Business Plan for Therapy and Massage

Document Sample
Business Plan for Therapy and Massage Powered By Docstoc
					Business Plan for Therapy
and Massage
This Business Plan for a Therapy and Massage business allows entrepreneurs or
business owners to create a comprehensive and professional business plan. This
template form allows a business to outline the company's objectives and detail both
current company information as well as any past performance. Companies should
include a complete market analysis in their plan to help showcase why their business
strategy will be effective in the market. Future company plans, including production
targets, management strategy, and financial forecasting, should be used to demonstrate
and confirm that the company's short-term and long-term objective can and will be met.
This model plan can be customized to best fit the unique needs of any entrepreneur or
owner that is seeking to create a strong business plan.
                                  [INSERT IMAGE/LOGO]




                                COMPANY NAME

                                       ADDRESS

                                  CITY, STATE ZIP CODE

                                          Tel.

                                          Fax:

                                         Email:




                                BUSINESS PLAN




© Copyright 2012 Docstoc Inc.                            1
                                      Confidentiality Agreement

The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.

It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage COMPANY
NAME.

Upon request, this document is to be immediately returned to COMPANY NAME.




___________________
Signature

___________________
Name (typed or printed)

___________________
Date

                   This is a business plan. It does not imply an offering of securities.




© Copyright 2012 Docstoc Inc.                                                          2
                                                               Table of Contents



1.0 Executive Summary .....................................................................................................................1
  1.1 Objectives ....................................................................................................................................1
  1.2 Mission...........................................................................................................................................1
  1.3 Keys to Success .........................................................................................................................2
2.0 Company Summary......................................................................................................................2
  2.1 Company Ownership................................................................................................................2
  2.2 Start-up Summary....................................................................................................................2
    Table: Start-up ..............................................................................................................................3
3.0 Products ............................................................................................................................................4
4.0 Market Analysis Summary.........................................................................................................4
  4.1 Market Segmentation ..............................................................................................................5
    Table: Market Analysis................................................................................................................5
  4.2 Target Market Segment Strategy .......................................................................................5
  4.3 Industry Analysis.......................................................................................................................6
    4.3.1 Competition and Buying Patterns ...............................................................................6
5.0 Strategy and Implementation Summary .............................................................................6
  5.1 Competitive Edge ......................................................................................................................6
  5.2 Marketing Strategy...................................................................................................................7
  5.3 Sales Strategy ............................................................................................................................7
    5.3.1 Sales Forecast ....................................................................................................................7
      Table: Sales Forecast ..............................................................................................................7
  5.4 Milestones ....................................................................................................................................8
    Table: Milestones ..........................................................................................................................9
6.0 Management Summary ..............................................................................................................9
  6.1 Personnel Plan ............................................................................................................................9
    Table: Personnel............................................................................................................................9
7.0 Financial Plan ................................................................................................................................10
  7.1 Start-up Funding .....................................................................................................................10
    Table: Start-up Funding ...........................................................................................................10
  7.2 Important Assumptions ........................................................................................................11
  7.3 Break-even Analysis ..............................................................................................................11
    Table: Break-even Analysis ....................................................................................................11
  7.4 Projected Profit and Loss .....................................................................................................12
    Table: Profit and Loss................................................................................................................12
  7.5 Projected Cash Flow...............................................................................................................15
    Table: Cash Flow .........................................................................................................................15
  7.6 Projected Balance Sheet ......................................................................................................16
    Table: Balance Sheet.................................................................................................................17
  7.7 Business Ratios ........................................................................................................................17
    Table: Ratios .................................................................................................................................18




                                                                                                                                                Page 1
                                             COMPANY NAME




1.0 Executive Summary

     COMPANY NAME is a start-up managed by OWNER’S NAME. OWNER’S NAME has extensive
     experience in the industry, and has maintained excellent reputations in this same industry. In
     addition, OWNER’S NAME is capable of handling the sales/management and
     finance/administration areas, respectively.

     OWNER’S NAME currently runs and manages a small practice located in Fremont, Ohio.

     The purpose of this plan is to raise grant funding in the amount of $400,000 to acquire real
     estate, attain equipment and supplies and to advertise the new facility to prospective clientele
     that are in need of physical therapy and wellness services Fremont, Ohio and the surrounding
     areas.




                               Highlights
      $300,000

      $270,000

      $240,000

      $210,000
                                                                          Sales
      $180,000

      $150,000                                                            Gross Margin

      $120,000                                                            Net Profit

       $90,000

       $60,000

       $30,000

           $0
                     2011             2012             2013



1.1 Objectives

1.    By January 1, 2012, expand the building and include a solar heated therapy pool and a new
   massage unit.
2.    Grow sales by 12/31/2012 to $250,000 through expanded services, a sophisticated website,
   and aggressive marketing to further attract medical referrals.
3.    Grow owner's draw plus profitability to a combined total of over $90,000 by 12/31/2013.

1.2 Mission

     The mission of the COMPANY NAME is to provide everyone residing within a 200-mile
     radius with a thoroughly pleasing, consultative, healing, and therapeutic experience with every
     visit by offering the best customer service, the most attractive facility, and the best
     service variety of any privately owned area center while providing profitable, yet fair and
     competitive pricing for the company's clients.

                                                                                                Page 1
                                           COMPANY NAME




1.3 Keys to Success

1.     Expanding our building to include a therapy pool and a new massage unit.
2.     Continue the company's heritage by exceeding customer service expectations every time
   with honesty, availability, cooperation, realistic assessment, and a welcoming personality.
3.     Continue to focus the company's marketing efforts on attracting medical referrals and
   increasing business awareness.
4.     To provide service offerings to include water therapy, a dedicated child counseling unit,
   massage therapy courses, and lectures on conquering both physical and emotional life
   challenges

2.0 Company Summary

     COMPANY NAME is a start-up managed by OWNER’S NAME. OWNER’S NAME has extensive
     experience in the industry, and has maintained excellent reputations in this same industry. In
     addition, OWNER’S NAME is capable of handling the sales/management and
     finance/administration areas, respectively.

