The Pacific Valley Sport Medicine Center, opening soon in the greater Southerlin metro area, will be home to Dr. John Meeks. With six years of experience as a chiropractic doctor at the Nichols Wellness Center, Dr. Meeks is now venturing out on his own. He will join the Center’s esteemed sport injury specialists, who sought his expertise. These specialists account for over 70% of Dr. Meeks’ referrals. At his new location in the Center, Dr. Meeks will focus solely on sport injury referrals.

Chiropractic Services Business Plan Example

The mission of Sports Chiropractic in the Southerlin community is to provide accessible, quality chiropractic care for athletes of all ages. We emphasize trust, respect, confidentiality, and compassion in our service system. Our chiropractic care is a collaborative effort with a physician’s overall health strategies and other medical services, always keeping the customer/client as our priority.

Our objectives are to continuously develop and strengthen our chiropractic services, strengthen our commitment to chiropractic, increase referrals from physicians within the center, and build referral into repeat clients.

Sports Chiropractic, started by Dr. John Meeks in the newly opened Pacific Valley Sport Medicine Center, offers quality chiropractic services to athletes of all ages and works closely with the center’s physicians.

Our estimated start-up expenses are $20,000, which will be financed by Dr. Meeks’ personal funds. An additional $25,000 will be required as start-up assets.

Chiropractic Services Business Plan Example

Start-up

Requirements

Start-up Expenses

Legal $0

Stationery etc. $300

Brochures $500

Consultants $0

Insurance $800

Rent $1,500

Research and Development $0

Expensed Equipment $4,000

Leased Equipment $13,000

Other $0

Total Start-up Expenses $20,100

Start-up Assets

Cash Required $24,900

Other Current Assets $0

Long-term Assets $0

Total Assets $24,900

Total Requirements $45,000

Start-up Funding

Start-up Expenses to Fund $20,100

Start-up Assets to Fund $24,900

Total Funding Required $45,000

Assets

Non-cash Assets from Start-up $0

Cash Requirements from Start-up $24,900

Additional Cash Raised $0

Cash Balance on Starting Date $24,900

Total Assets $24,900

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable (Outstanding Bills) $0

Other Current Liabilities (interest-free) $0

Total Liabilities $0

Capital

Planned Investment

Dr. Meeks $45,000

Investor 2 $0

Other $0

Additional Investment Requirement $0

Total Planned Investment $45,000

Loss at Start-up (Start-up Expenses) ($20,100)

Total Capital $24,900

Total Capital and Liabilities $24,900

Total Funding $45,000

Company Ownership

Sports Chiropractic is owned by Dr. John Meeks.

Services

Dr. Meeks’ philosophy is that optimal health and performance can be attained through the proper balance of exercise, nutrition, and care of the body’s framework (skeleton). Additionally, maintaining good health depends on a normally functioning nervous system. Misaligned skull and spinal vertebrae can irritate and interfere with nerve impulses. As a chiropractor, Dr. Meeks corrects these misalignments to restore balance and promote the body’s ability to heal itself.

Sports Chiropractic offers treatment for various conditions, including athletic injuries, low back and leg pain, neck and arm pain, headaches, and shoulder, knee, and foot pain.

Market Analysis Summary

The chiropractic field in Southerlin is crowded, with over 60 chiropractors practicing in the area. Dr. Meeks specializes in athletic injuries, particularly for runners. Southerlin has a large and dedicated running community, as well as high school athletes in need of treatment. Another potential client group is active baby-boomers who want to remain pain-free as they age.

Market Segmentation

Sports Chiropractic will focus on the following market segments: runners, high school age athletes, and active baby-boomers.

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Chiropractic Services Business Plan Example

Market Analysis

Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Runners 15% 5,000 5,750 6,613 7,605 8,746 15.00%

High School Age Athletes 15% 4,000 4,600 5,290 6,084 6,997 15.00%

Active Baby-Boomers 10% 20,000 22,000 24,200 26,620 29,282 10.00%

Total 11.63% 29,000 32,350 36,103 40,309 45,025 11.63%

Strategy and Implementation Summary

Sports Chiropractic is uniquely positioned to successfully treat sports injuries. The following subsections outline these advantages.

5.1 Competitive Edge

Dr. Meeks, an avid runner, is one of the most visible sports injury specialists in Southerlin. He supports numerous charity runs and has spoken to many athletic groups and organizations about preventing sports injuries.

Dr. Meeks has developed an extensive network of contacts with physicians specializing in sports injuries. Over half of his referrals come from these doctors. This is a strong competitive edge. Additionally, his strong reputation for exceptional service has resulted in a growing base of loyal clients who will follow him to his new practice.

The strongest competitive advantage for Sports Chiropractic is being the only chiropractic service in the Pacific Valley Sport Medicine Center. As stated earlier, this center will become the dominant service provider for sports injuries. Dr. Meeks will be the chiropractor to see for sport-related injuries.

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5.2 Marketing Strategy

While Sports Chiropractic has a strong referral base for clients, it will still be important to market Dr. Meeks’ services.

Dr. Meeks will continue to speak to local groups about preventing sports injuries to maintain his reputation as the sports injury expert.

In addition, Sports Chiropractic will sponsor an annual run in the city to support high school athletics.

5.3 Sales Forecast

The following table and chart highlight the sales forecast for three years.

Chiropractic Services Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
$138,000 $151,800 $166,980

Personnel Plan

The Sports Chiropractic staff consists of Dr. Meeks, one full-time receptionist/clerical staff member, and a half-time bookkeeper.

