Park Square Family MedicineFamily Medicine Clinic Business PlanPage 1 2 3 4 5 6 7 8 9 Previous Page Next Page Executive SummaryAs part of its ongoing efforts to improve access to health care in rural areas, General Medical Center is subsidizing the start-up and first year of operations of a new family medicine practice, Park Square Family Medicine. The business will be owned and managed by Dr.Nathan Detroit, MD as a sole proprietorship. He will be responsible for ensuring the general health of his patients and creating a viable and profitable business medical practice. Throughout the first year, Dr. Detroit will work closely with advisers from General Medical to get the clinic on a sound financial and operational footing, using this medical clinic business plan as a guiding management tool.Dr. Detroit will focus on diagnosing and treating conditions of all ages while emphasizing preventative medicine and the overall health and wellness of his patients. The clinic will utilize new equipment and a trained staff that will be able to optimize the care of each patient. He understands that there are many factors that can affect health, including exercise, diet, environment and heredity. Park Square Family Medicine will try to provide the most comprehensive medical care possible in order to optimize the care and well-being of each patient.Dr. Detroit will also carry out minor procedures in his office, but only after both risks andbenefits have been explained and understood and written consent has been obtained from the patient. Dr. Detroit will refer patients, when appropriate, to specialists and/or to hospitals for tests, further treatment and therapy. Dr. Detroitwill be assisted by two employees: a medical assistant and a receptionist. Ongoing training and support for these employees will be provided by General Medical Center throughout the first year.The marketing strategy involves a combination ofprint media advertising, website development, networking, and promotional events, all aimed at residents living within 35 miles of the clinic.With only five other family practitioners in town, we project a gradually increasing patient load over the first several years, as we find out place in the community.At first, the clinicwill be dependent upon the support received from General Medical Center. They will also cover Dr. Detroit's salary and payroll taxes for the first year of operations. As patient volume increases, we will begin supporting our expenses from revenues. At the end of the first year, the subsidies will cease, and Dr. Detroit's compensation will become one of the clinic's expenses. We expect to incur operating losses in the first three years,but have planned fora strong cash balance to keep the business running.We will begin making a small profit in the fourth year.Dr. Detroit will use all his experience and knowledge to create a successful and profitable practice. He will leverage the years he spent in solo practiceelsewhere to help model his new business. His past experience in conjunction with his progressive and diversified approach to each patient will allow him to rapidly grow a large and devoted patient base.

Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan ObjectivesThe objectives for the first years of operation include: To create a medical practice that will exceed patients' expectations To provide high-quality health care to residents of the area To create a medical practice that helps serve the community's needs To form a health care practice that is able to survive off its own cash flow in 10 months or less To increase the number of patients by 20% per year through superior performance and word-of-mouth referrals To develop a comprehensive website that includes online booking capability, as well as additional information about the practice, hours, demographic information, health information and much more Collections of 95% or more and missed appointments under 5% Average visits per month of 300 to 350 patients within the first 10 months and 400+ patients by the beginning of the second yearMissionThe mission of Park Square Family Medicine is to promote the health and well-being of the local population by providing accessible, high-quality medical care for people of all ages. Park Square Family Medicine is committed to providing services that will exceed the expectations of our patients, resulting in a successful and profitable business.Keys to SuccessPatients Focus on patient care Educate patients on the importance of preventative care Educate patients as to the importance of yearly check-ups Implementan aggressive and accurate recall system in which to remind patients to have regular check upsStaff and Office Organization Recognize that the office staff is as crucial, if not more crucial, than the physician(s) in the success of the business Create incentives by allowing the office staff to benefitfrom increased profits generated by the office Create a streamlined office systemto minimize patients' waiting timeFinances Keep a low overhead Optimize the number of patients we can see in a hour while providing quality medical care Use the latest in electronic billing and/or utilize an outside billing company Use this medical clinic business plan to review and guide management decisionsMarketing and Sales Aggressively market and create a presence in the community by giving high school talks, ER calls, hospital talks and doing volunteer work, business society meetings, and much more Network to obtain referrals from other professionals, such ER doctors, Specialists, Hospital Admissions Have an office front on a busy street with accessible parking Locate in an area with a high patient-to-doctor ratio Locate in close proximity to the Medical Surgery Center with easy access to specialty care Company Summary Park Square Family Medicine will offer general and preventative health care for all agesin this areaand the surrounding communities. The clinic will utilize a trained staff, new equipment, sound medical training, a referral system and nearby hospital facilities in order to maximize the care for each patient. Location and Facilities The start-up requirements include purchase of a building for use by the clinic. The building was built in 1931 and has undergone a complete remodeling. The total office space will be approximately 1,158 sq. feet and the lot size is 115.5' x 66'. There is also a storage shed which is 10 x 12 ft. The office is located just off the main street and the office has blacktop parking for eight cars plus a generous carport, as well as a wide driveway entrance for patient convenience. Company Ownership Park Square Family Medicine will be created as a sole proprietorship owned and operated by Dr. Nathan Detroit, MD. Start-up Summary It is estimated that start-upexpenses willnear $23,000. This amount of money will be used to purchase office equipment, medical supplies, furniture, stationary, and other start-up expenses. We will also need approximately $10,000 for cash on hand at start-up. Expenses and initial cash requirements will be funded by General Medical Center. Our long-term assets of $225,000 represent the purchase price ofthe building described above. Dr. Detroit will finance this purchase with a 15-year loan, guaranteed by his personal assets. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan Start-up

