Are you about starting a weight loss clinic? If YES, here is a complete sample weight loss clinic business plan template & feasibility report you can use for FREE.
A weight loss clinic is a clinic that primarily assists their clients with losing or maintaining a desired body weight. Weight loss clinics offer individual or group counseling, menu and exercise planning and weight and body measurement monitoring et al.
You can start your weight loss clinic 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 a nationally recognized brand especially if you go into franchising and opening your weight loss clinics all across the United States of America.
A Sample Weight Loss Clinic Business Plan Template
1. Industry Overview
Businesses in the weight loss clinic services industry provide non-medical services to clients and assist them with losing or maintaining a desired weight. Weight loss clinics offer individual or group counseling, menu and exercise planning, weight and body measurement monitoring et al.
Weight loss clinics may also sell food supplements and other weight-reduction products. It is important to state that fitness centers, health resorts and spas or medical and surgical weight-reduction services are not part of the weight loss clinic services industry.
If you are keeping tabs on the weight loss services industry, you will noticed that in recent time, the industry has contended with reduced demand as many budget-conscious consumers limited their use of weight loss services. Take for instance, loads of individuals have implemented do-it-yourself fitness and dietary regimens, cutting into demand for weight loss services.
Nevertheless, the industry is expected to rebound to some extent going forward. More health-conscious individuals will become aware of how weight loss plays an integral role in health and overall wellness, helping industry revenue. Many physicians and health insurance providers will also promote weight loss as a form of preventive care in order to lower healthcare costs, further benefiting the industry.
The Weight Loss Clinic Services industry is indeed a very massive industry in the united states of America, Canada, United Kingdom, Germany and Belgium et al. Statistics has it that the weight loss clinic services industry in the United States of America is worth $2bn, with an estimated growth rate of -6.8 percent within 20012 and 2017.
There are about 38,869 registered and licensed weight loss clinics in the United States and they are responsible for employing about 68,260 people. The companies with the lion share of the available market in the industry are MediFast, Nutrisystem Inc. and Weight Watchers International Inc.
A recent report published by IBISWorld shows that the Weight Loss Services industry is in the mature phase of its industry life cycle. The report also stated that the industry products are well established and weight loss companies need to differentiate their products to generate robust sales volumes, which is typically indicative of an industry in the mature life cycle stage.
They stated that despite this, over the 10 years to 2022, industry value added (IVA) is expected to decline at an annualized rate of 0.9 percent.
Comparatively, GDP is anticipated to grow at an annualized rate of 2.1 percent during the same period. While the obesity rate is rising, which may incite more individuals to purchase industry products, weight loss companies will be subject to rising competition.
If you are considering starting your own weight loss clinic services business in the United States, then you should try and work around the industry barriers. The truth is that the barriers to entry in the weight loss clinic services industry are not as high as the healthcare industry.
As a matter of fact, it is absolutely compulsory for any investor who is looking towards starting a weight loss clinic to meet the required federal, state and local laws and regulations and some of the factors that encourages entrepreneurs to start their own weight loss clinic business are that the business can easily get support from the government at all levels and the business is indeed a profitable venture despite the competition in the industry.
Lastly, if you are determined to start your own weight loss clinic services business in the United States, you are sure going to make headway especially if you are well – positioned and you know how to reach out to your target market.
2. Executive Summary
Lance Morgan® Weight Loss Clinic, Inc. is a licensed weight loss clinic that will be located in a growing community in Denver – Colorado.
Our basic aim of setting up the business is to contribute our quota in ensuring that people who live in Colorado maintain ideal weight, stay fit and maintain a healthy lifestyle. We have been able to secure a standard facility in a central and easy to locate location in Denver.
Lance Morgan® Weight Loss Clinic, Inc. is going to become the most preferred weight loss clinic in the whole of Denver – Colorado and we will work hard to build our weight loss clinic to meet the needs of the average family in the community.
