Episode 5: Cash Flow & Financial Feasibility

Written By Erich Mattei

Part of the Planning phase of your optometry practice cold-start or purchase, The Financial Forecast & Feasibility Analysis answers all of your practice finance questions.

In this episode, the Financial Forecast & Feasibility Analysis culminates with an evaluation of projected cash flow and debt service requirements to determine financial viability of your cold-start or purchase!

Cash Flow & Feasibility Analysis:

-Projected Profit-&-Loss at 1, 2, & 3-year marks based on your Revenue & Expense Modeling targets.

-Determine financial viability based on total project cost, deal structure elements, & financial requirements, and forecasted cash flows as projected in your 3-Year Snapshot Remember, it's all about your practice vision-- scope of care and patient experience!

Financial Forecast & Feasibility Analysis Checklist:

✅ Profit-&-Loss-- utilizing your Revenue & Expense Modeling targets

✅ Debt Service Requirements: Project Cost + Deal Structure Elements + Financial Requirements

✅ Project Cost-- Total Capital Investment + Transaction Costs + Additional Working Capital

✅ Deal Structure Elements-- Bank- and Owner-financing terms

✅ Financial Requirements-- Return on Down Payment + Capital Expenditure

✅ Financial Feasibility-- compare Profit-&-Loss with Debt Service Requirements to determine viability!

For more modern Optometry practice cold-start insights & solutions

Learn https://www.akrinos.com/the-cold-star...

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The Financial Forecast & Feasibility Analysis culminates with an evaluation of projected cash flow and debt service requirements to determine financial viability of your cold-start or purchase!

Project your Profit-&-Loss utilizing your Revenue Modeling (Episode 3) & Expense Modeling (Episode 4) forecasts…

Project Debt Service Requirements utilizing your Capital Investment (Episode 2) assumptions…

Is your Profit-&-Loss > your Debt Service Requirement?If so, CONGRATULATIONS, your venture is viable— now it’s time to compose your Strategic Business Plan!🚀

Erich Mattei

President, Chief Vision Officer at Akrinos

Innovate, motivate, and lead with integrity, to generate results,” define Erich's core values.  A thought leader in modern Optometry practice management, he possesses a keen understanding of the “real world” challenges practices & patients face every day. These observations, coupled with his fascination with business and teams, people and consumer behavior, and technology and automation in healthcare, are the foundation upon which Erich is committed to disrupt: building sustainable solutions and fostering collaborative, “no-box” relationships with people & organizations sharing in his commitment to independent healthcare.

https://www.linkedin.com/in/erich-mattei-0b99549/
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Episode 4: Expense Modeling