IV Hydration Business Plan Template
If you want to start an IV Hydration business or expand your current IV Therapy business, you need a business plan.
The following IV Hydration business plan template gives you the key elements to include in a winning business plan. In addition to this template, successful IV Hydration business plans will include market research to support your business concept and help you better understand the IV hydration therapy industry, trends, and your target market. It will also help you understand your potential competitive advantage, as well as help craft a strong marketing plan and financial plan.
IV Hydration Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is an IV hydration center that provides IV hydration therapy to residents living in or near [insert location here]. Our IV therapy blends offer the perfect nutritional blends for a variety of wellness needs including anxiety & depression, mental clarity & cognitive function, improved immune health, boosted energy, accelerated healing, asthma & allergy relief, and increased recovery. We offer mobile and in-office services, both of which are administered by licensed professionals.
Products Served
[Company Name] will provide IV hydration therapy services for those over the age of 18. Specific products will include nutritional blends that help with dehydration, beauty, fatigue, hangovers, athletic recovery, and more. Customers can choose to receive their IV hydration therapy at [Company Name]’s location or in their own home.
In addition to these services, [Company Name] will also be a retailer of wellness products that align with the company’s mission.
Customer Focus
[Company Name] will primarily serve residents within a 10-mile radius of [company location]. Residents in the area prioritize their health and are always looking for new wellness trends and ideas.
The demographics of these customers are as follows:
- 63,935 residents
- Average income: $72,300
- Median age: 35.8 years
- 58.7% female
- 55% married
This lines well with our target demographic. Most customers who are interested in IV hydration therapy and other wellness services are women in the 18-34 demographic. In addition, there is growing demand from Generation X for services that promote holistic wellness. Individuals of all ages will be sure to patronize [Company Name] for both one-off and routine IV hydration services.
Management Team
[Company Name] is led by [Founder’s Name], who has been a nurse for [X] years. She graduated from [Medical School] summa cum laude in [year] and spent the vast majority of her medical career working at ABC Hospital. While working in the medical industry, [Founder’s Name] provided IV treatment to thousands of patients. She knows better than most the wonders that IV hydration therapy can provide. She has vast medical knowledge from her time as a nurse and has been trained to provide IV treatment safely and effectively to all her patients and clients.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons.
- Our founder has years of medical knowledge and experience to serve the community better.
- Only a few other businesses in the nearby area offer IV therapy, but none specialize in it. [Company Name] will stand out with its specialized expertise in this field.
- We offer unique IV hydration blends and services that our competitors do not.
- Our blends are a better value than our competitors, on average being about 10-20% cheaper.
- Our company is located in a town with the perfect demographics for starting a specialized wellness clinic.
- Wellness centers in general are a proven business and are only becoming more and more popular throughout the United States.
Financial Highlights
[Company Name] is currently seeking $400,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- IV Equipment: $50,000
- Mobile van purchase and upkeep: $50,000
- Working capital: $100,000 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] is a brand new IV hydration clinic located at [insert location here]. The clinic will specialize in providing IV therapy services to help clients with a variety of health concerns and wellness needs. It will showcase a calming and healing interior to promote relaxation. [Company Name] will also sell wellness products that align with the company mission.
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the medical industry as a nurse for [X] years, it was in [month, year] that she decided to launch [Company Name]. [Founder’s Name] has administered IV treatment in a hospital setting for most of her career and discovered that some specialists offered a small range of IV treatments in wellness and holistic clinics. [Founder’s Name] decided to start a similar business that specialized in IV treatments and offered more products and services than the competitors in her area.
[Company Name]’s History
[Founder’s Name] founded and incorporated [Company Name] as an S-Corporation in [month, year]. Though the company is currently running out of a small rented office with only one treatment room, [Founder’s Name] is contacting larger commercial locations that are ready to lease.
Since incorporation, [Company Name] has achieved the following milestones:
- Developed the company’s name, logo, and website located at [website]
- Determined equipment and fixture requirements
- Identified and established relationships with equipment and product providers
- Begun recruiting key employees with previous medical or wellness experience
[Company Name]’s Products/Services
Below is [Company Name]’s initial IV blends that will be offered:
- Migraine Recovery
- Vitamin C Boost
- Hydration Infusion
- Inner Beauty Infusion
- Fatigue Relief
- Myers’ Blend
- Athletic Recovery
- Hangover Recovery
In addition to the IV treatments, [Company Name] will sell wellness products that align with the company’s goals and mission. Example products include:
- Multivitamins
- Booster shots
- Essential Oils
Licensed practitioners will also offer nutritional coaching services upon appointment.
