Executive Summary - Cat's TCM Notescatstcmnotes.com/downloads/Practice Management/PM 2... · Web viewBaton Rouge Acupuncture and Women’s Health is an acupuncture and Chinese medical

Matthew MegabucksChief Financial OfficerUber Lenders, Inc.999 South I-10, Ste 201Baton Rouge, LA 78080

August 3, 2010

Dear Mr. Megabucks:

In follow-up to our recent phone conversation, please find the enclosed copy of my business plan for Baton Rouge Acupuncture and Women’s Health.

Baton Rouge Acupuncture and Women’s Health is an acupuncture and Chinese medical clinic specializing in women’s health and fertility issues. We believe we are well positioned to succeed in this field because

We are the only oriental medical provider specializing in women’s health care. We have the only ABORM certified practitioner in the state. Baton Rouge is the central location for women’s reproductive health in the Southeastern region of

the United States.

We are currently seeking financing in the amount of $47,000 as start up capital and operating expenses for the first year of service.

I will call you again in several days after you have had a chance to read and review my/our plan. In the meantime, please do not hesitate to give me/us a call if you have any questions about anything in my/our plan.

Yours,

Mary Magnolia(225) 555-5555

Business PlanBaton Rouge Acupuncture and Women’s Health

1

Confidentiality & Nondisclosure Agreement WHEREAS, Baton Rouge Acupuncture and Women’s Health, located at 6471 Perkins Road, Suite 300, Baton Rouge LA 70808, agrees to furnish ____________________________________ certain confidential, proprietary information or intellectual property relating to ideas, inventions, or products for the purposes of determining an interest in developing, manufacturing, selling, and/or joint venturing;

WHEREAS, _____________________ agrees to review, examine, inspect or obtain such confidential information only for the purposes described above, and to otherwise hold such information confidential pursuant to the terms of this Agreement.

BE IT KNOWN, that Baton Rouge Acupuncture and Women’s Health has or shall furnish to _____________________ certain confidential information and may further allow _____________________ the right to discuss or interview representatives of Baton Rouge Acupuncture and Women’s Health on the following conditions:

1. _____________________ agrees to hold confidential or proprietary information or trade secrets ("confidential information") in trust and confidence and agrees that it shall be used only for the contemplated purposes, shall not be used for any other purpose, or disclosed to any third party.

2. No copies will be made or retained of any written information or prototypes supplied without the express permission of Baton Rouge Acupuncture and Women’s Health, its officers, or legal representatives.

3. At the conclusion of any discussions, or upon demand by Baton Rouge Acupuncture and Women’s Health, all confidential information, including prototypes, written notes, photographs, sketches, models, memoranda, or notes taken shall be returned to Baton Rouge Acupuncture and Women’s Health.

4. Confidential information shall not be disclosed to any employee, consultant, or third party unless they agree to execute and be bound by the terms of this Agreement, and have been approved by Baton Rouge Acupuncture and Women’s Health.

5. This Agreement and its validity, construction, and effect shall be governed by the laws of the State of Louisiana.

AGREED AND ACCEPTED BY:

_________________________________

Date:_____________________________

Witness:___________________________


2

Baton Rouge Acupuncture and Women’s Health

Business Plan

August 10, 2009

Contact:Mary MagnoliaOwner and CEO

6471 Perkins Rd, Ste 300Baton Rouge LA 70808

(225) 555-5555


3

Table of Contents

Executive Summary.....................................................................................................................................5Business Concept.....................................................................................................................................5Current Situation......................................................................................................................................6Key Success Factors................................................................................................................................6Current Financial Needs..........................................................................................................................7Vision Statement......................................................................................................................................8Milestones................................................................................................................................................8

Marketing Analysis......................................................................................................................................9General Healthcare Overview and changes in the Market......................................................................9Market Segment Analysis........................................................................................................................9Target Market........................................................................................................................................10Customer Characteristics.......................................................................................................................10Customer Needs.....................................................................................................................................10

Competitive Analysis.................................................................................................................................12Industry overview..................................................................................................................................12Nature of competition............................................................................................................................12Changes in the industry.........................................................................................................................12Opportunities.........................................................................................................................................13Threats & risks.......................................................................................................................................14

Strategic Planning and Services.................................................................................................................15Sales and Marketing..................................................................................................................................18

Marketing Strategy................................................................................................................................18Operations..................................................................................................................................................19

Key Personnel........................................................................................................................................19Organizational Structure........................................................................................................................19Customer Service and Support..............................................................................................................19Insurance................................................................................................................................................20Licenses.................................................................................................................................................20

Financial Management Plan......................................................................................................................21Capital Equipment and Supply list (start-up budget)............................................................................21Start-up cost Worksheet.........................................................................................................................21Operating budget and Proforma Profit and Loss Statement..................................................................22

Appendices................................................................................................................................................23Research references...............................................................................................................................23Demographic maps for area served.......................................................................................................24


4

Executive SummaryBusiness ConceptBaton Rouge Acupuncture and Women’s Health is an acupuncture and Chinese medical clinic in Baton Rouge, Louisiana. Baton Rouge Acupuncture and Women’s Health targets women of reproductive and menopausal age. We provide acupuncture and Chinese herbal treatment for women with reproductive health issues, expectant mothers, and women with gynecological problems. Other services available at our clinic include Reiki, Shiatsu massage, Tai Chi, Qigong and Yoga classes, and wellness classes. In addition, we sell a full line of Evergreen Chinese herbal products.

