BUSINESS PLAN FOR
<COMPANY NAME>
PRACTITIONER'S NAME
DATE
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SECTION ONE: EXECUTIVE SUMMARY
The market demand for alternative and complementary health services is growing exponentially and is
now recognized by consumers and all levels of government as a viable and essential component to the
health care of Canadians. (see Appendix ____) Naturopathic Physicians are one of the key alternative
health practitioners trained, regulated and licensed to fulfill this growing need. Naturopathic Medicine
is a multidisciplinary holistic approach to health care which blends centuries old natural, nontoxic
therapies and current advances in the study of health and human systems, covering all aspects of family
health from prenatal to geriatric care on the physical, mental and emotional level. (see Appendix B)
The <Business name> clinic will address the growing needs by offering an <input business focus>.
<Business name> seeks an operating line of credit of <$_______> to complete the leasehold
improvements estimated at <$____>; purchase furniture and equipment estimated at <$_____>; supplies
estimated at <$______>; <$______> in opening inventory costs and to the remaining <$________> to
cover initial operating costs for the first four months of business. The first year revenue projections for
<Business name> is projected to be <$____________> with a net profit before taxes of <$_________>
in year 1, <$_________> in year 2 and <$________> in year 3. This year 1 projection is based on an
average of roughly <X>% utilization of space and about <$____> per person per billable working day.
The leasehold improvement period for the space is planned to begin in ____________ of 20__ with an
opening date planned for _____________________.
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SECTION TWO: BUSINESS OVERVIEW
A. <Business name> DIRECTION
<Business name> clinic will provide a . . . (you need two to three sentences that outline your business
focus, client base and business direction) <Business name> will consist of the following: (note: the
following is an example of what you might include)

It will be staffed by two full-time Naturopathic physicians responsible for delivering the primary
health care and overseeing the business operations and management. (Bios in Section 4 and resumes
attached).

_____ complementary health care practitioners, such as massage therapists and registered nutritionist
who will offer auxiliary health care support. (update as needed)

The clinic will consist of ___ treatment rooms.

<Business name> will also provide an in-house dispensary consisting of nutritional supplements
(vitamins / minerals), homeopathic remedies, botanical medicines and Naturopathic health products
for both patient and consumer accessibility at prices comparable to those of local merchants, with the
assurance that these products have been researched, and are professional quality.
The first year revenue projections for <Business name> is based on an average of roughly <x%>
utilization of clinic space and is projected to be <$__________> with an net profit before taxes of
<$_______>. <x%> of the net profit will be used to retire outstanding indebtedness, <x%> towards
equipment and capital investment and <x%> as an increase in take home pay.
The revenue streams include

Naturopathic patient visits;

In-house seminars;

Service fees from other practitioners; and

Sale of Naturopathic and natural health products.
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<Business name> clinic will be located <include address, town or area within a city and major
intersections>. There is ample free parking directly in front and behind the clinic. It is wheelchair
accessible. The hours of operation are as follows (subject to change);
Monday Tuesday Wednesday -
Thursday Friday Saturday -
The commercial lease agreement will be secured for a 5 year period with a 5 year renewal option.
(updated as needed)
B. STRENGTHS OF <Business name> (Personalize for your clinic and yourself)

Both Naturopathic physicians have had prior experience in business management and in running
their own business.

Business associates, referral bases and an initial patient base have already been established as both
____________________

Patients will have access to either a male or female practitioner.

The local and surrounding community is under serviced by Naturopathic physicians.

The main insurance companies cover Naturopathic treatments are part of their benefit package.

Most patients that seek alternative / complementary therapies utilize more than one form of treatment
modality (Naturopathic, massage, nutritional support) and purchase natural health products as part of
their treatment strategy. <Business name> will offer an integrated treatment option and will ensure
that there are strong relationships developed with other respected health providers.
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C. RISKS

Naturopathic services are currently not covered by OHIP. However, most insurance companies
cover Naturopathic treatments and patients themselves are increasingly looking for alternatives to
conventional medical treatments, especially in the area of chronic health care concerns.

There is a perceived high cost associated with Naturopathic treatments. The local demographics of
<location> and surrounding areas support a higher income community with greater disposal income.
Also, Naturopathic care provides long-term health care savings due to preventative measures and
increased education and training on healthy living.
Note: As of 2008 regulation of Naturopathic Medicine in Ontario switched from the Drugless
Practitioners Act to the Regulated Health Practitioner's Act versus. This positions Naturopathic
Medicine under the same provincial legislative body as Medical Doctors, Dentist, Pharmacist, and other
conventional health care providers. This will also enhance the profile of Naturopathic Medicine from a
governmental and insurance perspective and put additional emphasis on consumer demands and
consumer safety. Overall, this legislative change is anticipated to further drive the demand for
Naturopathic care.
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SECTION THREE: FINANCIAL DATA
A. FINANCIAL BUSINESS ASSUMPTIONS (update so it is specific to your business)

Revenue for the first year is projected to be <$___________>.

Variable expenses are projected to increase by 10% in years 2 and 3.

Revenue figures are based on 194 billable days per year for each Naturopathic Doctor and <x#>
billable days for the five associates. This works out to <x#> total billable days, or roughly $225 per
billable day based on an average utilization of 50% for Naturopathic care in year 1 and a steady
utilization of 70% in years 2 and 3. .

Cost of an initial Naturopathic patient visit will be <$____> for 1 1/2 to 2 hour appointment which
will consist of detailed patient intake and physical exam.

