Executive Summary

Wheatland Health Services offers a unique combination of premier home health care and community-based social services to Southeastern Kansas. Market research indicates that there is a significant need for quality home health care and social services within this region and we believe that by employing competent and well-educated staff and providing them with organized and responsive management, we can become the home health care/social service agency of choice in Southeastern Kansas. Wheatland Health Services will be created as a Kansas Limited Liability Company based in Wilson County, owned by its principal investors and principal operators. The initial office will be established in quality office space on Main Street in Neodesha, Kansas, which is the heart of Southeastern Kansas. Neodesha is also home to a hospital facility and a renowned Wound Center, which will serve as referral bases for our agency. Consumers of our services will be those individuals and families in need of home health care and/or social services. These patients are usually referred by other health care professionals such as physicians, attorneys, insurance companies and health care facilities. Our agency has already developed an excellent reputation with many of these professionals, through the work of our Clinical Director, who has been providing home health care services through another agency for the past three years, and through the presentations we have made to the community via marketing tools and personal interactions. Our agency must be licensed by the State of Kansas and our services reimbursed by Medicare, Medicaid and other private insurance carriers. The process for licensure and insurance certification has already been initiated and we are well on our way to meeting the regulations and guidelines for providing home health care and social services to patients in Southeastern Kansas.

Elizabeth Patzer. The other home health care agencies currently operating in our area do not offer services to all four of our target Counties. • 12 Personal Injury Case Management Clients served by the end of first year.There are currently only three other home health care agencies that serve Southeastern Kansas. Brad Patzer.2 Keys to Success • Professional quality of services offered • Reliability -. non-managing partner. Sales estimates project healthy revenues in the first year and modest increases through year three. M. and has no plans for additional debt as growth will be financed mainly through cash flow. Medicaid and other insurance regulation so pricing is not a major factor of consideration. 1. our Clinical Director. One is a satellite operation based out of a larger regional hospital in Bartlesville. New Bplans Online CoursesFantastic New Courses Available View Our Course of The Week Now Bplans School of BusinessGreat Discounted Courses to Help you Start and Run a Successful Business Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. and sufficient cash on-hand at start-up to prevent any problems with cash flow. Wheatland Health Services will be managed by Beth Patzer and Kellene Walker. The partnership will include a second. The company plans on taking on debt in the form of a five-year loan.being available through on-call. MSW/PA. Create your own business plan » 1. Kellene Walker currently manages this agency's operation there. • 80% of Customer Satisfaction Surveys returned indicating satisfaction with services. they also do not offer the unique blend of home health care and social services which Wheatland Health Services will be providing. and adequate staffing . Our plan includes assumptions of 100% sales on credit. and due to the lack of interest the parent organization has demonstrated in this satellite agency. Oklahoma. All pricing will be set according to Medicare. • Respectable gross sales by the end of first year. The primary founder. who will help with initial start-up funding and retain a minority equity stake.1 Objectives • 125 Home Health Care patients served by the end of first year. WHS is incorporated as a partnership. is a social worker and public administrator with prior experience in operating a social service agency. we believe that upon her transfer to Wheatland Health Services that agency will close its Wilson County operation.

as well as a five-year 8% loan which will be needed in order to cover start-up costs.1 Company Ownership Wheatland Health Services is a limited liability company owned and operated by Elizabeth G. and well-trained individuals who are responsive to the needs of our patients. and consequently there are start-up costs and funding issues to address. Wheatland Health Services strives to offer excellent and affordable home health care and community-based social services to individuals and families of Southeastern Kansas. Physical. and the communities we serve. In turn.2 Start-up Summary Wheatland Health Services is in its start-up stage. .all within a ninety mile radius of our offices: • Skilled Nursing • Nursing Aide • Social Work • Occupational. MSW/MPA and Marlon B. Montgomery and Labette Counties . Patzer. and other organizations) 1. The Start-Up Table. 2. trustworthy management and direction Company Summary Wheatland Health Services is a new Home Health and Social Service agency in its start-up stages. M.S. indicates in detail those costs which include the following: • BUSINESS DEVELOPMENT • RENTAL EXPENSE • OFFICE EQUIPMENT • OFFICE SUPPLIES • NURSING SUPPLIES The table also demonstrates Assets needed for start-up and addresses potential funding sources which are to include cash investments made by each Owner. below. Our agency will be located in the heart of Southeastern Kansas and will provide the following services to patients and clients from Neodesha. hospitals. our agency will provide staff with competitive compensation. It is our goal to employ competent. and Speech Therapy • Personal Injury Case Management 2.• Effective collaboration with other community professionals (physicians. We encourage and support continued education of each service provider. and knowledgeable. Wilson./M. Each staff member will meet the State of Kansas educational and training requirements for the services they provide. Patzer.3 Mission Our values are simple. an inviting work environment. caring.Ed. their families.

