3 Must-Haves for Making a Medical Billing Business Plan

Learn how to write a business plan that will help your home business succeed.

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

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
  • Assessment of your startup costs
  • Basic office supply and computer equipment costs
  • The medical billing software you use and the amount of marketing you do
  • 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. In this section, indicate the rate that will allow you to maintain a successful business yet 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