Medical & Health Business Plans

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Dental Practice Business Plans

Health Administration Business Plans

Medical Equipment Business Plans

Medical Practice Business Plans

Medical Support & Laboratories Business Plans

Nursing Home Business Plans

Pharmacy Business Plans

Psychological Therapy Business Plans

Veterinary practice business plans.

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Healthcare Business Plan Template

Written by Dave Lavinsky

Healthcare Business Plan

There are several types of Healthcare businesses, from family medicine practices to urgent care centers to home health care agencies. Regardless of the type of healthcare business you have, a business plan will keep you on track and help you grow your healthcare business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download Growthink’s Ultimate Business Plan Template here >

Below is the business plan outline you should use to create a business plan for your healthcare company. Also, here are links to several healthcare business plan templates:

Healthcare Business Plan Outline

Executive summary.

Although it serves as the introduction to your business plan, your executive summary should be written last. The first page helps financiers decide whether to read the full plan, so provide the most important information. Give a clear and concise description of your healthcare company. Provide a summary of your market analysis that proves the need for another healthcare business, and explain your company’s unique qualifications to meet that need.

Company Analysis

Your company analysis explains your healthcare business as it exists right now. Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up clients or hiring healthcare providers with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market.

Industry Analysis

The healthcare industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in pediatric healthcare? senior healthcare? emergency medicine? family medicine? Figure out where your healthcare company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.

Customer Analysis

Who will your healthcare company serve? Are they families? The elderly? What is important to them in a healthcare business? How do they select a healthcare provider? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

Competitive Analysis

Your direct competitors are those healthcare companies that fulfill the same needs for the same target market as yours. Your indirect competitors are healthcare businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your healthcare company apart. Categorize your indirect competitors as a group and talk about them as a whole.

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. The Product section describes the healthcare you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in servicing clients. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of service.

Management Team

The management team section highlights the backgrounds of the key members of your team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth.

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Healthcare is a strong market, it usually not subject to economic turns. The financial plan requires you to detail your individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.

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Healthcare Business Plan FAQs

What is the easiest way to complete my healthcare business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Healthcare Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of healthcare business you are operating and the status; for example, are you a startup, do you have a healthcare business that you would like to grow, or are you operating a chain of healthcare businesses?

Other Helpful Business Plan Articles & Templates

Business Plan Template & Guide For Small Businesses

business plan for health products

How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Healthcare Business Plan

Marketing is crucial for any industry, and healthcare industry is no exception. Whether you are a big hospital or private practice, creating and implementing an effective marketing plan will help to attract new patients, retain the existing ones and maintain relationships with your staff and patients. An effective marketing strategy will play an integral role in increasing revenue, building patient trust, improving online reputation and expanding your reach.

A healthcare business plan can help you define and identify the target audience and key prospects. It can also assist in evaluating and comparing your practice data against your industry. Clearly, a business plan is necessary, so does your practice have one? Here are some more benefits of creating a strategic plan for your medical practice:

Strategic business planning offers great long-term value. After the initial planning is done, a practice can use it as the benchmark for measuring progress and monitoring areas of improvement.

The process for preparing a strategic business plan is not clear-cut, but it is one of the most important things you should do for the strategic growth of your practice. A well-defined marketing plan will outline how you will retain existing patients and attract new patients, retain staff and communicate your message in the most efficient manner.

How to Create a Profitable Healthcare Business Plan for Your Medical Practice

You do not need to hire expensive consultants to create a marketing plan for your healthcare practice. All that you need is the willingness to put in time and effort. An ideal healthcare marketing plan should address every aspect related to promoting your practice, and to effectively plan, you must do some research.

Business Plan for Medical Services

Identify your target audience

The first step in any business plan is to figure out who is going to seek your service. If you have a specialty practice, you probably know the answer. According to industry experts, your marketing efforts will be effective only if they are targeted. So to identify your potential patients, start by defining the common characteristics of your current patients. Always remember, your marketing plan is all about reaching your target audience and adjusting your approach to fit their preferences. Beyond demographics, try to learn the reasons why your potential patients will come to your practice, know your competition and understand your competitors’ approach in reaching the target audience. Examine how your competitors market their practice and then compare their approach, services and marketing strategies with yours. You must also determine your unique selling proposition and understand what makes you different from your competition.

Marketing is all about keeping up-to-date. So make sure while doing your research, you stay updated on current affairs. The idea is to keep up-to-date with financial, political and marketing trends that influence the medical community so you can create an effective business plan that responds to changing market conditions.

How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Time for some brainstorming sessions

After you have identified your potential market and patients, you will need to categorize and address critical operational questions about your medical practice. You may need to set up brainstorming sessions with people you trust, including family, friends, team members or other professionals. During these sessions, try to find answers to these basic but critical questions:

Question: Which marketing platforms will make be most suitable for promoting your services?

Pro tip: You will need to think regarding how to present or sell your services. For instance, consider offering packages that are generic in nature and offer value for money.

Question: What is the best time and frequency of marketing your service?

How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Pro tip: Too much promotion can create a negative brand image in the minds of potential patients. Too much advertising tends to make patients suspicious. So depending on your target audience, determine the best time for promoting your practice.

Question: What are you trying to achieve from your business plan? How do you plan to measure these goals?

Pro tip: According to experts, your marketing plan should include basic tasks that have short-term goals so that you do not end up compromising on the patient experience. You can consider using big data to evaluate and measure results and their impact on ROI.

Penning the business plan

Now that you have completed the groundwork, it is time to put all your facts and figures into words. Here are some basic steps for creating a business plan for your medical practice:

How to Create a Profitable Healthcare Business Plan for Your Medical Practice

Physician Business Plan

Don’t forget the 7Ps

Even the most insightful services, supported by the best business plan, will not survive on the market if they are unable to reach potential patients. That is why practices need to invest in strategies that will bridge the gap between them and the target audience. For your marketing initiatives to be successful, you must address the 7Ps in order to evaluate and measure your business activities. These seven Ps are product, price, promotion, place, packaging, positioning and people. These 7Ps will help you review and define key issues that impact your marketing activities.

For successfully growing their practice and attracting new patients, many practices are working with medical marketing agencies. As a medical marketing agency , Practice Builders knows what is suitable for different medical specialties. We can introduce you to the best marketing tactics that will draw new patients to your practice. Moreover, we know how to develop effective business plans that will lead to significant growth in your medical practice. To find out more, contact us today.

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Sharon Mason Parker

Sharon has spent 25 years building teams and developing people to work together to help improve the client experience in the markets we serve. This ultimately benefits both customers and staff equally. Sharing best practices and ideas helps clients and team members envision new alternatives, which is quite fulfilling when positive change results. Sharon enjoys working closely with clients to understand the true drivers that are affecting their business environment. By engaging clients in meaningful exploration of their goals and challenges, she often discovers that an issue they asked for help in solving is merely a symptom of something else or something greater. Solving the real issue through truly listening and not just addressing the symptoms helps create true partnerships with clients.

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Wellness Center Business Plan Template

Wellness center business plan.

You’ve come to the right place to create your Wellness Center business plan.

We have helped over 2,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Wellness Centers.

Below is a template to help you create each section of your Wellness Center business plan.

Executive Summary

Business overview.

Best Health Wellness Center is a startup wellness center located in Denver, Colorado. The company was founded by Melissa Smith, an experienced physician with over twenty years in the medical field working as a clinical psychiatrist. During her tenure, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa is confident that her clinical expertise combined with a deep understanding of the wellness market, will enable her to run a profitable wellness center of her own. Melissa is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a wellness center – administration, marketing, financial management, and patient support.

Best Health Wellness Center will offer a full suite of wellness services to provide patients with a complete wellness regimen from head-to-toe and inside and out. Best Health Wellness Center will be the preferred wellness center for individuals in Denver who are looking for a personalized and thorough approach to wellness.

