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 Table of Contents

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

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

Chart: Highlights...........................................................................................................................1
1.1 Objectives....................................................................................................................................1
1.2 Mission...........................................................................................................................................2
1.3 Keys to Success.........................................................................................................................2
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................3
2.2 Start-up Summary....................................................................................................................3
Table: Start-up..............................................................................................................................4
Chart: Start-up..............................................................................................................................5
3.0 Services.............................................................................................................................................5
3.1 Building Plan...............................................................................................................................5
3.1.1 First Floor.............................................................................................................................6
3.1.2 Second Floor.......................................................................................................................7
3.1.3 Third Floor............................................................................................................................8
3.1.4 Rooftop..................................................................................................................................9
3.1.5 Parking Lot.........................................................................................................................10
3.1.6 Front View..........................................................................................................................12
3.1.7 ER View...............................................................................................................................13
3.2 Revenue Breakdown..............................................................................................................15
3.2.1 Operation Theater Time................................................................................................15
3.2.2 Rental of Private and Semi-private Rooms...........................................................15
3.2.3 Rental of offices...............................................................................................................15
3.2.4 Rental of Pharmacy........................................................................................................16
3.2.5 Ambulance service fees................................................................................................16
3.2.6 Cafeteria Rental...............................................................................................................16
4.0 Market Summary.........................................................................................................................16
4.1 Market Segmentation............................................................................................................17
Table: Market Analysis..............................................................................................................20
Chart: Market Analysis (Pie)...................................................................................................20
4.2 Target Market Segment Strategy.....................................................................................20
4.3 Service Business Analysis....................................................................................................20
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4.3.1 Competition and Buying Patterns.............................................................................21

5.0 Strategy and Implementation Summary...........................................................................21
5.1 SWOT Analysis.........................................................................................................................21
5.1.1 Strengths............................................................................................................................21
5.1.2 Weaknesses.......................................................................................................................22
5.1.3 Opportunities....................................................................................................................22
5.1.4 Threats................................................................................................................................22
5.2 Competitive Edge....................................................................................................................22
5.3 Marketing Strategy.................................................................................................................22
5.4 Marketing Expenses...............................................................................................................24
5.5 Sales Strategy..........................................................................................................................24
5.5.1 Sales Forecast..................................................................................................................25
Table: Sales Forecast............................................................................................................26
Chart: Sales Monthly.............................................................................................................27
Chart: Sales by Year..............................................................................................................27
6.0 Management Summary.............................................................................................................27
6.1 Personnel Plan..........................................................................................................................29
7.0 Financial Plan................................................................................................................................29
7.1 Start-up Funding.....................................................................................................................30
Table: Start-up Funding...........................................................................................................30
7.2 Break-even Analysis...............................................................................................................30
Table: Break-even Analysis....................................................................................................31
Chart: Break-even Analysis....................................................................................................31
7.3 Projected Profit and Loss.....................................................................................................31
Table: Profit and Loss................................................................................................................32
Chart: Profit Monthly.................................................................................................................33
Chart: Profit Yearly.....................................................................................................................33
Chart: Gross Margin Monthly.................................................................................................34
Chart: Gross Margin Yearly.....................................................................................................34
7.4 Projected Cash Flow...............................................................................................................34
Table: Cash Flow.........................................................................................................................35
Chart: Cash...................................................................................................................................36
7.5 Projected Balance Sheet......................................................................................................36

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Table: Balance Sheet.................................................................................................................36

7.6 Business Ratios........................................................................................................................37
Table: Ratios.................................................................................................................................37
7.7 Long-term Plan........................................................................................................................38
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................6
Table: Balance Sheet...........................................................................................................................8

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1.0 Executive Summary

Chart: Highlights

1.1 Objectives

The objectives for the first years of operation include:

 To provide medical services that will exceed patients' expectations

 To provide surgeons and their patients with a state-of-the-art surgical theater and
necessary staff that ensures patients' safety and comfort.
 To provide other medical specialties with a state-of-the-art medical facility to examine,
diagnose and treat their patients. 
 To form a health care practice that can achieve operational profitability in 12 months
or less.
 To increase the number of patients served by 20% per year through superior medical
services, operational efficiency, deliver of quality customer service, marketing initiatives
and referrals.
 To develop a comprehensive website that will be able to facilitate bookings and online
payments.
 Collections of 95% or more and missed appointments under 5%
 Average visits per month of 100 to 250 patients within the first 10 months and 300+
patients by the beginning of the second year

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1.2 Mission

The mission of International Surgical Center Inc. is to promote the health and well-being by
providing an accessible, high-quality medical facility and support services to medical
practitioners which enhances their ability to care for their patients. 
International Surgical Center Inc. is committed to providing services that will exceed the
expectations of our customer which in turn will be translated into a commercially viable
business.

1.3 Keys to Success

Patients

 Patients' care and comfort is the core of ISCI approach to medical care. From admission to
discharge the patient's wellbeing is put first.
 Patients waiting area is aesthetically designed to be conveniently accessible, spacious and
relaxing.
 The aesthetic feel of the semi-private and private rooms are designed to evoke a feeling of
rejuvenation.
 Surgical theaters are equipped with ALL modern and state of the art instruments and
devices that would be needed by surgeons to perform their surgical procedures.
 ISCI will have adequate numbers of trained support staff whose responsibility will be to
ensure that patients receive optimal care and are comfortable.  
 ISCI has a conveniently located pharmacy on premises, which will be fully stocked with both
OTC and prescription medication for patients.

Staff and Office Organization

 ISCI recognizes that the administration staff is as crucial as the medical support staff,
physicians and surgeons in the success of the business. 
 ISCI will develop an incentive program which will allow both administrative and medical
support staff to benefit from profits earned.
 ISCI will be implementing an electronic record management system which will enhance the
staff to execute their function efficiently.
 ISCI will have an orientation program as well as continuous training for staff which will
facilitate professional and personal development.
 Create a streamlined office system to minimize patients' waiting time.

Finances

 Maintain a low overhead costs.

 Ensure that the facility and equipment are utilized as efficiently as possible. 
 Use the latest in electronic billing and collections technology to ensure customers are billed
promptly and accounts are settled within the board approved time limit. 
 Have available medical insurance facilities for accepting both local and international health
insurance.

Marketing and Sales

 Aggressively market and create our presence in the medical community

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 Network to obtain referrals from other professionals, such ER doctors, Specialists, Hospital
Admissions
 Promote a first world medical service at an affordable price point.
 Location that is has ease access to local airport which will facilitate patient transfer both
locally and internationally.