Lance Morgan® Weight Loss Clinic, Inc. is in the weight loss services industry to provide nonmedical weight loss services, individual or group counseling for weight loss, diet workshops, selling food supplements and other weight reduction products, menu and exercise planning and weight and body measurement services.
We are in the weight loss industry to deliver excellent weight loss 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 Colorado and The United States of America.
We conducted a thorough research and feasibility studies and we were able to come to the conclusion that Denver – Colorado is the right place to start our weight loss clinic. As a matter of fact, our major aim of starting Lance Morgan® Weight Loss Clinic, Inc. is to encourage obese people to enroll for our program so as to drop unnecessary weight.
Lance Morgan® Weight Loss Clinic, Inc. will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnight from Mondays to Thursdays in order for us to be able to accommodate people with different time preferences. This is why we have made provisions to recruit enough staff and to run shift amongst our workforce.
We are set to run a world class weight loss clinic that will help our clients to lose weight and achieve their goals with little stress. We have a weight management consultant who will work with individuals based on customized fitness and nutrition needs.
Lance Morgan® Weight Loss Clinic, Inc. is a family owned business that is supported by the State of Colorado. The business will be managed by Lance Morgan, he has over 15 years’ experience as a leading weight loss coach in the United States of America.
Lance Morgan has Weight Management Certification, Medical Weight Loss Training Program – CME Certified – IAPAM and Weight Loss Center Owner Certificate. He will run the business with other qualified workforce.
3. Our Products and Services
Lance Morgan® Weight Loss Clinic, Inc. is in business to provide all round health and fitness services to residents of Denver – Colorado which is why we have been able to put up a facility that can help us achieve our goal. These are the services that will be made available to our clients;
- Operating non-medical weight loss services
- Individual or group counseling for weight loss
- Diet workshops
- Selling food supplements and other weight reduction products
- Menu and exercise planning
- Weight and body measurement services
- Weight Management
4. Our Mission and Vision Statement
- Our vision is to become the number one choice when it comes to weight loss services in the whole of Denver – Colorado and also to be amongst the top 10 weight loss clinics in the United States of America within the next 10 years.
- Lance Morgan® Weight Loss Clinic, Inc. is in business is to establish a first – class weight loss clinic that will take care of both highly placed and lowly placed clients as long as they can afford our services.
- We want to become one of the leaders in the weight loss services industry in Colorado, and in The United States of America.
Our Business Structure
Lance Morgan® Weight Loss Clinic, Inc. is in business to become the leading community based weight loss clinic in the whole of Denver – Colorado and we are fully aware that it will take the right facility, management and organizational structure to achieve our goal.
Our business will not be built only for the purpose of giving our customers value for their money, but also, we will ensure that we make our work environment highly conducive for all our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks and goals et al.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Manager (Owner)
- Marketing and Sales Officer
- Weight Loss Specialist/Exercise Physiologists
- Nutritionists and Dieticians
- Fitness Instructor (5)
- Front Desk/Customer Services Officer
5. Job Roles and Responsibilities
- 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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- 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
- Carries out induction for new team members
Weight Loss Specialist/Exercise Physiologist
- Responsible for handling core services such as nonmedical weight loss, individual or group counseling for weight loss, diet workshops, selling food supplements and other weight reduction products, menu and exercise planning and weight and body measurement services
- Responsible for evaluating, researching, and provide advice on coaching
- Responsible for training
- Engages in recovery practices in all areas of exercise and rehabilitation
- Provides timely information and support on injury prevention, technique analysis, and nutrition
- Handles any other duty as assigned by the manager
Nutritionist and Dieticians
- Assesses patients’ and clients’ health needs and diet
- Counsels patients on nutrition issues and healthy eating habits
- Develops meal plans, taking both cost and clients’ preferences into account
- Evaluates the effects of meal plans and change the plans as needed
- Promotes better nutrition by speaking to groups about diet, nutrition, and the relationship between good eating habits and preventing or managing specific diseases
- Keeps up with the latest nutritional science research
- Writes reports to document patient progress
Fitness Instructors (5)
- Creates training rosters for clients who want to loose weight or maintain their weight
- Assists members during exercise session
- Guides members on how to make use of weight loss related gym and fitness equipment
Marketing and Sales Officer (2)
- Identifies, prioritizes, and reaches out to new clients and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicates with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Helps to increase sales and growth for the organization
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for the organization
- 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 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 organization’s products, promotional campaigns etc. to ensure accurate and helpful information are supplied to clients when they make inquiries.
