Business Plan for Setting up Aesthetics Clinic

This report presents a business plan for setting up an aesthetics clinic in Our Tampines Hub. It includes research and analysis, marketing plan, financial analysis, and investment proposal formulation. The report also discusses the potential of the Amaris B aesthetics clinic and its unique selling proposition.

RUNNING HEAD: Business plan for setting up Aesthetics Clinic
1
Name of the student-
Topic- Business plan for setting up Aesthetics Clinic
University Name-

Business plan for setting up Aesthetics Clinic 2
Table of Contents
1. Executive summary.......................................................................................................................5
2. The busienss concept.....................................................................................................................6
2.1 Description of the business..........................................................................................................6
Unique selling of (Our Tampines Hub) Amaris B Aesthetics clinic..................................................6
2.2 Goals of the Amaris B asthenic clinic at Our Tampines Hub.......................................................7
Potential of the Amaris B......................................................................................................................7
3. Research and analysis....................................................................................................................8
3.1 Target market...............................................................................................................................9
3.2 Market Size and Trends Based on Research Data......................................................................10
3.3 SWOT analysis of Company.....................................................................................................11
4. Marketing plan formation............................................................................................................12
4.1 Pricing strategy for the Amaris B..............................................................................................12
4.2 Promotion activities provided by Franchisors............................................................................13
5. Management design.....................................................................................................................13
5.1 Legal obligation of Amaris B....................................................................................................13
5.2 Personnel Requirements to run the franchise.............................................................................13
6. Financial analysis of company.....................................................................................................15
6.1 Projection of the income statement of........................................................................................15
6.1.1 The First year income statement of the Amaris B has been given below............................15
6.1.1 The second year income statement of the Amaris B has been given below........................16
.........................................................................................................................................................16
6.1.1 The third year income statement of the Amaris B has been given below............................17
.1.3 Balance sheet statement of Aesthetics Clinic for upcoming three years...................................17
6.1.4 Cash flow statement of Aesthetics Clinic for the first year.....................................................19
6.1.3 Cash flow statement of Aesthetics Clinic for the second year................................................19
6.1.3 Cash flow statement of Aesthetics Clinic for the third year....................................................20
6.2 Graphical presentation of the Break-even point of the company...............................................21
7. Investment proposal formulation.................................................................................................21
7.1 Source of funding......................................................................................................................21
7.2 Expected financial return of company.................................................................................23
7.3 Total capital required from the angle investors and proportion of the investment.....................24
8. Critical risk analysis....................................................................................................................25

Business plan for setting up Aesthetics Clinic 3
8.1 Critical Risk of setting up new business at Our Tampines Hub.................................................25
8.2 Alternative Courses of Action...................................................................................................25
9. Conclusion...................................................................................................................................26
References...........................................................................................................................................27
Appendix.............................................................................................................................................30

Business plan for setting up Aesthetics Clinic 4
1. Executive summary
In this report, proper busienss plan has been formulated. However, operation,
marketing and financial plans implemented will help in evaluating the internal and external
factors of business. In this report, proper business plan will be implemented to determine the
resources required and future project financial statement of company. It will be useful for the
company to determine whether starting up Asthenic clinic in Our Tampines Hub. It will be
beneficial for the investors, residents of Our Tampines Hub and promoters of the business.
This report has assisted in evaluating the financial, marketing and operational functioning of
company. The new busienss name would be Amaris B. The main outcomes of this report are
related to break-even point at which Amaris B would be having no profit no loss. The Amaris
B will have no profit no loss if it sales its cosmetic services to 250 patients. Nonetheless, due
to the high profitability, Amaris B would earn good amount of profit due to the client’s
inclination towards the cosmetic improvement services. The capital budgeting analysis has
also reflected that NPV of the company is positive and showing effective IRR rate which is a
good indicator for Amaris B to start up new Asthenic clinic in Our Tampines Hub. This
Amaris B Aesthetics clinic will help Our Tampines Hub to get proper treatment for scars,
skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder. It will
also assist residents of Tampines to get proper health care services in Our Tampines Hub.
This busienss would be the franchise of Amaris B and it has to maintain the same level of
quality in its services. Therefore, Amaris B in Our Tampines Hub needs to use advanced
technologies to offer cosmetic improvement services to the residents. Another outcome of
the newly established busienss in Our Tampines Hub would be related to capturing niche
market. It will not only create effective brand image but also increase the profitability of
company. Amaris B aesthetics clinic will be set up our tampines for treatment for scars, skin
Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder. The main goal
of the Amaris B aesthetics clinic is to provide effective cosmetic improvement services to
clients at the least effective price.