Product Offering

The following are the products and services that Best Health Wellness Center will offer:

Customer Focus

Best Health Wellness Center will target individuals of all ages who are looking to improve their quality of life. The company will target individuals with specific wellness goals such as healthy weight, better fitness, or better skin. No matter the customer, Best Health Wellness Center will deliver personalized and high quality service from certified professionals.

Management Team

Best Health Wellness Center will be owned and operated by Melissa Smith. Melissa is a graduate of Colorado University with a degree in medicine. She is an experienced physician with over twenty years as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa will be the chief executive officer for the wellness center. She will oversee the staff’s activities, customer relationship management, and day-to-day operations.

Melissa has recruited a business management professional, Angela Johnson, to be the company’s chief operating officer and help oversee the wellness center’s business operations. Angela has a master’s degree in business administration and over ten years of experience managing a wellness center. Angela will handle contractor and supplier relationships, logistics, and budgeting for the business.

Melissa and Angela have hired an experienced marketing professional, Edward Rodriguez, to become a member of the Best Health Wellness Center management team. Edward is a graduate of the University of Arizona with a bachelor’s degree in marketing. Melissa and Angela rely on Edward’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Best Health Wellness Center will be able to achieve success by offering the following competitive advantages:

Financial Highlights

Best Health Wellness Center is seeking $560,000 in debt financing to launch its wellness center business. The funding will be dedicated towards securing the facility and purchasing wellness center equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

The following graph below outlines the pro forma financial projections for Best Health Wellness Center.

Wellness Center

Company Overview

Who is best health wellness center.

Best Health Wellness Center is a newly established wellness center in Denver, Colorado. Best Health will offer a full suite of wellness products and services to provide patients with a complete wellness regimen from head-to-toe and inside and out. Best Health Wellness Center will be the preferred wellness center for individuals in Denver who are looking for a personalized approach to wellness. The company will offer free consultations for new patients and will build individualized wellness plans to accommodate the needs and goals of each person.

Best Health Wellness Center will also be able to guarantee the lowest prices on vitamins and supplements in the area thanks to its leadership team members’ existing supplier network connections. The company offers patients the option to select a la carte services for a one time fee or recurring services on a monthly payment plan.

Best Health Wellness Center History

Best Health Wellness Center is owned and operated by Melissa Smith, an experienced physician with over twenty years as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa is confident that her clinical expertise combined with a deep understanding of the wellness market, will enable her to run a profitable wellness center of her own. Melissa is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a wellness center – administration, marketing, financial management, and patient support.

Since incorporation, Best Health Wellness Center has achieved the following milestones:

Best Health Wellness Center Services

Industry analysis.

The United States health and wellness industry is valued at approximately $4 Trillion and is forecasted to reach $6.75 Trillion by the year 2030 growing by a compound annual growth rate of 5.2%. The health and wellness market includes a wide range of activities that can be segmented by categories such as personal care and anti-aging, nutrition, wellness tourism, preventive medicine, spa culture, and traditional medicine.

Wellness in particular is gaining popularity worldwide. Consumers view wellness as a combination of health, fitness, nutrition, appearance, sleep, and mindfulness. Of these categories, consumers spend the most on health, followed by appearance and fitness.

Trends in the wellness market include increasing customer preferences for natural products as well as personalized and digital services. As the industry grows, the market is becoming more competitive. Industry players can be successful by developing a solid business model, strategic marketing, and unique product or services offerings.

Customer Analysis

Demographic profile of target market.

The precise demographics for Denver, Colorado are:

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Customer Segmentation

Best Health will primarily target the following customer profiles:

Competitive Analysis

Direct and indirect competitors.

Best Health Wellness Center will face competition from other companies with similar business profiles. A description of each competitor company is below.

Healthy Life Wellness Center

Healthy Life Wellness Center is one of the largest wellness center companies based in Denver, Colorado. Established in 2010, the company currently operates ten wellness centers throughout the United States. Healthy Life Wellness Center offers a variety of wellness services in the categories of fitness, nutrition, skincare, mental health, and social health. Healthy Life Wellness Center aims to deliver exceptional care for every patient. The company uses a stringent selection process for its personnel to ensure all of its patients receive the best quality of care. Healthy Life Wellness Center’s team of experienced physicians come from a variety of disciplines to provide a well-rounded wellness experience for its patients.

Great Shape Wellness Center

Great Shape Wellness Center is a small wellness center catering to local residents of Denver, Colorado. Great Shape Wellness Center operates one location in a busy retail district. The company specializes in fitness, nutrition, and body sculpting services. Great Shape Wellness Center is owned and operated by former athletes who understand the needs and goals of their clientele. The wellness center professionals are able to provide clients with personalized fitness and nutrition plans to help them reach their wellness goals. The company prides itself on providing visible results.

For The Win Wellness Center

For The Win Wellness Center is a Denver, Colorado-based wellness center that provides superior in-personal wellness services for local Denver residents and virtual services for patients worldwide. The company offers a variety of services including skincare, body sculpting, IV therapy, and light therapy. For The Win Wellness Center also provides individual and group therapy, counseling, personal training, life coaching, and other mental health services in-person and virtually. All services are performed by licensed healthcare providers who are experts in their fields.

Competitive Advantage

Best Health Wellness Center will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Best Health Wellness Center will offer the unique value proposition to its clientele:

Promotions Strategy

The promotions strategy for Best Health Wellness Center is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Best Health maintains an active social media presence with regular updates and promotional content to incentivize customers to use the company’s services.

Professional Associations and Networking

Best Health Wellness Center will become a member of professional associations such as the American Wellness Center Association, Denver Wellness Society, and the Colorado Health and Wellness Association. The leadership team will focus their networking efforts on expanding the company’s supplier and patient network.

Print Advertising

Best Health Wellness Center will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents and businesses that are likely to frequent the wellness center.

Website/SEO Marketing

Best Health Wellness Center will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list the products and services Best Health is able to provide. The website will also list information on discounts and upcoming events.

The marketing director will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Denver wellness center ” or “wellness center near me”, Best Health Wellness Center will be listed at the top of the search results.

The pricing of Best Health Wellness Center will be moderate and on par with competitors so customers feel they receive value when purchasing the company’s products and services. Best Health will also offer discounts to recurring patients.

Operations Plan

The following will be the operations plan for Best Health Wellness Center.

Operation Functions:


Best Health Wellness Center will have the following milestones complete in the next six months.

1/1/2023 – Finalize contract to lease the office space for the wellness center

1/15/2023 – Finalize employment contracts for the Best Health Wellness Center management team

2/1/2023 – Begin build-out of the wellness center and purchase equipment, materials, and supplies

2/15/2023 – Begin networking at industry events and implement the marketing plan

3/15/2023 – Finalize contracts with suppliers and contractors

4/15/2023 – Best Health Wellness Center officially opens for business

Best Health Wellness Center will be owned and operated by Melissa Smith. Melissa is a graduate of Colorado University with a degree in medicine. She is an experienced physician with over twenty years as a clinical psychiatrist. During her tenure in the medical field, Melissa has developed a deep understanding of the importance of health and wellness on a person’s quality of life and is passionate about helping people live their best lives. Melissa will be the chief executive officer for the wellness center. She will oversee the staff’s activities, patient relationships, and day-to-day operations.

Financial Plan

Key revenue & costs.

The revenue drivers for Best Health Wellness Center are the fees charged to patients in exchange for the company’s products and services. The company will offer a choice of payment options that includes one-time fees for new patients who are interested in trying out the products and services to monthly subscription tiers that allow patients to choose the products and services they’d like to purchase on a regular basis.

The cost drivers will be the overhead costs required in order to staff a wellness center. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

Financial Projections

Income statement, balance sheet, cash flow statement, wellness center business plan faqs, what is a wellness center business plan.

A wellness center business plan is a plan to start and/or grow your wellness center business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Wellness Center business plan using our Wellness Center Business Plan Template here .

What are the Main Types of Wellness Centers?

