Business Plan and Financial Projections for a New Counselling Centre

The assignment is about the business plan of a counselling centre called 'ABC Counselling Centre' in Nantwich, UK. The centre aims to provide home-based counselling services to clients, and will be funded by personal savings (£150,000) and a bank loan. The estimated total fixed costs are £310,600, with a net cash flow of £31,400 in the first year. The business plan outlines the sources of finance, plans for obtaining resources (staff, promotion, business services), and assumptions about the pricing and gross profit per hour of counselling services. The plan also includes a schedule of activities and Gantt chart to manage the project timeline. Finally, the assignment discusses the type of management information system needed to control the business.

GROWTH AND SUSTAINABLE
BUSINESS PLAN

TABLE OF CONTENTS
BUSINESS GROWTH PLAN, OUTLINE AND STRUCTURE...................................................1
PROPOSED FUTURE BUSINESS.................................................................................................1
CUSTOMERS..................................................................................................................................2
COMPETITOR................................................................................................................................2
SKILL ANALYSIS.........................................................................................................................3
RESOURCED REQUIRED.............................................................................................................4
FINANCIAL PROJECTIONS.........................................................................................................4
LIST OF ASSETS REQUIRED FOR THE BUSINESS.................................................................6
ASSUMPTIONS FOR THE BUSINESS........................................................................................6
SOURCE OF FINANCE.................................................................................................................6
PLANS FOR OBTAINING RESOURCES.....................................................................................7
TYPE OF ORGANIZATION AND MANAGEMENT INFORMATION SYSTEM NEEDED
TO CONTROL BUSINESS............................................................................................................9
VISION OF BUSINESS IDEA.......................................................................................................9
REFERENCES..............................................................................................................................10

INDEX OF TABLES
Table 1 Schedule of activities..........................................................................................................7
Table 2 Gantt chart..........................................................................................................................8

