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V1.1 \ December 2017

Business Plan Template and Guide

for General Practices

Date

Contents

Acknowledgements........................................................................................................................1

Disclaimer......................................................................................................................................1

References....................................................................................................................................1

Business plan................................................................................................................................2

Introduction....................................................................................................................................3

Purpose of the business plan........................................................................................................4

Summary.......................................................................................................................................5

The practice...................................................................................................................................6

Mission statement......................................................................................................................6

Business objectives....................................................................................................................6

Values........................................................................................................................................7

Description of business activity..................................................................................................8

Industry analysis......................................................................................................................11

Financial analysis.....................................................................................................................12

Strengths, weaknesses, opportunities and threats analysis....................................................17

Operational strategy.................................................................................................................18

Appendices..................................................................................................................................30

Appendix 1...................................................................................................................................31

Values activity – determining your practice values..................................................................31

Acknowledgements This document has been reproduced and adapted with the kind permission of the Small Business Development Corporation of Western Australia.

The Small Business Development Corporation (SBDC) is a West Australian State Government agency focused on the development of the small business sector. The SBDC is committed to:

Championing the cause of small business. Developing programs and services to meet the needs of small business development. Establishing and strengthening relationships between SBDC and key agencies (public and private

sector). Maintaining and enhancing the independence, innovation and responsiveness of SBDC.

For more information on the services provided by the Small Business Development Corporation of Western Australia please visit www.smallbusiness.wa.gov.au

DisclaimerThis document is a guide only and is to be followed subject to the judgment of the user. Whilst all care has been taken in its preparation, the distributor will not be held liable for any losses or damage that may occur in applying the information contained within the document. The distributor assumes no responsibility for the contents of any websites listed.

ReferencesSmall Business Development Corporation of Western AustraliaAustralian Government Department of Health The Royal Australian College of General PractitionersAustralian Medical Workforce Advisory Committee

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Page 2 Practice Assist | Business Plan Template and Guide for General Practices

IntroductionThis Business Plan Template and Guide has been designed to step you through the process of developing a business plan that is solid, well-structured and tailored to general practices within Australia.

The business plan is a document that you supply to external stakeholders, such as lenders and investors, to translate your idea into a viable business; or as an internal document for practice staff as a ‘roadmap’ to organisational goals.

A good business plan can help your practice secure finance, define the direction of your business and create strategies to achieve your goals. The document is designed as a template for you to work through. Writing and researching for your business plan gives you the chance to:

Learn about your industry, market and competitors. Write down exactly where you are in the market and where you are headed. Identify challenges you may come across and work out strategies to avoid or overcome them. Understand your business finances, including managing cash-flow and determining your break-even

point. Set specific goals, timeframes for achieving them and how you will measure performance. Make sound business decisions that focus your activities, maximise your resources and give you a

competitive edge. It will be necessary to review and update the business plan on a regular basis as the practice grows and

changes.


Purpose of the business planExplain why you are writing the plan:

As a management tool? An operational guide for the practice? To secure finance? To set the strategic business direction?

If the plan is intended to support an application for finance, state the name of the bank or other financier to whom the application is being made, the amount of finance being applied for, the term of the loan and the security you will be providing the bank. State what the loan will be used for and how it will be repaid, for example, from additional revenue generated as a result of borrowing the money.


SummaryAlthough it appears at the beginning of the plan, the summary is usually written last. It provides a broad overview of your practice and what distinguishes your services from your competitors. It may include a statement about your business values and ethics along with your key objectives and any critical factors to the success of your business venture. Try to keep the summary to around a page and a half, and include a brief overview of the following:

The practice and its doctors; The services on offer, the benefits they provide, and the demographics of patients; The practice’s overall objectives; The operational performance (if already operating) stating income, profits and margins; and Key figures from the financial forecasts.

Also, remember to date the plan and note the author.


The practice

Mission statementA mission statement is aimed at your patients, stakeholders, staff and the greater community. It should sum up, in simple terms, your practice purpose – for example: what you do, how you do it and why. Try to contain your mission to one or two sentences.

For example:

Our mission is to provide the highest standard of patient care incorporating a holistic approach toward diagnosis and management of illness.

This practice is committed to promoting health, wellbeing and disease prevention to all patients. We do not discriminate in the provision of excellent care and aim to treat all patients with due respect.

