Business
Plan: William’s Telehealth Center Points 20 Submitting a text entry box or a file uploadPreparatory InstructionsRegarding you Business Plan, think about all of the aspects that will require some type of monetary requirement. This list should now be finalized at this point in the course.Introduce the TaskYou will be constructing a 12-month budget for your selected business. You need to consider not only salaries but many other aspects like rent, utilities, equipment, possibly vehicle payments, cell phone bills, etc. In addition, your numbers need to be realistic. If your business is making 40 million dollars in year one, you simply are not be realistic of what most businesses experience.ObjectivesThe objective is to help students realize that there are many, many expenses when it comes to running a business. In addition, it is to help students understand that just because you invoice for $200 does not necessarily mean that the insurance company is going to pay $200. Thus, these factors must be taken into consideration when determining how profitable or sustainable your business will be.ExamplesA sample of what this might look like is given below: Pro Forma Cash Flow JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptmeberOctoberNovemberDecemberFY 2020Cash Received Cash from Operations Cash from Receivables* $14,400$14,400$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$943,800Contractual Adjustments (row c8 is an example)($6,000) Subtotal Cash from Operations$8,400$14,400$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$943,800 Additional Cash Received New Current Borrowing$55,000$0$0$0$0$0$0$0$0$0$0$0$55,000New Long-term Liabilities$700$700$0$0$0$0$0$0$0$0$0$0$1,400New Investment Received $0$0$0$0$0$0$0$0$0$0$0$0$0Subtotal Cash Received $72,500$29,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$1,000,200 Expenditures JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberFY 2014 Expenditures from Operations Cash Spending$1,500$1,500$0$0$0$0$0$0$0$0$0$0$0Rent and NNN$1,688$1,688 Utilities$600 Wages$17,115$17,115 Bill Payments$1,100$1,100$0$0$0$0$0$0$0$0$0$0$0Subtotal Spent on Operations $22,003$21,403$0$0$0$0$0$0$0$0$0$0$0 Additional Cash Spent Non Operating (Other) Expense$3,916.00$3,916$3,916$0$0$0$0$0$0$0$0$0$0Taxes$3,560.00$3,560$3,560$0$0$0$0$0$0$0$0$0$0Principal Repayment of Current Borrowing$550.00$550$550$0$0$0$0$0$0$0$0$0$1,650Purchase Other Current Assets$3,800.00$0$0$0$0$0$0$0$0$0$0$0$3,800Purchase Long-term Assets$27,000.00$0$0$0$0$0$0$0$0$0$0$0$27,000Dividends $0.00$0$0$0$0$0$0$0$0$0$0$0$0Subtotal Cash Spent $38,826.00$8,026.00$8,026.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$0.00$32,450.00 Net Cash Flow $33,674$21,474$83,474$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$91,500$967,750Cash Balance $33,674$55,148$138,622$230,122$321,622$413,122$504,622$596,122$687,622$779,122$870,622$962,122$967,750* We are projecting co payments based on 150 patients. We arrive at the 150 patient figure by figuring that the population of children in our service area as around 134,700 Approximately 5% of these children have a type of disability. Assuming we will treat 1-2%of that populationThe first two months are not going to yield payment from insurance due to billing cycles. It can take up to 90 days to see payments from insurance.DeliverablesYour budget can be in an Excel spreadsheet OR you can submit a Word document.