2.0 Company Summary

International Surgical Center Inc. was conceptualized by Mr. Radesh Singh who was inspired by
the booming economic developments in his native Guyana. As a successful entrepreneur he was
driven to identify an investment opportunity which would be able to benefit from the forecasted
economic growth of his native homeland. He shared his vision with a group of close friends who
immediately jumped at the opportunity of building this business and impacting the lives as
many   formed a corporation in Guyana. It was clear that there needed to be resource(s) that
would have the technical knowledge in the field of medicine and in particular surgical
specialization as well as the experience in building and running a medical /surgical practice. The
team approached prominent Regional Surgeon; Dr. Maurice Walrond who was sold on the vision
and eventually joined the ISCI team. Together the six board members will be responsible for
materializing the shared vision into a reality.

International Surgical Center Inc. will be an international standard surgical and medical facility
outfitted with state-of-the-art equipment and supported by highly trained staff that will be
utilized by local and international surgeons and other medical professionals. It is the vision of
ISCI to deliver a premium experience to the doctors utilizing the facility that will ultimately be
translated into a patient experience that is second to none in terms of safety, comfort and
customer service.  

Location and Facilities

The start-up requirements include purchase of suitable land for use by ISCI. The size of the
land will be approximately two acres.  The total building space will be approximately 6,000 sq.
feet and the parking lot size is 200' x 70'.  There is also a storage building which is 24 x 30 ft. 
The building should ideally be located located just off the main street with generous parking as
well as a wide driveway entrance for patient convenience.

2.1 Company Ownership

International Surgical Center Inc. will be created as a partnership owned and operated by a
board comprising partners, medical and management professionals.

2.2 Start-up Summary

It is estimated that start-up expenses will be $734,500. This amount of money will be used to
purchase land, office equipment, medical supplies, furniture, stationary, and other start-up
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expenses. We will also need approximately $100,000 for cash on hand at start-up. Expenses
and initial cash requirements will be funded by International Surgical Center Inc.

Our long-term assets of $525,000 represent the purchase price of the land described above. A
commercial bank will finance this purchase with a 15-year loan, guaranteed by land ownership
and other assets.

Table: Start-up

Start-up

Requirements

Start-up Expenses
Legal & Accounting $5,000
Insurance $10,000
Marketing $8,000
Travel & Communications $10,000
Business License & Fees $5,000
Medical Equipment $1,200,000
Office Supplies $5,000
Land Cost $1,000,000
Office Furniture $30,000
Regulatory Duties/CLIA $2,000
Construstion Cost $1,500,000
Operating Expenses - 1st Year $250,000
Contingency $100,000

Total Start-up Expenses $4,125,000

Start-up Assets
Cash Required $500,000
Other Current Assets $0
Long-term Assets $1,000,000
Total Assets $1,500,000

Total Requirements $5,625,000

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Chart: Start-up

3.0 Services

The revenue generating services which ISCI will provide are listed below:

•         Operation Theater time

•         Rental of private and semi-private rooms for in-patients

•         Rental of offices to doctors

•         Rental of pharmacy

•         Ambulance service fees

•         Cafeteria sales

3.1 Building Plan

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3.1.1 First Floor

3.1.2 Second Floor

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3.1.3 Third Floor

3.1.4 Rooftop

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3.1.5 Parking Lot

3.1.6 Front View

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3.1.7 ER View

3.2 Revenue Breakdown

3.2.1 Operation Theater Time

According to Shippert (2005) room rental fees for hospital operation theaters range from USD
$21.80 to USD $133.12 with an average of USD $62 per minute. ISCI utilized a conservative
approach in order to be able to offer a competitive operation theater fee structure. In order to
be competitive with other private entities locally ISCI will be charging USD $500.00 per hour.

ISCI will be opened for business 80 hours per week which translates into 160 hours of possible
operation theater time weekly and 720 operating hours per month. Due to time being required
for change over between operations ISCI estimates that 70% or 504 hours per month of the
opening hours will be considered as time that will be available for sale / rental.       

•         At full capacity rental will be collected for all 504 hours which will be available monthly;
this will generate USD $252,000.00

•         At 60% rental will be collected for 432 hours per month; this will generate USD
$216,000.00

•         At 50% rental will be collected for 360 hours and will generate USD $180,000.00

•         At 40% rental will be collected for 288 hours per month and will generate USD
$144,000.00

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3.2.2 Rental of Private and Semi-private Rooms

There will be eight (8) semi-private beds and three (3) private suites which will be available for
patients who need to be admitted for care. The semi-private room fee is USD $150.00 per
night, while the private room fee USD $200.00 per night.

•         At full occupancy the revenue generated will be USD $50,400.00 per month

•         At 60% occupancy the revenue generated will be USD $30,240.00 per month

•         At 30% occupancy the revenue generated will be USD $15,120.00 per month

•         At 10% occupancy the revenue generated will be USD $5,040.00 per month

3.2.3 Rental of offices

There are three (3) consultation rooms which will be available for rental to specialists to
conduct their clinics for an hourly fee of USD $25.00.

•         At full utilization the revenue generated will be USD $18,000.00 per month.

•         At 50% utilization the revenue generated will be USD $9000.00 per month.

•         At 20% utilization the revenue generated will be USD $3,600.00.

3.2.4 Rental of Pharmacy

There is a 210 square foot pharmacy which will be rented out to a private pharmacy at a rate of
USD $20.00 per square foot per month. This will generate USD $4,200.00 in rental revenue per
month.

3.2.5 Ambulance service fees

ISCI will have two fully outfitted ambulances which will primarily responsible for providing
transportation to patients in cases of emergency for a fee which will vary depending on the
location of pick-up and drop-off. Utilizing an estimated average cost of USD $50.00 per trip the
projected monthly revenue is approximately USD $6000.00.

3.2.6 Cafeteria Rental

The onsite cafeteria will be managed by the executive management team if ISCI.  It is
estimated that the cafeteria will generate approximately USD $2500.00 per month.

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4.0 Market Summary

Health care in Guyana is provided by both public and private sectors. Both sectors are
coordinated and regulated by the Ministry of Health to ensure a uniform health care system
across the country. However, public health care is decentralised throughout the country and is
administered by the Regional Democratic Councils with ministerial oversight vested in the
Ministry of Communities.

The public health care system is structured so that its proper functioning depends intimately on
a process of referrals. Except for serious emergencies, patients are seen first at the lower
levels, and those with problems that cannot be treated at those levels are referred to higher
level in the system, but in practice, many patients by-pass the lower levels.

While there have been some remarkable improvements in public health care during the last two
decades, there are still concerns that Guyana's health care system is grossly inadequate in
terms of services to the public. The public health sector is not sufficiently able to offer certain
sophisticated and specialised medical services, due to the lack of the technology and medical
specialists in the country.

