CLINICAL BUSINESS PLAN

[YOUR NAME]
[YOUR TITLE]

Phone: [YOUR PHONE NUMBER]

Email: [YOUREMAIL@YOURCOMPANY.COM]
[YOUR WEBSITE ADDRESS]
[MONTH] [YEAR] // Confidential Information
 Confidentiality Agreement

The undersigned reader acknowledges that the information provided by [YOUR COMPANY NAME] in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of
[YOUR COMPANY NAME].

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in
nature, other than information which is in the public domain through other means and that any disclosure or use of
same by reader may cause serious harm or damage to [YOUR COMPANY NAME].

Upon request, this document is to be immediately returned to [YOUR COMPANY NAME].

___________________
Signature

___________________
Name (typed or printed)

___________________
Date

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

[MONTH] [YEAR] // Confidential Information

 Table of Contents

1.0 Executive Summary............................................................................................................................................ 1

Chart: Highlights....................................................................................................................3
1.1 Objectives...........................................................................................................................3
1.2 Mission................................................................................................................................3
1.3 Keys to Success.................................................................................................................3
2.0 Company Summary................................................................................................................4
2.1 Company Ownership..........................................................................................................4
2.2 Company History................................................................................................................4
Table: Past Performance.......................................................................................................4
Chart: Past Performance.......................................................................................................5
3.0 Services..................................................................................................................................6
4.0 Market Analysis Summary......................................................................................................7
4.1 Market Segmentation..........................................................................................................7
Table: Market Analysis..........................................................................................................7
Chart: Market Analysis (Pie)..................................................................................................8
4.2 Target Market Segment Strategy........................................................................................8
4.3 Service Business Analysis..................................................................................................8
4.3.1 Competition and Buying Patterns.................................................................................8
5.0 Strategy and Implementation Summary.................................................................................9
5.1 SWOT Analysis...................................................................................................................9
5.1.1 Strengths......................................................................................................................9
5.1.2 Weaknesses.................................................................................................................9
5.1.3 Opportunities................................................................................................................9
5.1.4 Threats.........................................................................................................................9
5.2 Competitive Edge................................................................................................................9
5.3 Marketing Strategy............................................................................................................10
5.4 Sales Strategy...................................................................................................................10
5.4.1 Sales Forecast...........................................................................................................10
Table: Sales Forecast......................................................................................................10
Chart: Sales Monthly.......................................................................................................11
Chart: Sales by Year........................................................................................................11
5.5 Milestones.........................................................................................................................12
Table: Milestones................................................................................................................12
Chart: Milestones................................................................................................................12
6.0 Management Summary........................................................................................................13
6.1 Personnel Plan..................................................................................................................13
Table: Personnel.................................................................................................................13
7.0 Financial Plan.......................................................................................................................14
7.1 Important Assumptions.....................................................................................................14
7.2 Break-even Analysis.........................................................................................................14
Table: Break-even Analysis................................................................................................14
Chart: Break-even Analysis.................................................................................................14
7.3 Projected Profit and Loss..................................................................................................15
Table: Profit and Loss.........................................................................................................15
Chart: Profit Monthly............................................................................................................16
Chart: Profit Yearly..............................................................................................................16
Chart: Gross Margin Monthly..............................................................................................17

Page 1
 Table of Contents

Chart: Gross Margin Yearly.................................................................................................17

7.4 Projected Cash Flow.........................................................................................................18
Table: Cash Flow................................................................................................................18
Chart: Cash.........................................................................................................................19
7.5 Projected Balance Sheet..................................................................................................20
Table: Balance Sheet..........................................................................................................20
7.6 Business Ratios................................................................................................................21
Table: Ratios.......................................................................................................................21
Table: Sales Forecast...................................................................................................................1
Table: Personnel...........................................................................................................................2
Table: Profit and Loss...................................................................................................................3
Table: Cash Flow..........................................................................................................................4
Table: Balance Sheet...................................................................................................................5

Page 2
 [YOUR COMPANY NAME]

1.0 Executive Summary

 
[YOUR COMPANY NAME] is headquartered in [YOUR CITY], [YOUR STATE/PROVINCE]

Contact:  [YOUR NAME]

Direct Phone:  [YOUR PHONE NUMBER]

[YOUR ADDRESS]

[YOUR CITY], [YOUR STATE/PROVINCE], [YOUR ZIP/POSTAL CODE]

[YOUREMAIL@YOURCOMPANY.COM]

[YOUR WEBSITE ADDRESS]

Introduction
The long-term goal of [YOUR COMPANY NAME] is to provide patients with the necessary tools required to
live a healthy and well life. The Company has brought together a group of experienced professionals, in the
field of health care and wellness. [YOUR COMPANY NAME] has adopted a superior wellness  program, the
[YOUR COMPANY NAME] program, developed by [YOUR NAME]. The Company plans to utilize this
program to address the underlying causes of disease.

