Brown's Chiropractic and Wellness Center

8/2/2019 Brown's Chiropractic and Wellness Center

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Brown's Chiropractic and Wellness Center


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Legal Page

Confidentiality Agreement

The undersigned reader acknowledges that the information provided byBrown's Chiropractic andWellness Centerin this business plan is confidential; therefore, readers agree not to disclose it without theexpress written permission ofBrown's Chiropractic and Wellness Center.

It is acknowledged by readers that information to be furnished in this business plan is in all respectsconfidential in nature, other than information which is in the public domain through other means and thatany disclosure or use of same by reader, may cause serious harm or damage toBrown's Chiropractic and

Wellness Center. Upon request, this document is to be immediately returned toBrown's Chiropractic andWellness Center.

___________________Signature

___________________Name (typed or printed)

___________________Date

This is a business plan. It does not imply an offering of securities.


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1.0 Executive Summary ....................................................................................................................................1Chart: Highlights .......................................................................................................................................1

1.1 Objectives ................................................................................................................................................21.2 Mission ....................................................................................................................................................21.3 Keys to Success .......................................................................................................................................2

2.0 Company Summary .....................................................................................................................................32.1 Company Ownership ..............................................................................................................................4

Table: Past Performance ...........................................................................................................................4Chart: Past Performance ...........................................................................................................................5

3.0 Services .......................................................................................................................................................5

4.0 Market Analysis Summary .........................................................................................................................64.1 Market Segmentation ..............................................................................................................................7

Table: Market Analysis .............................................................................................................................7Chart: Market Analysis (Pie) ....................................................................................................................8

4.2 Target Market Segment Strategy ............................................................................................................84.3 Service Business Analysis ......................................................................................................................9

5.0 Web Plan Summary ...................................................................................................................................105.1 Website Marketing Strategy .................................................................................................................105.2 Development Requirements ..................................................................................................................10

6.0 Strategy and Implementation Summary ...................................................................................................116.1 SWOT Analysis ....................................................................................................................................11

6.1.1 Strengths .........................................................................................................................................116.1.2 Weaknesses ....................................................................................................................................126.1.3 Opportunities ..................................................................................................................................126.1.4 Threats ............................................................................................................................................12

6.2 Competitive Edge ..................................................................................................................................126.3 Marketing Strategy ................................................................................................................................126.4 Sales Strategy ........................................................................................................................................13

6.4.1 Sales Forecast .................................................................................................................................13


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Table: Cash Flow ....................................................................................................................................20Chart: Cash ..............................................................................................................................................21

8.5 Projected Balance Sheet ........................................................................................................................22Table: Balance Sheet ...............................................................................................................................22

8.6 Business Ratios .....................................................................................................................................23Table: Ratios ...........................................................................................................................................23

Table: Sales Forecast .........................................................................................................................................1

........................................................................................................................................................................... 1

Table: Personnel ................................................................................................................................................2

........................................................................................................................................................................... 2Table: Profit and Loss .......................................................................................................................................3

........................................................................................................................................................................... 4Table: Cash Flow ..............................................................................................................................................5

........................................................................................................................................................................... 7Table: Balance Sheet .........................................................................................................................................8


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1.0 Executive Summary

Brown's Chiropractic and Wellness Center will serve the St. Mary's, Georgia area. Dr. Celeste Brown,Dr. Anthony Hammond, Dr. Tanja Woodruff and Christopher M. Brown will be the owners andoperators of the wellness center. The center will specialize in the fastest growing alternative healthcare field, chiropractic.

The chiropractic approach to health care is holistic, stressing the patient's overall health and wellness.It recognizes that many factors affect health, including exercise, diet, rest, environment, and heredity.Chiropractors provide natural, drugless, nonsurgical health treatments, and rely on the body's inherent

recuperative abilities.

Brown's Chiropractic and Wellness Center will provide quality chiropractic services to people of allages. The center will utilize new equipment and a trained staff, able to care for the individual needs ofevery patient that enters the clinic.

Our center's keys to success are to put the patient's health issues first and to treat each person as anindividual, with individual health care needs.

