Mission Vision Values

Our Noble Sales Purpose

We help our customers save time and lives.

Our Mission

To effectively serve all of the specialized and diverse needs of the medical
community, while conducting ourselves with honesty and integrity. We
dedicate ourselves to our customers, our suppliers and to one another, with
one common goal in mind: To effectively distribute products and services to
the healthcare community.

Our Vision

Our vision is to be the premier regional distributor to the healthcare industry in
the market segments we serve. We will achieve this goal through an ongoing
commitment to innovation, quality and service. A balance of leadership and
teamwork will serve as our foundation.

Our Commitment

 To provide seasoned account representatives and ongoing support.
 To offer quality products, service and training.
 To build partnerships of value for the present and future.
 To possess a broad working knowledge of all facets of this industry.
 To encourage high standards and loyalty in all relationships.
 To exceed your expectations.

Our Team

Each member of the MMS team is focused on providing our customers with
exceptional service. The MMS culture of accountability results in constant,
measurable performance improvement which is communicated to and shared
with our customers.

Our experienced and professional team of over 470 employees includes 90
professional account managers, 40 customer service and support
representatives and over 150 warehousing and distribution associates.

Our Markets

Our corporate headquarters is located in St. Louis, Missouri. MMS has a
regional office in New Rochelle, New York and eleven distribution centers in
Arizona, Connecticut, Georgia, Guam, Illinois, Kansas, Louisiana, Missouri,
New Jersey, North Carolina and Texas.

MMS is one of the few healthcare distributors with market segment
professionals serving multiple healthcare provider channels. MMS works with
all healthcare providers and provides supplies and supply chain efficiencies to
doctors offices, hospitals, nursing homes, rehabilitation centers, specialty care
centers, hospices as well as to both homecare dealers and directly to patients
at home. Each of the healthcare markets we supply is backed by an
experienced team who knows both the needs and requirements of that
particular segment.

Our government division serves all CONUS and International Federally
Funded Facilities.

In addition, MMS leverages our logistics expertise to provide redistribution
services. Our goal is to manage the cost of healthcare by reducing the overall
supply chain costs for multiple manufactures and distributors.

Our Difference

MMS differentiates ourselves from our competitors with the quality of our team
and our proven ability to define and implement customized supply chain
solutions: we fit our solutions to our customers, not our customers to our
solutions.

Our Products

MMSs long term relationships with the leading suppliers of medical supplies
and equipment allows us to offer a broad range of high quality products
allowing our customers to access exactly what they need. MMS stocks more
than 40,000 SKUs from more than 1,200 manufacturers and our experienced
sales support team will assist in locating even hard to find items.

Mission

Cape Medical Supply improves the lives of those we serve through the
compassionate, responsive delivery of healthcare solutions.

Vision

The Vision of Cape Medical Supply is to be the first choice for home medical
equipment and respiratory care in the communities we serve. We deliver on our vision
by striving for excellence every day, and constantly seeking to improve the services
we offer.

Values

Compassion and Gratitude: Caring for the needs of others powers our journey. In
turn, we value what service teaches us about ourselves and about how we relate to
others.

Honesty and Integrity: Character is the essence of who we’ve become and is the
driving force in who we are, both individually and collectively.

Hard Work: Serving the needs of others is our reason for being. Our customers ask a
lot of us, so we ask even more of ourselves.

Cooperation and Collaboration: We are a community and we serve a community.
Nothing we do stands alone; everything depends on cooperation and collaboration.

Respect and Trust: All our interactions demonstrate the respect we have for others.
Mutual respect and trust are at the core of all our relationships as well as the
foundation of our reputation.

Work Ethics and Personal Responsibility: Every staff member is responsible for
playing a vital role in the success of our company and the positive experience of our
patients. There is harmony between our responsibility to ourselves, our jobs, our
customers, and our co-workers.

Products
Bioring SA addresses the surgical repair techniques which are implemented in open
heart surgery. This business is based on a patented product owned by the company,
which is the Kalangos Biodegradable Ring cardiac implant.

The Bioring biodegradable valvular heart ring (Kalangos mitral or tricuspid ring) has
been developed and designed to diminish or reinforce the valvular orifices of the

heart. The ring allows a normal growth of the valve in newborn and babies, avoiding
stenosis and multiple surgical procedures.

The ring is dimensioned to the size and natural geometry of the valve, and it is
manufactured with a specially designed biodegradable polymer called polydioxanone.
Once implanted, through the regular absorption of the ring inside the endomyocardiac
tissue by simple hydrolysis, the body creates (by reaction) a scar along the ring,
characterized by fibrotic tissue presenting an improved resistance to elongation. Once
the ring has been completely biodegraded, the rigidity of the fibrotic tissue of the scar
is maintaining the valvular orifice at the desired dimension.

As the residual scar is made of the proper biologic tissues of the patient, there is no
predisposition to infection, and furthermore, the scar is able to grow normally during
the growth process of the newborn.

The Kalangos mitral ring is available in 11 dimensions, covering all phases of
development and all adult sizes. The Kalangos tricuspid ring is also available in 11
dimensions. Sizers have been designed to help the surgeon surgeon to choose the right
ring dimension.

3.1 Product Description

As of June 2001, Bioring SA has 44 products to sell:

 Kalangos Mitral Biodegradable Ring: sizes 16, 18, 20, 22, 24, 26, 28, 30, 32,
34, 36.
 Kalangos Mitral Sizers: model size 16, 18, 20, 22, 24, 26, 28, 30, 32, 24, 36.
 Kalangos Tricuspid Biodegradable Ring: sizes 16, 18, 20, 22, 24, 26, 28, 30,
32, 34, 36.
 Kalangos Tricuspid Sizers: model size 16, 18, 20, 22, 24, 26, 28, 30, 32, 34, 36.

3.2 Competitive Comparison

There are already existing heart rings on the market: Duran, Carpentier, Puig-Masada,
Cosgrove, but none of them produce a biodegradable ring. The major benefits of
Kalangos rings when compared to existing products available on the market are:

 Avoiding multiple surgical procedures (newborn and babies).
 Lowering the risk of local infection.

And moreover, the ring is attached to a suture-needle system which makes the surgical
procedure easier and faster.

develop. Copies are available. A Swiss patent application has been filed in 1997. they conceived a new concept which opens new perspectives in the field of cardiovascular surgery. 3.3. followed by a worldwide PCT application filed in 2000. The long term strategy at five years is to penetrate 35% of the . As a result of this situation.3 Sales Literature Bioring advertisements and sales literature are under development. The list of suppliers is considered as proprietary information. An injection molding press has been specially designed and installed to inject the polymer into the proprietary molds. Together. All operations. manufacture and commercialize the new cardiac implant. This is due to the used material. Moreover the present existing rings are subject to very restrictive applications in neonate surgery in USA. The company intends to have its own presenting page on the Web once the products have been CE marked. which delivers to Bioring SA a customized polymer. The raw materials are provided by a major chemical supplier. 3. This concept was tested as a prototype. using its in-house development process. 3. A trademark application is in progress. which is not disclosed here. including the packaging of the final product. Bioring is registered on the Web page of the Chambre Vaudoise du Commerce et de l'Industrie.6 Future Products The Kalangos biodegradable rings have ben developed following a market need and demand in pediatric surgery.4 Sourcing Bioring SA manufactures its own products. a collaboration between a Swiss cardiac surgeon and a Swiss biomedical engineer led to the creation of Bioring SA. are done in a controlled environment: class 100 clean room.5 Technology Bioring Kalangos biodegradable rings have been internationally protected by patent. and the achieved results motivated the partners to create the company in order to patent.