Barriers such as long waiting time, shortage of doctors and nurses, outdated or in adequate
medical equipment, inadequate infrastructure, inefficient systems, sloppy management, lack of
drugs and poor customer relations present a significant challenge to persons accessing medical
care. This barrier is acutely noticeable in outlying communities as most of the better staffed and
equipped hospitals are located in or around Georgetown.  This has not only placed the health of
patients in jeopardy as they seek medical attention, but unfortunately, it has also led to several
deaths. It is common for many senior public officials and the wealthy to constantly seek
medical attention in the United States, Canada, Trinidad and Tobago and Cuba. This is because
they recognise that Guyana simply lacks a certain level and quality of service. Overall, Guyana's
public health care system is in need of improvements as it relates to the quality and variety of
specialty services offered.

According to a WHO (World Health Organization) publication by Dubois & Ingabire there is a
need for expanding the primary health care (PHC) delivery system aimed at improving the
population's access to cost-effective health services and at the same time meeting the
increasing demand for high end health care in the nation. Specifically, the expatriate population
which is predicted to grow significantly in the next decade as more business opportunities
open in Guyana with the maturing of the now young Oil production industry.

4.1 Market Segmentation

As at Jan 2019 the United Nations reported Guyana's population to be 784,912 with
approximately

The largest age group in our area in 2018 was between 40-49, with 31,714 people. Residents
over 60 make up a higher percentage of the population in here than the regional average. Since
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we will be open to patients of all ages, our market segmentation breaks potential patients out
into local population within 15 miles and patients from the surrounding region within 70 miles.

There are currently 4-5 family practitioners in town, with 15,000 people living within 4 miles.
These are favorable statistics that offer an excellent patient-to-doctor ratio, in addition to the
limited number of surrounding family medical practices.

Table: Market Analysis

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Potential Customers 1% 74,798 75,546 76,301 77,064 77,835 1.00%
Local Population 1% 313,429 316,563 319,729 322,926 326,155 1.00%
Surrounding Region 1% 434,555 438,901 443,290 447,723 452,200 1.00%
0% 0 0 0 0 0 0.00%
Total 1.00% 822,782 831,010 839,320 847,713 856,190 1.00%

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Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

International Surgical Center Inc. will locate and focus its efforts on the entire local population
(within 35 miles). Our segmentation strategy is geographic for a number of reasons:

 The rural and semi-rural patients of this area will not, and often cannot, travel more than 30
miles to see a doctor. They would rather "wait it out" on all but urgent matters.
 Our medical center is a general family practice, and will treat patients of all ages, incomes,
physical abilities, races, and ethnicities. As a family medical center, there is no need to
create marketing materials targeted at only one or two of these groups, but we can appeal
to all with a similar message.
 The expected growth of the local population, at 3.5% a year, makes this an ideal location
for a broadly geographic marketing approach.

4.3 Service Business Analysis

International Surgical Center Inc. is part of the larger medical industry, in particular "Offices
and medical centers of Medical Doctors."

Private medical practices are numerous, generally small (1 - 4 physicians) and may provide
either general or specialist services. They are well-suited to rural and semi-rural areas, which
often do not have a large enough population to make a hospital or larger medical group a viable
proposition.

There are currently five family practitioners in this town of 15,000, with 160,000 potential
patients within 35 miles. These are favorable statistics that offer an excellent patient-to-doctor
ratio for marketing efforts.

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4.3.1 Competition and Buying Patterns

In general, competition among fellow practitioners our town and the surrounding area is small
due to the type of services on offer. The growing population base and the limited number of
doctors creates a great potential for meeting our patient load goals.

When choosing a doctor, most patients look for someone knowledgeable and skilled who will
listen carefully to their health concerns. They are more likely to return to a doctor
whose location and hours are convenient and accessible, who have short waiting times for
getting appointments and sitting in the waiting room, whose staff is friendly and helpful, and
who work effectively with their insurance provider.

The relative importance of each of these factors will vary by patients' age range, medical needs,
and level of sophistication in managing their own health.

5.0 Strategy and Implementation Summary

Our strategy for a successful start is based on quickly creating a high profile and name
recognition within the community through public speaking, networking, promotional events,
and print advertising. These marketing tools will be followed up with a sales strategy that relies
on a pleasant and accessible location, well-trained, highly motivated employees, and a
commitment to provide the best care and patient experience possible in every interaction. The
advantage of this strategy is that every element of it is within our control.

With few local doctors for this community, competition will be less of a concern than will
education of potential patients about the benefits of seeing any doctor at all, and encouraging
preventive health care.

5.1 SWOT Analysis

5.1.1 Strengths
Construction Expertise
Medical / Surgical Expertise
Start-up Entrepreneural Expertise
Established Relationships with Medical Equipment and Medical Supplies Vendors
Correlation to the Public Health Medium / Long Term strategic vision of the Government of
Guyana
 
 

5.1.2 Weaknesses

Lack of Local buy-in from local Medical Practioners Fraternity

Lack of adequate start-up / Venture Capital Investment required
Uncertain Political Climate
Availability of surgical specialists due to binding employment contracts between doctors and
hospitals
 

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5.1.3 Opportunities

Underserved local public health system

Ready supply of qualified nurses  

5.1.4 Threats

5.2 Competitive Edge

International Surgical Center Inc. will have an competitive edge based on position, timing,
quality of care, availability to patient, after-hour care, weekend hours, quality time, pleasant
staff and office environment. All of these factors will result in patient satisfaction and high
referral rates.

Competition among similar styles facilities in the surrounding area is small. The growing
population base and the limited number of internationally recognized doctors creates a strong
opportunity.

5.3 Marketing Strategy

Upon opening up a new General Practice such as International Surgical Center Inc., it is
important to create momentum before the actual day of opening. In conjunction with a
Marketing and Advertising Group, this momentum will be created 1 month prior to the opening
date. We will first try to get our name recognized in conjunction with promoting the location
and the services we can offer.

We feel that the most important way to become established is create a presence among the
community. The best way to create this is through a combination of the strategies outlined
below, in order to accomplish greater visibility to prospective patients and institutions.

Marketing Materials

All written materials used to promote the medical office will share a professional and polished
look and feel. Our office will carry our own leaflets, to be made available to all patients,
containing factual information about the services provided. This leaflet will also contain some
biographical information, location, photos and other promotional material. This leaflet will be
used to help promote International Surgical Center Inc. both as handouts for patients within the
medical center, as well as potential patients outside the medical center.

We will have an area where health information will be displayed and dispersed in the form of
packets and brochures. In addition, patient information handouts will also be available via the
EMR system and the website.

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There will be a number of patient-friendly brochures, videos, mailings, and other materials used
to promote the medical office. We will have multiple ads in magazines and newspapers, as well
as a commercial to announce the opening of .

International Surgical Center Inc. will employ commercials, mail-outs that may include new
patient discounts, yellow pages, magazines, newspapers, TV, social media and other forms of
advertising.