Sales are projected to increase from the first year to the third, and profits almost negligible for thestart-up phase of this business. We show a break-even point after seven months of business.

We are projecting very conservatively regarding gross margin. Our client base should grow muchfaster than the projections. We prefer to project conservatively so that we make sure we have enoughcash for unexplained costs.

Chart: Highlights


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1.1 Objectives

1. Gross revenues of $1,200,000 in year three.

2. Net profits of $58,000 for each year in the plan.

3. Increase from an average of 1200 monthly office visits to 2400 by our third year.

4. Patient visit average of 60 visits per patient per year.

5. Collections of 95% or more and missed appointments under 5%.

The above figures are very conservative for patient visit averages when compared to the nationalaverage of 135 visits per week or 540 visits per month. We are keeping our figures on the low side toshow that even if our clinic only produces one third the national average for patient visits per monththat the business model is still viable.

1.2 Mission

Brown's Chiropractic and Wellness Centermission is to provide the people of Camden County and thesurrounding areas a service that will help patients achieve and maintain their highest potential forhealth.

Brown's Chiropractic and Wellness Centerwill focus primarily on spinal function and its relationshipto the nervous system therefore affecting overall health. The science of chiropractic is based on thepremise that good health depends, in part, on a normally functioning nervous system. Chiropracticprinciple emphasizes that the body is a self-regulating, self-healing organism and that body function is

controlled and coordinated by the brain, spinal cord and the nerves that branch throughout the body.Brown's Chiropractic and Wellness Centerapproach to better health is to locate and remove spinaldysfunction and nerve interference, returning the body to its natural state of health and wellness.B ' Chi ti d W ll C t ill t hi ti d ti t th bli ll


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Moreover, we will institute electronic billing procedures, which will cut down on paperwork and willincrease ease of patient tracking. Our office floor plan is set up in such a way to also decrease the timeit takes to provide quality chiropractic care per individual visit.

Reputation

Brown's Chiropractic and Wellness Center will be taking over a well established business in thecommunity. By bringing along some of our own patients, this will help the current patients feel moreat ease. Our staff of doctors has an outstanding reputation for professionalism and patient care. Dr.Smith, the current owner of the practice, has known Dr. Brown and Dr. Hammond for over twelveyears.

Becoming well known in a community takes time, but once this trait is established it can increase thesuccess of a center. Our center will accomplish this by going out into the community, church groups,high schools, and networking with other professionals in the area.

Location

Brown's Chiropractic and Wellness Center will be located in a busy section of Saint Mary's, Georgia.

The selection of this location is based on the current demographics of growth of Saint Mary's and thesurrounding areas. The facility will require little renovation. The location has ample parking spacesand room for future expansion.

2.0 Company Summary

Brown's Chiropractic and Wellness Centerwill purchase Dr. Smith's Chiropractic Services in SaintMary's, Georgia. We will be operated by three doctors, Dr. Celeste Brown, Dr. Anthony Hammond,

and Dr. Tanja Woodruff. Christopher M. Brown will manage all of the business and technical aspectsof the company. The doctors have over 40 years experience in their related fields.

B ' Chi i d W ll C ill id hi ti d th i t th


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2.1 Company Ownership

Brown's Chiropractic and Wellness Center will be established as a limited liability company in Saint

Mary's, Georgia. It will be owned by Dr. Celeste Brown, Dr. Anthony Hammond, Dr. Tanja Woodruffand Christopher M. Brown. Each owner will have equal shares of the company.

Table: Past Performance

Past PerformanceFY 2010 FY 2011 FY 2012

Sales $0 $0 $449,055Gross Margin $0 $0 $434,452Gross Margin % 0.00% 0.00% 96.75%Operating Expenses $0 $0 $170,592

Balance Sheet

FY 2010 FY 2011 FY 2012

Current AssetsCash $0 $0 $171,050Other Current Assets $0 $0 $102,001Total Current Assets $0 $0 $273,051

Long-term AssetsLong-term Assets $0 $0 $104,000Accumulated Depreciation $0 $0 $4,248Total Long-term Assets $0 $0 $99,752


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Other Inputs

Payment Days 0 0 30

Chart: Past Performance

Sales

Gross

Net

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

FY 2010 FY 2011 FY 2012

Past Performance

3.0 Services

Brown's Chiropractic and Wellness Center will provide the following chiropractic health services;chiropractic adjustments, nutritional support and products, massage therapy, rehabilitation and


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long-term goals include expansion of the business to comprise satellite offices in the surroundingcommunities.

4.0 Market Analysis Summary

Job prospects are expected to be good for persons who enter the chiropractic practice. Employment ofchiropractors is expected to grow faster than average for all occupations through the year 2015 asconsumer demand for alternative community grows.

Chiropractors emphasize the importance of healthy lifestyles and do not prescribe drugs or performsurgery. As a result, chiropractic care is appealing to many health-conscious Americans. Chiropractictreatment of back, neck, extremities, and other joint damage has become more accepted as a result ofrecent research and changing attitudes about alternative community practices.

The rapidly expanding older population, with their increased likelihood of mechanical and structuralproblems, also will increase demand in the chiropractic profession.

Demand for chiropractic treatment is also related to the ability of patients to pay, either directly orthrough health insurance. Although more insurance plans now cover chiropractic services, the extentof such coverage varies among plans.

Increasingly, chiropractors must educate communities about the benefits of chiropractic care in orderto establish a successful practice.

In this occupation, replacement needs arise almost entirely from retirements. Chiropractors usually

remain in the occupation until they retire; few transfer to other occupations. Establishing a newpractice will be easiest in areas with a low concentration of chiropractors.


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4.1 Market Segmentation

The Advanced Chiropractic Clinic will focus on the following market segments:

Blue collar work force (age 18-44);

Active baby-boomers (age 45-64);

Retired (age 65 and up);

Children (age 0-17);

Table: Market Analysis

Market Analysis

2012 2013 2014 2015 2016PotentialCustomers

Growth CAGR

Children (age 0-17) 3% 13,500 13,905 14,322 14,752 15,195 3.00%Adults (age 18-44) 4% 21,000 21,840 22,714 23,622 24,567 4.00%Active Baby-Boomers (age 45-64)

6% 15,000 15,900 16,854 17,865 18,937 6.00%

Retired (age 65 andup)

7% 4,500 4,815 5,152 5,513 5,899 7.00%

Active and retiredMilitary

5% 6,400 6,720 7,056 7,409 7,779 5.00%

Total 4.63% 60,400 63,180 66,098 69,161 72,377 4.63%


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Chart: Market Analysis (Pie)

Children (age 0-17)

Adults (age 18-44)

Active Baby-Boomers (age 45-6

Retired (age 65 and up)

Active and retired Military

Market Analysis (Pie)

4.2 Target Market Segment Strategy

Blue Collar Workforce

St. Mary's and the surrounding area have a high number of blue-collar workers in a number ofdifferent work places.

These workers are in stressful job settings with little or no on the job training in work-relatedergonomics. Many of these jobs require repetitive movements and lifting that cause stress and injuryover time.


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Family/Friend Referrals

A big advantage of starting a business near your hometown, where there is a large family base, is thatin the early stages of building a patient base I expect to receive referrals and treat many of my family

members.

I also have family members who run small businesses in the area and I will be coordinating marketingprojects through them to increase my presence in the area.

4.3 Service Business Analysis

Chiropractors, also known as doctors of chiropractic or chiropractic physicians, diagnose and treat

patients whose health problems are associated with the body's muscular, nervous, and skeletal systems,especially the spine.

Chiropractors believe interference with these systems impairs normal functions and lowers resistanceto disease. They also hold that spinal or vertebral dysfunction alters many important body functions byaffecting the nervous system, and that skeletal imbalance through joint or articular dysfunction,especially in the spine, can cause pain.

The chiropractic approach is holistic, stressing the patient's overall health and wellness. It recognizesthat many factors affect health, including exercise, diet, rest, environment, and heredity.

Chiropractors provide natural, drugless, nonsurgical health treatments, and rely on the body's inherentrecuperative abilities. They also recommend lifestyle changes - in eating, exercise, and sleeping habits,for example - to their patients. When appropriate, chiropractors consult with and refer patients to otherhealth practitioners.