This financial advantage is largely a result of the deferred salaries of the principals. since the business will be self-sustaining by the end of year one. we may pay it off sooner. Finkelstein. Rent. By the end of the third year. and payroll for our part-time office manager are the largest operating expenses.newborn market (40. We are presently in the process of writing the extension of the initial patent and testing the very first prototypes of new implants. based on market research and the industry knowledge of the the founders. We will repay the initial loan within three years. inventory.000) and 10% of the adult market (200. We do not expect future rounds of investment or loans.  An SBA Micro-Loan.000 biodegradable rings implanted per year.000). and Acropolis. With a qualified medical biller. as we hire our contracted sales representatives and secure increasing market share. Even with our conservative estimates. If sales go better than projected. No information can be given at this stage. Start-up Funding As mentioned previously. at 10% interest. For the first year. who will take salaries starting in the second year based on the success of the business (projections below). we plan to personally invest to cover portion of the initial start-up costs for the business. . Financial Plan Our Start-up requirements for cash. along with our shipping methods. this means around 35. our requirements will be met as follows:  Private funding from Aktum. All together. expenses and assets will see us through the first year. travel for the founders. we should collect quickly on reimbursements.we have low overhead. we will far surpass the break-even point from the first month of sales. Zenergy will have a respectable net worth. means that our variable costs always exceed our fixed costs . and maintain a positive cash balance throughout. The development of the biodegradable polymer may meet other very promising applications in the fields of cardiac and vascular surgery. and are investing in low-risk face-to-face sales time to generate profits. Our commission structure for contracted sales representatives.

580 Assets Non-cash Assets from Start-up $2.275 Total Funding Required $15.  Cash generated from ongoing operations beginning in months three through six.000 Capital Planned Investment Owner $10.275 Liabilities and Capital Liabilities Current Borrowing $5.305) Total Capital $7. Start-up Funding Start-up Expenses to Fund $3.500 Additional Cash Raised $0 Cash Balance on Starting Date $9.000 Long-term Liabilities $0 Accounts Payable (Outstanding Bills) $0 Other Current Liabilities (interest-free) $0 Total Liabilities $5.305 Start-up Assets to Fund $12.275 Total Capital and Liabilities $12. We will seek credit terms of 60 days from our suppliers until we build up sufficient cash flow to be able to accept net 30 terms.580 Investor $0 Additional Investment Requirement $0 Total Planned Investment $10.275 .500 Total Assets $12.580 Loss at Start-up (Start-up Expenses) ($3.775 Cash Requirements from Start-up $9.

and token inventory at no cost or a nominal cost.00% 10.00% 10. We will successfully recruit field clinical sales reps per our schedule to reach seven reps by December 2005 with the first reps coming on line to begin selling in May. 4.00% 30.00% Other 0 0 0 Break-even Analysis The following table and chart show our break-even point in the first year. when the three VPs are deferring compensation. General Assumptions Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10. marketing materials.Total Funding $15. We will successfully secure supplier agreements with X Industries and Y Corporation with favorable credit terms (60 days) at the outset. We will be able to routinely receive reimbursement from the DMERCs in 30-45 days.00% Tax Rate 30. Create your own business plan Important Assumptions We are assuming the following key points: 1.00% 30. 5.580 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. 2. and with availability of product samples. 3.00% 10. We will be able to successfully leverage our corporate account relationships to drive business for the field sales force. We will submit our application to CMS by March 7 and receive a Medicare provider number in 60 days. With a low monthly fixed cost and variable .00% Long-term Interest Rate 10.00% 10.

Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. we need to sell per month the amount calculated below to break even. Create your own business plan Break-even Analysis Monthly Revenue Break-even $3. Market research and previous experience assures us that we will easily surpass the break-even point even in our first month of sales.costs (including commission and shipping).312 Assumptions: Average Percent Variable Cost 25% Estimated Monthly Fixed Cost $2.497 Projected Profit and Loss Notes on Profit and Loss statement for year one: .

 Travel . and any other sales collateral that must be developed.all reps will be contract employees paid straight commission. files.  Telecommunications of $200 per month assumes primary phone line with call forwarding and answering machine capabilities. etc. no expenses or benefits. creation and printing of custom "program overview" flyers for corporate accounts to distribute to member facilities.000 purchase up-front during start-up phase. miscellaneous supplies.unanticipated expenses.  General Liability insurance assumes $30 per month to cover the place of business. but will take salaries in the second and third years dependent upon first year performance and profits.left unbudgeted at this time. with a number listed under our business name in directory assistance.  Rent assumes $450 per month lease.  Equipment assumes $1.  Accounting assumes $20 per hour and seven hours per month to close the books. DSL internet line.  Non-inventory Costs of Goods Sold are tracked at the top of the table. These are variable costs. with minimal additional work on a monthly basis.  Note: 10% of profits will be allocated to repay initial cash investments by Acropolis.  Low payroll expense in the first year. etc. The only personnel in year one is our part-time office manager. phone card for long-distance calling.  Other . mailers to go to facilities in a reps major MSA.  Legal expenses include drafting of initial start-up documents and contracts.  Stationery and office supplies includes business cards and stationery. tied-in to a receptionist. such as commission and shipping. The managers will not take a salary in the first year. Notes on Years two and three growth assumptions: .  Marketing and promotion expenses will include website management. 10% of profits will be paid to Finkelstein and Acropolis to cover corporate overhead costs. and Aktum at 5% simple interest. Finkelstein. handle commissions.

000 in year three for increased recruitment.26%) and accounting (.39%) as a consistent % of sales.52%). telecommunications (. and corporate account sales calls. marketing (.  Travel grows to $15. Create your own business plan . legal (.  20% per year growth in liability insurance. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.  10% per year increase in rent associated with need for more services and facility related growth.000 in year two and $25.  Increase stationery and office supplies (.  Equipment lease expense doubles each year associated with rapid sales growth and expansion.  10% per year growth in miscellaneous expenses.65%). management.52%).

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

340 $267.919 $83.043 $66.720 $243.625 Gross Margin % 30.840 $454.039.77% 30.88% 27.206.720 $264.670.845 $3.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.960 Marketing/Promotion $3.646 Sales Commission $73.368.930 $834.50% Expenses Payroll $6.153 Depreciation $0 $0 $0 .860 $22.411 Medicare Part B Billing $16.834 $136.374 $1.316 Total Cost of Sales $316.675 $334.228 Direct Cost of Sales $112.000 $10.408.329 Uncollectible Accounts Reserve $91.810 $2.816 $1.558 $464.900 Shipping/Handling $22.035 $1.603 Gross Margin $141.169 $681.542 $170.335 $545. Create your own business plan Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $458.

354 $44.685 Taxes Incurred $33.723 Travel $5.800 $6.Rent $5. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.20% 13.534 Telecommunications $2. we believe we can start generating very positive cash flow within the first year.598 $157.292 Stationery and Office Supplies $2.688 $17.000 $25.940 $6.263 Net Profit/Sales 16.540 $449. insurance and other "fixed" items.960 $306.567 $659.489 Interest Expense $418 $9.344 $8. Create your own business plan Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash Received .489 EBITDA $111.516 $13. plus contracting and training new sales reps per our plan and achieving successful reimbursement cycles from the DMERCs.000 $15.723 General Liability Insurance $360 $432 $518 Legal Expenses $1.18% Projected Cash Flow Because of the relatively quick ramp-up process for sales people.567 $659.200 $1. This is all contingent on achieving our expense targets for rent.826 $103.653 $17.98% 6.400 $8. and our relatively low start-up expenses.200 $4.452 Total Operating Expenses $29.400 $5.920 Payroll Taxes $0 $0 $0 Other $1.400 $8.541 Net Profit $77.598 $157.861 Accounting Expenses $1.000 Office Equipment $480 $960 $1.136 Profit Before Interest and Taxes $111.374 $192.468 $380.320 $1.688 $17.