Promotional Events

We will set up an open house for surrounding businesses and potential patients to let them see
our new medical center. During these open houses, we will provide HTN readings, glucose
testing, and much more. We will consider having a blood drive in coordination with the local
hospitals and Red Cross.

International Surgical Center Inc. will hold health information workshops with the help of
community organizations for the general public at International Surgical Center Inc., as well as
in local and public areas of interest. Our goal will be to bring new patients into the medical
center but to also create word of mouth. New patients will have time to ask questions about
medicine and new patients will be introduced to the new medical center. Our goal is to meet
and promote the medical center to as many people before the opening of the medical center, as
well as after the medical center is open.

Networking

International Surgical Center Inc. will become a member of the business community. We will
join and attend key business events that will help promote our new business. We will also
promote ourselves in local business directories. We will also network through various
organizations, such as local churches, the Lions club, the Rotary club, as well as the country
club in order to promote and generate further interest in our services.

International Surgical Center Inc. will incorporate reciprocal advertising with other nearby
healthcare facilities, such as opticians, chiropractors, and hospitals. International Surgical
Center Inc. will obtain additional patients via ER referrals.

Accessibility

International Surgical Center Inc. will adopt several strategies to ensure patient satisfaction and
word of mouth advertising. First our hours will include after after-hours care and allow patients
to come into medical center after they get off work. We will also be open every day of the
week.

5.4 Marketing Expenses

Print Distribution:

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Newspaper A: A newspaper that serves the local region. A weekly circulation reaching
approximately 40,000 homes and apartments. Additional papers circulated to businesses for
handout distribution.  Estimated ad space for an 8 inch color ad: $445.00 per circulation.
Requests for placement 25% surcharge. Discounts given for frequency.

Magazine B: a monthly magazine that is mailed to approximately 40,000 residents within our
area. Quarter Page Ad: $656.00 / Ad with 3 month contract, $627.00/ Ad with 6 month
contract, $568.00/Ad with 12 month contract.

Professional Directory C: They will have advertising opportunities in their Professional Directory
that is published in the Fall. I do not have pricing details guaranteed. Estimate a Quarter Page
Ad: $1,100.00/Year

Commercial Advertising:
Effective campaign would include 100-150 spots per month. Several cable channels to target.
30 second spots range between: $50-75.00/ Spot. Primetime setting is $65.00- $100.00/Spot.

Direct Mail Marketing:

Targeting a specific prospect and demographic. Designing a targeted campaign, printing, and
mail processing. Mailing to the same market 3 times over a six month period.

5.5 Sales Strategy

The sales process begins when a patient calls us, comes in for an appointment, or accompanies
a family member to an appointment. In every interaction, we must be accessible, courteous,
knowledgeable, and helpful.

Location:
The medical center will be located in a premium location to support a world class facility.
Patients will easily be able to find the medical center. Signs will be posted in strategic places to
help assure patients comfort in finding our location. We feel that our location is a great asset
and will strengthen our future success.

Flexible Hours:
International Surgical Center Inc. will adopt several strategies to ensure patient satisfaction and
word of mouth advertising. First, our hours will include after-hours care and allow patients to
come into medical center after they get off work. We will also take walk-ins in order to provide
the best possible convenience for the patient.

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Environment, Appearance, Etiquette and Overall Patient Experience:

The building will have a bright and cheerful appearance with flowers and plants to decorate the
outside and inside of the office. There will be colorful and informative signs that will help them
find the medical center. Upon arriving and entering the medical center the patient will be
greeted with a smile.

Patients' needs and concerns will be addressed and they will be asked politely to have a seat in
the waiting room. Upon arrival to the waiting room they will experience comfortable seating,
good lighting, soft music or T.V, reading material and the general comforts appreciated by any
patient. The walls will have beautiful art and there may even be a fish tank. The medical center
rooms will be professional, clean and organized and the walls will be decorated with medical
posters that will help explain the most common conditions. During the consultation the doctor
will have a white coat and tie and will conduct himself in a professional and courteous manner.
After the consultation, the doctor or the nurse will escort the patient to the front where all
further arrangements will be made. A courtesy reminder card will be filled out for patients'
convenience.

Pricing Strategy:
The pricing for consultations and visits, as well as any procedures will be billed according to
industry standards. We will be consistent with our competitors and the national averages. Most
pricing will be dependent upon agreements with the largest insurers we intend to target.

Sales Literature:

The medical center will provide multiple education brochures. We will have an area where
information will be displayed and dispersed in the form of packets and brochures. In addition,
information handouts will also be available via the EMR system and website.

5.5.1 Sales Forecast

The first month prior to opening will be used to get the new office in order, set up appointments
and begin marketing activities. The following months, International Surgical Center Inc. will
continue advertising and will use less assistance from the initial investor until the second year,
when the subsidy will cease. The following tables basically represent the amount of money that
the practice expects to be making.

Note that we list no direct cost of sales. This is standard for the medical office industry, since all
medical supplies and waste disposal (needles, gauze, etc.) are handled as monthly supply
orders, not inventory. These expenses can be found in the projected Profit and Loss statement.

Table: Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3 Year 4 Year 5

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Unit Sales
Operation Theater Time 3,456 4,000 4,300 4,500 5,000
Rental of Private Rooms 216 260 310 330 360
Rental of Semi-private Rooms 216 260 310 330 360
Rental of Office 4,320 4,800 5,400 7,800 8,640
Rental of Pharmacy 12 12 12 12 12
Ambulance Service Fees 67 360 480 600 720
Cafeteria Rental 12 12 12 12 12
Total Unit Sales 8,299 9,704 10,824 13,584 15,104

Unit Prices Year 1 Year 2 Year 3 Year 4 Year 5

Operation Theater Time $500.00 $500.00 $500.00 $500.00 $650.00
Rental of Private Rooms $200.00 $200.00 $200.00 $200.00 $250.00
Rental of Semi-private Rooms $150.00 $150.00 $150.00 $150.00 $200.00
Rental of Office $25.00 $25.00 $30.00 $35.00 $40.00
Rental of Pharmacy $4,200.00 $4,200.00 $4,200.00 $4,200.00 $5,000.00
Ambulance Service Fees $50.00 $50.00 $55.00 $60.00 $65.00
Cafeteria Rental $2,500.00 $2,500.00 $2,500.00 $2,500.00 $3,000.00

Sales
Operation Theater Time $1,728,000 $2,000,000 $2,150,000 $2,250,000 $3,250,000
Rental of Private Rooms $43,200 $52,000 $62,000 $66,000 $90,000
Rental of Semi-private Rooms $32,400 $39,000 $46,500 $49,500 $72,000
Rental of Office $108,000 $120,000 $162,000 $273,000 $345,600
Rental of Pharmacy $50,400 $50,400 $50,400 $50,400 $60,000
Ambulance Service Fees $3,350 $18,000 $26,400 $36,000 $46,800
Cafeteria Rental $30,000 $30,000 $30,000 $30,000 $36,000
Total Sales $1,995,350 $2,309,400 $2,527,300 $2,754,900 $3,900,400

