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1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of a nurse practitioner’s practice while showcasing the expected financials and operations over the next three years. Nurse Practitioner, Inc. (“the Company”) is a New York based corporation that will provide general medical care in a stand alone facility to customers in its targeted market. The Company was founded by Mr. John Doe.
1.1 Operations
Mr. Doe will render family medicine services to adults and children within the greater targeted community. These services include examination, blood work, general medical counseling/advice, referrals to physicians, and other family medicine services. The Company will also recognize revenues from the sale of medical appliances prescribed by Mr. Doe under the supervision of an on call physician. The third section of the business plan will further describe the services offered by the Nurse Practitioner’s Practice.
1.2 The Financing
Dr. Doe is seeking to raise $150,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
• Development of the Company’s Nurse Practitioner’s Practice location.
• Financing for the first six months of operation.
• Capital to purchase medical equipment.
Dr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
Mr. Doe’s mission is to become the recognized leader in its targeted market for general medical services that are allowed be rendered by a nurse practitioner.
1.4 Management Team
The Company was founded by Mr. John Doe. Mr. Doe has more than 10 years of experience as a nurse practitioner. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and families within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Nurse Practitioner, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Nurse Practitioner requires $150,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Nurse Practitioner, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the practice to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Nurse Practitioner, Inc. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings.
3.0 Operations
The primary source of revenue for the business will be the medical services provided by Dr. Doe. The Company will offer many of the services that are common within this specialty including treatment of medial issues including high blood pressure, cholesterol, and mild medical conditions. This part of the business will also provide work physicals, and provide cancer screenings, heart disease screenings, and other tests normally associated with the practice of a nurse practitioner.
In the future, Mr. Doe will seek to hire additional nurse practitioners that will expand the practice organically through increased patient flow. These associate nurse practitioners may eventually acquire the practice from Mr. Doe upon his retirement or relocation. The practice will receive a bulk of its payments from co-pays and reimbursements from insurance companies.
The Company will also generate secondary revenues from the sale of medical appliances, prescribed by Mr. Doe (under the supervision of a physician) to his patients. This is a very important revenue center for the business as the Company will generate substantial gross margins from each product sold.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the medical and nurse practitioner industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Current, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
However, Nurse Practitioner Practices operate with great economic stability as people will continue to require medical care despite deleterious changes in the general economy.
4.2 Industry Analysis
Within the United States there are approximately 200,000 medical practices (including nurse practitioner’s practices) that comprise of one or more doctors that act in a private practice capacity. Each year, these practices generate more than $190 billion dollars of revenue and employ more than 1.8 million people (including the practitioners and physicians). The growth of this industry has remained in lockstep with the growth of the general population. Approximately 5% of these doctors retire each year. Approximately 20,000 nurse practitioner’s enter private practice each year. This industry is expected to grow faster than that of the general economy as many states have adopted laws that allow nurse practitioner’s to have their own practices due to the shortage of doctors in the United States. This trend is expected to continue as more people from the Baby Boomer generation require medical care over the next five to twenty years.
4.3 Customer Profile
The Nurse Practitioner’s average client will be a middle class man or woman living in the Company’s target market. Common traits among clients will include:
• Annual household income exceeding $50,000
• Lives or works no more than 15 miles from the Company’s practice location.
• Has medical insurance.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Nurse Practitioner’s Practice intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Nurse Practitioner, Inc.
5.1 Marketing Objectives
- Establish relationships with doctors within the targeted market.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Nurse Practitioner, Inc. to easily target men, women, and families within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. Nurse Practitioner, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as medical services, now the Internet to conduct their preliminary searches. Mr. Doe will register the Nurse Practitioner’s Practice with online portals so that potential customers can easily reach the business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the general nurse practitioner rendered medical services that the Company is selling.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- Nurse Practitioner, Inc. will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $150,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the Company will not see a major decline in revenues. General medical services are in demand regardless of the general economic climate as they are an essential service for health
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