582.531 ($7.558 $1. VAT.720 $243.082 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.253 $2.960 Bill Payments $327.647.825.474 Expenditures Year 1 Year 2 Year 3 Expenditures from Operations Cash Spending $6.804 Net Cash Flow $13.144 Subtotal Spent on Operations $334. VAT.995.542 $170.333.477 $1.382.576.414 $2.299.590.044 $2.764 $2.619) $57.474 Additional Cash Received Sales Tax. HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $200.670 Cash Balance $23.796 $2.Cash from Operations Cash Sales $22.946 $1.995.919 $83.650 $1.411 Cash from Receivables $326.650 $1. Create your own business plan .104 Additional Cash Spent Sales Tax.296 $1.000 Repayment Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 Subtotal Cash Spent $335. HST/GST Paid Out $0 $0 $0 Principal Repayment of Current $1.576 $1.912.700 Borrowing Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal $0 $12.031 $15.412 $73.720 $264.000 $24.000 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 Subtotal Cash Received $349.796 $2.477 $1.063 Subtotal Cash from Operations $349.937.

876 Long-term Liabilities $0 $188.521 $178.447 $113. will be critical to the Cash balance. By the end of the first year.641 $637.061 Earnings $77.904 .028.898 $492.580 $10.036 $1.263 Total Capital $85.036 $1.876 Paid-in Capital $10.780 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Accounts Payable $63.000 $164.780 Long-term Assets Long-term Assets $0 $0 $0 Accumulated Depreciation $0 $0 $0 Total Long-term Assets $0 $0 $0 Total Assets $151.412 $73.797 $115.898 $492. Pro Forma Balance Sheet Year 1 Year 2 Year 3 Assets Current Assets Cash $23. billing correctly and promptly.395 $226.082 Accounts Receivable $108.580 Retained Earnings ($3.700 $0 Other Current Liabilities $0 $0 $0 Subtotal Current Liabilities $66.695 $79.028.723 Other Current Assets $275 $275 $275 Total Current Assets $151.540 $449. Net Worth will continue to rise dramatically as we secure a higher market share and continue to contain costs.700 Inventory $19.876 Current Borrowing $3.305) $74. and following up on unpaid reimbursement claims.797 $303.403 $145.000 Total Liabilities $66.946 $809.350 $1. The Starting Balances are the requirements from the Start-up table and the Start-up Funding.580 $10. we will increase the net worth of the business handsomely.031 $15.395 $390.897 $396.826 $103.101 $188.695 $226.Projected Balance Sheet The Balance Sheet reflects the fact that many of our Assets will be tied up in Accounts Receivable.

94% 10.70% 29. we will have extremely favorable margins.67% 78.00% 13.52% 103.16% 37.45% 22.03. SG&A. accounting.97% 61.14% 14.09% Inventory 12.00% .69% 80. Because we are a start-up.00% 38.66% 37.101 $188. 264.21% 15.Total Liabilities and Capital $151.98% Total Liabilities 43. and reimbursement/collections to outside services to keep overhead and risk to a minimum.98% 4. SIC Code 5047.28% Long-term Liabilities 0.97% 16.97% 23. especially given that we are competing in a small niche with fragmented competition.898 $492. Because we do not have a retail storefront or extensive distribution facilities. our sales growth rates will be much higher than the industry.99% 53.00% 100.00% 100.a.05% 42.74% Percent of Sales Sales 100. and our sales team will be contract reps on straight commission.06% 0.780 Net Worth $85.01% 46.26% Net Worth 56.03% 20.34% 62.904 Business Ratios Our comparison industry is Medical Equipment and Supplies.) or farming it out (legal. reimbursement/collections. As a result.03% 38.75% Percent of Total Assets Accounts Receivable 71. We have farmed out all legal.00% 100. accounting). and current/quick ratios compared to industry standards. our fixed overhead costs are extremely low.00% 0.00% 100.18% 0.036 $1.04% Total Assets 100.00% 86.55% Other Current Assets 0.96% Long-term Assets 0.00% Current Liabilities 43.00% 100.00% 0.028. None of our three managing executives are on the payroll in the first year.00% 100. building much of our expense into our variable cost structure (sales compensation. Ratio Analysis Industry Year 1 Year 2 Year 3 Profile Sales Growth n. We have constructed our operation to keep start-up capital requirements to a minimum.641 $637.32% Total Current Assets 100.00% 100.00% 100.

00 0.30 16.41% 100.a Total Asset Turnover 3.a Acid Test 0.31 n.34 n.84 Total Debt to Total Assets 43.641 $801.85% Pre-tax Return on Assets 73.74% Main Ratios Current 2.58 3.18 7.32% 15.65 9.00 4.38 0.35% 2.a Collection Days 42 58 68 n.64% 78.a Accounts Payable Turnover 6.03% Profit Before Interest and Taxes 24.a Liquidity Ratios Net Working Capital $85.66% 37.90% 21.a Debt Ratios Debt to Net Worth 0.78 1.a Inventory Turnover 11.32 n.30 n.86 5. to Liab.00 0.a Current Liab.40 3.45% 54. 1.35% 9.41% Selling.06% 62.35 0.27 4.17 12.89% 70.58 n.43% n.a Dividend Payout 0.86 Quick 1.a Payment Days 27 23 23 n.18% n.29 0.89 0.a Executive Summary .14 0.a Return on Equity 91.97% 61.87% Additional Ratios Year 1 Year 2 Year 3 Net Profit Margin 16.20% 13.53 1.19% 30.26 4.00 4.42 n. General & Administrative 13.00% 0.77% 30.02 3.17 n.98% 6.88% 27.58% 17.33% Expenses Advertising Expenses 0.00% 0.61 0.43% 19.61 n.00 0.00 n.a Additional Ratios Assets to Sales 0.Gross Margin 30.904 n.32 37.101 $376.a Sales/Net Worth 5.61% 5.39 8.16 12.00 n.a Interest Coverage 267.33 0.50% 30.79% Pre-tax Return on Net Worth 130.a Current Debt/Total Assets 44% 23% 22% n.99% 57.a Activity Ratios Accounts Receivable Turnover 4.38% 13.00% 1.29 n.98 3.