Like other health practitioners, chiropractors follow a standard routine to secure the informationneeded for diagnosis and treatment. They take the patient's medical history, conduct physical,neurological, and orthopedic examinations, and may order laboratory tests. X-rays and other diagnostici i t t t l b f th h i th i d it f ti Chi t


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5.0 Web Plan Summary

Brown's Chiropractic and Wellness Center do not anticipate the website being a big player in ourmarketing and sales game plan initially; we do understand the importance a web presence has inportraying a certain image to the public. Brown's Chiropractic and Wellness Center, LLC website willoffer basic information on the benefits of chiropractic care for various injuries and conditions, as wellas listing our address, contact information, and hours. We will list a series of FAQs (Frequently AskedQuestions), and include a link to a mapping site with online directions to the office.

In the future, we may consider adding an interactive format that allows patients to check their accountbalance and activity, pay bills, and schedule appointments online. It is our goal to keep up withchanges in technology so long as they are cost effective; therefore, we will review our web planquarterly and make changes in accordance with our growth and cash flow analysis.

To further show off its expertise, Brown's Chiropractic and Wellness Center, LLC website shouldcreate a resources area, offering articles, research and copies of our monthly newsletters to interested

parties. A calendar of upcoming seminars and the staffs schedule of continuing education will also bean excellent way of showing our commitment to keeping up with the latest in natural healthcareadvances.

The key to the website strategy will be combining a very well designed front end, with a back endcapable of recording leads. The web address, which is already under construction, is www.Brown'sChiropractic and Wellness Center.com.

5.1 Website Marketing Strategy

Initially, our website will not play a large part in our overall marketing strategy. As previously stated,B ' Chi ti d W ll C t LLC b it ill b id d i f


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6.0 Strategy and Implementation Summary

Brown's Chiropractic and Wellness Center will focus on three fundamental business strategies;

maintaining a professional business attitude when treating patients, using a systematic approach tomanage patients, and educating patients and the community to the advantages of chiropractic care.

The target patient group will be blue collar workers and their families.

6.1 SWOT Analysis

The SWOT analysis provides us with an opportunity to examine the internal strengths and

weaknessesBrown's Chiropractic and Wellness Centermust address. It also allows us to examine theopportunities presented toBrown's Chiropractic and Wellness Centeras well as potential threats.

Brown's Chiropractic and Wellness Centerhas a valuable inventory of strengths that will help itsucceed. These strengths include: a knowledgeable and friendly staff, state-of-the-art computerhardware, and a clear vision of the market need. Strengths are valuable, but it is also important torealize the weaknessesBrown's Chiropractic and Wellness Centermust address. These weaknessesinclude: the need to hire qualified staff, readily available cash flow.

Brown's Chiropractic and Wellness Centerstrengths will help it capitalize on emerging opportunities.These opportunities include, but are not limited to, a growing population of patients. ThreatsthatBrown's Chiropractic and Wellness Centershould be aware of include emerging localcompetitors.

6.1.1 Strengths

Brown's Chiropractic and Wellness Centerhas a strong foundation of doctors with years ofchiropractic experience. They are trained in the latest methods and techniques. There is a continueddemand for our orthopedic and chiropractic services on a year round basis despite any negative

i li B ' Chi i d W ll C ill b ki h f i i


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6.1.2 Weaknesses

Brown's Chiropractic and Wellness Centerweakness is lack of a full staff. We need to hire anotherexperienced massage therapist and a registered nurse. Our office manager will need assistants sinceBrown's Chiropractic and Wellness Centerwill be a bigger place. We will have to budget in anaccountant to compute taxes and file our quarterly reports. We also will need to retain a law firm toreview all legal contracts and documents necessary for initiation of the business and as warrantedthereafter on a fee-for-service basis.

6.1.3 Opportunities

Brown's Chiropractic and Wellness Centerwill have opportunities for new patients since developmentin the Camden County area has increased. There is a Naval Base, hospital and Veterans Clinic nearbyour location. Since I am a veteran, I will getBrown's Chiropractic and Wellness Centerput on the listfor services at the Veterans Clinic. We will acquire a large part of the market by doing the things otherchiropractors in our area are not doing.

