Are you about starting a stem cell therapy company? If YES, here is a complete sample stem cell therapy business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a stem cell therapy business. We also took it further by analyzing and drafting a sample stem cell therapy business marketing plan template backed up by actionable guerrilla marketing ideas for stem cell therapy businesses. So let’s proceed to the business planning section.
There are vast business opportunities in the regenerative medicine industry and stem cell therapy business is one of them.
This line of business is thriving and profitable in the united states of America and in most developed countries of the world. So, if you are interested in starting a business in the healthcare sector, then you should consider opening your own stem cell therapy business.
When it comes to starting a stem cell therapy business, you are required to first look at the existing laws in the country or the state you reside because there is hardly any country that does not pay serious attention on their health sector and stem cell therapy business is not left out.
The health and regenerative medicine industry is usually highly regulated so as to guard against the infiltration of quacks. You can start your stem cell therapy business from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes nationally recognized especially if you go into franchising.
Below is a sample stem cell therapy business plan template that can help you to successfully write your own with little or no hassles.
A Sample Stem Cell Therapy Business Plan Template
1. Industry Overview
Cell therapy falls under the branch of regenerative medicine, which according to the National Institutes of Health (NIH), is defined as the process of creating living, functional tissues to repair or replace tissue or organ function loss due to age, disease, damage or congenital defects.
The Cell Therapy industry consists of businesses that are into skin and chronic wound cell therapy products, musculoskeletal cell therapy products and cancer cell therapy products.
The Stem Cell Therapy industry is projected to grow slowly due to reservation about the field’s validity. On the other hand, the number of people who are over the age of 50 is rising support the stem cell therapy industry, and healthcare reform is expanding the number of individuals with health insurance policy cover, boosting revenue growth.
No doubt, in the next few years, sustained public uncertainty of the industry will likely continue to limit the industry growth, but on the other hand, acupuncturists are positioning their business to take advantage of newfound consumer interest in complementary and healthcare.
In addition, the reform in the healthcare sector will also continue to positively impact the industry, even though it will likely impact the profit margins negatively.
The Cell Therapy industry is indeed a fast growing industry in developed countries of the world. The companies holding the largest market share in the Cell Therapy industry include Sanpower Group Co. Ltd., Organogenesis Inc. and NuVasive Inc.
Statistics has it that in the United States of America alone, there are about 160 registered and licensed cell therapy businesses responsible for employing about 9,559 and the industry rakes in a whooping sum of $1 billion annually. The industry is projected to enjoy 14.4 percent annual growth between 2012 and 2017.
A recent research carried out by IBISWorld shows that in recent years, the Cell Therapy industry experienced immense growth, thanks to product innovations and an increasing number of recently approved products by the Food and Drug Administration (FDA).
In addition, the industry increasingly generated investor interest over the past five years, resulting in a flood of capital to finance facility expansion and support research and development (R&D) efforts.
Industry revenue is forecast to grow an annualized 14.4 percent to $1.2. The report further stated that over the past five years, the Cell Therapy industry has grown by 14.4 percent to reach revenue of $1bn in 2017. In the same timeframe, the number of businesses has grown by 1.8 percent and the number of employees has grown by 0.3 percent.
More people are entering into the cell therapy industry because the entry barriers in this industry are moderate compared to the medical industry.
The major obstacle to aspiring entrepreneurs who want to start their own cell therapy business is that they are expected to obtain medical licensure. This so because any practitioner in this industry must be appropriately licensed before they can be allowed to practice.
Over and above, the cell therapy industry is pretty much open to new entrepreneurs and investors to come in and build a successful business as long as they are qualified to operate in the United States of America or their country of residence.
2. Executive Summary
Scot Abraham® Stem Cell Therapy, LLC is a registered and licensed regenerative medicine company that will specialize in human stem cell therapy. The business will be launched and based in Monmouth Ocean – New Jersey. We have been able to secure a standard facility that is located in the heart of town.
Aside from the fact that we will start our stem cell therapy business in Monmouth Ocean, we intend to have strong presence in the whole of New Jersey.
