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Ultimate guide to  healthcare software development  in 2024

Last updated: March 01, 2024

Did you know that the global  healthcare software  market is expected to  reach $104.1 billion by 2030 ? This explosive growth is driven by the increasing demand for healthcare software to improve efficiency, reduce costs, and provide better care to patients.

But how do you grasp the driving forces behind these changes?

That’s why we’ve created this guide – to explain the transformative potential of the healthcare software market, covering the latest trends, challenges, processes, and opportunities.

Here are our other guides – even more knowledge awaits!

• Complete step-by-step guide to fintech software development
• Ultimate guide to insurance software development

Healthcare industry overview

Market size

The global digital health market is projected to  grow from $742.72 billion in 2022 to $4,547.70 billion by 2029 at a CAGR of 29.5%  in the forecast period, with  the top players being Oracle Cerner, Apple, Epic, Huawei, Cisco, and Philips Healthcare . The market is driven by a number of factors, including:

• Increasing adoption of electronic health records (EHRs) and other healthcare IT solutions;
• Increasing penetration of smartphones, tablets, and mobile apps;
• Growing demand for telemedicine and remote patient monitoring;
• Rising prevalence of chronic diseases and the need for personalized medicine;
• The COVID-19 pandemic;
• Government initiatives to promote the use of healthcare IT.

The leading market segment by product type is mHealth . mHealth refers to the practice of using mobile devices like phones and tablets, along with wireless technology, to improve healthcare. Mobile health has many uses, including education, diagnosis and treatment, managing healthcare supplies, and monitoring patients remotely. Back in 2018, the value of the global mHealth market was USD 34.28 billlion. Just 8 years later, by 2026, it’s projected to reach USD 293.29 billion.

Subindustries

The healthcare industry is multifaceted. It comprises various subsets, each playing a crucial role in delivering comprehensive medical services. Let’s take a closer look at each of them.

Care delivery & navigation tech

In the realm of healthcare, technology-driven solutions take the lead in enhancing the quality of care. Care delivery and navigation technologies aim to streamline healthcare processes, foster better communication between medical institutions and patients, and simplify the often intricate healthcare system. 

The care delivery & tech sector puts emphasis on the use of tools such as electronic health records (EHRs), patient portals, telemedicine platforms, health information systems, patient engagement apps, and care coordination tools.

• Example:   CINQCARE  –   Care, where you live

Monitoring, imaging & diagnostics tech

Within healthcare, another critical facet involves medical software solutions designed to monitor patient health, create diagnostic images, and identify diseases. 

Here, remote patient monitoring systems, advanced medical imaging software, and laboratory information systems aid healthcare providers in delivering accurate and timely diagnoses.

• Example:   Lubdub  –  Never miss a beat with accessible and smart heart diagnostics  

Health insurance & RCM tech

Efficient healthcare delivery relies on the effective management of insurance claims and revenue cycles. Health insurance and revenue cycle management technology offer software solutions to health insurance companies and healthcare providers alike. 

Examples of products within this subindustry include systems for processing health insurance claims and revenue cycle management software, ensuring the financial aspects of healthcare run smoothly.

• Example:   Mo.health   –  Modern health cover for modern teams

Health data & analytics

In today’s data-driven world, healthcare organizations must harness the power of data to improve patient care and operations. The medical data and analytics subindustry steps in, providing software solutions that enable healthcare entities to collect, analyze, and visualize health data. These encompass health information exchanges (HIEs), clinical data warehouses, and population health management software.

• Example:   Rivia   – Data Analytics for Clinical Trials

Drug R&D tech

Pharmaceutical innovation plays a pivotal role in healthcare advancement.  This subindustry includes software solutions that help pharmaceutical companies develop and test new drugs through drug discovery software, clinical trial management software, and regulatory compliance software.

• Example:   Baoji Pharmaceutical  – A biopharma R&D manufacturer, a Sino-foreign joint biopharmaceutical enterprise integrating drug R&D and production

Digital therapeutics & wellness tech

In the quest for holistic health, digital therapeutics and wellness technology take center stage. These software solutions are dedicated to treating and preventing diseases, as well as promoting overall health and well-being. 

From   mobile health apps to wearable devices and cognitive-behavioral therapy (CBT) software, these tools empower individuals to take charge of their health.

• Example :  ElevateMe  –   A complete assessment of your baseline health, tailored insights & an action plan to help you improve toward your goals

Digital pharmacy tech

The subindustry of digital pharmacy technology offers software solutions designed to streamline pharmacy processes. These solutions include pharmacy dispensing systems and medication delivery apps, making the pharmacy experience more efficient and convenient for patients.

• Example :  DiRx  – A digital pharmacy for low-cost, generic medications, delivered to the doorstep

To learn what types of digital health projects will get traction in 2024, check  22 healthtech startups investors want to invest in 2024

Types od healtcare software solutions

Healthcare software is a broad term that covers a wide range of tools and applications. They are designed to help healthcare professionals and patients improve the quality and efficiency of care, and can be classified as follows:

Clinical software

• Electronic health records (EHR) software
• Telemedicine software
• Remote patient monitoring (RPM) software
• Medical diagnosis software
• Medical imaging software

Administrative software

• Hospital management software
• Healthcare CRM software
• Appointment scheduling software
• Medical billing software

Consumer software

• Health tracking apps
• Personal Health Record software

One of the most important types of healthcare software is  electronic health records (EHR) software . EHR software stores and manages patient records electronically. This includes information such as demographics, medical history, diagnoses, medications, and treatment plans. EHR software helps healthcare providers improve the quality and efficiency of care by providing them with easy access to patient information.

• Example :  OASYS NOW

Another crucial categories of healthcare software is  telemedicine software  along with  remote patient monitoring (RPM) solutions . They allows healthcare organizations to provide care to patients remotely. This can be done through video conferencing, phone calls, or secure messaging. Telemedicine software and RPM are especially useful for patients who live in rural or underserved areas, or who have difficulty traveling to see a doctor in person.

• Example :  Doximity

Two more types of clinical software are  medical diagnosis and medical imaging solutions . Medical diagnosis software uses artificial intelligence and machine learning to analyze patient data, such as medical history, symptoms, and lab results, to generate a list of possible diagnoses. Medical imaging software is utilized to process and analyze medical images, such as X-rays, CT scans, and MRIs. This software can help healthcare providers to visualize the inside of the body and diagnose a variety of conditions. Medical imaging software is also used to guide minimally invasive surgical procedures.

• Examples :  COVID Symptom Study ,   Lenia Health

In addition to clinical software, there is also a wide range of administrative healthcare software  (hospital management software, healthcare CRM systems, appointment scheduling platforms, e-prescribing or medical billing solutions ). This software helps healthcare organizations  manage their operations, such as patient scheduling, billing, and inventory management, improving their efficiency and profitability.

• Examples :  QGenda ,  Veeva CRM ,  Curogram ,  Veradigm ePrescribe ,  CureMD

Finally, there is also a growing range of consumer healthcare software, mainly  health tracking apps and personal health record software . This software is used by patients to track their health and manage their healthcare. Consumer healthcare software can help patients to set fitness goals, monitor progress, and identify potential health problems.

• Examples :  MyFitnessPal ,  Symple

Fore more insights on the typology of medical apps, check  15 trending types of medical software

Digital health trends – the future of healthcare

Healthcare technology is rapidly evolving, driven by advances in artificial intelligence, big data, and other emerging technologies, making it more personalized, predictive, and preventive.

Let’s discuss the four main healthcare technology trends.

Everything digital

The COVID-19 pandemic accelerated the adoption of  digital health solutions , such as virtual care, telehealth, and remote patient monitoring. These solutions offer many benefits for both patients and providers, including convenience, affordability, accessibility, efficiency, and reduced costs.

Some challenges remain, such as lack of interoperability, security and privacy concerns, and lack of awareness. However, the future of healthcare is digital, as patients want convenient, omnichannel, contactless interactions.

• Example :  Medi24  –  24 Hour Immediate Telemedicine

Prevention is better than cure

With the rise of AI, healthcare providers are shifting their focus from treating conditions to predicting them. They use AI-powered predictive analytics and big data to generate instant medical alerts, customize treatments, forecast diseases, predict patient loads, and identify at-risk patients, with the ultimate goal being the improvement of patient outcomes.

This transformation is achievable thanks to the growing adoption of the Internet of Medical Things (IoMT) devices and other data sources and was initiated mainly by the patient stratification trend, enhanced analytics possibilities, and a system shift to value-based care. 

Remote patient monitoring (RPM)

The need to stay home forced healthcare organizations to find new ways to care for patients with fewer in-person visits, leading to the rapid growth of telehealth and RPM – the practice of collection and monitoring of patient data from a remote location.

Remote patient monitoring is poised to play an increasingly important role in the future of healthcare, as it enables providers to deliver more personalized and proactive care.

• Example :  Kintsugi  –  An API-first platform that uses novel voice biomarkers in speech to identify, prioritize, and care for mental health in real time.

Women & seniors’ health

The global women’s health market is expected to grow from $44.82 billion in 2023 to $58.69 billion by 2028, at a rate of 5.54% per year.  This growth is being driven by the aging population, the increasing prevalence of chronic diseases, and the growing awareness of the importance of women’s health.

Similarly,  the number of Americans age 65 and older is expected to grow by nearly 90%, from 52 million in 2018 to 95 million by 2060 . The 65-and-older age group will make up a larger share of the total population, increasing from 16% to 23%.

Healthcare organizations are increasingly investing in technologies that can help women and seniors manage their health and age in place. These technologies include remote patient monitoring, wearable devices, and telehealth solutions.

• Example :  Vira  – Extending healthy life expectancy. Starting with better menopause care.
• Example :  CarePredict  – AI-Powered digital health platform for senior care.

For more insights, check  Healthcare technology trends 2023-2030: 13 digital health trends to shape the next decade

Custom healthcare software development in 2024 step-by-step

Let’s go through the process of developing healthcare software. To make it more engaging and explanatory, we’ll use the example of building a health-tracking app.

The first and fundamental step of any endeavor is research. In case of building apps, we recommend going through these types of studies:

Market research

Competitor analysis, ux research.

The output of the research stage should be  defining the problem your users face .

Market research  is a set of techniques used to  gather and analyze information about a market (your potential customers) , product, or service to make informed business decisions.

For your health-tracking app, you should analyze industry trends to identify new opportunities ( What are the latest trends in health and fitness technology? ) and research the market size and growth potential ( How many people are using health-tracking mobile apps? What is the expected growth of the market in the coming years? ).

To make this process faster and more efficient, you can use our AI-based Market Research Tool . This innovative tool provides comprehensive market analysis, competitor insights, and potential revenue opportunities in seconds, helping you to refine your strategies and make data-driven decisions.

The aim of  competitor analysis  is to  identify and research your competitors to understand their strengths, weaknesses, opportunities, and threats .

When carrying out the competition analysis, you want to find your niche – identify the gaps in the market your competitors haven’t covered yet and use it to your advantage. 

Identify your direct and indirect competitors, and compare the features of your medical app to those of your competitors. ( What features do you offer that your competitors don’t? What features could you add to make your healthcare app more competitive? ).

Analyze your competitors’ pricing and marketing strategies ( How much do they charge for their medical apps? How do they promote their software to users? ).

Finally, you should go for  UX research  for the best and most precise results. User experience research is the process of  understanding users and their needs to create better products and services . UX researchers talk directly with your potential customers. Thanks to this, you can get highly personalized insights that will let you create products that people want and avoid wasting time and resources on mistakes.

Conduct user interviews to understand the pain points and frustrations of potential users. ( What are their biggest challenges when using health-tracking apps? What features would make their lives easier? )

Discovery & definition

Once you have collected the necessary data about your market and industry, it’s time to turn it into your product strategy.

Solution discovery

The interpreted findings from the research stage will help you  come up with different solutions for your defined problem . Through an array of various brainstorming methods (such as Impact Mapping or Opportunity Solution Tree), you should come up with a bunch of solutions that you are ready to investigate further in the next stage, which is the Solution Definition.

Let’s suppose the problem you defined in the previous stage is a lack of gamification in the available health-tracking app. People want to get rewards and level up for good health outcomes. Your custom software solution could provide your app’s users with a game-like experience.

The discovery process should not stop after you have chosen your solution. It should not stop even after its launch. A  continuous product discovery process  is one of the secrets to the longevity of a digital product!

Solution definition

In the  solution definition  process,  you use various testing methods to validate your solution ideas . The goal is to find a solution that you can later turn into an actual product (by building an MVP). In this process, you search for a solution that answers the user’s needs (has the largest impact), is feasible, and can be delivered quickly.

Create wireframes, mockups, and prototypes of your medical software. By applying various testing methods (first-click testing, 5-second tests, button-to-nowhere testing, etc.), you should have a more detailed and clear vision of your solution that you can later use as a reference for building an MVP, as well as a UVP and a Product Vision Statement.

Business & development planning

Lean canvas.

Lean Canvas  is  a one-page business plan for any product idea . This simple way of describing the business model of your product uses 9 blocks ( Problem, Customer Segments, Key Metrics, Solution, Unique Value Proposition, Unfair advantage, Channels, Revenue Streams, Cost Structur e) to help you map out important aspects of your business.

Problem : People want to track their health data in a fun and engaging way, but there is no game-like health tracking app on the market.

Customer Segments : Health-conscious individuals, fitness enthusiasts, athletes, people with chronic health conditions.

Key Metrics : Number of active users, number of daily logins, average time spent in the app, number of challenges completed.

Solution : A mobile app that allows users to track their health data in a game-like way, with challenges, rewards, and leaderboards.

Unique Value Proposition : The app will be the only game-like health-tracking app on the market. It will also be easy to use, affordable, and comprehensive.

Unfair Advantage : The app will be developed by a team of experienced health and technology professionals.

Channels : The app will be available for download on the App Store and Google Play.

Revenue Streams : The app will be free to download, but users will have the option to purchase premium features, such as access to additional challenges, skins, and rewards.

Cost Structure : The main costs associated with developing and maintaining the app will be server costs, healthcare app development costs, and marketing costs.

Business model

A  business model  is  a blueprint for how a company will create, deliver, and capture value . It describes how the healthcare organization will generate revenue, control costs, and achieve profitability.

The business model for the health-tracking app could be based on a freemium model. Users would be able to download the app for free and use the basic features, such as tracking their steps taken and calories burned. However, they would have the option to purchase premium features, such as access to additional challenges, skins, and rewards.

The revenue generated from premium features would be used to cover the costs of developing and maintaining the app. The company also plans to generate revenue from advertising and partnerships with other health and fitness companies.

If you’re a startup founder looking for investors, you need pitch decks. A  pitch deck  is a short presentation that introduces your startup and its product to potential investors. It typically includes 4-12 slides and covers topics such as the problem you are solving, your solution, your business model, your target market, your team, and your financial projections.

MVP roadmap

An  MVP roadmap  is a high-level plan that shows how a business will develop and launch its MVP. It is a flexible document that can be updated as needed, but it should provide a clear roadmap for the business to follow.

Development

With the business side of your endeavor established, you’re ready to start the medical  MVP development . By partnering with an experienced custom software development partner, you’ll be ready to launch it in 3 months.

Key aspects of software development for healthcare

Health Folder: an AI-based digital medical documentation folder

To summarize the article, let’s discuss a few key aspects you should consider when building custom healthcare software.

Data security and privacy :  In total, global cyberattacks in the healthcare industry rose by 38% in 2022 in comparison to 2021 . Protecting patient data is paramount. Implement robust encryption, access controls, and data anonymization techniques. Comply with major healthcare standards like  HIPAA  (Health Insurance Portability and Accountability Act) in the United States and GDPR (General Data Protection Regulation) in Europe.

Interoperability : Healthcare systems often involve multiple applications and devices, as well as healthcare systems. Ensure that your software can seamlessly exchange data with other systems, such as electronic health records (EHRs) and laboratory information systems (LISs). using standard protocols and formats (e.g., HL7, FHIR).

Scalability and performance : Healthcare software should be able to scale to meet the needs of growing organizations and changing requirements. This means designing the software modular and flexible so that new features and functionality can be added easily.

Regulatory compliance : Comply with relevant regulations and standards, which may vary by region. Some common ones include:

• FDA Regulations: For medical devices and medical software that directly impact patient care in the United States.
• HIPAA: For patient data privacy and security in the U.S.
• GDPR: For data protection and privacy in the European Union.
• ISO 13485: Quality management systems for medical device manufacturers.
• CE Marking: For medical devices sold in the European Economic Area.

User-centered design : Design user interfaces that are intuitive and efficient for medical professionals. Usability is critical in high-pressure healthcare environments.

Documentation : Maintain thorough documentation of the software’s design, development, testing, and validation processes. This is often required for regulatory compliance.

Continuous monitoring and maintenance : Healthcare software must be continuously monitored and updated to address security vulnerabilities, bugs, and changing regulatory requirements.

Collaboration with healthcare professionals : Engage healthcare professionals in the development process to gain valuable insights and ensure that your software addresses real-world clinical needs.

Ultimate guide to healthcare software development. Summary

With a deep understanding of the challenges and opportunities in  medical software development , you are ready to make a real difference in the lives of others.

Find and collaborate with the right healthcare software development company, leverage technology, and focus on innovation; you can help create a more equitable and sustainable healthcare system for all.

Would you like to talk about your project?

We are here to help! We take care of the entire product development process. Your success will make us successful.

How to Launch a Healthcare Startup: The Guide to Building Great Health-tech Products

How can you start a healthcare startup?

The journey of building a successful medical technology product begins with a viable idea. Happily, there exist countless opportunities for technology integrations in the healthcare, medical, and wellness industries…so many that it’s almost impossible to run short of potential innovations in this sector. 👨‍⚕️💻 

However, few health tech startups survive the early stages … 🚧

Let’s learn everything there is to know about starting your own healthcare business in the United States (or anywhere else across the globe): the steps necessary to start a healthcare startup, including health-tech technology, IT team, risks, potential project costs, and much more. 👇

Healthcare (and health-tech) is a market segment you cannot expect to take by storm. Unlike most sectors, starting a healthcare business requires you to traverse a rocky road of licensing and adherence to rigorous regulations while dealing with government institutions, pharma, and the medical professional community. 

🏥 Studying all the underlying rules, pitfalls, and requirements is a difficult yet crucial piece of homework for any entrepreneur who wants to start a healthcare company or launch a healthcare startup successfully. 

For example, HIPAA compliance is the minimum requirement for security and functionality in health-tech solutions and products in the United States.  

The good news is that a myriad of highly profitable market gaps are just waiting to be explored by ambitious healthcare technology startups. 🚀

Are you planning to start your own healthcare business or expand an existing one with additional health-tech projects or product development? In this article, we will guide you through the entire process of organizing and launching a medical technology startup while addressing all major success factors and risks.

Before we delve into how to start a healthcare company, take a moment to discover more about TATEEDA: 👇

Table of Contents

Why Do Many Healthcare Startups Fail?

Before we delve into starting a healthcare business, we should address another crucial question: How can a young medical technology project break into this conservative, strictly regulated industry? 

The demand for innovative healthcare startups is enormous. For example, the COVID-19 pandemic has led to a significant increase in the adoption and popularity of telemedicine solutions and telehealth options among patients, healthcare professionals, and healthcare insurers. Seventy percent of American adults are now willing to use telemedicine, and 76% of employers are ready to include telemedicine coverage in their insurance plans. In this regard, more and more healthcare startups offer telehealth services like medical second-opinion telemedicine platforms that work as a kind of healthcare expertise marketplaces where patients can find alternative or additional arguments for their health conditions.

Let’s identify the major reasons why healthcare startups usually fail…

⛔ Non-compliance with Industry Standards 

It takes serious preparation and legal consulting before you even start! Most healthcare startups fail early because their founders cannot manage to pass all rounds of industry bureaucracy, accreditation, licensing, testing, and regulatory compliance. However, startup managers who do their homework have greater odds of success.

Before you’re ready to start a healthcare startup, it’s important to remember that…

• Not all startups require the same set of permissions and legal precautions. 
• Some startup types can be introduced to the market faster than others, such as software-only projects (thanks to a shorter preparation cycle).
• Some projects require tedious legal procedures: for example, projects covered by FDA policies, including professional-grade clinical products. 

If you want to start a healthcare startup including innovative medical devices, you’ll need to comply with FDA regulations and ISO certification (which can be a costly and lengthy path).

Learn more: ➡️ Medical Device Software Design and Development . 

🙅‍♀️ Poor Connection with Potential Users and Medical Professionals

Many healthcare startups fail because they do not build solid relationships with potential users, sponsors, and stakeholders. Because of this, they cannot capture attention or obtain sufficient feedback to finalize and refine their products until usable status is attained.  

At least three major aspects that should be considered when creating a health tech business plan…

❓ Is it a professional-grade healthcare startup that requires clinical trials? If so, it’s necessary to contact and pitch your ideas to healthcare institutions and medical professionals to find qualified sponsorship according to the regulations of your legal jurisdiction. 

❓ Is it a consumer-grade healthcare startup? You will still need specific feedback from potential users (like patients or medical practitioners) to make sure you’re on the right track to creating your healthcare product as an efficient solution for real-life problems.

❓ Are you a representative of a healthcare company or institution? A direct relationship with (and specific feedback from) your staff and patients is a huge advantage that will help you launch your healthcare startup and support its continued success with fewer barriers and problems.

⚠️ Other Potential Medical Startup Problems Include…

• Technological complexity and tech skill barriers.
• Low usability: intricate interfaces, unbalanced functionality, and more. 
• Availability of better or/and cheaper alternatives. 
• Poor marketing, PR, and lack of communication. 
• Unreliable or disorganized technological partners. 

Slava Khristich

Healthtech cto.

Based in San Diego, Slava knows how to design an efficient software solution for healthcare, including IoT, Cloud, and embedded systems.

How Entrepreneurs Validate Healthcare Startup Ideas

With the exception of medical and fitness wearables (like IoT devices coupled with custom healthcare applications ), few high-tech products have gone viral with the ordinary public. A great number of healthcare startups have never even been released to their audience because their ideas were not understood or accepted by potential sponsors.    

Here, we offer several tips on how to estimate the potential viability and future success of your healthcare startup idea before you even start…  

✅ Does your healthcare startup belong to one of the most successful sectors? 

In 2023 and beyond, the most viable healthcare startup categories/ideas include…

• MRI and medical data analytics
• Telemedicine
• On-demand healthcare staffing platforms  
• Nutrition science
• Healthcare data visualization development
• Remote patient supervision
• Data mining in healthcare
• Mental health management
• Medical insurance applications
• Robotics in surgery
• Predictive life sciences.

If your healthcare startup belongs to one of these categories , you have higher odds of success thanks to increased interest on the part of investors in these sectors as well as upcoming medical technology trends. Learn more here: ➡️ Major Healthcare Technology Trends . 

✅ Do you set realistic financial expectations to back your ideas?

In the healthcare industry, with its strict regulations, bureaucracy, and long sales cycles, it’s imperative to maintain sufficient funding to survive the pre-release stage. 

🏗️ No matter how brilliant your startup idea may be, it’s necessary to maintain a solid, long-term strategy that includes a financial buffer to help you sustain your project team for at least 3-5 years before releasing your product or MVP to the market, investors, or clinical practice.

Learn more: ➡️ Healthcare Product Development: How to Build an MVP .

If you represent a mature company that has decided to launch a healthcare startup to expand its project portfolio, you are definitely in a better starting position than those who decided to start a healthcare business from scratch. Your financial conditions and background will allow you to grow and test your ideas with less risk.  

✅ Is your startup idea the fruit of your own deep industry experience?

If you have generated and shaped your startup ideas after years of experience in a specific healthcare market niche, you have higher odds of success in this venture. You definitely know how to make changes in the industry for the better, and you’re ready to convert your knowledge into an efficient solution ready to hit the market.  

✅ Have you discussed your healthcare startup ideas with medical professionals? 

Any healthcare startup idea should be examined and verified by active medical professionals and/or patients. Their feedback and suggestions will drive further startup development. If you have early access to user opinions, you will obtain one of the most valuable assets a healthcare startup can dream about. Make sure healthcare professionals are involved as early as possible.