2.1 Company Ownership

     The company, COMPANY NAME, is a sole proprietorship by the owner, OWNER’S NAME. Some
     thought has been given to incorporating COMPANY NAME, but a decision has not yet been
     reached.

2.2 Start-up Summary

     The key elements in the start-up plan for the company are:


        Establish an identity in the community and positioning strategy.

        Establish a location and place of doing business.

        Obtain a Medicare provider number.

        Define key business processes for ordering, billing, reimbursement, record keeping,
         customer satisfaction tracking, etc.




                                                                                               Page 2
                                             COMPANY NAME




Table: Start-up

   Start-up

   Requirements

   Start-up Expenses
   Legal                        $500
   Stationery and Office        $250
   Supplies
   Liability Insurance         $5,000
   Office Equipment Leases       $125
   Telecommunications            $320
   Accounting                  $1,000
   Marketing Materials           $500
   Total Start-up Expenses     $7,695

   Start-up Assets
   Cash Required               $9,500
   Other Current Assets       $70,000
   Long-term Assets          $250,000
   Total Assets              $329,500

   Total Requirements        $337,195




                                            Start-up


    $320,000

    $280,000

    $240,000

    $200,000

    $160,000

    $120,000

     $80,000

     $40,000

         $0
                  Expenses         Assets          Investment   Loans




                                                                        Page 3
                                          COMPANY NAME




3.0 Products

   COMPANY NAME sells therapy and massage services to all clientele that need either stress
   relief, pain relief or injury rehabilitation.

   At no additional charge to the client, the company will provide value-added services like initial
   consultations, management of all paperwork for order placement and billing and
   reimbursements.

4.0 Market Analysis Summary

   Massage is the manipulation of superficial layers of muscle and connective tissue to enhance
   the function and promote relaxation and well-being. Massage involves acting on and
   manipulating the body with pressure – structured, unstructured, stationary, or moving –
   tension, motion, or vibration, done manually or with mechanical aids. Target tissues may
   include muscles, tendons, ligaments, skin, joints, or other connective tissue, as well as
   lymphatic vessels, or organs of the gastrointestinal system. Massage can be applied with the
   hands, fingers, elbows, knees, forearm, and feet. There are over eighty different recognized
   massage modalities. The most cited reasons for introducing massage as therapy have been
   client demand and perceived clinical effectiveness.

   Fremont is a city in and the county seat of Sandusky County, Ohio, United States. The
   population was 17,375 at the 2000 census. Former President of the United States Rutherford B.
   Hayes lived in the city for a period of time and dedicated a library to the town.[citation needed]
   Fremont is also the hometown of UFC Legend Mark Coleman, NFL players Charles Woodson,
   Rob Lytle, Bob Brudzinski and TV fitness personality Tony Little. The National Arbor Day
   Foundation designated Fremont as a Tree City USA.

   As of the census of 2000, there were 17,375 people, 6,856 households, and 4,374 families
   residing in the city. The population density was 2,313.1 people per square mile (893.3/km²).
   There were 7,368 housing units at an average density of 980.9/sq mi (378.8/km²). The racial
   makeup of the city was 82.24% White, 8.29% African American, 0.18% Native American,
   0.24% Asian, 5.85% from other races, and 3.19% from two or more races. Hispanic or Latino
   of any race were 12.32% of the population.

   There were 6,856 households out of which 33.6% had children under the age of 18 living with
   them, 42.5% were married couples living together, 16.4% had a female householder with no
   husband present, and 36.2% were non-families. 30.4% of all households were made up of
   individuals and 12.8% had someone living alone who was 65 years of age or older. The average
   household size was 2.46 and the average family size was 3.06.

   In the city the population was spread out with 27.6% under the age of 18, 10.0% from 18 to
   24, 28.7% from 25 to 44, 19.3% from 45 to 64, and 14.4% who were 65 years of age or older.
   The median age was 34 years. For every 100 females there were 89.9 males. For every 100
   females age 18 and over, there were 85.0 males.

   The median income for a household in the city was $34,051, and the median income for a
   family was $39,439. Males had a median income of $32,453 versus $22,048 for females. The
   per capita income for the city was $16,014. About 9.8% of families and 12.9% of the
   population were below the poverty line, including 16.8% of those under age 18 and 9.9% of
   those age 65 or over.


                                                                                               Page 4
                                              COMPANY NAME




4.1 Market Segmentation

   Our three highest priority target markets will be:

   1. Stress Relief Therapy Clientele.
   2. Sports/Injury Therapy Clientele.

Table: Market Analysis

   Market Analysis
                                     2011      2012     2013     2014       2015
   Potential Customers      Growth                                                       CAGR
   Stress Therapy Relief       5%    61,792    64,882   68,126    71,532    75,109       5.00%
   Sports/Injury Therapy       5%     3,090     3,245    3,407     3,577     3,756       5.00%
   Relief
   Total                     5.00%   64,882    68,127   71,533    75,109    78,865       5.00%




                     Market Analysis (Pie)




                                                                 Stress Therapy Relief

                                                                 Sports/Injury Therapy Relief




4.2 Target Market Segment Strategy

   Geographically, the company will focus on clientele located in Sandusky County, Ohio that fit
   within the company's two top priority segments. Maintaining and further enhancing its
   reputation in the community is crucial to gaining additional market share of this target market.




                                                                                                 Page 5
                                          COMPANY NAME




4.3 Industry Analysis

   As is true of many service oriented businesses, the chiropractic and healing massage
   business is lucrative with a high gross margin. As a result, there are many area competitors
   that provide similar services as those of the COMPANY NAME. The chiropractic and therapy
   industry is made up primarily of individual counselors and physical therapists. In addition,
   there are some large, commercially-run competitors that include health clubs.

