Business Plan of ABC Clinic based in Liverpool

ABC Clinic is planning to invest within Ethiopia and the services offered by the clinic in Addis Ababa will include inpatient and outpatient care, anatomical pathology services and clinical laboratory services.

Running head: BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Business Plan of ABC clinic based in Liverpool
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1BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Executive Summary
ABC Clinic is planning to invest within Ethiopia and the services offered by the clinic in Addis
Ababa will include inpatient and outpatient care, anatomical pathology services and clinical
laboratory services. ABC Clinic will focus on offering quality patient services along with
addressing patient expectations in ensuring their health improvement when they visits the new
medical clinic. The medical facility offered by ABC Clinic will be well positioned as well as
viable along with having good parking space with exceptional security.

2BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Table of Contents
Service Description..........................................................................................................................3
Industry Analysis.............................................................................................................................3
Patient or Consumer Analysis.........................................................................................................4
Competitive Analysis.......................................................................................................................5
Marketing Plan.................................................................................................................................5
Operations Plan................................................................................................................................6
Management Team..........................................................................................................................6
Financial Plan and Projections.........................................................................................................8

3BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Service Description
ABC Clinic is a small clinic that is based in Liverpool within UK and it is planning to
invest within Ethiopia specifically in Addis Ababa. The organization is deciding to offer its
services through opening a high classic hospital within Addis Ababa after investing around $ 1
million. The services those will be offered by the clinic in Addis Ababa will include inpatient
and outpatient care, anatomical pathology services, clinical laboratory services, diagnostic X-ray
services, operating room services, personal injury case management and occupational, physical
and speech therapy. These services will be offered by the highly trained professionals employed
within the ABC Clinic.
Industry Analysis
For analyzing the feasibility of the new business of ABC Clinic within healthcare industry of
Ethiopia, PESTEL analysis of the region is conducted below:
 Political- ABC Clinic will attain benefits from the lower taxation policies within Ethiopia
specifically in Addis Ababa. This can facilitate in attaining high profits along with
increasing spending within research and development. Strict health and safety norms are
followed in the nation against which the clinic will develop its medical standards and
policies.
 Economic- There exist downward pressure on the consumer spending considering which
disposable income of consumers remain stable and increasing inequality within the
society might impact consumer spending behavior. The clinic can attain easy liquidity
within the market for ensuing further business expansion within the region.

4BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
 Social- Social media word-of-mouth on clinical services is impacting the consumers’
opinion on the advanced medical services offered within Ethiopia specifically in Addis
Ababa. Moreover, with rising liberalization, consumers attitude towards health and safety
are getting lax because of which the societal norms and attitudes will be analyzed by
ABC Clinic in better serving consumers.
 Technological- There exist technology transfer and licensing issues in Ethiopia
specifically in Addis Ababa as there is absence of strong technology transfer culture.
Considering same, the medical organizations in the region are quire reactant regarding
licensing or transferring technologies for fear of maintaining competitors out of
collaborators. Latest technology based innovations is observed by the healthcare industry
that can offer better insight to competitors strategies based on which ABC Clinic will
implement its unique value proposition.
Patient or Consumer Analysis
The target consumers or patients for ABC Clinic will be the residents of Ethiopia
specifically in Addis Ababa where the medical clinic will be located, expectant mothers, inured
sports women or men, Health Management Organizations, schools along with corporate
companies like insurance organizations, banks, and manufacturing organizations along with oil
and gas organizations. The clinic will make sure that it targets both the consumer groups those
do not have the health insurance cover along with the ones those have such cover. Moreover, the
target consumers will also include a wide range of consumers through abiding by the rules and
regulations governing the hospital along with health care industry in Ethiopia.

5BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Competitive Analysis
From conducting the market analysis of Ethiopia it is observed that the medical clinics
compete against other healthcare service provides including homecare service providers, health
centres along with standard hospitals. Threat of high competition might be faced by the new
clinic because of existence of bigger and established medical clinic or hospitals in the same
location where ABC Clinic will operate its business. To attain competitive advantages within the
healthcare industry, ABC Clinic will focus on offering quality patient services along with
addressing patient expectations in ensuring their health improvement when they visits the new
medical clinic. The medical facility offered by ABC Clinic will be well positioned as well as
viable along with having good parking space with exceptional security. The employees will be
well groomed within all aspects of healthcare services. Moreover, the newly introduced services
by ABC Clinic will be offered by highly trained professionals those are skilled at offering
patients with good value for money.
Marketing Plan
4 P’s of marketing plan for ABC Clinic is indicated below:
 Product: The services those will be offered by the clinic in Addis Ababa will include
inpatient and outpatient care, anatomical pathology services, clinical laboratory services,
diagnostic X-ray services, operating room services, personal injury case management and
occupational, physical and speech therapy.
 Price: The pricing strategy for ABC Clinic will follow hourly billing and per visits
billing method. It will be simple and preferable by medical clinic along with healthcare

6BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
service providers for billing personal injury case management services per hour against a
fixed price.
 Place: ABC Clinic is a small clinic that is based in Liverpool within UK and it is
planning to invest within Ethiopia specifically in Addis Ababa.
 Promotion: ABC Clinic medical services will be promoted through introducing the
clinic in the region by sending introductory letters to residents, business owners and
corporate companies. Word-of-mouth, direct marketing and social media will be
employed in promoting medical clinic practice
Operations Plan
The operations model of ABC Clinic will include a team of highly skilled healthcare
professionals those will be responsible for managing all the job positions in the medical clinic. In
the selected location of Ethiopia specifically in Addis Ababa, the business model will be
operating on 24 hours daily and 7y days in a week. The operations of this new clinic will also
include multiple payment options, suitably equipped medical call center along with exceptional
consumer service culture that can ensure the strength of this business model. The operations of
ABC Clinic will also have a standard call center that will be operated by trained health workers.
The employees of the clinic will be well trained for operating within the framework of the
clinic’s corporate culture so that the needs of the patients are addressed. The clinic will
implement CRM software that will facilitate in managing effective relationship with consumers
along with offering them advanced treatment facilities.
Management Team
The management team of ABC Clinic will include the following personnel:

7BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
 Chief medical director will be responsible for offering business direction along with
developing and communicating the companies’ vision, mission and strategic objectives
for ensuring business success.
 Doctors will be responsible for offering professional medical services to the patients
along with dealing with medical emergencies.
 Pharmacists will have the responsibility of managing activities in dispensary store and
will be accountable for selling, ordering and controlling medicines along with stock.
 Nurses and their supporting personnel will be responsible for dealing with personal injury
case management, assisting doctors in treating patients along with offering necessary
medication management services.
 Information technologists
 Human resource or admin manager will be responsible for managing recruiting and
managing employees
 Sales and marketing personnel will be responsible for conduct external research for
retaining existing consumers and attracting new ones along with motivating sales team in
attaining high sales.
 Cashier and Accountants will be responsible for developing financial reports, budgets and
financial statements of the new clinic along with ensuring better cash management
 Customer case executives will be responsible for maintaining interaction with consumers
along with addressing all their queries
 Cleaners will be responsible for cleaning the medical clinic facilities along with ensuring
necessary availability of toiletries and supplies.

8BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Financial Plan and Projections
The financial projections for the new ABC Clinic will include the profit and loss, balance
sheet, cash flow, break even analysis and start-up capital estimations over the span of five years
hose are indicated below:
Start-up Expenses for ABC Clinic
Sources of Capital
Owners' and Other Investments $40,000
Bank Loans $5,000
Other Loans $5,000
Total Source of Funds $33,000
Startup Expenses
Bldgs / Real Estate $5,000
Leasehold Improvements $2,000
Capital Equipment $4,000
Location / Admin Expenses $4,000
Opening Inventory $0
Advertising / Promo Expenses $1,000
Other Expenses $1,000
Total Startup Expenses $100,000
Summary Statement
Cash Flow Projection over Five Years

9BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Operating activities
Net income $100,000 $120,000 $130,000 $140,000 $150,000 $640,000
Depreciation $27,900 $28,458 $33,072 $33,708 $34,344 $157,482
Accounts receivable $0 $0 $0 $0 $0 $0
Inventories $0 $0 $0 $0 $0 $0
Accounts payable $0 $0 $0 $0 $0 $0
Amortization $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Other liabilities $25,000 $25,000 $25,000 $25,000 $25,000 $125,000
Other operating cash flow items $0 $0 $0 $0 $0 $0
Total operating activities $157,900 $178,458 $193,072 $203,708 $214,344 $947,482
$0
Investing activities $0
Capital expenditures $230,000 $0 $0 $0 $0 $230,000
Acquisition of business $15,000 $15,000 $15,000 $15,000 $15,000 $75,000
Sale of fixed assets $10,000 $10,000 $10,000 $10,000 $10,000 $50,000
Other investing cash flow items $0 $0 $0 $0 $0 $0
Total investing activities $255,000 $25,000 $25,000 $25,000 $25,000 $355,000
Financing activities
Long-term debt/financing $123,000 $6,720 $7,526 $8,430 $9,441 $155,117
Preferred stock $0 $0 $0 $0 $0 $0
Total cash dividends paid $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Common stock $0 $0 $0 $0 $0 $0
Other financing cash flow items $5,000 $5,000 $5,000 $5,000 $5,000 $25,000
Total financing activities $133,000 $16,720 $17,526 $18,430 $19,441 $205,117
Cumulative cash flow $545,900 $220,178 $235,598 $247,138 $258,785 $1,507,599
Beginning cash balance $0 $545,900 $766,078 $1,001,676 $1,248,814
Ending cash balance $545,900 $766,078 $1,001,676 $1,248,814 $1,507,599
Profit and Loss Projection over Five Years

10BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Year 1 Year 2 Year 3 Year 4 Year 5
Gross revenue $100,000 $120,000 $130,000 $137,800 $148,824
Cost of goods sold $11,400 $11,628 $12,093 $12,819 $13,844
Gross margin $88,600 $108,372 $117,907 $124,981 $134,980
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue $88,600 $108,372 $117,907 $124,981 $134,980
Operating expenses
Sales and marketing $6,000 $6,120 $6,365 $6,747 $7,286
Payroll and payroll taxes $50,000 $51,000 $53,040 $56,222 $60,720
Depreciation $27,900 $28,458 $33,072 $33,708 $34,344
Maintenance, repair, and overhaul $1,340 $1,367 $1,394 $1,420 $1,447
Total operating expenses $85,240 $86,945 $93,870 $98,097 $103,798
Operating income $3,360 $21,427 $24,036 $26,884 $31,182
Interest expense on long-term debt $6,000 $6,720 $7,526 $8,430 $9,441
Operating income before other items -$2,640 $14,707 $16,510 $18,454 $21,741
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes -$2,640 $14,707 $16,510 $18,454 $21,741
Taxes on income 0 $0 $4,412 $4,953 $5,536 $6,522
Net income (loss) -$2,640 $10,295 $11,557 $12,918 $15,219
Balance Sheet Projection over Five Years

11BUSINESS PLAN OF ABC CLINIC BASED IN LIVERPOOL
Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Cash and short-term investments $0 $4,300 $766,078 $1,001,676 $1,248,814 $1,507,599
Accounts receivable $0 $0 $0 $0 $0 $0
Total inventory $0 $0 $0 $0 $0 $0
Prepaid expenses $0 $0 $0 $0 $0 $0
Deferred income tax $0 $0 $0 $0 $0 $0
Other current assets $0 $0 $0 $0 $0 $0
Total current assets $0 $4,300 $766,078 $1,001,676 $1,248,814 $1,507,599
Buildings $50,500 $70,000 $70,000 $70,000 $70,000 $70,000
Land $0 $0 $0 $0 $0 $0
Capital improvements $22,000 $22,000 $22,000 $22,000 $22,000 $22,000
Machinery and equipment $67,000 $67,000 $67,000 $67,000 $67,000 $67,000
Less: Accumulated depreciation expense $0 $27,900 $56,358 $89,430 $123,138 $157,482
Net property/equipment $139,500 $131,100 $102,642 $69,570 $35,862 $1,518
Goodwill $0 $0 $0 $0 $0 $0
Deferred income tax $0 $0 $0 $0 $0 $0
Long-term investments $0 $0 $0 $0 $0 $0
Deposits $0 $0 $0 $0 $0 $0
Other long-term assets $0 $0 $0 $0 $0 $0
Total assets $139,500 $135,400 $868,720 $1,071,246 $1,284,676 $1,509,117
Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Accounts payable $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Accrued expenses $0 $0 $0 $0 $0 $0
Notes payable/short-term debt $0 $0 $0 $0 $0 $0
Capital leases $0 $0 $0 $0 $0 $0
Other current liabilities $0 $0 $0 $0 $0 $0
Total current liabilities $65,000 $65,000 $65,000 $65,000 $65,000 $65,000
Long-term debt from loan payment calculator $10,000 $56,000 $62,720 $70,246 $78,676 $88,117
Other long-term debt $0 $0 $0 $0 $0 $0
Total debt $75,000 $121,000 $127,720 $135,246 $143,676 $153,117
Other liabilities $0 $0 $0 $0 $0 $0
Total liabilities $75,000 $121,000 $127,720 $135,246 $143,676 $153,117
Equity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5
Owner's equity (common) $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Paid-in capital $0 $0 $0 $0 $0 $0
Preferred equity $0 $0 $0 $0 $0 $0
Retained earnings $0 $0 $0 $0 $0 $0
Total equity $50,000 $50,000 $50,000 $50,000 $50,000 $50,000
Total liabilities and equity $125,000 $171,000 $177,720 $185,246 $193,676 $203,117