So, if your healthcare startup idea is ⇒

• relevant to one of the most promising fields in healthcare
• accompanied by a sound health tech business plan
• based on your own deep expertise
• endorsed and verified by potential users…

…you can be reasonably certain you’re on the right track to success!  

Custom Healthcare Solutions

See how we can engineer healthcare software, validate your ideas, and manage project costs for you.

Important Things to Consider Before Launching a Healthcare Startup

Before you start your new project, it’s essential to identify all fundamentals and pay attention to thoughtful creation of a business plan for your healthcare startup. Let’s look at the major areas you should consider…

👓 Respect the Conservative Market & Regulatory Compliance

It’s no secret that the American healthcare market is one of the fastest-growing yet deeply conservative and rigidly regulated in existence. You should have an experienced legal advisor or powerful team of law consultants to help your healthcare startup pave a path through legal barriers and pitfalls.

One of the most crucial compliance frameworks for healthcare projects in the United States is HIPAA. At TATEEDA GLOBAL, we understand HIPAA compliance, and would be happy to help you develop a medical startup according to HIPAA requirements and rules. Learn more: How Custom Healthcare Software Is Developed for Secure HIPAA Compliance .    

🔄 Develop Interoperability of Health Data

When you start a healthcare business with a custom technological component such as a software system, it’s necessary to design it for compatibility with other medical systems, devices, data formats, and technologies. If you want to start a medical practice, you’ll definitely need to adopt a healthcare practice-management system with administrative (back-office) and front-office functionalities, like patient profiling, appointment scheduling, bookkeeping, and revenue analytics.

⚡ Our experienced health-tech engineers can define a specific interoperability configuration for your individualized project ⇒

There exist different standards of interoperability for healthcare systems, including…

• Fast Healthcare Interoperability Resources (FHIR)
• Electronic Data Interchange (EDI)
• Health Level Seven (HL7). 

Learn more: ➡️ HL7 Integration: How to Build Interoperability Interface for Your Healthcare Systems

🤝 Build a Friendly Network of Sponsors and Supporters 

A community as conservative as American medicine can be extremely reluctant to trust and welcome your young healthcare startup. As mentioned previously, it’s necessary to find healthcare providers that can build trusted relationships with you and sponsor your project until you are ready to release a viable product after going through all circles of development, accreditation, and testing. 

Potential healthcare startup sponsors include…

• private hospitals
• medical centers
• health-tech companies
• insurance companies
• charity organizations
• private practitioners.  

A solid and reliable health-tech business plan is a good foundation that will help you coordinate with potential sponsors. The three main startup qualities to be maintained throughout your healthcare business plan are…

🔹 Validity : relevant, verified business objectives  

🔹 Compliance : technical and legal preparedness

🔹 Safety : full protection of medical records and personal data. 

👔 Prepare for Lengthy Sales Cycles

Be ready for the fact that many months can pass between pitching your project to potential clients or sponsors and their readiness to move forward. 

⌚ Keep your morale high, and remember that closing a successful deal in the healthcare software development industry requires a long-term commitment.

⌚ Make sure your team understands the situation, requirements, and perspectives, and is ready to sustain them.

⌚ Consider hiring a professional representative who specializes in pitching healthcare startup ideas to potential clients/sponsors and investors on daily basis.  

Delivered Healthcare Software Portfolio

The leading American healthcare companies benefit from working with us.

Where and How to Hire a Team For a Medical Startup

If you want to launch a healthcare startup or company, you cannot achieve success without a professional team behind it: 

• Health-tech engineers 
• Healthcare software developers 
• QA engineers
• Business analysts
• …and many more. 

Each healthcare tech startup is unique, so it requires individualized team composition and a flexible staffing model to keep it going with minimum overhead. Let’s take a look at some options…

👩‍💼 Gather a core team 

Begin teaming up with key members and co-founders. Ideally, they must bring diversity in terms of qualities, capabilities, and experiences your startup can benefit from, including…

• Shared business vision and values. 
• Tech and engineering skills. 
• Deeper expertise in medical institution processes.
• Business administration, project management, and PR for startups.  

👨‍🔧 Hire an experienced CTO

A medical tech startup will be successful only if it is supervised and managed by an experienced engineer (CTO, or chief technical officer) who takes care of…

• All tech-related processes, like software architecture and development tasks.
• Dealing with third-party contractors and partners: tech specifications, communications, consulting, meetings, reporting, and more. 
• Delegation of project tasks to outsourced developers, testers, analysts, etc., as well as task execution and control.  

🧑‍💻 Outsource your software development

You can save a great deal of time and money by hiring third-party professionals and outsourcing your high-tech project tasks to them. There exist a number of technology experts who can undertake software development processes for you. You don’t have to invest a huge amount of resources into recruiting and organizing your own team, because…

• A dedicated team of developers, engineers, and software testers provided by a specialized vendor can offer you streamlined expertise along with a better hourly rate than a locally hired or in-house team, including HR overhead and other costs. 
• Professional outsourcers must have considerable experience. They must be able to offer appropriate skills, smooth professional processes, and flawless teamwork practices, including convenient collaboration tools so you don’t have to establish these practices from scratch.  
• You can easily scale your team up or down according to your current startup needs, without bureaucracy and the associated administrative difficulties.  

TATEEDA GLOBAL can provide you with a team of senior developers, project managers, UI designers, QA testers, and more on a flexible, convenient basis. 

You can delegate various project tasks to us, including mobile, web, IoT, and desktop application development in healthcare and biotech. 

All of our specialists are our own employees, not freelancers! If you want to discuss the details, please contact us today .    

How to Start a Healthcare Startup, Step by Step

The process of starting a new healthcare business venture is basically the same in the U.S. and all other countries, except for several legal nuances. Let’s check out the steps…

Step #1: Draw up a convincing business plan and budget

💼 Writing a health-tech business plan for a startup is a keystone task that requires considerable expertise and time. This document will be your guide throughout the startup process and will cover each and every aspect, including budget, technical components, marketing, operation, product design, and much more. 

Your health-tech business plan should have standalone sections that explain the following matters and strategies…

• Accumulation and release of your startup capital.
• Organization structure of team units and project departments.
• People responsible for the technical aspects of your healthcare product build-out.
• Medical data security and compliance: methods and strategy.
• Roadmap of product planning, design, development, testing, and MVP release.

Step #2: Gather your medical advisory board

👨‍💼👩‍💼 As they say, two heads are better than one . Working with advisors who possess rich, sophisticated experience in the healthcare and health-tech sectors is a crucial advantage that will allow you to shape and follow the right business strategy. 

Gathering an efficient advisory board is fundamental to putting the rest of your crew together, as these advisors will take part in choosing other team members and contractors, and will organize all internal operations and processes. 

Learn more: ➡️ Healthcare Payroll Software Development

Step #3: Work on HIPAA compliance and respect all other regulations 

HIPAA is a set of special regulations that must be obeyed throughout the process of medical software development and project management/organization. This regulatory framework involves three major components:

📃 The HIPAA Privacy Rule (2003)

📃 The HIPAA Security Rule

📃 HITECH Act (2009)

Basically, these regulations describe the way in which medical records and patient data should be securely treated, stored, managed, and more. If you launch a healthcare startup for the American or global health-tech market, HIPAA compliance is obligatory. Other jurisdictions can have additional or local regulations for healthcare software solutions. Contact us for more information!

Step #4: Develop your online presence

📱 Build a comprehensive website and social media pages to represent your startup objectives, ideas, value, advisory board members, contacts, and more. You can also add a donation button and crowdfunding options to improve your financial performance. 

You can also implement blockchain functionalities to distribute project tokens and accept crypto coins (make sure to learn and respect your local legislation accordingly.) Additionally, you can list your healthcare startup in specialized directories and catalogs while booking your presence at industrial conferences.     

Step #5: Hire your startup staff and arrange a payroll procedure

🧾 Your business plan must include the roles and responsibilities of all employees and team members involved at every stage of your startup development. This document should elaborate on the following essentials…

• payroll processes and pay schedules as defined by your national jurisdiction 
• methods and strategies for capital attraction and distribution 
• an incentive plan to keep your team members motivated
• the collaboration formats you choose to develop for your team
• …and everything else that helps you convince your potential sponsors and investors of your solid financial base while offering ways for them to join…   

Learn more: ➡️ Medical Staff Management Software Development

Technology Ideas that Can be Included in Your Future Healthcare Startup for Market Success

There is an ocean of opportunities for your healthcare startup. Meaningful use of certain technologies can help your solution stand out from the competition and become more noticeable to industrial magazines, startup hunters, and potential users.      

Some of the best tech to become a part of your potential innovative healthcare startups include…

🔹 Protected patient portals for authorized user access according to roles and permissions: patients, physicians, clinical representatives, and more. 

🔹 VR and AR for innovative functionalities or improved accessibility for alternatively-abled persons. 

🔹 Voice recognition and application command options.

🔹 Electronic prescription management apps with optical character recognition options . 

🔹 Profile management for different types of users. 

🔹 Diagnosis database for doctors and symptom-checkers or chatbots for patients. 

🔹 Remote patient monitoring and custom telemedicine solutions .

🔹 A social platform for patients and physicians to connect with each other. 

🔹 Protected video , chat, and other functionalities. 

🔹 Smart (AI-powered) virtual nurse software .  

🔹 Access to a repository of medical data and health documents.  

🔹 Useful content: lab tests, helpful tips, articles, and more.

🔹 Custom patient payment, billing, and claim-processing solutions . 

🔹 Custom cloud technology integrations .

🔹 Health-specialist scheduling and appointment notifications.

🔹 Custom medication reminder functionality and health-supervision log books & diaries.  

🔹 Online pharmacy features and pharma product research/comparison.  

🔹 Senior care digital tools and remote senior supervision tools. 

TATEEDA GLOBAL’s Experience in Building Healthcare Startups

We have assisted a number of young health-tech and biotech projects with…

• Integration of healthcare devices with custom software components 
• Embedded programming (electronic device programming)
• API integration of third-party modules 
• Complicated client-server architecture. 

One of the startups we worked with was Ventrilink. This medical IoT device development project involved an innovative, portable ECG-monitoring biosensor for remote patients. 

We assisted them in the establishment of a stable/optimized connection and interaction between the device and software components, such as the server portion and fast tablet-installed client application with real-time scalable ECG visualizations and many other interesting functions. ➡️ Learn more here .   

We helped the Ventrilink startup team build a healthcare technology platform, complete with a range of IoT and mobile technologies. We’re well-equipped to create a medical startup environment for you!

FAQ : Instructions on How to Start a Healthcare Business

What are the pros and cons of starting a healthcare startup.

The stakes are high in starting a health-tech business. If your healthcare solution is successful, you can earn a fortune, but it’s still a long way to go with a lot of potential pitfalls and a high risk of bankruptcy, too. TATEEDA GLOBAL cannot guarantee your marketing, legal, or strategic success, but we can guarantee the best possible quality of the technological products we produce along with full industrial compliance in terms of medical data security.  

How much money do you need for a healthcare startup?

It’s necessary to have a considerable financial base to start your health-tech business or projects. As we mentioned earlier, there are a variety of ways to attract initial startup capital as well as prolonged financial funding for longer periods of time. 

We can tell you that the average cost of healthcare startup product development (for a technical solution used in healthcare or biotech) is about $70,000-100,000+ depending on a wide range of factors. Contact us for more information!

What are some useful metrics for healthcare startups?

We do not provide marketing analytics or services, but we do know a thing or two about starting new businesses and projects. There can be….

• Annual Revenue per Account. This depends on what your healthcare startup is all about. Is it expected to deal with one (or a few) enterprise clients (e.g. medical organizations, clinics, hospitals, and others), or is it targeting an army of smaller contributors?
• Cost of Customer Acquisition . Once again, it depends on the size of the typical client you want to get (and the revenue they’re estimated to bring in, on average). For example, attracting one large customer can cost you $10,000 or more. 
• Customer Lifetime Value . How long do you want them to stay with you? If it’s a long-term sponsorship that includes continuous software maintenance, potential value can achieve tens or even several hundred thousand dollars in a time.   
• Customer Interest . How many potential customers contact you in a period of time, and how often? How can this number be improved?

How to start a healthcare company in the United States?

• Develop a detailed business plan with your future company’s mission, goals, target market, marketing strategy, financial projections, and timeframe for launching.
• Decide on a legal structure for your healthcare company: for example, a limited liability company (LLC), or corporation. The most popular legal structure among healthcare companies in the U.S. is the Limited Liability Company (LLC.) Boutique medical practitioners can opt for a sole proprietorship license. Consult with a lawyer or accountant to determine which structure is best for your business.
• Obtain any necessary licenses and certifications to operate a healthcare company in your state. You may need to register with state health agencies or obtain permits from regulatory bodies. A specific process of starting a healthcare business in your location must be discussed with a professional lawyer.
• Determine the size of the funds you will need to start and maintain your company. Develop a plan for secure funding . To start a healthcare business you may need to find investors, apply for bank loans, or consider crowdfunding options.
• Hire qualified staff, including healthcare professionals, administrative staff, and support personnel. If you want to know how to start a digital health company, consult with IT service staff providers to augment your team with health-tech developers and IT system engineers.
• Develop policies and procedures to ensure that your company is operating in compliance with all healthcare-related regulations and best practices. In the United States, starting a medical business is tightly associated with HIPAA compliance for startups.
• Develop a marketing strategy to promote your healthcare services to potential customers. Consider advertising, social media, and networking events to build your customer base.

What are the best future business ideas for healthcare?

Here are the top ten potential healthcare business ideas:

• Telehealth services : There exists a growing demand for digital health companies and startups that provide virtual medical consultations, remote patient monitoring, and other telemedicine services.
• Personalized medicine : Healthcare startups that specialize in individualized medical approaches can offer customized treatment plans and therapies matching an individual’s unique genetics and other very specific health details.
• Digital therapeutics : These include digital tools and apps that provide behavioral or cognitive interventions or assistance for patients to improve health outcomes or treat specific conditions.
• AI-powered diagnostics : Artificial Intelligence (AI) and machine learning (ML) capabilities can be integrated into diagnostic tools and device operating systems to help healthcare professionals make more accurate diagnoses and decisions.
• Wearable health technology : Companies that create wearable or adhesive devices or technologies help patients track and monitor vital signs and/or other health metrics to enable users better manage their health.
• Healthcare analytics : Companies that offer high-end solutions for healthcare data analytics help healthcare organizations improve operational efficiency, reduce costs, and enhance patient outcomes.
• Patient engagement platforms : These are health-tech platforms that encourage patients to take an active role in managing their health, such as via wellness tracking, education, and support practices.
• Health and wellness coaching : Companies that offer personalized coaching and advice to help their clients achieve their optimal health and wellness goals.
• Home healthcare services : This type of medical startup offers in-home healthcare services, including nursing, physical therapy, and other healthcare services, and helps patients receive individualized care in a more comfortable and convenient setting.
• Mental health services : This category of innovative healthcare startup companies provide virtual mental health counseling and other psychological care services to patients who may not have access to traditional in-person therapy.

If you want to jump at any of these healthcare business opportunities, please contact our IT engineers and health technology consultants for a (free) deeper consultation.

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Vlad Nazarov

Content Manager

TATEEDA builds custom software projects and provides IT staff augmentation.

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Healthcare and Medical App Business Plan

While technology has helped progress many industries, the medical and healthcare industries may be the most important. From tracking health to accessing medical help quicker, a variety of new healthcare apps have entered the market over the last two decades. As a result, the amount of investment going into these types of apps have attracted hundreds of millions of dollars in investment. However, before an entrepreneur can raise investment, they need to first create a strong medical app business plan.

Although healthcare app business plans are very similar to other types of  app business plans , there are many differences that you must be aware of when writing one. In this post, we will provide several tips for writing a strong business plan for a medical app startup. 

State of Healthcare and mHealth Startups

As of 2018, there were an estimated  318,000 health apps  on the market with over 200 new apps being added each day. This was double the number of health apps that existed in 2015.

With a total projected value of over $28.3 billion and an expectation of reaching $102 billion by 2023; there’s no question why investors are so attracted innovation in this industry.

For startups, these investments are necessary. In a study of 2,400 mobile health stakeholders, the average  cost of development for a mobile health  app (from conception to launch) was around $425,000. There was a large portion of these startups though (36%), that spent less than $25,000 up until launch, and 12% spent over $500,000. In other words, for a startup to be successful in this space, some level of investor capital will be necessary.

However, with so many new startups entering the market, the competition for investment is fierce. Investors want to invest in highly innovative health tech startups that are solving real challenges and have the potential to affect millions of users. 

Types of Healthcare Apps

There are many different types of healthcare apps to provide a variety of solutions. In general, these apps fall into one of the following categories: 

• Clinical & Administrative : These are applications used by healthcare staff to manage records, review charts, keep track of patients, and more.
• Monitoring and Tracking : Software that monitors patients in real-time, such as heart monitoring, blood glucose monitoring and more.
• Locators, Appointments & Reminders : Includes apps that allow patients to search for healthcare providers, set appointments, set reminders to take medicine, and more.
• Lifestyle : Includes apps related to living a healthy lifestyle like fitness apps, nutrition, and food apps, and more.

3 Tips To Writing Your Medical App Business Plan

When writing a medical app business plan, there are several considerations that should be made. These considerations will help to ensure that your business plan stands out among the competition and makes the biggest impact among readers.

Team & Advisors

For any startup, investors want to see a strong team in place. This is even more important in the case of a medical or healthcare startup. With these apps, startups often put themselves in between the user and their health – whether it is offering advice or information, access to medical records, or medication reminders.

Investors know that there are many risks associated with medical software and technology. In many industries, risks can be assumed and mistakes can take place. This flexibility doesn’t exist when someone’s health is on the line.

Because of this, team experience is important. Founding members should have the experience necessary to bring the application to life. If the app is one that needs specialist medical knowledge, investors will probably want to see someone with this experience represented in your medical app business plan.

A strong advisory board can help you fill in the experience gaps of your team. When you write up your team bios in your plan, consider how investors will perceive your team’s experience. Will they see gaps or have reason to be concerned that you are not experienced enough? If so, correct these issues before writing up your plan. 

Acceptance By Medical Professionals

People trust medical professionals, but they don’t always trust brands. An app may say that a specific diet is best for individuals with diabetes, but unless that app is backed by someone trusted in the medical community, it won’t be deemed as credible.

Seek approval by medical influencers and professionals that can add credibility and validation to your concept. Showcase reviews from these individuals in your medical app business plan to better your chances of impressing an investor. 

Tell Your Startup Story

Healthcare apps often have incredible startup stories attached to them, and these stories can help connect with readers. Explain how the idea came about and what inspired you to start your business.

Imagine a remind app for caregivers of the elderly. On it’s own it doesn’t sound extremely exciting. However, when finding out that the founder’s mother had severe dementia and her family built and used the app to more effectively manage her daily medicine – the solution is given more personality.

What is your  brand story ? Figure out the story that strengthens and validates your brand and build your medical app business plan around it!

Putting Your Medical App Business Plan Together

Ready to put together an investor-ready healthcare app business plan? We’d love to help. At ThinkLions, our  business plan writers  have worked with dozens of mHealth companies, helping them raise money from investors around the world. Contact us today and speak with one of our business plan experts.

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How to Write a Business Plan for Medical Practice

Last updated: 04 / 08 / 22

You learn a lot in medical school, but business planning isn’t a focus. However, many health care practitioners go on to run their own businesses where developing a business plan becomes essential.

If you’re planning to start your own practice, or you’re taking over someone else’s medical business and want to run it effectively, it’s a good idea to spend some time working out the details and putting together a formalised plan first. You may also want to get professional advice on your business planning, and any other aspects of running your medical practice you’re not sure about. In the meantime here are a few business planning basics to get you started.

Why have a business plan for your medical practice?

While it can be tempting to just dive right in and start setting up your new medical practice, a business plan can help you get prepared and make sure you stay on the right track as your practice grows.

A solid business plan is the foundation of any successful medical practice. With a business plan you can identify potential issues upfront and devise a strategy to avoid them. You can also set realistic goals for your business to help you keep moving in the right direction. If you’re looking for funding at any stage, you’ll also need to have a business plan. Most medical practices will struggle to get a business loan without a solid business plan in place.

What to include in your medical practice business plan

Your business plan should include the following:

• A summary of your business, including the medical services you provide, your location, and the history of the business.
• Financial information including projected cash flow, outgoings like medical equipment, marketing and practice management software costs and projected turnover.
• Operational factors like trading hours, fees, staffing and potential suppliers
• Risk identification and management – details of how you will manage the biggest potential risks, e.g. malpractice insurance, other insurances, data security and your credentialing process.
• Marketing – how you will get new patients and retain the existing ones.

As well as all the information about your medical practice and strategy, it’s also important to set goals and targets for your new venture. These should be in your business plan so you can keep track of them and make sure you’re working towards them consistently.

Making sure you have a solid business plan

So how do you make sure your medical practice business plan is solid? It’s very easy to have your plan in your head, but if you don’t get it out, it’s going to be hard for anyone else, especially the other providers and support staff in your practice to implement it. So the first step is to put it down on paper, or in a word document.

Once you’ve got a detailed plan on paper, don’t just put it in a drawer and leave it. Business planning should be a regular task for you and your business partners. Once you have your business plan in place, make sure you review it at least once a year, preferably more and update it as your business priorities change.

Writing a business plan for your medical practice might seem like a time consuming task, but it’s well worth the effort. With a strong business plan, you can grow your practice, achieve your goals and avoid many of the pitfalls that can trip up practice owners who haven’t taken the time to plan ahead.

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Healthcare Business Plan Template

Written by Dave Lavinsky

Healthcare Business Plan

You’ve come to the right place to create your Healthcare business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Healthcare companies.

Below is a template to help you create each section of your Healthcare business plan.

Executive Summary

Business overview.

Riverside Medical is a family medical clinic located in San Francisco, California. Our goal is to provide easy access to quality healthcare, especially for members of the community who have low to moderate incomes. Our clinic provides a wide range of general and preventative healthcare services, including check-ups, minor surgeries, and gynecology. Anyone of any age or group is welcome to visit our clinic to get the healthcare that they need.

Our medical practitioners and supporting staff are well-trained and have a passion for helping improve the health and well-being of our clients. We serve our patients not just with our knowledge and skills but also with our hearts. Our clinic was founded by Samantha Parker, who has been a licensed doctor for nearly 20 years. Her experience and compassion will guide us throughout our mission.

Product Offering

Riverside Medical will provide extensive general care for all ages, creating a complete healthcare solution. Some of the services included in our care include the following:

• Primary care: annual checkups, preventative screenings, health counseling, diagnosis and treatment of common conditions
• Gynecology: PAP tests, annual well-woman exam, and family planning
• Pediatrics: infant care, annual physicals, and immunizations
• Minor procedures: stitches, casts/splints, skin biopsies, cyst removals, and growth lacerations
• Health and wellness: weight loss strategies, nutrition guidance, hormone balance, and preventive and routine services

The costs will depend upon the materials used, the physician’s time, and the amount designated for each procedure. Medical bills will be billed either directly to the patient or to their insurance provider.

Customer Focus

Riverside Medical will primarily serve the community living and working within the San Francisco bay area. The city is diverse and growing and includes people of all ages, ethnicities, and backgrounds. Everyone is welcome to visit our clinic to receive the health care they need.

Management Team

Riverside Medical’s most valuable asset is the expertise and experience of its founder, Samantha Parker. Samantha has been a licensed family doctor for 20 years now. She spent the most recent portion of her career on medical mission trips, where she learned that many people are not privileged to have access to quality medical services. Samantha will be responsible for ensuring the general health of her patients and creating a viable and profitable business medical practice.

Riverside Medical will also employ nurses, expert medical staff, and administrative assistants that also have a passion for healthcare.

Success Factors

Riverside Medical will be able to achieve success by offering the following competitive advantages:

• Location: Riverside Medical’s location is near the center of town. It’s visible from the street with many people walking to and from work on a daily basis, giving them a direct look at our clinic, most of which are part of our target market.
• Patient-oriented service: Riverside Medical will have a staff that prioritizes the needs of the patients and educates them on the proper way how to take care of themselves.
• Management: Samantha Parker has a genuine passion for helping the community, and because of her previous experience, she is fully equipped and overqualified to open this practice. Her unique qualifications will serve customers in a much more sophisticated manner than our competitors.
• Relationships: Having lived in the community for 25 years, Samantha Parker knows many of the local leaders, newspapers, and other influences. Furthermore, she will be able to draw from her ties to previous patients from her work at other clinics to establish a starting clientele.

