A Business Plan Executive Summary for Audiology Clinic

In this artical we will discuss about business plan and bleow are the summaries point:- This business plan is for a new entrepreneur with innovative ideas in the service and manufacturing industry. The three initial options considered were a dry cleaning business, bakery and confectionery business, and an audiology clinic. The audiology clinic was chosen due to its increasing demand in society and its special nature of being in the health segment. The business will require proper planning with corporate objectives and a strong marketing team for success. Financial requirement analysis will be done to understand the viability of the business plan, including capital expenditure and overhead expenses with probable break-even point analysis. The proposed organization structure includes a CEO, finance and administration, marketing, and operations departments. The marketing department will play a crucial role in bridging the gap between clients and the firm. The main objective of this business plan is to prioritize innovation while also having practical knowledge of finance exploitation and profit extraction.  

Business Plan

Executive Summary
This article is to frame a business plan from three short-listed business plans. Initial
selection of three business plan was Laundry service, Bakery and confectionery
manufacturing unit and audiology clinic. Ultimately the choice was made for audiology
clinic. This selection was made due to the uniqueness of this business with specialized
approach in healthcare segment. This business plan had emphasized on all basic areas
of planning like sales, marketing, financials, risk management and other relevant fields
to prove its authenticity as a strong business plan. This business plan had also
reiterated in the fields of its scope of business in future to prove its long term
sustainability. The financials had shown the scope of profit to justify its existence. The
sales forecast had been done in conservative manner to justify the feasibility of this
business. This business has the ability to create scope of employment for the
professionals and the office staffs. As this business is falls under the head of sole
trader, the funding is essentially taken from the family. The financial projection had
shown the prospect of this business and had justified this proposal as viable for the
entrepreneur and the society. This proposal can ensure the scope of innovation from
different viewpoint of operations. As innovation is one of the key factors for business
entrepreneurship, it is highlighted in the article with its scope for exploring the same.
This business plan can project all related fields of business with necessary analyses to
justify the existence of audiology clinic. The detailed discussion in different aspects of
business plan will highlight the possibility of this business plan to prove its worth as
successful and sustainable in long run.
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Table of Contents
Introduction.................................................................................................................................................5
Proposed name of the firm:........................................................................................................................5
Proposed clinic premise:.............................................................................................................................6
Vision...........................................................................................................................................................6
Mission........................................................................................................................................................6
Objective.....................................................................................................................................................6
Proposed legal entity...................................................................................................................................6
Organizational chart....................................................................................................................................7
Innovations..................................................................................................................................................8
SWOT Analysis.............................................................................................................................................8
Internal factors:.......................................................................................................................................9
Strengths.............................................................................................................................................9
Weaknesses.........................................................................................................................................9
External factors........................................................................................................................................9
Opportunities......................................................................................................................................9
Threats.................................................................................................................................................9
PESTLE Analysis...........................................................................................................................................9
Political..................................................................................................................................................10
Economical............................................................................................................................................10
Social.....................................................................................................................................................10
Technological.........................................................................................................................................10
Legal......................................................................................................................................................11
Environmental.......................................................................................................................................11
Business Feasibilities.................................................................................................................................11
Market segmentation of Hearing-aid sales with statistics in UK............................................................11
Competition of audiology clinics............................................................................................................15
Human Resource.......................................................................................................................................15
Marketing strategy....................................................................................................................................16
Monitoring Mechanism.............................................................................................................................16
