Considering Startup Costs for Your Business
The startup costs should not include the money you need for just your business alone but also the cost of education. The startup costs could be as much as $5,000. However, that is just an approximation the costs of starting a business and the expenses you will incur. This will greatly depend on if you decide to go with brand new supplies and office equipment or use the equipment you currently have available.
Here is a list of items that you may wish to include in your start-up:
- Modem, internet connection and a system for backing up files
- Furniture (not just furniture for yourself, but furniture for any clients that you may be meeting with)
- Basic office supplies
- Medical billing and coding reference books and other software
If you currently have most of the items listed above then your biggest expense will be the medical billing and coding software. The prices for this software can vary, the starting cost for this software starts at around $400-$500. It is also important that you research the medical billing software’s available aside from simply picking the first one you come across. You will need to consider your needs and which program can best meet those needs.
Many medical billing software companies will offer you demo product for you to evaluate for a specified period of time. Medical billing software can be difficult to understand so make sure the software that you purchase comes with an in-depth manual to help you figure it out. You will also want to ensure that they have ample technical support available for you and find out how much they charge.
Marketing Your Medical Billing Business
When you start a business you will have to be prepared to market it in order to build your client base. The truth is that a majority of your time will be spent bringing in new clients throughout the start-up phase. There are a variety of ways in which you can market your business. The most important part of marketing your business is networking with potential doctors, nurses and other healthcare physicians. Introduce your business model to them and your rates. If they are not in need of your services, ask them for the contact information of doctors that may be looking for a medical billing service.
Some other ways to market your business include:
- Sending mailing to local doctors near you
- Go around to local facilities and give them a letter and a brochure that highlights your services
- Acquire their contact information and follow-up with email and phone calls
- Once you have found potential clients set up a meeting with them to present yourself and your services to them face to face.
- Lastly, another method that has proven to be effective is opening up your phonebook or doing a search on the internet for business in your area and calling them. This method is also known as “cold calling”.
The unfortunate truth about the medical coding and billing business is that scams are a normal occurrence. The increase in the demand for the medical billing business means that there is also an increase in the amount of scams aimed at targeting those that are not informed.
Many of these scams surround medical billing and coding software, technical support, medical billing and coding training and even the list of potential clients. They claim that they have services in place to help you find clients, start your business and begin to generate revenue in a short span of time. The poor people that fall victim to these schemes find that the scammers do not live up to their promises and then they have lost their entire investment.