Using relationships with decision makers at major homecare chains to gain unique access to sell into their facilities. After establishing a market presence with this product niche. and an estimated 66. and our comprehensive product lines and programs that make working with us incredibly easy. and ultimately national. Creating marketing strategies and tactics to position ourselves as leaders in providing clinical product solutions to help facilities manage the complications of disease. with a potential for $17. We will differentiate ourselves by adding value through our distribution strategy and channels. more local distributors and pharmacists who are not approaching this market in a sophisticated or coordinated way. The market is currently served poorly and inconsistently by a patchwork of local pharmacies and distributors. Strategy 1. Competitive Advantage The product technology is available to all players in this market.L. which will make us the partner of choice for large. Market Potential The two major market opportunities are "at risk" residents with the disease in Homecare and Assisted Living. Gaining distribution relationships with a unique combination of top suppliers to build a comprehensive line of product solutions for managing the complications .) chains. 4.This business plan has been developed to present our company to prospective supplier partners. We are uniquely positioned to gain market share in this segment due to our corporate account relationships. Zenergy Medical Industries is a start-up company focused initially on distribution of leading brands of therapeutic systems for use by residents of Homecare and Assisted Living facilities at risk of complications from X disease. There are an estimated 345. The competition is largely smaller. Effectively building a strong national clinical sales team capable of building strong relationships with clinical decision makers at the facility level. and investors. 3.784 Homecare at risk residents. geographically diverse Homecare and Assisted Living (A.6 million in revenue. with a potential $59. employers. 2. This will allow us to provide "pre- qualified" sales opportunities to our field-based clinical sales team. our ability to build a regional (ultimately national) field clinical sales team quickly. and our ability to create compelling marketing programs. We will offer a regional. we will expand to offer other products related to further treating and managing complications of the disease.6 million revenue.671 Assisted Living at risk residents. network of clinical sales professionals. and will make us attractive to potential supplier partners.

We will utilize the therapeutic system offering as the means to gain entrance into the market and build our organization.  To maintain 90 day customer satisfaction survey results (% who would definitely repurchase and definitely recommend us) at 98% or higher. We take pride in helping to alleviate patient suffering associated with these conditions.  To grow the contracted sales team to seven field clinical sales reps by month eight and to 25 field clinical sales reps by year three. Objectives  To achieve the sales growth targets by month six and by end of year one. Aggressive gains in market share and average monthly revenues in year two. . Zenergy Medical Industries will have a very respectable net worth.  To achieve net profit in year one. increasing in year two.  To begin paying Vice Presidents a regular salary starting in year two. By the end of year three. We are seeking an additional short-term (3 year) loans. This should grow substantialy by year three. We will create an effective channel of distribution that will be indispensable to suppliers as a cost effective way for them to penetrate the post-acute market. by containing costs and meeting sales goals. Mission We provide post-acute-care facilities with product solutions to help manage complications of X disease. followed by other products related to managing complications of heart disease and aging. Financial Summary The owners will invest personal savings in the business. to supplement initial cash flows from sales for the first year. Then we will add complimentary products for managing complications of the disease. We anticipate a first year net profit. of the disease.

first in the Southeast. 5. and memorable way in the marketplace. Regulatory Issues As distributors. and with key administrators and clinicians at the facility level.Keys to Success 1. We have close relationships with key decision makers in top post acute chains. We have an organization with a unique spirit that makes people eager to join us or do business with us. then nationwide. powerful. top quality products. Zenergy Medical Industries' headquarters will be in Charleston.C. our only relevant compliance issues are to stay in compliance with CMS's supplier standards as regulated by the DMERCs and to stay in compliance with HIPAA regulations regarding patient data. Company Ownership . 4. Our source of differentiation will be in our distribution and marketing strategies.We position ourselves in a clear. Company Summary Zenergy Medical Industries will be seen by post-acute-care providers as THE source for product solutions to manage the complications of X disease. We are a start-up company that will initially distribute a full line of disease therapies and medications. We do an exceptional job of articulating the value of our products and solutions. followed by additional complimentary products that fit with our strategy. who will then build relationships at the facility level by providing value-added service and expertise to caregivers. S. 2. We will establish a unique network of clinical sales professionals. We will leverage our corporate account relationships and create marketing programs to drive demand for our products solutions at the corporate level. 3. they can't imagine working anywhere else. We offer a comprehensive line of innovative. We provided unequaled clinical support on a regional (national) level to post acute facilities. Once people join us.

phone line listed under company name in directory assistance. billing. LLC. reimbursement. etc. etc.  Rent (1 month rent and 1 month deposit @ $450 per month). Finkelstein. Start-up Summary The key elements in the start-up plan for the company are:  Create the strategic business plan.S. Zenergy Medical Industries will also seek an SBA Micro- Loan to supplement the private funding provided by the three managing executives. and Aktum. this is also intended to cover basic office supplies (pens.Cost of DSL internet connection.Zenergy Medical Industries is a division of Finkelstein and Acropolis. customer satisfaction tracking. paper. .  Define key business processes for ordering. and Aktum. start-up requirements include the following:  Legal fees to draw up employment agreements and various company legal documents. printer/copier/scanner/fax machine. record keeping.  Build relationships with key decision makers in targeted Homecare and Assisted Living chains. Capital for start-up costs will be provided out of private funds from Acropolis.  Costs of raising capital through private placement. files.  Establish a location and place of doing business. which is equally owned by Acropolis. purchase of phone.  Build a field clinical sales organization focused initially on the Southern U.  Obtain a Medicare provider number.  Office supplies and stationery to purchase business cards and stationery with the new company's information. More specifically.  Office equipment lease .  Telecommunications ..computer.)  Initial cost to obtain appropriate general liability insurance policy of $300K on our facility.  Establish a corporate identity and positioning strategy. calculators. Finkelstein.

license use of any research articles. product inventory. facility use.Working capital.  Surety bond . etc. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. commission payout system.  Accounting .  Start-up assets .For 7-8 hours to get our bookkeeping processes in place (accounts payable to suppliers. create a basic website. and use to recruit sales people. etc. secure marketing materials from manufacturers.  Other . and create our own flyers and brochures for corporate account use. lessors. desk. book shelf). office furniture (file cabinet. basic journal entry system for recording orders. collections.per National Supplier Clearinghouse Customer Service Group.  Marketing Materials . Create your own business plan Start-up Requirements Start-up Expenses Legal $500 Stationery and Office Supplies $250 Liability Insurance $60 Rent $900 Office Equipment Leases $125 Telecommunications $320 Accounting $150 Surety Bond $0 Marketing Materials $500 . accounts receivable from Medicare and patient co-pay.Unanticipated expenses.Purchase desktop brochure software and brochure quality paper. this requirement has been waived (verified with Kimberly on 2/8/05. and Bonnie on 2/9/05)..

580 Management Summary Zenergy Medical Industries is being founded by three individuals with a combined 50+ years of healthcare sales and marketing experience. Over six years of experience in post-acute corporate account sales and GPO sales.S.500 Other Current Assets $275 Long-term Assets $0 Total Assets $12.305 Start-up Assets Cash Required $9. Yanni also served as Director of Corporate Accounts at D Company. and most recently served as Executive Director for Corporate Accounts at C Company. a start-up electronic documentation software provider focused on outpatient facilities.S.275 Total Requirements $15. from XXXX in XXXX. specializing in disease care prevention and treatment in the post-acute marketplace. Yanni Acropolis. in a best practices study commissioned by Selling Power Magazine and earned their 1995 World Class Sales Award. Mitch Finkelstein: More than 20 years of clinical sales and technical service specializing in disease care prevention and treatment across the healthcare continuum. before joining C Company as Director of Corporate Accounts. RN: Over 20 years of experience in nursing and clinical sales. . Went on to serve as VP of Sales and Marketing for the B Company. Served as Area VP of Sales at A Company for the Homecare market.500 Start-up Inventory $2. Yanni received his RN from XXXX in XXXX and his B.Travel $0 Other $500 Total Start-up Expenses $3. Earned Regional Director of the year honors in XXXX and President's Council honors in XXXXX. Yanni was consistently a top performer with ISS and then A Company. which was rated a top healthcare salesforce in the U. and training systems for the post-acute marketplace. managing 70+ clinical sales people across six regions in the eastern U.S. a leader in documentation. charting.

