A guide to making more revenue and profit; Build your Medical Billing Business with these tips!
There are lots of ways you can generate more revenue if you’re running your medical billing and coding business.
Revenue typically comes in three forms:
- straight cash from payments
- return on investments
- growth
Successful business owners treat these three areas as separate lines and cultivate each one. Let’s explore each of them.
Medical Billing Marketing
Cash
Cash enters your business through payments and leaves when you pay for business expenses. To maximize your cash flow, you’ll need to understand precisely how much cash is going in and out at any given time. If you aren’t generating enough cash or have just enough coming in to break even, you have a problem.
Ask yourself about the sources of your cash and their quality, as well as their longevity. Make a thorough examination of your cash flow, and you should find some potential areas for growth.
Return on Investment
Another option to consider is an investment of outside capital.
This can come in several forms. You might qualify for a small business loan, or you could find someone willing to invest. Investors provide an immediate influx of capital, but you’ll be required to repay at some point.
If you’re interested in expanding through investment, look at all your business’s hard assets and ascribe appropriate financial values to them.
Once you’ve learned the total value of your current business, you need to decide how you want to expand.
It could be that you can now get new medical billing and coding software equipped to handle more clients. Or it could mean hiring additional employees to expand the range of tasks your business can conduct.
After you’ve decided how you wish to grow, create a proposal outlining your current assets and what you would like to expand.
“How much money can you expect to make through this expansion, and in what time frame?” Try to answer this question.
This is your return on investment.
For a further and more in-depth guide to building your Medical Billing Business, check out the Medical Billing 101 Basic course here.
Growth
It may seem obvious: every business owner wants to grow their business!
But the key is smart growth – increasing in a measured way so that you can scale all facets of your business.
Scaling means that as you grow…
- your staff is sufficient
- your technology can support the business activities
- you are making profits.
Balancing the Books
A critical business task is to find a suitable accountant.
You’ll be taking in payments from various sources and being responsible for paying your social security and payroll taxes. Most people don’t have the training to manage these payments. A small business accountant can help.
This includes:
- a high-speed internet service
- fax machine and phone line
- cell phone service.
Your clients may also want to communicate through an online video feed. Total costs for these items may be as little as a few hundred dollars, or as much as a few thousand.
There’s no definite way to gauge the accumulated cost of these investments. It depends on how much you want to invest before you begin. If you decide to rent office space when starting a medical billing business, you’ll incur a monthly rental cost on top of the supplies noted above. Add this to the list.
Clients
- Who are your current clients?
- How did you get them?
- Do they know other doctors they might be able to refer to you?
- Do they pay different amounts?
- Do they need different levels of service?
It’s essential to deeply understand your existing client portfolio.
Look at how your client list came into existence. Was cold calling successful for you? Do you have a friend with a lot of contacts in the industry? Identify these aspects of your client relationships and look for ways to increase your list organically.
Also, look for outside factors that you may want to revisit. Did you get three or four clients at a networking event that you haven’t gone back to? Maybe it’s time to return!
Build a Referral Network
Marketing yourself shouldn’t end when you get the client. It would be best if you continued to market yourself to make sure you’re reaching all potential clients. This was you can achieve maximum growth after starting a medical billing business.
Ensure quality by providing fast, reliable billing services.
Always be in contact with your clients. Provide quality; reliable service is the best way to make sure that your clients will refer you to their friends.
Consider promoting yourself online or in nearby towns. To keep growing your business, it’s important to keep advancing yourself even if you have enough clients.
Promoting yourself online can be an easy and low-cost way to keep your name in mind with health care professionals. If you live in a metropolitan area with outlying suburban areas, consider marketing yourself to healthcare providers in these places as well.
But don’t overdo it! If your client load is large and you are barely making the deadlines, consider taking on a part-time employee or some other help before marketing yourself further.
Analyzing and understanding where your revenue comes and goes is the foundation of developing your medical billing coding business.
Best of luck in your endeavor; reach out to Medical Billing Opportunity to know how we can help you and your Medical Billing Journey. Contact us here.