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Business Plans Handbook, Volume 19, Finals 13/9/2010 2:26PM Page 1

Assisted Living Facility H o m e A g a i n A s s i s t e d L i v i n g

2345 Houston Ave. Bronx, NY 10468

BizPlanDB.com

Home Again Assisted Living is a New York based corporation that will provide assisted living services through its

home-like facility to customers in its targeted market. The Company was founded in 2010 by Eloise Littleton.

1.0 EXECUTIVE SUMMARY

The purpose of this business plan is to raise $1,000,000 for the development of an assisted living facility

while showcasing the expected financials and operations over the next three years. Home Again Assisted Living is a New York based corporation that will provide assisted living services through its home-like

facility to customers in its targeted market. The Company was founded in 2010 by Eloise Littleton.

1.1 The Services Home Again Assisted Living is in the business of providing compassionate assisted living services that will allow developmentally disabled people to live happy and productive lives while having direct access

to assistance. The Company will also retain a number of healthcare professionals in the event that more significant treatment is needed or in the event of an emergency.

In addition to the assisted living services, the Company will have its aides take their patients out so that

they are not constantly confined to the facility. This is especially true for people that are still mobile and active but no longer have the ability to operate a car.

The third section of the business plan will further describe the services offered by Home Again Assisted Living.

1.2 Financing Ms. Littleton is seeking to raise $1,000,000 from as a bank loan. The interest rate and loan agreement

are to be further discussed during negotiation. This business plan assumes that the business will receive a 30 year loan with a 7% fixed interest rate. The financing will be used for the following:

• Development of the Company’s Home Again Assisted Living location.

• Financing for the first six months of operation.

• Capital to purchase FF&E for the facility.

• Capital for licensure and professional fees associated with the establishment of the assisted living

facility location.

Ms. Littleton will contribute $100,000 to the venture.

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1.3 Mission Statement It is the goal of the Company to provide a caring environment for those that need assisted living and round the clock medical and living support. The Company is committed to providing a safe and secure

home environment for patients. Management will also ensure that the facility complies with all local, state, and federal regulations concerning assisted living services.

1.4 Management Team The Company was founded by Eloise Littleton. Ms. Littleton has more than 10 years of experience in

the healthcare industry. Through her expertise, she will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts Ms. Littleton expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan The Founder expects that the business will aggressively expand during the first three years of operation. Ms. Littleton intends to implement marketing campaigns that will effectively target

Proforma profit and loss (yearly)

$857,172 $463,583 $265,014 $237,026 $ 27,987

1Year

$917,174 $479,787 $299,811 $223,316 $ 76,495

$981,376 $496,628 $337,542 $237,166 $100,376

Sales Operating costs EBITDA Taxes, interest, and depreciation Net profit

$1,000,000

$800,000

$600,000

$400,000

$200,000

Sales, operating costs, and profit forecast

1 2 3

Year

Sales EBITDA Net profit

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families with individuals that require continued care and oversight within a compassionate assisted living facility.

2.0 COMPANY AND FINANCING SUMMARY

2.1 Registered Name and Corporate Structure Home Again Assisted Living, Inc. is registered as a corporation in the State of New York.

2.2 Required Funds At this time, Home Again Assisted Living requires $1,100,000 of debt funds. Below is a breakdown of

how these funds will be used:

2.3 Investor Equity Ms. Littleton is not seeking an investment from a third party at this time.

Facility acquisition Working capital FF&E Leasehold improvements Licensure Insurance Facility transportation vehicle Marketing budget Miscellaneous and unforeseen costs

Total startup costs

$ 550,000 $ 165,000 $ 75,000 $ 80,000 $ 25,000 $ 30,000 $ 65,000 $ 35,000 $ 75,000

$1,100,000

Projected startup costs

Use of funds

Facility acquisition

50%

Working capital 15%

FF&E 7%

Leasehold improvements

Licensure 2%

Insurance 3%

Facility transportation vehicle

Marketing budget 3%

Miscellaneous and unforeseen costs 7%

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2.4 Management Equity Eloise Littleton owns 100% of Home Again Assisted Living.

2.5 Exit Strategy If the business is very successful, Ms. Littleton may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the

business on behalf of Home Again Assisted Living. Based on historical numbers, the business could fetch a sales premium of up to 6 times earnings plus the value of the appreciated real estate owned by

Home Again Assisted Living.

