1.0 Executive Summary
The purpose of this business plan is to secure $135,000 a capital for the development of a chiropractic practice based in Pittsylvania County, Virginia. Chiropractor Practice LLC (“the Company”) was founded with the intention providing a wide range of chiropractic services that part and parcel of this scope of care. Full scale revenue generating operations will commence in the fourth quarter of this year once the practice location has been finalized.
Operations
The primary revenue center for the business will come from rendering ongoing chiropractic services to the residents of Pittsylvania County. The Founder is a licensed chiropractor that will directly render services to his patients. The Company will also onboard a number of staff chiropractor so the business can expand its revenue on a year-on-year basis.
In regards to payment, the Company will operate as a cash-based practice. The business will provide invoices so that remittances can be made among patients that are seeking insurance reimbursement. This will eliminate the issues that are associated with accounts receivable.
The third section of this chiropractic practice business plan will further document the operations of the business.
The Financing
As noted above, the Company is currently seeking a $135,000 business loan to commence operations. The terms of this financing are expected to be a 10-year loan with an 8% interest rate. These funds will be principally used for the acquisition of the Company’s location, and its buildout as well as for furniture, fixtures, and equipment. Moving forward, the Company could easily secure ongoing rounds of capital to further fuel the growth objectives of the business.
The Future
The Company will continue to expand the scope of its marketing campaigns that becomes the premier chiropractic practice within the Pittsylvania County area. The Company will also continue to hire additional staff chiropractors while potentially developing additional satellite locations once the initial location has reached 100% capacity.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The funding discussed in the executive summary will be allocated as follows:
2.2 Management and Investor Equity
The Founder is the 100% owner of the Chiropractic Practice.
2.3 Exit Strategies
In all like lines, the practice would be sold to staff chiropractors through a buyout agreement. There is also the potential that the practice could be sold to a third-party chiropractor that is not affiliated with the practice. In either event, a formal valuation will be completed prior to marketing the practice for sale or conducting a buyout program.
3.0 Operations
The Company will render the entire scope of services that are part and parcel of the practice of chiropractic medicine. This will include spine adjustments, neck adjustments, as well as ongoing health advisory.
The owner and all staff chiropractors will be licensed by the Commonwealth of Virginia to provide the services. As noted in executive summary, the business will operate on a cash-based model in order to streamline billing procedures. This will ultimately result in much higher profits given that the business will not need to address issues with unpaid receivables or bad debts.
To a more moderate extent, the Company will also generate revenue from the sale of health improvement products which will be featured onsite. The Company’s staff chiropractors will recommend these products to address certain health issues.
4.0 Overview of the Organization
4.1 Registered Name
Chiropractor Practice LLC. The Company is registered to a limited liability Company in the Commonwealth of Virginia.
4.2 Commencement of Operations
This chiropractic practice will commence operations in the fourth quarter of this year.
4.3 Mission Statement
To provide holistic chiropractic care for the Company patients at an affordable cost.
4.4 Vision Statement
To operate is a highly respected and well-known chiropractic practice in Pittsylvania County.
4.5 Organizational Objectives
• Properly established the operations of the business once the capital has been secured.
• Established ongoing referral relationships with healthcare providers in the target market area.
• Continue to hire staff chiropractors of the Company can boost its revenues yearly.
• Conduct extensive direct outreach with referring realtors in the target market area.
• Use multiple forms of online marketing to establish a highly visible brand name for the chiropractic practice.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the business plan will document the chiropractic industry, the patient profile, the current economic climate, as well as the ongoing competition.
At this time, the economic climate in the United States is moderate. This is primarily due to the fact that there have been significant changes in the way that trade policy has been implemented over the past twelve months.
It should be noted that issues with the economy will not have a major impact on the Company’s ability to generate revenue. This primarily due to the fact that people will view their chiropractic treatments is an absolute necessity for good health.
5.2 Industry Analysis
Aas of this year, chiropractic practices generate $23.4 billion of revenue. This industry is expected to continue to grow at a rate that is faster than that at the general economy as people become more concerned about their wellness. Additionally, many individuals suffer from neck and back issues and seek chiropractors who address these problems on an ongoing basis.
5.3 Customer Profile
The services that are offered by the chiropractic practice or universally in demand. Generally, Management expect that the Company patients will live within 10 miles of the practice’s location and will have immediate household income higher than $65,000.