Acupuncture is a growing modality of health care in the United States. More than three million Americans used acupuncture in 2006 according the National Health Interview Society and number of acupuncture clients increased by one million people between 2002 and 2007. Another growing health industry is ART or Assistive Reproductive Technology, which is the use of technology to assist women who want to build families, but have difficulty getting pregnant and/or carrying a child to term. In vitro fertilization, IVF, is the most common technology used in the field. IVF is expensive and the chances of getting pregnant are low. Only 26% of women achieve a viable pregnancy with IVF alone. The use of acupuncture and Chinese herbs in combination with IVF dramatically improves the chances of a successful pregnancy. Studies show that when a woman uses acupuncture in addition to IVF the chances for a viable pregnancy rise to 42%. When IVF therapy is combined with both acupuncture and Chinese herbs, those chances rise to a minimum of 60%. This is not a small market: 9.3 million American women currently use assistive reproductive therapy (mostly IVF) in order to conceive a child according to the National Center for Health Statistics.

Women who have difficulty conceiving often have difficulty carrying a child to term as well. Chinese herbs and acupuncture also assist in preventing miscarriage. Chinese medicine has also been used for centuries to manage or prevent symptoms of pregnancy such as morning sickness, gestational diabetes, and pre-eclampsia, back pain, constipation, hemorrhoids, management of fibroids, and low birth weight. It is also an excellent choice for the treatment of post-partum depression and exhaustion.

Chinese medicine is also extremely effective for general women’s health issues such as gynecological disorders and as a complementary therapy for women facing uterine, ovarian and breast cancer. Acupuncture and herbs also treat symptoms of menopause including hot flashes, night sweats, and poor sleep.

While there are several acupuncture clinics in the Baton Rouge, none specialize in women’s health. The CEO, Mary Magnolia, received her DOM (Doctor of Oriental Medicine) from Yo San University in California in reproductive medicine and am a board certified member of ABORM (American Board of Oriental Reproductive Medicine), signifying that she is specially trained in acupuncture reproductive medicine. Baton Rouge Acupuncture and Women’s Health is open three nights per week and one weekend per month for the convenience of working women. The clinic also offers walk-in appointments on Wednesdays and sliding scale treatments on Thursdays. The clinic has a well stocked Chinese herbal pharmacy and a variety of healing modalities.

Our intention is that Baton Rouge Acupuncture and Women’s Health will become the premier women’s health acupuncture clinic in Baton Rouge, expanding to 3 acupuncturists and one full time desk staff in the next five years and earning $300,000 per annum before taxes.


5

Current Situation

We are a start-up, incorporated in the State of Louisiana on August 31, 2010. The principals owner is Mary Magnolia, the owner and CEO. Her experience and training positions the company to meet an emerging, under-served need for acupuncture and Chinese medicine in the field of women’s reproductive and general health. We are currently engaged in building out the clinic spaced needed and have leased the space for 2 years with right of first refusal and a further 1 year option. We are seeking additional capital to purchase furniture and pay for marketing. The major challenges we face before beginning operations are purchasing remaining furniture, supplies, and insurance. We plan to begin business on December 1, 2010.

Key Success Factors

The success of my company will be largely due to service, marketing, location and hours, and proven clinical benefits of acupuncture for women.

Superior serviceWe offer early morning, evening and limited weekend clinic hours to serve patients. Evening and early morning appointments are available three days per week, walk-in appointments are available Wednesdays, weekend appointments available one weekend per month and sliding scale payments Thursdays are all designed to make acupuncture available for as many people in the community as possible.

Excellent marketing and advertisingWe have dedicated a large portion of my monthly budget to advertising and have a marketing evaluation plan in place to ensure advertising and marketing dollars are spent most effectively.

LocationOur clinic is centrally located between women’s health care centers and health care providers. Our sponsoring physician, Dr. Stella Passmore, offices within 2 miles of this location, making it an easy commute for clients between our clinic and hers.

Clinical resultso Women who have difficulty conceiving have a far higher success rate for conception

when combining assisted reproductive technologies with Chinese acupuncture and herbs. In vitro fertilization (IVF) is the most common of these technologies. When used alone IVF results in a 26% success rate. When used with acupuncture the rate of successful conception is 42%. When IVF is used in conjunction with both acupuncture and Chinese herbs the success rate is a minimum of 60%.

Chinese medicine improves the function of the ovaries, regulates the hormones, increases


6

blood flow to the uterus (which in turn provides a thicker lining and more hospitable environment for the embryo), helps prevent early uterine contractions and lessens the side effects of the drugs used in IVF therapy.

Chinese medicine also reduces stress, regulates the patient’s immune system, and decreases the chance of miscarriage. Herbs and acupuncture can also assist the male partner by improving semen to create better quality and quantity of viable embryos.

In the later stages of pregnancy acupuncture can also be used to turn a breech baby into normal birth position and induce labor in a women that is overdue. Both of these can reduce the chance of C-section.

o Breast cancer patients have a better rate of recovery and survival when acupuncture is combined with traditional Western treatment.

o Gynecological problems, ranging from difficult menstrual cycles to PMS, respond positively to Chinese medical therapies resulting in significant reduction of pain and better emotional response.

o Chinese medicine treats the symptoms of menopausal women effectively and naturally by alleviating hot flashes, insomnia, depression, and dryness thus eliminating the need for HRT (hormone replacement therapy) which has been associated with increased risk for breast, uterine and ovarian cancers.

