Medicstop Business Plan: Healthcare Start-up Venture

This assignment presents a comprehensive business plan for Medicstop, a healthcare start-up providing online health services. The plan begins with a business concept description, outlining the company's mission to offer doctor advisory services, treatment, and medicine delivery, targeting the ...Read More

Running head: BUSINESS PLAN ASSIGNMENT
Business Plan
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Business Concept Description.........................................................................................................2
Discussion........................................................................................................................................2
Market Research..........................................................................................................................2
Lean Canvas.................................................................................................................................3
Financial Projections...................................................................................................................4
Feasibility of Business Concept...................................................................................................5
Strengths and Weakness..............................................................................................................5
Business Concept.........................................................................................................................5
Perusing the Venture....................................................................................................................6
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Business Concept Description
The start-up idea would be drawn for the new venture company that will be operating in
the healthcare industry or sector whereby the company would be making available providing
online health services. Online health service would be provided in the form of Doctor Advisory
Services including treatment and diagnosis of the various health related issues that can be easily
solved with video chat support option available. The company would also be making various
medicine and health related products available for the consumers based on the health benefits
that would be directly associated with the consumers. Giving a proper health advisory service in
treatment and in buying medicines and health products would be the key aimed operations of the
company (Haag 2013). The financial viability of the business for the start-up assessed by
undertaking the various sources of revenue and the other costs that the company intends to incur
in the trend period or the operational time period of the business.
Discussion
Market Research
In order to identify the market research about the company it is equally and well
important to identify the industry, competitors and the key customers for the company
(McKenzie 2015).
Industry: Medicstop would be operating in the medical services field in the Kuwait Health
Industry whereby the company would be providing a subsidized or a low cost health care
services to the patients and health enthusiast. It is expected that the private health-care industry is

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expected to grow by around 15-20% during the coming years according to Adbelrazek
(Thepharmatimes.in 2018).
Competitors: The start-up plan will not be facing high competition as there is no such
established company that provide online health related services in addition to health advisory
services in Kuwait. However, the company still faces stiff competition from other private
healthcare companies that have their online website health support services.
Customers: The key customers for the company would be medical patients that are in the age
group of 40-60 years who need health advisory services often and health enthusiast aged between
20-30 years looking for healthy products.

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Lean Canvas
Lean Canvas Representation for Medicstop
Financial Projections
It is equally important to identify the financial sustainability of the project with the help
of financial planning whereby sources of revenue and expenses to be incurred by the company
could be well analyzed. The company would be starting its business operations with a $500,000
of capital that would be used as equity investment to be used for various operational and
investing activities that would be carried out by the company. The cash flow projection for the
company can be well seen as below:

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CASHFLOW FORECAST
Year 1
CASH INFLOWS
Cash from Sales 200,000
Bank loan 50,000
Capital Employed 450,000
TOTAL CASH INFLOW 700,000
CASH OUTFLOWS
Payments for materials 110,000
operating expenses ( )
Premises (rent, rates) 1,500
Salaries 7,500
General expenses 100
Interest and bank charges payable 2,500
Lease payments 1,250
Corporation Tax 7,580
Market survey costs 350
Other preliminary expenses 500
capital expenditure
Plant and other capital expenditure 375,000
financing repayments
Loan repayments
TOTAL CASH OUTFLOWS 506,280
Cash flow summary
NET CASHFLOW FOR PERIOD 193,720
OPENING CASH BALANCE 500,000
CLOSING CASH BALANCE 187,440
Feasibility of Business Concept
The feasibility off the business concept could be well addressed with the help of the
revenue and profitability generated by the company in the trend period analyzed. The first year
revenue of the company is expected to be around $200,000 whereby the company would be
earning a gross profit of $90,000. On the other hand the return on investment a key financial
metric justifying the feasibility of business was around 6.74% i.e., the net profit was around
$30,230 for the company (Arabhealthonline.com 2019).

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Strengths and Weakness
The key strength of the company would be the Online 24*7 Based services that the
company intends to provide to the various health related patients and customers. Low Cost
Services along with wide scale of doctors and health advisors would be the key strength of the
company (O’Donnell and Dahl-Popolizio 2018).
On the other hand, weakness for the company can be in the form of government health
care services that provides low cost health services on a offline basis. The operational cost and
overhead costs also needs to be well covered by the company in the due period in order to
remain financially stable.
Business Concept
The concept of the business in providing health care services may be ordinary however
providing with online 24*7 based services along with wide range of herbal products and
accessories that are offered by the company would be the key selling point of business. In daily
business life and working consumers and patients want fast and automatic interactions with there
health experts and their concerns can be well heard and resolved with the help of Medicstop
providing a one stop medical and health solutions (Landa, Lillehei and Wolter 2016).
Perusing the Venture
After assessing the market conditions and the financial evaluation of the company’s
profitability it could be well assessed that the private health care companies is having a robust
growth outlook and company can take benefit from the same by investing the required amount of
money. The profitability generated by the business from the first year of operations is adequate

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enough in order to cover all the fixed and variable costs of the company and building a long-term
road plan for the company (Oxford Business Group 2015).
Conclusion
Business plans and start-up should be drawn and built in the sector and industries where
scope of growth and profitability both could be well assessed by the entrepreneurs. It is equally
important to undertake various factors and conditions for the purpose of assessing the overall
growth of the company. The financial viability of the business was also assessed by undertaking
the various sources of revenue and the other costs that the company intends to incur in the trend
period or the operational time period of the business. It was also found to focus more on the
strengths of the business by capitalizing the strengths of the company and simultaneously doing a
detailed study about the weakness associated with the various operational and business activities
undertaken by the company.

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References
Arabhealthonline.com. 2019. Healthcare Infrastructure in Kuwait: On Solid Footing. [online]
Available at: https://www.arabhealthonline.com/magazine/en/latest-issue/Issue-6/Healthcare-
Infrastructure-in-Kuwait-On-Solid-Footing.html [Accessed 20 Aug. 2019].
Haag, A.B., 2013. Writing a successful business plan: An overview. Workplace health &
safety, 61(1), pp.19-29.
Landa, J., Lillehei, C. and Wolter, A., 2016. Dear Sarah VanSickle: Enclosed is our business
proposal for the Project Friendship 5K Fun Run. The proposal is split into four major sections: a
needs statement, project description, a progress plan, and financials. We believe that by using our
plan, and the deliverables with it, Project Friendship will be able to create a unique, cohesive,
and fun event.
McKenzie, D., 2015. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. The World Bank.
O’Donnell, R. and Dahl-Popolizio, S., 2018. Business Entrepreneurship: The Integrated
Behavioral Health Business Plan. In Training to Deliver Integrated Care (pp. 143-159).
Springer, Cham.
Oxford Business Group. 2015. Kuwaiti government gives health care a sustainable future.
[online] Available at: https://oxfordbusinessgroup.com/overview/balanced-diet-government-
seeks-give-health-care-sustainable-future [Accessed 20 Aug. 2019].

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Thepharmatimes.in. 2018. Kuwait Medical Device Market Outlook to 2022: Ken Research | The
Pharma Times | Pharma & Health Care News Portal. [online] Available at:
http://thepharmatimes.in/kuwait-medical-device-market-outlook-to-2022-ken-research/
[Accessed 20 Aug. 2019].