why is a business plan essential for a healthcare business

Why should a healthcare business need a solid business plan

By Jamie Frew on Jun 16, 2024.

Fact Checked by Ericka Pingol.

Starting a healthcare practice

Starting a healthcare business practice can be a bit of a tricky thing, as there are a lot of aspects involved in its operations. Without a business plan, it can get complicated very quickly, so to avoid becoming entrapped in the common pitfalls of healthcare, it’s best to plan out every process and procedure. Making a plan is essential, and quite simply, is part of healthcare startup 101. With techniques such as, you can have more effective preparations in place to face any challenge posed to you, as well as better understand where to make adjustments, improvements, and allocate your resources. With the right plan implemented, you can take off in no time, and work on expanding and prioritizing growth in addition to your client's needs. 

Reasons why your healthcare business must have a strong business plan

There are multiple reasons why your healthcare business should have a strong business plan in place, including the following. 

To understand your step-by-step strategy for future

A business plan outlines all the resources you need across business operations and can provide a solid backbone to prepare you for potential future challenges. A plan provides a clear direction for all business areas and allows you to know what steps to take in regard to growth and expansion. 

To effectively manage your cash flow

Every healthy business needs a positive cash flow to secure investments and ensure there’s enough to be able to supply resources to meet client needs. A business plan can help you avoid breaking even and allow more transparency when it comes to seeing money flows, and can also improve your receivables and payables. Any delays can be accounted for, and when it comes to external financial services, you can appropriately receive reimbursements on time. 

To get additional funding for expansion

Continuing with the theme of finances, if successful, you’re likely to face important investment decisions to promote growth and expansion within your business. Sometimes cash flow isn’t enough, and additional funding is needed to accommodate more resources, such as a data warehouse. Having a detailed, and well-outlined business plan can contribute to a higher likelihood of being awarded the right funds to generate higher cash flows through expansion. 

To help identify any potential weaknesses

Plans are a great way to outline all your ideas and resources, and presenting information through this clarified format can often highlight areas that you may need to spare additional attention to. Using plans can identify areas of weakness that you may need external support and advice on, and having everything viewable from one place can allow for more valuable discussion. 

To communicate your ideas with stakeholders

Businesses are highly concerned with stakeholders and investors, and having a business plan in healthcare serves as a great communication tool for liaison with important institutions. You can use it to hire additional staff, as well as apply for credit and loans for investment purposes. This doesn’t need to be a complicated plan, but if stakeholders are to have a share in your operations, having an outline of your ideas and plans is the least you could do for their peace of mind. 

What should your business plan include?

You may be wondering about what needs to be included in a business plan; after all, they can be very detailed, and serve very different purposes depending on your business. Fortunately, we’re here to help, and every business plan should include the following. 

Executive summary

Your executive summary should be a concise description of your plan, including summarized details of every core aspect. This may include short descriptions of your market analysis, your value set, as well as finances. Keep in mind that this is a summary, and so it should be written after the plan is fully completed. 

Marketing strategy

Your marketing strategy should focus on answering the four Ps of product, price, promotion, and place. You should clearly describe the product or service that you are selling, in addition to the fees you charge. Promotion should outline all the marketing healthcare strategies that you’ll employ, and the place describing where you’ll be located.  

Competitive analysis

One of the most important aspects of a plan is considering your competitors, and how your service offers value that differentiates and sets you apart. Ideally, you should discuss your direct competitors and your indirect competitors, or those who target a different market within the same realm of healthcare. 

Description of your healthcare practice

Naturally, you should describe your healthcare practice in terms of its operations, mission, and how you’ll run. It should cover all the basics, so all clients and stakeholders who read it can grasp the essentials of what you’re about. 

Financial goals

Because investors and lenders will need to see evidence of your financial plans, it’s absolutely vital that you include this aspect. This is one of the most important sections of any business plan, as information such as income and cash flow statements, as well as balance sheets, all need to be included. Profitability should be emphasized at every point, and in regard to a future exit strategy. 

Organization and management policies

You should include details concerning your management teams, or any managerial type staff, as well as outlines concerning how you will manage your business data. Data security solutions are important, and so it’s important to make sure that you have considered this in regard to every operation. Investing in healthcare compliance software can help ensure you have the right organizational policies in place.

Customer analysis

Similar to a target market, you need to crack down on the specifics of your service, and what exact demographic you’re catering to. 

Healthcare business plan template

To help you get started, we’ve covered all of the basics and compiled it into one business plan for you to follow and implement in your business practice and overcome revenue. For success in your business, consider expanding on the following aspects. 

1. Executive Summary

• Business Overview
• Products Served
• Customer Focus
• Success Factors
• Financial Highlights

2. Company Overview

• Who You Are
• Your History
• Your Products/Services

3. Industry Analysis

4. Customer Analysis

• Demograpic profile of target market
• Customer segmentation

5. Competitive Analysis

• Direct and Indirect Competitors
• Competitive Pricing
• Compeitive Advantage 

6. Marketing Plan

• Promotions Strategy

7. Operations Plan

• Functional Roles

8. Management Team

• Management Team
• Hiring Plan

9. Financial Plan

• Revenue and Cost Drivers
• Capital Requirements and Use of Funds
• Key Assumptions

Take home message

Every successful healthcare business must implement a business plan to be held accountable and to have a clear direction for the future of its services. Plans can help you have an outline according to your resources and aids in a better understanding of where to allocate your time and energy in improving business operations. You can identify your strengths and weaknesses, and gain a closer relationship with your business procedures and processes to further growth and expansion in the future. Additionally, having a business plan can help you understand your target market, and prioritize client needs. Plans enable you to do what you do best and capitalize on healthcare technology trends to promote growth and learning in the long term.

Get Carepatron for free today and show us your business plan love!

Further reading:

• How to Start a Healthcare Business: The Ultimate Guide
• Four Reasons Why Your Company Must Have A Strong Business Plan At Any Phase

Related Articles

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How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Marketing is crucial for any industry, and healthcare industry is no exception. Whether you are a big hospital or private practice, creating and implementing an effective marketing plan will help to attract new patients, retain the existing ones and maintain relationships with your staff and patients. An effective marketing strategy will play an integral role in increasing revenue, building patient trust, improving online reputation and expanding your reach.

A healthcare business plan can help you define and identify the target audience and key prospects. It can also assist in evaluating and comparing your practice data against your industry. Clearly, a business plan is necessary, so does your practice have one? Here are some more benefits of creating a strategic plan for your medical practice:

• Physician business plan provides clear direction to your marketing initiatives, preventing random activities that may work against each other.
• The process of developing a strategic plan offers an opportunity for everybody involved to collaborate in shaping the future of the practice. Active participation of all the stakeholders ensures the success of projects and priorities.
• A strategic healthcare business plan helps the physician set marketing goals and priorities for the medical practice.
• Clarity of aims and objectives can improve the quality of patient care.

Strategic business planning offers great long-term value. After the initial planning is done, a practice can use it as the benchmark for measuring progress and monitoring areas of improvement.

The process for preparing a strategic business plan is not clear-cut, but it is one of the most important things you should do for the strategic growth of your practice. A well-defined marketing plan will outline how you will retain existing patients and attract new patients, retain staff and communicate your message in the most efficient manner.

You do not need to hire expensive consultants to create a marketing plan for your healthcare practice. All that you need is the willingness to put in time and effort. An ideal healthcare marketing plan should address every aspect related to promoting your practice, and to effectively plan, you must do some research.

Identify your target audience

The first step in any business plan is to figure out who is going to seek your service. If you have a specialty practice, you probably know the answer. According to industry experts, your marketing efforts will be effective only if they are targeted. So to identify your potential patients, start by defining the common characteristics of your current patients. Always remember, your marketing plan is all about reaching your target audience and adjusting your approach to fit their preferences. Beyond demographics, try to learn the reasons why your potential patients will come to your practice, know your competition and understand your competitors’ approach in reaching the target audience. Examine how your competitors market their practice and then compare their approach, services and marketing strategies with yours. You must also determine your unique selling proposition and understand what makes you different from your competition.

Marketing is all about keeping up-to-date. So make sure while doing your research, you stay updated on current affairs. The idea is to keep up-to-date with financial, political and marketing trends that influence the medical community so you can create an effective business plan that responds to changing market conditions.

Time for some brainstorming sessions

After you have identified your potential market and patients, you will need to categorize and address critical operational questions about your medical practice. You may need to set up brainstorming sessions with people you trust, including family, friends, team members or other professionals. During these sessions, try to find answers to these basic but critical questions:

Question: Which marketing platforms will make be most suitable for promoting your services?

Pro tip: You will need to think regarding how to present or sell your services. For instance, consider offering packages that are generic in nature and offer value for money.

Question: What is the best time and frequency of marketing your service?

Pro tip: Too much promotion can create a negative brand image in the minds of potential patients. Too much advertising tends to make patients suspicious. So depending on your target audience, determine the best time for promoting your practice.

Question: What are you trying to achieve from your business plan? How do you plan to measure these goals?

Pro tip: According to experts, your marketing plan should include basic tasks that have short-term goals so that you do not end up compromising on the patient experience. You can consider using big data to evaluate and measure results and their impact on ROI.

Penning the business plan

Now that you have completed the groundwork, it is time to put all your facts and figures into words. Here are some basic steps for creating a business plan for your medical practice:

• Define your mission and vision: This is where you need to determine your goals. You have to understand where you want your practice to be in five to seven years. You will need to prepare a list of all the marketing techniques and tactics and determine what options will work best for your practice. Some of the effective marketing tactics are networking, direct marketing, print advertising, training sessions, media, open houses, social media, blogs, third-party websites and much more.
• Identify your team: In order to build support and generate enthusiasm, you should determine the outgoing personalities in your organization. Find people who will help support your marketing efforts by hosting open houses, patient training sessions, interviews and other public relations initiatives.
• Market segmentation: Consider potential patients think outside the box. Look within your organization first – you may find some of your best customers and marketers there. You must understand where your patients come from and dive deeper into your business model. Is your practice mainly run by physician referrals, or do patients refer directly? You need to create an extensive list of potential patients and categorize them.
• Create patient personas: Patient personas are representations of your ideal patients. You must create patient personas based on your research and reflect on their needs and issues. For instance, if one of your buyer personas is a diabetic, his or her needs will be different from a flu patient.
• SWOT analysis: SWOT matrix is another important component of the business plan. You can use this analysis to assess your practice’s strengths, weaknesses, opportunities and threats. This study will help you understand your market situation better and discover growth opportunities. For a successful SWOT analysis , you must be specific, realistic, compare different situations and keep your business plans and goals updated.
• Prepare a budget: Now that you have all the market information you need and have established the best way to reach your potential patients, focus on your budget to support your marketing campaign. To begin with, it is advisable to stick with the 80/20 rule. According to this rule, 80 percent of your business volume will often come from 20 percent of your patients.
• Share your vision: The first step is to make sure the plan is received and understood by your organization’s leadership. Next, make sure your plan becomes a part of the organizational culture. You must encourage employees to come up with ideas that will support your idea. Always share your plans with physicians, volunteers, employees, board members and top leadership.
• Plan the rollout: To begin with, introduce your campaign internally. Your organization’s leadership and staff are often your best support. If they get the message, your marketing efforts will be successful.
• Measure and evaluate: You should regularly track new patients, physician referrals, leads, website hits and procedure volumes in order to assess the success of your business plan.

Don’t forget the 7Ps

Even the most insightful services, supported by the best business plan, will not survive on the market if they are unable to reach potential patients. That is why practices need to invest in strategies that will bridge the gap between them and the target audience. For your marketing initiatives to be successful, you must address the 7Ps in order to evaluate and measure your business activities. These seven Ps are product, price, promotion, place, packaging, positioning and people. These 7Ps will help you review and define key issues that impact your marketing activities.

• Product: When was the last time you took an unbiased look at your products, service, facility or value proposition? Do your products meet the needs of the patients? Do your products and services deliver value? Is your medical practice properly presented? The ‘product’ for your healthcare practice is the happiness and satisfaction of your patients, which is intangible and cannot be quantified. The only way is to know that customers receive value and comfort by way of your medical practice.
• People: Healthcare is all about people – your current patients, potential patients, staff and management – everyone delivers or receives a service plays a significant part in the product category. Your patients will evaluate the service and satisfaction based on assumptions and interactions. Usually, patients do not have much insight to your medical skills, but they will know if they are pleased based on how you deal with them. Your reputation and your image are not yours alone – it is teamwork.
• Price: It is the amount people pay in exchange for the product received. Therefore, the price must be competitive, enough to generate profit, but may vary when bundled with promotional offers. Sometimes, price is the biggest factor. Therefore, as a practice owner, you must take a serious look at those areas where there is flexibility and be open to adjusting and reducing prices to meet your patients’ needs.
• Promotion: This refers to all the direct and indirect ways of communicating about your product to your people or potential patients. This may include personal and mass interaction. In all instances, promotion should always be carried out in a professional manner. The objective of promoting your practice is to examine how, when, what and where you can offer your service to your target audience.
• Place: This points to presenting your products or services to your target audience in the right place and at the right time. Needless to say, the ‘place’ will be your office where the product will meet the user. However, in healthcare, a change in location can impact the user’s decision to buy.
• Packaging: Take an unbiased look at the appearance of your office, front office, waiting area, brochures and website and the appearance of your medical staff. You might be surprised to see what patients are observing when they walk through your front door.
• Positioning: This refers to the way your brand, products or service are perceived by your target customers. If you could get the opportunity to create the ideal impression in the minds of your patients, what would you want it to be?

For successfully growing their practice and attracting new patients, many practices are working with medical marketing agencies. As a medical marketing agency , Practice Builders knows what is suitable for different medical specialties. We can introduce you to the best marketing tactics that will draw new patients to your practice. Moreover, we know how to develop effective business plans that will lead to significant growth in your medical practice. To find out more, contact us today.

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Sharon Mason Parker

Sharon has spent 25 years building teams and developing people to work together to help improve the client experience in the markets we serve. This ultimately benefits both customers and staff equally. Sharing best practices and ideas helps clients and team members envision new alternatives, which is quite fulfilling when positive change results. Sharon enjoys working closely with clients to understand the true drivers that are affecting their business environment. By engaging clients in meaningful exploration of their goals and challenges, she often discovers that an issue they asked for help in solving is merely a symptom of something else or something greater. Solving the real issue through truly listening and not just addressing the symptoms helps create true partnerships with clients.

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How To Implement Effective Strategic Planning In Healthcare

Are you feeling overwhelmed and uncertain about the future?

According to Deloitte , “The global healthcare sector stands at a crossroads in 2024, poised for profound changes. The future of global healthcare is likely to be shaped by innovation, sustainability, social care integration, cost management, and workforce adaptation.”

If you work in the healthcare industry, you know firsthand how quickly things can change. As technology advances, regulations change, the population ages, and new diseases evolve at lightning speed, it can be tough to keep up.

That's why implementing an effective strategic planning process that is execution-ready is so important. It's a tool that helps healthcare organizations prioritize their goals, anticipate potential roadblocks, and quickly adapt to seize new opportunities.

Whether you’re a manager or a top-level executive, this article will provide valuable insights and guidance to help you develop and execute a successful strategic plan.

We'll also show you how Cascade can help you successfully plan, execute, and track your healthcare strategy in one centralized location. Plus, as a bonus, we'll provide a free strategic planning template prefilled with healthcare examples to help you get started.

So, let's dive in and discover how strategic planning can help you navigate the changing landscape of the healthcare environment and achieve your organization’s goals.

Strategic Planning In Healthcare: What Is It?

Strategic planning in healthcare helps you set business goals and decide how to allocate resources to achieve these goals. It involves looking at your organization’s internal and external environments using established strategic tools .

Doing so lets you develop a strategic plan outlining what you want to achieve and an action plan to get there. Think of it like building a roadmap that helps you get to where you want to go.

With a healthcare strategy, you’ll have a framework for improved decision-making that is aligned with your overarching business objectives . This ensures you’re moving towards your long-term goals and objectives, even when making short-term decisions.

Examples Of Strategic Planning In Healthcare

Strategic planning can significantly enhance the operational efficiency and service quality of healthcare organizations. Here are some specific examples of how you can use strategic planning:

• Boosting Patient Care Quality : Tackle specific challenges like lowering the rates of hospital-acquired infections or enhancing the coordination of patient care. By pinpointing these areas, you can implement targeted improvements that directly benefit patient outcomes.
• Optimizing Staff and Resource Management : Utilize data analytics to make evidence-based decisions regarding staffing and resource distribution. This approach ensures that your workforce is optimally aligned with patient needs, and your resource allocation is efficient, contributing to a more effective healthcare system.
• Exploring New Avenues for Growth : Seize opportunities to expand your services and reach by integrating telehealth, offering home healthcare solutions, or developing specialized programs tailored to unique patient demographics. Such strategic initiatives can open new revenue streams and meet the evolving needs of your community.
• Improving Financial Health : Identify strategies for cost reduction and revenue enhancement, such as streamlining supply chain operations or venturing into untapped markets. These measures can bolster your organization's financial stability, allowing for reinvestment in key areas.
• Fostering Partnerships for Comprehensive Care : Establish collaborations with community organizations, other healthcare providers and facilities, or specialists to broaden your service offerings and improve patient care. Partnerships can lead to a more integrated care model that addresses a wide range of patient needs.

📚 Recommended read: Strategy study: The Ramsay Health Care Growth Study

Healthcare Strategic Planning: Why Is It Important?

Strategic planning in healthcare is more than just setting goals; it's about ensuring your organization is on the right track for success.

These are some of the countless benefits of strategic planning in healthcare:

Boost profitability

Strategic planning helps healthcare leaders improve their organization’s financial performance and achieve long-term sustainability. It's about using resources wisely, cutting costs where possible, and smoothing out inefficiencies by streamlining processes and creating better strategic initiatives to increase patient volume and improve experience.  

Additionally, strategic planning plays a crucial role in uncovering new opportunities for revenue, enabling healthcare organizations to diversify their sources of income.

Enhance collaboration and engagement

Strategic planning in healthcare goes beyond identifying operational challenges; it's about bringing to light the issues that affect our teams daily, such as the strain of long work hours. When staff feel overburdened, their motivation dips, leading to decreased engagement and higher turnover rates.

By articulating a clear vision for the organization and actively involving employees in the strategic planning process, we can significantly boost morale. It's about making sure everyone feels seen and heard, understanding that their contributions are valued. This inclusive approach not only enhances team engagement but also encourages stronger retention.

