Dialysis Business Proposal

No business should be considered without a thorough business plan. Dialysis is a dreary experience, one in which people with failed kidneys sit for hours hooked to machines that cleanse their blood, assisted by technicians who often have to work a second job to make ends meet.

Dialysis business involves the setting up of a dialysis center to take care of the dialysis patients.

Can dialysis business be profitable? How many dialysis patients does a dialysis center needs to break even?

Dialysis Business Outlook

According to New York Times, a report on year 2007:

“Some 350,000 or so Americans currently need dialysis; that population is growing about 3 percent a year, fueled by a rise in diabetes.” (source: http://www.nytimes.com/2007/09/16/business/16dial.html?_r=1).

The fact shows that there exist a demand for this dialysis business.

So how does a dialysis business make money?

Besides the payment from the patients, the revenue could be from the reimbursement of medicare payment (government) and private insurance (depends on the country and states involved).

Other than the service charges, selling of medicine and drugs needed for the dialysis process is also a revenue stream.

Before you go into preparing your dialysis business proposal, it is advice that you go through the checklist for starting a new business, and unlike the restaurant business that could be done with a restaurant business plan software, the dialysis business proposal may be a bit more challenging to write as it involves a more specialize services and professionalism (kidney dialysis facilities provide treatment to patients with kidney failure.).

Dialysis Business Proposal

As with any other business proposal, there are a few key components you should be putting into the business plan and not to be overlooked:

1. Executive Summary
What is your vision and mission in setting up this dialysis business?

2. The Management Team
Who are the management team?
Does the management team have an indepth knowledge of the industry, products and dialysis centres ?
If possible, include the biographies of the management team, which should include the names and backgrounds of lead members of the management team and their respective responsibilities.

3. Cashflow Projection
What is your undestanding of the nuances of dialysis reimbursement, and corporate compliance issues?
What is your dialysis center capacity and where is the break even point?
Would your business be generating profit within the next 3 years? (What is the investors’ ROI?)
When is the business being able to self-sustained (the soonest the better) and be making profit?

4. Your Dialysis Business Exit Strategy
All good business plans include a section that lays out the benchmarks you’ll use in deciding to call it quits. The strategy could be based on a dollar figure, revenue growth, the market’s reception to your idea, or a consensus among top officers.

If you think it is not in your current position to prepare the dialysis business proposal, you could release some workload and leverage on companies with expertise in this field by outsourcing certain setup jobs and management responsibilities to them at different stages.

No matter how strong your concept is and whether you are seasoned entrepreneur or just a new start up, if you are looking to raise finance from venture capitalists as your business startup capital or angel investor capital, you need to think competitively throughout your dialysis centers business plan.

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