The Health Club

Islip Terrace,

Health & Wellness Preliminary Business Plan Development

In 2001 B&D was approached by two health professionals with a vision for a private comprehensive health and wellness business to be anchored in a multi-use facility. As an early step in developing their vision, they retained our services to provide a financial analysis for use in their business plan. The project was divided into five separate cost centers. Each was then defined with a preliminary program of spaces and assessed for construction cost, revenue capacity, and operating needs. Demand was determined with a basic market review and demographic analysis around a proposed site. A comprehensive, interactive financial model was built reflecting revenue and operating expenses and debt service projections for the whole project over the next ten years, with calculations for cash flow, net present value, and residual economic value. The model was designed to adapt as the project developed and became more detailed. Variables such as construction costs, financing fees, and parameters could be changed easily and their impact seen immediately. The positive preliminary financial picture was integrated into a greater business plan to assist with the next steps for financing strategies.