Business objectivesBusiness objectives define what the practice is aiming to achieve.

Your objectives should be measurable and include a mix of short and long-term goals.

For example:

<Name of practice> will develop the practice into a patient centred medical home by creating an integrated multi-disciplinary care environment.

<Name of practice> will expand the practice’s infrastructure to accommodate a range of allied health providers within the premises.

<Name of practice> will provide accessible and affordable services that are responsive to the needs of the local Aboriginal and Torres Strait Islander people and are culturally appropriate.

<Name of practice> will create a learning environment focussed on training the next generation of doctors to provide high quality medicine.

<Name of practice> will create a working environment and conditions which attract and retain our general practitioner workforce.

<Name of practice> will implement contemporary business practises to drive the development of the practice and deliver sustainable financial outcomes.

<Name of practice> will develop a succession plan and implement the changes necessary to make the practice an attractive and viable investment for the next generation of principals.

If starting a new business, it is a good idea to include your personal objectives in this section which should underpin your reasons for going into business. This is also where you outline your succession objectives for the practice which may include passing the practice on to your partners, registrars, seeking investors or selling the operation to fund your retirement.

Consider how your succession objectives fit with your business and personal objectives.


ValuesThe core values of any business provide the foundation for decision making, directing behaviour and defining its culture. Values are much more than a set of nice words. The words capture the heart of the business and describe the ideals of the business, as it aims to achieve its objectives.

Every important decision made in a business should be congruent with the business’ core values. The behaviours and attitudes of the people working in the business should reflect the core values of the business.

Value statements are useful for branding the business’ values to key stakeholders including patients, staff and the community. The values should be qualified by a statement of intent and examples of behaviours that demonstrate those values in action.

Value statements

<Value>

<Statement of intent>

<Behaviours> Behaviour 1 Behaviour 2

For example:

Respect [Value]

[Statement of intent] Our relationships are built on the highest level of trust and respect.

[Behaviour 1] The interactions of doctors and staff demonstrate trust and respect. [Behaviour 2] Respect is shown to all patients. All patients are treated to exceptional service. [Behaviour 3] Respect is granted to any person who enters the practice including patients, suppliers,

pharmaceutical representatives.

See Appendix 1 for a Values Activity that you may wish to complete at your practice.


Description of business activityType in here a concise description of the practice including what type of services it provides and to what type of market.

For example:

<Name of Practice> is a general practice. We provide person centred, continuing, comprehensive and coordinated whole person health care to individuals and families in our community. (Royal Australian Collegeof General Practitioners).

Commencement date

Type in here when the practice commenced/or is going to commence operating.

Business structure

State here which legal structure the practice operates under, that is, sole trader, partnership, company or trust. List the name of the sole trader, or the partners, or the company’s shareholders and directors – whichever is applicable.

Outline the rationale behind choosing this structure and how the structure will support your business objectives.

You may also wish to include any plans for a change in structure down the track, eg, from sole trader to company – depending on the level of growth you are expecting to see over time.

If operating as a trust, state the name of the trustee and the unit-holders (if a unit trust) or the beneficiaries (if a discretionary trust).

If the structure is complex you might want to include a diagram.

For more information about business structure, go to the Business Structures section of the Small Business Development Corporation website at www.smallbusiness.wa.gov.au/business-structures

Owner or owners’ profiles

If you will be using your plan as a tool for obtaining finance or investment, most banks and potential investors will want assurance that the people responsible for running the practice are qualified and competent.

Provide an overview of your expertise along with any special skills, industry knowledge and experience you bring to the practice. Include any formal qualifications along with specific training you have undertaken, or plan to undertake in the future.

Highlight any prior successes you have had in running a practice.

Be sure to include the relevant details for each owner along with the relevant skills and attributes of any senior managers or key personnel such as your practice manager.


http://www.smallbusiness.wa.gov.au/business-structures

Accreditation status

Provide details of accreditation status by detailing:

Inaugural accreditation date

Current accreditation status

Accreditation expiry date

Licences and registrations

Provide a list of any licences and registrations that the practice holds. For example:

The practice holds the following licences:

Poisons permit for Schedule 8 drugs

Pharmacy dispensing licence

Current performance

Provide key figures under this heading – more detailed information is provided in the financial section of the business plan.

