high SEO presence so that the clinic is listed at the top of the Google or Bing search engine when a potential patient is researching private medical practices in Fresno, California.

Fresno Medical’s pricing will be significantly lower than big hospitals. We will partner with as many insurance companies as possible to ensure that our patients’ medical care is covered. For services not fully covered by insurance, we offer a flexible payment program so patients are not overwhelmed by their medical bills.

Operations Plan

The following will be the operations plan for Fresno Medical.

Operation Functions:

• Jessica Wells will operate as the CEO of Fresno Medical. She will run all the general operations and executive functions of the company. She will also provide basic medical care for patients until she can hire a full medical staff.
• Jessica is joined by Mindy Keller, who will serve as the Marketing Manager and run all of the marketing and advertising efforts.
• Jessica is also joined by Rhonda Smith, who will work as the Receptionist of the clinic and the Administrative Assistant for the company.
• Jessica is also joined by Cindy Nguyen who will be the company’s Head Nurse. She will manage and train incoming nurses and provide medical treatment to patients.
• Jessica will continue to hire a team of medical staff to treat the medical practice’s growing patient list. The team will consist of doctors, nurses, physicians, and other necessary medical staff.

Milestones:

Fresno Medical expects to achieve the following milestones in the following six months:

• 4/202X Finalize lease agreement
• 5/202X Design and build out Fresno Medical
• 6/202X Hire and train initial staff
• 7/202X Kickoff of promotional campaign
• 8/202X Launch Fresno Medical
• 9/202X Reach break-even

Fresno Medical is owned and operated by Jessica Wells, who has been working as a doctor at local hospitals for 15 years. Throughout her career, she has worked with hundreds of patients and families and taken care of all their general and preventative care needs. Though she has never run a private medical practice herself, she has worked in the industry long enough to gain an in-depth knowledge of the business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).

The medical practice will also employ nurses, expert medical staff, and administrative assistants that are passionate about helping the local community.

Financial Plan

Key revenue & costs.

The revenues for the medical practice will come from the fees it will charge the patients and their insurance for the health care services it provides.

The cost drivers for the company will include the payroll of the staff, lease on the office building, medical supplies and equipment, and marketing costs.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 4: 100
• Year 5: 125
• Annual lease costs: $40,000

Financial Projections

Income statement, balance sheet, cash flow statement, medical practice business plan faqs, what is a medical practice business plan.

A medical practice business plan is a plan to start and/or grow your medical practice business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Medical Practice business plan using our Medical Practice Business Plan Template here .

What are the Main Types of Medical Practices?

There are a number of different kinds of medical practices , some examples include: Group medical practice, Private medical practice, and Hospital-based medical practice.

How Do You Get Funding for Your Medical Practice Business Plan?

Medical Practice businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

A well-crafted medical practice business plan is key to securing any type of funding.

What are the Steps To Start a Medical Practice Business?

Starting a medical practice business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Medical Practice Business Plan - The first step in starting a business is to create a detailed medical practice business plan that outlines all aspects of the venture. This should include market research on the medical industry and potential target market size, information the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your medical practice business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your medical practice business is in compliance with local laws.

3. Register Your Medical Practice Business - Once you have chosen a legal structure, the next step is to register your medical practice business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your medical practice business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Medical Practice Equipment & Supplies - In order to start your medical practice business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your medical practice business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful medical practice business:

• How to Open a Medical Practice

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18 Health Care Business Ideas for Passionate Entrepreneurs

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

The health care sector is an amazing place for aspiring entrepreneurs to open up shop. Exploring health care business ideas is smart for lots of reasons.

There’s an opportunity to do a world of good by serving an aging American population and helping those struggling with the national drug crisis. There are lots of new medical and technological advances, and widespread interest in health and wellness, too. And those are all great incentives for passionate entrepreneurs.

Plus, these factors combined mean there's a thriving market for health-related businesses. Aspiring new business owners can turn one of many health care business ideas into a viable way to make a living, including those entrepreneurs who want to work remotely.

This list of health care business ideas should get you started — and maybe inspire you to explore starting a business.