Personnel Plan
Year 1 Year 2 Year 3
$48,000 $58,000 $68,000
$24,000 $28,000 $33,000
$13,500 $15,000 $17,000
3 3 0
$85,500 $101,000 $118,000

Financial Plan

The following is the financial plan for Sports Chiropractic.

Break-even Analysis

The monthly sales break-even point is shown in the table and chart below.

Break-even Analysis
Monthly Revenue Break-even $10,244
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $10,244

Projected Profit and Loss

The projected profit and loss for three years is as follows.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
$138,000 $151,800 $166,980
$0 $0 $0
$0 $0 $0
$0 $0 $0
$138,000 $151,800 $166,980
$85,500 $101,000 $118,000
$4,800 $5,000 $5,000
$0 $0 $150
$1,800 $1,800 $1,800
$18,000 $18,000 $1,800
$12,825 $15,150 $17,700
$0 $0 $0
$122,925 $140,950 $144,450
$15,075 $10,850 $22,530
$15,075 $10,850 $22,530
$0 $0 $0
$4,523 $3,255 $6,759
$10,553 $7,595 $15,771
7.65% 5.00% 9.44%

Projected Cash Flow

The projected cash flow for three years is as follows.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
$138,000 $151,800 $166,980
$138,000 $151,800 $166,980
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$138,000 $151,800 $166,980
$123,414 $144,687 $152,031
$123,414 $144,687 $152,031
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$123,414 $144,687 $152,031
$14,586 $7,113 $14,949
$39,486 $46,599 $61,548
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Projected Balance Sheet

The projected balance sheet for three years is as follows.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
$39,486 $46,599 $61,548
$0 $0 $0
$39,486 $46,599 $61,548
$4,033 $3,551 $2,730
$0 $0 $0
$4,033 $3,551 $2,730
$35,453 $43,048 $58,819
$39,486 $46,599 $61,548
$35,453 $43,048 $58,819

Business Ratios

The following table outlines some important ratios from the Offices of Physicians industry.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
0.00% 10.00% 10.00% 5.90%
0.00% 0.00% 0.00% 50.50%
100.00% 100.00% 100.00% 60.80%
0.00% 0.00% 0.00% 39.20%
100.00% 100.00% 100.00% 100.00%
10.21% 7.62% 4.43% 39.80%
0.00% 0.00% 0.00% 14.10%
10.21% 7.62% 4.43% 53.90%
89.79% 92.38% 95.57% 46.10%
100.00% 100.00% 100.00% 100.00%

Appendix

Sales Forecast:

Sales:

Month 1: $7,000

Month 2: $8,000

Month 3: $9,000

Month 4: $10,000

Month 5: $11,000

Month 6: $12,000

Month 7: $12,000

Month 8: $13,000

Month 9: $14,000

Month 10: $14,000

Month 11: $14,000

Month 12: $14,000

Clients:

0%: $7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$12,000

$13,000

$14,000

$14,000

$14,000

$14,000

Other:

0%: $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Sales:

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$12,000

$13,000

$14,000

$14,000

$14,000

$14,000

Direct Cost of Sales:

Month 1: $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Clients:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Direct Cost of Sales:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Personnel Plan:

Dr. Meeks:

0%: $4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

$4,000

Receptionist/Clerical:

0%: $2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

Bookkeeper:

0%: $0

$0

$0

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

$1,500

Other:

0%: $0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total People:

3

3

3

3

3

3

3

3

3

3

3

3

Total Payroll:

$6,000

$6,000

$6,000

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

General Assumptions:

Plan Month:

1

2

3

4

5

6

7

8

9

10

11

12

Current Interest Rate:

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Long-term Interest Rate:

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

10.00%

Tax Rate:

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

30.00%

Other:

0

0

0

0

0

0

0

0

0

0

0

0

Pro Forma Profit and Loss:

Sales:

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$12,000

$13,000

$14,000

$14,000

$14,000

$14,000

Direct Cost of Sales:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Production Expenses:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Cost of Sales:

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Gross Margin:

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$12,000

$13,000

$14,000

$14,000

$14,000

$14,000

Gross Margin %:

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

100.00%

Expenses:

Payroll:

$6,000

$6,000

$6,000

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

$7,500

Sales and Marketing and Other Expenses:

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

$400

Pro Forma Cash Flow

Pro Forma 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
Cash from Operations
Cash Sales $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $12,000 $13,000 $14,000 $14,000 $14,000 $14,000
Subtotal Cash from Operations $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $12,000 $13,000 $14,000 $14,000 $14,000 $14,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $12,000 $13,000 $14,000 $14,000 $14,000 $14,000
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $6,000 $6,000 $6,000 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500
Bill Payments $79 $2,375 $2,675 $2,965 $2,983 $3,283 $3,573 $3,583 $3,883 $4,173 $4,173 $4,173
Subtotal Spent on Operations $6,079 $8,375 $8,675 $10,465 $10,483 $10,783 $11,073 $11,083 $11,383 $11,673 $11,673 $11,673
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $6,079 $8,375 $8,675 $10,465 $10,483 $10,783 $11,073 $11,083 $11,383 $11,673 $11,673 $11,673
Net Cash Flow $921 ($375) $325 ($465) $518 $1,218 $928 $1,918 $2,618 $2,328 $2,328 $2,328
Cash Balance $25,821 $25,446 $25,771 $25,306 $25,823 $27,041 $27,968 $29,886 $32,503 $34,831 $37,158 $39,486
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Pro Forma Balance Sheet

Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $24,900 $25,821 $25,446 $25,771 $25,306 $25,823 $27,041 $27,968 $29,886 $32,503 $34,831 $37,158 $39,486
Other Current Assets $0 $0 $0 $0 $0 $0 $0

Business Plan Outline

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