3.0 PRODUCTS AND SERVICES

Below is a description of the services offered by Home Again Assisted Living.

3.1 Assisted Living Facility Services Home Again Assisted Living’s business seeks to provide people with an alternative to the uncompas- sionate facilities of normal mental health institutions. Management will only hire nurses and assisted

living aides that truly seek to improve the quality of life for the Company’s clients. The staff will engage clients with many projects, activities, and trips that are not offered by institutional facilities.

Additionally, the business will have a number of specialty health professionals on retainer so that each of the Company’s clients receives the highest level of medical service should the need arise. Management intends to have several specialty allied health professionals on retainer. These professionals include:

• Pharmacy Consultants

• Psychologists

• Physical Therapists

• Dieticians

• Speech Pathologists

• Physician Consultant

• Occupational Therapy Consultants

All billing will be administered by a third party processing agent. Using a third party billing agent will

ensure that the specialty services administrated by the Company will be quickly reimbursed by the New York healthcare reimbursement programs.

4.0 STRATEGIC AND MARKET ANALYSIS

4.1 Economic Outlook This section of the analysis will detail the economic climate, the assisted living facility industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists

expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. However, assisted living facilities typically operate with great economic stability as people

will continue to require specialized medical care regardless of the general economic climate.

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4.2 Industry Analysis There are over 19,000 assisted living service companies in the United States. Each year, the industry generates over $49 billion dollars in billable revenue. The industry also employs more than 1,000,000

people, and provides average annual payrolls of over $22 billion dollars.

The assisted living industry has grown tremendously over the past fifteen years. According to the last

economic census, the industry’s five year growth rate is 31.3%. This exceptional growth is attributed to the general public’s acceptance and compassion for developmentally disabled and elderly people. Large institutions that cater to the needs of the developmentally disabled are becoming less popular because of

their cold nature. Developmentally disabled people and their primary caretakers are quickly adopting in-home assisted living services as an alternative to traditional institutional care.

4.3 Customer Profile All of the Company’s patients will be developmentally disabled that require full time assisted living

services. Ms. Littleton expects that patients will have a range of developmental and old age disorders, but are able to live within a facility that provides a host of specialty physical and mental health care

services. Management anticipates that the average client will be between the ages of 25 and 85.

Based on population information provided by the United States’ Census, there are approximately 50,000 people that live within the Company’s market that are in need of assisted living facility services.

Among these residents, the annual household income is $35,000 with 70% of this income coming from pension and Social Security income distribution services.

4.4 Competition In the Company’s targeted area within the New York metropolitan area there are approximately 10

facilities that operate in a similar or identical capacity to that of the Company. The business does not necessarily need to provide a strong competitive advantage over these other competitors as many of these

facilities are already filled to capacity. As such, once the business launches its operations, Management expects that maximum occupancy will occur within one year of establishing the business.

5.0 MARKETING PLAN

Home Again Assisted Living intends to maintain an extensive marketing campaign that will ensure

maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.

5.1 Marketing Objectives • Develop an online presence by developing a website and placing the Company’s name and contact

information with online directories.

• Implement a local campaign with the Company’s targeted market via the use of local newspaper advertisements and word of mouth advertising.

• Establish relationships with doctors and mental health professionals that will refer business to Home Again Assisted Living.

5.2 Marketing Strategies The Company intends to use a referral network from doctors, surgeons, hospitals, and post operative

clinics in target area in order to generate a patient list. As such, it is imperative that the Company develop these relationships with medical professionals at the onset of operation. Many insurance carriers and

Medicare/Medicaid require that a physician authorize the use of assisted living facility services.

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The Company will use both traditional and experimental forms of marketing to inform, educate, and sell the Company’s assisted living facility service. Traditional means of advertising will include print and

media advertising within local newspapers in the target market.

Finally, the Company will develop an online website that will showcase the assisted living facility, its

operations, its fees, and its commitment to compassionate care.

5.3 Pricing On a monthly basis, Management anticipates that each patient of Home Again Assisted Living will generate approximately $3,000 to $5,000 for the business with the average patient generating revenues

of $3,500. The exact pricing will depend on the level of care and medications required by each individual patient.

