The Podiatry Practice Business Plan, Financial Plan, and Financial Model provides you with complete control over your profit and loss statement, cash flow analysis, and balance sheet. Please see the video below!
1.0 Executive Summary
Podiatry Practice, LLC (“the Company”) was founded by Dr. Shane Smith. The Company will provide comprehensive podiatric care which will encompass both diagnostic and surgical procedures. The practice will maintain its offices in Phoenix, Arizona. Dr. Smith intends on hiring two associate podiatrists that will work alongside him at the state-of-the-art clinic. At this time, Podiatry Practice, LLC is seeking $350,000 of debt capital in order to establish its operations in the Phoenix market.
1.1 The Services
The first aspect of operations comes from diagnostic and podiatric treatment services. These services will include gait analyses, diabetes care, wound care, and non-surgical treatments of bunions/warts.
In addition to the diagnostic services, the Company will offer full surgical services that are common to the practice of podiatrists. The practice will have a state-of-the-art surgical suite that features the latest in medical technology.
The operations of the Podiatry Practice will be further discussed and detailed in Chapter Three of this document.
1.2 Financing
A practice development loan of $350,000 is required to establish the Company’s operations in Phoenix. Dr. Smith will make a capital injection of $50,000, which will primarily be used to cover working capital expenses.
As the business begins to generate substantial revenue, Podiatry Practice, LLC could easily acquire secondary rounds of capital in order to further expand growth. The funds would most likely be used to establish satellite locations within Phoenix or to acquire new equipment so that additional specialized surgical services can be rendered onsite.
1.3 Mission Statement
Podiatry Practice’s mission is to provide the greater Phoenix metropolitan area with comprehensive foot and ankle care provided by compassionate podiatrists.
1.4 Management Team
Shane Smith, DPM has been a board-certified podiatrist for the past six years. He has specialized expertise in both diabetic care as well as surgery. Dr. Smith, alongside his retained staff, will be able to provide the Phoenix community with the full spectrum of podiatric services.
1.5 Revenue Forecasts
1.6 Expansion Plan
Phoenix has a substantial population, and many of these residents require ongoing podiatric care. This area has a number of residents that are over the age of 65, and they have ongoing foot and ankle issues. As a major component to the Company’s growth, the business may establish additional locations in the greater Phoenix metropolitan area in order to accommodate demand. Podiatry Practice, LLC will also continually hire additional staff podiatrists and assistants (including podiatrists that specialize in surgery).
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Podiatry Practice, LLC. The business is domiciled in Arizona.
2.2 Required Funds
2.3 Investor Equity
Although not needed at this time, Dr. Smith may take on an equity partner in the future should it be required when establishing satellite locations in the greater Phoenix metropolitan area. These funds would be exclusively used as a down payment to secure additional debt capital to expand the Podiatry Practice, LLC ecosystem.
2.4 Management Equity
At the onset of operations, Dr. Smith will retain full ownership and control of Podiatry Practice, LLC. As more staff podiatrists become part of the practice, equity may be distributed to established practitioners in order to have this business operate as a group practice. This will most likely be the case as the Company establishes additional locations that will not be directly managed by Dr. Smith.
2.5 Exit Strategy
Most likely. Dr. Shane Smith will transition the ownership of the practice to staff podiatrists in the event that he relocates or wishes to retire. The Founder would stay on as a staff practitioner for at least twelve to twenty-four months in order to facilitate a smooth transaction for the buyers. Dr. Smith would also provide seller-financing, over a period of five years, in order to more easily divest the practice.
3.0 Podiatry Services
The practice will offer the full spectrum of podiatric care that includes both diagnostic and surgical procedures. As stated in the executive summary, a major aspect of the practice’s operations and profits will come from surgical services. Below is an overview of the services that will be rendered onsite:
Diagnostic and Treatment Services
• Diabetes Treatments
• Gait Analysis
• Non-surgical Treatment of Warts
• Pain Treatment
• Wound Care
Surgical Treatments
• Deformity Surgeries
• Fracture Treatment Surgery
• Laser Surgeries
• Surgical Removal of Warts and Bunions
It should be noted that Dr. Smith and all staff podiatrists will have hospital admitting privileges at a number of locations within the Phoenix metropolitan area. From time to time, major surgeries will need to be conducted in a hospital setting rather than as an in-office procedure.
The Company’s secondary revenues will come from the sale of equipment and appliances that are used during the course of a patient’s treatment.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Podiatrists, like all other healthcare professionals, enjoy nearly complete economic security for their practices and income. People will continue to require complex foot and ankle care procedures regardless of how the economy is doing.
At this time, the economy is doing very well. The fiscal policies implemented by the US government as well as the Federal Reserve have ensured a soft landing as a result of the historically high rates of inflation and interest rates. It is expected that these entities will continue to take a measured approach in order to ensure that jobs are preserved.
