Start-up Funding | |
Start-up Expenses to Fund | $9,604 |
Start-up Assets to Fund | $16,000 |
Total Funding Required | $25,604 |
Assets | |
Non-cash Assets from Start-up | $0 |
Cash Requirements from Start-up | $16,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $16,000 |
Total Assets | $16,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $16,000 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $16,000 |
Capital | |
Planned Investment | |
Owners | $9,604 |
Investor | $0 |
Additional Investment Requirement | $0 |
Total Planned Investment | $9,604 |
Loss at Start-up (Start-up Expenses) | ($9,604) |
Total Capital | $0 |
Total Capital and Liabilities | $16,000 |
Total Funding | $25,604 |
John and Mary will be utilizing 518 sq. ft. (an extra large bedroom in the upstairs) of their home. John’s office area will be utilized for marketing and accounting operations. Mary’s office area will be utilized for data entry and clerical operations, etc.
Our position in the market will be a full-service medical reimbursement business with individual pricing. As stated previously, our goal is one-stop shopping for medical practices when it comes to administrative functions. Physicians 1st Billing and Claims Electronic Claims Service’s policy is to customize our charges based on the work we do, and the needs of each office. We find that each practice is unique and, therefore, we do not quote a “standard charge” for services.
Initially, Physicians 1st Billing and Claims will offer electronic billing of medical insurance claims. This is a badly needed service for most medical practices, and is even more critical since the Federal Government will mandate electronic submission of Medicare claims in the near future.
A detailed description of the electronic submission process follows. The data necessary to submit claims will be downloaded from the medical office and input into specialized computer software. The software performs certain generic edits on the data and stores the information. When a batch of claims is complete for an office, it is time to transmit to the national clearinghouse. The data travels via modems and telephone lines to the clearinghouse where the data is edited a second time. This second series of edits incorporates “insurance company specific edits.” Cooperating insurance carriers notify the clearinghouse of certain edits they feel are necessary to allow payment of their claims. These edits are performed on each claim before they are transmitted on to the carrier, thus guaranteeing accuracy and payment in most cases. Upon receiving the insurance claim from the clearinghouse, the carriers process the claim and send payment directly to the medical practice. With electronic transmission to the clearinghouse and on to the carrier, computerized data verification, and elimination of most of the human element, the process of claims payment is greatly simplified and accelerated. Physicians will no longer wait 30, 60 or 90 days for payment, but will have money in their hands usually within 14-18 days.
As practices begin experiencing the benefits of electronic submission, many will see the advantage of out-sourcing other administrative functions. Physicians 1st Billing and Claims’ full-featured practice management software will allow us to meet those needs. Patients can be billed for co-payments or amounts which their insurance company did not cover. Secondary and supplementary insurance can be tracked and payments and balances applied accurately. The software utilizes state-of-the-art, open-item accounting, where most other systems use balance-forward systems. Outstanding receivables can be tracked with insurance aging reports, in several different sequences for ease of use. A complete practice analysis will increase office efficiency by showing where money is coming from. For each procedure, the charges and percentage of total charges they represent are calculated and printed for immediate reference. Transaction Journals and Detail Ledgers provide an accurate overall picture of the practice.
With managed care sweeping the country, it is imperative for medical practices to evaluate the benefits they receive from affiliation with different organizations. Our managed care contract service tracks payments and analyzes the information to produce customized reports showing profitability, or lack of profitability, with each managed care facility. These reports are critical when decisions need to be made on renewing and negotiating contracts.
Claim Systems’ state-of-the-art software will allow the physician to do complete dictation transcription. This allows the physician to meet the needs of the new strict HCFA mandate on clarity of all Medicare claims.
Physicians 1st Billing and Claims’ number one goal is to provide outstanding service.
We show our dedication to service by providing the physician one-stop shopping for all his or her billing and claims needs. The services we provide are as follows:
Initially we will focus on just claims filing. In the near future we will diligently pursue our goal of providing one-stop shopping for physicians’ medical office management.
An evaluation is performed on each medical practice during the marketing phase. This will allow us to determine the needs of the practice and how to charge for services rendered.
During the evaluation certain facts are gathered, such as:
Included in the appendix to this plan are copies of Physicians 1st Billing and Claims’ sales brochure and tips brochure. These brochures were developed with the expertise of a national marketing company specializing in medical reimbursement issues. The sales brochure will be used in conjunction with sales calls. Physicians 1st Billing and Claims’ Tips brochure will be utilized as a direct mail piece. Also included are copies of business cards and stationery.
The computer software that is the crux of Physicians 1st Billing and Claims’ medical reimbursement business is state of the art. Physicians 1st Billing and Claims is running in Windows 95. The software was specifically developed as a tool for medical reimbursement consultants. This is important because some software being sold is written to manage a doctor’s office and does not necessarily incorporate all functions that are needed for consultants. The software also includes the latest features needed for managed care organization management, including tables for the numerous fee schedules which may be required, and customized reports to evaluate contacts.
The ET&T clearinghouse, which verifies the claims data, is highly respected in the industry. They are members of and have been certified by AFECHT, a national policing organization. They utilize the American National Standards formats recognized by Medicare and most commercial insurance carriers. They guarantee claims are 98 percent accurate before being sent on to carriers.
