Tips for Making Your Medical Billing Business Plan
Learn how to write your medical billing business plan.
Start Writing Your Business Plan
Once you get your degree in medical billing, perhaps you plan to start your own business and work from home.
While this sounds 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 Medical Billing 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:
1. Business Aspects
Include the following in this section:
- General description of your business
- Type of service your business provides and the needs that it fulfills
- Potential customers for your medical billing business, such as local physicians and their short-staffed medical offices
- Why they'll require your services
- How you plan on marketing your business
- Your strengths as opposed to your competition
- Any practical experience in a medical office or note if you have a degree in medical billing
- Your day-to-day operating procedures, including operating hours
- Any personnel you may plan on hiring
- What are your plans for insuring your business
2. Financial Data
Where will you get the funds to start your medical billing business? In the financial data section of your business plan, you will want to include the following:
- Copies of any loan applications you've filled out for your business
- Pinpoint your startup costs
- Basic office supply and computer equipment costs
- The medical billing software you use and the amount of marketing you do
- Any miscellaneous fees
- A break-even analysis, which determines the gross sales volume you need to achieve before you can break even
- A balance sheet, which predicts how you'll manage your assets in the future
- 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
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.
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
Education Guide
Medical Billing and Coding Training
What to expect in medical billing and coding school.
Student Interview
The inside scoop on medical coding school.
Choosing a Degree
Tips for choosing the right program.
Course Info
Information on common medical billing courses.
Online Courses
The advantages of learning online.
Scholarships and Financial Aid
Financial aid and scholarship info.
Accreditation
Why accreditation is important.
Career Guide
Career Description
All about medical billing and coding jobs.
Specialist Interview
Insider's view of a medical coding career.
Certification
Types of medical billing certification.
Salary Information
Salary info for medical billing professionals.
Medical Billing Companies vs. Self-Employment
Compare working at medical billing companies to self-employment.
Writing a Résumé
Tips for perfecting your resume.
Updating the Medical Billing System
Learn about new developments in the medical billing system.
Is an At-Home Business for You?
Tips for starting your at-home business.
Write a Business Plan
What to include in your medical billing business plan.
Medical Billing and Coding Software
How to avoid software scams.
CPT Codes
Familiarize yourself with industry codes.
Professional Terms Glossary
Guide to medical billing terms.