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1.0 Executive Summary
MRI Imaging Center, LLC (“the Company”) will provide a broad range of medical imaging services from its state-of-the-art facilities in Tampa, Florida. At this time, the Company is seeking $5 million ($1,000,000 via equity and $4,000,000 via debt). Th business was founded by Michael Abbington. The Company will provide MRI, CT scans, X-Rays, and ultrasounds from its location. The business will independently contract with radiologists that will read the scans completed.
1.1 The Services
The Company intends to develop its operations in a standalone facility. This will allow the business to operate with three MRI machines from the onset of operations as well as one CT machine. The business will directly employ radiology technicians that will render medical imaging on site. As stated above, the Company will work with contracted radiologists that will examine each scan and report their results. Generally, the business will generate $750 per scan.
In regards to payment, the Company will accept all forms of private insurance, Medicare, and Medicaid. This will ensure that all people that need medical imaging can come to the facility for their needs.
Chapter three of this document will further outline the operations of the business.
1.2 Financing
At this time, the business is seeking an aggregate of $5 million to launch operations. The terms of the equity capital are to be determined. In regards to the loan, this document assumes that the business will receive a 10 year term loan carrying an 8% interest rate. The loan will be fully collateralized with medical imaging equipment and real estate. Primarily, the funds will be used for the following:
• Location development in Tampa
• Medical imaging equipment
• General FF&E
• Working capital
Moving forward, MRI Imaging Center, LLC could easily acquire additional rounds of capital to further fuel the growth of the business plan. The business, as it expands the types of equipment used to provide medical imaging, may use lease financing provided by manufacturers.
1.3 Mission Statement
The Company’s mission is to provide cost-effective medical imaging solutions for people in the Tampa market area.
1.4 Management
The Company was founded by Michael Abbington who is a highly experienced entrepreneur. He will be able to properly develop the operations of MRI Imaging Center, LLC to profitability while providing affordable medical imaging to the general public.
1.5 Sales Forecasts
1.6 Expansion Plan
Over the next three years, the Company will continually increase the scope of its marketing campaigns. The business may also integrate services such as mammograms and PET scans in order to further boost revenue. The business will also continually increase the referrals received from personal injury attorneys and physicians throughout the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
MRI Imaging Center, LLC. The business is registered as a limited liability company in the State of Florida.
2.2 Required Funds
The $5 million sought in this document will be allocated as follows:
2.3 Investor and Management Equity
This will be determined at a later date.
2.4 Exit Strategy
In the event that it is economically prudent to do so, Management will coordinate the sale of MRI Imaging Center, LLC to a third party for a substantial earnings multiple. Given the stability of healthcare enterprises, the Company could receive a sales premium of up to five times the previous year’s EBITDA. This event is not expected to occur for at least six years.
3.0 Operations
The Company’s operations will be housed in a 15,000 square foot standalone facility in Tampa. At this time, Management is sourcing the necessary equipment among top tier medical imaging manufacturers. The initial machines will be purchased outright. In the future, the business may use capital leases to acquire additional machines especially as the business acquires PET scan equipment.
The Company has secured independent contract agreements with two radiologists that are board certified and properly licensed within the State of Florida. They will receive a fee equal to 25% of the cost of the scans that they read. The business will directly employ six technicians. In addition to MRI and CT scans, the business will have state-of-the-art X-ray machines and ultrasound imaging technology on site as well.
The business, to further increase growth, will introduce mammograms at some point in the future. The business will work with area OB-GYN and primary care physicians in regards to developing referral relationships for these operations. The business will also market these services to the general public as well.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
At this time, the economy is doing very well. Although interest rates have remained somewhat high, the US Federal Reserve has implemented fiscal policy that is now reducing prime rates as well as inflation. It is expected that the central bank will continue to apply proper monetary policy moving forward.
It should be noted that any issues with the economy will have no impact on MRI Imaging Center’s ability to generate revenue. The services offered at the location are generally fully covered by health insurance (public and private). The demand for medical imaging remains strong in any economic climate as it is an absolute necessity.
4.2 Industry Analysis
Nationally, there are 8,700 locations that provide medical imaging services to the general public. Each year, the industry aggregately generates $18 billion of revenue. Approximately 90,000 people are employed by the industry.
The growth of this industry is expected to remain strong in the coming years. As people that were born prior to 1965 enter their later years, the demand for comprehensive medical imaging will increase. Additionally, medical imaging is becoming increasingly used among younger demographics to detect the early onset of medical issues.
4.3 Patient Profile
Medical imaging is needed by all people at all times. These services are needed by anyone that has a possible medical issue that needs to be determined through these services. Management has specially chosen the Tampa market given its immense population and high incomes. The vast majority of people within this market are covered by private insurance or Medicare (among people that are over the age of 65).
In this section, you can further discuss why you are developing a medical imaging center in your specific market. The key points to discuss within this section are population size, wealth of the market, and its economic viability.
4.4 Competition
MRI Imaging Center, LLC will face ongoing competition from other medical imaging facilities in this market. Most importantly, the Company will differentiate itself from the competition by offering MRI and CT scans as well as X-rays and ultrasounds onsite. The integrated nature of these operations will create an immense competitive advantage. Here, you can list the ongoing competitors that you will face as you develop your MRI center and medical imaging facility within your respective market.
5.0 Marketing Plan
The Company will use a number of marketing strategies that will drive immense growth for MRI Imaging Center over the next three years. Most importantly, the Company will maintain ongoing referral relationships with physicians that need medical imaging completed. The business will conduct direct outreach programs with physicians and physicians groups in Tampa. The business will also use the marketing strategies listed below in order to create brand name awareness among the general public.
5.1 Marketing Objectives
• Develop ongoing relationships with medical professionals in the market.
• Maintain referral relationships with personal injury attorneys that will use the business to help determine the extent of a client’s injuries.
• Maintain an expansive online presence via a proprietary website as well as social media platforms.
5.2 Marketing Strategies
As has been one of the central themes throughout this document, MRI Imaging Center, LLC will be heavily reliant on referrals from medical and legal professionals. The business will foster these types of relationships throughout the life of the Company.
As it relates to the Company’s website, this platform will showcase all medical imaging services offered by the business. Prior to the onset of operations, the Company will have several professional videos created that showcase the facilities, its medical imaging equipment, and how to reach the business. The website will be both mobile device and friendly to all search engines. During the course of development, the Company will hire a regional SEO firm to ensure that the Company appears frequently within search results when medical imaging services are sought for the target market.
The business will also maintain a presence among social media platforms. The Company, on Facebook, will use targeted advertising among people that are searching for medical imaging centers. The Company’s Facebook page will also allow people to post reviews of their experience at MRI Imaging Center, LLC. Beyond social media, the Company will also maintain pages on medically focused platforms that allow for reviews to be provided. This will also contribute to the success of the Company’s search engine optimization campaigns.
The business will use television advertising once the business integrates mammograms and general wellness scans into its operations. These expanded marketing operations will commence in the second year of operation.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• The Company will acquire $1,000,000 (Equity) and $4,000,000 (Debt) to establish the operations of MRI Imaging Center.
• The business will retain 30% of its after-tax cash flow for expansion purposes.
7.2 Sensitivity Analysis
MRI Imaging Center, LLC’s revenues are not sensitive to negative changes in the economy. People will require medical imaging and radiology services regardless of the state of the economy. The business will have highly controllable operating costs, which will further ensure that the business is able to remain profitable at all times.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