As stated earlier in 3.1, Mary and John plan to initially process claims manually and electronically. As they gain experience, they will offer full medical office consulting services as follows:
Physicians 1st Billing and Claims’ target market consists of any medical practice or health care delivery unit that utilizes the HCFA-1500 format (a national standard utilized by Medicare) for submission of claims. This includes family practice, internal medicine, surgeons, psychologists, chiropractors, physical therapists, podiatrists, specialists, ambulance services, medical laboratories, etc. Physicians 1st Billing and Claims can also process claims for dentists with the use of special ADA software.
New practices are particularly appealing as Physicians 1st Billing and Claims can assist the new physician and his or her staff in billing and claims training. By equipping the physicians with a a well trained staff in claims handling and putting an efficient billing program into place, Physicians 1st Billing and Claims can reduce the stress of start up and ensure greater likelihood of a practice’s success due in part to increased cash flow.
The following is a chart showing the number of physicians in (omitted) for each speciality mentioned.
Number and Specialty
5 Allergy-Immunology 47 Anesthesiologist 3 Cardiovascular 12 Cardiovascular Surgery 84 Chiropractors 1 Clinical Genetics 2 Child Psychiatry 1 Clinical Immunology 5 Colon Rectal Surgery 10 Critical Care Medicine 179 Dental 11 Dermatology 1 Diabetes 35 Diagnostic Radiology 1 Education 21 Emergency Medicine 16 Ear, Nose and Throat 114 Family Practice 30 Family Practice Residents 1 Family Practice Sports Med. 12 Gastroenterology 10 Geriatrics 22 General Surgery 1 General Surgery Burns 7 Gynecology 7 Hematology 4 Infectious Diseases 40 Internal Medicine 10 Neurology 12 Nephrology 4 Neonatal-Prenatal Medicine 3 Nuclear Radiology 9 Neurological Surgery 26 Obstetrics 1 Obstetrics & Gynecology Resident 1 Occupational Medicine 3 Oncology 22 Ophthalmology 35 Orthopedic Surgery 7 Orthopedic Surgery Resident 14 Optometry 24 Pediatrics 14 Psychiatry 49 Psychologists 1 Pediatrics Pulmonary 6 Physical Med. & Rehab. 15 Physical therapy 1 Pediatric Nephrology 9 Plastic Surgery 21 Pathology 11 Pulmonary 3 Rheumatology 6 Therapeutic Radiology 13 Thoracic Surgery 14 Urology 12 Vascular Surgery
Physicians 1st Billing and Claims’ initial plan is to sign a single doctor practice. An ideal target would be a family practice physician.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Physicians | 2% | 867 | 884 | 902 | 920 | 938 | 1.99% |
Dentists | 2% | 179 | 183 | 187 | 191 | 195 | 2.16% |
Other | 2% | 18 | 18 | 18 | 18 | 18 | 0.00% |
Total | 1.98% | 1,064 | 1,085 | 1,107 | 1,129 | 1,151 | 1.98% |
The Federal Government’s influence is quite positive. In May, 1992, the Health Care Financing Administration, the governing body for Medicare, established what they call “payment floors” for Medicare claims. Carriers contracted to pay Medicare claims were told to hold paper claims’ payments until “at least the 27th day after receipt.” Electronic claims were to be held until the 14th day, but had to be paid by the 19th day. If “clean claims” (claims that are error free) were not paid by the 19th day after receipt, the Federal Government would have to pay interest on the claim amount. No payment penalties were placed on paper claims. Program Memorandum AB-92-5 described above, was beneficial for the electronic medical claims industry.
Several states have passed mandates of their own since 1992, but until now there has been no real action by the Federal Government on this issue. As stated earlier, it is expected that Congress will mandate electronic submission of Medicare claims in the near future and the cut-off date for paper claims will follow soon after. After the cut-off date, paper Medicare claims will not be accepted.
If history is any indication and current trends continue, commercial insurance carriers will follow suit within a short period of time. It is in their best interest as well. Statistics show that it currently costs a commercial carrier between $2.60 to $20.00 to process a claim. The same claim can be processed electronically for approximately $1.10. The conversion costs of moving from paper to electronic processing can be extensive, but in the long run these savings will be substantial.
Our main competition is Bi-State Medical Consulting. They provide full service medical claims management.
Their strengths are:
Their weaknesses are:
The strengths and weaknesses, however, seem of little consequence as the local market by all accounts is untouched, and no other company in this area can offer the software features or the dedicated service that Physicians 1st Billing and Claims is able to offer.
The bottom line of our ability to compete lies in our ability to provide any and every physician with free practice management software, two-way computer communications which allow for next day patient records updating, and substantially improved cash flow for the physician.
If Congress does mandate electronic submission of insurance claims during 1998, 600 physicians will be scrambling to meet the mandates. Since October, 1990, physicians treating Medicare and Medicaid patients have been required by law to file the necessary claims for these individuals. If practices are unable to meet the mandates, they will lose a good portion of their patient base.
During the past few years, medical practice’s interest in Total Quality Control (TQC) has intensified. Part of this is attributed to the Federal Government and the American public’s interest in health care reform. Physicians fear that if they do not voluntarily comply, more Federal regulations will be imposed.