   COMPANY NAME currently competes directly with the individual chiropractic and physical
   therapists with the competitive advantage of offering both services. With the completion of the
   proposed expansion, the Center will have another unquestionable competitive advantage
   over its smaller competitors. In fact, with the planned service additions, the business will be in
   a position to compete with the larger commercial competitors.


4.3.1 Competition and Buying Patterns

   The market is currently served inconsistently and, in some areas poorly, by a variety of players
   including rehab facilities and therapists. Their field sales team mainly functions as order takers,
   going out and visiting facilities, targeting only residents they believe are covered under
   Medicare part B or an equivalent private pay coverage.

   The company's growth will not come entirely from overall market growth, but also from taking
   market share away from our competitors. COMPANY NAME will grow in part due to the
   underlying trends specific to growth in therapy prevalence.

5.0 Strategy and Implementation Summary

   Emphasize service
   The company will differentiate itself with SERVICE! COMPANY NAME will establish the business
   offering as a clear and viable alternative for the company's target market.

   Build a relationship-oriented business
   Build long-term relationships with customers, not single-visit deals. Become their chiropractic
   and therapy destination of choice. Make them understand the value of the relationship.

   Focus on target markets
   COMPANY NAME needs to focus the company's offerings on specific population groups as the
   key market segment the company should own.

5.1 Competitive Edge

   COMPANY NAME's competitive edge will be the facility's efforts in obtaining all appropriate
   licensing and certifications. Additionally, thorough pre-hire background screenings are
   performed on all individuals before hired for employment.




                                                                                                Page 6
                                             COMPANY NAME




5.2 Marketing Strategy

    The following sections detail the marketing strategy for COMPANY NAME.

5.3 Sales Strategy

    Sales Strategy:

    COMPANY NAME will make a significant profit through the excellent care of clientele. Even
    though COMPANY NAME will charges less, the company will see profit within the first year due
    to beneficial word-of-mouth advertising. The company expects to double its' clientele every six
    months, for the first 18 months.

5.3.1 Sales Forecast

       The requested capital investment becomes available by January 1, 2011.
       The building will be acquired in April of 2011 and with all facilities open and operating soon
    after.
       In 2011, chiropractic revenues are 25% of all revenues and therapy revenues are 75% of all
    revenues
       In 2011, chiropractic revenues will increase by 5% over 2010 due to a slowly
    recovering economy

Table: Sales Forecast

    Sales Forecast
                                 2011       2012       2013
    Sales
    Chiropractic Patients     $168,106   $173,149   $178,345
    Therapy Patients          $111,421   $114,764   $118,207
    Total Sales               $279,527   $287,913   $296,552

    Direct Cost of Sales          2011       2012       2013
    Inventory Used             $19,895    $20,492    $21,107
    Merchant Services          $29,173    $30,048    $30,950
    Subtotal Direct Cost of    $49,068    $50,540    $52,057
    Sales




                                                                                               Page 7
                                                            COMPANY NAME




                                 Sales Monthly

    $30,000

    $27,000

    $24,000

    $21,000

    $18,000                                                                              Chiropractic Patients
    $15,000
                                                                                         Therapy Patients
    $12,000

     $9,000

     $6,000

     $3,000

        $0
                                                    Jul
               Jan



                           Mar

                                 Apr



                                             Jun
                     Feb




                                                                       Oct
                                       May




                                                          Aug

                                                                Sep



                                                                             Nov

                                 Sales by Year                                     Dec



    $300,000

    $270,000

    $240,000

    $210,000

    $180,000                                                                             Chiropractic Patients

    $150,000                                                                             Therapy Patients
    $120,000

     $90,000

     $60,000

     $30,000

         $0
                       2011                  2012                     2013



5.4 Milestones

   COMPANY NAME detailed milestones are shown in the following table and chart. The related
   budgets are included with the expenses shown in the projected Profit and Loss statement,
   which is in the financial analysis that comes in Chapter 7 of this plan.




                                                                                                                 Page 8
                                                COMPANY NAME




Table: Milestones

   Milestones

   Milestone                                            Start    End Date     Budget    Manager
                                                        Date

   Define Company Name, Logo, Tag line,             9/15/2010    11/1/2010     $5,000   INSERT
   Brand Platform                                                                         NAME
   Determine cash needs and draw up                 9/15/2010     1/1/2011        $0    INSERT
   partnership agreement                                                                  NAME
   Obtain business license                          9/15/2010   12/31/2010     $1,000   INSERT
                                                                                          NAME
   Sign agreement with a Medicare part B            9/15/2010   12/15/2010        $0    INSERT
   biller service                                                                         NAME
   Set up a checkbook and establish                 9/15/2010    1/30/2011     $2,500   INSERT
   accountant relationship                                                                NAME
   Purchase facility, get                           9/15/2010    3/15/2011   $300,000   INSERT
   Furn/Comp/print/fax/phone/files/DSL line                                               NAME
   Get inventory and samples - create starter       9/15/2010    3/18/2010    $70,000   INSERT
   kits for reps                                                                          NAME
   Send out first marketing pieces (mailer);         1/1/2011    3/15/2011     $5,000   INSERT
   website goes live                                                                      NAME

   Totals                                                                    $383,500




6.0 Management Summary

   COMPANY NAME is being founded by OWNER’S NAME, with many years of experience in
   chiropractic therapy.

6.1 Personnel Plan

   As the Personnel Plan shows, the company expects to make gradual investments in care
   personnel over the next three years, always keeping in mind the number of clientele in need of
   care at the center.




Table: Personnel

   Personnel Plan
                                2011      2012          2013
   Physical Therapists       $36,000   $37,080       $38,192
   Office                    $24,000   $24,720       $25,462
   Manager/Bookkeeper
   Total People                    4            4          4

   Total Payroll             $60,000   $61,800       $63,654



                                                                                                  Page 9
                                                     COMPANY NAME




7.0 Financial Plan

   The company's financial plan is based on conservative estimates and assumptions. The
   company will need to plan on initial investment to make the financials work.

