Starting a Medical Practice: A Step-by-Step Guide

Starting your own medical practice is one of the most exciting—and challenging—things you can do in your career as a physician. After years of school, training, and experience, the idea of building something of your own can be incredibly rewarding. But it’s also a big leap.

There’s a lot more to it than hanging a sign on the door and waiting for patients to show up. Running a practice means becoming a business owner, which brings a whole new set of responsibilities and decisions you may not have faced before.

This guide walks you through the process step by step—no fluff, no jargon. Just solid, real-world advice to help you confidently start a medical practice of your own.

Step 1: Define Your Vision and Goals

Before anything else, take a step back and ask yourself a few important questions:

• What kind of practice do I want to build?
• Who do I want to serve?
• What kind of work-life balance do I want?
• Will I go solo or bring on partners?

Knowing your why will help guide every decision you make from here on out. It also helps you stay grounded when things get overwhelming (and they will, from time to time).

Step 2: Choose a Legal Structure and Register Your Business

You’ll need to decide what type of business entity your practice will be. Common options include:

• Sole proprietorship: Easiest to set up, but you’re personally liable for everything.
• Limited Liability Company (LLC): Offers liability protection and is simpler to manage than a corporation.
• Corporation (C-corp or S-corp): More complex, but offers liability protection and potential tax advantages.

Most physicians go with an LLC or S-corp to balance simplicity with protection. Once you’ve decided, register your business with your state and get an Employer Identification Number (EIN) from the IRS—this is like a Social Security Number for your business.

Step 3: Get the Right Licenses and Credentials

To legally operate your own medical practice, you’ll need to make sure your licensing and credentials are up to date. This usually includes:

• Medical license for the state you’re practicing in
• DEA registration if you’ll be prescribing controlled substances
• National Provider Identifier (NPI) number
• Board certification (optional but often expected)

You’ll also want to get credentialed with insurance providers if you plan to accept insurance. Credentialing can take several months, so start early—it’s one of the biggest bottlenecks when starting a medical practice.

Step 4: Write a Business Plan

Yes, this part sounds boring. But writing a business plan doesn’t have to be complicated. Think of it as your roadmap. It helps you organize your thoughts and gives you a clear picture of what needs to happen.

Here’s what to include:

• Executive Summary: A quick overview of your practice and goals
• Market Analysis: Who your patients are, what they need, and how you’ll stand out
• Services Offered: What treatments, exams, or procedures you’ll provide
• Staffing Needs: From front desk to nursing support to billing
• Marketing Plan: How you’ll attract and retain patients
• Financial Plan: Startup costs, monthly expenses, projected revenue

Even if you’re not applying for a loan, writing this plan will give you clarity.

Step 5: Secure Financing

Starting a practice can cost anywhere from $70,000 to over $250,000 depending on your specialty, location, and size. You’ll need to account for:

• Rent and build-out of your space
• Medical equipment and supplies
• Electronic health record (EHR) system
• Staff salaries
• Legal and consulting fees
• Marketing and branding
• Working capital (cash reserves to keep you going until revenue picks up)

Unless you have a large amount saved up, most physicians take out a business loan or line of credit. Look for lenders that specialize in medical practice financing—they understand the industry and may offer better terms.

Step 6: Find a Location and Set Up Your Office

Location is a big deal. You want a place that’s accessible, visible, and convenient for your patients. Consider things like:

• Nearby competition
• Parking availability
• Proximity to hospitals or labs
• Size and layout of the space

Once you secure a lease, you’ll need to design your space with both function and comfort in mind. Think exam rooms, waiting area, reception, restrooms, and back-office space.

You’ll also need to buy or lease medical equipment, computers, phones, and furniture. Don’t forget about IT support and secure internet—these systems will be the backbone of your operations.

Step 7: Choose the Right Technology

Your tech stack matters more than you might think. A good system makes everything smoother. A bad one can cost you time, money, and headaches.

Here’s what you’ll need:

• Electronic Health Record (EHR): Central hub for patient records
• Practice Management Software: Scheduling, billing, insurance claims
• Telehealth Platform: Especially if you plan to offer virtual visits
• HIPAA-Compliant Communication Tools: Secure messaging and email
• Billing and Coding Software: Or outsource it to a medical billing service

Do your homework. Choose systems that are intuitive, customizable, and supported by a responsive customer service team.

Step 8: Hire a Great Team

Even if you’re starting small, having the right people around you can make or break your practice. Key hires often include:

• Front desk staff: The face and voice of your practice
• Medical assistant or nurse: Clinical support and patient care
• Billing specialist: Handles insurance and payments
• Office manager: Keeps everything running smoothly

Hire people who are not only skilled but also aligned with your values. Patients can sense when a team is on the same page—and when they’re not.

Step 9: Market Your Practice

You can be the best doctor in the world, but if no one knows you’re open, it won’t matter.

Start by creating a clean, professional website with basic information: who you are, what you offer, where you’re located, and how to book an appointment. Make sure it’s mobile-friendly and shows up on Google.

Next, set up your Google Business Profile, so your practice shows up on maps and in local searches.

Other marketing ideas:

• Claim your profile on health directories like Healthgrades or Zocdoc
• Launch a social media presence (start simple with Facebook or Instagram)
• Send a press release or email announcement to your network
• Run local ads (online, radio, community publications)
• Ask happy patients to leave online reviews

Word-of-mouth still matters—especially in healthcare. Provide great service, and your reputation will grow.

Step 10: Open Your Doors and Start Seeing Patients

Once everything’s in place—your license, your office, your team, your systems—it’s go time.

The first few weeks or months might feel slow. That’s normal. Be patient. Focus on giving each patient a great experience, from their first call to their follow-up visit.

Pay attention to feedback, learn as you go, and be willing to adapt. You’ll grow more confident with every patient you see.

Final Thoughts

Figuring out how to start your own medical practice can feel like a giant jigsaw puzzle. There are a lot of moving parts—but it’s absolutely doable.

Take it one step at a time. Lean on experts (like lawyers, accountants, and consultants) when needed. Don’t be afraid to ask other practice owners how they did it. And remember: building something of your own is hard work—but it’s also incredibly fulfilling.

If you’ve been dreaming about starting a medical practice, consider this your sign to move forward. You’ve got this.