5.4 Competitive Analysis
The Company will face ongoing competition as establishes its operations in Pittsylvania County. The primary competitive advantage at the practice will have is that the business will take a whole holistic approach to addressing an individual’s overall health as well as their chiropractic needs.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Chiropractor Practice will have sustainable operations as a result of the following:
• Moderately high barriers entry due to the licensing and educational requirements.
• The Company will have several chiropractors on staff so that proper care can be rendered at all times.
• The business will be able to integrate additional services that will boost revenues in the coming years.
6.2 Basis of Growth
The Company will expand via the following methods:
• Expansion of the practice’s marketing operations on a yearly basis.
• Potential development of satellite practice locations.
• Integration of other types of alternative medicine to improve the outcomes for patients.
7.0 Marketing Plan
7.1 Marketing Objectives
• Establish ongoing relationships with multiple healthcare providers in the target market area.
• Maintain an expansive online presence that uses both social media and search engine optimization.
• Foster referral relationships with realtors.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• The practice will launch in the fourth quarter of this year.
• First year revenue will reach $697,000.
Year 2
• The practice will expand the scope of its marketing operations.
• Revenue will reach $759,000.
Years 3-5
• A third chiropractor will be hired in Year 3.
• Revenue will reach $1.3 million in Year 5.
7.4 Marketing Strategies
The Company will use numerous marketing strategies in order to create a significant amount of visibility for this chiropractic practice. During the buildout phase of location, the Company will launch it to expansive online presence so that people are aware of the wide range of chiropractic services that are available. This platform will undergo regional search engine optimization so that when searches for chiropractors are completed in the target market, the website will appear frequently in the search.
The Company will also establish ongoing relationships with referring healthcare professionals and realtors. Given that these referrals will come from trusted professionals, this will lead to a rapid development of the patient base.
The Company will also host open houses where free sessions can be provided to individual seeking chiropractic care. This will familiarize people with the location will also positioning the chiropractic practice as a community minded health business.
The Company will also use multiple social media platforms, including general social media and those that are focused on healthcare professionals. This will contribute to the effective nature of the Company search engine optimization campaigns.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The Company will acquire $135,000 to establish operations.
• The founder will contribute $65,000 for the venture.
9.2 Financial Highlights
• The practice will achieve contribution margins of 95% of all chiropractic services.
• Health product sales will generate contribution margins of 65%.
9.3 Sensitivity Analysis
The demand for the Company’s services will remain strong in any economic climate given that this is a healthcare focused business. Although the Company is operating on a cash-based model, individuals will be able to receive reimbursement from their respective insurance carriers. The business will have control operating costs that will further contribute to the economic stability of this chiropractic practice.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• Immense and ongoing demand for chiropractor services in the target market area.
• The Founder is a highly experienced chiropractor that will be able to properly establish these operations.
• The business’ cash only model will streamline billing procedures.
• Very high barriers to entry.
Weaknesses
• Ongoing competition from established chiropractic practices in the market.
• Moderately high costs related to payroll.
Opportunities
• Development of satellite chiropractic practice locations.
• Hiring of additional chiropractors on an ongoing basis.
• Continued integration of new alternative medicine services that improve a patient’s health.
Threats
• Ongoing issues with inflation could impact the operating costs of the practice.
Appendix B – Critical Risks
Development Risk – Low
The primary matter that needs to be addressed is securing the funding sought in this document. The Company has already begun to source the location that will be used to house is the chiropractic practice.
Financing Risk – Low/Moderate
The $135,000 of capital Saugh in this document will be used for the build out of this practice as well as equipment. These risks are offset by the fact that this is a healthcare focused enterprise that will generate substantial contribution merchants in any economic climate.
Marketing Risk – Low
The Company will use a number of pre-launch marketing strategies coupled with ongoing advertising to drive patients to the practice location. This will be complimented with direct outreach initiatives with realtors and healthcare professionals.
Management Risk – Low
The Founder is a highly experienced and competent chiropractor. He will be able to properly establish these operations to profitability.
Valuation Risk – Low
The valuation risk is offset by:
• As this is a health focused business, the revenue of the Company is relatively immune from negative changes in economy.
• The business will enjoy multiple revenue frames.
Exit Risk – Low
As noted earlier, there would be a moderate degree of complexity with selling this business to a third-party. In all likeliness, the Company staff chiropractors would be the ultimate buyers of the Company.