The managed care movement across America is also influencing medical practices. In the past, doctors personally decided what they would charge for services rendered. For many physicians this fee-for-service payment method is a thing of the past. With managed care, physicians sign contracts and affiliate with different health maintenance organizations (HMOs) or preferred provider organizations (PPOs). Most decide to affiliate for one of two reasons:
Studies show that the No. 1 issue with consumers today is “personal service.” They are tired of robotic salespeople, hollow sales promises, and mediocre support from unresponsive technical staff. They want to know that someone really cares about their concerns and wants to resolve their problems. They want thoroughly thought out solutions that reap benefits. And they want it when they want it. Physicians 1st Billing and Claims understands this because we have been in their position.
Physicians 1st Billing and Claims also understands that they want a reasonable price for services. That is why Physicians 1st Billing and Claims takes the time to evaluate the needs of each medical office and then we customize our service and our charges, based on needs. We need to make sure we are not overcharging or undercharging. If we’re overcharging, then the client will not be happy. If we’re undercharging, then we won’t be happy and we probably won’t do a good job. What we’re looking for is win-win, long-term relationships with our clients. Zig Ziglar, noted sales trainer, asks the question, “Would you buy from you? Are you the type of business that you would like to do business with?” Physicians 1st Billing and Claims feels we are the type of company that anyone would be happy to do business with.
Physicians 1st Billing and Claims can provide the following benefits:
No one else in the local market can offer this service package.
There is a marked increase in results when multiple items are used in concert to attain your goal, a contract for services between you and a health care practice.
The basic plan is divided into five segments:
Contacts to implement this marketing strategy will be from a prior developed database of physicians who currently do not file medical claims electronically. This information is obtained from public records.
We believe it is much smarter for a medical practice to out-source the detail work of insurance processing to an expert medical reimbursement service instead of trying to make the transition to in-house processing themselves. For years medical practices have been relying on the expert advice of accounting services for tax issues and financial planning. These areas have become very complicated and expertise is needed to ensure judicious decisions. Insurance processing has become very complicated as well, and physicians need to begin relying on expert services to maximize their reimbursement from insurance carriers.
Most medical offices are computerized to the degree that they own a computer and software with capabilities to set appointments, bill patients, and print paper insurance claims. Most do not have capabilities to transmit claims electronically or scientifically evaluate managed care contracts, and the transition is expensive.
Their current software and system have been very stable, and for years may not have even required a software update. Electronic claims submission is a very volatile and different industry requiring frequent software modifications to stay abreast of industry changes. Expertise and time is required over and above what the normal medical office can afford.
For most offices the transition would begin with buying new hardware (or updating the old), claims software, modems, communications software, etc. Very likely the current medical staff will not have the expertise to handle upgrades, install programs, test modems, understand baud rates, conduct initial testing, and other essential skills. This means the office has to hire someone with these skills or retain an expensive support service. With the high turnover of personnel that most medical offices currently experience, retaining another type of employee adds a completely new dimension.
The logical solution to meeting Federal mandates and to process all claims electronically, is to contract with an expert electronic medical billing and reimbursement service. This allows current office staff to resume the tasks they were trained to do, such as assist patients and doctors.
With a service-oriented business such as this, clients must be brought on one at a time. The full practice analysis will be conducted with each need being identified. Charges will be negotiated based on these needs. When we have successfully met the needs of each practice, the practice will be more inclined to promote our business to other medical practices that would benefit from our service. Studies have shown that the most common way to expand a medical reimbursement business is through referrals from current clients.
In addition to the on-going program discussed above, Physicians 1st Billing and Claims will incorporate numerous other strategies simultaneously.
In general they are:
Physicians 1st Billing and Claims’s pricing strategy is a two part program:
Part 1: The first question that must be asked in the negotiation process is, “Does this practice want complete claims management?” If the answer is yes, Physicians 1st Billing and Claims will negotiate services based on a percentage. Usually the percentage will be from 6 to 10 percent based on the size of the practice.
Part 2: If the practice simply wants claims filing, the pay-for-services rendered will be based on a sliding scale with ranges between $3.50 and $5.00. This scale is divided as follows:
1-99 | $5.00 |
100-199 | $4.50 |
200-299 | $4.25 |
300-399 | $4.00 |
400+ | $3.50 |
A one time setup charge between $150.00 and $500.00 based on patient load will be assessed and will be due at contract signing.
The following graph and chart reflect the realistic goals we have set.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Service 1 | 33,000 | 48,000 | 52,000 |
Service 2 | 28,800 | 0 | 0 |
Total Unit Sales | 61,800 | 48,000 | 52,000 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Service 1 | $3.50 | $3.50 | $3.50 |
Service 2 | $1.50 | $1.50 | $3.50 |
Sales | |||
Service 1 | $115,500 | $168,000 | $182,000 |
Service 2 | $43,200 | $0 | $0 |
Total Sales | $158,700 | $168,000 | $182,000 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Service 1 | $0.00 | $0.00 | $0.00 |
Service 2 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Service 1 | $0 | $0 | $0 |
Service 2 | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
Physicians 1st Billing and Claims is a franchise affiliated with the nationally known Medical billing franchise. This affiliation allows us to take advantage of the prestige and experience associated with the national company. Included with affiliation is:
See Milestone table.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
First Client | 10/1/1998 | 10/30/1998 | $1,200 | John & Mary Biller | S&M |
Second Client | 10/30/1998 | 11/30/1998 | $1,200 | John & Mary Biller | S&M |
Third Client | 11/30/1998 | 12/30/1998 | $1,200 | John & Mary Biller | S&M |
Fourth Client | 12/30/1998 | 1/30/1998 | $1,200 | John & Mary Biller | S&M |
Fifth Client | 1/1/1999 | 2/1/1999 | $1,200 | John & Mary Biller | S&M |
Totals | $6,000 |
As stated earlier in the section on Company Ownership, the primary management of the company will be handled by John Biller. As President of Physicians 1st Billing and Claims, John brings 16 years of management experience to his position. John holds a Bachelor of Science degree from Ball State University in Education. John’s education and experience in the medical field come from his extensive training in Physiology and Anatomy as a major part of a Health Science degree. John managed Big Timber Building Materials from 1982 to 1995. Having been responsible for sales in excess of $12 million, John is more than capable of leading Physicians 1st Billing and Claims to the Number 1 billing and claims processing firm in the local area. John will handle all marketing and sales functions. John will oversee the data processing, training, accounting, and computer departments.