Business plan for setting up Aesthetics Clinic 5
2. The busienss concept
2.1 Description of the business
With the ramified economic changes and complex busienss structure, it would be
beneficial for starting up Aesthetics clinic for residents of Tampines. It is observed that
Aesthetics clinic is set up to residents of Tampines for their better satisfaction. This business
is started with a view to attract residents of Tampines in determined approach. The new
Aesthetics clinic is set up to provide the medical services and treatment for improving
cosmetic appearance through various surgeries. It includes treatment for scars, skin Laxity,
wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder. The name of the
busienss would be Amaris B. There are several hospitals and clinics. However, with the
changes in economic conditions, Our Tampines Hub may look for setting up Aesthetics
clinic. It would be hard to determine the actual cost of investment to set up the new
Aesthetics clinic but it might take investment of approximate 1million. The Amaris B is the
biggest medical center in Singapore which geared up to set up its franchise in our Tampines
hub (McKenzie, 2017).
Product line of company
Amaris B would be providing following types of services which help in cosmetic
improvement of the clients such as
 SKIN Treatment
 FACE improvement surgeries
 BODY CONDITIONS improvement treatment
Unique selling of (Our Tampines Hub) Amaris B Aesthetics clinic
 This Amaris B Aesthetics clinic has been incorporated to help Our Tampines Hub to
get proper treatment for improving cosmetic appearance. Company has planned to
provide all of its treatment services to the residents of Tampines at very low cost to
increase their satisfactions and health.
 In Singapore, people are more inclined towards grasping cosmetic services which are
high in quality and less in cost. This will help Amaris B Aesthetics clinic to increase
the overall value of the organization in determined approach.

Business plan for setting up Aesthetics Clinic 6
 This Amaris B aesthetics clinic could establish strong brand image and also offer best
treatment for asthenia and psychic disorder.
 The main key intent of Amaris B aesthetics clinic is related to providing treatment for
improving cosmetic appearance by using special meditation and advanced
technologies for the residents of Tampines.
 This busienss will assist residents of Tampines. The Amaris B aesthetics clinic has
also adopted new advanced cyber computing enterprises resources planning to
establish automation in the busienss and attract clients who are more inclined towards
new technologies (McKenzie, 2017).
2.2 Goals of the Amaris B asthenic clinic at Our Tampines Hub
It is observed that Amaris B aesthetics clinic will be set up our tampines for treatment
for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder.
It helps residents of tampines hub for their improving their cosmetic appearance. It will not
only be positive factors for Our tampiness hub but also increase the value of the client’s
satisfaction in determined approach.
The main goal of the Amaris B aesthetics clinic is to increase the overall profit and
value of the patient’s satisfaction in determined approach. In addition to this, by
incorporating Amaris B aesthetics clinic, it will result to deployment of additional funds and
increase the return on capital employed in determined approach. It is further observed that
there are several sub goals behind incorporating the Amaris B aesthetics clinic which are
given as below (McKenzie, 2017).
 Increasing the client satisfaction
 Enhancing the business by adopting new life cycle and diversifying the busienss in other
business sectors
 Increasing the brand image by grasping more clients in market through diversified strategy
plan.
Potential of the Amaris B
Investor’s point of view

Business plan for setting up Aesthetics Clinic 7
There will be several benefits for the investors to incorporate Amaris B aesthetics
clinic. It will increase the overall turnover and return on the capital employed. Investors could
easily create value on their investment.
Promoter of Amaris B
With the changes and development of the business at Our Tampines Hub, it is
observed that the Amaris B aesthetics clinic will attract more patients in determined
approach. However, with the advanced technologies and strong brand image, Amaris B
aesthetics clinic could easily provide cosmetic surgeries and other benefits. It will also
increase the overall outcomes and efficiency of the business.
Residents of Amaris B aesthetics clinic
It is observed that the Amaris B aesthetics clinic needs to focus on its internal and
external stakeholders who may influence or get influenced by the business activities of
organization. It is analysed that with this new busienss franchise, company could easily
establish strong brand image and increased its overall turnover of the market.
3. Research and analysis
This research analysis has been implemented for the betterment of the society and
economic at large. It will helps in assessment of the existing business and target market of the
Amaris B asthenic clinic. At Our Tampines Hub, Amaris B will set up the clinic for the better
or treatment for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and
skin disorder of the residents living in hub. However, as per the statistical data, the market
size of the asthenia and psychic disorder Amaris B is approximate 258301.