Requirements

Start-up Expenses

Legal & Accounting$500

Insurance$1,000

Marketing$2,000

Computer$3,000

Business License$32

Communications$150

Medical Equipment$7,000

Office Supplies$4,000

Office Furniture$2,000

Marketing Plan$3,000

Regulatory Duties/CLIA$50

Total Start-up Expenses$22,732

Start-up Assets

Cash Required$10,000

Other Current Assets$0

Long-term Assets$225,000

Total Assets$235,000

Total Requirements$257,732

ServicesIn general, Park Square FamilyMedicine will provide general care for all ages, as well as providing multiple procedures to create a complete health care solution. Park Square Family Practice will provide procedures including but not limited to mole removals, biopsies, and trigger point injections, and much more. We will also incorporate multiple modalities, such as cryotherapy, hyfrecator, shaving, and excisional removal of lesions and biopsies. The costs will depend upon the materials used, the physician's time and the amount designated for each procedure.Park Square FamilyMedicine philosophy is that optimal health and performance can be attained through the proper balance of exercise, nutrition, and education. Our goal is to educate our patients as well as treat them. Therefore, our services will also provide group classes and teaching sessions for our patients. Subjects could include nutrition, diabetes, hypertension, and much more. Park Square FamilyMedicine will focus on each individual case. After each procedure and where appropriate, each patient will be offered education in rehabilitation, nutrition and exercise as it relates to each particular case. Our goal is to create the most well-rounded experience for each patient in order to optimize their health.Park Square Family Medicine will maintain privacy according to HIPAA rules. All patients will be welcome, including the ones with no insurance. No one will be turned down for medical care. Our clinic will hold no prejudice to race, creed, color or socioeconomic status. Everyone will be welcome for great medical care at Park Square Family Medicine.Park Square Family Medicine will provide the following services, among others:Gynecology: PAP Tests Annual Well Women Exam Family Planning Acute Gyn ProblemsPediatrics: Newborn Care Infant Care Annual Physicals Routine Services Possible ImmunizationsDermatology: Removal of minor lesions, skin tags, moles and warts Biopsies of suspicious dermatological lesions and/or referral Allergy Testing and shots Tetanus Pneumovax ImmunizationsMinor Surgery: Laceration Repair Lesion Removals Hyfrecation for Lesions and Blemishes Adult Medicine Preventative and Routine Services Diabetic Teaching Nutritional/ Dietician Services Exercise and Obesity Counseling Cardiology: EKGs Possible Stress Testing (Future Service)Information Management and TechnologyIn order to comply with HIPAA laws and improve efficiency of billing, we will use a secure, networked, electronic medical records system.HardwareThe clinic will use the most advanced computer, server and software systems, as well as Internet connections, in order to optimize the potential EMR and PMS systems software as well as in other software and network system utilizedresulting in faster verification, efficient patient information transfer, reduction in administrative costs, computer breakdown or malfunction, as wells as allowing outside access for the physician in order to access important patient information for hospital admissions and in other important situation where information is needed about the patient in optimizing the care of the patient.BillingPark Square Family Medicine will utilizean outsideelectronic medical billing company. This will allow the medical practice to focus primarily on patient care satisfaction. The electronic medical billing company will use electronic claim billing and filing, which in turn will allow us to fully utilize the benefits of electronics claim filing (i.e. faster payment for processing insurance claims) while at the same time allowing us to maximize valuable clinic time and man power.The billing companycharges 7% of the total expenses collected.EMR (Electronic Medical Records)Park Square Family Practiceis strongly considering EMR, in order to secure the success and efficiency of the office. Below are a few of the benefits and features we may expect to gain from utilizing the EMR system. This technology is expected to increase the systematic approach for each patient, while at the same time decreasing risk while maximizing profits. We feel that all of these technological enhancements will increase our chances of success. BENEFITS:Increases Revenue by allowing more patient to be seen without working harder or longer, improves collections through management of referral and eligibility data, tracks managed care contracts, managed care payments/bonuses, provides valuable tools to generate research income, and provides for coding optimization.Reduces Expenses by reducing transcription costs, data analysis costs, paper storage and access costs, staff costs, and paper/forms costs.Reduces Risks by improving the quality of documentation, maintaining security and integrity of data, checks for drug interactions, helps to analyze payer relationships, and helps keep documentation andcoding in compliance with laws.Improves Quality by improving documentation, presenting and managing protocols, tracking and summarizing indicators, alerting providers, and helpingto track recalls.GENERAL FEATURES: Document Generation Workflow Management Image Management Electronic Superbill and Billing System Interface Coding Optimization Referral Management Eligibility Verification Contract Management Outcomes Analysis Lab Order Entry/ Lab Result Reporting Follow-up/Recall Tracking Patient Instructions Fax Capability Prescription Generation Graphing Voice Recognition Option Advanced Security Electronic Data Interchange (EDI) Mobile Solutions Scheduling OptionMarket Analysis SummaryAccording to the 2005local area"Economic and Demographic Profile Report," there is an increasing demand for cost-effective health care in the nation and in our region. Specifically, the local population (within 35 miles)is predicted to grow approximately 3.5% per year and has a population roughly around 160,000 people as of 2004. Market SegmentationThe largest age group inour areain 2004 was between 40-49, with 31,714 people. Residents over 60 make up a higher percentage of the population inhere than theregional average. Since we will be open to patients of all ages, our market segmentation breaks potential patients out into localpopulation (within 35 miles) and patients from the surrounding region (within70 miles).There are currently 4-5 family practitioners in town, with 15,000 people living within4 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio, in addition to the limited number of surrounding family medical practices.