Direct Unit Costs Year 1 Year 2 Year 3 Year 4 Year 5

Operation Theater Time $150.00 $150.00 $150.00 $150.00 $195.00
Rental of Private Rooms $40.00 $40.00 $40.00 $40.00 $50.00
Rental of Semi-private Rooms $30.00 $30.00 $30.00 $30.00 $40.00
Rental of Office $1.25 $1.25 $1.50 $1.75 $2.00
Rental of Pharmacy $210.00 $210.00 $210.00 $210.00 $250.00
Ambulance Service Fees $10.00 $10.00 $11.00 $12.00 $13.00
Cafeteria Rental $125.00 $125.00 $125.00 $125.00 $150.00

Direct Cost of Sales

Operation Theater Time $518,400 $600,000 $645,000 $675,000 $975,000
Rental of Private Rooms $8,640 $10,400 $12,400 $13,200 $18,000
Rental of Semi-private Rooms $6,480 $7,800 $9,300 $9,900 $14,400
Rental of Office $5,400 $6,000 $8,100 $13,650 $17,280
Rental of Pharmacy $2,520 $2,520 $2,520 $2,520 $3,000
Ambulance Service Fees $670 $3,600 $5,280 $7,200 $9,360
Cafeteria Rental $1,500 $1,500 $1,500 $1,500 $1,800
Subtotal Direct Cost of Sales $543,610 $631,820 $684,100 $722,970 $1,038,840

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Chart: Sales Monthly

Chart: Sales by Year

6.0 Management Summary

International Surgical Center Inc. will have employees based on an interview ans selection basis
by the board. They will be paid both hourly and monthly wages and have health and dental
benefits. As the practice grows, we will add additional personnel to help with referrals and
additional responsibilities that will be needed at that time.

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We will create a policy and procedures manual that will act as a guide and reference to sick
pay, leave, vacation, hourly wages, payment, etc. The philosophies and guidelines in this
manual will help maintain proper organizational structure.

There will be a mandatory staff meeting on Wednesdays at 12:00 noon or as decided by the
Director of Medical Services (DMS). There will be a pre-written list of items that will address
ways to improve the practice. Everyone is expected to attend. All employees, including the
doctor, will be expected to continue to better themselves in regards to both skills and
knowledge. The staff of the medical center will have specific duties that they will perform on a
daily basis. They will be responsible for their individual duties and must complete them in a
systematic time-efficient manner.

Once a month, management will meet with each employee individually, and review their goals
and performance for the month. Employees will have access to administrative consultants at
ISCI, and will be expected to follow the suggestions that come out of joint meetings with the
consultants. Employees who consistently do a poor job will be written up and after two write-
ups will be put on suspension. If the employee fails to correct the problem, then that employee
will be dismissed. All write-ups will occur in the presence of a witness and will be recorded.

The management team who are also part of the company registered in Guyana is made up of
the following persons.

Mr. Radesh Singh - Mr. Singh is a successful businessman in Barbados and Guyana. He has
one of the biggest construction companies in Barbados and associated companies that deals
with home improvement and manufacturing. 

Mr. Gavin Bovell - Mr Bovell is an accomplished financial management specialist whose inputs
into business development will be an asset to the company.

Ms. Ann Narine - Mrs. Narine is a successful business woman in the United States and
Guyana. Her unique business background and networking successes are vital and important in
the area of operations of the company.

Mr. Andre Budhan - Mr. Budhan is an accomplished business manager with experiences in a

wide variety of business development and implementation projects.

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Dr Andre Yousuff - Dr. Yusuff experience in the medical field as an Orthopedic Surgeon is
vital in the successful running of the projected medical facility.

Dr. Maurice Walrond - Dr. Walrond is a successful medical director who has managed
numerous medical facilities. Hi experience as a medical director is essential for the success of
the venture.

6.1 Personnel Plan

Employees will enjoy full medical and dental benefits. They will have a good salary that
corresponds to their level of skill and total contribution to the medical practice.  As our business
grows and become stronger, we will offer a IRA plan. The final goal is to create a profit-sharing
opportunity in which to foster loyalty, longevity and contentment in the workplace.

7.0 Financial Plan

It is estimated that start-up expenses will be $22,732. This amount of money will be used to
purchase office equipment, medical supplies, furniture, stationary, and other start-up expenses.
This amount, and a starting cash balance of $10,000, will be financed by International Surgical
Center Inc.

In addition, we are in the process of acquiring land worth $150,000 with a 15 year mortgage,
which will be repaid from the company's cash flows. As a sole proprietorship, this loan is
guaranteed by Radseh Singh's personal assets, and International Surgical Center Inc. does not
assume responsibility for it.

The physician's salary will be paid by General Medical throughout the first year. They will also
provide us with $24,000 a month for business expenses, for 12 months.

At the end of the first year, subsidies from General Medical will end. Although sales are
projected to increase steadily, and the physician will take reduced salary in the second through
fourth years, we project a loss in the second and third years. This is due to the loss of expense
subsidies, and the additional expense of the physician's salary and related taxes. We expect to
begin breaking even in the fourth year, and have budget a cash balance to carry us through the
years of loss.

Important notation/limitations in viewing the financial plan:

1. The physician salary is considered a constant in the first year and therefore has not been
included in this overall financial plan.

2. The $32,732 in start-up subsidies and the $500,000 in first-year loans is subject to

reimbursement unless International Surgical Center Inc. fails...which will not happen.
"Failure" is defined in the grant agreement as inability to achieve patient load goals for five
months in a row during the first year.

7.1 Start-up Funding

The start-up requirements, with the exception of the building loan, are to be financed by a bank
of International Surgical Center Inc. choice. This is in addition to the $500,000 they will be
providing over a 12 month period as expense subsidies in the first year, and the physician's
salary for the first year.
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The purchase of the land will be financed by Radesh Singh and added to liabilities. This loan will
be repaid from the medical center's cash flows and guaranteed with group assets.

Table: Start-up Funding

Start-up Funding
Start-up Expenses to Fund $4,125,000
Start-up Assets to Fund $1,500,000
Total Funding Required $5,625,000

Assets
Non-cash Assets from Start-up $1,000,000
Cash Requirements from Start-up $500,000
Additional Cash Raised $0
Cash Balance on Starting Date $500,000
Total Assets $1,500,000

Liabilities and Capital

Liabilities
Current Borrowing $0
Long-term Liabilities $2,000,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $2,000,000

Capital

Planned Investment
Owner $90,000
Investor $0
Additional Investment Requirement $3,535,000
Total Planned Investment $3,625,000

Loss at Start-up (Start-up Expenses) ($4,125,000)

Total Capital ($500,000)

Total Capital and Liabilities $1,500,000

Total Funding $5,625,000

7.2 Break-even Analysis

The Break-even Analysis shows that in the first year (with no physician salary), we need bring
in $11,605 in revenue per month to break even. We will pass this mark by the sixth month.

However, in the second and third year, with increased expenses including the physician's
salary, and increased patient load, we will need to bring in roughly $21,400 per month to break
even. We do not anticipate reaching this level of patient care payment until the middle of
the third year, which will end with a modest profit.

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Table: Break-even Analysis

Break-even Analysis

Monthly Units Break-even 653

Monthly Revenue Break-even $157,059

Assumptions:
Average Per-Unit Revenue $240.43
Average Per-Unit Variable Cost $65.50
Estimated Monthly Fixed Cost $114,270

Chart: Break-even Analysis

7.3 Projected Profit and Loss

The profit and loss statement shows our increasing ability to cover the expenses of the business
over the first year. Although we will operate at a loss for much of this year, our cash balance
will be maintained by subsidies from General Medical.

In the second year, International Surgical Center Inc. will assume the full expense of the
physician and board members salary, as well as related payroll taxes. This increase, combined
with small increases in operating expenses due to increased patient load, will keep us operating
at a loss in the second year, but we expect to begin turning a small profit in the middle of the
third year. Again, these losses will not cause us to go into a negative cash position at any point.

Without the investor's compensation, we would show a profit of $85,000 in the second year,
and $114,000 in the third year. Should patient load not meet expectations in these years,
the board will review the operations to keep the business on track.
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Table: Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3 Year 4 Year 5
Sales $1,995,350 $2,309,400 $2,527,300 $2,754,900 $3,900,400
Direct Cost of Sales $543,610 $631,820 $684,100 $722,970 $1,038,840
Other Costs of Sales $0 $0 $0 $0 $0
Total Cost of Sales $543,610 $631,820 $684,100 $722,970 $1,038,840

Gross Margin $1,451,740 $1,677,580 $1,843,200 $2,031,930 $2,861,560

Gross Margin % 72.76% 72.64% 72.93% 73.76% 73.37%

Expenses
Payroll $207,600 $259,200 $259,200 $259,200 $267,000
Marketing/Promotion $60,000 $60,000 $60,000 $60,000 $60,000
Depreciation $0 $0 $0 $0 $0
Medical Supplies $600,000 $600,000 $600,000 $600,000 $600,000
Administrative Expenses $60,000 $60,000 $60,000 $60,000 $60,000
Mortage $333,000 $333,000 $333,000 $333,000 $333,000
Utilities $55,500 $55,500 $55,500 $55,500 $55,500
Insurance $24,000 $24,000 $24,000 $24,000 $24,000
Payroll Taxes $31,140 $38,880 $38,880 $38,880 $40,050
Other $0 $0 $0 $0 $0

Total Operating Expenses $1,371,240 $1,430,580 $1,430,580 $1,430,580 $1,439,550

Profit Before Interest and Taxes $80,500 $247,000 $412,620 $601,350 $1,422,010
EBITDA $80,500 $247,000 $412,620 $601,350 $1,422,010
Interest Expense $200,000 $200,000 $200,000 $200,000 $200,000
Taxes Incurred $0 $14,100 $63,786 $120,405 $366,603

Other Income
Other Income Account Name $0 $0 $0 $0 $0
Other Income Account Name $0 $0 $0 $0 $0
Total Other Income $0 $0 $0 $0 $0

Other Expense
Contingency $0 $0 $0 $0 $0
Other Expense Account Name $0 $0 $0 $0 $0
Total Other Expense $0 $0 $0 $0 $0

Net Other Income $0 $0 $0 $0 $0

Net Profit ($119,500) $32,900 $148,834 $280,945 $855,407
Net Profit/Sales -5.99% 1.42% 5.89% 10.20% 21.93%

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Chart: Profit Monthly

Chart: Profit Yearly

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Chart: Gross Margin Monthly

Chart: Gross Margin Yearly

7.4 Projected Cash Flow

This table shows the ongoing financial relationship between International Surgical Center
Inc. will receive $24,000 dollars a month to subsidize business expenses over the first 12
months. This plan does not show physician's compensation for the first year, which will be paid
directly from ISCI.

Table: Cash Flow

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Pro Forma Cash Flow

Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received

Cash from Operations

Cash Sales $1,995,350 $2,309,400 $2,527,300 $2,754,900 $3,900,400
Subtotal Cash from Operations $1,995,350 $2,309,400 $2,527,300 $2,754,900 $3,900,400

Additional Cash Received

Non Operating (Other) Income $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Received $279,349 $323,316 $353,822 $385,686 $546,056
New Current Borrowing $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0
Subtotal Cash Received $2,274,699 $2,632,716 $2,881,122 $3,140,586 $4,446,456

Expenditures Year 1 Year 2 Year 3 Year 4 Year 5

Expenditures from Operations

Cash Spending $207,600 $259,200 $259,200 $259,200 $267,000
Bill Payments $1,751,011 $2,007,734 $2,110,885 $2,206,907 $2,731,699
Subtotal Spent on Operations $1,958,611 $2,266,934 $2,370,085 $2,466,107 $2,998,699

Additional Cash Spent

Non Operating (Other) Expense $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $279,349 $323,316 $353,822 $385,686 $546,056
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0
Subtotal Cash Spent $2,237,960 $2,590,250 $2,723,907 $2,851,793 $3,544,755

Net Cash Flow $36,739 $42,466 $157,215 $288,793 $901,701

Cash Balance $536,739 $579,206 $736,420 $1,025,214 $1,926,914

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Chart: Cash

7.5 Projected Balance Sheet

The Balance Sheet shows our liabilities and assets, including the cumulative Cash Balance from
the previous table. The Paid-in Capital of $320,732 represents subsidies from International
Surgical Center Inc. during the Start-up period and the first year of operations. This is a grant,
and does not have to be repaid unless the medical center fails - defined in the grant agreement
as failure to achieve patient load goals for five months in a row.

The change in Cash Balance in the second and third years reflects the end of the first year
subsidies from General Medical, and International Surgical Center Inc.'s payment of the
physician's compensation. This decrease in assets is balanced by the repayment of our building
loan. We expect Net Worth to begin rising again in years four and five.