There are a number of different kinds of wellness centers , some examples include: Day, Destination, and Medical Wellness Center.

How Do You Get Funding for Your Wellness Center Business Plan?

Wellness Centers are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Wellness Center Business?

Starting a wellness center business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Wellness Center Business Plan - The first step in starting a business is to create a detailed wellness center business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your wellness center business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your wellness center business is in compliance with local laws.

3. Register Your Wellness Center Business - Once you have chosen a legal structure, the next step is to register your wellness center business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your wellness center business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Wellness Center Equipment & Supplies - In order to start your wellness center business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your wellness center business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful wellness center business:

© 2023

business plan for health products

Healthcare business plan

Create a business plan for a medical office or any healthcare startup using this detailed business plan template. This healthcare business plan template includes an executive summary, company overview, market analysis, financial plan, and more. This accessible healthcare business plan template includes step-by-step instructions.

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Healthcare Software Company

Healthcare Software Company 754


689 Wyoming Avenue Louisville, Kentucky 40202

QuikMedInfo has developed a targeted, well-thought-out marketing plan providing a clear road map of how it will secure clients and allied business partners for its innovative, highly useful healthcare software targeting hospitals. This plan was provided by Trinity Capital.


Company summary, market analysis summary.


Financial plan.

The QuikMedInfo product is an application that allows numerous databases to completely interface with each other without changing hardware or software between parties. The product can work over a secured Virtual Private Network (VPN) and be encrypted at 128 bits. The product developers have concentrated on the medical community as end users—specifically, hospitals. The next logical market would be the health insurance industry.

QuikMedInfo is an innovative new solution in the healthcare industry, bringing a common client presentation to users of disparate systems. Multiple hospital information systems can now be accessed, within or outside of the immediate hospital environment, with a Java-based "common client presentation." QuikMedInfo provides a graphical front end for the user with any of the popular Internet Web browsers, such has Netscape and Microsoft Explorer.

The product is currently developed in seven different modules. As an Intranet application solution, the modules are required to run on a robust server. The installed modules are Admissions, Transcriptions, Laboratory, Imaging, and Pharmacy. Future modules are in development as needed in the marketplace. Home Health and Physician management modules are complete but not installed. Currently five modules are successfully operating in six different environments.

All these modules allow credentialed QuikMedInfo users to access all of the applications via the Internet or through the VPN Intranet. The Admissions application allows users to share data between healthcare organizations, displays information about the patient, and handles patient transactions—including pre-admissions, registration, and admissions. The Transcriptions section creates new transcriptions; doctors now can sign transcriptions electronically, list patient and physician transcriptions, view transcription details, and format all the views. The Laboratory application entails ordering lab tests, viewing results and comments, sorts test criteria, and other laboratory functions. The Imaging module digitizes images such as licensees, photos for I.D. purposes, EKGs, CAT scans, MRIs, and pulmonary functions tests. The Pharmacy module lists medications prescribed for any given patient, views medication details, references patient allergies, and can be linked to all area pharmacies in addition to the hospital pharmacy.

The product will be leased, rented, and sold to potential users. Leasing and renting the product will facilitate faster sales in the hospital environment. Because the full price of the product can reach $350,000, many hospitals must postpone decisions until another budget year. Leasing and/or renting will allow the hospital to make decisions sooner. Also, approaching physicians first in order to sell the hospital on the needs of the physicians will allow for easier access to information.

The hospital industry relies on a multitude of different systems to house the databases they access. These systems are provided by different vendors and do not share data. When physicians and hospital staff need to access data they are required to sign in and out of these multiple databases to complete a transaction. This is very inefficient, and a significant issue for hospitals that find themselves in an environment of decreasing reimbursement from government programs and managed care companies.

The developer of the QuikMedInfo application solution is Best Source Solutions, Inc. QuikMedInfo is a new entity being formed to market the QuikMedInfo product.

Best Midwest Solutions, Inc. (BMS), a value-added reseller of computer hardware and software, worked with a community hospital to find a solution to their problem with the inefficiency of dealing with disparate systems. The result of almost three years of effort and $2.2 million of investment is this software program. It provides a web-enabled interface capable of linking all of a hospital's disparate systems to a single, common view which is extremely simple and easy to use. While the development of the product has been focused on the healthcare industry, the technology is applicable to any industry that uses many different systems.

BMS has sold and installed six units at customer sites. (All of them are very happy customers willing to serve as references.) Four of the installations are healthcare related, and one is in the communications industry. Over the past year the BMS sales staff has spent its time educating the hospital industry about the product and waiting for the hospitals to obtain approval for the capital expenditure. As a result of these efforts, BMS currently has a list of 13 qualified clients representing potential revenue in excess of $3 million. Management estimates the probability of closing these sales at between 30% and 90%.

BMS lacks sufficient capital to effectively penetrate the hospital market nationally. In addition, a more complete and robust management team will fully enable the execution of the plan.

QuikMedInfo is seeking $3 to $6 million in investment. $3 million would be utilized under the guidelines of this plan to expand market share via marketing and in working capital to expand personnel and operational needs.

Successful penetration of the hospital market in years one, two, and three will enable the company to become profitable. Projected profitability occurs at 24 months. Cash flow from the initial investment should be sufficient to execute the plan through the first three years. Any shortfalls should be correctable by commercial banking options. Years four and five call for full national roll out and entry into other vertical markets, primarily health insurance. Management forecasts a $40 million company by year five. A bank line of $1.5 million and a mezzanine debt/equity infusion of $5 million (in year four) will finance the growth and potentially lead to an acquisition or an IPO.

As is characteristic of the software industry, margins are high and cash flow and accumulation are excellent.

Fiscal year 2000 begins in September 1999.

The following illustrates a summary of our financial projections:

Healthcare Software Company

Our mission is to provide physicians and hospital staff access to critical and multiple sources of data, thereby improving their efficiency in caring for patients. In turn, this will improve patient care, increase patient satisfaction, and save time and operating costs.

Keys to Success

The keys to our success are:

QuikMedInfo will acquire the rights to the QuikMedInfo code from Empire System, Inc. (Empire), a value-added reseller of hardware and software products. Empire was started in 1990 and has current revenues of $32 million. Empire is located in Lexington, Kentucky. Empire began the development of this software product because of the need by hospitals and physicians to have easier access to data from disparate systems. Empire has invested $2.2 million and 2 years in the development of the product, QuikMedInfo. QuikMedInfo will provide Intranet/Internet applications to the healthcare industry to enhance access to the industry's disparate legacy systems. This access to critical data is vitally important to patient care and satisfaction as well as to physician and staff productivity.

Company Ownership

QuikMedInfo is located in Louisville, Kentucky. It is owned currently 50% by Rachel Brown and 50% by Ed Roost.

The following summarizes the start-up requirements. Primary requirements are working capital. $3 million is being sought for the purposes of this plan.

Start-up Summary

Healthcare Software Company

Company Locations and Facilities

It is expected that QuikMedInfo will be located in Louisville, Kentucky. However, Lexington also may be a future potential headquarters.

QuikMedInfo will sell software and installation services related to that software. The company also will sell professional consulting services that include the design, writing, and implementing of custom screens, file interfaces, and administrative security features related to the software product. The software runs on a variety of computer servers. The software is written in 100% Java, which is supported on many hardware servers and is scaleable from the smallest of servers to the largest of systems.

Product Description

QuikMedInfo sells software for hospitals, physicians, payors, and related entities.

Software is sold with a base server license, seats, and applicable modules.

The software will interface across all disparate hardware and software systems, using the Internet language of Java (licensed by Sun Micro Systems, Inc.). No additional purchase of hardware is required to run the software.

Professional services are provided for customization of the software.

Training and support services are provided as a billable item.

The product is currently developed in seven different modules. As an Intranet application solution, the modules are required to run on a robust server. The installed modules are Admissions, Transcriptions, Laboratory, Imaging, and Pharmacy. Future modules are in development as needed in the market place. Home Health and Physician management modules are complete but not installed. Currently five modules are successfully operating in six different environments.

