Free Medical Billing Company 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
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
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 $100,000 for the development of a medical billing business while showcasing the expected financials and operations over the next three years. The Medical Billing Company, Inc. (“the Company”) is a New York based corporation that will provide outsourced billing solutions for doctors, dentists, and related allied health professionals that have their own practices within its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Medical Billing Company will provide medical billing solutions for physicians, surgeons, dentists, physical therapists, and chiropractors. In the future, Mr. Doe intends to develop ancillary services, such as outsourced medical administrative work, that will compliment the Company’s suite of billing services. The third section of the business plan will further describe the services offered by the Medical Billing Company.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 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.
1.3 Mission Statement
The Medical Billing Company’s mission is to become the recognized leader in its targeted market for effective back office billing solutions for medical professionals.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the medical billing 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 medical professionals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Medical Billing Company, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Medical Billing Company requires $100,000 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 the Medical Billing Company, 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 Medical Billing Company. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
The Company’s billing services will offer doctors (medical professionals) and group based health practitioners the ability to easily and affordably handle their billing needs. The benefits provided by the service will allow the practitioner to perform their services without the hassle of having to deal with administrative tasks. The Company’s position in the market will be as a full-service medical reimbursement business.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the medical billing 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 in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, medical billing businesses operate with great economic stability as medical professionals will continue to provide services to patients despite deleterious economic conditions and thus requiring specialized maintenance and management of their back office billing systems.
4.2 Industry Analysis
Nationwide, there are approximately 20,000 companies that offer outsourced medical billing management on behalf of medical professionals. Each year, this industry generates $7 billion of revenues and employs more than 80,000 people. The industry is expected to remain in lockstep growth with that of the general medical industry.
4.3 Customer Profile
Management anticipates that its primary client will be moderate sized group practices that operate in either a general or specialty capacity. As doctors now have to work more hours to achieve the same level of income as ten years ago, it is imperative that the physician be able to devote all of his/her time to helping patients. This statement is true for any professional in the healthcare field.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Medical Billing Company 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 Medical Billing.
5.1 Marketing Objectives
• Directly contact medical professionals to discuss their medical billing issues.
• Implement a local campaign with the Company’s targeted market via the use of advertisements in local medical publications and journals.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
The Company intends to market its services directly to doctors, surgeons, and allied health professionals. As such, Mr. Doe will use a highly targeted marketing campaign within the target market. Specifically, and as discussed in the fourth section of the business plan, the Company intends to target group practices. The Medical Billing Company will use both traditional and experimental forms of marketing to inform, educate, and sell the Company’s medical billing and management services. Traditional means of advertising will include print and media advertising in locally based medical journals and publications. Management also intends to create a very dynamic Internet website that will allow our potential clients to learn about the Company’s medical billing services. In the future, an online billing management engine may be the centerpiece of the Company’s operations. Clients will be able to track all of their medical billing needs through the Company’s online system. The Internet platform will allow doctors to easily and quickly access all information relating to their patients’ medical billing history. Additionally, the platform will have many safeguards in place to prevent theft or misappropriation of sensitive patient information.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
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
• The Medical Billing Company will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
Medical billing companies are usually insulated from decreases in the overall wellness of the economy. As stated before, healthcare is an industry that is immune from shocks to the economic environment simply because people will continue to need medical treatment regardless of economic recession. This will significantly reduce the overall risk associated with the business.
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