[YOUR NAME] began his group practice in 1993 and continued until 2003. After this, he went into his solo
practice, consequently forming the [YOUR COMPANY NAME] in 2010. He received the Patients Choice
Award in 2009. 

Location
[YOUR COMPANY NAME] is headquartered in [YOUR CITY], [YOUR STATE/PROVINCE] at [YOUR
ADDRESS].

The Company
[YOUR COMPANY NAME] will provide both weight loss surgery and general surgery, along with a complete
wellness program, at its proposed new wellness and obesity clinic. The [YOUR TITLE] is [YOUR NAME], and
the management structure will include: a registered nurse, a clinic specialist, director of nutrition, director of
fitness (physical therapist, personal trainer), a director of marketing, a chef and a message therapist.

Our Services
The Company plans to build an energy efficient clinic to provide: general and obesity surgery, nonsurgical
weight loss and wellness programs as well as, integrative medicine, nutritional education and assessment
and cooking classes and demonstrations. On the physical therapy side, the Company will provide physical
therapy, personal and specialty fitness and messages.

Page 1
 [YOUR COMPANY NAME]

The Market
[YOUR COMPANY NAME] is the only obesity and wellness clinic in central Arkansas and [YOUR NAME] is
the first physician that [YOUR NAME] inventor of the [YOUR COMPANY NAME] program has brought on
board. Therefore, there is no direct competition in the region. The Company will target all clients both adults
and children who are concerned with weight and health issues.

Financial Considerations
The current financial plan for [YOUR COMPANY NAME] is to obtain grant funding in the amount of $250,000.
The grant will be used to plan a new facility, obtain anti-aging medicine certification, marketing and
advertising, and purchase  a vehicle for its rural community outreach program in wellness and nutrition, etc.
(for a more detailed list please refer to milestones table) 

The major focus for grant funding is as follows:

1.  Hire employees; the Company will look to hire veterans, minorities and the unemployed 

2. Design an energy efficient facility to help reduce utility usage

3. Provide education classes to help promote wellness and nutrition

4. Institute an electronic medical record keeping system for effective and reliable patient history retrieval

Page 2
 [YOUR COMPANY NAME]

Chart: Highlights

Highlights

$1,100,000

$1,000,000

$900,000

$800,000

$700,000 Sales

$600,000 Gross Margin

$500,000 Net Profit
$400,000

$300,000

$200,000

$100,000

$0
2011 2012 2013

1.1 Objectives

 Build a new energy efficient clinic in central AR

 Hire at least 3 additional employees
 Implement a community outreach program to treat and educate the less fortunate

1.2 Mission

[YOUR COMPANY NAME] mission is to be proactive toward health, in order to avoid illness and optimize
wellness. The Company will accomplish this through conventional medicine, complementary medicine and
surgery. [YOUR COMPANY NAME] will include care for both adults and children.

1.3 Keys to Success

The key to success for [YOUR COMPANY NAME] are:

 
 Excellent customer service and post-op care
 Having an exclusive offering of the [YOUR COMPANY NAME] program
 Addressing the underlying causes of disease

Page 3
 [YOUR COMPANY NAME]

2.0 Company Summary

[YOUR COMPANY NAME] is run by [YOUR NAME], who has 16+ years in group and solo medical practice.
[YOUR NAME] also has exclusive access to the [YOUR COMPANY NAME] program, which focuses on the
underlying causes of disease. The company plans to build a new energy efficient facility to implement its
Wellness and Obesity program.

2.1 Company Ownership

[YOUR COMPANY NAME]I s a corporation owned 100% by [YOUR TITLE] [YOUR NAME].

2.2 Company History

The Company was formed in 2010 to focus and the development of a new Obesity and Wellness clinic in
central AR. [YOUR NAME] has been in group medical practice since 1993 and in 2003 he branched out and
began his solo practice. [YOUR COMPANY NAME] will operate the [YOUR COMPANY NAME] and [YOUR
CITY], [YOUR STATE].