7.1 Start-up Funding

   The company's financial requirements will be met as follows:

      Positive cash flow in the first year of operation.
      Attaining grant funding.

Table: Start-up Funding

   Start-up Funding
   Start-up Expenses to Fund                $7,695
   Start-up Assets to Fund                $329,500
   Total Funding Required                 $337,195

   Assets
   Non-cash Assets from Start-up          $322,500
   Cash Requirements from Start-up          $9,500
   Additional Cash Raised                       $0
   Cash Balance on Starting Date            $9,500
   Total Assets                           $332,000


   Liabilities and Capital

   Liabilities
   Current Borrowing                           $0
   Long-term Liabilities                       $0
   Accounts Payable (Outstanding               $0
   Bills)
   Other Current Liabilities (interest-        $0
   free)
   Total Liabilities                           $0

   Capital

   Planned Investment
   Owner                                   $10,580
   Investor                                     $0
   Additional Investment                  $326,615
   Requirement
   Total Planned Investment               $337,195

   Loss at Start-up (Start-up             ($7,695)
   Expenses)
   Total Capital                          $329,500


   Total Capital and Liabilities          $329,500

   Total Funding                          $337,195



                                                                                          Page 10
                                                        COMPANY NAME




7.2 Important Assumptions

   Table 7.1 summarizes key financial assumptions, including 30-day average collection days,
   sales entirely on cash and credit card basis and expenses mainly on net 30 basis.

7.3 Break-even Analysis

   The following table and chart show the company's break-even point in the first year. With a
   low monthly fixed cost and variable costs, the company needs to sell per month the
   amount calculated below to break even. Market research and previous experience assures the
   company that it will easily surpass the break-even point even in our first month of sales.

Table: Break-even Analysis

   Break-even Analysis

   Monthly Revenue Break-         $7,120
   even

   Assumptions:
   Average Percent                     18%
   Variable Cost
   Estimated Monthly Fixed        $5,870
   Cost




                                          Break-even Analysis
     $4,000

     $3,000

     $2,000

     $1,000

         $0

    ($1,000)

    ($2,000)

    ($3,000)

    ($4,000)

    ($5,000)


               $0            $2,000            $4,000            $6,000            $8,000            $10,000
                    $1,000            $3,000            $5,000            $7,000            $9,000          $11,000




                                                                                                                      Page 11
                                            COMPANY NAME




7.4 Projected Profit and Loss

   As the Profit and Loss table shows, the company expects to continue its steady growth in
   profitability over the next three years of operations.

Table: Profit and Loss

   Pro Forma Profit and Loss
                                    2011       2012       2013
   Sales                        $279,527   $287,913   $296,552
   Direct Cost of Sales          $49,068    $50,540    $52,057
   Shipping/Handling                  $0         $0         $0
   Medicare Part B Billing        $9,783    $11,517    $11,862
   Uncollectible Accounts        $55,877    $57,554    $59,281
   Reserve
   Sales Commission              $44,724    $46,066    $47,448
   Total Cost of Sales          $159,453   $165,676   $170,648

   Gross Margin                 $120,074   $122,237   $125,904
   Gross Margin %                42.96%     42.46%     42.46%


   Expenses
   Payroll                       $60,000    $61,800    $63,654
   Marketing/Promotion            $3,000     $3,090     $3,183
   Depreciation                       $0         $0         $0
   Telecommunications             $2,400     $2,472     $2,546
   General Liability                $360       $432       $518
   Insurance
   Stationery and Office          $2,400     $2,472     $2,546
   Supplies
   Travel                         $1,800     $1,854     $1,919
   Office Equipment                 $480       $494       $509

   Total Operating Expenses      $70,440    $72,614    $74,875

   Profit Before Interest and    $49,634    $49,623    $51,029
   Taxes
   EBITDA                        $49,634    $49,623    $51,029
    Interest Expense               ($83)     ($248)     ($415)
    Taxes Incurred               $14,915    $14,961    $15,433

   Net Profit                    $34,801    $34,909    $36,011
   Net Profit/Sales              12.45%     12.12%     12.14%




                                                                                          Page 12
                                        COMPANY NAME




                                   Profit Monthly
$5,000

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

 $500

   $0
          Jan   Feb   Mar   Apr   May   Jun    Jul   Aug   Sep    Oct   Nov   Dec




                                    Profit Yearly


$36,000

$32,000

$28,000

$24,000

$20,000

$16,000

$12,000

 $8,000

 $4,000

    $0
                  2011                  2012                     2013




                                                                                    Page 13
                                           COMPANY NAME




                               Gross Margin Monthly

$12,000


$10,000


 $8,000


 $6,000


 $4,000


 $2,000


    $0
           Jan   Feb   Mar   Apr     May   Jun    Jul   Aug   Sep    Oct   Nov   Dec




                                   Gross Margin Yearly



$120,000


$100,000


 $80,000


 $60,000


 $40,000


 $20,000


     $0
                   2011                    2012                     2013




                                                                                       Page 14
                                           COMPANY NAME




7.5 Projected Cash Flow

   The cash flow projection shows that provisions for ongoing expenses are adequate to meet the
   needs of the company as the business generates sufficient cash flow to support operations.

