About this episode
Adam Hoeksema, co-founder and CEO of ProjectionHub in Indiana, spent over a decade as an SBA lender before building the NEMT projection model he screen shares here, and its sample file puts a first year one-van operation at $66,000 revenue and $12,000 net income. Nirav Chheda co-narrates the defaults: one wheelchair accessible van in month one, a second in month 13, five days a week, eight trips a day, 15 miles a trip, 70 percent capacity. Add back the $28,500 driver salary if the owner drives and take home reaches roughly $40,000.
Key takeaways
- Year two in the sample file adds the second vehicle and a hired driver, lifting revenue to $165,000 and net profit to $50,000 against year one's $12,000.
- Variable costs are entered per mile: 20 cents for fuel and about 4 cents for tires and general wear, so every mile driven carries its own cost line.
- Fixed costs like insurance can be set as a flat dollar figure, a per vehicle amount such as $125 a month, or a percentage of revenue, and scale automatically as vehicles are added.
- Cash from sales is zero in month one. Revenue earned on day one arrives in month two, and Hoeksema warns the working capital hole compounds as a fleet grows toward ten vehicles.
- Hoeksema started ProjectionHub in 2012 as a side hustle while working as an SBA lender, after the projection templates he sent borrowers kept coming back too thin to support a lending decision.
Chapters
- 0:00 Introduction
- 0:28 Creation of the NEMT financial projection model
- 5:28 Going through the NEMT financial model
- 25:19 Conclusion
- 25:45 Run Bambi Run!!
