Medical Staffing Agency Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Medical Staffing Agency Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Medical Staffing Agency business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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Product Specifications:
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Medical staffing agencies operate in a unique capacity in that they are able to generate a significant amount of income by the placing medical professionals and related staff with homes and medically focus businesses. Given that these companies operate in a healthcare capacity, these companies are wholly immune from negative changes in the economy. In fact, the revenues of medical staffing agencies has increased significantly over the past 10 years as hospitals and practices have shifted their business model towards using independently contracted physicians, nurses, nurse practitioners, and physicians assistants rather than hiring them directly. The industry has experienced 10% annual growth in each of the last five years. Startup costs are associated with a medical staffing agency are considered to be moderate. Typically, these businesses can be started for as little as $100,000 all the way up to about $250,000 depending on whether or not the medical staffing agency is going to directly pay out payroll to contractors prior to when invoices are being paid. This is one of the biggest challenges as relates to operating a medical staffing agency is the management of cash flow given that medical professionals are very well paid and these firms must wait on the receipt of an invoice before they get paid for placing a doctor or nurse with a practice or hospital. The demand for these services is expected to increase significantly over the next two decades as more people enter the baby boomer years and require a greater degree of medical care. One of the things that should be discussed off the bat and is that a medical staffing agency should have a qualified attorney on retainer in order to make sure that the business is complying with all employment laws at all times. These laws are highly complex and they are frequently changing given the constantly changing landscape of healthcare. As such, a medical staffing agency does need to allocate a significant portion of their operating expenses towards professional fees and licensure especially as it relates to receiving competent legal advice.
Almost all private investors and financial institutions are willing to provide a significant amount of capital support for the development of a new medical staffing agency. This is due to the fact that these businesses are able to generate their revenues in any economic climate. Usually, most entrepreneurs looking to get into the medical staffing agency industry will seek to acquire a working capital line of credit in order to finance the ongoing contractor expenses that are associated with this type of business. Provided that the businesses specializing in providing physician, nurse practitioner, nursing, or physician assistant labor then it these businesses are an excellent candidate for this type of financing. Usually, a entrepreneur is going to be required to make a 10% to 20% capital infusion in order to start this type of business. It is important that the entrepreneur also have a significant amount of experience in the medical staffing agency or employment agency industry. Of course, a medical staffing agency business plan is going to be required. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features industry-standard statistics that are on par with that of third-party employment agencies. Beyond the anticipated financial results over a three-year period, a medical staffing agency business plan should offer also focus significantly on the number of hospitals and medical practices within any given market. Given that many people do not stay in the same place for their for their lives, it is important for these businesses to have an understanding of the number of medical professionals that live within any given market, or employment status, and the number of positions that are open at any given time. Given the revolving door nature of employment these days this is something that needs to have special attention paid to at all times.
A medical staffing agency marketing plan should focus significantly on developing ongoing relationships with recruiters and human resources departments within major hospitals, hospital systems, and large-scale group practices. This is the type of business that does not need to market its services to the general public so any type of print or general marketing campaign can be to a minimum. Of course, if a medical staffing agency is going to be providing nurses for in-home care and a modest amount of localized marketing should be carried out. This includes maintaining a website that showcases the business, the types of medical professionals employed by the company, per hour pricing information, and contact information. Presence on social media is not needed for a medical staffing agency unless, again, there are going to be home health aides being placed directly with individual patients or families.
A medical staffing agency SWOT analysis should be produced as well. As it relates to strengths, these businesses are always able to remain profitable and they will have access to capital on an ongoing basis given the economically secure nature of their operations. The barriers to entry are considered to be moderately high once a business is established within any given market. For weaknesses, these businesses have a very high operating costs given that they must front the expenditures relating to providing services to a hospital or medical practice. As such, a large amount of capital needs to be held on hand at any given time in order to properly carry out the services. For opportunities, this is pretty simple given that most medical staffing agencies can aggressively expand their operations by developing satellite offices within any given regional market. Again, there is going to be ongoing and continued demand for these types of services over the next two decades and the opportunities for aggressive expansion are significant. Beyond establishing additional locations and offices, a medical staffing agency can specialize in providing medical professionals that have highly unique specialties. This includes placing surgeons, orthopedists, specialized nurse practitioners, and specialized physicians assistants with large hospital systems. For threats, this is going to be one of the most challenging aspects of developing the business plan and marketing plan specific for a medical staffing agency. There are ongoing changes to the regulations regarding healthcare reimbursement – via both private insurance and publicly funded health systems – that must be addressed on a daily basis. There are highly political aspects to the United States economy and have such an entrepreneur that is looking to enter this field to have a complete understanding of how a potential reduction in publicly funded system reimbursements would impact the way that revenues from medical labor occurs. This is a risk that is being faced by all medical businesses and medical staffing agencies are no different.
In closing, a medical staffing agency can be a wonderful and highly profitable business investment provided that the owner has the appropriate understanding of the industry and the context necessary to develop placement for medical professionals at the onset of operations.