6.1.4 Threats

There are three other chiropractic services in the area but only one wellness center. The wellnesscenter is already on the approved service list at the Veterans Clinic. One of the chiropractors has beenin business for over twenty years.

6.2 Competitive Edge

The Advanced Chiropractic Clinic will have a competitive edge based on hard work, organization,trustworthiness, and the knowledge of the most recently taught techniques and training available in the

chiropractic profession. All of these factors will lead to high internal referral rates do to patientsatisfaction.

O li i ill i i f i l h b l h h i f l


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6.4 Sales Strategy

Sales in our business are part service and part education. We must service the patient by listeningintently and identifying their chief area(s) of concern, and then provide visible evidence, when itexists, to show them what the cause of their problem is and the benefits of correcting thatproblem. We will never sell a patient on a visit by visit basis, but rather on a per case basisdemonstrating the value of following a proven program that works for their complaint.

We must never be afraid to tell the patient everything they need, but also keep in mind people do not

always buy what they need but what they emotionally desire. We must cause them to emotionallydesire better health. When a patient balks at our care plan we must refocus them on the benefits of theend result and in the end be willing to walk away from someone who is not willing to invest in theirown health. Our fees are non-negotiable.

The same holds true when working at the corporate level. When selling a company on our ability toservice their workforce, we must make it clear that cheap care is not the same as cost-effective care. Itis important to demonstrate how providing the right type of care for each situation while costing them

money in the short term will actually save them money by reducing lost work time, the cost oftraining new or replacement employees, and insurance costs.

6.4.1 Sales Forecast

The Sales Forecast table is broken down by how many patient visits occur per month. Thesales/revenue per visit is set at $50 per visit with a 20% growth rate per month of patient visits. Thisformula is carried out to forecast three years into the future.

Table: Sales Forecast


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Chart: Sales Monthly

Average Visits Per Month

Other

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Sales Monthly

Chart: Sales by Year

$1,000,000

$1,200,000

Sales by Year


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Our office manager will do the hiring and administration work along with the people they hire. Thelicensed massage therapist will offer several massage services.

7.1 Personnel Plan

The following table summarizes our personnel expenditures for the first three years, withcompensation increasing modestly.

An employee bonus pay structure will be developed after year three or the plan will be implementedduring the first three years if there is a significant increase in sales/net profits.

Table: Personnel

Personnel Plan

FY 2013 FY 2014 FY 2015Dr. Celeste Brown $42,000 $45,000 $50,000Dr. Anthony Hammond $42,000 $45,000 $50,000Dr. Tanja Woodruff $42,000 $45,000 $50,000

Christopher M. Brown $36,000 $40,000 $45,000Office Manager $24,000 $26,000 $28,000Massage Therapist $21,600 $24,000 $26,000Receptionist $19,200 $22,000 $24,000Total People 7 8 10

Total Payroll $226,800 $227,000 $273,000

8.0 Financial Plan

h f ll i i l h d il f fi i l l f h h


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Again this is well below the national average, we expect our business to be meeting or exceeding thenational averages by year three, but we wanted to show that the business plan is still viable at theselow numbers.

8.2 Break-even Analysis

The following chart and table summarize our Break-even Analysis. With fixed costs of $6,775 permonth at the outset, our clinic will need to collect $6,775 of billings to cover our monthly costs.

Our average service charge collected will be $50, therefore we will need to have 136 patient visits permonth (34 per week) to achieve a break-even point. We don't expect to reach break-even until six

months into the business operation, at which point our patient base will have expanded and internalreferrals will be increasing each month.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $23,938

Assumptions:Average Percent Variable Cost 3%

Estimated Monthly Fixed Cost $23,162

Chart: Break-even Analysis

Break-even Analysis


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8.3 Projected Profit and Loss

Our Projected Profit and Loss is shown on the following table, with sales increasing from $453,588 thefirst year to about $1,248,739 the third, and profits almost negligible for the start-up phase of thisbusiness. We show a break-even point after six months of business in December of 2013.

