We have been thinking about the Financial plan for our venture. We have identified a couple issues that we will need to address in the long run, but in the short run we will need to use some key assumptions for our business decisions to make financial sense.
Upfront Cost
Our initial activities will be deciding on the technical requirements needed for the mobile unit. That includes, supplies, equipment, working and storage space, as well as more typical vehicular requirements like gas mileage. We can use our homes as an office space to start, but we will need to make sure that at any given time, we have enough supplies and that may mean storing them at home.
Operating Cost
In our case, it will be much easier to determine the cost of sales than the revenue we will receive per customer, because Medicare dictates the payments for services rendered. It will be a work in progress to determine the break-even point, so in the meantime, we will use some static numbers for our calculations. The basis for our assumptions is the expected operating cost (based on research from other mobile medical units) and a goal of a 5% profit margin. We used some 2011 cost figures to project the revenue necessary and corresponding visits that would be required to meet that level.
Goodbye All!
Overall this has been an interesting experience. I have learned a lot during this semester, and it has led to some real critical thinking on our part. Good luck with all of your ventures in the future!
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