Business plan for setting up Aesthetics Clinic 8
3.1 Target market
The Amaris B could use sample survey or monkey survey to collect the imperative
information from the people living in Our Tampines Hub. It is assessed that in health care
industry, clients are more inclined towards grasping best quality services. Generally market
could be divided into four different groups such as geographic demographics, psychographics
and benefits segmentation. This Amaris B aesthetics Clinic offers various benefits to the
residents of Tampines (McKeever, (2016).
Geographic’s segmentation
The Amaris B aesthetics clinic is set up to provide treatment for scars, skin Laxity,
wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder of the residents living
in Our Tampines Hub. For instance, there are several patients either from outside of Our
Tampines Hub or from inside who comes for the cosmetic surgery and other psychological
treatments. Ideally the main geographical focus of Amaris B would be on the residents of
Tampines Hub (Schaper, et al. 2014).
Demographics
The Amaris B aesthetics clinic could bifurcate the choice, by representing the middle
and aged professionals with high level of income belonging to upper social class among
residents of Tampines. It could also focus on the clients who prefer the luxury lifestyle and
wants to avail premium services.
The main focus would be on providing highly advanced services such as cosmetic
surgery, treatment for asthenia and psychic disorder to the people having income from MYR
15000 and more. Residents having income less than MYR 15,000 may be bifurcated for the
potential of other services. In addition to this, People who fall in the age group from 22 to 70
years would be the main target clients. Nonetheless, females’ candidates having age between
35 years to 50 years are more inclined towards getting services from Amaris B aesthetics
clinic.
Benefits segmentation
Amaris B aesthetics clinic could offer several benefits such as health care services
include treatment for asthenia and psychic disorder to residents of Tampines. This will help

Business plan for setting up Aesthetics Clinic 9
the Amaris B to grasp more clients by offering customized health care and asthenic services
for the residents of Tampines. This customized cosmetic surgery will be helpful to get
particular improvement of cosmetics appearance (Hopp & Greene, 2017).
Needs of the residents of Tampines
It is observed that residents of Tampines are sophisticated and inclined towards
grasping best quality of services irrespective of the price factors. Residents of Tampines are
having busy schedule and find really hard to manage time. Therefore, the Amaris B aesthetics
clinic could easily prepare customized good health care packages for treatment of scars, skin
Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder for the
residents of Tampine (Mason, & Stark, 2014).
3.2 Market Size and Trends Based on Research Data
Market size
The market size of the Amaris B aesthetics clinic is very limited. There are only
258310 residents of Tampines. It is observed that the residents of Tampines could use these
services treatment for asthenia and psychic disorder (Shum and Lee, 2014).
Trend based on research data
The trend analysis could be used to estimate the future demand and turnover of
Amaris B asthenic clinic. It will help management to evaluate available resources are enough
for the operation to meet its current liabilities in market. After evaluating all the details and
information, it is considered that people in Tampines have been facing problems and health
issues either related to asthenia and psychic disorder or mental stress issues. Therefore, on the
basis of past data, it could be inferred that Amaris B asthenic clinic could book calendar for
residents of Tampines for the treatment of their skin disorders and pigmentations. This will
not only save the time but also the cost of skin surgery. With the increasing complexity of the
daily lives of the residents of Tampines, the Amaris B aesthetics clinic could come up with
the customized cosmetic surgery plans for them (Kwok & Yu, 2013). It will not only increase
their satisfaction level but also save their time in determined approach. However, proper
consultancy to the people at Tampines could help them to arrange the proper customized
cosmetic surgery plan (Ford, Bornstein & Pruitt, 2010).