Financial Highlights

Riverside Medical is seeking a total funding of $800,000 of debt capital to open its clinic. The capital will be used for funding capital expenditures and location build-out, acquiring basic medical supplies and equipment, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Clinic design/build: $100,000
• Medical supplies and equipment: $150,000
• Six months of overhead expenses (rent, salaries, utilities): $450,000
• Marketing: $50,000
• Working capital: $50,000

The following graph below outlines the pro forma financial projections for Riverside Medical.

Company Overview

Who is riverside medical, riverside medical history.

Samantha Parker started the clinic with the goal of providing easy access to good quality health service, especially to those members of the community with low to moderate income. After years of planning, she finally started to build Riverside Medical in 2022. She gathered a group of professionals to fund the project and was able to incorporate and register Riverside Medical with their funding support.

Since its incorporation, Riverside Medical has achieved the following milestones:

• Found clinic space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Hired a contractor for the office build-out
• Determined equipment and fixture requirements
• Began recruiting key employees with previous healthcare experience
• Drafted marketing campaigns to promote the clinic

Riverside Medical Services

Industry analysis.

The global healthcare market is one of the largest and highest-valued industries in the world. According to Global Newswire, the global healthcare services market is currently valued at $7548.52 billion and is expected to reach $10414.36 billion in 2026. This growth is expected to continue for the foreseeable future.

The biggest drivers of industry growth throughout the next decade will be a continual increase in illnesses and diseases as well as a quickly aging population. With more people aging and needing daily/frequent care, hospitals and medical clinics are bound to be in even more demand than they already are.

One obstacle for the industry is the rising cost of care. Though this results in greater profits, more and more Americans cannot afford basic medical care. Therefore, they are opting out of procedures they believe are unnecessary or unimportant.

Despite the challenges of the next decade, the industry is still expected to see substantial growth and expansion.

Customer Analysis

Demographic profile of target market.

Riverside Medical will serve the residents of the San Francisco bay area as well as those who work in the area.

The population of the area experiences a large income gap between the highest earners and the lowest earners. Therefore, it is hard for middle and lower-class families to find quality care that is affordable. As a result, they are in need of the services that we offer and are looking for accessible medical care.

The precise demographics of San Francisco are as follows:

Customer Segmentation

Our clinic is a general family practice and will treat patients of all ages, incomes, physical abilities, races, and ethnicities. As such, there is no need to create marketing materials targeted at only one or two of these groups, but we can appeal to all with a similar message.

Competitive Analysis

Direct and indirect competitors.

Riverside Medical will face competition from other companies with similar business profiles. A description of each competitor company is below.

City Medical

Founded in 2008, City Medical is a membership-based, primary-care practice in the heart of the city. City Medical offers a wide range of primary care services for patients who subscribe to the practice for an annual fee. Patients enjoy personalized care, including office visits, as well as the diagnosis and treatment of common health problems. The patient membership fee covers the services listed below, and most care is received in-office. However, some additional services, such as lab testing and vaccinations, are billed separately. Furthermore, though the annual fee is convenient for some, it is too high for many families, so many are priced out of care at this facility.

Bay Doctors

Bay Doctors is a primary care practice that provides highly personalized medical care in the office or patients’ homes. Bay Doctors includes a team of dedicated healthcare professionals with dual residency in Emergency Medicine and Internal Medicine. The practice offers same-day/next-day appointments, telemedicine, office visits, and home visits. Some of the medical care services they provide are primary care, urgent care, emergency care, gynecology, pediatrics, and minor procedures.

Community Care

Established in 1949, Community Care is a non-profit regional healthcare provider serving the city and surrounding suburbs. This facility offers a wide variety of medical services, including 24-hour emergency care, telemedicine, primary care, and more. In addition to their medical care, they have a wide variety of fundraising activities to raise money to operate the hospital and help families cover the costs of their care.

Competitive Advantage

Riverside Medical enjoys several advantages over its competitors. These advantages include:

Marketing Plan

Brand & value proposition.

The Riverside Medical brand will focus on the company’s unique value proposition:

• Client-focused healthcare services, where the company’s interests are aligned with the customer
• Service built on long-term relationships
• Big-hospital expertise in a small-clinic environment

Promotions Strategy

The promotions strategy for Riverside Medical is as follows:

Riverside Medical understands that the best promotion comes from satisfied customers. The company will encourage its patients to refer their friends and family by providing healthcare benefits for every new client produced. This strategy will increase in effectiveness after the business has already been established.

Direct Mail

The company will use a direct mail campaign to promote its brand and draw clients, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of Riverside Medical.

Website/SEO

Riverside Medical will invest heavily in developing a professional website that displays all of the clinic’s services and procedures. The website will also provide information about each doctor and medical staff member. The clinic will also invest heavily in SEO so the brand’s website will appear at the top of search engine results.

Social Media

Riverside Medical will invest heavily in a social media advertising campaign. The marketing manager will create the company’s social media accounts and invest in ads on all social media platforms. It will use targeted marketing to appeal to the target demographics.

Riverside Medical’s pricing will be lower than big hospitals. Over time, client testimonials will help to maintain our client base and attract new patients. Furthermore, we will be able to provide discounts and incentives for lower-income families by connecting with foundations and charities from people who are interested in helping.

Operations Plan

The following will be the operations plan for Riverside Medical.

Operation Functions:

• Samantha Parker is the founder of Riverside Medical and will operate as the sole doctor until she increases her patient list and hires more medical staff. As the clinic grows, she will operate as the CEO and take charge of all the operations and executive aspects of the business.
• Samantha is assisted by Elizabeth O’Reilly. Elizabeth has experience working as a receptionist at a fast-paced hospital and will act as the receptionist/administrative assistant for the clinic. She will be in charge of the administrative and marketing aspects of the business.
• Samantha is in the process of hiring doctors, nurses, and other medical staff to help with her growing patient list.

Milestones:

The following are a series of path steps that will lead to the vision of long-term success. Riverside Medical expects to achieve the following milestones in the following twelve months:

3/202X Finalize lease agreement

5/202X Design and build out Riverside Medical location

7/202X Hire and train initial staff

9/202X Kickoff of promotional campaign

11/202X Reach break-even

1/202X Reach 1000 patients

Financial Plan

Key revenue & costs.

Riverside Medical’s revenues will come primarily from medical services rendered. The clinic will either bill the patients directly or their insurance providers.

The major cost drivers for the clinic will include labor expenses, lease costs, equipment purchasing and upkeep, and ongoing marketing costs.

Funding Requirements and Use of Funds

Key assumptions.

Below are the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Year 1: 120
• Year 2: 150
• Year 3: 200
• Year 4: 275
• Year 5: 400
• Annual lease: $50,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Healthcare Business Plan FAQs

What is a healthcare business plan.

A healthcare business plan is a plan to start and/or grow your healthcare business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Healthcare business plan using our Healthcare Business Plan Template here .

What are the Main Types of Healthcare Businesses?

There are a number of different kinds of healthcare businesses , some examples include: Nursing care, Physical home health care, or Home health care aides:

How Do You Get Funding for Your Healthcare Business Plan?

Healthcare businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Healthcare Business?

Starting a healthcare business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Healthcare Business Plan - The first step in starting a business is to create a detailed healthcare business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your healthcare business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your healthcare business is in compliance with local laws.

3. Register Your Healthcare Business - Once you have chosen a legal structure, the next step is to register your healthcare business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your healthcare business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Healthcare Equipment & Supplies - In order to start your healthcare business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your healthcare business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Other Helpful Business Plan Templates

Nonprofit Business Plan Template Non-Emergency Medical Transportation Business Plan Template Medical Practice Business Plan Template Home Health Care Business Plan Template

• Business Plans Handbook
• Business Plans - Volume 07
• Healthcare Software Company Business Plan

Healthcare Software Company

BUSINESS PLAN     QUIKMEDINFO

689 Wyoming Avenue Louisville, Kentucky 40202

QuikMedInfo has developed a targeted, well-thought-out marketing plan providing a clear road map of how it will secure clients and allied business partners for its innovative, highly useful healthcare software targeting hospitals. This plan was provided by Trinity Capital.

EXECUTIVE SUMMARY

Company summary, market analysis summary.

• IMPLEMENTATION SUMMARY

MANAGEMENT SUMMARY

Financial plan.

The QuikMedInfo product is an application that allows numerous databases to completely interface with each other without changing hardware or software between parties. The product can work over a secured Virtual Private Network (VPN) and be encrypted at 128 bits. The product developers have concentrated on the medical community as end users—specifically, hospitals. The next logical market would be the health insurance industry.

QuikMedInfo is an innovative new solution in the healthcare industry, bringing a common client presentation to users of disparate systems. Multiple hospital information systems can now be accessed, within or outside of the immediate hospital environment, with a Java-based "common client presentation." QuikMedInfo provides a graphical front end for the user with any of the popular Internet Web browsers, such has Netscape and Microsoft Explorer.

The product is currently developed in seven different modules. As an Intranet application solution, the modules are required to run on a robust server. The installed modules are Admissions, Transcriptions, Laboratory, Imaging, and Pharmacy. Future modules are in development as needed in the marketplace. Home Health and Physician management modules are complete but not installed. Currently five modules are successfully operating in six different environments.

All these modules allow credentialed QuikMedInfo users to access all of the applications via the Internet or through the VPN Intranet. The Admissions application allows users to share data between healthcare organizations, displays information about the patient, and handles patient transactions—including pre-admissions, registration, and admissions. The Transcriptions section creates new transcriptions; doctors now can sign transcriptions electronically, list patient and physician transcriptions, view transcription details, and format all the views. The Laboratory application entails ordering lab tests, viewing results and comments, sorts test criteria, and other laboratory functions. The Imaging module digitizes images such as licensees, photos for I.D. purposes, EKGs, CAT scans, MRIs, and pulmonary functions tests. The Pharmacy module lists medications prescribed for any given patient, views medication details, references patient allergies, and can be linked to all area pharmacies in addition to the hospital pharmacy.

The product will be leased, rented, and sold to potential users. Leasing and renting the product will facilitate faster sales in the hospital environment. Because the full price of the product can reach $350,000, many hospitals must postpone decisions until another budget year. Leasing and/or renting will allow the hospital to make decisions sooner. Also, approaching physicians first in order to sell the hospital on the needs of the physicians will allow for easier access to information.

The hospital industry relies on a multitude of different systems to house the databases they access. These systems are provided by different vendors and do not share data. When physicians and hospital staff need to access data they are required to sign in and out of these multiple databases to complete a transaction. This is very inefficient, and a significant issue for hospitals that find themselves in an environment of decreasing reimbursement from government programs and managed care companies.

The developer of the QuikMedInfo application solution is Best Source Solutions, Inc. QuikMedInfo is a new entity being formed to market the QuikMedInfo product.

Best Midwest Solutions, Inc. (BMS), a value-added reseller of computer hardware and software, worked with a community hospital to find a solution to their problem with the inefficiency of dealing with disparate systems. The result of almost three years of effort and $2.2 million of investment is this software program. It provides a web-enabled interface capable of linking all of a hospital's disparate systems to a single, common view which is extremely simple and easy to use. While the development of the product has been focused on the healthcare industry, the technology is applicable to any industry that uses many different systems.

BMS has sold and installed six units at customer sites. (All of them are very happy customers willing to serve as references.) Four of the installations are healthcare related, and one is in the communications industry. Over the past year the BMS sales staff has spent its time educating the hospital industry about the product and waiting for the hospitals to obtain approval for the capital expenditure. As a result of these efforts, BMS currently has a list of 13 qualified clients representing potential revenue in excess of $3 million. Management estimates the probability of closing these sales at between 30% and 90%.

BMS lacks sufficient capital to effectively penetrate the hospital market nationally. In addition, a more complete and robust management team will fully enable the execution of the plan.

QuikMedInfo is seeking $3 to $6 million in investment. $3 million would be utilized under the guidelines of this plan to expand market share via marketing and in working capital to expand personnel and operational needs.

Successful penetration of the hospital market in years one, two, and three will enable the company to become profitable. Projected profitability occurs at 24 months. Cash flow from the initial investment should be sufficient to execute the plan through the first three years. Any shortfalls should be correctable by commercial banking options. Years four and five call for full national roll out and entry into other vertical markets, primarily health insurance. Management forecasts a $40 million company by year five. A bank line of $1.5 million and a mezzanine debt/equity infusion of $5 million (in year four) will finance the growth and potentially lead to an acquisition or an IPO.

As is characteristic of the software industry, margins are high and cash flow and accumulation are excellent.

Fiscal year 2000 begins in September 1999.

The following illustrates a summary of our financial projections:

• The business goal is to obtain a 20% market share of the target hospital market in the United States within five years.
• We will offer our software to healthcare-related industries including hospitals, third party administrators, insurance companies, etc.
• We will sell our software, its services and professional consulting directly to accounts and through qualified resellers. We have OEM contracts available that already present an opportunity.
• We plan to be profitable in 24 months and have the opportunity to sell the business at a 15x or higher multiple to another company or make an initial public offering.

Our mission is to provide physicians and hospital staff access to critical and multiple sources of data, thereby improving their efficiency in caring for patients. In turn, this will improve patient care, increase patient satisfaction, and save time and operating costs.

Keys to Success

The keys to our success are:

• Bringing multiple information sources to a single, common view that is extremely simple and easy to use.
• Providing a low entry price model by offering the product as a monthly service, as well as a purchase price. The low monthly price eliminates capital budgeting issues and allows quicker decisions by hospital management.
• Interfacing to the various legacy systems through several industry standard protocols. Having legacy vendor access is important but can be overwritten by other tools.
• Obtaining physicians' sponsorship.
• Extending our technology to payors, third-party administrators, etc. who often can make decisions quicker than providers.
• Obtaining required capitalization and key management.
• Managing our channels of distribution and resellers effectively.

QuikMedInfo will acquire the rights to the QuikMedInfo code from Empire System, Inc. (Empire), a value-added reseller of hardware and software products. Empire was started in 1990 and has current revenues of $32 million. Empire is located in Lexington, Kentucky. Empire began the development of this software product because of the need by hospitals and physicians to have easier access to data from disparate systems. Empire has invested $2.2 million and 2 years in the development of the product, QuikMedInfo. QuikMedInfo will provide Intranet/Internet applications to the healthcare industry to enhance access to the industry's disparate legacy systems. This access to critical data is vitally important to patient care and satisfaction as well as to physician and staff productivity.

Company Ownership

QuikMedInfo is located in Louisville, Kentucky. It is owned currently 50% by Rachel Brown and 50% by Ed Roost.

The following summarizes the start-up requirements. Primary requirements are working capital. $3 million is being sought for the purposes of this plan.

Start-up Summary

Company Locations and Facilities

It is expected that QuikMedInfo will be located in Louisville, Kentucky. However, Lexington also may be a future potential headquarters.

QuikMedInfo will sell software and installation services related to that software. The company also will sell professional consulting services that include the design, writing, and implementing of custom screens, file interfaces, and administrative security features related to the software product. The software runs on a variety of computer servers. The software is written in 100% Java, which is supported on many hardware servers and is scaleable from the smallest of servers to the largest of systems.

Product Description

QuikMedInfo sells software for hospitals, physicians, payors, and related entities.

Software is sold with a base server license, seats, and applicable modules.

The software will interface across all disparate hardware and software systems, using the Internet language of Java (licensed by Sun Micro Systems, Inc.). No additional purchase of hardware is required to run the software.

Professional services are provided for customization of the software.

Training and support services are provided as a billable item.

The product is currently developed in seven different modules. As an Intranet application solution, the modules are required to run on a robust server. The installed modules are Admissions, Transcriptions, Laboratory, Imaging, and Pharmacy. Future modules are in development as needed in the market place. Home Health and Physician management modules are complete but not installed. Currently five modules are successfully operating in six different environments.

The QuikMedInfo System

• A single system that will do the data collection, presentation, and transmission without regard to the platform, software, or location of either the original data or end user.
• A system that is sensitive to political, security, and financial aspects.
• A system that recognizes the importance and responsibility of the M.D.
• A system that merges the unique talents of the team.
• A system that recognizes the annual purchase cycles of hospitals and offers a "subscription" or rental option.
• A system that derives from and is validated by the market research we have done with M.D.s and hospitals.

Competitive Comparison

The QuikMedInfo software system has been in the disparate system market for nearly three years. Originally there was very limited competition. We fully expect the competition to increase as Java becomes better known and last year's Y2K issues free up budgets in hospitals, thereby making the sale of the product easier. Presently, our competitors include interface engine companies that are developing web front-end applications, internal application development from a hospital's own staff, and hospital information systems companies who are web enabling their own applications.

However, we have several major advantages that will enhance our chance of success. These are:

• Hospital information vendors are focused on web enabling their applications, not the common access of their applications to other competitive vendors. This is our niche.
• Hospital information vendors generally do not respond to customers' needs for specialization of their applications.
• Hospitals generally follow one another, which is why we have priced aggressively to get a customer base established.
• Our design allows for a very quick deployment.
• Our application is very easy to learn.
• Our application ties many systems together, thereby being more difficult to uninstall later.

Competitors we are aware of include:

• ABC, an investment by Denver Technology Partners. This company has focused on single sign-on applications and has one or two installations.
• Delve, originally an interface engine company, developed a web interface product. This company was purchased by Oneida Systems. Oneida recently went public and had a very successful offering. Another large interface engine company, Mongoose, is developing a web front end.
• Med-Shell, another company that recently went public, provides similar services that we provide to payors. Med-Shell has purchased several companies and is developing its market. It has recently entered into a marketing relationship with IBM.
• JKL provides a repository to view clinical data over the web. We approached this company two years ago as a business partner, but they felt their development was too far along to assist us. JKL has one or two installations and has had those same installations for nearly two years.
• Inter Fuse M.D., a consortium of many content vendors, is entering the market promising to be a catch-all solution to physicians and providers.

Note: Inter Fuse M.D. and a company named DEF have recently merged. This has created a powerful economic entity. However, our management believes that the scope of their focus is much too broad to mount a challenge in our specific niche. We expect to be able to deliver a better product.

Other competitors may be terminal emulations over the web. We do not see these as direct competition. The key to our market success is being able to provide access to the most important 20% of the critical clinical information to 80% of the users in the hospital market. Often times the data exists but it is neither available nor accessible. We offer a solution to bring this data together in a secure auditable manner for these users.

Sales Literature

Most of our marketing literature has been developed. Our collateral materials include:

• A physician-oriented brochure.
• A hospital-oriented brochure.
• An online web site providing information on the product, architecture, white papers, and online demonstrations.
• A brochure aimed at the insurance and third-party administrator market will be developed.
• General tradeshow booths have been purchased in two sizes. These sizes include a 10' × 10' portable booth and a 10' × 20' demonstration booth. The 10' × 20' booth was designed exclusively for trade shows.

QuikMedInfo will own the sole rights to the software product. This software is copyrighted. The copyright will have to be updated from time to time to protect our investments in the code.

The QuikMedInfo software is a 100% Java-compliant application. Java is the single best software designed to write applications for the World Wide Web. It is an object-oriented programming language which allows for extremely fast application development and customization. One of the advantages of Java is its wide support from a variety of hardware manufacturers. Although, other programming languages may appear, such as Microsoft's XML, we have been consistently satisfied with Java's performance. Another reason for choosing Java was the flexibility it provides by running on many hardware vendors' platforms. This provides our customers with the security of scaleable systems. Microsoft's XML only runs on an NT server and thus is limited to the PC marketplace. Java runs on personal computers, midrange systems, and mainframes.

Future Products

Our future includes taking the existing software to complimentary industries, such as payors. The software can be used by any industry desiring to link disparate systems; e.g., the telecommunication industry desiring to link pager, mobile telephone, e-mail and other systems. Also, as installations continue, we will build a library of interfaces that make installations and connectivity easier. New applications are to be added annually to include more connectivity to disparate applications. We expect to sell these new and additional modules for $25,000 to $50,000 each.

The focus of our plan is to develop the medical and hospital application first, then penetrate the health insurance vertical market. These other applications above have the potential to generate many times the revenue projected in the focus of this plan. That may be a strategic reason for an IPO.

As any new product is brought to the marketplace it will gain the attention first of the early adopters, then the primary market, and then the market laggers. Our primary target market consists of community-based hospitals with 200 or more beds. When we tried marketing to large chain hospitals such as Ft. Benson and Diamond, we discovered these organizations are extremely interested in the product but bogged down by their own bureaucracies. The same is true for large HIS application vendors. Therefore, we will stay focused on the smaller and independent hospitals that can make a quicker decision.

Presently, there are about 5,057 hospitals in the United States. Our target market is the "200 bed and larger" facilities, of which there are 1,486. The total target market potential represents $371,500,000. Of the 1,486 facilities, we plan to sell to 300 facilities over the first five years, which represents 20% of our target market. With an average complete sale of $250,000 this would represent $75,000,000 in revenue over five years.

It is estimated that fewer than 10% of these sales will be for cash. Third-party leasing is expected to comprise the majority of our business.

Revenues in our five-year plan above the $75,000,000 million total are the result of additional vertical markets initially penetrated with modest market share in years four and five.

Our experience has been that it takes about a year for a hospital to make a decision. Our marketing efforts of last year are paying off this year as we close the identified opportunities. Our objective is to keep the pipeline full and have regular closings. Many of the existing customers are already returning for additional customization. We expect our revenues to grow at a minimum of 50% to 100% for the next several years.

Market Segmentation

Our market segmentation includes three primary areas:

• Community and regional hospitals averaging about 200 to 700 beds.
• Third-party administrators and payors.
• Government-run programs, Child Health Insurance Plans (CHIPS), and VA hospitals.

Community and regional hospitals are searching for ways to improve their back office operations and to improve relationships with physicians by providing them better access to patient information.

Third-party administrators can use the software to provide remote access to authorizations, eligibility, claims status, referrals, etc. This information also can be shared with hospitals who have the software and can enable electronic pre-admissions.

Payors can use the software to offload heavily staffed call centers by allowing physicians direct access to eligibility, claim status, etc. Payors can in essence extend their operational hours by allowing direct access to data. They can use this program with employers to provide benefit plan details, account status, explanation of benefits, etc.

State agencies funded by the federal government can purchase our "out of the box" application for certain mandated programs.

Other potential markets include any industry with disparate systems that could benefit from a consolidated view of data. An example of this would be the telecommunications industry which may have systems related to their different products. By using our product, you could view on one display a customer's information coming from providers of email services, voice mail, local telephone service, long distance telephone service, paging services, cellular services, cable television, Internet services, etc.

Target Market Segment Strategy

Our target market is the hospital industry where it is very common to find disparate systems. Hospitals typically take one year to eighteen months to make a decision. Providing flexible pricing and purchasing options, which might avoid the need to go through the capital budgeting process, should help shorten this cycle. Also, hospitals do not like to write their own systems and would rather use applications to achieve their needs.

Secondary markets are the insurance payors and third-party administrators that work in the healthcare field. They are interested in providing physicians with access to patient data, such as eligibility, and with the ability to electronically obtain authorizations, referrals, etc. These companies typically make a decision very quickly, and their services may inter-relate with the hospitals to whom and with whom they market.

Once these industries have been established using our product, we would broaden our base to begin to penetrate other industries where disparate systems exist.

Market Needs

The target market is seeking simplicity of its processes, increased productivity of its staff and increased patient satisfaction. Areas of concern are the physician's time to access information, access to proper data from insurance companies, scheduling lab tests, and many back office and/or administrative procedures. Our niche is to bring the needed information from several disparate systems to a single web browser.