The QuikMedInfo System

Competitive Comparison

The QuikMedInfo software system has been in the disparate system market for nearly three years. Originally there was very limited competition. We fully expect the competition to increase as Java becomes better known and last year's Y2K issues free up budgets in hospitals, thereby making the sale of the product easier. Presently, our competitors include interface engine companies that are developing web front-end applications, internal application development from a hospital's own staff, and hospital information systems companies who are web enabling their own applications.

However, we have several major advantages that will enhance our chance of success. These are:

Competitors we are aware of include:

Note: Inter Fuse M.D. and a company named DEF have recently merged. This has created a powerful economic entity. However, our management believes that the scope of their focus is much too broad to mount a challenge in our specific niche. We expect to be able to deliver a better product.

Other competitors may be terminal emulations over the web. We do not see these as direct competition. The key to our market success is being able to provide access to the most important 20% of the critical clinical information to 80% of the users in the hospital market. Often times the data exists but it is neither available nor accessible. We offer a solution to bring this data together in a secure auditable manner for these users.

Sales Literature

Most of our marketing literature has been developed. Our collateral materials include:

QuikMedInfo will own the sole rights to the software product. This software is copyrighted. The copyright will have to be updated from time to time to protect our investments in the code.

The QuikMedInfo software is a 100% Java-compliant application. Java is the single best software designed to write applications for the World Wide Web. It is an object-oriented programming language which allows for extremely fast application development and customization. One of the advantages of Java is its wide support from a variety of hardware manufacturers. Although, other programming languages may appear, such as Microsoft's XML, we have been consistently satisfied with Java's performance. Another reason for choosing Java was the flexibility it provides by running on many hardware vendors' platforms. This provides our customers with the security of scaleable systems. Microsoft's XML only runs on an NT server and thus is limited to the PC marketplace. Java runs on personal computers, midrange systems, and mainframes.

Future Products

Our future includes taking the existing software to complimentary industries, such as payors. The software can be used by any industry desiring to link disparate systems; e.g., the telecommunication industry desiring to link pager, mobile telephone, e-mail and other systems. Also, as installations continue, we will build a library of interfaces that make installations and connectivity easier. New applications are to be added annually to include more connectivity to disparate applications. We expect to sell these new and additional modules for $25,000 to $50,000 each.

The focus of our plan is to develop the medical and hospital application first, then penetrate the health insurance vertical market. These other applications above have the potential to generate many times the revenue projected in the focus of this plan. That may be a strategic reason for an IPO.

As any new product is brought to the marketplace it will gain the attention first of the early adopters, then the primary market, and then the market laggers. Our primary target market consists of community-based hospitals with 200 or more beds. When we tried marketing to large chain hospitals such as Ft. Benson and Diamond, we discovered these organizations are extremely interested in the product but bogged down by their own bureaucracies. The same is true for large HIS application vendors. Therefore, we will stay focused on the smaller and independent hospitals that can make a quicker decision.

Presently, there are about 5,057 hospitals in the United States. Our target market is the "200 bed and larger" facilities, of which there are 1,486. The total target market potential represents $371,500,000. Of the 1,486 facilities, we plan to sell to 300 facilities over the first five years, which represents 20% of our target market. With an average complete sale of $250,000 this would represent $75,000,000 in revenue over five years.

It is estimated that fewer than 10% of these sales will be for cash. Third-party leasing is expected to comprise the majority of our business.

Revenues in our five-year plan above the $75,000,000 million total are the result of additional vertical markets initially penetrated with modest market share in years four and five.

Our experience has been that it takes about a year for a hospital to make a decision. Our marketing efforts of last year are paying off this year as we close the identified opportunities. Our objective is to keep the pipeline full and have regular closings. Many of the existing customers are already returning for additional customization. We expect our revenues to grow at a minimum of 50% to 100% for the next several years.

Market Segmentation

Our market segmentation includes three primary areas:

Community and regional hospitals are searching for ways to improve their back office operations and to improve relationships with physicians by providing them better access to patient information.

Third-party administrators can use the software to provide remote access to authorizations, eligibility, claims status, referrals, etc. This information also can be shared with hospitals who have the software and can enable electronic pre-admissions.

Payors can use the software to offload heavily staffed call centers by allowing physicians direct access to eligibility, claim status, etc. Payors can in essence extend their operational hours by allowing direct access to data. They can use this program with employers to provide benefit plan details, account status, explanation of benefits, etc.

State agencies funded by the federal government can purchase our "out of the box" application for certain mandated programs.

Other potential markets include any industry with disparate systems that could benefit from a consolidated view of data. An example of this would be the telecommunications industry which may have systems related to their different products. By using our product, you could view on one display a customer's information coming from providers of email services, voice mail, local telephone service, long distance telephone service, paging services, cellular services, cable television, Internet services, etc.

Healthcare Software Company

Target Market Segment Strategy

Our target market is the hospital industry where it is very common to find disparate systems. Hospitals typically take one year to eighteen months to make a decision. Providing flexible pricing and purchasing options, which might avoid the need to go through the capital budgeting process, should help shorten this cycle. Also, hospitals do not like to write their own systems and would rather use applications to achieve their needs.

Secondary markets are the insurance payors and third-party administrators that work in the healthcare field. They are interested in providing physicians with access to patient data, such as eligibility, and with the ability to electronically obtain authorizations, referrals, etc. These companies typically make a decision very quickly, and their services may inter-relate with the hospitals to whom and with whom they market.

Once these industries have been established using our product, we would broaden our base to begin to penetrate other industries where disparate systems exist.

Market Needs

The target market is seeking simplicity of its processes, increased productivity of its staff and increased patient satisfaction. Areas of concern are the physician's time to access information, access to proper data from insurance companies, scheduling lab tests, and many back office and/or administrative procedures. Our niche is to bring the needed information from several disparate systems to a single web browser.

An example of this daily frustration is as follows. A physician wants to retrieve the lab test for a patient. Depending on the lab test results, the physician may change the patient's medication and notify the patient of the change. The physician or someone on the staff would access the lab system; complete a sign-in with a password; conduct a patient search; select a medical record, a specific encounter, or visit; and retrieve the latest lab result. Upon finding the result, the physician would then sign out of the lab system and enter into the pharmacy system. The physician would use a second sign-in and a second password, conduct another patient search, locate the visit that has the medication, review, and submit a change to the pharmacist and sign out of that system. The physician would then sign on a third time, with a third password, conduct another patient search to get the appropriate patient demographics to notify them of the lab results and the change of medication. None of the above systems look, feel, or act similarly.

With our software, the physician can retrieve all the above information with one sign-on, one password, and one patient search.

From our visits in many hospitals the 80/20 rule exists: 80% of the people need about 20% of the data. Today that information is not easily available to them. Our product solves that dilemma.

How an M.D. could use the system was discussed during a physician advisory board meeting:

1. A radiologist:

2. A surgeon:

3. An EE&T:

4. An IPA (Independent Physicians Association):

How a hospital could use the system:

Market Trends

The trends in this industry include consolidation of facilities, competition for physician allegiance, and the need to improve efficiencies with the decreasing reimbursement rates from government and managed care companies. The World Wide Web is going to be the mechanism by which most information will be implemented and routed. Having a tool that acts as a manager of all those possible connections is important and gives the hospitals a great amount of freedom for their future. We feel this trend will only strengthen over the next several years.

The trend for this "connection" will be a vital role as companies race to get to the market. As we build our connections and libraries of interfaces we will become a dominant player in the marketplace.

Presently, the major hospital information vendors are trying to convince hospitals to consolidate all systems to one vendor. If the vendors were successful in creating this trend, then they could provide a web enablement to their different systems. However, there is significant resistance by the hospitals who do not want to be tied to one vendor. First, the hospital would have to discard millions of dollars already spent for information systems. Secondly, the market is dynamic and no one vendor has successfully captured all areas of a hospital sufficiently so that the hospital has no other needs. The closest vendor to achieving this may be Tech5Health which does offer a proprietary, one-source solution.

