Starting An Allied Health Business

Starting an allied health business can be a challenging but rewarding endeavor. As a clinician, you are an expert at what you do, but starting a business requires different skills. Here are some key points to consider when starting an allied health business:

1. Know Your Strengths

As a clinician, you are an expert at providing quality health care services. However, starting and running a business requires different skills. You will need to understand financial management, marketing, and administration. To succeed, you need to be willing to learn and surround yourself with a team of experts who can provide support in these areas so you can focus on what you do best.

2. Create a Business Plan

A business plan is a roadmap for your business. It outlines your goals, target market, marketing strategies, and financial projections. Your business plan should also include your mission statement, values, and a SWOT analysis (strengths, weaknesses, opportunities, and threats). A well-crafted business plan will not only guide your decisions but will also attract investors or support an application for a loan if you need financing.

3. Choose Your Business Structure

The business structure you choose will have legal and tax implications. You need to consider factors such as liability, taxation, and ownership structure. A sole proprietorship is the simplest business structure, but it offers no protection from personal liability. A Company provides liability protection and a Trust with a corporate trustee can provide liability protection while also allowing flexibility in taxation. (Attention needs to be paid to Personal Service Income/Business issues.)

4. Create a Marketing Plan

Your marketing plan should define your target client base and outline strategies for reaching them. Define your target market by profiling them - what are their goals, what are their pain points, where do they congregate, and how best can you access them? Then, choose marketing channels that are most likely to reach your target market. Social media, search engine optimisation, and content marketing are effective marketing channels for allied health businesses.

5. Plan for Administration and Compliance Activities

Running an allied health business requires adherence to administrative and compliance activities. These include maintaining customer relationship management (CRM) systems, private health insurer regulations and adhering to the National Disability Insurance Scheme (NDIS) compliance and regulation, such as managing service agreements etc. Developing these systems early on can help you stay organised and comply with regulations.

6. Plan for Your Premises

Whether you need a premises or not depends on your business model. If you plan to provide services in a physical location, you will need to consider the cost of renting or buying a space. If you plan to provide services remotely, you may be able to work from home. You will also need to consider the initial capital required and ongoing expenses.

7. Setup Budget and Cash Flow Projections

Budget and cash flow projections are critical to any business's success. Creating a budget allows you to determine how much money you need to start and run your business. Cash flow projections help you manage your finances and determine if you have enough cash to cover your expenses. Make sure you create realistic projections to avoid running out of cash.

Starting an allied health business requires careful planning and a solid understanding of business fundamentals. By following these key points, you can increase your chances of success and build a thriving allied health business. Remember, the journey of entrepreneurship can be challenging, but it can also be incredibly rewarding. At Veritax, we are experts having helped dozens of allied health start-ups. Please feel free to reach out for a free consultation!