accurate chiropractic
Post on 03-Apr-2018
216 Views
Preview:
TRANSCRIPT
-
7/28/2019 Accurate Chiropractic
1/40
This sample business plan has been made available to users ofBusiness Plan Pro, business planningsoftware published by Palo Alto Software. Names, locations and numbers may have been changed,and substantial portions of the original plan text may have been omitted to preserve confidentiality
and proprietary information.
You are welcome to use this plan as a starting point to create your own, but you do not havepermission to reproduce, resell, publish, distribute or even copy this plan as it exists here.
Requests for reprints, academic use, and other dissemination of this sample plan should be emailed
to the marketing department of Palo Alto Software at marketing@paloalto.com. For productinformation visit our Website: www.paloalto.com or call: 1-800-229-7526.
-
7/28/2019 Accurate Chiropractic
2/40
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by _______________ in thisbusiness plan is confidential; therefore, reader agrees not to disclose it without the express
written permission of _______________.
It is acknowledged by reader that information to be furnished in this business plan is in all respectsconfidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader, may cause serious harm or damage to
_______________.
Upon request, this document is to be immediately returned to _______________.
___________________Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
-
7/28/2019 Accurate Chiropractic
3/40
Table of Contents
1.0 Executive Summary.............................................................................................................................11.1 Mission.......................................................................................... ..............................................11.2 Keys to Success ........................................................................................................................1
Chart: Highlights......................................................................................................................21.3 Objectives ...................................................................................................................................2
2.0 Company Summary.............................................................................................................................22.1 Start-up Summary......................................................................................................................2
Table: Start-up.........................................................................................................................3
Table: Start-up Funding..........................................................................................................4Chart: Start-up .........................................................................................................................5
2.2 Company Ownership.................................................................................................................53.0 Products and Services........................................................................................................................64.0 Market Analysis Summary..................................................................................................................6
4.1 Market Segmentation ................................................................................................................6Chart: Market Analysis (Pie)..................................................................................................8Table: Market Analysis ...........................................................................................................8
4.2 Service Business Analysis........................................................................................................84.2.1 Competition and Buying Patterns................................................................................9
4.3 Target Market Segment Strategy...........................................................................................105.0 Strategy and Implementation Summary..........................................................................................11
5.1 Competitive Edge....................................................................................................................115.2 Marketing Strategy ..................................................................................................................115.3 Sales Strategy..........................................................................................................................14
5.3.1 Sales Forecast............................................................................................................14
Table: Sales Forecast.................................................................................................15Chart: Sales Monthly ...................................................................................................15Chart: Sales by Year...................................................................................................16
5 4 Milestones 16
-
7/28/2019 Accurate Chiropractic
4/40
Table of Contents8.4 Projected Cash Flow...............................................................................................................26
Chart: Cash ...........................................................................................................................27Table: Cash Flow..................................................................................................................28
8.5 Projected Balance Sheet........................................................................................................28Table: Balance Sheet...........................................................................................................29
8.6 Business Ratios.......................................................................................................................29Table: Ratios .........................................................................................................................30
Table: Sales Forecast ...............................................................................................................................1Table: Personnel ........................................................................................................................................2
Table: General Assumptions ....................................................................................................................3Table: Profit and Loss ...............................................................................................................................4Table: Cash Flow.......................................................................................................................................5Table: Balance Sheet ................................................................................................................................6
-
7/28/2019 Accurate Chiropractic
5/40
Accurate Chiropractic
1.0 Executive Summary
Accurate Chiropractic, LLC is a clinic that specializes in providing natural healthcare to
members of the community who are injured as a result of motor vehicle and workrelated accidents, or suffer from chronic pain. Its owner is Dr. Angelo M. Rubano, Jr., D.C.
Dr. Rubano has a proven track record of success in his profession, having recently sold apractice in New Jersey for $124,000, which he purchased 3 years ago at a cost of $20,000. He
has been in private practice as a business owner since graduating from Life ChiropracticCollege 11 years ago. His leadership ability has proven effective in both the civic and
professional arenas, where he has served on various executive boards of successful andgrowing organizations. Through these organizations he has developed expertise in coordinatinglarge scale events and networking. In addition, he is an accomplished public speaker, an
attribute which has served him well as both an expert medical witness and lecturer on varioushealth related topics.
His guiding business philosophy is to be creative rather than competitive. Realizing that nearly
80% of the population has never used or thought about Chiropractic Care, he understandsthere are more than enough potential patients to go around. Ultimately his plan for growth will
incorporate other doctors in the area who can benefit from the corporate approach AccurateChiropractic has for providing health and safety consultation to the service and constructioncorporate market. With this in mind Dr. Rubano's approach is to see himself primarily as a
marketer of chiropractic services. Accurate Chiropract ic, LLC will reach the untapped marketof Chiropractic patients by connecting emotionally with our target market through a systematic
series of direct mail advertising. We will serve the injured directly, as well as indirect ly throughcorporate c lientele. We will be a contributor to the community through outreach events aimed
at childrens' and workers' safety.
-
7/28/2019 Accurate Chiropractic
6/40
Accurate Chiropractic
1.3 Objectives
Collections of $420,000 in the first year
Hold Gross Margin to minimum of 55% 300 total cases by the end of year 1 Case Average of $3,500 by end of year 2
-
7/28/2019 Accurate Chiropractic
7/40
Accurate Chiropracticfurniture and computers, initial month's rent/security deposit, and initial advertising cost,
including production of printed reports.
Long-term assets include a key of diagnostic equipment (Surface EMG with dynamic range ofmotion valued at $8,000), X-ray equipment, and chiropractic tables.
Much of this will be financed by direct owner investment. The projected loan to aid in thepurchase of equipment and working capital is shown as a long term liability. The assumptions
are shown in the following table and chart.