6. SWOT Analysis
Lance Morgan® Weight Loss Clinic, Inc. is in business to help its clients achieve their health and fitness goals by either losing weight or maintaining their weight and at the same time to make profits.
We are aware that there are growing competitions in the weight loss services industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard-earned money into the business. We know that if we get things right before starting our weight loss clinic, we will not have to struggle before attracting loyal clients and building our clientele base to a level where we can easily break even.
We hired the services of a business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Lance Morgan® Weight Loss Clinic, Inc.;
One of the obvious strengths that will definitely stand as a plus for Lance Morgan® Weight Loss Clinic, Inc. is the fact that our facility is centrally located in a densely populated residential area in Denver – Colorado. Our location is in fact one of our major strengths, coupled with the support from the State of Colorado.
We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims of hiring our services.
We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing weight loss clinics in Denver – Colorado when it comes to acquiring latest weight loss equipment and generating the needed hype that can drive traffic towards our weight clinic.
We are centrally located in an area with the right demographic composition for a business such as ours and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in a day during weekends and from 6:00 am to 12 midnight from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.
Some of the threats that are likely going to confront Lance Morgan® Weight Loss Clinic, Inc. are unfavorable government policies, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our office is located.
7. MARKET ANALYSIS
- Market Trends
The weight loss services industry has indeed benefited from recent marketing campaigns which are targeted towards fighting obesity, as well as consumer trends toward healthy living. Going forward, many of the baby boomers’ generation are expected to sign up for weight loss services, as they become more health conscious as they grow older.
The trend in the weight loss services industry is such that if a weight loss clinic is well positioned in a residential area or a place where people can easily access, there is a likelihood that the clinic will enjoy high patronage. Just like in other business ventures, the owners of weight loss clinics are always looking for ways to increase their market share; they go as far as signing deals with groups and also offer home services.
What they do is that they offer pro bono services for a period of time, and then they will introduce fee gradually and before too long they would have successfully converted some of the people that benefited from their pro bono services to loyal members.
It is a common trend that as weight clinics grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.
Little wonder some weight clinics now have juice and smoothie bars within their facility to encourage people towards healthy drinking. In order words, it is very important for weight clinics to continue to improvise if they want to grow their business.
8. Our Target Market
The target market for weight clinics cut across people of different walks of life. The fact that people patronize the services of weight clinics for various reasons makes marketing the business interesting. The target market for weight loss clinics can be categorized into two groups.
The first group are the people who are looking towards shedding weight through proper exercising and under the guidance of a qualified weight loss cum fitness instructor and the last group of people are those who just want to maintain their weight under the watchful eyes of a qualified fitness instructor.
Lance Morgan® Weight Loss Clinic, Inc. will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our gym and fitness center to;
- Corporate Executives
- Sport Clubs
- Government Officials
- Public Figures
- Sports Men and Women
- College Students
Our Competitive Advantage
It is a fact that the weight loss services industry is indeed a prolific and highly competitive industry. Clients will only patronize your weight loss clinic if they know that you can successfully help them achieve their weight loss or health and fitness goals.
It is the practice for weight loss practitioners, gym and fitness instructors, coaches and trainers to acquire as much certifications as it relates to their area of specialization; it is part of what will make them stay competitive in the industry
Lance Morgan® Weight Loss Clinic, Inc. is centrally located in a densely populated residential area in Denver – Colorado; this is obviously going to give us an edge amongst our competitors.