Scot Abraham® Stem Cell Therapy, LLC is in the regenerative medicine business to offer skin and chronic wound cell therapy products, musculoskeletal cell therapy products and cancer cell therapy products that are used in repairing or replacing tissue or organ function loss due to age, disease, damage or congenital defects.
We are well trained, equipped and positioned to offer stem cell therapies and treatment in a systematic way to individuals, families or communities in a caring and professional environment.
We are in the stem cell industry to deliver excellent products and services to all those who will patronize our business. We will also ensure that in the line of carrying out our duty, we will comply with the laws and health regulations in the United States of America.
One thing is certain; our clients will definitely recover from their ailment when they make use of our stem cell therapy products.
We will work hard to climb to the top of our industry and our work force will be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers (patients). We have put structures in place that will enable us accept insurance payments as well as private – party payments from our clients.
Scot Abraham® Stem Cell Therapy, LLC will ensure that all our clients are given first class treatment whenever they visit or patronize our products. We have a CRM software that will enable us manage a one on one relationship with our customers (patients) no matter how large they are.
Scot Abraham® Stem Cell Therapy, LLC is owned and managed by Dr. Scot Abraham. Dr. Scot Abraham is an international – licensed human stem cell scientist of repute with a robust experience and education in the stem cell industry.
He will be bringing in his vast experience and expertise to help the organization grow to become one of the leading stem cell businesses in the United States of America.
3. Our Products and Services
Scot Abraham® Stem Cell Therapy, LLC is in the regenerative medicine industry with the goal of becoming a leader in the industry. These are the products and services that Scot Abraham® Stem Cell Therapy, LLC will be offering;
- Skin and chronic wound cell therapy products
- Musculoskeletal cell therapy products
- Cancer cell therapy products
- All other human stem cell products
4. Our Mission and Vision Statement
- Our vision is to become the number one choice when it comes to stem cell therapy products in the whole of Monmouth Ocean – New Jersey and also to be amongst the top 5 stem cell therapy business in the United States of America within the next 15 years.
- Scot Abraham® Stem Cell Therapy, LLC is in business is to establish the first class stem cell therapy business whose products will be highly effective for the purpose they are used for. We want to become one of the leaders in the industry in the United States of America.
Our Business Structure
From the outset, we have decided to recruit only qualified professionals to man various job positions in our organization. We are quite aware of the rules and regulations governing the stem cell industry which is why we decided to recruit only experienced, licensed and qualified employees. We hope to leverage on their expertise to build our brand.
When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more.
These are the positions that will be available at Scot Abraham® Stem Cell Therapy, LLC;
- Chief Executive Officer (Owner)
- Stem Cell Therapist / Scientists
- Marketing Executive
- Cashier (Counter Agent)
- Customer Care Executive
5. Job Roles and Responsibilities
Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Carrying out induction for new team members
- Responsible for signing checks and documents on behalf of the company
Stem Cell Therapist/Scientist
- Responsible for the production of skin and chronic wound cell therapy products, musculoskeletal cell therapy products, cancer cell therapy products and all other human stem cell products
- Responsible for managing our stem cell, blood, organ and tissue bank services
- Responsible for collecting, screening and storing human stem cells, blood and organs from donors and sellers
- Issue out human stem cells and other human tissues that matches the request of our clients
- Ensures that the organization abide by international best practices as it relates to our industry
Marketing Executive
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customers
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
Accountant/Cashier (Counter Agent):
- Receives payments on behalf of the organization
- Issues receipt to customers
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization.
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distributes mails in the organization
- Handles any other duties as assigned by the manager
6. SWOT Analysis
Scot Abraham® Stem Cell Therapy, LLC is set to become one of the leading stem cell therapy businesses in the whole of Monmouth Ocean – New Jersey which is why we will ensure that we are trained and equipped to carry out our duties.
We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.
We made sure that we hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support to structure our business to indeed become a leader in the industry. This is the summary of the SWOT analysis that was conducted for Scot Abraham® Stem Cell Therapy, LLC;
- Strength:
In order to build a successful business, you must have a team of qualified, experienced and licensed professionals manning various job positions in our organization and that is exactly what counts as a strength for our organization. As a matter of fact, we have some of the best hands in the whole of Monmouth Ocean – New Jersey.