Medical Staffing Agency Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a medical staffing agency while showcasing the expected financials and operations over the next three years. The Medical Staffing Agency, Inc. (“the Company”) is a New York based corporation that will provide outsourced HR management and employment solutions for clinics, hospitals, and related medical facilities in its targeted market. The Company was founded by John Doe.
1.1 The Operations
The Medical Staffing Agency intends to become a regional provider of temporary and permanent employment solutions for nurses/doctors/medical technicians that work in clinics, hospitals, assisted living facilities, and outpatient centers. The Company will also have the ability to easily source other medical professional such as physical therapists, speech pathologists, X-ray technicians, imaging equipment specialists, and other allied health professionals.
There are a number of other related medical staffing services that are in strong demand among the Company’s potential clients. Once the Medical Staffing Agency establishes is initial revenue streams, the business could easily expand into other aspects of the local medical industry.
The third section of the business plan will further describe the services offered by the Medical Staffing Agency.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 5% fixed interest rate. The financing will be used for the following:
- Development of the Company’s office location.
- Financing for the first six months of operation.
- Capital to develop ongoing relationships with hospitals, clinics, and medical facilities.
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
The Medical Staffing Agency’s mission is to become the recognized leader in its targeted market for outsourced employment solutions for medical services businesses.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the medical employment and staffing industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target hospitals, clinics, and other healthcare facilities within the target market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Medical Staffing Agency, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Medical Staffing Agency, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Medical Staffing Agency. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
As discussed in the executive summary, Medical Staffing Agency, Inc. will become a regional provider of permanent and temporary employment positions for nurses, doctors, and associated medical staff. Below is a brief overview of the services provided by the business.
The primary focus of the Company’s services is the nursing segment of the market. The Medical Staffing Agency will be able to provide its clients with both traditional registered nurses as well as several nurses that have obtained specialties such as their nurse practitioners license or specific training in fields such as neonatal care, surgery, emergency medicine, psychiatric care, and other medical specialties. The Company will generates substantial gross margins from these services.
The Medical Staffing Agency will also be able to provide clients with other health professionals such as:
- Physicians (internists and specialties)
- Physical Therapists
- X-Ray and Imaging Equipment Technicians
- Speech Therapists
- Pharmacists and Pharmacy Technicians
- Healthcare Administrative Staff
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the medical staffing industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, medical staffing companies operate with great economic immunity as there is currently a shortage of labor in the medical industry. Additionally, people will continue to get sick and require medical attention despite deleterious economic conditions, and the business will be able to remain profitable in any economic climate.
4.2 Industry Analysis
As a whole, medical staffing agencies in the United States generate about $20 billion dollars with of revenue on a yearly basis. Approximately 1/3 of the industry is specifically geared toward the healthcare segment of the market.
The industry generates $15 billion a year of payrolls, and employs almost 350,000 people. The industry is expected to grow tremendously over the next two decades as more people (especially baby boomers) require medical services.
This is a mature industry, and the future growth rate will mirror that of the economy as a whole. As discussed above, over the next ten years – the growth rate of the industry will accelerate given the greater demand for healthcare among senior citizens. The Company will continue to recruit qualified medical personnel to accommodate these needs.
4.3 Customer Profile
The Medical Staffing Agency intends to target physician practices (group and solo), hospitals, and assisted living families with the intent to develop ongoing employment contracts. Among these facilities, Management has outlined several demographics that it will use when formulating and executing its marketing strategies:
- Annual revenues exceeding $1,000,000 per year
- Has continued needs for qualified nurses, technicians, and associate physicians
- Operates as a general hospital or specialty practice
- Operates within 50 miles of the Company’s office
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Medical Staffing Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Medical Staffing Agency.
5.1 Marketing Objectives
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
- Establish relationships with hospitals, assisted living facilities, out patient surgical centers, physicians’ practices, and other medical facilities.
- Develop referrals with allied health professional practices.
- Aggressively use social media networks in order to recruit qualified professionals.
5.2 Marketing Strategies
The Company intends to develop a referral network from doctors, surgeons, hospitals, and post operative clinics within the target market. Since the Company is marketing directly to medical professionals and establishments, the costs associated with advertising are minimal.
The Company will also use traditional forms of marketing that are targeted towards medical professionals in the target market community. Management intends to market directly within locally based medical journals for the medical profession.
In regards to larger clients, like hospitals and outpatient facilities, the Medical Staffing Agency will directly contact these businesses to establish ongoing business relationships. Registered nurse, technician, and physician outsourcing is the most profitable aspect of this business, and the Company. should rapidly establish these relationships so that the business can immediately generate revenue from these sources.
Finally, the Medical Staffing Agency will develop its own website that will feature information about the business, contact information, and preliminary pricing schedules for temporary and permanent medical staffing solutions that the Company offers. The Company will also use targeted advertisements among major social media platforms such as LinkedIn and Facebook. A major focus of these operations will be for recruiting nurses as they are in immense demand at this time among medical staffing companies.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- The Medical Staffing Agency will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to changes in the economy. The demand for nurses and associated medical professionals has continued to rise, and will continue to do so regardless of the state of the economy. Medical businesses are fully insulated from changes in the general economy as people will continue to require medical care. As such, there is very little risk that the Company will have any issues with generation.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
