Assistance with writing your chiropractic business plan

Setting up a chiropractic clinic and need help with preparing your business plan?

If you need assistance with writing your chiropractic business plan, finance 4 chiropractors have some computer software which we can provide free of charge to help you, as well as a number of individually tailored services we offer if required.

Why would I need a business plan?

When setting up a chiropractic clinic or when purchasing an existing clinic, finance may be required in order to fund the business venture. In many cases the lender (i.e. Bank / Loan Company) would require a business plan for them to review the plans of the business and ensure that the anticipated profits of the business will be sufficient to cover any money they are going to lend you. This is particularly required when setting up from "scratch" as there is not any past business data that can be relied upon.

Why should I have a business plan?

Even if you do not require finance for the start up of your business it is essential to have a business plan in order to set targets, goals and budgets of where you want the business to be in one....five....ten years time. This plan should constantly be reviewed and actual figures should be compared to budget figures to ensure that you are going to achieve your targets in the correct timeframes.

What makes up a business plan?

A business plan usually comprises of the following main areas:-

1) A business summary - written detail of the business plan including, for example:-

• Background information and research into the chiropractic market
• Details of location where chiropractic trade will commence
• Details of the trading structure and ownership of the business, including job roles
• Personal profiles and past working history
• Information about funding the business
• The business strengths (*)
• The business weaknesses (*)
• Growth potential and the marketing plan (and other opportunities *)
• Competition (and other business threats *)

(The above are known as SWOT analysis *)

2) A projected profit and loss account 
 
A number based report showing expected income and expected business related expenses in the first, usually 3 years. Some calculations will need to be done to arrive at these figures and an accountant will be able to help you if you require further assistance. If you are buying an existing chiropractic clinic then their past financial information can act as a starting point. It is useful to have supporting schedules to show how your projected income figure was arrived at, so for example a table showing days of the year and anticipated patient numbers (existing and new) with the fees per appointment will demonstrate this.

3) A projected cash flow forecast 

Similar to the projected profit and loss account, this is a number based report that shows the funds going in and out of the business on a monthly basis. This will not just include projected business expenses but also additional costs such as loan repayments and purchasing equipment. It will also take into account funds introduced to the business from private source and funds drawn from the business for personal use.

Tips for a good business plan

A good business plan will be

• The right length and level of detail
• Laid out in clear sections, similar to that detailed above
• Show market research has been carried out - include facts and figures
• Feasible and realistic - lenders are experienced in reading business plans and can see whether the business plan is realistic or not. If setting your own goals it is important not to set your targets too high or too low
• Spelt correctly - ensure you run your spell and grammar check!

We hope the above has been useful and provided a basic insight into chiropractic business plans.

If you need further assistance with a business plan or some general business advice or require finance for a business set up or purchase, please contact
finance 4 chiropractors and we would be delighted to help you further.

T: 01872 242800
E: support@finance4chiropractors.com