1.0 Executive Summary
The purpose of this business plan to showcase the ongoing development of a non-emergency medical transport business based in Austin, Texas. Deutsch Medical Transport Group LLC (“the Company”) was founded by Matthew Deutsch with the intention of providing a wide range of cost-effective solutions for people that need non-medical transportation as well as seniors that require ongoing general transportation services. At this time, the Company is seeking $200,000 to establish it operations.
Operations
The primary revenue center for the business will come from the ongoing transportation of individuals to medical facilities throughout the greater Austin area. The business will coordinate these efforts with medical facilities, hospitals, social workers, and in-home care agencies that work with seniors on an ongoing basis. The Company will generate $4.00 per mile through these operations.
To complement this primary revenue stream, the Company will be actively involved with providing transportation for seniors that need to go to grocery stores, to visit their families, and other destinations throughout the Austin area. The secondary revenue stream will allow for a highly predictable profit.
The third section of this non-emergency medical transport business plan will further discuss the operations of the business.
The Financing
As noted above, the Company is currently seeking $200,000 to establish its operations. The vast majority of this funding will be used specifically for the acquisition of vehicles that can be used to properly transport individuals that have medical issues and senior citizens. Matthew Deutsch will contribute $50,000 towards the venture which will be principally used for working capital purposes.
As the Company expands its operations, the business could easily secure additional funding in order to acquire a greater number of vehicles. This business plan assumes that the business will use its after-tax profits for expansion purposes.
The Future
The Company will conduct extensive direct outreach with medical facilities throughout the target market area as well as with in-home care agencies that do not render transportation services. The business will also take a public facing approach to its marketing in order to establish ongoing relationships with senior citizens that no longer drive and need transportation on an ongoing basis.
Market Overview
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The $200,000 a debt capital and $50,000 of equity capital will be allocated towards the following:
2.2 Management and Investor Equity
Matthew Deutsch is the 100% owner of Deutsch Medical Transport Group LLC.
2.3 Exit Strategies
Specialize medical and personal transportation companies are valuable businesses given the highly predictable reams of revenue that they produce on an ongoing basis. In the event that the business is to be sold, the Company could easily find a buyer that is seeking to enter the non-emergency medical transport business or specialized personal transport industry. Historically, NEMT companies typically have a sales price of two times the prior year’s earnings.
3.0 Operations
As noted in the executive summary, Deutsch Medical Transport Group will be actively involved in providing a wide range to transportation services to the general public with a major focus on providing non-emergency medical transportation. The Company will generate substantial per mile fees through these operations. It should be noted that the business will have a specialized van that can accommodate wheelchairs as well as gurneys when a client needs this type of additional comprehensive transportation arrangement.
The business’ ability to provide ongoing senior transport will also contribute substantially to the ongoing profitability of business. Most importantly, these engagements will be produced on a highly predictable basis which provide a steadiness to the Company’s income.
All drivers will be properly licensed by the State of Texas to render non-emergency medical transport services. All drivers will also be directly employed by the business. All vehicles operated by the Company will have GPS tracking.
4.0 Overview of the Organization
4.1 Registered Name
Deutsch Medical Transport Group LLC. The Company is registered as a limited liability Company in the state of Texas.
4.2 Commencement of Operations
The business will begin its non-emergency medical transportation operations starting in the fourth quarter of this year.
4.3 Mission Statement
To provide cost-effective transportation solutions on a non-emergency basis to the Austin public.
4.4 Vision Statement
To become well noted as a preeminent non-emergency medical transportation business within this market.
4.5 Organizational Objectives
• Properly hire drivers that have a complete understanding of how to work with individuals that required non-emergency medical transportation.
• Conduct extensive direct outreach with in-home healthcare agencies that do not provide transportation services to their clients.
• Use multiple forms of online marketing, including search engine optimization for the Company’s public facing operations.
• Adhere to all laws and regulations regarding senior transportation services and non-emergency medical transportation services.
• Established ongoing referral relationships with physicians’ offices, dialysis centers, and hospitals within the target market.
• Continue to acquire additional vehicles that the business can expand as the businesses visibility within Austin grows.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the non-medical emergency transportation business plan will focus on the current economic climate, the industry, the demographic and profile, and competition.
Inflation is currently at a higher rate than what was initially anticipated by many economists. This has been principally due to the evolving fiscal policy that the United States government has implemented.
In regards to economic viability, the demand for non-emergency medical transportation services will remain incredibly strong, even during an economic recession. For senior citizens and those with mobility issues, it is absolutely imperative that they have access to services like those offered by Deutsch Medical Transport Group in order to bring them to medical facilities. The secondary stream of revenue by providing senior transportation services will further contribute to the economic stability of the business.
5.2 Industry Analysis
Within the United States, there are 6,000 companies that are actively involved with providing senior transportation services and non-emergency medical transportation services to the general public. Each year, these businesses generate an excess of $10billion while providing jobs for 35,000 people.
The growth rate of this industry is expected for remain incredibly strong in the coming years given that the number of people in the Baby Boomer population that are becoming over the age of 70 continues to increase at a significant rate. Deutsch Medical Transport Group is in an excellent position the capitalize on this ongoing demand in the coming years.
5.3 Customer Profile
Any individual that is over the age of 65 or has mobility issues as a potential client of Deutsch Medical Transport Group. Generally, these individuals will typically have a household income ranging from $50,000 to $150,000.
5.4 Competitive Analysis
The business will face moderate ongoing competition as a establishes its operations in Austin. Most importantly, the Company will maintain a major differentiating factor given the fact that the business will be able to render both non-emergency transportation as well as senior transportation services throughout this target market. The Company will be able to remain pricing competitive with established entities.
