Are you about starting a stem cell bank? If YES, here is a complete sample stem cell banking business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a stem cell bank. We also took it further by analyzing and drafting a sample stem cell banking business marketing plan template backed up by actionable guerrilla marketing ideas for stem cell banks. So let’s proceed to the business planning section.
Table of Content
- Why Start a Stem Cell Bank?
- Stem Cell Banking Business Plan – Executive Summary
- Stem Cell Banking Business Plan – SWOT Analysis
- Stem Cell Banking Business Plan – MARKET ANALYSIS
- Stem Cell Banking Business Plan – SALES AND MARKETING STRATEGY
- Stem Cell Banking Business Plan – Publicity and Advertising Strategy
- Stem Cell Banking Business Plan – Sustainability and Expansion Strategy
Why Start a Stem Cell Bank?
Stem cell in recent time has become a life saver and there is a thriving business that revolves around making stem cell available to those who need stem cell transplant to stay alive. If you are an entrepreneur in the united states or in any country where private businesses are allowed to own stem cell banks, then you might want to consider starting your own stem cell bank.
Stem cells are special cells that have the ability to become several types of cells plus the fact that they can replicate rapidly. As a matter of fact, stem cells play a pretty large role in the healing process of the human body.
Please note that a stem cell bank is one of those businesses that requires you to first look at the existing laws in the country or the state you reside in before starting the business because there is hardly any country that does not pay serious attention to their health sector. Any stem cell bank related business is usually highly regulated so as to guard against the infiltration of quacks.
This goes to show that if you have an interest in starting your own stem cell bank, then you should pay a visit to the health and medical regulatory body in your country.
So, if you have decided to start your own stem cell bank business, then you should ensure that you carry out thorough feasibility studies and market survey. Business plan is yet another very important business document that you should not take for granted when launching your own stem cell business.
Below is a sample stem cell banking business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Stem Cell Banking Business Plan Template
- Industry Overview
Stem cell business is grouped under the blood and organ banking industry and human stem cell banks collect, test, preserve and deliver stem cells from donors either for preparation of cell lines for use in research, or for future use through banking umbilical cord blood.
Stem cells are cells (the functional basic unit of life) that have the potential to differentiate into a variety of tissue. This industry excludes public stem cell banks and companies that primarily research, develop and manufacture therapeutic products using stem cells.
A recent report released shows that the storage of stem cells, usually in the form of cord blood, is a growing industry. During the five years to 2012, revenue is expected to increase 7.3 percent annually on average to $435.0 million. According to IBISWorld industry analyst Sophia Snyder, the Human Stem Cell industry’s success has been fostered by developments in medical stem-cell applications, which have been progressing at a quick pace.
Still, banks that preserve stems cells have been challenged by opponents who claim that the storage process may render the cells useless when they are ultimately needed. And some healthcare professionals, including the American Academy of Pediatrics, argue that storing a person’s cells privately is less beneficial than donating to a public bank.
The Blood and Organ Banks industry that human stem cell is a part of is indeed a very massive industry in the United States. Statistics has it that the industry is worth $11 billion, with an estimated growth rate of 0.1 percent within the next five years.
There are about 1,521 registered and licensed blood and organ banks in the United States and they are responsible for employing about 77,515 people. It is important to state that American Red Cross and Blood Systems can boast of having the lion shares of the available market in the industry in the United States.
Experts project stem cell banking to expand at an increase rate over the next five years. Progress in stem-cell therapies will gain prominence in the public mind, making the practice of banking stem cells more widespread. Individuals will also be in a better position to pay for industry services as the economic environment continues to recover.
The strong growth of stem-cell banks will entice more entrants into the industry, thereby pressuring operating profit margin down slightly as companies compete on the basis of price. In an effort to reduce costs, employment in the industry is forecast to decline.
At the same time, competition from public stem-cell banks is forecast to heighten. Public banks will benefit from the effects of healthcare reform that encourage preventative medicine and greater access to healthcare for all individuals.