Lastly, 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 achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
Sources of Income
Lance Morgan® Weight Loss Clinic, Inc.is established with the aim of maximizing profits in the weight loss services industry and we are going to go all the way to ensure that we do all it takes to attract both individual and corporate clients on a regular basis.
Lance Morgan® Weight Loss Clinic, Inc. will generate income by offering the following services;
- Operating non-medical weight loss services
- Individual or group counseling for weight loss
- Diet workshops
- Selling food supplements and other weight reduction products
- Menu and exercise planning
- Weight and body measurement services
- Weight Management
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 would be hard to create a sales forecast with a newly opened business. This is because the statistics that will be provided will be on a short – term basis.
Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be needed to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.
We expect to register a minimum of 600 active members within our first year of operation and then in subsequent years we will grow our membership.
- First Year: $250,000
- Second Year: $450,000
- Third Year: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitors offering same services as we do within a 5 miles radius from the location of our weight loss clinic facility.
- Marketing Strategy and Sales Strategy
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 and facility to ensure that we win new clients and retain old ones. At Lance Morgan® Weight Loss Clinic, Inc., our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion, and price.
Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families. Part of the marketing and sales strategies that we will adopt are;
- Open our weight loss clinic with a big party in the neighborhood
- Advertise our weight loss clinic on national dailies, local TV and radio stations
- Promote our weight loss center online via our official website and all available social media platforms
- Introduce our weight loss clinic and the services we offer by sending introductory letters alongside our brochure to corporate organizations, households and key stakeholders in and around Denver – Colorado
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Delivering consistent customer experience to all our clients; making our first impression count positively to those making use of our clinic for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our weight loss clinic
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places
- Create a loyalty plan that will enable us reward our consistent clients especially those that registered as a family
- Engage in roadshows within our neighborhood to create awareness for our weight loss clinic and the services we offer.
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for both corporate and individual clients in the whole of Denver – Colorado which is why we have made provisions for effective publicity and advertisement of our weight loss clinic. Below are the platforms we intend to leverage on to promote and advertise Lance Morgan® Weight Loss Clinic, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/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 Denver – Colorado.
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List Lance Morgan® Weight Loss Clinic, Inc. on local directories
- Advertise our weight loss clinic and the services we offer in our official website and employ strategies that will help us pull traffic to the site
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our corporate logo et al.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging their clients.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family. The prices of our services will be same as what is obtainable in the United States’ open market.
- Payment Options
The payment policy adopted by Lance Morgan® Weight Loss Clinic, 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 regulations of the United States of America.
Here are the payment options that Lance Morgan® Weight Loss Clinic, Inc. will make available to her clients;
- Payment with cash
- Payment via credit cards/Point of Sale Machines
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a weight loss clinic; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup capital on;
- 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 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 weight loss clinic – $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 weight loss cum gym equipment – $200,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, clippers, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our grand opening party – $1,500
- Miscellaneous – $5,000
We would need an estimate of $1.5 million to successfully launch a standard and well – equipped weight loss clinic in Denver – Colorado.
It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a weight loss clinic and also the sophistication of the technology used in weight loss clinic.
Generating Startup Capital for Lance Morgan® Weight Loss Clinic, Inc.
Lance Morgan® Weight Loss Clinic, Inc. is a business that will be owned by Lance Morgan and his immediate family members. They are the sole financial of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank.
N.B: We have been able to generate about $500,000 (Personal savings $350,000 and soft loan from family members $150,000) and we are at the final stages of obtaining a loan facility of $1 M 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.
14. 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 the 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 Lance Morgan® Weight Loss Clinic, Inc. is to build a business that will survive off its own cash flow without the need of 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 ensure that we offer our weight loss services a little bit cheaper than what is obtainable in the industry.
Lance Morgan® Weight Loss Clinic, 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 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 three 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.
- 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
- Acquiring facility and remodeling the 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
- Graphic Designs and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed weight loss or gym and fitness equipment, office appliances and supplies: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress