Business Plan Development Essay Paper
Business Plan Development Essay Paper
Assignment 1: Business Plan Development
Elizabeth Jones, FNP-BC, has been an NP for 8 years. She has worked in the primary care setting, as well as the urgent care setting. She is considering relocating to a state that allows for unrestricted independent practice and opening her own primary care clinic. There are multiple benefits to owning an independent practice. However, owning a practice requires extensive knowledge and support. For an NP to establish independent practice, an appropriate plan must be developed. For this Assignment, you will create a Business Plan for your potential future busines
Write a 2-3 page paper Business Plan that addresses the following:
Identify and explain your chosen business structure
Estimate monthly cost for establishing your own independent practice in your home state, including:
Clinical site expenses
Employee structure and expenses
Supplies
Utilities and other overhead expenses
Malpractice insurance
Continuing education expenses
Accounting fees
Services identified that you will provide (e.g., primary care services, drug screens, DOT exams)
Projected monthly income necessary to support your independent practice.
Business plan development
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Introduction
Haybay Nursing Solutions (HNS) is intended as a primary care clinical that will be established in Los Angeles, California. Los Angeles is a major urban center in the west coast of the US with a significant population. The proposed facility will offer a range of health care services for both adult and children populations to include diagnosis, drug screening, physical examination, primary care, and treatment. It will be committed to offering affordable, patient-centered, timely, effective, holistic, safe and quality care. This is informed by the facility’s top priority of building, enhancing, and maintaining patient satisfaction. This priority will be important in attracting and retaining clients. The facility will offer medical services seven days a week for twelve hours every day with the business hours being from 7.30 am to 7.30 pm. The clinical will be located in the residential suburbs of the city since they offer ample room for future expansion, along with ample parking space and convenient access for clients.
Business structure
HNS will be registered as a limited liability company. This is intended to allow the business owner have greater control over the business. In addition, this structure offer liability protection and favorable taxation terms as benefits. Business Plan Development Essay Paper
Clinical site expenses
HNS will be established in a 2,000 feet2 leased office space. At a rental cost of $1.3 for every square foot of leased office space and $0.16 for every square foot spent on real estate taxes per month, the total cost per square foot is $1.46. The total monthly leasing expense for the office space will be $2,920. $35,040 will be spent annually on leasing the office space. Remodeling the facility to function as a clinic will cost $25,000.
Employee structure and expenses
HNS will offer medical services for seven days a week for twelve hours every day. This implies that the services will be offered for 84 hours every week. It is anticipated that the facility will handle 24 patients every day. Given this projection, a workforce of seven personnel is considered appropriate. The workforce will comprise of the business owner (a nurse practitioner), two nurse practitioners, two licensed practical nurses, and two clerical staff members. The owner will work for 35 hours every week in managing the facility and filling in for the nurse practitioners where necessary. The owner will draw a salary of $50 for every hour for a total of $7,000 every month. The two nurse practitioners will work for 30 hours a week with their salaries being $40 for every hour for a total of $9,600 every month. The two licensed practical nurses and the two clerical staff members will work for 40 hours every week with their salaries being $16 for every hour for a total of $10,240 every month. Total monthly expenses is projected at $26,840 while annual cost will be $322,080.
Additional costs for business startup
Business registration – $900
Legal expenses, permits and licenses – $2,000
Marketing and promotional activities – $5,000
Insurance (property casualty, personnel compensation and general liability – $20,000
Payroll and accounting software – $2,000
Accounting fees – $1,200
Stationery and officer suppliers – $900
Phone, electricity, water and other utilities deposits – $3,000
Storage hardware (glasses, shelves, utensil racks, bins) – $900
Medical equipment – $500,000
Miscellaneous – $4,000
Based on the detailed financial analysis that has been presented, launching HNS for the first year will require $922,020.
Income analysis
HNS will rely on medical services provided by its workforce as the primary revenue sources. The facility will offer six main service categories.
- Adult medicine
- Minor surgeries
- Immunizations
- Dermatology
- Pediatrics
- Gynecology services
Pricing for the medical services will be set based on Medicaid, Medicare and other insurance regulations. Based on this, the conservative income estimates have been presented for the first three years of operation as:
- $400,000 for the first year
- $900,000 for the second year
- $1,300,000 for the third year
- $1,600,000 for the fourth year
Sustainability and expansion strategy
HNS will be established to fill the owner’s personal need to become independent. In addition, it will fill the health care gap in its location. Over time, the facility will expend by providing medical services that are in demand within the community, in a fast and friendly manner while ensuring strict financial controls to remain profitable. There are plans to open more branches across California State in the future. In addition, there are plans to establish a reputation and culture of excellence that will improve the patients’ satisfaction levels and cause them to patronize the facility. Besides that, the facility will leverage the personnel’s professional background while also offering them training to improve their capacity to cope with unique situations in the facility (Cherry & Jacob, 2016; Getzen, 2013).
References
Cherry, B. & Jacob, S. (2016). Contemporary nursing: issues, trends, & management (7th ed.). Amsterdam: Elsevier Health Sciences.
Getzen, T. (2013). Health economics and financing (5th ed.). Hoboken, NJ: John Wiley & Sons. Business Plan Development Essay Paper