If your practice is a start-up, base this section on your financial projections.

For the period (for example 1 July 2017 to 30 June 2018):

Revenue $

Expenses $

Net profit $


Business advisors

Potential investors and/or partners will want confirmation that the practice is supported by a professional team of qualified advisers such as accountants, solicitors, bankers, insurance brokers and relevant medical associations.

Include the business name and address of each contact along with any professional memberships you hold which may include chambers of commerce, various institutes and medical associations.

Business advisors Contact details

Banker (Name)(Address)(Address)(Telephone and facsimile numbers)(Email address and website)

Accountant (Name)(Address)(Address)(Telephone and fax numbers)(Email address and website)

Lawyer (Name)(Address)(Address)(Telephone and fax numbers)(Email address and website)

Insurance broker (Name)(Address)(Address)(Telephone and fax numbers)(Email address and website)

Advisors (Name)(Address)(Address)(Telephone and fax numbers)(Email address and website)

Industry associations (Name)(Address)(Address)(Telephone and fax numbers)(Email address and website)


Industry analysisWhat are the trends in the external environment which may affect your business?

Political

Examples – only address those which apply to your situation:

Government leadership and political stability. State and federal elections. Employment laws. Industrial relations unrest. New or proposed government policies, regulations and laws.

Economic


State and national economic growth. Interest rates and inflation. Unemployment rates. Skills shortages.

Social


Demographics – aging population, lower birth rates, and community cultures. Trends. Work/family balance. Attitudes towards health and safety. Standards of living/local economy.

Technological


New inventions. Efficiencies available. Costs. Life cycle and speed of technological obsolescence. Support and training available.

Industry scan

This is where you provide an overview of the medical industry and a summary of your practice’s position within that industry.

Include details about the size of your practice, the catchment area and its population, any other key health providers in that area, the level of growth it is experiencing and any significant trends that have affected its performance, or are likely to in the future.

What are leading peers doing to manage the environment?


Competition

Here is where you explain how your practice fits within the industry, including details about your point of difference, the competition, your expected share of the patient population, any possible barriers for patient access to your practice and how you plan to address them.

Key success factors

List any critical factors that contribute to the success of your practice.

Financial analysisIf you are using this business plan to secure any funding or investment, the financial analysis is the most important section in determining the viability of your business proposition.

This section of your business plan details the financial analysis to confirm that you have the financial resources to achieve your business objectives. It includes information in relation to:

The financial resources required to set up and open the practice (if starting a new practice). The financial resources required to operate the practice. Forecasts on the practice’s performance based on anticipated turnover and running costs at this level of

activity.

As a general guide, this section should cover the following:

Financial objectives. Capital structure. Cash-flow forecasts. Statement of financial performance (profit and loss) forecasts. Statement of financial position (balance sheet) forecasts.

Capital structure

In this section provide brief, general information on the capital and borrowings of the practice, and show the calculation of its debt equity ratio and working capital.

The debt equity ratio = total liabilities owners’ equity

Working capital = current assets – current liabilities

Do the cash flow forecasts demonstrate that sales income will cover bank loan repayments and all other commitments?

Commencement capital

If starting a new practice, list the capital the practice requires for establishment and specify the amount provided by each owner if there is more than one. If monies were borrowed to start the practice, state the amount borrowed and from whom.


Income statement and balance sheet forecasts

Include a summary of your income statement and balance sheet forecasts in the main body of the business plan, using the tables below, and include the complete forecasts for three years in the appendix.

An income statement (sometimes referred to as a profit/loss statement) provides a snapshot of your practice’s income, expenses and profit for a specific period in time, such as a financial quarter, six months or a financial year. The income statement demonstrates the profitability of your practice by showing the income minus expenses, which equals your profit or loss, that is, income – expenses = profit/loss.

A forecast income statement for the three years is included in the financial statements in the appendix to this business plan. A summary of key figures is as follows:

Item Year 1$

Year 2$

Year 3$

Revenue

Expenses

Net profit

Balance sheet

The balance sheet demonstrates your practice's net worth at a particular point in time – often at the end of an accounting period. It comprises three categories:

Assets – are objects the practice owns that have monetary value. Liabilities – are debts to creditors. Equity – is what remains when total liabilities are subtracted from the total assets.

