Beruflich Dokumente
Kultur Dokumente
Business Plan
Quality Care
646-224-22342
123 Anywhere
1
Confidentiality Agreement
The undersigned reader of QUALITY CARES Business Plan hereby acknowledges that the information
provided is completely confidential and therefore the reader agrees not to disclose anything found in the
business plan without the express written consent of QUALITY CARE/
It is also acknowledged by the reader that the information to be furnished in this business plan is in all
aspects confidential in nature, other than information that is in the public domain through other means
and that any disclosure or use of the same by the reader may cause serious harm and or damage to
QUALITY CARE.
Upon request this business plan document will be immediately returned to QUALITY CARE.
__________________________________________________
Signature
__________________________________________________
Printed Name
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Overview
Quality Care PTPC, the company, provides outpatient rehabilitation services with a focus
on physical therapy and speech pathology in Jackson Heights, Queens. The following
business plan serves as a proposal to provide outpatient rehabilitation services within the
existing medical facility and the recipient to cover initial startup expenses in exchange for
a profit-sharing agreement to be determined during negotiation phase.
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Table of Contents
4
Table of Figures
5
EXECUTIVE SUMMARY
The company is a provider of physical therapy located in Jackson Heights, Queens. It will provide
outpatient rehabilitation for speech pathology, physical, and occupational rehabilitation using the existing
partner facility, the facility (partner facility), and predominately to the existing clients of the partner
facility to enable the partner facility to offer more comprehensive services on-site to its existing clients
and form a reliable partnership to diversify its revenue streams and avoid the use of unreliable third-party
referrals.
The following business plan outlines the scope of services provided by the company, along with the
structure of the proposed partnership and anticipated financial results from the partnership based on the
proposed production forecast and hiring schedule. Critical assumptions related to the strengths and
weaknesses of the proposed partnerships have also been outlined, along with a description of how the
management team will properly utilize or mitigate them, respectively.
The company will exclusively provide outpatient physical therapy services to the existing clients of the
facility, in addition to new external patients that it will acquire through its marketing and promotional
campaigns. As the company expands, it is also expected that its positive reputation will generate referrals
and word of mouth business. Additional medical professionals will also be hired to increase the extent
and diversification of services provided to new and existing patients.
Occupational Therapy: Occupational therapy provides training and development for individuals
seeking emotional and personality development to interact in a workforce environment and
maintaining productive lifestyles.
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MARKET SUMMARY
There are an estimated 108,152 citizens residing within the 300-acre radius of Jackson Heights, Queens
and an estimated 2.296 million citizens residing within the Queens borough of New York City, per a 2013
U.S. Census Poll. The same U.S. Census data showed that the Average Adjusted Gross Income (AGI) in
2012 was $37,821 with an average salary of $40,998. Most residents are between the ages of 25 55 and
over 75% of the population has a high school diploma or greater with 29% having a college diploma or
greater. Therefore, the community primarily consist of working class and young professionals that are
likely either members of Medicare or Medicaid healthcare plans
VISION
The vision of Quality Care PTPC is to assist New York City residents to live more productive, happier, and
healthier lives in the most efficient and lease burdensome manner by providing outpatient therapy
services with the best staff possible.
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OBJECTIVES
KEYS TO SUCCESS
The market entry strategy of the company proposes that the partnership will cover the rent related
expenses, along with adequate operating capital for the company to mitigate risk during its initial period
of operations. The exact amount incurred is likely to vary, but the budgeting below has been done to
conservatively account for all expenses related to starting the facility and managing it for a period of at
least three months, providing adequate period to acquire patients and reach a stable point in operations.
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QUALITY CARE PTPC
The company provide outpatient physical therapy services to some clients of the partnership facility, in
addition to new external patients that it will acquire through its marketing and promotional campaigns.
As the company expands, it is also expected that its positive reputation will generate referrals and word
of mouth business.
Occupational Therapy: Occupational therapy provides training and development for individuals
seeking emotional and personality development to interact in a workforce environment and
maintaining productive lifestyles.
INDUSTRY OVERVIEW
Per the Bureau of Labor Statistics, Employment of physical therapists is projected to grow 34 percent from
2014 to 2024, much faster than the average for all occupations. Demand for physical therapy services will
come from the aging baby boomers, who are staying active later in life. In addition, physical therapists
will be needed to treat people with mobility issues stemming from chronic conditions, such as diabetes
or obesity.
MARKET TRENDS
The U.S. outpatient rehabilitation market is estimated to be a $29.6 billion industry with a projected
annual growth rate of seven percent or higher. The sector is also highly fragmented, with no company
controlling significant market share. Given the aging and active US population, the demographics favor a
sustained growth in patients seeking or requiring rehabilitation services. Also, increasing numbers of
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Americans who engage in fitness regimens, coupled with increasing numbers of weekend warriors, is
driving increased demand for physical therapy and rehabilitation treatments across the U.S.