An example of this daily frustration is as follows. A physician wants to retrieve the lab test for a patient. Depending on the lab test results, the physician may change the patient's medication and notify the patient of the change. The physician or someone on the staff would access the lab system; complete a sign-in with a password; conduct a patient search; select a medical record, a specific encounter, or visit; and retrieve the latest lab result. Upon finding the result, the physician would then sign out of the lab system and enter into the pharmacy system. The physician would use a second sign-in and a second password, conduct another patient search, locate the visit that has the medication, review, and submit a change to the pharmacist and sign out of that system. The physician would then sign on a third time, with a third password, conduct another patient search to get the appropriate patient demographics to notify them of the lab results and the change of medication. None of the above systems look, feel, or act similarly.

With our software, the physician can retrieve all the above information with one sign-on, one password, and one patient search.

From our visits in many hospitals the 80/20 rule exists: 80% of the people need about 20% of the data. Today that information is not easily available to them. Our product solves that dilemma.

How an M.D. could use the system was discussed during a physician advisory board meeting:

1. A radiologist:

• Patient info available (even at the beach via notebook computer).
• Radiologist at another hospital sees a patient that he wishes to refer.

2. A surgeon:

• Pre-hospital rounds data review.
• Image and lab review.
• Remote chart review and signing.
• Gain access to hospital pharmacy formulary (or insurance co. drug formulary).
• Order drugs that will be effective, available, and insurance reimbursable.

3. An EE&T:

• Quality assurance.
• Scheduling at surgical center.

4. An IPA (Independent Physicians Association):

• M.D. to M.D. referrals.

How a hospital could use the system:

• Electronic chart signature which allows billing to occur much quicker.
• Windy Mountain (newly acquired hospital) can be integrated with St. Thomas Hospital.
• Any of the 100-plus hospitals in Kentucky to communicate with M.D.s.
• M.D. access to lab, X-ray, etc. without new hardware or software.
• Referral data transferred without new entry.

Market Trends

The trends in this industry include consolidation of facilities, competition for physician allegiance, and the need to improve efficiencies with the decreasing reimbursement rates from government and managed care companies. The World Wide Web is going to be the mechanism by which most information will be implemented and routed. Having a tool that acts as a manager of all those possible connections is important and gives the hospitals a great amount of freedom for their future. We feel this trend will only strengthen over the next several years.

The trend for this "connection" will be a vital role as companies race to get to the market. As we build our connections and libraries of interfaces we will become a dominant player in the marketplace.

Presently, the major hospital information vendors are trying to convince hospitals to consolidate all systems to one vendor. If the vendors were successful in creating this trend, then they could provide a web enablement to their different systems. However, there is significant resistance by the hospitals who do not want to be tied to one vendor. First, the hospital would have to discard millions of dollars already spent for information systems. Secondly, the market is dynamic and no one vendor has successfully captured all areas of a hospital sufficiently so that the hospital has no other needs. The closest vendor to achieving this may be Tech5Health which does offer a proprietary, one-source solution.

It appears that most hospitals want the option to purchase the "best of breed" systems and they will need a system to connect their disparate systems. The hospitals will see a product that allows them to maintain their current system investments, purchase new "best of breed" systems but still maintain autonomy by having a common front end. They have the freedom to change as little or as frequently as their business model requires.

The product works especially well for consolidation of hospitals as well, because the common front end can work with entirely two different hospital information systems. This can provide millions of dollars in savings.

Market Growth

This market will have a 30% or higher growth rate. There is no question that web business or "e-business" (as some companies have phrased it) will be the dominant force over the next 10 years. Recent reports by Roger Alison, industry analyst, illustrate huge paybacks for customers implementing this technology.

Industry Analysis

Common front-end systems are a rather new segment in the industry. As systems have become more complex, users are looking for simple ways to access data. We have found the Pareto rule to be true in the healthcare market: 80% of the people only need about 20% of the data. It is unfortunate that the 20% is across many systems and thus difficult to locate. A review of the industry would put us in a developing category called Universal Desktops or Single Sign-On Solutions.

The Healthcare Community

Healthcare has traditionally been a system of distinct parties who must work together and form a service community. The parties include M.D.s, M.D. office staff, hospitals, surgical centers, diagnostic centers, home health agencies, nursing homes, insurance companies, federal and state government, patients, and ancillary service providers. Patient and their information are the common thread. Each party creates unique information for and about the patient and yet has need of some identical information. The concept of using someone else's information without physical presence in the originating facility is a dim hope only. Within each party's organization there exists a microcosm of the situation existing between parties. As an example, a hospital may have data in a billing system, a dictation system, a laboratory system, an X-ray system and a pharmacy system. The means of gathering, storing, and processing information is different for each party and, despite good intentions, multiple data systems present a very steep learning curve. A busy M.D. will likely select those which they must use (dictation and office billing) and ignore the rest.

M.D.s are the mobile link in that they move between the parties and utilize the bulk of the information. By nature, patients in a hospital are unable to travel to an office. In addition there are many times an M.D. may not be near the data they need to answer an "on call" emergency situation without undue travel and effort.

A Brief Functional Overview of the Medical Community

Very high-tech treatment means:

• The entire process is information-driven combined with judgment of the M.D.
• M.D.s are time efficient and will increase efficiency subject to a learning curve resistance.
• Gradual acceptance and implementation of information systems in: Laboratory Imaging (X-ray, MRI, etc.) Pharmacy Billing and patient records Dictation
• M.D. offices adopting information systems for billing.
• Electronic medical records in some M.D. offices.
• Gradual understanding of need to communicate without paper or people intervention.
• Everyone developing their own means to share information.
• M.D. now has to know and use the unique system for each application.
• Hospitals are looking for means to bind M.D.s to them.
• The systems in place use different software and to a lesser extent different hardware.
• All the parties in this community are mildly distrustful of the other's motives.
• HCFA will lobby for secure, automated transfer of data.

Industry Participants

Participants in this industry include the following:

• Single Sign-On Vendors. These vendors offer single sign-on solutions that vary from terminal emulation sessions over the web to more robust sign-ons that also handle password and security. Our product competes well in this environment. We offer a single sign-on to multiple systems, handle security, encrypt data, and retrieve data based upon a user's sign-on identification.
• HIS vendors web enabling their own products. We fully expect each HIS vendor to web enable their own products. These vendors are only interested in web enabling their proprietary software and the large vendors are not known for good customer service. If a customer has multiple different systems he will still have several different systems to access with each system looking and responding differently. The proprietary web enablement will not give the customer with multiple systems anymore ease of use than he presently has with multiple terminal emulations.
• Niche players. There are some direct competitors that we face in the market that offer products similar to ours. These players may address a particular need for a healthcare company such as access to payor information. Healtheon would be an example of this type of company. IBM, also, offers a repository that can be accessed via the web. Our product is more flexible and can better meet the varying needs of the customer.

Distribution Patterns

The product will be sold primarily via a direct sales force. We currently have a few distributors who are excited about the product and have specific opportunities to market the product. These distributors are given a discount that ranges from 30% to 40%, depending upon volume. We also have an OEM agreement that allows the vendor to incorporate the product into their software offerings. This agreement requires an inventory purchase and the company receives payment for each time the product is sold. Both distributors and OEM companies are required to identify the end user to our company for record purposes and quality assurance.

Sales Strategies / Channels

The company's goal is to infiltrate QuikMedInfo into the heart of the healthcare industry. The objective is for QuikMedInfo to be accepted as the standard Intranet application solution that hospitals, doctors, clinics, pharmacies, and laboratories use to obtain necessary patient data. There are three channels defined below to assist us in achieving this goal.

1. Distributors — There are five categories for distributors. These categories are: HIS Vendors (provide legacy-based applications to the healthcare industry). Interface Engine Vendors such as CAI, STC, HCI, and Hublink (provide communication interfaces between HIS vendor legacy applications to transmit data from one HIS vendor application to another). Healthcare industry related consulting firms (providing integration services to hospital organizations). Value Added Resellers (selling healthcare-related solutions to hospital organizations). Computer and Communication Hardware Vendors (provide computer and communication software, hardware, and services to the healthcare industry).

This group of channels, organized to create higher net revenue, will be resellers of QuikMedInfo. They will assist in marketing and selling QuikMedInfo to local hospitals, clinics, pharmacies, and laboratories that desire to take advantage of the benefits QuikMedInfo has to offer. Distributors will receive commissions based on the level of support provided for every sale they complete. The advantages of utilizing distributors is that they are already providing solutions to the primary target market and can easily penetrate these organizations to provide QuikMedInfo as their Intranet application solution of choice. The cost to support these channels is minimal for the amount of return for immediate market exposure they will provide for QuikMedInfo.

2. Independent Representatives — Independent Representatives are sales people under contract to market QuikMedInfo. They are extensions of the direct sales team, with the added advantage of reaching clients in various service areas that the direct sales team cannot or have not approached. They receive no salary and earn only from commission based on the level of support provided for every sale they complete. Like distributors, the advantages of utilizing independent representatives is that they are already providing solutions to our primary target market and can easily penetrate these organizations to provide QuikMedInfo as their intranet application solution of choice. The cost to support this channel is minimal for the amount of return for immediate market exposure they will provide for QuikMedInfo. 3. Direct Sales — Sales are done directly with hospitals, doctors, clinics, pharmacies, and laboratories utilizing company internal sales representatives. As opposed to distributor and independent representative sales, direct sales do not involve middlemen. Hospitals purchase QuikMedInfo from the direct sales team. The team identifies potential customers, contacts those customers directly, and sells the product to them firsthand. As with arrangements involving distributors and independent representatives, direct sales involve educating the industry about QuikMedInfo—therefore increasing QuikMedInfo's exposure.

Competition and Buying Patterns

The hospital market purchases software it deems as having a strong return on investment. Also, the hospitals tend to purchase applications other hospitals have been successful installing. Most sales to hospitals take time, plus involve patience and working with many different persons within the hospital. Reference selling is important. This type of solution to hospitals is very new and has been ahead of its time. Much of the selling in the past year has been educational, positioning hospitals to use the technology. The market is now developing at a much quicker pace.

Hospitals choose their vendor based upon value of the application, price and ROI, and the quality of the vendor (reputation). Image and visibility are important to gain mindshare and the perception of being a national vendor. However, nothing beats reference selling and recommendations from customers. All of our current customers have agreed to be references.

Main Competitors

Our main competition comes from interface engine companies, hospital information systems vendors, and other web providers.

Of the original four primary interface engine companies only two remain. The original four included CAI, HCI, Hublink, and STC. CAI merged with Neon Systems. Hublink was purchased by HCI and changed their name to HIE. STC remains one of the oldest and established firms in their industry segment.

CAI developed a product about the same time as this product. Their product is called Web Connect and is similar in function to this product. They are at about the same stage of development as our company. CAI was purchased by Whiteash Systems, and Whiteash recently had a very successful IPO.

HIE has maintained its focus on being an interface engine company and has moved from the health market to other industries such as finance, and manufacturing. The purpose of an interface engine is to simply take data for system A and place it on system B, C, etc. This is accomplished by hidden coding and so is transparent to a user of an application. An example of this in the healthcare market is a patient updating his phone number when picking up a prescription. The interface engine would place the changed phone number in the patient demographics system, the lab system, etc.

STC is a well-entrenched interface engine company. STC was previously embedded into the Coopers LPMN product and many sales were achieved with little effort. STC had planned an IPO but backed off when they lost the Douglas contract. Recently, STC has begun a web implementation that is to rival this product. For one year they have promised a few customers sweetheart deals to wait on their product. It is still not marketable but is still being developed. Due to their presence and install base they may be successful in getting their customers to delay decisions.

Hospital information systems companies are racing to get their solutions web enabled. The only focus these vendors have is with their own products. None of these vendors have an interest in developing a cross-vendor web solution. The comment is "Why would I web enable my competitor?" This solidifies the niche that our product addresses.

Some of these web solution providers include Core Change, Healtheon, Envoy, and IBM. CoreChange addresses a single sign-on approach to many systems, Healtheon is extending payor information such as eligibility, authorization, claim status, etc. IBM is offering a repository that can extend results to the web. Our product has the design to do all the above and more. It is robust but also can be sold as a minimized solution.

Other web providers have and will continue to appear. These vendors range from terminal emulations to web content providers. Nathan Bedford Forest, in speaking of his success as a General, stated his key to winning the battle was "the firstest with the mostest!" Yes, it is poor grammar; but his point is the first to the market wins mindshare, establishes a brand, and becomes the incumbent player. This product is well positioned to be the industry leader.

STRATEGY & IMPLEMENTATION SUMMARY

Our strategy for this market is straightforward:

• It is our desire to obtain a quick, referable install base.
• Build relationships with neighboring hospitals.
• Emphasize quick installations with high-quality service and support.

Strategy Pyramids

To achieve a quick referable install base, our main tactic is to call the hospitals where we have information system interfaces already completed. This provides us an extremely quick installation and another reference site. It meets our objective of building an install base. This market can be identified through user groups. Our specific programs include mailing to these hospitals, Internet demonstrations of the product, direct selling, and attending trade shows.

Our next strategy is to build upon our successes by marketing to hospitals in the immediate vicinity of the install base. Successful references are great selling tools and successful installations are great sites for other nearby hospitals to visit. Physicians can be a great asset by pressing other providers to extend to them the same information services they are receiving from a local hospital. Our specific program is to call and escort neighboring facilities to visit the installation site. Also, having these references document their "return on investment" aids the selling and decision cycle.

Quick and successful installations are the key to meeting our business plan. By carefully choosing our installs, we will avoid a developing trap by interfacing to a difficult closed-in system. Our specific plan to avoid this is to partner with other solution providers who have expertise in areas we do not, and allow them to sell and install the product.

Value Proposition

Our value proposition is straightforward. The product solution provides daily users of information a highly improved delivery mechanism. This delivery includes the following:

• Accessibility: information is accessible via any web browser.
• Availability: from any browser, laptop, or PDA.
• Accuracy: via legacy system or depository (real time data).
• Affordability: time savings at all points of access and use.
• Accountability: information is encrypted and audited from within.

As an example of value, physicians pay a monthly fee for a pager that only instructs them to call a number. For an equivalent monthly fee, our product provides the physician with immediate access to information that allows him to care for the patient, make decisions, and perform billable work.

Competitive Edge

Our competitive edge exists because we have chosen the right technologies, have been early to the market, and have a plan to quickly establish an install base. This install base will continue to grow because the product itself can be the front end to a multitude of functions. The product is not canned; thus, the user can continue to develop and enable new applications. The single web session can be used for hospital information, payor information, employee benefit sections, and links to other web site and content areas such as MedScape. Existing customers have already returned to ask for new links, new connections, and new modules.

Our competitive edge will be maintained as interfaces to various legacy systems are built into a library. This significantly improves the deployment time for a user. Also, we have established a vendor certification program allowing vendors to forward to us pre-releases of their software to insure compatibility.

Our competitive advantage also will be maintained due to the daily use of the product by our customers, and the difficulty to undo the connections and replace the access to many systems. Additionally, we are in a strong competitive position because information systems vendors are not focused on building web-enabled interfaces for a cross vendor market.

Others who will enter this market will face vigorous competition from us.

Marketing Strategy

The marketing strategy is the core of the main strategy:

• To obtain a quick and referable install base, we will heavily focus on our target market of 1,486 hospitals with 200 beds or more. Of these 1,486 hospitals we have an immediately installable solution for 291 of these hospitals. These 291 hospitals represent HBOC systems running on IBM's AS/400 for which we have already developed an interface which has been successfully running for two years. These 291 hospitals have a user group to whom we have spoken and will continue to work with in the future. Direct mailings, direct selling, and referencing is the strategy we will use with these accounts.
• Upon the successful installation of a hospital we will immediately contact nearby hospitals. We will build from the install location outward. We also will request the senior management of a successful, newly installed hospital for references to other senior healthcare executives that might have an interest in our product. We know that managers of information systems often refer solutions to their peers in the industry.
• The medical community has a flavor of a fraternal order. Especially among like users of a common software and hardware platform. By having quick installations with quality service and support, we are a very referencable solution. Normal installations of health information systems are very long and complex. Managers of information systems are excited when solutions work and vendors keep their commitments. Unfortunately, this is not the normal experience for most installations. Our service and support sets us apart.
• The new marketing strategy of approaching IPAs in each medical community to influence hospitals will make decisions by hospitals happen quicker and will have a positive impact on growth.

Positioning Statement

For medical and administrative professionals who need immediate access to patient information from a variety of systems, this product delivers that information to them from one single source, anywhere, anytime. Unlike their present environment, that may require many attempts and many different computer skills, this product provides all pertinent information with one click.

Pricing Strategy

The price of the product is $75,000 for the server software and $595.00 per user of the software. User prices are then discounted based upon the volume of users. In addition to the software, we charge for interface programming, customization of screen design, installation, training, and maintenance of the product. These are billed at $180 per hour or $1,500 a day.

We provide the necessary hardware if the customer desires us to fulfill that need.

Customers may ask us to perform a prototype of the application. We do these prototypes at our normal consulting rates mentioned above.

To help hospitals make a quick decision we have a rental model of the software. This rental model is based upon the following model:

Minimum length of time is 36 months. This model includes maintenance. Hospitals are more flexible with an operating budget than a capital budget. In case the hospital would like to rent and convert later to a purchase model, we accrue a percentage of the rental towards the purchase price.

Promotion Strategy

• Our promotion strategy is via direct sales to the healthcare marketplace. We have a tight target market which we call directly. We work with senior level management and influential physicians. Our sales brochures help to illustrate the ease of use of the software.
• One brochure is targeted for the hospitals and another brochure will target physicians and IPAs.
• We will develop a brochure for the third-party administrator market.
• We will use telemarketing especially prior to trade shows.
• A public relations campaign and press releases will be developed.
• A web site will be created at QuikMedInfo.org

Distribution Strategy

We have signed agreements with distributors who have products complementary to our own. They already have client relationships and can easily add this product in their product offerings. Distributors have an annual quota and percentage discounts related to their self sufficiency in selling the product.

There are distributors that would like to embed the product in their software—the industry terms that to be "OEMing" (other equipment manufacturer) the product. These distributors receive a much higher discount but are required to purchase substantial inventory and offer the first level of customer support.

Marketing Programs

Our direct sales force is currently comprised of two marketing representatives, one for the eastern half of the United States and the other for the western half.

Both sales people have an annual objective of five hospitals to be installed. They are each responsible for calling the customer base, identifying and qualifying prospects, demonstrating the product, and closing the sale. They are both responsible for having $1.5 million of qualified opportunity defined at any one time. They are to make 100 calls a week and update those calls in a customer database. They are responsible for managing their own travel budget and expenses. They are not allowed to travel to a healthcare facility until all appropriate people are available for the meeting. This has worked well in the past and eliminated flights to interested but unqualified prospects.

Direct sales is very important as the sales cycle is long in the healthcare market. The direct selling effort is increased by visiting existing prospects and finding new prospects at trade shows.

Telesales coordinates all mailings to customers. These mailings include marketing material, product newsletters and press releases. Some type of literature is sent every six weeks to the customer and prospect database. All mailings are carefully recorded and response to those mailings is recorded.

Ed Roost of Best Midwest Solutions, Inc. already travels nationally and calls upon prospects with the representatives. Rachel Brown also visits with other CEOs to build strategic relationships.

Sales Strategy

Our sales strategy is to prospect our target market for potential customers. Upon finding customers that have a need, we offer a specific solution to that need. We follow our prospecting efforts with an online, Internet demonstration of the product. After successfully demonstrating the product, we schedule an onsite visit to the healthcare facility when all pertinent people can attend the meeting. We have found that physicians are our greatest advocate and we strive to make sure that they are a part of our onsite meeting. After a successful onsite presentation, we offer to perform a site survey that is billable. The site survey results in a working document defines the environment, the complexities, similarities, interfacing requirements and any customization required. From the site survey, we build a proposal that lists the price of the server, the seat cost based on the number of users, the interfacing costs, the customization programming needed, installation, training, etc. We work with the customer to review the findings and make certain all areas have been addressed.

Upon acceptance of the proposal the customer is provided with license agreements, maintenance agreements, and a Professional Services Agreement with specific work exhibits that detail the customization and interface programming costs. Customers are then entered into our customer support system that tracks the release level of software, technical contacts, all support calls, and repairs.

Sales Analysis

The long-range goal is to develop QuikMedInfo as an enterprise Intranet application solution for the healthcare industry and utilize the Java-based server technology to provide a number of Intranet application solutions to all types of industries. This goal will be achieved by the success of the introductory two-year plan. In addition, version upgrades will be based on seat licenses and maintenance.

The long-range plan is based on a successful introduction of QuikMedInfo to the healthcare industry. There will be a feasible strategy to successfully launch QuikMedInfo and establish brand recognition for a new line of Intranet application solutions and meet the two-year sales goals.

The sales will be derived from hospitals through locally controlled physician advisory boards. QuikMedInfo will be comprised of a server and seven different modules: Admissions, Transcriptions, Laboratory, Imaging, Pharmacy, Home Health, and Physician Management. Revenues also will be generated from computer and network hardware, server, and seat licenses, installation and training of these products to new hospital installations.

In the healthcare industry, there are 5,057 hospitals, representing the market in which the company has targeted. The company's target market is hospitals with over 200 beds, which is currently 1,486. Of these 1,486 hospitals, the company anticipates being the market leader and obtaining 20% of this market share. This will equate to 300 hospital installations in the first two years.

Based on effective marketing and sales in the first two years the company will position QuikMedInfo as a long-term solution for data resource gathering in the healthcare industry.

Sales Forecast

The following is our list of potential sales:

The expected three-year sales forecast is illustrated and more carefully broken down in its appropriate table.

Sales Programs

Our sales programs are via direct mail and trade shows.

Via our direct mail campaign we send letters and success stories to our target market. These letters may include recent press releases, editorials featuring our product, along with our marketing literature. Mailings include the invitation for a free demo of the product over the Internet. The mailings also may be oriented towards an upcoming trade show that specifically states our booth and the marketing representatives to work with for their particular area. The sales reps are given this information for follow up and to personally invite the prospects and customers.

Educational seminars and end user groups are another avenue we use to educate customers on our technology, services, and expertise. Educational seminars can often be funded by the various professional associations. End user groups provide a wonderful opportunity to market and sell the product and its benefits.

Strategic Alliances

Strategic alliances already in progress include:

Skyenergy, Inc., a wholly owned subsidiary of Northwest Power and Light (a major regional utility company), specializes in application hosting and data transport over its eight-state fiber-optic network. It has shown great interest in the purchase of licensees of the product. Skyenergy currently has a contract with Blue Cross/Blue Shield of Kentucky to provide services to all BC's providers. The QuikMedInfo product can instantly be used in this environment. Timbute Corp., a potential joint venture partner, is a large player in medical diagnostic imaging. It already has distribution of its platform, and a substantial revenue and client base. We would be an add-in service. Sun Microsystems has already agreed to do maintenance and support where required. They have complete diligent knowledge of the product.

No agreements have been signed to date. Many other strategic potential partners exist.

Our most significant milestone to date? Our "installed customers." They are very happy with the QuikMedInfo product and are excellent references. They include:

Thomas Medical Center (268 beds) - Installed August 1998

Thomas is the original customer that conceived the need for such a product and offered its employees and staff to assist in the initial requirements documentation. Thomas presently uses the product extensively in medical records. Thomas uses the product for one view of patient demographics, document images, and pharmacy. The customer is initiating the laboratory views of the product and will follow shortly with transcriptions.

Trinity 7 Communications - Installed January 1997

Trinity 7 Communications is a provider of telecommunication services. The company offers paging, cellular, voice mail, email, and long distance products. These services may be provided by many vendors. The software product allows them one common view to these different providers and their different systems.

Michelin Wool - Installed February 1998

Michelin Wool is one of the nation's largest third-party administrators and managed care companies. It offers physician management services as well. Michelin Wool uses the product to allow physicians access over the Internet for eligibility, authorizations, claims status, etc. Michelin has purchased a tool kit and is developing some of its own designs.

State of Oregon - Installed March 1999

The state of Oregon has purchased the product to use in a federal and state program called CHIPs (Childrens' Health Insurance Program). This product allows a provider to check a child's eligibility with the primary payors in the state prior to rendering services and before applying the charges to the state fund. This is a highly advanced application as the entire transmissions are secure and encrypted from all aspects.