Why businesses in health care are worth exploring

Nationwide spending on health is projected to grow at an average rate of 5.5% annually through 2026. That’s one percentage point faster than the national GDP is projected to grow during that same time. And by 2026, health care is projected to account for nearly 20% of the GDP.

Employment in health care-related occupations is projected to grow 18% from 2016 to 2026, much faster than the average for all occupations, according to the U.S. Bureau of Labor Statistics. Nearly half of the 20 occupations projected to have the highest percentage increase in employment by 2026 are in the health care industry.

What that spells is a lot of opportunity.

One big reason for the surge in health care spending: By 2030, the Census Bureau projects, approximately one-fifth of the population will be 65 and older. This will be the first time in history that the number of Americans over age 65 will surpass the number of Americans under 18.

Keep those numbers in mind as you look through this list of health care business ideas.

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Once we uncover your personalized matches, our team will consult you on the process moving forward.

18 health care business ideas to consider

1. medical transcription services.

Medical transcriptionists transcribe doctors’, nurses’ and other health care practitioners’ voice recordings into written documents for patients’ records. Speech recognition technology has definitely improved the efficiency of medical transcription, sure. But it certainly hasn’t yet replaced the need for human transcriptionists to review and correct the transcriptions to make sure they’re accurate.

This is a great business to run from home because you can make your own hours, and all of the work can be done digitally. Plus, if you’re digitally savvy and can create an efficient (and secure) way to share files, you can really one-up the competition.

2. Medical records management

Start a service that manages medical records for hospitals, clinics and doctors’ offices. You can work with clients to identify the best records management systems, implement them and provide their staff with training on how to use the systems.

Another approach? You can offer full-service medical records management, and clients can outsource the work to you. This can be helpful for boutique practices and sole practitioners who need the organization but can’t afford the in-house staff.

3. Physical/occupational therapy center

Physical therapists help patients recover from injuries to regain their full range of motion and reduce pain. Occupational therapists provide more specific therapy to help patients perform tasks of daily living, such as dressing themselves or feeding themselves. You can specialize in one or the other, or put both under one roof. Note that this does require certification.

4. Develop a health care app

Both health care providers and individuals alike are increasingly turning to mobile apps to track, record and manage medical conditions. The world is your oyster if you’re skilled in app development, so you might want to consider developing your own health care app targeting these markets. Do some field research to find out where your skills can fit a need.

5. Diabetic care center

According to the CDC, 9.4% of all Americans either have diabetes or are prediabetic . Opening a diabetic care center can help diabetic patients improve their quality of life by providing nutrition counseling, dialysis and other medical services. You can also provide preventive help such as teaching healthy eating habits or providing support groups for diabetics.

6. Home health care service

A home health care business provides in-home medical care for recently discharged hospital patients, patients with chronic health conditions, seniors and others who need assistance managing their health.

In states with rapidly aging populations, like Florida and California, not only could this be a benefit to the community — but also a strong business prospect for you.

7. Medical foot care

A growing population of seniors and diabetics means more need for foot care services. Something as simple as trimming toenails can be impossible for seniors and overweight patients who can’t reach their feet. You can either open a foot care clinic or save patients a trip to the podiatrist by providing mobile foot care services in their homes or in a van. You’ll need to train as a podiatrist or hire one.

8. Drug treatment/rehabilitation center

As drug use has escalated to become a national crisis in the United States, legitimate places for people to seek treatment for their addictions and rebuild their lives are needed more than ever. Every day, more than 115 Americans die after overdosing on opioids, according to the National Institute on Drug Abuse .

Open a drug treatment and rehabilitation center to help clients with drug addiction. You can specialize in different types of patients, such as juveniles or more senior patients.

9. Childbirth services

Today's expectant parents want to control every aspect of childbirth, and that often includes having a midwife or doula present at the birth. The use of midwives is increasing , according to the American College of Nurse-Midwives.

Midwives are trained health care providers who assist women during childbirth, while a doula is more like a pregnancy coach who helps couples arrange all aspects of the birth and caring for the newborn. You can either become certified yourself or open a business that employs contractors under your umbrella.

