For many of us working in healthcare, starting a private practice is the ultimate goal. As you spend years studying and working under grueling conditions as a young professional, being your own boss someday is the light at the end of the tunnel that keeps you going.
With your private practice finally being an achievable goal, you can’t help but feel excited. You will not be able to choose your working hours and clients and also have the freedom to use your preferred methods.
However, before you start working on making this dream into reality, there are certain things you must consider beforehand to begin this new chapter of your life the right way. Here are five things you need to know before starting your private practice.
1) You Must Have a Business Plan
They say failure to plan is a plan to fail. This applies to every important thing in life, from making a study plan for your exams to developing a business plan for your private practice. A business plan is a roadmap for new business owners. A comprehensive business plan includes your mission, values, ethos, long and short-term goals, a 5-year budget and expansion plan, and a marketing strategy.
For new business owners, there are many obstacles waiting on the path to establishing themselves. This is especially true for professionals starting a private practice as they don’t have any business experience unless they studied business or entrepreneurship as an undergraduate. However, the chances of that are slim as most aspiring professionals today opt for pre professional programs as a major. With a business plan to turn to, you can stay organized and clear about your vision.
2) You Must Have Capital and Cushion
Starting any business requires money. Starting a private practice requires a lot more of it. If you’re looking to start your private practice, it’s safe to assume you have saved enough money to fulfill your capital requirements. This includes the initial investment, as well as a reasonable amount to help you survive until the business gets on its feet. While this is a great starting point, people often forget to set up a cushion fund.
A cushion fund is money set aside that you can fall back on in case your practice does not take off as planned. There may be any number of reasons for this, such as unstable market conditions or a weak marketing strategy. However, many of these factors can be overcome with time and persistence. With a cushion fund sustaining your business for an additional few months, you can dedicate that time and effort to making your practice a success rather than closing up shop and letting all your hard work go to waste.
3) You Must Have a Budget
Many promising businesses fail due to one factor: i.e. inability to conform to a budget. Developing a budget requires great insight, while sticking to a budget requires great discipline. Both of these are essential qualities for a business owner. Before starting, you must make a budget highlighting all foreseeable and certain unforeseeable expenses. By planning for the worst, you can avoid being caught off guard in case things go wrong.
Once you have made a budget, you must adhere to it. It is easy to lose sight of the end goal and overspend on non-essentials every now and then. However, once you start to take out from the budget this way, it slowly becomes a habit, and before you know it, your finances are all over the place. Hence, if you want your private practice to succeed, you must stick to your budget with discipline and consistency.
4) You Must Have a Marketing Strategy
An effective marketing strategy is one of the biggest contributory factors to the success of any business. While marketing is usually included in a business plan, it is essential to separately develop a comprehensive strategy aimed at establishing your brand. Today, the business sector is extremely competitive; this includes private practices. Every business today must work hard to stand out against a sea of its competitors.
For customers and clients today, there is no shortage of options. Unless you join the race, there is little chance of success for your venture. Start by using a mix of traditional as well as modern marketing techniques. Spread the word of your private practice in your circle and among old clients. However, to gain new clients, use social media marketing to establish your brand online and get the attention of those looking for services similar to yours.
5) You Must Have your Legal Bases Covered
The abundance of legal minutia that comes with setting up a private practice is enough to overwhelm even the best of us. However, it is essential to cover all your legal bases before starting. Starting from the beginning, you must set up a legal business and register it under your structure of choice, such as a professional LLC. After that, you must check your state requirements and obtain the necessary licenses for your specific practice category.
We’d like to tell you that that’s all there is. However, this is just the tip of the iceberg. After registration and licensing, you must look into registering your business as a taxpayer with the IRS, obtaining the necessary insurance coverage for your practice, and so much more. If you have the slightest inkling that this might be too big a task, we recommend hiring an attorney to help you. It might be expensive, but at least you’ll be starting with all your legal requirements sorted.
Conclusion
Starting a private practice is a major life decision, and regardless of how well you prepare, the initial few months or years will be extremely tough on you. Knowing the above things will help, but you will still encounter new challenges every day that will make you feel like you are in over your head. At the same time, you will see your former colleagues and classmates enjoying the benefits of a salaried job.
All this can be enough to make a person want to give up. However, you must remember your end goal and keep striving towards it. Remember, there is no timeline for success. Even if you start slow, your hard work and persistence will pay off in the end, and before you know it, you’ll look back at the obstacles you faced and smile.