Mary will serve as the Chief Operating Officer of administration and clerical. Mary brings 18 years of valuable experience to her administrative post. Mary holds a Bachelor of Science degree from Ball State University in Education. Mary has successfully organized and headed many community endeavors that without her foresight would never have achieved their intended goals. Mary will mainly be responsible for initial tele-marketing, data entry, customer service, and disseminating of company information. Mary has 13 years in medical claims filing and three years in secretarial training; both lend themselves well to the departments she will head up. Physicians 1st Billing and Claims and its customers are in good hands with Mary’s leadership.
John and Mary will assume full-time management of and employment at Physicians 1st Billing and Claims.
Two other part-time employees who are equally as valuable for the roles they will play in the operations of Physicians 1st Billing and Claims are Erika and Matthew Biller. Erika will assume some data entry duties and facility maintenance duties. Matthew will assume facility maintenance duties to start and will later participate in data entry. Erika and Matthew will both be responsible for manual clerical duties which are vital to the operations of Physicians 1st Billing and Claims.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Mary | $21,000 | $26,000 | $30,000 |
John | $21,000 | $26,000 | $30,000 |
Matthew and Erika | $6,000 | $10,000 | $10,000 |
Total People | 4 | 4 | 4 |
Total Payroll | $48,000 | $62,000 | $70,000 |
The business will be financed mainly through cash flow. With a service oriented business our main investment is for initial software and computer equipment. During subsequent years, other than normal overhead, we will be looking at:
This financial plan depends on important assumptions, most of which are shown in the following table.
General Assumptions | |||
Year 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% |
Tax Rate | 19.80% | 20.00% | 20.83% |
Other | 0 | 0 | 0 |
The following shows critical profit variables.
Physicians 1st Billing and Claims will show a loss for the first few months of business operation, but profits will increase with sales volume.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $158,700 | $168,000 | $182,000 |
Direct Cost of Sales | $0 | $0 | $0 |
Other Costs of Sales | $0 | $0 | $0 |
Total Cost of Sales | $0 | $0 | $0 |
Gross Margin | $158,700 | $168,000 | $182,000 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $48,000 | $62,000 | $70,000 |
Marketing/Promotion | $14,730 | $15,672 | $16,614 |
Depreciation | $0 | $0 | $0 |
Franchise Fee | $1,596 | $0 | $0 |
Rent | $1,608 | $700 | $700 |
Utilities | $876 | $600 | $600 |
Insurance | $204 | $204 | $204 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $67,014 | $79,176 | $88,118 |
Profit Before Interest and Taxes | $91,686 | $88,824 | $93,882 |
EBITDA | $91,686 | $88,824 | $93,882 |
Interest Expense | $1,405 | $1,040 | $640 |
Taxes Incurred | $17,879 | $17,557 | $19,422 |
Net Profit | $72,402 | $70,227 | $73,820 |
Net Profit/Sales | 45.62% | 41.80% | 40.56% |
The break-even analysis shows that Physicians 1st Billing and Claims has a good balance of fixed costs and sufficient sales strength to remain healthy. As with any business, the first few months will show negative financial numbers.