It appears that most hospitals want the option to purchase the "best of breed" systems and they will need a system to connect their disparate systems. The hospitals will see a product that allows them to maintain their current system investments, purchase new "best of breed" systems but still maintain autonomy by having a common front end. They have the freedom to change as little or as frequently as their business model requires.

The product works especially well for consolidation of hospitals as well, because the common front end can work with entirely two different hospital information systems. This can provide millions of dollars in savings.

Market Growth

This market will have a 30% or higher growth rate. There is no question that web business or "e-business" (as some companies have phrased it) will be the dominant force over the next 10 years. Recent reports by Roger Alison, industry analyst, illustrate huge paybacks for customers implementing this technology.

Industry Analysis

Common front-end systems are a rather new segment in the industry. As systems have become more complex, users are looking for simple ways to access data. We have found the Pareto rule to be true in the healthcare market: 80% of the people only need about 20% of the data. It is unfortunate that the 20% is across many systems and thus difficult to locate. A review of the industry would put us in a developing category called Universal Desktops or Single Sign-On Solutions.

The Healthcare Community

Healthcare has traditionally been a system of distinct parties who must work together and form a service community. The parties include M.D.s, M.D. office staff, hospitals, surgical centers, diagnostic centers, home health agencies, nursing homes, insurance companies, federal and state government, patients, and ancillary service providers. Patient and their information are the common thread. Each party creates unique information for and about the patient and yet has need of some identical information. The concept of using someone else's information without physical presence in the originating facility is a dim hope only. Within each party's organization there exists a microcosm of the situation existing between parties. As an example, a hospital may have data in a billing system, a dictation system, a laboratory system, an X-ray system and a pharmacy system. The means of gathering, storing, and processing information is different for each party and, despite good intentions, multiple data systems present a very steep learning curve. A busy M.D. will likely select those which they must use (dictation and office billing) and ignore the rest.

M.D.s are the mobile link in that they move between the parties and utilize the bulk of the information. By nature, patients in a hospital are unable to travel to an office. In addition there are many times an M.D. may not be near the data they need to answer an "on call" emergency situation without undue travel and effort.

A Brief Functional Overview of the Medical Community

Very high-tech treatment means:

Industry Participants

Participants in this industry include the following:

Distribution Patterns

The product will be sold primarily via a direct sales force. We currently have a few distributors who are excited about the product and have specific opportunities to market the product. These distributors are given a discount that ranges from 30% to 40%, depending upon volume. We also have an OEM agreement that allows the vendor to incorporate the product into their software offerings. This agreement requires an inventory purchase and the company receives payment for each time the product is sold. Both distributors and OEM companies are required to identify the end user to our company for record purposes and quality assurance.

Sales Strategies / Channels

The company's goal is to infiltrate QuikMedInfo into the heart of the healthcare industry. The objective is for QuikMedInfo to be accepted as the standard Intranet application solution that hospitals, doctors, clinics, pharmacies, and laboratories use to obtain necessary patient data. There are three channels defined below to assist us in achieving this goal.

1. Distributors — There are five categories for distributors. These categories are: HIS Vendors (provide legacy-based applications to the healthcare industry). Interface Engine Vendors such as CAI, STC, HCI, and Hublink (provide communication interfaces between HIS vendor legacy applications to transmit data from one HIS vendor application to another). Healthcare industry related consulting firms (providing integration services to hospital organizations). Value Added Resellers (selling healthcare-related solutions to hospital organizations). Computer and Communication Hardware Vendors (provide computer and communication software, hardware, and services to the healthcare industry).

This group of channels, organized to create higher net revenue, will be resellers of QuikMedInfo. They will assist in marketing and selling QuikMedInfo to local hospitals, clinics, pharmacies, and laboratories that desire to take advantage of the benefits QuikMedInfo has to offer. Distributors will receive commissions based on the level of support provided for every sale they complete. The advantages of utilizing distributors is that they are already providing solutions to the primary target market and can easily penetrate these organizations to provide QuikMedInfo as their Intranet application solution of choice. The cost to support these channels is minimal for the amount of return for immediate market exposure they will provide for QuikMedInfo.

2. Independent Representatives — Independent Representatives are sales people under contract to market QuikMedInfo. They are extensions of the direct sales team, with the added advantage of reaching clients in various service areas that the direct sales team cannot or have not approached. They receive no salary and earn only from commission based on the level of support provided for every sale they complete. Like distributors, the advantages of utilizing independent representatives is that they are already providing solutions to our primary target market and can easily penetrate these organizations to provide QuikMedInfo as their intranet application solution of choice. The cost to support this channel is minimal for the amount of return for immediate market exposure they will provide for QuikMedInfo. 3. Direct Sales — Sales are done directly with hospitals, doctors, clinics, pharmacies, and laboratories utilizing company internal sales representatives. As opposed to distributor and independent representative sales, direct sales do not involve middlemen. Hospitals purchase QuikMedInfo from the direct sales team. The team identifies potential customers, contacts those customers directly, and sells the product to them firsthand. As with arrangements involving distributors and independent representatives, direct sales involve educating the industry about QuikMedInfo—therefore increasing QuikMedInfo's exposure.

Competition and Buying Patterns

The hospital market purchases software it deems as having a strong return on investment. Also, the hospitals tend to purchase applications other hospitals have been successful installing. Most sales to hospitals take time, plus involve patience and working with many different persons within the hospital. Reference selling is important. This type of solution to hospitals is very new and has been ahead of its time. Much of the selling in the past year has been educational, positioning hospitals to use the technology. The market is now developing at a much quicker pace.

Hospitals choose their vendor based upon value of the application, price and ROI, and the quality of the vendor (reputation). Image and visibility are important to gain mindshare and the perception of being a national vendor. However, nothing beats reference selling and recommendations from customers. All of our current customers have agreed to be references.

Main Competitors

Our main competition comes from interface engine companies, hospital information systems vendors, and other web providers.

Of the original four primary interface engine companies only two remain. The original four included CAI, HCI, Hublink, and STC. CAI merged with Neon Systems. Hublink was purchased by HCI and changed their name to HIE. STC remains one of the oldest and established firms in their industry segment.

CAI developed a product about the same time as this product. Their product is called Web Connect and is similar in function to this product. They are at about the same stage of development as our company. CAI was purchased by Whiteash Systems, and Whiteash recently had a very successful IPO.

HIE has maintained its focus on being an interface engine company and has moved from the health market to other industries such as finance, and manufacturing. The purpose of an interface engine is to simply take data for system A and place it on system B, C, etc. This is accomplished by hidden coding and so is transparent to a user of an application. An example of this in the healthcare market is a patient updating his phone number when picking up a prescription. The interface engine would place the changed phone number in the patient demographics system, the lab system, etc.

STC is a well-entrenched interface engine company. STC was previously embedded into the Coopers LPMN product and many sales were achieved with little effort. STC had planned an IPO but backed off when they lost the Douglas contract. Recently, STC has begun a web implementation that is to rival this product. For one year they have promised a few customers sweetheart deals to wait on their product. It is still not marketable but is still being developed. Due to their presence and install base they may be successful in getting their customers to delay decisions.

Hospital information systems companies are racing to get their solutions web enabled. The only focus these vendors have is with their own products. None of these vendors have an interest in developing a cross-vendor web solution. The comment is "Why would I web enable my competitor?" This solidifies the niche that our product addresses.

Some of these web solution providers include Core Change, Healtheon, Envoy, and IBM. CoreChange addresses a single sign-on approach to many systems, Healtheon is extending payor information such as eligibility, authorization, claim status, etc. IBM is offering a repository that can extend results to the web. Our product has the design to do all the above and more. It is robust but also can be sold as a minimized solution.