Greene Medical Center of Titan, Oregon - Installed April 1999

Greene Medical Center uses the product to interface to several HBOC systems. The company retrieves information from lab, patient demographics, pharmacy, and is developing an interface for transcriptions. This customer may purchase a tool kit to develop some of its own applications.

Other forthcoming milestones are summarized in the following table:

The new management team will be comprised of individuals who are currently with Empire Systems or other respected corporate leaders in the industry. They already understand the market and have been responsible for product development and sales penetration to date. Management bios follow.

Organizational Structure

Our organization structure is divided into three functional areas:

1. Product development and support — The role of this function is to continue to develop the product and new modules, write the appropriate interfaces and customized programs and offer maintenance for the product. 2. Sales and marketing — The role of sales and marketing is to market the product, educate customers, and build a reference base of customers. Sales and marketing conducts telesales, direct sales, etc. 3. General administration — This group manages the sales, invoicing, collection, and accounting of the group. It provides oversight of the entire organization.

Management Team

The management team includes the following individuals. Ed Roost will serve as CEO either on an interim or permanent basis. The potential exists in the personnel forecast to recruit and add a CEO.

Senior Executive Vice President—Rachel Brown is the co-founder of Best Source Solutions, Inc. She is a 1980 graduate of the University of Cincinnati (Accounting degree). She worked for Arthur Anderson in Denver and then worked for IBM from 1980 to 1987, leaving the company as a marketing manager in Point Kenton, Ohio. She was responsible for such accounts as General Electric, Great Lakes Banking, and other major accounts. Rachel became Senior Vice President of Memblast in Cincinnati, Ohio, and was responsible for computer equipment brokerage and leasing. She purchased an interest in a small software company to bring it home to Louisville, Kentucky. In 1990 she started Best Source Solutions and is responsible for the day-to-day sales of that company. Rachel will continue to run Best Source Solutions. Executive Vice President - Ed Roost is the current President of Empire Systems, Inc. He has 18 years of experience in sales and marketing including six years in sales with IBM. He and his partner Rachel Brown began Empire five years ago and have built a profitable company with $45 million in annual revenues. Ed has the most day-to-day experience and working knowledge of the QuikMedInfo software. He has been responsible for all current sales and prospects. Vice President of Sales - Nicholas DiMuzzio brings eight years of marketing experience to the healthcare area. Prior to becoming Vice President of Sales, he represented Redheart, a surgical supply vendor for acute care hospitals. DiMuzzio's experience also includes six years with American Health Buys where his duties included project engineering and contract negotiations with sales and marketing for their large buying groups. Vice President of System Design - Monica Wren is one of the key developers of the product. She brings 13 years of programming, design, development, support, integration, implementation, and project management experience to the company. Prior to her career at Empire she worked in development for IBM, Richards Computer, and Mileage H. Research Corporation. Vice President of Project Management - Henry Nerth is another key developer of the product. He brings 14 years of programming, design, development, support, integration, implementation, and project management experience to the company. Prior to his career at Empire he worked in development for Richards Computer and Mileage H. Research Corporation. Application Developer - Ben Hogan has 11 years' experience in programming. His core talents lie in the area of application design and implementation in third-generation languages such as C, C++, and Java. Hogan also has experience in the management of large development projects, most recently the migration of a data warehousing application written in C to the IBM AS/400.

Management Team Gaps

There is a gap for a permanent CFO. It is expected that a temporary CFO will be utilized in year one and year two. A controller needs to be recruited, as well as additional sales people and administrative staff.

Personnel Plan

The company has its personnel needs well defined to handle expected growth.

It is expected that the initial $3 million investment will be sufficient for the first three years of this plan. Revenues should be sufficient to allow for a bank line to cover small shortfalls. Major ramp-up occurs in year four with a mezzanine capitalization of debt/equity combined with a $1.5 million bank line. Such a move could occur earlier if the situation permits. The nature of the software business is high margin and cash flow which also could permit growth without substantial equity dilution.

Important Assumptions

It is assumed that a bank line would be around 8% while a coupon on a mezzanine structure would be at 13% and could include warrants and/or an equity component. It is assumed that 90% of sales will be on credit via lease. If these are sold through a third party lessor, cash flow would accelerate. If QuikMedInfo should become its own lessor or offer access via the web, cash flow would spread more evenly.

For the purpose of this plan third-party leasing is the basis for projected revenues.

Other assumptions follow:

Key Financial Indicators

The most significant indicator is our gross margin. These exceed 80%. Cost of product is primarily packaging, pressing disks, manuals, and potential customer discounts. As long as margins are maintained there will be substantial margin for error in other plan aspects.

At year one levels of burn rate, included fixed overheads, and full salaries, the company can sustain operation with just more than one installation per month.

Profit and Loss (Income Statement)

Projected profit and loss.

The company turns profitable at 24 months.

Proforma Cash Flow

Projected cash flow.

Cash flow remains positive with the only potential exposure in year two. At that point sales shortfalls could deplete working capital. However, cut-backs also would be possible to the break-even levels of year one if required.

Owner's equity skyrockets in years three, four, and five.

Projected Balance Sheet

Proforma balance sheet.

Business Ratios

Return on equity potential certainly warrants early stage investment.

Ratio Analysis

Long-term Plan

There is significant potential for QuikMedInfo to become a dominant industry participant.

User Contributions:

Comment about this article, ask questions, or add new information about this topic:.

How To Start A Medical Software Development Business

If you ask any entrepreneur, starting a business comes with its fair share of challenges.

Starting a medical software development business requires a great deal of effort, dedication and most importantly passion .

If you're willing to put in the effort to build your own business, you're going to want to follow the critical steps to creating a successful brand.

We've created a guide that covers each step of the process - from making key financial decisions, to launching and marketing your business the right way, and tips/strategies on how to grow your business effectively.

Start A Medical Software Development Business ➜ avg revenue (monthly) $73.3K see all medical software development businesses ➜ starting costs $30.2K see all costs ➜ gross margin 85% time to build 360 days average product price $42500 growth channels Email marketing business model Subscriptions best tools Google Drive, Hubspot, Instagram time investment Full time pros & cons 36 Pros & Cons see all ➜ tips 7 Tips see all ➜

💡 Introduction To Starting A Medical Software Development Business

Is starting a medical software development business right for you.

There are many factors to consider when starting a medical software development business.

We put together the main pros and cons for you here:

Pros of starting a medical software development business

• Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

• Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

• Traffic to your website

A medical software development business gives people a reason to visit your website and to keep coming back to you!

• Meaningful business connections

You never know who you will meet as a medical software development business. This could be the start of an incredible business opportunity!

• High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

• High margins

The gross margins for your medical software development business are typically around 85%, which is considerably high and allows you to grow your business and manage costs easily.

• Pick & choose the clients you work with

Medical Software Development Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

• Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

• Unlimited income potential

With starting a medical software development business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

• Predictable income stream

Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Greater Income Potential

With this business, the sky is the limit in regards to your income potential.

• You can decide who you work with

Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.

• You can work from anywhere!

Not only can you start your medical software development business from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.

• Strong Demand & Relatively Recession Proof

The demand for medical software development business is increasing year over year and the business is known to be relatively recession proof.

• You get to inspire others

Your business is one that encourages and inspires others, which in itself, can be very fulfilling.

• You establish yourself as an expert

With starting a medical software development business, you establish yourself as an expert in your niche, which builds your credibility. In return, customers are more likely to trust you and refer you to other friends and family.

• Can build solid foundation of clients

It's unlikely you will have one-off customers as a medical software development business. Typically, you have a solid foundation of clients that use your product and services regularly.

• Results and revenue happen quickly!

Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons of starting a medical software development business

• Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

• Longer Sales Process

A medical software development business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

• High employee turnover

In the medical software development business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

As a medical software development business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

• Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

• Work can be repetitive

You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting!

• Time commitment

With starting a medical software development business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• Difficult to build trust with your customer

With starting a medical software development business, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.

• Complex development process.

The development process for a medical software development business can be quite complex, which may cause delays and challenges when launching and growing your product.

• Complex maintenance

Your medical software development business will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.

• Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

• Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

• Learning Curve

When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

• Equipment Breakdowns

Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.

• Technical issues can be frustrating

Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.

• More challenging to earn passive income

It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.

Big Players

• OpenXcell (86.6K Alexa Ranking)
• GE Healthcare Systems (92.9K Alexa Ranking)
• AllegianceMD EHR Software (104K Alexa Ranking)
• ebix.com (111K Alexa Ranking)
• Scopic (134K Alexa Ranking)

Small Players

• AdviNow Medical - Revenue $200K/month
• illumisoft - Revenue $66K/month
• Bloom Diagnostics - Revenue $20K/month
• Emoface - Revenue $0/month

Search Interest

Let's take a look at the search trends for medical software development over the last year:

How To Name Your Medical Software Development Business

It's important to find a catchy name for your medical software development business so that you can stand out in your space.

Here are some general tips to consider when naming your medical software development business

• Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
• Conduct a search to see if others in the space have the same name
• Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
• As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your medical software development business so important?

The name of your business will forever play a role in:

• Your customers first impression
• Your businesses identity
• The power behind the type of customer your brand attracts
• If you're memorable or not

It's important to verify that the domain name is available for your medical software development business.

You can search domain availability here:

Find a domain starting at $0.88

powered by Namecheap

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your medical software development business:

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• Integrated Medical check availability
• The Acute check availability
• Move in Solution check availability
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• QualityHealthcare check availability
• Holistic Health Maintenance Organization check availability
• WaterySolution check availability
• The Reproductive Medicare check availability
• Saline Settling check availability
• Available Medical Trading Co check availability
• Based check availability
• True Answer check availability
• Hygiene Trading Co check availability
• The Major check availability
• Numerical Informatics Trading Co check availability
• Cnn Software check availability
• Saturated Solves check availability
• NecessarySoftware check availability
• Major Medicines check availability
• EasySolution check availability
• Rural Doctors check availability
• Statistical Application Pro check availability
• Extrusion Solution check availability
• Useful check availability
• The Affordable check availability
• Effective check availability
• Decent Heath Collective check availability
• Normal Panacea check availability
• Initial check availability
• Acidic Result Collective check availability
• Affordable check availability
• Institutions Solution check availability
• Intelligent check availability
• Possible Answer Co check availability
• The Operational check availability
• Use Programming Group check availability
• Related check availability
• Universal Hygiene check availability
• The Acidic check availability
• ComplementaryHealthcare check availability
• CompatibleSoftware check availability
• The Sterile check availability
• Cold check availability
• Infusion Solution check availability
• The Proper check availability
• AmmoniacalSolution check availability
• Inadequate Hygiene Spot check availability
• Managed Heath Spot check availability
• The Ambulatory check availability
• Operational Programming check availability
• The Basic Heath check availability
• Ammoniacal Root check availability
• ManagementSoftware check availability
• Caustic check availability
• Software System Trading Co check availability
• The Solid check availability
• OpenSoftware check availability
• Numerical Informatics Place check availability
• Alternative Answer Collective check availability
• PurposeSoftware check availability
• The Complementary Doctors check availability
• Alternatives Pro check availability
• Generic Computer check availability
• Physiological check availability
• The Prepared check availability
• Future Doctor Pro check availability
• Solid Resolving Place check availability
• Unique check availability
• Holistic check availability
• Commendable Medical check availability
• Permanent Panacea Co check availability
• Doctor Co check availability
• Specific Shareware check availability
• The Unique check availability
• Nursing Spot check availability
• Satisfactory check availability
• The New Hardware check availability
• BetterHealthcare check availability
• Safe check availability
• Solid Solved check availability
• Tool Spot check availability
• Optimal Medicare check availability
• Emotion Solution check availability
• Electronic Software System Pro check availability
• Mainstream Doctors Spot check availability
• Poor Hygiene Collective check availability
• AcidicSolution check availability
• The Free Doctor check availability
• Adequate Panacea Trading Co check availability
• FriendlySoftware check availability
• Term Medicine check availability
• The Decent check availability
• AlkalineSolution check availability
• The Complementary check availability
• Only Answer Co check availability
• Solves Place check availability
• The Latest check availability

How To Create A Slogan For Your Medical Software Development Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your medical software development business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

• Explain the target customer you are catering your services towards
• What problem do you solve?
• How do you make other people, clients, or your employer look good?
• Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your medical software development business:

• The Software People.
• Solution Always The Right Choice
• Software, Where Success Is At Home.
• Special And Essential
• Iatric Is What We Do
• From Unavailable To Accessible
• Appropriate Software, Built For You
• Position Of The Hardware
• From Incidental To Base
• Software - It's Like Heaven!
• Optimal Solution, We Are Here
• Softwares With Air
• Courseware Is What We Do
• Dilute Addresseds Are What We Do
• Next To The Breast, Healthcare's The Best.
• Educational Adobe, Standard Source
• Own Treatment, Behavioral Doctors
• Software For People Who Want More.
• Home Of The Remedy
• Base Of The Software System
• Healthcare For People Who Want More.
• Possible Addresses Are What We Do
• I Bet He Drinks Solution.
• Mental Sanitary, Own Sanitary
• Educational Software, We Take Care Of You!
• Available Adobe, Available Firmware
• Solution - Empowering People.
• You Can Do It When You Healthcare It.
• From Inappropriate To Due
• Healthcare Will Live On Forever.
• Solutions With Soil
• Healthcare Inside You.
• Optimal Settlings Are What We Do
• Work Hard, Debugging Harder
• Acid And Classic
• Healthcare The Only Way To Fly.
• Dial Down The Solution.
• Own Cecities Are What We Do
• Special Programmes Are What We Do
• Appropriate Software, We Care
• Solution Will Live On Forever.
• There's A Bit Of Healthcare In All Of Us.
• Solid Issues Are What We Do
• Available Software, Let's Get To Work
• We're With The Software.
• Better Healthcare, We Care
• Don't Leave Your Software At Home.
• Troubleshooting Is What We Do
• Acid And Drastic
• Work Hard, Compute Harder
• Outcome Is What We Do
• Post Of The Programming
• Summarizer Is What We Do
• Solution Is My Sport.
• Beware Of Expensive Solution.
• From Unsaturated To Sodden
• Made In Scotland From Healthcare.
• Healthcare - Now!
• Healthcares With School
• Saturated And Faded
• Solution Is Crazy Good.

The Software Business Model

Tiered Pricing Model

You may want to consider having different pricing tiers to meet the needs of your customers.

With this model, there are typically 2 or more packages for a specific price that offer a fixed amount of features.

Each package should reflect the needs of the buyer persona - for example, a customer looking for a beginner package may have a very different use case than a customer looking for an enterprise package.

By offering different packages, you're able to target different audiences which will lead to increased conversions and revenue. Additionally, your chances of "upselling" existing customers are much higher as you have establisished trust with your customer and they're left wanting more once their use case evolves.

Per-User Model

Many medical software development business businesses charge a fixed rate per user on the account (either monthly or yearly). This can be especially lucrative if you're targeting larger businesses where the user number will be much higher.

This model is not always preferred as it can be challenging to forecast revenue accurately when the user count within businesses is fluctuating constantly.

Flat Rate Model

If you decide to adopt a flat-rate model, this would mean that you offer only one price for every customer. All customers are treated equally and have access to the same amount of features.

This model is not as common as tiered pricing because it only meets the needs of one buyer persona and can limit growth and you're able to have multiple revenue streams.

Per Feature Model

This model charges customers based on the # of features they need. Customers add features "a-la-carte" which will determine the overall price of the product.

This can be a lucrative model, however, the number of different use-cases customers need can become overwhelming (making the sales process longer) and it can be challenging to find a price structure that works well.

The business model you choose depends entirely on your needs and goals as a company. To find what works well for you, you may want to consider testing several models and conducting market research to see what competition in the space is doing.

The Freemium Model

Offering free trials to your platform is a great way to gain exposure for your business and potentially get new customers!

Finding the right medical software development business is a big deal for most people, so it can be important for customers to try a free version with limited features prior to making a big investment.

Once your customer reaches the limits of their free account, they're much more likely to invest in the premium version so they can gain access to all of the features your product offers.

There are a few different ways you can limit certain aspects of your product:

• Usage quotas : Storage limits or limiting the number of times they can utilize a feature
• Limited features : Only allowing your free user to utilize certain features vs all features - this is also a great way to upsell during the user's experience
• Limited support : Customer support can be time-consuming, by limiting the level of support to free users this is a great incentive for them to upgrade (and will save you a lot of time and money)!

Here's an example of SEO website, Sanity Check offering a free version to their website:

Learn more about starting a medical software development business :

Where to start?

-> How much does it cost to start a medical software development business? -> Pros and cons of a medical software development business

Need inspiration?

-> Other medical software development business success stories -> Examples of established medical software development business -> Marketing ideas for a medical software development business

Other resources

-> Medical software development business tips

🎬 How To Start A Medical Software Development Business

How Much Does It Cost To Start A Medical Software Development Business

If you are planning to start a medical software development business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a medical software development business and outline the costs you should expect for each:

• The estimated minimum starting cost = $62
• The estimated maximum starting cost = $60,161

Raising Money For Your Medical Software Development Business

Here are the most common ways to raise money for your medical software development business:

Business Accelerator

Accelerators are organizations that offer a range of support and funding opportunities for startups.

Typically, this means they help enroll startups in programs that offer mentorship, office space, and resources to grow the business.

These programs are typically 3-4 months and involve intense education and mentorship - most importantly, the startups also offered capital and investment in return for equity.

Here are some of the most popular and well-known startup accelerators in the U.S:

• YCombinator
• 500 Startups

Here are some tips on how to get into an accelerator program:

• Have an MVP (Minimal Viable Product) in place
• Make sure you have actual customers and an overview of how your business is doing (revenue, site traffic, growth metrics)
• Build a team
• Crush your interview - this is a critical piece in the process. Know your business and metrics inside out and most importantly, be able to portray what makes it so unique.

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

• An MVP (Minimal Viable Product)
• A founding team with all proper documents in place (articles of organization, business formation)
• A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

• Management team, their previous experience + current roles in the business
• Market challenge and solution
• Company financials - including a P&L statement, cash flow statement, and projections
• Company progress
• Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

Crowdfunding

For your medical software development business, a common way to raise money is through crowdfunding.

So, what does it mean to crowdfund your small business?

Crowdfunding refers to funding a project through many individual investors.

Here are some items to keep in mind when planning your campaign:

• Sell more than just your product. Sell your passion, your vision, and your story.
• Be real. Give your community honest details about your product.
• Treat your audience as your friends (not just potential customers)
• Put together a great presentation - it will attract people quicker.

To launch a successful crowdfunding campaign, you first need to select the type of crowdfunding platform to host your campaign.

Here are the most popular crowdfunding platforms to raise money on:

Kickstarter

Funding platform for creative projects.

• Pricing: Freemium
• Twitter: @kickstarter
• Website: kickstarter.com

Businesses using Kickstarter:

90 successful businesses are using Kickstarter ➜

Get Kickstarter ➜

Crowdfunding platform for innovations in tech and design.

• Twitter: @Indiegogo
• Website: indiegogo.com

Businesses using Indiegogo:

35 successful businesses are using Indiegogo ➜

Get Indiegogo ➜

StartEngine

Crowdfunding platform that has helped more than 350 companies raise $175M+ from a community of over 250,000 prospective investors.

• Pricing: Free
• Twitter: @StartEngineLA
• Website: startengine.com

Businesses using StartEngine:

Get StartEngine ➜

We connected with one of the most successful Kickstarter campaigns, Photobooth Supply Co, and asked founder, Brandon Wong to give us some insight on his strategy:

Product first, campaign second

So with all of those positive benefits of the platform figured out, we wanted to make sure we had the product itself in the right place before we launched.

We’ve been working on Salsa for a long time now and wouldn’t have felt comfortable revealing the ability to pay for it until we hit a very important milestone. We had a final prototype.

Doing all of the sourcing and actual production is secondary—there was absolutely no way we could have gone public without people being able to see real photos (and touch in person) a functioning prototype.

This meant that we had to do all of the development before we ever saw a cent.

Finding backers in the real world

We launched the product at our annual Booth Summit, which is a convention for photobooth owners to get together and learn from experts in the field. Launching a product in a receptive environment is generally considered to be a good idea. The same was definitely true for us!

We had a crowd of people who had just told us they were dedicated to growing their business… and we had the chance to offer them a way to do just that. I really can’t emphasize enough how important it is to make products that matter for people who will care about them.

This opportunity to see the product in real life was an essential component for our launch, but it might not be the same for you. I think it just shows how essential having a great prototype is. People love to touch and feel what they’re buying, if you’re talking about something physical… you should be able to show a prototype before you ask for money.

Building excitement with even the smallest backers.

We knew that we wanted to have a ton of incentives for early backers so that they’d be rewarded for taking a leap of faith on a new photobooth.

We’re obviously not making a whole lot of money on that first $1999 tier. But it enabled people to be part of something fun.

Every $1999 backer is always going to be able to say, not just that they got a great deal, but that they were one of the first to get on board. It means a lot more than a discount code expiring—just look at how frustrated people are on Twitter when a limited stock of rewards is secretly gobbled up.

Kickstarter doesn’t reveal the names of backers, but it humanizes them. And it just adds to the fun of getting your own spot! Even for someone backing now, they’re able to say that they were an early adopter.

Delivering on our promise

One of the most common critiques of Kickstarter items is that they either never show up or that they take years. I wanted to make sure that our timeline was easy to deliver and also reasonable.

Nobody deserves to wait two years for your product after they pay for it. I felt like we needed to offer a much quicker turnaround than that. We launched on Black Friday 2018 with an estimated delivery of April 2019.

That’s under 6 months and much lower than the average Kickstarter! The most important thing is that we will be able to meet that timeline. You can’t go around promising delivery dates and missing them, this isn’t a consumer product.

Anytime you’re working with the events industry you have to be very transparent and up front about timelines. A bride who books a photobooth needs it to show up on her wedding day. It’s non-negotiable!

What Skills Do I Need To Succeed In Starting A Medical Software Development Business?

As a medical software development business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your medical software development business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

• Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
• Listening and following directions : When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
• Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a medical software development business:

• Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
• Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
• Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
• Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Business Savvy Skills

When starting a medical software development business, there are a few fundamental business skills you will want to learn in order to be successful:

• Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
• Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
• Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
• Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a medical software development business.

For a full list, check out this article here .

Design Skills

Whether you are the one designing the product or the decision-maker for the product, an eye for design is critical when starting a medical software development business. Here's what this looks like:

• Creative Thinking - the ability to develop or design different products or ideas
• Visualization - being able to imagine or visualize how the product will look
• Articulation - the ability to communicate what the design will look like and how it will be executed
• Detail-oriented - paying close attention to all of the small pieces when designing or working on a project
• Some technical skills - knowledge of the design software you are using to create the product or build prototypes.

Other skills that may be valuable to have when starting a medical software development business include digital marketing skills, branding experience, and basic business knowledge.

Coding Skills

Here are some critical skills you will need to start your medical software development business:

• Language acquisition: Common languages include Java, Ruby, Python, HTML)
• Creative thinking: Ability to develop innovative solutions and think outside the box
• Analytical skills : Ability to troubleshoot issues quickly and efficiently
• Attention to detail: Precise and detailed in the approach so that little to no errors arise
• Calm & Collective: Critical that you are able to stay patient when challenges arise
• Communication skills: The ability to explain your approach in a clear and concise way that all team members can understand.

To see more skills and qualities people look for in a medical software development business, check out this article .

Advice For Starting A Medical Software Development Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a medical software development business:

James Bates, founder of AdviNow Medical ($200K/month):

Seek out partnerships and experts; their insights and advice will be critical.

Read the full interview ➜

Adela Barbulescu, founder of Emoface ($0/month):

One thing I cannot stress enough is the importance of communication and finding opportunities to present my company. Word of mouth is what helped me meet my cofounder and our clinical advisor.

Entrepreneurs need to be creative, be persistent, and work hard to find success.

Angelica Kohlmann, founder of Bloom Diagnostics ($20K/month):

A mediocre team with a brilliant idea is less likely to succeed than a brilliant team with a mediocre idea.