10. Medical billing service

Medical billing requires performing complex coding when submitting insurance claims. Keep in mind, certification is required in this field to ensure that doctors and other health care practitioners get paid.

Although big hospitals and health care organizations often have in-house staff, small medical practices that don’t have time to manage billing and coding themselves are an ideal market for medical billing services. Acquire and learn medical billing software, get trained in proper coding and target these smaller medical practices to take medical billing hassles off their hands. And you can even earn your certification online.

11. Nutritionist/dietitian

If you want to help people improve their nutritional intake and habits, you can build a business as a nutritionist or dietitian. Only nutritionists who get a license with the Commission on Dietetic Registration, or CDR, can advertise themselves as dietitians. Some states regulate nutritionists and others don’t.

You can specialize in different types of clients, such as sports nutrition, nutrition for weight loss or holistic nutrition.

12. Alternative health care

Acupuncture and massage therapy are two alternative health care business ideas that are becoming more popular. Many are using these services to supplement their traditional medical treatment — or as a primary treatment unto itself.

Check with your state to see what the requirements are to practice; they vary across the country. Even when health insurance plans don’t provide coverage, Americans are more willing to pay out-of-pocket for these types of care than they used to be.

13. Health information website

If you have health care expertise — or access to people who do — consider starting a website to provide health care information and advice. You can create all kinds of content, such as podcasts, YouTube videos and even online classes, in addition to blog posts.

You might even be able to get health care experts to contribute content for free in exchange for the publicity your site offers. There are a lot of options; just make certain that you do some market research to figure out the white space to fill, and find viable revenue streams to make your business highly sustainable, too.

14. Medical supply sales

Seniors, people with disabilities and those with chronic illnesses have an ongoing need for medical supplies and equipment. This can include walkers, braces, bedpans and more.

Although you can open a physical store, keep in mind that your target customers will often have difficulty getting to your location, so an online store is likely a better bet. Again, research here will be key so you can make sure that you’re stocking the right products and marketing in the right places.

15. Stylish uniforms for medical professionals

Medical professionals who wear scrubs to work are always looking for affordable and durable uniforms. They’re also looking for stylish options — and those aren’t as easy to find. Start a store selling scrubs, comfortable shoes, lab coats and other gear for health care professionals. You can design the goods yourself or source them from multiple places, and encourage your customers with word-of-mouth incentives to drive sales.

16. Hearing aid dispensary

Because hearing aids generally aren’t covered by health insurance, this can be a lucrative health care business idea if you find the right customer base. You might want to open a location to provide hearing tests, recommendations and hearing aid fittings and care. You could even outfit a mobile van to come to customers' homes to clean and repair their hearing aids as an extra service.

17. Respite care service for caregivers

Whether they’re parents caring for severely disabled children or adult children caring for aging parents, caregivers have a stressful job. Provide a much-needed break for caregivers by starting a respite care business. Your caregivers can come in for a few hours or a few days, giving family caregivers a chance to rest.

18. Medical marijuana dispensary

As a growing number of states legalize medical marijuana, this $8 billion industry is projected to continue its growth, according to IBISWorld . Opening a medical marijuana dispensary can be a profitable business in the right location; however, changing state and federal regulations could affect your startup. (Marijuana is still illegal under federal law.)

Frequently asked questions

How do i start a health care business.

When you start a health care business, it can be helpful to begin by writing a business plan, registering your business and hiring employees. While all businesses need to obtain any necessary licenses, permits and forms of insurance, health care businesses may require earning professional designations or taking out extra forms of insurance. Research what you need to run your business safely and legally before you launch.

How do I start a home health care business?

Starting a home health care business requires a high level of professionalism, even if you’re running a business where the bulk of the work will occur in your clients’ homes. For example, you may still need office space to train your employees. Like starting any business, it is important to write a business plan, register your business and create proper business procedures. You should also obtain any necessary licenses, permits and insurance for running a business in your area, as well as for working within the health care industry.

How do I write a business plan in health care?

