ENTREPRENEURSHIP & ENTREPRENEURIAL MANAGEMENT: Business Plan

This document presents a comprehensive business plan for Al-Khaldiyah Medical Est., a proposed sole proprietorship in Al Khobar, Saudi Arabia, established to supply and service life support machines. The plan outlines the business structure, products (including various life support machines and related maintenance services), and target market, which includes healthcare organizations, hospitals, clinics, and ambulance services. It details a differentiated pricing and marketing strategy leveraging print and online media to attract customers. The plan includes a vision statement, goals, and financial analysis, indicating an initial investment of SAR800,000, with funding from both owner's funds and bank borrowings, and projects a break-even point within the first year. The business details, registration information, and premises are also provided, including the rationale for the business location and the decision to purchase the premises. The plan also encompasses the organizational chart, management and ownership details, key personnel requirements, recruitment options, and training programs. Finally, the plan addresses key aspects such as business premises, organizational chart, management, and ownership details, including recruitment strategies and training programs for the staff.

ENTREPRENEURSHIP &
ENTREPRENEURIAL
MANAGEMENT (BUSINESS PLAN)

TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
Business plan summary ...................................................................................................................3
THE BUSINESS .............................................................................................................................4
THE MARKET ..................................................................................................................18
The Future......................................................................................................................................26
The Finances..................................................................................................................................27
REFERENCES .............................................................................................................................33
SUPPORTING DOCUMENTS.....................................................................................................36
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BUSINESS PLAN SUMMARY
The business
Business name: Al-Khaldiyah Medical Established
Business stricture: Sole trader
Business location: Al Khobar, Saudi Arabia
Date (to be established): January, 2016
Business owner:
Relevant owner experience:
Products/ services: Life support machines and their repair and maintenance services
The market
Target market: The proposed business will sell life support machines to large health care
organizations, private hospitals, clinics, health centres, Ambulance services. They would buy the
products of Al-Khaldiyah Medical Est. over other companies as the new business will provide
standardized, superior quality products. It will also provide after sales service comprising of
repair and maintenance of these products.
Marketing strategy: The proposed business will enter the market by using a differentiated
pricing strategy. Customers will be attracted by print media and online advertising. This will
work as the business will promise to provide efficient after sales service and keep up the trust of
customers.
The future
Vision statement: “Be recognized as the leading company supplying quality life support medical
equipment's and value growth for the stakeholders”
Goals/ objectives:
 To provide best value and services to the clients or customer's.
 To become leading company in life support supplying industry.
 To attain leadership status in the area of providing standardized life support machines.
 Constantly offer quality of products and enhance the market share.
The finances
On the basis of financial analysis it has been evaluated that, Al Khalidyah medical Est
owner have to invest SAR800000 in which 40% has been raised through owner's fund and
remaining 60% through bank borrowings. However, on the demand and quality of products Al
Khalidyah medical Est will attain break even point in within one year. Furthermore, company
through the help of better services and client satisfaction will start generate positive profits from
the very first year of functioning.
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THE BUSINESS
Business details
Products/ services: The business under the name Al-Khaldiyah Medical Established is a
medical machines supply and services business. It will supply life support machines. Common
life support measures include artificial nutrition and hydration, cardiopulmonary resuscitation,
mechanical ventilation, kidney dialysis etc. (Understanding Life Support Measures, 2014). In
this regard, the business will provide portable resuscitation products, medical gas delivery
products, tracheostomy tubes, thoracostomy tubes, ventilator, nasogastric tube, dialysis machine,
medical monitor, heart lung machine etc. The business will also provide maintenance services of
these machines and equipments.
Life support is concerned with replacing or supporting a failing body function
(Understanding Life Support Measures, 2014). These prove to be a boon for people who have
one or more failing organs or organ systems and are incapable to survive without assistance.
Therefore, life support machines enable people to survive in critical situations such as trauma or
while recovering from an injury (Paden and et.al., 2013). With the emergence of a number of