III. Industry Analysis
[Company Name] competes with other IV hydration centers, spas, wellness centers, and other practitioners that offer IV hydration therapy services. Many types of businesses provide IV hydration therapy, which increases competition, but few specialize in it, which gives [Company Name] a distinct advantage.
According to IBISWorld, while there are more than 19,000 wellness centers in the United States, there are only about 600 IV hydration centers. This gives [Company Name] a competitive advantage, as very few businesses specialize in this type of treatment. We can use the opportunity to market ourselves as experts in this particular form of treatment.
Furthermore, there is plenty of room in the wellness industry, particularly for conveniently located wellness centers that cater to specific geographic and demographic customer niches. Smaller wellness centers can easily develop a loyal clientele that enables them to compete and succeed against other centers; in this industry, size does not necessarily mean an advantage, which bodes well for [Company Name]. While small companies in other industries have numerous challenges, smaller and more niche businesses like IV treatment centers can easily thrive in the wellness industry.
Moreover, the IV treatment industry is currently valued at $2 billion in the United States and is expected to grow at an annual rate of 8% through 2028. More customers are becoming aware of the importance of IV hydration treatment, and demand is increasing. Now is the perfect time to start and grow an IV hydration center.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and its surrounding areas.
The community of [company location] has a large population of affluent young adults and middle-aged residents who are committed to a healthy lifestyle. They are more open to unique wellness practices and understand the importance of nutrition for happy and holistic living. They are also more willing to pay higher prices for high-quality wellness services.
Customer Segmentation
The Company will primarily target the following three customer segments:
- Millennials: The town has a significant population of millennials. These individuals are more likely to be wellness-focused. This demographic is well-connected to each other and, as such, is a prime source of referral business. [Company Name] expects to acquire new customers from referrals regularly.
- Generation X: The town has a sizable population from Generation X. As this age group finishes having children, they will increasingly focus on maximizing their well-being. In addition, this demographic has become increasingly proactive in maintaining their health as they age. [Company Name]’s range of IV services includes a variety of options to address these concerns.
- Women: The area has significantly more people identifying as female as than male. Females are generally more interested in wellness services and will be more open to IV hydration therapy to enhance their wellness and nutrition.
V. Competitive Analysis
Direct & Indirect Competitors
The following clinics are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Evolve Holistic Services
Evolve Holistic Services has been a significant provider of wellness services since 2005. They offer a variety of services that help restore energetic and physical wellness, including IV hydration treatments, Reiki healing, massage, and intuitive counseling.
While we expect Evolve Holistic Services to continue to thrive based on its location and the variety of services it offers, we expect that more and more customers will frequent [Company Name] based on the high-quality and competitively priced IV treatments we offer.
Riverside Wellness
Riverside Wellness has been a competitive provider of wellness and holistic services since 2015. In addition to IV therapy, Riverside offers numerous treatments to boost their customer’s health and wellness, including nutrition coaching, acupuncture, homeopathy, and personalized wellness programs.
Riverside Wellness offers competitive services and has had a popular reputation throughout the past decade. However, [Company Name]’s services are far more affordable, and the company offers mobile appointments, which is not an option with Riverside Wellness.
Spring Health Wellness Clinic
Established in 1997, Spring Health Wellness Clinic provides a personalized approach to health optimization and wellness. Utilizing a wide range of treatments and the latest technology, Spring Health Wellness Clinic provides its customers with a variety of treatments to choose from, including IV therapy, cryotherapy, halotherapy, and massage.
However, Spring Health Wellness Clinic is not popular for its IV therapy services. It makes most of its money from the other services the clinic provides. [Company Name] has the advantage in that it specializes in IV therapy and therefore offers a large variety of IV treatments at an affordable cost.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include the following:
- Mobile Option: For a slight extra charge, [Company Name] offers a mobile option for customers living within a 10-mile radius. This is a great option for those who can’t commute to our clinic or prefer to get their treatment in the comfort of their home.
- Specialization: While other clinics only offer IV hydration therapy as one of many services, [Company Name] will stand out as a specialized clinic. We will market ourselves as experts in IV hydration therapy, which will pull away some of the customer bases of our competitors.
