Start Writing Your Medical Billing Business Plan Once you get your degree in medical billing, perhaps you plan to start your own business and work from home. While this prospect is certainly appealing, you probably have some questions about how to get started. A business plan helps you to address all the essential aspects of starting a business, while steering your venture in the right direction. Even more important, a business plan is required for loan applications and informs potential clients about the overall setup and objectives of your medical billing home business. Here is a detailed guide for developing your business plan:  What to Include in Your Business Plan Your medical billing business plan should begin with a cover sheet and statement of purpose. After that, many business plans are commonly separated into three sections: business aspects, financial data and supporting documents. Read on for tips about what to include in each section: 1. Business Aspects In this section, include a general description of your business, the type of service your business provides and the needs that it fulfills. Name the potential customers for your medical billing business, such as local physicians and their short-staffed medical offices. Explain why they'll require your services and how you plan on marketing your business to them. Be sure to conduct some research about your competition, and make note of your strengths. If you already have practical experience in a medical office or you have a degree in medical billing, mention it. List all of your relevant experience along with your strategies for dealing with competition. You'll also want to describe your day-to-day operating procedures. Explain here that you'll be running your medical billing business from home and what your operating hours will be. Also make note of any personnel you may plan on hiring as well as your plans for insuring your business. 2. Financial Data Where will you get the funds to start your medical billing business? Right now, this is probably the most important question for you to tackle. In the financial data section of your business plan, you will want to include copies of any loan applications you've filled out for your business. You'll also need to pinpoint your startup costs, which will depend on the medical billing software you use and the amount of marketing you do—on top of your basic office supply and computer equipment costs, as well as miscellaneous fees. While you're researching your competition, you'll want to make note of how much they charge for their services. Many physicians prefer to pay a percentage of the fees that medical billing specialists collect, paying an average rate between five and eight percent of the total amount accumulated. In this section, indicate the rate that will allow you to maintain a successful business and give you an edge on your competition. In the financial section, it's also important to include a breakeven analysis, which determines the gross sales volume you need to achieve before you can break even, and a balance sheet, which predicts how you'll manage your assets in the future. You will also need to predict your profits, losses and cash flows with pro forma statements and a three-year summary, detailed by month for the first year and by quarters for the second and third years. 3. Supporting Documents Completing the last section of your medical billing business plan should be relatively straightforward. You will need to include the following documents: - Your tax returns for the last three years
- Your personal financial statement (your bank should have this form)
- Your résumé
- Proof of your medical billing certificate or degree
- Copies of your business license and other legal documents
Investing Time in Your Medical Billing Business Plan Pays Off A comprehensive plan is absolutely essential for any successful business. Spending the time to thoughtfully prepare your business plan is important, not only for the initial funding of your business, but also for the achievement and protection of your future goals in the medical billing industry. |