Board certificationMary Magnolia, DOM L.AC, is an ABORM certified (American Board of Oriental Reproductive Medicine) practitioner, signifying that she has received specific training in reproductive medicine.

Limited competitionThere are no other acupuncture practitioners in the Baton Rouge are specializing in women’s health and reproductive medicine. We are building relationships with several women’s health physicians in order to serve a broad range of women seeking gynecological and reproductive care.

Current Financial Needs

In order to effectively launch the business, we project a total need for $57,000 in start-up financing. Principal uses of these funds are to purchase remaining furniture and supplies, fund advertising and marketing efforts in the greater Baton Rouge area, and to supply operating capital during the first year of operation. To date, we have raised $10,000 from the company founder and supporters. The additional funding needed is $47,000. We project the company will be profitable by October of 2011, 11 months after opening.


7

Vision Statement

Our vision of the company in five years is that it will include three ABORM certified acu-therapists and two front office personnel. We will have spacious offices near Western reproductive and woman-centered practices. We will have an expanded herbal pharmacy capable dispensing customized formulas in raw, powder and pill form, tinctures, and commercial patents. We will provide further Tai Chi, Qigong and Yoga classes and seminars in a studio space which can be rented in off hours by local instructors for movement and meditation classes. This integrated setting will take into account each patient’s situation and whole being. In five years, our clinic will be recognized as the premier alternative health care clinic in reproductive and woman-centered services, grossing $360,000 per year.

Milestones

The following are target dates.

1. Complete business planApril 2010

2. Complete final drafts of all marketing and promotional materialJune 2010

3. Arrange financingAugust 2010

4. Begin serviceDecember 1, 2010

5. Reach break-even pointOctober 2011


8

Marketing Analysis

General Healthcare Overview and changes in the Market

Overall Americans spend over $2.2 trillion on healthcare as of 2007 according to the Centers for Medicare and Medicaid Services (CMS). This figure represents about 16.2% of the GDP and is equal to each individual spending just under $7,500. These figures have risen from 1970 levels of individual spending of $356. Projected spending for the year 2016 will bring the individual spending to $12,782. Individual spending is quite skewed. The top 50% spend over 96% of total expenditures. This fact indicates that people with some money are willing to spend it on healthcare. According to the California Healthcare Foundation 2006 statistics, private out of pocket payments make up 12% of total expenditure.

Acupuncture services falls under the broad scope of Complementary and Alternative Medicine (CAM). According to the National Institutes of Health (NIH) in 2007, Americans spent over $33.9 billion in out of pocket payments on CAM services. These services account for 11.2% of out of pocket payments and 1.5% of total healthcare expenditures. The total amount spent on CAM practitioners of 2007 was $11.9 billion. These practitioners included chiropractors, acupuncturists, massage therapists, and others. 38% of adults and 12% of children used some form of CAM services in 2007 according to the NIH report. Of interest, acupuncture visits have risen from 1997 levels of 27 visits per 1000 adults to 79 visits per 1000 adults in 2007. This is an increase of almost 3 times in 10 years. This data indicates that acupuncture, which has less than 4 decades of practice in the United States, is increasing in volume and acceptance as a viable form of CAM therapy. Acupuncture will also continue to grow and capture a larger portion of the CAM market income as well, as more and more people turn to CAM therapies to fill the gaps left by and dis-satisfaction in traditional western healthcare.

Market Segment Analysis

The success of our business relies on the trends in the specific segment market of treatment of infertility. This market is comprised of women in the age range of 15 to 44 years old. According to the Centers for Disease Control and Prevention (CDC), the following statistics relate to infertility in the United States:Number of women aged 15-44 with impaired fecundity: 7.3 millionPercent of women aged 15-44 with impaired fecundity: 11.8%Number of married women aged 15-44 that are infertile: 2.1 millionPercent of married women aged 15-44 that are infertile: 7.4%Number of women aged 15-44 who have ever used infertility services: 7.3 million

Baton Rouge is unique in that this segment of the population is well represented. Baton Rouge has a women’s specific hospital and an In Vitro-Fertilization (IVF) clinic which serves the Baton Rouge, New Orleans, the whole state of Louisiana, and surrounding states areas. This is a huge market resource. Acupuncture assistance in IVF process is seeing a tremendous growth in the US. The board specialization in women’s reproductive health was created with the founding of the ABORM certification speaks to that demand and success. Many acupuncture fertility clinics have been created through out the country and are very successful. These clinics have finally found a way to integrate acupuncture with western medical services in a non-threatening and supportive way. Given the


9

effectiveness of acupuncture to assist the IVF procedure, the large un-served market and demand, and the clinical experience and specialization we are offering, the Baton Rouge Acupuncture and Women’s Health Clinic should be very successful. As one happy and successful IVF/acupuncture patient noted: “With over 1 billion people, the Chinese must know something about fertility.”

Target Market

Our target market is all females age 14 and up. We will serve the Baton Rouge area, but our unique fertility support services will attract a larger portion of the population beyond Baton Rouge area, which will travel to us to receive these specific treatments along with the related western fertility treatments. Along with fertility support, we will offer a full range of services specific to women’s health issues such as treatment for menstrual irregularity, menopause, hormone imbalances, general reproductive health and overall wellness and quality of life support. Although we are specialized in infertility support, our clinic will be advertised and promoted as a women’s wellness center to expand our market to include all women in the area. Our specific target population is white, middle to upper ranges of income, females, in age from 38 to 55. This target market fits the profile described by the NIH CAM report as the leading out-of-pocket spenders in the CAM market. Our clinic has been strategically located in an area, which fits this target market profile. Our clinic is also conveniently located near related Western Medical offices and hospitals, which are commonly used by our target market.