MBA: Over 15 years of experience in the healthcare marketplace in sales.000 Office Manager $6. Starting May 1 we will add one sales rep per month starting on the first of each month in May. June. with no expenses reimbursed or benefits. During his 11 years at A Company. their commissions are listed with other non-inventory costs of sales in the Profit and Loss. and December. tables and equipment management systems before taking the role as Senior VP of Sales and Marketing at C Company. Beginning in September of 2005. and business unit leadership across all segments of the healthcare continuum. marketing.000 $80.000 VP of Corporate Account Sales $0 $75. and then 25 by mid-year 2007.960 . They will not take a salary until the second year.960 Total People 4 4 4 Total Payroll $6. product development. August. a leader in exam lights. in Business from XXXXX and an MBA in Marketing from XXXXX.Ekim Aktum. he lead a start up capital equipment business unit in the Homecare market for five years.720 $264. September. we will hire a part-time office manager from a temp agency at $12 per hour for 20 hours per week. because they will be under a profit sharing agreement.720 $24. October.000 $80. Personnel Plan The three founding management team members will be our sole employees during the start-up phase until we go live at the beginning of May.720 $18.000 VP of Field Clinical Sales $0 $75. We will continue contracting more representatives in 2006 to reach 15 salespeople by mid- year.000 $80. Served as VP of Sales and Marketing at E Company. November. Our sales team will be recruited from our network of contacts within the arena of post-acute-care clinical salespeople.720 $243. Personnel Plan Year 1 Year 2 Year 3 VP of Marketing and General Manager $0 $75.S. Ekim has a B. As contracted labor. This will move to 30 hours per week in year two and 40 hours per week in year three. Our sales team members will be contract employees paid straight commission.

000 overall for the two years following surgery. 6. 4. 60-70% of these patients suffer from related symptoms. Average utilization rate is 85.768 patients.000 surgeries occur per year.500 per year and up to $27. 3. another 20% by private sources (family. an estimated 50% of these are considered preventable. which places them at higher risk for complications (ulcers. etc. the market size is estimated as follows: . or Medicaid. 7. Disease prevalence is estimated at 18% in the general population of people over the age of 60. In the overall population it is generally estimated that diagnosed cases of the disease represent only about 70% of the true total number of these patients in the country. the remaining 68% are covered under Medicaid. managed care).Market Analysis Summary Our primary customers are elderly residents living in homecare or post-acute care facilities and at risk for complications from X disease.).440. A profile of the homecare market today: 1.068 patients. Private Pay. There are 16. so these are probably conservative numbers. private insurance. 86.683. and they fit in one of three broad payor classifications for the costs of their stay: Medicare.6%. which translates to an average of 1. Based on these statistics. One Medicare survey estimated the prevalence within homecare at 24%. 5. 15-25% of these patients will suffer from complications during their lifetime. The cost of managing these complications has been estimated at anywhere from $2000- $13. These residents can be divided into two major markets: homecare residents. and assisted living residents.121 facilities with 1. other problems. About 12% of residents are covered by Medicare. 2. personal assets.

500 per year and up to $27. the market size is estimated as follows: . the remaining 9% are covered under Medicaid. 60-70% of these patients suffer from related symptoms.04 $59.345.886 facilities with 987. 86. The cost of managing these complications has been estimated at anywhere from $2000- $13. managed care).768 X Homecare disease prevalence rate 24% # of these patients in payor category 345. private insurance. so these are probably conservative numbers. 7. In the overall population it is generally estimated that diagnosed cases of disease represent only about 70% of the true total number of these patients in the country. One Assisted Living survey estimated the prevalence within Assisted Living facilities at 13%. Based on these statistics.000 beds. an estimated 50% of these are considered preventable. There are 32. 5.784 X % with related symptoms 65% # of at risk these patients in 224. Disease prevalence is estimated at 18% in the general population of people over the age of 60.000 surgeries occur per year. 3. personal assets. 4. Average occupancy rate is 80%.Homecare "At Risk" Segment - total # of Homecare residents 1. 2. About 91% of residents are covered private sources (family. which translates to an average of 789. Homecare Revenue potential 524 A profile of the Assisted Living market today: 1.760 Homecare market X reimbursement per year $264.440.000 residents. 15-25% of these patients will suffer from complications during their lifetime. which places them at higher risk for complications. 6.000 overall for the two years following surgery.

671 market X reimbursement per year $264. 2. we can leverage our relationships at the corporate office level to more efficiently gain access to the member facilities.04 $17. and above average growth in segments of the population considered most at risk (African American and Hispanic). an aging population. During that same period.603. a total increase of 53%.top 50 chains - .AL "At Risk" Segment - total # of AL residents 789.2 million by 2020. Market Segmentation Our three highest priority target markets will be: 1.7 million in 2000 to 53. a total increase of 130%.67 AL Revenue potential 8 Elderly and diseased growth projections: Between 2002 and 2020 it is projected that the overall population with the disease will grow 44% driven by increased heart disease.570 X % with related symptoms 65% # of at risk these patients in AL 66. which is projected by the Census Bureau to grow from 34. "At risk" residents in AL chains. All of these dynamics will drive demand for products to manage complications of disease. "At risk" residents in Homecare chains. Homecare . the total number of elderly patients with the disease is projected to grow from 4.6 million.6 million to 10.000 X AL disease prevalence rate 13% # of these patients in payor category 102. With Homecare and AL chains. The Homecare and AL markets will continue to grow due to continued growth in the elderly population (65+).

171 chains X reimbursement per year $264.total # of Homecare residents 375.446.700 X disease prevalence rate 13% # of these patients in AL top 30 chains 21.000 chains X % with related symptoms 65% # of at risk patients in Homecare 58. Homecare Revenue potential 340 Assisted Living .741.000 X disease prevalence rate 24% # of these patients in Homecare top 50 90.top 30 chains - total # of AL residents 167.61 Assisted Living Revenue potential 8 .801 X % with related symptoms 65% # of at risk patients in AL top 30 14.500 top 50 chains X reimbursement per year $264.04 $3.04 $15.

996 77.L. and Florida in year one.431 298.513 321. that fit within our two top priority segments. Louisiana. The Southern U.S. and sales costs. and should allow our field sales team to be more efficient in working only with highly qualified facilities.517 243.255 233. South Carolina. ranked in order of prevalence rates.S. Create your own business plan Target Market Segment Strategy Geographically. This should allow us to achieve economies in marketing. In years three and four we will expand across the country into other DMERC regions to create a national .00% AL at risk 4% 66. Our model will be to leverage our relationships with these chains to get easier and faster access at the facility level for our field clinical sales team. Georgia.47% Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. (5 of the top 10 states. chains with the majority of their facilities located in Tennessee. promotions. Oklahoma. are in the Southern U.S. and Texas in years two and three. Create your own business plan Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Growth CAGR Customers LTC at risk 2% 224.593 305.47% 291. Alabama. DMERC Region C will be our geographic focus because the prevalence rates for the disease tend to be higher in the Southern U. We will begin by targeting Homecare and A.996 4.283 2.287 2.840 238.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.00% Total 2.338 72.S. North Carolina.671 69. then we will expand further into Virginia.112 74.760 229. we will focus on facilities located in the Southern U.952 313.) and there tends to be a high number of chain facilities located in this region. Mississippi.

