1.0 Executive Summary
The purpose of this business plan is to raise and examine the allocation of $125,000 for the development of a nurse staffing agency based in Austin, Texas. Nurse Staffing Agency LLC (“the Company”) will provide both medical entities as well as the general public with access to properly licensed registered nurses and LPNs that can render services within medical facilities and in a home-based environment. The company was founded by Peter Smith.
1.1 Operations
The primary revenue driver for the business will come from providing registered nurses to medical entities on an ongoing basis. The Company will coordinate these efforts with both doctors’ offices as well as hospital systems throughout the target market. The Company will directly employ its nurses who will undergo substantial vetting. The vast majority of the Company’s revenues will be produced by registered nurses although the business will also recruit licensed practical nurses to provide services as well. The company intends to charge $50 to $75 per hour depending on the level of experience of the nurse that is rendering services at a client’s facility.
From time to time, Management anticipates that certain registered nurses will stay in their position on a permanent basis. In these instances, the client will pay a fee equal to six months of salary for the placement of the registered nurse or licensed practical nurse.
The third section of this business plan will further document the operations of the business.
1.2 Financing
At this time, the company is seeking a $125,000 business loan in order to establish operations. This document assumes that the business will receive a seven-year loan carrying a 7.5% interest rate on the principal balance. The funds will be principally used for the following:
• Location development
• Initial payroll for retained RNs and LPNs
• General working capital
• Initial marketing
As the Company expands its operations, the business will be able to easily secure additional capital to further growth. In the event that the business begins to render its services more comprehensively for home-based patients, the business may secure a revolving credit facility in order to onboard additional nurses for these purposes. However, this document assumes that no further capital will be used during the next three years of operation outside of the funding sought in this document.
1.3 Mission Statement
The Company’s mission is to cost-effectively provide access to a wide range of nursing services that can be rendered within medical facilities and on an in-home basis throughout the target market.
1.4 Management
Peter Smith has 15 years of experience in the field of registered nursing and nurse placement. Through his extensive experience, he will be able to quickly bring the operations of the Nurse Staffing Agency to substantial profitability while ensuring that all patients receive comprehensive care.
1.5 Sales Forecast
1.6 Expansion Plan
The Company will continue to establish ongoing relationships with numerous medical entities throughout the target market. Most importantly, the business will establish ongoing relationships with companies that operate numerous medical centers as well as hospital systems. This will ensure that the company has an ongoing client base that has needs for registered nurses as well as licensed practical nurses.
The Company will also establish relationships with in-home care agencies that have clients that require ongoing care that is rendered by either a registered nurse or a licensed practical nurse. Moving forward, as a method of non-organic growth, the business may seek to acquire existing nurse staffing agencies that could be integrated into the Company’s ecosystem.
2.0 Financing
2.1 Registered Name
Nurse Staffing Agency LLC. The business is registered as a limited liability company in the State of Texas.
2.2 Use of Funds
As noted in the executive summary, a loan of $125,000 is needed to establish the operations of the business. The funds will be allocated as follows:
2.3 Management and Investor Equity
Peter Smith retains a 100% ownership interest in the company.
2.4 Exit Strategies
If it is financially prudent to do so, the Nurse Staffing Agency could be easily divested to a third party for a substantial earnings multiple. As these businesses are fully immune to challenging economic climates, the Company could command a substantial sales premium given the secure nature of profits. In this event, a qualified business broker would be hired to showcase the business to a third party. In all likeliness, a larger agency would be the primary candidate to acquire the operations of the business. However, this event is not expected to occur for a substantial period of time.
3.0 Operations
The Nurse Staffing Agency will provide its clients with broad access to both registered nurses as well as licensed practical nurses. Most importantly, the Company intends to work with numerous healthcare systems that will contract with the Company to have the business’ retained nurses work on site. As noted in the executive summary, the Company will typically receive $50 to $75 per hour when registered nurses are provided. For licensed practical nurses, these fees will range from $25 an hour to $30 an hour depending on what services they’re rendering within a medical facility. To complement these operations, the business will also work with home health care agencies that require registered nurses as well as LPNs from time to time. This is an important aspect of the Company’s operations as it will further provide highly recurring streams of revenue.
The Company will engage in a highly in-depth vetting practice in order to ensure that only the most qualified registered nurses and licensed practical nurses are hired to render services on behalf of the Nurse Staffing Agency. All candidates will undergo a thorough background check as well as ensuring that their license is valid and up to date. This will also include a drug test and ensuring that their academic credentials are fully verified. Generally speaking, the Company will only work with registered nurses that have at least three years of direct clinical experience. This will reduce any liabilities that may be associated when a registered nurse provides their services to one of the Company’s clients.
4.0 Market and Industry Analysis
4.1 Economic Analysis
This section of the business plan will document industry, the client profile of the Company, the current economic climate, and the ongoing competition that the business will face moving forward.