In general, a business plan is an organizational tool that business owners can follow when they need guidance. This document can also tell outside parties, such as investors, about your business and its value. A good business plan should include thorough research about your industry, market and competitors, as well as dive into your financials, products and services and your marketing plan. When writing a business plan in health care, it will be important to do heavy research on the industry, as well as outline clearly what medical services or products you will be offering and why you or your staff are qualified to run a health care business safely.

Start Your Dream Business

The bottom line

There are a lot of potential great health care business ideas for entrepreneurs interested in the health care sector — and many opportunities for health care business ideas to become real, sustainable businesses.

Be sure to check regulations, licensing, professional training or degrees needed for these businesses before you get started, and do lots of market research. Don’t forget that “care” part, of course.

On a similar note...

Small Business Trends

How to create a business plan: examples & free template.

This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.

Executive Summary

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.

It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

• Introducing three new products within the first two years of operation.
• Achieving annual revenue growth of 30%.
• Expanding our customer base to over 10,000 clients by the end of the third year.

Company Description

The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.

Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).

Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.

This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.

Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.

Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.

Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

• Innovative and eco-friendly product offerings.
• Strong commitment to sustainability and environmental responsibility.
• Skilled and experienced team with expertise in technology and sustainability.

Weaknesses:

• Limited brand recognition compared to established competitors.
• Reliance on third-party manufacturers for product development.

Opportunities:

• Growing consumer interest in sustainable products.
• Partnerships with environmentally-focused organizations and influencers.
• Expansion into international markets.
• Intense competition from established technology companies.
• Regulatory changes could impact the sustainable technology market.

Competitive Analysis

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.

Example: Key competitors include:

GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.

EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.

By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.

Organization and Management Team

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.

Marketing and Sales Strategy

In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.

Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.

Logistics and Operations Plan

The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.

Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.

Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.

This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.

By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:

• Year 1: $1.5 million in revenue, with a net profit of $200,000.
• Year 2: $3 million in revenue, with a net profit of $500,000.
• Year 3: $4.5 million in revenue, with a net profit of $1 million.

These projections are based on realistic market analysis, growth rates, and product pricing.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.

Example: The income statement for EcoTech’s first year of operation is as follows:

• Revenue: $1,500,000
• Cost of Goods Sold: $800,000
• Gross Profit: $700,000
• Operating Expenses: $450,000
• Net Income: $250,000

This statement highlights our company’s profitability and overall financial health during the first year of operation.

Cash Flow Statement

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.

Example:  The cash flow statement for EcoTech’s first year of operation is as follows:

Operating Activities:

• Depreciation: $10,000
• Changes in Working Capital: -$50,000
• Net Cash from Operating Activities: $210,000

Investing Activities:

•  Capital Expenditures: -$100,000
• Net Cash from Investing Activities: -$100,000

Financing Activities:

• Proceeds from Loans: $150,000
• Loan Repayments: -$50,000
• Net Cash from Financing Activities: $100,000
• Net Increase in Cash: $210,000

This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.

Tips on Writing a Business Plan

1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.

2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.

6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.

7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

The template is divided into the following sections:

• Mission statement
• Business Overview
• Key products or services
• Target market
• Financial highlights
• Company goals
• Strategies to achieve goals
• Measurable, time-bound objectives
• Company History
• Mission and vision
• Unique selling proposition
• Demographics
• Psychographics
• Pain points
• Industry trends
• Customer needs
• Competitor strengths and weaknesses
• Opportunities
• Competitor products and services
• Market positioning
• Pricing strategies
• Organizational structure
• Key roles and responsibilities
• Management team backgrounds
• Product or service features
• Competitive advantages
• Marketing channels
• Advertising campaigns
• Promotional activities
• Sales strategies
• Supply chain management
• Inventory control
• Production processes
• Quality control measures
• Projected revenue
• Assumptions
• Cash inflows
• Cash outflows
• Net cash flow

What is a Business Plan?

A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.

Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.

A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.

Why You Should Write a Business Plan

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

• Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
• Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
• Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
• Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
• Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.

What are the Different Types of Business Plans?