Table: Past Performance

Past Performance
2008 2009 2010
Sales $652,894 $613,263 $467,146
Gross Margin $652,894 $613,263 $467,146
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $647,275 $634,719 $477,046
Collection Period (days) 0 0 0

Balance Sheet
2008 2009 2010

Current Assets
Cash $2,155 $5,627 $6,527
Accounts Receivable $0 $0 $0
Other Current Assets $0 $0 $0
Total Current Assets $2,155 $5,627 $6,527

Long-term Assets
Long-term Assets $26,519 $26,519 $29,387
Accumulated Depreciation $22,990 $24,604 $25,316
Total Long-term Assets $3,529 $1,915 $4,071

Total Assets $5,684 $7,542 $10,598

Page 4
 [YOUR COMPANY NAME]

Current Liabilities
Accounts Payable $0 $4,223 $0
Current Borrowing $0 $28,867 $41,867
Other Current Liabilities (interest free) $5,000 $0 $0
Total Current Liabilities $5,000 $33,090 $41,867

Long-term Liabilities $10,000 $0 $0

Total Liabilities $15,000 $33,090 $41,867

Paid-in Capital $0 $0 $0
Retained Earnings ($9,316) ($25,548) ($31,269)
Earnings $0 $0 $0
Total Capital ($9,316) ($25,548) ($31,269)

Total Capital and Liabilities $5,684 $7,542 $10,598

Other Inputs
Payment Days 30 30 30
Sales on Credit $0 $0 $0
Receivables Turnover 0.00 0.00 0.00

Chart: Past Performance

Past Performance

$700,000

$600,000

$500,000
Sales
$400,000
Gross

$300,000 Net

$200,000

$100,000

$0
2008 2009 2010

Page 5
 [YOUR COMPANY NAME]

3.0 Services

[YOUR COMPANY NAME] will provide the following services at its [YOUR COMPANY NAME]:
 
1. General Surgery - Supplies, HIPPA Compliance, Electronic Medical Records
2. Obesity Surgery - Concentrating on post-op care through education, nutritional approaches for successful
weight loss and psychological care
3. Nonsurgical Weight Loss and Wellness - using the Body Solutions Program. Aspects include: a metabolic
approach, physician supervised weight loss for men and women, pediatric weight loss and wellness, bio-
identical hormone replacement, anti-aging medicine and wellness, gastro-intestinal health and libido
enhancement.
4. Integrative Medicine
5. Nutrition & Education - Outreach programs to schools and adults to include: nutritional assessment,
cooking classes and demonstrations, and supplements.
6. Physical Therapy & Instruction - For obese patients and the secondary complications that arise with joint
and balance issues including: Personal Fitness and Specialty Fitness.
7. Massage

Page 6
 [YOUR COMPANY NAME]

4.0 Market Analysis Summary

Over one third of the population in Arkansas [is] considered overweight or obese.*
 
*Arkansas Health Department
  
Plain and simple, today's health care costs are too high. U.S. health care costs constitute some $1 trillion,
about 14%, of the gross national product. This came out to an average per employee cost of $3,900 in 1997.
Costs are expected to double to about $2 trillion by the year 2007. But it should come as no surprise that we
are spending a lot on health care because we know that health care premiums have gone up over the years.
The cost to treat heart disease and cancer has escalated, emergency room treatment is expensive, and
medication costs have skyrocketed. In fact, over 50% of corporate profits now go for health care costs versus
only 7% three decades ago.*
 
*The American Institute for Preventive Medicine, 2010

4.1 Market Segmentation

The market for [YOUR COMPANY NAME] wellness and obesity programs will include two major groups:

1. Adults, and
2. Children

Table: Market Analysis

Market Analysis
2011 2012 2013 2014 2015
Potential Customers Growth CAGR
Adults 6% 286,810 303,158 320,438 338,703 358,009 5.70%
Children 6% 95,094 100,514 106,243 112,299 118,700 5.70%
Total 5.70% 381,904 403,672 426,681 451,002 476,709 5.70%

Page 7
 [YOUR COMPANY NAME]

Chart: Market Analysis (Pie)

Market Analysis (Pie)

Adults

Children

4.2 Target Market Segment Strategy

The target market for [YOUR COMPANY NAME] will be both adults and children. Internet and referral
marketing is the key type of marketing strategy utilized. Maintaining and further enhancing its reputation in the
community is crucial to gaining additional market share.

4.3 Service Business Analysis

The medical treatment business is lucrative as mentioned before. As a result, there are many centers nation-
wide that are providing quality wellness and obesity programs. [YOUR COMPANY NAME] will be the only
wellness and obesity clinic in central Arkansas. The Company is confident that this will be a successful
venture because of its devotion to the underlying causes to illness and its adherence to the [YOUR
COMPANY NAME] program. Additionally, it will pride itself on experience and the capabilities of its staff.

