In the world of healthcare entrepreneurship, most physicians who are ready to start their hospital or clinic say that there is one thing that is more challenging than anything else…funding their ventures! This is because even though doctors have the confidence to handle life-and-death situations, they are often novices when it comes to the realm of finance. 

Setting up your medical facility is no laughing matter; it involves colossal costs and not everyone can fund it individually.

If you too are in this boat, read on.

5 tips that every healthcare entrepreneur should be aware of

1. Select the right potential investor

The healthcare sphere is an attractive arena for investors as it is a growing market and offers predictable returns. Hospitals are installments of businesses and are usually funded by banks, private investors, financial institutions, equity fund partners, etc. without much hassle. However, you have to narrow down your choices depending on the capital required, your collateral, your expansion plans, your estimated profits, etc.

2. Formulate a comprehensive business plan

You have many dreams for your hospital but a dream gets fulfilled only if you have a plan, a step-wise strategy to execute it. Get your aspirations on paper and give them a phase-wise ad timeline-bound picture. Use mathematical and probability-related models to predict breakeven, volumes, targets, and profits so that your project’s financial stability and viability are assured.

Your business plan should be detailed and meticulous. It gives a transparent and lucid insight into your estimated costs for every phase including site development, website development, and medical equipment purchase. Architectural development, interiors, and décor procurement, workforce recruitment, day-to-day operation, marketing, and promotion scrupulously are also equally important.  If you share this information to the last nitty-gritty, the investors will trust you more.

3. Keep your credit records in ship-shape

Banks and Financial organizations will carefully scrutinize your credit history before they decide whether to fund your project. If you have a flawless credit history, financers will gain confidence and will fund you without qualms. Your credit records include income tax filings, past bill payment history, and loan remittance accounts.

4. Build up on your core strengths

Investors are on the lookout for something which is above the average. Investors will eagerly fund your venture if it’s projected as a class above the rest.

In healthcare, nothing draws more attention than the reputation and caliber of physicians. The track record of your team will be scrutinized. While pitching, be sure to highlight your team’s strengths, qualifications, and reputation. The investment decision can be made depending upon these parameters alone.

5. Hire an experienced hospital consultancy firm

Even though many healthcare professionals are experts in nurturing the well-being of their patients, they are inexperienced in financial matters. Additionally, they lack the time to collect all the documents needed to curate a sturdy business plan due to their chaotic and hectic schedules.

Hence, it is advisable to avail of the services of an experienced healthcare consultancy firm. Healthcare consultants can give you expert advice on selecting prospective investors, collating and verifying your records, and aid you in curating your business incorporating the latest business models and predictive tools. They can help you impress potential investors by designing a tailored presentation that can be pitched before your investors.

Thus, hospital funding for a novice healthcare professional may seem like a road lined with potholes of difficulties. But remember many investors will be interested in funding your venture if it is economically viable because healthcare is a booming and low-risk segment.  So, go ahead and pitch your plan with self-assurance.

If you need any expert advice and support in hospital funding and financing, be sure to consult Hospertz. Hospertz is a reputed Hospital consultancy firm that has 2+ decades of experience. We also have a panel of financial experts to cater to your every need.