How to Start a Virtual Doctor Service

Start a Virtual Doctor Service by following these 10 steps:

1. Plan your Virtual Doctor Service
2. Form your Virtual Doctor Service into a Legal Entity
3. Register your Virtual Doctor Service for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Virtual Doctor Service
6. Get the Necessary Permits & Licenses for your Virtual Doctor Service
7. Get Virtual Doctor Service Insurance
8. Define your Virtual Doctor Service Brand
9. Create your Virtual Doctor Service Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Virtual Doctor Service. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a Virtual Doctor Service?

If there's a completely private and quiet area in your home, you won't have to rent office space. You'll need modern computer and phone equipment. Many people already own adequate hardware. However, you should plan on paying a substantial amount of cash for security and telehealth software. Different packages sell at prices ranging from about $115 to $1,400 per month. Consider using an application with a free trial period so that you can test it before spending money.

What are the ongoing expenses for a Virtual Doctor Service?

Utilities represent a significant cost. The federal government recommends a minimum internet speed of 4 Mbps for video-based medical visits. Many telecom companies surpass this speed for less than $40 per month. Although you won't meet patients in person, harmful mistakes could still occur. You should purchase telemedicine malpractice insurance. Fortunately, it may cost as little as half the price of conventional malpractice coverage.

Who is the target market?

Virtual doctor businesses primarily serve women between 18 and 49 years old, according to the CDC. You could also market your service to companies that purchase bulk subscriptions for their members. Potential buyers range from insurers to discount clubs.

How does a Virtual Doctor Service make money?

This business has low startup costs, making it easier for one-person firms to turn a profit relatively quickly. However, a service with multiple doctors and/or nurses will face high labor expenses. There's no guarantee of profitability, even at a time of high demand. The well-known telehealth company Teladoc remained unprofitable in 2020 after 18 years in business. Teladoc is the only publicly traded firm of this kind; its rivals don't publish net income data.

How much can you charge customers?

If they sign up for subscriptions, customers often spend around $12 to $40 per month for unlimited access. Non-subscribers pay $79 per call on average, according to CNBC. For example, Teladoc charges them $75 for a single interaction. Employers spend about $8.50 a month on telehealth employee benefits (per person). Their staff members frequently have to pay a discounted rate of around $35 per call.

How much profit can a Virtual Doctor Service make?

This business has low startup costs, making it easier for one-person firms to turn a profit relatively quickly. However, a service with multiple doctors and/or nurses will face high labor expenses. There's no guarantee of profitability, even at a time of high demand. The well-known telehealth company Teladoc remained unprofitable in 2020 after 18 years in business. Teladoc is the only publicly traded firm of this kind; its rivals don't publish net income data.

How can you make your business more profitable?

Don't overlook significant tax deductions. You'll probably qualify to subtract a portion of your internet bill. More deductions become available if you set aside an entire room to use as a home office. More tips:

• To save time, try to make setup as easy as possible and provide thorough instructions to new clients.
  
  
• Unlimited access may promote overuse; think about requiring the patient to pay at least a nominal fee for each call.
  
  
• Interactions with established patients tend to be more efficient and lucrative, so retention is important.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Virtual Doctor Service is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

If you want to make use of your medical skills without the stress of commuting or working in an office, this occupation may hold appeal. Telehealth entrepreneurs appreciate the opportunity to deliver their services from almost any location. However, you must have the ability to understand and adapt to complex rules as well as changing technology. Most patients prefer empathetic, non-judgmental physicians.

What happens during a typical day at a Virtual Doctor Service?

Expect to spend a lot of time talking on the phone or participating in two-way video meetings. You may also review health records, examine still photos, and reply to text messages. Regardless of the specific method, you'll supply medical advice and prescribe medications when needed. Other daily tasks range from marketing to billing.

What are some skills and experiences that will help you build a successful Virtual Doctor Service?

You can benefit from comprehensive medical knowledge, especially with regard to illnesses, chronic conditions, and minor injuries. An independent telehealth provider ought to be qualified as a doctor or nurse practitioner. Advanced computer skills prove valuable as well.

What is the growth potential for a Virtual Doctor Service?

Telehealth has rapidly gained popularity in recent years, especially during the COVID-19 pandemic. A company called First Stop Health experienced revenue growth of 843% in early 2020. Thanks to inexpensive long-distance communications, businesses in this sector have nearly unlimited potential. Telemedicine provider HealthTap has attracted so many customers that it established contracts with over 95,000 doctors worldwide.