4.3.1 Competition and Buying Patterns

As individuals become more health conscience and the technology of medicine and combating obesity and
other health issues improves, wellness and obesity clinics will become more abundant. At the present time,
[YOUR COMPANY NAME] and [COMPANY NAME] will be the only clinic of its kind in the central Arkansas
region; therefore there will be no direct competitions for its services. Moreover, health conscience and obese
clients will only have one choice to make when they decide to seek the advice and facilities of a specialized
program.

Page 8
 [YOUR COMPANY NAME]

5.0 Strategy and Implementation Summary

[YOUR COMPANY NAME] plans to use its advertising and marketing campaigns to attract clients to its clinic.
The Company will reach its target market using TV, radio, print and internet advertising. [YOUR COMPANY
NAME] plans to market to adults through physicians, companies, churches, colleges and hospitals. The
children will be targeted using physicians, schools, Girls & Boys Clubs, Church and Youth Organizations as
well as daycare centers in the region.

5.1 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the company, and describes
the opportunities and threats facing [YOUR COMPANY NAME].

5.1.1 Strengths

 Knowledge and friendly staff

 State-of-the art equipment and techniques
 Clear vision of the market need
 The "Body Solution' program

5.1.2 Weaknesses

 A dependence on an ever changing medical field

 Cost factors associated with keeping state-of-the-art equipment
 Access to additional capital

5.1.3 Opportunities

 Growing population of health conscience individuals and parents

 Being the first wellness and obesity clinic in central AR

5.1.4 Threats

 Emerging local competitors

 Growing popularity of self-help methods

5.2 Competitive Edge

The major competitive advantages for [YOUR COMPANY NAME] ARE:

 Being the only wellness and obesity clinic in the region

 Having exclusive access to [YOUR NAME]’s the [YOUR COMPANY NAME] program
 Its team of well qualified and experienced managers and directors

Page 9
 [YOUR COMPANY NAME]

5.3 Marketing Strategy

As mentioned in the Strategy and Implementation section above the Company will focus on its target markets
through several forms of advertising. The aim will be to project is unique approach of focusing on the
underlying causes for illness and obesity. The [YOUR COMPANY NAME] program will give [YOUR
COMPANY NAME] a foundation to inform the health conscience public in its market area. Additionally, it will
use its community outreach and educational programs to increase awareness of its services. The outreach
programs will also serve to educate and assist the less fortunate in the Company's target area.

5.4 Sales Strategy

The marketing strategy and educational programs mentioned above will help to generate sales. The
Company will also rely heavily on word of mouth advertising and its various industry associations, other
physicians and hospitals, to help increase awareness and eventually sales. In the ever increasing HMO and
referral networking environment of physician and hospitals, the acceptance of insurance providers will also be
a major impetus for generating sales and collecting revenue.

5.4.1 Sales Forecast

The table and charts below represent the projected sales forecasts of [YOUR COMPANY NAME]. The
Company expects to increase sales to $552,403 in 2011, an increase of 18.25%. In 2012, [YOUR COMPANY
NAME] plans to open its new facility and thus sales are expected to increase 30.84% to $722,738. After the
addition of a new physician in 2013, the Company projects sales to increase 50.72% to $1,089,344.

Table: Sales Forecast

Sales Forecast
2011 2012 2013
Sales
Patient Fees $630,046 $815,909 $1,219,784
Patient Refunds ($77,643) ($93,171) ($130,440)
Total Sales $552,403 $722,738 $1,089,344

Direct Cost of Sales 2011 2012 2013

Patient Fees $0 $0 $0
Patient Refunds $0 $0 $0
Subtotal Direct Cost of Sales $0 $0 $0

Page 10
 Feb Mar
[YOUR COMPANY NAME]

Jan
Chart: Sales Monthly

Sales Monthly

$50,000

$40,000

$30,000 Patient Fees

Patient Refunds
$20,000

$10,000

$0

Chart: Sales by Year

Sales by Year

$1,200,000

$1,000,000

$800,000 Patient Fees

$600,000 Patient Refunds

$400,000

$200,000

$0

2011 2012 2013

Page 11
 [YOUR COMPANY NAME]

5.5 Milestones

The Company's detailed milestones are shown in the following table and chart. The related budgets are
included with the expenses shown in the projected Profit and Loss statement, which is in the financial analysis
that comes in Chapter 7 of this plan. The proposed new facility is included in the milestones, yet the
anticipated infusion of capital is not because the Company is still formulating an actual plan. At this point, the
$3,200,000 is included in the cash flow projections as new investment in 2012. [YOUR COMPANY NAME]
expects the facility to take 6 months to complete, and has shown the investment infusion at the completion
date.