BUSINESS GROWTH PLAN, OUTLINE AND STRUCTURE
Health and social sector has created several business opportunities for the entrepreneurs
and doctors. Due to presence of highly sensitive social and biological factors in the environment
several types of health issues are emerging among the people. Mental and psychological
disorders are running their personal as well as professional life (Muller, Bezuidenhout and
Jooste, 2006). Taking that into consideration, the following business development proposal has
been developed. The idea is to open a mental counselling centre where psychological help will
be given to the people who are suffering from these kinds of disorders. The counselling services
will strengthen the self respect and self esteem of these people within the society.
The structure and growth of the new business can be reflected from the above figure. The
stages of growth include creativity, direction, delegation and coordination. These stages are
critical to the success of the new business. Innovation and creativity is needed in order to stand
out from the competition. There is a need of right direction that is requirement of appropriate
leadership. The delegation of duties and responsibilities is to be made in good manner. Further
coordination is required between all the business activities in order to avoid mistakes.
PROPOSED FUTURE BUSINESS
Health care sector is full of opportunities. In accordance with the given context, a new
service is added to the existing services as being offered by the health and social care firm. The
new service which is introduced in the given sector will be called by the name of “ABC
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counseling center”. This center will provide services to the patients who are suffering from the
issues which are related to mental health. In addition to this, the counselor will also give
emotional support to the people who are being abused by their own family members (Galbreath,
2006). This service is unique and innovative. This is because, there is no such type of services
found in Nantwich town of United Kingdom. Furthermore, by launching the given type of
services, significant support to the individuals can be provided who are mentally ill as well as
emotionally exhausted due to domestic violence. For the purpose to protect the new business
idea, intellectual property right such as patent will be used. Through this way, restriction can be
imposed by the firm upon other individuals or firms who may use the idea of such type of
services.
CUSTOMERS
The target customers for “ABC counseling center” will be buyers of all ages who are
living in Nantwich town such as young, old, adult and children etc. In this context, it is assessed
that the people who are living in Nantwich town possess high income but instead of presence of
given aspect, they require emotional support from the people. However, this can be gained by
them through “ABC counseling center”. Furthermore, it is the business to customer services
(B2C) as here; services as being given by the organization will be directly deliver to the
respective customers. Thus, it can be said that the people who are mentally ill or being abused by
the family members will be considered as the end users of “ABC counseling center”. This
service will be given by firm at the home of buyers only (Muller, Bezuidenhout and Jooste,
2006). So, it can be regarded as USP (Unique Selling Preposition) of new services. This service
will meet the emotional support related needs of buyers who are living in Nantwich town. With
an aim to position this new service in the target market, the uniqueness of “ABC counseling
center” will be explored among respective buyers in an effective way.
COMPETITOR
All the counseling centers which provide emotional support to the people will be
considered as the competitor for new services such as “ABC counseling center”. The list of
competitors consists of Nantwich counselling, Jill Whittingham counselling services and the
Nantwich therapy center etc. These are the famous institutes which operate in the Nantwich town
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and these organizations cover the majority of market share too. Thus, it is right to say that “ABC
counseling center” will face tough competition from the given organizations.
However, there is something different in “ABC counseling center” which will lead to
attract large number of buyers towards corporation. In accordance with the given context, it is
identified that all given competitors of new services do not provide counseling services at the
home of respective patients (Ring, 2008). Thus, by using this unique element of services, firm
can attract its targeted customers. Thereby, it can achieve profits within a year of establishment.
Overall, it can be said that it is beneficial or the buyers with regard to use the services of “ABC
counseling center” instead of its competitors.
SKILL ANALYSIS
There are different types of skills identified that me and my team mates must have with
an aim to develop and take the given new business idea forward. Detailed explanation of the
same is depicted as below: Communication skill: Being in the position of counselor, I will require good
communication skills. This is because, with the help of given skills, I can be able to direct
my efforts with regard to understand the needs and demand of my patients in an
appropriate manner. By gaining this information, I can give effective suggestions to my
patients. Interpersonal skill: This skill is needed with an aim to develop an effectual relationship
with the patients who will use the services of firm. With the help of given skill, best
quality of services can be delivered by me and my team mates to the patients who require
emotional and physical support.
 Problem solving skill: Main work of counselor is to resolve the problem which is being
faced by buyers. This work can be effectively done by me and my team mates if we
possess good problem solving skill.
Among these given skill, I found myself effective in communication and interpersonal
skill. However, I still believe that I do not possess good problem solving skill. Thus, I require
