Chiropractic Business Plan

Betcher Chiropractic, an Oregon L.L.C. owned by Dr. Tarri Betcher, is a start-up business that aims to achieve profitability by the second year of operation.

The Market
The demand for chiropractic medicine has been growing due to acceptance by insurance policies and an increase in published research on its effectiveness. Betcher Chiropractic targets two customer segments: individuals ages 45-65 and individuals ages 20-44.

Services
Chiropractors diagnose and treat patients with health problems related to the body’s muscular, nervous, and skeletal systems, particularly the spine. They believe that interference with these systems impairs normal functions and lowers resistance to disease. Betcher Chiropractic takes a holistic approach to healthcare, considering various factors such as exercise, diet, rest, environment, and hereditary influences. They provide natural, drugless, and nonsurgical treatments, relying on the body’s inherent recuperative functions.

Competitive Edge
Betcher Chiropractic distinguishes itself through its individualized and holistic approach to patient care. They recognize that wellness problems involve multiple systems and treat them accordingly. Success is achieved by addressing and managing the problems that brought the patient to the doctor.

1.1 Objectives

  1. To exceed patient expectations by creating a healthcare facility and tracking patient satisfaction through surveys.
  2. To increase the number of clients served by at least 25% each year.
  3. To reach self-sustainability within 20 months of operation.
  4. To establish a strong repeat and referral client base.

1.2 Mission

The mission of Betcher Chiropractic is to attract and maintain clients by offering uniquely individualized and professional care. Their goal is to promote the well-being of all patients and help each achieve and maintain the highest quality of life.

Chiropractic Business Plan Example

1.3 Keys to Success

1. Location: provide easy accessibility and ample parking for patients with physical limitations.

2. Environment: create a relaxing and professional atmosphere.

3. Convenience: offer extended business hours.

4. Reputation: establish an excellent reputation in the community.

Company Summary

Betcher Chiropractic was established as an Oregon L.L.C. in 2003.

2.1 Company Ownership

Tarri Betcher D.C. has majority ownership of Betcher Chiropractic.

2.2 Start-up Summary

Please refer to the following chart and table for a detailed breakdown of expenses. Tarri brings $2,500 of existing equipment.

The following equipment is needed for start-up:

  • One drop style adjusting table
  • One ultrasound/high volt physical therapy machine
  • Computer software including DSL connection, QuickBooks Pro, and Microsoft Office
  • Filing cabinet
  • Two phone lines with answering machine and fax machine
  • Copy machine
  • Reception area furniture and decorations
  • Two adjusting tables (one bench style and one portable)
  • Computer system with printer
  • Desk
  • Activator chiropractic instrument
  • Welch Allyn oto-opthomoscope
  • Lettmann stethoscope
  • Tyco blood pressure instrument with all cuffs
  • Chiropractic and medical health care library
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Chiropractic Business Plan Example

Start-up Funding:

Start-up Expenses to Fund: $21,500

Start-up Assets to Fund: $58,500

Total Funding Required: $80,000

Assets:

Non-cash Assets from Start-up: $17,500

Cash Requirements from Start-up: $41,000

Additional Cash Raised: $0

Cash Balance on Starting Date: $41,000

Total Assets: $58,500

Liabilities and Capital:

Liabilities:

Current Borrowing: $0

Long-term Liabilities: $20,000

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $20,000

Capital:

Planned Investment:

Investor 1: $40,000

Investor 2: $20,000

Additional Investment Requirement: $0

Total Planned Investment: $60,000

Loss at Start-up (Start-up Expenses): ($21,500)

Total Capital: $38,500

Total Capital and Liabilities: $58,500

Total Funding: $80,000

Start-up:

Requirements:

Start-up Expenses:

Legal: $300

Advertising: $2,000

Stationery etc.: $200

Brochures: $150

Consultants: $150

Insurance: $800

Rent deposit and 1st and last months rent: $2,700

Rent for six months: $7,200

Leasehold improvements: $5,000

Expensed equipment: $2,000

Other: $1,000

Total Start-up Expenses: $21,500

Start-up Assets:

Cash Required: $41,000

Other Current Assets: $2,500

Long-term Assets: $15,000

Total Assets: $58,500

Total Requirements: $80,000

Services:

Chiropractors, also doctors of chiropractic or chiropractic physicians, diagnose and treat patients with health problems associated with the body’s muscular, nervous, and skeletal systems, especially the spine. Chiropractors believe interference with these systems impairs normal functions and lowers resistance to disease. They also hold that spinal or vertebral dysfunction alters many important body functions by affecting the nervous system and skeletal imbalance through joint or articular dysfunction.

This chiropractor’s approach to health care is holistic, emphasizing the patient’s overall health and wellness. Betcher Chiropractic recognizes that various factors can affect wellness, including exercise, diet, rest, environment, and hereditary. Betcher Chiropractic provides natural, drugless, nonsurgical health treatments, relying on the body’s inherent recuperative functions.

