Business Plan Financial Projections as Noted Term Paper

Pages: 3 (700 words)  ·  Bibliography Sources: 3  ·  File: .docx  ·  Level: Master's  ·  Topic: Business

Business Plan

Financial Projections

As noted, the target market is adults over 50 in Nassau County. This population is 485,080. Not all of these adults are going to be in our target market. Many will already be fit, and many will already subscribe to personal training, wellness and dietary services, which are the core of our offering. However, it is estimated that this business, with its current capacity levels, can only service 240 clients per week. Some clients will be repeat. The business model can be scaled up, should demand emerge. The pricing will be on a cost-plus basis. There are two reasons for this. The cost-plus basis makes it easier for the business to be profitable. In addition, the market is generally not price sensitive. If we can position this service as unique to the existing services mentioned above, the main payers are going to be insurance companies and Medicare.

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These payers typically accept cost-plus as a pricing model. The variable costs, including supplies and staffing, are estimated to be in the range of $300,000 for the year or $22,500 per month. This assumes that the staff members will cost around $35,000 per year for this sort of work, at least in terms of salary. Some people are able to get equity in the business, which will allow then to accept a lower amount of salary than might be normal for their profession. Supplies are not expected to be a significant cost factor. These include blood tests, and some basic diagnostic tools. There will be some kits produced to help people who have no Internet access manage their diet and exercise routines. Government funding will be needed for the patients who require transportation -- the revenue model does not factor these costs mainly because transportation provision will be the responsibility of other parties as well. It is ancillary to the main business model.

Term Paper on Business Plan Financial Projections as Noted, the Assignment

Fixed costs are expected to be around $9,000 per month. These will include two administrative staff members at $24,000 per year, and about $4,000 per month in rent, utilities and miscellaneous expenses.

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Business Plan Financial Projections as Noted.  (2013, April 22).  Retrieved July 12, 2020, from https://www.essaytown.com/subjects/paper/business-plan-financial-projections/4698702

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"Business Plan Financial Projections as Noted."  Essaytown.com.  April 22, 2013.  Accessed July 12, 2020.
https://www.essaytown.com/subjects/paper/business-plan-financial-projections/4698702.