improvement in the given skill. I can improve this skill by attending training and development
programs which is being organized within country.
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RESOURCED REQUIRED
FINANCIAL PROJECTIONS
Profit & Loss Account
Particulars 1 year (in £) 2 year (£) 3year ( in £)
Income
Sales 966000 1110900 1277535
Expenditure
Materials 289800 318780 350658
Stock 96600 106260 116886
Gross Profit = Sales –Variable Costs 579600 685860 809991
Salary 240000 264000 290400
Rent and rates 48000 52800 58080
Electricity, gas charges 12000 13200 14520
Telephone expenses 6000 6600 7260
Maintenance charges 150000 165000 181500
Insurance 12000 13200 14520
Stationary 1200 1320 1452
Marketing & promotion 45000 49500 54450
Travelling expenses 24000 26400 29040
Legal registration 36000 39600 43560
Bank expenses 3000 3300 3630
Tax 480 10188 20074.44
Total Expenditure 577680 645108 718486.4
Net profit/loss 1920 40752 91504.56
Cash Flow Forecast
Particular 1 2 3 4
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Income
Opening cash 0 31400 2780
0
24200
Sales 70000 70000 7000
0
70000
Capital 30000
0
0 0 0
Total inflow cash 37000
0
101400 9780
0
94200
Expenses
Raw materials (V.C) 21000 21000 2100
0
21000
Stock (V.C) 7000 7000 7000 7000
Total Variable Cots 28000 28000 2800
0
28000
Employee wages (F.C) 20000 20000 2000
0
20000
Rent/rates on business
premises(V.C)
4000 4000 4000 4000
Gas, electricity, water
(V.C)
1000 1000 1000 1000
Telephone (V.C) 500 500 500 500
Property and equipment
maintenance (V.C)
15000
0
0 0 0
Insurances (V.C) 12000 0 0 0
Postage and stationery
(V.C)
100 100 100 100
Publicity and marketing 5000 5000 5000 5000
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(V.C)
Travelling and motor
expenses (V.C)
2000 2000 2000 2000
Professional fees (V.C) 3000 3000 3000 3000
Capital expenditure
(V.C)
10000
0
0 0 0
Bank charges (V.C) 3000 0 0 0
Loans/HP payments
(V.C)
10000 10000 1000
0
10000
Total Fixed Costs 31060
0
45600 4560
0
45600
Total Expenses 33860
0
73600 7360
0
73600
Net cash flow 31400 27800 2420
0
20600
LIST OF ASSETS REQUIRED FOR THE BUSINESS
 Capital – The new business will be funded by the amount of 300000 £. Fifty percent of
the capital will arranged through personal savings and rest fifty percent is arranged
through a bank loan.
 Books for counselling – The counselling center will keep some medical books which
are to be used in treatment of the patients.
ASSUMPTIONS FOR THE BUSINESS
 Price per hour of counselling that will be charged is £40
 Gross profit per hour assumed is £24
SOURCE OF FINANCE
Following source of finance has been selected for new business:
 Personal savings - It is a portion of income which has been derived from other sources.
This source is appropriate because it does not involve any legal obligations and interests.
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However there is a greater risk because the entire savings will be poured into a single
venture (Barron, 2013).
 Bank Loan – These days, loans are available very easily for the entrepreneurs. Banks can
provide loans up to 25 year or even more in some cases. The rate of interest may differ
from different banks. This business is of large size, hence it will be appropriate to use
banks for the purpose of loan.
PLANS FOR OBTAINING RESOURCES
 Staff – Employees for the new business will be recruited on the basis of required
qualification and skills. The staff must be competent enough to deal with the complexities
of the new venture.
 Promotion - The new venture is a customer oriented business. It highly depends upon
word mouth publicity. However for promotion both traditional as well as modern
methods of marketing will be followed. Leaflets and templates will be distributed in order
to create local awareness (Muller, Bezuidenhout and Jooste, 2006). Social media
marketing will be used which is the latest sensation in the market.
 Business service – The center will provide services on all working days from 9: A.M. to
5: P.M. On special requests, home assistance can also be given.
 Keys to success – The key to success are factors like service quality, growth potential,
marketing, professional service etc. Innovation will also add value to the success.
Table 1 Schedule of activities
Task Activities Weeks
1 Carrying out Market survey 3
2 Business plan development 5
3 Meeting financial requirement 2
4 Development of infrastructure 1
5 Physical resource set up 3
6 Purchasing material required 2
7 Recruiting repair staff and other employees 1
8 Opening up of physical store 2
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9 Marketing and promotion 3
10 Targeting customers 4
Table 2 Gantt chart
Activity/ Months 1-4 5-12 13-17 18-21 22-27 28-30 31-34 35-40 41-43 44-48
Carrying out
Market survey
Business plan
development
Meeting
financial
requirement
Development of
infrastructure
Physical
resource set up
Purchasing
material
required
Recruiting
repair staff and
other employees
Opening up of
physical store
Marketing and
promotion
Targeting
customers
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TYPE OF ORGANIZATION AND MANAGEMENT INFORMATION
SYSTEM NEEDED TO CONTROL BUSINESS
“ABC counselling centre” is private type of organization which will use management
information system with an aim to control their business. Here, firm will basically use the KPI
(Key Performance Indicator) type of management information system. With the help of this
technique, manager of firm can analyse the performance which is being carried out by its
employees (Barron, 2013). Thus, by using the given approach manager can also assess that
whether its employees is delivering best counselling services to its respective client or not.
Furthermore, by using this technique the training and development need of workers can be
identified by the manager of “ABC counselling centre” in an effective manner.
VISION OF BUSINESS IDEA
This business idea has very bright future as there are no such type of firms operates in
Nantwich town which tends to provide the counselling services to the home of buyers. Thus, it is
correct to said that the given business idea has huge opportunity in market.
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