focusing on the elder care markets. so we conservatively estimate that growth rates in the DME institutional elder care market will probably be in the 3% per year range. our field reps will also call on non-chain accounts within their territories where opportunities arise. Competition and Buying Patterns The market is currently served inconsistently and. a clear marketing strategy. payor desire for lower costs. assistive devices. and remote monitoring will continue to allow more elderly patients to be cared for in their homes. . Prosthetics.presence. but it would appear likely that Homecare census will remain flat or experience slight growth (1-3% per year). but our strategic focus will be on trying to leverage corporate account relationships to open doors at the facility level for the field reps. non- invasive surgery. while total national spending on Elder care grew approximately 5% per year during that period. while Assisted Living will likely continue to experience slightly stronger growth (3-5% per year). telemedicine. Demographic trends indicate that the larger African American and Hispanic populations in this region will cause prevalence rates to continue to grow at above average rates over the next 20 years. and Supplies (DMEPOS). by a variety of players including pharmacies. The elder care market will be impacted by conflicting sets of dynamics. Consumer preference. and advances in pharmaceuticals. Of course. disease. HIDA estimates that the Durable Medical Equipment (DME) market's revenue has grown 4-5% per year from 2002-2004. HIDA also estimated that total distributed medical product sales from 2001-2003 grew approximately 5% per year. and associated disease states will force an older and sicker resident population into institutional settings due to the intensity of care required to manage these disease states. Industry Analysis Our industry is Durable Medical Equipment. The net effect is difficult to predict. the continued growth in the elderly population and continued increase in heart disease. in some areas poorly. Alzheimer's. However. rehab facilities and therapists. DME manufacturers. These revenue growth rates may decelerate somewhat over the next several years as the industry struggles to find ways to control costs. Orthotics. and local dealers/distributors who lack a national presence.

then submitting orders for these residents. no one effectively approaches this market on a regional or national level with the type of strategy that we have outlined in this plan. A medical exam may prompt the resident's physician to prescribe therapeutic systems. going out and visiting facilities. The market is very fragmented.and the ability to leverage corporate chain relationships. Strategy and Implementation Summary The key element in our strategy is to market to Homecare and Assisted Living corporate account chains in the Southeast. or through word-of-mouth. A local DME. The resident may be prompted to purchase therapeutic systems after receiving a direct mail piece. dealer. One study in 1995 indicated that utilization of the Medicare therapeutic disease benefit was extremely low and could be boosted substantially via the use of a coordinated marketing approach. We will create a . viewing a brochure. A disease-related complication may prompt them to purchase therapeutic systems. Currently. Their field sales team mainly functions as order takers. targeting only residents they believe are covered under Medicare part B or an equivalent private pay coverage. CMS estimates that 95% of DMEs generate less than $350. Our growth will not come entirely from overall market growth. We believe that the combination of market dynamics along with our sales and marketing approach should allow us to grow revenue in this market rapidly over the next three years. We will grow in part due to the underlying trends specific to growth in disease prevalence. Currently. or distributor may recommend therapeutic systems for a resident with Medicare coverage. residents may elect to purchase therapeutic disease systems for several different reasons: 1. but also by consolidating a fragmented market by creating a regional (then a national) clinical sales channel that provides a source of competitive advantage. viewing a television advertisement. 3. where we are likely to see the highest level of arthritic residents covered under Medicare Part B.000 per year in annual billings and 99% generate less than $5 million. 4. 2. but also from taking market share away from our competitors.

Learn how to perform a SWOT analysis Marketing Strategy As mentioned previously. To develop good business strategies. 2. To do this we will leverage our corporate account relationships to open the door. Our relationships with decision makers at homecare chains. We will grow to seven experienced clinical reps in year one. and expand to 25 by year three. and use our marketing expertise to build a compelling program. At the same time we will develop streamlined internal processes to maximize cash flow through fast reimbursement. 4. improving their "hit ratio" on each facility visit. It's easy with our free guide and template. Our ability to build a comprehensive long-range marketing strategy and create a compelling therapeutic system program. we have built industry relationships and networks that we will leverage to build our business. Our ability to secure distribution relationships with a unique combination of leading suppliers by creating a very effective channel of distribution that will make us indispensible. Our competitive edge lies in four major areas: 1. The therapeutic system product line will be our initial entry into this market. then we will leverage the market presence this gives us to expand to other complimentary products for managing complications of the disease.program that offers a solution to improve disease care at no cost and minimal time commitment to the corporate office or the individual facilities. Our ability to effectively build a strong national clinical sales team. Competitive Edge Through our combined 50 years of healthcare industry sales and marketing experience. perform a SWOT analysis of your business. This will allow our field sales team to be much more efficient in prospecting. 3. our primary market is residents of homecare agencies and post-acute care facilities who are covered and considered to be highly at risk . and we will develop supplier relationships with manufacturers of other products that are a good strategic fit. making us attractive to chains who can use us as their one source for products supporting the complications of X disease. We will be unique in that we will have a large scale team of contracted clinical pros in the field.

Brand Attributes . We will utilize the therapeutic system offering as the means to gain entrance into the market and build our organization. flexible and easy to work with. then we scour the market to find the most innovative products. 2. Brand Promise .the outside world's overall perception of our organization will be that we are clinical pros who are alleviating the complications of X disease in the elderly. 3.for complications.Partners. Brand Image . and effectively marketing the value proposition that our therapeutic system program can offer to both the resident and the facility. "To alleviate pain and suffering in patients with X disease. the spark of which is present in every experience a customer has with our products." 6. problem solvers. and why customers should do business with us will be. Our success is dependent on building a strong field clinical sales team that can build relationships at the facility level. we offer a unique portfolio of product solutions and clinical support that allows providers to alleviate resident suffering. we focus first on understanding the needs of caregivers to residents. Our key to marketing success will be to effectively manage the building of our brand platform in the market place. 5. Brand Essence . This provides caregivers with peace of mind and a sense of pride and satisfaction.our envisioned future of the brand is to be THE national source for product solutions to manage the complications of X disease in the elderly.the shared soul of the brand. and . driving the type of people we hire and the type of behavior we expect. 4. followed by other products related to managing complications of heart disease and aging.Our positioning statement is: "For Homecare Providers who want solutions to manage the complications of X disease in their residents. Initially.our concise statement of what we do. Positioning Statement . successfully leveraging of national account relationships. Unlike our competitors.S." This will be the core of our organization. fast on our feet. Then we will add complimentary products for managing complications of the disease. we will focus on serving these patients in facilities that are part of Homecare or Assisted Living chains in the Southern U. will be "Problem Solving" and "Compassionate. Brand Vision . which will consist of the following elements: 1. why we do it.

frequently asked questions." Our logo and color scheme will be finalized by our "go live date" of May 7th. distributed by the corporate office as part of an initiative to prevent complications of disease) explaining the benefits of our product as part of a comprehensive care plan. Presentations. A presentation and recruiting brochure geared to prospective sales people that emphasizes the benefits of joining our organization. brochures and mailers geared to the facility level (ideally. This reflects the passion and problem solving that are to be the essence of our brand. testimonials. The communications strategy we will use in year 1 to build our brand platform will include the following items: 1. and medicare reimbursement information. Our tagline will be more specific to our initial focus on disease related products: Zenergy Medical Industries: "Alleviating the pain of disease. reduced cost from complications. Presentations and brochures geared to the corporate account decision maker explaining the benefits of our program in terms of positive outcomes. The key questions to answer in our marketing message will be. from which we can develop our marketing message to our target segments. This website will be used as a tool for both our sales team and our customers. Image Our company name will be Zenergy Medical Industries. and reduced risk of lawsuits or negative survey events. for each key segment: 1. 4. Training materials that help every employee deliver our brand message in a consistent manner. 5. Who is the key decision maker or influencer? . research.featuring product line information. 3. deliver them with a team of compassionate clinical professionals". Website . Message Matrices These six elements described above combine to create our brand platform. cost benefit analysis. 2.