901 $44.000 $400 $0 $250 $150 $26 $0 $0 $3.599 $3.000 $0 $500 $300 $0 $500 $0 $0 $3. Office Supplies Computer NURSING SUPPLIES Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets $0 $875 $100 $5.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.00 Contract Retainer with PT/OT/ST Inserted Row RENTAL EXPENSE Office Upgrades (Carpet and Paint) Deposit plus First *Assuming $200.500 $0 $48.000 $3. Create your own business plan » Start-up Requirements Start-up Expenses BUSINESS DEVELOPMENT Attorney Fees .099 .Setting Up Limited Liability Company State of Kansas Home Health Agency License Medisoft Billing Program plus Support Professional Liability Insurance *Assuming 25% down of $12.000.00/Month Phone Set Up (Excluding Phones) Utilities Deposit Post Office Box Inserted Row OFFICE EQUIPMENT 2 Computers (Fully Loaded) 4-in-1 Printer/Fax/Copier/Scanner QuickBooks Pro Phones Pager Inserted Row OFFICE SUPPLIES Stationary Business Cards Brochures Other Misc.00 Workman's Comp Insurance Deposit Premises and Content Insurance Deposit *Assuming 25% down of $1200.500 $21.000 $750 $300 $200 $50 $0 $0 $200 $150 $200 $450 $0 $2.

Research Your IndustryNeed to Get Figures on Your Industry? Free Year Financial Reports Available #1 Business Plan SoftwareTop Selling Business Plan Software for 10 Years.000 $20. Our primary market segment includes those patients -. and employment issues.000 ($21.901) $48. rather than proceeding to a nursing home.901) ($1.000 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. Download Your Software Now! . such as social work.500 $44. in order to access needed community resources. health care facilities and other health care professionals.901 $48.099 $0 $50. Our secondary market will be those individuals who have suffered a personal injury and require case management services to assist them in addressing medical. Create your own business plan » Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Elizabeth Patzer Investor Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding $21. These patients may also require other home health services.599 $48.who require health care services by home health nursing staff. The majority of these patients will be covered by Medicare with a smaller portion being insured by Kansas Medicaid or other private insurance carriers. The consumer base for the Personal Injury Case Management component of our business will be those individuals who have been injured either on the job or in another type of accident.1 Market Segmentation The population base in Southeastern Kansas is aging. and more individuals are opting to stay in their own homes longer and return home following hospitalization.000 $3. These referrals will come from attorneys seeking case management services for their clients or from insurance companies who are requesting assistance in mitigating the injuries and loss the client suffers.Total Requirements $70. 4.000 Market Analysis Summary The consumer base for Wheatland Health Services (Home Health Care Services) will be patients referred by physicians.000 $0 $0 $50.000 $0 $0 $20.099 $70.599 $0 $44. financial.typically in an older age bracket -.099 $70.