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Financial Projection...................................................................................................................................18
Cash flow statement..............................................................................................................................18
Profit and Loss Account.........................................................................................................................20
Balance Sheet........................................................................................................................................21
Break-Even analysis...............................................................................................................................22
Sales Plan...................................................................................................................................................22
Investment planning..................................................................................................................................23
Risk management......................................................................................................................................24
Exit policy..................................................................................................................................................24
Conclusion.................................................................................................................................................25
References:................................................................................................................................................26
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Introduction
This business plan is framed to project innovative ideas of a new entrepreneur in the
fields of making an enterprise with its mission statement, SWOT analysis, PESTLE
analysis, marketing and Sales strategy, projected financials, legal aspects and other
allied fields necessary for the business plan. Initially the chosen options were dry
cleaning business, bakery and confectionery business and an audiology clinic. Of these
three options, dry cleaning business falls under service segment, bakery and
confectionery falls under manufacturing segment of industry; while audiology clinic is in
composite form of both sales of goods and service industry. Out of these three
industries, audiology clinic is special with its nature of business due to its increasing
demand in the society. Moreover, this business is coming under health segment with
special flavor of serving the people to fight against their long-term physical inability. Due
to availability of the professional in the segment of audiology though referred known
human resource, thought of this venture had come to my mind. This is a specialized line
of medical science with lots of scopes to prove the innovation skills for a young
entrepreneur. This business needs proper planning with corporate objectives to set. As
this business needs extensive marketing planning for initial footsteps in the market, a
strong marketing team is required for the success of this business. One of the main
tasks is to prepare financial requirement analysis divided into capital expenditure and
overhead expenses with probable break-even point analysis to understand the viability
of this business plan. That analysis will follow other analyses in the domains of
marketing, competitors’, socio-economic, long term sustainability and feasibility of this
plan. The main objective of this article is to frame a proposed business plan with
innovation given priority with practical knowledge of finance exploitation and extraction
of profit from this operation.
Proposed name of the firm:
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Total Rescue Hearing Clinic
Proposed clinic premise:
Near a Hospital with ENT out-patient department
Vision
Enhancement of life style for the specially-able people of hearing disorder through
rehabilitation process and available technological support for the community (Ray,
2018)
Mission
Assurance to the community of people with hearing impairment by sustainable value
added and quality service to ensure better life style (Ward, 2018)
Objective
 Honest and ethical approach
 Assurance to solution for the problem of the clients
 Value for money to the clients
 Transparency in stakeholder handling
 Grow with efficiency
 Strong corporate governance (Root, 2019)
Proposed legal entity
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The firm will start its operation in the legal status of sole trader and under the category
of small business. (Bridge, 2019)
Organizational chart
An organization chart is required for starting a business. (smartdraw, n.d.) This
organization will run with the following structure. Top of this organization structure is the
CEO, who is the sole owner of the firm. Under him, three different operating
departments will run their activities. They are finance and administration; marketing, and
operations. Finance and administration will cover the domain of finance management,
accounting and administrative operations. Operations will cover the areas of client
handling, management of supply chain associates and other stakeholders. Sales and
marketing department will cover entire sales and marketing operation as required for
this business. The performance of marketing will play very important role as marketing
will bridge the gap between the clients and the firm. The role of marketing will be
discussed later under specific head of discussion ‘marketing’. (Audiology, 2008)
.
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SalesAndMarketingOperationsClienthandling

Innovations
This business plan will endorse the concept of innovation in the field of service industry
with health service at its focal point. (Markus Perkmann, 2017) The service of audiology
for the specially-able community ensures better living options for the affected people.
This field demands high level of professional perfection. Due to current environmental
situation of high level sound pollution, this provision will encourage good business,
provided the service is excellent. Innovation in this field is possible through systematic
therapy with new scope of child care to make them part of the main stream citizen. As
this business is attached to healthcare, specialist professionals of this segment would
ensure latest development in the technological field to extend best level of possible
therapy for the patients. Innovations may grow in the fields by:
 Unique style of treatment to ensure effective deliverance to the stakeholders;
 Proper application of audiology apparatus with proper diagnosis of clients;
 Regular improvement of therapy pattern for the hearing impaired community;
 Exploration of new market for this business;
 Exploration of supply chain associates with better apparatus;
 Reach the target audience through web advertisement;
 Proper web support for the target audience through high-end website of the
organization with regular assessment to improve the same;
 Adoption of calculated risk for the expansion- both domestic and overseas;
 Unique system of attending problems with time-bound assured solutions;
 Unique approach to connect with the society by different social activities;
 Openness with flexibility and adaptability.