Break-even Analysis | |
Monthly Units Break-even | 2,175 |
Monthly Revenue Break-even | $5,585 |
Assumptions: | |
Average Per-Unit Revenue | $2.57 |
Average Per-Unit Variable Cost | $0.00 |
Estimated Monthly Fixed Cost | $5,585 |
Initially, cash flow will be supported by the personal savings accounts of the head officers of this company, and a four-year loan of $16,000, backed by the owners’ assets.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $111,467 | $165,232 | $177,833 |
Subtotal Cash from Operations | $111,467 | $165,232 | $177,833 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $111,467 | $165,232 | $177,833 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $48,000 | $62,000 | $70,000 |
Bill Payments | $32,289 | $38,842 | $37,982 |
Subtotal Spent on Operations | $80,289 | $100,842 | $107,982 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $3,600 | $4,000 | $4,000 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $83,889 | $104,842 | $111,982 |
Net Cash Flow | $27,577 | $60,390 | $65,851 |
Cash Balance | $43,577 | $103,968 | $169,819 |
The following is the Projected Balance Sheet for the next three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $43,577 | $103,968 | $169,819 |
Accounts Receivable | $47,233 | $50,001 | $54,168 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $90,811 | $153,969 | $223,987 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $90,811 | $153,969 | $223,987 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $6,009 | $2,940 | $3,138 |
Current Borrowing | $12,400 | $8,400 | $4,400 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $18,409 | $11,340 | $7,538 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $18,409 | $11,340 | $7,538 |
Paid-in Capital | $9,604 | $9,604 | $9,604 |
Retained Earnings | ($9,604) | $62,798 | $133,025 |
Earnings | $72,402 | $70,227 | $73,820 |
Total Capital | $72,402 | $142,629 | $216,448 |
Total Liabilities and Capital | $90,811 | $153,969 | $223,987 |
Net Worth | $72,402 | $142,629 | $216,448 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 6411, Insurance Agents, Brokers, and Service, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 5.86% | 8.33% | 2.40% |
Percent of Total Assets | ||||
Accounts Receivable | 52.01% | 32.47% | 24.18% | 26.30% |
Other Current Assets | 0.00% | 0.00% | 0.00% | 64.30% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 90.60% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 9.40% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 20.27% | 7.37% | 3.37% | 48.20% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 9.50% |
Total Liabilities | 20.27% | 7.37% | 3.37% | 57.70% |
Net Worth | 79.73% | 92.63% | 96.63% | 42.30% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 100.00% | 100.00% | 100.00% | 100.00% |
Selling, General & Administrative Expenses | 54.38% | 58.20% | 59.44% | 60.10% |
Advertising Expenses | 0.00% | 0.00% | 0.00% | 1.70% |
Profit Before Interest and Taxes | 57.77% | 52.87% | 51.58% | 5.20% |
Main Ratios | ||||
Current | 4.93 | 13.58 | 29.71 | 1.66 |
Quick | 4.93 | 13.58 | 29.71 | 1.45 |
Total Debt to Total Assets | 20.27% | 7.37% | 3.37% | 57.70% |
Pre-tax Return on Net Worth | 124.69% | 61.55% | 43.08% | 5.80% |
Pre-tax Return on Assets | 99.42% | 57.01% | 41.63% | 13.70% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 45.62% | 41.80% | 40.56% | n.a |
Return on Equity | 100.00% | 49.24% | 34.10% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.36 | 3.36 | 3.36 | n.a |
Collection Days | 55 | 106 | 104 | n.a |
Accounts Payable Turnover | 6.37 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 46 | 29 | n.a |
Total Asset Turnover | 1.75 | 1.09 | 0.81 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.25 | 0.08 | 0.03 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $72,402 | $142,629 | $216,448 | n.a |
Interest Coverage | 65.26 | 85.41 | 146.69 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.57 | 0.92 | 1.23 | n.a |
Current Debt/Total Assets | 20% | 7% | 3% | n.a |
Acid Test | 2.37 | 9.17 | 22.53 | n.a |
Sales/Net Worth | 2.19 | 1.18 | 0.84 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Service 1 | 0% | 400 | 800 | 1,200 | 1,800 | 2,200 | 2,600 | 3,000 | 3,400 | 3,800 | 4,200 | 4,600 | 5,000 |
Service 2 | 0% | 0 | 0 | 0 | 0 | 2,200 | 2,600 | 3,000 | 3,400 | 3,800 | 4,200 | 4,600 | 5,000 |
Total Unit Sales | 400 | 800 | 1,200 | 1,800 | 4,400 | 5,200 | 6,000 | 6,800 | 7,600 | 8,400 | 9,200 | 10,000 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Service 1 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | $3.50 | |
Service 2 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | $1.50 | |
Sales | |||||||||||||
Service 1 | $1,400 | $2,800 | $4,200 | $6,300 | $7,700 | $9,100 | $10,500 | $11,900 | $13,300 | $14,700 | $16,100 | $17,500 | |
Service 2 | $0 | $0 | $0 | $0 | $3,300 | $3,900 | $4,500 | $5,100 | $5,700 | $6,300 | $6,900 | $7,500 | |
Total Sales | $1,400 | $2,800 | $4,200 | $6,300 | $11,000 | $13,000 | $15,000 | $17,000 | $19,000 | $21,000 | $23,000 | $25,000 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Service 1 | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Service 2 | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Service 1 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Service 2 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Mary | 0% | $1,000 | $1,000 | $1,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
John | 0% | $1,000 | $1,000 | $1,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Matthew and Erika | 0% | $400 | $400 | $400 | $400 | $400 | $400 | $600 | $600 | $600 | $600 | $600 | $600 |
Total People | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | |
Total Payroll | $2,400 | $2,400 | $2,400 | $4,400 | $4,400 | $4,400 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 |
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 | $1,400 | $2,800 | $4,200 | $6,300 | $11,000 | $13,000 | $15,000 | $17,000 | $19,000 | $21,000 | $23,000 | $25,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Costs of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $1,400 | $2,800 | $4,200 | $6,300 | $11,000 | $13,000 | $15,000 | $17,000 | $19,000 | $21,000 | $23,000 | $25,000 | |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $2,400 | $2,400 | $2,400 | $4,400 | $4,400 | $4,400 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | |
Marketing/Promotion | $280 | $410 | $630 | $770 | $950 | $1,130 | $1,310 | $1,490 | $1,670 | $1,850 | $2,030 | $2,210 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Franchise Fee | $133 | $133 | $133 | $133 | $133 | $133 | $133 | $133 | $133 | $133 | $133 | $133 | |
Rent | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | $134 | |
Utilities | $73 | $73 | $73 | $73 | $73 | $73 | $73 | $73 | $73 | $73 | $73 | $73 | |
Insurance | $17 | $17 | $17 | $17 | $17 | $17 | $17 | $17 | $17 | $17 | $17 | $17 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $3,037 | $3,167 | $3,387 | $5,527 | $5,707 | $5,887 | $6,267 | $6,447 | $6,627 | $6,807 | $6,987 | $7,167 | |
Profit Before Interest and Taxes | ($1,637) | ($367) | $813 | $773 | $5,293 | $7,113 | $8,733 | $10,553 | $12,373 | $14,193 | $16,013 | $17,833 | |
EBITDA | ($1,637) | ($367) | $813 | $773 | $5,293 | $7,113 | $8,733 | $10,553 | $12,373 | $14,193 | $16,013 | $17,833 | |
Interest Expense | $131 | $128 | $126 | $123 | $121 | $118 | $116 | $113 | $111 | $108 | $106 | $103 | |
Taxes Incurred | ($530) | ($99) | $137 | $130 | $1,034 | $1,399 | $1,723 | $2,088 | $2,452 | $2,817 | $3,181 | $3,546 | |
Net Profit | ($1,237) | ($396) | $550 | $520 | $4,138 | $5,596 | $6,894 | $8,352 | $9,810 | $11,268 | $12,726 | $14,184 | |
Net Profit/Sales | -88.39% | -14.15% | 13.09% | 8.25% | 37.62% | 43.04% | 45.96% | 49.13% | 51.63% | 53.66% | 55.33% | 56.73% |
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 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $47 | $1,447 | $2,847 | $4,270 | $6,457 | $11,067 | $13,067 | $15,067 | $17,067 | $19,067 | $21,067 | |
Subtotal Cash from Operations | $0 | $47 | $1,447 | $2,847 | $4,270 | $6,457 | $11,067 | $13,067 | $15,067 | $17,067 | $19,067 | $21,067 | |
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 | $0 | $47 | $1,447 | $2,847 | $4,270 | $6,457 | $11,067 | $13,067 | $15,067 | $17,067 | $19,067 | $21,067 | |
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 | $2,400 | $2,400 | $2,400 | $4,400 | $4,400 | $4,400 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | $4,600 | |
Bill Payments | $8 | $256 | $811 | $1,255 | $1,416 | $2,480 | $3,021 | $3,524 | $4,066 | $4,608 | $5,150 | $5,692 | |
Subtotal Spent on Operations | $2,408 | $2,656 | $3,211 | $5,655 | $5,816 | $6,880 | $7,621 | $8,124 | $8,666 | $9,208 | $9,750 | $10,292 | |
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 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $2,708 | $2,956 | $3,511 | $5,955 | $6,116 | $7,180 | $7,921 | $8,424 | $8,966 | $9,508 | $10,050 | $10,592 | |
Net Cash Flow | ($2,708) | ($2,909) | ($2,065) | ($3,108) | ($1,846) | ($724) | $3,146 | $4,642 | $6,100 | $7,558 | $9,016 | $10,474 | |
Cash Balance | $13,292 | $10,383 | $8,318 | $5,210 | $3,364 | $2,640 | $5,786 | $10,428 | $16,528 | $24,087 | $33,103 | $43,577 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $16,000 | $13,292 | $10,383 | $8,318 | $5,210 | $3,364 | $2,640 | $5,786 | $10,428 | $16,528 | $24,087 | $33,103 | $43,577 |
Accounts Receivable | $0 | $1,400 | $4,153 | $6,907 | $10,360 | $17,090 | $23,633 | $27,567 | $31,500 | $35,433 | $39,367 | $43,300 | $47,233 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $16,000 | $14,692 | $14,536 | $15,225 | $15,570 | $20,454 | $26,273 | $33,352 | $41,928 | $51,962 | $63,453 | $76,403 | $90,811 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $16,000 | $14,692 | $14,536 | $15,225 | $15,570 | $20,454 | $26,273 | $33,352 | $41,928 | $51,962 | $63,453 | $76,403 | $90,811 |
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 | $230 | $770 | $1,209 | $1,334 | $2,380 | $2,904 | $3,389 | $3,913 | $4,437 | $4,961 | $5,485 | $6,009 |
Current Borrowing | $16,000 | $15,700 | $15,400 | $15,100 | $14,800 | $14,500 | $14,200 | $13,900 | $13,600 | $13,300 | $13,000 | $12,700 | $12,400 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $16,000 | $15,930 | $16,170 | $16,309 | $16,134 | $16,880 | $17,104 | $17,289 | $17,513 | $17,737 | $17,961 | $18,185 | $18,409 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $16,000 | $15,930 | $16,170 | $16,309 | $16,134 | $16,880 | $17,104 | $17,289 | $17,513 | $17,737 | $17,961 | $18,185 | $18,409 |
Paid-in Capital | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 | $9,604 |
Retained Earnings | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) | ($9,604) |
Earnings | $0 | ($1,237) | ($1,634) | ($1,084) | ($564) | $3,573 | $9,169 | $16,063 | $24,415 | $34,224 | $45,492 | $58,218 | $72,402 |
Total Capital | $0 | ($1,237) | ($1,634) | ($1,084) | ($564) | $3,573 | $9,169 | $16,063 | $24,415 | $34,224 | $45,492 | $58,218 | $72,402 |
Total Liabilities and Capital | $16,000 | $14,692 | $14,536 | $15,225 | $15,570 | $20,454 | $26,273 | $33,352 | $41,928 | $51,962 | $63,453 | $76,403 | $90,811 |
Net Worth | $0 | ($1,237) | ($1,634) | ($1,084) | ($564) | $3,573 | $9,169 | $16,063 | $24,415 | $34,224 | $45,492 | $58,218 | $72,402 |
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Innovation clinic—significant achievements for 2023-24.
