Nowadays,the concept of forecasting plays an important role in the market industry. Forecastingdetermines a company financial health or status. In addition, these followingthree terms: Forecast, Budget, and Control are crucial in the businessindustry. These tools mostly monitor or determine a company performance andexpectations, which allowing managers and leaders to set future goals.According to Walker & Mullins, the revenue model is an important inmarketing and is very crucial to have a good understanding of this concept andto e willing to change it as the market and technology are progressing (2014).This paper will outline and demonstrate few important concepts of forecast,budget, and control in the market industry and how I will apply them in mypractice.
As a future physician, I will take fulladvantages of the product life cycle in order to plan and to reach to anoptimal desired budget. To begin with, for the first few months of practice, Iwould work on a specific market development plan. That is, I would keep in mindmoney needed for rent, insurance, payroll and other expenses necessary tostart-up, maintain and operate my practice. My percent revenue will be based onseveral aspects, which include how to use my time wisely, which activitiesshould be delegated to physician assistants or Nurse practitioners, reviewingmy billing report especially the codes that I mostly used to bill for. I wouldconsider at least 10%-15% as the percentage of overall revenue that will bedevoted to marketing effort. For instance, I will identify my payers bycarefully reviewing the invoicing report while working to budge the payer mixwithin my active patient base in order to promote a more balanced mix revenue.
Besides, my contracts and reimbursement rates will be reviewed regularly and Iwill make sure that appropriate adjustments are made for each payer match theterms of each contract. At this stage, there might be little or no profitbecause I am campaigning awareness and promoting the business. Technology is an important of anymedical practice. It improves waiting times and increase patient growth.Computer base system will be in place for scheduling, and appointment reminders.My revenue budget will last a year that will potentially be above 5% annualautomatic budget increase.
Moreover, standard protocols will be available toreflect each expense category as a percentage of my practice revenue. By doingso, I will be able to determine if my practice’s expenses are in line and Iwill be able to establish a budget for next year based on my budgeted revenue.Thus, adjustments could be made accordingly in the future for any specificitems. Thus, when comparing this year budget next year my revenue will increaseby 5% and my expenses decreases by 10%.
I will expand my services, improve andreevaluate my practice website on a regular basis and I will create marketingplans that works for my practice. I will attract more cases within my specialtyand recognize services that are most demanded while protecting my practice fromcompetitors. Besides, I will strengthen my patients’ trust, boost referrals andincrease the number of patients.
As the business is at its peak andthe market growth is accelerating and expanding by at least 5%, I would reducethe marketing effort to up 60% because at this stage I already created loyaltieswith my customers. My practice, by then, has been established and grown while keeping a great share of that market. Andmy target audience is more aware of what types of services I am offering. Asthe revenues start to increase, profit will begin to accrue as well. Thus, I nolonger need heavy advertisement or promoting the business. In addition, for themost part at this stage, the demand levels off and grows solely since thebusiness has already reached widespread acceptance in the market, profits mightstart to slow down a little. For instance, I will focus on survival of the practice;improve quality of services offered, convenience and customization such associal software and personal devices. Moreover, I would continue to reevaluateand localize my consumers and anticipate the global market needs in order tocompare my practice with other companies.
On this final stage of the lifeproduct cycle, I will focus more likely on any changes in technologies thatcould affect my practice profitability and my patients’ interests as well. I will find ways to gradually maintainprofitability that will help the practice to remain consistent with marketingeffort, as well as the production and growth resourcefully. I will identifywhere there are low or decrease in growth, lower profits, and where there ismaximum competition occur that lead to a decline in growth in order to retainnot only my current patients but also to attract potential patients. I will tryto upgrade gradually my marketing strategies like about 7% for a time period. Asa result, I will use new promotion strategies to create awareness and develop amore profitable market for the practice. Some of the promotion methods thatwill be considered in my practice are as follows:· Marketingcommunications- to build awareness and to educate my patients on servicesoffered.
· Socialmedia such as twitter, instagram, Facebook. · Promotionalitems such as breast-feeding books, maternity books,pens, ribbons, baby bottles, condoms, bags, totes, briefs and diapers.· Emailswill be send on a regular basis· Sponsoringto health fairs events and local health communities Inorder to effectively budgeting of salary and wages, I would consider forecastingprocedures as follows:· Patientacquisition cost will vary according to the location of the practice. Forinstance, if it locates in Miami, I will want a higher patient acquisitionnumbers comparing to one located in rural areas. Thus, I will add 1% of revenueto my budget in order to reach more patients and to be able to compete againstmy competitors. If my new patients are from referrals then I will be substrate1-2%, especially if the acquisition method used is sustainable over thelong-term (Medical Marketing, n.d.
).· Returnon investment is another way that will help me considered whether or not achange is needed on a particular marketing plan (Medical Marketing, n.d.
).· Mypayroll will mostly likely base on the assessment of yearly budgeted positionsbecause having an exact number of budgeting position is vey important for thepractice. It will include both part-time and full-time employees. · Employeewages- I would use a regular hourly wage and I will also take intoconsideration overtime pay, paid annual leaves and business expensesreimbursements.· Employertaxes and insurances- I will ensure that all tax records, employment trainingrecords and insurance are properly filed and recorded.
· Customersatisfaction survey –to assess and get feedback, concern and compliment formswill be in place where patients are encouraged to voiced their discontentmentand give recommendation.