MY BUSINESS PLAN. (YOU CAN USE IT AS WELL)

PART I
1.10 EXECUTIVE SUMMARY
1.1 The following report and recommendations relate to the proposal to establish a hospital named “El Classico viewing centre”.
1.2 The proposed project is to be fully implemented with an investment of ₦10,000,000 made up of a fixed capital of ₦5,200,000 and a working capital of ₦800,000
1.3 My vision is to have one of the best viewing centre in Aba in Abia State.
1.4 The proposed project will be located at Aba in Abia state, Nigeria.
1.5 A ready market exists for the planned business based on natural call and inevitability of sicknesses around us.
1.6 The financial projections reveal a good level of liquidity and stability. The projection turnover for 2013, 2014 and 2015 respectively is ₦500, 000, ₦800,000 and ₦1,500,000.
1.7 The funding requirement is ₦1,000,000 as the promoters are contributing ₦8, 000,000 to the project.
1.8 The viewing centre’s competitive edge is the ability to provide effective service delivery and usage of big screens and better signal, including uninterrupted power supply.
PART II
2.10 GENERAL INTRODUCTION
2.11 Background
El Classico viewing centre is an Aba based enterprise that will offer benchmarked services in terms of hospital services to Aba and its environs, Abia. Grace Hospital will balance safety of building cutting edge features, and positive atmosphere. The delivery will be provided with unmatched levels of client/patient service and attention.
Grace Hospital is an enterprise that is involved with various health facilities. The ownership of the hospital is as follows:
Nwosu Grace Uzochi
Mamah Agnes O.
Markus Gangum T.
Moze Peter D.
Mazva Samuel
Ndu Blessing Ngozi, and
Nwodo Edith
The total start up expenses includes legal, stationery, brochures, consultants, insurances, construction, expensed equipment etc. Long term asset purchases and the assumption of long term liabilities are anticipated. The Details are included in the following body of the “business plan”.
2.12 Vision statement
Our vision is to be a key provider of quality health care services in Aba and its environs.

2.13 Mission statement
Our mission is to employ well trained doctors and nurses, and make wise use of technology to meet the need of the teeming patient and staff.

2.14 Ownership of the Enterprise
Grace Hospital shall commence business as a joint business.

2.15 Legal Status
The name of this business shall be Grace Hospital. The business name has already been registered with the ministry of health and corporate affairs commission. The certificate of incorporation is attached.

2.16 Location and Facilities
This business shall be located in Aba, Abia State. The factors that informed the choice of location are;

1. Availability of land
2. Availability of good vegetation
3. Availability of labour
4. Availability of water supply
5. Profitability
6. Cheap transport system
7. Competitive advantage
8. Availability of high population
   These key factors are consistent with the goal of Grace Hospital. The facilities needed by Grace Hospital comprise the following;
9. Land for building of structure
10. modern equipment
11. Furniture
12. Vehicles
13. Big GP tanks
14. Staff
15. Generator

2.17 Products/Services
The services provided by the Grace Hospital are all the health care services, ranging from maternal services to surgical operations.

2.18 Business Strategy
Based on the experience and training obtained having, and having an enterprenual mindset, the following strategy shall be used to achieve our mission and vision of the business.
 Effective and good patient care principle
 Price penetration strategy to achieve a healthy market share
 We must also seek to achieve good patient relationship through customer satisfaction and retention.
These we believe will lead to repeat patronage which by extension will help us to achieve business survival and growth.

2.19 Key Success Factor
The key success factor of Grace Hospital includes the following:
We shall be dedicated and focused for day to day running of the business. These will however help to ensure the provision of quality health care services and promote service delivery to our clients. Constant motivation of work force through incentive to ensure their commitments to organizational goals and strong managerial support.

3.10 MARKET AND CLIENTS
3.11 Nature and Size
The nature and size of the market for the Grace Hospital produce in South-Eastern Nigeria more especially Abia State, is a very large one. It is ever growing to accommodate incoming entrepreneurs in hospital services. There is thus bridge between the demand and supply of the services. The large population and need for provision of good services.

3.12 Target Customers
The business is targeting the entire population of the people of the Aba and beyond and also the key distributor in various states, in the South-Eastern part of the country and the entire Nigerian at large.

