Financial Management Foundations: Building a Sustainable Private Practice
Whether you’re launching a new private practice or already running one and seeking additional support, the journey is both exciting and financially demanding. Balancing patient care with the realities of managing a business requires careful planning and a strong financial foundation.
A well-structured financial strategy is essential; not only to cover start-up or ongoing operational costs, but also to ensure long-term growth and stability. From setting realistic revenue goals and tracking cash flow, to optimising billing systems and managing overheads, every financial decision plays a critical role in the success of your practice.
By taking a proactive approach, you’re not just maintaining a practice; you’re building a resilient, profitable business that reflects your values, supports your patients, and adapts to the needs of your community.
At Designated Medical, our experts provide the financial and operational guidance you need, offering a clear roadmap to strengthen your practice, improve efficiency, and maximise sustainability.
Ready to build a stronger foundation? These are our top tips for clinicians in private practice:
Planning for Success: ACTOMS Framework
The ACTOMS framework helps structure your planning:
- Ambition: What are you aiming to achieve?
- Challenges: What hurdles must you overcome?
- Target Audience: Who are your ideal patients?
- One Key Message: What is the core idea you want to communicate?
- Media: What channels will you use to reach your audience?
- Success: How will you define and measure success?
Business Planning and Financial Management
A robust business plan and detailed budget are key to sustainability. This should cover:
- Revenue streams (consultations, tests, procedures, product sales)
- Cost of sales
- Overheads (staff, rent, IT, legal, marketing)
- Key resources and partners (e.g. management systems, recruitment, insurance)
A Business Model Canvas is a useful tool to map out your operations, value proposition, customer segments, and more.
Competitive Positioning and Pricing
Understanding your competitors and their market positioning is essential not just for differentiation, but for maximising your practice’s financial performance. Determining where your clinic sits – premium vs. affordable, generalist vs. specialist – helps shape your brand, pricing strategy, and marketing approach in a way that drives revenue and supports long-term growth.
When setting your fees, carefully consider direct costs, market demand, your specialisation, and competitor pricing. Avoid aggressive discounting, which can erode profitability, and instead focus on delivering measurable value through high-quality services and patient care. Strategic pricing ensures your practice remains financially sustainable while reinforcing your professional reputation.
Operational Structure and Daily Management
Defining roles and responsibilities is critical for seamless day-to-day operations. A typical clinic team may include a Founder/Clinical Director, Practice Manager, Medical Secretary, clinicians, and administrative support staff. Clarify how each role contributes to the patient journey; from first contact to post-treatment follow-up.
Tracking Success with KPIs
To ensure you’re on the right track, set clear metrics:
- New patient acquisitions
- Website and phone enquiries
- Patient retention and referrals
- Consultation numbers
- Revenue and 5-star reviews
Monitoring these indicators will provide insights into what’s working and where to improve.
Next Steps …
- Take advantage of our free 45-min consultation with our experts, who have a proven track record in private practice management, and will be able to provide you with practical help and guidance on building a successful private practice quickly and effectively, to book your session please email info@designatedmedical.com
- Join our Private Practice Success WhatsApp group, a space where you can easily keep in touch, share information and ask questions with colleagues.
- Register for our ‘Building a Successful Private Practice’ series of free webinars.