Business plan for setting up Aesthetics Clinic 10
3.3 SWOT analysis of Company
The SWOT analysis of the Amaris B aesthetics clinic reflects the strength, weakness,
opportunity and threats in determined approach.
Strength
The Amaris B is accompanied with the high
advanced technologies which may attract
people in Tampines (Mullins, 2012).
Our Tampines Hub is associated with the
more than 258301 residents which is quite
high number.
This Our Tampines Hub will be complete
niche market for the Amaris B which would
indulge in providing treatment for skin
Laxity, wrinkles, moles, liver spots, excess
fat, and cellulite and skin disorder .
Weakness
The main weakness of the Amaris B is
related to its restricted number of its target
market.
Company may have to comply with the all
the applicable rules, regulation for running its
business effectively. The Amaris B also
needs to take approval from the ministry of
health department and also comply with the
licensing rules and regulations.
There will be high traits and penalties which
may result to increased penalties If company
fails to meet the current liabilities.
Opportunity
It is observed that people in Our Tampines
Hub will be more inclined towards grasping
cosmetic treatment services from the Amaris
B. It is analysed that people in Our Tampines
Hub will trust the Amaris B franchise due to
its parent company. It would be easy for the
company to customize the services and
products as per the client’s needs and demand
in market (Laakkonen, 2017).
Threats
It is observed that due to advanced
technology and online booking methods,
people in Our Tampines Hub, The Amaris B
may come up with the customized cosmetics
surgery packages. (Ward, 2016).

Business plan for setting up Aesthetics Clinic 11
4. Marketing plan formation
It is observed that marketing plan is the key success factors for the busienss success. It
is analysed that marketing plan of the Amaris B could be based on the cyber computing
system, questionnaire and online survey. It will attract high number of clients. It is considered
that marketing plan strategy of company would be related to organizing proper seminars for
the promotions of its cosmetic surgery packages (Jackson, 2017).
4.1 Pricing strategy for the Amaris B
It is observed that there are following pricing strategy which could be undertaken by
the Amaris B for providing treatment for the cosmetic surgery for scars, skin Laxity,
wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder.
Market lead pricing methods- This pricing strategy could be divided into two main parts.
Penetration pricing Skimming pricing strategy
This pricing strategy is followed when new
the Amaris B wants to penetrate the market
with its highly attractive cosmetic surgery
offers. Company could develop effective
cosmetic surgery packages to grasp potential
clients in Tampines Hub.
This pricing strategy is used by the company
having strong brand image. However, strong
brand image of its parent company will be
helpful for the Amaris B to run business
effectively.
Profit-Let pricing method
Competition based pricing model- This pricing strategy is used to compete with the rivals.
There is no rival in Tampines Hub.
Clients based pricing- This is the most imperative pricing strategy. It will allow company to
set cosmetic survey price as per the client’s needs and demand (Peters, Blohm & Leimeister,
2015).
Cost based pricing method
This strategy would be more beneficial for the Amaris B. It would allow management to sale
its cosmetic surgeries packages at the Break-even point to attract more clients.
Profit based pricing strategy

Business plan for setting up Aesthetics Clinic 12
It is observed that the Amaris B could set its entire cosmetic surgeries packages price for the
people in Tampines Hub. However, in the starting, company needs to set lower price by
having lower profit in its business (Hills, 2015).
4.2 Promotion activities provided by Franchisors
It is observed that in order to promote the Amaris B, management could follow proper
strategic programs such as organizing the seminars and use of banners in Tampines Hub.
However, with the use of cyber computing enterprises resources planning, it could promote
its business online through social media and other methods. The Amaris B could use its
existing brand image to promote its new franchise in market. Loyalty card and new
membership approach could also be more beneficial for promoting the cosmetic surgery
packages for clients.
5. Management design
This management design is divided into corporate and legal compliance of Amaris B.
5.1 Legal obligation of Amaris B
 It is separate legal entity in which at least 2 directors are required to appoint
and they could take all the decisions on the behalf of the company. In addition
to this, Amaris B would have legal existence in market.
 It is considered that the Amaris B needs to comply with the licensing and other
applicable rules before starting up aesthetics clinic.
 The Amaris B needs to comply with the corporate rules and regulations
independently.
 It has to identify the proprietary way of reporting income and keeping the
track of its financial information with its franchisor.
 The Amaris B needs to comply with the franchise rules and regulation
(Chesbrough & Rosenbloom, 2012).
 Franchisee cannot delegate the franchise without taking permission from the
franchisors.
 Before starting up new Amaris B, there is requirement to take the approval
from the ministry of health department.
 Amaris B will file consolidated annual report with its franchisors on yearly
basis after auditing of its
5.2 Personnel Requirements to run the franchise
 It is required to determine the personal stimulation in the work.
 Determination of the total cost required to run the franchise.
 The contribution and support from the franchisors and other bodies.
 The capital, physical and financial requirements.
 Determination of the fundamental busienss model of the busienss.
It is evaluated that the Personnel Requirements to run the franchise Amaris B would cost
around $ 7000. It would b 3 doctors, 2 receptionist and 1 admin staff.