Table: Milestones

Milestones

Milestone Start Date End Date Budget

Receive Grant Funding 5/3/2011 5/4/2011 ($250,000)
Ad & Marketing Campaign 5/4/2011 5/3/2012 $60,000
Electronic Medical Records 5/4/2011 5/11/2011 $2,500
System
Obtain Anti-Aging Cert 1/2/2011 6/1/2011 $20,000
Complete New Facility 6/1/2011 1/2/2012 $2,500,000
Purchase Eqmt and Furniture 1/3/2012 2/3/2012 $700,000
Grand Re-Opening 1/16/2012 1/17/2012 $0
Hire (3) Employees 1/16/2012 1/17/2012 $100,000
Education & Therapy Unit 1/17/2012 1/23/2012 $0
Hire (1) Physician 1/2/2013 1/3/2013 $225,000
Totals $3,357,500

Chart: Milestones

Milestones

Receive Grant Funding

Ad & Marketing Campaign

Electronic Medical Records Sys

Obtain Anti-Aging Cert

Complete New Facility

Purchase Eqpmt and Furniture

Grand Re-Opening

Hire (3) Employees

Education & Therapy Unit

Hire (1) Physician

Q1 `11 Q2 Q3 Q4 Q1 `12 Q2 Q3 Q4

Page 12
 [YOUR COMPANY NAME]

6.0 Management Summary

The proposed management and organization of [YOUR COMPANY NAME] is its final stage is the following:
 
[YOUR TITLE] -- [YOUR NAME]
 
Physician (1)
 
Registered Nurse (2)
 
Clinic Specialist
 
Director of Nutrition
 
Director of Fitness
 
Director of Marketing
 
Chef
 
Massage Therapist

6.1 Personnel Plan

The personnel plan for [YOUR COMPANY NAME] includes hiring an additional registered nurse, Director of
Fitness and a Wellness Educational Specialist. In final year of the plan, the Company plans to add another
physician.

Table: Personnel

Personnel Plan
2011 2012 2013
RN's & Assistants $65,951 $115,000 $115,000
Director of Fitness $0 $30,000 $30,000
Wellness Educational Specialist $0 $30,000 $30,000
Physician $0 $0 $200,000
Total People 3 6 7

Total Payroll $65,951 $175,000 $375,000

Page 13
 [YOUR COMPANY NAME]

7.0 Financial Plan

The financial plan of [YOUR COMPANY NAME]is contingent upon several factors, including the initial
$250,000 in grant funding, sales projections, important assumptions and an additional investment of $3.2
million to complete the new facility. Below the Company has introduced a break-even analysis, a Pro Forma
Profit and Loss Statement, Cash Flow projections and the Pro Forma Balance Sheet, for the next three years.

7.1 Important Assumptions

The important assumptions take into account a profitable and increasing sales forecast for the coming years.
Additionally, the Company expects to have an increasing cash balance and net worth from healthy
operations.

7.2 Break-even Analysis

The break-even analysis shows the monthly revenue break-even point based on conservative estimates for
sales and generous projections for expenses. These assumptions take this approach to account for
unforeseen risks and increases in costs.

Table: Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even $30,079

Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $30,079
Chart: Break-even Analysis

Break-even Analysis
$30,000

$20,000

$10,000

$0

($10,000)

($20,000)

($30,000)
$0 $10,000 $20,000 $30,000 $40,000 $50,000
$5,000 $15,000 $25,000 $35,000 $45,000 $55,000

Page 14
 [YOUR COMPANY NAME]

7.3 Projected Profit and Loss

The table below represents the Pro Forma Profit and Loss for the Company’s next three years. Increasing
sales and operating expense increases will help drive the net profit to sales ratio from 23.59% in 2011 to
8.81% in 2012 and upward to 15.51% in 2013. Net profits fall from $130,314 in 2011 to $63,686 due to
additional employee expenses in 2012. In the final year of the plan, total operating expenses reach $842,552
and net profit increases to a high of $168,984.