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $2,500
Stationery etc. $1,000
Brochures $200
Consultants $0
Insurance $1,000
Rent $5,675
Licensing $6,000
Research and Development $6,000
800 Line Set Up Fees $200
Computers and Software $8,000
Pri nt Adverti si ng and Report Producti on $1,000
Office Furniture $3,000Total Start-up Expenses $34,575
Start-up Assets
Cash Required $69,000
-
7/28/2019 Accurate Chiropractic
8/40
Accurate Chiropractic
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $34,575
Start-up Assets to Fund $173,000
Total Funding Required $207,575
Assets
Non-cash Assets from Start-up $104,000
Cash Requirements from Start-up $69,000
Addit ional Cash Raised $0
Cash Balance on Starting Date $69,000
Total Assets $173,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabili ties $164,000
Accounts Payab le (Outstanding Bi ll s) $0
Other Current Liabili ties (interest-free) $0
Total Liabili ties $164,000
Capital
Planned Investment
Start Up Cost Funded by Owner $33,575
Addit ional Owner Cap itol Investment $10 ,000
Other $0
Addit ional Investment Requi rement $0
Total Planned Investment $43,575
Loss at Start-up (Start-up Expenses) ($34,575)
-
7/28/2019 Accurate Chiropractic
9/40
Accurate Chiropractic
2.2 Company Ownership
The company is set up as a Florida Limited Liability Corporation for the purpose of providing some
shielding of liability to its members without the intricacies of an S-Corporation. The principaland founding member is Angelo M. Rubano, Jr. D.C.
Dr. Angelo M. Rubano, Jr. is a 1993 graduate of Life Chiropract ic College in Marietta, Ga. Afteri i hi li t ti hi ti di i f th St t f N J i M h f
-
7/28/2019 Accurate Chiropractic
10/40
Accurate Chiropracticperformed health screenings of 75 members of the Fort Myers community.
___________________________________________________1 see Addendum, Credentials;2 see Addendum, Testimonials;3 Letip is an international organization that functions to help small businesses grow through the
exchange of business tips. The central offices are located in California, and there are localchapters throughout the country.
3.0 Products and Services
Accurate Chiropractic, LLC offers a high level professional service that helps take injured and ill
people of all ages from varying states of pain and inactivity to comfort and wholeness. Weprovide a drugless approach to healthcare by giving patients the tools they need, physically,
mentally, and emotionally, to return to an active and healthy lifestyle. To the corporate client,we provide analysis of factors that increase the risk of on-the-job injuries and the tools toreduce those risks. Considering that low back pain is responsible for half of workers'
compensation costs, and that past research has demonstrated time and again that
Chiropractic Care compared to other typical medical treatment is more successful and morecost effective for these conditions, it is obvious that this is a much needed service that will
create a high demand when approached the right way.1,2
We will also sell products that support our services, including home exercise devices, pillows,
TENS units, and weight loss programs. (A TENS -- transcutaneous electric nerve stimulation --unit is a small, battery-powered, portable muscle st imulation machine that can be used at
home to help control pain.)___________________________________________________1 Mootz, R.D., Franklin,G.M., Stoner,W.H. Strategies for preventing chronic disability in injured
workers. Topical Clinical Chiropractic, 1999; 6(2):13-252 Florida Department of Labor and Employment Security, Division of Workers' Compensation,Claims and Medical Billing Data 1994-1999
-
7/28/2019 Accurate Chiropractic
11/40
Accurate Chiropracticindividuals injured within a 6 month time period of visiting our office. Insurance c laims are
easier to handle at this stage making for more lucrative reimbursement rates. Inaddition, early intervention aids more rapid recovery, which leads to greater word of
mouth referral.
Work Related Injury Victims: this is a yet untapped market in our field. Recentlegislation in the state of Florida (Effective October 1, 2003) makes it possible forChiropractors to not only treat injured workers but to also function as case managers. In
this capac ity we are able to direct the entire care of the injured worker. With caseaverages ranging from $6,323-$7,465 this is a very lucrative market. (Case averages
referenced from Florida division of Financial services website: www.fldfs.com/WCAPPS/Claims_Research/Stats_Results.aspyear 2001 statistics.)
Victims of Chronic Pain Resultant from Past Motor Vehicle Accident: the segmentof the population that has attempted other forms of treatment without the results they
were expecting. They are candidates for not only a natural approach to treatment butalso "back end" sales of therapeutic devices such as TENS units, heat and cold packs,
and home exercise devices.
Neck and Back Pain sufferers with onset unrelated to Motor Vehicle Accidents: Thisaccounts for a large percentage of the population, nearly 30% of our population
experiences one or the other (we have adjusted our numbers to account for the fact thata large portion of these will have experienced their problem as a result of a motorvehicle accident).
Other Pain Sufferers: refers to the segment of the market that experiences painsyndromes like Fibromyalgia, Chronic Fatigue Syndrome, Migraine and Tension Headaches,
Carpal Tunnel Syndrome, middle back pain, etc. This is a segment of the population wewill attract thanks in part to our affiliation with several managed care and major medical
programs. These are cases that most M.D.s are not equipped to properly service becausetheir training in musculoskeletal disorders is limited, and the prescription drug route hasyet to develop a legitimate answer for these problems.
-
7/28/2019 Accurate Chiropractic
12/40
Accurate Chiropractic
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGRWellness patients 6% 78,697 83,419 88,424 93,729 99,353 6.00%
Motor Vehicle Accident Victims 6% 3,553 3,766 3,992 4,232 4,486 6.00%
Work Related Injury Victims 1% 20,603 20,809 21,017 21,227 21,439 1.00%
Chronic Pain Sufferers Via 6% 13,141 13,929 14,765 15,651 16,590 6.00%
-
7/28/2019 Accurate Chiropractic
13/40
Accurate Chiropracticparadigm, there is easy access to our services without need of referral or membership in a
managed care organization. Within the area of workers' compensat ion, although managed caredoes play a role to a certain extent, our plan to market to "self insured" companies (see
Marketing Plan) will give our clinic ample exposure and access to thousands of injured workerswithout the stipulations of managed care, nor their propensity to slash medical fees.
___________________________________________________
1
Yellow Book 2003-2004, Ft. Myers/Cape Coral Edition, Chiropractic Section, pages 182-185.
4.2.1 Competition and Buying Patterns
The key element in the purchase decisions in the healthcare of accident victims is the
patient's perceptions of the doctor's competence and empathy with his or her situation. Moreso than in illness care, there is a certain psychosocial component that goes along with being
injured in an accident and the potential of being unable to provide for yourself or for your family
for any length of time. The doctor who can demonstrate to the patient that he has a goodsense of what the patient is experiencing is more likely to connect with and gain the trust of
that patient. This relationship is fostered by establishing a game plan for that pat ient's care andconsistently following that game plan so that there are no sudden changes or surprises.