6.0 ORGANIZATIONAL PLAN AND PERSONNEL SUMMARY

6.1 Corporate Organization

6.2 Organizational Budget

Senior management

Facility operations Administrative staff

Accounting

Sales—marketing

Administrative

Registered nurse

Assisted living aides

Health consultants

Personnel plan—yearly

$ 50,000 $ 42,500 $100,000 $116,000 $ 21,000

$329,500

1 1 2 4 1

$ 51,500 $ 43,775 $103,000 $119,480 $ 21,630

$339,385

1 1 2 4 1

$ 53,045 $ 45,088 $106,090 $123,064 $ 22,279

$349,567

1 1 2 4 1

Owner Facility manager Registered nurse Assisted living aides Administrative and accounting

Total

Numbers of personnel

Owner Facility manager Registered nurse Assisted living aides Administrative and accounting

Totals

Year

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7.0 FINANCIAL PLAN

7.1 Underlying Assumptions The Company has based its proforma financial statements on the following:

• Home Again Assisted Living will have an annual revenue growth rate of 7% per year.

• The Owner will acquire $1,000,000 of debt funds to develop the business.

• The loan will have a 30 year term with a 7% interest rate.

7.2 Sensitivity Analysis Developmentally disabled and elderly people require assisted living services regardless of the overall economic climate. As such, the Company does not expect that economic recessions or downturns will

affect the overall profitability of the Company. Additionally, much of the revenues generated from the Company will be paid for by public health systems. As this is a health and medical services related

business, the Company is insulated from any changes in the economy.

7.3 Source of Funds

Personnel expense breakdown

Administrative and accounting

Owner 15%

Facility manager

13%

Registered nurse 30%

Assisted living aides 36%

Financing

$ 100,000.00

$ 1,000,000.00

$ 1,100,000.00

Equity contributions

Management investment

Total equity financing

Banks and lenders

Total debt financing

Total financing

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7.4 General Assumptions

7.5 Profit and Loss Statements

General assumptions

9.5% 10.0% 33.0% 5.0%

15.0%

9.5% 10.0% 33.0% 5.0%

15.0%

9.5% 10.0% 33.0% 5.0%

15.0%

Short term interest rate Long term interest rate Federal tax rate State tax rate Personnel taxes

Year

Proforma profit and loss (yearly)

Sales

Cost of goods sold Gross margin

Operating income

Expenses

Payroll General and administrative Marketing expenses Professional fees and licensure Insurance costs Facility maintenance costs Rent and utilities Miscellaneous costs Payroll taxes