Strategic planning also fosters collaboration across different teams and business units within the healthcare organization. By working together towards common goals, departments can better align their efforts, share insights, and support each other in achieving the organization's objectives. This synergy not only improves efficiency but also builds a more cohesive and motivated workforce.

💡Pro Tip : Ensure your vision statement is crystal clear organization-wide for unified strategic alignment.

Increase efficiency

Strategic planning helps you align your operational activities with the organization’s goals. This ensures that every action contributes toward achieving your business objectives. Strategic planning also empowers healthcare leaders, providing them with the insights needed to make resource allocation decisions wisely in the dynamic healthcare landscape.

Improve communication

A good strategic plan should be shared with all stakeholders so they can form a clear picture of how their actions affect a future outcome. This transparency promotes better communication within the organization, as employees align their efforts towards achieving a common goal. The end result is a more collaborative environment where the collective focus is on attaining shared objectives.

Drive alignment and strategy execution

Involving key stakeholders in the strategic planning process is crucial for aligning your healthcare organization's goals with its overarching strategy. This ensures that everyone, from top management to frontline staff, is aligned and moving in the same direction. Achieving this level of strategic harmony across the organization reduces confusion and clarifies the collective mission, paving the way for successful strategy implementation. This collaborative approach not only fosters a unified effort towards common objectives but also enhances the overall effectiveness of the organization's strategic initiatives.

💡Pro Tip : Ensure you balance a top-down and bottom-up for enhanced vertical and horizontal strategic alignment .

5 Strategic Planning Tools For Your Healthcare Strategy

Here’s a list of strategy tools and frameworks that can help you identify gaps in your healthcare strategy, prioritize strategic initiatives, and develop business goals:

1. Balanced Scorecard (BSC)

The Balanced Scorecard translates strategic goals into measurable indicators or metrics to help you balance four critical organizational perspectives: financial, customer, internal processes, and organizational capacity.

Using this tool ensures that your organization aligns with your strategic objectives and that you’re measuring the right KPIs to track progress toward those objectives.

2. Objectives and key results (OKR)

The OKR framework sets specific and measurable objectives and tracks progress toward them using key results. Objectives should be ambitious and challenging but achievable. Meanwhile, key results should be specific and measurable and have defined target values.

This framework promotes accountability and transparency since everyone works toward the same goals.

3. Political, economic, sociocultural, and technological (PEST) analysis

PEST analysis helps you understand the external factors that may impact your operations. By using this tool, you can identify potential opportunities and threats so you can anticipate and respond to changes in the external environment.

For example, PEST can help you identify a shift toward consumer-driven healthcare. Consequently, this enables you to invest in telemedicine and other digital healthcare technologies to meet patients’ changing needs.

4. Strengths, weaknesses, opportunities, threats (SWOT) analysis

SWOT analysis is a simple yet powerful way to identify the internal and external factors that can impact your organization’s success.

For example, if you discover that staffing levels are a weakness, you may decide to invest in staff training or recruitment programs. Or, if you identify an opportunity to expand into a new service area, you may choose to allocate resources for the expansion.

By leveraging your organization's strengths through this analysis, you can craft targeted strategies that address challenges and capitalize on opportunities for sustained success.

5. Theory of change (TOC)

The theory of change is a framework that helps your organization articulate the desired outcomes and specific steps you need to take to achieve them. This model provides a more structured approach to achieving goals by identifying the inputs required for success.

For example, if you want to reduce hospital readmissions, you may use the theory of change to identify the inputs needed (staff training on patient education), activities needed (discharge planning), and desired outcomes (reduction in hospital readmissions). By mapping out this logic model and continuously evaluating the initiative, your organization can adjust its activities to achieve your desired outcomes and improve the quality of care for your patients.

📚 Recommended read: 26 Best Strategy Tools For Your Organization in 2024

How To Implement A Strategic Plan In Healthcare

Implementing a strategic healthcare plan can be challenging. Follow this step-by-step framework to help you get started.

💡Pro Tip : Streamline your healthcare strategy planning, execution, and tracking with Cascade Strategy Execution Platform .  It serves as a centralized hub for enhanced decision-making and accelerated results. Unsure of where to begin? Kickstart your strategic planning process with our complimentary pre-filled healthcare strategy template .

1. Establish goals

The first step is to establish clear and measurable goals. These goals should align with your organization’s mission and vision , and be SMART (specific, measurable, achievable, relevant, and time-bound).

Examples of goals in healthcare include reducing hospital readmission rates, improving patient satisfaction scores, or increasing revenue.

👉🏻How Cascade can help? With Cascade's Planner feature , you can simplify the process of constructing your strategies. It provides a structured approach, making it effortless to break down complex high-level initiatives into actionable outcomes.

2. Set milestones and measure progress

Once you establish goals, it’s important to set milestones and measure progress regularly. This allows your organization to track its progress toward achieving its goals, identify areas for improvement, and make necessary adjustments.

Make sure to establish a timeframe for your milestones, whether it's monthly, quarterly, or yearly, depending on the nature of your goal.

👉🏻How Cascade can help? Cascade's Metrics Library offers a centralized repository for your business metrics, allowing you to seamlessly link these metrics to your plan's Key Performance Indicators (KPIs). Integrating core metrics becomes a breeze, whether they originate from your business systems, data lakes, Business Intelligence (BI) tools, or spreadsheets.

3. Develop an execution plan

To successfully achieve your goals, it is essential to have a comprehensive execution plan . This plan should detail all the necessary activities and strategies that will guide you toward success.

An effective execution plan must include a well-structured timeline, a checklist of required resources, and clearly defined responsibilities for each action or project.

👉🏻How Cascade can help? Cascade's Alignment Maps feature empowers you to monitor the interactions between activities by documenting and examining dependencies, blockers, and risks that might arise during your strategic journey. This ensures a smooth path to successful strategy execution.

4. Monitor performance and adapt as needed

Once the plan is in motion, you should monitor its performance regularly and make necessary adjustments when you notice deviations. You must be flexible and willing to change your execution plan as needed.

For example, if the original plan doesn't turn out to be effective, it's important to quickly reevaluate and come up with an alternative strategy.

👉🏻How Cascade can help? Cascade's Dashboards & Reports allow you to gain accurate, real-time insights into your strategic performance, enabling you to easily share this information with your stakeholders.

5. Communicate regularly

Communication is key in implementing a strategic plan . Each stakeholder should understand their role and how their work fits into the big picture. You must inform them of progress toward the established goals, any changes to the execution plan, and other relevant information. This will help you build trust and get buy-in, which are essential for successful strategy execution.

6. Celebrate successes

Celebrating successes helps maintain motivation and momentum. It shows staff and stakeholders that their hard work is paying off. This can be done in various ways, such as recognizing staff members who have contributed significantly to the plan or sharing positive feedback from patients.

Positive reinforcement will motivate employees to keep striving to achieve your organization’s objectives.

📚 Recommended read: How Parker University uses Cascade to help them hold a position as a leader in Patient-Centric Healthcare

Case Study: Perley Health’s Strategic Ambition  

Perley Health, a healthcare organization dedicated to improving care for veterans and seniors, faced some significant challenges in their strategic planning and execution processes. These challenges included making assumptions about the stability of the external environment in their long-term planning, inconsistency in how different departments planned and reported, a lack of clarity in how they measured success, and a somewhat fragmented approach to strategic and departmental plans.

Perley Health's journey toward strategic improvement began with the adoption of Cascade, a pivotal decision for them. Initially, they used Cascade to bring together all their strategic plans and initiatives, which brought about greater transparency and alignment with their organizational priorities. This not only made resource allocation more efficient but also provided a standardized way to measure results, making it easier to discuss return on investment (ROI) and track progress systematically.

Empowered by Cascade's capabilities, the management and various teams could now propose forward-thinking initiatives with a clear view of how they aligned with strategic priorities. This sped up decision-making and made funding allocation more precise.

With the right tools in place, Perley Health is now confidently working towards their goal of doubling senior care and establishing themselves as a center of excellence in frailty-informed care. They keep a close eye on their progress using the Cascade platform.

This case underscores the critical importance of strategic planning in navigating the complexities of healthcare, demonstrating a clear path to achieving and surpassing organizational objectives.

📚 Read the complete Perley Health Case Study!

Execute Your Healthcare Strategy With Cascade 🚀

Take the guesswork out of strategic planning in healthcare. With Cascade , you can easily create an execution plan customized to your goals and objectives, including assigning initiatives and setting deadlines for each team member involved.

Take a look at this example of a healthcare strategic plan in Cascade:

You can also leverage easy-to-use dashboards and visualizations that provide real-time data on your progress toward your goals.

Here’s an example of a real-time dashboard:

Cascade lets you collaborate with your team, assign responsibilities, and communicate progress, ensuring everyone is aligned and working toward the same objectives.

Whether you run a small clinic or a large healthcare organization, Cascade will help you make strategic planning in healthcare a breeze. Learn more about Cascade for healthcare !

Looking for a tailored tour of our platform? Book a demo with one of our Strategy Execution experts.

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Your toolkit for strategy success.

Why Strategic Planning is Important in Healthcare

December 1, 2018

The healthcare industry is sometimes too complex and confusing for most to understand. It’s always changing due to technological advancements or government mandates . It’s becoming more important to plan the success of your healthcare organization. By preparing for the future, your organization can better prepare for the unknown. A strong strategic plan helps all levels of your business, no matter how large or small.

What is Strategic Planning in Healthcare?

Strategic planning in healthcare organizations involves creating objectives and setting goals for where the organization sees itself in the long-term. With these goals and objectives in mind, you can create a plan to achieve them. You can’t just set goals and objectives based on your needs. You also have to set them according to economic trends, government policies, and technological advancements.

Strategic planning in healthcare is critical for healthcare organizations to succeed. Understanding how your organization operates is the key to creating an effective strategic plan for the entire healthcare system to succeed. Sometimes you need to look at the hierarchy of your organization. Determining your company’s goals and setting a path to achieve these goals motivates your staff at every level to succeed with you.

Why Strategic Planning is Important in Healthcare?

Improved communication among all chains.

It’s easy for departments at every level to become confused as to what’s going on. Both your employees and stakeholders want to ensure that your organization will have a long-lasting future. They want to know where your organization is headed and the steps it takes to get there. Effective planning in healthcare management can help you create clarity and improve communication. Your strategic plan should address the key issues, your organization’s vision and goals, and the steps to get there. Your employees and stakeholders will have improved confidence and faith in your organization.

Developing and sharing a vision

With this in mind, you can make an impact on every level of your organization. Employees will be committed and motivated to help achieve your vision. Stakeholders will have the confidence and clarity they need to make sound financial decisions. Strategic planning for healthcare facilities that’s clearly developed, executed, and communicated can help each of your individuals carry out your out vision that can lead to a fulfilling future.

Increased employee motivation and engagement

Each of your employees wants to be recognized and heard. Being recognized by their leaders can greatly impact their productivity, engagement, and safety management. Every employee wants to have the responsibility to make decisions they know will benefit your organization. This also motivates them to perform above the minimum acceptable standards as outlined in the job description or performance evaluation. Employees won’t be motivated to improve themselves for an organization that doesn’t state a clear vision or a well-executed game plan.

Transformational leadership and authority

Transformational leadership is a type of leadership that inspires your employees to work harder and to do better. It incorporates techniques that have been cited in organizational behavior literature. Transformational leaders clearly communicate their organization’s vision, believe in their individual employees, and have the abilities to produce high levels of performance. Helping your employees understand how their roles can contribute your organization’s mission and vision is a crucial part of strategic management.

Increased team cooperation and collaboration

Team collaboration and cooperation is an essential component in delivering high-quality healthcare. Employees must work together to make your organization a success. Teamwork is essential for every healthcare industry in order to improve their performance and service. Effective strategic planning models in healthcare can bring your employees together to deliver quality care, great customer service, and increased performance.

Take the time to work on your strategic plan before sharing it with your employees. A well thought-out and executed strategic plan can increase teamwork, improve performance accountability, and increase employee engagement. With all levels working harmoniously together, you can quickly achieve the long-term goals of your organization.

How to Create a Successful Healthcare Business Plan for Your Medical Practice

It is a common misconception that healthcare practices do not require marketing strategies in the same way that other companies and professions do. However, healthcare should be treated as a business and cater to consumers, or in this case, patients.

A successful business plan is essential for medical practices to attract new patients, retain current patients, and maintain a positive relationship with the community.

Without a business plan, practices may find themselves disorganized, lost, and unable to adapt to any changes in business, such as decreased visits or increased appointment cancellations.

Why is a Business Plan Necessary?

Creating a business plan for your healthcare practice means laying out where you are now and where you want to be in order to fill in strategic goals and benchmarks needed to track progress. Without a finished business plan to rely on, healthcare practices will not have any insight or idea of their returns.

Additionally, the attracting and retaining of patients will not be prioritized or managed. Opportunities for improvement may get overlooked, revenue may not increase, and patient trust may be lost.

How to Create a Healthcare Business Plan

Clearly, a business plan is non-negotiable for healthcare practices. But where do you start? What should you focus on?

Most practices that put together business plans rely on these basic guidelines to get a head start. Keep in mind that any of these parts can be adjusted or changed according to what makes the most sense for your healthcare practice.

#1: Identify Your Ideal Patient

Healthcare practices are essentially promoting services to an audience, or, patients. Start identifying and defining your target audience by assessing who uses your services. Marketing plans should be developed with this target audience in mind in order to be effective.

If you have a wide range of patients varying in age, gender, etc., consider segmenting them into different, smaller groups or learn about what each patient has in common outside of traditional demographics.

#2: Define Your Vision

Solidify your goals by defining them in the largest business plan. Brainstorm and write down goals, significant milestones, and where you see the practice in 3 years, 5 years, etc. Document how you will achieve these goals and set dates for major milestones.

#3: Assemble a Team

It takes a village to run a successful healthcare practice, from the front office staff to third-party contractors. Take this time to document who will be involved with this business plan and to what degree.

Outline roles, responsibilities, and initiatives for each team member. Make sure to tie this all in with your overall vision. For example, if you envision a significant effort in social media marketing within the next year, define the role(s) that will be responsible for this.

#4: Build Patient Personas

When other businesses create their business plans, they often run an exercise to build “buyer personas.” These are essentially profiles that represent ideal customers , based on real data.

This exercise includes giving these personas creative and explanatory names, incomes, budgets, careers, and more, to help guide business and marketing decisions.

In healthcare, creating a patient persona works the same. Sit down with your team and create 1-2 profiles of your ideal patient. Give them a name, a medical condition or need, income, family status, personality attributes, etc. based on your actual patients. For example, a profile might look like this:

“Clever Cathy,” has diabetes, age 65, works in customer service, researches her conditions thoroughly/has lots of questions for doctors, makes 55k per year, has $500 to spend on care today, divorced, 3 kids out of the house.

Having these profiles on hand can help pull focus to your patient's needs during important business decisions.

#5: Perform a SWOT Analysis

Another tool to use for self-assessing your healthcare practice is a SWOT analysis . SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Draw a 2x2 grid labeled with these terms, and start listing examples.

When assessing your healthcare practice's strengths and weaknesses, consider everything from an internal perspective and what you have control over, such as unique services (strength) and only having one provider (weakness).

Writing out your practice's weaknesses helps you to place all of your thoughts for improvement in one clean list. Keep it strictly about what you have direct control over, such as long wait times or outdated appointment booking systems.

Opportunities and threats are both meant to be viewed from an external lens and are things you do not have control over but can either leverage (opportunities) or maneuver away from (threats). Opportunities can include things like new real estate in a better location, while threats can include things like loss of staff.

#6: Finalize and Share

Once you have a full business plan solidified, finalize it and share it with all physicians, staff, board members, executives, and any other stakeholders necessary.

Once everybody is on board, you can begin the rollout, enjoying the support from every team member along the way.

#7: Check-in and Evaluate

Sometimes, a plan that we thought would surely bring in 100 new patients falls flat. That's why it is important to establish a plan to check-in with your goals, benchmarks, targets, plans, etc. to see what is working, and more importantly-- what's not.

Adjust and change your plan as needed, making sure everybody is still in the loop. By measuring and evaluating your business plan consistently, your chances of success improve.

Don't Forget “The 3 Pillars of a Successful Healthcare Practice”

While assembling your new business plan, let's not forget the 3 pillars of a successful healthcare practice : a growing patient base, a stellar online reputation, and a strong online presence.

Keeping these pillars in mind for a detailed business plan, healthcare practices can increase patient acquisition and retention. Make sure to integrate these pillars into your marketing plan!

To conclude, healthcare practices must have a business plan in order to be successful and to keep growing. These plans, as you've seen, can get large and sometimes complicated.

For busy practices, hiring a marketing agency to help handle this plan is a must. It's important to find a healthcare marketing agency that believes in your business plan. This keeps everybody aligned so your practice can see success.

Ajay Prasad

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7 steps to writing a business plan for your healthcare business

Creating a strong business plan is the key to a successful private healthcare business.

When it comes to building your private healthcare business, writing a strong business plan and implementing it properly is perhaps the most effective strategy to propel your business to success. Whether you are just starting out, or are already an established healthcare practice, it is never too late to write your business plan and put it in place.

We’ve put together seven steps to help you write a healthcare business plan and then implement it. You can also find a sample private practice business plan PDF here to get you started!

Download our free Business Plan template here!

1. Identify your end goal

Perhaps the most important step of writing a business plan is identifying what it is you are trying to achieve. Identifying clear business goals will enable you to build a step-by-step plan to ultimately achieve these aims. 

Dr Gero Baiarda, Clinical Director at GPDQ, states the importance of knowing your practice’s aims in our ‘Launching a Private Practice’ ebook. He states that identifying your purpose, vision, and mission, will help keep you consistent and accountable to your goals. Knowing exactly what you are seeking to achieve in your business will mean that your business plan is tailored to achieving that goal at every step.

2. Get to know your business in numbers

To write a business plan that will enable you to reach your goals, you need to understand how your business is currently performing . Obtaining a complete and in-depth overview of the health of your business will help you to make concrete and achievable goals based on accurate data. 

Tracking data is also essential as you progress further with your business. You can’t make a successful business plan without knowing your business inside and out, and you won’t be able to understand how you are performing against your business plan without measuring data as you go.

