Chiropractic Services Business Plan

The Pacific Valley Sport Medicine Center will soon open to serve the greater Southerlin metro area. Dr. John Meeks, a chiropractic doctor for six years with the Nichols Wellness Center, will be establishing his own practice in the Center.  Dr. Meeks is joining the Center that will have the city’s best and most respected sports injury specialists. His addition to the Center’s specialists was sought by the group of sport injury physicians that created the Center.

These physicians represent over 70% of Dr. Meeks referrals.  In his new practice, Dr. Meeks will be able to focus exclusively on sport injury referrals which will increase in his new location in the Center.

1.1 Mission

The mission of Sports Chiropractic is to promote the well-being of the athletes in the Southerlin community by providing accessible, quality chiropractic care for athletes of all ages, utilizing a service system that emphasizes trust, respect, confidentiality, and compassion. We are committed to quality chiropractic care that is provided in a collaborative effort with a physician’s overall health strategies and an array of medical services. We are further committed to the philosophy that we exist for the customer/client.

1.2 Objectives

• To continuously develop, strengthen, and improve chiropractic services offered by the Center.
• To strengthen the Center’s commitment to chiropractic services.
• Increase referrals from the Center’s physicians.
• Build referral into repeat clients.

Sports Chiropractic is a chiropractic practice started by Dr. John Meeks in the newly opened Pacific Valley Sport Medicine Center. Sports Chiropractics will provide quality chiropractic services to athletes of all ages and work in conjunction with the Center’s physicians.

2.1 Start-up Summary

It is estimated that start-up expenses will be $20,000. An additional amount of $25,000 will be required as start-up assets. The start-up costs are to be financed by Dr. Meeks personal funds.

2.2 Company Ownership

Sports Chiropractic is owned by Dr. John Meeks.

Dr. Meeks’ philosophy is that optimal health and performance can be attained through the proper balance of exercise, nutrition, and care of the body’s framework (skeleton).  In addition, maintaining a state of good health depends on a normally functioning nervous system. The most important and delicate organs of this nervous system are supported and protected by the skull and spinal vertebrae, when misaligned these structures can irritate and interfere with the nerve impulses. As a doctor of chiropractic, he locates these points of interference and corrects the spinal misalignments, so the body can reestablish its balance and heal itself to the best of its ability.

Sports Chiropractic offers treatment for various conditions including, but not limited to:

• Athletic injuries.
• Low back and leg pain.
• Neck and arm pain.
• Headaches.
• Shoulder, knee, and foot pain.

The chiropractic field is a crowded one in any metro area and Southerlin is no exception.  There are over 60 chiropractors practicing in the greater Southerlin community. A majority are generalists with only a handful that specialize with a particular client group.  Dr. Meeks’ specialty is athletic injuries, especially runners. Southerlin has a large and committed running community.  Each year there are numerous running events the entire city participates in. In addition to runners, there are high school aged athletes that need treatment for sport injuries. The third large group of potential clients is the active baby-boomers who are becoming more athletic as they get older and want to be pain-free. 

4.1 Market Segmentation

Sports Chiropractic will focus on the following market segments:

• Runners.
• High school age athletes.
• Active baby-boomers.

Sports Chiropractic is uniquely positioned to be successful in treating sports injuries.  The following subsections will outline these advantages.

5.1 Competitive Edge

Dr. Meeks, an avid runner, is one of the most visible sport injury specialists in Southerlin.  He supports the city’s numerous charity runs and has spoken to many athletic groups and organizations about preventing sport injuries. 

Dr. Meeks has also developed an extensive network of contact with physicians that specialize in sport injuries.  Over half of his referrals come from these doctors.  This is a strong competitive edge with competitors. In addition, his strong reputation for exceptional service has resulted in growing base of loyal clients who will follow to his new practice.

But the strongest competitive advantage for Sports Chiropractic is that it is the only chiropractic service in the Pacific Valley Sport Medicine Center.  As stated before, this center will become the dominant service provider for sport injuries. Dr. Meeks will become the chiropractor to see with a sport-related injury.

5.2 Marketing Strategy

Though Sports Chiropractic has a strong referral base for clients, it will still be important to market Dr. Meeks services.

Dr. Meeks will continue to speak to local groups on preventing sport injuries. The key is to keep Dr. Meeks in the public as the sports injury expert.

In addition, Sports Chiropractic will sponsor an annual run in the city in support of high school athletics.

5.3 Sales Forecast

The following table and chart highlight the sales forecast for three years.

The Sports Chiropractic staff will consist of Dr. Meeks, one full-time receptionist/clerical staff member and a half-time bookkeeper.

The following is the financial plan for Sports Chiropractic.

7.1 Break-even Analysis

The monthly sales break-even point is shown in the following table and chart.

7.2 Projected Profit and Loss

The following is the projected profit and loss for three years.

7.3 Projected Cash Flow

The following is the projected cash flow for three years.

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

7.5 Business Ratios

The following table outlines some of the more important ratios from the Offices of Physicians industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 8011.