A company that offers hydration therapy to its patients is known as an IV hydration therapy clinic. A tiny IV is placed into your arm during hydration therapy, a straightforward procedure that allows you receive fluids directly into your bloodstream. Vitamins, electrolytes, antioxidants, and even medication may be included in the fluids.
According to research by grand view, Inc., the size of the global market for intravenous solutions is anticipated to reach USD 18.9 billion by 2028 based on data available from the United States. From the year 2021 to 2028, the market is anticipated to grow at a CAGR of 7.9 percent.
Steps to Write an IV Hydration Business Plan
East Coast® IV hydration clinic, Inc. is a registered medical clinic that will be based in San Diego, California and it will be committed to serving those who are in need of professional IV hydration therapy, and other related medical treatment.
We will also operate a mobile IV therapy service bringing instant relief from hangovers, dehydration, and more directly to our clients.
We are going to be health-conscious and customer-centric with a service culture that will be rooted in the fabric of our organizational structure, and at all levels of the organization. Dr. Rickson McAllister is the founder and CEO of East Coast® IV Hydration Clinic, Inc.
a. Our Products and Services
East Coast® IV hydration clinic, Inc. will provide a facility and services geared towards administering IV hydration therapy to patients. We will administer intravenous nutrients such as;
- Single Dose Amino Acid Solution
- Vitamins and Minerals (Salt and electrolyte)
- Parenteral Lipid Emulsion
- Other related medical treatments.
Our services are designed to assist patients in flushing their bodies with healthy fluids, which enhances the performance of their organs. Your liver and kidneys can function effectively with IV treatment.
b. Nature of the Business
Our intravenous hydration therapy clinic will operate as a B2C – Business to consumer business model. We will offer our services directly to the end user without any middleman arrangement.
c. The Industry
East Coast® IV hydration clinic, Inc. will operate in the intravenous hydration centers industry.
d. Mission Statement
Our mission is to provide secure inpatient and outpatient facilities for infusion therapy that delivers nutrition, electrolytes, antibiotics, and other medications.
e. Vision Statement
Our vision of establishing an intravenous (IV) hydration therapy clinic is to become the pacesetter in every city where businesses are located.
f. Our Tagline (Slogan)
East Coast® IV hydration clinic, Inc. – Restoring Your Health!
g. Legal Structure of the Business
East Coast® IV hydration clinic, Inc. will be formed as a limited liability company (LLC). The reason is to protect our personal assets by limiting the liability to the resources of the business. The LLC will also protect our CEO’s personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief medical director (President)
- Intravenous (IV) hydration therapy nurse
- Account officer
- Customer service officer (receptionist).
i. Ownership/Shareholder Structure and Board Members
- Rickson McAllister (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Andrew Johnson (Board Member) 19 Percent Shares
- Milan Rhodes (Board Member) 10 Percent Shares
- Billy Roberts (Board Member) 10 Percent Shares
- Ella McAllister (Board Member and Secretary) 10 Percent Shares.
- Ideal location for intravenous (IV) hydration therapy clinic
- Experienced and qualified employees and management
- Access to supplies
- Secured and clean facility.
- Inability to run and manage the organization initially, without falling back on savings
- Financial Limitations
- Operating from a leased facility (restriction to modify the facility to suit our style and taste)
- Inability to retain our experienced and competent employees longer than desired.
- Growing acceptance of intravenous hydration therapy clinic treatment and services
- Build upon existing clientele
- Online market, services, technologies, and the opening of new markets.
i. How Big is the Industry?
Intravenous hydration centers are a growing and large industry. The U.S. intravenous immunoglobulin (IVIG) market size is expected to reach USD 5.04 billion by 2025.
ii. Is the Industry Growing or Declining?
The IV hydration therapy industry is growing. According to the analysis made by grand view research, Inc., the intravenous immunoglobulin market in the United States is predicted to grow to USD 5.04 billion by 2025. Over the course of the forecast period, the market is anticipated to experience a notable CAGR of 6.1 percent.
Some of the factors anticipated to propel the market are; the rising rate of diseases like cancer, the frequency of preterm births, and a lack of I.V. solutions in the United States.
iii. What are the Future Trends in the Industry?
The intravenous hydration centers industry is changing, and players in the industry are improvising. Technology and customized software will change the landscape of intravenous hydration centers.
iv. Are There Existing Niches in the Industry?
There are no niche ideas when it comes to the intravenous hydration therapy clinic line of business.
v. Can You Sell a Franchise of your Business in the Future?
East Coast® IV hydration clinic, Inc. has plans to sell franchises in the nearest future and will target major cities with growing working class and mobile people who are subjected to stress in the United States.