Our break-even point of sales per month is $7,395 or about 148 patient visits per month. Again this isabout 1/4 the national average, but we would rather stay on the conservative side when forecasting,thus assuming little risk.

The projected net profit for the first three years is approximately $5,000/yr. These projections do not

account for tax depreciation on equipment or deductions for a home office.

As with the break-even, we are projecting very conservatively regarding gross margin. Our client baseshould grow much faster than the projections. We prefer to project conservatively so that we makesure we have enough cash for unexplained costs.

The detailed monthly projections are included in the appendix.

Table: Profit and Loss

Pro Forma Profit and Loss

FY 2013 FY 2014 FY 2015Sales $453,588 $1,040,256 $1,248,739Direct Cost of Sales $14,718 $24,846 $30,014Other Costs of Sales $0 $0 $0

Total Cost of Sales $14,718 $24,846 $30,014

Gross Margin $438,870 $1,015,410 $1,218,725


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Taxes Incurred $44,752 $215,530 $274,537

Net Profit $104,421 $502,903 $640,585

Net Profit/Sales 23.02% 48.34% 51.30%

Chart: Profit Monthly

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

($5,000)

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Profit Monthly

Chart: Profit Yearly


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Chart: Gross Margin Monthly

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000


Gross Margin Monthly

Chart: Gross Margin Yearly

Gross Margin Yearly


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cash flow figures are included here and the more important detailed monthly numbers are included inthe appendix.

The clinic's negative net cash flow in the initial start up phase (first six months) will be offset by a$15,000 line-of-credit obtained from investors. This credit line will be used for any other expenditurethat are not yet accounted for in this plan.

Table: Cash Flow

Pro Forma Cash Flow

FY 2013 FY 2014 FY 2015Cash Received

Cash from OperationsCash Sales $453,588 $1,040,256 $1,248,739Subtotal Cash from Operations $453,588 $1,040,256 $1,248,739

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0New Current Borrowing $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0Subtotal Cash Received $453,588 $1,040,256 $1,248,739

Expenditures FY 2013 FY 2014 FY 2015

E di f O i


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Chart: Cash

Net Cash Flow

Cash Balance

$0

$30,000

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

$240,000

($30,000)

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Cash


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8.5 Projected Balance Sheet

The Balance Sheet in the following table shows managed but sufficient growth of net worth, and a

sufficiently healthy financial position by year three.

The loan repayment is also shown in the monthly expense report. The monthly estimates are includedin the appendix.

Table: Balance Sheet

Pro Forma Balance Sheet

FY 2013 FY 2014 FY 2015Assets

Current AssetsCash $247,553 $720,478 $1,336,577Other Current Assets $102,001 $102,001 $102,001

Total Current Assets $349,554 $822,479 $1,438,578

Long-term AssetsLong-term Assets $104,000 $104,000 $104,000Accumulated Depreciation $8,500 $13,134 $17,768Total Long-term Assets $95,500 $90,866 $86,232Total Assets $445,054 $913,345 $1,524,810

Liabilities and Capital FY 2013 FY 2014 FY 2015

Current LiabilitiesA t P bl $24 816 $25 144 $30 963


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8.6 Business Ratios

The following table shows the projected business ratios. We expect to maintain healthy ratios forprofitability, risk, and return. The industry comparisons are for SIC 8041, Offices of Chiropractors.

Table: Ratios

Ratio AnalysisFY 2013 FY 2014 FY 2015 Industry

ProfileSales Growth 1.01% 129.34% 20.04% 0.53%

Percent of Total AssetsOther Current Assets 22.92% 11.17% 6.69% 60.33%Total Current Assets 78.54% 90.05% 94.34% 65.65%

Long-term Assets 21.46% 9.95% 5.66% 34.35%Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 3.90% 1.12% 0.57% 37.05%Long-term Liabilities 24.49% 8.92% 3.54% 47.73%Total Liabilities 28.39% 10.05% 4.11% 84.78%Net Worth 71.61% 89.95% 95.89% 15.22%

Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 96.76% 97.61% 97.60% 95.36%S lli G l & Ad i i i 94 90% 95 21% 96 06% 48 86%


