Starting a new medical practice is a major step in your career – but one that gives you control over your reputation and career trajectory. Done right, it can set you up for success from now all the way through to your succession plan. Here are the basic steps to follow when launching a new medical practice.
1. Develop a Business Plan
Where there’s a plan, there’s a way. Having a business plan not only makes it more likely that you’ll launch your medical practice – but also makes it more than twice as likely that you’ll succeed in business. A business plan is the outline for your practice over the next 3-5 years and gives you a roadmap for how you will grow your business and make it profitable. Critically, it’s also a vital piece of the puzzle when obtaining financing for your business. When creating a business plan, ensure that it includes an overview of your objectives, budgetary estimations, unique niche in the market, and near-term growth plans.
2. Seek Funding
Securing financing is a critical step in opening your medical practice. Some practice owners may self-fund or seek funding through friends or family, but most will take out a bank or credit union loan. Use your business plan to identify your credit needs, then take your loan request to various banks and lenders to obtain the best possible lending terms. If you have medical school debt, consider talking to a financial planner about reducing your uncertainty as a borrower in the eyes of lenders.
3. Get Your Paperwork in Order
Before you can open your practice, you’ll need to prepare the appropriate paperwork and licensing. This includes incorporating as a legal entity, taking out various insurance policies, applying for state licensing, registering with the DEA, and other relevant clinical licensing applications. If you’re unsure where to begin, obtain legal and accounting advice from a certified professional and talk to your local chamber of commerce to ensure you’ve covered everything.
4. Identify the Right Location
Location is everything. When considering your new practice, research potential locations based on local demographics, demand, accessibility, competition, mutual referral networks, and hiring availability. Once you’ve identified a viable area, partner with a medical realty expert, such as the team at GZ, to narrow down your search to the spaces that are the right fit for your brand. A medical realty expert can connect you with a right-fit space and can also help you negotiate a lease with favorable terms.
5. Begin Outfitting Your Space
Taking a medical space from idea to implementation can take some time – especially if you’re moving into a space not previously used for healthcare purposes. You’ll need to invest in infrastructure, equipment, signage, and interior design; now is also the time to consider the electronic health records (EHR) and practice management software that you’ll be working with. Don’t be that practice that continues to work with paper records! Ideally, your landlord will work with you to cover some of your buildout and signage and review your lease to understand the extent of their obligations. If you are looking to negotiate your new lease, partnering with a medical real estate expert is also a great idea.
6. Get the Word Out
Your marketing efforts should begin before you open your doors. Create a website, claim your Google My Business record, launch your social accounts and digital ad campaigns, and start building your presence in the local community. You’ll also want to start recruiting staff for your practice – but before you do, ensure that you have your office policies and procedures outlined and documented. Be aware that your policies may need to evolve as your practice grows. By building your presence well before you officially launch, you’ll be able to hit the ground running.
Looking for that Ideal Space? Talk to GZ.
If you’ve fleshed out your business plan and are ready to look for your ideal medical practice space, talk to the team at Gittleson Zuppas Medical Realty. We’re here to help take motivated medical professionals from first steps to unrivaled success, whether you’re opening your first practice, expanding, or moving. The right space can make or break your bottom line, so to ensure that you get your location – and lease – just right, get in touch today!