Cost of follow up Naturopathic appointments will be <$__> for 1/2 an hour.

Cost of acupuncture / walk-in acute appointments will be <$__> for 20 minute appointments.

The gross profit for product sales will average out to be about 65% based on standard market markup
of 90% with 40% of patients spending on average of $50 per patient visit.

All laboratory costs will consist of a 10% markup.

Service contract with massage therapist, nutritionist based on $60 per day, averaging 25 days a
month for 2 associates. In year 2 the daily rate will increase to $65 per day and $70 per day in year 3
which is the standard going rate for comparable services.

All practitioners will carry their own malpractice insurance and benefits and will pay for professional
memberships and associations. These costs will not be included in the operating costs of <Business
name>.

Each practitioner will pay for their own cost of conferences and professional education. These costs
will not be included in the operating costs of <Business name>

The landlord will provide a minimum of 6 months rent free based on the current leasehold
improvement plans.
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The above assumptions are conservative for the following reasons:

No escalation of service fees and patient rates within the 5 year period

Utilization of space and time for the first year is based on an average of 50% for the Naturopathic
physicians and roughly 20% for the auxiliary health care associates

The term and demand loans interest is calculated at prime +5% which allows for fluctuations within
the 5 year period.
B. CURRENT ASSET LIST
Item
Medical equipment
Massage tables (2) / chair (1)
IBM Pentium (2)
17"color monitor (2)
Medical text/ lending library
Total
(list all assets you are transferring to the business)
Date of Purchase
2000
1996 / 2001
1998
1998
1999-2002
Approximate Value
$2,000
1,650
1500
500
3,000
$11,400
C. OVERVIEW OF STARTUP COSTS
The total startup costs are estimated to be <$_________>. This includes <$________> in leasehold
improvements, <$_______> in furniture and fixtures, <$________> in equipment, <$_______> in
supplies, <$________> in inventory, and the remaining <$________> as a contingency. Startup costs
have been determined by sourcing current suppliers and seeking professional advice.
The current facilities at <address> require minimal leasehold improvements and no major changes to
electrical or heating systems that are currently in place. The <$________> in leasehold improvements
include the following: construction of two additional rooms; replacement of current carpet with tile;
upgrading of current lighting; the installation of a sinks; painting and the construction of a reception
desks and counters in two rooms. Most of the required furniture and fixtures will be sourced through
auctions and used furniture stores to maintain lower start up costs.
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D. OVERVIEW OF PRODUCT INVENTORY
The startup inventory costs are estimated to be <$________>. All inventory will be kept in glass display
cases or in a locked dispensary room to ensure tight inventory control. As most suppliers have
distribution houses local to the Toronto area and turn around time is within 1-2 days inventory stock will
be maintained at minimal level.
<Business name> will carry professional products that complement the treatment plans outlined to
patients and professional health products that are not easily sourced at local drug stores and health food
stores. The average markup on health products is 90%; to cover off inventory loss, sales discounts and
promotions an average of 65% has been used in all gross profit calculations.
E. OVERVIEW OF INCOME STATEMENT PROJECTIONS
The attached income and expense projections show an anticipated net income before taxes in the first
operating year is <$_______>.
F. OVERVIEW OF CASH FLOW PROJECTIONS
A bank line of credit of <$_________> is requested, but for cash flow purposes a bank line of credit of
<$_________> has been used to demonstrate tight financial control and to ensure an operating
contingency. The cash flow shows a positive monthly cash balance after six months of operation and an
overall net cash balance of <$_______> at the end of the first operating year of business. As stated
previously, 50% of the net profit will be used to retire outstanding indebtedness, 25% towards equipment
and capital investment and 25% as in increase in take home pay.
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SECTION FOUR: MARKETING AND PERSONNEL
A. The Market and Competition
With the more recent popularization of alternative medicine, the highest percentage of the population
utilizing Naturopathic medicine is below 50 years of age, higher educational level and greater disposable
income. The local demographics for the <location> area show <state the demographics and market
analysis data> (See Attachment C)
As of 1991 there are 360 Naturopathic physicians in Ontario. The breakdown of Naturopathic doctors in
the <location> and surrounding areas are as follows:
Area
Population (2001 estimate)
# Naturopathic physicians
B. Marketing Plan
The goal of <Business name> is to offer the highest standard of Naturopathic medical care, in a
comfortable and professional environment. We will offer this unique experience at competitive prices.
As in most service based businesses, the most effective marketing is word of mouth. <Business name>
will focus on delivering quality service and patient care and will implement a referral recognition
program.
The marketing strategy includes:
1. Grand opening planned for November to introduce all existing professional contacts and current
client base to the new facilities.
2. Direct mailing and personal visits to all local physicians, health-related associations, health food
stores/pharmacies, and support groups.
3. Ongoing educational seminars and introductory presentations to clients, local consumers, and
professionals.
4. Teaching assignments, continuing to present at local conferences and attend relevant conferences as
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a means of referral and promotion of <Business name> clinic.
5. Referrals from the Canadian Naturopathic Association and Ontario Naturopathic Association are
based on postal code and are self-automated by a 1-800 line or Internet access.
6. Yellow page advertisements in the <location> and surrounding areas.
7. Joining and participating in the local Chamber of Commerce.
C. BIOS ON NATUROPATHIC DOCTORS
D. PROFESSIONAL RELATIONSHIPS
<Business name> is advised by the following professionals:
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