Customer Characteristics

A day in the life of our average customer is very full and hurried. She has many responsibilities and demands for her time and attention. She is married, has a full time career, has community or church service work, and is struggling to make it in these trying economic times. She does the best she can to take care of herself, but seems to be falling further and further behind in meeting her life goals of starting a family and having a full time career. She is highly educated and motivated, yet seems unable to put all the pieces together. She is health conscious. She eats healthy foods. She exercises regularly. She does what she can to support her health, but her health seems to slowly be getting worse. Somewhere, in the back of her mind she feels something is wrong. She just can’t identify what to change or how to find that peace and satisfaction that escapes her.

Customer Needs

We live in an unusual time in human history. Here in the United States, our living patterns have shifted from the extended family of 100 years ago to the nuclear family of the Fifties to the highly fragmented and high-speed lifestyles of today. Stress levels and activity levels have greatly increased in the last fifty years seeing the norm of most women entering the work force to provide incomes for themselves or their families. These factors have lead to an increasing fragmentation and disconnection from the natural rhythms and wisdom of our past generations. Our current food supply is becoming increasingly deficient in nutrients and more highly processed. Time constraints have left more people with little time to truly care for themselves. These cultural influences have left our modern women with less resources and support in living health and balanced lives. Our clinic will serve as a resource for women of the area to


10

regain the education, tools, resources, and support they need in order to bring health and balance to their lives. For those women having infertility issues, our clinic will serve to gently support and nourish their journeys in bringing forth the future generations. Perhaps as the women of this community find the balance and health in their own lives, the community as a whole will become healthier, happier, and more vibrant.


11

Competitive Analysis

Industry overview

According to The National Coalition on Health Care, the total health care market in the U.S. was $2.1 trillion in 2009. U.S. A 2007 government survey found that Americans spent $33.9 billion out-of-pocket on complementary and alternative medicine (CAM) in the past year. Aproximately $11.9 billion of that was spent on an estimated 354.2 million visits to CAM practitioners such as acupuncturists, chiropractors, and massage therapists. A 2006 American Academy of Medical Acupuncture survey indicated that 59% of physicians believed that acupuncture works as a complimentary therapy. Acupuncture.com reported in July 2006 that one in four hospitals now offer some form of complimentary alternative medicine. 27% of hospitals offer some kind of complementary therapy. According to the 2002 National Health Interview Survey, an estimated 8.2 million U.S. adults received acupuncture treatments that year, and an estimated 2.1 million U.S. adults had used acupuncture in the previous year.

Nature of competition

Baton Rouge Acupuncture and Women’s Health is the only clinic in Baton Rouge offering a practitioner with a clinical doctorate in reproductive health and fertility and ABORM board certification. We are also offer the only acupuncturist in the city who worked with reproductive endocrinologists as part of her training. Unlike the other clinics in the city, we offer weekend and evening hours.

Changes in the industry

The acupuncture and Chinese medical industry in America is growing exponentially. The acupuncture community’s national certification boards and professional associations have taken steps to improve the quality of practitioners by creating more stringent licensing and education requirements.

The medical community is much more accepting of Traditional Chinese Medicine. Many insurance companies now cover acupuncture treatments, and more and more medical doctors are referring patients to acupuncturists. Kaiser Permanente, Massachusetts General, Seton Hospital, and Stanford University Medical Center are among a growing number of medical institutions that acknowledge the efficacy of traditional Chinese medicine and offer acupuncture, tai chi chuan and meditation as part of their treatment plans. The United States military authorized the use of battlefield acupuncture for wounded soldiers, with significant results. Many patients experienced a 75% reduction of pain, and significantly reduced healing time.

One of many clinical trials in recent years, a 2002 study from Harvard Medical School concluded that acupuncture can safely ease chronic pain as well as chemotherapy-induced nausea and morning sickness. Studies like these have persuaded medical directors at hospitals to introduce traditional Chinese medicine treatments to their patient services.


12

http://www.acupuncture.com/news/hospitals.htm

http://www.medicalacupuncture.org/acu_info/pressrelease/physicians_divided.html

Primary competitor

Competitor’s name: Kenneth Chow, Dipl OMLocation: Baton Rouge, Louisiana Estimated patient visits/treatments per week: 80Cost of treatment: $95 for initial treatments, $85 follow up treatments, $95.00- Acupuncture Facelift Rejuvenation, $75.00- Ear Stapling for Weight Loss (Both Ears) or $50.00 if combined with a treatment.

Estimated annual gross revenues: $54,000

Number of employees: 1Practitioners: 1Support personnel: 0

Number of treatment rooms: 3

Years in business: 12

Quality of reputation: High

Competitive strengths: Mr. Chow already has a large, established practice.

Competitive weaknesses: Mr. Chow lists 14 different specialties primarily relating to pain management and body work. The Baton Rouge Acupuncture and Women’s Health clinic’s primary focus is women’s health and reproductive medicine, and we are ABORM board certified in fertility medicine.

Mr. Chow uses a social networking site to advertise his business. In contrast, The Baton Rouge Acupuncture and Women’s Health maintains a professional, well designed site with links to articles on wellness, fertility and gynecological issues.