Table: Cash Flow

   Pro Forma Cash Flow
                                         2011       2012       2013
   Cash Received

   Cash from Operations
   Cash Sales                         $279,527   $287,913   $296,552
   Subtotal Cash from Operations      $279,527   $287,913   $296,552

   Additional Cash Received
   Sales Tax, VAT, HST/GST                 $0         $0         $0
   Received
   New Current Borrowing                   $0         $0         $0
   New Other Liabilities (interest-        $0         $0         $0
   free)
   New Long-term Liabilities                $0         $0         $0
   Sales of Other Current Assets            $0         $0         $0
   Sales of Long-term Assets                $0         $0         $0
   New Investment Received                  $0         $0         $0
   Subtotal Cash Received             $279,527   $287,913   $296,552

   Expenditures                          2011       2012       2013

   Expenditures from Operations
   Cash Spending                       $60,000    $61,800    $63,654
   Bill Payments                      $165,293   $194,921   $196,420
   Subtotal Spent on Operations       $225,293   $256,721   $260,074

   Additional Cash Spent
   Sales Tax, VAT, HST/GST Paid            $0         $0         $0
   Out
   Principal Repayment of Current       $1,650     $1,650     $1,700
   Borrowing
   Other Liabilities Principal             $0         $0         $0
   Repayment
   Long-term Liabilities Principal         $0         $0         $0
   Repayment
   Purchase Other Current Assets            $0         $0         $0
   Purchase Long-term Assets                $0         $0         $0
   Dividends                                $0         $0         $0
   Subtotal Cash Spent                $226,943   $258,371   $261,774

   Net Cash Flow                       $52,584    $29,542    $34,778
   Cash Balance                        $62,084    $91,626   $126,404




                                                                                         Page 15
                                                        COMPANY NAME




                                       Cash

    $60,000


    $50,000


    $40,000
                                                                                       Net Cash Flow
    $30,000
                                                                                       Cash Balance

    $20,000


    $10,000


        $0
              Jan         Mar         May         Jul          Sep         Nov
                    Feb         Apr         Jun          Aug         Oct         Dec


7.6 Projected Balance Sheet

   The balance sheet shows healthy growth of net worth, and strong financial position. The
   monthly estimates are included in the appendix.




                                                                                                       Page 16
                                              COMPANY NAME




Table: Balance Sheet

   Pro Forma Balance
   Sheet
                                 2011       2012       2013
   Assets

   Current Assets
   Cash                       $62,084     $91,626   $126,404
   Other Current Assets       $70,000     $70,000    $70,000
   Total Current Assets      $132,084    $161,626   $196,404

   Long-term Assets
   Long-term Assets          $250,000    $250,000   $250,000
   Accumulated                     $0          $0         $0
   Depreciation
   Total Long-term           $250,000    $250,000   $250,000
   Assets
   Total Assets              $382,084    $411,626   $446,404

   Liabilities and Capital       2011       2012       2013

   Current Liabilities
   Accounts Payable          $19,433     $15,715    $16,183
   Current Borrowing         ($1,650)    ($3,300)   ($5,000)
   Other Current                   $0          $0         $0
   Liabilities
   Subtotal Current           $17,783     $12,415    $11,183
   Liabilities

   Long-term Liabilities           $0          $0         $0
   Total Liabilities          $17,783     $12,415    $11,183

   Paid-in Capital           $337,195    $337,195   $337,195
   Retained Earnings          ($7,695)    $27,106    $62,015
   Earnings                   $34,801     $34,909    $36,011
   Total Capital             $364,301    $399,210   $435,221
   Total Liabilities and     $382,084    $411,626   $446,404
   Capital

   Net Worth                 $364,301    $399,210   $435,221


7.7 Business Ratios

   Business ratios for the years of this plan are shown below. Industry profile ratios based on the
   Standard Industrial Classification (SIC) code 8041, Chiropractic Practices and Clinics, are shown
   for comparison.




                                                                                            Page 17
                                           COMPANY NAME




Table: Ratios

   Ratio Analysis
                                          2011       2012       2013    Industry
                                                                          Profile
   Sales Growth                          0.00%      3.00%      3.00%      7.02%

   Percent of Total Assets
   Other Current Assets                 18.32%     17.01%     15.68%     53.79%
   Total Current Assets                 34.57%     39.27%     44.00%     70.79%
   Long-term Assets                     65.43%     60.73%     56.00%     29.21%
   Total Assets                        100.00%    100.00%    100.00%    100.00%

   Current Liabilities                   4.65%      3.02%      2.51%    33.71%
   Long-term Liabilities                 0.00%      0.00%      0.00%    23.16%
   Total Liabilities                     4.65%      3.02%      2.51%    56.87%
   Net Worth                            95.35%     96.98%     97.49%    43.13%

   Percent of Sales
   Sales                               100.00%    100.00%    100.00%    100.00%
   Gross Margin                         42.96%     42.46%     42.46%    100.00%
   Selling, General & Administrative    30.51%     30.33%     30.31%     63.19%
   Expenses
   Advertising Expenses                  0.00%      0.00%      0.00%     2.07%
   Profit Before Interest and Taxes     17.76%     17.24%     17.21%     4.43%

   Main Ratios
   Current                                 7.43      13.02      17.56      1.26
   Quick                                   7.43      13.02      17.56      0.84
   Total Debt to Total Assets            4.65%      3.02%      2.51%    68.56%
   Pre-tax Return on Net Worth          13.65%     12.49%     11.82%    29.12%
   Pre-tax Return on Assets             13.01%     12.12%     11.52%     9.15%

   Additional Ratios                      2011       2012       2013
   Net Profit Margin                    12.45%     12.12%     12.14%         n.a
   Return on Equity                      9.55%      8.74%      8.27%         n.a

   Activity Ratios
   Accounts Payable Turnover               9.51      12.17      12.17        n.a
   Payment Days                              27         34         30        n.a
   Total Asset Turnover                    0.73       0.70       0.66        n.a

   Debt Ratios
   Debt to Net Worth                       0.05       0.03       0.03        n.a
   Current Liab. to Liab.                  1.00       1.00       1.00        n.a

   Liquidity Ratios
   Net Working Capital                 $114,301   $149,210   $185,221        n.a
   Interest Coverage                       0.00       0.00       0.00        n.a

   Additional Ratios
   Assets to Sales                         1.37       1.43       1.51        n.a
   Current Debt/Total Assets                5%         3%         3%         n.a
   Acid Test                               7.43      13.02      17.56        n.a
   Sales/Net Worth                         0.77       0.72       0.68        n.a
   Dividend Payout                         0.00       0.00       0.00        n.a