Other web providers have and will continue to appear. These vendors range from terminal emulations to web content providers. Nathan Bedford Forest, in speaking of his success as a General, stated his key to winning the battle was "the firstest with the mostest!" Yes, it is poor grammar; but his point is the first to the market wins mindshare, establishes a brand, and becomes the incumbent player. This product is well positioned to be the industry leader.


Our strategy for this market is straightforward:

Strategy Pyramids

To achieve a quick referable install base, our main tactic is to call the hospitals where we have information system interfaces already completed. This provides us an extremely quick installation and another reference site. It meets our objective of building an install base. This market can be identified through user groups. Our specific programs include mailing to these hospitals, Internet demonstrations of the product, direct selling, and attending trade shows.

Our next strategy is to build upon our successes by marketing to hospitals in the immediate vicinity of the install base. Successful references are great selling tools and successful installations are great sites for other nearby hospitals to visit. Physicians can be a great asset by pressing other providers to extend to them the same information services they are receiving from a local hospital. Our specific program is to call and escort neighboring facilities to visit the installation site. Also, having these references document their "return on investment" aids the selling and decision cycle.

Quick and successful installations are the key to meeting our business plan. By carefully choosing our installs, we will avoid a developing trap by interfacing to a difficult closed-in system. Our specific plan to avoid this is to partner with other solution providers who have expertise in areas we do not, and allow them to sell and install the product.

Value Proposition

Our value proposition is straightforward. The product solution provides daily users of information a highly improved delivery mechanism. This delivery includes the following:

As an example of value, physicians pay a monthly fee for a pager that only instructs them to call a number. For an equivalent monthly fee, our product provides the physician with immediate access to information that allows him to care for the patient, make decisions, and perform billable work.

Competitive Edge

Our competitive edge exists because we have chosen the right technologies, have been early to the market, and have a plan to quickly establish an install base. This install base will continue to grow because the product itself can be the front end to a multitude of functions. The product is not canned; thus, the user can continue to develop and enable new applications. The single web session can be used for hospital information, payor information, employee benefit sections, and links to other web site and content areas such as MedScape. Existing customers have already returned to ask for new links, new connections, and new modules.

Our competitive edge will be maintained as interfaces to various legacy systems are built into a library. This significantly improves the deployment time for a user. Also, we have established a vendor certification program allowing vendors to forward to us pre-releases of their software to insure compatibility.

Our competitive advantage also will be maintained due to the daily use of the product by our customers, and the difficulty to undo the connections and replace the access to many systems. Additionally, we are in a strong competitive position because information systems vendors are not focused on building web-enabled interfaces for a cross vendor market.

Others who will enter this market will face vigorous competition from us.

Marketing Strategy

The marketing strategy is the core of the main strategy:

Positioning Statement

For medical and administrative professionals who need immediate access to patient information from a variety of systems, this product delivers that information to them from one single source, anywhere, anytime. Unlike their present environment, that may require many attempts and many different computer skills, this product provides all pertinent information with one click.

Pricing Strategy

The price of the product is $75,000 for the server software and $595.00 per user of the software. User prices are then discounted based upon the volume of users. In addition to the software, we charge for interface programming, customization of screen design, installation, training, and maintenance of the product. These are billed at $180 per hour or $1,500 a day.

We provide the necessary hardware if the customer desires us to fulfill that need.

Customers may ask us to perform a prototype of the application. We do these prototypes at our normal consulting rates mentioned above.

To help hospitals make a quick decision we have a rental model of the software. This rental model is based upon the following model:

Healthcare Software Company

Minimum length of time is 36 months. This model includes maintenance. Hospitals are more flexible with an operating budget than a capital budget. In case the hospital would like to rent and convert later to a purchase model, we accrue a percentage of the rental towards the purchase price.

Promotion Strategy

Distribution Strategy

We have signed agreements with distributors who have products complementary to our own. They already have client relationships and can easily add this product in their product offerings. Distributors have an annual quota and percentage discounts related to their self sufficiency in selling the product.

There are distributors that would like to embed the product in their software—the industry terms that to be "OEMing" (other equipment manufacturer) the product. These distributors receive a much higher discount but are required to purchase substantial inventory and offer the first level of customer support.

Marketing Programs

Our direct sales force is currently comprised of two marketing representatives, one for the eastern half of the United States and the other for the western half.

Both sales people have an annual objective of five hospitals to be installed. They are each responsible for calling the customer base, identifying and qualifying prospects, demonstrating the product, and closing the sale. They are both responsible for having $1.5 million of qualified opportunity defined at any one time. They are to make 100 calls a week and update those calls in a customer database. They are responsible for managing their own travel budget and expenses. They are not allowed to travel to a healthcare facility until all appropriate people are available for the meeting. This has worked well in the past and eliminated flights to interested but unqualified prospects.

Direct sales is very important as the sales cycle is long in the healthcare market. The direct selling effort is increased by visiting existing prospects and finding new prospects at trade shows.

Telesales coordinates all mailings to customers. These mailings include marketing material, product newsletters and press releases. Some type of literature is sent every six weeks to the customer and prospect database. All mailings are carefully recorded and response to those mailings is recorded.

Ed Roost of Best Midwest Solutions, Inc. already travels nationally and calls upon prospects with the representatives. Rachel Brown also visits with other CEOs to build strategic relationships.

Sales Strategy

Our sales strategy is to prospect our target market for potential customers. Upon finding customers that have a need, we offer a specific solution to that need. We follow our prospecting efforts with an online, Internet demonstration of the product. After successfully demonstrating the product, we schedule an onsite visit to the healthcare facility when all pertinent people can attend the meeting. We have found that physicians are our greatest advocate and we strive to make sure that they are a part of our onsite meeting. After a successful onsite presentation, we offer to perform a site survey that is billable. The site survey results in a working document defines the environment, the complexities, similarities, interfacing requirements and any customization required. From the site survey, we build a proposal that lists the price of the server, the seat cost based on the number of users, the interfacing costs, the customization programming needed, installation, training, etc. We work with the customer to review the findings and make certain all areas have been addressed.

Upon acceptance of the proposal the customer is provided with license agreements, maintenance agreements, and a Professional Services Agreement with specific work exhibits that detail the customization and interface programming costs. Customers are then entered into our customer support system that tracks the release level of software, technical contacts, all support calls, and repairs.

Sales Analysis

The long-range goal is to develop QuikMedInfo as an enterprise Intranet application solution for the healthcare industry and utilize the Java-based server technology to provide a number of Intranet application solutions to all types of industries. This goal will be achieved by the success of the introductory two-year plan. In addition, version upgrades will be based on seat licenses and maintenance.

The long-range plan is based on a successful introduction of QuikMedInfo to the healthcare industry. There will be a feasible strategy to successfully launch QuikMedInfo and establish brand recognition for a new line of Intranet application solutions and meet the two-year sales goals.

The sales will be derived from hospitals through locally controlled physician advisory boards. QuikMedInfo will be comprised of a server and seven different modules: Admissions, Transcriptions, Laboratory, Imaging, Pharmacy, Home Health, and Physician Management. Revenues also will be generated from computer and network hardware, server, and seat licenses, installation and training of these products to new hospital installations.

In the healthcare industry, there are 5,057 hospitals, representing the market in which the company has targeted. The company's target market is hospitals with over 200 beds, which is currently 1,486. Of these 1,486 hospitals, the company anticipates being the market leader and obtaining 20% of this market share. This will equate to 300 hospital installations in the first two years.

Based on effective marketing and sales in the first two years the company will position QuikMedInfo as a long-term solution for data resource gathering in the healthcare industry.

Sales Forecast

The following is our list of potential sales:

Healthcare Software Company

The expected three-year sales forecast is illustrated and more carefully broken down in its appropriate table.

Healthcare Software Company

Sales Programs

Our sales programs are via direct mail and trade shows.