we will explain to the client that we estimate the total number of hours needed to complete services liberally.3 Service Business Analysis Wheatland Health Services is a combined Home Health Care and Social Service Agency serving a fourcounty region in Southeastern Kansas.30% 30. When pricing personal injury case management services.3. but we are unique in that we plan to offer community-based social services as well as home health care. since additional office space will not be required.Medicare Patients HHC .Medicaid and Private Insurance Patients PICM Patients Total Growth 10% 10% 30% 12. Pricing of personal injury case management services is a more important factor. and private insurance companies. as most home health services are reimbursed by Medicare.). with service referrals coming most often from other professionals (i.1 Competition and Buying Patterns The key factor considered by both consumers and referring professionals when purchasing home health care is trust in the professional reputation.31% 100 25 12 137 Year 2 110 28 16 154 Year 3 121 31 21 173 Year 4 133 34 27 194 Year 5 146 37 35 218 CAGR 9.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Home health care and social services are typically utilized by individuals and families. . hospitals. etc. and reimbursement rates are set by those entities. as these services are paid for as negotiated on a case-by-case basis at an hourly rate. attorneys. Create your own business plan » Market Analysis Year 1 Potential Customers HHC . reliability and quality of services provided by the home health Agency. Pricing of home health services does not usually influence consumers' choices. Create your own business plan » 4.92% 10. Focusing on those market segments that require only home-based services will greatly decrease overhead. physicians. rather than bidding low and then exceeding the anticipated total bid price for services.31% Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.68% 12. we will focus on those market segments where we know our services are most needed. There are currently three other Home Health Agencies serving the same area.2 Target Market Segment Strategy Because our agency specializes in home health care and community-based social services. 4. Medicaid.e. 4.

One doesn't sell home health care and personal injury case management. 5. Usually they follow word-of-mouth recommendations. Patzer will make initial contacts in the community as she establishes the business entity and provider status with Medicare. especially when those recommendations come from their physicians. has been employed with one of them for three years and has learned many of the day-to-day administrative functions that make a home health care agency successful.1 Competitive Edge We start with a competitive edge: There are currently only three home health care agencies serving southeastern Kansas.3 Sales Strategy Sales in our business means quality patient service and utmost satisfaction from referring physicians and health care facilities. Download Your Software Now! 5. Rather. health care facilities.1 Sales Forecast . with our more traditional home health care. In a service industry. Only when those services are well-established and grounded in excellence will we consider expanding our service base. Ms. Walker has built a reputation for outstanding customer service. as will our marketing tools such as brochures. we have two target markets: the actual client. Walker in an effort to introduce Wheatland Health Services to area professionals who are potential referral sources. 5. It is perpetual business. We will therefore avoid the temptation to broaden the scope of our services too quickly. and the regional physicians. availability. #1 Business Plan SoftwareTop Selling Business Plan Software for 10 Years. and Mental Health Case Management. rather one sells excellent care. attorneys and insurance companies who refer them to our services. 5. which in turn leads to client dissatisfaction. such as Personal Injury Case Management. growth can mean loss of quality control. Wheatland Health Services will also stand out in integrating community-based social services. Business Start-up GuidesStep-by-step instructions you need for starting a business today. We want our clients to know that the quality of service they receive will be excellent. As our agency demonstrates outstanding patient care.2 Marketing Strategy Marketing our service-oriented business requires establishing a reputation for expertise and excellence. business cards. private insurance companies and local attorneys. Ms. other nurses and hospital facilities in our market area. and will work to maintain those relationships throughout our start-up process. such as Family Counseling. Perhaps the most important element for assessing competition in the Home Health and Social Service fields is how to persuade other professionals to repeatedly refer their clients to our agency for services. and it is our belief that her reputation will help to build a strong client base even before our start-up date.Consumers of both home health care services and personal injury case management services rarely compare service providers directly. Ms. and effective interpersonal relationships. regardless of the individual service provider performing the service. It starts with our known contacts who are in positions to recommend us and make referrals to us. Walker is already well-known to physicians. PsychoEducational Services. Our communications will be professional. She will then join Ms. adding to our financial stability. Medicaid. This integration also leaves room in the long-term for the addition of other social services. and advertisements. we believe that we will be able to capture the majority of the home health care and personal injury case management market in our designated region Strategy and Implementation Summary Wheatland Health Services will focus on four counties within southeastern Kansas. The services we provide should always reflect the mission and oversight of management. our Clinical Director. we will focus our immediate attentions on making the services we offer of the highest possible quality. This broader base will allow us to access additional clientele and payor bases. Within this geographical area we will target two specific programs: • home health care • personal injury case management Within each area. We will develop and maintain a database of our contacts in the field. and professional organization and business management. and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields.3. Kellene Walker. current and pertinent qualification of service providers.

