Writing a Successful Business Plan

By Jeffry Peterson and John L. Peterson, CLU, Managing Partners, Berkshire Financial Group

A business plan is a written document that defines the goals of your practice and how you will reach them. Everyone who has opened his or her own practice has done some sort of planning. Most often, this planning is informal and held in the mind of the practitioner.

Formalizing your business plan means investing time, energy, and thought. For those who do it, the rewards can be great. A business plan can provide:

A foundation from which you can make decisions as your practice grows and matures;
Documentation that allows you to work most effectively with lenders and investors should you intend to seek outside capital to begin your practice or expand.

There are a number of ways to create a plan; however, a few components are essential. You will find that each section will vary in length. It is, however, important to mention all the major issues to your practice - including ones that might seem less significant. This information provides a guide for potential partners, employees, and patients to refer back with questions. You do not want to raise any questions in the mind of your audience that are not resolved somewhere within the plan document. (E.g., if you plan on working alone, note that you do not anticipate hiring employees or independent contractor if the business succeeds at the level projected in the plan.)

A Typical Business Plan Layout
A typical business plan begins with a cover page and table of contents (so readers can find particular sections easily) and includes the following sections:

Practice background
The specifics of your practice organization and the services you will be providing.
Financial Information
Operating costs and how you will pay them. Practice Growth projections.
Marketing Plan
The specific steps of your marketing plan and an analysis of other naturopaths in the area.
Management Philosophy and Practice
How your practice will be managed including accounts receivables and employee issues.

Summary
Business plans will normally cover five years and should be reviewed and updated every six months. Periodic review allows you to monitor the growth of your practice, make changes as needed, and identify opportunities for improvement.

John Peterson, CLU (jopeter@berklife.com) and Jeffry Peterson (jpeters@berklife.com), coordinate Bastyr's Practice Management Course for 4th and 5th year students, and, are members of the American Association of Naturopathic Physicians. They can be reached via e-mail or at: 800-736-3170.