Total operating costs

EBITDA

Federal income tax State income tax Interest expense Depreciation expenses

Net profit

Profit margin

Year

$857,172

$128,576 85.00%

$728,596

$329,500 $ 25,200 $ 17,143 $ 5,219 $ 1,987 $ 20,572 $ 4,250 $ 10,286 $ 49,425

$463,583

$265,014

$ 87,454 $ 13,251 $ 69,678 $ 66,643

$ 27,987

3.27%

$917,174

$137,576 85.00%

$779,598

$339,385 $ 26,208 $ 18,343 $ 5,376 $ 2,086 $ 22,012 $ 4,463 $ 11,006 $ 50,908

$479,787

$299,811

$ 76,186 $ 11,543 $ 68,944 $ 66,643

$ 76,495

8.34%

$981,376

$147,206 85.00%

$834,170

$349,567 $ 27,256 $ 19,628 $ 5,537 $ 2,191 $ 23,553 $ 4,686 $ 11,777 $ 52,435

$496,628

$337,542

$ 88,897 $ 13,469 $ 68,156 $ 66,643

$100,376

10.23%

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7.6 Cash Flow Analysis

Sales, operating costs, and profit forecast

Sales EBITDA Net profit

$1,000,000

$800,000

$600,000

$400,000

$200,000

$0 1 2 3

Year

Proforma cash flow analysis—yearly

Year

Cash from operations Cash from receivables

Operating cash inflow

Other cash inflows

Equity investment Increased borrowings Sales of business assets A/P increases

Total other cash inflows

Total cash inflow

Cash outflows

Repayment of principal A/P decreases A/R increases Asset purchases Dividends

Total cash outflows

Net cash flow

Cash balance

$ 94,630 $ 0

$ 94,630

$ 100,000 $ 1,000,000 $ 0 $ 37,902

$1,137,902

$1,232,532

$ 10,158 $ 24,897 $ 0 $ 900,000 $ 56,778

$ 991,833

$ 240,699

$ 143,138 $ 0

$143,138

$ 0 $ 0 $ 0 $ 43,587

$ 43,587

$186,725

$ 10,892 $ 29,876 $ 0 $ 35,784 $ 85,883

$162,436

$ 24,289

$264,988

$ 167,019 $ 0

$167,019

$ 0 $ 0 $ 0 $ 50,125

$ 50,125

$217,144

$ 11,680 $ 35,852 $ 0 $ 41,755 $ 100,211

$189,498

$ 27,647

$292,635

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7.7 Balance Sheet

Proforma cash flow (yearly)

Total cash inflow Total cash outflows Cash balance

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

1 2 3

Year

Proforma balance sheet—yearly

Year

Assets

Cash Amortized development costs FF&E Vehicles Property Accumulated depreciation

Total assets

Liabilities and equity

Accounts payable Long term liabilities Other liabilities

Total liabilities

Net worth

Total liabilities and equity

$ 240,699 $ 210,000 $ 75,000 $ 65,000 $ 583,000

$1,107,056

$ 13,005 $ 989,842 $ 0

$1,002,847

$ 104,209

$1,107,056

($ 66,643)

$ 264,988 $ 213,578 $ 101,838 $ 70,368 $ 617,980

$1,135,467

$ 26,716 $ 978,949 $ 0

$1,005,665

$ 129,801

$1,135,467

($ 133,286)

$ 292,635 $ 217,754 $ 133,154 $ 76,631 $ 655,059

$1,175,304

$ 40,990 $ 968,057 $ 0

$1,009,047

$ 166,258

$1,175,304

($ 199,929)

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7.8 Breakeven Analysis

Proforma balance sheet

Total assets Total liabilities Net worth

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

1 2 3

Year

Break even analysis

Monthly revenue Yearly revenue

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

1 2 3

Year

Monthly break even analysis

$ 45,449 $545,391

$ 47,038 $564,455

$ 48,689 $584,268

Monthly revenue Yearly revenue

Year

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7.9 Business Ratios

7.10 Three Year Profit and Loss Statement

Business ratios—yearly

0.0% 85.0%

3.27% 1.10 0.10 10.62

0.24 0.22

7.0% 85.0%

8.34% 1.13 0.13 8.75

0.26 0.23

7.0% 85.0%

10.23% 1.16 0.16 7.07

0.29 0.25

Sales

Sales growth Gross margin

Financials

Profit margin Assets to liabilities Equity to liabilities Assets to equity

Liquidity

Acid test Cash to assets

Year

Profit and loss statement (first year)

Months

Sales

Cost of goods sold Gross margin

Operating income

Expenses

Payroll General and administrative Marketing expenses Professional fees and licensure Insurance costs Facility maintenance costs Rent and utilities Miscellaneous costs Payroll taxes

Total operating costs

EBITDA

Federal income tax State income tax Interest expense Depreciation expense

Net profit

$70,760

$ 10,614

$ 60,146

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 21,514

$ 7,219 $ 1,094 $ 5,833 $ 5,554

$ 1,814

85.0%

$70,882

$ 10,632

$ 60,250

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 21,618

$ 7,232 $ 1,096 $ 5,829 $ 5,554

$ 1,908

85.0%

$71,004

$ 10,651

$ 60,353

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 21,722

$ 7,244 $ 1,098 $ 5,824 $ 5,554

$ 2,002

85.0%

$71,126

$ 10,669

$ 60,457

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 21,825

$ 7,257 $ 1,100 $ 5,819 $ 5,554

$ 2,096

85.0%

$71,248

$ 10,687

$ 60,561

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 21,929

$ 7,269 $ 1,101 $ 5,814 $ 5,554

$ 2,191

85.0%

$71,370

$ 10,706

$ 60,665

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 22,033

$ 7,282 $ 1,103 $ 5,809 $ 5,554

$ 2,285

85.0%

$71,492

$ 10,724

$ 60,768

$ 27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$ 38,632

$ 22,136

$ 7,294 $ 1,105 $ 5,804 $ 5,554

$ 2,379

85.0%

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Profit and loss statement (first year cont.)