Write a Business Plan

Writing a business plan from the start is critical for the success of your medical software development business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

• Executive Summary : Brief outline of your product, the market, and growth opportunities
• Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
• Products and Services : Specifics on the products and services your business will provide
• Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
• Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
• Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
• Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
• Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
• Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

• Location - Is your bank close enough that you can easily make deposits or get cash?
• Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
• Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
• Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
• Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Medical Software Development Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

• LLC : All income and expenses from the business are reported on the LLC personal income tax return.
• S corp : Owners pay themselves salaries + receive dividends from profits.
• C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

• Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
• Consider the number of hours you are working weekly + the type of duties you are performing.
• Set your salary based on your industry-standard, location, and profits (or projected profits)
• Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
• Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your Medical Software Development

One of the most challenging aspects to starting a medical software development business is determining how much to charge for your medical software development.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

• Customer demographic: Age, gender, location, etc.
• Buying habits of your customer: What they buy + when they buy
• Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your medical software development, it's critical that you first identify all of your costs and consequently mark up your medical software development so you can factor in a profit.

The actual cost of your medical software development may include things like:

• The actual cost to make the product (ie. raw materials, supplies, manufacturer).
• Shipping + overhead fees
• Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your medical software development, you'll want to create goals for revenue + how much profit you want your medical software development business to make.

This process is simpler than you may think:

• Think about your breakeven cost (by completing the above step).
• Create a revenue goal based on your break-even cost
• Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
• Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your medical software development is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your medical software development fits best in the marketplace.

All of these factors play an equal part in pricing your medical software development, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Gross Margin Calculator: How to Calculate The Gross Margin For Your Medical Software Development

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your medical software development business.

Calculate your gross margin and profit margin here .

What Type Of Clients Will Buy Your Medical Software Development

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2B markets (business-to-business).

Let's take a look at what this means for your medical software development business:

B2B (or business to business) is a transaction where your medical software development business sell's your product or service to other businesses to help them grow.

Business-to business industries typically includes SaaS products, B2B marketing firms, and other business supply companies.

Unlike B2C markets, the audience is not a consumer at all, but instead a business - so it's important to understand how to best market your product/services to that target audience.

With B2B, driving leads means understanding another company's business processes and creating a business strategy that will help their operation scale and grow.

Here are some tips to consider:

• Your main focus when selling to other businesses is showing value to their business and overall return on investment
• Focus on building relationships , rather than extending your brand awareness through social networks.
• Marketing approach should include things like attending conventions , conferences, and optimizing your online presence (SEO, email outreach, etc)
• Understand that the sales process may mean more effort educating your client, so it's important that you have a well-trained sales team that is knowledgable about the product

Building an MVP (Minimal Viable Product)

When building a medical software development business, it's critical that you first validate your product/service rather than rushing to build it right away.

This could save you months, if not years of building the wrong product/service.

If you're hoping to decrease any sort of risk that comes with launching your medical software development business, designing a prototype can be a great way to de-risk your situation.

The point of your medical software development prototype is that it doesn't have to be perfect.

In the beginning stages, it doesn't matter how rough V1 of your prototype is, it's more important to just get started and you can always refine from there based on feedback from your network and most importantly your customers.

How To Build A MVP

Here are several different ways of building a prototype/MVP:

• Start by building a landing page to see if customers actually need your product and if they are willing to pay for it
• Build a very basic version of your idea and ask for immediate feedback from potential customers
• Present a problem and solution via Facebook/Instagram Ads and see what the response is like

Adela Barbulescu, founder of Emoface dives deep into the process of designing and prototyping their product:

The process towards releasing our first product was a long one since a lot of research and ergonomy studies were necessary. To develop the application, we collaborated with several researchers and clinical specialists, conducted observation sessions in over 100 structures, and tested with 600 beta users.

Our design process is particularly tedious because the end-user has specific needs: we talk about children with sensory-perceptive sensibilities who learn better using visual stimuli and who shouldn’t be over-stimulated. All details are important, from the expressivity and morphology of the avatars to the color scheme and audio-visual depiction of concepts. One risk presenting a user-specific design to the caretakers, because they have a harder time understanding the interface for the children.

Then there is the question of the nature of our work: evaluating socio-emotional skills is very difficult and the standardized tests used by health professionals are not always adapted for the specific needs of a person on the autistic spectrum. Testing and evaluation are particularly difficult for non-verbal users, i.e. diagnosed people who cannot communicate verbally.

Great help for us was working with autistic adults who helped us make UX UI decisions, by pointing out clear preferences for audio-visual content used in the app. Their testimonials were very useful to better understand the needs and frustrations of both children and adults on the spectrum.

While the app was designed on principles based on numerous studies and we have received very positive feedback from our users, a longitudinal test is required to assess the long-time effects of the application usage. We are currently preparing a clinical study with a cohort of at least 50 children to study the usability and effectiveness for sustained use of the app for more than 2 months.

Furthermore, important strategic decisions still need to be taken, for instance: whether we will present our software as an educational digital tool or a medical device, where intense work will be needed to obtain the required certifications and further validate a business model? These are very important topics for the following period.

Early days: working on prototyping, first conferences, and promotion materials (all of which are outdated now)

How To Find The Right Developer For Your Medical Software Development Business

If you (or others on your team) don't have the necessary coding/design skills to build the product on your own, finding the right developer for your medical software development business is a critical piece to bringing your idea to life.

Prior to hiring someone, you'll want to:

• Have a very clear understanding of what your product (or MVP) will look like
• Understand what the details of the user experience will look like (pages, how users sign up, backend administrative details, billing, reports etc). It may help to draw out the prototype and UX experience on a design platform such as Sketch
• Understand what features you want to implement now and even those in the future
• Understand the costs and time associated with hiring a developer and set a budget (more on that below)

Here are some ways you can find a developer:

• Use your network or attend a conference!

Arielle Frank, founder of Clout Collective talks about her experiences and lessons learned when hiring a developer as a non-technical founder:

My first attempt to find a developer was a massive failure. I was basically screaming to be taken advantage of with my lack of technical knowledge and a heart full of hope. I signed an extremely unfavorable contract with a developer based in Morocco who claimed to offer “discounted” development services in exchange for equity in the company. By “discounted” I mean that it would cost only $40K to build the MVP. At the time I had no frame of reference for whether or not this was normal and justified it to myself.

Luckily, after a lot more internet sleuthing, I found my current developer, Adeva. Working with Adeva was the opposite experience of my initial encounter in every way. At $8K, Adeva’s quote for my MVP was literally 1/5th the cost of the original developer! I decided to save money on a front-end designer for V1 by using a template and designing things where I could in Figma.

I was forced to figure out many of the details and features of the platform upfront since Adeva couldn’t give me a quote without detailed user stories.

When building out the prospective features, I tried to focus on the end result and work backward from there.

For example, the end goal was for a content creator to be able to read a review and know whether or not they want to collaborate with a specific brand. I used this goal to inform the questions I collected for the reviews and the best way to display this info. During this phase, I also relied heavily on my beta testers for feedback about which info would be the most useful for them.

It’s tempting to add a bunch of cool, slick features when you’re building your product, but my brilliant mentor encouraged me to focus on doing one thing extremely well.

🚀 How To Launch Your Medical Software Development Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

• Pick a domain name that's easy to remember and easy to type
• Choose a Web Hosting Plan (ie. Shopify, Squarespace)
• Make sure you choose the right theme and design
• Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Medical Software Development Business

There are various different ways you can launch your medical software development business successfully.

Here are a few different strategies to get customers excited about your medical software development business.

• Build hype with a landing page : you can effectively do this through waiting lists, discounts, countdown timer etc
• Create a teaser video : even just a 30 second video is a great way to exposure for your medical software development business, and possibly even go viral
• Reach out to influencers : The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
• Get Press : Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
• Launch on popular sites : A great way to get buzz about your medical software development business is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

• ProductHunt
• Hacker News

Learn more about how to launch your business successfully ➜ here

Dan Prince, founder of illumisoft dives deep into the process of launching the business:

In early 2014, I was allowed to help someone in dire need, the CEO of an early startup by the name of Unidoor Enterprises, who had hired a technology agency to produce a prototype of a software system. After several months without any evidence of progress, he wanted me to help him determine if he should continue that relationship. He wanted me to do an assessment, and of course, he wanted to pay me for my time.

My initial response was to turn him down. I didn't need another job. I had a good job already as a software development manager over several teams at Epiq Systems in Kansas City. But over the next several weeks, he contacted me several more times, asking and then finally pleading with me to help him.

I gave in and agreed, but only because of his desperation. I said I would help him, but I wasn't going to charge him because I didn't want the hassle of billing and taxes. I just wanted to give him a quick favor and then go on with my life.

After a preliminary audit of the agency situation, I determined that they would not be able to provide the system. I reported the same back to the Unidoor CEO with regret about the situation. But then I saw hopelessness in his eyes. The owner had invested a lot of money, and the lack of software was keeping them from moving forward.

If the CEO couldn't deliver on his part, it would be a huge issue for the entire company. So, again, I gave in and told him I would see what I could do. Within a month, I had hired a handful of developers and was busily creating the software for Unidoor.

Learn everything that you can learn. Understand that people are flawed and that you have to accept them for their contribution rather than their proximity to your ideal.

When I first started illumisoft, we were not a purpose-driven company. My only goal at that time was simply to stay in business and to do so, we aimed to provide our services to anyone and everyone that needed them. I didn’t even know what a purpose-driven company was, but I knew I could help any business reduce costs and increase efficiency by modernizing its processes with technology and intelligence.

A couple of years into it, we completed a project that helped a local hospital do diabetes research, and we learned something very valuable.

After the project, we learned that the results of the work that we had done were going to benefit hundreds of thousands of children with type one diabetes who live longer, happier, healthier lives. The joy I felt personally provided such a great level of satisfaction that simply reducing business costs paled in comparison. Knowing that our work helped so many people was a real-life changing experience.

Since that day, we have revamped illumisoft and turned our focus on providing services only within healthcare and healthcare research companies. We realized that it’s not enough to build good solutions; it’s not enough to delight our clients; We want to provide a benefit to the world, or it’s just not worth doing.

🌱 How To Grow Your Medical Software Development Business

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

• Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
• Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
• Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your medical software development business.

• Google Ads Keyword Planner invaluable for discovering search trends.
• Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
• Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

• Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
• Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
• Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
• Ensure pages load quickly - This will also help with engagement and time spent on your website
• Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

• If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

• Create infographics with relevant data that people want to share
• Promote your content on different sites/look into "guest blogging"
• Contact influencers/journalists/bloggers and ask them to mention you!
• Write testimonials for other sites in exchange for a backlink
• Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

• Fascinating case study
• Video series
• Free week of the product
• Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

• Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
• Newsletters - a great way to give customers updates or send out your latest content
• Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
• Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
• Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

• Showcase 5-star reviews from other customers
• Offer a small discount + free shipping
• Great design + clear call to actions!

Form partnerships for your medical software development business

Starting a medical software development business is all about building relationships and becoming an integral part of your community.

Many entrepreneurs make the mistake of thinking they can do everything on their own. In reality, other businesses (even your competition) and members of your community can be a huge piece of your growth strategy.

When forming any type of partnership, a lot of energy and time can go into this. To ensure it's worth your while, dive deep into the vetting process and ask yourself (and them) the following questions:

• What are your businesses values and priorities?
• Who are your customers? What matters most to them?
• In what ways can we both bring value to each others businesses? Cross promotions? Clout/credibility?
• Should we do a trial run first to make sure this partnership works out before finalizing an agreement?
• What will the agreement look like?

Once you have an idea as to what the ideal partnership agreement looks like, that's when the outreach begins (the hardest part)!

Here are some different ways you can meet other entrepreneurs and form partnerships:

• Simply talk to other people in the medical software development business industry. You'd be surprised as to how willing other entrepreneurs are to share their knowledge with you
• Host an event: By inviting people to your event in your community and industry, you may be able to form partnerships and expand your clientele
• Join a facebook community: Nowadays, everything is online. A great way to meet other people is to become 'active' on a public forum or community
• Use other social networks such as LinkedIn or Twitter to aid your outreach. This can be a very powerful tool if used properly.

Forming partnerships and building relationships within your community can be a very valuable tool, but it's important that you do your due diligence and avoid going in blind to any sort of partnership. This can save you months, if not years of time.

Mike Aspinall, founder of The Crafty Gentlemen discusses how brand partnerships are the most important part of his growth strategy and revenue stream:

My main revenue stream is sponsored brand partnerships, whereby a company pays me a fee to feature their product within one of my blog posts.

Over the years, I’ve worked with some really cool brands – Etsy, Hobbycraft, Cricut, Pinterest, Gorilla Glue, Singer, Janome, Brother, Bosch, and lots more.

For a long time, I was hesitant to charge for my work – I was happy to work in exchange for products. But there came a point where I was being offered more work than I could have said yes to – something had to change. So I started to charge for partnerships. And brands agreed, no questions asked!

The last 6-12 months have been the most successful yet for my business. I’m making regular revenue through multiple streams, including sponsorships, media appearances, influencer work, and passive ad revenue. My website traffic is at an all-time high, and growing – as are my social media followings:

🏃🏼‍♀️ How To Run Your Medical Software Development Business

How To Retain Customers For Your Medical Software Development Business

Retaining customers is one of the most effective ways to grow your medical software development business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your medical software development business:

• Responding to comments on social media
• Send discounts (or freebies) to loyal customers
• Provide valuable content, for free
• Write a hand written thank you note
• Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Adela Barbulescu, founder of Emoface dives deep into the process of attracting and retaining customers:

An important step before launching is building a solid community of users and partners. If you are just launching a business, it is essential that the founders are able to pick up the phone and interview potential clients. As I started, this was a particularly difficult step: first of all, as a creator of the product with a technical background, having a commercial/marketing stance felt very weird; added to this, French was my third language and the people interviewed came from a professional background with a specific lexical field.

What helped me kickstart this step was working with a growth hacker who designed a schedule with a discourse we wrote together: I had 3 weeks to interview 10 associations, 10 schools and 10 liberal practitioners. These first contacts revealed essential information and some of them became longtime partners.

Looking back, I can identify several mistakes, among which the initial tendency to do everything on my own and the obsession with details, without having cleared a strategy.

Another step that helped gather qualitative information was publishing on our website an open questionnaire for different segments (professionals, parents, autistic adults, association members).

The next step was creating partnerships with decision-makers and expanding our network by participating in important events in the field. I particularly recall an AI forum during which I gave an interview (unbeknownst to me) to a reporter representing a national press agency. Her article was later re-published in national newspapers which resulted in 3000 new visitors to our website.

Today we are still in the process of launching our first product but we have been through the process of launching a beta test last year. We did it as soon as the first confinement in France was installed and we believe this had a big impact especially on the usage of the app from home.

The growth was steady and we haven’t yet relied on paid apps nor spent much effort on SEO. 30% of the users come from Google search and 30% from recommendations. The rest is an aggregation of social network (20%), press, newsletter announcements from our partners, conferences and workshops.

Last year was very rich in terms of partners and accelerators we worked with, which also gave us access to their networks and helped us carry a PR campaign in Romania. We are now in the process of defining our digital and commercial strategy in order to attain the objectives for this year: reaching at least 2000 new users, testing the business model (mobile store subscription plan) and conducting a clinical evaluation.

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

• Meeting the needs of your customers
• Establish yourself as a top provider in your industry and stay ahead of the game with competition
• Resistance to downturns/trends fading
• Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Authenticity

As a brand, you want to deliver an experience that authentic, honest and transparent.

Don't make the mistake of giving your audience less credit than they deserve.

Be Authentic

If you go around chasing every trend and only focused on yourself and money, you’re going to lose very quickly.

There have been many times where we have been tempted to do this but stayed true.

Sure we sacrificed sales, but we kept our integrity, played the long game and people saw and appreciated that, and really began emotionally investing in the brand.

Word of Mouth

The most tried and true way to grow a medical software development business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

• Consumers trust word of mouth above all other forms of marketing
• 92% of consumers believe recommendations from friends and family over all forms of advertising
• 64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

How To Crush The Sales Process For Your Medical Software Development Business

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding , give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

We put together the best resources on the internet to help you start your medical software development business.

• Email tools such as MailChimp , G Suite or Whatsapp
• Social media tools such as Facebook , Instagram , Twitter , YouTube or LinkedIn
• Advertising tools such as Facebook Ads or Instagram Ads
• Analytics tools such as Google Analytics
• Productivity tools such as Google Suite , Dropbox , Slack , Microsoft Office 365 , Calendly , Toggl , Jira , Airtable , Doodle or Discord
• Payments tools such as Paypal or Bill.com
• Blog tools such as WordPress
• Accounting tools such as Quickbooks
• Design tools such as Adobe Suite , Inkscape or HubSpot’s form builder
• Crm tools such as Hubspot
• Customer service tools such as Facebook Chat App
• Education tools such as Udemy , Coursera , Skillshare , Lynda or Masterclass
• Stock images tools such as Unsplash
• Sales tools such as Salesforce
• Platform tools such as Adobe Creative Cloud , Strikingly or trello
• Financing tools such as Expensify
• How To Start A Medical Staffing Agency Business: Complete Medical Staffing Agency Start Up Guide: Janet Brown MSN

Medical Device Software Verification, Validation And Compliance

Antifragile: Things That Gain from Disorder (Incerto)

Good to Great: Why Some Companies Make the Leap and Others Don't

Web Resources

• Medical Device Software Development - Sciencesoft Inc.
• Medical Software Development Companies: How To Choose The Best One
• How To Start A Medical Software Company - David Perez
• Best Practice For Medical Software Development

Case Studies

• On Developing Tools For Training Socio-Emotional Skills
• I Built A $792K/Year Software Development Company [For The Healthcare Industry]
• How We Started Our $100K/Month Medical Artificial Intelligence Software Company
• We Raised $21M, Built A Home Blood Testing Device & Took It To Market
• 43 Trending Medical Software Development Businesses [2024] 1 of 6
• 36 Pros & Cons Of Starting A Medical Software Development Business (2024) 2 of 6
• 7 Tips For Starting A Successful Medical Software Development Business (2024) 3 of 6
• 5 Medical Software Development Business Success Stories [2024] 4 of 6
• How Much Does It Cost To Start A Medical Software Development Business? (In 2024) 5 of 6
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Healthcare Business Plan Consulting

Our healthcare business plan consultants have hands-on experience founding, funding, and scaling ventures. we’re much more than an ordinary business plan writing service. think of us as your co-founder for the duration of our project..

Home » Industry Experience » Healthcare, Biotech & Medical Device

Are you looking for a skilled healthcare, biotech or medical device business plan consultant ? Our experience in the industry includes:

Biotechnology

• Cosmeceuticals
• Durable Medical Equipment (DME)
• Disposables
• Electronic Health Records
• FDA / Regulatory Affairs
• Gene Therapy & Gene Editing

Genomics & Proteomics

• Healthcare Administration
• Healthcare Financing / Reimbursement
• Healthcare Services
• Healthcare Software
• Implantables
• Instrumentation
• Laboratory / Clinical Services
• Medical Devices
• Medical Diagnostic Instruments
• Nutrition & Nutraceuticals
• Pharmaceuticals & Drug Discovery

Physician Practice Management

• Prosthetics
• Rehabilitation Facilities

The materials that Cayenne created for us enabled us to ultimately close several large rounds of financing and reach where we are today. — Dr. Marvin Slepian, Co-Founder and Chairman , SynCardia Systems (Artificial Heart Systems), Tucson, AZ

Want to look inside a sample Medical Device Business Plan?

One of our clients has allowed us to share this real-world example of their medical device business plan on our website. Get a sense of how our healthcare business planning expertise can best serve you:

Medical Device, Biotech & Healthcare Industry Experience

Diagnostic equipment.

Developed and executed the business plan for two startup companies to bring new biotech diagnostic tools from concept to production that included the sales and marketing plans and strategies, financial analyses, technical roadmaps, and outside agency certifications to bring the products to market.

Artificial Heart Systems

Developed the business plan, financial forecast, and website for SynCardia Systems, a Tucson-based medical device company that develops, manufactures, and markets the CardioWest Total Artificial Heart systems for use as a bridge to transplant in patients with end-stage heart failure.

Biotechnology Reagents

Prepared the business plan and financial model for a division of a billion-dollar public biotechnology company. The business makes instruments, consumables, and software for scientists engaged in medical research, drug discovery, agricultural research, biosecurity, and quality and safety testing.

Heart Transplant Monitoring

Prepared the business plan, financial forecast, and pitch deck for a firm that has developed an innovative system for monitoring tissue rejection among heart transplant recipients. This system overcomes deficiencies presented by existing technologies.

Prepared the business plan and investor presentation for Florence Medical, a medical device company. Florence develops advanced systems based on computational flow dynamics for diagnosing and treating cardiovascular disease.

Rehabilitation Services

Developed the business plan and financial forecast for Safe Harbor Retreat, the first upscale substance abuse rehabilitation center on the East Coast. The company has forged alliances with several leading experts in addiction treatment.

Brain Cancer Drug Delivery

Prepared the business plan, financial forecast, and investor presentation for CytoDome, a medical device company. CytoDome is developing a local drug delivery device that aims at regulating drug uptake by ailing brain tissue.

Interventional Radiology

Prepared the business plan, financial forecast, and investor presentation for UltraGuide, a medical device company. The company develops advanced guidance systems for interventional radiology.

Remote Patient Monitoring

Prepared the business plan, financial forecast, and pitch deck for a firm that developed an implantable device and monitoring system that eliminates the need for endomyocardial biopsies in heart transplant patients.

Biodegradable Stent for BPH

Prepared the business plan, financial forecast, and website for a firm that is developing cutting-edge, biodegradable polymer-based, local drug delivery stenting technologies for treating Benign Prostatic Hyperplasia (BPH).

Neurological Pharmaceuticals

Prepared a market assessment for a pharmaceutical company seeking to understand the business potential for a promising early-stage pharmaceutical used in the treatment of neurological disorders.

Medical Device for Wound Management

Prepared the business plan, financial forecast, and investor presentation for a medical device company that develops and markets a unique line of RF-based wound care technologies.

Medical Diagnostic Software

Prepared the business plan and financial forecast for a developmental stage enterprise conceived to provide a convenient, confidential, and affordable way for consumers to access diagnostic laboratory results and manage their own health.

Laser Surgery Equipment

Served as the CTO of a startup that developed laser-based equipment for cataract surgery. Directed early-stage research and development. Developed supporting materials for business plans, financial forecasts, and investor presentations.

Drug Delivery Device

Revised business plan, prepared pitch deck, and successfully raised capital for a later-stage company that designed a retractable syringe delivery system in response to concerns related to the potential for healthcare givers contracting infectious diseases.

Prepared the business plan for High Throughput Genomics. HTG develops and markets advanced technologies for analyzing the transcriptome – the RNA that transcribes DNA into proteins – providing pharmaceutical companies with a tool that can revolutionize the drug discovery market.

Hospice Services

Developed a business plan for a leading hospice provider in Idaho and Eastern Oregon. As one of the only large-scale hospice providers in the region, the company is actively acquiring independently-owned hospices as well as launching services in underserved localities.

SaaS-Based EMR

Developed proprietary software architecture, business plan, and investor pitch for a new concept in patient-oriented Electronic Medical Records. The system was designed to overcome some of the impediments to widespread adoption of EMRs inherent in existing systems.

Healthcare Strategy Consulting Practice

Managed consultant teams, market research, and day-to-day client relationships. Projects included working out a novel risk-sharing arrangement with the major regional insurance company for a 300-bed hospital and creating a managed care strategy for a rural tertiary care hospital and its affiliated physician groups.

Evaluated operational projects up to $2 million and acquisitions up to $20 million for an oncology physician practice management company as the company expanded from two to thirteen states over a period of two years. Led inter-departmental due diligence and integration teams for new physician group affiliations.

Medical Records Management

Created a business plan for team of radiologists who created a HIPAA-compliant software solution that allowed the transmission and storage of radiological images by separating the image from the identifier during transmission and storage. The image and the identifier would only come together in a secure, password protected environment.

Personal Emergency Response Systems

Developed a marketing plan, PPM draft, business plan, executive summary, pitch deck, and cash flow analysis for Innovate, Inc., developer of personal emergency response systems.

Online Support Community

Prepared the business plan, financial plan, marketing strategy, and investor pitch for an innovative psychiatric support service which integrates online social networking tools with traditional therapy techniques.

Cancer Recovery Products

Developed an extended executive summary for a company that provides prosthetics and clothing, as well as grooming, styling, and therapeutic treatment products for male and female cancer survivors.