Make sure you have access to business management tools that allow you to track the key data, such as revenue, patient numbers, cash flow, and other financial and patient demographics which will be useful for your growth goals.

Find out more about Semble’s business management tools here.

3. Break it into smaller steps

With a business goal in mind, the best way to create a business plan is to break it down into smaller, achievable steps. By doing this you will be able to map out a clear trajectory for your business over the next months or years and it will be easier to track your progress against your aims and expectations. 

Work backwards from the end goal to create smaller steps, each with a clear, quantifiable goal, such as reaching a revenue goal in a certain month or number of patients reached. If you work well with visuals, experiment with creating a visual diagram or board that you can keep close at hand to check and measure up against as you grow your healthcare business.

4. Identify key successes and failures

A business plan is about improving and growing your business, and to do this it is important to understand your strengths and weaknesses. Consider what has worked well for your business and what has not. 

For example, how is your staff management? Does your team work well together, understand their individual roles, and achieve tasks efficiently ? 

By identifying main strengths, you can work them into your plan to help you improve business performance. Identifying any weaknesses will enable you to know areas that need some attention and a greater input of time and resources to help you build an all-around stronger business. 

5. Get to know your target market

An understanding of your patient’s needs is essential to performing well in the market. Your patient population will depend to an extent on the healthcare services you are offering, but conducting key market research into the specific needs of your patients will help you to create a unique and tailored service that will perform better in the market.

Oliver Capel, Managing Director at Medico Digital, explains that market research and patient demographics such as age, gender, religion, income level, and more, can help you to cultivate a more targeted and effective marketing strategy because it provides insight into what sort of marketing materials will be best received by patients. For example, a young mother will respond differently to marketing than a 60-year old male retiree.

Explore how to use patient market research to improve your business performance in Chapter 2 of the ‘Launching a Private Practice’ ebook . 

6. Schedule regular time for business management

You can’t expect to see results in business growth if you don’t invest the time and energy into nurturing it. Whether that be investing in your own development with business management learning time, or setting aside a weekly hour for growth strategy and progress reviewing, it is essential that you carve out time to work on your business.

There are many online courses, books, and guides for basic business management which could help you learn invaluable skills for managing and growing your healthcare business.  Start by identifying areas where you have less knowledge and schedule in an hour a week for learning, planning, and strategy. 

Even as little as one hour a week will have a profound effect on your business skills and management, and the results will soon be evident!

7. Get your team on board

There is little point in setting goals if your team is unaware of what they are. Sharing business goals with your team and employees means that everyone can do their part to reach certain milestones and improve the business. It also helps to create a stronger network that you can rely on to carry out delegated tasks and ease the burden of both business management and the day-to-day running of your private healthcare practice.

Whether it be improving customer service with better bedside manner, or making changes to workflows to improve efficiency, making your team aware of the end goal will help them understand why change is needed and thus more likely to get on board.

Get started writing your business plan with this free private healthcare practice business plan PDF!

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The Complete Guide to Strategic Planning in Healthcare

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Healthcare institutions around the world must adapt their strategies to meet current trends and patient preferences. By using reliable and thoughtful planning, healthcare facilities can initiate patient-centric approaches and boost success.

Strategic healthcare planning consists of creating objectives, setting goals and then creating a plan for achievement. In other words, it’s the process of outlining goals and taking the necessary steps to achieve them. Most healthcare plans also consider government policies and technological advancements that could alter health goals and operations.

Read on to learn more about the importance of planning in healthcare.

In This Article

The Importance of Planning in Healthcare

• New Technologies
• Mass Adoption of Virtual Care
• Continued Management of Cybersecurity Risks
• Evolving Coding Requirements
• Population Health Management

The Benefits of Healthcare Strategic Planning

Questions to ask, partner with achieveit today.

Strategic planning is essential for a healthcare facility’s overall success. Planning allows organizations to adjust to the changing demands of the healthcare industry while supporting goal achievement.

You can also see the importance of strategic healthcare planning in other areas, including:

• Adapting to current trends:  Having strong plans in place can help your facility adjust to current trends. By strategically thinking about the future of the field, you can avoid surprises later. For example, a significant change facing the healthcare industry is  the rise of hybrid and remote  work. Many facilities offer telehealth services or remote appointments for patients. With strategic management in healthcare, institutions can take note of these changes and adjust upcoming hiring policies and staff positions. 
• Meeting patient needs:  Strategic planning can also aid facilities in meeting patient needs. As technological advancements progress and the number of available providers grows, patients are seeking personalized and high-quality options. Facilities can examine patient demands and use these to craft their upcoming strategy in healthcare. In turn, they can create a patient-centric approach that improves the quality of care and sets them apart from competitors.
• Reduc ing  supply chain disruption impacts:  The COVID-19 pandemic disrupted the supply chain for all industries, including healthcare. Without the proper tools and equipment, healthcare professionals cannot provide care for all patients. Your strategic plan could help you analyze current supply chain trends and alter ordering decisions in response. For instance, if you notice a specific type of equipment is consistently out of stock, you could order extra quantities for your facility.
• Meeting rising hospital numbers:  After the COVID-19 pandemic, the healthcare industry experienced  a sudden increase in hospitalizations . Strategic planning allows facilities to allocate necessary resources to meet these trends. They can also become more prepared for other potential health crises.
• Helping with public funding:  Strong performance helps healthcare facilities receive more funding from public sources. Most donors use various quality metrics to determine how much funding institutions should gain each year. A strategic plan can boost your facility’s performance on many levels, from care quality to maintaining supplies.

Overall, strategic planning in hospitals and other facilities is essential for institutional success and responding to current trends in the healthcare industry.

Top 5 Strategic Challenges in Healthcare

From the Affordable Care Act’s (ACA) influx of insured patients to the increased strain of COVID-19, healthcare facilities have been constantly adapting. Here are some examples of strategic planning in healthcare today.

1. New Technologies

In the medical field, new technologies seem to appear every day. From remote patient monitoring to robust patient portals, healthcare facilities must consider the evolution of the tools used during day-to-day care. These resources may impact workflows, budgets and the patient experience.

Many new technologies offer benefits like improved efficiency and positive experiences, but they can also create healthcare challenges in the form of new requirements for your IT team and staff training. Remaining flexible can help you accommodate these possibilities, stay ahead of the competition and improve care with modern capabilities.

2. Mass Adoption of Virtual Care

From a cost perspective, one shining light for healthcare systems is the rise of virtual care, commonly referred to as telemedicine. Using internet-enabled services, healthcare providers are able to consult with patients virtually and provide diagnoses, thereby saving time and resources associated with an in-person hospital consult.

As this technology continues to proliferate, and patients become more comfortable with interacting with their doctors over virtual systems, healthcare systems will be able to trim significant expenses across departments, helping to control costs. In creating their strategic plans, healthcare leaders should take a deep look at how they continue managing telemedicine technology to help aid in future cost savings.

3. Continued Management of Cybersecurity Risks

Data security has become a significant challenge across industries, but none more so than the healthcare industry. Due to the extensive nature of personal information inherent in healthcare records, insurance companies and healthcare systems should be cautious regarding the security of their patient records.

As regular security breaches always remind us, healthcare entities should pay special attention to the security of their systems to ensure the privacy of subscribers. Healthcare leadership will need to collaborate extensively with IT, in a strategic sense, to ensure the department has the resources and technology necessary to guarantee data security and HIPAA compliance.

4. Evolving Coding Requirements

The next version of the International Classification of Diseases (ICD)  is currently under review  in the U.S. If you’ve been in the industry for a while, you might remember the transition to ICD-10 back in 2015. Although we may not see ICD-11 for a while, healthcare strategy must consider this eventual implementation and other potential changes to reporting and documentation requirements. To ensure full reimbursement, organizations may need to upgrade existing systems and train employees accordingly.

5. Population Health Management

Healthcare systems across the country are being confronted with a new paradigm of healthcare delivery: Ensuring the overall health of demographic cohorts within their communities.

Shifts toward value-based care only increase the focus on population health, requiring healthcare leaders to design strategic plans and allocate resources to educate the populations they serve on preventative care. This will require the participation of stakeholders across departments and often will necessitate new programs to be established to help further population health interests.

Committing to a strategic plan can bring many benefits to healthcare facilities, including:

• Establishing a shared vision:  A plan requires your facility to focus on specific goals. As you develop these objectives, you and your team can establish the overall purpose of your facility. Then, you can create  concrete ways to meet this vision . You can also inform employees, shareholders and other crucial team members of this vision, inspiring members at every level. All members can unite around a shared purpose and find more value in their work, improving overall performance. 
• Prioritizing critical issues:  By focusing on a strategic plan, you can prioritize vital issues. Every healthcare facility has specific areas for improvement, whether it’s improving collaboration or meeting staffing requirements. Strategic management in healthcare allows you to identify these areas and brainstorm specific ways to address them. You can focus on resolving the most significant issues first, instead of getting overwhelmed with secondary problems.
• Improving team communication:  Strategic planning also assists with communication across your facility. Your plan should address key issues and goals, then outline the steps you will take to achieve these. You can share these plans with all institutional members, giving everyone a clear idea of future actions. With everyone on the same page, your facility can collaborate more easily and stay on track with goals.
• Enhancing motivation:  A clear vision and plan can motivate employees to work harder. They can feel empowered to make decisions that support institutional goals. As they work toward a shared purpose outlined in a healthcare strategy, they feel more motivated by their daily work and can improve their performance.
• Solidifying leadership:  All healthcare facilities rely on strong leadership to lead employees and meet goals. Leaders can use strategic plans to clearly identify goals for employees. They can clarify expected behaviors and encourage employees to work toward their personal best. Passionate leaders and hard-working employees can establish your facility as a leading healthcare option.

Because the purpose of strategic planning in healthcare is to work towards improvement, asking questions can help you. Healthcare institutions should ask a few crucial questions during their planning. By thinking about particular circumstances, you can tailor plans for your needs. These questions can also help you identify goals and develop a shared purpose.

Here are a few examples of questions to ask during strategic planning:

• What is the current financial situation of your institution? 
• What are your goals for finances moving forward?
• What areas need more help or growth?
• What are the needs of your facility’s typical population? 
• How could these needs change over time?
• What current trends in the healthcare industry or government policies could impede these goals?
• Where would you like to see your organization in five years or ten years?

You can use questions like these to establish objectives and an overall vision. Once you have developed these, you can develop steps for achievement. Structures like SMART goals can help you  create measurable and timely actions . 

At AchieveIt, we understand the importance of well-defined healthcare goals and addressing the challenges of healthcare strategy. You can move directly toward your shared vision with a strategic plan and clear-cut goals.

Our  strategic planning software  helps healthcare institutions meet their goals. The technology helps you analyze data to identify specific goals and areas for improvement. Then, we can help you form quantifiable and actionable goals that move you toward your overall purpose.

AchieveIt software also features:

• Integrated reports
• Automated reminders for deadlines and goals
• Real-time data updates
• Speedy set-ups and communication processes

Our expert team of specialists can help your facility through each step of the planning process. We can enhance your plans and offer specific suggestions for improvement. Whether you want to improve physician care or reduce waiting room times, our software can help you meet these goals.

Let’s actually do this.  Schedule a demo with AchieveIt  today.

Meet the Author   Chelsea Damon

Chelsea Damon is the Content Strategist at AchieveIt. When she's not publishing content about strategy execution, you'll likely find her outside or baking bread.

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How to Start a Healthcare Business: The Ultimate Guide

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There are a lot of advantages to starting a healthcare business. However, it’s not an easy thing to do.

Develop a Plan

One of the things to remember when starting a healthcare business is that you need to have a solid plan in place. You should be as organized as possible.

Before launching a business, you’ll want to make sure that you do some research into the industry. Also, learn about other healthcare organizations in your area.

Be sure that you’ve prepared a thorough business plan that has all of the essentials. This should include an executive summary, market analysis, service offerings, marketing plans, funding plans, and more.

Seek Funding

Unfortunately, this can be very difficult so you’ll need to prepare in advance. Make sure that you’ve planned out your expenses carefully and have a clear idea of what your initial costs and ongoing costs will be. Leasing or mortgage payments, staff payments, furnishings, payroll, professional services, equipment, insurance, and more will cost quite a bit even in just the first few months of opening.

You may need to seek financing to launch your healthcare business. Traditional lenders may be a good option. You should also consider looking for small business administration (SBA) loans or checking with alternative lenders as well.

Meet Legal Requirements

You’ll need to do some research to find out exactly what you’ll need for the type of business that you’ll be opening and the area that you’ll be operating in. In many cases, you’ll need to have a medical background or medical licensing to operate a healthcare business.

It’s a good idea to consult with a lawyer when opening your business. They can help you make sure that you’ve checked all the boxes and have gotten all of the licenses and permits needed to operate legally.

Choose Your Location

An important decision to make when launching a healthcare business is whether you want to buy or build a space or if you’d prefer to lease it instead. You need to have a business location to see patients or to perform any other type of work that you’ll be doing.

You’ll want to consider how you’ll be funding your business and what your budget is carefully when choosing whether to rent or buy space. If you’ll be purchasing space for your business, there may be some tax deductions available that you can use. 

Find Great Staff

When launching a healthcare business, one of the key things to think about is what your staffing needs will be. It’s incredibly important to get staff members that you can trust and that you can rely on to keep your business operating without a hitch.

You’ll need to check the qualifications of anybody you hire carefully and ensure that you have qualified medical personnel available. It may be helpful to work with a staffing agency that can help you find staff for your healthcare organization.

Manage Your Business Effectively

You should also be sure to stay on top of all compliance standards and regulations. Make sure that you’re paying attention to HIPAA rules when managing medical information. Work to meet all requirements on an ongoing basis.

Understanding How to Start a Healthcare Business Successfully

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How to Start a Healthcare Business: 6 Important Steps

Did you know that in 2020, healthcare expenditures accounted  for 19.7%  of total U.S. economic output?

If you want to become a part of that market, you need to think about starting a healthcare business. There are many potential benefits of having your own healthcare business, such as flexibility, higher income, and lower stress. You can also use your passion for healthcare careers to help your business thrive.

Yet, consider your options in starting a healthcare business. That’s why you need a plan. If you don’t know how to start a healthcare business, you may end up folding because you cannot provide for your employees or yourself.

Here are the six steps you need to follow to ensure your business will be successful.

1. Define Your Business Model and Conduct Market Research

One of the most important aspects of starting a healthcare business is defining your business model. What type of healthcare business are you looking to start? Will you be a primary care provider, a home health care agency, or a hospice?

As a healthcare business, you need to find ways to communicate with your future patients or clients. For more information, you can check these iPlum reviews to get insights into the means of communication you’ll use.

This involves understanding the needs of your target market and creating a plan to deliver services that meet those needs. It is important to consider all aspects of your business, from the type of services you offer to how you will finance your venture. Once you understand your business model, you can develop a marketing plan and build the infrastructure needed to support your new business.

When conducting market research, consider who is your target market. This will help you understand the needs of your potential customers and how to best serve them. 

Consider also what are the best ways to reach them, what are your competitors doing, and what are the trends in the healthcare industry. You can do this through various methods, such as surveys, focus groups, and interviews.

Once you have gathered this information, start to create a business plan that will address the needs of your target market.

2. Develop a Business Plan and Get Financing

Before starting a company in the healthcare business, it is important to develop a business plan. This will help you determine the start-up costs, identify the target market, and create marketing and advertising strategies.

Additionally, a business plan can help you secure funding from investors or lenders. To develop a business plan, start by researching the healthcare industry and your specific business idea. Create an executive summary, which summarizes your business plan.

Write a company description that includes your business goals and objectives. Finally, develop a marketing plan and financial projections.

Once you’ve created your plan, you’ll need to find sources of financing. There are some options available, including loans, grants, and investment capital.

3. Find the Right Location 

Make sure the location is convenient for your patients and able to accommodate your business needs. This means having enough space for your staff and equipment and making sure the space is up to code.

Also, make sure the location is within your budget. This means considering the cost of rent, utilities, and any other expenses that come with running a business. Once you find a location that meets all these criteria, you will be well on your way to starting a successful healthcare business.

4. Get Licenses and Permits

Before working in healthcare, you must get the proper licenses and permits from the government. This can be a complicated and time-consuming process, but you need to ensure that your business is legal and compliant with all regulations.

Determine which licenses and permits you will need, based on the type of healthcare business you are opening. You can find this information through your state’s department of health or local government website. Once you know which licenses and permits are required, you can begin the application process.

Many licenses and permits need extensive documentation and may take several weeks or months to be approved. Thus, it is important to start the application process as soon as possible. In some cases, you may also need to submit to a background check or complete other requirements.

5. Hire Employees

The process of hiring employees can be difficult, but it is important to take the time to find the right people for healthcare jobs. To hire employees for your healthcare business, you will first need to determine what positions you need to fill. Next, you will need to create job descriptions for each position.

Once you have created the job descriptions, you will need to post them online or in other places where potential employees will see them. You can also do contacting healthcare staffing agencies or ask for referrals from friends and family.

After you have received applications, you will need to review them and narrow down your choices to a few candidates. Finally, you will need to interview the candidates and make a decision on who to hire.

6. Market Your Business

Without proper marketing, your business will not attract the patients or clients necessary to be successful. In your future patients or clients, you need to find ways to communicate

There are some ways to market your healthcare business. The best approach will vary depending on your unique business and products or services.

Consider online marketing, direct mail, print advertising, and even word-of-mouth marketing to help get the word out about your business. You may also want to consider exhibiting at healthcare trade shows or partnering with other healthcare companies in your industry.

If you do not have a large marketing budget, there are still plenty of affordable marketing ideas that can be effective. You just need to be creative and resourceful.

No matter what approach you take, make sure you are prepared to market your healthcare business effectively to help ensure its success.

Follow These Steps on How to Start a Healthcare Business Successfully

There are six important steps you need to take on how to start a healthcare business. Define your business model and market research, then develop a business plan and get financing, and find the right location. Then you need to get licenses and permits, hire employees, and market your business.

With careful planning and execution, you can develop a successful business in the healthcare industry.

If you’re looking for more helpful tips, make sure to check out our other posts!

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Your Guide to Starting a Healthcare Business

Starting a healthcare business in the United States can be an exciting and fulfilling journey. However, it requires careful planning, an understanding of the healthcare industry, and compliance with various regulations. This guide aims to provide you with a comprehensive overview of the essential steps involved in establishing a successful healthcare business .