as this portion of the business will initially be secondary to the Home Health Care Services.Annual sales reflect a conservative average of 125 new Home Health Care patients for the first year with a modest increase per year thereafter. As the Home Health Care portion of the business stabilizes management will focus growth efforts on the Personal Injury Case Management program. We believe that with a greater investment in marketing. The projected annual figures for Personal Injury Case Management sales are relatively low. Research indicates that this agency is a satellite office of a larger regional organization and investment in the satellite office has been minimal. employee relations. However. and customer service this client base can grow significantly. as market analysis indicates there is a significant need for these services. This figure is based on the number of patients currently being seen by an existing home health care agency in Southeastern Kansas. Create your own business plan » . Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. we project a jumped up annual growth after the first year.

What the table doesn't show is the commitment behind it.114 $24. The milestone schedule indicates our emphasis on planning for implementation.800 $100 $0 $800 $10. and budgets for each.200 $432. Create your own business plan » Milestones Milestone Attorney Draws Up LLC Verify Numbers For Budget Meeting with CPA for tax advise and request for Tax ID Identify Office Location Finalize Application for Insurance Coverages Apply for State Licensure Apply for Bank Loan Finalize Lease Agreement Move Into Offices and Prepare for Site Survey Site Survey Start Date 1/1/2004 8/1/2003 1/7/2004 1/2/2004 12/15/2003 2/1/2004 1/2/2004 2/1/2004 12/13/2004 3/19/2004 End Date 1/31/2003 9/15/2003 1/15/2004 1/15/2004 1/31/2004 2/1/2004 2/1/2004 2/1/2004 2/20/2004 3/29/2004 Budget $875 $0 $0 $0 $4.599 $2.625 $32.073 Year 3 $22. and we will hold monthly follow-up meetings to discuss the variance and course corrections.448 $533. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.520 $24.074 Year 2 $22.121 Year 2 $455.000 $0 Manager Beth Beth Beth Beth Beth Beth Beth & Brad Beth Beth Beth Department Administrator Administrator Administrator Administrator Administrator Administrator Administrator Administrator Administrator Administrator .400 $24.-actual analysis.676 Year 3 $500. Create your own business plan » 5.Sales Forecast Year 1 Sales Home Health Care Sales Personal Injury Case Management Sales Total Sales Direct Cost of Sales Home Health Care Sales Personal Injury Case Management Sales Subtotal Direct Cost of Sales $413.721 $2. with dates and managers in charge.740 $19.960 $480.245 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan. Our business plan includes complete provisions for plan-vs.156 $2.646 $25.940 Year 1 $21.4 Milestones The accompanying table lists important program milestones.