3.13 Key Competitors and Players
A large number of hospitals exist in Nigeria especially in the South-Eastern part of Nigeria where our business is located. Despite the intense competition coming from these people, Grace Hospital intend to become an active player in hospital services before 2020. Having successfully attended seminars and lectures at Centre for Entrepreneurship and Development Research, (CEDR) will seek product quality and maintain cost and price differentiation after service and other bundles of benefit to obtain our market share.
3.14 Production Process
This will involve the use latest technology in treatment of diseases/ailments. The stages involved in attending to client will be:
 Obtaining of card
 Meeting the nurse
 Examination by the doctor
 Administering of drugs and other means
 Admission in the hospital
 Other treatments
3.15 Service Delivery
Based on our experiences and qualifications, obtained from enterprenual training and health education department of the University of Nigeria, Nsukka, we shall seek to engage ourselves in consultation service to the people who want to venture in hospital business.

3.16 Quality Assurance
Since our objective at Grace Hospital is to minimize cost and maximize benefit, we shall seek to provide quality services for our clients and staff. This will pass through quality assurance department before delivery.
3.17 Demand and Supply Analysis
From the market survey carried out and other information at our disposal, it was found out that almost all the population of individuals, uses the hospitals for treatment of disease, medical check-up, counseling, labouratory services and other health problems.

3.19 Competitive Edge
As a trained health educator and entrepreneur, the wealth of experience gathered so far will help us to position our business to provide a competitive edge in the industry. We shall employ a penetrating pricing policy coupled with strong client care; modern technology and quality drugs will also be purchased in bulk for cost minimization.

3.20 SWOT Analysis
In other to conduct a complete assessment of this business plan, we have subjected this business proposal to a SWOT analysis.

Strength
Grace Hospital has the following strength

1. Enterprenual skill
2. Knowledge of the health problems
3. High quality and low price
4. Skilled personnel
   Meanwhile we will seek to exploit these strengths.

Weakness
Our major weakness is that we are new in the business. But having undergone adequate monitoring, we seek to build strong capacity to survive, grow and obtain our anticipated market share.

Opportunity
Hospital services are full of opportunities for survival and this is because of the high demand of the services in the region. We seek to diversify in the services we provide to our people.
Threat
Our major threat is competition from existing giants in the business who naturally will seek to out-compete us. But in order to make sure that this threat does not underline our business, we would use customer care and quality products and service delivery to remain in the business. The next threat we visualize is initial low patronage as new entrants in the business but we will also overcome this threat with discount for regular patient coupled with better services.

4.10 MARKETING PLAN
Our services will be marketed through direct sales coupled with serious awareness creation. We shall use indirect selling technique through adverts, promotions and posting of posters.

4.11 Alliances
Our major alliance in the business shall be our mentor who gives professional advice from his many years of experience in the business. Also Centre for Entrepreneur and Development Research shall be constantly solicited for advice. This will contribute to nurturing the business towards growth and profitability.

4.12 Market Position
We will visibly follow the leaders in the market until we overtake. This we aim to achieve through the provision of good service delivery and effective customer care.

4.13 Service Delivery Strategy
We shall seek to exceed customer expectation through a complaint free product. We shall also compensate the customer for any faulty product. We shall also form strong customer bonds through effective customer relationship management. This will increase customer’s value satisfactory to retention.
PART IV
5.10 Production Plan
5.11 The Project:
It is a small scale hospital services which its labour intensive.
5.12 Production process: The only thing the patients may constantly demand from you is your attention and care. When they come to the hospital, they are expected to obtain a membership card, Meeting with the nurses, Examination by the doctor, Administering of drugs and other means, Admission in the hospital and other treatments.

5.14 Technology
The technology for hospital services is available in both local and foreign. This technology has been approved to be most in administering of drugs, surgical operations, x-ray services, disease detection, drug testing, temperature reading, blood pressure reading and so on.

6.10 ORGANIZATION AND MANAGEMENT

6.11 Organizational Structure
Our organizational management is going to be like this

6.12 Director
As a joint business, the directors shall be the seven of us but one person will be elected as the Executive Director
6.13 Management Team
Management team includes owner’s management, three medical doctors as, 20 nurses, 3 lab scientist, one accountant, one marketing officer, etc.
6.14 External Support
We intend to have external support from centre for entrepreneurship development to continue to guide our business into survival and growth.