If you are considering starting your own stem cell bank in the United States, then you should try and work around the industry barriers. The truth is that the barriers to entry in this line of business are high due to the significant regulatory requirements and the experience and strength of incumbents.
It is absolutely compulsory for any investor who is looking towards starting a stem cell bank business to meet extensive federal, state and local laws and regulations. These regulations relate to the adequacy of medical care, equipment, personnel, operating policies and procedures.
Regulations also involve maintaining adequate records, preventing fires, setting rates and complying with building codes and environmental protection laws. These regulations make it difficult and costly for aspiring entrepreneurs to enter the industry.
Stem Cell Banking Business Plan – Executive Summary
Patmos® Stem Cell Bank, Inc. is a licensed and government approved stem cell bank that will be located in the heart of Saint Paul, Minnesota – United States of America. We have been able to acquire a standard lab facility that is highly suitable for the kind of business we want to operate.
Patmos® Stem Cell Bank, Inc. is in the healthcare services industry to make available human stem cell for treatment and other scientific research works. We are well trained and equipped to service the market segments that require our products and services.
We are in the stem cell banking business to deliver excellent services to all those who will patronize our services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in the State of Minnesota and the United States of America. Our employees are well trained and qualified to handle the wide range of services we will be renderings.
We have a standard medical call center that is manned by trained health workers. Our employees are going to be trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers. Patmos® Stem Cell Bank, Inc. will ensure that all our customers are given first class treatment whenever they visit our lab.
Patmos® Stem Cell Bank, Inc. is a family business that is owned and managed by Dr. Robert Brown and his immediate family members. Dr. Robert Brown is a Phlebotomist and a certified specialist in Stem cell Technology with over 17 years’ experience working as a Clinical Laboratory Science Professional with the United State government.
- Our Services
Patmos® Stem Cell Bank, Inc. is in the blood and organ banks industry to make profits and we are going to do all that is permitted by the law of the United States of America to meet our corporate goals and ambitions.
These are the services that Patmos® Stem Cell Bank, Inc. will be offering;
- Reproductive and stem cell banking services
- Reproducing tissues
- Organ bank services
- Tissue bank services
- Health screening services
- All other human blood services
Our Vision Statement
Our vision is to become a one stop shop when it comes to human stem cell delivery in the whole of Saint Paul – Minnesota and also to be amongst the top 5 private stem cell banks in the United States of America within the next 10 years.
- Our Mission Statement
Patmos® Stem Cell Bank, Inc. is in business to establish a first – class privately run stem cell bank that will at all-times abide by international best practices in the industry. We want to become one of the leaders in the blood and organ banks industry in Minnesota.
- Our Business Structure
Patmos® Stem Cell Bank, Inc. will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals in the industry to man various job positions in our organization. We are quite aware of the rules and regulations governing the blood and organ banks industry which is why we decided to recruit only experienced and qualified employees.
We hope to leverage on their expertise to build our private stem cell bank to be accepted in Saint Paul – Minnesota and the whole of the United States.
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 Patmos® Stem Cell Bank, Inc.;
- Chief Phlebotomist/Chief Executive Officer
- Lab Technicians/Phlebotomist
- Nurses/Nurse’s Aides
- Sales and Marketing Executive
- Customer Care Executive
Roles and Responsibilities
Chief Phlebotomist/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
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- 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
Sales and Marketing Manager
- Manages external research and coordinates 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 customer
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- 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
- Welcomes clients and potential clients (donors) by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, 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
- Manages administrative duties assigned by the chief executive officer in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning the stem cell bank facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the chief phlebotomist or any superior officer
Stem Cell Banking Business Plan – SWOT Analysis
Patmos® Stem Cell Bank, Inc. is set to become one of the leading human stem cell banks in Saint Paul – Minnesota which is why we are willing to carry out due diligence as it relates to our business. We want our stem cell bank to be the number one choice of all hospitals and healthcare facilities in Saint Paul – Minnesota.
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.