Currently, the economic climate in the United States is strong. The issues related to the COVID-19 pandemic have fully abated although inflation does remain a moderate issue. However, the comprehensive policies enacted by the US Federal Reserve have substantially slowed inflation. In the coming years, Management expects that the prevailing overnight interest rate will be reduced on a measured basis in order to ensure ongoing economic growth.
However, any issues with the economy will not impact the Company’s ability to generate revenue and remain profitable. The demand for qualified nurses is substantial in any economic climate. Additionally, the Company’s ability to provide registered nurses and licensed practical nurses in an in-home environment will further ensure the economic stability of the business.
4.2 Industry Analysis
Currently, the nurse staffing industry generates approximately $25 billion a year of revenue. There are 17,000 companies that are actively involved with providing registered nurses as well as licensed practical nurses for both clinical settings and for in-house care. The compounded annual growth rate of this industry will remain around 7% over the next five years.
This industry will continue to enjoy a healthy growth rate given that more people from the Baby Boomer generation will require a greater degree of health care in the coming years. This growth will be especially prevalent in the field of in-home care given that many people want to receive the treatment that they need within their own home environment. The nurse staffing agency is in an excellent position to capitalize on this growth in the coming years.
4.3 Customer Profile
As noted throughout this document, the Company will principally target medical centers and healthcare systems that have an ongoing need for contracted registered nurses and licensed practical nurses. Admittedly, this demographic is extremely broad as any firm that is involved with providing health care is a potential client of the business within the target market. The company’s secondary market will consist of in-home care agencies that require short term to long term services rendered by either a registered nurse or a licensed practical nurse.
Generally, these entities will always generate more than $1 million per year of revenue and will spend anywhere from $75,000 to $200,000 per annum with the Company.
4.4 Competition
The Company will face ongoing competition from other entities that operate in a similar capacity. Given the economic stability of nurse staffing businesses, there will be numerous providers that operate in a similar capacity within the target market. However, the Company will maintain a differentiating factor by being able to provide services among both registered nurses as well as licensed practical nurses. When necessary, the business will also be able to provide nurses that have specialized expertise in the field of home health care.
5.0 Marketing Plan
The Company will use a number of marketing strategies in order to ensure that the business is able to onboard a number of clients that have ongoing needs for nursing services. Most importantly, the Company will establish ongoing relationships with major healthcare systems that will call upon the nurse staffing agency on an ongoing basis for both registered nurse and licensed practical nurse placement.
5.1 Marketing Objectives
• Conduct direct outreach with healthcare systems that frequently need nurses.
• Use multiple forms of online to his brand name for the business while creating significant visibility among major search engines.
5.2 Revenue Forecasts
5.3 Marketing Strategies
At the onset of operations, management will directly contact medical practices, medical centers, and healthcare systems to inform them that the business has a number of highly vetted registered nurses and licensed practical nurses that can render services at their facilities. The Company will also conduct direct outreach within home health care agencies that need ongoing access to both RNs as well as LP’s. Throughout the life of the business, the Company will engage in numerous direct outreach strategies as this will be the most cost effective way of onboarding new clients that will produce highly recurring streams of revenue for the Nurse Staffing Agency.
As it relates to the Company’s online presence, the business will maintain an expansive website that showcases the wide range of both registered nursing and licensed practical nursing services that can be sourced through the business. This website will undergo substantial search engine optimization specific to the target market. The Company will coordinate these efforts with their regional SEO firm in order to ensure that when searches for nurse staffing are conducted the business will appear frequently within the body of the search results.
To complement the company’s proprietary website, the business will maintain an expansive profile on LinkedIn. Here, the business will use targeted advertisements among executives at healthcare systems that indicate that they are part of their human resources departments. The business will also target home care agencies that have frequent needs for ongoing nurses that can render their services in a home environment.
Moving forward, the company will also maintain traditional print advertising campaigns that include the use of half page and full-page advertisements among medical journals that are circulated on a regional basis. These advertisements will showcase the comprehensive nature of the nurse staffing capabilities of the Company.
6.0 Organizational Plan
6.1 Organizational Structure
6.2 Organizational Expenditures
7.0 Financial Plan
7.1 Underlying Assumptions
• The business will acquire $125,000 to launch operations.
• Nurse Staffing Agency LLC will have a average growth rate of 16%.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to negative changes in the economic climate. Nursing services, provided by both registered nurses and licensed practical nurses, remain in demand in any economic climate. For medical service entities, use of outsourced nursing services is typically more economically advantageous given that there are lower costs associated with contracting this work to a third party rather than maintaining a full-time employee. The Company will have highly controllable operating costs, which will further ensure that the business is able to remain profitable at all times. As has been one of the central themes throughout this document, healthcare businesses are nearly fully immune from negative changes in the economy
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.4 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