Month

Sales Cost of goods sold Gross margin

Operating income

Expenses

Payroll General and administrative Marketing expenses Professional fees and licensure Insurance costs Facility maintenance costs Rent and utilities Miscellaneous costs Payroll taxes

Total operating costs

EBITDA

Federal income tax State income tax Interest expense Depreciation expense

Net profit

$71,614 $10,742

$60,872

$27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$38,632

$22,240

$ 7,307 $ 1,107 $ 5,799 $ 5,554

$ 2,474

85.0%

$71,736 $10,760

$60,976

$27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$38,632

$22,344

$ 7,319 $ 1,109 $ 5,794 $ 5,554

$ 2,568

85.0%

$71,858 $10,779

$61,079

$27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$38,632

$22,447

$ 7,331 $ 1,111 $ 5,789 $ 5,554

$ 2,662

85.0%

$71,980 $10,797

$61,183

$27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$38,632

$22,551

$ 7,344 $ 1,113 $ 5,784 $ 5,554

$ 2,757

85.0%

$72,102 $10,815

$61,287

$27,458 $ 2,100 $ 1,429 $ 435 $ 166 $ 1,714 $ 354 $ 857 $ 4,119

$38,632

$22,655

$ 7,356 $ 1,115 $ 5,779 $ 5,554

$ 2,851

85.0%

Year 1

$857,172 $128,576

$728,596

$329,500 $ 25,200 $ 17,143 $ 5,219 $ 1,987 $ 20,572 $ 4,250 $ 10,286 $ 49,425

$463,583

$265,014

$ 87,454 $ 13,251 $ 69,678 $ 66,643

$ 27,987

85.0%

Profit and loss statement (second year)

Quarter

Sales Cost of goods sold Gross margin

Operating income

Expenses

Payroll General and administrative Marketing expenses Professional fees and licensure Insurance costs Facility maintenance costs Rent and utilities Miscellaneous costs Payroll taxes

Total operating costs

EBITDA

Federal income tax State income tax Interest expense Depreciation expense

Net profit

$183,435 $ 27,515

$ 155,920

$ 67,877 $ 5,242 $ 3,669 $ 1,075 $ 417 $ 4,402 $ 893 $ 2,201 $ 10,182

$ 95,957

$ 59,962

$ 15,237 $ 2,309 $ 17,307 $ 16,661

$ 8,449

85.0%

$229,294 $ 34,394

$194,899

$ 84,846 $ 6,552 $ 4,586 $ 1,344 $ 522 $ 5,503 $ 1,116 $ 2,752 $ 12,727

$119,947

$ 74,953

$ 19,047 $ 2,886 $ 17,260 $ 16,661

$ 19,100

85.0%

$247,637 $ 37,146

$210,491

$ 91,634 $ 7,076 $ 4,953 $ 1,451 $ 563 $ 5,943 $ 1,205 $ 2,972 $ 13,745

$129,542

$ 80,949

$ 20,570 $ 3,117 $ 17,213 $ 16,661

$ 23,389

85.0%

$256,809 $ 38,521

$218,287

$ 95,028 $ 7,338 $ 5,136 $ 1,505 $ 584 $ 6,163 $ 1,250 $ 3,082 $ 14,254

$134,340

$ 83,947

$ 21,332 $ 3,232 $ 17,164 $ 16,661

$ 25,558

85.0%

Year 2

$917,174 $137,576

$779,598

$339,385 $ 26,208 $ 18,343 $ 5,376 $ 2,086 $ 22,012 $ 4,463 $ 11,006 $ 50,908

$479,787

$299,811

$ 76,186 $ 11,543 $ 68,944 $ 66,643

$ 76,495

85.0%

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7.11 Three Year Cash Flow Analysis

Profit and loss statement (third year)

Quarter

Sales Cost of goods sold Gross margin

Operating income

Expenses

Payroll General and administrative Marketing expenses Professional fees and licensure Insurance costs Facility maintenance costs Rent and utilities Miscellaneous costs Payroll taxes