Table: Balance Sheet

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5
Assets

Current Assets
Cash $536,739 $579,206 $736,420 $1,025,214 $1,926,914
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $536,739 $579,206 $736,420 $1,025,214 $1,926,914

Long-term Assets
Long-term Assets $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Accumulated Depreciation $0 $0 $0 $0 $0
Total Long-term Assets $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Total Assets $1,536,739 $1,579,206 $1,736,420 $2,025,214 $2,926,914

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

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Current Liabilities
Accounts Payable $156,239 $165,805 $174,186 $182,035 $228,328
Current Borrowing $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0
Subtotal Current Liabilities $156,239 $165,806 $174,186 $182,035 $228,328

Long-term Liabilities $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000

Total Liabilities $2,156,239 $2,165,806 $2,174,186 $2,182,035 $2,228,328

Paid-in Capital $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000

Retained Earnings ($4,125,000) ($4,244,500) ($4,211,600) ($4,062,766) ($3,781,821)
Earnings ($119,500) $32,900 $148,834 $280,945 $855,407
Total Capital ($619,500) ($586,600) ($437,766) ($156,821) $698,586
Total Liabilities and Capital $1,536,739 $1,579,206 $1,736,420 $2,025,214 $2,926,914

Net Worth ($619,500) ($586,600) ($437,766) ($156,821) $698,586

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 8011, Offices and medical centers of Medical
Doctors, are shown for comparison.

Table: Ratios

Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Industry Profile
Sales Growth n.a. 15.74% 9.44% 9.01% 41.58% 0.00%

Percent of Total Assets

Other Current Assets 0.00% 0.00% 0.00% 0.00% 0.00% 100.00%
Total Current Assets 34.93% 36.68% 42.41% 50.62% 65.83% 100.00%
Long-term Assets 65.07% 63.32% 57.59% 49.38% 34.17% 0.00%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Current Liabilities 10.17% 10.50% 10.03% 8.99% 7.80% 0.00%

Long-term Liabilities 130.15% 126.65% 115.18% 98.76% 68.33% 0.00%
Total Liabilities 140.31% 137.15% 125.21% 107.74% 76.13% 0.00%
Net Worth -40.31% -37.15% -25.21% -7.74% 23.87% 100.00%

Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Gross Margin 72.76% 72.64% 72.93% 73.76% 73.37% 0.00%
Selling, General & Administrative 78.75% 71.22% 67.04% 63.56% 51.43% 0.00%
Expenses
Advertising Expenses 3.01% 2.60% 2.37% 2.18% 1.54% 0.00%
Profit Before Interest and Taxes 4.03% 10.70% 16.33% 21.83% 36.46% 0.00%

Main Ratios
Current 3.44 3.49 4.23 5.63 8.44 0.00
Quick 3.44 3.49 4.23 5.63 8.44 0.00
Total Debt to Total Assets 140.31% 137.15% 125.21% 107.74% 76.13% 0.00%
Pre-tax Return on Net Worth 19.29% -8.01% -48.57% -255.93% 174.93% 0.00%
Pre-tax Return on Assets -7.78% 2.98% 12.24% 19.82% 41.75% 0.00%

Additional Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Net Profit Margin -5.99% 1.42% 5.89% 10.20% 21.93% n.a
Return on Equity 0.00% 0.00% 0.00% 0.00% 122.45% n.a

Activity Ratios
Accounts Payable Turnover 12.21 12.17 12.17 12.17 12.17 n.a
Payment Days 27 29 29 29 27 n.a
Total Asset Turnover 1.30 1.46 1.46 1.36 1.33 n.a

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Debt Ratios
Debt to Net Worth 0.00 0.00 0.00 0.00 3.19 n.a
Current Liab. to Liab. 0.07 0.08 0.08 0.08 0.10 n.a

Liquidity Ratios
Net Working Capital $380,500 $413,400 $562,234 $843,179 $1,698,586 n.a
Interest Coverage 0.40 1.23 2.06 3.01 7.11 n.a

Additional Ratios
Assets to Sales 0.77 0.68 0.69 0.74 0.75 n.a
Current Debt/Total Assets 10% 10% 10% 9% 8% n.a
Acid Test 3.44 3.49 4.23 5.63 8.44 n.a
Sales/Net Worth 0.00 0.00 0.00 0.00 5.58 n.a
Dividend Payout 0.00 0.00 0.00 0.00 0.00 n.a

7.7 Long-term Plan

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Table: Sales Forecast

Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Unit Sales
Operation Theater Time 288 288 288 288 288 288 288 288 288 288 288 288
Rental of Private Rooms 18 18 18 18 18 18 18 18 18 18 18 18
Rental of Semi-private Rooms 18 18 18 18 18 18 18 18 18 18 18 18
Rental of Office 360 360 360 360 360 360 360 360 360 360 360 360
Rental of Pharmacy 1 1 1 1 1 1 1 1 1 1 1 1
Ambulance Service Fees 2 2 2 4 4 4 6 6 6 9 10 12
Cafeteria Rental 1 1 1 1 1 1 1 1 1 1 1 1
Total Unit Sales 688 688 688 690 690 690 692 692 692 695 696 698

Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Operation Theater Time $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00
Rental of Private Rooms $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00
Rental of Semi-private Rooms $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00
Rental of Office $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00 $25.00
Rental of Pharmacy $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00 $4,200.00
Ambulance Service Fees $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00 $50.00
Cafeteria Rental $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00 $2,500.00

Sales
Operation Theater Time $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000 $144,000
Rental of Private Rooms $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600
Rental of Semi-private Rooms $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700 $2,700
Rental of Office $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000
Rental of Pharmacy $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200 $4,200
Ambulance Service Fees $100 $100 $100 $200 $200 $200 $300 $300 $300 $450 $500 $600
Cafeteria Rental $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total Sales $166,100 $166,100 $166,100 $166,200 $166,200 $166,200 $166,300 $166,300 $166,300 $166,450 $166,500 $166,600

Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Operation Theater Time 30.00% $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00 $150.00
Rental of Private Rooms 20.00% $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00
Rental of Semi-private Rooms 20.00% $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00
Rental of Office 5.00% $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25
Rental of Pharmacy 5.00% $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00 $210.00
Ambulance Service Fees 20.00% $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
Cafeteria Rental 5.00% $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00 $125.00

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 Appendix
Direct Cost of Sales
Operation Theater Time $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200 $43,200
Rental of Private Rooms $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720 $720
Rental of Semi-private Rooms $540 $540 $540 $540 $540 $540 $540 $540 $540 $540 $540 $540
Rental of Office $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Rental of Pharmacy $210 $210 $210 $210 $210 $210 $210 $210 $210 $210 $210 $210
Ambulance Service Fees $20 $20 $20 $40 $40 $40 $60 $60 $60 $90 $100 $120
Cafeteria Rental $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Subtotal Direct Cost of Sales $45,265 $45,265 $45,265 $45,285 $45,285 $45,285 $45,305 $45,305 $45,305 $45,335 $45,345 $45,365

