Chiropractic Business Plan Template
If you want to start a Chiropractic business or expand your current Chiropractic business, you need a business plan.
The following Chiropractic business plan template gives you the key elements to include in a winning Chiropractic business plan.
Chiropractic Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a chiropractic practice located in [Location] that focuses on diagnosing and treating patients through general chiropractic care.
Products Served
The Company will provide the following chiropractic services to its patients:
- General chiropractic care
- Family chiropractic care
- Sports and rehabilitation chiropractic care
- Ancillary services (massage therapy, nutrition and orthotics retail, etc.)
Customer Focus
[Company Name] will serve the community of [company location]. The Company will primarily offer its products and services to
- Individuals who pay out of pocket
- Individuals with private insurance
- Workers’ comp and auto insurance claimants
Management Team
[Company Name] is led by [Founder’s name], who is a [State name]-licensed Chiropractor with xx years’ experience in the industry. While [Founder] has never run a chiropractic clinic himself, he has been a chiropractor for [x] years. During his early career in the chiropractic industry, he worked with the county’s busiest clinic, where he acquired an in-depth knowledge of the day-to-day responsibilities of running a chiropractic practice. Additionally, he enjoyed a mentorship under the clinic’s owner-chiropractor, learning how to manage and run a successful chiropractic practice before starting [Company name].
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for Chiropractic care in the community. In addition, Dr. [founder] has built a strong client base, most of whom have indicated they will follow him to the new practice.
- There has been significant growth in the chiropractic industry over the past few years.
- The management team has a very warm approach and has a track record of success in the chiropractic industry.
- The chiropractic care market is expected to witness considerable growth due to the increasing prevalence of spine disorders and chronic pain.
Financial Highlights
[Company Name] is currently seeking $325,000 to launch its Chiropractic clinic. Specifically, these funds will be used as follows:
- Center design/build: $200,000
- Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here], a chiropractic practice located in [Location] that focuses on diagnosing and treating patients through general chiropractic care.
The Company’s primary service includes general chiropractic care specializing in treating cervical vertebrae subluxation. The clinic will have varied hours to accommodate a broad range of client schedules.
[Company Name]’s History
[Founder’s Name] is a highly experienced and qualified chiropractor with a passion for serving patients and helping them manage their pain through the use of spinal adjustments. He has been a chiropractor for [x] years. [Company Name] will work to become known as a cervical spinal specialist in [Location], offering treatment focused on correcting Atlas and Axis misalignments as a first line of treatment.
Upon surveying the existing patient base and finding the potential center location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local residents to assess the most desirable location for the Chiropractic Clinic.
Since incorporation, the company has achieved the following milestones:
- Found office space and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Created the list of services offered
- Began recruiting key employees with experience in chiropractic care and/or medical office management
[Company Name]’s Products/Services
The Company will provide the following chiropractic services to its customers:
- General chiropractic care
- Family chiropractic care
- Sports and rehabilitation chiropractic care
- Ancillary services (massage therapy, nutrition and orthotics retail, etc.)
III. Industry Analysis
[Company Name] competes against small, individually owned Chiropractic clinics and major regional or national chains. The market size, measured by revenue, of the Chiropractors industry in the US, is $18.5 billion. The market size of the Chiropractors industry in the US increased faster than the Healthcare and Social Assistance sector overall. The Chiropractic industry is indeed growing despite the limitations in insurance coverage.
The market size of the Chiropractors industry in the US has grown 2.6% per year on average. As the most established form of alternative medicine in the United States, the Chiropractors industry has been positively influenced by favorable demographic trends, healthcare reform and a growing acceptance of alternatives to traditional medicine. Chiropractors are expected to retain and acquire patients interested in drug-free, alternative care, as well as those desiring integrative care. Chiropractors have begun to partner with other healthcare providers through multidisciplinary practices, and these integrative care services will reach a larger client pool.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve individuals residing in [company location] and its surrounding areas.
The precise demographics of the town in which the center location resides is as follows:
| Fort Lauderdale, FL | |
|---|---|
| Total Population | 9,818,605 |
| 15 to 19 years | 753,630 |
| 20 to 24 years | 752,788 |
| 25 to 29 years | 759,602 |
| 30 to 34 years | 716,129 |
| Total Households: | 3,218,511 |
| Household income $50,000 to $74,999 | 550,971 |
| Household income $75,000 to $99,999 | 382,770 |
| Household income $100,000 to $149,999 | 440,285 |
| Household income $150,000 to $199,999 | 187,449 |
| Household income $200,000 or more | 208,954 |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Out-of-pocket payers: The town has a significant upper middle class population, who are more likely to be able to afford out-of-pocket payments.