- Weakness:
The stem cell therapy industry and of course regenerative medicine industry in general is one industry that keeps evolving and you just have to keep up with the pace to stay on top of your game. We may not be able to maintain the pace in our early stage of business and that perhaps is one of the weakness we may be confronted with.
- Opportunities:
The opportunities that are available to stem cell therapy businesses are unlimited considering the fact that we have a growing aging population that are prone to terminal ailment in the United States and we are going to position our business to make the best of the opportunities that will be available to us in New Jersey.
- Threat:
One of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing/spending power. Other threats that may likely confront us are sustained public uncertainty of the industry and the arrival of a new and bigger/well established stem cell therapy business or even regenerative medicine brand that offer human stem cell therapy in same location where our clinic is located.
7. MARKET ANALYSIS
- Market Trends
If you keep tabs with the trend in the stem cell industry, you will agree that the industry is indeed growing despite sustained public uncertainty. The industry is subject to many regulations, with numerous governmental policies influencing the number and type of products that are developed.
Heightened compliance requirements place additional budgetary pressures on industry operators, reducing the average profit margin. Industry regulation is expected to increase slowly in 2017, posing a potential threat to the industry.
The industry keeps gulping money on research and this industry’s expenditure on research and development (R&D) correlates to the number of new treatments to which cell therapy can be applied. R&D expenditure promotes the development of new materials technology, manufacturing processes and applications.
As R&D expenditure increases, product development in the industry also advances, boosting sales. R&D expenditure is expected to increase in 2017, presenting a potential opportunity for the industry.
8. Our Target Market
The target market for stem cell therapy business cuts across people of different walks of life especially the aging population. The fact that people who have painful terminal ailments will do anything and pay any amount within their reach to get well makes marketing the business interesting.
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.
We will leverage on improving our services to ensure that we win new clients and retain old ones. These are the category of people that we intend marketing our stem cell therapy products and services to;
- Cancer patients
- Those having infertility problems
- Those who require fibromyalgia treatment
- Asthmatic patients
- Injured Sports Men and Women
- The aged who might suffer from terminal ailments and other diseases in this category.
Our competitive advantage
We are quite aware that the competition in the industry is on the increase which is why we decided to conduct a thorough market research and feasibility studies so that we can favorably compete in Monmouth Ocean – New Jersey.
As a matter of fact, we will offer stem cell therapy products that are effective and efficient with uttermost professionalism. We will ensure that every experience that our clients get when they visit us are pleasurable and thus will make them want to come back. We will also ensure that we only make use of quality supplies and create the environment and ambiance that will be relaxing and welcoming.
Scot Abraham® Stem Cell Therapy, LLC is coming into the market well prepared to compete in the industry. Our facility is well positioned and visible, and we have enough parking space with good security. Our staff are well groomed in all aspects of stem cell therapy and all our employees are trained to provide customized customer service.
Our services will be carried out by professional and licensed stem cell scientists and therapists and rehabilitation counselors et al.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Scot Abraham® Stem Cell Therapy, LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the services we intend offering in order to generate income for Scot Abraham® Stem Cell Therapy, LLC;
- Skin and chronic wound cell therapy products
- Musculoskeletal cell therapy products
- Cancer cell therapy products
- All other human stem cell products
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
It will be hard to create a sales forecast with a newly opened business like ours because the statistics that will be provided will be on a short – term basis. Experts say that usually a business should be in operation for at least one year before they can generate the statistics that will help in accurate forecasting; the statistics should be at least one-year-old in order to show the trends and pattern in consumer spending.
Below are the sales projection for Scot Abraham® Stem Cell Therapy, LLC, it is based on the location of our clinic facility and the services and products that we will be offering to our clients.
