Operations, Production and Logistics
How do you get your product or service made? How do you get it to customers? What are your margins and the margins of the “middle-people?” Find comparables by doing research. Put together list of cash uses, how much they will cost and when they are needed during the company’s startup phases. Cover pre-revenue period in detail, and cover revenue period’s fixed and variable expenses. List all optional expenses, all variable expenses. Need to cover organizational structure: LLC, C Corp, non-profit, once a better sense of scale and profitability (how fundable)
For this course, we are shooting to get a Cost of Goods Sold model for the first five years, based on your revenue projections. These should be in line with industry comparables, or an explanation of why you will do better, or worse, than the industry level.
This description, while helpful, is from a product-driven perspective and can feel a little confusing for us as a service-driven business right. So we need to know how much it will cost us to provide our services on a per-member basis. (i think)
ReplyDeleteI've been looking at the excel spreadsheet that Don forwarded, and although it's overwhelming at first, he has made it easy for us by highlighting in yellow the sections we need to fill out. The beauty of Excel is that once those "input" cells are filled in, the program automatically fills in the other spreadsheets. If we can work through that first "input" page we'll have a professional Fin Plan. Let's Do It!
Working through it will help us figure out some key questions.
I've created a Google Doc titled "Re-Gen Fin plan".
ReplyDeleteLet's work through this excel sheet by posting a question to the google doc (underline the questions), then as a group we can figure out the answers. Finally we can plug em into the excel sheet.
How do you get your product or service made? How do you get it to customers? What are your margins and the margins of the “middle-people?” Find comparables by doing research. Put together list of cash uses, how much they will cost and when they are needed during the company’s startup phases. Cover pre-revenue period in detail, and cover revenue period’s fixed and variable expenses. List all optional expenses, all variable expenses. Need to cover organizational structure: LLC, C Corp, non-profit, once a better sense of scale and profitability (how fundable)
ReplyDeleteFor this course, we are shooting to get a Cost of Goods Sold model for the first five years, based on your revenue projections. These should be in line with industry comparables, or an explanation of why you will do better, or worse, than the industry level.
How do you get your service delivered to customers?
* are you paying salary to employees or are they outside contractors
o as outside contractors, they would be variable cost; as employees they'd be fixed cost
* are you renting space to them or also marketing them
o is there a cost associated with delivering their services
How about your retail store; will you have costs associated with inventory, shrinkage, returns, clerks, or will it all be on consignment, no returns, volunteer staff?
Is there a cost associated with delivering yoga, pilates, dance, meditation, stretching or any other fitness regime you offer?
What do financial statements for other fitness facilities, spas, health clubs look like? What are their key ratios? Will your look similar? Use RMA Financial Ratios at your library.
before the doors even open we will have a cushion of already having one or 2 corporate accounts and some # amount of presales memberships...!
ReplyDeletehighlight important sections of billing info...
ReplyDeletewhat is ideal situation for billing? microsoft?
ReplyDeletecustomer service driven everything
ReplyDeletei'm having a hard time differentiating between the financial model and aspects that are expected to be a part of this opl. are the numbers expected in each part supposed to overlap or something? are these two pieces supposed to be presented together as one comprehensive for understanding our business in order to attract funding?? thoughts on this??
ReplyDeleteinfo on insurance: I recently received a request from you that you were interested in some health insurance information. I would be more than happy to take care of that for you and all I need is some information from you to get started on the quotes. We can come at this one of two ways given the size of your group. For groups with less than 5 employees I typically recommend them applying for individual health insurance plans and have the company pay a portion of the premiums. We can pursue group coverage but the number of companies available is limited. If anyone has any pre-existing conditions they wish to have covered immediately or has a condition that may cause them to be declined individual coverage I would recommend exploring group coverage. I have attached a packet of information and listed some instructions below if you wish to explore group coverage. The sooner I get this back the sooner I will have your quotes to you. If you have any questions please let me know. If you want individual coverage please give me a call and I can quote you immediately.
ReplyDeleteFill out General Info Quote Request
Copy of your current census
I need the following signed:
The attached general health questionnaires (based on the best of your knowledge, no need to ask employees or look up information)
The AAOA and AWB health questionnaires must be filled out by each employee wanting coverage
The authorization to quote (printed on company letterhead)
Broker of Record (printed on company letterhead)
As a side note the AAOA is currently under-cutting all of the competition by at least 10% on price with no sacrifice in benefits so we will be looking at what they have that fits your needs closely.
heya,
ReplyDeletethis info looks good... although i don't necessarily understand it all. i sent out an e mail, asking for advice and quotes, to the address you sent me yesterday, and i called the other number... but no reply. hopefully we'll get a response from the email.
do you think there are more gaps that need filling, in terms if insurance info, or have we had enough questions answered by this info from matt berglind and the group health stuff you sent me yesterday. i'm not really sure what the words they use are telling me, and honestly i've never been exposed to the insurance world before, and especially the u.s. style health insurance, so i'm not sure how to translate and equate what i feel we need in terms of coverage with the info we have already been offered... what do you think? are we getting the info we need?
blessings,
kaitlyn
i guess we're still in need of some info for liability insurance and mortgage insurance??...
ReplyDeletethe insurance advisor who wrote the above letter is asking us to put numbers in to the documents he sent in order to provide us with accurate setimates. he asks that our employees fill the forms in. should we just fill them in for ourselves and send them back? i'm not sure its a good idea for me to fill it in since i may throw it all off being canadian n' all and not eligable for us health insurance like this...
ReplyDeletehas anyone already filled it in??
cash flow projections!!
ReplyDelete