Starting your own practice is a huge undertaking. Even the most organized and motivated physicians can make simple missteps that further complicate the process. Luckily, Bankers Healthcare Group is here to help. We have extensive experience working with medical startups. Learn how to start a medical practice while avoiding the common startup pitfalls outlined below, and reach out to one of our experts to learn how our Business Startup Loans can help you get ahead.
Misjudging your timeline
Whether you’re right out of medical school or an established physician striking out on your own, not giving yourself enough time to properly plan for and open your practice can be a devastating mistake. It’s important to remember that you’re not just working on your own timeline. You have to coordinate with vendors, landlords, lawyers, and many other organizations and people who may not be able to move as quickly as you can to get your practice up and running. Allow yourself plenty of extra time to account for everyone you need to coordinate with, as well as any unexpected bumps in the road.
Choosing the wrong loans (or the wrong lender)
There’s no way around it, starting a medical practice is expensive. Most people starting up a practice will need to work closely with a lender to get the funding they need. It’s advantageous to work with a lender who is experienced in the healthcare field because they can offer their expertise to your unique situation and make sure you have the funds you need in the right time frame for your business.
Hiring the wrong people
Hiring can be an incredibly tough part of starting your own practice, particularly if you’re not experienced. It’s important to do your homework and learn everything you can about your potential employees. Hiring the wrong person can end up being a costly mistake. When you factor in wages, time spent on training and workflow disruptions, having to let an employee go and hire someone new can put a huge hole in your budget. If you’re unsure how to choose qualified candidates, consider partnering with an HR consultant for assistance. The initial investment will pay off in the long run when you end up with a qualified, motivated employee who will benefit your practice for years to come.
Not prioritizing billing
Billing is one of those things that many physicians think they can either take on themselves or tack on as an additional responsibility for a receptionist or someone else within the practice. Billing can be extraordinarily complicated, and can take up a lot of time. Even small errors in billing and accounting can add up and cost you a lot of money in the long run. It’s important to hire someone with extensive experience, and to invest in the software they need to succeed. This is another instance where a larger initial investment can have a long-term payoff.
We’ve worked with many healthcare professionals who have started their own practices. Based on those experiences, two major factors that can set you on the right path are devising a detailed plan and ensuring you have the funds you need when you need them.