Via our direct mail campaign we send letters and success stories to our target market. These letters may include recent press releases, editorials featuring our product, along with our marketing literature. Mailings include the invitation for a free demo of the product over the Internet. The mailings also may be oriented towards an upcoming trade show that specifically states our booth and the marketing representatives to work with for their particular area. The sales reps are given this information for follow up and to personally invite the prospects and customers.

Educational seminars and end user groups are another avenue we use to educate customers on our technology, services, and expertise. Educational seminars can often be funded by the various professional associations. End user groups provide a wonderful opportunity to market and sell the product and its benefits.

Strategic Alliances

Strategic alliances already in progress include:

Skyenergy, Inc., a wholly owned subsidiary of Northwest Power and Light (a major regional utility company), specializes in application hosting and data transport over its eight-state fiber-optic network. It has shown great interest in the purchase of licensees of the product. Skyenergy currently has a contract with Blue Cross/Blue Shield of Kentucky to provide services to all BC's providers. The QuikMedInfo product can instantly be used in this environment. Timbute Corp., a potential joint venture partner, is a large player in medical diagnostic imaging. It already has distribution of its platform, and a substantial revenue and client base. We would be an add-in service. Sun Microsystems has already agreed to do maintenance and support where required. They have complete diligent knowledge of the product.

No agreements have been signed to date. Many other strategic potential partners exist.

Our most significant milestone to date? Our "installed customers." They are very happy with the QuikMedInfo product and are excellent references. They include:

Thomas Medical Center (268 beds) - Installed August 1998

Thomas is the original customer that conceived the need for such a product and offered its employees and staff to assist in the initial requirements documentation. Thomas presently uses the product extensively in medical records. Thomas uses the product for one view of patient demographics, document images, and pharmacy. The customer is initiating the laboratory views of the product and will follow shortly with transcriptions.

Trinity 7 Communications - Installed January 1997

Trinity 7 Communications is a provider of telecommunication services. The company offers paging, cellular, voice mail, email, and long distance products. These services may be provided by many vendors. The software product allows them one common view to these different providers and their different systems.

Michelin Wool - Installed February 1998

Michelin Wool is one of the nation's largest third-party administrators and managed care companies. It offers physician management services as well. Michelin Wool uses the product to allow physicians access over the Internet for eligibility, authorizations, claims status, etc. Michelin has purchased a tool kit and is developing some of its own designs.

State of Oregon - Installed March 1999

The state of Oregon has purchased the product to use in a federal and state program called CHIPs (Childrens' Health Insurance Program). This product allows a provider to check a child's eligibility with the primary payors in the state prior to rendering services and before applying the charges to the state fund. This is a highly advanced application as the entire transmissions are secure and encrypted from all aspects.

Greene Medical Center of Titan, Oregon - Installed April 1999

Greene Medical Center uses the product to interface to several HBOC systems. The company retrieves information from lab, patient demographics, pharmacy, and is developing an interface for transcriptions. This customer may purchase a tool kit to develop some of its own applications.

Other forthcoming milestones are summarized in the following table:

Healthcare Software Company

The new management team will be comprised of individuals who are currently with Empire Systems or other respected corporate leaders in the industry. They already understand the market and have been responsible for product development and sales penetration to date. Management bios follow.

Organizational Structure

Our organization structure is divided into three functional areas:

1. Product development and support — The role of this function is to continue to develop the product and new modules, write the appropriate interfaces and customized programs and offer maintenance for the product. 2. Sales and marketing — The role of sales and marketing is to market the product, educate customers, and build a reference base of customers. Sales and marketing conducts telesales, direct sales, etc. 3. General administration — This group manages the sales, invoicing, collection, and accounting of the group. It provides oversight of the entire organization.

Management Team

The management team includes the following individuals. Ed Roost will serve as CEO either on an interim or permanent basis. The potential exists in the personnel forecast to recruit and add a CEO.

Senior Executive Vice President—Rachel Brown is the co-founder of Best Source Solutions, Inc. She is a 1980 graduate of the University of Cincinnati (Accounting degree). She worked for Arthur Anderson in Denver and then worked for IBM from 1980 to 1987, leaving the company as a marketing manager in Point Kenton, Ohio. She was responsible for such accounts as General Electric, Great Lakes Banking, and other major accounts. Rachel became Senior Vice President of Memblast in Cincinnati, Ohio, and was responsible for computer equipment brokerage and leasing. She purchased an interest in a small software company to bring it home to Louisville, Kentucky. In 1990 she started Best Source Solutions and is responsible for the day-to-day sales of that company. Rachel will continue to run Best Source Solutions. Executive Vice President - Ed Roost is the current President of Empire Systems, Inc. He has 18 years of experience in sales and marketing including six years in sales with IBM. He and his partner Rachel Brown began Empire five years ago and have built a profitable company with $45 million in annual revenues. Ed has the most day-to-day experience and working knowledge of the QuikMedInfo software. He has been responsible for all current sales and prospects. Vice President of Sales - Nicholas DiMuzzio brings eight years of marketing experience to the healthcare area. Prior to becoming Vice President of Sales, he represented Redheart, a surgical supply vendor for acute care hospitals. DiMuzzio's experience also includes six years with American Health Buys where his duties included project engineering and contract negotiations with sales and marketing for their large buying groups. Vice President of System Design - Monica Wren is one of the key developers of the product. She brings 13 years of programming, design, development, support, integration, implementation, and project management experience to the company. Prior to her career at Empire she worked in development for IBM, Richards Computer, and Mileage H. Research Corporation. Vice President of Project Management - Henry Nerth is another key developer of the product. He brings 14 years of programming, design, development, support, integration, implementation, and project management experience to the company. Prior to his career at Empire he worked in development for Richards Computer and Mileage H. Research Corporation. Application Developer - Ben Hogan has 11 years' experience in programming. His core talents lie in the area of application design and implementation in third-generation languages such as C, C++, and Java. Hogan also has experience in the management of large development projects, most recently the migration of a data warehousing application written in C to the IBM AS/400.

Management Team Gaps

There is a gap for a permanent CFO. It is expected that a temporary CFO will be utilized in year one and year two. A controller needs to be recruited, as well as additional sales people and administrative staff.

Personnel Plan

The company has its personnel needs well defined to handle expected growth.

Healthcare Software Company

It is expected that the initial $3 million investment will be sufficient for the first three years of this plan. Revenues should be sufficient to allow for a bank line to cover small shortfalls. Major ramp-up occurs in year four with a mezzanine capitalization of debt/equity combined with a $1.5 million bank line. Such a move could occur earlier if the situation permits. The nature of the software business is high margin and cash flow which also could permit growth without substantial equity dilution.

Important Assumptions

It is assumed that a bank line would be around 8% while a coupon on a mezzanine structure would be at 13% and could include warrants and/or an equity component. It is assumed that 90% of sales will be on credit via lease. If these are sold through a third party lessor, cash flow would accelerate. If QuikMedInfo should become its own lessor or offer access via the web, cash flow would spread more evenly.

For the purpose of this plan third-party leasing is the basis for projected revenues.

Other assumptions follow:

Healthcare Software Company

Key Financial Indicators

The most significant indicator is our gross margin. These exceed 80%. Cost of product is primarily packaging, pressing disks, manuals, and potential customer discounts. As long as margins are maintained there will be substantial margin for error in other plan aspects.

Healthcare Software Company

At year one levels of burn rate, included fixed overheads, and full salaries, the company can sustain operation with just more than one installation per month.

Profit and Loss (Income Statement)

Projected profit and loss.

The company turns profitable at 24 months.

Healthcare Software Company

Proforma Cash Flow

Projected cash flow.

Cash flow remains positive with the only potential exposure in year two. At that point sales shortfalls could deplete working capital. However, cut-backs also would be possible to the break-even levels of year one if required.

Healthcare Software Company

Owner's equity skyrockets in years three, four, and five.

Projected Balance Sheet

Proforma balance sheet.

Healthcare Software Company

Business Ratios

Return on equity potential certainly warrants early stage investment.