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Market Analysis

Year 1Year 2Year 3Year 4Year 5

Potential CustomersGrowthCAGR

Local Population4% 160,000 165,600 171,396 177,395 183,604 3.50%

Surrounding Region Population4% 300,000 310,500 321,368 332,616 344,258 3.50%

Total3.50% 460,000 476,100 492,764 510,011 527,862 3.50%

Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.Create your own business plan Target Market Segment StrategyPark Square Family Medicine will locate and focus its efforts on the entire local population (within 35 miles). Our segmentation strategy is geographic for a number of reasons: The rural and semi-rural patients of this area will not, and often cannot,travel more than 30 miles to see a doctor. They would rather "wait it out" on all but urgent matters. Our clinic isa general family practice, and will treat patients of all ages, incomes, physical abilities, races, and ethnicities. As a family clinic, there is no need to createmarketing materialstargeted at only one or two of these groups, but we can appeal to all with a similar message. The expected growth of the local population, at 3.5% a year, makes this an ideal location for a broadly geographic marketing approach.Service Business AnalysisPark Square Family Medicine is part of the larger medical industry,in particular "Offices and Clinics of Medical Doctors." Private medical practices are numerous, generally small (1 - 4 physicians)and may provide either general or specialist services. They are well-suited to rural and semi-rural areas,which often do not have a large enough population to make a hospital or larger medical group a viable proposition.There are currentlyfive family practitioners in this town of 15,000, with 160,000 potential patientswithin 35 miles. These are favorable statistics that offer an excellent patient-to-doctor ratio for marketing efforts.Competition and Buying PatternsIn general, competition among fellow family practitioners our town and the surrounding area is small. The growing population base and the limited number of doctors createsa great potential for meeting our patient load goals.When choosing a family doctor, most patients look for someone knowledgeable andskilled who will listen carefully to their health concerns. They are more likely to return to a doctor whoselocation and hours are convenient and accessible, who have short waiting times for getting appointments and sitting in the waiting room, whose staff is friendly and helpful, and who work effectively with their insurance provider. The relative importance of each of these factors will vary by patients'age range, medical needs, and level of sophistication in managing their own health. Strategy and Implementation SummaryOur strategy for a successful start is based on quickly creating a high profile and name recognition within the community through public speaking, networking, promotional events, and print advertising. These marketing tools will be followed up with a sales strategy that relies on a pleasant and accessible location, well-trained, highly motivated employees, and a commitment to provide the best care and patient experience possible in every interaction. The advantage of this strategy is that every element of it is within our control. With few local doctors for this community, competition will be less of a concern than will education of potential patients about the benefits of seeing any doctor at all, and encouraging preventive health care.Competitive EdgePark Square Medical Center will have an competitive edge based on position, timing, quality of care, availability to patient, after-hour care, weekend hours, quality time, pleasant staff and office environment. All of these factors will result in patient satisfaction and high referral rates.In general, competition among fellow family practitioners inour townand the surrounding area is small. The growing population base and the limitednumber of doctors creates a strong opportunity.To develop good business strategies, perform a SWOT analysis of your business. It's easy with our free guide and template. Learn how to perform a SWOT analysisMarketing StrategyUpon opening up a new General Practice such as Park Square Family Medicine, it is important to create momentum before the actual day of opening. In conjunction with a Marketing and Advertising Group this momentum will be created 1 month prior to the opening date. We will first try to get our name recognized in conjunction with promoting the location and the services we can offer.We feel that the most important way to become established is create a presence among the community. The best way to create this is through a combination of the strategies outlined below, in order to accomplish greater visibility to prospective patients and institutions.Marketing Materials All written materials used to promote the medical office willshare a professional and polished look and feel. Our office will carry our own leaflets, to be made available to all patients, containing factual information about the services provided. This leaflet will also contain some biographical information, location, photos and other promotional material. This leaflet will be used to help promote Park Square Family Medicine both as handouts for patients within the clinic, as well as potential patients outside the clinic.The clinic will provide multiple education brochures from the AAFP. We will have an area wherehealth information will be displayed and dispersed in the form of packets and brochures. In addition, patient information handouts will also be available via the EMR system and the website. There will be a number of patient-friendly brochures, videos, mailings, and other materials used to promote the medical office. We will have multiple ads in magazines and newspapers, as well as a commercial to announce the opening of Park Square Family Practice.Park Square Family Medicine will employ commercials, mail-outs that may include new patient discounts, yellow pages, magazines, newspapers, and other forms of advertising. Promotional EventsWe will set up an open house for surrounding businesses and potential patients to let them see our new clinic. During these open houses, we will provide HTN readings, glucose testing, and much more. We will consider having a blood drive in coordination with the local hospitals and Red Cross. Park Square Family Medicinewill hold health information workshops with the help of community organizations for the general public at Park Square Family Medicine, as well as in local and public areas of interest. Our goal will be to bring new patients into the clinic but to also create word of mouth. New patients will have time to ask questions about medicine and new patients will be introduced to the new clinic. Our goal is to meet and promote the clinic to as many people before the opening of the clinic, as well as after the clinic is open. NetworkingPark Square Family Medicine will become a member of the business community. We will join and attend key business events that will help promote our new business. We will also promote ourselves in local business directories. We will also network through various organizations, such as local churches, the Lyons club, the Rotary club, as well as the country club in order to promote and generate further interest in our services. Park Square Family Medicine will incorporate reciprocal advertising with other nearby healthcare facilities, such as opticians, chiropractors, and hospitals. Park Square Family Medicine will obtain additional patients via ER referrals. AccessibilityPark Square Family Medicine will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several days that we will be open till 7:00 P.M. and that we will also be open on Saturdays. Marketing ExpensesPrint Distribution:Newspaper A: A newspaper that serves the local region. A weekly circulation reaching approximately 40,000 homes and apartments. Additional papers circulated to businesses for handout distribution. Estimated ad space for an 8 inch color ad: $445.00 per circulation. Requests for placement 25% surcharge. Discounts given for frequency.Magazine B: a monthly magazine that is mailed to approximately 40,000 residents within our area. Quarter Page Ad: $656.00 / Ad with 3 month contract, $627.00/ Ad with 6 month contract, $568.00/Ad with 12 month contract.Professional Directory C:They will have advertising opportunities in their Professional Directory that is published in the Fall. I do not have pricing details guaranteed. Estimate a Quarter Page Ad: $1,100.00/YearCommercial Advertising:Effective campaign would include 100-150 spots per month. Several cable channels to target. 30 second spots range between: $50-75.00/ Spot. Primetime setting is $65.00- $100.00/Spot.Direct Mail Marketing: Targeting a specific prospect and demographic. Designing a targeted campaign, printing, and mail processing: Estimate: $00.75/piece processed. Effective direct mail campaign ranges between 5,000-10,000. Mailing to the same market 3 times over a six month period.

Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan Sales StrategyThe sales process begins when a patient calls us, comes in for an appointment, or accompanies a family member to an appointment. In every interaction, we must be accessible, courteous, knowledgeable, and helpful.Location:The clinic will be located in the heart of town. Patients will easily be able to find the clinic. Signs will be posted in strategic places to help assure patients comfort in finding our location. We feel that our location is a great asset and will strengthen our future success.Flexible Hours:Park Square Medical Clinic will adopt several strategies to ensure patient satisfaction and word of mouth advertising. First, our hours will include after after-hours care and allow patients to come into clinic after they get off work. We will also be open on Saturdays. This means there will be several weekdays that we will be open till 7:00 P.M. and that we will be open on Saturdays. We will also take walk-ins in order to provide the best possible convenience for the patient.Environment, Appearance, Etiquette and Overall Patient Experience:The building will have a bright and cheerful appearance with flowers and plants to decorate the outside and inside of the office. There will be colorful and informative signs that will help them find the clinic. Upon arriving and entering the clinic the patient will be greeted with a smile.Patients' needs and concerns will be addressed and they will be asked politely to have a seat in the waiting room. Upon arrival to the waiting room they will experience comfortable seating, good lighting, soft music or T.V, reading material and the general comforts appreciated by any patient. The walls will have beautiful art and there may even be a fish tank. The clinic rooms will be professional, clean and organized and the walls will be decorated with medical posters that will help explain the most common conditions. During the consultation the doctor will have a white coat and tie and will conduct himself in a professional and courteous manner. After the consultation, the doctor or the nurse will escort the patient to the front where all further arrangements will be made. A courtesy reminder card will be filled our for patients' convenience.Pricing Strategy:The pricing for consultations and visits, as well as any procedures will be billed according to industry standards. We will be consistent with our competitors and the national averages. Most pricing will be dependent upon agreements with the five largest insurers in the area.Sales Literature:The clinic will provide multiple education brochures from the AAFP. We will have an area where information will be displayed and dispersed in the form of packets and brochures. In addition, information handouts will also be available via the EMR system and website.Sales ForecastThe first month prior to opening will be used to get the new office in order, set up appointments and begin marketing activities. The following months Park Square Medical Clinic will continue advertising andwill use less and less assistance from General Medical Center until the second year, when the subsidy will cease.The following tables basically represent the amount of money that the practice expects to be making.Note that we list no direct cost of sales. This is standard for the medical office industry, since all medical supplies and waste disposal (needles, gauze, etc.) are handled as monthly supply orders, not inventory. These expenses can be found in the projected Profit and Loss statement.

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Sales Forecast

Year 1Year 2Year 3Year 4Year 5

Sales

Patient Care$148,000 $220,000 $250,000 $270,000 $290,000

Other$0 $0 $0 $0 $0

Total Sales$148,000 $220,000 $250,000 $270,000 $290,000

Direct Cost of SalesYear 1Year 2Year 3Year 4Year 5

Not applicable - see expenses$0 $0 $0 $0 $0

Other$0 $0 $0 $0 $0

Subtotal Direct Cost of Sales$0 $0 $0 $0 $0

Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.Create your own business plan MilestonesWe have established some basic milestones to keep the business plan priorities in place. Responsibility for implementation falls on the shoulders of Dr. Detroit. This Milestones table will be updated as the year progresses using the actual tables. New milestones will be added as the first year of operations commences.

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Milestones

MilestoneStart DateEnd DateBudgetManagerDepartment

Design and place first ads9/1/200511/1/2005$2,000 Dr. Detroit & JackPSFM & GMC

Close on Building10/1/200510/2/2005$225,000 Dr. DetroitPSFM

Redecorate and Furnish Clinic10/1/200511/15/2005$13,000 Dr. DetroitPSFM

Install and Test EMR system11/1/200512/15/2005$4,000 Dr. Detroit & JanPSFM & GMC

Sign contract for medical billing11/1/200511/1/2005$0 Dr. DetroitPSFM

Employee training12/1/200512/31/2005$3,950 Dr. Detroit & LizPSFM & GMC

Finish Printed Materials12/1/200512/31/2005$3,500 Dr. Detroit & JackPSFM & GMC

Monthly Financial Review with GMC1/2/200612/31/2006$0 Dr. Detroit, Liz, & JohnPSFM & GMC

Monthly Operational Review with GMC1/2/200612/31/2006$0 Dr. Detroit & LizPSFM & GMC