Even though our Chief Phlebotomist (owner) has a robust experience in the blood and organ industry, we still went ahead to 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 in helping us structure our business to indeed become a leader in the industry.
This is the summary of the SWOT analysis that was conducted for Patmos® Stem Cell Bank, Inc.;
Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our human stem cell bank. As a matter of fact, they are some of the best hands in the whole of Saint Paul – Minnesota. Our location, the Business model we will be operating on, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.
Our perceived weakness lies in the fact that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed for the acquiring some of the latest stem cell and other human tissue collection, screening, and storing equipment et al.
The opportunities that are available to human stem cell banks are unlimited considering the ever-growing rate of human stem cell and organ transplant carried out all across the world and we are going to position our stem cell bank to make the best out of the opportunities that will be available to us in Saint Paul – Minnesota. A fast-growing elderly population will contribute to higher demand for stem cell.
Just like any other businesses, some of the major threats that we are likely going to face are lack of organ donations which is a prevalent problem for the industry, economic downturn and unfavorable government policies (healthcare reform). Another threat that may likely confront us is the arrival of a new and bigger/well established stem cell bank in same location where where we are located.
Stem Cell Banking Business Plan – MARKET ANALYSIS
- Market Trends
The United States leads the global market especially as it has a healthcare infrastructure that is not only well developed but also properly coordinated. Other factors causing the United States to lead the pace is also its adoption of technologies that are advanced, its reimbursement policies that are favorable, its high standard of care and the strong support it gets from its government.
The Asia-Pacific has however been projected to lead the fastest growth due to its growing per capita spending on healthcare, underserved blood services causing the inability to meet patient needs, development of healthcare infrastructure and the rising demand for medical tourism.
The stem cell bank industry has its challenges though and one of them has to do with a market that is constantly shifting. Stem cell banks over the years have often operated on the assumption that there will always be blood shortage which led to several cancelations of elective surgeries.
However, the recession caused a change in the procedures as there was surplus blood being ready to be supplied. This however led smart entrepreneurs to act as industry middlemen and therefore take advantage of the surplus by soaking up the excess blood pints and then distributing them to where they are needed.
- Our Target Market
Patmos® Stem Cell Bank, Inc. is in business to service a wide range of customers in Saint Paul – Minnesota. We will ensure that we target self – pay customers (who do not have health insurance cover), and those who have health insurance cover.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the blood and organ banks industry in the United States. Our staff are well – trained to effectively service our customers and give them value for their monies.
Our customers can be categorized into the following;
- Reproductive and stem cell bank service
- Reproducing tissues
- Organ bank services
- Tissue bank services
- Health screening service
- All other human blood services
Competition from public human stem cell banks has been increasing during the past five years because of the argument that public banks can help the greater population by increasing access to stem cells for medical treatment. Public human stem banks are also substantially less costly for individuals.
To be highly competitive in the blood and organ banks industry means that you should be able to collect and make available well – screened human stem cell and other human tissues and should be able to meet the expectations of your clients at all times.
Patmos® Stem Cell Bank, Inc. is coming into the market well prepared to compete in the industry. Our human stem cell bank is well positioned and visible, and we have enough parking space with good security. Our staff are well groomed in all aspects of the industry and all our employees are trained to provide customized customer service to all our clients. Our services will be carried out by highly trained professionals.
We are going to be one of the few human stem cell banks in the whole of Saint Paul – Minnesota that will run a standard medical call center for 24 hours a day and 7 days a week. We have enough trained health workers that are ready to run a shift system.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
Stem Cell Banking Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Patmos® Stem Cell Bank, Inc. 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 sources we intend exploring to generate income for Patmos® Stem Cell Bank, Inc.;
- Reproductive and stem cell bank services
- Reproducing tissues
- Organ bank services
- Tissue bank services
- Health screening services
- All other human blood services
It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field.
We have been able to examine the human stem cell banking market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Saint Paul – Minnesota.