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

• Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
• Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
• Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
• Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
• Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
• Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
• Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
• One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
• Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
• Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.

Using Business Plan Software

Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.

1. LivePlan

LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.

2. Upmetrics

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

5. Tarkenton GoSmallBiz

Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:

• It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
• It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
• It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
• It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
• It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
• It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
• It presents the company’s financial projections, showing its potential for profitability and return on investment.
• It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
• It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
• It establishes clear, measurable objectives that serve as performance benchmarks.
• It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
• It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
• It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
• It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.

Can I write a business plan by myself?

Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.

What is a business plan outline?

A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.

What are the 5 most common business plan mistakes?

The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.

What questions should be asked in a business plan?

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

What’s the difference between a business plan and a strategic plan?

A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.

How is business planning for a nonprofit different?

Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.

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Business | Providence warns patients of potential…

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• Investigative Reporting
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Business | Providence warns patients of potential disruption as Blue Shield negotiations drag on

The contract with the insurance provider expires june 1..

Providence and Blue Shield California, currently embroiled in a contractual spat over how much the insurance company covers patient care, have until June 1 to ink a new deal before the old contract expires.

The hospital system emailed its 110,000 patients earlier this week, warning that Blue Shield health insurance might flip to out of network with Providence hospitals, clinics and physicians.

“We are diligently working with Blue Shield to resolve this negotiation and that you can continue to see your Providence providers with no impact until June 1, 2024,” the email states.

Also see: Providence plans $712 million expansion with new Mission Hospital tower, 2 satellite health centers

Providence is urging Blue Shield policyholders to “talk to your human resources department, insurance broker or Blue Shield directly … to express your concerns and to find a way to stay with your doctor and Providence should we not reach an agreement.”

Such disputes during contract negotiations are common, though typically the rows don’t spill this deeply into the public eye, said Cynthia Saunders, a former assistant professor of health care administration at California State University, Long Beach. In late March, Blue Shield urged customers to look beyond Providence facilities for care.

“If I had a chronic health care condition or was in the middle of some bad health situation that needed constant medical care, I would be terrified. I might even have to consider moving to a place that has better access to medical care,” Saunders said.

Providence issued an offer to Blue Shield four weeks ago and hasn’t heard back since, said Laureen Driscoll, chief executive of Providence’s south division. The previous contract was signed before the pandemic, and Providence has operated in the negative for years, Driscoll said, without providing numbers on the past fiscal year’s margins.

“Providence wants to be able to provide our caregivers and our physicians living wages. And in order to do that, we need to be able to get paid the cost of care to provide services to patients,” Driscoll said. “From our standpoint, we’ve been negotiating in good faith, seeking reasonable terms to help cover those costs as the rising cost of care.”

Even if the deadline passes without a new contract, Blue Shield must cover emergency care, even if Providence facilities are out of network.

Driscoll said Providence would also provide financial assistance to help pay for out-of-pocket medical expenses.

Jonna Constantine, a Blue Shield of California spokesperson, said Providence’s demands would increase healthcare costs for patients and scuttle her organization’s attempts at affordability.

“We are disappointed that Providence has been unwilling to reach such an agreement with Blue Shield. Instead, they are attempting to negotiate in the media and using misleading information in the process regarding patient access to treatment. Our members are at the forefront of all decisions made by Blue Shield and the health plan’s goal is not to limit members’ access to care and treatment,” Constantine said via email.

In March, several Providence-affiliated physician groups in Southern California wrote in a letter that Blue Shield “continues to deny or delay coverage for necessary patient care at an alarming rate, with denials increasing by almost $250 million from 2019 to 2023.” According to Providence, the Blue Shield denial rate is up by 11.7% in 2024.

“As physicians, we cannot accept that our patients are often being denied treatment for essential care, including medications, therapies and procedures,” the letter stated.

Constantine added that Providence overstates the claim denial rate, writing that “the small number of claims for payment that the health plan has declined is almost always due to Providence’s errors, including not seeking authorizations appropriately, submitting duplicate claims, needing to provide additional information for processing, and submitting claims to the inaccurate party for payment.”