                                                                                    Page 18
                                                                                           Appendix

Table: Sales Forecast

Sales Forecast
                                  Jan       Feb       Mar       Apr       May       Jun         Jul      Aug       Sep       Oct       Nov       Dec
Sales
Chiropractic Patients     0%   $10,562   $11,090   $11,644   $12,226   $12,837   $13,479   $14,153    $14,861   $15,604   $16,384   $17,203   $18,063
Therapy Patients          0%    $7,000    $7,350    $7,718    $8,104    $8,509    $8,934    $9,381     $9,850   $10,342   $10,859   $11,402   $11,972
Total Sales                    $17,562   $18,440   $19,362   $20,330   $21,346   $22,413   $23,534    $24,711   $25,946   $27,243   $28,605   $30,035

Direct Cost of Sales               Jan       Feb       Mar       Apr      May        Jun        Jul       Aug       Sep       Oct       Nov       Dec
Inventory Used                  $1,250    $1,312    $1,378    $1,447    $1,519    $1,595    $1,675     $1,759    $1,847    $1,939    $2,036    $2,138
Merchant Services               $1,833    $1,925    $2,021    $2,122    $2,228    $2,339    $2,456     $2,579    $2,708    $2,843    $2,985    $3,134
Subtotal Direct Cost of         $3,083    $3,237    $3,399    $3,569    $3,747    $3,934    $4,131     $4,338    $4,555    $4,782    $5,021    $5,272
Sales




                                                                                                                                                        Page 1
                                                                                     Appendix

Table: Personnel

Personnel Plan
                              Jan      Feb      Mar      Apr     May       Jun       Jul      Aug      Sep      Oct      Nov      Dec
Physical Therapists   0%   $3,000   $3,000   $3,000   $3,000   $3,000   $3,000   $3,000    $3,000   $3,000   $3,000   $3,000   $3,000
Office                0%   $2,000   $2,000   $2,000   $2,000   $2,000   $2,000   $2,000    $2,000   $2,000   $2,000   $2,000   $2,000
Manager/Bookkeeper
Total People                   3        3        3        3        3        4         4        4        4        4        4        4

Total Payroll              $5,000   $5,000   $5,000   $5,000   $5,000   $5,000   $5,000    $5,000   $5,000   $5,000   $5,000   $5,000




                                                                                                                                        Page 2
                                                                                               Appendix

Table: Profit and Loss

Pro Forma Profit and
Loss
                                       Jan       Feb        Mar        Apr        May        Jun         Jul       Aug        Sep       Oct       Nov       Dec
Sales                              $17,562   $18,440    $19,362    $20,330    $21,346    $22,413    $23,534    $24,711    $25,946   $27,243   $28,605   $30,035
Direct Cost of Sales                $3,083    $3,237     $3,399     $3,569     $3,747     $3,934     $4,131     $4,338     $4,555    $4,782    $5,021    $5,272
Shipping/Handling             5%        $0        $0         $0         $0         $0         $0         $0         $0         $0        $0        $0        $0
Medicare Part B Billing       4%      $615      $645       $678       $712       $747       $784       $824       $865       $908      $954    $1,001    $1,051
Uncollectible Accounts       20%    $3,511    $3,686     $3,870     $4,064     $4,267     $4,480     $4,704     $4,940     $5,187    $5,446    $5,718    $6,004
Reserve
Sales Commission             16%    $2,810    $2,950     $3,098     $3,253     $3,415     $3,586     $3,765     $3,954     $4,151    $4,359    $4,577    $4,806
Total Cost of Sales                $10,018   $10,519    $11,045    $11,597    $12,177    $12,785    $13,425    $14,096    $14,801   $15,540   $16,317   $17,133

Gross Margin                        $7,544    $7,921     $8,317     $8,733     $9,169     $9,628    $10,109    $10,615    $11,145   $11,703   $12,288   $12,902
Gross Margin %                     42.96%    42.96%     42.95%     42.95%     42.96%     42.96%     42.96%     42.96%     42.95%    42.96%    42.96%    42.96%


Expenses
Payroll                             $5,000    $5,000     $5,000     $5,000     $5,000     $5,000     $5,000     $5,000     $5,000    $5,000    $5,000    $5,000
Marketing/Promotion                   $250      $250       $250       $250       $250       $250       $250       $250       $250      $250      $250      $250
Depreciation                            $0        $0         $0         $0         $0         $0         $0         $0         $0        $0        $0        $0
Telecommunications                    $200      $200       $200       $200       $200       $200       $200       $200       $200      $200      $200      $200
General Liability                      $30       $30        $30        $30        $30        $30        $30        $30        $30       $30       $30       $30
Insurance
Stationery and Office                $200      $200       $200       $200       $200       $200        $200      $200       $200      $200      $200      $200
Supplies
Travel                       15%     $150      $150       $150       $150       $150       $150        $150      $150       $150      $150      $150      $150
Office Equipment             15%      $40       $40        $40        $40        $40        $40         $40       $40        $40       $40       $40       $40

Total Operating                     $5,870    $5,870     $5,870     $5,870     $5,870     $5,870     $5,870     $5,870     $5,870    $5,870    $5,870    $5,870
Expenses

Profit Before Interest and          $1,674    $2,051     $2,447     $2,863     $3,299     $3,758     $4,239     $4,745     $5,275    $5,833    $6,418    $7,032
Taxes
EBITDA                              $1,674    $2,051     $2,447     $2,863     $3,299     $3,758     $4,239     $4,745     $5,275    $5,833    $6,418    $7,032
 Interest Expense                       $0       ($1)       ($3)       ($4)       ($5)       ($6)       ($8)       ($9)     ($10)     ($11)     ($13)     ($14)
 Taxes Incurred                       $502      $616       $735       $860       $991     $1,129     $1,274     $1,426     $1,585    $1,753    $1,929    $2,114