Opportunities

Based upon an evaluation of the market, patient needs, and current competitive offerings, we believe there is an unfilled need for a multi-disciplinary acupuncture and Chinese medical clinic specializing in women’s health and fertility in Baton Rouge. Although there are several Western IVF clinics and fertility specialists in the area, there are currently no alternative health practitioners.

While there are several acupuncturists in general practice, no one specifically caters to women’s health other than Baton Rouge Acupuncture and Women’s Health. We think that many women in this area would appreciate and patronize an acupuncture clinic devoted solely to gynecology and obstetrics. We also believe that a substantial percentage of health care consumers are looking for alternatives to hormonal therapy, which carries a potential health risk, to costly and invasive procedures. We further believe that women who need services such as IVF will see the benefit in acupuncture and Chinese herbs which can more than double their chances for a viable pregnancy.


13

Threats & risks

Threats that pose significant risks to our business include:

a. The outlawing of acupuncture as an independently licensed profession in this state. Currently, acupuncturists may only work under supervision of a medical doctor.

b. The state or federal banning of Chinese herbsc. Statutory restriction of scope of practiced. Business &/or malpractice suitse. Key person illness or incapacity

Any of the first three occurrences could seriously hamper our clinic’s ability to continue to provide services to patients. However, laws granting the right to practice acupuncture as an independent profession in this state were renewed within the last year and will be in effect for at least another four years. There is currently no movement within this state or in the Federal government to ban Chinese herbs in general. Although some individual medicinals have been taken off the market, there is no evidence to suggest Chinese herbs will become unavailable for sale and prescription in the foreseeable future. Likewise, there have been no attempts to limit or reduce our current legally mandated scope of practice the last two times our acupuncture bill went through Sunset review. Should any of these three threats materialize, they would be fought by the AAAOM and their lobbyists as well as by professional acupuncturists.

We carry the maximum malpractice and business liability insurance in order to reduce the risk of an impact to the business in the event of a lawsuit. We believe this adequately protects our clinic from catastrophic damage or bankruptcy from such suits. In fact, there have been no malpractice suits against acupuncturists in this state in the last 15 years. In the event that I or future practitioners employed by Baton Rouge Acupuncture and Women’s Health became ill or otherwise incapacitated and unable to see patients for more than a few days, this could cause serious financial difficulty to this clinic. However, the clinic carries $100,000 of key person insurance for short term disability and loss of income insurance. Should it become clear that our practitioner would not be able to return to work for some time; the clinic would immediately advertise and hire a temporary or permanent substitute. We will build relationships with other professionals in order to provide our clients with service in the event of I or our inability to practice.


14

Strategic Planning and Services

Key competitive capabilities

In comparison to our primary competitors, we possess key competitive capabilities that we believe will go a long way toward ensuring the success of our business. Particularly important are the following key capabilities:

a. Great communication skillsb. Caring and compassionate bedside mannerc. Expertise in treating women’s health issuesd. Specialization in reproductive medicinee. Affiliation with Dr. Stella Passmore

We have a strong competitive advantage in our superior ability to treat women’s health issues. Baton Rouge has a need for health care practitioners specializing in women’s health as expressed by the existence of Women’s Hospital, a hospital devoted to the care of women. Though the city has several medical clinics that specialize in women’s health, none, to date, offer any Chinese medical treatments. Of the few acupuncturists in the city of Baton Rouge, we would be the only ones offering specialized care for women.

Our specialized focus on reproductive medicine gives us a significant competitive advantage. We have no competitors offering these specialized services. Because specialization leads to more rapid and increased clinical proficiency, and because increased clinical proficiency typically leads to more satisfied customers, specialization will garner us better word of mouth reputation.

Our affiliation with Dr. Stella Passmore gives us significant advantage. She has been a physician in Baton Rouge for 25 years whose specialty is also women’s health, and she is well respected in the community. This affiliation connects us into a well established network of doctors in the area, thus connecting us to thousands of potential patients.

Key competitive weaknesses

Because there are no other acupuncture practitioners in Baton Rouge specializing in women’s health and reproductive medicine, we have no direct competition. Though our competition is limited, we do posses some weaknesses that may limit the success of our business. These weaknesses are:

1. Lack of education in the community about Chinese medicine2. Resistance from medical community

We plan to offset both of these weaknesses by educating the community. Community lectures, short informative seminars, Q&A sessions with demonstrations, and research based brochures explaining offered services are all part of this plan.


15

Strategy

Our strategy is to focus 100% of our efforts on women’s health and reproductive medicine. By focusing all of our efforts and energy on this particular niche, we anticipate quickly becoming the leading provider of this specialty within Chinese medicine in our area. While other practitioners try to be all things to all people, we believe that our single focus will give us significant competitive advantages. When it comes to acupuncture, Chinese medicine and women’s health and reproduction we intend to be the choice of area patients.

In order to ensure our success in reaching our target audience, women of reproductive and menopausal age, we will need to educate the community as to what Chinese medicine has to offer them in terms of meeting their specific health care needs.

Implementing the Strategy

Because this strategy involves educating a large community, it will be implemented gradually over a period of time in the following stages:

Stage 1: Create detailed brochures for potential patients. Target date:October 1, 2010

Stage 2: Go to local IVF clinics. Speak to doctors and staff about what Chinese medicine has to offer in reproductive medicine.

Target date: Start this by October 2010

Stage 3: Join and address local Chamber of Commerce and business groups.