MARKET GROWTH
Outpatient rehabilitation is a $29.6 billion industry that is expected to grow 7% annually through 2018P.
Numerous, positive factors driving long-term growth including an aging U.S. population, unhealthy youth
lifestyles, growth in employment, increasing penetration of physical therapy services, and outpatient
rehabilitation.
MARKET SEGMENTATION
The market segmentation of rehabilitation services if predominately centered around orthopedic physical
therapy with general physical therapy and speech pathology making up 19% of the total $29.6 billion
market. The aging population within Jackson Heights along with the lower income levels is likely to lead
to a less healthy lifestyle and greater dependence on the government healthcare system.
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STRATEGY & IMPLEMENTATION SUMMARY
The strategy of the company is three-fold. The facility will be in an area that is convenient to shoppers and
a central area to commuters. It will also implement measurable marketing strategies to acquire new
patients by leveraging digital mediums and word-of-mouth referrals. Finally, the company with emphasize
relationship development by minimizing patient wait time and training staff to be courteous.
Strategic Location
Jackson Heights is a growing community within the most populated city in the United States. It is unlikely
that growth will slow any time within the future as economic opportunities continue to become more
prevalent within the borough and city at large.
Customer Acquisition
The customer acquisition strategy of the company is to launch an ongoing marketing campaign that
integrates with the website to gain leads. The center will also have a presence on free directories including
Yelp! and Google Places
Effective customer retention will be a key success factor for the company. This will be accomplished by
minimizing patient wait times, hiring a friendly staff, and sending patient reminders via the
communication medium of the patients choice.
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MANAGEMENT TEAM
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ORGANIZATIONAL CHART
Adrian
Board/Investors
Wilcourt/Legal
John Doe/CEO
Susan Kevin
Miller/COO Jones/CFO
Marketing
Sales Director Accounting
Director
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SWOT ANALYSIS
Strengths
Weaknesses
The company must be able to acquire new patients with little known brand history.
The most established competitors will already have positive online reviews and references.
Opportunities
Threats
The rapidly increasing population is likely to mean that more competitors will enter the market.
Jackson Heights has a smaller than average population over 65, which require frequent visits.
The new healthcare law under the presidency of Donald Trump may alter healthcare access.
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COMPETITIVE COMPARISON
There are several companies providing physical therapy services within Jackson Heights and the
surrounding area. However, the main competitive advantage that the company will have is its association
and relationship with the existing facility which has the potential to generate new business. Therefore, it
will benefit from the prior relationships and client network of the partner company and is immediately
able to be profitable during its first business quarter of operations.
In addition to the relationship that the company will form with its strategic partner, it will also have
distinctive positioning as hiring highly qualified and trained therapists. The owner and director has
extensive experience managing similar facilities and therefore, has a greater ability to source and retain
top talent, which will lead to more consistent quality services being provided to clients in the Jackson
Heights area, along with surrounding neighborhoods within Queens.
Moreover, not all physical therapists and speech pathologists are within the healthcare network of
prospective patients, which limits them to a restricted patient base. The company will accept most
healthcare plans and therefore, be more accessible to a wider market than competing facilities that are
more limited in scope and service.
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MARKETING PLAN
The marketing strategy of the company is two-fold. It will first launch an initial campaign to gain awareness
in the market and later follow-up with additional pulse promotions to control the inflow of new patients.
The initial launch will consist of reaching out to regional media agencies to pitch a story, followed up a
website, and the creation of online directories.
Public Relations
Most local media agencies will not be interested in writing about the opening of a physical therapy
office. However, the media may be interested in the relationship established and the existing
facility may have a reputation which will make press coverage much easier. Local media outlets
will be notified of the agreement and requested to cover the story.
Website
A basic website will be created that includes the office location, hours, therapist information, a
basic product selection, and enables online appointment scheduling. As the website grows, it may
also integrate the online sales and additional production selection of frames so that patients may
shop on the website when they are not on-site with free pick-up at the store items that assist with
the therapy (not included in the financial projections).
Social Media
Social media is more important than ever for therapists. Rather than looking to the Yellow Pages,
consumers search online for their nearest provider. This means being listed on Google Places with
positive reviews, Yelp!, and other directories. For instance, some websites enable patients to
search for providers that accept their healthcare plan within a zip code. Positive online reviews
are extremely important and every patient should be encouraged to write one.
