Don't start a NEMT business before financially projecting profits! | NEMT Experts Podcast Episode 43
Bambi CEO Nirav Chheda talks with Adam Hoeksema, the creator of ProjectionHub, which helps business owners, including NEMT entrepreneurs, to create SBA ready financial projections for their business.
See the full interview on YouTube.
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Get ProjectionHub’s full NEMT financial projections model here.
Podcast Show Notes:
Nirav Chheda interviews Adam Hoeksema, co-founder and CEO of Projection Hub, about a financial model specifically designed for NEMT businesses. The model helps entrepreneurs project revenues, costs, and profitability, crucial for securing loans and running a successful business. Adam's experience as an SBA lender inspired him to create user-friendly financial models.
The model covers various aspects like vehicle costs (purchase/lease), revenue per mile, driver pay, fixed and variable costs. It emphasizes the importance of factoring in delays in payment collection (accounts receivable) and adjusting assumptions based on the specific business situation (e.g., location, vehicle type). The model demonstrates potential profitability even with conservative assumptions.
Key Takeaways:
- Financial projections are crucial for securing loans and understanding profitability.
- The model helps entrepreneurs project revenues, costs, and profitability.
- Adjust assumptions (revenue per mile, costs) based on your specific business situation.
- Factor in delays in payment collection to avoid cash flow problems.
- Even with conservative assumptions, NEMT businesses can be profitable.
- Run Bambi Run can help optimize capacity utilization.
Interesting Quotes:
- "We should be able to find a better way to help these loan applicants create a better set of financial projections." - Adam Hoeksema
- "You might earn revenue today, but you're not going to get paid on that for maybe 30 days. And so, yeah, sometimes even longer in the NEMT industry, sometimes longer." - Adam Hoeksema
- "The key thing here, I think, is that you can set these expenses to be either a fixed dollar amount, a per vehicle amount, or a percentage of revenue. And so it kind of scales automatically, like as you add more vehicles." - Adam Hoeksema
- "You do all this work, you think you're making all this money, but when do you actually get the money? And that's what really hits people a lot harder than they would expect." - Nirav Chheda