Ratio Analysis

Healthcare Software Company

Long-term Plan

There is significant potential for QuikMedInfo to become a dominant industry participant.

Healthcare Software Company

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Mindbody Template

Business plan template for wellness business owners.

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A business plan is a valuable tool as you set out to start your new integrative health business. Writing out your company’s goals and strategy to achieve those goals is an important exercise. In creating your business plan, you will come across competitive advantages you didn’t realize you had or obstacles that you’ll be pleased you recognized before your doors opened. Writing a business plan is a chance to outline how you want to run your business, and it can keep you accountable down the road. Don’t know how to begin? We’ve got an easy template for you. We’ve outlined all the essentials; all you need to do is fill out your wellness company’s specifics.

Download this document and get :

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Home Care Business Plan Template

        You will have a clear, concise idea of what the business is about and how the founder and current president, [owner name], intends to start, grow and continue strong and steady growth.

        The purpose of a business plan is to create a plan, a blueprint or roadmap on paper to follow. It’s for you to really think through how your business will operate and about areas of the business you haven’t thought about. You’ll be most successful when you put in the effort and really THINK about it. Your goal is to develop a fairly simple plan first to start your Home Care Agency which often is enough for most small businesses getting started using their own capital. If you’re seeking one or more investors, a different, more comprehensive plan will serve you better with much more consideration in which case.

Executive Summary

        The Executive Summary is a summary of the highlights of your business plan. While it appears first in the layout of your plan, most find it easiest to complete the Executive Summary last. It should be succinct and no more than 2 pages.

Business Description

        The Business Description provides a complete overview about your business idea/concept/ service/ etc. It differs from the Executive Summary in that it goes into detail about the description. Challenge to yourself to truly THINK about what you see your business described as. Your business should be unique, differing from your competition. Describe who, what, why, where and how it’s different. Use the example to help get you started.

Your  Home Care

        provides  [medical / non-medical]  care services to  [elderly, disabled and people of all ages physical conditions and cognitive abilities]  who would like to remain living at home, yet require assistance with certain daily or weekly activities. Working closely with clients and their families we provide personalized assistance in client’s own home, the hospital, long-term assisted living facilities and other places of residence with things like:

Non-Medical Services

Home Health Care Services (Medical)

        To be known as the crème-de-la-crème of home care providers in our market, providing the very best, first-rate care to clients in our geographical market by employing only proven, hard-working, professional, honest, compassionate and ethical home care providers in the market who are dedicated provide outstanding home care services and improving the quality of clients’ lives.

        To assist every client with improving their quality of life, encouraging independence and allowing them to be comfortable with excellent care in their own homes by providing first-class, professional care with respect, dignity, compassion, the highest ethical standards and honor

Value Proposition

        What makes your home care agency services/products better than all the others? This shouldn’t be price – it will be difficult to defend and by differentiating yourself solely by price, it sets your business up as a commodity driven service – often suffering with poor service in lieu of charging a fair price for excellent services .

Industry Analysis

        What does the home care industry look like? Are there trends in your geographic area? What do your target clients buy, eat, education, income, habits, health levels, lifestyles, etc. The more detail you have the better your chances of success. This is an opportunity to find a specific niche that may be present in your own backyard. No example is provided in this area because you should know this. If you don’t – you need to do the homework to know and understand your market and the industry if you plan to enter it.


        Who are your competitors? Specifically, by name, location, age of the agency, what they specialize in and how they are different from you. What market share do they have? Are there any other service companies that could be considered competitors? (i/e: really inexpensive care homes, private caregiver market, etc). Even if there are no “direct” competitors, there will ALWAYS be some that are close

Marketing Strategies

        How will you get your product into the marketplace? Think of non-conventional (viral  Marketing) methods that are cheaper than traditional (TV, radio, print) and have a higher  Impact. Examples:

Networking –meeting people and creating the relationships with the many faces who refer clients to various home care service providers. By attending the opportunities for networking, meeting business leaders and more.

Online Promotions

          Website.   Develop an informative website and will include the website address in all online and offline marketing collateral.

          Press Releases.   Work with online press release distribution firms  to generate awareness of our services by issuing press releases to leading search engines and online news sites.

          Social Media Marketing.  Promote your agency on Facebook, Twitter, LinkedIn and other social media channels that may be frequented by your target market. All social sites will be used to generate a buzz about your services and build your agency’s image. The goal is solely to build connections with the health care industry and consumers and convince them to avail your services.

          E-mail Marketing.   Implement an e-mail marketing campaign to target local health care facilities and professionals that could provide client referrals to agency.

          E-mail Program.  Regularly distribute a newsletter to highlight new services, employees, agency certifications and home care industry news. Include links to lure subscribers to visit your website for further information.

Offline Promotions

Business & Health Fairs – Attending and showing the presence at these shows brings more

  Barriers to Entry

        What will stop you from entering your market place? Regulations, competition, cost of entry, monopoly, syndication? Also, how will your setup your own barriers to entry for other potential entrants into the marketplace?

        State and county laws can thwart certain services from being provided by increasing the requirements and certification levels. Are there any present in your area? Maybe it’s obtaining the State Survey sign off or Medicare certification. List the obstacles that could keep you from getting started and growing.

Distribution Channel

        How will you get your services/product to your market? For example – if you cover 3 counties – how will you manage logistics? Who will provide the care? Who will do the follow up visits and ensure care quality? Will you team with another company that provides a complimentary business where you can team with one another?

Team Summary

        Often this can be the most important part of your business plan. Who else believes in the idea of you entering the home care industry and the experience of your team in the various areas?  (Technical, business, marketing, operations, HR, etc.)

Personnel Plan

        You will initially hire four staff members to manage the agency’s operations. Each hired staff member will meet the state of Colorado educational and training requirements. Additional recruiting will occur as the agency enters the expansion phase.

Organizational Hierarchy (example):

        The  Administrative Director  will be responsible for planning, implementing, organizing, and developing in-home care services. This work includes, but is not limited to: operations administration, community/client education and staff supervision. This individual also will assume all social work services during the agency’s initial phase.

        The  Administrative Assistant  will perform routine clerical and organizational tasks. This individual will organize files, draft messages, schedule in-home care appointments and support other staff.

          Home Care Aides  will administer in-home client services. These individuals will assist with activities such as bathing and dressing, and will provide services such as light housekeeping, errand services, personal care and companionship.

  Financial Analysis

Insert all the financial projections and forecasts here. Cash flow, income statements,  balance sheet, as well as start-up income required. This is arguably the most important  part of your business plan, spend plenty of time on this and be able to justify any  assumptions.

SWOT Analysis

        S trengths  W eaknesses  O pportunities  T hreats

        Consider the conditions in which your service business will operate. What are your Strengths and Weaknesses? These are internal (team, company, service). Opportunities and threats are external (local, regional and national market place, trends, etc.)


  Goals and Objectives

        What are your overall business goals? Your financials should include a lot of the income and expense goals. These goals/objectives are about identifying what you plan to accomplish with your business. It could be as simple as create a new career of owning a business or more in depth like using 10% of net profits going to a certain cause you believe in. The possibility of these things

Critical Success Factors

        What needs to be achieved that will enhance chances of your agency’s success? Identify what the possibility of these things happening are.

Exit Strategies

        How will you (or any investors) exit out of this project (if you want to) and make excellent return or to move onto your next “big idea”?

Future Developments

        What future plans do you have for your services (and products, if any)? As your company grows, what other plans do you have for your services? Do you want to grow into a regional or state-wide provider? Maybe you want to expand into medical and non-medical. The sky is the limit to what you’d like to do.

        Add any additional information here that may not fit into the sections above (quotes,  Recommendations, statistics, etc.). Your completed financials & projections should be included in the Financial Projections, however, you could place them in this section.


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    Are there trends in your geographic area? What do your target clients buy, eat, education, income, habits, health levels, lifestyles, etc. The more detail you