Financial Analysis Worksheet
Business Plan Format
For this assignment, you will need to construct your paper using the following outline:
1. Title page to include the title of your paper, team number, class, and team members.
2. Table of contents listing all of the major sections that I am listing.
3. Executive Summary – This is a one page summary of your entire project. You are submitting a plan to an executive team, so include the facts of the project. What do you want money for, how much, how much will you make, why, etc. Keep in mind, in the real world, this may be the only thing that they read. If it is not specific, the project is rejected!
4. Organizational Plan – This will talk about how you will structure as far as FTE’s, Leadership, and how your proposed service ties into the mission of the hospital.
5. Marketing segment – You can use some creative freedom here. What is the environment like, what is the competition for your service? How will you advertise? reach new clients? Who will you serve?
6. Financial Segment – Being a finance class, I expect this to be a focus. You need to discuss the assumptions listed below that would relate to this section. You should discuss the financial situation, but then you will need to submit a 5 year cash flow document, along with any others that reflect the operation of the business. You should also include NVP and IRR calculations as a way to justify the project.
7. Conclusion – Like the Executive Summary, this is important to a proposal. It should be less than one page, and contain the facts of your proposal, and why it should be approved. You should include the information that you concluded about the 5 year financial performance.
General Assumptions
Types of assumptions required for the financial portion of a business plan typically include answers to the following questions (Example of Typical Income Statement Assumption Information Requirements):
• What types of revenue?
• How many services will be offered to produce the revenue? (per month)
• How much labor will be required? (FTEs)
• What will the labor cost?
• How many and what type of supplies, drugs and/or devices will be required to offer the service?
• What will the supplies, drugs and/or devices cost?
• How much space will be required?
• What will the required space occupancy cost?
• Is special equipment required?
• If so, how much will it cost?
• Is staff training required to use the special equipment?
• If so, how much time is required, and what will it cost?
Identify how many of the assumption items listed in the example above can be found incorporated into your business plan.
Specific Assumptions
Use the following information to fill in the Excel Sheet loaded in your discussion forum. It will calculate a lot of the information that is being asked. You just need to enter this in the sheet, and can use part of it for your final submission.
Capital Expenses:
• Medical Equipment – $250,000
• Construction – $75,000
• Furniture – $30,000
• IT System – $25,000
• Contingency – 10,000
Year One Volume:
• 13,250 patient visits
• $75 net revenue per visit
Organizational Structure:
• 1 Manager – $60 per hour
• 4 Therapists – $50 per hour
• 2 Receptionists – $15 per hour
• The manager reports to the existing Director of Operations, who reports to the CEO (already existing, so no cost)
Expenses:
• Medical Supplies – per unit – $5
• Other Supplies – per unit – $1
• Purchased Services (repair contracts for equipment) – $10,000 yr
• Marketing – $45,000 yr
• Licenses – $5,000 yr
• Rent – $75,000 yr
• Utilities – $5,000 yr