Auto accident patients frequently are referred by personal injury attorneys and medical
doctors; therefore, it is essential to build relationships with attorneys in the area that specializein personal injury litigation as well as medical physicians. Maintaining these relationshipsrequires prompt reporting, open lines of communication, and the utilization of a team of
specialists in other fields of diagnostic imaging and medicine.
Patients rarely compare providers. Typically if they are referred by an outside source such as anattorney, physician, or other patient they follow the word of mouth referral. It is rare for
t i h i f hi t t th t lth h ill " h " f
-
7/28/2019 Accurate Chiropractic
14/40
Accurate Chiropractic
4.3 Target Market Segment Strategy
We have chosen this target market because it represents a portion of the population whose
needs match our offerings. Although for years many have viewed Chiropractors as "bonedoctors," we are actually specialist in helping correct problems related to the muscles, tendons,ligaments, and nerves, who use bones as mechanical levers to assist the body's natural healing
properties. Most injuries due to vehicular and work related acc idents involve the soft tissuesof the body, namely the muscles, ligaments, and nerves. In addition to the fac ts mentioned
above, it makes complete economical sense to target this market, because it is still the mostfinancially rewarding, with case average amounts being 30-50% higher than cases covered by
traditional insurance plans. Perhaps most importantly, this area needs this type of service. Asof the 2000 Census this section of Lee County (a 7 mile ring around our projected officelocation), one of the fastest growing counties in the country, had over 75,000 people in the
15-54 years of age category, a segment of the population that is projected to grow 6% by theyear 2005. Accident rates for this segment of the population are close to 30% higher than the
general population.
According to a compilation of data obtained from NHTSA (The National Highway Traffic SafetyAuthority), The Crashworthiness Data System, The Fatal Accident Sampling System, as well as
the General Estimates System, the national average with regard to incidence (that is the numberof a given event occuring within a population in a given time period) is 770 out of100,000. That is, 770 out of every 100,000 people will be involved in an accident each year.
In a growing area with as many young drivers as in Fort Myers, Fl., that number is much higher.In fact, according to data for the year 2001 obtained from the Florida Department of Highway
Safety and Motor Vehicles, the incidence for motor vehicle crashes across all age groups (age
15-85+) in the state of Florida is closer to 2,270 out of 100,000.1 This is nearly 3 times the
national average. Based on information provided by Scan/US Inc. That translates into over 3,500motor vehicle accidents for the residents living within a 7 mile ring around our office locat ion.2
Another key factor in analyzing our market is calculating injury prevalence. Prevalence is the
-
7/28/2019 Accurate Chiropractic
15/40
Accurate Chiropractic(3rd Edition). Baltimore, Lippincott Williams Wilkins Co., 2001
4 U.S. Census Bureau Statistics for 2000 Census with Population Reported by Age and Sex.5 U.S. Department of Labor, Bureau of Labor Statistics Injuries, Illnesses, and Fatalities www.
bls.gov/iif/home.htm6 Florida Division of Financial Services workers' compensation Claims Statistical Query (made10/1/2003) www.fldfs.com/WCAPPS/Claims_Research/Stats_Results.asp7 2003 Florida workers' compensation Reform
5.0 Strategy and Implementation Summary
Accurate Chiropractic, LLC will focus, geographically on the southwestern Lee County region of
Florida, particularly in the town of Fort Myers.
The target customers are those members of our community who have been injured in motorvehicle and work related acc idents either recently or in the past. We will reach these peopledirectly through emotional based direct response marketing and indirectly through our
contacts with local personal injury attorneys, medical physicians, and corporate clients.
5.1 Competitive Edge
We start with a competitive edge in that our location is ideal.Within a 7 mile ring around our
officethere are projected to be 165,958 people by the year 2005 (156,517 as of the 2000
census).1 There is no other competitor in this areathat we know of that can make the sameclaimand shares our vision for care of the injured. Our positioning in this area is hard to match;
the combination of land development and road improvement in the area make for hazardousdriving conditions andgreater potential for injured workers.We must be aware that wewill only
produce results if we maintain our mainstrategic focus and direct our marketing, businessdevelopment, and fulfillment in the area of injury and chronic pain care.
-
7/28/2019 Accurate Chiropractic
16/40
Accurate Chiropracticservices by stating we are the best, wecare, we have a friendly staff, etc .- everyone else is
doing just that.1Rather, we will sell a concept that strikes an emotional cord with the injured andcauses them to call a toll freevoice recorded message (people are more likely to call knowing
they will not be pressured by a live person)for a free report on various topics.2 Each topic, beit auto accident, back pain, orneck painwill have its own (800) number to allow us to track the
effectiveness of our advertising (wehave already purchased this tool from a companythatprovides the service and transcription of information calledPATlive).We will simply ask the
prospective patient to leave their name andaddress only (the software automatically recordstheir phone number) and give them the option of being directly connected to a caring
professional.3 The database will be managed by our clerical staff, who will enter data received
by fax from PATlive's transcription service directly into ourcontact management software andfollow-up with our system of mailing reports and newsletters.
The purpose of the free reports will be to show our prospects that we "really do" understand notonly their condition, but their situation as well (i.e. its affect on their work, family life, etc.), and
will lead them to the next level of a free "condition specific" evaluation. All free offers will have aone month expiration date with follow up reports and progressively enticing offersbeing sentthe 2nd and 3rd weeks. Any prospect that does not schedule within the first month will
automatically begin receiving our newsletter the next month.
Internal marketing is just as important to the well being of a chiropractic practice.Each patientwill receive a monthly newsletter and be"rewarded" for providing referrals of family and friends.
Rewards will be items such as free movie tickets and gift certificates to local restaurants.Biweekly half hour health seminars held in the office will be used to educate our patients onsubjects that are essential to maintaining their improved state of health.These two means of
communication with our existing client base will also provide a means of "back end" sales withdirect response advertisements for exercise, nutritional, and therapeutic devices.Asa means of
offsetting the cost of producing and mailing the newsletters, we will seek out corporate
partnerships from our suppliers. In this relationship we will include an advertisement of theirspecific product(s) in our newsletter in exchange for their financial backing.As our mailing listgrows, we will have more bargaining power with these corporate entities.(Although privacylaws prevent us from sharing our patients' personal information with these companies, it does not
-
7/28/2019 Accurate Chiropractic
17/40
Accurate Chiropracticfire safety, while we will check every child that participates for the presence of spinal
misalignments and educate their parents on child safety measures for automobile travel.We havealready secured the licensing as the official event coordinator for the Fort Myers area event to
be held in May 2004. Since this event began 10 years ago,practitioners in the state of Floridahave held some of the most successful events, with anywhere between 500 to4,000 children
being screened by theChiropractor.