Hold Open Houses1/2/20061/31/2006$500 Dr. DetroitPSFM

Begin first appointments2/1/20062/10/2006$0 Dr. DetroitPSFM

Track Patient Load, first three months2/1/20065/1/2006$0 Dr. DetroitPSFM

Totals$251,950

Web Plan SummaryPark Square Family Medicine will have a clinic website where patients can learn about our clinic, health information, location, map, hours of operation, biographical information about the physician, procedures and much more. We will also consider educational videos for diabetes, hypertension and many other important health issues facing society today, as well as specific health issues facing the local area.Website Marketing StrategyThe website marketing strategy will be focused on increasing placement in search engines. The practice and website will focus on the local population. We will develop strategies to create links from local websites in the community to our business. Information about the website will be on the office brochure, cards and future advertisements.Development RequirementsThe website will be created by two companies, one to design the "front-end" and another which will implement it as a working site. The user interface will consist of a clean and simple design in which to comfortably navigate. The major content of the site will be information about the practice, hours, location, general medical information, insurance accepted and hospitals covered. The "front-end" design will be created in Fireworks MX software and the back-end design will be created in MYSQL and PHP. The website will be hosted on a dedicated server. Future development may include a registration database for new patients and a question and answer forum. Management SummaryPark Square Family Medicine will initially have two employees: a receptionist and a medical assistant. They will both be paid hourly wages and have health and dental benefits. As the practice grows, we will add additional personnel to help with referrals and additional responsibilities that will be needed at that time. During the first year,Park Square Family Medicine'sphysician (the clinic owner) will work full-time at the clinic, but will be paid directly by General Medicine, and all of his benefits and payroll taxes will be paid by them. Starting in the second year, the physician/owner willdraw hissalary directly from Park Square Family Medicine. We will create a policy and procedures manual that will act as a guide and reference to sick pay, leave, vacation, hourly wages, payment, etc. The philosophies and guidelines in this manual will help maintain proper organizational structure.There will be a mandatory staff meeting on Wednesdays at 12:00 noon. There will be a pre-written list of items that will address ways to improve the practice. Everyone is expected to attend. All employees, including the doctor, will be expected to continue to better themselves in regards to both skills and knowledge. The staff of the clinic will have specific duties that they will perform on a daily basis. They will be responsible for their individual duties and must complete them in a systematic time-efficient manner. Once a month, Dr. Detroit will meet with each employee individually, and review their goals and performance for the month. Employees will have access to administrative consultants at General Medical for the first year, and will be expected to follow the suggestions that come out of joint meetings with Dr. Detroit and the consultants. Employees who consistently do a poor job will be written up and after two write-ups will be put on suspension. If the employee again fails to correct the problem that employee will be dismissed. All write-ups will occur in the presence of a witness and will be recorded. Personnel PlanEmployees will enjoy full medical and dental benefits.They will have a good salary that corresponds to their level of skill and total contribution to the medical practice. As our business grows and become stronger, we will offer a 401k plan. We may first start with a Simple IRA plan. The final goal is to create a profit-sharing opportunity in which to foster loyalty, longevity and contentment in the workplace.

Personnel Plan

Year 1Year 2Year 3Year 4Year 5

Physician salary$0 $110,000 $110,000 $110,000 $110,000

Receptionist$18,000 $20,000 $22,000 $23,000 $24,000

Medical Assistant$21,600 $21,600 $21,600 $23,000 $24,000

Health Insurance$2,000 $2,000 $2,000 $2,000 $2,000

Dental Insurance$2,000 $2,000 $2,000 $2,000 $2,000

Vision Insurance$2,000 $2,000 $2,000 $2,000 $2,000

Workman's Comp$1,800 $1,800 $1,800 $1,800 $1,800

Total People33 3 3 3

Total Payroll$47,400 $159,400 $161,400 $163,800 $165,800

Financial PlanIt is estimated that start-up expenses will be $22,732. This amount of money will be used to purchase office equipment, medical supplies, furniture, stationary, and other start-up expenses. This amount, and a starting cash balance of $10,000, will be financed by General Medical Center. In addition, we are in the process of acquiring a building worth $225,000 with a 15 year mortgage, which will be repaid from the company's cash flows. As a sole proprietorship, this loan is guaranteed by Dr. Detroit's personal assets, and General Medical Center does not assume responsibility for it.The physician's salary will be paid by General Medical throughout the first year. They will also provide us with $24,000 a month for business expenses, for 12 months. At the end of the first year, subsidies from General Medical will end. Although sales are projected to increase steadily, and the physician will take reduced salary in the second through fourth years, we project a loss in the second and third years. This is due to the loss of expense subsidies, and the additional expense of the physician's salary and related taxes. We expect to begin breaking even in the fourth year, and have budgeted a cash balance to carry us through the years of loss.Important notation/limitations in viewing the financial plan:1. The physician salary is considered a constant in the first year and therefore has not been included in this overall financial plan.

2. The $32,732 in start-up subsidies, and the $288,000 in first-year subsidiesis forgiven and not subject to reimbursement unless Park Square family medicine fails...which will not happen. "Failure" is defined in thegrant agreement as inability to achieve patient load goals for five months in a row during the first year.Start-up FundingThe start-up requirements, with the exception of the building loan, are to be financed by General Medical Center. This is in addition to the $288,000 they will be providing over a 12 month period as expense subsidies in the first year, and the physician's salary for the first year.The purchase of the building will be financed by the owner, Dr. Detroit, with a 15-year mortgage (listed under Long-term Liabilities). This loan will be repaid from the clinic's cash flows and guaranteed with his personal assets.

Start-up Funding

Start-up Expenses to Fund$22,732

Start-up Assets to Fund$235,000

Total Funding Required$257,732

Assets

Non-cash Assets from Start-up$225,000

Cash Requirements from Start-up$10,000

Additional Cash Raised$0

Cash Balance on Starting Date$10,000

Total Assets$235,000

Liabilities and Capital

Liabilities

Current Borrowing$0

Long-term Liabilities$225,000

Accounts Payable (Outstanding Bills)$0

Other Current Liabilities (interest-free)$0

Total Liabilities$225,000

Capital

Planned Investment

Grant from Marshall Medical$32,732

Other Investment$0

Additional Investment Requirement$0

Total Planned Investment$32,732

Loss at Start-up (Start-up Expenses)($22,732)

Total Capital$10,000

Total Capital and Liabilities$235,000

Total Funding $257,732

Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.Create your own business plan Break-even AnalysisThe Break-even Analysis shows that in the first year (with no physician salary), we need bring in $11,605 in revenue per month to break even. We will pass this mark by the sixth month.However, in the second and third year, with increased expenses including the physician's salary, and increased patient load, we will need to bring in roughly $21,400 per month to break even. We do not anticipate reaching this level of patient care payment until the middle of the fourth year, which will end with a modest profit.

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Break-even Analysis

Monthly Revenue Break-even$11,013

Assumptions:

Average Percent Variable Cost0%

Estimated Monthly Fixed Cost$11,013

Projected Profit and LossThe profit and loss statement shows our increasing ability to cover the expenses of the business over the first year. Although we will operate at a loss for much of this year, our cash balance will be maintained by subsidies from General Medical.In the second year, Park Square Family Medicine will assume the full expense of the physician/owner's salary, as well as related payroll taxes. This increase, combined with small increases in operating expenses due to increased patient load, will keep us operating at a loss in the second and third year, but we expect to begin turning a small profit in the middle of the fourth year. Again, these losses will not cause us to go into a negative cash position at any point.Without the physician/owner's compensation, we would show a profit of $85,000 in the second year, and $114,000 in the third year. Should patient load not meet expectations in these years, the owner will reduce his own salary to keep the business on track.

