The following financial plans are ongoing, living documents, which function as a first financial framework to guide the start of the business. Once the business was kicked off, these plans need to be adjusted and further extended given the success of business processes. The financial plan provides numbers for an optimistic scenario as well as a more pessimistic scenario.The company XY aims to turn conventional healthcare delivery on its head. Conventional medicine relies on evidence-based studies, indicating treatments which have had positive effects on a statistically significant percentage of experimental subjects. In contrast, precision medicine offers diagnostic, therapeutic and preventive procedures by examining the interactions of genes, biomarkers, family history and lifestyle. Through our approach, previously general diagnostic procedures will be gradually optimized and replaced by modern individualized diagnosis, therapy and medication. Using the Illumina’s NextSeq550Dx instrument, we will deeply examine each unique subject and precisely tailor individual treatments to the client’s needs. Moreover, we will contribute to preventive medicine, as we are able to detect genetic predispositions and subsequently predict disease risk for cancer, diabetes, osteoporosis and cardiovascular disease before symptoms manifest.By applying twenty-first century technologies we offer personalized, preventive diagnostic and therapeutic procedures to match our client’s health span to their lifespan. Our clinical and analytical team will analyze a client’s current health status and anticipate an individual future health trajectory. This so called “precision health analysis” integrates data on genomics, metabolomics, biomarkers, hormones, fitness tests, health records, lifestyle and family history. Thereby diseases, such as diabetes, osteoporosis, cancer, stroke and heart disease, can be detected and even predicted. Genetic predispositions represent a considerably higher risk of disease and require avoidance measures. Scientific studies have confirmed that lifestyle choices certainly lower risk of disease in predisposed subjects. Therefore, our physician will work out unique health care programs, which help predisposed clients to take care of their health destiny. Furthermore, we are able to determine ideal, individual therapy approaches. Given the multiplicity of individual metabolic reaction possibilities to various therapeutic alternatives, we offer detection of the best therapy, individually tailored to each client. Summarizing, because conventional healthcare only relies on evidence-based studies, treating diseased patients by standardized protocols. Like none other on the market, we offer our clients disease prediction, disease detection and tailor-made solutions of disease reduction.Personnel Plan GTo kick off the business, we put together a qualified team with comprehensive subject knowledge and personal skills. This initial team should form a powerful and stable personnel base for a customer-oriented way of working and may be expanded in the following years. However, a fist strong team, capable of running the business, consists of:Clinical team:-) Physician, operating as precision doctor, which is in charge of primary medical and patient-related tasks, as well as interpreting the generated results and will inform and advise each client.Analytical team:-) Biotechnologist, entrusted with genetic testing, interpreting the results and preparing results for the physician to communicate them to the clientAdministrative team:-) Administrative, who deals with the financial and administrative side of the business-) Cleaner, maintaining the premises and familiar with the disposal of hazardous waste according to national biohazard and safety guidelinesThe annual salary forecast of the personal plan (Appendix XY. Personnel plan) shows annual personnel expenditures. The approximal personnel total costs, considering special boni and contributions (social insurance, employer contribution, employer surcharge, municipal tax, employee pension fund), amount to € 182,975.00 in the first year. After a first pay rise the personnel total costs amount to € 195,755.00 in the second, third and fourth year. The company is generally optimistic to achieve a good course of business and thus expects the need of employing a lab technician, eventually assisting the biotechnologist, in the fifth year of business. Thereby the personnel total cost are assumed to amount to € 251,014.00 in the fifth year.Investments and Depreciation Plan GFor obtaining first sales, several investments are needed to enable our personnel base (Appendix XY. Personnel plan) to practice precision medicine in order to constantly endeavor the improvement of each client’s health, quality of life and aging (Appendix XY. Investment and depreciation plan). Genetic examination will be conducted by using Illumina’s NextSeq550Dx instrument, which provides newest technology for personalized, preventive diagnostic and therapeutic procedures that allow matching each client’s health span to their lifespan. To efficiently run the business, the following investments are needed upfront:· Standard laboratory equipment, such as centrifuge, vortexer, PCR machine, gel electrophoresis chamber system, gel imaging system, laboratory fridge and others, enables accurate sample storage, sample preparation and library preparation before the subsequent sequencing and data analysis. It has operational life expectancy of 13 years.· NextSeq 550DX instrument, a nucleic acid sequencer, which brings diagnostic procedures to the next level. The NextSeq 550Dx enables clinical labs to perform NGS in vitro diagnostic (IVD) assays as well as clinical research applications. The instrument is FDA approved and CE-IVD marked. These devices are rated an operational life expectancy of 8 years. · IT equipment is needed for big data management, data recording and information exchange between the analytical and clinical team. Moreover, the accountant will have to carry out specific tasks on a computer. IT equipment is attributed an operational life expectancy of 3 years· Office equipment, such as desks, chairs, phones, facsimiles, printers, copiers, scanners, and other devices, enables daily work processes and has operational life expectancy of 13 years.All these first essential investments encompass a total initial cost of € 763,000.00 with a total depreciation of € 610,400.00 (Appendix XY. Investment and depreciation plan). However, once the business developed successfully future investments can be made to expand staff and equipment. These additional investments are mostly within the framework of the already listed costs of employees and sequencers. These investments are expected to be ripe for decision after the fifth year of business and comprise:· More new state of the art sequencers.