the Skilled Nurse will be paid $408 per month for On-Call Hours served. procedures. • Skilled Nurse -. The Administrative Director will also assume all Social Work hours of service during the initial stages of the venture as those hours are projected to be minimal. retirement or other fringe benefits.00 per hour. Initially. additional Skilled Nurses will be hired.This position is based on 30 hours per week reimbursed. who has prior experience as Clinical Director for a home health care agency in Southeastern Kansas. at $12. costs. In addition. and benefits as listed in the Personnel table. based for the first year on $1000/week. these after-tax expenses can be found in the detailed Profit and Loss table. as well as supervising the nursing staff.1 Personnel Plan The following is an explanation of personnel needs. The company will pay employer portion of payroll taxes for Ms.50 per hour for direct service hours. As the need for additional Skilled Nursing hours increases. • Administrative Director -. Ms. There will be no benefits attached to this position other than 2 weeks of paid personal leave and 5.This position will be held by the agency owner.. Job descriptions have been written for each position and we will develop an employee handbook prior to our Start Date.50/hr. Walker shall be entitled to a TBA percent of the company's net profits (less taxes and interest expense). . both managers will also provide direct service. On-Call Hours are figured at $1. both managers will assume primary roles in management and will delegate direct service to employees. but benefits will not include medical insurance. three employees and a contracted agency to fulfill the need for Physical Therapists. • Clinical Director -. as these costs will be assumed by the owner. cost of insurance. She will also provide direct nursing services during the initial stages of the business. one Clinical Director. As the need for service providers grows.This position will be held by Kellene Walker. 6. Walker's compensation will be in the form of a salary. Initially there will be no benefits attached to this position except for four weeks of paid personal leave and 11 paid holidays to be used at the discretion of the employee with prior notification to the Administrator. The Clinical Director will also assume the majority of Skilled Nursing hours of service during the initial stages of the venture as that will be her primary role.This position will be paid $18. Walker and will allow for 4 weeks of paid personal leave per year and 11 paid holidays.5 paid holidays per year. Wheatland Health Services has no current management or personnel gaps. • Administrative Assistant -. *Owner's compensation will be made in the form of a draw and will not include payroll taxes. It is assumed that as need for Social Work hours increases a second Social Worker will be hired.75/hr x 24 hours x 2 days x 2 weeks/month. employment contracts Apply for all Provider Numbers Hold First All Staff Meeting Totals 3/15/2003 4/15/2004 6/15/2004 4/1/2004 6/1/2004 6/15/2004 $350 Beth & Kellene $0 Beth $50 Beth & Kellene $16. Occupational Therapists. x 16 hrs x 5 days + $1. our plan provides for hiring service providers only as growth demands. etc.Develop/Finalize all forms. The total reimbursement as shown in the Personnel Table is calculated on 1040 hours per full year. Elizabeth Patzer is a licensed social worker and will provide all social work services during the start-up stage of the business. It has been agreed that at the end of each calendar year Ms. The projections for the next three years are based on minimal growth in client base and therefore no resulting impact on payroll due to increased hours of service. as this is a part-time position.975 Administrator Administrator Administrator Management Summary Wheatland Health Services' initial team will consist of one Administrative Director. She will also provide all administrative direction and will perform most of the administrative functions with assistance from an Administrative Assistant. and Speech Therapists. Kellene Walker is a registered nurse and has experience as a Skilled Nurse and Director of Nursing for a Home Health Agency. A cost of living increase is noted for all employees but does not impact the Administrative Director as she is the owner of the business and will realize increase through profit gains.

110 $10. that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services. As we broaden our scope of services to include a larger payor base. shows our important (and conservative) annual assumptions concerning interest rates.912 7 $118.720 $20. The total reimbursement as shown on the Personnel Table is calculated on 1040 hours per year. 7.343 Year 2 $0 $53.This position will be paid $10.50 per hour for direct service hours.413 $8. The total reimbursement is based on 650 hours per year. without major recession. 2.033 $10.00 per hour for direct service hours. RN Administrative Assistant Skilled Nurse Nurses Aide Social Worker Total People Total Payroll Year 1 $0 $52.000 $18.856 $10.282 $24.322 Year 3 $0 $55. of course.209 7 $121. The most important factor for our financial plan is collection of receivables. We assume a strong economy. as described below.167 $19. Our home health care services will be reimbursed primarily by Medicare. MSW/MPA Clinical Director .This position will be paid $18. Our figures are based on start-up capital as shown in the Start-up and Start-up Funding tables. We will also contract for other therapeutical services.1 Important Assumptions The General Assumptions table.560 $19. as they are contracted on a fee-for-service reimbursement basis only.• Nurse's Aide -. History indicates that these payors are sometimes slow to reimburse and receivables can get hung up in the automated payment system if not tracked closely.860 $25.870 Financial Plan We want to finance growth mainly through cash flow. We assume. tax rates. and other private insurances. these lags in collection of receivables will have less impact on cash flow.601 $11.5 paid holidays per year.These positions will be contracted at a rate of $30.712 $9. • Social Worker -. Medicaid. and personnel burden. We recognize that this means we will have to grow more slowly than we might like.00 per hour. The total reimbursement as shown in the Personnel Table is calculated on 520 hours per year. New Bplans Online CoursesFantastic New Courses Available View Our Course of The Week Now Bplans School of BusinessGreat Discounted Courses to Help you Start and Run a Successful Business Personnel Plan Administrative Director . as this is a part-time position.Kellene Walker. There will be no benefits attached to this position initially until the need for more hours of service is realized. There will be no benefits attached to this position other than 2 weeks of paid personal leave and 5. • Physical Therapist/Occupational Therapist/Speech Therapist -.Elizabeth Patzer. There will be no benefits attached to these positions. Research Your IndustryNeed to Get Figures on Your Industry? Free Year Financial Reports Available Bplans School of BusinessGreat Discounted Courses to Help you Start and Run a Successful Business .100 7 $109. we will consider an additional loan if needed. These contracted expenses can be found in the Profit and Loss table. In addition: 1. below.