Stem Cell Bank

Consulted on a business plan and pitch deck for a startup stem cell bank working with leading researchers.

Children’s Hospital

Developed an extended executive summary for a proposed children’s hospital to be developed in Nigeria.

Pharmaceuticals Distribution

Led the restructuring and privatization of Kazakhstan’s national pharmaceutical distribution monopoly.

Healthcare Consulting

Developed financial plans for a group of consulting organizations in the fields of hospital strategic planning and administration. Their activities included one of the first Electronic Medical Record systems.

Medical Supplies

Provided advisory services on capital raising and investor communications to PolyMedica Corp. The company markets and delivers medical supplies, such as diabetic products, direct to consumers’ homes.

Drug Test Diagnostic Services

Prepared the investor pitch deck, coached management, and raised capital (as a company officer) for a drug testing laboratory that was subsequently acquired by Kroll, Inc., an industry leader.

Advised a new management team and raised capital for a biotechnology company that engages in the development, manufacture, and marketing of various medical diagnostic test kits and components worldwide. These products aid in the diagnosis of certain autoimmune and infectious diseases.

SaaS Clinical Informatics

Developed proprietary software architecture and design of a new approach to person-centric clinical informatics. Collaborating with other team members, further developed the business plan, financial models and investor pitch. The company is in process of closing its first large outside funding round.

Reverse Engineering Metabolic Pathways

Prepared the IP portfolio and licensing plan for technology to reverse engineer metabolic pathways from mRNA expression data. The original goal was to sub-license the technology to pharmaceutical companies. At the end, the company assigned all rights to a single entity in a major deal.

Molecular Imaging

Prepared a business plan and pitch deck for a molecular imaging company with global sales and distribution to finance its next generation technology. This technology is 50% smaller and cheaper than existing devices, and has better imaging accuracy to reduce unnecessary surgical procedures.

Pharmaceutical Pricing and Reimbursement

Researched pricing in several international markets for a global pharmaceutical company’s new pharma product. Primary research included interviews of key stakeholders and decision makers involved with pricing in each market.

Medical Equipment & Software

Prepared a detailed business plan, pitch deck, and advised management on raising capital for Kinetic Muscles, Inc. The company develops and markets equipment and software used in physical and occupational therapy programs to treat and rehabilitate stroke victims.

Note: Some items reflect experience gained prior to joining Cayenne Consulting. Cayenne does not offer services that require licensing or registration with the NASD or other authorities.

Read testimonials from our medical device, biotech, and healthcare clients .

Why Choose Cayenne? Nine Great Reasons!

Ongoing Support

We don’t stop when the business plan is complete. We have a talented team ready to help you implement it as well, either on a retained basis as interim members of your founding team or on a project basis, as needed.

Avoid Costly Mistakes

We know what works, and, more importantly, what doesn’t. A single mistake can render your plan unfundable. We wrote the original and often-cited article on Why Business Plans Don’t Get Funded .

Fully Customized

Some business plan writers charge extremely low fees because they have a cookie-cutter, assembly-line approach. You get what you pay for. We work from scratch to represent your unique vision, not somebody else’s.

Get it Right the First Time

Funding is a binary event: either you succeed or you fail . If you fail, most investors won’t give you a second chance. Learn about the pros and cons of various approaches to developing business plans .

Work With True Experts

We’ve walked in your shoes and we understand what you’re going through. Many of us have advanced degrees from institutions like Harvard , Wharton , Berkeley , Cornell , Columbia , Stanford , Yale , Dartmouth , and Chicago .

Develop a Winning Strategy

Most so-called “business plan consultants” take whatever you tell them and type it into software. We go much deeper and help develop a viable strategy for success, which we then express in a compelling business plan.

Get Investors To Notice

Most entrepreneurs can’t get investors to return their calls. A majority of our clients secure meetings with potential funders. Our team’s efforts have contributed to over $4.3 billion in financing!

Save Money - Really!

We’re not cheap, but about half of our clients came to us after a business plan prepared by a less qualified business plan consultant did not work out. Why not get it right the first time and save money?

No Salespeople

Deal directly with a senior business plan consultant from Day One – not a commissioned salesperson who will hand you off to a junior writer. Personal relationships matter, and you need to know exactly who you’re dealing with.

Medical Device, Biotech & Healthcare Business Plan Consultants

Roger Anderson, Ph.D.

Tom Dykstra, MBA, CFPIM

Jenifer Grant, MBA

Shyam Jha, MBA

David Kaplan, JD

Lee Muhl, JD

Julia Perederiy, PhD

I'd like to speak with a biotech or medical device business plan consultant.

If you'd like an assessment of your needs and a fee estimate, please let us know how to reach you:

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Medical Lab Business Plan

A hundred billion dollar medical lab industry features an ever-increasing demand. With a promise of higher returns, it indeed is a rewarding business venture to undertake.

Starting a medical lab is no easy feat. The licensing requirements are stringent and the startup costs are high. However, with a detailed business plan, securing the funding and scaling it into a lucrative business gets easy.

Need help writing a business plan for your medical lab? You’re at the right place. Our medical lab business plan template will help you get started.

Free Business Plan Template

Download our free medical lab business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Medical Lab Business Plan?

Writing a medical lab business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.

For instance, you may include specimen collection, diagnostic testing, clinical research, and trials as services and mention fast turnaround time and advanced technology as some of your USPs.

• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Describe what kind of medical lab you run and the name of it. You may specialize in one of the following medical lab businesses:

• Molecular diagnostics lab
• Clinical pathology lab
• Microbiology lab
• Clinical Research and trial lab
• Describe the legal structure of your medical lab, whether it is a sole proprietorship, LLC, partnership, or others. Explain where your business is located and why you selected the place.
• Owners: List the names of your medical lab founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your medical lab services from them. Point out how you have a competitive edge in the market.
• Regulatory Environment: List regulations and licensing requirements that may affect your medical labs, such as business registration, CLIA certification, compliance with HIPAA, state laboratory licensing, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your medical lab business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Blood tests
• Urine tests
• Allergy tests
• Cholesterol and Blood sugar tests
• Thyroid tests
• Additional Services: Mention if your medical lab offers any additional services. You may include services like at-home lab tests, virtual consultation, rapid on-site testing, etc.

In short, this section of your medical lab plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Pricing Strategy: Describe your pricing strategy—how you plan to price your laboratory services and stay competitive in the local market. You can mention special full-body health checkup packages to attract new customers.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales, partnering with healthcare professionals, offering bundled discounts, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing special packages, discount offers, offering premium services like instant test results at no additional costs, etc.

Overall, this section of your medical laboratory business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your medical lab business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your laboratory business’s staffing requirements, including the number of lab scientists and technicians, pathologists, or administrative staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your medical lab business. Your operational processes may include collecting samples, lab testing, data entry, generating results, sending results, offering consultation, archiving data, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your medical lab business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your medical lab, and describe their roles and responsibilities in successfully running the business.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

This section should describe the key personnel for your medical lab services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your medical lab business’s assets, liabilities, and equity.
• Financing Needs: Calculate costs associated with starting a medical lab, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the medical lab industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your medical lab business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample medical lab business plan will provide an idea for writing a successful medical lab plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our medical lab business plan pdf .

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Frequently asked questions, why do you need a medical lab business plan.

A business plan is an essential tool for anyone looking to start or run a successful medical lab business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your medical lab company.

How to get funding for your medical lab business?

There are several ways to get funding for your medical lab, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

Small Business Administration (SBA) loan

Crowdfunding, angel investors.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your medical lab business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your laboratory business plan and outline your vision as you have in your mind.

How do I write a good market analysis in a medical lab business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my medical lab business plan?

The level of detail of the financial projections of your medical lab business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a comprehensive view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good medical lab business plan help me secure funding?

Indeed. A well-crafted medical lab business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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• The 7 Step Business Plan for a Medical Staffing Agency

By Adam Day

• Uncategorized

April 22, 2021

A strong business plan can make or break a new startup. Therefore, if you’re looking to open a healthcare staffing agency, a solid business plan should be your first port of call.

Not only does it provide a clear road map for getting your business up and running, it’s also the first step in applying for a business loan. Furthermore, with so much to handle from financing to legal protection, the act of writing it all down with actionable steps can take a huge load off your mind and make that mountain ahead seem a lot easier to climb 

To help you in your journey, we’ve outlined below in seven easy steps how you can create a business plan for a medical staffing agency.

1. Outline Your Business Goals and Purpose

Start by writing out in clear terms what your business goals are for starting a healthcare staffing agency.

It should be concise and easy to understand. Furthemore, If you’re going to be applying for a business loan, this is your chance to lay out why you’ll need the funds and what your growth targets are. 

2. Decide on the Type of Business You’ll Be Running

Every staffing agency must decide on the type of ownership structure it will operate under. You have a few options, and each have their own pros and cons. Take some time to decide which one might work best for you depending on your personal and business goals. 

• Sole Proprietorship – This is where one person owns the entire business under their own name. Any debts or liabilities that the business takes on are the sole personal responsibility of the owner.
• Joint Partnership – When two or more people open a business together, they enter into a partnership. Depending on the arrangement, each owner may hold an equal or different share in the business. All debts and liabilities are still considered personal. 
• A Limited Liability Company – An LLC comes with significant tax benefits and can be opened under sole proprietorship or joint partnership. Another benefit to this arrangement is that it offers the legal protection of being a corporation. 
• A Corporation – Functions much the same as an LLC, with the important difference that it is owned by its shareholders, whereas an LLC is owned by one or more individuals. 

Whatever type of business you decide on, keeping track of employee time and attendance will make your life a whole lot easier. Learn more about our staffing agency software here . 

3. Ensure Liability Protection

As a nurse staffing agency, you’re in a rather unique position regarding legal protection. Your staff will be working in several different locations, some safer than others and you need to ensure that both they and you have proper protection.

Outline the type of liability insurance you’ll need and how it will protect your company from any damages caused. Since you’re operating in the medical industry, it’s advisable that you go with premium liability insurance. 

You’ll also need proper worker’s compensation in case one of your employees suffers an injury on the job. Your insurance program should cover both medical costs and rehabilitation. As an added bonus, it may also be worth getting short or long-term disability insurance on top of the base package. 

4. Investigate Funding Options

Whatever agency you operate within, when you first get started, you’ll likely be operating out of a spare room.

Furthermore, for the first few months, as you try to hire staff and find clients, your business will probably be in the red, financially speaking.

This is perfectly normal. That being said, eventually you’re going to have to find extra funding before your business can really take off. Employees will have to be paid before you even have clients and you’ll have advertising, recruiting, and operating costs to cover. 

To get yourself through these first early months, outline a plan for how you will fund your business venture. Some of it can come from your own personal savings, but in all likelihood, you’re going to need a business loan to cover the rest. Research what loan options are available and what the requirements are to be approved.

5. Make Revenue Projections

Key to the success of any business venture is an accurate revenue projection. This will be crucial when it comes time to apply for a business loan, so lay out your expected earnings for each month and yearly quarter for the first 2-3 years. It should be properly cited with market reports and financial statements to back up your projections. Be aggressive in your goals, but also realistic. Your loan officer will want to see clear evidence that you can cover your monthly loan payments and any other debts or liabilities you may have taken on.

This is also a good time to think about how you can achieve critical mass, the point at which you have enough staff and clients that your business becomes self-sustaining. When you first get started, you’ll be operating on a shoestring budget and largely dependent on whatever funding you could get.

Try to get a clear sense of how much you’ll need to grow before you can compete in the medical market effectively and remain competitive. Your point of critical mass will be an ever-changing target, so be aware that you’ll need to revise it over time. The revenue projections you make will have a direct impact on the balance between your medical staffing agency’s bill rate vs pay rate .

Revenue projections and medical staffing analysis is made easier by using our staffing agency software . Learn more here. 

6. Develop a Marketing Plan

This is where you will lay out your marketing plans and how you intend to achieve them. You’ll need to outline two marketing plans, one for attracting medical employees and another for clients.

For your medical employees, brainstorm a bunch of ideas for how you can draw talent. For instance, reach out to local schools that specialize in nursing and medical care. You could even try teaming up with a local faculty to encourage new graduates to join your agency. Other methods for finding staff include reaching out on social media or asking medical staff you already have on the books to reach out through their connections and pitch job offers.

As for clients, draw up a list of all the nearby hospitals, health clinics, and anywhere else that needs medical staff. These will be the targets for your marketing campaign, and you should have a clear idea for how you can attract their business.

If you have a unique selling proposition (USP), this is your chance to showcase it and explain how you will compete with other staffing agencies. You should also research any educational events in your area. Medical personnel are always in need of continuing education credits to maintain their professional licenses, and these events can be a great place to find both new recruits and new business clients.

7. Bring It All Together

Type out everything in a single document with each area categorized and properly indexed. It should be easy to present to lenders and provide a clear blueprint for how your business will operate and grow in the future. A basic business plan should include the following:

• An executive summary
• Company ownership structure and financing
• Market analysis and business plan
• Pricing model and marketing plan
• An appendix section listing supporting information

Bottom Line

There you have it! While there is no blueprint for how to open a healthcare staffing agency, if you follow these 7 steps your chance of success will drastically increase. 

Once you’re up and running, make sure you finalize your temp agency markup rates to ensure you’re profitable but don’t price yourself out of the market.

Furthermore, to offer unique value and attract the best medical professionals, invest in staffing agency software in order to streamline your time and attendance, payroll and HR.

Want to learn more about how Timerack can benefit your medical staffing agency? Book a personalized demo here . 

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Business Plan for Software Company

Written by Dave Lavinsky

Software Company Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their software companies.

If you’re unfamiliar with creating a software company business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a software company business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Software Company Business Plan?

A business plan provides a snapshot of your software company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Software Company

If you’re looking to start a software company or grow your existing software company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your software company to improve your chances of success. Your software company business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Software Companies

With regards to funding, the main sources of funding for a software company are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for software companies.

Finish Your Business Plan Today!

How to write a business plan for a software company.

If you want to start a software company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your software company business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of software company you are running and the status. For example, are you a startup, do you have a software company that you would like to grow, or are you operating a chain of software companies?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the software company industry.
• Discuss the type of software company you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of software company you are operating.

For example, you might specialize in one of the following types of software companies:

• Open source: An open source software company is one that produces a code base that is free for any entity that desires to use it. The value of this structure is found in the auxiliary services and customizations that are provided to clients. Examples of highly-profitable open source software companies include Linux and Red Hat.
• Client-specific: As cloud computing continues to grow in popularity, more companies look to specific software programs to drive their businesses further into high-growth positions. Examples of client-specific software companies include Oracle and SAP.
• Programming services: Software companies that provide programming are essential to the tech industry. Examples include Microsoft and ADP, well-known giant software companies.
• System services: Software companies have become highly successful, as they’ve perfected the art of creating systems for personal computers and the growing field of tablets and other personal devices. Examples of software companies that focus on systems include Intuit and Adobe.

In addition to explaining the type of software company business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of software programs created, the number of specialized SaaS services created, or reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the software company industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the software company industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your software company business plan:

• How big is the software company industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your software company business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your software company business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: start-up tech companies, companies in need of CRM software, research and development companies, and cloud-computing corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of software company business you operate. Clearly, start-up tech companies would respond to different marketing promotions than major cloud-computing corporations, for example.

Try to break out your target customers in terms of their demographic and industry profiles. With regard to demographics, include a discussion of the locations, type of services or programming needed and revenue potential of the client companies you seek to serve.

Psychographic profiles explain the wants and needs of your target clients within the companies you will target. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other software company businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes generic software outlets, private individual providers, and computer servicing companies.You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of software company are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for the customized software?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer bundled pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a software company business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of software company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide open source programming, SaaS products, or software to support Microsoft systems?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your software company. Document where your company is situated and mention how the site will impact your success. For example, is your software company located in a professional technology park, a standalone building or is it purely online? , Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your software company marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Quarterly press releases to industry-wide interest groups
• Engage in social media mining and marketing
• Offer informative blogs; become a speaker in seminars
• Create a strong presence at tech trade shows and conferences
• Give expert opinions on tech social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your software company, including meeting with clients, planning new software development, training personnel, and running administrative services.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sign your Xth contract, or when you hope to reach $X in revenue. It could also be when you expect to expand your software company business to a new city.

Management Team

To demonstrate your software company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing a software company. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a software company or successfully running a small technology development firm.

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Financial plan.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you introduce a new software program on a yearly basis, or will you customize software for return clients? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your software company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a software company:

• Cost of computer and software equipment
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, furnishings and office supplies

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include the patents you own on software programs or a list of clients on monthly retainers.

Writing a business plan for your software company is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the software company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful software company.

Software Company Business Plan FAQs

What is the easiest way to complete my software company business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your software company business plan.

How Do You Start a Software Company Business?

Starting a Software Company business is easy with these 14 steps:

• Choose the Name for Your Software Company Business
• Create Your Software Company Business Plan
• Choose the Legal Structure for Your Software Company Business
• Secure Startup Funding for Your Software Company Business (If Needed)
• Secure a Location for Your Business
• Register Your Software Company Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Software Company Business
• Buy or Lease the Right Software Company Business Equipment
• Develop Your Software Company Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Software Company Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

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OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

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Home » medical store » Medical Store Business Plan: 9 Steps with an Example

Medical Store Business Plan: 9 Steps with an Example

Jainy patel

Senior Writer

If you are considering starting a business, opening a medical store would be an excellent idea since it is an area with higher profits than most others. Moreover, the medical shop business has the advantage of not being easily affected by economic crises. However, it is vital to analyze this business venture thoroughly before you embark on it as the venture may not work out as planned in the absence of proper planning. You can also check the impact of medical software on the healthcare industry .

But if you’re thinking of opening your own pharmacy, don’t just do it on a whim: it’s a long-term endeavor that requires a lot of hard work, perseverance, and patience.

Now that you have discovered the perfect business idea, it’s time to move forward. In order to start a business, you need to do more than register it with the state.

To help you get started with your own medical store, here are some medical store trends you need to know. We have put together this brief and simple guide. You should follow these steps to ensure that your new business is well-planned, legally compliant, and properly registered.

9 Steps to Follow While Starting a Pharmacy Store

Step 1: Develop your Business Plan

The key to success as an entrepreneur is to have a clear plan. Mapping a clear plan will assist you in mapping out the details of your business and identifying unknowns. There are a few important topics to consider ahead of time, such as how much will it cost to start and maintain it? Are you targeting a specific market? What pricing can you offer the customers?

As a medical shop, your largest expense would be maintaining your prescription medication supply. You must always have enough medicines on hand to meet monthly demand while ensuring that none expire before they are dispensed. Your second biggest expense would be salaries and payroll.

Step 2: Set Up a Legal Entity

There are four main business structure types: sole proprietorship, partnership, limited liability company (LLC), and corporation. When you establish a legal business entity, such as an LLC or corporation, you are protected from being held personally responsible for your pharmacy. Therefore, it is possible to establish an LLC independently with only minimal state fees or choose an LLC service for an additional fee. However, be aware that when you open an LLC in the States the costs will be different depending on the state you’re in. If you start an LLC in New York , for instance, you need to publish notice according to the state requirements, which can be costly.

An LLC formation package usually includes one year of free registered agent services. After that, a registered agent can be hired, or you can act on your own behalf.

Step 3: Register For Taxes 

Before you can open for business, you’ll have to register for state and federal taxes. Tax registration requires an EIN, so you’ll need to apply for one. You can do it for free, and it’s really easy! You might have to pay specific state taxes, so it is recommended that you have a clear idea about the same from your accountant.

Step 4: Open a business bank account & get a credit card

For the protection of personal assets, having separate business and credit accounts is essential. It separates your personal assets from those of your company. This also makes accounting and tax filing easier. Credit cards and other financings should be in your business’ name (instead of your own). In this way, you would receive better interest rates, higher credit lines, and more, which would be much more convenient. Procuring a business credit card which also builds your company’s credit history, which is useful for raising money and getting investments later on.

Step 5: Invest in a Medical Store Software

Pharmacy Software , also referred to as Pharmacy Billing Software, is a program that stores information and organizes ways of keeping the administration of pharmaceuticals at pharmacies in order.

Hospital Pharmacy management software is one of the most common tools that is generally used in most medical stores. This system is generally used to oversee drug store-related activities such as therapeutic stock, record keeping, and dealings with executives and track the medication stock and terminating prescriptions. Reasons why you should invest in Pharmacy Management Software are:

• Overall efficiency and results are improved.
• The system is flexible so that it can be adapted to your particular business needs.
• As it is integrated with Barcode software , it is able to record customer and purchase details quickly, thus accelerating the sale process.
• A good medical store software runs online and offline, on all operating systems software , and across devices.

Step 6: Establish an accounting system 

It is essential to keep track of your various expenses and sources of income to understand your business’s financial health. In addition to making tax filing easier, keeping accurate and detailed accounts is also important. You may consider hiring a personal and dedicated accountant for the business, which would enable you to concentrate on other critical activities.

Step 7: Acquire necessary permits and licenses

Permits and licenses are crucial to the success of your business, and failure to acquire them can result in heavy fines or even shutting down your business. Check on Federal Business Licensing Requirements and State and local Business Licensing Requirements.

Consult your town, city, or county clerk for information about local licenses and permits. Local communities also offer resources to help small business owners. Check out the directory of local communities offered by US Small Business Associations.

The basic licensing requirements include a Pharmacy license, Association of Boards of Pharmacy/National Council for Prescription Drug Programs (NABP/NCPDP) number, Drug Enforcement Agency (DEA) number, Employer Identification Number (EIN), and Employer Identification Number (EIN).

Step 8: Obtain a business insurance policy

You can secure the financial well-being of your company by purchasing Business Insurance.

There are a few kinds of insurance policies created for different business types with different risks. Starting with General Liability insurance is a good idea if you’re not sure what types of risks you may face as a business owner. In general, small businesses need this coverage, so starting with this is a good idea.

Workers’ Compensation Insurance is another insurance policy that many businesses need. Workers’ Compensation Coverage is likely to be required if your business will have employees.

Step 9: Define Your Brand

Branding refers to what your company stands for, as well as how people perceive your business. Your business will stand out from the competition if it has a strong brand. The guaranteed ways to build a strong brand are:

Focus on aesthetics: choose color templates and design elements of your store that should remain the same across all your stores or merchandise like carry-bags.

Have an online presence: Post on social media regularly, and go live with insightful content on health and wellbeing. Attend negative and positive reviews posted online.

Offer great customer experience: This is the most effective way to stay in people’s minds for the longest period of time.

Other Few Points to Note

• Drug stores typically profit from prescription medications between 10-30% once insurance companies reimburse them. When your location is doing well, the business owner may be able to see an income of approximately $300,000 per year, depending on various factors.
• The pharmaceutical and insurance companies are responsible for most of the costs of your prescriptions, but there is some flexibility. Customers can expect to pay a few dollars for a common medicine, while for rare drugs used to treat chronic illnesses, they may have to pay thousands. Staying relevant in your neighborhood will require you to monitor the competition constantly.
• Low prices and convenience draw your first customers to your store. A growing number of drug stores have drive-thru windows for easy and fast prescription pickup. For your first six months, you can offer very low prices on common prescriptions to generate considerate foot traffic.
• Choosing the right location for your Medical Store is crucial. It is advisable to consider factors such as traffic, visibility, the availability of parking, and whether the pharmacy can grow in this area when deciding on where to open.
• It is wise to open your doors one to two months before your grand opening. You would have a chance to hammer out any kinks in your operation this way. Make an announcement that your business will be opening soon. Talk to workplaces, long-term care facilities, prisons, and more in your area who might find your services useful.
• You should always assemble a team of advisors, including a lawyer who can assist you in navigating the many rules and regulations of starting a business, an accountant, a financial planner, an insurance agent, and a franchisee representative (if needed). This would enable you to run your operations smoothly.

What A Typical Day Looks Like At A Medical Store?