Choosing Your Healthcare Business Type

Before diving into the process, it is crucial to identify your medical specialty. Consider your expertise, passion, and the local demand for specific medical services. 

If you aren’t leaning towards any specific business type, then consider conducting market research to assess the viability and competition in your chosen area of practice.

Weighing the Pros and Cons

With any business venture, you need to weigh the risks and challenges that could be detrimental to your business’s success. For many, it can be easy to write out projections that show future success, but you have to weigh the cons as well. 

Creating a well-structured business plan is vital for the success of your healthcare business. Define your goals, target patient population, and services you intend to offer. Include a financial analysis, a marketing strategy, and operational details. Your business plan will serve as a roadmap for your business’s growth.

Determining Compliance Requirements By State and Jurisdiction

Compliance is such a large part of starting any healthcare business. Before you start your business, first determine the licensing, certification, and medical compliance needed. With this information, you will be better prepared for your business plan. 

You may also find that some services, like ours at Guardian Medical Direction , may help in this regard and allow for a more affordable and speedy start-up.

Licensing and Certifications

To operate a healthcare business, you must obtain the required licenses and certifications. This includes obtaining a medical license from the state medical board, as well as any additional licenses based on your specialty. Ensure compliance with federal and state regulations such as HIPAA (Health Insurance Portability and Accountability Act) and OSHA (Occupational Safety and Health Administration) standards.

Medical Equipment Compliance

Ensure that the equipment you purchase meets the necessary regulatory standards and certifications required by the U.S. Food and Drug Administration (FDA) and other relevant authorities. Equipment must be safe, effective, and meet quality standards to ensure optimal patient care and reduce liability risks.

Malpractice Insurance

Medical malpractice insurance is essential to protecting your business from potential legal claims. Research reputable insurance providers and select a policy that suits your business’s needs. Consult with an insurance broker specializing in medical malbusiness to ensure adequate coverage.

Medical Director

You most likely need a medical director or collaborating physician to oversee your healthcare business. While there are cases where a medical director is not required based on your state’s jurisdiction, it is best to hire one anyway, as they can support clinical operations, ensure compliance with healthcare regulations, and provide medical leadership. If you’re running your own business, then you’ll want support in the area of medical leadership.

When hiring your medical director, you’ll want to clearly define the role and responsibilities of the medical director based on your business. This may include clinical oversight, quality improvement initiatives, staff supervision, policy development, and collaboration with other healthcare professionals. Their scope will determine the desired qualifications, experience, and leadership qualities for the role and make it easier to advertise.

When interviewing your candidates, you’ll need to verify their medical qualifications, board certification , and relevant experience in a leadership or administrative role. Luckily, this process can be made a whole lot easier with Guardian MD. We hire only legally certified medical directors based on your state and assess their leadership skills to streamline this vetting process for you.

All our medical directors have a thorough understanding of relevant laws, regulations, and compliance standards, including HIPAA, OSHA, and Stark Law. Our candidates also have experience implementing and monitoring quality improvement initiatives, such as patient safety protocols, clinical guidelines adherence, and performance metrics tracking.

By working with Guardian MD, we eliminate much of the competitive hiring process so that you can access the expertise that you need without the headache. We also streamline the onboarding process, so you can get your business up and running faster than your competitors.  

Obtaining Funding and Building Your Business

Starting a healthcare business requires a substantial financial investment. Explore various funding options, such as personal savings, bank loans, partnerships, or seeking investment from venture capitalists. 

Prepare a detailed budget that covers expenses like office space, equipment, licenses, insurance, staff salaries, and marketing. Allocate a budget for purchasing medical equipment and factor in ongoing maintenance and repair costs. Explore financing options such as equipment leasing or financing plans provided by equipment suppliers or financial institutions. Evaluate the long-term return on investment (ROI) when making purchasing decisions.

Decide on the legal structure of your healthcare business. Common options include sole proprietorship, partnership, limited liability company (LLC), or professional corporation (PC). 

Consult with an attorney or accountant to understand the legal implications and tax considerations associated with each structure.

Launching Your Business

Set up your office.

Find a suitable location for your healthcare business. Consider factors such as visibility, accessibility, parking, and proximity to your target patient population. Design an ergonomic and patient-friendly office space, and invest in essential medical equipment, furniture, and technology.

Consider logistics for equipment installation, setup, and integration within your business. Some equipment may require specialized installation or configuration. Allocate time and resources for training your staff on how to operate and maintain the equipment properly. Manufacturers or suppliers may offer training programs or resources to help familiarize your team with the equipment.

Purchasing Medical Equipment

Purchasing the right medical equipment will be vital to setting up a successful healthcare business. Determine the specific medical equipment required for your business based on your specialty and services. Make a comprehensive list of equipment such as examination tables, diagnostic devices (e.g., stethoscopes, blood pressure monitors), treatment equipment (e.g., electrocardiogram machines, surgical instruments), and office essentials (e.g., computers, printers). 

Prioritize equipment based on immediate needs and budget constraints. Conduct thorough research to find reputable and reliable medical equipment suppliers. Look for suppliers that specialize in the specific type of equipment you need. Check their reputation, customer reviews, and certifications. Consider factors like warranty, after-sales service, and support. Request quotes from multiple suppliers to compare prices and negotiate better deals.

Your budget will determine whether you can afford new or used equipment. Most new equipment comes with warranties, advanced features, and the latest technology. Used equipment can be a cost-effective option, especially for non-specialized items. Ensure that any used equipment is in good working condition, has been properly serviced, and meets safety standards.

Recruit and Train Staff

Hire a competent and dedicated team to support your business. This includes nurses, medical assistants, receptionists, and administrative staff. Develop comprehensive training programs to ensure that your staff is knowledgeable, efficient, and compliant with medical protocols and regulations.

Plan Ongoing Business Management

It’s important to plan how your healthcare business will run before you launch. This might include the business management software you’ll use, like EHR software and medical billing, but also future and ongoing considerations. 

Create a plan for ongoing equipment maintenance and service. Regular maintenance helps ensure the longevity and optimal performance of your equipment. Consider purchasing service contracts or agreements that cover routine maintenance, repairs, and technical support. Maintain a schedule for equipment calibration, inspections, and updates as required.

Anticipate future growth and evolving technology in your medical specialty. Consider the scalability and compatibility of the equipment you purchase. Assess the potential need for additional equipment or upgrades in the future to accommodate changes in your healthcare business or advancements in medical technology.

Management Post-Launch

Establish a professional network.

Building relationships within the healthcare industry is crucial for the success of your business. Establish connections with local hospitals, specialists, laboratories, and healthcare facilities. Develop a referral network and collaborate with other healthcare professionals to provide comprehensive care to your patients.

Market Your Healthcare Business

Promote your healthcare business to attract patients and build a strong reputation. Create a professional website, list your business in online directories, and leverage social media platforms. Develop a marketing strategy that includes digital advertising, community engagement, and physician referrals.

Expectations Moving Forward

Starting a healthcare business is a complex endeavor, but with careful planning and attention to detail, it can be a rewarding experience. 

By following this guide and seeking professional advice when necessary, you’ll be well on your way to establishing a successful healthcare business that provides quality healthcare to your patients and contributes to the local community.

For support in running your healthcare business, from finding a medical director, establishing your legal structure, seeking continuing education, and more, Guardian MD is your perfect partner. We believe in supporting healthcare professionals across the United States. Guardian MD can minimize your risk and allow you to focus on what you do best. Schedule a discovery call to learn more about what we can do for you!

14 Reasons Why You Need a Business Plan

10 min. read

Updated May 10, 2024

There’s no question that starting and running a business is hard work. But it’s also incredibly rewarding. And, one of the most important things you can do to increase your chances of success is to have a business plan.

A business plan is a foundational document that is essential for any company, no matter the size or age. From attracting potential investors to keeping your business on track—a business plan helps you achieve important milestones and grow in the right direction.

A business plan isn’t just a document you put together once when starting your business. It’s a living, breathing guide for existing businesses – one that business owners should revisit and update regularly.

Unfortunately, writing a business plan is often a daunting task for potential entrepreneurs. So, do you really need a business plan? Is it really worth the investment of time and resources? Can’t you just wing it and skip the whole planning process?

Good questions. Here’s every reason why you need a business plan.

• 1. Business planning is proven to help you grow 30 percent faster

Writing a business plan isn’t about producing a document that accurately predicts the future of your company. The  process  of writing your plan is what’s important. Writing your plan and reviewing it regularly gives you a better window into what you need to do to achieve your goals and succeed. 

You don’t have to just take our word for it. Studies have  proven that companies that plan  and review their results regularly grow 30 percent faster. Beyond faster growth, research also shows that companies that plan actually perform better. They’re less likely to become one of those woeful failure statistics, or experience  cash flow crises  that threaten to close them down. 

• 2. Planning is a necessary part of the fundraising process

One of the top reasons to have a business plan is to make it easier to raise money for your business. Without a business plan, it’s difficult to know how much money you need to raise, how you will spend the money once you raise it, and what your budget should be.

Investors want to know that you have a solid plan in place – that your business is headed in the right direction and that there is long-term potential in your venture. 

A business plan shows that your business is serious and that there are clearly defined steps on how it aims to become successful. It also demonstrates that you have the necessary competence to make that vision a reality. 

Investors, partners, and creditors will want to see detailed financial forecasts for your business that shows how you plan to grow and how you plan on spending their money. 

• 3. Having a business plan minimizes your risk

When you’re just starting out, there’s so much you don’t know—about your customers, your competition, and even about operations. 

As a business owner, you signed up for some of that uncertainty when you started your business, but there’s a lot you can  do to reduce your risk . Creating and reviewing your business plan regularly is a great way to uncover your weak spots—the flaws, gaps, and assumptions you’ve made—and develop contingency plans. 

Your business plan will also help you define budgets and revenue goals. And, if you’re not meeting your goals, you can quickly adjust spending plans and create more realistic budgets to keep your business healthy.

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• 4. Crafts a roadmap to achieve important milestones

A business plan is like a roadmap for your business. It helps you set, track and reach business milestones. 

For your plan to function in this way, your business plan should first outline your company’s short- and long-term goals. You can then fill in the specific steps necessary to reach those goals. This ensures that you measure your progress (or lack thereof) and make necessary adjustments along the way to stay on track while avoiding costly detours.

In fact, one of the top reasons why new businesses fail is due to bad business planning. Combine this with inflexibility and you have a recipe for disaster.

And planning is not just for startups. Established businesses benefit greatly from revisiting their business plan. It keeps them on track, even when the global market rapidly shifts as we’ve seen in recent years.

• 5. A plan helps you figure out if your idea can become a business

To turn your idea into reality, you need to accurately assess the feasibility of your business idea.

You need to verify:

• If there is a market for your product or service
• Who your target audience is
• How you will gain an edge over the current competition
• If your business can run profitably

A business plan forces you to take a step back and look at your business objectively, which makes it far easier to make tough decisions down the road. Additionally, a business plan helps you to identify risks and opportunities early on, providing you with the necessary time to come up with strategies to address them properly.

Finally, a business plan helps you work through the nuts and bolts of how your business will work financially and if it can become sustainable over time.

6. You’ll make big spending decisions with confidence

As your business grows, you’ll have to figure out when to hire new employees, when to expand to a new location, or whether you can afford a major purchase. 

These are always major spending decisions, and if you’re regularly reviewing the forecasts you mapped out in your business plan, you’re going to have better information to use to make your decisions.

7. You’re more likely to catch critical cash flow challenges early

The other side of those major spending decisions is understanding and monitoring your business’s cash flow. Your  cash flow statement  is one of the three key financial statements you’ll put together for your business plan. (The other two are your  balance sheet  and your  income statement  (P&L). 

Reviewing your cash flow statement regularly as part of your regular business plan review will help you see potential cash flow challenges earlier so you can take action to avoid a cash crisis where you can’t pay your bills. 

• 8. Position your brand against the competition

Competitors are one of the factors that you need to take into account when starting a business. Luckily, competitive research is an integral part of writing a business plan. It encourages you to ask questions like:

• What is your competition doing well? What are they doing poorly?
• What can you do to set yourself apart?
• What can you learn from them?
• How can you make your business stand out?
• What key business areas can you outcompete?
• How can you identify your target market?

Finding answers to these questions helps you solidify a strategic market position and identify ways to differentiate yourself. It also proves to potential investors that you’ve done your homework and understand how to compete. 

• 9. Determines financial needs and revenue models

A vital part of starting a business is understanding what your expenses will be and how you will generate revenue to cover those expenses. Creating a business plan helps you do just that while also defining ongoing financial needs to keep in mind. 

Without a business model, it’s difficult to know whether your business idea will generate revenue. By detailing how you plan to make money, you can effectively assess the viability and scalability of your business. 

Understanding this early on can help you avoid unnecessary risks and start with the confidence that your business is set up to succeed.

• 10. Helps you think through your marketing strategy

A business plan is a great way to document your marketing plan. This will ensure that all of your marketing activities are aligned with your overall goals. After all, a business can’t grow without customers and you’ll need a strategy for acquiring those customers. 

Your business plan should include information about your target market, your marketing strategy, and your marketing budget. Detail things like how you plan to attract and retain customers, acquire new leads, how the digital marketing funnel will work, etc. 

Having a documented marketing plan will help you to automate business operations, stay on track and ensure that you’re making the most of your marketing dollars.

• 11. Clarifies your vision and ensures everyone is on the same page

In order to create a successful business, you need a clear vision and a plan for how you’re going to achieve it. This is all detailed with your mission statement, which defines the purpose of your business, and your personnel plan, which outlines the roles and responsibilities of current and future employees. Together, they establish the long-term vision you have in mind and who will need to be involved to get there. 

Additionally, your business plan is a great tool for getting your team in sync. Through consistent plan reviews, you can easily get everyone in your company on the same page and direct your workforce toward tasks that truly move the needle.

• 12. Future-proof your business

A business plan helps you to evaluate your current situation and make realistic projections for the future.

This is an essential step in growing your business, and it’s one that’s often overlooked. When you have a business plan in place, it’s easier to identify opportunities and make informed decisions based on data.

Therefore, it requires you to outline goals, strategies, and tactics to help the organization stay focused on what’s important.

By regularly revisiting your business plan, especially when the global market changes, you’ll be better equipped to handle whatever challenges come your way, and pivot faster.

You’ll also be in a better position to seize opportunities as they arise.

Further Reading: 5 fundamental principles of business planning

• 13. Tracks your progress and measures success

An often overlooked purpose of a business plan is as a tool to define success metrics. A key part of writing your plan involves pulling together a viable financial plan. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast.

By housing these financial metrics within your business plan, you suddenly have an easy way to relate your strategy to actual performance. You can track progress, measure results, and follow up on how the company is progressing. Without a plan, it’s almost impossible to gauge whether you’re on track or not.  

Additionally, by evaluating your successes and failures, you learn what works and what doesn’t and you can make necessary changes to your plan. In short, having a business plan gives you a framework for measuring your success. It also helps with building up a “lessons learned” knowledge database to avoid costly mistakes in the future.

• 14. Your business plan is an asset if you ever want to sell

Down the road, you might decide that you want to sell your business or position yourself for acquisition. Having a solid business plan is going to help you make the case for a higher valuation. Your business is likely to be worth more to a buyer if it’s easy for them to understand your business model, your target market, and your overall potential to grow and scale. 

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• Writing your business plan

By taking the time to create a business plan, you ensure that your business is heading in the right direction and that you have a roadmap to get there. We hope that this post has shown you just how important and valuable a business plan can be. While it may still seem daunting, the benefits far outweigh the time investment and learning curve for writing one. 

Luckily, you can write a plan in as little as 30 minutes. And there are plenty of excellent planning tools and business plan templates out there if you’re looking for more step-by-step guidance. Whatever it takes, write your plan and you’ll quickly see how useful it can be.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• 6. You’ll make big spending decisions with confidence
• 7. You’re more likely to catch critical cash flow challenges early

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The importance of a business plan

Business plans are like road maps: it’s possible to travel without one, but that will only increase the odds of getting lost along the way.

Owners with a business plan see growth 30% faster than those without one, and 71% of the fast-growing companies have business plans . Before we get into the thick of it, let’s define and go over what a business plan actually is.

What is a business plan?

A business plan is a 15-20 page document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, and finances. You should create one when you’re starting a new business and keep updating it as your business grows.

Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, small business owners often use business plans to help guide them. That’s because they help them see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success. ‍

Why is a business plan important?

A well-written business plan is an important tool because it gives entrepreneurs and small business owners, as well as their employees, the ability to lay out their goals and track their progress as their business begins to grow. Business planning should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.

Business plans typically include detailed information that can help improve your business’s chances of success, like:

• A market analysis : gathering information about factors and conditions that affect your industry
• Competitive analysis : evaluating the strengths and weaknesses of your competitors
• Customer segmentation : divide your customers into different groups based on specific characteristics to improve your marketing
• Marketing: using your research to advertise your business
• Logistics and operations plans : planning and executing the most efficient production process
• Cash flow projection : being prepared for how much money is going into and out of your business
• An overall path to long-term growth

What is the purpose of a business plan?

A business plan is like a map for small business owners, showing them where to go and how to get there. Its main purposes are to help you avoid risks, keep everyone on the same page, plan finances, check if your business idea is good, make operations smoother, and adapt to changes. It's a way for small business owners to plan, communicate, and stay on track toward their goals.

10 reasons why you need a business plan

I know what you’re thinking: “Do I really need a business plan? It sounds like a lot of work, plus I heard they’re outdated and I like figuring things out as I go...”.

The answer is: yes, you really do need a business plan! As entrepreneur Kevin J. Donaldson said, “Going into business without a business plan is like going on a mountain trek without a map or GPS support—you’ll eventually get lost and starve! Though it may sound tedious and time-consuming, business plans are critical to starting your business and setting yourself up for success.

To outline the importance of business plans and make the process sound less daunting, here are 10 reasons why you need one for your small business.

1. To help you with critical decisions

The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can’t always afford. That’s where a business plan comes in.

Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time.

Creating a robust business plan is a forcing function—you have to sit down and think about major components of your business before you get started, like your marketing strategy and what products you’ll sell. You answer many tough questions before they arise. And thinking deeply about your core strategies can also help you understand how those decisions will impact your broader strategy.