Target date:November 2010

Stage 4: Design and place ad in community newspapers. Target date:November 2010

Stage 5: Plan, advertise, and execute monthly Open House Target date: First open house in December 2010

Services and products description

Our basic service will be the provision of treatment for a variety of women’s health and reproductive conditions using acupuncture and its adjunctive modalities. These adjunctive modalities will include: moxibustion, cupping, bleeding and both internally and externally applied Chinese herbal medicines. Acupuncture refers to the insertion of fine needles into particular points on the body selected according to the theories and principles of Chinese medicine for the purpose of restoring balance to the functioning of the body and its internal organs. Acupuncture and its adjunctive modalities are relatively painless and free from side effects and can provide both remedial and preventive care. We use only the finest, sterile, disposable needles and try to employ the gentlest, least painful needle technique.


16

In terms of Chinese herbal medicines, we offer a full line of Evergreen Chinese herbal products including ready-made Chinese herbal pills and a full line of Chinese single herbs in powdered extract form. These two methods of dispensing Chinese medicinals allow us flexibility in tailoring our prescriptions to the specific needs of patients.

Additionally, we offer other services to help promote the health and well being of our patients. Reiki and Shiatsu massage sessions are available along with Tai Chi, Qigong, Yoga, and wellness classes.


17

Sales and Marketing

Marketing Strategy

The marketing message that we want to send is that we run a and professional, caring acupuncture clinic that offers premier acupuncture and herbal services to women of all ages. Additionally, Baton Rouge Acupuncture and Women’s Health is conveniently located, offers superior expertise and training in the area of women’s health, and maintains convenient office hours for working people.

Our marketing objective is to increase gross revenues to $10,000 per month by March of 2012. In order to do this we want to increase our customer base to 120 clients per month and also up-sell herbs and other services to our clients.

The primary target for marketing efforts will be women between the ages of 15 and 44 suffering from reproductive difficulties. The secondary target will be women between the ages of the onset of menarche and post-menopause (ages 14 and up). Therefore all print advertising, promotional materials, signage, etc. will picture women and will be graphically designed in a way which is attractive to women. Office décor will also take women into account and we will advertise in publications and venues likely to target the same demographics.

The primary target of our marketing efforts is/will be women of the Baton Rouge area. Therefore, all paid advertising will be spent in venues servicing these communities. We will avoid traditional marketing methods such as expensive advertising campaigns and instead will rely on lower cost creative approaches which will be pragmatic. We will drop any marketing strategies that do not work and replace it with new ones. We have a marketing effectiveness strategy in place to track overall effectiveness.

Our overall marketing goal is to rapidly draw in new patients and increase my visibility in the marketplace. We will achieve this by employing a cohesive marketing program emphasizing our unique strengths and advantages in the area of women’s health.

Specifically, we will build relationships with Western health care practitioners, especially those in the fields of assisted reproductive technologies and women’s health. We will offer oriental medicine packages for women with chronic health problems who need multiple treatments. We will advertise in local family publications, in church communities, and in local community newsletters, bulletin boards and websites.


18

Operations

Key Personnel

The key employee is Mary Magnolia, the owner and service provider for this business. Ms. Magnolia is a licensed Acupuncturist in the state of Louisiana, is board certified by the American Board of Oriental Reproductive Medicine (ABORM), and is a Doctor of Oriental Medicine from Yo San University in California. Mary graduated with a Master’s degree in Oriental Medicine from the Academy of Oriental Medicine in Austin and has been practicing acupuncture for the last two years while completing her doctorate. Before becoming an acupuncturist, Mary was involved in software development as a freelance consultant. Mary decided to pursue a career in acupuncture and focus on women’s health services after meeting and hearing the experiences of many of her friends and business contacts struggle with women’s reproductive health challenges. Having seen the success of TCM during her doctorate program and having seen the lack of services provided across the nation at large, Mary will bring her passion for quality, cutting edge research, human support, and education of these issues to her hometown of Baton Rogue. Mary will also bring her business and office skills acquired during her 10 years as a software consultant. Mary will contract out the services of legal, accounting, and laundry services, and bio-waste disposal for the first five years.

Organizational Structure

Owner and CEO Mary MagnoliaManagement: Mary MagnoliaFinance: Mary MagnoliaMarketing and Sales: Mary MagnoliaLegal Services: contracted: Stewie Legitt, Attorney at LawAccounting: contracted: Elizabeth Pennywise, CPAMedical Advising Dr. Stella Passmore

Customer Service and Support

ReceptionistWe will contract out receptionist services for the first five years through www.themessagecenter.com. This is a web based phone service, which will provide us with a single person who is assigned to our unique business. This person will serve a key role in first contact for many patients. We have chosen this service due to the personal touch that they offer. We can also educate our representative to answer more basic questions and direct patients to our website for more information and education. Schedules will be coordinated through Google Calendar and iPhone applications.

Physical FacilitiesWe are currently building out our office to meet the specific needs of our practice. We have a stand-alone house that is being converted into a clinic. The house is 800 square feet with 3 treatment rooms, a reception/waiting area, a bathroom, and storage which can be locked and secure to meet HIPPA requirements. Parking is onsite and the location is near many local medical offices, hospitals, and the IVF clinic. The basic impression we wish to convey is a clean, warm, safe, relaxing and inviting


19

http://www.myreceptionist.com/

environment. Our goal is to soften the whole clinical setting to bring a more human aspect to the experience of our patients. We will use natural materials, in earth tones, with subdued color accents in all our floors, walls, and furnishings. Furniture, fixtures, and décor will be sparse and “Zen-like”, yet comfortable and functional. Our treatment rooms will follow the same principles and are fully equipped for the standard scope of practice. Our space is unique, as it has an area, which can be used for small groups and classes. This feature will help us to establish a community feeling to our clinic, will help to educate our clients through monthly open houses, and will serve as a focal point for our word of mouth marketing campaign.