Table: Profit and Loss

Pro Forma Profit and Loss

2011 2012 2013
Sales $552,403 $722,738 $1,089,344
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0

Gross Margin $552,403 $722,738 $1,089,344

Gross Margin % 100.00% 100.00% 100.00%

Expenses
Payroll $65,951 $175,000 $375,000
Marketing/Promotion $55,759 $60,000 $60,000
Depreciation $4,071 $128,800 $128,800
Rent $4,235 $0 $0
Utilities $13,992 $20,000 $20,000
Insurance $71,564 $71,564 $71,564
Payroll Taxes $5,335 $14,158 $30,338
Other $140,045 $156,850 $156,850

Total Operating Expenses $360,953 $626,372 $842,552

Profit Before Interest and Taxes $191,450 $96,366 $246,793

EBITDA $195,521 $225,166 $375,593
Interest Expense $5,287 $5,387 $5,387
Taxes Incurred $55,849 $27,294 $72,422

Net Profit $130,314 $63,686 $168,984

Net Profit/Sales 23.59% 8.81% 15.51%

Page 15
 [YOUR COMPANY NAME]

Chart: Profit Monthly

Profit Monthly

$11,000

$10,000

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Profit Yearly

Profit Yearly

$160,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$0
2011 2012 2013

Page 16
 [YOUR COMPANY NAME]

Chart: Gross Margin Monthly

Gross Margin Monthly

$50,000

$45,000

$40,000

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Chart: Gross Margin Yearly

Gross Margin Yearly

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0
2011 2012 2013

Page 17
 [YOUR COMPANY NAME]

7.4 Projected Cash Flow

The table below shows the Pro Forma Cash Flow for [YOUR COMPANY NAME]. In the first year, a $12,000
infusion of new current borrowing helps to supplement a depleted cash balance in month 2. In 2012, a
projected $3.2 million in new investment helps to facilitate the acquisition of the new facility. Cash balances
increase from $260,879 in 2011 to $377,647 in 2012. In the final year, the cash balance reaches $545,408 as
the subtotal of cash spent falls to $876,521 and net cash flow climbs to $167,761.

Table: Cash Flow

Pro Forma Cash Flow

2011 2012 2013
Cash Received

Cash from Operations

Cash Sales $138,101 $180,684 $272,336
Cash from Receivables $346,403 $521,116 $771,946
Subtotal Cash from Operations $484,503 $701,801 $1,044,282

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $12,000 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $29,387 $0
New Investment Received $250,000 $3,200,000 $0
Subtotal Cash Received $746,503 $3,931,188 $1,044,282

Expenditures 2011 2012 2013

Expenditures from Operations

Cash Spending $65,951 $175,000 $375,000
Bill Payments $323,700 $354,420 $411,521
Subtotal Spent on Operations $389,651 $529,420 $786,521

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $22,500 $0 $0
Purchase Long-term Assets $0 $3,200,000 $0
Dividends $80,000 $85,000 $90,000
Subtotal Cash Spent $492,151 $3,814,420 $876,521

Net Cash Flow $254,352 $116,768 $167,761

Cash Balance $260,879 $377,647 $545,408

Page 18
 Feb
[YOUR COMPANY NAME]

Jan
Chart: Cash

Cash

$280,000

$240,000

$200,000

$160,000 Net Cash Flow

$120,000 Cash Balance

$80,000

$40,000

$0

($40,000)

Page 19
 [YOUR COMPANY NAME]

7.5 Projected Balance Sheet

The table below presents the Pro Forma Balance Sheet for [YOUR COMPANY NAME]. In 2012, long-term
assets increase to $3.2 million as the Company invests in a new facility for $2.5 million and medical
equipment and furniture for $700,000. Depreciation for the improvements and furnishings reaches $158,187
by year’s end and $286,987 at the end of 2013. Thus, net worth grows from $269,045 in 2011 to $3,447,731
in 2012. Finally, total assets of $3,614,820 in 2013 are adjusted by total liabilities of $88,105 to bring net
worth to $3,526,715.

Table: Balance Sheet

Pro Forma Balance Sheet

2011 2012 2013
Assets

Current Assets
Cash $260,879 $377,647 $545,408
Accounts Receivable $67,900 $88,837 $133,899
Other Current Assets $22,500 $22,500 $22,500
Total Current Assets $351,279 $488,983 $701,807

Long-term Assets
Long-term Assets $29,387 $3,200,000 $3,200,000
Accumulated Depreciation $29,387 $158,187 $286,987
Total Long-term Assets $0 $3,041,813 $2,913,013
Total Assets $351,279 $3,530,796 $3,614,820

Liabilities and Capital 2011 2012 2013

Current Liabilities
Accounts Payable $28,367 $29,199 $34,238
Current Borrowing $53,867 $53,867 $53,867
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $82,234 $83,066 $88,105

