Business Plans

In the finance work place there are documents called business plans. A traditional business plan has information about three major areas: the proposed projects organization plan, the marketing plan and the financial plan. The organization segment is designed to describe the management team. Included in the marketing segment is who may use the service or product. With the financial portion the numbers are shown that illustrate how the project is supposed to operate.

The Organization Plan along with describing the management team also describes the proposed service and equipment and how it should fit into the organization. According to our text Health Care Finance the following is a list of organization segment information:

• Physical location where service will be provided

• Physical location of the equipment

• The division responsible for operations

• The directly responsible supervisor

• Composition of the overall management team.

The marketing segment information should include not only the individuals who will be using the equipment but information on the competition as well. This segment should also contain information on the available market, the portion of the market you would attract. Finally a description of who will be responsible for the marketing.

Marketing segment information should include: physicians who will use the service or equipment, new patients who will use the service or equipment, established patients who will use the service or equipment, estimated portion of the market to be captured and finally competition and its impact. (Baker & Baker)

The purpose of the financial segment is to contain the numbers that are used to illustrate just how the project to operate over a period of time. The period of time can be anywhere from 1 year to 10 years depending on the equipment. At the very least the financial segment should contain a cash flow statement; an example of a more detailed financial segment is one with a balance sheet and income statement.

Included in the financial segment could be the projected income statement that information would include: revenue type, revenue source, revenue amount, expenses such as: labor, supplies, cost of drug or device, equipment,, space occupancy, overhead. (Baker & Baker)

Also included in the financial segment could include balance sheet assumptions. Some of these assumptions would include: cash, accounts receivable, inventories, property and equipment, accounts payable, accrued current liabilities, long term liabilities and equity. (Baker & Baker)

References

Baker, J., & Baker, R.W. (2011). Health care finance: Basic tools for nonfinancial managers. Massachusetts: Jones and Bartlett Publishers.