SWOT Analysis
SWOT analysis of this business plan is necessary to assess the risk factors related to
this business. (Jurevicius, 2013) Internal factors as strengths and weaknesses will
highlight the in-house merits and demerits of the organization, where as external factors
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like opportunities and threats will dominate the business situation, which is beyond
control of the entrepreneur, but can be faced with proper strategic planning of the
upcoming happenings. (ASHA, 2012)
Internal factors:
Strengths
 Professional approach for the clients
 Assurance of proper solution with detection of real problem
 Adaption of changing technologies
Weaknesses
 Requirement of longer time for therapy
 Retention of clients
 Reaching proper target audience
External factors
Opportunities
 Increasing market
 Availability of professionals
 Referral from satisfied clients and doctors
Threats
 Competition from other clinics
 Adaptation of new technology in audiology
 Future change of government policy related to this field
PESTLE Analysis
PESTLE analysis is required to understand the socio-economic position nd respective
response to be made for the business in discussion. (Frue, 2017)
Political
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As this clinic will start operating in London, the political condition seems to be stable in
spite of the hot issue of Brexit. The political situation does not have high impact on this
business, as this business falls under healthcare segment. (Traynor, 2018)
Economical
Economical impact on this business has no distinct impact, as this business is not
impulsive in nature; instead this business is compulsive in nature. The people of
affected segment need to get it cured for better life style. Hence economical factor has
least impact on this business. It may hamper the level of purchase of hearing aid- value
wise, but the business will be certain when the diagnosis is done and the need of
therapy or machine is prescribed by the professionals. (Law et al., 2011)
Social
Social impact of this entrepreneurship will have good impact, as this is related to
healthcare segment and would provide better life style for the target audience.
Moreover, through different value added services like workshops and seminars, this
venture would provide better awareness to the society by providing better knowledge of
the features, which needs healthcare attention for the affected people. (Rosenbaum,
2016)
Technological
Technological impacts of this entrepreneurship are with multi dimension. For audiology,
technological innovation and upgrading of hearing-aids makes the life of patients more
meaningful with proper identification of reason for living. This therapy, through
application of the upgraded version of service by professionals, will provide the affected
community better provision to live life with the deficiency being mitigated. (Ward, 2015)
Legal
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As per the Universal Declaration of Human Rights, Article 19, each individual has the
right to communicate in their own accessible culture. This Article provides the right for
every individual and legality of this business provides better life style for the hearing
impaired people through therapy and technological assistance. (MacLeod, 2018)
The implication of European Union Law regarding audiology profession is to ensure
General Data Protection regulation or GDPR. Enactment of this law is effective since
25th May, 2018. This GDPR is enforced to protect the data in the global culture of
digitized information maintenance. This rule is proposed in 2016 and is enforced since
2018. Violation of this regulation will cost the organization 20 million Euro or 4% of
global turnover of the organization. While starting this business, we have to keep in
mind the implication of this law and to adhere to its compliance as per guideline fixed by
the authority. (Cooling, 2018)
Environmental
Environment is changing the hazards and to be faced by the living creatures of the
planet including human being. The environmental hazards through sound pollution
make the life of individuals handicapped with loss of hearing. The people with hearing
disabilities, particularly the children, are affected by the changing environment. Hence,
the impact of environment increases the scope of this business with better level of
service to the mankind. It is the need of the time to create better environment for the
affected people of this segment so that they should not feel isolated and feel them as
part of the society. (Guesthouse, 2009)
Business Feasibilities
Market segmentation of Hearing-aid sales with statistics in UK
Market segmentation of hearing-aid is divided into two broad categories- manufacturers
in UK and Ireland and the demographic factors of the UK and Ireland. First we will
discuss about the manufacturer-wise segmentation of hearing aid market, and then we
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will consider the demographic factor of population facing hearing impairment. (Cooling,
2015)
The main manufacturers of hearing aid in UK and Ireland are divided into two
categories. They are NHS and private manufacturers. While NHS is defined as National
Health Service, (NHS, n.d.), private category represents the entrepreneurial effort
towards manufacturing hearing-aids. The British and Irish Hearing Instrument
Manufacturers Association (BIHIMA) regularly releases the results of turnover quarter-
wise to assess the trend of the market so far business is concerned. The observation
shows the sales of NHS products for 2018 is down by 1.3% with units count of 17,867.
The private market for the same period had shown an increase of 4.2% with the
increase in unit counts to 12,866. There was an overall diminishing pattern in the entire
market including NHS and Private market of 0.3% and with total count of units as 4981.
The result of Ireland also substantiates the growth of 8.8% in Q4 by unit with overall
increase in unit sales as 1.3% for 2018.
BIHIMA have also tracked the trend in change of technology for purchasing of hearing
aids by the patient of private sector. The Q4 result had shown the BTE (behind the ear)
technology is getting less popular as the sales are going down by 2.9% of market share.
Gradual fill-in-the gap technology proves popular is RITE (receiver in the ear). The
products with this technology are now covering 70.9% of total units sold in the UK from
private sources. The chairman of BIHIMA, Paul Surridge, had reiterated that the trend of
conversion of patient to private sector is encouraging as the awareness of better
hearing is acknowledged by the community with the help of latest technology. (BIHIMA,
2019)
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Figure 1- Market Size of Hearing Aid (in Units) - UK (BIHIMA, 2019)
The comparative study of UK private market is featured below through the graphics
presented by BIHIMA. Different studies infer that the private sector in this industry is
increasing at a steady rate. This is because of adhering to the needs of the clients and
fulfilling their needs with latest technologies. The study depicts in graphics showing
quarter-wise growth of turnover for 2017 and 2018; four years’ performance growth
quarter-wise from 2015 to 2018; quarter4 performance for three years of 2016 to 2018;
and cumulative performance growth of turnover up to quarter four for 2017 and 2018.
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Figure 2- Quarter-wise turnover analysis of private sector for different year-wise
parameter (BIHIMA, 2019)
The demographic analysis of people in UK with hearing loss had shown substantially
alarming for the UK population. The statistical data infers that around 11 million people
are having hearing loss in UK, which is around one of six persons of population. The
expected population affected with hearing loss will rise to 15.6 million people by 2035
across the UK worsening the ratio of one in five persons worsening the situation. The
children population cursed with hearing loss is around 50,000, out of whom around 50%
are born with hearing loss and the other 50% lose their hearing ability during their
childhood. The estimated population of 900,000 has the degree of hearing loss as
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severe or profound scales. Out of this population, around 24,000 people of UK use
British sign Language as their main communicating medium. Out of the total population
over 50 years of age, 40 % have this disability with the % gets rising to 71% for
population over 70. (Loss, n.d.)
With the above analyses regarding market segmentation of target audience with
hearing loss in UK, this business has potential growth prospect, if the same can be
carried on professionally.
Competition of audiology clinics
Competition of audiology clinics will prevail as there is hardly any place for new entrant
in any business. But the marketing approach will overcome this constraint. As this is a
sales-cum-service industry and better service provider will sustain in the market, the
endeavor of this business is to ensure possible best level of service to the target
audience. Best level of service can only be possible with best level of professional
ability with best level of hearing aids to be kept for disposal. Business feasibility always
depends upon the existing competition in the market. As this business is a specialized
segment of business with main focus on the health segment, the clients will obviously
come with their hearing loss. It is the duty of the firm to provide them with best possible
solution as per their budget with offering of latest technology. (Westbrook, 2018)
Human Resource
This business requires professionals in the field of audiology with preferable
qualification of Bachelor of Science, finance professional, marketing professional,
supply chain professional and some people in office work. Out of them, most important
is the audiologist who would be reckoned as the backbone of the firm. The success of
this firm would depend upon the professional approach of the audiologist empowered by
his knowledge of the field and latest technology. Other professionals would have the
flexibility of changing their strategy as per the demand of the business. Particularly, the
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marketing professional has to be most attentive to feel the need of the clients and act
accordingly. Finance professional is the person to manage finance and accounts, to
ensure that no ambiguity in financial reporting should be there. He should be well
conversant with the tax matter and other statutory financial reporting, so that the
stakeholders should feel prudence in financial reporting.
Marketing strategy
This business needs strong marketing strategy to connect with the target audience and
society. Normally, this type of business demands awareness of the target audience.
Hence, to enhance the awareness limit of the target audience, seminar or workshop is
to be organized by the firm with specific focus on the demerits of hearing loss and the
would-be steps for the target audience to get rid of this physical shortcoming. General
advertisements in regular interval in social and print media are good options. Moreover,
the patient flow can be ensured with the personal relationship between the marketing
professional and ENT doctors of locality and nearby hospital OPD of ENT. In return, the
firm can offer gestural mementos or gifts from time to time for those doctors, who refer
patients to the clinic. Good seminar and workshop with free hearing test are also very
effective in this regard. Marketing strategy is to be flexible and to be changed from time
to time with offering to the patients by way of discounts. Initiatives may be taken in the
form of incentives to the respective stakeholders like audiologist, doctors referring and
other personnel responsible for good business of the firm. Another effective option of
hearing aid marketing is digitized marketing in the form of web advertisement in different
social media and search engines. (MD, 2018)
Monitoring Mechanism
Monitoring mechanism of this business plan will be divided into multi-layer operations.
First layer will be to ensure patient flow to the clinic. This operation is to be initiated
from the hospitals through the OPD section of ENT category. The doctors or surgeons,
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sitting there to attend the patients, can identify the need of the patients related to
hearing loss symptom. Next layer would be channelization of those patients to
audiology clinic. Those patients are to be channelized to the hearing aid clinic. Third
layer of operation management is testing of the patient so far severity of hearing loss is
concerned. When the patients with identified hearing loss are referred to the clinic, basic
test to be done initially by the audiologist professional is audio-metric test. This test can
identify the severity of hearing loss persisting for that patient for both the ears. The
computerized report generated through software would be provided to the patient to
make him understand the severity of hearing loss for both the ears and the need of
hearing aids. This prescription may be again verified by the referring doctor or surgeon.
Fourth layer monitoring mechanism is consisting of order placement of hearing aid by
the patient to the clinic. After confirmation of the requirement of hearing aid, the patient
would be informed with the catalogue of hearing aids featuring different level of hearing
aid machines with their prices and features. The patient then has to choose the type as
per his need and the budget. After choosing the hearing aid machine, the patient would
confirm his choice of hearing aid machines. Next level is procurement of hearing aid
machine. The hearing aid machines are to be booked by patient by making advance
payment. As hearing aid machines are not available ready to use and need to be
customized as per the need of the patient, the selected machine is to be placed to the
manufacturing company for necessary tuning and adjustments for the patient. This part
of monitoring mechanism requires sophisticated and high-end technological assistance.
Penultimate layer of monitoring mechanism is to fix the hearing aid machines to the
ears of the patients after final payment being made. In this layer of mentoring
mechanism the efficiency of audiologist is proved through his professional
accomplishment. Basic objective of this sales and service of hearing aid is to ensure
better life style for the patient with perfection of professionalism and theoretical
knowledge. There is another layer of monitoring mechanism persisting in the form of
after sales service of the hearing aid machines. As these hearing aid machines are run
by electrical power provided by the batteries, required batteries are needed to be
replaced in prescribed intervals to ensure smooth functioning of those hearing aids.
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With above process management flow, it is evident that it is not a single activity sale.
There are different levels of activities for this sales and service operation. To optimize
patient satisfaction, this process should go through internal checks and required level of
inspection of the hearing aid machines. Any mistake in this process can cause
discomfort to the patient and ultimately the clinic can face legal problems. Hence it is
advisable that the entire process management of monitoring mechanism should pass
through rigorous internal checks and ensure best possible service to the patients
providing him better life style. (Krumm, 2016)
Financial Projection
Financial projection is most vital part of any business plan. This projection will consist
of projected cash flow statement, projected profit and loss account, projected balance
sheet and projected break-even analysis of sales. Of these projections, cash flow, P & L
a/c and balance sheet will be made for coming three years, as required. Break-even
analysis projection is one time exercise.
The financial projection reports are based on certain logical or viable assumptions.
These assumptions are made as per the business standard of any region. Financial
projection reports would be justified with these assumptions. The more authentic these
assumptions would be; the more accurate would be the business financial performance.
Cash flow statement
Cash flow statement is made to understand the flow of funds. There are two parts of this
report- inflow of funds and outflow of funds. This cash flow projection is the first
projection, which can display the viability of any business plan. For this business plan
certain assumptions are made in regard to inflow and outflow of fund.
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For inflow of funds, the first and foremost element is capital. It is assumed for this
business plan that the capital will be injected from family source on loan with the repay
period fixed as six years and with the interest clause of 9% per annum. Next
assumption is on revenue. In this business plan of audiology clinic, revenue would be
generated from consultancy services and sales of hearing aids to the probable clients.
The assumption for this purpose is made on logical ground with least possible patient
flow. The consultancy charges are fixed as 5 GBP per patient for necessary test and
prescription by the audiologist. Revenue from sales of hearing aids is considered to be
logical with least number of willing patients to purchase the machines. The price range
had been considered as per the present trend of prices for different machines as per
features and prices. The revenue from sales also includes sales of peripherals like
batteries required to be replaced after certain period. (Hearingaidknow, 2019)
The next part is outflow of funds. Outflow of funds is mainly representing expenditure
under different heads. The outflow would consist of different expense heads to arrive at
the net cash balance at the end of any period. This cash balance will be transferred to
next year as opening cash balance. Given below the projected cash flow statement for
this business plan for next three years: (CFI, 2019)
Projected Cash Flow Statement for three years
Particulars 2019 2020 2021
Cash Inflow:
Opening balance £ 31,720.00 £ 10,697.00
Capital-From Family source(Loan) £ 30,000.00 £ 5,000.00
Revenue from consultancy service £ 5,750.00 £ 6,900.00 £ 8,625.00
Revenue from Hearing-aid sales and peripherals £ 152,000.00 £ 182,400.00 £ 237,120.00
Total Inflow £ 187,750.00 £ 189,300.00 £ 250,745.00
cash outflow:
Licensing fees £ 80.00
Fixed assets £ 7,500.00
Operational expenses £ 22,000.00 £ 30,000.00 £ 35,000.00
Marketing Expenses £ 35,130.00 £ 40,240.00 £ 48,712.00
Payment to Supply chain Associates £ 83,215.00 £ 100,320.00 £ 130,416.00
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Interest to Loan £ 2,700.00 £ 2,250.00 £ 1,800.00
Repayment of Loan £ 5,000.00 £ 5,000.00 £ 5,000.00
Corporate Tax £ 405.00 £ 793.00 £ 3,471.90
Total Outflow £ 156,030.00 £ 178,603.00 £ 224,399.90
Surplus-Cash in Hand £ 31,720.00 £ 10,697.00 £ 26,345.10
Profit and Loss Account
Profit and loss account depicts the financial position of the organization and is prepared
on the basis of financial information provided by the financial transactions for any
specific financial period. This profit and loss account would include derivation of gross
margin by deducting cost of goods sold from revenue. From that gross margin, other
fixed and variable costs are deducted to arrive at the profit before tax amount. After then
corporate tax (Burton, 2017) is being deducted to arrive at the profit after tax, which is to
be accumulated in owner’s equity. (Guru99, 2019)
Appended below the projected profit and loss account for this business plan:
Projected Profit and Loss Account for Three years
Particulars 2019 2020 2021
Gross Revenue £ 157,750.00 £ 189,300.00 £ 245,745.00
Less Cost of Goods sold £ 83,215.00 £ 100,320.00 £ 130,416.00
Gross Margin £ 74,535.00 £ 88,980.00 £ 115,329.00
Less Expenses:
Licensing fees £ 80.00
Operational Expenses £ 22,000.00 £ 30,000.00 £ 35,000.00
Marketing Expenses £ 35,130.00 £ 40,240.00 £ 48,712.00
Depreciation on fixed assets £ 750.00 £ 675.00 £ 607.50
Interest on loan £ 2,700.00 £ 2,250.00 £ 1,800.00
Total Expense £ 60,660.00 £ 73,165.00 £ 86,119.50
Net Profit before tax £ 13,875.00 £ 15,815.00 £ 29,209.50
Income tax(exempted up to 11850 GBP) £ 405.00 £ 793.00 £ 3,471.90
Profit after tax- to be transferred to owner's equity £ 13,470.00 £ 15,022.00 £ 25,737.60
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Balance Sheet
Balance sheet depicts the consolidated financial position of any organization. This
statement is made of assets and liabilities of the organization at the end of any financial
period. Balance sheet can project different important financial information for the
stakeholders including working capital analysis. For this business plan, balance sheet is
necessary to understand the financial position of the organization after the financial
year, and this statement is made for next three years to feel the trend of the business
from financial perspective. (Ward, 2018)
Appended below the balance sheet for next three years of the business plan:
Projected Balance Sheet for Three Years
Particulars 2019 2020 2021
Assets:
Fixed Assets :
Furniture and Fixtures £ 7,500.00 £ 6,750.00 £ 6,075.00
Current Assets :
Inventory £ 7,600.00 £ 9,120.00 £ 11,856.00
Cash in Hand £ 31,720.00 £ 10,697.00 £ 26,345.10
Receivables £ 4,025.00 £ 15,660.00 £ 5,000.00
Total Current assets £ 43,345.00 £ 35,477.00 £ 43,201.10
Total Asset £ 50,845.00 £ 42,227.00 £ 49,276.10
Liabilities:
Long term Liabilities :
Loan £ 30,000.00 £ 25,000.00 £ 20,000.00
Short term Liabilities :
Payable £ 7,375.00 £ 2,205.00 £ 3,538.50
Total Liabilities £ 37,375.00 £ 27,205.00 £ 23,538.50
Transfer to Owner's Equity £ 13,470.00 £ 15,022.00 £ 25,737.60
Total Liabilities and Owner's equity £ 50,845.00 £ 42,227.00 £ 49,276.10
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Break-Even analysis
Break-even analysis is made to find out the sales in value, on which the organization
can be on no-profit, no-loss stand. In fact the identification of break-even analysis can
guide the business owner to reach that coveted value sales to ensure that loss is not
generated from the business. (Nickolas, 2019)
Break even analysis is calculated on the components of projected revenue, projected
fixed cost in the form of salary and other fixed overhead and total variable costs. This
analysis is depending upon some arithmetic calculations with the above components.
Appended below the analysis:
Projected Break Even Analysis
Particulars
Projected revenue £ 13,146
projected fixed cost
salary £ 3,000
fixed overhead £ 4,200
Total £ 7,200
projected variable cost £ 4,985
contribution margin= 0.62
1-(Projected Variable cost/Projected Revenue)
Breakeven sales= £ 11,598
Total fixed cost/ contribution margin
With all these financial projections of the business plan of audiology clinic in the UK, it is
comfortably justified with satisfaction that this business can sustain in long-run provided
the resources are provided with adequacy and quality.
Sales Plan
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This business plan needs to sell both service and goods. To make this dual objective
successful, this business needs strong sales plan for both consultancy and sales of
hearing aids. To ensure steady sales plan, realistic sales projection is to be made by the
sales team. 1st year is crucial for every business. For this business, 1st year sales
forecast is done in such a way that reality should be honored instead of dreaming big.
Given below the sales forecast by the team to ensure that the target is achievable with
realistic sales value considering the price range of hearing aids:
sales plan
1/1
9
2/1
9
3/1
9 4/19 5/19 6/19 7/19 8/19 9/19
10/1
9
11/1
9
12/1
9
no of patients-
proposed 20 30 40 50 60 75 100 125 150 150 150 200
Consultancy Fees
@ GBP 5 per
patient
£
100
£
150
£
200
£
250
£
300
£
375
£
500
£
625
£
750
£
750
£
750
£
1,00
0
sales unit 2 4 5 7 8 10 10 12 12 14 16 20
sales price
£
2,0
00
£
4,8
00
£
6,8
00
£
10,2
00
£
11,1
00
£
13,6
50
£
11,7
00
£
14,1
50
£
15,2
00
£
17,9
00
£
19,4
00
£
24,4
00
The above sales forecast is made by considering the trend of the market of audiology
with the market segmentation of increasing population in the UK with hearing loss
problem. Following years will see sales plan with 20 and 25% respective growth with
same consideration of other factors. (Queensland, 2016)
Investment planning
Being a firm with status of sole trader, the entrepreneur has to arrange for the initial
funding from his own resources. The capital has been injected by parental sources with
the condition of repaying the same by next 6 year and with 9% annual interest to be
paid against this loan till it is paid off. Due to enough potential of this business in the UK,
the organization is expecting to pay off the entire loan by next 5 years’ time. By this
time, the organization will have its own strong footing in the market and be able to get
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loan from financial institutions with prevalent conditions for its expansion program in
domestic and overseas market. Investors look for return from any business plan with
steady growth and sustainable future. This business can provide such opportunity with
the growth prospect in domestic as well as overseas operations. (Deloitte, n.d.)
Risk management
This business plan has strong possibility to succeed after inception. But, like all
business proposition, this business plan has risk factors, which are to be mitigated by
proper risk management. The field of audiology is related to health service to
rehabilitate patients with hearing loss. Probable risks in this domain are mainly related
to health hazards of the patient’s pre and post fitting of hearing aid. It is the ethical duty
of the professional audiologist to mitigate the related risks by applying his practical and
theoretical knowledge. Proper professional approach with due documentation may be
useful to mitigate such risks along with application of professional knowledge earned
during study and practice. The guide book of audiologist always put emphasis on the
issues of professional risk, which may harm the practitioner also. It is the duty of the
professional to be attentive and careful in this regard, so that unnecessary risks can be
averted by proper attention and application of knowledge. (ASHA, 1994)
Exit policy
Like all business plan, this plan should have an exit policy for the owner. If the business
is not doing fair enough as per estimation or assumption, the owner has every right to
exit from this business. But, before exiting, the owner should take care of the payables
and the investors. The business may wound up with all its assets and liabilities including
fixed and current categories to mitigate the liabilities of the firm. Or it may be sold with
goodwill valuation to make the exit policy smooth and hazardless. Even the scope of
acquisition proposal by bigger firm may cause exit policy for the entrepreneur. Framing
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an exit policy early of any business has the scope of the entrepreneur to think of new
ventures by accumulating money by acquisition or absorption by big corporate. (Davis,
2015)
Conclusion
The above business plan is made to understand the role of entrepreneurship in modern
commercial world in perspective of UK scenario. This business plan had emphasized in
different domains of business process- the vision, mission and corporate objective, the
organizational structure, different socio-economic analyses in the form of PESTLE and
SWOT in perspective of this business, the marketing segmentation in respect of
production and demographic alignment of the patients, competitors’ activities, human
resource and marketing strategy, the financial analyses, sales plan, investment
planning, risk management and exit policy. The chosen business is audiology clinic. It is
based on sales-cum-service oriented business in health segment. The above write-up
will give ideas about the profitability scope of the business along with its uniqueness to
sustain in the market for long run. Basic objective of this business plan is to explore the
scopes of innovation from this business. There is enough scope as discussed above
related to multi-layer scope of innovation. This business has social value too by way of
serving the community of hearing impaired. This business plan can be treated as
standard business plan for any new entrepreneur to be successful in future.
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