• Receiving and fulfilling prescriptions for patients with a variety of medical conditions in compliance with FDA regulations
• Maintain a stock of medications and place orders when needed
• Display products in attractive and easy-to-use ways in the over-the-counter displays
• Assist customers with their medications safely and appropriately by providing medical advice
• Provide doctors’ offices with prescription refills or other prescriptions that an insurance provider supports
• Obtain reimbursements from insurance companies by submitting scripts
• Maintain the store’s front by hiring clerks and staff
• Employ technicians capable of supporting the required PharmD behind the counter
• Maintain and manage the physical store
• Keeping your books in order, processing payroll, and dealing with vendors

What are the skills and experiences you need to build a successful pharmacy business?

Every successful pharmacy should have an individual who:

• Holds a Doctor of Pharmacy degree
• Knows the procedures for reimbursement of prescription medicines by insurance companies
• Grasped a complete understanding of FDA regulations concerning controlled substances and how to issue prescriptions
• Possesses knowledge of inventory management system , ordering, and accounts receivable/payable
• Pays attention to payroll procedures
• Recruit qualified pharmacy technicians to assist the pharmacist
• Has the ability to explain dosage, use, side effects, and risks of all medications with compassion and understanding.

Will your pharmacy grow and expand?

Pharmaceuticals, along with food and alcohol, are booming industries that are absolutely recession-proof.

The pharmaceutical industry is estimated to reach USD 1470 Billion by 2028 , Exhibiting a CAGR of 6.19%.

Now, does this mean all pharmacists flourish into millionaires? Not necessarily.

There are various things as a medical store owner you can do to be successful and have leverage over your customers:

• Showcase your pharmacy credentials in your store for everyone to see
• Offer online payments and pay later options.
• Use modern technologies in your operations, like a medical store management software, a POS system , a mobile app, and a website for the medical billing process .
• Offer home delivery
• Be soft-spoken, and make customers feel good while at your store.
• Reward repeat customers
• Offer insights to customers on generic drugs as a replacement for the costly branded ones.

Mistakes To Avoid While Running A Pharmacy

• Lack of Arrangements for Sufficient Capital: Until a pharmacy generates positive cash flow, undercapitalizing the business is a bad idea. Thus it is wise to have working capital that should be three to five times your initial inventory cost.
• Plan for Marketing: Having a strategy, resources, and investment for marketing your pharmacy is essential.
• Don’t Try to Establish Your Medical Shop Alone: Establishing your own pharmacy can be challenging, so don’t refrain from asking people who already have their own medical stores for their guidance.

Pharmacy ownership is not a one-size-fits-all endeavor. You may have dreamed of one day running your own pharmacy business. Perhaps, pharmacy ownership runs in your family. On the other hand, perhaps you haven’t been able to find a pharmacist job in your town, or perhaps you recently graduated and are looking for work. It doesn’t matter how you ended up here. If you’re driven enough, you can turn your career around and become a pharmacy owner. To achieve your goals, you will just need a solid plan, as well as thorough knowledge. Good luck!

Jainy Patel is a content editor having over 7 years of experience in the B2B & SaaS industry. With a keen eye for detail, she’s always striving to create content that resonates with the target audience. Her interests include reading, traveling, and staying up-to-date with the latest marketing trends.

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7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

Table of Contents

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

• Provides accountability
• Clarifies expectations
• Documents criteria for promotion
• Designates decision-making authority
• Creates efficiency
• Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

• Chain of command
• Roles and responsibilities
• Scope of control
• Decision-making authority
• Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

• Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
• Your strategic plan. What are your company’s goals for the short-term and long-term?
• Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
• Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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Christine is a non-practicing attorney, freelance writer, and author. She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. She has also written extensively on parenting and current events for the website Scary Mommy. She earned her J.D. and B.A. from University of Wisconsin–Madison, and she lives in the Chicago area with her family.

5 best health insurance companies for small businesses

More and more people are deciding to become entrepreneurs. Approximately 19% of working-age adults in the U.S. were in the process of starting a business or running a business less than 42 months old, according to the 2023 Global Entrepreneurship Monitor report.

As your business grows and you bring on workers, you may need to provide benefits. Businesses with fewer than 50 employees aren’t required by law to provide health insurance benefits, but health insurance is a highly-desired benefit. To attract and maintain a talented workforce, providing benefits may be essential. 

We identified the leading providers based on their availability, plan options and customer satisfaction ratings (see our full methodology ): 

The 5 best small business health insurance providers for 2024

Best overall: blue cross blue shield, best for added benefits: kaiser permanente.

• Best for Micro businesses: UnitedHealthcare

Best for Small to Midsize Companies: Cigna

Best for comparison shopping: small business health options program (shop).

*Last updated March 12, 2024

If you’re shopping for coverage, finding the right provider can be daunting. To help you narrow down your options, we selected the five top providers of small business health insurance: 

Blue Cross Blue Shield

Our verdict

Blue Cross Blue Shield is one of the few providers that has insurance options in all 50 states, so it’s a good choice for businesses nationwide. Its independent BCBS companies typically have options for small to midsize companies. Whether you have one employee or 100, you can likely get coverage through BCBS, and you can choose a network plan that fits your budget and employee needs. 

Kaiser Permanente

Our verdict 

If you live in one of the states where Kaiser Permanente operates, it can be a good choice for employers looking to offer robust coverage to their employees as a recruitment or retention tool. With its plans, you can give your employees the convenience of telehealth visits and supplemental benefits, including acupuncture, chiropractic care, and dental and vision coverage. 

Best for Micro Businesses: UnitedHealthcare

Unitedhealthcare.

UnitedHealthcare is best for micro business owners, or those who own a business with fewer than 10 employees. Its small business store is available to small business owners with two to 50 employees, and you can use the tool to get quotes and see what deductible, copay and premium amounts are common in your area. If you find coverage that suits your needs, you can purchase coverage directly through the store. 

If you have a growing business, Cigna could be a useful option. Whereas some providers only offer coverage for employers with fewer than 50 employees, Cigna has options for small to midsize businesses, allowing you to get coverage for up to 499 employees. Its plans include benefits like virtual care and it offers multiple plan tiers, including high-deductible health plans. 

Small Business Health Options Program (SHOP)

SHOP is a marketplace that was created through the Affordable Care Act (ACA). Through SHOP, employers can compare plans and prices from leading providers in their area. With SHOP, you can control how much you pay toward employee premiums, and you may be eligible for valuable tax credits that are only available to employers who enroll in SHOP plans. 

What to know about health insurance for small businesses

If you are a business owner with 50 or more employees, the law requires you to offer coverage to your employees. 

By contrast, those with fewer than 50 employees aren’t required to provide health insurance. But even if you aren’t legally obligated to provide coverage, it can be a smart idea as a recruitment and retention tool. In fact, studies, including one conducted by Avalere Health and funded by the U.S. Chamber of Commerce, have shown that offering health insurance benefits produces a strong return on investment and increased productivity.  

You may also qualify for valuable tax credits if you offer health insurance benefits. The Small Business Health Care Tax Credit is worth up to 50% of the costs of your employees’ premiums. To qualify for the tax credit, your business must meet the following criteria: 

• You have fewer than 25 full-time employees
• The average annual salary of your workers is about $56,000 or less
• You cover at least 50% of your employees’ premiums 
• You offer coverage through SHOP to all of your full-time employees 

How to choose a small business health insurance company

When shopping for a small business health insurance provider, consider the following variables: 

Employee size: Each provider has its own employee requirements. In general, you’ll need between one and 50 employees to qualify for small business health insurance. 

Availability: While some providers offer coverage nationwide, others are more limited in scope, only issuing policies in certain states. Similarly, some plans allow workers to receive care in any state, but some plans have more restrictive local networks. 

Customer support tools: Most insurance providers require you to work with an agent or broker to get details about cost and plan options. But some companies have online tools and platforms that allow you to get quotes and view your options on your own.

Networks: Insurance providers offer plans with different network types. Depending on the provider, you may be able to provide your workers with the following options:

• Exclusive Provider Organization (EPO): EPOs are managed care plans that only cover services if you visit healthcare providers and hospitals within the network. 
• Health Maintenance Organization (HMO): With an HMO, you’re limited to care within the network, and you must get a referral to visit a specialist. HMOs tend to be the lowest-cost option. 
• Point of Service (POS): POS plans are less expensive if you use in-network providers, but you need a referral to visit a specialist. 
• Preferred Provider Organization (PPO): PPOs are often more expensive, but they give covered persons more flexibility. In-network providers are less expensive, but you can visit out-of-network providers, and you can see a specialist without a referral. 

There’s a lot to consider when it comes to business insurance, not just health insurance for your business. Our comprehensive guide breaks down the types of insurance options — from BOP’s to general liability and others — to help you understand which policy watches your needs. We have also compiled the best insurance companies for small businesses . If you operate a jewelry retail business, you may want to consider Jewelers Mutual’s business insurance specifically designed for jewelers.

Frequently asked questions

How much does health insurance cost a small business for each of their employees.

The cost of health insurance for small business employees will vary based on a number of factors including types of plans, risk to injuries, and region in the country. According to a 2023 KFF report , the average costs per employee per month is $690.

Do I have to provide health insurance to my employees? 

You only have to provide health insurance to your employees if you have 50 or more full-time workers. Those with fewer than 50 employees aren’t legally required to offer coverage, but you may be eligible for valuable tax benefits if you do. 

What are the penalties for not offering health benefits? 

Employers with 50 employees or more that don’t offer coverage that meets minimum value and affordability standards may incur penalties. Depending on what coverage you offer, the penalty ranges from $247.50 to $371.67 per month, per full-time employee. 

What do entrepreneurs do for health insurance? 

If you don’t have any employees, you won’t qualify for group plans from small business insurance providers. However, you may be eligible for an individual health insurance plan through Healthcare.gov or your state health insurance marketplace. 

Our methodology  

We evaluated seven leading providers and marketplaces of small business health insurance. To make our selections, we evaluated each company on the following criteria: 

• Availability: Preference was given to companies operating in the majority of states. 
• Employee minimums: We looked for companies with low employee minimums, offering coverage to businesses with just one or two employees. 
• Product options: We focused on companies with multiple insurance plans, including multiple network options and tiers of coverage. 
• Customer satisfaction: Priority was given to companies with high ratings from the National Committee for Quality Assurance Ratings.
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Stellantis recalling nearly 1.2 million vehicles to fix software glitch that disables rear camera

DETROIT (AP) — Stellantis is recalling nearly 1.2 million vehicles in the U.S. and Canada to fix a software glitch that can disable the rearview cameras.

The recall covers Jeep Compass, Grand Cherokee, Wagoneer and Grand Wagoneer SUVs from the 2022 and 2023 model years. Also included are Ram ProMaster vans from 2022 and 2023, as well as the Ram 3500 chassis cabs and Ram 1500 and 2500 pickups from 2022. Also covered are 2021 through 2023 Chrysler Pacifica minivans and Jeep Grand Cherokee L SUVs, and 2021 and 2022 Dodge Durango SUVs.

A company investigation found that the vehicles have radio software that can inadvertently shut down the cameras.

Stellantis, formerly Fiat Chrysler, will fix the problem with an online software update that some vehicles have already received. Owners should see a request to accept the update on their media screens. They also will get recall notices in the mail.

The company says it has no reports of injuries or crashes, but it still is urging owners to follow the recall instructions.

Copyright 2024 The Associated Press. All rights reserved.

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Chiropractic business plan.

Betcher Chiropractic is a start-up business that treats every patient with the philosophical approaches of individualism and holistic medicine.

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Family Chiropractic Business Plan

Advanced Chiropractic Clinic will provide quality chiropractic services to people of all ages. The clinic will utilize new equipment and a trained staff, able to care for the individual needs of every

Family Medicine Clinic Business Plan

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Healing Touch Massage, an established in-home business, will open an office downtown, seeking to acquire clients in the medically-required, insurance-paid massage market niche.

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Amesbury Psychological Center is a multidisciplinary behavioral health care facility that offers mental health and substance abuse services to the communities of the Merrimack Valley in Massachusetts.

Sports Therapy Business Plan

Cyclist Repair Center is a start-up sports therapy clinic, offering massage therapy, physical therapy, and personal training, specifically geared for competitive and recreational bicyclists.

Home Health Care Business Plan

CaringCompanion provides high-quality, personalized home health care services to seniors and individuals with disabilities, letting them maintain independence and comfort within their own homes.

What do you get when you take your dedication to helping people and combine it with a good business plan? Success! Here’s a collection of sample business plans for medical practices, dental offices, and clinics, that should help you on your way.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Billing And Invoicing Software /
• Medical Billing Software /

7 Best Medical Billing Software for Small Businesses in India 2024

Table of Contents

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Summary: Do you own a medical business or a store? Then most probably you are looking for robust medical billing software that can handle all your daily tasks. Let’s find out the best billing software for medical business available in the market right now.

When you run a small medical business, you always encounter some set of challenges, and one aspect that often people ignore is the billing process. As a medical shop or business owner, you probably know it can be a significant challenge to manage your medical billing process effectively. Keeping track of invoices and managing payments can be simple with the right set of tools like medical billing software.

So, in this blog, I will be sharing the best medical billing software that is available on the market right now. I have researched several medical billing computer software examples and made a list of the best options for you. Whether you’re a solo practitioner or have a small team, these software solutions will streamline your invoicing process and help you focus on other important aspects of your business.

What Is Medical Billing Software?

Medical invoicing software is a MedTech software for healthcare providers that helps them manage their revenue cycle. This tool allows them to efficiently manage the billing and invoicing process.

It helps healthcare providers to create and submit accurate claims to insurance companies, track payments, manage patient billing and much more. This software enhances efficiency, reduces errors, and ensures timely reimbursements for medical services.

7 Best Medical Billing Software for Small Businesses in 2024

• Vyapar Billing Software

With that said, let’s take a look at the list of best Medical Billing Software for small businesses:

At number one of our list, we have Vyapar Billing Software . This medical store billing software is a great option to manage your business. Vyapar comes with multiple features like tax calculation, GST compliance, sales tracking and more.

You can also generate custom bill designs that suit your business. Moreover, it is multi-device software which works on both desktop and mobile devices.

Features of Vyapar Medical Billing Software

• Paperless billing
• Inventory management
• Business dashboard
• Low stock alerts
• Multiple unit options

Pricing: Vyapar medical shop billing software offer 2 paid plans, and it offers a 15-day free trial | Vyapar Alternatives

• Silver Plan: Starts at INR 3399 per year
• Gold Plan: Starts at INR 3999 per year

Pros and Cons of Vyapar Software

• Backup your data to the Google Drive
• Supports WhatsApp billing
• Generate and print GST bills in a single click
• The Silver plan offers limited features
• Lacks the iOS app

2. DrChrono

DrChrono is a cloud-based medical invoicing software and offers an inbuilt RCM (Revenue Cycle Management) feature. They have an expert billing team that can manage the entire medical billing cycle of your medical claims.

From billing to coding and even claim management, this software can handle it all. With a 96% clean claim rate, DrChrono helps improve practice profitability and reduces administrative tasks so that you can focus on patient care.

Features of DrChrono Medical Billing Software:

• Billing reports and analytics
• Real-Time Eligibility
• Claims Submission
• Patient Statements
• Denial Resolutions

Pricing: DrChrono’s paid plan is available on request on their official website.

Pros and Cons of DrChrono:

• Competitive cost
• HIPAA-compliant system
• Supports e-prescribing
• Lacks phone support

3. myBillBook

myBillBook is one of the most intelligent medical billing solutions in the market. This simple yet effective GST billing and invoicing tool can help you manage your medical business at your fingertips.

Moreover, this is quite user-friendly software and you do not need any prior technical or accounting knowledge to work on this software. You can easily create invoices and bills, manage inventory and more.

Features of myBillBook Medical Store Billing Software:

• Cloud-based software
• Automated payment reminders, claims, e invoicing, etc.
• Business analysis
• Manage account receivables and payables

Pricing: myBillBook offers 3 paid plans- Diamond, Platinum and Enterprise. The pricing is available on request through their official website. Moreover, myBillBook also offers a 14-day free trial.

Pros and Cons of myBillBook

• Multi-language support
• Available on both desktop and mobile
• Also offers staff management portal for business
• You can’t generate bills offline

Kareo comes the next on our list. This medical billing software is designed to assist with billing cycles for companies to manage their daily tasks efficiently. It streamlines activities such as claim submissions, revenue management, payment processing, and more.

Apart from that, Kareo is also a patient care solution. You can manage patient data, schedule appointments, send them notifications, etc. With this software.

Features of Kareo Medical Shop Billing Software

• Supports RPA (Robotic Process Automation)
• Advanced reporting and analytics
• Manage patient and document efficiently
• Review and capture patient charges with Automatic Charge Capture management
• Inbuilt secure messaging system

Pricing: Kareo’s pricing is available on request. You can contact their official website and request a quote.

Pros and Cons of Kareo

• Easy to use
• Comprehensive analytics
• Immediate processing
• Software crashing issues
• Limited support

5. eHospital

eHospital is a robust hospital management system that streamlines hospital functions, including patient records, finances, and legal. Its Billing Management feature provides real-time tracking, precise and comprehensive billing and covers everything from room rent to medical procedures.

Though it is more of a hospital management software, its medical invoicing and billing features gave this software a place on our list.

Features of eHospital Medical Invoicing Software:

• Outpatient and inpatient management
• HR and payroll management
• Financial accounting integration
• Dedicated patient portal

Pricing: The pricing for eHospital medical software is available on request on its official website.

Pros and Cons of eHospital

• Android and iOS app
• An easy to use tool
• Offers patient records
• Requires time and training to work on this platform

6. TallyPrime

Surprisingly, TallyPrime is also on this list of best medical billing software for small businesses. Though TallyPrime is not the customized billing software for medical business, you can use this tool with much efficiency.

TallyPrime can help you to generate personalized invoices, maintain records, and handle financial transactions. It offers modules for finance management, inventory and stock management among others. It is one of the best software for e-invoicing because of all its features.

Features of TallyPrime

• Invoicing and accounting with GST compliance
• Helps manage credit and cash flow
• Robust business reports
• Multiple banking features like cheque management, e-payments, etc.

Pricing of TallyPrime: Tally Prime’s paid plan starts at INR 600 + 18% GST a month for single use.

Pros and Cons of Tally Prime

• Multiple features in a single software
• Aligns with financial regulations
• You can access Tally remotely using its licensed version
• Outdated UI
• Not a beginner friendly tool, as it has a steep learning curve

7. Marg ERP

At last, we have Marg ERP . Marg medical store software is specifically designed for medical stores, and it can greatly enhance the growth of your business. With Marg ERP, you can effortlessly generate invoices, keep track of inventory, and generate comprehensive sales and purchase reports.

It also offers features like end-to-end accounting, filing GST returns with digital payments, and even online deliveries.

Feature of Marg ERP Medical Billing Software

• Free e-invoicing
• Supports auto cloud backup
• Auto bank reconciliation
• Sales and purchase claim

Pricing: Marg ERP offer three paid plans:

• Basic: Starts at INR 8991
• Silver: Starts at INR 12600
• Gold: Starts at INR 25200

Pros and Cons of Marg ERP

• Robust inventory, purchase and sales reports
• Easy GST billing
• Amazing customer support
• Windows-only platform
• Understanding this software may take time

Top Medical Billing Software: Detailed Comparison

Here’s a comparison table of the above listed medical billing computer software for better overview:

Why Use Medical Billing Software?

There are many benefits of using medical billing computer software. Below are some of the excellent reasons why you should consider using medical software for billing:

1. Automate Manual Work and Reduce Errors

As humans are prone to errors, handling the bills and invoices by them can lead to mistakes. But medical billing software can save your bacon. It can reduce paperwork and human mistakes by automating manual tasks and paperwork while also securing your data. Thus, medical billing computer software is important if you want to get rid of any human error.

2. Better Access to Patient Information

Like traditional methods, you need not write every detail of the patient on a physical paper and keep it for eternity. Intelligent medical billing solutions can keep all of your patient data digitally and you can access it anytime and from anywhere. Additionally, you can create a backup of those data to avoid any data loss in any mishap.

3. Easy Claim Tracking

The software can easily help you with claim tracking and settlements. The software enables coverage of patients, and notifies you about denied claims and even guides you throughout the process of resubmissions.

Medical billing tools help improve data quality and also accelerate claim processes so that you can get paid accurately and on time.

4. Improved Finance Reports

Almost every medical billing software provides real-time reports and analysis features. You can easily track key metrics such as revenue generation, outstanding payments, accounts receivable aging, and more. This not only saves time but also allows you to make informed decisions regarding your finances.

5. Enhanced Patient Experience

Billing transparency can really help with enhancing patient satisfaction. Medical billing software provides patients with accurate estimates of their out-of-pocket expenses, simplifies payment options, and facilitates easy communication regarding insurance coverage and invoices. This improves the overall patient experience.

Important Features of Medical Billing Software

If you are looking for medical billing computer software, there are some important features you need to consider. These features include:

Claims Management

Claim management is a crucial feature of medical billing software. It helps generate accurate claims, process them, and track their status. The software also helps handle claim rejections, denials, and appeals while ensuring compliance with industry standards.

Revenue Cycle Management

Any good medical billing software streamlines the revenue cycle by automating processes such as appointment scheduling, patient registration, coding, charge capture, and payment posting. This feature enables healthcare providers to optimize cash flow and reduce administrative burdens.

Electronic Health Record (EHR) Integration

One feature to look at in medical billing computer software is Integration with an EHR medical billing allows seamless exchange of patient information between billing and clinical systems. This ensures that coding and billing are based on accurate documentation, eliminates duplicate data entry, and facilitates efficient claims submission.

Inventory Management

A good inventory management feature can allow you to manage inventory. The tool should provide the ability to track and manage medical supplies and equipment in real-time. This includes monitoring stock levels, conducting audits, tracking expiration dates, and generating alerts for low stock or expired items.

Reporting and Analytics

Robust reporting features are essential for analyzing financial performance, identifying trends, and making informed business decisions. Medical billing software should offer customizable reports on collections, invoices, denial rates, productivity metrics for staff members, and reimbursements.

There you have it! The top medical billing software available in the market. You can take a look at the list and choose any of the software that best suits your needs.

The seven medical billing computer software names I have mentioned in this article offer a range of features and benefits that cater to the specific needs of small healthcare practices.

Take the time to evaluate each option carefully and consider factors such as cost, compatibility with existing systems, and customer support before making your final decision.

What are some medical billing software?

Some popular medical billing software options are Vyapar Billing Software, DrChrono, myBillBook, Kareo, eHospital, Tally Prime, and Marg ERP.

How much does medical billing software cost?

The cost of medical billing software can vary widely depending on the features and the provider. Prices mentioned in the blog range from INR 600 + 18% GST per month for Tally Prime to INR 200,000 for eHospital. Pricing for some software is available on request.

What software do medical billers use?

Medical billers typically use specialized medical billing software to manage the billing and invoicing processes. The software helps them create and submit accurate claims to insurance companies, track payments, manage patient billing, and more.

Which software is used for billing?

Medical billing software is used for managing billing processes in healthcare, while general billing software is used in various industries for invoicing and payment management.

How can medical billing software assist with the billing process?

Medical billing software automates manual tasks, reduces errors, provides better access to patient information, offers easy claim tracking, generates improved finance reports, and enhances the patient experience.

What is a medical billing software?

Medical billing software is a MedTech tool used by healthcare providers to manage their revenue cycle. It helps create and submit accurate claims to insurance companies, track payments, manage patient billing, and more to enhance efficiency and reduce errors in the billing process.

What is RCM in medical billing?

RCM stands for Revenue Cycle Management in medical billing. It refers to managing the revenue of a healthcare provider. It offers services starting from appointment scheduling, patient registration, coding, claim settlements, payment processing etc.

What is global period in medical billing?

In medical billing, the global period refers to the specific time frame during which physicians might not charge for visits. The global period can be of 90, 10, or 0 days.

Shubham Roy is an experienced writer with a strong Technical and Business background. With over three years of experience as a content writer, he has honed his skills in various domains, including technical writing, business, software, Travel, Food and finance. His passion for creating engaging and informative content... Read more

Related Question and Answers

Medical coding encoder software is a tool that helps medical coders to accurately record the right codes for medical procedures and diagnosis. The software uses a set of terminology to select medical codes, branching from general to more specific codes. This helps providers to accurately record the right code. Some examples of medical coding encoder software include Episource Encoder, TruCode3, and SpeedECoder.

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