Forecast statements of financial position for the three years are provided in the financial statements provided in the appendix to this business plan. A summary of key figures is as follows:

Item Year 1$

Year 2$

Year 3$

Current assets

Non-current assets

Current liabilities

Working capital (current assets – current liabilities)

Total liabilities

Net assets (total assets – total liabilities)


Fee policy

When determining your fee policy, consider the following:

Your patient’s sensitivity to changes in price. What revenue you need to break even with increased costs. What the price says about your services, for example, value, quality and patient satisfaction.

Include an explanation here of when and how you determined your fees and charges.

For example:

Fees are indexed by Medicare annually generally on 1st November. Patient co-payments (gap) are increased simultaneously with the Medicare Benefits Scheme indexation. Increases are set to match profit with Consumer Price Index (CPI). Increases are set to match budget forecast of expenditure.

Provide a summary of your fee structure.

For example:

Level MBS Item Medicare rebate Private fee Gap Concession

fee Gap

Level A Item 3 $ $ $ $ $

Level B Item 23 $ $ $ $ $

Level C Item 36 $ $ $ $ $

Level D Item 44 $ $ $ $ $

After-hours $ $ $ $ $

Procedural $ $ $ $ $

Other $ $ $ $ $

$

$

$


Key performance indicators

Key performance indicators (KPIs) provide a business with measurable targets to determine if the business’ performance is on track. These key indicators are the factors that have the most crucial impact on the performance of the business.

Financial KPIs Target

Patient fees per doctor

Patient fees per principal

Principal salary as percentage of gross billing

Revenue per general practitioner FTE

Net profit per principal

Net profit as percentage total revenue

Cash/debt ratio

Operational KPIs Target

Average gross billings/hours

Average patients/hours

Attendance per month

Average fee/patient

Average expense/patient

Bulk billing rate

Average waiting time

Staff/general practitioner ratio

Debtors


Billing profile

Use the following table to show the contribution of each service or product to total services and gross revenue. This will provide an indication of the impact of these services/products on the financial performance of the practice.

Product/service(for example)

Number of services

% of total services Revenue % of total

gross revenue

Patient consultations

Level A

Level B

Level C

Level D

Chronic disease management items

721

723

729

731

732

900

Health assessments

701

703

705

707

715

Procedures

Hospital services

Nurse-led activity

Allied health consultations

Home visits

Consumables


Strengths, weaknesses, opportunities and threats analysisDo a SWOT (strengths, weaknesses, opportunities, threats) analysis to identify the internal and external factors which will affect your practice in both a positive and negative way. Internal factors are strengths and weaknesses and external factors are opportunities or threats.

The following are examples of each area:

Strengths (for example) Weaknesses (for example)

Human resources Very experienced general practitioners.Great team.

High turnover of reception staff.

Physical resources Brand new health facility that requires little maintenance.

Outdated clinical equipment.

Services delivery Broad range of general practitioner skills.

Ineffective chronic disease program.

Marketing New website just launched. Marketing is not a priority.

Financial Profit margins being sustained. No budgeting forecasts.

Business management Highly experienced practice manager.

Struggle to make decisions.

Opportunities (for example) Threats (for example)

Human resources Practice Nurse Incentive Program. Expected loss of doctors or key staff.

Physical resources Infrastructure grants. Frequent storm water damage.

Services delivery Telemedicine. Changes to MBS.

Marketing Messages on Hold. New practice entering your area.

Financial Access to a new accountant. Change in Medicare regulations.

Business management Change in practice ownership. Resignation of the practice manager.


Operational strategyThe purpose of this section of the business plan is to document the strategies that the practice will implement to achieve its objectives. The operational strategy is divided into the following key areas of business operations:

Business management Service delivery Human resources Financial management Quality and risk management Information technology Marketing Infrastructure and resources

Each section has a planning table to complete. This is where you define the practice’s objectives in that key area, and the strategies or actions required to achieve the objectives.

Objectives

It is important to set SMART objectives – Specific, Measurable, Actionable, Realistic and Timed.

Financial objective 1 (example)

To grow the practice at five per cent per annum over the next three years.


To reduce telecommunications costs by at least $500 by the end of this financial year.


To increase revenue by targeting 100 chronic disease patients over the next 6 months to offer management plans.