- First Fiscal Year: $120,000 (From Self – Pay Clients): $250,000 (From Health Insurance Companies)
- Second Fiscal Year: $270,000 (From Self – Pay Clients): $500,000 (From Health Insurance Companies)
- Third Year: $550,000 (From Self – Pay Clients): $1,500,000 (From Health Insurance Companies)
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. There also won’t be any major competitor offering same services as we do within 4.5 miles’ radius from our facility. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy adopted by Scot Abraham® Stem Cell Therapy, LLC will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch human stem cell therapy products and services at affordable prices compared to what is obtainable in and around New Jersey.
Aside from the strategic location of our business, all our employees will be well trained and equipped to provide excellent and knowledgeable human stem cell therapy. We know that if we are consistent with offering high quality and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.
Before choosing a location for our stem cell therapy business, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice in Monmouth Ocean.
We hired experts who have good understanding of the stem cell industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Monmouth Ocean – New Jersey.
In summary, Scot Abraham® Stem Cell Therapy, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to health facilities, residents, business owners and corporate organizations
- Advertise our stem cell therapy business on national dailies, local TV and radio stations
- Promote our stem cell therapy business online via our official website and all available social media platforms
- Continuously improving the performance of our products
- Hire the services of experts to make our brands the first choice for people in Monmouth Ocean – New Jersey
- Deliver consistent customer experiences to all our members; making our first impression count positively to those who will purchase our products or hire our services for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places
- Create a loyalty plan that will enable us reward our loyal customers who refer other patience to us
Stem Cell Therapy Business Plan – Publicity and Advertising Strategy
We are not just in the stem cell therapy business to make profits but also to become one of the market leaders hence we are going to explore all available means to promote our business.
Scot Abraham® Stem Cell Therapy, LLC has a long term plan of offering stem cell therapy products and services not just in our facility but also in various locations all around New Jersey which is why we will deliberately build our brand to be well accepted in Monmouth Ocean before venturing out. Here are the platforms we intend leveraging on to promote and advertise Scot Abraham® Stem Cell Therapy, LLC;
- Place adverts on both print (community based newspapers and health related magazines) and electronic media platforms
- Sponsor relevant community health and fitness programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Monmouth Ocean – New Jersey
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
12. Our Pricing Strategy
Scot Abraham® Stem Cell Therapy, LLC will work towards ensuring that all our products and services are offered at highly competitive prices compared to what is obtainable in the United States of America.
On the average, stem cell therapy products and service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment. In view of that, it is easier for players in the industry them to bill their clients based in their discretion.
- Payment Options
The payment policy adopted by Scot Abraham® Stem Cell Therapy, LLC is all – inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Scot Abraham® Stem Cell Therapy, LLC will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our stem cell products and services rendered without any stress on their part.
13. Startup Expenditure (Budget)
If you are looking towards starting a stem cell therapy business, then you should be ready to raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.
You will need money to secure a standard lab facility; you will need money to acquire stem cell, tissues, supplies and distribution vans. You will also need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.
However, this is what it would cost us to setup Scot Abraham® Stem Cell Therapy, LLC in Monmouth Ocean – New Jersey;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
- The cost for hiring business consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the human stem cell therapy lab – $180,000.
- The cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses et al) – $1,720
- The cost for acquiring stem cell lab equipment and supply – $200,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
We will need an estimate of five hundred and fifty thousand dollars (550,000) to successfully launch a standard stem cell therapy business in Monmouth Ocean – New Jersey
It is important to state that the testing and evaluating expenses will be high because of the kind of equipment needed to startup a stem cell therapy lab and also the sophistication of the technology used in stem cell therapy cum regenerative medicine industry.
Generating Funds/Startup Capital for Scot Abraham® Stem Cell Therapy, LLC
Scot Abraham® Stem Cell Therapy, LLC is owned and financed by Dr. Scot Abraham. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $350,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
It is a known fact that the future of any business lies in the number of loyal customers they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Scot Abraham® Stem Cell Therapy, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our stem cell products, treatment cum therapy services a little bit cheaper than what is obtainable in the industry and we are prepared to survive on lower profit margin for a while before increasing our service charges.
Scot Abraham® Stem Cell Therapy, LLC will make sure that the right foundation, business structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the stem cell lab facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of human stem cell lab equipment and gadgets et al: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress