please find attachment my business plan. I need a 15 mins presentation. could you please make the slides and write up the explanation in the note area. it is a 15 minutes presentation make sure you cover every thing in the paper.
Running head: BUSINESS PLAN
1
Memo
Business Plan for Opening Yoga Center.
Below is a proposal attached to the opening of Yoga Center Clinic in Saudi Arabia. There is an
increase in the number of health issues among people in Saudi Arabia calls for the establishment
of a Yoga Center Clinic that will address their needs and improve the quality of their life. The
plan describes the operational plan, marketing plan and organizational structure of the proposed
business. It also provides a financial plan with projected financial statements for the next three
years. Other aspects of the business plan include key performance indicators, strengths, and
weaknesses of the proposed business.
Kindly analyze the plan and give feedback to determine its authenticity and viability before its
actual implementation.
BUSINESS PLAN
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May 3, 2019
BUSINESS PLAN
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Contents
Executive summary ……………………………………………………………………………………………………………………… 4
Description of the initiative ………………………………………………………………………………………………………….. 4
Organizational structure ………………………………………………………………………………………………………………. 5
Market analysis …………………………………………………………………………………………………………………………… 6
Market plan………………………………………………………………………………………………………………………………… 9
Product …………………………………………………………………………………………………………………………………… 9
Price ………………………………………………………………………………………………………………………………………. 9
Place ………………………………………………………………………………………………………………………………………. 9
Promotion …………………………………………………………………………………………………………………………….. 10
Financial / Resources requirement plan ……………………………………………………………………………………….. 10
Cash flow ………………………………………………………………………………………………………………………………. 10
Pro Forma Financial Statements ………………………………………………………………………………………………. 11
Return on investment …………………………………………………………………………………………………………….. 13
Breakeven Analysis ………………………………………………………………………………………………………………… 14
What if Analysis……………………………………………………………………………………………………………………… 14
Implementation/ Operational plan ………………………………………………………………………………………………. 15
Key Performance Measures. ……………………………………………………………………………………………………….. 17
Summary of the strength and weakness ………………………………………………………………………………………. 18
Reference. ………………………………………………………………………………………………………………………………… 20
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Executive summary
The business provides a proposal on establishing a periodontal and gingivitis clinic in Saudi
Arabia. There is an increase in the number of patients who seek medical treatment on dental
diseases such as bleeding gums, cavities, artificial teeth replacement, periodontal diseases, and
gingivitis. The ministry of health in Saudi Arabia seeks to public-private partnership program to
enhance efficiency in the provision of services to the increased number of patient to provide
quality medical service to them. The clinic is expected to kick off operation from 1st August
2019. Marketing plan, market analysis, key performance measures, and financial analysis are
some of the components which are addressed in the document. The clinic provides an everlasting
solution to the challenges affecting the patient in the area. Customers identified for the services
in the organization include client ranges from children and families, teens, couples, new mothers,
adults, and the old people. It enables the organization to be a position to address the medical
challenges facing some people in the region.
Description of the initiative
The business plan is a proposal to establish a periodontal and gingivitis clinic, Saudi Arabia.
Periodontal and gingivitis are some of the dental problems facing many individuals ranging from
teens to adults, and it can negatively affect the quality of life when not dealt with in the right
manner. The periodontal and gingivitis clinic aims to offer high-quality services through highly
qualified members of staff and hence improve the quality of life of our customers and also teach
them skills to make lasting positive changes. The state-of-the-art clinic will use evidence-based
treatment approaches such as highly sensitive equipment to identify dental problems.
In the modern world, individuals are faced with a lot of responsibilities ranging from work,
school and family responsibilities. People mostly feel overwhelmed by these responsibilities that
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they have to meet while also trying to maintain a successful social life. There is a lot of pressure
especially on teens and young adults for them to be successful which makes them feel stressed
and anxious because much is expected from them. Adults also can be affected by periodontal
diseases because of deteriorating immune system they experience in as they age. Therefore, there
is a need to ensure that these individuals have a highly-qualified person they can trust to help
them access proper hygiene in their environment. The periodontal and gingivitis clinic we will
establish will be a trusted partner to the people or Riyadh and surrounding areas to teach them
skills to make positive life changes and be dental fit to carry their day to day activities. The
mission of the clinic is to offer high-quality and compassionate services to enable our clients to
make positive life changes and improve their quality of life.
Organizational structure
A well laid out organizational structure also helps in effective communication which helps in the
implementation of strategies that help the new business to achieve its set goals and objectives. It
is highly essential for any new business to have a well-laid out the organizational structure for
people to know their duties and responsibilities. The stress and anxiety clinic will have a flat
organizational structure. The owner of the business has vast experience in dental treatment and
has been a practicing dentist for over ten years. Therefore, the owner can run the business due to
his involvement in management. The owner will be the Chief Executive Officer and will be
responsible for making strategic decisions with the help of the managers. There will be the
finance manager who will be responsible for making financial decisions and ensuring the clinic
is in good financial health. The managing director will be responsible for the day to day running
of the clinic and administration purposes. The human resource manager will be responsible for
hiring and any other duties related to the welfare of the employees. There will be a registered
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dentist and therapists who will be offering services to clients to help improve their quality of life.
There will be an office administrator who will be responsible for the day-to-day running of the
office such as booking of clients. Below is the proposed organizational structure
Organizational structure
CEO
Human Resource
Managing
Finance
manager
Director
manager
Dentist
Therapist
Office
administrator
s
Casual
cleaners
Market analysis
According to Joll, et al. (2018) market analysis entails examining dynamism of the
market in the economy to determine market niche and other aspects that can enhance business
operational. Market analysis is an essential aspect of a new business undertaken by an investor or
entrepreneur before implementation. It aids the investor to comprehend the environment of
business and the industry in which the company operates. A market analysis helps to assure the
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existence of demand for the product or services in the market for an investor to venture in it. It
enables, the entrepreneur to understand the scope of their business and what they can be expected
to perform in the current market conditions.
Analysis of the market in Saudi Arabia indicates that issues of dental health disorders are
prevalent and are currently in 25 percent of primary-care attendees. Periodontist and gingivitis
are some of the dental health disorders among many Saudis, and there is a need for a clinic that
solely deals with the treatment of periodontal and gingivitis as opposed to public health hospitals
that are not run appropriately because they dentist are also in charge of other health departments.
High levels of periodontal and gingivitis are reported among older adults in Saudi Arabia.
The causes of Periodontist and gingivitis among older adults include poor hygiene and bacteria
in dental plaque. Some of the elderly find so hard to consume and feel the taste of the food
cooked; hence they face a lot of challenges. The immune system of older adults is deficient thus
need proper treatment against such diseases and regular guidance on how they should consider
hygiene and diet that can increase their immune system. The patient needs to visit the dentist
clinic on regular times for check and to determine if there is any problem that they can diagnose
for treatment purposes.
The level of periodontal ad gingivitis young people is also rising. The statistical analysis
from the Ministry of Health in Saudi Arabia indicates that dental disorders are prevalent among
adult. The deteriorating levels of dental health in Saudi Arabia show that there is a growing
demand for a periodontal and gingivitis clinic. With high-quality services and highly qualified
staff in the clinic, we can predict huge demand for our services in the country.
The clinic purpose is to serve people struggling with periodontal and gingivitis among
other dental disorders in Saudi Arabia. The target customers range from children and families,
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couples, teens, new mothers, adults and old people. The main competitors in the business include
public health dental departments and private dental practitioners in Saudi Arabia. However, a
gap exists in the market that we hope to fill. In the current market, the quality of services offered
is low especially in public health dental departments because the dentists responsible are also in
charge of other duties which make it hard for them to provide quality services.
Moreover, the private dental departments have a very low number of dentists ranging
from one to three meaning that customers do not have a wide range of dentists to choose from.
More so, the small number of dentists means that the time of contact between dentists and a
client is minimal, and hence it is difficult to achieve the desired results. Our periodontal and
gingivitis clinic aims to close this gap by offering high-quality services with highly qualified
staff. We will also have a wide range of dentists, and therapists to help the customers achieve
skills to make positive life changes, and improve the quality of their lives. The clinic will also
offer flexible appointment times and choice of male or female dentist. The location of the clinic
is very strategic which implies that is every o be accessed by the customers either by car or other
public means of transport such as train in Saudi Arabia.
The dental clinic provides services that help customers to manage inflaming situations of teeth
and also to improve their quality of life. The primary goal of the clinic is to help clients gain
strategies to enable them to live a more fulfilling life. Our highly experienced team of dentists
and therapists have vast knowledge and experience in assessing and treating problems gingivitis,
periodontal diseases, gum bleeding, artificial teeth replacement, cavities and another
inflammatory on the gums. By maintaining a highly-qualified staff, offering quality services and
valuing our clients, we will have a competitive advantage in the market which will ensure
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survival and feasibility of the clinic. Provision of high-quality service is one of the primary goals
which provides that customers are satisfied with services the clinic offers at affordable prices.
Market plan
Product
Our clinic focuses on offering quality dental health services. Our highly experienced team of
dentist and therapists have vast knowledge and experience in assessing and treating problems
gingivitis, periodontal diseases, gum bleeding, artificial teeth replacement, cavities and another
inflammatory on the gums. Our services aim at promoting our clients’ dental health and enabling
them to make positive life changes and improving their quality of life
Price
he charge on our services will be hourly. An hourly rate will be decided on a sliding scale fee
schedule ranging from $90-$150 per hour. The price is affordable for people of different income
groups, but it is targeting the middle and upper class. We will also accept insurance coverage
where the costs can be covered by the client’s insurance policy
Place
The place is a critical aspect of a business. It should be placed in a convenient location that is
easily accessible by customers. Our first clinic will be located in Riyadh, Saudi Arabia with
expansion places to other cities in Saudi Arabia and the United Arab Emirates at large in the
future. The strategic location will also mean we have a competitive advantage over our
competitors who are mainly located in the outskirts of the city meaning their accessibility is
difficult.
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Promotion
We desire to create awareness of our clinic, and the services offered among the Saudis. This will
significantly help to attain our desired market share. We will have an intensive marketing
campaign running on television to reach a wider audience. We will also have our qualified
psychologists giving talks on health shows and writing columns on mental health in the
newspapers to create awareness of our services and the importance of mental health.
Additionally, with the high internet penetration in Saudi Arabia, we will use social media
marketing to create awareness of our services targeting teens, young adults, and young families.
With this intensive marketing campaign, we aim to attract more customers to use our services
and hence increase the market share.
Financial / Resources requirement plan
Cash flow
Yoga Center Clinic
Projected statement of cash flow
2019
2020
2021
$15,000
$11,500
$9,500
$0
$2,400
$2,500
($1,500)
($3,500)
($3,000)
Net cash provided by (used in) operating activities
(OCF)
Net cash provided by (used in) investing activities
(ICF)
Net cash provided by (used in) financing activities
(FCF)
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Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
$13,500
$10,400
$9,000
$0
$7,000
$9,500
$10,000
$11,500
$21,700
Cash flow statement indicates that business projections are viable for business operations. It is
very health investment opportunity for investment purposes.
Pro Forma Financial Statements
Yoga
Center
Clinic
Balance
Sheet for
the first
three years
of
operation
2019
2020
2021
Cash and Cash Equivalents
$10,000
$11,500
$21,700
Accounts receivable, net
$25,000
$45,000
$52,000
$3,500
$7,400
$14,200
Assets
Current assets
Inventory
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Total current assets
12
$38,500
$63,900
$87,900
Property and equipment, net*
$55,000
$56,000
$67,000
Furniture
$11,000
$11,000
$12,000
$66,000
$67,000
$79,000
$104,500
$130,900
$166,900
Accounts payable
$8,500
$11,300
$19,500
Accrued salaries and benefits
$5,000
$8,500
$11,500
Total current liabilities
$13,500
$19,800
$31,000
Long-term liabilities
$57,000
$50,000
$65,000
Total liabilities
$70,500
$69,800
$96,000
Paid in capital
$26,000
$33,000
$41,000
$8,000
$28,100
$29,900
$104,500
$130,900
$166,900
Fixed Assets
Total fixed Assets
Total Assets
Liabilities and Equity
Current liabilities
Retained Capital
Total liability and shareholder’s equity
Yoga Center
Clinic
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Projected
income
statement
2019
2020
2021
Revenue
Client service revenue
$155,000
$198,000 $256,000
Provision for bad debts
($3,550)
Total operating revenue
$151,450
$192,500 $252,500
Salaries and wages
$82,000
$105,000 $145,000
Rent
$12,000
$12,000
$12,000
Depreciation
$3,000
$2,800
$4,200
Interest
$4,500
$4,900
$6,500
Advertisement
$7,000
$6,000
$7,400
($5,500)
($3,500)
Expenses
Total Operating expenses
$108,500
Operating income (loss)
$42,950
$130,700 $175,100
$61,800
$77,400
It show estimate profit from business operation. The provides an overview of business operation
Return on investment
Yoga Center Clinic
Projected return on investment
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2018
2019
2020
Investment Revenue
$151,450
$192,500
$252,500
Investment costs
$108,500
$130,700
$175,100
39.59%
47.28%
44.20%
Return on
investment
Return on the investment is a critical financial statement which measures efficiency of how
business generate
Breakeven Analysis
The breakeven point refers to a point where the cost of production is equal to the revenue. It can
be calculated when the fixed and variable costs for the products or services offered are known or
approximated (Abrams, 2003). For the first year, we have total operating expenses of $108,500
which translates to approximately $9050 per month. Our charge per hour is $120 which means
we need clients to use our services for 85 hours each month to break even. When we have
sessions for 85 hours, we will be able to cover our expenses and any additional hours are profits.
Breakeven analysis help to know at which point we start to make profits and hence from that we
can set strategies that ensure we hit the breakeven point.
What if Analysis
It analysis circumstance where business operation can be at loss or at profit.
Yoga Center Clinic
Projected income statement
2019
Revenue
2020
2021
2019
2020
2021
2019
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Client service
revenue
$155,000 $198,000 $256,000
$90,000 $178,200 $230,400
$110,000
Provision for bad
debts
($3,550)
($5,500)
($3,500)
($2,000)
($4,500)
($3,500)
($2,000
Total operating
revenue
$151,450 $192,500 $252,500
$88,000 $173,700 $226,900
$108,000
Salaries and wages
$82,000 $105,000 $145,000
$75,000 $100,000 $140,000
$75,000
Rent
$12,000
$12,000
$12,000
$10,000
$10,000
$10,000
$10,000
Depreciation
$3,000
$2,800
$4,200
$1,000
$1,600
$2,200
$1,000
Interest
$4,500
$4,900
$6,500
$2,000
$4,000
$5,500
$2,000
Advertisement
$7,000
$6,000
$7,400
$3,000
$5,000
$3,400
$3,000
$91,000 $120,600 $161,100
$91,000
($3,000)
$17,000
Expenses
Total Operating expenses
Operating income (loss)
$108,500 $130,700 $175,100
$42,950
$61,800
$77,400
$53,100
$65,800
10% decrease in revenue
Implementation/ Operational plan
Successful implementation of the activities is very important in a new business. It
determines whether the business starts off with the right foot. The general manager and finance
manager will be responsible for the activities in the implementation process. The activities
include:
10%
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Activity
Due date
Negotiating for rent
10th April 2019
Buying of furniture and partitioning
21st April 2019
Negotiating for insurance and payments
11st May 2019
Buying of office supplies
21st May 2019
Hire and recruitment of human resource
15th June 2019
manager
Hiring of dentists
31st June 2019
Start of operations
1st August 2019
Resources needed
Resource
Urgency
Office
Required immediately
Government license
Required immediately
Computers
Required immediately
Furniture
Required immediately
Advertisement
Needed right away
Website
Required immediately
BUSINESS PLAN
Office supplies
17
Required immediately
The resources are required to ensure that operational plans in the organization are effective. Most
of the resources needed to start the periodontal and gingivitis clinic are needed right away to
ensure that everything is in order before operations begin. It would set a bad image for a client to
come on the first day of operation and find the office without the required resources. The
schedule above has taken into account any delays, and any delays would not affect the operations
start date as they are an entire month (July) that is set aside to cater for any delays and for
employees to familiarize themselves with the work environment. This will ensure that the
employees will be in a better position to offer high-quality services to our clients which will
attract more clients and hence increase our market share.
Key Performance Measures.
For any business, it is important to have key performance measures that help evaluate whether
the industry is moving in the right direction. After the evaluation of the business, the managers
can decide whether to implement new policies or to continue with the existing ones depending
on the performance (Abrams, 2003). Periodontal and gingivitis Clinic will also have key
performance measures to help the management evaluate whether we are moving towards
achieving our goals or whether they need to change strategies. The key performance measures
include:
Customer feedback: we rely on customer feedback which will be administered through
anonymous surveys and questionnaires. Positive feedback means we have a good performance
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while negative feedback means poor performance. Customers can also give feedback to their
psychologists on how they feel about the treatment and whether it has the desired effects.
Financial analysis: this will be a critical aspect of evaluating the financial health of the business.
Using financial ratios, we will be able to know whether we are profitable and also compare our
performance with the industry ratios. An upward trend in profitability and revenue is desired
while the costs of production are minimized.
Market share: our percentage of the market share will also be significant in evaluating our
performance. An increasing market share means good performance while a decreasing market
share means poor performance and need to change the existing strategies.
To have a good performance, it is vital to ensure we continue to offer quality services to our
clients to help improve the quality of their life. This will be attainable through hiring of
competent psychologists who understand the needs of the clients better and use the best
treatment method available. A good performance will also be achievable through intensive
marketing which will help create awareness of our services, retain our existing clients and attract
potential clients which will help increase our market share.
Summary of the strength and weakness
The strengths and weaknesses of the business are shown in the table below:
The strength of business includes a strategic location for easier accessibility by the
clients. It has well-qualified staffs who provides a prerequisite treatment plan; it enjoys a
competitive advantage of high-quality service and endows with a qualified management team.
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The weakness of the dental clinic is that it has a challenge in developing and building a
strong brand name; a lot of capital is required for startup and stiff competition from established
hospitals.
The clinic will have highly qualified staff that can offer quality services to the clients and
help them improve the quality of their lives. This will give the business a competitive advantage
among its competitors and hence increase its market share and profitability. The company is also
located strategically in an area that is easily accessible to clients, and thus many of them will feel
comfortable when coming to our clinic. Moreover, the clinic has a highly qualified management
team, with the CEO having vast experience and knowledge of running a psychology department.
The excellent management team will propel the clinic in the right direction becoming financially
healthy and expanding parts to other parts of Saudi Arabia and the UAE at large.
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Reference.
Abrams, M. Rhonda. (2003). The Successful Business Plan: Secrets and Strategies. California:
The Planning Shop.
Joll, C., McKenna, C., McNabb, R., & Shorey, J. (2018). Developments in labour market
analysis (Vol. 11). Routledge.
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