Business management

Review the SWOT analysis to consider the strengths and weakness of business management in your practice.

Use the table below to document your plan for improving the business management of your practice. When developing your business management strategies consider the following:

How is the practice governed? How are decisions made? What meetings are required to ensure effective consultation, problem solving and decision making? What level of authority (delegation) is required to enable people to do their job?


Example: This example demonstrates how to define the objectives (SMART) and then list the strategies required to achieve them. It is important to allocate responsibility and timeframes for these strategies to ensure there is accountability for completing the tasks.

Business management

ObjectivesTo implement a new management structure by the end of the year, to enable the business to drive the improvement and development of the practice.To simultaneously implement effective governance (decision making) procedures to support the new management structure.

Strategies - steps/activities Responsibility By when

Schedule quarterly business meetings involving all directors to: Review the business plan outcomes. Focus on business development. Receive reports from the practice manager.

Practice manager date

Use the Wednesday morning meetings for clinical governance, clinical discussion, peer support and appraisal, which involve all doctors.

Principals date

Increase delegated authority and responsibilities of the practice manager to take advantage of his business experience and relieve the expectations of the practice principal.

Principals date

Define the expectations of the associates in respect to financial management and reporting requirements and develop reporting processes for the business information required by the associates.


Define roles and levels of delegation of authority for all positions in the practice.


Business management

Objectives



Service delivery

Review the services delivery section in the SWOT analysis prior to determining your strategies.

When developing your services delivery strategies consider the following:

What are the key service delivery initiatives that you are planning to implement? What existing services do you need to improve? What are the services that are of most value to your patients? What services will give you a competitive edge on your competitor?

Use the table below to document your plan for improving the services delivered by your practice.

Service delivery

Objectives


Human resources

The human resources of any business are its greatest asset and also usually its greatest expense.

Depending on the size of your practice, you may also wish to outline its organisational structure which should clearly demonstrate who reports to whom and the different levels of accountability and responsibility within the practice.

Review the SWOT analysis to consider the strengths and weakness of your human resources.

Complete the following summary of your general practitioner workforce in the practice in table format.


Summary of general practitioner workforce

Name (example)

Position Full Time Equivalent (example)

Special interests/skills Expected tenure

Dr A Partner 1.0

Dr B Associate 0.6

Dr C Registrar 1.0

Total 2.6

In terms of your general practitioner workforce consider the following:

Do we have sufficient general practitioners to meet the current or anticipated demand? Is the current general practice workforce stable or are changes expected in the future? Does the practice have the right skills mix? Are there any obvious skill deficits?

Use the table below to document your general practitioner workforce strategy.

General practitioner workforce

Objectives


Use the following table format to provide a summary and cost analysis of the practice support staff positions.


Summary of positions

Position title (example)

Award coverage*

Status (example) FTE Rate of pay

$On-costs**

$Total costs

$

Practice manager AHSS Full-time

Receptionist 1 AHSS Part-time

Receptionist 2 AHSS Casual

Practice nurse Nurses Part-time

Total $ $ $

* Detail the award which covers your employees.** On-costs include superannuation of 9.5 per cent; workers’ compensation insurance per cent and annual leave loading.

Given the importance of a good team in achieving success in your practice, it is worth taking some time to formulate policies in relation to recruitment and retention, performance management, remuneration structures and any opportunities for career advancement and training. This section of your plan can prove to be a valuable tool in both attracting and retaining good staff.

There are alternatives to employing staff such as outsourcing, engaging sub-contractors or using the services of a temporary employee through a recruitment agency, or locum services.

For more information, go to the employment section of the Small Business Development Corporation website at www.smallbusiness.wa.gov.au .

Review the human resources section in the SWOT analysis prior to determining your strategies.

When developing your services delivery strategies consider the following:

Have you got the right people in the right positions? Are there sufficient human resources to achieve your business objectives?

Use the table below to document your plan for the future management of human resources.

Human resources

Objectives



http://www.smallbusiness.wa.gov.au/

Financial management

This is where you list the practice’s financial objectives which may include a range of targets in relation to profit, debt reduction, investment and growth, and the timeframe in which you expect to achieve them. Your objectives should include a mix of short-term, medium-term and long-term goals.