It is important that we position ourselves as the most efficient and cooperative chiropractic
office in town by not only speaking about service, but demonstrating it. We will do this bybeing open on "off hours" and "off days." Historically chiropractic offices have been closed on
Tuesdays, Thursdays, and Saturdays, as well as early mornings andlunch hours. We willmake it apoint to provideopportunities for patients to be seen during these days and times. Patient
phone calls will be returned within 2 hours and a 24-hour emergency line will be provided for allpatients.Understanding that communication is essent ial to how physicians and attorneys handletheir clients, we will see to it that everyphysician and attorneywho refers a patient will get a
phone call from the doctorwithin 1 hour and a report within 48 hours, with regular statusreports to follow on a weekly basis. This high level of communication for patients and
professionalswill be accomplished during "off" hours by using a locator service which willautomatically send a message to the doctor's beeper or cell phone that a message has been
recorded.
As we expand further into the corporate market, we will seek to function as consultants tomidsize companies (50 or more employees).Our strategy will be basically the same, with just aslight variation.Direct response advertisements will be aimed at CFOs and safety managers
instead of accident victims.Free reports will be geared to peaking the corporate clients' interestin us as the expert at reducing insurance cost, improving employer-employee relationships, and
creating a safer work environment to help them keep more dollars in their pockets.Communicationin this area is paramount.We will send daily Fax summariesin a clear, concise
format to the companies' safety managers, detailinginjury and return to work status of theiremployees. Pat ients will be seen the same day as the injury,with an immediatestatus report tofollow within 1 hour of his/her visit. Newsletters specifically geared to the corporate client's
interestwill be sent monthly with legislative updates and tips for safety and injury prevention.Our
-
7/28/2019 Accurate Chiropractic
18/40
Accurate Chiropractic
5.3 Sales Strategy
Sales in our business are part service and part education. We must service the patient by
listening intently and identifying their chief area(s) of concern, and then provide visible evidence,when it exists, to show them what the cause of their problem is and the benefits of correctingthat problem. We will never sell a patient on a visit by visit basis, but rather on a per case
basis demonstrating the value of following a proven program that works for their complaint.
We must never be afraid to tell the patient everything they need, but also keep in mind peopledo not always buy what they need but what they emotionally desire. We must cause them to
emotionally desire better health. When a patient balks at our care plan we must refocus them onthe benefits of the end result and in the end be willing to walk away from someone who is notwilling to invest in their own health. Our fees are non-negotiable.
The same holds true when working at the corporate level. When selling a company on our
ability to service their workforce, we must make it clear that cheap care is not the same ascost-effective care. It is important to demonstrate how providing the right type of care for each
situation while costing them money in the short term will actually save them money byreducing lost work time, the cost of t raining new or replacement employees, and insurance
costs.
5.3.1 Sales Forecast
The following table and chart give a run down of forecasted sales. We expect sales to increase
steadily as our marketing program and contact management system (see Marketing StrategySummary, section 5.3) are put into place. The cost of Chiropractic Service is representative ofwhat we believe to be a reasonable assumption of how much we need to spend in advertising,
both internal and external, to obtain new patients. The unit cost of one new patient is
-
7/28/2019 Accurate Chiropractic
19/40
Accurate ChiropracticJanuary 2004 start date. We are, however, prepared to begin immediately providing adequate
funding is secured.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
Chiropractic Cases $412,475 $990,000 $1,188,000
Corporate Clients $18,000 $21,600 $25,920
Home Exercise Devices $5,700 $8,640 $10,800
Weight Loss System $3,760 $5,760 $6,912
Pillows $3,480 $5,616 $6,739
TENS Units $5,640 $8,640 $10,368
Total Sales $449,055 $1,040,256 $1,248,739
Direct Cost of Sales Year 1 Year 2 Year 3
Chiropractic Cases $4,125 $9,900 $11,880
Corporate Clients $3,600 $4,320 $5,184
Home Exercise Devices $2,622 $3,974 $4,968
Weight Loss System $1,269 $1,944 $2,333
Pillows $1,624 $2,617 $3,140
TENS Units $1,363 $2,091 $2,509
Subtotal Direct Cost of Sales $14,603 $24,846 $30,014
-
7/28/2019 Accurate Chiropractic
20/40
Accurate Chiropractic
5.4 Milestones
The accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning forimplementation.
