Aesthetics Clinic Business Plan for Tampines Hub Residents

This presentation outlines a business plan for Aesthetics Clinic, a cosmetic improvement clinic for residents of Tampines Hub. It includes research and analysis, marketing plan formulation, management design, financial analysis, critical risk analysis, ratio analysis, and recommendations.

Aesthetics Clinic
at Our Tampines Hub for residents of
Tampines

TABLE OF CONTENT
1.Introduction
2. Research and analysis
3. Marketing plan formulation
4. Management design
5. Financial analysis of company
6. Expected financial return of company and
Break-Even point Graph
7. Critical risk analysis
8. Ratio analysis
9. Analysis of the project
10.Recommendation
11.Conclusion
12.References

INTRODUCTION
This presentation has reflected proper busienss
plan has been formulated.
The new busienss name would be Aesthetics
Clinic
It is opened to add value to cosmetic
improvement of residents resides at our
Tampines Hub.
The marketing, operation and financial
requirement of company has been taken into
consideration.

RESEARCH AND ANALYSIS
• Target market- Residents of Tampines to
grasp attractive offers.
• Market Size- 258310 residents of Tampines
• Key strategy- Use of cyber computing
system in its busienss.
• Marketing plan- organizing proper
seminars for the promotions of its tours
and travel packages (Kwok & Yu, 2013).
•

MARKETING PLAN FORMULATION
 Pricing strategy for the Aesthetics Clinic Penetrating and
profit based pricing strategy.
 Promotion activities- Use of cyber systems and conduct
seminars in Tampines Hub.

MANAGEMENT DESIGN
 Legal obligation-the proprietary way of reporting income and
keeping the track of its financial information.
 Personal requirement-Determination of the total cost required.
 Capital, physical and financial requirements (Mason & Stark,
(2014).

FINANCIAL ANALYSIS OF COMPANY
 Operating expenses
 The main operating expenses of company would be
 Rental expenses= $ 90000*12= 108000
 Renovation cost= 7800
 Monthly utilities cost= 12*600= 7200
 Franchisee licensing fees= $ 15000
 Total operating expenses to run business effectively= $138000
(Kwok, & Yu, 2013).
Investment required
Funding requirement= $ 15, 00,000
Debt funding= $9, 00,000
Equity funding= $ 6, 00,000

Expected financial return of company and Break-Even point Graph
Expected financial return
Years Cash flow P.V. Factors P.V. amount
0 -$15,00,000.00 $1.00 -$15,00,000.00
1 $9,00,000.00 $0.91 $8,18,181.82
2 $9,00,000.00 $0.83 $7,43,801.65
3 $9,00,000.00 $0.75 $6,76,183.32
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
Total sales
Total cost

CRITICAL RISK ANALYSIS
• There is various side effect of cosmetic surgery.
• Other potential risk would be related to cost factors,
changing environmental condition and purchasing power of
clients.
• Alternative Courses of Action-Use cyber computing
enterprises resources planning in the business (Ford,
Bornstein & Pruitt, 2010).

RATIO ANALYSIS
RATIO
Formula
2016
2015
Current ratio Current assets / Current liabilities 1.435 2.886
Acid Test Ratio Current assets – (stock + prepaid expenses) / Current liabilities 1.332 2.803
Stock turnover ratio Cost of goods sold / Average Inventory (69.40) (89.50)
Gross profit ratio Gross profit / net sales X 100 62.19% 61.49%
Net profit ratio Net profit / net sales X 100 12.02% 9.58%
Return on capital employed Net profit / capital employed X100 3.81% 2.69%
Return on total assets Net profit after tax / total assets X 100 3.54% 2.51%
Capital gearing ratio Variable cost bearing capital / fixed cost bearing capital 2.424 2.185
Administrative expenses ratio Interest expenses / Operating profit X 100 -20.67% -28.04%

ANALYSIS OF THE PROJECT
• Positive NPV of $ 333218
• IRR= 23.92%
• This project will give better
outcome to Aesthetics Clinic
and people in Tampines Hub.
• This project will give better
outcomes to investors, people
in Tampines Hub (Hopp &
Greene, 2017).
Expected financial return
Years Cash flow P.V. Factors P.V. amount
0 -$15,00,000.00 $1.00 -$15,00,000.00
1 $9,00,000.00 $0.91 $8,18,181.82
2 $9,00,000.00 $0.83 $7,43,801.65
3 $9,00,000.00 $0.75 $6,76,183.32
Net present value $3,33,218.45
IRR 23.92%

RECOMMENDATION
• Use of advanced technologies and
seminars for promotion of Aesthetics
Clinic .
• It should offer customized tours and
travel offers to the people at Tampines
Hub.

CONCLUSION
• Aesthetics Clinic needs to focus on only all
the residents in Tampines Hub.
• Company needs to adopt proper busienss
model based on the needs and demand of
the people in Tampines Hub.
• Use of advanced technologies and
attractive offers would be the main success
factors.

REFERENCES
Hopp, C. & Greene, F.J., (2017). In Pursuit of Time: Business Plan Sequencing, Duration
and Intraentrainment Effects on New Venture Viability. Journal of Management Studies.
Mason, C. & Stark, M., (2014). What do investors look for in a business plan? A
comparison of the investment criteria of bankers, venture capitalists and business
angels. International small business journal, 22(3), pp.227-248.
Kwok, L. & Yu, B., (2013). Spreading social media messages on Facebook: An analysis of
restaurant business-to-consumer communications. Cornell Hospitality
Quarterly, 54(1), pp.84-94.
Ford, B.R., Bornstein, J.M. & Pruitt, P.T., (2010). The Ernst & Young business plan
guide. John Wiley & Sons.
Croce, A., Tenca, F. & Ughetto, E., (2017). How business angel groups work:
rejection criteria in investment evaluation. International Small Business
Journal, 35(4), pp.405-426.
Shen, K.Y., Yan, M.R. & Tzeng, G.H., (2017). Exploring R&D Influences on Financial
Performance for Business Sustainability Considering Dual Profitability
Objectives. Sustainability, 9(11), p.1964.