Free Outpatient Surgical Center 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
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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.
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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 $3.2 million for the development of an outpatient surgical center while showcasing the expected financials and operations over the next three years. Outpatient Surgical Center, Inc. (“the Company”) is a New York based corporation that will provide outpatient surgical treatments to patients in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
The Company will render general surgical services to adults and children within the greater targeted community. These services include consultation and outpatient surgical procedures. The secondary revenue center for the Outpatient Surgical Center will be MRI, CAT scan, ultrasound, and other diagnostic services rendered to patients through the Company’s state of the art facility. The business will employ two outsourced radiologists that will render these services to patients in conjunction with the latest technology equipment. The third section of the business plan will further describe the services offered by the Outpatient Surgical Center.
1.2 The Financing
At this time, Mr. Doe is seeking to raise $3.2 million from an investor or group of investors for the development of the surgical center. Tentatively, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the required capital. The funds will be used for the following: • Development of the Outpatient Center location • Acquisition of diagnostic and surgical based medical equipment. • Working capital • Professional fees, licensure, and the Company’s initial marketing budget. The second section of the business plan will further document the usage of investor funds.
1.3 Mission Statement
The Outpatient Surgical Center’s mission is to provide comprehensive and compassionate care to patients that require specialized and general outpatient center surgical treatments.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the healthcare management 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 doctors (who will refer patients) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Outpatient Surgical Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Outpatient Surgical Center requires $3.2 million of equity funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
At this time, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the requisite capital sought in this business plan. The investor will receive a seat on the board of directors and will receive a recurring stream of dividends starting in the first year of operations. Further details regarding the operations and profit payouts from the business can be found in the Company’s private placement memorandum.
2.4 Management Equity
Once the requisite capital is raised, Mr. Doe will retain a 50% ownership interest in the business.
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. As healthcare businesses are immune from deleterious economic conditions, Outpatient Surgical Center, Inc. could easily receive a sales premium of 7 to 9 times the previous year’s earnings.
3.0 Products and Services
Below is a description of the services offered by the Outpatient Surgical Center.
3.1 Surgical Services
The primary source of revenue for the Outpatient Surgical Center will come from general surgical services performed onsite. As mentioned in the executive summary, this is an outpatient based surgical center, and no patient will spend more than 6 to 10 hours at the facility. The facility will feature three state of the art operating rooms and a recovery room. Procedures performed at the facility will include: • General surgical procedures. • Cosmetic procedures. • Emergency surgical services (seldom). The Company will receive a bulk of its payments from co-pays and reimbursements from insurance companies.
3.2 Diagnostic Services
The secondary revenue stream for the business will come from MRI and CAT scans provided to patients that have been referred to the center by their primary care or specialized physician. For each MRI or CAT scan, Management anticipates that the business will generate $2,500 to $3,000 of revenue. It is expected that 85% of the patients that use the Company’s services will be enrolled in private insurance, Medicare, Medicaid, or other medical expense reimbursement program. At the onset of operations, the Company will outsource two radiologists that will provide diagnostic care services to the Company’s patients.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the medical services 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-2010, at which point the economy will begin a prolonged recovery period. However, like most healthcare oriented businesses, surgical centers tend to operate with a great deal of economic stability as people will continue to require specialized diagnostic care, and people with cancer will certainly continue to require radiation treatment to treat their illnesses. Additionally, a majority of the costs associated with providing this care is paid for by private and publicly funded insurance and healthcare systems, which ensures that the business will receive payment on its services rendered invoices.
4.2 Industry Analysis
Within the United States there are approximately 200,000 medical/surgical practices (excluding mental health practices) that comprise of one or more doctors that act in a private practice capacity. Each year, these practices generate more than $190 billion dollars of revenue and employ more than 1.8 million people (including the doctors). The growth of this industry has remained in lockstep with the growth of the general population. Approximately 5% of these doctors retire each year. Approximately 16,000 doctors enter private practice each year. This is a mature industry, but the future expected growth rate of the industry is expected to exceed that of the general economy over the next ten to twenty years as more people from the “baby-boomer” generation require surgical treatments. As such, Management sees a very lucrative opportunity to develop a business that can provide these services to the general public over a significant period of time.
4.3 Customer Profile
As any person that requires a specialized or general surgical treatment is a potential patient for the Outpatient Surgical Center, it is difficult to determine the exact demographics of people that will use the facility. However, Management anticipates that 85% to 90% of patients will have some form of health insurance or medical cost reimbursement program in place.
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
Outpatient Surgical Center 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 Company.
5.1 Marketing Objectives
• Maintain a modest marketing presence among the general public.
• Develop relationships with hospitals that have an overflow of surgical needs.
• Develop ongoing relationships with doctors and surgeons within the target market.
5.2 Marketing Strategies
The marketing campaigns required by the Outpatient Surgical Center will be somewhat limited as most people will be referred to the facility by their surgeon (or a staff surgeon) for treatment. As such, a majority of the Company’s marketing campaigns will focus on developing ongoing relationships with doctors and surgeons in the target market. To that end, the Company will directly contact physicians while concurrently providing them with extensive sales literature that showcases the state of the art equipment and trained surgeons at the Outpatient Surgical Center. These sales literature packets will also contain information regarding the Company’s location, hours of operation, and accepted insurances. Additional print advertisements will be placed in regional and local medical journals. The business will maintain a moderate level of print advertising within the local market to inform the general public of the Outpatient Surgical Center’s operations. Finally, the Company will develop a website that showcases the facility with images, its services, its hours of operation, and relevant contact 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
• Outpatient Surgical Center, Inc. will have an annual revenue growth rate of 8% per year.
• Mr. Doe will solicit $3.2 million of capital to launch the operations of the business.
• The Company will sell a 50% equity ownership interest in exchange for the requisite capital sought.
7.2 Sensitivity Analysis
Healthcare businesses are generally immune from negative changes in the economy due to the simple fact that people will continue to get sick and require surgical treatments. Additionally, these treatments are often paid for by private insurance companies and publicly funded health systems. As such, the Outpatient Surgical Center should have no issues generating top line income or receiving payments from its patient base.
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