Business Plan

Plan The higher the manager, the more time should be allotted to planning. Efficiency and quality should be considered and weighed. Strategic planning requires clear goals and objectives—then a plan to achieve the goals.

Goal As an effective manager, “we must learn to focus on improving the service we provide rather than on simply making sure we provide it.”

Goals and Objectives Goals—broad aims of the organization Objectives—specific (measurable) ways to achieve the goals Balance revenue and quality, short-term and long-range goals of organization

Importance of Clear Goals Managers with clear goals are less likely to be ineffective/inefficient. When the mission is clear, then less time and effort should be spent on unnecessary activities (those not focused on the mission).

What a Plan Does When presenting a business plan, it may be to eliminate a service, downsize a service, expand a service, or develop new service. A plan is just a guide. Evaluation annually is required.

Zero-Base Budget All costs are justified each budget cycle Should contain Purpose of each program Consequences of not having program Measurement of costs and benefits Statement of alternatives Methods to produce Quantity Levels of quality

Business Plan Used to change or develop a service Requires knowledge of Financial issues Market issues Forecasting Resource issues

“Starting programs that fail because of inadequate financial planning does not serve the health care needs of society.”

Steps Project proposal Project definition Market analysis Clear Market analysis Market share? Mix of patients Rough financial plan Operating (revenues and expenses)

Business Plan Mission of the organization How the proposed fits with the mission Description of product or service Describe consumers (real and potential) How service fits with existing services The competitive edge (market share) Profitability (pro forma financial statements)

Business Plan (cont.) Potential risks Regulation or other issues that may impede project Timeline Commitment of management to project