Total operating costs

EBITDA

Federal income tax State income tax Interest expense Depreciation expense

Net profit

$196,275 $ 29,441

$ 166,834

$ 69,913 $ 5,451 $ 3,926 $ 1,107 $ 438 $ 4,711 $ 937 $ 2,355 $ 10,487

$ 99,326

$ 67,508

$ 17,779 $ 2,694 $ 17,115 $ 16,661

$ 13,259

85.0%

$245,344 $ 36,802

$208,542

$ 87,392 $ 6,814 $ 4,907 $ 1,384 $ 548 $ 5,888 $ 1,171 $ 2,944 $ 13,109

$124,157

$ 84,385

$ 22,224 $ 3,367 $ 17,065 $ 16,661

$ 25,068

85.0%

$264,972 $ 39,746

$225,226

$ 94,383 $ 7,359 $ 5,299 $ 1,495 $ 591 $ 6,359 $ 1,265 $ 3,180 $ 14,157

$134,090

$ 91,136

$ 24,002 $ 3,637 $ 17,014 $ 16,661

$ 29,823

85.0%

$274,785 $ 41,218

$233,568

$ 97,879 $ 7,632 $ 5,496 $ 1,550 $ 613 $ 6,595 $ 1,312 $ 3,297 $ 14,682

$139,056

$ 94,512

$ 24,891 $ 3,771 $ 16,962 $ 16,661

$ 32,226

85.0%

Year 3

$981,376 $147,206

$834,170

$349,567 $ 27,256 $ 19,628 $ 5,537 $ 2,191 $ 23,553 $ 4,686 $ 11,777 $ 52,435

$496,628

$337,542

$ 88,897 $ 13,469 $ 68,156 $ 66,643

$100,376

85.0%

Cash flow analysis (first year)

Month

Cash from operations Cash from receivables

Operating cash inflow

Other cash inflows

Equity investment Increased borrowings Sales of business assets A/P increases

Total other cash inflows

Total cash inflow

Cash outflows

Repayment of principal A/P decreases A/R increases Asset purchases Dividends

Total cash outflows

Net cash flow

Cash balance

$ 7,368 $ 0

$ 7,368

$ 100,000 $1,000,000 $ 0 $ 3,159

$1,103,159

$1,110,526

$ 820 $ 2,075 $ 0 $ 900,000 $ 0

$ 902,894

$ 207,632

1 2

$ 7,462 $ 0

$ 7,462

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 10,620

$ 824 $ 2,075 $ 0 $ 0 $ 0

$ 2,899

$ 7,721

$215,353

$ 7,556 $ 0

$ 7,556

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 10,714

$ 829 $ 2,075 $ 0 $ 0 $ 0

$ 2,904

$ 7,810

$223,163

$ 7,650 $ 0

$ 7,650

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 10,809

$ 834 $ 2,075 $ 0 $ 0 $ 0

$ 2,909

$ 7,900

$231,063

$ 7,744 $ 0

$ 7,744

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 10,903

$ 839 $ 2,075 $ 0 $ 0 $ 0

$ 2,914

$ 7,989

$239,052

$ 7,839 $ 0

$ 7,839

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 10,997

$ 844 $ 2,075 $ 0 $ 0 $ 0

$ 2,919

$ 8,078

$247,130

$ 7,933 $ 0

$ 7,933

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,091

$ 849 $ 2,075 $ 0 $ 0 $ 0

$ 2,924

$ 8,168

$255,298

$ 8,027 $ 0

$ 8,027

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,186

$ 854 $ 2,075 $ 0 $ 0 $ 0

$ 2,929

$ 8,257

$263,555

1 4 B U S I N E S S P L A N S H A N D B O O K , Volume 19

ASSISTED LIVING FACILITY

Business Plans Handbook, Volume 19, Finals 13/9/2010 2:26PM Page 15

Cash flow analysis (first year cont.)

$ 8,121 $ 0

$ 8,121

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,280

$ 859 $ 2,075 $ 0 $ 0 $ 0

$ 2,933

$ 8,347

$271,901

$ 8,216 $ 0

$ 8,216

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,374

$ 864 $ 2,075 $ 0 $ 0 $ 0

$ 2,938

$ 8,436

$280,337

$ 8,310 $ 0

$ 8,310

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,469

$ 869 $ 2,075 $ 0 $ 0 $ 0

$ 2,944

$ 8,525

$288,863

$ 8,405 $ 0

$ 8,405

$ 0 $ 0 $ 0 $ 3,159

$ 3,159

$ 11,563

$ 874 $ 2,075 $ 0 $ 0 $ 56,778

$ 59,727

�$ 48,163

$240,699

$ 94,630 $ 0

$ 94,630

$ 100,000 $1,000,000 $ 0 $ 37,902

$1,137,902

$1,232,532

$ 10,158 $ 24,897 $ 0 $ 900,000 $ 56,778

$ 991,833

$ 240,699

Month

Cash from operations Cash from receivables

Operating cash inflow

Other cash inflows

Equity investment Increased borrowings Sales of business assets A/P increases

Total other cash inflows

Total cash inflow

Cash outflows

Repayment of principal A/P decreases A/R increases Asset purchases Dividends

Total cash outflows

Net cash flow

Cash balance

Cash flow analysis (second year)