Betcher Chiropractic specializes in the following areas for treatment:

– Back pain: Many factors can cause back pain. Betcher Chiropractic will attempt to restore a more normal motion and position of affected spinal bones through specific chiropractic adjustments.

Market Analysis Summary:

Betcher Chiropractic has identified two market segments to target. The largest segment is individuals ages 45-65, who begin to experience an increased incidence of health problems. The second market segment is individuals age 20-44, who are interested in chiropractic medicine due to their acceptance of alternative medicine.

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4.1 Market Segmentation:

Betcher Chiropractic has identified two distinct market segments to target services:

– Individuals age 45-65: This customer segment has experienced an increase in wellness issues, particularly those related to vertebral dysfunction. This segment often has the disposable income to pay for visits if their insurance does not cover chiropractic visits.

– Individuals age 25-44: This segment is in search of a wellness treatment/program to address their constant or intermittent pains. They may or may not have tried traditional medical treatments with no relief. This is a more liberal group that embraces alternative therapy instead of traditional western medicine regimes.

Chiropractic Business Plan Example

Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
345,090 396,854 456,382 524,839 603,565 15.00%
387,090 425,799 468,379 515,217 566,739 10.00%
732,180 822,653 924,761 1,040,056 1,170,304 12.44%

4.2 Target Market Segment Strategy

Betcher Chiropractic targets two separate customer groups for specific reasons.

  • Health Problems: Customers age 45-65 seek chiropractors for managing pain and discomfort associated with muscular, nervous, and skeletal systems.
  • Openness to alternative medicine: Customers age 25-44 are open to alternative treatment options, possibly due to dissatisfaction with conventional Western medicine.

4.3 Service Business Analysis

Chiropractors are licensed doctors of chiropractic medicine. Each state regulates chiropractic practice and grants licenses to qualified individuals. Chiropractors typically have a four-year bachelor’s degree in addition to chiropractic college coursework. The job market for chiropractors is growing faster than average, with median annual earnings of $67,030 in 2000.

4.3.1 Competition and Buying Patterns

There are approximately 2,300 chiropractic doctors in Oregon, with 1,390 in Portland. Betcher Chiropractic’s direct competitors are local chiropractors, while indirect competitors include alternative treatment providers and traditional physicians. Word of mouth recommendations play a significant role in customers’ buying patterns.

Strategy and Implementation Summary

Betcher Chiropractic’s competitive edge lies in its individualized, holistic approach. The marketing strategy includes free public seminars, print advertising, and networking activities. The sales effort focuses on exceeding customer expectations and generating positive word of mouth referrals.

5.1 Sales Strategy

The sales strategy aims to exceed customer expectations to generate positive word of mouth referrals. Successful treatment outcomes encourage patients to recommend Betcher Chiropractic to friends and acquaintances.

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5.1.1 Sales Forecast

Betcher Chiropractic has developed a conservative sales forecast that considers slow and steady growth in the practice. Long-term sustainability is prioritized over short-term profits.

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Chiropractic Business Plan Example

Chiropractic Business Plan Example

Sales Forecast

Year 1 Year 2 Year 3

Sales

Routine treatment $25,432 $83,455 $96,554

Initial examination and diagnosis $11,190 $36,720 $42,484

Total Sales $36,622 $120,175 $139,038

Direct Cost of Sales

Year 1 Year 2 Year 3

Routine treatment $509 $1,669 $1,931

Initial examination and diagnosis $509 $1,669 $1,931

Subtotal Direct Cost of Sales $1,017 $3,338 $3,862

5.2 Competitive Edge

Betcher Chiropractic’s competitive edge is the holistic approach to wellness. The basic assumption of this approach is that each patient is a distinct individual. While there are common problems among people, each individual’s body reacts differently to stimuli, and the most effective treatment considers significant individual variance.

Betcher Chiropractic treats every patient with this philosophical approach. It offers more effective treatment compared to other doctors because its mission is to address the problems that brought the patient in. By following these approaches, Betcher Chiropractic can offer more effective care.

5.3 Marketing Strategy

The marketing strategy is based on three types of activities:

Public Seminars: Betcher Chiropractic will offer free public seminars to increase visibility in the surrounding communities. Seminars introduce Betcher Chiropractic to prospective customers, increase visibility, and establish trust, an important foundation of a doctor-patient relationship.

5.4 Milestones

Betcher Chiropractic has identified four milestones that are ambitious yet achievable goals:

Completion of the business plan.

Secure and prepare the facilities.

Full-time status.

Profitability.

Chiropractic Business Plan Example

Milestones:

Milestone Start Date End Date Budget Manager Department

Completion of business plan 1/1/2003 2/1/2003 $0 Dr. Betcher Marketing

Securing and preparing facilities 1/1/2003 3/1/2003 $0 Dr. Betcher Department

Full time status 1/1/2003 8/1/2003 $0 Dr. Betcher Department

Profitability 1/1/2003 6/0/04 $0 Dr. Betcher Department

Totals $0

Note: The table above outlines the milestones, start dates, end dates, budgets, managers, and departments related to each milestone.

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