Below are the sales projections for Patmos® Stem Cell Bank, Inc. it is based on the location of our human stem cell banks and of course the wide range of our services and target market;
- First Fiscal Year: $75,000 (From Self – Pay Clients / Patients): $125,000 (From Health Insurance Companies)
- Second Fiscal Year: $100,000 (From Self – Pay Clients / Patients): $250,000 (From Health Insurance Companies)
- Third Year: $150,000 (From Self – Pay Clients / Patients): $400,000 (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. 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 of Patmos® Stem Cell Bank, Inc. will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer properly screened human stem cell tissues at affordable prices compared to what is obtainable in Saint Paul – Minnesota.
All our employees will be trained and equipped to provide excellent services and customer service. We know that if we are consistent with offering high quality service delivery, we will increase the number of our customers by more than 25 percent for the first fiscal year and then more than 40 percent subsequently.
Before choosing a location for our human stem cell bank, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for hospitals and other healthcare facilities.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time. We hired experts who have good understanding of the blood and organ bank 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 Saint Paul – Minnesota.
In summary, Patmos® Stem Cell Bank, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to hospitals, health facilities and other key stakeholders
- Advertise our human stem cell banks in community based newspapers, local TV and radio stations
- List our human stem cell banks on yellow pages’ ads (local directories)
- Leverage on the internet to promote our human stem cell bank
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals)
- Enter into business partnership with health management organizations, government agencies and health insurance companies.
- Attend health care related exhibitions/expos.
Stem Cell Banking Business Plan – Publicity and Advertising Strategy
We are in the private blood and organ banking line of business to become one of the market leaders and also to maximize profits hence we are going to explore all available means to promote our business.
Patmos® Stem Cell Bank, Inc. has a long – term plan of opening our human stem cell collection centers in key cities around Minnesota which is why we will deliberately build our brand to be well accepted in Saint Paul before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Patmos® Stem Cell Bank, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community health 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 Saint Paul – Minnesota
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are branded with our organization’s logo.
Our Pricing Strategy
Patmos® Stem Cell Bank, Inc. 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, human stem cell banks, blood and organ banks, hospitals and health care 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 blood and organ banks, hospitals and health care service providers to bill their clients based in their discretion. We will ensure that we abide by the pricing model that is obtainable in the industry.
- Payment Options
The payment policy adopted by Patmos® Stem Cell Bank, Inc. 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 Patmos® Stem Cell Bank, Inc. 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 clients make payment for our services and products without any stress on their part.
Startup Expenditure (Budget)
If you are looking towards starting a standard human stem cell bank, then you should be ready to ensure that you raise enough capital to cover some of the basic expenditures 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 human stem cell bank facility, acquire medical lab equipment and supplies and you would 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.
The items listed below are the basics that we would need when starting our human stem cell bank in the United States, although costs might vary slightly;
- The total fee for registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Patmos® Stem Cell Bank, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- The cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $65,900.
- The cost for blood and organ bank remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $300,000
- The cost for start-up inventory (human stem cell, human tissue and blood collectors, blood and organ storage facility, and other medical equipment and instruments) – $250,000
- Storage hardware (bins, rack, shelves,) – $3,720
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost of launching a website: $700
- Miscellaneous: $10,000
We will need an estimate of $600,000 to successfully set up our human stem cell bank in Saint Paul – Minnesota.
Generating Funds/Startup Capital for Patmos® Stem Cell Bank, Inc.
Patmos® Stem Cell Bank, Inc. is a private business that will be owned and managed by Dr. Robert Brown. He decided to restrict the sourcing of the startup capital for the business to just three major sources.
Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 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 duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
Stem Cell Banking Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that 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 Patmos® Stem Cell Bank, Inc. 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 pint of stem cell and other human tissue a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Patmos® Stem Cell Bank, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ 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 three years or more. We know that if this is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; and they will be more committed to help us build the business of our dreams.
- 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 facility to suit the design of our blood and organ bank 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 lab and medical equipment and instruments 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
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with key stakeholders in the industry: In Progress.