Networking Due to the nature of our scope of practice, some of the fertility services offered will be in conjunction with other medical services from outside sources. We will use this situation to our advantage and focus on making our practice a central hub for networking and referrals for all aspects of women’s health and reproductive services for the Baton Rouge area at large. We will also use this free flow of information as part of our word of mouth marketing.

Insurance

a. We will maintain full coverage as required by state and local laws.b. Standard business liability insurancec. Acupuncture malpractice insuranced. Rental insurancee. Personal health and injury insurance for Mary Magnolia, owner and CEO

Licenses

We are fully licensed and meet all requirements to practice lawfully within the state of Louisiana and the city of Baton Rouge.

a. National certification from NCCAOMb. State acupuncture licensec. Contracted MD supervision through Dr. Stella Passmored. State and local business identification and tax number


20

Financial Management Plan

Capital Equipment and Supply list (start-up budget)

Start-up cost Worksheet See the attached Capital Expenses spreadsheet for details. The capital equipment and supply list is also detailed in this document.

Item Cost ExplanationLegal Fees $500 $500 retainer fee from attorney to review

all leases, business agreements, etc. Accountant $500 This is his yearly charge for this serviceCity Occupational License $50 Yearly occupational licensing fee in Baton

Rouge LAFurniture and supplies

Treatment Reception Office Back office Bathroom

$2310$2232.50$2678.50$2205.50$101

This list is detailed in the Capital Expenses worksheet, attached at the end of this document.

Computer $3000 This includes computer, printer/fax/copier combo, and software

Insurance Business owners general

insurance Malpractice insurance Disability Life

$700

$700$500$250

$2150 total

Advertising and Promotional Materials $3000 Annual allowance for advertising – year 1Deposits

Lease Utility

$3300$1000

3 months lease due up frontSetup and turn on fees for all utilities including electricity, water/sewage, phone and internet

Rent $12100 $1100/month until the break-even point at the 11th month.

Salaries $24200 $2200/month until the break-even point at the 11th month.

Total $5689.50


21

Operating budget and Proforma Profit and Loss Statement

A summary projected revenue and expense sheet, which includes years 1 – 3, is attached to this document as is a detailed revenue and expense sheet.


22

Appendices

Research references

Acupuncture and Fertility Researchhttp://www.aborm.org/_research/research.htm

http://nccam.nih.gov/research/results/spotlight/020808.htm

http://www.allacademic.com//meta/p_mla_apa_research_citation/0/2/0/6/1/pages20610/p20610-1.php

Marketing Referenceswww.kff.org

www.chcf.org

www.hih.gov/news/health/jul2009/nccam-30.htm

www.rxlist.com/script/main/art.asp?articlekey=104255

www.cdc.gov/nchs/fastats/fertile.htm

Demographicshttp://www.city-data.com/neighborhood/Highland-Baton-Rouge-LA.html


23

http://www.city-data.com/neighborhood/Highland-Baton-Rouge-LA.html

http://www.cdc.gov/nchs/fastats/fertile.htm

http://www.rxlist.com/script/main/art.asp?articlekey=104255

http://www.hih.gov/news/health/jul2009/nccam-30.htm

http://www.chcf.org/

http://www.kff.org/



http://nccam.nih.gov/research/results/spotlight/020808.htm

http://www.aborm.org/_research/research.htm

Demographic maps for area served

1. Click here for Year 2000 Census data for the East Baton Rouge Parish.

2. Neighborhood data is available at this link: http://www.city-data.com/neighborhood/Highland-Baton-Rouge-LA.html. Summarized, it is as follows:

Area: 5.531 square milesPopulation: 12,408

Population density:Highland: 2,243 people per square mileBaton Rouge: 2,965 people per square mile


24



Zip codes: 70808, 70810.

Males: 6,019Females: 6,390

Median age:Males:This neighborhood: 38.0 yearsWhole city: 30.4 years

Females:This neighborhood: 41.0 yearsWhole city: 32.1 years

Average household size:Highland: 2.5 peopleBaton Rouge: 2.4 people


25

http://www.city-data.com/zips/70810.html

http://www.city-data.com/zips/70808.html

Average family size:Highland: 3.0 membersBaton Rouge: 3.1 members

Percentage of married-couple families (among all households):Here: 58.6%city: 35.8%

Percentage of married-couple families with children (among all households):Highland: 24.1%Baton Rouge: 15.3%

Percentage of single-mother households (among all households):This neighborhood: 5.4%Baton Rouge: 13.5%

Educational AttainmentLess than high schoolHigh school or equiv.