Business plan for setting up Aesthetics Clinic 13
Staff Requirement
3 doctors 2000 Monthly salary $ 6,000.00
2 receptionist and 300 Monthly salary $ 600.00
1 admin staff 400 Monthly salary $ 400.00
After evaluating the information and determination of the fundamental need of Amaris B
could easily sets norms and regulations to run the busienss effectively. It will help company
to implement proper busienss functions and effective business plan (Titman, Known &
Martin, 2017).

Business plan for setting up Aesthetics Clinic 14
6. Financial analysis of company
This financial analysis helps in evaluating the financial performance of company. It also
helps in reducing the overall cost of capital and increasing the return on capital employed of
company.
6.1 Projection of the income statement of Amaris B Company for 3 years.
The main operating expenses of company would be
 Rental expenses= $ 9000*12= 108000
 Renovation cost= 7800
 Monthly utilities cost= 12*600= 7200
 Franchisee licensing fees= $ 15000
 Total operating expenses to run business effectively= $138000
 Doctors and employees expenses = $ 7000
The operating expenses of income statement cover this amount of expenses (Waxman, ed.,
2017).
6.1.1 The First year income statement of the Amaris B has been given below.

Business plan for setting up Aesthetics Clinic 15
Income statement of Aesthetics Clinic For the first year
Particular Jan Feb Mar Apr May Jun Jul
Net Revenue 0 510,000.00 517,650.00 525,414.75 533,295.97 541,295.41 549,414.84
Cost of Goods sold 0 306,000.00 310,590.00 315,248.85 319,977.58 324,777.25 329,648.91
Gross margin 0 204,000.00 207,060.00 210,165.90 213,318.39 216,518.16 219,765.94
Operating expenses (includes Loyalty and other chargses) 0 - - - -
Rental expenses 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Monthly Utility cost 600.00 600.00 600.00 600.00 600.00 600.00 600.00
Salary to doctors and other employees 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Licensing fees 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00
Renovation cost 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00
Total operating expenses 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00
Earning before interest, tax and depreciation -25,650.00 178,350.00 181,410.00 184,515.90 187,668.39 ### 194,115.94
Depreciation 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78
EBIT -27,177.78 176,822.22 179,882.22 182,988.12 186,140.61 189,340.39 192,588.16
- - - - -
Interest and other financial Income 500.00 500.00 507.50 515.11 522.84 530.68 538.64
Income before tax -27,677.78 176,322.22 179,374.72 182,473.01 185,617.77 188,809.70 192,049.52
Taxation (0%) 0 0 0 0 0 0 0
- - - - -
Net income for the year -27,677.78 176,322.22 179,374.72 182,473.01 185,617.77 188,809.70 192,049.52
0
Assumption for calcualtioning total revenu Number of patients Per customers charges
Cosmetic surgery 100.00 4,000.00 400,000.00
Routine check-up 50.00 1,000.00 50,000.00
Facial improvent services 50.00 1,200.00 60,000.00
Total income 2,066.67 510,000.00
6.1.1 The second year income statement of the Amaris B has been given below.
Income statement of Aesthetics Clinic For the first year
Particular Jan Feb Mar Apr May Jun Jul
Net Revenue 0 510,000.00 517,650.00 525,414.75 533,295.97 541,295.41 549,414.84
Cost of Goods sold 0 306,000.00 310,590.00 315,248.85 319,977.58 324,777.25 329,648.91
Gross margin 0 204,000.00 207,060.00 210,165.90 213,318.39 216,518.16 219,765.94
Operating expenses (includes Loyalty and other chargses) 0 - - - -
Rental expenses 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Monthly Utility cost 600.00 600.00 600.00 600.00 600.00 600.00 600.00
Salary to doctors and other employees 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00 7,000.00
Licensing fees 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00 1,250.00
Renovation cost 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00
Total operating expenses 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00 25,650.00
Earning before interest, tax and depreciation -25,650.00 178,350.00 181,410.00 184,515.90 187,668.39 190,868.16 194,115.94
Depreciation 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78 1,527.78
EBIT -27,177.78 176,822.22 179,882.22 182,988.12 186,140.61 189,340.39 192,588.16
- - - - -
Interest and other financial Income 500.00 500.00 507.50 515.11 522.84 530.68 538.64
Income before tax -27,677.78 176,322.22 179,374.72 182,473.01 185,617.77 188,809.70 192,049.52
Taxation (0%) 0 0 0 0 0 0 0
- - - - -
Net income for the year -27,677.78 176,322.22 179,374.72 182,473.01 185,617.77 188,809.70 192,049.52
0
Assumption for calcualtioning total revenu Number of patients Per customers charges
Cosmetic surgery 100.00 4,000.00 400,000.00
Routine check-up 50.00 1,000.00 50,000.00
Facial improvent services 50.00 1,200.00 60,000.00
Total income 2,066.67 510,000.00