$ 28,628 $ 0

$ 28,628

$ 0 $ 0 $ 0 $ 8,717

$ 8,717

$ 37,345

$ 2,652 $ 5,975 $ 0 $ 7,157 $ 17,177

$ 32,961

$ 4,384

$245,083

$ 35,784 $ 0

$ 35,784

$ 0 $ 0 $ 0 $ 10,897

$ 10,897

$ 46,681

$ 2,699 $ 7,469 $ 0 $ 8,946 $ 21,471

$ 40,585

$ 6,096

$251,179

$ 38,647 $ 0

$ 38,647

$ 0 $ 0 $ 0 $ 11,769

$ 11,769

$ 50,416

$ 2,746 $ 8,067 $ 0 $ 9,662 $ 23,188

$ 43,663

$ 6,753

$257,932

$ 40,079 $ 0

$ 40,079

$ 0 $ 0 $ 0 $ 12,204

$ 12,204

$ 52,283

$ 2,795 $ 8,365 $ 0 $ 10,020 $ 24,047

$ 45,227

$ 7,056

$264,988

$143,138 $ 0

$143,138

$ 0 $ 0 $ 0 $ 43,587

$ 43,587

$186,725

$ 10,892 $ 29,876 $ 0 $ 35,784 $ 85,883

$162,436

$ 24,289

$264,988

Quarter

Cash from operations Cash from receivables

Operating cash inflow

Other cash inflows

Equity investment Increased borrowings Sales of business assets A/P increases

Total other cash inflows

Total cash inflow

Cash outflows

Repayment of principal A/P decreases A/R increases Asset purchases Dividends

Total cash outflows

Net cash flow

Cash balance

B U S I N E S S P L A N S H A N D B O O K , Volume 19 1 5

ASSISTED LIVING FACILITY

Business Plans Handbook, Volume 19, Finals 13/9/2010 2:26PM Page 16

Cash flow analysis (third year)

$ 33,404 $ 0

$ 33,404

$ 0 $ 0 $ 0 $ 10,025

$ 10,025

$ 43,429

$ 2,844 $ 7,170 $ 0 $ 8,351 $ 20,042

$ 38,408

$ 5,021

$270,009

$ 41,755 $ 0

$ 41,755

$ 0 $ 0 $ 0 $ 12,531

$ 12,531

$ 54,286

$ 2,894 $ 8,963 $ 0 $ 10,439 $ 25,053

$ 47,348

$ 6,938

$276,947

$ 45,095 $ 0

$ 45,095

$ 0 $ 0 $ 0 $ 13,534

$ 13,534

$ 58,629

$ 2,945 $ 9,680 $ 0 $ 11,274 $ 27,057

$ 50,956

$ 7,673

$284,620

$ 46,765 $ 0

$ 46,765

$ 0 $ 0 $ 0 $ 14,035

$ 14,035

$ 60,800

$ 2,997 $ 10,038 $ 0 $ 11,691 $ 28,059

$ 52,786

$ 8,015

$292,635

$167,019 $ 0

$167,019

$ 0 $ 0 $ 0 $ 50,125

$ 50,125

$217,144

$ 11,680 $ 35,852 $ 0 $ 41,755 $100,211

$189,498

$ 27,647

$292,635

Quarter

Cash from operations Cash from receivables

Operating cash inflow

Other cash inflows

Equity investment Increased borrowings Sales of business assets A/P increases

Total other cash inflows

Total cash inflow

Cash outflows

Repayment of principal A/P decreases A/R increases Asset purchases Dividends

Total cash outflows

Net cash flow

Cash balance

1 6 B U S I N E S S P L A N S H A N D B O O K , Volume 19

ASSISTED LIVING FACILITY