- The spread of coronavirus and similar pandemic
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Management of employees requires time, money, and efforts
- The medical and health department could change their regulatory status and decide to enforce strict laws that can strangulate new businesses
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Drip Hydration
- ThrIVe Drip Spa
- Reset IV Hydration Therapy
- IV League
- THE DRIPBaR
- Hydralive Therapy®
- Mobile IV Medics
- The Hydration Room
- Rocky Mountain IV Medics
- Remedy Room
- Alternative Wellness Clinic
- Core IV Therapy.
ii. Is There a Franchise for IV Hydration Clinic Business?
Yes, there are franchise opportunities for IV hydration therapy business, and here are some of them;
- Drip Doctors
- Enhance IV
- Liquivida Lounge
- ThrIVe Drip Spa
- Revive IV Lounge
- The Hydration Room.
iii. Are There Policies, Regulations, or Zoning Laws Affecting IV Hydration Clinics?
Yes, there are county and state regulations for IV hydration therapy business, and each state has its own requirements as there are different laws and costs. It’s important to do research into local regulations and zoning policies
a. Who is Your Target Audience?
i. Age Range
Our target market comprises adults above 18 years who are financially capable to do business with us.
ii. Level of Educational
We don’t have any restrictions on the level of education of those who are ready to welcome our intravenous hydration therapy clinic or hire our outpatient for services.
iii. Income Level
We don’t have any cap on the income level of those we are looking to welcome in our intravenous hydration therapy clinic, or hire our outpatient for services.
There is no restriction when it comes to the ethnicity of the people, we are looking forward to welcoming them to our intravenous hydration therapy clinic, or hiring our outpatient for services.
There is no restriction when it comes to the language spoken by the people, we are looking forward to welcoming them to our intravenous hydration therapy clinic, or hiring our outpatient for services.
vi. Geographical Location
People from any geographical location will be welcomed in our intravenous hydration therapy clinic, or hire our outpatient for services.
East Coast® IV hydration clinic, Inc. will not restrict any person from accessing our facility and services based on their lifestyle, culture, or even race.
c. Advertising and Promotion Strategies
- Host themed events that would catch the attention of potential clients
- Tap into text marketing
- Use FOMO to run photo promotions
- Share your events with local groups and pages
- Turn your social media channels into a resource
- Develop your business directory profiles
- Build relationships with other healthcare service providers and other related organizations in your Area.
i. Traditional Marketing Strategies
- Marketing through direct mail
- Print media marketing – newspapers and magazines
- Broadcast marketing – television and radio channels
- OOH, marketing – public transit like; buses and trains, billboards, street shows, and cabs
- Leverage direct sales, direct mail (postcards, brochures, and fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social media marketing platforms
- Influencer marketing
- Email marketing
- Content marketing
- Search Engine Optimization (SEO) marketing
- Affiliate marketing
- Mobile marketing.
iii. Social Media Marketing Plan
- Start using chatbots
- Create a personalized experience for each of our clients
- Create a content marketing strategy
- Create a community for freelance marketers and influencers
- Gear up your profiles with various content strategy
- Use brand advocates
- Create profiles on relevant social media channels
- Run cross-channel campaigns.
c. Pricing Strategy
When working out a pricing strategy, East Coast® IV Hydration Clinic, Inc. we make sure it covers time, service delivery, supplies, premium, economy or value, and a full intravenous hydration therapy clinic package for each of our clients. In our pricing strategy, it will reflect;
- Cost-based pricing
- Value-based pricing
- Competition-based pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, hospitals, freelance marketers, and social media influencers to refer clients to us.
East Coast® IV hydration clinic, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By integrating all of these strategies into a marketing mix, so we can have a visible, in-demand service that is competitively priced and promoted to our patients and partners.
b. Inventory Strategy
The fact that we will need intravenous hydration therapy supplies and medications at a time mean that East Coast® IV hydration clinic, Inc. will operate an inventory strategy that is based on a day-to-day methodology, to follow for ordering, maintaining, and processing items in our warehouse.
We will develop our strategy with the same attention to detail as we would if we were creating an overall strategy for the business. East Coast® IV hydration clinic, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At East Coast® IV Hydration Clinic, Inc., we offer services, and the nature of the services does not accommodate the return policy, but we will make sure we give out incentives regularly to our customers.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help provide excellent customer service to our clients, it will help us to understand their needs, experiences, and pains. We will work with effective CRM software to achieve our goal.
On a regular basis, we will work towards strengthening our customer service team and also leverage multi-channel servicing as part of our customer support strategy.