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Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan

Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan

Pro Forma Profit and Loss

Year 1Year 2Year 3Year 4Year 5

Sales$148,000 $220,000 $250,000 $270,000 $290,000

Direct Cost of Sales$0 $0 $0 $0 $0

Other Costs of Sales$0 $0 $0 $0 $0

Total Cost of Sales$0 $0 $0 $0 $0

Gross Margin$148,000 $220,000 $250,000 $270,000 $290,000

Gross Margin %100.00% 100.00% 100.00% 100.00% 100.00%

Expenses

Payroll$47,400 $159,400 $161,400 $163,800 $165,800

Marketing/Promotion$36,000 $10,000 $10,000 $10,000 $10,000

Depreciation$0 $0 $0 $0 $0

Payroll Taxes$0 $0 $0 $0 $0

Medical Supplies$6,750 $8,000 $9,000 $9,500 $10,000

Office Supplies$4,500 $5,000 $5,500 $6,000 $6,200

Printing$2,000 $2,000 $2,000 $2,000 $2,000

Other Professional Services$1,000 $1,000 $1,000 $1,000 $1,000

Answering Service$3,000 $3,000 $3,000 $3,000 $3,000

Telephone$2,000 $1,500 $1,500 $1,500 $1,500

Medical Waste$2,000 $2,100 $2,200 $2,300 $2,400

Repairs and Maintenance$1,500 $1,500 $1,500 $1,500 $1,500

Janitorial Service$1,500 $1,500 $1,500 $1,500 $1,500

Dues Books and Subscriptions$1,000 $1,000 $1,000 $1,000 $1,000

Medical Billing$20,000 $20,000 $20,000 $20,000 $20,000

Commercial Insurance$3,500 $3,500 $3,500 $3,500 $3,500

Total Operating Expenses$132,150 $219,500 $223,100 $226,600 $229,400

Profit Before Interest and Taxes$15,850 $500 $26,900 $43,400 $60,600

EBITDA$15,850 $500 $26,900 $43,400 $60,600

Interest Expense$20,875 $18,000 $15,000 $13,500 $13,500

Taxes Incurred$0 $0 $0 $0 $0

Net Profit($5,025)($17,500)$11,900 $29,900 $47,100

Net Profit/Sales-3.40% -7.95% 4.76% 11.07% 16.24%

Projected Cash FlowThis table shows the ongoing financial relationship between General Medical and Park Square Family Medicine. Park Square Family Medicine will receive $24,000 dollars a month to subsidize business expenses over the first 12 months. This plan does not show physician's compensation for the first year, which will be paid directly from General Medical to Dr. Detroit.

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Pro Forma Cash Flow

Year 1Year 2Year 3Year 4Year 5

Cash Received

Cash from Operations

Cash Sales$14,800 $22,000 $25,000 $27,000 $29,000

Cash from Receivables$71,730 $168,096 $212,540 $234,693 $252,693

Subtotal Cash from Operations$86,530 $190,096 $237,540 $261,693 $281,693

Additional Cash Received

Sales Tax, VAT, HST/GST Received$0 $0 $0 $0 $0

New Current Borrowing$0 $0 $0 $0 $0

New Other Liabilities (interest-free)$0 $0 $0 $0 $0

New Long-term Liabilities$0 $0 $0 $0 $0

Sales of Other Current Assets$0 $0 $0 $0 $0

Sales of Long-term Assets$0 $0 $0 $0 $0

New Investment Received$288,000 $0 $0 $0 $0

Subtotal Cash Received$374,530 $190,096 $237,540 $261,693 $281,693

ExpendituresYear 1Year 2Year 3Year 4Year 5

Expenditures from Operations

Cash Spending$47,400 $159,400 $161,400 $163,800 $165,800

Bill Payments$96,925 $80,381 $76,815 $76,333 $77,034

Subtotal Spent on Operations$144,325 $239,781 $238,215 $240,133 $242,834

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out$0 $0 $0 $0 $0

Principal Repayment of Current Borrowing$0 $0 $0 $0 $0

Other Liabilities Principal Repayment$0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment$30,000 $30,000 $30,000 $0 $0

Purchase Other Current Assets$0 $0 $0 $0 $0

Purchase Long-term Assets$0 $0 $0 $0 $0

Dividends$0 $0 $0 $0 $0

Subtotal Cash Spent$174,325 $269,781 $268,215 $240,133 $242,834

Net Cash Flow$200,205 ($79,685)($30,675)$21,560 $38,859

Cash Balance$210,205 $130,520 $99,845 $121,405 $160,264

Projected Balance SheetThe Balance Sheet shows our liabilities and assets, including the cumulative Cash Balance from the previous table. The Paid-in Capital of $320,732 represents subsidies from General Medical Center during the Start-up period and the first year of operations. This is a grant, and does not have to be repaid unless the clinic fails - defined in the grant agreement as failure to achieve patient load goals for five months in a row. The change in Cash Balance in the second and third years reflects the end of the first year subsidies from General Medical, and Park Square Family Medicine's payment of the physician's compensation. This decrease in assets is balanced by the repayment of our building loan. We expect Net Worth to begin rising again in years four and five.