6.0 Key Strategic Issues
6.1 Sustainable Operations
Deutsch Medical Transport Group will have sustainable operations as a result of the following:
• Significant demand for non-emergency medical transportation services within the Austin market.
• The ability to provide senior transportation services as a secondary revenue center will further contribute to the stability of the business.
• An Owner, Matthew Deutsch, that has extensive experience in the field of non-emergency medical transportation.
• The Company will have ongoing relationships with physicians’ offices, in-home healthcare agencies, and hospitals via ongoing referrals.
6.2 Basis of Growth
The Company will expand via the following methods:
• Continued expansion of the number of NEMT vehicles that the Company maintains.
• Expansion the Company’s marketing operations as relates provided senior transportation services.
• Potential establishment of satellite locations in other markets in Texas.
7.0 Marketing Plan
7.1 Marketing Objectives
• Conducting extensive direct outreach with medical entities throughout the Austin area.
• Implement numerous forms of online marketing so that when searches for an NEMT services or senior transportation are completed for the Austin market the business can be quickly found.
• Conduct extensive direct outreach with in-home healthcare agencies that will use the business on a subcontracted basis.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• The Company will establish its operations in Austin.
• First year revenue will reach $494,000.
Year 2
• The business will focus on expanding its roster of referring facilities.
• Revenue will reach $543,000.
Years 3-5
• By Year 5, the Company will have four full-time drivers.
• Revenue will reach $932,000.
7.4 Marketing Strategies
As it relates to NEMT services, the Company will work closely with medical facilities, hospitals, dialysis centers, and surgical practices that will provide the ongoing transportation orders to the business. This will be the primary way that the Company generates revenue.
For the Company’s website, this will be a more consumer facing platform that is specifically geared towards individuals that are seeking senior transportation services. The business will have e-commerce functionality embedded into this platform so that ongoing orders for personal transportation services can be directly sourced through the website. This platform will undergo significant search engine optimization specific for the Austin market.
The Company will also maintain ongoing relationships with in-home care agencies that do not provide incidental transportation. Given the large number of operating assets that Deutsch Medical Transport Group will maintain, the Company will be able to concurrently provide comprehensive non-emergency medical transportation coupled with specialized senior transportation service services.
The Company will also distribute mail advertisements among individuals that are over the age of 65 that require ongoing transportation services. The Company will coordinate these efforts with a regional marketing firm that maintains extensive profiles on individuals that live in the greater Austin area.
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The Company will acquire $200,000 to establish its operations within Austin.
• Matthew Deutsch will contribute $50,000 towards the development of this non-emergency medical transportation business.
• The Company will have a compounded annual growth rate of 17%, which will be achieved given the ongoing acquisition of additional vehicles.
9.2 Financial Highlights
• On non-emergency medical transportation orders, the Company will generate contribution margins of 85%.
• The Company’s payroll expenditures will not exceed 50% of its total revenues.
9.3 Sensitivity Analysis
The demand for non-emergency medical transportation remains incredibly strong, even during times of economic recession. As such, Deutsch Medical Transport Group will be able to acquire ongoing orders for these types of transportation services among medical entities in the greater Austin area. The Company secondary revenue, as discussed throughout the document, further contribute to the ability of the business, while ensuring that it remains profitable at all times.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
SWOT Analysis
Strengths
• The dual approach that Deutsch Medical Transport Group is taking to its operations will provide a major competitive advantage and differentiating factor.
• Limited competition among entities that operate in both non-emergency medical emergency transportation and personal transportation capacity.
• The business will be able to remain profitable, even during extremely challenging economic climates.
Weaknesses
• Operational complexities given the complexity of assisting individual individuals during the transportation process.
• There are other companies that operate in a NEMT capacity within the greater Austin market.
Opportunities
• Continued expansion the number of vehicles operated by the business.
• Expansion of operations to include more comprehensive services for those that have substantial mobility issues.
• Expansion of the number locations that the Company maintains within Texas.
Threats
• Increases in energy pricing can impact the Company profitability
• Potential liabilities that may occur occurred during the course of the transportation process.
Risk Analysis
Development Risk – Low
The scope of services that will be offered by Deutsch Medical Transport Group have already been developed. The primary matter that needs to be addressed the securing the funding discussed in this document that the Company can acquire appropriate vehicles to rendered non-emergency medical transportation.
Financing Risk – Low/Moderate
The vast majority of the capital discussed in this document will be used for the acquisition of vehicles and related operational assets. The risks related to this financing are reduced by the fact that the business will be able to thrive in any economic climate.
Marketing Risk – Low
Management use the numerous marketing strategies discussed throughout this document with immense focus on conducting direct outreach with medical facilities, hospitals, and in-home healthcare agencies. The business will also engage in consumer facing marketing operations for secondary income center.
Management Risk – Low
Matthew Deutsch is a highly experienced personal transportation industry entrepreneur that will be able to quickly bring the operations of Deutsch Medical Transport Group profitability.
Valuation Risk – Low
The valuation risk is offset by:
• Nearly all debt capital will be used for the acquisition of vehicles.
• Very high grow margins on each non-emergency medical transportation order.
• The business can scale operations to include multiple markets in Texas as many of these areas have significant populations that are over the age of 65.
Exit Risk – Low
Given the economic stability of Deutsch Medical Transport Group, there would be a significant demand among a third-party business to acquire its operations. In this event, a CPA, attorney, and business sales specialist will be retained in order to properly transition the business to a different owner after its sale.