Long-term Liabilities $0 $0 $0
Total Liabilities $82,234 $83,066 $88,105

Paid-in Capital $250,000 $3,450,000 $3,450,000

Retained Earnings ($111,269) ($65,955) ($92,269)
Earnings $130,314 $63,686 $168,984
Total Capital $269,045 $3,447,731 $3,526,715
Total Liabilities and Capital $351,279 $3,530,796 $3,614,820

Net Worth $269,045 $3,447,731 $3,526,715

Page 20
 [YOUR COMPANY NAME]

7.6 Business Ratios

The following table shows the projected business ratios. We expect to maintain healthy ratios for profitability, risk,
and return. The industry comparisons are for SIC 8011, Offices of Physicians.

Table: Ratios

Ratio Analysis
2011 2012 2013 Industry Profile
Sales Growth 18.25% 30.84% 50.72% 0.70%

Percent of Total Assets

Accounts Receivable 19.33% 2.52% 3.70% 4.20%
Other Current Assets 6.41% 0.64% 0.62% 60.33%
Total Current Assets 100.00% 13.85% 19.41% 65.65%
Long-term Assets 0.00% 86.15% 80.59% 34.35%
Total Assets 100.00% 100.00% 100.00% 100.00%

Current Liabilities 23.41% 2.35% 2.44% 37.05%

Long-term Liabilities 0.00% 0.00% 0.00% 47.73%
Total Liabilities 23.41% 2.35% 2.44% 84.78%
Net Worth 76.59% 97.65% 97.56% 15.22%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 95.36%
Selling, General & Administrative Expenses 76.41% 91.19% 84.49% 48.86%
Advertising Expenses 10.09% 8.30% 5.51% 0.93%
Profit Before Interest and Taxes 34.66% 13.33% 22.66% 9.58%

Main Ratios
Current 4.27 5.89 7.97 1.10
Quick 4.27 5.89 7.97 1.07
Total Debt to Total Assets 23.41% 2.35% 2.44% 84.78%
Pre-tax Return on Net Worth 69.19% 2.64% 6.85% 533.42%
Pre-tax Return on Assets 53.00% 2.58% 6.68% 81.18%

Additional Ratios 2011 2012 2013

Net Profit Margin 23.59% 8.81% 15.51% n.a
Return on Equity 48.44% 1.85% 4.79% n.a

Activity Ratios
Accounts Receivable Turnover 6.10 6.10 6.10 n.a
Collection Days 57 53 50 n.a
Accounts Payable Turnover 12.41 12.17 12.17 n.a
Payment Days 27 30 28 n.a
Total Asset Turnover 1.57 0.20 0.30 n.a

Debt Ratios
Debt to Net Worth 0.31 0.02 0.02 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a

Liquidity Ratios
Net Working Capital $269,045 $405,918 $613,702 n.a
Interest Coverage 36.21 17.89 45.82 n.a

Additional Ratios
Assets to Sales 0.64 4.89 3.32 n.a
Current Debt/Total Assets 23% 2% 2% n.a
Acid Test 3.45 4.82 6.45 n.a
Sales/Net Worth 2.05 0.21 0.31 n.a
Dividend Payout 0.61 1.33 0.53 n.a

Page 21
 Appendix

Table: Sales Forecast

Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Patient Fees $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504 $52,504
Patient Refunds ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470) ($6,470)
Total Sales $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034

Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Patient Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Patient Refunds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Direct Cost of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales

Page 1
 Appendix

Table: Personnel

Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RN's & Assistants $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496
Director of Fitness $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wellness Educational $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Specialist
Physician $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 3 3 3 3 3 3 3 3 3 3 3 3

Total Payroll $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496

Page 2
 Appendix

Table: Profit and Loss

Pro Forma Profit and

Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034
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 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Expenses
Payroll $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496
Marketing/Promotion $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647 $4,647
Depreciation $339 $339 $339 $339 $339 $339 $339 $339 $339 $339 $339 $339
Rent $353 $353 $353 $353 $353 $353 $353 $353 $353 $353 $353 $353
Utilities $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166
Insurance $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964 $5,964
Payroll Taxes 8% $445 $445 $445 $445 $445 $445 $445 $445 $445 $445 $445 $445
Other $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670 $11,670

Total Operating $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079 $30,079
Expenses

Profit Before Interest $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954 $15,954
and Taxes
EBITDA $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293 $16,293
Interest Expense $349 $449 $449 $449 $449 $449 $449 $449 $449 $449 $449 $449
Taxes Incurred $4,682 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652 $4,652