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Payment Days 32 30 27 n.aTotal Asset Turnover 1.02 1.14 0.82 n.a

Debt RatiosDebt to Net Worth 0.40 0.11 0.04 n.aCurrent Liab. to Liab. 0.14 0.11 0.14 n.a

Liquidity RatiosNet Working Capital $332,178 $812,215 $1,429,934 n.aInterest Coverage 13.69 86.44 187.22 n.a

Additional RatiosAssets to Sales 0.98 0.88 1.22 n.aCurrent Debt/Total Assets 4% 1% 1% n.aAcid Test 20.12 80.13 166.44 n.aSales/Net Worth 1.42 1.27 0.85 n.a

Dividend Payout 0.00 0.00 0.00 n.a


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Appendix

Table: Sales Forecast

Sales Forecast


SalesAverage VisitsPer Month

0% $10,764 $13,024 $15,759 $19,068 $23,072 $27,917 $33,780 $40,874 $49,458 $59,844 $72,411 $87,617

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Sales $10,764 $13,024 $15,759 $19,068 $23,072 $27,917 $33,780 $40,874 $49,458 $59,844 $72,411 $87,617

Direct Cost ofSales


Average VisitsPer Month

0% $610 $683 $765 $857 $960 $1,075 $1,204 $1,348 $1,510 $1,691 $1,894 $2,121

Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct

Cost of Sales

$610 $683 $765 $857 $960 $1,075 $1,204 $1,348 $1,510 $1,691 $1,894 $2,121

Page 1


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Appendix

Table: Personnel

Personnel Plan

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayDr. CelesteBrown

0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500

Dr. AnthonyHammond

0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500

Dr. TanjaWoodruff

0% $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500

Christopher M.Brown

0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Office Manager 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000MassageTherapist

0% $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

Receptionist 0% $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600Total People 7 7 7 7 7 7 7 7 7 7 7 7

Total Payroll $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900

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Table: Profit and Loss

Pro FormaProfit and

Loss

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MaySales $10,764 $13,024 $15,759 $19,068 $23,072 $27,917 $33,780 $40,874 $49,458 $59,844 $72,411 $87,617Direct Costof Sales

$610 $683 $765 $857 $960 $1,075 $1,204 $1,348 $1,510 $1,691 $1,894 $2,121

Other Costsof Sales

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost ofSales

$610 $683 $765 $857 $960 $1,075 $1,204 $1,348 $1,510 $1,691 $1,894 $2,121

GrossMargin

$10,154 $12,341 $14,994 $18,211 $22,112 $26,842 $32,576 $39,526 $47,948 $58,153 $70,517 $85,496

GrossMargin %

94.33% 94.76% 95.15% 95.51% 95.84% 96.15% 96.44% 96.70% 96.95% 97.17% 97.38% 97.58%

ExpensesPayroll $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900Sales andMarketingand OtherExpenses

$1,306 $1,371 $1,440 $1,512 $1,588 $1,667 $1,750 $1,838 $1,930 $2,026 $2,127 $2,233

Depreciation $353 $358 $354 $353 $352 $352 $354 $353 $357 $356 $356 $354Rent $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300Utilities &Phone

$700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700

Insurance $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150PayrollTaxes

15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other (misc) $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25

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TotalOperatingExpenses

$22,734 $22,804 $22,869 $22,940 $23,015 $23,094 $23,179 $23,266 $23,362 $23,457 $23,558 $23,662

Profit BeforeInterest andTaxes

($12,580) ($10,463) ($7,875) ($4,729) ($903) $3,748 $9,397 $16,260 $24,586 $34,696 $46,959 $61,834

EBITDA ($12,227) ($10,105) ($7,521) ($4,376) ($551) $4,100 $9,751 $16,613 $24,943 $35,052 $47,315 $62,188Interest

Expense$1,113 $1,089 $1,065 $1,040 $1,016 $992 $968 $943 $919 $895 $871 $846

TaxesIncurred

($4,108) ($3,466) ($2,682) ($1,731) ($576) $827 $2,529 $4,595 $7,100 $10,140 $13,827 $18,296

