FE001 Making a Business Case

FE001 Making a Business Case

Student Name

Walden University

NURS 6053 – Interprofessional Organizational and Systems Leadership

Prof. Name:

Date

FE001 Making a Business Case

Business plans allow nurses and healthcare leaders to present a compelling and evidence-based case for financial support, staffing, or resources needed to launch, expand, or revise healthcare initiatives. A well-developed business plan communicates the value, feasibility, and projected outcomes of a proposed project. In clinical settings, business plans may justify expanding programs, initiating new services, restructuring units, or examining the financial consequences of workforce reductions or project termination.

Writing Skills for Business Plans

High-quality writing is essential because a business plan mirrors the credibility, professionalism, and expertise of the nurse leader presenting it. A thoroughly edited plan—free of errors in grammar, organization, and clarity—helps build trust with individuals such as administrators, CEOs, and financial decision-makers. Nurses must avoid heavy jargon, explain specialized terminology, and define abbreviations so that non-clinical stakeholders can easily follow the business case.

A clear organizational structure enhances readability. Longer documents should incorporate descriptive headings and subheadings. A concise executive summary (typically one to two pages) is critical because many administrators review the summary before reading the full document. This summary must accurately highlight the project purpose, financial projections, budget requirements, and expected benefits, including estimated savings or profits.

Nurse Roles in Writing Business Plans

Nurses contribute to business plan development in multiple capacities:

Entrepreneurial Roles

Nurses who operate independently, such as those establishing nurse-managed clinics or consulting services, may construct business plans to secure external funding or demonstrate viability to stakeholders.

Intrapreneurial Roles

Within organizations, nurses frequently design business plans to support quality improvement, fiscal responsibility, or the introduction of new clinical programs. As employee innovators, they advocate for projects that enhance patient outcomes and organizational efficiency.

Team-Based Roles

Business plans in healthcare organizations typically emerge from multidisciplinary collaboration. Nurses may serve as primary authors, contributors, or supportive team members working with finance, administration, information technology, and other departments to ensure a comprehensive proposal.

Business Plan Sections

Most business plans follow a systematic structure. The initial section identifies the problem or need, followed by defining the proposed product or service. Subsequent sections address market conditions, budget projections, financial analyses, a timeline, and a final feasibility statement.

Problem Identification

The first task is articulating a clearly defined issue that requires resolution. This section must convince readers why the plan matters and how the identified problem influences patient care, operational costs, or organizational performance.

To prioritize issues, nurses may apply strategic tools such as:

Table 1. SWOT and Priority Matrix Tools

These tools help determine whether the proposed initiative merits development into a full business plan.

Product Definition

This section outlines exactly what is being proposed. Clarity is essential regarding equipment, staffing, space needs, construction requirements, or operational changes. Comparing multiple alternatives is often useful, including the “no-change scenario,” which serves as a baseline for cost-benefit or cost-effectiveness analysis.

Table 2. Common Alternatives in Product Definition

Market Analysis

Market analysis may be unfamiliar to many nurses, yet it is an essential component of business planning. This analysis examines the business environment, customer characteristics, competitor behavior, and projected market shifts.

A thorough market analysis identifies:

• The target clientele and demographic characteristics

• Payer mix and reimbursement patterns

• Competitors’ strengths, weaknesses, and service capabilities

• Current and future demand for the proposed product or service

• Estimated market share

Table 3. Core Components of Market Analysis

Market analysis also ensures the proposed initiative aligns with regulatory expectations or quality improvement standards.

If market analysis does not justify financial or competitive benefit, planning may cease at this stage.

Regulatory Requirements and Quality Initiatives

Regulatory mandates and quality programs often drive the need for new services or improvements. Nurses can integrate these requirements into the market analysis to strengthen the justification for the plan. Demonstrating how a project enhances compliance or improves quality outcomes increases its likelihood of approval.

Budget Estimates

A special-purpose budget outlines all anticipated start-up and operational costs. This budget must include revenue projections and estimated net profit or loss (P&L). Evaluating expenses over a minimum of two years is recommended, as start-up costs are often higher initially.

If revenue ultimately exceeds expenses, the project is financially viable. If expenses consistently outweigh revenue, the plan may require revision or discontinuation.

Financial Analysis

Financial analysis expands upon the budget by assessing economic feasibility through tools such as:

• Break-even analysis (best for revenue-generating projects)

• Cost-benefit analysis (CBA)

• Cost-effectiveness analysis (CEA)

These tools help determine whether a plan generates measurable revenue (“dark green dollars”) or cost savings (“light green dollars”).

Nurses should remain open to proposing initiatives that generate savings rather than profit, especially when quality improvement is a primary goal.

Timeline

A realistic and structured timeline ensures stakeholders can visualize project implementation. Best-case, worst-case, and most-likely timelines help anticipate challenges. A Gantt chart is commonly used to map tasks and deadlines.

Conclusion and Feasibility Statement

The concluding section synthesizes the proposal’s strengths and reinforces why the project is feasible. This final impression should be persuasive, concise, and supported by financial and market data.

Elevator Speech

An elevator speech is a short, high-impact summary of the project designed for rapid communication. These brief presentations may be shared verbally or via recorded digital formats to attract interest from potential funders or partners.

Health Program Grant Writing

(Penner, 2016, Chapter 11)

Millay University Nurse-Managed Health Center: Variance Report, Second Quarter

A budget variance represents the difference between planned (budgeted) and actual performance in revenue or expenses.

Understanding Variance Representation

• Negative numbers (shown in parentheses) usually indicate an unfavorable variance.

• Positive numbers indicate a favorable variance.

Variance Calculation Rules

• Revenue Variance:
  Actual – Budget = Variance

• Expense Variance:
  Budget – Actual = Variance

Table 4. Examples of Revenue Variance Calculations

Table 5. Examples of Expense Variance Calculations

Excel Note

When entering formulas, simple arithmetic operations should be used (e.g., =B10−C10). Statistical functions such as VAR or VARP should not be used for variance reporting. Totals for personnel and non-personnel expenses should be calculated using Excel’s SUM function in the designated rows.

References

Penner, S. J. (2016). Economics and financial management for nurses and nurse leaders (3rd ed.). Springer Publishing.