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According to research by Policy Advice, in the year 2019, Americans spent $3.65 trillion on healthcare, which amounted to 18% of the country’s GDP. In addition, the healthcare industry is the country’s largest employer attracting talented individuals from across the world. For entrepreneurs planning to start a health-based business, the possibilities are endless. But as with any business, there are risks and challenges which need to be accounted for. Today, The MD Preferred Network explores the precise steps entrepreneurs should follow to launch and manage a successful health-based business.
Find a Niche
Healthcare is a vast industry having numerous niches. Starting a testing lab or an urgent care center requires a major investment of capital and expertise. But, there are various low-cost business ideas you can explore as well, such as:
- Medical Transcription (MT)
Every hospital has an MT team that transcribes voice reports created by physicians, doctors, and other health care professionals. However, to keep up with growing demand, hospitals outsource their transcribing requirements to third parties. To be a good MT, one needs to have the skill of fast error-free typing. Additionally, the business can easily be scaled by hiring writers to undertake more work.
As a nutritionist, you can work with individual clients or organizations. Services you provide can include weight loss plans, sports nutrition, customized diet plans, etc. But, before you can start working as a nutritionist, you’ll need to be certified by one of three licensing boards in the US, namely the Commission on Dietetic Registration (CDR), the Clinical Nutrition Certification Board (CNCB), and the Board for Certification of Nutrition Specialists (BCNS). You can find an in-depth state-wise licensing guide here!
Other niches to consider include starting a health-based app, online counseling, opening an e-commerce health store, and rehabilitation services.
Market Your Business
Thanks to the pandemic, customers are more aware than ever regarding their healthcare needs. Additionally, they have various sources to cross-check information and ascertain if the products/services you’ll provide are safe and up to the mark. Hence, ensure that the information you publish is accurate and reliable. This can be done by hiring experts to proofread content on your app and website before being published.
When it comes to growing your business and reaching more customers, these are the best mediums to explore:
- Design a Website: Your website should include in-depth information regarding all your offerings, customer testimonials, accreditations, licenses, and the functionality to make purchases.
- Creating a Logo: You also need to put a face on your business, and that’s where a logo comes in. Luckily, there are ways to save money by avoiding a costly graphic designer. Just use this free-to-use logo maker tool, then spread the word for free via social media!
- Create a Local Listing: By creating a google business profile, you’ll automatically be listed on google maps and show up in search results. This will make it easy for customers to find you and build credibility.
- Start a Referral Program: Research shows that 92% of customers fully trust recommendations from people they know. Create a referral program through which customers can easily invite their friends using a shareable link.
Create Strong Foundations
Each year thousands of new businesses enter the market, but the majority of them close down within 1-3 years. To ensure your business thrives in the short and long term, you need to create strong foundations through:
- Choosing the Best Business Structure: A Limited Liability Company (LLC) or a Limited Liability Partnership (LLP) are the best options for new healthcare businesses. Both these protect the owner or partners from business debts and allow for the use of expenses as tax write-offs.
- Following Sound Financial Practices: Using cloud accounting software for your business will ensure you always stay on top of finances. Through the software, you can make prompt payments, create financial statements, calculate tax liabilities, and project estimations, and maintain a balance between revenue and expenses.
- Save Your Equity: While external funding has many benefits, investors will often ask for a percentage of equity and have an influence on business decisions. When starting out, consider bootstrapping the business, keeping your equity, and only consider funding when necessary.
Along with a good product offering, the success of your business will depend on sound management, and financial planning. Hence, dedicate ample time towards choosing the best niche, developing your plan, and creating strong foundations that will support the business for years to come.
Since 2009, The MD Preferred Network has partnered with hundreds of Financial Advisors & Insurance Agents, Mortgage Lenders that offer doctor loans, Realtors and Healthcare Recruiting Firms, that all deliver the highest level of service possible for healthcare professionals. Call 1-800-518-4759.