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Table: Personnel

Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Administrator $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Executive Assistant $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Nurse 1 (Supervisor) $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Nurse 2 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 3 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 4 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 5 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 6 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 7 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Nurse 8 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Inserted Row $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Inserted Row $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Inserted Row $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Messenger $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Maintainance $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Receptionist $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800
Accountant $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Total People 14 14 14 14 14 14 14 14 14 14 14 14

Total Payroll $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300

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Table: Profit and Loss

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $166,100 $166,100 $166,100 $166,200 $166,200 $166,200 $166,300 $166,300 $166,300 $166,450 $166,500 $166,600
Direct Cost of Sales $45,265 $45,265 $45,265 $45,285 $45,285 $45,285 $45,305 $45,305 $45,305 $45,335 $45,345 $45,365
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $45,265 $45,265 $45,265 $45,285 $45,285 $45,285 $45,305 $45,305 $45,305 $45,335 $45,345 $45,365

Gross Margin $120,835 $120,835 $120,835 $120,915 $120,915 $120,915 $120,995 $120,995 $120,995 $121,115 $121,155 $121,235
Gross Margin % 72.75% 72.75% 72.75% 72.75% 72.75% 72.75% 72.76% 72.76% 72.76% 72.76% 72.77% 72.77%

Expenses
Payroll $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300
Marketing/Promotion $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Medical Supplies $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Administrative Expenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Mortage $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $3,000 $30,000
Utilities $5,000 $5,000 $5,000 $500 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
Insurance $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Payroll Taxes 15% $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595 $2,595
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $116,895 $116,895 $116,895 $112,395 $116,895 $116,895 $116,895 $116,895 $116,895 $116,895 $89,895 $116,895

Profit Before Interest and Taxes $3,940 $3,940 $3,940 $8,520 $4,020 $4,020 $4,100 $4,100 $4,100 $4,220 $31,260 $4,340
EBITDA $3,940 $3,940 $3,940 $8,520 $4,020 $4,020 $4,100 $4,100 $4,100 $4,220 $31,260 $4,340
Interest Expense $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667 $16,667
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Income
Other Income Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Income Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Expense
Contingency $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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 Appendix
Other Expense Account Name $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Other Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Other Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Profit ($12,727) ($12,727) ($12,727) ($8,147) ($12,647) ($12,647) ($12,567) ($12,567) ($12,567) ($12,447) $14,593 ($12,327)
Net Profit/Sales -7.66% -7.66% -7.66% -4.90% -7.61% -7.61% -7.56% -7.56% -7.56% -7.48% 8.76% -7.40%

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 Appendix

Table: Cash Flow

Pro Forma Cash Flow

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

Cash from Operations

Cash Sales $166,100 $166,100 $166,100 $166,200 $166,200 $166,200 $166,300 $166,300 $166,300 $166,450 $166,500 $166,600
Subtotal Cash from Operations $166,100 $166,100 $166,100 $166,200 $166,200 $166,200 $166,300 $166,300 $166,300 $166,450 $166,500 $166,600

Additional Cash Received

Non Operating (Other) Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Received 14.00% $23,254 $23,254 $23,254 $23,268 $23,268 $23,268 $23,282 $23,282 $23,282 $23,303 $23,310 $23,324
New Current Borrowing $0 $0 $0 $0 $0 $0 ($0) ($0) $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $189,354 $189,354 $189,354 $189,468 $189,468 $189,468 $189,582 $189,582 $189,582 $189,753 $189,810 $189,924

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

Expenditures from Operations

Cash Spending $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300 $17,300
Bill Payments $5,384 $161,527 $161,527 $161,377 $157,197 $161,547 $161,547 $161,567 $161,567 $161,568 $160,697 $135,507
Subtotal Spent on Operations $22,684 $178,827 $178,827 $178,677 $174,497 $178,847 $178,847 $178,867 $178,867 $178,868 $177,997 $152,807

Additional Cash Spent

Non Operating (Other) Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $23,254 $23,254 $23,254 $23,268 $23,268 $23,268 $23,282 $23,282 $23,282 $23,303 $23,310 $23,324
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $45,938 $202,081 $202,081 $201,945 $197,765 $202,115 $202,129 $202,149 $202,149 $202,171 $201,307 $176,131

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Net Cash Flow $143,416 ($12,726) ($12,727) ($12,477) ($8,296) ($12,647) ($12,548) ($12,567) ($12,567) ($12,418) ($11,497) $13,793
Cash Balance $643,416 $630,690 $617,963 $605,486 $597,189 $584,542 $571,995 $559,428 $546,861 $534,444 $522,947 $536,739

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 Appendix

Table: Balance Sheet

Pro Forma Balance Sheet

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

Current Assets
Cash $500,000 $643,416 $630,690 $617,963 $605,486 $597,189 $584,542 $571,995 $559,428 $546,861 $534,444 $522,947 $536,739
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $500,000 $643,416 $630,690 $617,963 $605,486 $597,189 $584,542 $571,995 $559,428 $546,861 $534,444 $522,947 $536,739

Long-term Assets
Long-term Assets $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Total Assets $1,500,000 $1,643,416 $1,630,690 $1,617,963 $1,605,486 $1,597,189 $1,584,542 $1,571,995 $1,559,428 $1,546,861 $1,534,444 $1,522,947 $1,536,739

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

Current Liabilities
Accounts Payable $0 $156,142 $156,142 $156,142 $151,812 $156,162 $156,162 $156,181 $156,181 $156,181 $156,210 $130,120 $156,239
Current Borrowing $0 $0 $1 $1 $1 $1 $1 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $156,143 $156,143 $156,143 $151,812 $156,162 $156,162 $156,182 $156,181 $156,181 $156,210 $130,120 $156,239

Long-term Liabilities $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Total Liabilities $2,000,000 $2,156,143 $2,156,143 $2,156,143 $2,151,812 $2,156,162 $2,156,162 $2,156,182 $2,156,181 $2,156,181 $2,156,210 $2,130,120 $2,156,239

Paid-in Capital $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000 $3,625,000
Retained Earnings ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000) ($4,125,000)
Earnings $0 ($12,727) ($25,453) ($38,180) ($46,327) ($58,973) ($71,620) ($84,187) ($96,753) ($109,320) ($121,767) ($107,173) ($119,500)
Total Capital ($500,000) ($512,727) ($525,453) ($538,180) ($546,327) ($558,973) ($571,620) ($584,187) ($596,753) ($609,320) ($621,767) ($607,173) ($619,500)
Total Liabilities and Capital $1,500,000 $1,643,416 $1,630,690 $1,617,963 $1,605,486 $1,597,189 $1,584,542 $1,571,995 $1,559,428 $1,546,861 $1,534,444 $1,522,947 $1,536,739

Net Worth ($500,000) ($512,727) ($525,453) ($538,180) ($546,327) ($558,973) ($571,620) ($584,187) ($596,753) ($609,320) ($621,767) ($607,173) ($619,500)

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