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2. To iron out the kinks

Putting together a business plan requires entrepreneurs to ask themselves a lot of hard questions and take the time to come up with well-researched and insightful answers. Even if the document itself were to disappear as soon as it’s completed, the practice of writing it helps to articulate your vision in realistic terms and better determine if there are any gaps in your strategy.

3. To avoid the big mistakes

Only about half of small businesses are still around to celebrate their fifth birthday . While there are many reasons why small businesses fail, many of the most common are purposefully addressed in business plans.

According to data from CB Insights , some of the most common reasons businesses fail include:

• No market need : No one wants what you’re selling.
• Lack of capital : Cash flow issues or businesses simply run out of money.
• Inadequate team : This underscores the importance of hiring the right people to help you run your business.
• Stiff competition : It’s tough to generate a steady profit when you have a lot of competitors in your space.
• Pricing : Some entrepreneurs price their products or services too high or too low—both scenarios can be a recipe for disaster.

The exercise of creating a business plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a product-market fit analysis , every piece of a business plan can help spot some of those potentially critical mistakes before they arise. For example, don’t be afraid to scrap an idea you really loved if it turns out there’s no market need. Be honest with yourself!

Get a jumpstart on your business plan by creating your own cash flow projection .

4. To prove the viability of the business

Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point.

Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.

A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.

Want to prove there’s a market gap? Here’s how you can get started with market research.

5. To set better objectives and benchmarks

Without a business plan, objectives often become arbitrary, without much rhyme or reason behind them. Having a business plan can help make those benchmarks more intentional and consequential. They can also help keep you accountable to your long-term vision and strategy, and gain insights into how your strategy is (or isn’t) coming together over time.

6. To communicate objectives and benchmarks

Whether you’re managing a team of 100 or a team of two, you can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps in the event that they can’t get an answer from you directly.

Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.

7. To provide a guide for service providers

Small businesses typically employ contractors , freelancers, and other professionals to help them with tasks like accounting , marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.

8. To secure financing

Did you know you’re 2.5x more likely to get funded if you have a business plan?If you’re planning on pitching to venture capitalists, borrowing from a bank, or are considering selling your company in the future, you’re likely going to need a business plan. After all, anyone that’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing.

Learn what you need to get a small business loan.

9. To better understand the broader landscape

No business is an island, and while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Writing a business plan can go a long way in helping you better understand your competition and the market you’re operating in more broadly, illuminate consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.

10. To reduce risk

Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living. Having a business plan allows you to leave less up to chance, make better decisions, and enjoy the clearest possible view of the future of your company.

Business plan FAQs

How does having a business plan help small business owners make better decisions.

Having a business plan supports small business owners in making smarter decisions by providing a structured framework to assess all parts of their businesses. It helps you foresee potential challenges, identify opportunities, and set clear objectives. Business plans help you make decisions across the board, including market strategies, financial management, resource allocation, and growth planning.

What industry-specific issues can business plans help tackle?

Business plans can address industry-specific challenges like regulatory compliance, technological advancements, market trends, and competitive landscape. For instance, in highly regulated industries like healthcare or finance, a comprehensive business plan can outline compliance measures and risk management strategies.

How can small business owners use their business plans to pitch investors or apply for loans?

In addition to attracting investors and securing financing, small business owners can leverage their business plans during pitches or loan applications by focusing on key elements that resonate with potential stakeholders. This includes highlighting market analysis, competitive advantages, revenue projections, and scalability plans. Presenting a well-researched and data-driven business plan demonstrates credibility and makes investors or lenders feel confident about your business’s potential health and growth.

Understanding the importance of a business plan

Now that you have a solid grasp on the “why” behind business plans, you can confidently move forward with creating your own.

Remember that a business plan will grow and evolve along with your business, so it’s an important part of your whole journey—not just the beginning.

Related Posts

Now that you’ve read up on the purpose of a business plan, check out our guide to help you get started.

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

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What Is A Healthcare Marketing Plan?

How we develop hospital, medical and dental marketing plans.

A marketing plan is not a list of marketing ideas from which you randomly select different concepts to test or combine for trial-and-error experimentation. That is just random, episodic, spaghetti-on-the-wall marketing activity - which is almost always a high-risk prescription for disappointment, frustration and failure.

A marketing plan is a strategic document that is designed to facilitate the achievement of specific business goals and objectives over a specific time period.

Would you consider hiring contractors to build out your new hospital, office or clinic without first developing and approving the architectural blueprints? Well, that's essentially what you are doing when you engage in random, reactionary marketing activities without first developing a well thought out marketing plan.

Most marketing plans are conceived to extend no longer than one year before the plan is reassessed for modifications, additions, subtractions or entire reinvention depending on constantly evolving business goals and circumstances. In fact, a properly implemented marketing plan is constantly being assessed by accurate and consistent tracking systems to evaluate the plan's performance against expectations. This continual evaluation is performed so that ongoing adjustments can be made to improve the plan's yield.

Benefits of a Marketing Plan

A good marketing plan allows you to anticipate, assess, prepare, build a road map to follow, cover-your-bases, construct necessary support systems, protect yourself and dramatically improve your chances for marketing success. A plan is an essential business tool for hospitals, medical groups or provider practices.

Critical Elements of a Marketing Plan

• Target Marketing - Establishing Target Customers
• Competition Analysis

SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)

SMART Goals

• Strategies and Tactics
• Marketing Budgets

Marketing System

Your marketing budget is going to be most effective when it reaches your selected target market. The benefit of target marketing is simple—efficiency. Solid target marketing is a method to more efficiently reach your customers*. Target marketing is a better use of your most valuable resources, i.e. time and money, to generate additional revenue.

(* In this website, we use the terms "patient" and "customer" interchangeably. We do this intentionally because it is vital that you and your staff think of and treat your patients AS customers and not simply as medical or dental charts and records. Apparently, this is easier said than done if you judge by the way most patients are often treated.)

Your goal is to get to know as much information as you can about your existing or prospective customers. The more you know about your customers, the better you will be able to make decisions that will enhance your ability to communicate and connect with them.

Who do you consider will benefit the most from your products and services? Think of the people and their most common characteristics and attributes. One of the best ways to identify your target market is to look at your existing customer base. Who are your ideal clients? What do they have in common? If you do not have an existing customer base, or if you are targeting a completely new audience, speculate on who they might be, based on their needs and the benefits they will receive. Investigate competitors or similar businesses in other markets to gain insight. Four Ways to Identify Target Markets

• Geographics: The location, size of the area, density, and climate zone of your customers.
• Demographics: The age, gender, income, family composition and size, occupation, and education of your customers.
• Psychographics: The general personality, behavior, life-style, rate of use, repetition of need, benefits sought, and loyalty characteristics of your customers.
• Behaviors: The needs and wants your customers seek to fulfill, the level of knowledge, information sources, attitude, use or response to a product of your customers.

One of the marketing fundamentals is focusing on benefits. This perspective is critical to target marketing. Establishing an intimate understanding about the needs and wants of your desired target market is critical. How will your customer benefit from using your services or products?

What tangible or intangible benefits might customers realize, and is it possible to quantify these benefits? What is your customer really buying? This much is certain: No one wants to buy surgery! Or dentistry! Or physical therapy! Or invasive procedures!

People purchase services and products (including healthcare services) to realize one or more of the following life-improvement benefits:

• Pain relief
• Productivity
• Personal relationships
• Peace of mind

Basically, you all sell the same product - a happier life. At least, that is what your customer wants to buy.

The Target Market Profile

The target market process allows us to break down these groups of people so we can better understand how to reach them. One way to do this is to create a target market profile. Here is an example of a target market profile:

1. Geographics:

• Lives within the ZIP codes 97401, 97402 and 97405.

2. Demographics:

• Between the ages of 21-35.
• At least one child.
• Condominium or home owner.
• Education experiences beyond high school.
• Earning a combined annual family income of $50,000 or greater.

3. Psychographics:

• Values time and considers it their single most limited resource.
• Excited about accepting and using innovative ideas and products.
• Consistent Web users. Prefer the Internet over magazines and newspapers for information they trust.
• Increasing resources invested into safety and security issues.
• Beginning to plan for their future.

4. Behaviors:

• They are leaders in product selection and respond to the opinions of the "industry experts" when making purchase decisions.
• This group will first look to the Internet to acquire this information.
• They defend these decisions under most any circumstance and will adamantly "sell" those that ask why they use the product or service and why they made the choice they did.
• This group can be a powerful, unpaid sales force resulting from the referral network they build and use.

Target marketing allows you to reach, create awareness in, and ultimately influence, that group of people most likely to select your products and services as a solution to their needs, while using fewer resources and generating greater returns.

The more detail you know about your "ideal" customers and clients, the better you will be able to make them aware of your products and services, and how to purchase them through you.

Target Audience Characteristics by Generation and Cohort

How much do you know about the characteristics and buying tendencies of specific groups that make up your target audience? One way that mass marketers evaluate their desired audiences is through the study of these generational groups.

A generational cohort has been defined as "the aggregation of individuals (within some population definition) who experience the same event within the same time interval" (Ryder, N., The cohort as a concept in the study of social change, presented at the 1959 annual meeting of the American Sociological Association). The notion of a group of people bound together by the sharing of the experience of common historical events was first introduced by Karl Mannheim in the early 1920s. Today the concept has found its way into popular culture through well known epitomes like "Baby Boomer" and "Gen-Xer".

Today we use the following descriptors for these cohorts. Different sources will provide different ranges of years that comprise each cohort, but the following information represents a reasonable cross-section of this information.

• Depression cohort (born from 1912 to 1921) o Memorable events : The Great Depression, high levels of unemployment, poverty, lack of creature comforts, financial uncertainty o Key characteristics: strive for financial security, risk averse, waste not want not attitude, strive for comfort
• WWII cohort (born from 1922 to 1927) o Memorable events: men leaving to go to war and many not returning, the personal experience of the war, women working in factories, focus on defeating a common enemy o Key characteristics: the nobility of sacrifice for the common good, patriotism, team player
• Post-war cohort (born from 1928 to 1945) o Memorable events: sustained economic growth, social tranquility, The Cold War, McCarthyism o Key characteristics: conformity, conservatism, traditional family values
• Baby Boomer cohort #1 (born from 1946 to 1954) o Memorable events: assassination of JFK, Robert Kennedy, and Martin Luther King, political unrest, walk on the moon, Vietnam War, anti-war protests, social experimentation, sexual freedom, civil rights movement, environmental movement, women's movement, protests and riots, experimentation with various intoxicating recreational substances o Key characteristics: experimental, individualism, free spirited, social cause oriented
• Baby Boomer cohort #2 (born from 1955 to 1964) (aka "Late Boomers" or "Generation Jones" or "Trailing Edge Boomers") o Memorable events: Watergate, Nixon resigns, The Brady Bunch, Twister, defeat in Vietnam, the oil embargo, raging inflation, gasoline shortages o Key characteristics: practical, pragmatic, less optimistic, distrust of government, general cynicism
• Generation X cohort (born from 1965 to 1976) o Memorable events: Challenger explosion, Iran-Contra, social malaise, Reaganomics, AIDS, safe sex, fall of Berlin Wall, single parent families o Key characteristics: quest for emotional security, independent, informality, entrepreneurial
• Generation Y cohort (born from 1977 to 1994) (aka Echo Boomers, Echo Generation, Millenium Generation) o Memorable events: rise of the Internet, 9-11 terrorist attack, cultural diversity, 2 wars in Iraq o Key characteristics: quest for physical security and safety, patriotism, heightened fears, acceptance of change

Success is not achieved by ignoring your competitors but rather by anticipating competitive issues and influences so you can always have a proactive plan and strategy for staying ahead of your competition. There are many ways to compile good research on your competition. Here we will list the easiest and most effective processes.

• Internet Competitive Research

Media Competitive research

Ear-to-the-ground Competitive Research

Analyzing Your Data

In today's Internet society, access to information has never been better or easier.

For the primary competitors you have already identified, you can conduct a simple Google search with the name of the health system, hospital facility, business, practice or the name of the owner(s) and that will usually lead you to their website. In many cases, their website will feature how they are attempting to position and differentiate themselves, as well as listing the scope of programs, services and/or products they offer.

In addition to a competitor's website, you may also find other interesting information about the provider(s) or the facility. This information might include articles they have authored, media interviews, legal actions that are public information, etc.

For a more comprehensive list of your competitors, you can do an Internet search by your profession or specialty and your area, just like a prospective patient might do. For example, if you type "plastic surgeons Los Angeles" you will draw up a search result that includes:

• sites that list plastic surgeons throughout the Los Angeles area
• "find a doctor" sites
• Yellow Pages online directory sites
• individual sites of some of your more sophisticated and aggressive Internet competitors who have managed to get a high search engine ranking for their website through effective search optimization.

In many cases, the compilation list sites include links to the individual websites.

There are many ways you can study your local media to get additional competitive information.

For example, even though Yellow Pages advertising has been impacted somewhat by increasing Internet marketing, you will still find the most aggressive marketing competitors through their large space display ads in your local Yellow Pages directories.

As with your competitive website research, you will learn from these Yellow Pages ads how your more ambitious competitors try to position and differentiate themselves, as well as the programs, services and products that they offer, their hours of operation, special features and benefits, emergency access, etc.

You can also scan and collect competitive advertising from local newspaper ads, direct mail, TV commercials, radio commercials, billboards or other media. When you pay more attention, you will also begin to notice any articles, publicity or other public relations exposure that your competitors may achieve in the media.

If you don't live in the area where you work, you can enlist the help of others who do live in the area. This group may include employees, friends, relatives or even your patients (assuming they are unquestionably loyal to you).

Often, this type of "in the field" sleuthing is the most effective way to gain competitive intelligence, especially from those competitors whose marketing is not advertising-based or visible in the media. You can - and should enlist a virtually army of "special agents" who are conditioned to have their ears to the ground for anything they hear or learn about your competitors.

This group includes pharmaceutical detail reps, vendors, loyal patients, hospital staff, your employees, friends and relatives. You may be surprised at how much information is available to you if you know how to uncover it.

When you ferret out valuable competitive research, you need to take advantage of what you learn. Success in business is about anticipation, planning and action. Business is not designed to be fair and 80% of the business will go to 20% of the players (The 80-20 Rule). The winners in that 20% group are able to anticipate, plan and take decisive action before their competitors even know what hit them.

Analyze your competitive research and put together your own decisive plan of action that is designed to put you (or keep you) at the top of the food chain.

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. A periodic evaluation of your internal and external environment is an important part of the strategic planning process. Because SWOTS are inherently subjective, it is always good to get an external SWOT analysis from a well-informed but objective third party that can be compared to your own SWOT.

Strengths and Weaknesses are the internal evaluation components of the SWOT. Opportunities and Threats comprise the external evaluation.

One of the more interesting definitions of marketing is that "Marketing is the process by which resources are brought to bear against opportunities and threats." In order to determine which resources you can bring to bear against opportunities and threats, you have to understand your strengths and weaknesses.

Strengths are your capabilities and resources that can be used as the basis for developing a competitive advantage.

Strengths could include:

• your special expertise and/or experience
• a new, innovative product or service
• location of your business
• quality processes and procedures
• any other aspect of your business that adds value to your product or service. Weaknesses include areas you need to improve and/or avoid. Weaknesses can sometimes be considered as the absence of certain strengths. In some cases, a weakness may actually be the flip side of one of your strengths.

Weaknesses could include: - lack of marketing expertise, plan or system (or all three) - undifferentiated products or services (i.e. in relation to your competitors) - location of your business - poor quality goods or services - damaged reputation In addition to new or significant trends or other opportunities you may already know, additional opportunities can spring up based on your external environment analysis. Opportunities could include:

• a developing market (such as the Internet)
• a new technology, service or procedure you can offer
• mergers, joint ventures or strategic alliances
• moving into new market segments that offer improved profits
• a market vacated by an ineffective competitor
• changes in population profile, social patterns, lifestyle changes, etc.

A threat could be anything that stands in the way of your success; miss or ignore these threats, often at great cost.

Threats could include:

• a new competitor in your home market
• price wars with competitors
• a competitor has a new, innovative product or service
• competitors have superior access to channels of distribution
• economic slowdown
• change in governmental policies and/or regulations
• changing insurance plans and/or contracts for major area employers Simple rules for successful SWOT analysis
• be realistic about the strengths and weaknesses of your facility, service line or practice
• analysis should distinguish between where your organization is today, and where it could be in the future
• be specific. Avoid gray areas.
• always analyze in relation to your competition i.e. better than or worse than your competition
• keep your SWOT short and simple. Avoid complexity and over analysis Once key issues have been identified, they feed into marketing goals. You can also apply SWOT analysis to your competitors. This may produce some interesting insights!

You are probably familiar with popular quotations like "You can't hit a target if you haven't even decided where to aim" or "You don't have to be great to get started, but you have to get started to be great."

Well, it may be familiar but it also happens to be true.

So many businesses fail to thrive because they have never really established SMART goals. SMART is used as an acronym in goal-setting discussions.

S =specific, significant, systematic, synergistic M =measurable, meaningful, motivational A =achievable, agreed-upon, action-based, accountable R =relevant, realistic, responsible, results-oriented, rewarding T =tangible, time-based, thoughtful

Long-term vs. Short-term goals

Most businesses that consider goals seriously establish both short-term and long-term goals. Marketing plans are generally real-time exercises in goal-achievement, so most marketing plans emphasize short-term goals (achievable within one year or less). Remember that marketing plans are organic, dynamic and constantly evolving, so they are well-suited to short-term goals.

If you are just establishing or reinventing your marketing system, you may also establish long-term goals in your initial marketing plan because you will need to include long-term system infrastructure in your initial marketing plan. However, with ongoing, year-to-year marketing plans, short-terms goals will typically be the primary focus. Marketing Strategies and Tactics

After you have identified your goals, you need to evaluate, prioritize and organize the combination of specific marketing strategies and tactics that will be best suited for you to use in pursuing your goals.

A well constructed marketing plan is a perfect illustration of a whole that is greater than the sum of its parts. The selected strategies and tactics work synergistically to complement one another for exponential positive results.

Goals vs. Strategies vs. Tactics

Goals are specific, measurable, achievable, relevant and tangible business objectives. (SMART, remember?)

Strategies are the ideas and approaches that are developed to achieve the goals.

Tactics are the specific actions, details and activities that must occur in order for the strategy to succeed.

Here's one good example of the relationship between goals, strategies and tactics. This example represents only a few of the possible strategies and tactics for the sample goal.

