ClaimTek - Medical Billing

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Business Planning

Creating a Medical Billing Business Plan

Medical Billing Business Income Potential

Projecting income when you start a new business is a critical step of business planning. In fact, ClaimTek recommends that you write a detailed business plan that includes the following sections and sub-sections:

  • Executive Summary
  • Company Presentation
  • Competitive Analysis
    • Major competitors and competitive positioning
  • Market Analysis
    • Market barriers
    • Market demand
    • Marketing plans (advertising, public relations, direct selling)
  • Income Analysis
    • Budget projections

Your business plan can be written in a formal or informal style; that's up to you. But whichever method you choose, crafting a well-conceived business plan is a critical step in helping you get your business off to a solid beginning. Two issues are particularly important in writing your business plan:

Mission Statement. Your company's mission statement is a short statement that explains what you believe is the heart of your business. It expresses what you want your customers to think about you, such as "To be a dedicated service-oriented company that guarantees the satisfaction of clients through attention to detail and timeliness on electronic claims and full practice management services.

Budget Projections: It is most helpful to do a one-year income projection on a month-by-month basis. In the first few months, it is best to estimate realistically how much your startup expenses will be and allow for a period in which you may have no clients or perhaps only one or two. Then project your income over the next few months according to the assumptions you would like to make for adding more clients to your roster.

For more details on writing a professional business plan for your startup medical billing service, you may visit www.bplan.com. Search for "Medical Billing Business Plan" or simply click here. The well-known software product called "Business Plan PRO" by Palo Alto Software, Inc. incorporates guidelines for writing a professional medical billing business plan. The plan was actually written for Palo Alto Software by the owner of a ClaimTek medical billing center, Physician's 1st Billing & Claims.