6.15 Personnel Plan
Our personnel plan for the planned business is to hire an experienced hand that will assist and support the owner in the business. Thus our personnel plan is as follows;
S/no Position Number Per Month Per Annum
1 Executive directors 7 700,000 8,400.000
2 Medical Doctors 3 240,000 2,880,000
3 Nurses/Midwives 10 500,000 600,000
4 Pharmacist 1 70,000 840,000
5 Accountant 1 50,000 1,440,000
6 Security Guard 1 30,000 360,000
7 Cleaners 4 40,000 2,520,000
8 Drivers 2 60,000 360,000
Total 10 1,270,000 17,040,000

TOTAL: per a month is 1,270,000
TOTAL: per a annum is 17,040,000

6.16 Value and Norms of the Company
To ensure strong market shares and in the spirit of building a hospital that intends to be a high player in the business that will create and generate employment, Grace Hospital shall adopt the following values and norms:

1. To strive to conduct our services within the orbit of government regulations
2. To produce and process quality services that will never disappoint the clients
3. To see our employees as our most valuable assets and
4. To be socially responsible to our community.
5. To provide health care services at a cheaper rate to the public

7.10 LEGAL, REGULATORY, SOCIAL AND ENVIRONMENTAL ISSUES

7.11 Legal Issues
The industry when established shall be called Grace Hospital which is already registered with the corporate affairs commission, the business we are engaging into is legally approved.

7.12 Regulatory Issues
There is stringent regulation as regards to health care services in the country is by Ministry of Health. However, if we discover any regulation polices that will impinge on our business in any way it would be observed strictly.

7.13 Environmental Issues
Hospital services though may need a large expanse of land which is a threat to the environment shall be managed in such a way that is environmentally friendly while ensuring sustainable development.

PART VI
8.10 FINANCIAL PLAN
8.11 Project Cost
The proposed business is to be fully implemented with a capital of ₦40,000000 which is further broken down into fixed capital of ₦32,200,000 and a working capital of ₦7,300,000.

THE BREAK DOWN OF PROJECT COST
S/N FIXED CAPITAL AMOUNT (₦)
1 Land for building of structure 8,500,000
2 Modern hospital equipment 3,000,000
3 Furniture 400,000
4 Big GP tanks 100,000
5 Staff 17,000,000
6 Vehicles 2,100,000
7 Office Equipment 500,000
13 TOTAL 32,200,000
14 WORKING CAPITAL 7,300,000
15 TOTAL PROJECT COST 20,000000

8.12 Funding Plan and Statement
The total project cost is planned to be funned as follows:
Owners contribution = 21,000,000 (3,000,000 per person)
Loan capital = 19,000,000
Total project cost = 32,000,000

8.13 Funding Requirement
The funding requirement for this project is 19,000000 (47.5%) since the owners are contributing 21,000000 (52.5%) into the business,

INTEREST AND LOAN REPAYMENT SCHEDULE
Year Principle Payment Interest at 3% Loan Rate

1. 19,000000 10,000000 …… 14,000000
2. 8,000000 5,000000 …… 5,000000
3. 4,000000 4,000000 …… Nile

DEPRECIATION SCHEDULE
S/no Item Cost(₦) Scrap Value Life span Amount(₦)

1. Land for building of structure 8,500,000 100,000 20 4500
2. Modern hospital equipment 3,000,000 100,000 20 4500
3. Furniture 400,000 100,000 20 4500
4. Big GP tanks 100,000 200,000 10 190,000
5. Staff 17,000,000 --- --- ---
6. Vehicles 2,100,000 --- --- ---
7. Office Equipment 500,000 --- --- ---
   TOTAL 32,200,000 500,000 10 130,000

8.14 Projected Income Statement
ITEMS 2013(₦) 2014(₦) 2015(₦)
Turnover 30,000000 40,000000 50,000000
Less Operating Expenses 2,000000 3,000000 4,000000
Rent Nile Nile Nile
Input 5,000000 6,000000 7,000000
output 1,000000 2,000000 3,000000
Maintenance 1,000000 2,000000 3,000000
Admin. Expenses 2,000000 2,000000 3,000000
Salaries 6,720,000 --- ---
Transportation 1,000000 1,000000 1,000000
8.15 Projected Cash-Flow Statement
CASH INFLOWS 2013(₦) 2014(₦) 2015(₦)
Owner’s Contribution 21,000,000 25,000,000 30,000,000
Loan from Bank 30,000,000 45,000,000 60,000,000
Revenue (Sales) 80,000,000 100,000,000 120,000,000
Total Cash Inflows (A) 30,000,000 40,000,000 50,000,000
Cash-Outflows 40,000,000 60,000,000 80,000,000
Operating Expenses
(Less Depreciation) 1,000,000 2,000,000 3,000,000
Loan Repayment 2,000000 2,000000 3,000000
Total Cash Outflows(B) 16,720,000 --- ---
Net Cash-flows (A-B) 21,000000 1,000000 1,000000
Open Cash Balance 30,000000 45,000000 60,000000
Closing Cash Balance 80,000000 100,000000 120,000000