00% 30. This assumption about cost of sales may at first look low. payroll is included with other operating expenses in our fixed monthly amounts. per month We are projecting growth and total annual sales very conservatively.532 6% $16. Create your own business plan » 7. . and profits are notable even for the start-up phase of this business.00% 0 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.00% 8. as this is a service agency and the primary costs involved in providing the services are those related to payroll.General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 1 10.2 Break-even Analysis The Break-even Analysis below is based on monthly fixed costs and an Average Per Unit Variable Cost.00% 0 Year 2 2 10.3 Projected Profit and Loss Our projected profit and loss is shown in the following table. with sales increasing throughout the three years of the plan. we need to bill and collect the amount shown below per month to cover our per month costs.555 7.and community-based and require travel to and from service locations. because the services we provide are home.00% 30. Our cost of sales is relatively low. with high projected expenses. At these levels.00% 8.00% 8.00% 0 Year 3 3 10. Create your own business plan » Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost $17. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.00% 30. so the variable costs relate to the only other cost of service provided: mileage to and from service locations. but in our service-based business. We don't really expect to reach break-even until a few months into the business operation. The costs of sales reflects the cost of mileage reimbursement to employees.

Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan. Create your own business plan » . Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.The Profit and Loss table also contains our expenses for independently contracted physical. occupational and speech therapists. as well as the owner's and Clinical Director's after-tax draws.

343 $29.920 $0 $2. Create your own business plan » Pro Forma Profit and Loss Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales Gross Margin Gross Margin % Expenses Payroll Payroll Taxes Depreciation Rent Year 1 $432.829 95.956 $0 $3.600 .43% $109.121 $0 $24.26% $121.870 $30.819 94.398 94.073 $25.400 Year 2 $480.245 $507.676 $455.86% $118.121 $408.Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.423 $0 $3.245 $0 $25.600 Year 3 $533.940 $24.676 $0 $24.322 $30.074 $24. Create your own business plan » Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.

293 $341.800 $19.337 34.847 $144.000 $61.403 $4.293 $0 $0 $0 $0 Year 2 $0 $470.200 $4. Create your own business plan » Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.200 $4.000 $1. Need actual charts? We recommend using LivePlan as the easiest way to create graphs for your own business plan.800 $19.403 $291. Cash flow projections are critical to our success.33% $1. Collection of accounts receivable from our sales on credit will greatly affect our cash flow.200 $600 $1.096 $0 $0 $0 $0 Year 3 $0 $521.053 $4.200 $4.053 $243.800 $3.800 $600 $300 $9.800 $3.86% $1.000 $600 $600 $1.000 $600 $600 $1.000 $71.425 $291.000 $198.000 $600 $600 $1.Heat and Lights Phone Cell Phones Water and Garbage Internet Access Professional Liability Insurance Workman's Comp Insurance Premises and Content Insurance Advertising and Marketing Meals and Entertainment Professional Development Office Equipment and Supplies Contracted Therapists: OT/PT/ST Nursing Supplies Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales $1.854 $521. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities $0 $341.800 $600 $300 $12. with one bar representing the cash flow per month.000 $1.200 $600 $1.800 $3.182 37.800 $19. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix.000 $212. and the other the monthly cash balance.800 $600 $300 $12.000 $216.716 $167.854 $0 $0 $0 $0 . VAT.500 $12.309 33.74% 7.000 $1.200 $600 $1.4 Projected Cash Flow The following cash flow projections show the annual amounts only. The monthly cash flow is shown in the illustration.156 $210.500 $12.156 $4.096 $470.500 $12.663 $210.221 $201.346 $243.000 $86.