Less than 1 year of college1 or more years of college

Associate degreeBachelor's degreeMaster's degree

Profess. school degreeDoctorate degree

Highland Baton Rouge average

Rooms in owner-occupied houses/condos in Highland:

1 room2 rooms3 rooms4 rooms5 rooms6 rooms7 rooms8 rooms

9+ rooms

1 room: 02 rooms: 1013 rooms: 6494 rooms: 1,3685 rooms: 8,0436 rooms: 11,2097 rooms: 11,9098 rooms: 8,033

9+ rooms: 8,943


Rooms in renter-occupied apartments in Highland:1 room2 rooms3 rooms

1 room: 7232 rooms: 1,390


26

4 rooms5 rooms6 rooms7 rooms8 rooms

9+ rooms

3 rooms: 2,5044 rooms: 6,2425 rooms: 3,4676 rooms: 2,3377 rooms: 1,1568 rooms: 261

9+ rooms: 377


Bedrooms in owner-occupied houses and condos in Highland:

no bedroomone bedroomtwo bedroomsthree bedroomsfour bedroomsfive+ bedrooms

no bedroom: 01 bedroom: 3582 bedrooms: 3,0733 bedrooms: 27,0594 bedrooms: 16,871

5+ bedrooms: 2,897


Bedrooms in owner-occupied houses and condos in Highland:

no bedroomone bedroomtwo bedroomsthree bedroomsfour bedroomsfive+ bedrooms

no bedroom: 7231 bedroom: 3,5662 bedrooms: 8,2113 bedrooms: 5,0504 bedrooms: 910

5+ bedrooms: 0


Average number of cars or other vehicles available in houses/condos:This neighborhood: 2.0Baton Rouge: 1.8

Average number of cars or other vehicles available in houses/condos:Here: 1.6city: 1.2

Percentage of units with a mortgage:Highland: 68.4%Baton Rouge: 62.6%

Housing prices:Average estimated value of detached houses in 2007 (77.6% of all units):


27

Highland: $270,974Baton Rouge: $191,497

Average estimated value of townhouses or other attached units in 2007 (1.9% of all units):This neighborhood: $107,023city: $116,485

Average estimated '07 value of housing units in 3-to-4-unit structures (7.4% of all units):Highland: $19,004city: $127,476

Average estimated '07 value of housing units in 5-or-more-unit structures (12.4% of all units):Highland: $19,321Baton Rouge: $115,736

Occupations of males:Percentage of males in management occupations (except farmers):Here: 13.8%city: 8.8%

Percentage of males in business and financial operations occupations:Here: 7.1%city: 4.1%

Percentage of males in computer and mathematical occupations:Here: 2.6%city: 2.4%

Percentage of males in architecture and engineering occupations:Here: 8.3%city: 5.0%

Percentage of males in life, physical, and social science occupations:Here: 3.2%city: 2.4%

Percentage of males in legal occupations:Here: 6.4%city: 2.7%

Percentage of males in education, training, and library occupations:Here: 10.0%city: 5.6%

Percentage of males in arts, design, entertainment, sports, and media occupations:Here: 2.5%


28

city: 2.0%

Percentage of males in healthcare practitioners and technical occupations:Here: 3.6%city: 2.5%

Percentage of males in service occupations:Here: 8.9%city: 14.6%

Percentage of males in sales and office occupations:Here: 17.2%city: 18.4%

Percentage of males in construction, extraction, and maintenance occupations:Here: 6.8%city: 13.6%

Percentage of males in production occupations:Here: 4.5%city: 6.8%

Percentage of males in transportation and material moving occupations:Here: 4.2%city: 9.3%

Occupations of females:Percentage of females in management occupations (except farmers):Here: 9.1%city: 6.4%

Percentage of females in business and financial operations occupations:Here: 6.9%city: 4.7%

Percentage of females in computer and mathematical occupations:Here: 2.9%city: 1.3%

Percentage of females in life, physical, and social science occupations:Here: 2.6%city: 1.2%

Percentage of females in community and social services occupations:Here: 3.7%city: 2.3%


29

Percentage of females in legal occupations:Here: 2.7%city: 1.6%

Percentage of females in education, training, and library occupations:Here: 15.8%city: 10.2%

Percentage of females in arts, design, entertainment, sports, and media occupations:Here: 2.8%city: 1.9%

Percentage of females in healthcare practitioners and technical occupations:Here: 5.0%city: 5.7%

Percentage of females in service occupations:Here: 10.7%city: 20.0%

Percentage of females in sales and office occupations:Here: 34.5%city: 38.7%

Percentage of females in transportation and material moving occupations:Here: 1.6%city: 1.8%

Percentage of people 18-64 in Armed Forces:Highland: 0.0%Baton Rouge: 0.1%

Education in this neighborhood (subdivision or community):Percentage of people 3 years and older in K-12 schools:Highland: 16.8%Baton Rouge: 18.9%

Percentage of people 3 years and older in undgraduate colleges:Highland: 10.0%Baton Rouge: 12.0%

Percentage of people 3 years and older in grad. or professional schools:Highland: 2.6%Baton Rouge: 2.4%

Percentage of students K-12 enrolled in private schools:Highland: 48.5%


30

Baton Rouge: 21.1%

Percentage of population below poverty level:Highland: 7.4%Baton Rouge: 24.0%

Median year owner moved in (as recorded in 2000):Highland: 1986Baton Rouge: 1987

Median year renter moved in (as recorded in 2000):Highland: 1998Baton Rouge: 1999

Median rent in 2007:Highland: $912Baton Rouge: $553

Percentage of married-couple families with both working:Highland: 62.4%Baton Rouge: 56.7%


31

Documents

Executive Summary - Cat's TCM Notescatstcmnotes.com/downloads/Practice Management/PM 2... · Web viewBaton Rouge Acupuncture and Women’s Health is an acupuncture and Chinese medical