BUSINESS PLAN FOR

<COMPANY NAME>
PRACTITIONER'S NAME
DATE

Business Plan Template

1 of 10

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 _____________________.

Business Plan Template

2 of 10

Business Plan Template

3 of 10

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;
Business Plan Template

4 of 10

 In-house seminars;
Service fees from other practitioners; and
Sale of Naturopathic and natural health products.
<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
Business Plan Template

5 of 10

ensure that there are strong relationships developed with other respected
health providers.

Business Plan Template

6 of 10

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.

Business Plan Template

7 of 10

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>
Business Plan Template

8 of 10

 The landlord will provide a minimum of 6 months rent free based on the current
leasehold improvement plans.

Business Plan Template

9 of 10

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

(list all assets you are transferring to the business)

Item
Date of Purchase Approximate Value
Medical equipment
2000
$2,000
Massage tables (2) / chair (1) 1996 / 2001
1,650
IBM Pentium (2)
1998
1500
17"color monitor (2)
1998
500
Medical text/ lending library 1999-2002
3,000
Total
$11,400
C. OVERVIEW OF STARTUP COSTS
The total startup costs are estimated to be <$_________>. 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

Business Plan Template

10 of
10

be sourced through auctions and used furniture stores to maintain lower start up
costs.

Business Plan Template

11 of
10

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.

Business Plan Template

12 of
10

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.

Business Plan Template

13 of
10

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 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:

Business Plan Template

14 of
10