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FINANCIAL FORECASTS
The financial forecasts have been prepared based upon the assumption that the company will not pay
rent and instead, will compensate a strategic partner based upon a revenue sharing agreement for use of
the facility and initial support to cover startup operating expenses. These fees have primarily been
allocated to startup equipment for a total cost of $40,000 in addition to other operating capital reserved
to cover fixed business expenses as a risk mitigation strategy to prevent liquidity risk. The financials have
been performed based upon the estimated billable hours at $80.00 per hour. Hence, revenue is a function
of billable hours and the total billable hours generated can be determined based upon dividing the total
revenue by $80.00, which is the average payout for Medicare healthcare plans.
START-UP SUMMARY
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FINANCIAL HIGHLIGHTS
The financial highlights are how the company is projected to perform over the course of the next twelve
months and three to five years. The projections are based on comparable facilities based on estimated
revenue range and size, along with geographic location. We have assumed that for at least the first six-
months of post-money financing that expenses may be greater than revenues while the company invests
into growth.
Gross Margin/Revenue 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38%
EBITDA/Revenue 23% 25% 26% 18% 18% 19% 19% 19% 20% 20% 20% 20% 20% 27% 28% 28% 28%
Net Profit/Revenue 16% 18% 19% 13% 13% 14% 14% 14% 14% 14% 14% 14% 15% 21% 21% 22% 22%
800 800
Gross Margin
600 600
200 200
Net Profit
0 0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
Projected Cash Flow By Year ($000) Projected Net Income By Year ($000)
900 250
800
700 200
The company believes that it can reach an increasing net profit margin due to economies of scale. Through
investments in capital expenditures, it may decrease its general and administrative expenses. Financial
indicators are based upon the performance of comparable companies in the same asset class, revenue
range and age both from publicly available information and our internal database of research.
Financial Indicators
Year 1 Year 2 Year 3
Profitability %'s:
Gross Margin 38% 38% 38%
Net Profit Margin 15% 21% 21%
EBITDA to Revenue 20% 27% 28%
Return on Assets 60% 63% 41%
Return on Equity 0% 74% 44%
Financial Indicators
70%
50%
Net Profit Margin
40%
30%
EBITDA to Revenue
20%
0%
Year 1 Year 2 Year 3
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REVENUES FORECAST
Revenue Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue Forecast
Therapy (Out-Of-Pocket) 434,493 868,986 912,435 958,057 1,005,960
- - - - -
- - - - -
- - - - -
Total Revenue $ 434,493 $ 868,986 $ 912,435 $ 958,057 $ 1,005,960
Revenue By Year
1200
1000
800
600
400
200
0
Year 1 Year 2 Year 3 Year 4 Year 5
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
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PROJECTED PROFIT AND LOSS
The profit and loss assume that the company will have margins at a comparable level to companies within
its industry. While management might not have incurred exactly for future operating expenses, they have
been assumed to reasonable reach comparable profit margins to industry comparables. The management
will operate with minimal expenditures to focus on R&D and commercialization expenses until the
company has sufficient income to support dividend distribution.
Expenses
Rent 32,400 44,496 45,831 47,206 48,622
Business Insurance 1,800 1,854 1,910 1,967 2,026
Phone/Internet 3,600 3,708 3,819 3,934 4,052
Other Utilities 3,600 3,708 3,819 3,934 4,052
Professional Services 28,800 29,664 30,554 31,471 32,415
Sales & Marketing 4,800 4,944 5,092 5,245 5,402
Total Operating Expenses $ 75,000 $ 88,374 $ 91,025 $ 93,756 $ 96,569
Wages & Payroll - - - - -
Depreciation, Amortization & Taxes 24,099 53,604 55,895 56,039 56,190
Net Income $ 63,835 $ 183,892 $ 195,243 $ 209,477 $ 224,476
Net Income/Revenue 15% 21% 21% 22% 22%
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PROJECTED CASH FLOW
Cash Outflows
Investing Activities
New Fixed Assets Purchases $ - $ - $ - $ - $ -
Inventory Addition to Bal.Sheet $ - $ - $ - $ - $ -
Cost of Sales $ 271,558 $ 543,116 $ 570,272 $ 598,786 $ 628,725
Operating Activities
Salaries and Wages $ - $ - $ - $ - $ -
Fixed Business Expenses $ 75,000 $ 88,374 $ 91,025 $ 93,756 $ 96,569
Taxes $ 16,771 $ 46,785 $ 49,623 $ 49,767 $ 49,918
Financing Activities
Loan Payments $ 11,129 $ 11,129 $ 11,129 $ 11,129 $ 11,129
Line of Credit Interest $ - $ - $ - $ - $ -
Line of Credit Repayments $ - $ - $ - $ - $ -
Dividends Paid $ - $ - $ - $ - $ -
Year 1 Cash
70,000
60,000
50,000
30,000
20,000
Cash Balance
10,000
-
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
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PROJECTED BALANCE SHEET
The projected balance sheet assumes that there are no dividend draws and all cash flow is re-invested
back into the company at the end of the year. The balance sheet does not assume any line of credits or
account receivables that are outstanding at the end of the year and that the company will have paid off
all liabilities. Likewise, it assumes that all accounts will pay within thirty-days and there will be no
delinquency of payments.