- Private health insurance: The town’s large population of middle class and upper middle class families are also more likely to have private health insurance. However, many private health insurance policies cover only routine chiropractic care, or limit the number of visits.
- Workers comp and auto insurance claimants: The Company will also serve injured individuals whose workers comp and auto insurance policies cover chiropractic care.
V. Competitive Analysis
Direct & Indirect Competitors
Competitor 1
Competitor 1 is a family practice, serving patients from infancy to the elderly. Competitor 1 feels proud to provide excellence in Chiropractic education, care, and service to the community. Competitor 1 is focused on helping the community achieve their optimal lifestyle through Chiropractic care that is designed to keep them well. Competitor 1’s treatment protocols are specifically designed to help the body heal naturally, stabilize and prevent future problems and ultimately preserve long-term mobility — so that people can Live and Move Well for the rest of their life.
Competitor 2
Unlike conventional medicine, which focuses on attempting to treat disease once it occurs, the chiropractic care offered by Competitor 2 at [location] emphasizes the importance of improving your health in an effort to reduce the risk of pain and illness in the first place. [Founder’s Name] and his staff are committed to serving the [location] area with chiropractic and holistic health care.
Competitor 3
Competitor 3 believes that its patients are empowered by understanding how their bodies function optimally and implementing best practices to support this level of wellness and health in their daily lives. Competitor 3 offers family chiropractic services using the whole-body approach. The ultimate goal of the company’s chiropractors is to help restore and maintain the body’s natural state of ideal health. Competitor 3 is dedicated to providing positive life-changing results through excellent chiropractic care.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The Company’s management team has xx years of experience that allows them to market to and serve customers in a more sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
- Great service at an affordable price: The chiropractic services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these services at a much more affordable price.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respected, results-oriented competitor in the chiropractic industry. Customers can expect to receive services from experienced chiropractors at a moderate price point.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering effective chiropractic treatment
- Convenient location
- Comfortable, customer-focused environment
- Moderate price point
- Providing excellent customer service
Promotions Strategy
[Company Name] expects its target market to be individuals living in [company location] and its surrounding areas. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening the chiropractic clinic, [Company Name] will organize pre-opening events for prospective customers, local merchants and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products and services in popular magazines and news dailies.
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. It will run regular advertisements to maintain exposure to relevant markets. Community newspapers, college publications, healthcare programs, and similar channels will be a major promotion effort.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their service for the first time.
Special Offers
Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that inevitably occurs each year. The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when receiving chiropractic care. The customers can expect to receive high-quality chiropractic care at a more affordable price than what they pay at the city’s longest-established chiropractic clinic.
VII. Operations Plan
Functional Roles
[Company name] will carry out its day-to-day operations primarily on an appointment basis. Walk-in clients will be served at the earliest available time, but priority will be given to clients who booked an appointment prior.
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- Chiropractic care
- Massage therapy
Administrative Functions
- General & administrative functions including legal, marketing, etc.
- Appointment making
- Inventory management
- Hiring and training staff
- Accounting and insurance billing
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s name], who is a [State name]-licensed Chiropractor with xx years’ experience in the industry. While [Founder] has never run a chiropractic clinic himself, he has been a chiropractor for [x] years. During his early career in the chiropractic industry, he worked with the county’s busiest clinic, where he acquired an in-depth knowledge of the day-to-day responsibilities of running a chiropractic practice. Additionally, he enjoyed a mentorship under the clinic’s owner-chiropractor, learning how to manage and run a successful chiropractic practice before starting [Company name].
[Founder] graduated from the University of ABC where he earned his Doctor of Chiropractic (D.C.), after which he passed his board exam and earned a state license.
Hiring Plan
[Founder] will serve as the sole Chiropractor. In order to launch the clinic, the company will need to hire the following personnel:
- Office manager
- Bookkeeper and billing specialist
- Massage Therapist
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the chiropractic services rendered to its customers. The major costs for the company will be salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $325,000 to launch its Chiropractic and Massage Center. Specifically, these funds will be used as follows:
- Center design/build: $200,000
- Working capital: $125,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 150 |
| FY 4 | 200 |
| FY 5 | 225 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