What the table doesn't show is the commitment behind it. Our business plan includes completei i f l t l l i d ill h ld thl f ll t i t di
-
7/28/2019 Accurate Chiropractic
21/40
Accurate Chiropractic
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
"Whiplash: the Epidem ic"
Presentations to Attorneys
12/20/2003 1/20/2003 $50 Dr. Rubano Marketing
Compl ete Busi ness Pl an 10/10/2003 11/11/2003 $350 Dr. Rubano Admi ni strative
Establ ish Bank Account For
Business
11/1/2003 11/11/2003 $0 Dr. Rubano Administrative
Purchase Business Card sandLetterhead/Envelopes
11/3/2003 11/17/2003 $450 Sonia Rubano Marketing
Print 500 copies of MVA Free
Report
11/17/2003 11/17/2003 $200 Sonia Rubano Marketing
Compose Sales Letters For
MVA victims, Low Back Pain,
Neck Pain
9/10/2003 11/20/2003 $0 Dr. Rubano Marketing
Print Copy of Office Policy and
Procedural Ma nual
11/20/2003 11/23/2003 $20 S oni a Rubano Admi ni strati ve
Mail Intoductory Letter to 25
Area PI A ttorneys
11/20/2003 11/23/2003 $25 Dr. Rubano Marketing
Mail Introductory Letter to 25
Area Physicians
11/20/2003 11/23/2003 $25 Dr. Rubano Marketing
Letters to 4 Area High School
Vice Principals Re Driver safety
11/23/2003 11/25/2003 $4 Sonia Rubano Marketing
Follow-up Phone Calls to Area
Atto rneys
11/23/2003 11/26/2003 $0 Dr. Rubano Marketing
Followup Phone Call s to Area
Physicians
11/23/2003 11/26/2003 $0 Dr. Rubano Marketing
Secure Start Up Funding 10/31/2003 11/30/2003 $0 Dr. Rubano Administrative
Followup Calls To Vice
Principals
11/27/2003 11/30/2003 $0 Dr. Rubano Marketing
T ype and Print Sales Letters 9/20/2003 12/2/2003 $150 Soni a Rubano Marketi ng
Team Meeting 12/1/2003 12/5/2003 $0 Dr. Rubano Administrative
Team Meeting 12/15/2003 12/19/2003 $0 Dr. Rubano Administrative
C C t Cli t S l 11/30/2003 12/20/2003 $0 D R b M k ti
-
7/28/2019 Accurate Chiropractic
22/40
Accurate ChiropracticTeam Meeting 1/23/2004 1/26/2004 $0 Dr. Rubano Administrative
Followup Phone Call s withAddit ional Atto rneys and
Physicians
1/24/2004 1/27/2004 $0 Dr. Rubano Marketing
Inaugaral Letip Meeting 1/15/2004 1/29/2004 $0 Dr. Rubano Marketing
Mul ti pl e Di rect Response Ads 1/6/2004 1/31/2004 $320 Soni a Rubano Marketi ng
Contact MADD Organization
for Help with T een Driver
Safety Awareness
1/27/2004 2/1/2004 $0 Dr. Rubano Marketing
Team Meeting 1/30/2004 2/2/2004 $0 Dr. Rubano Administrative
Half Hour to Health Seminar 2/3/2004 2/3/2004 $50 Dr. Rubano Marketing
Team Meeting 2/6/2004 2/9/2004 $0 Dr. Rubano Administrative
Role Out Corporate Program
with Direct Response Post Cards
to CFO's
1/27/2004 2/14/2004 $350 Sonia Rubano Marketing
Team Meeting 2/13/2004 2/16/2004 $0 Dr. Rubano Administrative
Half Hour to Health Seminar 2/17/2004 2/17/2004 $50 Dr. Rubano Marketing
Team Meeting 2/20/2004 2/23/2004 $0 Dr. Rubano Administrative
Prepare and Mail Monthly
Newsletter
2/11/2004 2/25/2004 $250 Sonia Rubano Marketing
Letip Meeting 2/5/2004 2/26/2004 $30 Dr. Rubano Marketing
Presentati on to Corporate Cli ent 2/5/2004 2/26/2004 $100 Dr. Rubano Marketi ng
Whiplash The EpidemicPresentation to Attorney
2/20/2004 2/27/2004 $50 Dr. Rubano Marketing
Mul ti pl e Di rect Response Ads 2/1/2004 2/28/2004 $320 Soni a Rubano Marketi ng
Team Meeting 2/27/2004 3/2/2004 $0 Dr. Rubano Administrative
Half Hour To Health Seminar 3/2/2004 3/2/2004 $50 Dr. Rubano Marketing
Team Meeting 3/4/2004 3/7/2004 $0 Dr. Rubano Administrative
Presentations to Area High
Schools
1/10/2004 3/10/2004 $300 Dr. Rubano Marketing
Followup with Any Upcoming
Speaking Engage ments
3/5/2004 3/10/2004 $0 Sonia Rubano Marketing
Direct Response Post Card toCorporate Cli ents
2/27/2004 3/14/2004 $300 Sonia Rubano Marketing
Team Meeting 3/11/2004 3/14/2004 $0 Dr. Rubano Administrative
Half Hour to Health Seminar 3/16/2004 3/16/2004 $50 Dr. Rubano Marketing
Followup Phone call and 3/17/2004 3/20/2004 $0 Dr Rubano Marketing
-
7/28/2019 Accurate Chiropractic
23/40
Accurate Chiropractic
6.0 Web Plan Summary
Although we do not anticipate the website being a big player in our marketing and sales game
plan initially, we do understand the importance a web presence has in portraying a certain imageto the public. The Accurate Chiropractic, LLC website will offer basic information on thebenefits of chiropractic c are for various injuries and conditions, as well as listing our address,
contact information, and hours. We will list a series of FAQs (Frequently Asked Questions),and include a link to a mapping site with online directions to the office.
In the future, we may consider adding an interactive format that allows patients to check their
account balance and activity, pay bills, and schedule appointments online. It is our goal tokeep up with changes in technology so long as they are cost effective; therefore, we will reviewour web plan quarterly and make changes in accordance with our growth and cash flow analysis.
To further show off its expertise, the Accurate Chiropractic, LLC website should create a
resources area, offering articles, research and copies of our monthly newsletters to interestedparties. A calendar of upcoming seminars and Dr. Rubano's schedule of continuing education
will also be an excellent way of showing our commitment to keeping up with the latest innatural healthcare advances.
The key to the website strategy will be combining a very well designed front end, with a backend capable of recording leads. The web address, which is already under construction, is www.
accuratechiro.com.
6.1 Website Marketing Strategy
Initially, our website will not play a large part in our overall marketing strategy. As previously
stated, the Accurate Chiropractic, LLC site will be provided as a convenience for our active
-
7/28/2019 Accurate Chiropractic
24/40
Accurate Chiropractictechnical resource to build the trackable download and the newsletter capabilities.
7.0 Management Summary
The initial management depends on the founder himself. In addition to Dr. Rubano, we have backup consulting services provided by Sam Fisher, our CPA and Mary Snell, our corporate
attorney. We also have a consulting agreement with Altadonna Communications, who providessupport with regard to our marketing program.
7.1 Personnel Plan
The following table summarizes our personnel expenditures for the first three years, withcompensation increasing from less than $110K the first year to about $755K in the third. We
believe this plan is a compromise between fairness and expedience, and reflects our mindsettoward expansion to service a growing market. Year 1 salaries reflect 2 months for the front
desk position; initially this role will be included in the insurance staff position. The ChiropracticAssistant position will be added at the start of the fourth quarter to aid in the increased
patient flow.
Year 2 salaries reflect a full year for Associate Doctor #1 and a 1/2 year for Associate Doctor
#2. Performance bonuses will be calculated at the end of each year based on net profits.Employee benefits such as health insurance are addressed in the Profit and Loss Table (section
8.3). The detailed monthly personnel plan for the first year is included in the appendices.