Net Profit                          $1,172    $1,437     $1,715     $2,007     $2,313     $2,635     $2,973     $3,327     $3,699    $4,091    $4,501    $4,932
Net Profit/Sales                    6.67%     7.79%      8.86%      9.87%     10.84%     11.76%     12.63%     13.47%     14.26%    15.02%    15.74%    16.42%




                                                                                                                                                                  Page 3
                                                                                             Appendix

Table: Cash Flow

Pro Forma Cash Flow
                                              Jan       Feb       Mar       Apr       May       Jun        Jul      Aug       Sep       Oct       Nov       Dec
Cash Received

Cash from Operations
Cash Sales                                 $17,562   $18,440   $19,362   $20,330   $21,346   $22,413   $23,534   $24,711   $25,946   $27,243   $28,605   $30,035
Subtotal Cash from Operations              $17,562   $18,440   $19,362   $20,330   $21,346   $22,413   $23,534   $24,711   $25,946   $27,243   $28,605   $30,035

Additional Cash Received
Sales Tax, VAT, HST/GST            0.00%       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Received
New Current Borrowing                          $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
New Other Liabilities (interest-               $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
free)
New Long-term Liabilities                       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Sales of Other Current Assets                   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Sales of Long-term Assets                       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
New Investment Received                         $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Subtotal Cash Received                     $17,562   $18,440   $19,362   $20,330   $21,346   $22,413   $23,534   $24,711   $25,946   $27,243   $28,605   $30,035

Expenditures                                  Jan       Feb       Mar       Apr       May       Jun        Jul      Aug       Sep       Oct       Nov       Dec

Expenditures from Operations
Cash Spending                               $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000    $5,000
Bill Payments                                 $380   $11,411   $12,025   $12,670   $13,347   $14,058   $14,804   $15,589   $16,412   $17,277   $18,184   $19,137
Subtotal Spent on Operations                $5,380   $16,411   $17,025   $17,670   $18,347   $19,058   $19,804   $20,589   $21,412   $22,277   $23,184   $24,137

Additional Cash Spent
Sales Tax, VAT, HST/GST Paid                   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Out
Principal Repayment of Current                 $0      $150      $150      $150      $150      $150      $150      $150      $150      $150      $150      $150
Borrowing
Other Liabilities Principal                    $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Repayment
Long-term Liabilities Principal                $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Repayment
Purchase Other Current Assets                   $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Purchase Long-term Assets                       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Dividends                                       $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0        $0
Subtotal Cash Spent                         $5,380   $16,561   $17,175   $17,820   $18,497   $19,208   $19,954   $20,739   $21,562   $22,427   $23,334   $24,287

Net Cash Flow                              $12,182    $1,879    $2,187    $2,510    $2,849    $3,205    $3,580    $3,972    $4,384    $4,816    $5,271    $5,748
Cash Balance                               $21,682   $23,562   $25,749   $28,259   $31,108   $34,313   $37,893   $41,865   $46,249   $51,065   $56,336   $62,084

                                                                                                                                                                   Page 4
                                                                                                        Appendix


Table: Balance Sheet

Pro Forma Balance Sheet
                                                     Jan         Feb         Mar         Apr        May          Jun          Jul        Aug         Sep         Oct         Nov         Dec
Assets                      Starting Balances

Current Assets
Cash                                $9,500       $21,682     $23,562     $25,749     $28,259     $31,108     $34,313     $37,893     $41,865     $46,249     $51,065     $56,336     $62,084
Other Current Assets               $70,000       $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000     $70,000
Total Current Assets               $79,500       $91,682     $93,562     $95,749     $98,259    $101,108    $104,313    $107,893    $111,865    $116,249    $121,065    $126,336    $132,084

Long-term Assets
Long-term Assets                  $250,000      $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000
Accumulated                             $0            $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0
Depreciation
Total Long-term Assets            $250,000      $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000    $250,000
Total Assets                      $329,500      $341,682    $343,562    $345,749    $348,259    $351,108    $354,313    $357,893    $361,865    $366,249    $371,065    $376,336    $382,084

Liabilities and Capital                              Jan         Feb         Mar         Apr        May          Jun          Jul        Aug         Sep         Oct         Nov         Dec

Current Liabilities
Accounts Payable                        $0       $11,011     $11,603     $12,226     $12,879     $13,565     $14,285     $15,042    $15,838     $16,672     $17,547     $18,467     $19,433
Current Borrowing                       $0            $0      ($150)      ($300)      ($450)      ($600)      ($750)      ($900)    ($1,050)    ($1,200)    ($1,350)    ($1,500)    ($1,650)
Other Current Liabilities               $0            $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0
Subtotal Current                        $0       $11,011     $11,453     $11,926     $12,429     $12,965     $13,535     $14,142    $14,788     $15,472     $16,197     $16,967     $17,783
Liabilities

Long-term Liabilities                   $0            $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0          $0
Total Liabilities                       $0       $11,011     $11,453     $11,926     $12,429     $12,965     $13,535     $14,142     $14,788     $15,472     $16,197     $16,967     $17,783

Paid-in Capital                   $337,195      $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195    $337,195
Retained Earnings                  ($7,695)      ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)    ($7,695)
Earnings                                 $0        $1,172      $2,608      $4,323      $6,329      $8,642    $11,278     $14,250     $17,578     $21,277     $25,368     $29,869     $34,801
Total Capital                     $329,500      $330,672    $332,108    $333,823    $335,829    $338,142    $340,778    $343,750    $347,078    $350,777    $354,868    $359,369    $364,301
Total Liabilities and             $329,500      $341,682    $343,562    $345,749    $348,259    $351,108    $354,313    $357,893    $361,865    $366,249    $371,065    $376,336    $382,084
Capital

Net Worth                         $329,500      $330,672    $332,108    $333,823    $335,829    $338,142    $340,778    $343,750    $347,078    $350,777    $354,868    $359,369    $364,301