Pro Forma Balance Sheet

Year 1Year 2Year 3Year 4Year 5

Assets

Current Assets

Cash$210,205 $130,520 $99,845 $121,405 $160,264

Accounts Receivable$61,470 $91,374 $103,834 $112,141 $120,448

Other Current Assets$0 $0 $0 $0 $0

Total Current Assets$271,675 $221,894 $203,679 $233,546 $280,712

Long-term Assets

Long-term Assets$225,000 $225,000 $225,000 $225,000 $225,000

Accumulated Depreciation$0 $0 $0 $0 $0

Total Long-term Assets$225,000 $225,000 $225,000 $225,000 $225,000

Total Assets$496,675 $446,894 $428,679 $458,546 $505,712

Liabilities and CapitalYear 1Year 2Year 3Year 4Year 5

Current Liabilities

Accounts Payable$8,700 $6,419 $6,304 $6,271 $6,337

Current Borrowing$0 $0 $0 $0 $0

Other Current Liabilities$0 $0 $0 $0 $0

Subtotal Current Liabilities$8,700 $6,419 $6,304 $6,271 $6,337

Long-term Liabilities$195,000 $165,000 $135,000 $135,000 $135,000

Total Liabilities$203,700 $171,419 $141,304 $141,271 $141,337

Paid-in Capital$320,732 $320,732 $320,732 $320,732 $320,732

Retained Earnings($22,732)($27,757)($45,257)($33,357)($3,457)

Earnings($5,025)($17,500)$11,900 $29,900 $47,100

Total Capital$292,975 $275,475 $287,375 $317,275 $364,375

Total Liabilities and Capital$496,675 $446,894 $428,679 $458,546 $505,712

Net Worth$292,975 $275,475 $287,375 $317,275 $364,375

Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.Create your own business plan Business RatiosBusiness ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 8011, Offices and Clinics of Medical Doctors, are shown for comparison.

Ratio Analysis

Year 1Year 2Year 3Year 4Year 5Industry Profile

Sales Growthn.a.48.65% 13.64% 8.00% 7.41% 5.64%

Percent of Total Assets

Accounts Receivable12.38% 20.45% 24.22% 24.46% 23.82% 13.11%

Other Current Assets0.00% 0.00% 0.00% 0.00% 0.00% 54.55%

Total Current Assets54.70% 49.65% 47.51% 50.93% 55.51% 68.11%

Long-term Assets45.30% 50.35% 52.49% 49.07% 44.49% 31.89%

Total Assets100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities1.75% 1.44% 1.47% 1.37% 1.25% 21.29%

Long-term Liabilities39.26% 36.92% 31.49% 29.44% 26.70% 21.02%

Total Liabilities41.01% 38.36% 32.96% 30.81% 27.95% 42.31%

Net Worth58.99% 61.64% 67.04% 69.19% 72.05% 57.69%

Percent of Sales

Sales100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Gross Margin100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Selling, General & Administrative Expenses103.40% 107.95% 95.24% 88.93% 83.76% 52.19%

Advertising Expenses0.00% 0.00% 0.00% 0.00% 0.00% 0.31%

Profit Before Interest and Taxes10.71% 0.23% 10.76% 16.07% 20.90% 3.12%

Main Ratios

Current31.23 34.57 32.31 37.24 44.30 1.72

Quick31.23 34.57 32.31 37.24 44.30 1.36

Total Debt to Total Assets41.01% 38.36% 32.96% 30.81% 27.95% 49.35%

Pre-tax Return on Net Worth-1.72% -6.35% 4.14% 9.42% 12.93% 18.06%

Pre-tax Return on Assets-1.01% -3.92% 2.78% 6.52% 9.31% 35.67%

Additional RatiosYear 1Year 2Year 3Year 4Year 5

Net Profit Margin-3.40% -7.95% 4.76% 11.07% 16.24% n.a

Return on Equity-1.72% -6.35% 4.14% 9.42% 12.93% n.a

Activity Ratios

Accounts Receivable Turnover2.17 2.17 2.17 2.17 2.17 n.a

Collection Days76 141 158 162 163 n.a

Accounts Payable Turnover12.14 12.17 12.17 12.17 12.17 n.a

Payment Days27 35 30 30 30 n.a

Total Asset Turnover0.30 0.49 0.58 0.59 0.57 n.a

Debt Ratios

Debt to Net Worth0.70 0.62 0.49 0.45 0.39 n.a

Current Liab. to Liab.0.04 0.04 0.04 0.04 0.04 n.a

Liquidity Ratios

Net Working Capital$262,975 $215,475 $197,375 $227,275 $274,375 n.a

Interest Coverage0.76 0.03 1.79 3.21 4.49 n.a

Additional Ratios

Assets to Sales3.36 2.03 1.71 1.70 1.74 n.a

Current Debt/Total Assets2% 1% 1% 1% 1% n.a

Acid Test 24.16 20.33 15.84 19.36 25.29 n.a

Sales/Net Worth0.51 0.80 0.87 0.85 0.80 n.a

Dividend Payout0.00 0.00 0.00 0.00 0.00 n.a

Appendix

Personnel Plan

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Physician salary0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Receptionist0%$1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

Medical Assistant0%$1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800 $1,800

Health Insurance0%$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Dental Insurance0%$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Vision Insurance0%$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Workman's Comp0%$150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150

Total People3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll$3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950

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Pro Forma Profit and Loss

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Sales$0 $0 $4,000 $6,000 $9,000 $12,000 $14,000 $16,000 $18,000 $21,000 $24,000 $24,000

Direct Cost of Sales$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Costs of Sales$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Gross Margin$0 $0 $4,000 $6,000 $9,000 $12,000 $14,000 $16,000 $18,000 $21,000 $24,000 $24,000

Gross Margin %0.00% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses

Payroll$3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950

Marketing/Promotion$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Depreciation$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Payroll Taxes15%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Medical Supplies$0 $0 $0 $750 $750 $750 $750 $750 $750 $750 $750 $750

Office Supplies$0 $0 $0 $500 $500 $500 $500 $500 $500 $500 $500 $500

Printing$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Other Professional Services$83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83

Answering Service$250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Telephone$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Medical Waste$167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167

Repairs and Maintenance$125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

Janitorial Service$125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125

Dues Books and Subscriptions$83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83

Medical Billing15% $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667

Commercial Insurance$292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292 $292

Total Operating Expenses$10,075 $10,075 $10,075 $11,325 $11,325 $11,325 $11,325 $11,325 $11,325 $11,325 $11,325 $11,325