When developing your financial strategy consider the following:

What are the best revenue improvement opportunities for your business? What are the cost containment strategies that are likely to be the most effective? What financial management systems and procedures need to be improved to support your financial

goals?

Financial management

Objectives



Quality and risk management

Quality and risk management rely on having clearly documented policies and procedures in place that are understood and systematically followed. Aspiring to provide high quality services requires a continual process of planning, action, review and adjustment.

Risk management is the systematic process for ensuring there are safe practicing procedures and a safe working environment. Risks are very rarely eliminated so the aim of risk management is to reduce the levels of risk to which a practice and its staff are exposed.

The Royal Australian College of General Practitioners Standards for general practices provide practices with industry standards of practise to support the delivery of quality services and also ensure that clinical risks are managed effectively.

Workplace Health and Safety Legislation and Regulations provide a framework for the assessment and management of risks

The most common risks affecting practices include:

Medico-legal litigation Public liability litigation Property damage/theft Fraud Information technology disasters

When developing your quality and risk management strategy, consider the following:

What are the indicators that demonstrate your practice provides a quality service? What systems do you need to implement to improve quality? What are the greatest risks that are of concern to your practice that need to be managed?

Quality and risk management

Objectives



Information technology

Information technology (IT) is the most crucial and valuable equipment resources supporting your practice to achieve its business objectives. IT provides businesses with innovative opportunities to improve service delivery, communication with all key stakeholders and create business efficiencies.

When developing your IT strategy, consider the following:

Are your existing IT resources inhibiting performance or creating barriers? Do you have the right software for achieving your long-term objectives? What new technologies will deliver the greatest return on investment? If the server crashes, are there sufficient redundancy measures in place to limit the downtime? What education and training is required to make the best use of these resources? Do you have responsive and capable IT support when required? Do you have a written policy and procedure to demonstrate how your information security is managed?

Information technology

Objectives


Marketing

Why do practices need to think about marketing when they often have more demand for services that they can deliver? Marketing is not just about attracting more patients. It is also about strategically delivering information and messages to support the practice’s business objectives.

Marketing can be used in the following ways:

Promotion of the services offered to your patients and how they can access them; Branding your practice for recognition in the industry as a means for attracting your future general

practitioner workforce; and Using marketing media including social media to connect with and engage key stakeholders.

There are specific rules that govern the advertising of health services and it is important to understand these limitations. Download the Australian Health Practitioner Regulation Agency Guidelines for advertising of regulated health services for more information.

Download the promotion strategy BIZ Guide under marketing at www.smallbusiness.wa.gov.au for more general information about marketing.



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http://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CB8QFjAA&url=http%3A%2F%2Fwww.medicalboard.gov.au%2Fdocuments%2Fdefault.aspx%3Frecord%3DWD10%252F2669%26dbid%3DAP%26chksum%3D3W%252FN5vWpGoe0K892YW9sFw%253D%253D&ei=XeIPVKHAIZO8ugT-iID4Cg&usg=AFQjCNGibIx1sbSuxpsBUEcfovIQSyO1gw&sig2=PhjCLowHXPvCADm7c9zg_g&bvm=bv.74649129,d.c2E

Market research

Provide an overview of your market research findings. This could include:

Services and their suitability to patient demographics. Patient profiles. Patient characteristics. Patient needs and wants.

Clinical audit tools can be used to glean this information from your practice’s medical software.

Visit the market research section of the Small Business Development Corporation website at www.smallbusiness.wa.gov.au for more information.

Market segmentation

When you look closely at your market you will find that your patients fall into different groups or ‘segments’. Although all your patients use your services they will value different aspects of it such as price, convenience of location, opening hours. You can segment your market by patients that have shared values.

For example:

Agricultural workers Chronic disease management Indigenous health Occupational/workers’ compensation/pre-employment

Each of these segments will have different requirements and the price they are willing to pay for your services may vary.

By understanding the needs of each segment, you can tailor your marketing mix to deliver what your patients value. Each segment will offer growth and profit opportunities so the aim is to deliver the best offer to the best segment.

Target market/segment characteristics

You can profile your target market/segments using four categories:

Geographic For example: location, population size or climate.

Demographic For example: age, gender, family size, family life cycle or income.

Psychographic For example: social class, lifestyle, motivation or personality.

