Longevity Medical Clinic Financial Model and Business Plan-Case Study

Introduction 

The Oak Business Consultant is a Financial and Business Consultancy offering Financial and Business Planning and Management Services to various industries. In this case study, we showcase our collaboration with a startup of a longevity medical clinic business that approached us for help in creating a detailed financial model covering 5 years projection for acquiring equity and debt financing and a detailed business plan. The aim was to provide the client with precise projections and valuable insights to aid their business planning, attract investors, and decision-making. 

Client Background

The client is based in the USA, Washington DC, and is an early-stage startup company that wants to provide services in the healthcare industry. The company wanted to serve women above 45 and facilitate their health span and longevity. Moreover, the client wanted to acquire the funds for their longevity medical clinic to utilize them in their operations, salaries, and fixed assets. 

Challenges

Market Research

Initially, the company wanted to know the actual market size of its products and services in Washington, DC. For this, our experts were required to conduct extensive research because the client had different demographic, geographic, and psychographic characteristics of their targeted customers.

Working Hours and Clinic Capacity

It was challenging when our client wanted us to estimate the actual working hours in a year, excluding the public holidays. Furthermore, they wanted to know how much capacity each longevity medical clinic has for serving patients and accommodating as many as possible in the available working hours.

Lease and Capital Asset

Our client wanted to know different scenarios of buying the fixed asset on lease or cash. So, estimating the asset costing in two different ways was challenging.

Revenue Streams

The Longevity Medical Clinic had different revenue streams, including product and service packages. Furthermore, the company wanted to increase their service in each Tier. So, developing a dynamic financial model for our client was challenging.

Direct and Indirect Competitors

The client wanted us to prepare a detailed competitive analysis section in the business plan and identify the competitive edge to compete in the market.

Acquire equity and debt financing.

Our client had no set criteria for how much investment (debt or equity) they would raise. So, they wanted us to calculate how much investment they would need to run the business smoothly.

Solutions

Market Research

Our expert team conducted extensive research to estimate the market size for our client’s products and services. We evaluated a Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market for the next 6 years. It helped our client to analyze the market size of their ideal customers. Furthermore, it helped to estimate the revenue per the market share of the addressable market. 

Working Hours and Clinic Capacity

We calculated the working days in a month, considering the public holidays. After that, multiplied it by the daily working hours, also giving flexibility. The company could increase working hours depending on the customer’s growth. Even prospective clinic openings were forecasted when the company had achieved certain growth and maximum customer accommodation capacity.

Lease and Capital Asset

We control the ‘On cash’ and ‘leasing’ options. If the customer opts for the leasing option, all the calculations are forecasted based on IFRS-16, i.e., lease liability current and long-term portion. Also, the depreciation and asset value are based on the straight-line depreciation method.

Revenue Streams

We gave the flexibility of inserting the new revenue stream as Tier 1. As Tier 2-4 were planned and decided.

Direct and Indirect Competitors

Our experts did the detailed research and identified our client’s direct and indirect competitors. It helped our clients to make strategies and differentiate themselves with a competitive edge. We also provided a comparison between competitors and a SWOT Analysis to identify the company’s strengths, weaknesses, opportunities, and threats.   

Acquire equity and debt financing.

Our client hadn’t established a specific amount for the investment (in the form of debt or equity) they aimed to secure. They asked us to determine the necessary investment to ensure seamless business operations and investment in fixed assets (equipment). Therefore, the investment amount from the investors covers the costs from the commencement of operations and equipment. 

Financial Highlights 

Input 

The financial model is flexible; assumptions include the inputs by which the financial statements are forecasted. The model shows the forecasting for the six years from 2024 to 2029. Operations for Longevity Medical Clinic #1 are assumed to start in  2024.