Table: Personnel
Personnel Plan
-
7/28/2019 Accurate Chiropractic
25/40
Accurate Chiropracticexponential growth. While the goal of our external sales and marketing plan is to bring
new patients to the practice, the focus of our internal program will be to increase thevalue of the service provided.
3. We are also assuming start-up capital of $43,575 (provided by the owner), and an
initial long-term loan from a reputable funding source of another $164,000.
8.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following
table as annual assumptions. The monthly assumptions are included in the appendices. From thebeginning, we recognize that collection days are critical. Interest rates, tax rates, and personnelburden are based on worst case scenario assumptions.
Three of the more important underlying assumptions are:
1. We assume that there are no unforeseen changes in automobile insurance provisions
regarding personal injury protection coverage.2. We assume that motor vehicle accidents and injuries will continue at a ratecommensurate with that of the last 10-year period.
3. We assume that work place injuries continue at a rate commensurate with that of thelast 10 years as well.
Table: General Assumptions
General AssumptionsYear 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long term Interest Rate 10 00% 10 00% 10 00%
-
7/28/2019 Accurate Chiropractic
26/40
Accurate Chiropractic
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $14,694
Assumpti ons:
Average Percent Variabl e Cost 3%
Estimated Monthly Fixed Cost $14,216
-
7/28/2019 Accurate Chiropractic
27/40
Accurate ChiropracticDepreciation of long-term assets is as follows: X-ray equipment over a thirty year period,
chiropractic tables over a twenty year period, and computerized diagnostic equipment overa seven year period.
As with the break-even, we are projecting very conservatively regarding fixed cost, cost of
sales, and gross margin. Our fixed cost and cost of sales should be slightly lower in reality, andgross margin higher, than in this projection. In determining insurance, printing, and advertisingexpenses, we purposely projected higher than average costs. We prefer to project
conservatively so that we ensure adequate cash flow.
The detailed monthly projections are included in the appendices.
-
7/28/2019 Accurate Chiropractic
28/40
Accurate Chiropractic
-
7/28/2019 Accurate Chiropractic
29/40
Accurate Chiropractic
-
7/28/2019 Accurate Chiropractic
30/40
Accurate Chiropractic
Table: Profit and Loss
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $449,055 $1,040,256 $1,248,739
Direct Cost of Sales $14,603 $24,846 $30,014
Other Costs of Sales $0 $0 $0
Total Cost of Sales $14,603 $24,846 $30,014
Gross Margin $434,452 $1,015,410 $1,218,725
Gross Margin % 96.75% 97.61% 97.60%
Expenses
Payroll $109,166 $448,544 $753,692
Marketing/Promotion $20,000 $20,000 $20,000
Depreciation $4,248 $4,634 $4,634
Rent $15,100 $22,335 $25,455
Util ities $5,500 $9,000 $11,500
Insurance $925 $2,965 $3,575
Payroll Taxes $0 $0 $0
Office Supplies $4,763 $11,353 $14,205
Legal Fees $0 $2,500 $2,500
Accounti ng Fees $1,100 $2,500 $2,500
Computer Technical Support $660 $792 $872
XRay Film and Processor Maintenance $1,925 $3,890 $5,980
Professional Organization Membership $770 $966 $1,110
Employee Benefits Package $6,435 $21,060 $42,120
Total Operating Expenses $170,592 $550,539 $888,143
Profit Before Interest and Taxes $263,860 $464,871 $330,582
EBITDA $268,108 $469,505 $335,216
Interest Expense $14,910 $12,275 $9,525
-
7/28/2019 Accurate Chiropractic
31/40
Accurate Chiropractic
-
7/28/2019 Accurate Chiropractic
32/40
Accurate Chiropractic
Table: Cash Flow
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $112,264 $260,064 $312,185
Cash from Receivables $234,790 $645,903 $889,198
Subtotal Cash from Operations $347,054 $905,967 $1,201,383
Addit ional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabil ities (interest-free) $0 $0 $0
New Long-term Liabil ities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $347,054 $905,967 $1,201,383
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $109,166 $448,544 $753,692
Bill Payments $139,334 $270,089 $266,050
Subtotal Spent on Operations $248,500 $718,633 $1,019,742
Addit ional Cash Spen t
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0Other Liabil ities Principal Repayment $0 $0 $0
Long-term Li abi li ties Pri ncipal Repayment $27,504 $27,500 $27,500
Purchase Other Current Assets $0 $0 $0
-
7/28/2019 Accurate Chiropractic
33/40
Accurate Chiropractic
Table: Balance SheetPro Forma Bal ance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $140,050 $299,884 $454,024
Accounts Receivabl e $102,00 1 $236,290 $283,646
Other Current Assets $0 $0 $0
Total Current Assets $242,051 $536,173 $737,670
Long-term Assets
Long-term Assets $104,000 $104,000 $104,000
Accumulated Deprecia tion $4,248 $8,882 $13,516
Total Long-term Assets $99,752 $95,118 $90,484
Total Assets $341,803 $631,292 $828,155
Liabil ities and Capital Year 1 Year 2 Year 3
Current LiabilitiesAccounts Payab le $22 ,042 $22 ,213 $21,836
Current Borrowing $0 $0 $0
Other Current Liabili ties $0 $0 $0
Subtotal Current Liabil ities $22,042 $22,213 $21,836
Long-term Liabili ties $136,496 $108,996 $81,496
Total Liabili ties $158,538 $131,209 $103,332