Profit Before Interest and Taxes($10,075)($10,075)($6,075)($5,325)($2,325)$675 $2,675 $4,675 $6,675 $9,675 $12,675 $12,675

EBITDA($10,075)($10,075)($6,075)($5,325)($2,325)$675 $2,675 $4,675 $6,675 $9,675 $12,675 $12,675

Interest Expense$1,854 $1,833 $1,813 $1,792 $1,771 $1,750 $1,729 $1,708 $1,688 $1,667 $1,646 $1,625

Taxes Incurred$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit($11,929)($11,908)($7,888)($7,117)($4,096)($1,075)$946 $2,967 $4,987 $8,008 $11,029 $11,050

Net Profit/Sales0.00% 0.00% -197.19% -118.61% -45.51% -8.96% 6.76% 18.54% 27.71% 38.13% 45.95% 46.04%

Pro Forma Cash Flow

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Cash Received

Cash from Operations

Cash Sales$0 $0 $400 $600 $900 $1,200 $1,400 $1,600 $1,800 $2,100 $2,400 $2,400

Cash from Receivables$0 $0 $0 $0 $120 $3,660 $5,490 $8,190 $10,860 $12,660 $14,460 $16,290

Subtotal Cash from Operations$0 $0 $400 $600 $1,020 $4,860 $6,890 $9,790 $12,660 $14,760 $16,860 $18,690

Additional Cash Received

Sales Tax, VAT, HST/GST Received0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Other Current Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Sales of Long-term Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Investment Received$24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000

Subtotal Cash Received$24,000 $24,000 $24,400 $24,600 $25,020 $28,860 $30,890 $33,790 $36,660 $38,760 $40,860 $42,690

ExpendituresMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Expenditures from Operations

Cash Spending$3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950 $3,950

Bill Payments$266 $7,978 $7,958 $7,978 $9,166 $9,145 $9,124 $9,103 $9,083 $9,062 $9,041 $9,020

Subtotal Spent on Operations$4,216 $11,928 $11,908 $11,928 $13,116 $13,095 $13,074 $13,053 $13,033 $13,012 $12,991 $12,970

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Repayment of Current Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Liabilities Principal Repayment$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-term Liabilities Principal Repayment$2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500

Purchase Other Current Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase Long-term Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Dividends$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Cash Spent$6,716 $14,428 $14,408 $14,428 $15,616 $15,595 $15,574 $15,553 $15,533 $15,512 $15,491 $15,470

Net Cash Flow$17,284 $9,572 $9,992 $10,172 $9,404 $13,265 $15,316 $18,237 $21,127 $23,248 $25,369 $27,220

Cash Balance$27,284 $36,856 $46,848 $57,019 $66,423 $79,688 $95,004 $113,241 $134,368 $157,616 $182,985 $210,205

Pro Forma Balance Sheet

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

AssetsStarting Balances

Current Assets

Cash$10,000 $27,284 $36,856 $46,848 $57,019 $66,423 $79,688 $95,004 $113,241 $134,368 $157,616 $182,985 $210,205

Accounts Receivable$0 $0 $0 $3,600 $9,000 $16,980 $24,120 $31,230 $37,440 $42,780 $49,020 $56,160 $61,470

Other Current Assets$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets$10,000 $27,284 $36,856 $50,448 $66,019 $83,403 $103,808 $126,234 $150,681 $177,148 $206,636 $239,145 $271,675

Long-term Assets

Long-term Assets$225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000

Accumulated Depreciation$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-term Assets$225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000

Total Assets$235,000 $252,284 $261,856 $275,448 $291,019 $308,403 $328,808 $351,234 $375,681 $402,148 $431,636 $464,145 $496,675

Liabilities and CapitalMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Current Liabilities

Accounts Payable$0 $7,713 $7,693 $7,673 $8,861 $8,841 $8,821 $8,801 $8,781 $8,760 $8,740 $8,720 $8,700

Current Borrowing$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Current Liabilities$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Current Liabilities$0 $7,713 $7,693 $7,673 $8,861 $8,841 $8,821 $8,801 $8,781 $8,760 $8,740 $8,720 $8,700

Long-term Liabilities$225,000 $222,500 $220,000 $217,500 $215,000 $212,500 $210,000 $207,500 $205,000 $202,500 $200,000 $197,500 $195,000

Total Liabilities$225,000 $230,213 $227,693 $225,173 $223,861 $221,341 $218,821 $216,301 $213,781 $211,260 $208,740 $206,220 $203,700

Paid-in Capital$32,732 $56,732 $80,732 $104,732 $128,732 $152,732 $176,732 $200,732 $224,732 $248,732 $272,732 $296,732 $320,732

Retained Earnings($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)($22,732)

Earnings$0 ($11,929)($23,838)($31,725)($38,842)($42,938)($44,013)($43,067)($40,100)($35,113)($27,104)($16,075)($5,025)

Total Capital$10,000 $22,071 $34,162 $50,275 $67,158 $87,062 $109,987 $134,933 $161,900 $190,887 $222,896 $257,925 $292,975

Total Liabilities and Capital$235,000 $252,284 $261,856 $275,448 $291,019 $308,403 $328,808 $351,234 $375,681 $402,148 $431,636 $464,145 $496,675

Net Worth$10,000 $22,071 $34,162 $50,275 $67,158 $87,062 $109,987 $134,933 $161,900 $190,887 $222,896 $257,925 $292,975

General Assumptions

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Plan Month123456789101112

Current Interest Rate10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other0 0 0 0 0 0 0 0 0 0 0 0

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Sales Forecast

Month 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Sales

Patient Care0%$0 $0 $4,000 $6,000 $9,000 $12,000 $14,000 $16,000 $18,000 $21,000 $24,000 $24,000

Other0%$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Sales$0 $0 $4,000 $6,000 $9,000 $12,000 $14,000 $16,000 $18,000 $21,000 $24,000 $24,000

Direct Cost of SalesMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12

Not applicable - see expenses$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Subtotal Direct Cost of Sales$0 $0 $0 $0 $0 $0