- Affordability: Thanks to [Founder’s Name]’s connections within the medical industry, we are able to access high-quality vitamin and nutrition bags for an affordable cost. This allows us to provide our services for lower prices than the competitors while still offering high-quality treatment.
- Management: [Founder’s Name] has years of experience as a nurse in the medical field, bringing a vast amount of medical knowledge to the table. This will help us find the perfect treatment for each of our customers, encouraging them to come back any time they have a nutrition or wellness need.
VI. Marketing Plan
[Company Name] seeks to position itself as a respectable, upper-middle-market competitor in the IV hydration and therapy market. Customers can expect to receive care from licensed and certified professionals for a price somewhere between discount chains and luxury establishments.
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Highly trained specialists with extensive medical knowledge
- Mobile services
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 10-mile radius of its location. [Company Name]’s promotions strategy to reach these individuals includes:
Local Publications
[Company Name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, wellness 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 incentivize its existing customer base to encourage their friends to come and try its services for the first time.
Customer Loyalty Programs And Special Offers
[Company Name] will create a winning customer loyalty program to keep its best clients coming back. When not actively providing services to customers in the store, our professionals and other employees will make periodic, regular phone calls to customers. These phone calls will (a) ensure that customers are satisfied with their treatments and (b) remind customers after a certain period of time has passed that they might want a new treatment. Long-term customers will have the opportunity to participate in the loyalty program and have access to special offers and discounts.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts, and/or provide other inducements for people to visit the center.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.
Pre-Opening Events
Before opening the clinic, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when receiving treatment. Customers can expect to receive quality care for a more affordable price than what they pay at other wellness clinics.
VII. Operations Plan
Functional Roles
[Company Name] will carry out its day-to-day operations on an appointment basis. Walk-in clients will be accommodated when possible. However, purchases of related wellness products are offered on a walk-in basis.
In order to execute [Company Name]’s business model, the company needs to perform several functions. The majority of employees will assist in upselling customers in addition to the primary functions. [Company Name] anticipates using the services of [X] employees, divided into the following roles:
Service Functions
- IV hydration treatments and injections (in office)
- Mobile IV hydration treatment and injections
- Nutritional counseling
- Teaching classes
Administrative Functions
- Marketing functions
- Bookkeeping functions
- Hiring and training staff
- Sourcing and storing products
- Appointment making
- Customer service/payment processing functions
- Treatment room preparation and cleaning
Miscellaneous
- Maintenance functions
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] 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 has been a nurse for [X] years.
While [Founder’s Name] has never run an IV therapy clinic herself, she administered IV therapy services in a hospital setting for most of her career. She began her medical career shortly after graduating from [Medical School] and passing her board exam.
[Other employee’s name] will serve as the customer service manager. [He/she] has extensive experience in customer service and the wellness industry.
[Other employee’s name] will also administer IV therapy treatment to customers and will be the primary employee who administers IV treatment at customers’ homes. Like [Founder’s Name], [he/she] graduated from [Medical School] and worked for [X] years as a nurse.
Hiring Plan
[Founder] will serve as [Company Name]’s office manager. In order to launch our IV hydration therapy clinic, we need to hire the following personnel:
- IV Certified Phlebotomists (1 to start)
- Assistants (1 to start)
- Receptionists (1 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of any wellness products that align with [Company Name]’s mission.
As with most services, labor expenses are the key cost drivers for IV hydration centers. According to state requirements, only licensed nurses can administer IV fluids. Nurses are essential employees and therefore require great compensation. Therefore, attractive compensation packages are necessary to maintain qualified staff.
The major cost drivers for the company’s operation will consist of the following:
- Treatment products and equipment
- Salaries
- Lease
Moreover, ongoing marketing expenditures and cost of goods sold are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $400,000 of debt capital to launch its clinic. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $200,000
- IV equipment: $50,000
- Company vehicle purchase and upkeep: $50,000
- Working capital: $100,000 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 customers per day | |
|---|---|
| Year 1 | 26 |
| Year 2 | 35 |
| Year 3 | 48 |
| Year 4 | 60 |
| Year 5 | 70 |
| Annual Rent | $90,000 |
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 |
IV Hydration Business Plan PDF
You can download our IV hydration business plan PDF.
