Opening a therapy business can signal the start of an exciting chapter in your professional life. But, as an entrepreneur, you’ll need to handle various moving pieces of the business and ensure that finances are always under control. In this article by ARC Seminars, we’ll explore all the steps you should take to get your therapy business up and running.
1. Create a Business Plan
The best way to get off on the right foot will be to create a business plan which will provide some much-needed structureto your business. Here are the following aspects to include in the plan:
- Information regarding the type of mental health practice you’ll run which can include a specialized clinic, generic out-patient services, etc.
- Research your target customers, their pain points, purchasing behaviors, and more relevant information.
- The cost of buying property, equipment, labor, and the expected revenue predictions for at least the first five years.
2. Seek Required Funding
Those planning to practice from a physical location should start their property search early and meet with lenders to discuss the probable financing options. TMC Financing explains that one of the key factors will be a good down paymentwhich can range between 25-30%, along with a strong credit score.
Your business plan will play a key role when negotiating with lenders, hence, ensure all calculations are accurate and achievable. A well-written business plan will significantly increase your chances of getting approved.
Another way to fund the business is to enter into a partnership with fellow professionals to split the costs and gain leverage to seek better interest and repayment terms.
3. Invest in Digital Solutions
While reporting requirements vary by state, as a medical establishment, you’ll need to adhere to local and federal level guidelines to remain compliant at all times and avoid fines. To achieve this, consider investing in the following types of software:
- Electronic Health Record Systems: as reported by HealthIT.gov, EHRs are all-inclusive software that provides the functionality of safely storing patient records. Additionally, it makes it easy for the business to retrieve records during appointments and update them in real-time.
- Billing Software: Billing software will leverage the power of automation to share prompt invoices to patients or their insurance providers, resulting in positive cash flow for the business. Additionally, this will help to accurately calculate monthly revenue expectations.
- PDF Editing Software: if you plan to send any confidential information through email or other digital channels, you must be able to encrypt it for the patient’s safety. PDFs are the most easily encrypted, which means you can add a password to the file before sending it. The recipient can then use editing software to make changes or add comments to the file before returning it to you or to their other specialists. This may help them to get the support they need faster without compromising their confidentiality.
4. Hire Help
Trying to run the business as a one-person show will be unfeasible, hence make room in your budget to hire the following professionals:
- Administrative Assistants: look for admin assistants with experience in healthcare who understand the importance of confidentiality and know the best practices to manage patient records.
- Medical Assistants: depending on your specialization, hire medical assistants who can help with prepping procedures, sterilizing equipment, and conducting tests.
If you find there are rehabilitation-specific areas in which you would like additional training in order to be more confident, schedule a class with ARC Seminars. Or you can encourage your nursing staff to attend one of their nursing courses for additional training.
5. Establish a Limited Liability Company
Registering your practice as a limited liability company will provide some much-needed protection from business-related liabilities. This is because an LLC is considered a separate legal entity from the owner. Hence, in case of a lawsuit, your personal assets or finances will be protected from all claims. For added protection, consider purchasing liability insurance, as it will help pay for the cost of hiring attorneys, court filings, and other related expenses.
If your business is a partnership, you can opt to register it as a limited liability partnership which provides similar benefits.
Keep Your Finances Under Control
Starting your own medical practice or business can be very exciting, but it’s important to stay on top of your finances as you proceed. Keeping these tips in mind will help you keep a strong hold on finances at all times and ensure the long-term survival of your practice. Don’t shy away from taking help when needed, whether it be working with a financial advisor or hiring talented staff.