Goal: Increase new patient volume by 20% in the next year

Strategy: Improve patient experience to inspire more word-of-mouth referrals

Institute quarterly customer service training sessions for staff and owners Create incentive program for staff based on increased referral volume Devote one staff meeting per month to new ideas for improving patient

experience - Create and display framed posters in reception areas defining your unwavering patient satisfaction commitment

Strategy: Leverage relationships with established patients and improved patient experience for more word-of-mouth referrals

• Develop and institute new patient satisfaction survey. Leave space on survey for happy patients to refer others.
• Ask patients for referrals at opportune times (as appropriate)
• Staff supports owner(s) with additional encouragement to patients to refer when the opportunity presents itself
• Post "Thank You For Referring" bulletin board in reception area with names of patients who have referred others

Strategy: Develop and test targeted external advertising campaign

• Test new print ad series in local newspaper
• Test direct mail program to new residents using oversized postcard

In an optimally implemented marketing plan, all strategies and tactics are implemented comprehensively. At the very least, each strategy in your plan should be implemented in the same comprehensive and synergistic manner that it was conceived.

For a more detailed list of common strategies and tactics, review Marketing Strategies and Marketing Tactics.

Healthcare businesses establish budgets for various categories of operational expenses but rarely for marketing. Even those who frequently engage in marketing activities and expenditures will often have no pre-established budget for marketing.

Unless they develop and take advantage of the many benefits of an annual marketing plan, they determine their marketing expenditures on a case-by-case basis, a process consistent with random marketing activities.

Unfortunately, random financial decisions made out of context of a real strategic plan frequently yield disappointing results.

In a marketing plan, a pre-established and committed budget is essential to assuring the plan's viability. Remember, in establishing SMART goals, the "A" stands for "achievable" and the "R" stands for "realistic" (among other attributes). How can you know that you are developing an achievable and realistic plan if you don't know what budget resources you can or will commit?

Cost Centers vs. Revenue Centers

Most practice owners and hospital administrators put most of their focus on budgeting for operational cost centers. A cost center is an accounting term used to refer to a department in a business that incurs expenses but does not generate revenue directly.

Basically, your cost centers cover the expenses that are required to service and operate your business.

A revenue center, on the other hand, refers to departments and/or activities engaged in by the business that generate revenues directly into the business.

In other words, money in your business flows out of your cost centers and money flows in to your revenue centers (or should). Another way of understanding the relationship is that without sufficient revenue coming into the business, you will not be able to afford to fund your cost centers without operating in the red, which eventually leads you into the blackhole of bankruptcy.

Revenue centers also incur expenses for the specific purpose of stimulating and generating revenue into the business - unlike cost centers, which are required to operate the business but do not generate revenue directly.

Revenue Center Profit Influences vs. Cost Center Profit Influences

Because cost centers service the revenue generated by the business but don't contribute directly to that revenue, the key to increased profitability in cost center management is based on efficiency. The more efficiently the business functions to keep operating costs as low as possible without compromising quality, the more profit that is left at the end of the process.

Since most of the focus of owners, administrators and management is on cost centers, it is common for owners and managers to assume that keeping costs under control is the key to all profitability for the business.

To operate the business with this mentality is often a critical mistake because the cost center profitability model does not work for revenue centers. In fact, the exact opposite model applies to revenue center profitability.

Revenue centers require "fuel" in the form of investment capital in order to stimulate and generate the desired revenue. (The old axiom that "it takes money to make money" definitely applies here.) If you don't put enough fuel in your engine, you're going to run out of gas!

Marketing is a Revenue Center - NOT a Cost Center

Because marketing is primarily concerned with generating and protecting sources of revenue, a marketing budget belongs in a revenue center, not a cost center. Marketing budgets should be evaluated in the context of supporting your SMART goals.

If you don't have the financial resources or the willingness to commit them to this category of investment in the growth and/or protection of you, you may need to rethink your goals and possibly establish less ambitious objectives.

Marketing Budgets Based on Month-to-Month Cash Flow are NOT Budgets

Effective marketing is a consistent, ongoing process based on solid systems, good planning and excellent implementation. If you attempt to fund your marketing budget based on a month-to-month assessment of positive cash flow, you will find that you cannot maintain consistency in your marketing plan and your results will be seriously compromised - sometimes disastrously.

A marketing budget must be taken seriously as a financial commitment to your business success or your efforts will almost certainly be doomed to disappointment and failure.

Does this mean that you have to have your entire annual marketing budget secured in some separate account before you begin your implementation program? Not necessarily.

You may not have all of your necessary budget funding set aside when you start, but you have to know with confidence that you will have access to those funds as you need to utilize them without having to rely on the hope that your cash flow will be continuously positive enough to support your budget without compromise or interruption.

Budget Models

There are many different budgetary models you can consider. Here we list the most common, in order from the most highly recommended the decision makers who are serious about their goals to those models that are not recommended but do exist.

Objective and Task Budgets

This method is probably the "purest" budgeting method for a marketing plan. Here the budgeter must specify exactly what goals and outcomes are expected. Budgets are then based on this expected outcome. (For example, the primary objective could be to increase overall revenues by 20% over a 12-month period.)

The following steps are followed in developing an Objective and Task Budget:

a. Specify the marketing objective(s) to be achieved. Ideally, these goals must be quantifiable and measurable.

b. Specify the marketing strategies and tactics necessary to achieve the stated objectives (i.e., brand development or enhancement, advertising, public relations, networking, internal marketing, training, etc.) including quantity and frequency of activity and associated costs.

c. Evaluate profitability of marketing plan if goals are achieved at the expected costs.

c. Assuming profitability level is acceptable, assign budget based on anticipated costs associated with strategies and tactics necessary to achieve the goal.

d. Launch plan, monitoring and tracking closely to adjust strategies and tactics as necessary to achieve, maintain or exceed anticipated profit levels.

ROI-based Budgets

In this model, the marketing budget is established based on a ratio of anticipated return-on-investment for the budget and its associated marketing activities. The challenge in ROI-based budgets comes in identifying a reasonable expectation for return.

Most ROI-based budgets work from a source of quantified data on performance of similar marketing plans or activities in similar situations and circumstances to those of the budgeter. The difficulties in this model are a) limitations on availability of statistically meaningful comparative data; and b) there is no guarantee that the performance of the new budgeter's marketing plan will mirror those whose data was used for the ROI modeling.

There are many variables that affect the performance of a marketing plan which are difficult or impossible to measure and compare. These include personal initiative, attitude, sales skills, focus, etc.

Still, ROI-based budgets are employed in certain situations - assuming the data is available - where a marketer wants some level of reassurance, however unscientific, that the odds of success are in their favor.

Percentage Method

In using this method, the budgeter simply allots a predetermined percentage amount for marketing. That percentage might be a percentage of profits, a percentage of revenues, a percentage of sales, etc.

Although this method is easy to administer, there are some problems associated with it.

For example, how do you determine what percentage to assign for marketing? Is 5% too much? Is 2% too little? The assignment of a percentage is typically subjective or even arbitrary, based on advice of financial advisers, experience, "gut feel" or other factors.

Also, with this method, the marketing budget increases as profits, revenues or sales go up or are expected to go up. What happens to a new product with few sales? Also if there is a recessionary period, sales generally go down. If sales go down, advertising dollars also decline. In this situation, it may be wiser to increase marketing budget to generate additional market share and sales rather than letting the marketing budget have less financial support.

The percentage method of budgeting does not necessarily correspond to goal achievement, even if it worked successfully during a previous period.

Zero-based Budgets

A zero-based budget is one where you start with no predetermined or authorized funds. In a zero-based budget, each activity to be funded must be justified - or re-justified - each time a new budget is evaluated.

The problem with zero-based marketing budgets is that the basic concept of the model compromises consistency, which is essential for long-term success in marketing. For most small business owners, zero-based budgeting means that each marketing expenditure, even though previously assigned to the plan and marketing budget, is constantly being re-evaluated and re-justified as the money needs to be committed.

Most small business owners find it difficult or impossible to avoid second-guessing their previous commitments due to fear or financial strain of the moment or uncertain circumstances or any combination of these factors, most of which are constantly present in a small business environment.

Often, therefore, previously committed marketing activities and associated funding is withdrawn or reallocated. This interrupts or even destroys the consistency of the marketing effort and the chances for success of the plan as originally conceived.

SWAG Budgets

SWAG is defined variously as everything from "super wild ass guess" to "sophisticated wild ass guess" to "scientific wild ass guess" to "silly wild ass guess." Regardless of your preferred definition, please note the common words in all the variations.

SWAG budgets are anything BUT scientific. Usually, these budgets are based more of emotional beliefs, perceptions, misperceptions and comfort levels. Rarely and only accidentally do SWAG budgets have any relationship to success in achieving one's goals.

All-you-can-afford Budgets

In this method, the budgeter looks at the funds that remain after all other budgets have been developed. Whatever is left over is spent on marketing.

This is usually a model for disappointment and failure of the marketing plan because marketing has already been determined to be of relatively low importance and priority to the business.

On-the-fly Budgets

This is the most common method for assigning marketing costs in most small businesses - particularly in healthcare. It is also the most consistently unsuccessful.

On-the-fly budgets are not really budgets at all. Marketing expenditures are determined on a case-by-case basis as a marketing opportunity is identified. There is no real plan, no strategy - just reactive, spontaneous behavior. It is not difficult to understand why the margin for error is so high and the odds of success so low with this method.

The quality of implementation of a marketing plan is certainly as critical as the quality of the plan itself to the chances for a successful outcome.

While the success formula here may not exactly correspond to the Thomas Edison quote that "Genius is 1% inspiration and 99% perspiration," it is clear that effective implementation of a well conceived marketing plan is at least half the battle. Dramatic differences in the outcome of similar or identical marketing strategies and plans, executed in similar or identical situations, reinforces this reality.

Like so many other business processes, marketing implementation is far more successful with a solid marketing plan with the support of a structured system. We have the experience to create a highly effective strategic marketing plan . Call us today at 800-656-0907 , or connect with us here .

For additional reading:  What is a Marketing SYSTEM ? for extensive details on how to structure and manage a successful, ongoing implementation system to support your marketing plan and get the most yield from your efforts.

Marketing a healthcare organization can be challenging - even painful if you don't approach it with the right knowledge, tools, and guidance. By reading about mistakes and lessons others have learned the hard way, you can boost your marketing effectiveness and take a shortcut to success. Discover how to avoid these "Seven Deadly Sins". Plus, join over 30,000 of your fellow healthcare providers with a free subscription to our Insight Newsletter.

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Resources for Your Growing Business

The importance of business plan: 5 key reasons.

A key part of any business is its business plan. They can help define the goals of your business and help it reach success. A good business plan can also help you develop an adequate marketing strategy. There are a number of reasons all business owners need business plans, keep reading to learn more!

Here’s What We’ll Cover:

What Is a Business Plan?

5 reasons you need a well-written business plan, how do i make a business plan, key takeaways.

A business plan contains detailed information that can help determine its success. Some of this information can include the following:

• Market analysis
• Cash flow projection
• Competitive analysis
• Financial statements and financial projections
• An operating plan

A solid business plan is a good way to attract potential investors. It can also help you display to business partners that you have a successful business growing. In a competitive landscape, a formal business plan is your key to success.

Check out all of the biggest reasons you need a good business plan below.

1. To Secure Funding

Whether you’re seeking funding from a venture capitalist or a bank, you’ll need a business plan. Business plans are the foundation of a business. They tell the parties that you’re seeking funding from whether or not you’re worth investing in. If you need any sort of outside financing, you’ll need a good business plan to secure it.

2. Set and Communicate Goals

A business plan gives you a tangible way of reviewing your business goals. Business plans revolve around the present and the future. When you establish your goals and put them in writing, you’re more likely to reach them. A strong business plan includes these goals, and allows you to communicate them to investors and employees alike.

3. Prove Viability in the Market

While many businesses are born from passion, not many will last without an effective business plan. While a business concept may seem sound, things may change once the specifics are written down. Often, people who attempt to start a business without a plan will fail. This is because they don’t take into account all of the planning and funds needed to get a business off of the ground.

Market research is a large part of the business planning process. It lets you review your potential customers, as well as the competition, in your field. By understanding both you can set price points for products or services. Sometimes, it may not make sense to start a business based on the existing competition. Other times, market research can guide you to effective marketing strategies that others lack. To have a successful business, it has to be viable. A business plan will help you determine that.

4. They Help Owners Avoid Failure

Far too often, small businesses fail. Many times, this is due to the lack of a strong business plan. There are many reasons that small businesses fail, most of which can be avoided by developing a business plan. Some of them are listed below, which can be avoided by having a business plan:

• The market doesn’t need the business’s product or service
• The business didn’t take into account the amount of capital needed
• The market is oversaturated
• The prices set by the business are too high, pushing potential customers away

Any good business plan includes information to help business owners avoid these issues.

5. Business Plans Reduce Risk

Related to the last reason, business plans help reduce risk. A well-thought-out business plan helps reduce risky decisions. They help business owners make informed decisions based on the research they conduct. Any business owner can tell you that the most important part of their job is making critical decisions. A business plan that factors in all possible situations helps make those decisions.

Luckily, there are plenty of tools available to help you create a business plan. A simple search can lead you to helpful tools, like a business plan template . These are helpful, as they let you fill in the information as you go. Many of them provide basic instructions on how to create the business plan, as well.

If you plan on starting a business, you’ll need a business plan. They’re good for a vast number of things. Business plans help owners make informed decisions, as well as set goals and secure funding. Don’t put off putting together your business plan!

If you’re in the planning stages of your business, be sure to check out our resource hub . We have plenty of valuable resources and articles for you when you’re just getting started. Check it out today!

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Why Healthcare Professionals Need Business Skills

• 18 Oct 2018

The healthcare industry is undergoing considerable change. Today’s physicians face economic pressure to reduce costs while improving care—amidst a digital transformation that’s changing how and when patients seek treatment. Consider this: Individuals can now spot symptoms with an activity tracker and then video conference their doctor to more quickly reach a diagnosis.

“The complexities of delivering medical care are rapidly changing,” says Dr. Richard Pitts , vice president of clinically integrated networks and senior medical director at St. Joseph Heritage Healthcare, which is part of an 11-state, 50-hospital health system. “There’s a constant pressure to find more effective ways to deliver healthcare while improving quality and still holding the line on costs.”

But balancing those priorities requires more than just medical know-how. Healthcare professionals also need business skills if they want to deliver a high-quality patient experience while still meeting organizational goals.

“Paying attention to the best treatments, along with the cost of those treatments, requires both business and medical skills,” Pitts says.

It’s why Pitts enrolled in CORe , an online program featuring courses in business analytics , financial accounting , and economics . At the time, he was the chief medical officer at a large teaching hospital in Southern California and wanted to understand the business more broadly, so he could better understand the implications of his decisions and more effectively communicate with colleagues.

“CORe filled in the missing pieces with respect to my business skills,” Pitts says. “I’m now able to make meaningful business comments in meetings. Colleagues appreciate my having a basic understanding of the business world.”

Pitts uses population health—summarized by the Centers for Disease Control and Prevention as “the distribution of health outcomes within a population, and the range of personal, social, economic, and environmental factors that influence the distribution of health outcomes”—as an example of where business and medicine intersect. According to Pitts, there are nine major diagnoses, including diabetes and hypertension, in population health. When they are treated aggressively, it can result in a dramatic decrease in any associated complications.

“This saves unnecessary hospitalizations and billions of dollars of healthcare expense, while dramatically improving the quality of life for patients,” Pitts explains. “The professionals heading up this effort speak the language of business and medicine almost simultaneously.”

That example is just one of many ways healthcare professionals could benefit from having business skills. Here are five other competencies physicians should consider adding to their resume.

Business Skills Every Healthcare Professional Needs

1. analytics.

Analytics can help physicians identify disease outbreaks, track health epidemics in real time, and deliver more personalized care to patients. Achieving those goals requires developing a data mindset, however, and understanding how to recognize trends, analyze relationships between variables, and estimate the accuracy of statistics.

“My business analytics course covered regression analysis and, most importantly, the meaning of statistical significance and hypothesis testing,” Pitts says. “These are essentially the same tools that are used in healthcare to decide the outcomes of various treatments in medicine.”

2. Financial Accounting

Given how focused healthcare organizations are on reducing costs, it’s imperative for physicians to have a basic understanding of financial accounting . Not only can that knowledge lead to more strategic business decisions, but it can also help physicians analyze their team’s performance, measure the impact of their work in terms of revenue, and manage the department’s budget.

3. Ability to Lead Large, Diverse Teams

The health system Pitts works for is composed of 111,000 employees, 38,000 nurses, and 20,000 physicians alone—leading to large, diverse teams. And when faced with statistics like one in four Americans has multiple chronic conditions , it’s becoming more apparent that patients require care from multiple providers for optimal results.

The New England Journal of Medicine notes that physicians who want to lead effectively need to know how to “develop a team culture of feedback to improve patient care.” This includes understanding what motivates the team, regularly soliciting advice and incorporating suggestions, providing ongoing feedback, and acknowledging successes while constructively addressing the team’s weaknesses.

4. Strategic Management

As teams grow, so do departments’ needs and priorities. It’s important for leaders to set an organizational structure and strategy to not only guide their team but also help employees determine what to pursue and what not to pursue.

Physicians should start first with defining their mission—what the organization stands for—and then begin answering the tough questions. Where are revenues coming from? Is money being spent in the right places? How can the team optimize operations to improve the patient experience? With each response will come a clearer picture of where the team should focus their efforts.

5. Effective Communication Skills

Strong communication skills go far in healthcare. Physicians need to practice empathy and know how to properly speak with patients and their family members. Beyond that, they also need to communicate with key stakeholders, including other physicians. The more effective they are, the stronger their operations and more streamlined their processes will be.

The Importance of Business Skills

“It's important for physicians at all levels of leadership to have business skills, in order to be an effective member of ever-forming teams in the modern world of medicine,” Pitts says. “Having business skills helps to cross what often is a ‘chasm of understanding’ between physicians and finance members of the healthcare team.”

Do you want to take your career to the next level? Download our free Guide to Advancing Your Career with Essential Business Skills to learn how enhancing your business knowledge can help you make an impact on your organization and be competitive in the job market.