Paid-in Capital $43,575 $43,575 $43,575
Retained Earnings ($34,575) $139,690 $456,507Earnings $174,265 $316,817 $224,740
Total Capital $183,265 $500,082 $724,823
Total Liabili ties and Capital $341,803 $631,292 $828,155
-
7/28/2019 Accurate Chiropractic
34/40
Accurate Chiropractic
Table: RatiosRatio Anal ysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 131.65% 20.04% 5.93%
Percent of Total Assets
Accounts Receivabl e 29.84% 37.43% 34.2 5% 21.14%
Other Current Assets 0.00% 0.00% 0.00% 45.36%
Total Current Assets 70.82% 84.93% 89.07% 71.11%
Long-term Assets 29.18% 15.07% 10.93% 28.89%Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabil i ties 6.45% 3.52% 2.64% 29.10%
Long-term Liabili ties 39.93% 17.27% 9.84% 19.50%
Total Liabili ties 46.38% 20.78% 12.48% 48.60%
Net Worth 53.62% 79.22% 87.52% 51.40%
Percent of Sal es
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 96.75% 97.61% 97.60% 100.00%Selling, General & Administrative Expenses 58.41% 58.00% 52.82% 75.10%
Advertising Expenses 0.00% 0.00% 0.00% 0.61%
Profit Before Interest and Taxes 58.76% 44.69% 26.47% 3.98%
Main Ratios
Current 10.98 24.14 33.78 1.86
Quick 10.98 24.14 33.78 1.38
Total Debt to Total Assets 46.38% 20.78% 12.48% 10.80%
Pre-tax Return on Net Worth 135.84% 90.50% 44.29% 60.83%
Pre-tax Return on Assets 72.83% 71.69% 38.77% 27.59%
Addit ional Ratios Year 1 Year 2 Year 3
Net Profit Margin 38.81% 30.46% 18.00% n.a
-
7/28/2019 Accurate Chiropractic
35/40
Appendix
Page 1
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
Sales
Chiropractic Cases 0% $0 $6,250 $12,500 $18,725 $25,000 $31,250 $37,500 $43,750 $50,000 $56,250 $62,500 $68,750
Corporate Clients 0% $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Home Exercise Devices 0% $300 $350 $400 $400 $450 $500 $500 $500 $550 $550 $600 $600
Weight Loss System 0% $240 $240 $240 $240 $320 $320 $320 $320 $320 $400 $400 $400
Pillows 0% $180 $210 $240 $240 $270 $270 $300 $330 $330 $360 $360 $390
TENS Units 0% $360 $360 $360 $360 $360 $480 $480 $480 $600 $600 $600 $600
Total Sales $2,580 $8,910 $15,240 $21,465 $27,900 $34,320 $40,600 $46,880 $53,300 $59,660 $65,960 $72,240
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Chiropractic Cases $0 $63 $125 $187 $250 $313 $375 $438 $500 $563 $625 $688
Corporate Clients $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300
Home Exercise Devices $138 $161 $184 $184 $207 $230 $230 $230 $253 $253 $276 $276
Weight Loss System $81 $81 $81 $81 $108 $108 $108 $108 $108 $135 $135 $135
Pillows $84 $98 $112 $112 $126 $126 $140 $154 $154 $168 $168 $182
TENS Units $87 $87 $87 $87 $87 $116 $116 $116 $145 $145 $145 $145
Subtotal Direct Cost of Sales $690 $790 $889 $951 $1,078 $1,193 $1,269 $1,346 $1,460 $1,564 $1,649 $1,726
-
7/28/2019 Accurate Chiropractic
36/40
Appendix
Page 2
Table: Personnel
Personnel Plan
Mon th 1 Mo nth 2 Mo nth 3 Month 4 Month 5 Mon th 6 Mon th 7 Mon th 8 Mon th 9 Month 10 Month 11 Month 12
Angelo M. Ruban o, Jr. D.C. 0% $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $5,000 $6,000 $6,000 $7,500 $7,500 $7,500
Associate Dr. #1 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Associate Dr. #2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Insurance Staff 0% $2,150 $2,150 $2,150 $2,150 $2,150 $2,150 $2,236 $2,236 $2,236 $2,236 $2,236 $2,236
Insurance Staff #2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Front Desk Staff 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,150 $2,150 $2,150
Front Desk Staff #2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Chiropractic Assistant #1 0% $0 $0 $0 $0 $0 $0 $0 $2,580 $2,580 $2,580 $2,580 $2,580
Chiropractic Assistant #2 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Chiropractic Assistant #3 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 2 2 2 2 2 2 2 3 3 4 4 4
Total Payroll $6,150 $6,150 $6,150 $6,150 $6,150 $6,150 $7,236 $10,816 $10,816 $14,466 $14,466 $14,466
-
7/28/2019 Accurate Chiropractic
37/40
Appendix
Page 3
Table: General Assumptions
General Assumptions
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
-
7/28/2019 Accurate Chiropractic
38/40
Appendix
Page 4
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 $2,580 $8,910 $15,240 $21,465 $27,900 $34,320 $40,600 $46,880 $53,300 $59,660 $65,960 $72,240
Direct Cost of Sales $690 $790 $889 $951 $1,078 $1,193 $1,269 $1,346 $1,460 $1,564 $1,649 $1,726
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $690 $790 $889 $951 $1,078 $1,193 $1,269 $1,346 $1,460 $1,564 $1,649 $1,726
Gross Margin $1,890 $8,121 $14,351 $20,514 $26,822 $33,128 $39,331 $45,535 $51,840 $58,097 $64,311 $70,515
Gross Margin % 73.26% 91.14% 94.17% 95.57% 96.14% 96.53% 96.87% 97.13% 97.26% 97.38% 97.50% 97.61%
Expenses
Payroll $6,150 $6,150 $6,150 $6,150 $6,150 $6,150 $7,236 $10,816 $10,816 $14,466 $14,466 $14,466
Marketing/Promotion $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667 $1,667
Depreciation $0 $386 $386 $386 $386 $386 $386 $386 $386 $386 $386 $386
Rent $0 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373 $1,373
Utilities $0 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Insurance $0 $0 $0 $0 $0 $0 $154 $154 $154 $154 $154 $154
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Supplies $0 $433 $433 $433 $433 $433 $433 $433 $433 $433 $433 $433