                                                                                                                                                                                                Page 5
                                                               Appendix

INFORMATION AND FORMS ARE PROVIDED "AS IS" WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND
INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS
FOR ANY PARTICULAR PURPOSE. IN NO EVENT SHALL DOCSTOC, INC., OR ITS AGENTS, OFFICERS, ATTORNEYS,
ETC., BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF
PROFITS, BUSINESS INTERRUPTION, LOSS OF INFORMATION) ARISING OUT OF THE USE OF OR INABILITY TO USE
THE MATERIALS, EVEN IF DOCSTOC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. They are for
guidance and should be modified by you or your attorney to meet your specific needs and the laws of your state or jurisdiction. Use at
your own risk. Docstoc® is NOT providing legal or any other kind of advice and is not creating or entering into an Attorney-Client
relationship. The information, reports, and forms are not a substitute for the advice of your own attorney. The law is a personal matter
and no general information or forms or like the kind Docstoc provides can always correctly fit every circumstance.

Note: Carefully read and follow the Instructions and Comments contained in this document for your customization to suit your specific
circumstances and requirements. You will want to delete the Instructions and Comments from open bracket (“[“) to close bracket (“]”)
after reading and following them. You (or your attorney) may want to make additional modifications to meet your specific needs and the
laws of your state. The Instructions and Comments are not a substitute for the advice of your own attorney.

◊ Where within this document you see this symbol: ◊ or an instruction states “Insert any number you choose◊,” or something similar, or
there is a blank for the user to complete, please note that although Docstoc believes the information or number may be any that the user
chooses, and that there is no law governing what the information or number should be, you might want to verify this, including by
consulting with your own attorney practicing in your state. Because the law is different from jurisdiction to jurisdiction and the laws are
subject to change, Docstoc cannot guarantee—and disclaims all guarantees—that it is correct for the information or number to be
anything that the user chooses.

The information, forms, instructions, tips, comments, decision tree alternatives and choices, reports, and services in and through Docstoc
are not legal advice, but are general information / forms on general issues often encountered designed to help Docstoc users, members,
purchasers, and subscribers address their own needs. But information, including tips, general forms, instructions, comments, decision
tree alternatives and choices, and reports, no matter how seemingly customized to conform to the laws and regulations applicable to you,
is not the same as legal advice, which may be the specific application of laws and regulations by lawyers licensed to practice law in your
state to the specific circumstances and needs of individuals and entities. Some states, counties, municipalities, and other governmental
divisions, have highly specific laws and regulations, and our information / forms / reports may not take all those specific laws and
regulations into consideration, although we tried to do so.

Docstoc is not a law firm and the employees and contractors (including attorneys, if any) of Docstoc are not acting as your attorneys, and
none of them are a substitute for the advice of your own attorney licensed to practice law in your state. The employees or contractors of
Docstoc, who wrote or modified any form, instructions, tips, comments, decision tree alternatives and choices, and reports, are NOT
providing legal or any other kind of advice and are not creating or entering into an Attorney-Client relationship. Any such form,
instruction, tips, comments, decision tree alternatives and choices, and reports were most likely NOT prepared or reviewed by an
attorney licensed to practice law in your state, and, therefore, the employees or contractors could not provide you with legal advice even
if they or Docstoc wanted to. Even though we take every reasonable effort to attempt to make sure our information / forms / reports are
accurate, up to-date, and useful, we recommend that you consult a lawyer licensed to practice law in your state if you want professional
assurance that our information, forms, instructions, tips, comments, decision tree alternatives and choices, and reports; your
interpretation of it or them; and the information and input that you provide are appropriate to your particular situation. Application of
these general principles and wording to particular circumstances should be done by a lawyer who has consulted with you in confidence,
learned all relevant information, and explored various options. Before acting on these general principles and general wording, you might
want to hire a lawyer licensed to practice law in the jurisdiction to which your question pertains. The information, forms, instructions,
tips, comments, decision tree alternatives and choices, and reports, available on and through Docstoc are not legal advice and are not
guaranteed to be correct, complete, accurate, or up-to-date. Because the law is different from jurisdiction to jurisdiction, they are subject
to changes, and there are varying interpretations and applications by different courts and governmental and administrative bodies, and
Docstoc cannot guarantee—and disclaims all guarantees—that the information, forms, and reports on or through the site and services are
completely current or accurate. Please further note that laws change and are regularly amended; therefore, the provisions, names, and
section numbers of statutes, codes, or regulations, and the types of permits or licenses within any forms or reports, may not be 100%
correct, as they may be partially or wholly out of date and some relevant ones may have been omitted or misinterpreted.
Docstoc is not permitted to engage in the practice of law. Docstoc is prohibited from providing any kind of advice, explanation,
opinion, or recommendation to a consumer about possible legal rights, remedies, defenses, options, selection, or completion of
forms or strategies.
Communications between you and Docstoc may be protected by our Privacy Policy (http://premium.docstoc.com/privacypolicy), but are
NOT protected by the attorney-client privilege or work product doctrine since Docstoc is not a law firm and is not providing legal
advice. No Docstoc employee, contractor, or attorney is authorized to provide you with any advice about what information
(again, which includes forms) to use or how to use or complete it or them.

Entire      document        copyright       ©       Docstoc®,        Inc.,      2010       -      2013        All      Right       Reserved




                                                                                                                                   Page 6
                                                               Appendix


				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:1602
posted:12/20/2011
language:English
pages:29
Description: This Business Plan for a Therapy and Massage business allows entrepreneurs or business owners to create a comprehensive and professional business plan. This template form allows a business to outline the company's objectives and detail both current company information as well as any past performance. Companies should include a complete market analysis in their plan to help showcase why their business strategy will be effective in the market. Future company plans, including production targets, management strategy, and financial forecasting, should be used to demonstrate and confirm that the company's short-term and long-term objective can and will be met. This model plan can be customized to best fit the unique needs of any entrepreneur or owner that is seeking to create a strong business plan.