Business Plan for a Legal Nurse Consulting Firm

Executive Summary

Legal Nursing Services Inc. (LNS) is a proposed legal nurse consulting firm to be located in Baltimore, Maryland. The firm will be staffed with seasoned legal nurse consultants who are experts in medically related cases. The core business of LNS will be to assist clients — lawyers and attorneys — with analyzing and appraising medical records in order to ensure that those clients provide satisfactory services to their own clients. LNS will also offer services aimed at helping clients understand medical terminology and other issues related to healthcare delivery, enabling them to provide superior legal services. LNS will be a limited liability company chartered in Maryland, United States.

In order to put the proposed LNS operations into perspective, it is worth reviewing its mission, objectives, organizational plan, resources and staffing, and implementation and evaluation plans.

The mission of LNS is to work with attorneys and other stakeholders in the legal process to evaluate, analyze, and render objective and informed opinions with respect to healthcare delivery. LNS services will also cover issues related to the outcomes of healthcare delivery to residents of the firm's potential host communities. LNS will serve as a strategist, educator, and collaborator on legal issues related to medical litigation, among others. Services will cover medically related legal issues including healthcare licensure investigation, personal injury, product liability, medical malpractice, toxic torts, and workers' compensation.

In the first three years of operation, LNS will achieve the following objectives:

Mission Statement and Objectives

1. Establish and operate a company that provides superior services to clients. The primary goal is to exceed client expectations by applying the principles of total quality management.

2. Patiently build a loyal client list that includes at least 35 law firms and generates a revenue base of at least $2 million.

3. Build a company capable of providing services to clients at a competitive rate.

LNS will be a limited liability company established by family members. As an LLC, LNS will enjoy a status similar to that of a corporation, with owners benefiting from limited personal liability for the debts and actions of the company (Hubbard & O'Brien, 2009; Miller, 2011; Graham et al., 2010). However, many states in the United States — particularly Maryland — do not place restrictions on the ownership structure of limited liability companies. Accordingly, LNS will welcome other individuals, companies, and even foreign entities as co-owners.

LNS will commence operations by opening an office in Baltimore, Maryland, and subsequently open branch offices in other major U.S. cities.

LNS will provide the following services to clients:

1. Organize, analyze, and appraise medical records and other litigation materials on behalf of clients.

Organizational Plan and Services

2. Prepare, compare, and correlate healthcare events with legal allegations.

3. Conduct interviews on behalf of clients.

4. Assist clients in identifying and appraising standards of care and related issues such as causation and damage.

5. Assist clients in effectively determining whether a case has merit or is defensible.

6. Assist clients in developing and preparing exhibits.

7. Assist clients on issues related to depositions and trials.

8. Assist clients in preparing and analyzing complaints, trial briefs, status reports, queries for cross-examination, and similar documents.

9. Perform other vital functions, such as attendance at medical examinations and processing document production requests.

The following startup costs for LNS cover office space, website creation, and miscellaneous costs such as business registration, general office maintenance, rent, advertising, and staff remuneration. These costs are based on current market rates for the items listed.

Office equipment will include three computers, one fax machine, one copier, one landline telephone, one printer, a DSL connection, and office furniture. Office staff will consist of two certified legal nurse consultants, one office manager, two administrative assistants, and one receptionist.

Resources, Staffing, and Startup Costs

Advertising represents an important component of startup costs. The company will use four advertising methods: online advertising, television, Yellow Pages, and newspaper advertising.

The breakdown of startup costs is presented in Table 1 below.

Table 1 – Start-Up Summary

START-UP EXPENSES — Total: $12,300 (thousands)
1. Company Registration (Maryland): $100
2. Rent and utility bills (1 year): $9,000
3. Legal expenses: $1,200
4. Other (e.g., advertising): $2,000

OFFICE EQUIPMENT — Total: $12,324 (thousands)
1. Three computers: $2,664
2. Laser fax/copier machine: $294
3. One copier: —
4. One landline (12 months): $1,920
5. One printer: $160
6. One DSL connection: $200
7. Office furniture: $3,999
8. Office supplies (6-month supply): $2,000
9. Miscellaneous expenses: $1,087

OFFICE STAFF REMUNERATION — Total: $515,000
1. Two certified legal nurse consultants (annual salary): $300,000
2. One office manager (annual salary): $80,000
3. Two administrative assistants (annual salary): $35,000
4. One receptionist (annual salary): $28,000
5. One accountant (annual salary): $68,000

OPERATING EXPENSES — Total: $4,000

TOTAL FUNDING REQUIRED: $543,624

LNS plans to obtain its required capital of $543,624 from three major sources: bank loans, loans from non-bank financial institutions, and savings and contributions from the individual owners.