Revenue Assumptions

Our experts prepared a revenue model, segmenting the revenue streams as per the requirement. Furthermore, the dynamic financial model allowed our clients to add more revenue streams per their choice. The revenue analysis includes monthly and yearly analyses. First, the monthly maximum hours available are calculated. Based on these hours, maximum patient treatment capacity is measured and further segmented into tiers. The revenue is generated through the immediate payments, membership and sale of retail products.

Income Statement

We prepared the profit and loss statement to identify the profitability, expenses and revenue for our client’s longevity medical clinic. The profit and loss statement shows an average gross profit margin for the five years of operations. The fixed operational expenses also account for the yearly inflation rate. The profit and loss statement can be seen below. 

Cash Flow Statement

Our experts prepared the cash flow statement, which shows the cash outflow for lease payments as the company will lease the equipment and the commercial space. The cash inflow is also shown as the owner’s and investor’s capital. The minimum capital required from investors is determined by calculating the cash required for operating/ investing activities and lease payments for the five operational years. Further, the capital requirement from the owner is determined by calculating the cash required before the external funding is acquired.

Balance Sheet

The balance sheet shows the company’s financial position; the current and net fixed assets increase and decrease. We estimated that the current liabilities portion shows the net unearned income as the revenue model for membership-based. Furthermore, the patient is charged for the year of services when they register, and service is provided periodically/quarterly. The current and non-current portions of lease liability are part of total liabilities, and our client has no plan for debt financing.

Dashboard

Our expert financial analysts prepared a Unique dashboard for our clients where they can understand and analyze their performance and make strategies to attract investors. It helped decision-making and will update itself when changes occur in the input assumption sheet because the financial model is dynamic and user-friendly.  

Business Plan 

Our experts prepared longevity medical clinic Business Plan with extensive industry research and market analysis. Furthermore, In the market analysis section, we provided the market validation in which we mentioned the Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market. 

Furthermore, the business plan includes the Operational, Competitive analysis, Customer persona, Future roadmap, and financial plan and its commentary or interpretation to understand and analyze the financial projection by the client.  

Conclusion

Oak Business Consultants provided the client with a robust 6-year startup Longevity Medical Clinic financial model and business plan through close collaboration and detailed financial modeling. The model enabled our clients to understand their business financial outlook better, identify potential challenges and opportunities, and make informed strategic decisions. 

We successfully developed a comprehensive financial model specifically tailored for their startup Longevity Medical Clinic operations, which involves longevity and healthspan medical services in Washington, DC. This financial model has given our clients a clear understanding of their financial standing and empowered them to make strategic decisions to drive their business forward. We are committed to continuing our support as our client grows their business and works towards achieving their goals.

Oak Business Consultant excels in helping businesses stand out and achieve exceptional performance. Our approach involves conducting in-depth market research and employing advanced financial forecasting techniques. Moreover, we thoroughly consider all aspects of our client’s company, providing them with a critical perspective for their journey toward business success.

What Oak Business Consultant Offers?

We at Oak Business Consultants are committed to assisting you in your financial planning efforts as qualified and skilled financial and business analysts. We take pride in providing all business owners with top-notch financial services.

Our diverse services include Financial Modeling, Business Plans, Pitch Decks, and more. Additionally, we possess the expertise to assist you in fundraising and developing a comprehensive business plan. Our business plans incorporate strategies to target the right market and foster sustainable growth. You can anticipate future financials using our financial models and simply include them in your models. The following URLs can be used to view some of the templates: 

• Physician Consultation Excel Financial Model 
• Telemedicine Excel Financial Model Template
• Venture Capital Excel Financial Model Template
• Mental Health Center Excel Financial Model
• Naturopathy Center Excel Financial Model
• Medical Devices Excel Financial Model
• Smart Hospital Pitch Deck Template
• Online Pharmacy Pitch Deck Template

By utilizing our financial services, you may streamline your business processes. If you need complete help when you launch your firm, contact us. Discover why many Micro-Small and Mid-sized Businesses continuously favor our financial planning services by looking through our portfolio. We can tell you that the only way forward will be success once you set out on this adventure with us.