Business plan for setting up Aesthetics Clinic 16
6.1.1 The third year income statement of the Amaris B has been given below.

Business plan for setting up Aesthetics Clinic 17
6.1.3 Balance sheet statement of Aesthetics Clinic for upcoming three years
(Please see the appendix)

Business plan for setting up Aesthetics Clinic 18
6.1.4 Cash flow statement of Aesthetics Clinic for the first year
6.1.3 Cash flow statement of Aesthetics Clinic for the second year

Business plan for setting up Aesthetics Clinic 19
6.1.3 Cash flow statement of Aesthetics Clinic for the third year
Assumptions
Assumption for calculating total revenue
Number of
patients
Per customers
charges
Total
charges
Cosmetic surgery 100 4000 400000
Routine check-up 50 1000 50000
Facial improving services 50 1200 60000
Assumption-2nd The cost of goods sold would be 60% each month)

Business plan for setting up Aesthetics Clinic 20
6.2 Graphical presentation of the Break-even point of the company
It is observed that Break-even point of the Amaris B is the point at which company
would have no profit and no loss (Harrington, Smith & Bauer, 2017).
The break-even point of Amaris B would be total sales of $ 5, 00, 00 and 250 patients.
It reflects that when Amaris B will provide its services to 250 patients in a year then it
will reach the break-even point in year.
Computation of Break-even Point analysis
Particular Amount Number of Patients
Break Even point 500000 250
150 200 250 300 450
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
Break- Even point
Units Total sales Total cost
This graph reflects that company would achieve the break event point when it would
provide its services to 250 patients. It is considered that if Amaris B aesthetics clinic
increases its cosmetic improvement services beyond 250 then it will increase the its profit as
well.
7. Investment proposal formulation
7.1 Source of funding
The Amaris B could use following sources of funding such as debt and equity funding.
However, due to the high profitability, company could raise use debt funding (Maree, 2017).

Business plan for setting up Aesthetics Clinic 21
 Funding requirement= $ 15, 00,000
 Debt funding= $9, 00,000
 Equity funding= $ 6, 00,000

Business plan for setting up Aesthetics Clinic 22
7.2 Expected financial return of company
Expected financial return
Years Cash flow P.V. Factors P.V. amount
0 -$15,00,000.00 1.000 -$15,00,000.00
1 $8,00,000.00 0.933 $7,46,491.49
2 $8,00,000.00 0.871 $6,96,561.93
3 $8,00,000.00 0.812 $6,49,971.94
Net present value $2,20,575.62
IRR 19.21%
Computation of the weighted average cost of capital
Computation of the weighted average cost of capital of Amaris B
This weighted average cost of capital of the Amaris B is done to analyse the capital
amount of investment and return available on the capital investment.
WACC
Capital Amount
($)
Cost of
capital
% of
portion WACC
Equity (Angle
investors) 900000 9.28% 0.6 5.6%
Debt 600000 4.00% 0.4 1.6%
Total capital 1500000 WACC 7.2%
Computation of the weighted average cost of capital

