It would hold data about health care providers across the world. Thus, any patient can easily access the list of health care providers. Then, they can address their particular health problem. Therefore, he needed to get a real medical tourism financial model.
The client wanted to develop a web-based application
The client wanted to assess the financial viability of this idea. He asked us to build a medical tourism financial model to provide the basic framework. It is needed for building the complete business model. Understanding the financial outcome of the business idea beforehand is very important.
The point is that the pro-forma results can be compared with the industry standards to assess the future profitability of the business. The client needed a flexible medical tourism financial model to incorporate any changes in the core assumptions. In addition, the client asked us to develop a comprehensive business model that included KPIs and metrics.
Entrepreneurs need to have the best possible resources to help them plan and launch their business. Not only is an entrepreneur’s time-limited and valued, but resources can also be too. With our services, we provide easy-to-understand and easy-to-use reports. It helps businesses save time and financial resources.
Business planning tool
We have built the finest business planning tool for the client. The client’s business was an online marketplace based business. He wanted to use the web application as a major source of revenue. The business to consumer (B2C) model will be a one-time service. While the business to business (B2B) model will be based on a monthly billing process with different prices depending on the type of ownership structure. For example, a clinic, hospital, and sole practitioner.
Comprehensive financial model
We prepared a comprehensive financial model for the client. It included all the desired outcomes. The financial model was developed in an Excel spreadsheet. It had an Excel dashboard that presented a summary of the whole model. This medical tourism financial model included easy-to-navigate and easy-to-change assumptions. We included all assumptions in one, easy-to-use input Excel worksheet.
The financial model included detailed capital expenditure and depreciation calculations. Besides, there were capitalization summary table, investor return summary, and key metrics reports. The included Summary report is ideal for a pitch deck.
- Balance Sheet
- Cash Flow
Medical Tourism Financial Model Description
The dashboard is a consolidated report for the customer with key indicators used while building the financial model. Here you can find charts with relevant indicators, core financials, and main revenue variables. For example, doctor subscription fees, patient referral fees, and hospital and insurance companies.
A valuation datasheet is one of the most important reports for investment purposes. After an agreement with a client, we made a business valuation to use Net Present Value technique. We considered WACC factor (Weighted Average Cost of Capital).
Top Revenue datasheet includes assumptions about the top five revenue categories. Besides, there are charts with information about revenue depth, monthly run-rate, and revenue bridge. We illustrated this data for better visual perception and ability to compare.
- This business model includes the following revenue sources:
- Doctor subscriptions fees
- Patient referral fees
- Hospital and insurance companies
The customer can easily analyze changes in revenue, experimenting with the value of a particular parameter. For example, doctor subscription fees.
The datasheet with top expenses categories includes assumptions about its value during the next four years. Also, there are charts showing the share of each category in total cost, expenses depth, and expenses bridge.
Top expenditure items in the business model of medical tourism are:
- Sales commission
- Google advertising
- Chief executive officer
- Chief technical officer
- Head of marketing
We produced detailed reports for the client with analysis by month. It includes Balance Sheet, Income Statement, and Cash Flow Statement. Also, we prepared a shortened version of reports, displayed on a Summary Sheet. Note that the level of detail could be changed for each report if it’s necessary.
To summarize, the financial model for the medical tourism business idea was built with the greatest flexibility. It is good for analyzing results while changing output data. This opportunity should help the client make relevant assumptions and important decisions easily.