Where do you start when you’re interested in starting your own Medical or Allied Health practice? What information do you need, and what initial decisions do you need to make?
After working with many clients looking to transition from healthcare employee or associate to practice owner, we’ve put together some points to help you kick things off. They’ll help no matter your stage and set you up to successfully take the next steps.
Start with the “Why”, and from there, start building a picture of the “What”
Initially, you’ll need to figure out why you want to start your own healthcare business. You’ve probably had the idea kicking around for a while, but clearly identifying your motivations is really important!
Maybe it’s driven by things like:
It’s the next step you want to take in your career.
Dissatisfaction with the existing practice/s with which you’re working. Perhaps with how they’re run, concerns about customer service, your remuneration arrangement, etc.
A belief that you can earn more money in your own practice.
A desire to develop a different service offering or arrangement from those currently available.
Wanting to be ‘master of your destiny’ and have control over the practice direction and decision making.
There will be others, and often we find it’s a combination of factors. Pinpointing these and uncovering your real drivers is essential, as once you’ve worked through the reasons why, you have the initial foundations for what your ideal practice would look like. We’re not talking about just the physical set-up but the service offering, culture, team composition, etc. But more on that below.
Some of the options
Getting into your own practice isn’t a one-size-fits-all arrangement. There are options to consider, including:
Buying into an established practice.
Buying an established practice outright.
Starting a new practice – on your own or with others.
Which of the above is most appropriate for you will be influenced by your “why” and ideal “what”, as well as other factors like your financial situation, demand and supply for services in the physical and clinical areas you’re considering, etc. You’ve probably got a pretty good idea of which direction you’d like to go.
Do your homework and build on the “What”
There are many avenues for you to gain knowledge and information to help determine your practice composition:
Talk to your existing patients and clients. What do they want from the healthcare services they use? What’s a priority for them?
Talk to peers about their experiences working in and owning practices. Perhaps get yourself a mentor or two. It’s a different perspective as an employee or associate than an owner/director. Gaining these insights is invaluable.
Research similar types of practices and business models. Websites and LinkedIn can provide some valuable insights.
Investigate the market. Are there gaps or areas of need where you could establish your niche offering and differentiate yourself from the competition?
Gather information from professionals, such as accountants, lawyers and business consultants.
Start developing your business plan and budget. This process will highlight the areas or items for which you need more information, plus a solid understanding of the investment required is key.
With all this information, you’ll have generated a clear picture of your ideal practice. Be sure to consider it from all viewpoints – business owner, practitioner, admin team member, patient/client and the clinical and social communities you will work within.
You’re probably feeling pretty excited by this point and keen to move forward – great!
Recognise your skills and where you’ll need assistance
To power your project forward, it will help you recognise what you’re good at and what other skills are required to complement you and then fill the gaps.
What’s needed from others will depend on your training, experience, and the knowledge you’ve accumulated so far. It will also be impacted by how much time you can dedicate to getting things done. Being honest with yourself at this point will save you a lot of time and frustration (and likely money) down the track.
How do you find the right people/organisations to fill the gaps? Having determined what you need, we suggest you:
Ask around for word-of-mouth referrals.
Research, focusing on quality and relevant skills, plus a proven track record. Their website and other information provide a start. Getting in touch and asking direct questions will help establish whether they fit your needs.
Confirm that providers you’re considering understand your business’s “why” and “what”, etc, and are not looking to apply a cookie-cutter approach. Also, are they genuinely interested in you and the business you’re looking to create?
Get references. Even a potential service provider’s response to such a request and ability to readily supply relevant references says a lot about the calibre of their services and relationships with clients.
Lastly, even in the early stages, set aside time each week to nurture and build on your dream and the next actions needed. It’s incredible how much progress you’ll make without even realising it, and bit by bit, you’ll progress toward this dream becoming a reality.
If you’d like information about our Practice Start-up Projects, check out our website or book a free initial consultation with one of our senior business consultants.
The Augmentum team provides a broad range of consultancy and management services, supporting healthcare business owners and decision-makers in many key areas, such as strategy development and action planning, building effective foundations and teams, keeping your finger on the pulse, and driving growth and success.
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