The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and venture capital communities enabled our students to cherry-pick the most interesting, pedagogically valuable assignments offered to them. Our focus on serving startups, rather than all small- to medium-sized businesses, and our specialization in the needs and considerations that these companies have, which differ substantially from the needs of more traditional small businesses, has proven to be a strong differentiator for the program both in terms of business development and prospective and current student interest, as has our further focus on tackling idiosyncratic, complex regulatory challenges for first-of-their kind startups. We are also beginning to enjoy more long-term relationships with clients who repeatedly engage us for multiple projects over the course of a year or more as their legal needs develop.
This year’s twelve students completed over twenty projects and represented clients in a very broad range of industries: mental health and wellbeing, content creation, medical education, biotech and drug discovery, chemistry, food and beverage, art, personal finance, renewable energy, fintech, consumer products and services, artificial intelligence (“AI”), and others. The matters that the students handled gave them an unparalleled view into the emerging companies and venture capital space, at a level of complexity and agency that most junior lawyers will not experience until several years into their careers.
While the Innovation Clinic’s engagements are highly confidential and cannot be described in detail, a high-level description of a representative sample of projects undertaken by the Innovation Clinic this year includes:
More information regarding other types of transactional projects that we typically take on can be found here .
Thanks to another generous gift from Douglas Clark, ’89, and managing partner of Wilson, Sonsini, Goodrich & Rosati, we were able to operationalize the second Innovation Trek over Spring Break 2024. The Innovation Trek provides University of Chicago Law School students with a rare opportunity to explore the innovation and venture capital ecosystem in its epicenter, Silicon Valley. The program enables participating students to learn from business and legal experts in a variety of different industries and roles within the ecosystem to see how the law and economics principles that students learn about in the classroom play out in the real world, and facilitates meaningful connections between alumni, students, and other speakers who are leaders in their fields. This year, we took twenty-three students (as opposed to twelve during the first Trek) and expanded the offering to include not just Innovation Clinic students but also interested students from our JD/MBA Program and Doctoroff Business Leadership Program. We also enjoyed four jam-packed days in Silicon Valley, expanding the trip from the two and a half days that we spent in the Bay Area during our 2022 Trek.
The substantive sessions of the Trek were varied and impactful, and enabled in no small part thanks to substantial contributions from numerous alumni of the Law School. Students were fortunate to visit Coinbase’s Mountain View headquarters to learn from legal leaders at the company on all things Coinbase, crypto, and in-house, Plug & Play Tech Center’s Sunnyvale location to learn more about its investment thesis and accelerator programming, and Google’s Moonshot Factory, X, where we heard from lawyers at a number of different Alphabet companies about their lives as in-house counsel and the varied roles that in-house lawyers can have. We were also hosted by Wilson, Sonsini, Goodrich & Rosati and Fenwick & West LLP where we held sessions featuring lawyers from those firms, alumni from within and outside of those firms, and non-lawyer industry experts on topics such as artificial intelligence, climate tech and renewables, intellectual property, biotech, investing in Silicon Valley, and growth stage companies, and general advice on career trajectories and strategies. We further held a young alumni roundtable, where our students got to speak with alumni who graduated in the past five years for intimate, candid discussions about life as junior associates. In total, our students heard from more than forty speakers, including over twenty University of Chicago alumni from various divisions.
The Trek didn’t stop with education, though. Throughout the week students also had the opportunity to network with speakers to learn more from them outside the confines of panel presentations and to grow their networks. We had a networking dinner with Kirkland & Ellis, a closing dinner with all Trek participants, and for the first time hosted an event for admitted students, Trek participants, and alumni to come together to share experiences and recruit the next generation of Law School students. Several speakers and students stayed in touch following the Trek, and this resulted not just in meaningful relationships but also in employment for some students who attended.
More information on the purposes of the Trek is available here , the full itinerary is available here , and one student participant’s story describing her reflections on and descriptions of her experience on the Trek is available here .
The Innovation Clinic is grateful to all of its clients for continuing to provide its students with challenging, high-quality legal work, and to the many alumni who engage with us for providing an irreplaceable client pipeline and for sharing their time and energy with our students. Our clients are breaking the mold and bringing innovations to market that will improve the lives of people around the world in numerous ways. We are glad to aid in their success in any way that we can. We look forward to another productive year in 2024-2025!
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The global healthcare market is one of the largest and highest-valued industries in the world. According to Global Newswire, the global healthcare services market is currently valued at $7548.52 billion and is expected to reach $10414.36 billion in 2026. This growth is expected to continue for the foreseeable future.