2. and Homecare and Assisted Living facilities. improve outcomes and quality of What do they life for arthritic residents at no cost to the facility and need? with minimal effort on their part Products at no cost to them that help reduce risk of What do we complications and surgery in arthritic residents. and gain benefits? piece of mind. testimonials. stories. What are the proof points. benefits? They create a reputation as a "Center of Excellence".primarily Homecare chains at the corporate level. What are the They feel like innovators and shrewd business people. What are the key messages . Message Matrix for Homecare Chain Corporate Offices: Key Decision VP of Procurement. Proof. Assisted Living chains at the corporate level.benefits (emotional or tangible) of our offering? 5. They will ensure continuity between our brand vision and the tactical marketing communication efforts we undertake on a daily basis. to support our key messages? We will use these questions to develop four specific tactical level message matrices for our target market segments . These message matrices will be used as templates/guidelines in developing sales and marketing pieces for these specific market segments. Research articles. What do they want or need? What problem do they need to solve? 3. What are the Improved outcomes. Management of the entire process. VP of Risk Maker or Management Influencer Ways to reduce risk. research. emotional They have a sense of pride and satisfaction. success stories. VP of Clinical. improved quality of life. manufacturer success research. offer? Program for care that is easy for them to adopt. We will also develop a similar message matrix for our prospective employees. What do we offer to satisfy the need or solve the problem? 4. and tangible reduced costs (complications) in arthritic residents. success .

manufacturer success success stories.stories Message Matrix for Homecare Facilities: Key Decision DON. A sense of What are the satisfaction and pride from being proactive caregivers. improved comfort and tangible outcomes. freedom to be entrepreneurs. Research articles. and prevention of disease related complications. and fitting of offer? systems managed by us with no cost. simple program of care. . receptionists Maker or improved What do Good income potential. or excessive paperwork for the facility. emotional A sense that they provide something special that benefits? residents could not get at other facilities. What are the Greater resident satisfaction. A clear. an easy buying What do we process with the assessment. Peace of mind. Maker or Physicians Influencer Greater comfort. career balance. stories Message Matrix for Internal Organizational Team: Key Decision Field based clinical sales representatives. hassles. Compliance with Corporate mandated programs. the ability to "make a difference" in improved and in providing input to shape the direction of the company. ordering. flexible hours with good family they need? vs. Reduced costs (complications) and improved they need? outcomes and quality of life. Resident. testimonials. reduced complications (cost) and risk of benefits? adverse complications Happier residents and family. research. Family members. infections. and What do surgeries. Reduced risk of ulcers. Administrator. Proof.

Flexible hours and independence. What are A nice income with flexible hours. Research articles. and residents. the desire to belong to a great organization and get in on the ground floor. and eventually the entire country. a great organization with a growing product line. testimonials. stories Sales Strategy Sales Strategy: Our sales strategy will be to call on Homecare and Assisted Living chains doing business in the Southeast to educate them on the benefits of a Therapeutic System program. To make a difference in the organization and in their company. which will provide comprehensive coverage of facilities across the entire Southeast. research. The opportunity to benefits? gain clinical sales experience. offer? the opportunity to make a difference in improved and in shaping an organization from the ground floor. To love their job and emotional company. . We will be uniquely positioned to gain market share within our target segments because of our:  National account relationships which will open the door to pre- qualified sales opportunities at the facility level  Large-scale field clinical sales presence. Long range potential the tangible as part of a growing organization. facilities.  Powerful compelling marketing programs that will present a compelling cost-benefit story for chains. to make a nice income without sacrificing benefits? family life/personal life. We will seek to gain their support in allowing our field clinicians to visit their facilities to meet with residents that are at risk for complications of X disease. What are To feel valued and valuable. A good compensation What do we plan. manufacturer success success stories. Proof.

The resident or their family must be willing to pay for the product.500 per year for two years. Sales Forecast Our sales in year one are calculated using the following assumptions: . Medicaid. private insurance. We plan to coordinate the order. This may require gaining a contract with the private insurer in order to qualify for reimbursement. Pricing: Medicare reimbursement for standard systems is set at $264. Medicare part B will reimburse for the product. Our compensation plan will be a straight 16% commission paid when we receive reimbursement for delivered product. and potential savings of costs associated with complications that can run to $2. and reduced risk of complications by using our product (which can cost thousands of dollars) compared to $264 per year for therapeutic systems (as part of an overall program of care). Private insurance will reimburse for the product. This will require demonstrating to the resident and/or family members the benefits of enhanced comfort and safety. This will require demonstrating the value to the facility in reduced risk.04 per year. 4. SC. reimbursement and other record keeping processes out of a central office located initially in Charleston. or other private sources. 2. enhanced resident comfort.000-13. which will fit into one of the following classifications: 1. This is an easy sell because Medicare part B will reimburse for 80% of the cost of the product. We anticipate 30-45 day payment cycles from Medicare. 3. We will utilize an experienced Medicare part B biller to ensure correct submissions to Medicare and help us maximize cash flow by shortening reimbursement cycles and maximizing collection of 20% copay amounts. The facility is willing to pay for the product out of the per diem reimbursement they receive for the resident from either Medicare.We will seek to do a comprehensive assessment of all at-risk residents in a facility. then we will utilize different sales strategies based on their payor status. with 80% covered by Medicare part B and the remaining 20% being a co-pay that is the responsibility of the resident.

 Medicare part B billing is estimated at $10.32. June.  Shipping is estimated at 5% of total sales. Our direct costs in year two are calculated using the following assumptions:  $67 per unit cost.  Medicare part B billing is estimated at $9. Our sales in year three are calculated using the following assumptions:  Fifteen reps hired in years one and two following the 12 month ramp up to max monthly capacity of 50 units. in May.  Net sales are calculated using the average sales price of $211. leaving less available time to drive new unit volume. which is 80% of the total sales which are based on the $264.00 per unit.  Commissions are estimated at 20% of net sales. which is the "intermediate" service package from our planned part B billing service. Units per rep tops out at a max capacity of 50 units per rep per month.  Eight new reps hired follow the 12 month ramp up.04 Medicare approved rate. Our sales in year two are calculated using the following assumptions:  Seven reps hired in year one following the 12 month ramp up to max monthly capacity of 50 units. it is assumed they will generate increasing unit volume each month. September.  Shipping is estimated at 5% of total sales.  Ten new reps hired follow the 12 month ramp up. The rate of increase in unit sales slows in later months because more time is devoted to servicing the clients who were sold earlier in the year.  Seven reps are hired.50 per unit. and December  For the first 12 months each rep is in their territory. October.  Commissions are estimated at 20% of net sales. August. November. Our direct costs in year one are calculated using the following assumptions:  $65 per unit cost. . which is the "intermediate" service package from our planned part B billing service.

Our direct costs in year three are calculated using the following assumptions:  $69 per unit cost.  Commissions are estimated at 20% of net sales. Create your own business plan Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.  Shipping is estimated at 5% of total sales. Create your own business plan .  Medicare part B billing is estimated at $10. which is the "intermediate" service package from our planned part B billing service. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.50 per unit.

