Free Radiology 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
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 $3.2 million for the development of a diagnostic and oncology based radiology center while showcasing the expected financials and operations over the next three years. Radiology Center, Inc. (“the Company”) is a New York based corporation that will provide both diagnostic radiology and cancer treatments to patients in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary revenue center for the Radiology Center will be MRI, CAT scan, ultrasound, and other diagnostics radiological services rendered to patients through the Company’s state of the art facility. The business will employ two staff radiologists that will render these services to patients in conjunction with the latest technology equipment. The secondary stream of revenue will come from patients that require specialized radiological cancer treatments. The Company will employ a staff radiologist with a specialty in oncology treatments. Doctors within the target market with be given privileges in regards to usage of the Company’s facility. The third section of the business plan will further describe the services offered by the Radiology 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 radiology center. Tentatively, Mr. Doe is seeking to sell a 50% equity interest in the business in exchange for the required capital.
1.3 Mission Statement
The Radiology Center’s mission is to provide comprehensive and compassionate care to patients that require specialized radiology diagnostics or cancer 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
Radiology Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Radiology 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, Radiology 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 Radiology Center.
3.1 Diagnostic Radiology
The primary revenue stream for the business will come from MRI and CAT scans provided to patients that have been referred to the radiology 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 employ two staff radiologists that will provide diagnostic care services to the Radiology Center’s patients. Approximately 70% of the Company’s aggregate billings will come from this segment of the Radiology Center’s operations.
3.2 Oncology Radiology Services
The secondary stream of revenue for the business will come from radiation treatments rendered to cancer patients. The Company will maintain state of the art gamma knife and radiation treatment technologies so that radiation oncologists and general oncologists can effectively treat cancer patients. Each treatment is expected to render $10,000 to $15,000 of revenue for the business. For this segment of the business, the Company will grant usage privileges to area oncologists and other physicians that can use the Company’s equipment in conjunction with the treatment of their patient’s illnesses. Approximately 30% of the Company’s revenue will come from cancer treatments.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the radiology 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, like most healthcare oriented businesses, radiology 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 Untied States, there are approximately 11,000 companies that operate one or more facilities that provide radiology and radiology/oncology services to patients. Each year, these businesses aggregate generate more than $35 billion of revenue while providing jobs to more than 203,000 healthcare workers (including doctors). Payrolls in each of the last five years have exceeded $10 billion. 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 specialized diagnostic and cancer 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 diagnosis or radiological treatment is a potential patient for the Radiology 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
Radiology 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 lack radiation treatment capabilities.
• Develop ongoing relationships with radiologists and oncologists within the target market.
5.2 Marketing Strategies
The marketing campaigns required by the Radiology Center will be somewhat limited as most people will be referred to the facility by their primary care physician or oncologist for treatment. As such, a majority of the Company’s marketing campaigns will focus on developing ongoing relationships with doctors 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 radiologists at the Radiology 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 Radiology 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
• Radiology Center 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 specialized diagnostic and oncology treatments. Additionally, these treatments are often paid for by private insurance companies and publicly funded health systems. As such, the Radiology 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