Net Profit ($9,585) ($8,086) ($6,258) ($4,039) ($1,343) $1,929 $5,901 $10,722 $16,567 $23,661 $32,262 $42,691

Net

Profit/Sales

-89.05% -62.09% -39.71% -21.18% -5.82% 6.91% 17.47% 26.23% 33.50% 39.54% 44.55% 48.73%

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PurchaseOtherCurrentAssets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

PurchaseLong-termAssets

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0SubtotalCash Spent

$43,891 $22,933 $23,695 $24,611 $25,709 $27,028 $28,611 $30,513 $32,802 $35,556 $38,871 $42,864

Net CashFlow

($33,127) ($9,909) ($7,936) ($5,543) ($2,637) $889 $5,169 $10,361 $16,656 $24,288 $33,540 $44,753

Cash

Balance

$137,923 $128,014

$120,078 $114,535

$111,898

$112,787 $117,956

$128,317 $144,973

$169,261 $202,800 $247,553

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Table: Balance Sheet

Pro FormaBalance

Sheet

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr MayAssets Starting

Balances

CurrentAssetsCash $171,050 $137,923 $128,014 $120,078 $114,535 $111,898 $112,787 $117,956 $128,317 $144,97

3$169,261 $202,800 $247,55

3OtherCurrentAssets

$102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001 $102,001

TotalCurrentAssets

$273,051 $239,924 $230,015 $222,079 $216,536 $213,899 $214,788 $219,957 $230,318 $246,974

$271,262 $304,801

$349,554

Long-termAssetsLong-termAssets

$104,000 $104,000

$104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000

$104,000

$104,000

$104,000

AccumulatedDepreciation

$4,248 $4,601 $4,959 $5,313 $5,666 $6,018 $6,370 $6,724 $7,077 $7,434 $7,790 $8,146 $8,500

Total Long-

term Assets

$99,752 $99,399 $99,041 $98,687 $98,334 $97,982 $97,630 $97,276 $96,923 $96,566 $96,210 $95,854 $95,500

Total Assets $372,803 $339,323 $329,056 $320,766 $314,870 $311,881 $312,418 $317,233 $327,241 $343,540

$367,472

$400,655

$445,054

Liabilitiesand Capital


CurrentLiabilitiesAccounts $22,042 $1,060 $1,791 $2,671 $3,725 $4,991 $6,511 $8,338 $10,536 $13,180 $16,363 $20,197 $24,816

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PayableCurrentBorrowing

$0 ($620) ($1,240) ($1,860) ($2,480) ($3,100) ($3,720) ($4,340) ($4,960) ($5,580) ($6,200) ($6,820) ($7,440)

OtherCurrentLiabilities

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal

CurrentLiabilities

$22,042 $440 $551 $811 $1,245 $1,891 $2,791 $3,998 $5,576 $7,600 $10,163 $13,377 $17,376

Long-termLiabilities

$136,496 $134,204

$131,912 $129,620 $127,328 $125,036 $122,744 $120,452 $118,160 $115,868

$113,576

$111,284

$108,992

TotalLiabilities

$158,538 $134,644

$132,463 $130,431 $128,573 $126,927 $125,535 $124,450 $123,736 $123,468

$123,739 $124,661

$126,368

Paid-inCapital

$64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000

Retained

Earnings

($55,000) $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265 $150,265

Earnings $205,265 ($9,585) ($17,672) ($23,929) ($27,968) ($29,311) ($27,382) ($21,482) ($10,760) $5,807 $29,468 $61,730 $104,421

Total Capital $214,265 $204,680

$196,593 $190,336 $186,297 $184,954 $186,883 $192,783 $203,505 $220,072 $243,733

$275,995 $318,686

TotalLiabilitiesand Capital

$372,803 $339,323 $329,056 $320,766 $314,870 $311,881 $312,418 $317,233 $327,241 $343,540

$367,472

$400,655

$445,054

Net Worth $214,265 $204,680

$196,593 $190,336 $186,297 $184,954 $186,883 $192,783 $203,505 $220,072 $243,733

$275,995 $318,686

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