Business plan for setting up Aesthetics Clinic 23
WACC E/V * Re + D/V * Rd * (1 - Tc)
(0.64)(9.28%) + (0.4)(1.6%)(1-
15%)
WERE + WDRD (1-T)
(0.64)(9.28%) + (0.4)(1.6%)(1-
15%)
WACC computed 7.3%
Computation of the net present value and IRR of company
Net present value- It is the differences between present value of cash inflow and present
value of cash outflow. In this case, Company has $ 2, 20,575.62 net present the value of
company.
IRR= It is the minimum required rate of return which company needs to earn. However,
company has 19.21% internal rate of return from its business (Uslu, 2017).
Expected financial return
Years Cash flow P.V. Factors P.V. amount
0 -$15,00,000.00 1.000 -$15,00,000.00
1 $8,00,000.00 0.933 $7,46,491.49
2 $8,00,000.00 0.871 $6,96,561.93
3 $8,00,000.00 0.812 $6,49,971.94
Net present value $2,20,575.62
IRR 19.21%
7.3 Total capital required from the angle investors and proportion of the investment
Total capital required from the angle investors and proportion of the investment
It is observed that total equity shareholders’ investment which company offer to angle
investors would be 40%. However, it will be cost around 3.2% overall all. Nonetheless,
company could decrease the financial leverage with this angel investor’s investment (Croce,
Tenca & Ughetto, 2017).

Business plan for setting up Aesthetics Clinic 24
8. Critical risk analysis
This risk analysis is implemented to determine whether company would be having
positive business or not from its business functioning (Hoyle, 2017).
8.1 Critical Risk of setting up new business at Our Tampines Hub
It is observed that the services offered by the Amaris B will be restricted to only the
15000 persons who reside at Our Tampines Hub. Therefore, potential risk would be related to
acceptance of the services offered by Amaris B. In addition to this, other potential risk would
be related to cost factors. If the cosmetic surgery is not cost effective and not up to the mark
then it will result to non-acceptance of the serviced offered by Amaris B offered in market
(Hoyle, 2017).
8.2 Alternative Courses of Action
The main alternative course of action of the Amaris B would be use cyber computing
enterprises resources planning in the business. It will help company to grasp potential clients
through its online dashboard mechanism (Shen, Yan & Tzeng, (2017)

Business plan for setting up Aesthetics Clinic 25
9. Conclusion
Now in the end, it could be inferred that the Amaris B should provide best possible offers
to clients at Our Tampines Hub. It will help people at Our Tampines Hub to grasp attractive
offers to improve their appearance. It will surely add value to the residents Our Tampines
Hub as they would save time and cost if they could directly take cosmetics services from
Amaris B.

Business plan for setting up Aesthetics Clinic 26
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Business plan for setting up Aesthetics Clinic 29
Appendix
Balance Sheet
The Balance Sheet shows the financial position of the business as at a point in time
Years 2018 2019 2020
Assets
Current Assets $ 100,000.00 $ 100,000.00 $ 100,000.00
Cash on hand $ 20,000.00 $ 20,000.00 $ 20,000.00
Total Current Assets $ 120,000.00 $ 120,000.00 $ 120,000.00
Fixed Assets
Computer $ 10,000.00 $ 15,000.00 $ 12,000.00
Store Fit Out $ 25,000.00 $ 50,000.00 $ 30,000.00
Office Equipment $ 30,000.00 $ 30,000.00 $ 30,000.00
Buildings & improvements $ 120,000.00 $ 110,000.00 $ 100,000.00
Furniture & Fixtures $ 25,000.00 $ 25,000.00 $ 25,000.00
Etc.
Total Fixed Assets $ 210,000.00 $ 230,000.00 $ 197,000.00
Total Assets $ 330,000.00 $ 350,000.00 $ 317,000.00
Liabilities
Current Liabilities
Creditors $ 500,000.00 $ 500,000.00 $ 500,000.00
Total Current Liabilities $ 500,000.00 $ 500,000.00 $ 500,000.00
Long Term Liabilities $ 85,000.00 $ 65,000.00 $ 27,000.00
Equipment Finance $ 25,000.00 $ 65,000.00 $ 70,000.00
Total Long Term Liabilities $ 20,000.00 $ 20,000.00 $ 20,000.00
Total Liabilities $ 130,000.00 $ 150,000.00 $ 117,000.00
Shareholders Funds ( Equity)
Owners Funds $ 100,000.00 $ 100,000.00 $ 100,000.00
Retained Earnings $ 50,000.00 $ 50,000.00 $ 50,000.00

Business plan for setting up Aesthetics Clinic 30