About the Author

How to Start a Healthcare Business: 8 Things to Plan For

Starting a healthcare business is a commendable and ambitious endeavor that can lead to rewarding outcomes, both personally and financially. As a potential franchise investor, you’re on the cusp of entering a sector that is not only lucrative but also plays a crucial role in the well-being of communities. However, navigating the complexities of the healthcare industry requires careful planning, a deep understanding of regulatory requirements, and a clear vision of the services you wish to provide. 

Get advice on how to start a healthcare business, from finding a business idea to getting customers and more.

Step 1: Conduct Thorough Market Research

Your journey begins with comprehensive market research. Understand the healthcare needs of your target demographic and identify current healthcare industry trends as well as gaps in the current market. Are there enough pediatric clinics in your area? Is there a demand for home healthcare services? This initial research will guide you in deciding the type of healthcare business that will thrive in your chosen location.

Step 2: Get Ideas for Your Healthcare Business

Inspiration for your healthcare business can come from various sources. Stay informed about the latest healthcare trends and innovations by attending industry conferences, participating in webinars, and subscribing to relevant publications. Networking with healthcare professionals and listening to the needs and complaints of patients can also spark ideas for services that are in demand but currently underserved.

Step 3: Acquire Necessary Skills and Credentials

The healthcare sector is highly regulated to ensure the safety and efficacy of services provided. Depending on your personal approach on how to start a healthcare business, you and your staff may need specific qualifications, certifications, or licenses. For instance, if you’re opening a medical clinic, hiring board-certified physicians and registered nurses will be essential. American Family Clinic does not require franchisees to have medical experience, but you will want to hire qualified and competent staff to run your clinic. Familiarize yourself with the credentialing process and start building a team of qualified professionals early on.

Step 4: Develop a Solid Business Plan

A thorough business plan is your roadmap to success. It should detail your business model, services offered, marketing strategies, financial projections, and operational plans. Your business plan will not only serve as a guide through the startup phase but also be crucial in securing funding from investors or lenders.

Step 5: Secure Financing

Part of figuring out how to set up a medical practice requires significant capital investment. Explore various financing options, including small business loans, grants, and investments from venture capitalists. Be prepared to present your business plan and demonstrate the potential for profitability to secure the necessary funds.

Step 6: Comply with Legal and Regulatory Requirements

Healthcare businesses must adhere to many laws and regulations, including licensing, privacy laws (such as HIPAA), and facility inspections. Engage a healthcare attorney to navigate these legal waters and ensure your business complies with all applicable regulations.

Step 7: Choose the Right Location

The success of your healthcare business can be heavily influenced by its location. Look for a site that is accessible, visible, and situated in an area with a demographic that matches your target market. Consider the competition and proximity to other healthcare providers as well. The leadership team at AFC works closely with franchise candidates to find the best locations in communities that can most benefit from our services. 

Step 8: Implement an Effective Marketing Strategy

Once your healthcare business is ready to launch, you’ll need to attract patients or clients. Develop a marketing strategy that includes both online and offline efforts. Utilize social media, search engine optimization (SEO), and community events to raise awareness of your services. Building partnerships with other healthcare providers can also be a valuable source of referrals. And if you do choose to join a franchise, you can lean on fellow franchisees for advice.

How AFC Stands Apart in Healthcare

As a leading name in urgent care, one of the fastest-growing healthcare segments, AFC offers qualified candidates a rewarding opportunity to join a recession-resistant industry that enriches communities and provides care to the people who need it the most. 

To learn more about what makes AFC a top name in healthcare, get started .

GET STARTED ON YOUR JOURNEY TO OWNING AN AFC HEALTHCARE CENTER.

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A Comprehensive Guide to Business Continuity and Disaster Recovery Plan

If a disaster strikes, a disruption in normal business operations can have a vast web of consequences. This is why businesses need a comprehensive emergency management plan, which means formulating a blueprint for business continuity and disaster recovery.  

Consider the Colonial Pipeline ransomware attack of 2021 . Although the $4.4 million dollar ransom was quickly paid to the hackers of the major American oil pipeline system, it took just hours for the consequences to become an emergency. Gas shortages plagued the Southeast U.S., flights were canceled, and President Biden declared a state of emergency two days after the attack occurred.

While this critical event is a stand-out example of a worst-case disaster scenario, any disruptive event that threatens a business’ critical functions can have cascading consequences.  

Table of Contents Business Continuity vs Disaster Recovery – What’s the Difference What a Business Continuity Plan Includes Why Business Continuity Plans and Disaster Recovery Plans are Crucial How to Build a Strong Business Continuity and Disaster Recovery Plan Steps of Building a Business Continuity and Disaster Recovery Plan Business Continuity Plans and Disaster Recovery Plans DartPoints Can Help Ensure Your Business Continuity Plan and Disaster Recovery Plan is Effective

All About Business Continuity and Disaster Recovery Plan   

A business continuity and disaster recovery plan is more than just having a rough outline of protecting critical data and critical business functions during an emergency. Instead, it’s a complex and detailed crisis management guide that targets both proactive strategies and all aspects of an organization’s ability to retain critical processes and return to normal business functions as soon as possible.  

A complete business continuity and disaster recovery plan, therefore, has multiple moving parts that can include: 

• data loss prevention   
• data recovery   
• protection of IT infrastructure,   
• the continuation of essential operations,   
• and a communications plan for personnel, business leaders, and business partners.  

A solid plan considers how critical operations and more routine business functions will be affected by different disaster scenarios, such as a cyberattack, natural disaster, or even power outages. It also includes a risk assessment and contingency plans if a specific type of disaster occurs.  

An expert in business continuity and disaster recovery like DartPoints can be an invaluable resource for business leaders when crafting a concrete plan. Our expert team can ensure there are no gaps in disaster recovery and optimally maintain operations if a disaster strikes.  

In the meantime, however, it’s helpful to know the fundamentals of what a business continuity and disaster recovery plan entails. Therefore, you can get a head start on protecting your IT systems, critical business processes, and data and can return to normal operations as soon as possible while limiting downtime.   

Business continuity vs disaster recovery – what’s the difference?  

Business continuity and disaster recovery are two terms that are often used interchangeably. However, there are some key differences in the specifics of business continuity and disaster recovery.   

The following guide outlines these differences in business continuity vs disaster recovery and what each distinctive type of strategy entails.  

Business continuity vs disaster recovery – What a Business Continuity Plan includes  

Business continuity focuses on the steps that an organization will take to return to normal business functions after a disaster strikes. A solid business continuity strategy is a broad approach because while other types of disaster plans may focus on one or more distinctive aspects of recovery and prevention (such as after natural disasters or cyberattacks), a typical business continuity plan aims to ensure that an organization can face as many different disasters or potential threats as possible.  

Business continuity vs disaster recovery – What a Disaster Recovery Plan includes  

Disaster recovery focuses on the details, as disaster recovery involves guidelines for how organizations will protect their IT systems and critical data during a natural disaster or other emergency event. Disaster recovery strategies can vary, but they tend to examine the technical and functional backbones of a company that will allow an organization to continue operations in case of a catastrophic event. This can include safeguarding IT systems and ensuring data protection as proactive measures, as well as steps for data recovery via a backup system and/or other initiatives.   

Business Continuity and Disaster Recovery Working Together  

Optimally, a business continuity and disaster recovery plan will work hand in hand and will be crafted together via a business continuity management team. While business continuity and disaster recovery plans can be approached separately, there is a trend towards practicing the two disciplines together to ensure all business leaders are on the same page. In today’s age, there is no debate between business continuity vs disaster recovery, but rather, business continuity plans and disaster recovery plans work together to keep a business running.  

Why business continuity plans and disaster recovery plans are crucial  

Business continuity plans and disaster recovery plans are essential for many reasons. A handful of these far-reaching benefits are as follows:  

Shortens downtime  

When a disaster interrupts business functioning, it can have an overlapping range of adverse effects. An inability for an organization to remain operational can lead to long-term financial losses, reputational damage, and impacts on customers, vendors, and other third parties. Simply put, the longer it takes for an organization to resume operations, the higher the cost to the business and its partners – both literally and regarding brand reputation and loyalty.  

Ensures financial security

As stated, a disaster can have substantial financial impacts which can linger well after an emergency. According to IBM’s Cost of Data Breach Report, the average cost of a data breach was $4.45 million in 2023, which was a 15% increase since 2020. However, organizations with solid business continuity plans and disaster recovery plans can minimize these costs and increase customer and investor/third-party confidence.  

Avoids legal or regulatory issues  

Data breaches and data loss can result in hefty penalties when private or critical data is leaked, especially for industries that deal with sensitive information on a regular basis. The financial and healthcare sectors are especially vulnerable to potential legal and regulatory fallout when a disaster strikes, and these sectors are heavily targeted by bad actors simply because their stored data is so valuable. As a result, having a strong business continuity and disaster recovery plan isn’t just a good idea for organizations that deal with sensitive data – it is likely required by the state, federal, or other governmental agencies that oversee these industries.  

How to build a strong business continuity and disaster recovery plan  

There are many strategies when it comes to creating business continuity plans and disaster recovery plans, and building business resilience is often an individualized venture.   

For example, a large healthcare organization’s data loss prevention steps will likely be more robust than a smaller retail shop or non-profit organization that does not deal with an astronomical amount of sensitive data.   

In addition, the details of a business continuity and disaster recovery plan will depend on various internal and external factors. One organization may be more susceptible to natural disasters due to its geographic location.  Therefore, their crisis management details will likely focus on the impacts of natural disasters, like power outages that shut down IT systems and other business processes. Internally, an organization’s distinctive IT systems and IT infrastructure will dictate the steps that need to be taken to prevent data loss, minimize disruptions, and restore data as needed.   

With these individualized requirements in mind, a solid business continuity and disaster recovery plan includes the following two objectives:  

• Recovery time objective (RTO) – Recovery time objective refers to the amount of time it takes to restore business processes after an emergency or other disaster. Establishing a reasonable Recovery time objective is one of the first things businesses need to do when they are creating a business continuity and/or a disaster recovery plan  
• Recovery point objective (RPO) – The recovery point objective (RPO) refers to the amount of lost data that can safely occur without impacting business operations. Since data protection is a core requirement for many organizations, having a data backup system that is constantly updated is crucial.   

The first steps of building a business continuity and disaster recovery plan  

Step 1 – Start with a business impact analysis  

A business impact analysis allows organizations to have a better understanding of the various threats that can impact business operations and how likely it is that these various threats will come to fruition.   

Essentially, the purpose of a business impact analysis is twofold. For this reason, identify the probability of a potential threat becoming realized and identify the financial and associated costs if the worst-case scenario occurs.  

Step 2 – Create potential responses for each identified threat  

Once you have a concrete understanding of the potential threats and their likelihood of occurring, it’s time to find solutions to ensure organizational resilience. Different types of threats – like natural disasters or cyberattacks – will often require varying and multi-pronged responses, so it’s essential to spell out these solutions in far-reaching detail for each potential risk.   

Step 3 – Assign roles and responsibilities for your disaster recovery team  

When a disaster strikes, everyone in your organization is affected, so it’s important to outline roles and responsibilities ahead of time.   

Ensure you have a solid disaster recovery team in place that will do the heavy lifting or partner with a disaster recovery expert like DartPoints. Our team has established methods of communication in place to keep everyone on the same page.   

When it comes to business continuity management, communication is the thread that connects all affected parties. Have varying messages for your disaster team members, personnel, business partners or vendors, and customers, and have effective ways to relay these messages that won’t be impacted by power outages or other issues that could potentially shut down your IT systems.  

Step 4. Rehearse, revise, and review your disaster recovery plans and business continuity plans  

Business continuity plans and disaster recovery plans are not stagnant, one-time creations.   

When an organization creates a plan, it’s essentially a first draft, as disaster recovery planning and business continuity planning should be a continual enterprise.  

The business continuity planning and disaster recovery planning you conduct now will address risk assessments and disaster recovery steps for the identified threats of the current moment, but what about the future?   

To be truly effective, organizations need to take their disaster recovery planning and business continuity planning to the next plateau by doing the following:  

• Rehearse – Put your disaster recovery planning into practice by having a few test incidents to ensure that your procedures are effective and result in continual business operations.  
• Revise – After your test cases, revise your disaster recovery planning and business continuity planning as needed to fill in any gaps or minimize disruptions and downtime further.  
• Review – Create a set schedule for reviewing your disaster recovery plans and business continuity plans and changing your risk assessments and responses as needed. New threats are always emerging, especially when it comes to sophisticated cyberattacks, so disaster recovery planning and business continuity planning should be a constant practice for your business leaders.  

The best business continuity plans and disaster recovery plans start with an expert resource  

When it comes to creating a comprehensive business continuity and disaster recovery plan, the best thing an organization can do is to start with an expert in disaster recovery and backup solutions.    

It is completely understandable that most organizations – especially smaller companies without a deep, in-house IT team – may not have the internal resources required to protect all aspects of their IT infrastructure or ensure a fast disaster recovery if multiple IT systems are affected.   

However, resuming normal business operations as quickly and efficiently as possible is crucial when it comes to disaster recovery.  This can’t be accomplished with minimal resources and/or a small and overworked disaster recovery team.  

DartPoints can help ensure your business continuity plan and disaster recovery plan is effective   

Extensive disaster recovery and business continuity planning can benefit organizations of all sizes, and an expert in disaster recovery like DartPoints can craft concrete blueprints that will ensure ample protection and minimize disruptions as much as possible.  

When it comes to ensuring business operations, don’t wait until after a disaster strikes to seek expert and professional assistance. Instead, start a conversation with the security and disaster recovery experts at DartPoints today to get a proactive head start on business continuity and disaster planning. By taking steps now to protect your organization, you can ensure peace of mind for a successful future for many years ahead.   

Contact us today!  

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Bitter pill to swallow: why walgreens stock is down 60% this year.

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Wakgreens logo is seen on a building in New York, United States of America, on July 6th, 2024. ... [+] (Photo by Beata Zawrzel/NurPhoto via Getty Images)

Walgreens stock shed 9% of its value yesterday - faring far worse than its peer CVS Health which lost 3%. This means that the stock is now trading at a level more than 60% below what it started the year at.

The recent selloff in the pharmacy retailer’s stock can primarily be attributed to the announcement of a direct-to-consumer telehealth and e-commerce platform by the pharmaceutical giant – Pfizer (NYSE: PFE) . [ 1 ] The new digital platform – PfizerForAll – is aimed at providing better access to healthcare for common illnesses. Consumers will end up saving more if prescribed with Pfizer medicines. Furthermore, Eli Lilly (NYSE: LLY) announced that it will cut the prices for certain doses of its popular obesity drug – Zepbound – if ordered directly from Eli Lilly’s e-commerce platform. The new pricing for these doses will be 50% cheaper than the other GLP-1 drugs in the market, although the reduced pricing won’t apply to the doses covered by insurance. [ 2 ]

Now, how does this impact Walgreens? Firstly, the telehealth service will directly compete with Walgreens’ traditional clinics managed by Summit Health. The footfall to these clinics will likely be impacted by easier telehealth assistance on Pfizer’s new platform. Furthermore, direct delivery of drugs will weigh on Walgreens’ retail pharmacy business. On the flip side, Pfizer’s platform may align the patients to Walgreens’ clinics or retail pharmacies for the administration of vaccines.

Walgreens has been focused on expanding its online and primary care offerings to aid revenue growth. The VillageMD acquisition in 2021 was a step in that direction. However, VillageMD had to shut operations at hundreds of clinics in an effort to cut costs and boost profitability. Walgreens also ended up recording a $5.8 billion impairment charge related to its VillageMD investment earlier this fiscal.

Coming to the update from Eli Lilly, given the significant discount for direct consumers to shop from Eli Lilly’s e-commerce platform, there will likely be an impact on Walgreens’ retail pharmacy sales. Now, Walgreens reports its sales under three segments – U.S. Retail Pharmacy, International, and U.S. Healthcare. These segments accounted for 79%, 16%, and 5% of the company’s total sales in fiscal 2023, respectively. With a likely decline in footfall at Walgreens’ stores amid these developments, it will likely weigh on sales of the company’s other products as well as its margin profile.

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Today’s nyt mini crossword clues and answers for wednesday, august 28th, trump staffers reportedly had physical altercation with arlington national cemetery official.

Overall, the updates from Pfizer and Eli Lilly don’t bode well for Walgreens. And it clearly didn’t sit well with investors as is evident from a 9% fall in its stock yesterday - taking the year-to-date returns to a whopping -63%.

WBA stock has suffered a sharp decline of 75% from levels of $40 in early January 2021 to around $10 now, vs. an increase of about 50% for the S&P 500 over this period. However, the decrease in WBA stock has been far from consistent. Returns for the stock were 31% in 2021, -28% in 2022, and -30% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 — indicating that WBA underperformed the S&P in 2022 and 2023.

In fact, consistently beating the S&P 500 — in good times and bad — has been difficult over recent years for individual stocks; for heavyweights in the Consumer Staples sector including IPAR, PG, and KO, and even for the megacap stars GOOG, TSLA, and MSFT. In contrast, the Trefis High Quality Portfolio , with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics .

Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could WBA face a similar situation as it did in 2022 and 2023 and underperform the S&P over the next 12 months — or will it see a recovery? We estimate Walgreens’ Valuation to be $12 per share, based on a 6x forward expected adjusted earnings of $2.17 in fiscal 2025, below the 9x average over the last four years. A decline in valuation multiple seems justified, given the bleak profitability outlook for Walgreens and the increased competition from direct e-commerce platforms.

WBA stock has been a falling knife lately and instead of weighing it on the merits of valuation, investors will likely be better off waiting for the recent events to play out. It will be interesting to see how the company performs in Q4 (Q4 for fiscal 2024 will end in August) and what the outlook for fiscal 2025 looks like.

While WBA stock has been on a decline, it is helpful to see how Walgreens’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons .

WBA Return Compared With Trefis Reinforced Portfolio

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What Is Cybersecurity Awareness Training? Why Your Business Needs it

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Organizations of all sizes are being targeted by bad actors, which is why cybersecurity awareness training is more important than ever. Unfortunately, most organizations are not motivated to implement such training. A study by IBM found that barely half (51%) of organizations that had already experienced a data breach in the past year planned to increase security investments such as employee training, threat detection, and response technologies.

Kara Sherrer , writing for TechRepublic Premium, explains what cybersecurity awareness training is and the top five reasons why your company needs to implement it. The guide also covers what to look for in a training program, how often you should conduct training, how much it might cost, and who needs to complete the training.

