Case Study: Financial Plan for Medical Service Startup

John Fallou, Former Regional Director, Microsoft Consulting

June 23, 2010

John Fallou of Madera Capital Management obtained 1/4 of their funding in four weeks for Innovative Healthcare Inc. , a startup that offers Wound Care and Hyperbaric treatment to a segment of the market that is underserved in many parts of the U.S. As former director of Microsoft’s Consulting Division for the western region for nine years, and founder and president of two other business analysis consulting firms, John is exceptionally experienced with spreadsheet models.

"I wanted a realistic business plan in Excel, without the usual problems of building complex spreadsheet models. I searched until I found ModelSheet on the Microsoft website."

Starting with ModelSheet’s standard financial plan template, John retained ModelSheet Software to add features needed by his medical service business. The plan tracks patient populations (including recently-acquired patients who get more procedures, and continuing patients), types of medical procedures and equipment and staff time per procedure, plus multiple service delivery locations.

"ModelSheet surpassed my expectations for expressing complex plans, for innovation with new features, and for ease and timeliness of getting the job done."

According to John, "Working with ModelSheet consultants, I was able to build a financial plan that captured more aspects of the real business than I would have been able to do by other methods." John’s plan contains 26 products and product families, 60 months, 10 job levels, three departments, financing with notes, and a growing number of service locations in a 29 megabyte Excel workbook. Spreadsheets of this size are a fraction of the size that ModelSheet now routinely generates.

John added, "The template provided most of what I needed from the start. My collaboration with ModelSheet’s consulting staff did the rest, and they offered good advice on how to design the flow of patients and the timing of procedures. I use the authoring tool enough to see that it is much easier to follow what is going on in the ModelSheet model than in the exported Excel workbook. That is a key reason why ModelSheet consultants can deliver so much value in such a short time."

Using the Plan with Investors – John used the financial plan with investors in three ways. First, he gave them financial statements and other snippets in pdf form. When they asked probing questions, John showed them the comprehensive detail in relevant sections of the plan, which built credibility. Thirdly, John compared his financial plan with financial results for similar medical service organizations, and he showed investors that his plan was usually closer than 10% to the actual results.

John believes that ModelSheet has a broad technology that can help modelers in many type of projects. He says,

"ModelSheet technology is one of the most promising innovations I have seen in spreadsheets in my twenty years of professional involvement. I would highly recommend the templates and consulting services to anyone with a complex spreadsheet modeling challenge."