Free Home Oxygen Delivery Service Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
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Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $250,000 for the development of a home oxygen distributor while showcasing the expected financials and operations over the next three years. Home Oxygen Delivery, Inc. (“the Company”) is a New York based corporation that will to physicians, consumers, and hospitals in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The revenues of the Company will come from the sale of oxygen deliveries and related equipment to a number of different consumers, doctors, outpatient centers, and hospitals. In addition to the above products, the Company will have the ability to source any type of oxygen device or gas mixture that the Company does not regularly hold within its inventories. This is extremely important for people that have special needs. The third section of the business plan will further describe the services offered by Home Oxygen Delivery, Inc.
1.2 The Financing
Mr. Doe is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following: • Development of the Company’s office location. • Financing for the first six months of operation. • Capital to purchase initial inventories of oxygen supplies inventories. Mr. Doe will contribute $50,000 to the venture.
1.3 Mission Statement
Management’s mission is to become the recognized leader in its targeted market for distributing home oxygen canisters and related products.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the healthcare industry. 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
Mr. 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. Mr. Doe intends to implement marketing campaigns that will effectively target individuals, physicians, and hospital settings within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Home Oxygen Delivery, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Home Oxygen Delivery, Inc. requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of Home Oxygen Delivery, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business 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 Home Oxygen Delivery. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times earnings.
3.0 Products and Services
Below is a description of the products of the Home Oxygen Company.
3.1 Sales and Delivery of Oxygen Products
The primary revenue center for the business will come from the sale of oxygen deliveries to consumers within their homes. The business will also be able to deliver these products to assisted living facilities, nursing homes, physicians’ offices, and hospitals from time to time. The business will generate a vast majority of its revenues from private insurance, Medicare, and Medicaid reimbursements. Approximately 15% of the Company’s revenues will come from direct co-pays from patients and third party medical providers.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the medical supplies industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Medical product distributors typically operate with a great degree of economic immunity as patients/doctors/hospitals continue to require oxygen products in any economic environment.
4.2 Industry Analysis
The specialty medical supply industry (which includes distributors of oxygen and oxygen related supplies) generates more than $100 billion dollars on a yearly basis. The aggregate number of market suppliers is approximately 12,000. The industry also employs almost 200,000 people. The industry is expected to grow significantly over the next twenty years as the baby boomer population begins to reach elderly demographics. During this time, Management expects that the industry will see explosive growth. As stated earlier, the key to surviving within this industry is to develop ongoing relationships with hospitals, assisted living facilities, doctors, and outpatient clinics for referrals.
4.3 Customer Profile
Management has developed a broad demographic scope for its individual customers. These demographics include: • Has an annual income of $30,000 • Has the need to have oxygen supplies delivered to them • Has a doctor prescription for regular oxygen deliveries. • May need to use Medicare/Medicaid to pay for their purchases. Among hospitals, physician’s offices, outpatient centers, and assisted living facilities, Management has developed the following demographics that it will use in conjunction with the marketing campaigns discussed in the next section of the business plan: • Annual revenues of $1,000,000+ • Operates within 50 miles of the Company’s location. • Among hospitals, annual revenues in excess of $20,000,000+
4.4 Competitive Analysis
Due to the very high gross margins generated from home oxygen delivery, competition within this market is difficult. There are approximately 115 regional distributors and delivery companies that specialize in the direct delivery of home oxygen and related goods to people within the New York metropolitan area market. However, the barrier to entry for these types of businesses is extremely high and demand continues to grow due to the fact that the Baby Boomer population is beginning to need increased medical care. As such, and despite the highly competitive landscape, Mr. Doe feels that the business is in an excellent position to launch a new home oxygen delivery service within this market.
5.0 Marketing Plan
Home Oxygen Delivery, 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 business.
5.1 Marketing Objectives
• Establish relationships with hospitals, outpatient facilities, assisted living facilities, and physician offices.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising among consumers.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Home Oxygen Delivery Company to easily target the demographics discussed in the previous section of the business plan within the target market. Of foremost importance is Mr. Doe’s ability to immediately connect with physicians and hospitals within the New York metropolitan area. For certain medical supplies, such as home oxygen products, a physician must authorize the usage of these products. As such, Mr. Doe will engage in a broad based cold calling strategy in order to make physicians aware of the Company’s ability to provide direct delivery of oxygen to patients in their homes. Mr. Doe will register Home Oxygen Delivery, Inc. with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the operations, oxygen product inventories, contact information, and preliminary pricing information (for some items). This website will be highly search engine optimized in order to drive as much free traffic as possible to the website on a daily basis. The Company will maintain a sizable amount of print and traditional advertising methods among local and regional medical publications so that hospital and practice administrators can become aware of the Home Oxygen Delivery, Inc.’s operations.
Aggregately, Management expects that the business will receive $750 per month for weekly delivery of home oxygen to patients within its targeted market. Approximately 15% of this revenue will come directly from patients as well as hospitals.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• Home Oxygen Delivery, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $250,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, Home Oxygen Delivery, Inc. should not have a substantial decline in its revenues. The high margins generated by the business (and economic immunity) will ensure that the Company remains profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis