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
- To exceed patient expectations by creating a healthcare facility and tracking patient satisfaction through surveys.
- To increase the number of clients served by at least 25% each year.
- To reach self-sustainability within 20 months of operation.
- 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.
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
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.
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.
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.
To develop effective strategies for your business, perform a SWOT analysis using our free guide and template.
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.
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.
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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