Featured text from the download:

WHAT TO LOOK FOR IN A CYBERSECURITY AWARENESS TRAINING PROGRAM

COURSE CONTENT

The actual content of the cybersecurity awareness training program is one of the most important factors that you should consider when designing or selecting a course. We’ll cover these topics in more detail in a future TechRepublic Premium piece, but for now, here are the highlights that you should look out for when vetting potential cyber awareness programs:

Phishing attack awareness and prevention.

Password and passphrase management.

Malware and ransomware basics.

Working remotely and securely.

Safe internet usage (both public and private Wi-Fi).

Hardware and mobile device management.

Email and attachment download tips.

Cloud-based security concerns.

Data protection and compliance.

Incident response and reporting procedures.

Strengthen your cybersecurity knowledge with our in-depth 10-page PDF. This is available for download at just $9. Alternatively, enjoy complimentary access with a Premium annual subscription .

TIME SAVED: Crafting this content required 20 hours of dedicated writing, editing, research, and design.

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Traveling over Labor Day weekend? Have a back-up plan for cancellations and delays, and be patient

More Americans are expected to travel domestically over the three-day Labor Day holiday with gas prices lower than last year, according to AAA booking data.

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Many children have gone back to school in the U.S., and the days are getting shorter, but there is still one more excuse to use the swimsuits and beach towels before packing them up: Labor Day .

Airports, highways, beaches and theme parks are expected to be packed for the long holiday weekend as a lot Americans mark the unofficial end of summer the same way they celebrated the season’s unofficial start: by traveling .

The Transportation Security Administration anticipates screening more than 17 million people between Thursday and next Wednesday — a record for the Labor Day period.

AAA says bookings for domestic travel are running 9% higher than last year for the holiday weekend, while international trips are down 4%.

American Airlines plans to have its largest Labor Day weekend operation ever and expects a 14% increase in passengers compared to last year.

If you are traveling to get a last blast of summer, here is a rundown of what you need to know.

Why Labor Day?

“Not everyone travels for Labor Day, not compared to July 4th or Thanksgiving — those are the most popular ones,” says Aixa Diaz, a spokesperson for AAA. “But certainly Labor Day offers people a way to get away for a final weekend of the summer. You’ve got people who are either taking the three-day weekend or perhaps taking off the whole week before Labor Day.”

What are prices like?

Motorists are getting a break on gasoline compared with last year. The nationwide average was recently $3.44 per gallon, compared to $3.86 a year ago, according to AAA.

For electric vehicles, the average price for a kilowatt of power at an L2 commercial charging station is about 34 cents. The average is under 25 cents in Kansas and Missouri but tops 40 cents in several states, including New Hampshire, Tennessee and Kentucky. Hawaii is the costliest, at 56 cents.

Average airfares in July were down 7.1% from June and 2.8% from July 2023, according to the government’s consumer price index. The trend appears to be accelerating as the peak summer-vacation season comes to an end.

“Now we’re falling into that traditional fall season when demand slumps, and you’re also seeing that in airfares,” said Steve Hafner , CEO of the travel metasearch site Kayak. “Airfares are down from the summer about 26% already, and they’re down even from the previous fall, about 4%.”

When is the best time to hit the road?

If you plan to start your drive on the Thursday or Friday before Labor Day, you will be sharing the road with commuters. You might want to leave before morning rush hour or even in the evening to avoid jams.

Transportation-data provider INRIX says the worst time to travel by car on Thursday will be between 1 p.m. and 7:30 p.m., and on Friday between 2 p.m. and 6 p.m. That flips on Saturday, when you’ll want to avoid driving between 8 a.m. and 11 a.m.

For the return trip, pretty much all day Monday — from 11 a.m. to 8 p.m. — will be a slog, according to INRIX.

And watch out for risky drivers. New data from Arity, part of insurance giant Allstate , indicates that speeding over 80 mph is up 83% and “very high speeding” — faster than 100 mph — is up more than 50%.

In a surprising twist, however, Arity says distracted driving has dropped on the last three Labor Days.

When will airports be busiest?

Friday, according to the TSA. The agency expects to screen 2.86 million people that day. While an impressive number, it would not even rank in the top 15 days in TSA’s history. The single-day record of 3.01 million was set on July 7, the Sunday after Independence Day.

TSA says it has enough screeners to keep the time it takes to get through regular lines to 30 minutes or less and to no more than 10 minutes for PreCheck lines.

American Airlines says Thursday and Friday will be its busiest days, with 6,400 flights per day, followed by Labor Day itself, when the carrier has 6,300 scheduled flights.

Officials at Seattle-Tacoma International Airport worked Monday to restore full service after what they called an apparent cyberattack over the weekend. Alaska Airlines and Delta Air Lines reported no flight disruptions, but airlines warned passengers not to check bags because the bag-sorting system was affected. AAA named Seattle the top Labor Day destination based on bookings.

What should I do if my flight is delayed or canceled?

First, check your itinerary before leaving for the airport. It’s better to be stuck at home than stranded at the airport.

If your flight is canceled, the airline might automatically rebook you. That might not be the best option.

“Get on the phone (to the airline’s help center), get in front of an agent, reach out to the airline via social media if you have to, but find out what the other options are,” says Julian Kheel, the founder and CEO of Points Path, a browser extension that lets users compare fares with deals available using frequent-flyer points. “You can almost always find another option that may work better than the one offered by the airline.”

Kheel said agents at the airport have more leeway to help, but they might be inundated if there are many canceled flights. DIY rebooking on the airline website or app might be faster, he said.

Phone tip: Some experts say if the airline has international help numbers, call one of those to get through more quickly than on the U.S. line.

What about refunds and reimbursement?

Airlines are required to provide refunds — including for extra fees paid — to passengers whose flights are canceled for any reason. However, they are not required to pay cash compensation, and no major U.S. airlines do. Only Alaska, Southwest and JetBlue even promise travel vouchers if the cancellation is their fault.

If you’re stuck overnight, ask the airline about covering the costs of a hotel, meals and ground transportation. All major U.S. airlines except Frontier promise to help with all three for “controllable” disruptions, according to the Transportation Department’s airline-policy dashboard . However, those commitments don’t apply to cancellations caused by weather.

Keep receipts for all out-of-pocket expenses in case you can file a claim later.

A few final tips

— Leave early. Everything will take longer than you expect, including getting through airport security. If you plan to park at the airport, make sure there will be spaces available when you arrive — many airports now post that information online.

— Watch the weather. Even if skies are clear at home, there could be storms at your flight’s destination or along your road route. Have a backup route.

— Be nice. Flight cancellations and bumper-to-bumper traffic are frustrating, but you won’t be the only one who is stuck. Customer-service agents are busy during peak travel periods, so it’s important to be patient and respectful while they try to help you.

Koenig reported from Dallas. Business Writer Wyatte Grantham-Philips in New York and video journalist Rick Gentilo in Washington contributed to this report.

Africa: Why the New Public Health Order is Essential for Africa's 2025-2027 Health Goals

Addis Ababa — African Centres for Disease Control and Prevention (Africa CDC) has remained vigilant throughout the year, despite an ongoing mpox epidemic across the continent. In early August, the WHO and Africa CDC declared an international health emergency after the  surge in cases associated with a new strain of mpox in the Democratic Republic of Congo . For Africa CDC, this declaration marks a significant milestone, as it aims to address the escalating crisis through a new public health order .

The Africa CDC organization hosted an editors' roundtable under the theme "Building a Strong and Effective Media Engagement Partnership for Africa CDC" aimed at fostering a stronger media engagement partnership to effectively communicate its mandate, strategic vision for 2023-2027, and the New Public Health Order. The roundtable gathered media stakeholders to discuss strategies for improving public awareness of the Africa CDC's role in protecting the health of the continent.

"Media play a fundamental role in managing health crises," according to Dr. Raji Tajudeen, Head of Public Health Institutes and Research.

"The COVID-19 pandemic and the mpox outbreak have shown us the significant impact of misinformation and disinformation. Media is now a critical pillar in emergency preparedness and response. Engaging the media effectively is essential for community involvement and outbreak control, as every disease outbreak starts and ends in the community. The diversity present here today, from across Africa and various institutions, highlights the wealth of perspectives and knowledge we can leverage in this workshop," he said.

"Drawing from our COVID-19 response experience, our goal is to develop a structured mechanism for collaboration, ensuring that information shared with Africa's 1.4 billion people is data-driven and evidence-based. With the upcoming UN General Assembly in September focusing on antimicrobial resistance - a critical issue impacting health and development in Africa - we must present a unified African position, as mandated by our leaders," said Dr. Tajudeen.

"Health cannot function in isolation. Over 70% of emerging and re-emerging infectious diseases today originate from animals," he said. "So we further underscore the need for the health sector to work closely with environment, agriculture, and other key sectors to be able to address some of these issues on the continent of Africa."

Margaret Muigai Edwin, Director of Communication and Public Information at the Africa CDC, discussed ongoing efforts to contain the mpox outbreak.

"We have a team in the DRC right now working closely with the Minister of Health," Muigai said. "We did come up with a strategic plan from 2023 to 2037 that would help address and accelerate the implementation of the new public health order. "Our vision," she said, "is to foster a safe, healthy, and prosperous Africa, where all 55 member states are equipped to prevent, detect, and respond effectively to health threats."

"The mission of Africa CDC is to strengthen African public health institutions and system capacity, capabilities, and partnerships. The aspiration is to become "a world-class institution that addresses and champions Africa's health security," setting the continent's public health agenda and leading coordinated efforts through the One Health approach," she said.

Health systems need to be strengthened across Africa, while proactive surveillance, intelligence gathering, and early warning systems need to be developed. Muigai identified these factors as key enablers. She said that efforts are being made to expand health product innovation through local manufacturing .

To achieve the Africa we want, we're implementing strategies outlined in Agenda 2063, the health strategy, and the new public health order.

Muigai said the guiding document shaping Africa CDC's work, includes the Agenda 2063 , which promotes "the Africa we want" through various strategies. The Africa Health Strategy and the New Public Health Order are central to their efforts, alongside the Sustainable Development Goals, the Maputo Plan for Action on maternal and child health, the Pharmaceutical Manufacturing Plan, and the Health Research and Innovation Strategy.

Africa's Bold Vision for Public Health

Africa Centres for Disease Control and Prevention launched its strategic plan in 2023 for enhancing surveillance, emergency response, and infectious disease prevention. The main goal was to strengthen Public Health Emergency Operation Centers (PHEOCs) in Africa and the Eastern Mediterranean region. The five-year strategic roadmap, spanning 2023 to 2027, outlined priorities to reinforce health surveillance systems and establish disease intelligence centers for more informed public health decisions. The plan is projected to be implemented in at least 50 African nations, significantly advancing health preparedness and response capabilities. The plan builds on the experiences and lessons from the first strategic plan (2017-2021), incorporating organizational assessments and successful regional health initiatives across the continent. The New Public Health Order for Africa is designed to lay out a plan for developing a self-reliant public health system and correcting past mistakes.

"The new public health order in Africa's strategy for 2025-2027 is crucial for several reasons. It aims to ensure the continuous strengthening of health systems across the continent, which faces more frequent outbreaks than other regions," said Munyaradzi Makoni, a Senior Advisor and Science Writer at Africa CDC.

"These documents must be in place to make sure that there is a need to continuously strengthen the health systems across the continent," said Makoni. "Africa is one continent that faces several outbreaks every year as compared to other continents in the world."

"To address these challenges effectively, there is a critical need for strong surveillance, intelligence gathering, and early warning systems," he said. "Africa CDC is actively supporting African countries in establishing their own emergency cooperation centers to enhance surveillance efforts. Robust emergency preparedness and response capabilities, along with the expansion of clinical and public health laboratory systems, are also crucial."

"One significant area of focus is the integration of the One Health approach, which considers the interconnectedness of human, animal, and environmental health. Africa CDC is working to expand knowledge and practices in this area, recognizing that many institutions and laboratories have yet to fully integrate One Health into their operations. There is a pressing need for the industrialization of health products, technology, innovation, and manufacturing.

"Based on lessons learned from past crises such as Ebola, Lassa fever, and mpox outbreaks, the strategy emphasizes equitable and just public health landscapes, strong local leadership, and innovation. In addition, it calls for significant investments in public health infrastructure to promote self-reliance, a need highlighted during the COVID-19 pandemic, which revealed flaws and underfunding in Africa's health systems."

He said that some countries already benefit from infrastructure set up during COVID-19 when it comes to maintaining resilient health systems during and after crises.

The Africa CDC works through several divisions to accomplish the goals outlined in its strategic document, including Public Health Institutes and Research, Control and Prevention, Policy and Health Diplomacy, Communication and Public Information, Management and Administration, Emergency Operations, Laboratory Systems and Networks, Preparedness and Response, Partnerships for African Vaccine Manufacturing, Science Office, Institute of Pathogen Genomics, Institute for Workforce Development, and the Journal of Public Health in Africa hosted in South Africa.

From Import to Invent

"Local manufacturing is one of the pillars of excellence for Africa CDC, aimed at enhancing Africa's ability to operate independently," said Yared Yiegezu Zegiorgis, a Senior Research Data Analyst at Africa CDC. "As part of the 2063 Agenda, which calls for a new public health order, local manufacturing is a key pillar," he said. "During the peak of the COVID-19 pandemic, the continent faced limited access to available vaccines and related input materials. This situation led to the establishment of Partnerships for African Vaccine Manufacturing (PAVM) in April 2021, to enable Africa to develop, produce, and supply over 60% of its vaccine needs by 2040, up from just 1%."

"We have an ambitious target to meet 30% of the continent's demand by 2030," said Zegiorgis. "To achieve this, PAVM has developed a strategy called the Framework for Action, which outlines the roadmap for this initiative. The PAVM taskforce has identified eight bold programs, including market design, access to finance, regulatory strengthening, technology transfer,  research and development ( R&D), and talent development."

"Currently, Africa produces only 30% of its pharmaceutical demand, meaning over 70% is imported," he said. "Even within this 30%, production is concentrated in just eight countries, and our energy capabilities are under 2%. When it comes to vaccines, the situation is even worse, with only 1% being produced locally, and this capacity is limited to five countries - Ghana, South Africa, Senegal, Botswana, and Rwanda - mostly focused on fill-and-finish operations."

A majority of vaccines are publicly funded and supplied through GAVI , a global alliance of nearly 40 countries that supports developing countries' vaccine access.

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"In the past two years, we've supported about five frontrunner companies by conducting gap assessments and providing resources based on the identified needs," said Zegiorgis. "For example, in South Africa, we've supplied medical and lab equipment essential. We're currently reviewing documents from other companies in the second batch and organizing resources to support them as well."

"Our recent assessment revealed that there are 23 vaccine manufacturing facilities in different stages, with nine frontrunner manufacturers ready to produce their final products. Over the next two to three years, from 2024 to 2026, we expect to see 808 vaccines produced by African manufacturers."

Africa CDC, Bavarian Nordic Team Up

Danish biotech company, Bavarian Nordic, has joined forces with Africa CDC to create capacity within Africa for vaccine manufacturing. This partnership will ensure that 2 million doses of vaccine will be available this year, on top of existing orders.

This move is seen as critical for the continent's health security.

"Africa CDC is taking strategic steps to advance vaccine production in Africa, beginning with technology transfer initiatives," said Zegiorgis. "We need to enable technology transfer, but it's logical to start with fill-and-finish production."

Currently, Bavarian Nordic produces over 15 million doses annually, and Africa CDC views this partnership as pivotal.

"Bavarian is ready to support African manufacturers," he said. "This collaboration is seen as a critical action point, especially as Africa CDC looks to secure an additional two million doses this year, building on the 10 million already required."

This collaboration aligns with the African Union's expanded mandate for Africa CDC, which now includes not just vaccines but also diagnostics and therapeutics. The initiative rebranded as the Platform for Immunized African-Based Manufacturing (PHARM), reflects a broader commitment to health self-sufficiency. Kenyan President William Ruto, appointed as the champion for local manufacturing, underscores this commitment by leading efforts to build pharmaceutical capabilities across the continent.

"Together we can realize our ambitious target," said Zegiorgis.

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Planning To Buy A Health Insurance Plan? Step-By-Step Guide

Edited By: Aparna Deb

Trending Desk

Last Updated: August 28, 2024, 14:09 IST

New Delhi, India

Health Insurance

Health insurance plays a crucial role in protecting your finances as it covers expensive hospital and surgery costs

Health insurance plays a crucial role in protecting your finances as it covers expensive hospital and surgery costs, whether they are planned or emergencies. Looking at the rising medical expense, having the right health insurance plan can prevent unexpected bills from disrupting your budget or draining your savings. However, many struggle with choosing the right plan due to the number of options available. Due to which, they end up selecting a policy without fully understanding if it meets their requirement.

In this article we’ll guide you on how to choose the right plan, what features and benefits to look for:

1 – Ensure your plan covers a variety of medical conditions, including ambulance charges, pre existing illnesses, maternity benefits, cashless treatment and daily hospital charges. If you’re buying for your family, verify that the policy fits everyone’s needs. Compare plans, paying attention to the features and any hidden limits is crucial to avoid problems during the actual emergency.

2 – When selecting a family health plan, confirm that you can easily add new members. If a key family member is no longer covered, the rest of the family should still benefit from the plan without losing its advantages.

3 – Health insurance often includes a waiting period before covering pre-existing conditions or any other specific treatments. This waiting time depends on the plan. Make sure you know how long you’ll need to wait before these are covered and pick a plan with a shorter waiting period if possible.

4 – Ensure the plan offers lifetime renewability. This means you can renew the policy without purchasing a new one at a higher cost as you grow older. Without lifetime renewability, you might need to switch plans later.

5 – Your insurance plan may specify the type of room you can use during hospitalization, such as private, semi private or shared. Choose a plan with a higher room rent limit to avoid paying extra from your own pocket if you prefer more privacy.

6 – When choosing a health insurance policy, think about the tax advantages it offers. You can claim tax deductions on the premiums you pay, which can range from Rs 25,000 to Rs 75,000 based on your policy type. For a family floater plan, if your parents are over 60 years old, you can claim up to Rs 50,000 annually. For parents over 75 years old, the benefit can go up to Rs 75,000. If the policy is for someone under 60, the tax benefit is up to Rs 25,000.

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