8.16 Projected Balance Sheet

CASH INFLOWS 2013(₦) 2014(₦) 2015(₦)
Fixed Assets 1,000000 1,500000 3,000,000
Less: Depreciation 1,000000 1,600000 2,000,000
Current Assets 1,000000 2,000000 3,5000,000
Balance at Hand 2,000000 2,000000 2,000,000
Less: Bank Loan 350,000 400,000 350,000
Net Current Asset 100,000 100,000 200,000
Net Asset 50,000 70,000 100,000
Financed by 1,800,000 1,900,000 1,800,000
Owner’s Capital 5,000000 6,000000 5,000,000
Retained Profit 200,000 250,000 200,000
Owner’s Fund 12,000,000 13,000,000 14,500,000

9.10 RATIO ANALYSIS
9.11 Liquidity Ratio
a. Current ratio = Current Assess = N 2,330,000
Current Liabilities
b. Quick Ratio = Current Assess – Stock = N 450,000
Current Liabilities
9.11 Leverage Ratio
a. Debt Equality Ratio = DER = Long Term Loan = N 1,800,000
Net worth
b. Debt Capitalization Ratio = DCR = Long Term Loans = N 3,400,200
Equity + Long Term Loans
9.12 Loan Coverage Ratios
a. Interest Coverage Ratio = ICR = Profit Before – Interest & Taxes = N 780,000
Financial Charges
b. Assets Coverage Ratio = ACT = Net Assets = N 3,340,330
Total Loans
9.13 Profitability Ratio
a. Return On Capital Employed = ROCE = PBIT x 100 = N 1,200,000
Capital Employed

b. Net Profit Margin = NPM = PBIT x 100 = N 4,500,000
sales
9.14 Break even point (N) = (BEP) = Fixed Cost (FC) = N 790,000
Variable cost (VC)
Sales

            PART VI

10.0 RISK ANALYSIS, CONTINGENCY PLAN AND EXIT STRATEGY
10.11 Risk Analysis
This business enterprise has been subjected to risk analysis for the purpose of identifying some risk that will likely occur; we have also proffer solutions to combat the negative effect of this risk on the business enterprise.

1. Low initial patronage: aggressive marketing promotion in relation to customer care services shall be adopted to curb the problem.
2. Competition: continuous high quality of servces, innovative customer care and environmental sustainability shall be adopted.
   10.12 Contingency Plan
   As a newly established business, it is likely that the business may not generate turnover in the first few months of starting. We will therefore use the following contingency plans:
3. Price reduction. This will be used to stimulate customers for high patronage
4. Quality discount. This will motivate customers to purchase in bulk.
5. A certain amount will be set aside for the contingency fund.
6. Effective customer care, satisfaction and retention.
   10.13 Exit Strategy
   This business will generate enough cash to pay off the agency loan and interest as at when due to ensure a smooth exit of our promoters from the business without resorting to litigation.
   After which the business will still have enough cash to continue operations. We do not intend to exit rather we will ensure expansion and diversification for long term survival and profitability.

11.10 OTHER CONSIDERATIONS, CONCLUSION AND RECOMMENDATION
11.11 Economic Justification
This business is economically justified because it creates employment, promotes the services of doctors, nurses and other health care personnel and leads to the reduction in poverty, encourages value orientation and people employment, which are consistent to goals of National Empowerment Development Strategy.
11.12 Commercial Viability
The result of our analysis shows that this project is commercially viable as it generates adequate cash-flows and good profitability return or profile to pay off its in debtors as well as expand and achieve long term survival,
11.13 Conclusion
Based on the point of view of the analysis of our findings, the proposed project is found to be technically feasible, commercially viable and economically desirable. It however offers good benefits thus highly recommended for funding and implementation.

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