Medical debt is the largest reason for bankruptcy in the United States. In 2022, 92.1% of Americans had health insurance.

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Business | 63 Albertsons in California to be sold to C&S Wholesale if Kroger merger OK’d

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Kroger, Albertsons to sell 166 more stores with $25B merger in limbo

Kroger and albertsons plan to sell an additional 166 stores to c&s wholesale grocers ahead of their proposed $25b merger.

M&A adviser: Walmart poses an existential threat to grocery stores

Scott Moses defends Kroger Albertsons merger, claiming it would decrease grocery prices further on The Claman Countdown.

Kroger and Albertsons said Monday the two companies are increasing the number of grocery stores they sell to C&S Wholesale Grocers to address federal regulators' concerns about the impact of their proposed $25 billion merger on competition.

An additional 166 Kroger and Albertsons stores will be sold to C&S as part of an updated divestiture agreement between the three companies. The original divestiture plan included the sale of 413 stores, as well as eight distribution centers, two offices and five private label brands.

The new agreement will see C&S pay about $2.9 billion in cash for the stores — an increase from the $1.9 billion payout under the original divestiture plan. That acquisition would leave C&S with 579 stores plus access to the Albertsons Signature and O Organics private label brands.

"We have reached an agreement with C&S for an updated divestiture package that maintains Kroger's commitments to customers, associates and communities, addresses concerns raised by regulators, and will further ensure that C&S can successfully operate the divested stores as they are operated today," Kroger CEO Rodney McMullen said in a press release.

KROGER-ALBERTSONS MERGER: IS IT GOOD OR BAD FOR SHOPPERS?

Kroger and Albertsons plan to sell an additional 166 stores to C&S Wholesale Grocers ahead of their proposed merger. (Kroger: Charles Bertram/Lexington Herald-Leader/Tribune News Service via Getty Images | Albertsons: Shelby Tauber/Bloomberg via Getty Images / Getty Images)

"Importantly, the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages," McMullen added.

C&S Wholesale Grocers CEO Eric Winn said that the company is "confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come."

Winn added that C&S looks forward to "welcoming storied banners, quality private label brands, and a team of experienced retail associates into the C&S family. This amended agreement enables C&S's heritage of selection, value and customer service to continue our legacy of braggingly happy customers."

KROGER-ALBERTSONS MERGER IN JEOPARDY

Albertsons and Kroger plan to sell stores and other assets to C&S Wholesale Grocers to move forward with their merger. (Joe Raedle/Getty Images / Getty Images)

Kroger first announced its plan to buy Albertsons in October 2022, and the initial divestiture package was announced in September 2023.

The Federal Trade Commission (FTC) and eight states filed a lawsuit in February 2024 to block the proposed merger, arguing the deal would undermine competition in the grocery store market by raising prices for consumers, closing stores and resulting in job losses.

SOME DEMOCRATS IN CONGRESS CALL ON FTC TO BLOCK ALBERTSONS-KROGER MERGER

FTC Chairwoman Lina Khan and her agency have sued to block the Albertsons-Kroger merger. (Al Drago/Bloomberg via Getty Images / Getty Images)

A district court in Oregon will hold a hearing in August on the FTC's request for a preliminary injunction to block the deal.

Tom Geiger, spokesperson for UFCW 3000, which represents Kroger and Albertsons unionized employees in Washington, Oregon and Idaho, said that members are concerned that C&S might resort to selling the real estate of stores if it lacks the necessary IT infrastructure, customer loyalty and manufacturing capabilities.

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Reuters reported that legal advisers close to the transaction and divestiture plan said Kroger and Albertsons are trying to provide C&S with a business that it can run effectively by increasing distribution capacity that will create a density of local store networks to support its business.

Reuters contributed to this report.

• International

April 17, 2024 - Israel-Hamas war

By Kathleen Magramo, Antoinette Radford and Tori B. Powell, CNN

Our live coverage of Israel's war on Hamas in Gaza has moved  here .