Legal Fees $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accounting Fees $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Computer Technical Support $0 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60
XRay Film and Processor
Maintenance
$0 $175 $175 $175 $175 $175 $175 $175 $175 $175 $175 $175
Professional Organization
Membership
15% $0 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70 $70
Employee Benefits Package $0 $585 $585 $585 $585 $585 $585 $585 $585 $585 $585 $585
Total Operating Expenses $7,817 $11,499 $11,499 $11,499 $11,499 $11,499 $12,739 $16,319 $16,319 $19,969 $19,969 $19,969
Profit Before Interest and Taxes ($5,927) ($3,378) $2,852 $9,015 $15,323 $21,629 $26,592 $29,216 $35,521 $38,128 $44,342 $50,546
EBITDA ($5,927) ($2,992) $3,239 $9,401 $15,710 $22,015 $26,978 $29,602 $35,907 $38,514 $44,728 $50,932
Interest Expense $1,348 $1,328 $1,309 $1,290 $1,271 $1,252 $1,233 $1,214 $1,195 $1,176 $1,157 $1,137
Taxes Incurred ($2,182) ($1,412) $463 $2,317 $4,216 $6,113 $7,608 $8,401 $10,298 $11,086 $12,956 $14,822
Net Profit ($5,092) ($3,295) $1,080 $5,407 $9,837 $14,264 $17,752 $19,601 $24,029 $25,866 $30,230 $34,586
Net Profit/Sales -197.36% -36.98% 7.09% 25.19% 35.26% 41.56% 43.72% 41.81% 45.08% 43.36% 45.83% 47.88%
-
7/28/2019 Accurate Chiropractic
39/40
Appendix
Page 5
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 $645 $2,228 $3,810 $5,366 $6,975 $8,580 $10,150 $11,720 $13,325 $14,915 $16,490 $18,060
Cash from Receivables $0 $65 $2,093 $6,841 $11,586 $16,260 $21,086 $25,897 $30,607 $35,321 $40,134 $44,903
Subtotal Cash from Operations $645 $2,292 $5,903 $12,207 $18,561 $24,840 $31,236 $37,617 $43,932 $50,236 $56,624 $62,963
Additional Cash Received
Sales Tax , VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $645 $2,292 $5,903 $12,207 $18,561 $24,840 $31,236 $37,617 $43,932 $50,236 $56,624 $62,963
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 $6,150 $6,150 $6,150 $6,150 $6,150 $6,150 $7,236 $10,816 $10,816 $14,466 $14,466 $14,466
Bill Payments $51 $1,660 $5,734 $7,687 $9,588 $11,594 $13,577 $15,255 $16,143 $18,098 $19,006 $20,942
Subtotal Spent on Operations $6,201 $7,810 $11,884 $13,837 $15,738 $17,744 $20,813 $26,071 $26,959 $32,564 $33,472 $35,408
Additional Cash Spent
Sales Tax , VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292 $2,292
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 $8,493 $10,102 $14,176 $16,129 $18,030 $20,036 $23,105 $28,363 $29,251 $34,856 $35,764 $37,700
Net Cash Flow ($7,848) ($7,810) ($8,272) ($3,922) $530 $4,804 $8,131 $9,254 $14,681 $15,379 $20,860 $25,263
Cash Balance $61,152 $53,342 $45,070 $41,148 $41,678 $46,482 $54,613 $63,867 $78,548 $93,927 $114,787 $140,050
-
7/28/2019 Accurate Chiropractic
40/40
Appendix
Page 6
Table: Balance Sheet
Pro Forma Balance Sheet
Mon th 1 Mo nth 2 Mo nth 3 Month 4 Month 5 Mon th 6 Mon th 7 Mon th 8 Mon th 9 Month 10 Month 11 Month 12
Assets Starting Balances
Curren t Assets
Cash $69,000 $61,152 $53,342 $45,070 $41,148 $41,678 $46,482 $54,613 $63,867 $78,548 $93,927 $114,787 $140,050
Accounts Receivable $0 $1,935 $8,553 $17,890 $27,14 8 $36,48 7 $45,968 $55,332 $64,595 $73,963 $83,388 $92,724 $102 ,001
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $69,000 $63,087 $61,895 $62,960 $68,296 $78,165 $92,450 $109,945 $128,462 $152,511 $177,315 $207,511 $242,051
Long -term Assets
Long-term Assets $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000 $104,000
Accumulated Depr eciation $0 $0 $386 $772 $1,158 $1,545 $1,931 $2,317 $2,703 $3,089 $3,475 $3,862 $4,248
Total Lo ng-term Assets $ 104 ,0 00 $10 4,000 $1 03,61 4 $1 03,22 8 $1 02 ,84 2 $1 02,45 5 $ 102 ,0 69 $ 101 ,6 83 $10 1,297 $10 0,911 $10 0,5 25 $ 10 0,1 38 $9 9,7 52
Total Assets $173,000 $167,087 $165,509 $166,187 $171,137 $180,621 $194,519 $211,628 $229,759 $253,422 $277,839 $307,649 $341,803
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 $1,471 $5,479 $7,370 $9,204 $11,14 3 $13,069 $14,719 $15,541 $17,467 $18,310 $20,182 $22,042
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $1,471 $5,479 $7,370 $9,204 $11,143 $13,069 $14,719 $15,541 $17,467 $18,310 $20,182 $22,042
L ong -term L ia bilitie s $ 164 ,0 00 $16 1,708 $1 59,41 6 $1 57,12 4 $1 54 ,83 2 $1 52,54 0 $ 150 ,2 48 $ 147 ,9 56 $14 5,664 $14 3,372 $14 1,0 80 $ 13 8,7 88 $ 13 6,4 96
Total Liabilities $164,000 $163,179 $164,895 $164,494 $164,036 $163,683 $163,317 $162,675 $161,205 $160,839 $159,390 $158,970 $158,538
Paid-in Capital $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575 $43,575
Retain ed Earnin gs ($3 4,575 ) ($ 34,575 ) ($ 34,57 5) ($ 34,57 5) ($34 ,5 75) ($34 ,5 75) ($3 4,575 ) ($3 4,5 75) ($3 4,575 ) ($3 4,575 ) ($3 4,575 ) ($3 4,575 ) ($3 4,575 )
Earnings $0 ($5,092) ($8,387) ($7,306) ($1,899) $7,938 $22,201 $39,953 $59,554 $83,583 $109,449 $139,679 $174,265
Total Capital $9,000 $3,908 $613 $1,694 $7,101 $16,938 $31,201 $48,953 $68,554 $92,583 $118,449 $148,679 $183,265
Total Lia bil itie s a nd Ca pital $ 173 ,0 00 $16 7,087 $1 65,50 9 $1 66,18 7 $1 71 ,13 7 $1 80,62 1 $ 194 ,5 19 $ 211 ,6 28 $22 9,759 $25 3,422 $27 7,8 39 $ 30 7,6 49 $ 34 1,8 03
Net Worth $9,000 $3,908 $613 $1,694 $7,101 $16,938 $31,201 $48,953 $68,554 $92,583 $118,449 $148,679 $183,265
top related