1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of a speech pathology practice and store while showcasing the expected financials and operations over the next three years. Speech Therapist, Inc. (“the Company”) is a New York based corporation that will provide general speech therapy to customers in its targeted market. The Company was founded by Dr. John Doe.
1.1 Operations
Dr. Doe will render speech pathology services to his patients. These services include comprehensive hearing examinations, speech therapy, and co-management with physicians. The Company will receive direct fees from patients as well as reimbursement from private insurance companies. The third section of the business plan will further describe the services offered by the Speech Therapist, Inc.
1.2 The Financing
At this time, Dr. Doe is seeking to raise $125,000 via bank loan for the development of the business. The terms, interest rate, and loan covenants are to be determined at the time of negotiation. However, this business plan assumes that the Company will receive a 10 year loan with a 9% interest rate due on the outstanding principal balance. The financing will be used for the following:
• Development of the Company’s practice location.
• Financing for the first six months of operation.
• Capital to purchase medical equipment.
He will contribute $25,000 towards the development of the practice.
1.3 Mission Statement
Dr. Doe’s mission is to become the recognized leader in its targeted market for general speech pathology practices.
1.4 Management Team
The Company was founded by Dr. John Doe. The Founder has more than 10 years of experience as a practicing speech therapist. 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
Dr. 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. Dr. Doe intends to implement marketing campaigns that will effectively target individuals and families within the targeted market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Speech Therapist, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Speech Therapist requires $125,000 funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, Dr. Doe is not seeking an equity investment from a third party.
2.4 Management Equity
Dr. Doe will retain a 100% ownership interest in the Speech Therapist, Inc.
2.5 Exit Strategy
If the business is very successful, Dr. 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 the Speech Therapist practice. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings.
3.0 Operations
Below is a description of the services offered by the Speech Therapist.
3.1 Speech Therapy Services
Dr. Doe is a licensed speech therapist and his practice will render general treatment of speech disorders, co-management of medical procedures, and comprehensive speech examinations. As stated in the executive summary, the business will be reimbursed from co-pays, direct patient payments, and reimbursements from insurance companies.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the speech therapist industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, 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, speech pathology practices operate with great economic stability as people will continue to require care despite deleterious changes in the general economy.
4.2 Industry Analysis
Speech pathology practices provide aggregate revenues of $3 billion a year and employ 15,000 people. There are approximately 5,000 private speech pathology practices in the US.
4.3 Customer Profile
Speech Therapist, Inc.’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 with speech therapy coverage.
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
Speech Therapist, Inc. 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 practice.
5.1 Marketing Objectives
- 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.
- Establish relationships with referring physicians within the targeted market.
5.2 Marketing Strategies
Dr. Doe intends on using a number of marketing strategies that will allow Speech Therapist, 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. The Company will also use an internet based strategy. This is very important as many people seeking local services, such as a speech therapist, now the Internet to conduct their preliminary searches. Dr. Doe will register the 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 speech pathology services that the Company is selling.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- Speech Therapist, 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 Company shall settle most short term payables on a monthly basis.
7.2 Sensitivity Analysis
In the event of an economic downturn, the Company will not see a major decline in revenues. Speech Therapist 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