Death toll from strike on central Gaza's Al-Maghazi refugee camp rises to 14, hospital officials say

From CNN's Jennifer Hauser

The death toll from an Israeli airstrike that targeted the Al-Maghazi refugee camp has risen to 14, including 8 children, according to Al-Aqsa hospital officials.

The airstrike hit the refugee camp in central Gaza on Tuesday, with initial reports saying 13 people — including seven children — were among those killed.

The Israeli military said the incident is under review.

Footage of the strike: Graphic video, obtained exclusively by CNN from eyewitness Nihad Owdetallah, showed several casualties scattered on the floor, including children, with blood streaming around the area.

In the video, dozens of people appear to be running around in panic, screaming and trying to count and carry the dead bodies. A foosball table covered in dust is seen among the dead bodies.

Footage shot for CNN from inside Al-Aqsa Martyrs Hospital showed a continuous flow of casualties and injured people being ushered in, as the emergency room is crowded with patients, including several wounded children, crying out on the floor. Family members were seen crowding over their loved one’s dead bodies, kissing them, holding onto them and sobbing.

Qatar will conduct a "comprehensive evaluation" of its mediation role in sensitive negotiations

From CNN’s Hamdi Alkhshali, Raja Razek and Larry Register in Atlanta

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani expressed concerns Wednesday over the current state of international mediation efforts led by Qatar to help reach an agreement on the release of hostages and a ceasefire between Israel and Hamas in Gaza.

Al Thani, who is also Qatar's foreign minister, criticized the misuse of Qatar's efforts for “narrow political” gains by some involved, undermining the broader goal of peace and humanitarian relief, “which required the State of Qatar to conduct a comprehensive evaluation.”

He emphasized the sensitivity of the ongoing talks and highlighted the challenges faced in bridging gaps between conflicting parties. He also pointed out the inconsistency between private assurances and public statements by involved parties, describing such actions as counterproductive. 

While the Qatari leaders did not point anyone out by name, the comments followed a statement by US Rep. Steny Hoyer on Monday that said if Qatar fails to apply pressure on Hamas to reach an agreement on a deal to release hostages and establish a temporary ceasefire, “the United States must reevaluate its relationship with Qatar.”

On Tuesday Qatar’s Embassy to the US in Washington issued a statement saying it was surprised by Hoyer’s remarks, adding that while the country shares the congressman's frustrations, it does not control Israel or Hamas.

It's past midnight in Gaza. Here's what you should know

From CNN staff

More than 13,800 children have been killed in the Gaza Strip since the start of the war on October 7, according to United Nations Children's Fund (UNICEF) Executive Director Catherine Russell.

Additionally, "one child is injured or dies every 10 minutes" in Gaza, according to the United Nations Entity for Gender Equality and the Empowerment of Women. The statement added that more than 10,000 women have been killed in Gaza since the war began, 6,000 of whom left 19,000 orphaned children behind.

CNN cannot independently verify death numbers due to lack of access to the strip.

Here are other headlines you should know:

• Fatal IDF operation: The Israeli military claims to have killed and arrested several militants during an operation in the civilian area of Beit Hanoun in the northeastern Gaza Strip. The Israel Defense Forces said it had raided a building complex that included two schools after receiving "intelligence that terrorists from the Hamas and Islamic Jihad terrorists organizations were located in the building and using civilians present there as human shields." CNN is not able to independently confirm the claims made by the IDF.
• Hezbollah targets: Israeli fighter jets struck alleged Hezbollah targets in southern Lebanon after 18  Israelis were injured  when the Iran-backed Lebanese militant group attacked a village in northern Israel. The IDF said three civilians were among the 18 people injured in the attack, the rest being soldiers.
• Response to Iran's attack: Israel’s Finance Minister Bezalel Smotrich said Israel’s response to Iran’s attack should inflict a “disproportionate toll” and “rock Tehran” to deter Iran from future strikes. Also, French President Emmanuel Macron called for widening sanctions against Iran that can also target industries supporting missiles and drones production.
• Aid to Gaza: The first shipment of aid to the Gaza Strip to be delivered into Ashdod Port was transferred to Gaza Wednesday, according to the Israeli military. The IDF said eight World Food Programme (WFP) trucks carrying flour entered via the Kerem Shalom Crossing after being inspected at Ashdod.