Our operational plan will cover capacity, location, layout, quality, and methods planning. We plan to expand our revenue by 25 percent in the second year and the plan will include; marketing, sales, and operations component. The operations component of the plan would include attracting partnerships and referrals that will enable the firm to boost our service offerings, and also supports revenue growth.
a. What Happens During a Typical Day at an Intravenous Hydration Therapy Clinic?
- The business is open for the day’s work
- The beds and equipment are cleaned, adjusted, and set for the day’s job
- Inpatients and outpatients customers are attended to
- Schedule maintenance and servicing of equipment are carried out
- Marketing/website upkeep
- Administrative duties
- The business is closed for the day.
b. Production Process
There is no production process when it comes to an intravenous hydration therapy business.
c. Service Procedure
Intravenous hydration therapy clinics’ service of procedure (menus of services) varies, depending on the medical director or owner’s experience and predilection.
An IV fluid drip involves a small tube called a catheter and a saline-based electrolyte solution that contains your selected vitamins and nutrients. This delivers essential nutrients and fluids directly into your bloodstream, bypassing your digestive tract.
Note that the exact mixture of your IV will depend on whether you have any electrolyte deficiencies such as low sodium levels that can cause dehydration and the severity of your condition. IV fluids are made using crystalloid solutions, which enable water to move in or out of your cells through a process called osmosis.
d. The Supply Chain
East Coast® IV hydration clinic, Inc. will establish a business relationship with wholesale supplies of intravenous hydration therapy supplies and medications.
e. Sources of Income
East Coast® IV hydration clinic, Inc. makes money from offering inpatients and outpatients IV hydration therapy.
a. Amount Needed to Start Our Intravenous Hydration Therapy Clinic?
East Coast® IV hydration clinic, Inc. would need an estimate of $285,500 to set up an intravenous hydration therapy clinic in the United States.
b. What are the Costs Involved?
- Business registration fees – $750
- Expenses for obtaining licenses and permits – $7,300
- Marketing, branding, and promotions – $5,000
- Business consultant fee – $2,500
- Insurance – $5,400
- Rent/lease – $70,000
- Commercial satellite tv subscriptions, stationery ($500), and phone and utility deposits ($2,800)
- Operational cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $15,000
- Store equipment (cash register, security, ventilation, signage) – $4,750
- Website: $600
c. Do You Need to Build a Facility?
East Coast® IV hydration clinic, Inc. will not build a new facility for an intravenous hydration therapy clinic; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our own facility.
d. What are the Ongoing Expenses for Running an Intravenous Hydration Therapy business?
- Cost of stocking up supplies
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Maintenance and repair of equipment
- Salaries of employees.
e. What is the Average Salary of your Staff?
- Chief medical director (President) – $75,000
- Administrator – $40,000
- Intravenous (IV) hydration therapy nurses – $42,878
- Account officer – $35,000
- Customer service officer (receptionist) – $26,100 Per year.
f. How Do You Get Funding to Start an Intravenous Hydration Therapy Clinic Business?
- Raising money from personal savings
- Applying for a loan from your bank
- Pitching our business idea and applying for business grants and seed funding from, the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
a. How Much Should You Charge for your Product/Service?
At East Coast® IV hydration clinic, Inc. our in-home IV therapy packages range from $100-$395. Add-ins such as vitamins can be included for $25 a piece or saline can also be added for $50. Note that the cost of an IV therapy infusion (1-3 hours) ranges from $500 to $665. Those on high deductible health plans or without insurance can save when they buy their procedure upfront.
b. Sales Forecast?
- First fiscal year: $550,000
- Second fiscal year: $950,000
- Third fiscal year: $1.5 million
c. Estimated Profit You Will Make a Year?
- First fiscal year: $175,000 (50% of revenue generated)
- Second fiscal year: $337,000 (45% of revenue generated)
- Third fiscal year: $540,000 (45% of revenue generated)
d. Profit Margin of an Intravenous Hydration Therapy Clinic Product/Service
The profit margin we hope to make at East Coast® IV hydration clinic, Inc. will be between 15 and 25 percent on service charges. This refers to profit as a percentage of the total costs.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
East Coast® IV hydration clinic, Inc. will grow an intravenous hydration therapy business by first opening other facilities in major cities in the United States, within the first five years of establishing the organization and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why?
East Coast® IV hydration clinic, Inc. plan to expand to Sumter, South Carolina, Tinton Falls, New Jersey, Santa Fe, California, Stillwater, Oklahoma, Longboat Key, Florida, Wintergreen, Virginia, Charleston, West Virginia, Palm Beach Gardens, Florida and Portland, Oregon.
The founder of East Coast® IV hydration clinic, Inc. plans to exit the business via family succession. We have placed structure and processes in place that will help us achieve our plan of transferring the business from one family member to another, and from one generation to another without difficulties.