The only external economic issue faced by the business will be any potential change in podiatric focused reimbursement schedules. However, a major adjustment in any insurance reimbursement schedule is not expected to occur within the next twenty-four months. The extremely high gross margins on all services rendered by the Podiatry Practice will further ensure that the Company can satisfy all financial obligations.
4.2 Industry Analysis
The practice of podiatry produces revenues in excess of $6 billion each year. There are currently 18,000 practice podiatrists in the country. These practitioners operate within 4,500 clinical and hospital settings.
The demand for podiatric services is expected to grow over the next five years as more people become older and as more people are diagnosed with Type 2 diabetes. It is no secret that this pancreatic issue is become more prevalent in modern society, and nearly one-third of the population is at risk for developing this disorder. This is expected to be am major contributor the growth of the industry.
4.3 Patient Profile
Any individual that has diabetes, a foot/ankle injury, or a fracture in this area is a potential patient of the Podiatry Practice. The demand for these services encompasses all ages. However, it is expected that most patients will be over the age of 50 when surgical services are required. Given the continually increasing prevalence of diabetes, the Company expects to see patients of all age ranges when dealing with these matters.
As mentioned earlier, Dr. Smith has specifically chosen the Phoenix market given the immense population and the ongoing demand for podiatric services among these residents. In the event that Management intends to establish additional practice locations outside of the Phoenix metropolitan area, additional demographic analyses will be completed in order to ensure that the potential market is economically viable.
4.4 Competition
As Phoenix is home to several million residents, there are a number of podiatry practices and clinics that operate within this market. As the population continues to grow, it is expected that more practitioners will enter the market in order to accommodate demand. One of the primary ways in which the Podiatry Practice will differentiate itself from its competitors is by having a state-of-the-art onsite surgical suite. This will allow patients to receive their surgical care without having to go to a hospital. Of course, all doctors will have admitting privileges when more complex procedures are warranted.
In the competitive analysis, you can indicate the ways in which your practice will stand out from competing entities in your respective market. The types of attributes that can be addresses including longer office hours, hiring of specialists, and the experience of the founding doctor.
5.0 Marketing Plan
Major metropolitan areas always have a number of podiatrists that provide their services to the general public. This is especially true in markets where there is a large population of senior citizens and people that have diabetes. Podiatry Practice, LLC will develop referral relationships with endocrinologists and other physicians that treat diabetic issues. The business will also use numerous online marketing strategies to create significant awareness at the onset of operations.
5.1 Marketing Objectives
• Continue to create ongoing relationships with physicians (MDs and DOs) that treat diabetic issues (especially endocrinologists).
• Maintain an easily found website that will be search engine optimized for the Phoenix market.
• Leverage third-party doctor review platforms to increase practice visibility.
5.2 Marketing Strategies
Through the life of the practice, Dr. Shane Smith will implement a wide range of marketing and advertising strategies that will ensure a significant patient flow to the practice. Foremost, generating referrals from allopathic and osteopathic physicians will be of the utmost importance as these individuals frequently treat patients with diabetes. Management anticipates that 30% of the practice’s operation will center around treatments for this disorder. These patients will also need to be seen on a regular basis.
Podiatry Practice, LLC will maintain a presence among all major portals that list healthcare practices. Over time, it is expected that numerous positive reviews will be left on these platforms as podiatric care is rendered to the Phoenix community. These portals will have links to the Company’s website, which will assist in the SEO campaigns that are undertaken by the practice.
As it relates to the practice’s proprietary website, this platform will showcase the biography of Dr. Shane Smith as well as those of staff podiatrists. The platform will also have specialized technology that allows individuals to enroll as patients without having to visit the office. Secure uploading technology will allow patients to send their medical histories, insurance information, and other information regarding the podiatric diagnostic/surgical care needs. This website will be developed by a third-party company that will ensure that the platform is designed specifically for the Phoenix market area.
The Company will also maintain a modest level of print advertising, which will be distributed to nursing homes, assisted living facilities, and independent living facilities so that proper referrals can be made when their residents require diabetes care, wart/bunion removals, or podiatric surgery.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
Dr. Shane Smith is well regarded podiatrist that maintains specialties in both diabetic care as well as podiatric surgery. He has received substantial acclaim for his compassionate and holistic approach when working with his patients. He, as well as staff podiatrists, will be able develop and expand this practice in the Phoenix market.
7.0 Financial Plan
7.1 Underlying Assumptions
• A practice development loan of $350,000 will be acquired by Dr. Shane Smith.
• Dr. Smith will contribute $50,000 in order to develop the corporate entity and to finance the early expenses of Podiatry Practice, LLC.
7.2 Sensitivity Analysis
Podiatric diagnostic and surgical services are not swayed by negative changes in the economy. The demand for these services remains especially strong among people that have diabetes and need ongoing foot and ankle care. The practice’s state-of-the-art surgical suite will allow for substantial revenue generation, which will further abate any underlying financial risks of the practice.
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
