Whether you’re fresh out of medical school or you’ve been in the field for many years, starting your own medical practice can be overwhelming. No matter how much experience you have as a doctor, starting your own practice will be something totally new. If you’ve weighed the pros and cons and have decided that starting your own business is what you want, then it’s time to start making a business plan. There is a lot that you need to prepare before you can start treating patients and making money.
Make Sure You Have All the Credentials and Licensing That You Need
In order to accept insurance from your patients or the government, you will need to go through a credentialing process. You will need to show insurers that you have a medical license and you may need to present malpractice insurance as well. The process can take several months to complete. The necessary requirements may be different depending on where you live and what type of medical practice you are starting, so you should be sure to do the proper research to find out exactly what you need. Some necessary items include a DEA number for prescribing medication, state licensing and a national provider identifier number.
Figure Out Funding
For any business, funding is an important part of the business plan. You will need to figure out how much money it will require to start your business and where you will be able to get it. Many people starting their own business are able to take out a small-business loan. When you are deciding on how much money you need to borrow, you should take into account the obvious items such as medical equipment and real estate as well as smaller necessary items like medical supplies, furniture and computers.
Choose Which Business Structure is Right For You
There are multiple types of businesses, so before you begin, you need to choose which one you will use for your practice. When starting a medical practice, many people choose to use an S Corporation structure as opposed to a C Corporation structure. With an S Corporation, you will only need to pay taxes on your personal income while, with a C Corporation, you will be taxed as a business as well. It can be helpful to hire a professional attorney to assist you with this step.
Starting your own business is never an easy task, but a detailed and well-researched business plan can help make things a little less difficult.