· Business property, such as a lab and office space, to execute our business is rated with a life expectancy of 66 years.· Alarm systems must be implemented for protecting our client’s data as well as business equipment and have an operational lifespan of about 11 years.Implementation of the investments proposed in this investment plan (Appendix XY. Investment and depreciation plan) is an important step to kick off our novel business model. Therefore these investments are needed upfront to bring clinical and analytical elements together under a single roof. Moreover, these investments enable company XY to produce income for the company and to secure the loans. Thereby, an incomparable place will arise, where a biotechnologist and a physician work back to back to customizing healthcare, tailoring medical decisions and treatments to individual needs. Integrated risk management is used in order to systematically manage all levels of risk that may impede the company from achieving its intended results. The application of risk management to the investment plan, ensures that risks associated with the plan are well understood and can be addressed in a methodical manner. In the company XY financial risk management (Appendix XY. risk management), each risk is rated by the product of the probability of a risk (scored out of 5) and the impact of the risk (scored out of 5). Thereby most significant risks are displayed for monitoring and mitigation strategies.https://ea-tabelle.at/afa/ Profit and Loss Statement GThe company XY profit and loss forecast over the next five years provides details on any annually expected earnings and losses, resulting in the net profit (Appendix XY. Profit and loss statement). Forecasts were made for a more optimistic scenario but also a pessimistic scenario, in square brackets, to convince critical investors and credit providers, who are known to seek rather stable, low-risk business models generating safe income. In the first year of business, the total expenses were considered to amount to € 152,517.00, which include initial costs such as incorporation fee, contract fees, website design and others. Throughout the following years, the cost of sales comprise mostly the salaries and the total annual depreciation costs. Therefore, total expenses are assumed to stay constant at about € 121.594,00 after the first year of business, being mostly influenced by salary increases in the fifth year, thus rising to € 127,983.00.The sales numbers are estimated to 100-200 in the first year, 200-450 in the second year and are believed reach a plateau of 400-600 in the third year, being limited by the number of instruments and personnel. It is believed that first gross profit will be made during the second or third year of business and that the break even point will be reached in the second year of business.The revenue consists of four components: Diagnostic/ therapy consultation (€ 100,-; deductible: € 19,47): First consolidation; physician analyzes a client’s current health status; includes data, provided by the general practitioner of respective clients (basic blood tests, health examinations, medical and family history, etc.).Precision health analysis (€ 2000,-; deductible: € 20,-): Analytical team conducts the genetic analysis, subsequently evaluates and prepares the collected data for the physician.First follow-up consultation (€ 70,-; deductible: € 11,11): Physician anticipates individual future health trajectory; works out unique health care programs, in consideration of medical and family history; trajectory either help predisposed clients to take care of their health destiny or help to choose the ideal individual therapy for diseased clients.Secondary consultation (€ 70,-; deductible: € 11,11): Follow-up consultation for further measures, treatment monitoring, changes in therapy, etc. (recommended: once a year after analysis). Cost increases present the highest financial risk to the business. Therefore, the revenue numbers of the first business years were estimated rather low in order to prevent overestimation of the service demand and hence of needed capacity. In addition, rather low patient compliance rates were taken into consideration. To not gloss the numbers, a rather a low percentage of only 70% 50% was estimated for clients who demand secondary consultations. These numbers consider the lack of patient compliance, but also the fact that not all of the referred patients will be diseased or predisposed, receiving a positive outcome and thus do not need a follow up, whereas others might die of their disease. Moreover the expenditures of the first business year were calculated generously to avoid exceedance of the planned investment. By these morley realistic proposed conditions, considering a possible rough economical start, still showing a highly successful financial model, we aim to win the confidence of investors and credit institutes.Given the rapid advances of genomic technologies and the technical progress, this financial plan takes into account the risk of changing priorities for needed assets. Therefore only a small number of instruments is bought, leaving open the possibility for expanding either the existing equipment or pursuing a possible technological trend to cheaper, more innovative approaches within the first years of business.Liquidity Plan – Cashflow GThe liquidity plan (Appendix XY. risk management) includes expected inflow and disbursements, monthly illustration of the first financial year as well as yearly illustration for the first five financial years. First surplus is expected to be reached in the second to third year of business.