322 $196.61% Industry Profile 3.656 $142.000 ($21.870 $208. and a comparison of our ratios with standards for the home health care industry (SIC code 8082.901) $144.600 $0 $0 $0 $521. risk.509 $91.096 Year 2 $118. The monthly estimates are included in the appendix.000 $65.248 $50.006 $0 $0 $0 $0 $0 $0 $0 $315.48% .89% 27.Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.656 $0 $0 $0 $210.248 $0 $0 $18.04% 19. Ratio Analysis Sales Growth Percent of Total Assets Accounts Receivable Other Current Assets Year 1 0.745 Year 3 $461.408 $210.00% 43.091 $270.90% 45.624 $3. and a sufficiently healthy financial position.979 $0 $0 $15. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth $115.05% 0.383 $70.52% 0.262 $0 $0 $17.408 $167.182 $510.189 $510.500 $210.000 $122.5 Projected Balance Sheet The balance sheet in the following table shows managed but sufficient growth of net worth.724 $0 $0 $0 $375.846 7.656 Year 1 $18.724 $309. VAT.600 $101.006 $155.000 $289.293 Year 1 $109.000 $67.724 Year 2 $15.683 $315.383 $0 $0 $0 $0 $0 $0 $0 $270.745 $201.979 $20.343 $161. We expect to maintain healthy ratios for profitability.910 $115.71% 21.745 $375.189 Year 3 $17.6 Business Ratios The following table shows the projected businesses ratios.000 $68.500 $578.000).262 $20.246 $461.927 Need real financials? We recommend using LivePlan as the easiest way to create automatic financials for your own business plan.979 $50.647 $3.500 $375.854 Year 3 $121.608 $191.93% Year 3 11.248 $20.262 $50.309 $142.66% Year 2 10.51% 1.846 $112.739 $330. Create your own business plan » 7.608 $0 $0 $0 $0 $0 $0 $0 $330. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $0 $0 $0 $341.927 $578.040 $270.337 $309.509 $0 $0 $0 $470.408 Year 2 $270. and return.189 $0 $0 $0 $578.843 $3.

00% 100.60% 100.54 32.a n.00% 100.745 60.56% 77.72 57 9.15 1.99% 8.52 3.54% 11.26% 66.78 4% 17.Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.00% 50.18% 63.00% 4.34% 0.a n.00% 85. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.49 11.62% Year 2 34.33% 101.89% 43.a n.a n.a n.00% 0.55 0.76% 97.408 52.00% 2.62% 21.72 73 12.24 $359.49 9% 6. to Liab.02% 4.74% 32.17 29 0.00% 48.26 $560.83 27 2.74% 39.00% 54.63% 88.96 1.76 0.40% 67.44% 100.17 32 1.92 0.a n.40% 144.27 $192.a n.87% 0.63% 56.72 73 12.20 62.48 0.84% 1.a n.a n.86% 54.04 0.54 11.65% 11.00 100.85 1.11% 100.00% 35.38% 4.43% 63.08 3% 26.00% 95.49 33.86% 67.a n.37% 100.a n.00% 0.71% Year 3 37.66% 33.86% Year 1 33.70% 0.54 0.00% 94.51 17.13 0.51 23.31% 17.25% 13.27% 56.63% 23.04 0.927 72.06 0.a n.00 100.a n.75% 0.52 1.66% 23.56% 82.00 69.58% 30.25% 49.00% 8.09% 2.21 0.a n.33% 4.00% 100.42% 100.28 0.00% 0.93% n. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout 100.00% 100.35% 1.a n.a .34% 0.00% 94.