11 Jul Top 4 Mistakes to Avoid When Starting a Medical Practice
Starting a medical practice is a noble and rewarding accomplishment – as long as it’s done right. The venture allows a medical professional to influence the delivery of healthcare services. But just like any other business startup, starting a medical practice is fraught with pitfalls. With this in mind, we have developed a guide on some of the common and key business/managerial challenges that doctors encounter – to help you build a thriving medical practice.
Lack of Adequate Preparation and Due Diligence
As much as you might be eager to hit the ground running, starting a medical practice is not a straightforward venture. You must learn to be patient, disciplined, and strategic. Conducting due diligence and planning early allows you to develop a comprehensive business strategy that includes medical practice financing and other business loan solutions. You can then evaluate each aspect of the medical practice thoroughly. What are the opportunities? Are there significant shortcomings? What about stakeholders? Are administrative processes such as licensing in order?
“By failing to prepare, you are preparing to fail.”
― Benjamin Franklin, American Founding Father
Medical Practice Financing – Failure to Explore all Applicable Loans
Most businesses, including medical practices, need a reliable lender to fund their medical practice loan. Lack of a proper financing structure is one of the main reasons for medical practice failure. But it’s not just about finding any lender and applying for any type of medical practice loan – you need a lending partner whose goals and values align with your soon-to-be established medical practice.
Ensure that the lender for your medical practice loan is accessible, transparent, consumer-focused, and the medical practice loan terms (interest rates, loanable amounts, repayment period, etc.) are easy to understand. Lenders such as Ameritech and Associates provide medical professionals with different medical practice loan options such as an SBA 7 (a) loan, term loans, merchant cash advance, and business line of credit.
Settling for any Location
The location you chose to set up your medical practice is a make or break decision! Is the office space in a high-traffic area? Is it visible? Is the location accessible? If your answer is no to any of these questions, you need to go back to the drawing board and re-evaluate your options.
The healthcare industry is increasingly competitive, and a strategic location is one of the key steps in staying on top of the competition. In addition to the external factors, you need to evaluate yourself. How much are you willing and able to spend? What are the specific requirements of your medical practice (e.g. equipment and technology)?
The Wrong Crowd – Don’t Hesitate to Fire Incompetent Staff
Regardless of the size of your medical practice, you need staff to get things moving – starting a medical practice is not a lone-wolf activity. You need people to support activities such as finance, reception, office management, and other roles. While hiring medical staff, always remember that you’re only as good as your team! Find employees that share your vision and are motivated to achieve the common goal. And if someone does not end up living up to their promise by displaying gross misconduct or lack of work ethic, don’t hesitate to relieve them of their post.
Finally, as you embark on the exciting journey of starting a medical practice, brace yourself for pitfalls and challenges along the way. But with these tips as a starting point, you can minimize the risk and grow your medical practice into a thriving business. Contact Ameritech & Associates today!
CEO of Ameritech & Associates