Behavioural For example: frequency of visits or loyalty to a particular doctor.



Competitor analysis

This is where you compare the offerings of your competitors and what makes your practice different or better.

What are your competitors doing? How many competitors do you have? What is your advantage over your competitors? Is the market large enough to support you and your competitors?

Compare the features, benefits and advantages of your services over your competitors’ offerings of the same, similar or substitute services.

This is where you explain the uniqueness of your practice and services, why there is a need or demand for it and what benefits it offers the community and your current or potential patients.

Marketing strategy

Use the information above to help you to determine your marketing strategies and document your plan in the table below.

Marketing

Objectives


Infrastructure (premises)

If starting a new practice, detail the size and facilities required and whether you plan to buy or lease a property, the costs involved, where your operation will be based and why, along with a description of the building’s layout, décor and design.

If you are leasing, specify the term or duration of the lease, options held, key dates, rent, outgoings and other payments under the lease, rental per square metre, anticipated increases in rent over the term of the lease and the name of the owner and managing agent.

If you own the premises, provide ownership details, current value and any security held over the premises.

Describe the premises: location, zoning, geographical and demographical surrounds, passing vehicle and pedestrian traffic, facilities, fit-out, equipment, parking, the condition of the building, how long the practice has been there, the area occupied, accessibility and visibility. You may wish to include the age of the building and any interesting historical or tourist features.

Include any plans for alterations, extensions and moves and comment on the overall suitability of the accommodation.


You may wish to include a photograph here, or in the appendix along with a floor plan.

Review the infrastructure section of the SWOT analysis prior to determining your strategies.

When developing your infrastructure strategies consider the following:

Do your existing premises have the space required to implement your business objectives? What changes or additions are required? What is your investment strategy or business case for the expansion of the premises? Are the trading business and property ownership entities legally separate?

Infrastructure (premises)

Objectives


Equipment resources

It is important for businesses to have an asset register to record all the equipment assets it owns. The asset register is used to:

Store equipment resources data enabling reports to be created efficiently. Track depreciation for taxation purposes. Determine the level of contents insurance required.

There are many proprietary and open source asset registrations products available on the market. Some of the accounting software has asset registration modules that integrate with their programs.

Additional resources: The RACGP provides a template asset register in the Computer and Information Security Standards (CISS) www.racgp.org.au/your-practice/standards/computer-and-information-security-standards

When developing your equipment resources strategies consider the following:

Does the practice have the equipment resources needed to achieve its objectives? Is there a plan for the replacement of essential equipment? Are the equipment resources recorded in an asset register? Should any additional equipment resources be leased or purchased?


http://www.racgp.org.au/your-practice/standards/computer-and-information-security-standards

http://www.racgp.org.au/your-practice/standards/computer-and-information-security-standards

Equipment resources

Objectives



AppendicesIf seeking funding from a financial institution, include in the appendix an income statement and balance sheet for the current and previous year, if available, and for the next three years, forecasted financial statements, in the following order:

Balance sheets. Income statements. Cash flow forecasts.

Start each appendix on a new page.


Appendix 1

Values activity – determining your practice valuesIf you are in a large practice, it is recommended that each principal and ideally the entire team complete this task and then compile the results.

Circle five key values from the list below that best represent your practice’s values.

Achievement Advancement/promotion Adventure

Affection Arts/culture Challenges

Change/variety Clarity Cleverness

Close relationships Collaboration Commitment

Community Competence Competition

Control Cooperation Country

Courage Creativity Decisiveness

Democracy Dependability Ecological awareness

Economic security Environment Effectiveness

Efficiency Ethics Excellence

Excitement Expertise Fairness

Fame Family Fast paced work

Financial gain/growth Freedom Friendships

Fulfilment Fun Happiness

Having a family Helping others Hard work

Honesty Humour Independence

Influencing others Initiative Inner harmony

Innovation Integrity Intellectual status

Involvement Job satisfaction Justice

Leadership Learning/knowledge Location

Loyalty Market position Money

Nature Obedience Order

Originality Persistence Personal development

Physical challenge Pleasure Power/authority

Quality Recognition Religion

Reputation Respect Responsibility

Security Self-control Service

Serenity/tranquillity Sincerity Stability

Strength Success Support

Status Teamwork Trust

Wealth Wisdom Working alone


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