First aid shipment to Gaza through Ashdod Port enters the Gaza Strip

From CNN’s Benjamin Brown

The first shipment of aid to the Gaza Strip to be delivered into Ashdod Port was transferred to Gaza Wednesday, according to the Israeli military. 

The Israel Defense Forces said eight World Food Programme (WFP) trucks carrying flour entered via the Kerem Shalom Crossing after being inspected at Ashdod.

Israel earlier this month announced its decision to facilitate aid deliveries via the port.

At the time, US Secretary of State Antony Blinken welcomed the development but said the “real test” would be to see whether aid was “effectively reaching people who it needed throughout Gaza.”

CNN has reached out to the WFP for comment.

Israeli military says it killed and arrested militants during operation in northern Gaza

From CNN's Benjamin Brown

The Israeli military claims to have killed and arrested several militants during an operation in the civilian area of Beit Hanoun in the northeastern Gaza Strip.

The Israel Defense Forces said it had raided a building complex that included two schools after receiving "intelligence that terrorists from the Hamas and Islamic Jihad terrorists organizations were located in the building and using civilians present there as human shields."

CNN is not able to independently confirm the claims made by the IDF.

The IDF said it told civilians to leave the building before entering during its joint operation with the Israel Security Agency, Israel's domestic security agency, also known as Shin Bet or Shabak.

What Gazans told CNN: People living in the area said Israeli military vehicles began an operation there on Monday afternoon, firing shots and rounds of artillery shelling. Local residents said that Israeli forces had surrounded three schools early Tuesday morning, including one where hundreds of people had been sheltering. They ordered people to leave the schools and detained dozens of men, including some elderly people and teenagers over the age of 15, according to residents. An elderly woman who had been sheltering in one of the schools said Israeli soldiers came in the middle of the night and arrested several men and women.

Nearly 14,000 children killed in Gaza since war began, according to UNICEF

From CNN's Hande Atay Alam

More than 13,800 children have been killed in Gaza Strip since the start of the war on October 7, according to United Nations Children's Fund (UNICEF) Executive Director Catherine Russell.

"Thousands have been injured and thousands more are on the brink of famine," she said during a news conference in New York, according to a statement from her organization.

In a separate statement, the United Nations Entity for Gender Equality and the Empowerment of Women said that "one child is injured or dies every 10 minutes" in Gaza. The statement added that more than 10,000 women have been killed in Gaza since the war began, and 6,000 of them left 19,000 orphaned children behind.

UNICEF communication specialist Tess Ingram, who recently visited Gaza, said during a news conference in Geneva on Tuesday that what struck her was the number of wounded children she saw.

"Not just in the hospitals, but on the streets, in their makeshift shelters, going about their now permanently altered lives," she said.

German airline says it will avoid Iranian airspace following weekend attacks on Israel

Germany’s Lufthansa airline has announced it will extend its suspension of flights to the capitals of Iran and Lebanon due to the security situation in the region.

Flights to Tehran and Beirut will remain canceled up to and including April 30, Lufthansa said in a statement Wednesday. The airline also said it would continue not to use Iranian airspace until the end of the month.

“The Lufthansa Group is continuously monitoring and assessing the security situation in the Middle East and is in close contact with the authorities,” the airline said.

Lufthansa first suspended flights to the Iranian capital of Tehran last week and had already once extended its suspension.

French president calls for widening sanctions against Iran

From CNN’s Joseph Ataman

French President Emmanuel Macron called for widening sanctions against Iran that can also target industries supporting missiles and drones production.

“Our duty is to broaden these sanctions,” he said Wednesday while in Brussels for a meeting between European leaders.

His comments comes after more than 300 projectiles – including around 170 drones and over 120 ballistic missiles – were fired toward Israel in a retaliatory aerial attack by Iran on Saturday.

Iranian drones have been widely used in other conflicts, including by Russia against Ukrainian infrastructure targets.

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