Create your own business plan Recruitment and Training Recruitment: We will focus on contracting with clinicians (LPN. We plan to leverage our relationships in the clinical sales arena to recruit top caliber sales reps.408.Sales Forecast Year 1 Year 2 Year 3 Sales Therapy System $458. Mitch Finkelstein has been involved in clinical salesforce management and recruiting for 15+ years in this area.670.Charleston  Florida .845 $3. RN. OT.845 $3. They will have minimum call activity requirements of three to five calls per week.Miami. Jacksonville  Georgia . Over time we will add additional products related to supporting the complications of X disease.930 $834.  South Carolina . and Yanni Acropolis has 15+ years of clinical sales experience in the Southeast as well.228 Direct Cost of Sales Year 1 Year 2 Year 3 Inventory Used $112.930 $834.374 $1.840 $454. Memphis. or RT) with two or more years of sales or customer service experience.Atlanta .408.000 for someone working 15-20 hours per week and meeting the minimum sales call guidelines.Charlotte. PT. Tampa. Our goal in year one will be to fill at least seven positions by December 1st in the following territories:  Tennessee . focusing first in the Southeast.Chattanooga. Greensboro. Raleigh.840 $454.374 $1. who desire part-time or flexible work schedules and are willing to work under contract employee status. Nashville  North Carolina . and we anticipate that the average revenue generated per year will be approximately $120. Knoxville.670. Orlando.228 Other $0 $0 $0 Total Sales $458.900 Other $0 $0 $0 Subtotal Direct Cost of Sales $112.900 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.

Resident must be currently being treated under a comprehensive disease care plan by a physician. 4. ideally conducted by a qualified physicians (one-half to full day required) Sales Process Sales Process at Facility Level: 1. Norfolk Training: The product is straightforward and limited in scope (initially). collecting.Birmingham  Texas . Gulfport  Louisiana . so we anticipate the ramp-up time to full productivity to be brief (30-60 days). etc. Houston  Mississippi . Resident must have one of the following conditions: o [Proprietary and Confidential Information Removed. billing.Baton Rouge. and we also begin to look at the following markets for years two and three to reach at least 25 territories by early in year three. (one-half day required)  Product-related training from the manufacturer (one day required)  Reimbursement-related training from the appropriate DMERC Region C ombudsman (one-half to full day required)  A review of the basics of disease care. San Antonio. Training will be provided in the following areas:  A review of the company strategy. and our internal processes for ordering.Tulsa. To place an order. their job expectations. Qualified Medicare residents must have an disease diagnosis. New Orleans  Oklahoma .] 3. 2.Dallas.  Alabama . and we will be hiring clinicians with experience in the post-acute marketplace who are generally familiar with Medicare reimbursement.Richmond. record keeping. Oklahoma City  Arkansas .Little Rock.Jackson. The patients medical records must reflect the need for the care. commissions. the sales rep must submit: . Fort Smith  Virginia .The remaining unfilled territories will be filled early in year two.

500 to treat per incident over a two year period. b) the resident or their family. For Private Pay. A completed Medicare claim form (HCFA 1500). A signed prescription form from the prescribing physician (M. or D. and Aktum plan . for a flat charge per every six line items on an order. overseeing the disease treatment plan. and an electronically filed HCFA 1500 form including the prescribing physician's name and UPIN number. and providing extraordinary service. by explaining the cost/benefit proposition of investing $264 in therapeutic systems to help avoid the risk of complications or surgery which can cost $2. we must gain a commitment either from a) the resident's private insurer. 4. The DMERC REgion C reimbursement for this is $264. handle the electronic claims submission. 4.$13.04. An order for the systems signed and dated by the physician. We plan to contract with an experienced part B biller who will. or D. Typical reimbursement time is estimated at 30-60 days. 1. Finkelstein.D.O. Acropolis. A statement of certifying physician for therapeutic systems form reviewed and signed by the M. Milestones Notes relating to some of the key milestones: 1. This will minimize the time our field sales people spend chasing paperwork.32 will be billed to Medicare and the remainder is billed to the resident.580 will be required to fund start-up and initial operations. selling.000 .). 2. or c) the facility to reimburse for this product. and allow them to maximize their time spent building relationships. 2. proof of delivery documentation. plus demonstrated evidence of attempts to collect the 20% co-pay. and the billing and collection of co-pay amounts.D. Determine cash needs and draw up partnership: o We estimate $15.O. of which $211. or Medicaid residents. To be successfully reimbursed under Medicare part B requires all the documentation above.. 3. The resident pays the remaining 20%. 3. Medicare part B will pay 80% towards the allowable reimbursement on one system (HCPCS code L3500). Medicare will reimburse for one new system every year.

printer. reducing need for inventory. Create forms. Sign supply contracts with Lotus Industries and Sutra Corp. phone and phone line. 4. lab coats. product order form with patient info. CMS reimbursement form. Review with Yanni's wife: make sure the forms make sense and we haven't missed anything. reimbursement. DSL line. out clause if provider number delayed or we move operations out of state. Get liability insurance: we will see if landlord's policy covers us adequately (we will need a copy of the entire policy with the specific verbiage showing we are covered under their facility insurance for at least $300K). checklist. etc. 5.) o Processes . . answering system as back-up to forward calls the receptionist misses. 90 day out clause. 2. warranty. Create starter kits for reps with product samples. Rent facility: o Sign lease agreement with target of 3 months guaranteed. and be properly coached for the initial site inspection and what to do if there is a random inspection later. o Checklist . prescription. and DPM training.flow chart the order. processes: o Forms . 9. 3.an easy to follow list of things the rep must cover (paperwork.certificate of necessity. office furniture. 7. a heat gun. to contribute equally to fund these cash needs and Finkelstein will create a partnership agreement with a plan for financially accounting for the investment capital. 6. signage with company name and hours of operation. Get inventory and samples: enough to demonstrate the range of products offered. proof of delivery. Train receptionist: she needs to know how to handle calls or in-person inquiries. name tags. 8. Find part B biller and sign agreement: this biller will be our EDI filer as well.: must show that we can order product directly on credit terms (not COD) and receive immediately. o Secure computer. secure filing system. and complaint processes with electronic tracking sheets. reviewing Medicare reimbursement and the resident's co-pay.

Identify corporate account targets: determine which key chains have the biggest presence in our initial seven territories. and corporate marketing brochure.10. Create sales recruitment packet: o Hiring profile and job description. November. and therapeutic system fitting from MD consultants in each major market. o Mailers directly to other facilities in the initial seven territories. o Company orientation from the management team. 17. Sales training program (to be done in the first 30 days): o Product training by the manufacturers. press release. o Territories defined with listings of accounts. 13. October. 15. August. 14. o Reimbursement training by the ombudsman. Seven reps contracted: goal is to hire one by the first of the month in April. 12. 16. . o Recruitment brochure and PowerPoint presentation. pathology. 11. This will include a letter. o Compensation plan and employment contract. Create audit/QA process: define process for auditing field Medicare claims to ensure only legitimate claims are being processed. o Brochures for use by facilities or corporate offices. Begin recruiting reps: identify top priority territories and begin to network. May. First Marketing pieces: o Mailers to be distributed by the corporate accounts to the member facilities. September. o Basics of anatomy. Receive provider number: this is estimated to take 60 days if we have everything right the first time. June. o Order process training by the management team.