Long-term Assets
Long-term Assets $ 50,800 $ 50,800 $ 50,800 $ 50,800 $ 50,800
Accumulated Depreciation $ 0 $ 0 $ 0 $ 0 $ 0
Total Long-term Assets $ 50,800 $ 50,800 $ 50,800 $ 50,800 $ 50,800
Total Assets $ 106,958 $ 290,415 $ 482,073 $ 691,549 $ 916,025
Common Stock $ - $ - $ - $ - $ -
Retained Earnings $ - $ 248,100 $ 443,343 $ 652,820 $ 877,296
Total Capital $ - $ 248,100 $ 443,343 $ 652,820 $ 877,296
Total Liabilities and Capital $ 54,398 $ 294,937 $ 482,073 $ 691,549 $ 916,025
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SENSITIVITY ANALYSIS
Revenue
$90,000,000
$80,000,000
Best Case
$70,000,000
$60,000,000
Most Likely
$50,000,000
$40,000,000
$10,000,000
$-
Year 1 Year 2 Year 3
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BREAK-EVEN ANALYSIS
HOURS NET REVENUE FIXED COST VARIABLE COST TOTAL COST TOTAL PROFIT
- $0 $88,374 $0 $88,374 -$88,374
1,000 $80,000 $88,374 $50,000 $138,374 -$58,374
2,000 $160,000 $88,374 $100,000 $188,374 -$28,374
3,000 $240,000 $88,374 $150,000 $238,374 $1,626
4,000 $320,000 $88,374 $200,000 $288,374 $31,626
5,000 $400,000 $88,374 $250,000 $338,374 $61,626
6,000 $480,000 $88,374 $300,000 $388,374 $91,626
7,000 $560,000 $88,374 $350,000 $438,374 $121,626
8,000 $640,000 $88,374 $400,000 $488,374 $151,626
9,000 $720,000 $88,374 $450,000 $538,374 $181,626
10,000 $800,000 $88,374 $500,000 $588,374 $211,626
11,000 $880,000 $88,374 $550,000 $638,374 $241,626
12,000 $960,000 $88,374 $600,000 $688,374 $271,626
13,000 $1,040,000 $88,374 $650,000 $738,374 $301,626
14,000 $1,120,000 $88,374 $700,000 $788,374 $331,626
15,000 $1,200,000 $88,374 $750,000 $838,374 $361,626
16,000 $1,280,000 $88,374 $800,000 $888,374 $391,626
Breakeven Analysis
$1,400,000
$1,200,000
COST-VOLUME-PROFIT
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
0
10000
16000
11000
12000
13000
14000
15000
1000
2000
3000
4000
5000
6000
7000
8000
9000
NET UNITS
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APPENDIX
Gross Margin $ 9,000 $ 10,350 $ 11,903 $ 13,688 $ 13,962 $ 14,241 $ 14,526 $ 14,816 $ 15,113 $ 15,113 $ 15,113 $ 15,113
Gross Margin/Revenue 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38% 38%
Expenses
Rent - - - 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600
Business Insurance 150 150 150 150 150 150 150 150 150 150 150 150
Phone/Internet 300 300 300 300 300 300 300 300 300 300 300 300
Other Utilities 300 300 300 300 300 300 300 300 300 300 300 300
Professional Services 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400
Sales & Marketing 400 400 400 400 400 400 400 400 400 400 400 400
Total Operating Expenses $ 3,550 $ 3,550 $ 3,550 $ 7,150 $ 7,150 $ 7,150 $ 7,150 $ 7,150 $ 7,150 $ 7,150 $ 7,150 $ 7,150
EBIT $ 5,450 $ 6,800 $ 8,353 $ 6,538 $ 6,812 $ 7,091 $ 7,376 $ 7,666 $ 7,963 $ 7,963 $ 7,963 $ 7,963
EBIT/Revenue 23% 25% 26% 18% 18% 19% 19% 19% 20% 20% 20% 20%
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Year 1 Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Revenue
$ 24,000.0 $ 27,600.0 $ 31,740.0 $ 36,501.0 $ 37,231.0 $ 37,975.6 $ 38,735.2 $ 39,509.9 $ 40,300.1 $ 40,300.1 $ 40,300.1 $ 40,300.1
New Current Borrowing
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
New Long-Term Liabilities
$ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Expenditures
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