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1.0 Executive Summary
Medical Staffing Agency, LLC (“the Company”) will provide healthcare companies with access to highly trained medical professionals that can render services at their locations. The business is based in Northport, New York. The Owner/Founder is Richard Lexington. At this time, the Company is seeking $250,000 in order to establish operations (via a line of credit).
1.1 The Services
The business will source highly qualified and licensed physicians, surgeons, nurse practitioners, and registered nurses that will provide ongoing services at hospitals and medical facilities throughout the greater Northport market area. The business will directly employ these professionals. Generally, the business will charge a per hour fee to medical facilities that use the Company’s staff. Employees of the business will receive 80% of their aggregate billings.
The business will also provide direct placement of medical professionals in positions. When this occurs, the business will receive a fee equal to three months of salary. This will be a major source of profit for the business over the next three years.
Chapter three of this document will further discuss the services offered by the business.
1.2 Financing
Management, via a revolving credit facility, is seeking $250,000 in order to establish operations. This business plan assumes that the Company will receive a 10 year commitment with an 8% interest rate applied to the drawn down principal balance. The funds will be used for the following:
• Office development in Northport
• Initial capital for recruiting medical professionals
• General working capital
• Furniture, fixtures, and equipment
Moving forward, the Company would be an outstanding candidate for additional capital on an as needed basis. The business will generate highly recurring streams of revenue from its operations, which are wholly immune from negative changes in the economy.
1.3 Mission Statement
Medical Staffing Agency’s mission is to provide seamless access to a wide range of medical professionals that can be cost effectively sourced through the business.
1.4 Management Team
The business was founded and is owned by Richard Lexington. He has been involved in the healthcare staffing industry for eight years. Through his experience and extensive contacts in the field, he will be able to quickly bring the operations of the business to profitability.
1.5 Sales Forecasts
1.6 Expansion Plan
Over the first three years of operation, the business will continue to source new medical professionals that can render services on behalf of the Company. The Company will focus heavily on recruited specialized physicians and surgeons. The business will also expand its marketing operations as it relates to fostering ongoing relationships with medical centers, hospitals, medical imaging companies, and urgent care centers within Northport.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Medical Staffing Agency, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
A $250,000 line of credit is sought for the launch of this medical staffing business. The Founder will contribute $50,000 towards the venture. The funds are to be allocated as follows:
2.3 Management Equity
Richard Lexington retains a 100% ownership interest in Medical Staffing Agency, LLC. If equity partners are acquired in the future, this capital structure will change.
2.4 Exit Strategy
As healthcare businesses remain stable at all times, the business could be sold for up to five times the previous years earnings. In this event, Management will have a formal valuation completed while retaining a qualified business broker, attorney, and CPA to facilitate the sale to a third party. In all likeliness, the business would be sold to a competitor that is looking to expand. This even is not expected to occur for at least five years.
3.0 Medical Staffing Operations
As discussed in the executive summary, Medical Staffing Agency will provide its healthcare clients with a wide range of medical professionals that can render their professional services at their locations. The business will source the following types of healthcare professionals:
• Surgeons (general and among all specialties)
• Physicians (all specialties)
• Radiology Technicians and Dosimetrists
• Nurse Practitioners
• Registered Nurses
The business will generally receive its fees on a per-hour or per diem basis (depending on the work provided by the medical practitioner).
The business will also act in a long-term placement capacity to fill positions at hospitals and medical facilities. This will be a major profit center for the business. The Company will maintain an expansive online apparatus for sourcing qualified candidates for these positions. The Company will also work closely with physicians that will soon complete their residencies and are seeking full time employment.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Medical staffing agency’s revenues are wholly immune from negative changes in the economy. The demand among hospitals to have qualified staff available to provide services remains strong in any economic climate. As these entities are able to remain profitable at all times, the business will benefit immensely by being able to place candidates with these entities.
The current economic outlook is positive. Although interest rates remain moderately high, they are declining as a result of the monetary policy implemented by the Federal Reserve. The rate of inflation is also declining.
4.2 Medical Staffing Industry Analysis
There are 5,000 firms that provide healthcare professionals on a temporary and long term basis. Each year, these firms aggregate produce $20 billion of revenue. The industry employs 210,000 people.
The economic outlook for this industry is strong. As more people from the Baby Boomer population reach the age of 75, the demand for medical professionals will continue to increase. Medical Staffing Agency, LLC is in a strong position to capitalize on this demand throughout the life of the business.
4.3 Customer Profile
Any medical entity that employs physicians, surgeons, and nurses on a an ongoing basis is a potential client for the business. Admittedly, these demographics are broad but the services rendered by the Company have universal applicability to any healthcare enterprises. Typically, these entities will generate in excess of $5 million per annum. The primary focus of the Company’s operations will be to establish relationships with hospitals, large scale medical centers, and outpatient surgical facilities within the greater Northport market area.
4.4 Competition
The medical staffing agency is highly competitive given the substantial fees that are generated from temporary placement of healthcare professionals as well as long term placement operations. Medical Staffing Agency, LLC will maintain a differentiating factor by focusing on the placement of qualified specialty physicians and surgeons. The ability to concurrently place nurses and nurse practitioners will also provide the business with a strong advantage. Here, you can further discuss the ways in which your agency will compete with specific market agents in your area. You can also list your competitors while providing estimates as to their revenues.
5.0 Marketing Plan
Medical Staffing Agency, LLC intends on using a number of marketing strategies that will foster ongoing relationships with medical professionals as well as hospitals and other medical entities throughout Northport. Once these ongoing relationships are established – the business will be able to generate highly recurring revenue streams from the ongoing placement of medical candidates.
5.1 Marketing Objectives
• Maintain an expansive online presence to recruit medical professionals that will work on behalf of the business.
• Develop relationships with residency programs so that physicians/surgeons will work with the business when seeking full-time post residency employment.
• Leverage social media and search engine optimization to further increase awareness of the Company and its operations.
5.2 Marketing Strategies
The most important aspect of the Company’s marketing operations will be the direct outreach programs that Management will enact in order to make hospitals and medical centers aware of the business’ placement capabilities. The business will contact administrators at these facilities in order to showcase available candidates for healthcare positions. The Company will distribute large-scale packages that showcase the types of medical professionals that can be sourced through the business.
In regards to online marketing, the Company will have a state-of-the-art platform that showcases all available staff while also providing a portal where medical professionals can seek employment. This website will be mobile friendly and search engine optimized. The business will also list the web address among directories that focus on healthcare industry employment.
On social media, the business will maintain an expansive presence on both LinkedIn and Facebook. On the former, the business will use targeted advertisements among people that list their profession has a human resources professional at a healthcare entity. The business will also target physicians and surgeons that have indicated that they are seeking employment in the greater Northport metropolitan area.
Several times per year, the Founder and the Company’s staff will attend industry events in the Northport market. This will allow for greater networking among people that work at hospitals and medical centers.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• Medical Staffing Agency, LLC will acquire a $250,000 line of credit to commence operations.
• Richard Lexington will contribute $50,000, as equity, towards the venture.
7.2 Sensitivity Analysis
The Company’s profits are not sensitive to negative changes in the economy. The demand among medical and healthcare facilities for ongoing access to qualified staff remains strong in any economic climate. The business will have highly controllable operating costs, which will further contribute to the economic stability of the business. The long-term placement of medical professionals will produce massive profits, which will ensure the viability of the business 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