Net Profit $10,924 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854 $10,854
Net Profit/Sales 23.73% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58% 23.58%

Page 3
Appendix

Page 4
 Appendix

Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations

Cash Sales $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508 $11,508
Cash from Receivables $0 $1,151 $34,525 $34,525 $34,525 $34,525 $34,525 $34,525 $34,525 $34,525 $34,525 $34,525
Subtotal Cash from $11,508 $12,659 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034
Operations

Additional Cash Received

Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $12,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
(interest-free)
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 $0 $0 $0 $0 $250,000 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $11,508 $24,659 $46,034 $46,034 $296,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034 $46,034

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

Expenditures from
Operations
Cash Spending $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496 $5,496
Bill Payments $976 $29,277 $29,345 $29,345 $29,345 $29,345 $29,345 $29,345 $29,345 $29,345 $29,345 $29,345
Subtotal Spent on Operations $6,472 $34,773 $34,841 $34,841 $34,841 $34,841 $34,841 $34,841 $34,841 $34,841 $34,841 $34,841

Additional Cash Spent

Sales Tax, VAT, HST/GST $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Paid Out
Principal Repayment of $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment
Purchase Other Current $0 $0 $0 $0 $2,500 $20,000 $0 $0 $0 $0 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Page 5
 Appendix

Dividends $0 $0 $0 $0 $0 $40,000 $0 $0 $0 $0 $0 $40,000

Subtotal Cash Spent $6,472 $34,773 $34,841 $34,841 $37,341 $94,841 $34,841 $34,841 $34,841 $34,841 $34,841 $74,841

Net Cash Flow $5,037 ($10,114) $11,193 $11,193 $258,693 ($48,807) $11,193 $11,193 $11,193 $11,193 $11,193 ($28,807)
Cash Balance $11,564 $1,450 $12,643 $23,836 $282,529 $233,722 $244,915 $256,107 $267,300 $278,493 $289,686 $260,879

Table: Balance Sheet

Pro Forma
Balance Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances

Current Assets
Cash $6,527 $11,564 $1,450 $12,643 $23,836 $282,529 $233,722 $244,915 $256,107 $267,300 $278,493 $289,686 $260,879
Accounts $0 $34,525 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900 $67,900
Receivable
Other Current $0 $0 $0 $0 $0 $2,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500 $22,500
Assets
Total Current $6,527 $46,089 $69,349 $80,542 $91,735 $352,928 $324,121 $335,314 $346,507 $357,700 $368,893 $380,086 $351,279
Assets

Long-term
Assets
Long-term $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387 $29,387
Assets
Accumulated $25,316 $25,655 $25,995 $26,334 $26,673 $27,012 $27,352 $27,691 $28,030 $28,369 $28,709 $29,048 $29,387
Depreciation
Total Long- $4,071 $3,732 $3,393 $3,053 $2,714 $2,375 $2,036 $1,696 $1,357 $1,018 $679 $339 $0
term Assets
Total Assets $10,598 $49,821 $72,742 $83,596 $94,449 $355,303 $326,157 $337,010 $347,864 $358,718 $369,571 $380,425 $351,279

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

Current
Liabilities
Accounts $0 $28,299 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367 $28,367
Page 6
 Appendix

Payable
Current $41,867 $41,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867 $53,867
Borrowing
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal $41,867 $70,166 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234
Current
Liabilities

Long-term $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Total Liabilities $41,867 $70,166 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234 $82,234

Paid-in Capital $0 $0 $0 $0 $0 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
Retained ($31,269) ($31,269) ($31,269) ($31,269) ($31,269) ($31,269) ($71,269) ($71,269) ($71,269) ($71,269) ($71,269) ($71,269) ($111,269)
Earnings
Earnings $0 $10,924 $21,777 $32,631 $43,485 $54,338 $65,192 $76,046 $86,899 $97,753 $108,607 $119,460 $130,314
Total Capital ($31,269) ($20,345) ($9,492) $1,362 $12,216 $273,069 $243,923 $254,777 $265,630 $276,484 $287,338 $298,191 $269,045
Total Liabilities $10,598 $49,821 $72,742 $83,596 $94,449 $355,303 $326,157 $337,010 $347,864 $358,718 $369,571 $380,425 $351,279
and Capital

Net Worth ($31,269) ($20,345) ($9,492) $1,362 $12,216 $273,069 $243,923 $254,777 $265,630 $276,484 $287,338 $298,191 $269,045

Page 7