Nowadays, how to use my time wisely, which
the concept of forecasting plays an important role in the market industry. Forecasting
determines a company financial health or status. In addition, these following
three terms: Forecast, Budget, and Control are crucial in the business
industry. These tools mostly monitor or determine a company performance and
expectations, which allowing managers and leaders to set future goals.
According to Walker & Mullins, the revenue model is an important in
marketing and is very crucial to have a good understanding of this concept and
to 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 my
As a future physician, I will take full
advantages of the product life cycle in order to plan and to reach to an
optimal desired budget. To begin with, for the first few months of practice, I
would work on a specific market development plan. That is, I would keep in mind
money needed for rent, insurance, payroll and other expenses necessary to
start-up, maintain and operate my practice. My percent revenue will be based on
several aspects, which include how to use my time wisely, which activities
should be delegated to physician assistants or Nurse practitioners, reviewing
my billing report especially the codes that I mostly used to bill for. I would
consider at least 10%-15% as the percentage of overall revenue that will be
devoted to marketing effort. For instance, I will identify my payers by
carefully reviewing the invoicing report while working to budge the payer mix
within my active patient base in order to promote a more balanced mix revenue.
Besides, my contracts and reimbursement rates will be reviewed regularly and I
will make sure that appropriate adjustments are made for each payer match the
terms of each contract. At this stage, there might be little or no profit
because I am campaigning awareness and promoting the business.
Technology is an important of any
medical 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% annual
automatic budget increase. Moreover, standard protocols will be available to
reflect each expense category as a percentage of my practice revenue. By doing
so, I will be able to determine if my practice’s expenses are in line and I
will 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 specific
items. Thus, when comparing this year budget next year my revenue will increase
by 5% and my expenses decreases by 10%. I will expand my services, improve and
reevaluate my practice website on a regular basis and I will create marketing
plans that works for my practice. I will attract more cases within my specialty
and recognize services that are most demanded while protecting my practice from
competitors. Besides, I will strengthen my patients’ trust, boost referrals and
increase the number of patients.
As the business is at its peak and
the market growth is accelerating and expanding by at least 5%, I would reduce
the marketing effort to up 60% because at this stage I already created loyalties
with my customers. My practice, by then, has been established and grown while keeping a great share of that market. And
my target audience is more aware of what types of services I am offering. As
the revenues start to increase, profit will begin to accrue as well. Thus, I no
longer need heavy advertisement or promoting the business. In addition, for the
most part at this stage, the demand levels off and grows solely since the
business has already reached widespread acceptance in the market, profits might
start to slow down a little. For instance, I will focus on survival of the practice;
improve quality of services offered, convenience and customization such as
social software and personal devices. Moreover, I would continue to reevaluate
and localize my consumers and anticipate the global market needs in order to
compare my practice with other companies.
On this final stage of the life
product cycle, I will focus more likely on any changes in technologies that
could affect my practice profitability and my patients’ interests as well. I will find ways to gradually maintain
profitability that will help the practice to remain consistent with marketing
effort, as well as the production and growth resourcefully. I will identify
where there are low or decrease in growth, lower profits, and where there is
maximum competition occur that lead to a decline in growth in order to retain
not only my current patients but also to attract potential patients. I will try
to upgrade gradually my marketing strategies like about 7% for a time period. As
a result, I will use new promotion strategies to create awareness and develop a
more profitable market for the practice. Some of the promotion methods that
will be considered in my practice are as follows:
communications- to build awareness and to educate my patients on services
media such as twitter, instagram, Facebook.
items such as breast-feeding books, maternity books,
pens, ribbons, baby bottles, condoms, bags, totes, briefs and diapers.
will be send on a regular basis
to health fairs events and local health communities
order to effectively budgeting of salary and wages, I would consider forecasting
procedures as follows:
acquisition cost will vary according to the location of the practice. For
instance, if it locates in Miami, I will want a higher patient acquisition
numbers comparing to one located in rural areas. Thus, I will add 1% of revenue
to my budget in order to reach more patients and to be able to compete against
my competitors. If my new patients are from referrals then I will be substrate
1-2%, especially if the acquisition method used is sustainable over the
long-term (Medical Marketing, n.d.).
on investment is another way that will help me considered whether or not a
change is needed on a particular marketing plan (Medical Marketing, n.d.).
payroll will mostly likely base on the assessment of yearly budgeted positions
because having an exact number of budgeting position is vey important for the
practice. It will include both part-time and full-time employees.
wages- I would use a regular hourly wage and I will also take into
consideration overtime pay, paid annual leaves and business expenses
taxes and insurances- I will ensure that all tax records, employment training
records and insurance are properly filed and recorded.
satisfaction survey –to assess and get feedback, concern and compliment forms
will be in place where patients are encouraged to voiced their discontentment
and give recommendation.