For your medical clinic business plan, list the core team members, their specific responsibilities, and how their expertise supports the medical clinic's mission. Financial Plan The Financial Plan section is a comprehensive analysis of the medical clinic's financial strategy, including projections for revenue, expenses, and profitability.
In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk. Download our Ultimate Business Plan Template here >. Below is the business plan outline you should use to create a business plan for your healthcare company. Also, here are links to several healthcare business plan templates:
Here's an example from a sample business plan for a medical practice. Include a breakdown of all services furnished by the clinic, being as granular as possible. For example: Gynecology: ... Ocean Lane Outpatient Care [provides both pediatric and women's health services]. Unlike [other area medical practices], Ocean Lane Outpatient Care is ...
Develop A Medical Practice Business Plan - The first step in starting a business is to create a detailed medical practice business plan that outlines all aspects of the venture. This should include market research on the medical industry and potential target market size, information the services or products you will offer, pricing strategies ...
Veterinary Practice Business Plans. Looking for a free sample business plan for a medical billing, chiropractic, dental, hospital, or another health care businesses? You've come to the right place! Build a Better Business Plan. Explore. Business Planning. Starting a Business. Funding.
Choosing a Medical and Health Care Business Plan. This category itself has 30+ business plan templates for various healthcare businesses. With many similar business types and templates, you may not find the most suitable one through manual scrolling. Here are the steps to consider while choosing the most suitable business plan template.
Medical Practice Business Plan. Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start a new practice and grow their medical private practices. On this page, we will first give you some background information with regards to the importance of business planning.
1. Identify your end goal. Perhaps the most important step of writing a business plan is identifying what it is you are trying to achieve. Identifying clear business goals will enable you to build a step-by-step plan to ultimately achieve these aims. Dr Gero Baiarda, Clinical Director at GPDQ, states the importance of knowing your practice's ...
Your business plan should include the following: A summary of your business, including the medical services you provide, your location, and the history of the business. Financial information including projected cash flow, outgoings like medical equipment, marketing and practice management software costs and projected turnover.
A business plan can be considered a road map for any business that details a business' profile, products and services, marketing, financials, operations and organizational structure. Developing a business plan requires strategic planning to identify the mission and vision, target audience, operations and financials of your medical practice.
A good business plan for a medical clinic must be tailored to the unique aspects of healthcare services. To start, a comprehensive market overview is crucial. This should include current healthcare statistics and emerging trends in the medical industry, as illustrated in our medical clinic business plan template. Your business plan should ...
Sample Medical Practice Business Plan. Writing a business plan is a crucial step in starting a medical practice business. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring medical practice business owners, having access to a sample ...
18 health care business ideas to consider. 1. Medical transcription services. Medical transcriptionists transcribe doctors', nurses' and other health care practitioners' voice recordings ...
A strategic healthcare business plan helps the physician set marketing goals and priorities for the medical practice. Clarity of aims and objectives can improve the quality of patient care. Strategic business planning offers great long-term value. After the initial planning is done, a practice can use it as the benchmark for measuring progress ...
Medical Services Management Business Plan Template. Download this free medical services management business plan template, with pre-filled examples, to create your own plan. Download Now. Or plan with professional support in LivePlan. Save 50% today.
Step 4: Clarifying the management and organization. For this step, you should include a section that explains how you plan to run your healthcare business. Make a list of the charting and billing applications you plan to utilize. Create a system for accepting money and reimbursing you for your services.
Medical Business Plan Example. nvmedicalcenter.org. Details. File Format. PDF. Size: 8.86 MB. Download. If writing a medical business plan were easy, every business aspirant would do it with ease. To be clear, a comprehensive business plan for a new healthcare facility takes time to put together.
Here are some points to start a medical business successfully: 1. Create a Medical Business Plan. Start by determining your area of expertise, target market, and all the details essential to format a business plan. Before diving into the medical field, conduct thorough market research. Now that you have all these details, create a comprehensive ...
Biotechnology Reagents. Prepared the business plan and financial model for a division of a billion-dollar public biotechnology company. The business makes instruments, consumables, and software for scientists engaged in medical research, drug discovery, agricultural research, biosecurity, and quality and safety testing.
6.1 Marketing Communications. The key message associated with TMG's services are affordability and reliability for customers. TMG believes that it can achieve success through the implementation of a new promotional plan. The company's new promotional plan is diverse and includes a range of marketing: Print advertising.
Develop A Medical Billing Business Plan - The first step in starting a business is to create a detailed medical billing business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
Phoenix Children's is one of the Nation's largest pediatric health systems. It comprises Phoenix Children's Hospital-Main Campus, Phoenix Children's Hospital-East Valley at Dignity Health Mercy Gilbert Medical Center, four pediatric specialty and urgent care centers, 11 community pediatric practices, 20 outpatient clinics, two ambulatory surgery centers and six community-service ...
The price of this package includes: state of the art medical billing and accounting software, unlimited training for the first six months, two years of 24-hour technical support, emergency support service, and a full-featured marketing package. The price of the package is $5,000.00 plus $45.00 for shipping and handling.
General The Innovation Clinic continued its track record of success during the 2023-2024 school year, facing unprecedented demand for our pro bono services as our reputation for providing high caliber transactional and regulatory representation spread. The overwhelming number of assistance requests we received from the University of Chicago, City of Chicago, and even national startup and ...