Free Psychology Practice 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 $150,000 for the development of a
psychology practice while showcasing the expected financials and operations over
the next three years. Psychology Practice, Inc. (“the Company”) is a
based corporation that will provide general psychological in a stand alone
facility to customers in its targeted market. The Company was founded by Dr.
1.1 Products and Services
Dr. Doe will render psychology services to adults and children within the greater
targeted community. These services include treatment for a host of disorders as
well as family and marriage counseling.
The Company will also recognize revenues from ancillary services such as
life coaching and services related to general mental well being.
The third section of the business plan will further describe the services
offered by the Psychology Practice.
1.2 The Financing
Dr. Doe is seeking to raise $150,000 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 Psychology Practice location.
Financing for the first six months of operation.
Capital to purchase FF&E and computers.
Dr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
Dr. Doe’s mission is to become the recognized leader in its targeted market for general
mental health services that are allowed be rendered by a psychologist.
1.4 Mangement Team
The Company was founded by Mr. John Doe. Mr. Doe has more than 10 years of experience as
a psychologist. 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 and families within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Psychology Practice, Inc.
The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, Psychology
Practice, Inc. requires $150,000 of debt funds. Below is a breakdown of how these
funds will be used:
2.3 Investor Equity
Dr. Doe is not seeking an
investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of
Psychology Practice, Inc.
2.5 Exit Strategy
If the business is very
successful, Dr. Doe may seek to sell the practice 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 Psychology Practice, Inc.
Based on historical numbers, the business could fetch a sales premium of up to 2
to 3 times earnings.
3.0 Products and Services
The primary source of revenue
for the business will be the mental health services provided by Dr. Doe. The
Company will offer many of the services that are common within this specialty
including treatment of mental health issues, family issues, and general life
In the future, Dr. Doe will
seek to hire additional psychologists and counselors that will expand the
practice organically through increased patient flow. These associate
practitioners may eventually acquire the practice from Dr. Doe upon his
retirement or relocation.
The practice will receive a
bulk of its payments from co-pays and reimbursements from insurance companies.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the psychology practitioner 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. Unemployment
rates have declined while asset prices have risen substantially. However,
Psychology Practices operate with great economic stability as people will
continue to require mental health care despite deleterious changes in the
4.2 Industry Analysis
Within the United States
there are approximately 200,000 medical practices (including mental health
practices that are operated by psychologists) that comprise of one or more
doctors or practitioners 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 practitioners and physicians). 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
20,000 psychologists enter private practice each year.
4.3 Customer Profile
Psychology Practice’s average
client will be a middle class man or woman living in the Company’s target
market. Common traits among clients will include:
Annual household income
Lives or works no more than 15
miles from the Company’s practice location.
Has medical insurance.
Has issues relating to mental
health or general mental well being.
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
Psychology Practice, 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 Company.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s
name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth.
Establish relationships with doctors within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a
number of marketing strategies that will allow the Psychology Practice, Inc. to
easily target men, women, and families within the target market. These
strategies include traditional print advertisements and ads placed on search
engines on the Internet. Below is a description of how the business intends to
market its services to the general public.
Psychology Practice, Inc. will
also use an internet based strategy. This is very important as many people
seeking local services, such as mental health services, now the Internet to
conduct their preliminary searches. Mr. Doe will register the Psychology
Practice with online portals so that potential customers can easily reach the
business. The Company will also develop its own online website.
The Company will maintain a
sizable amount of print and traditional advertising methods within local markets
to promote the general mental health and counseling services that the Company is
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.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 Company has based its
proforma financial statements on the following:
Psychology Practice, Inc. will
have an annual revenue growth rate of 16% per year.
The Owner will acquire $150,000
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, the Company will not see a major decline in revenues. General mental
health services are in demand regardless of the general economic climate as they
are an essential service for health.
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