complicated diseases and illnesses that make human organs fail or function improperly, the
demand for life support systems have increased. Advancements in medical science have also
encouraged people to save their loved ones with the use of devices that form a part of life support
systems (Le Guen and et.al., 2011). Moreover, Saudi Arabia is undergoing a rapid population
growth which indicates that the demand of life support product will rise. Furthermore, the
prevalence of conditions which require life support technologies such as cardiopulmonary
resuscitation, have increased in Saudi Arabia (Saudi Arabia Defibrillators Market Expanding
owing to the Need for Better CPR Treatment, 2015). With adoption of sedentary lifestyles and
unhealthy food patterns, people are experiencing more heart problems. There is high prevalence
of diabetes in Saudi Arabia. Also, there has been rise in the prevalence of end stage chronic
kidney disease (Al- Sayyari and Shaheen, 2011). There is also growing incidence of
cardiovascular diseases among children. These conditions suggest that the demand for life
support systems will be high in this area.
With the increase in the usage of life support machines, there is a greater requirement of
repair services for them. The business Al-Khaldiyah will provide repair and maintenance
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services for the machines used in life support technology. Various end users of the machines will
require proper and timely maintenance. From this, it can be said that there is high demand of
these products and services in the market.
Registration details
 Business Name: AL KHALDIYAH MEDICAL EST.
 Trading Name:
 Date Registered:
 Location Registered: Owners of AL KHALDIYAH MEDICAL EST can obtain
application that pertains to the business structure from the office of Secretary of the State
of Khobar city (Eastern Province).
 Date Registered:
 Location Registered: Khobar city (Eastern Province). Business Structure: AL KHALDIYAH MEDICAL EST is solely owned business which
offers wide range of Life support Equipments and their maintenance to the customers.
However, focusing on sole proprietorship business, owner will have all the responsibility
and authority to play regarding carrying out critical and spontaneous decision of different
range of products that AL KHALDIYAH MEDICAL EST will be going to sell in the
target market of Khobar city. SABN (Saudi Arabia Business Number): SACN (Saudi Arabia Company Number): Goods and Service Tax Registration: Domain Names:
 Licences & Permits: ISO 13485: 2003, approved scope to manufacturer, exporters and
importers of Life support Equipments, Hospital equipments, slimming equipments.
Business premises
Business location
According to the present case, business idea of opening a Life support equipment store,
Abdulrahman Ibn Muath St. has been selected. Rationale behind the selection of this area is that
it is main road that is linked to entire Al Khobar city. However, opening the store in the middle
of the city will assist owners of the firm in enhancing the reach of customers. Furthermore, it is
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the road at which most of the city biggest hospitals are situated thus which make more easy for
the management to deal with them and offer wide range Life support equipments for the
betterment of the people and cure them in the best possible manner. Along with this, opening
equipment store in Al Khobar provide the market opportunity of less competition. Al Khalidyah
medical Est is a retail business enterprise with relatively low competition. However, the major
retail rival is Attieh Medico which operates in different parts of Saudi Arabia and offers wide
range of medical and Life support equipments.
Buy/Lease:
On the basis of nature of sector that entrepreneur is trying to enter it is essential for
him/her to buy the property from where he/she can execute business activities and sell the Life
support equipment's. Al Khalidyah Medical Est will provide wide range of products and services
thus, requires the space to display the medical equipment's. Despite of huge investment required
in buying the office it is feasible for the entrepreneur because fully owned property can be used
in any manner as per the need of business. While on the other hand, leasing the property will
create the liability for individual regarding paying high amount as well as maintain the property
as its ownership is transferred for limited period. However, according to the present business
requirement, entrepreneur has to make the investment of SR8,00,000 for overall proposed
business. The main purpose behind recommending entrepreneur to buy the office is that he will
get the benefit of any appreciation in the value of the property.
In addition to it, entrepreneur while making decision whether to acquire a facility by
purchase or by lease, he/she must concentrate on the short term such as first year cash flow
projections that would result for each of the alternatives. However, it is necessary for the
entrepreneur to evaluate the feasibility of both the approach and select the best suitable option
for the execution of new business. There are several factors that owner has to consider before
making the decisions related to lease of buy property for official purpose which are as follows:
 Control of the property
 Considering the long term costs
 Individual haven't found the suitable property to lease
 Area of appreciating land values.
 Purchase may lead to tax savings
Organizational Chart
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Management and ownership
Name of the Owner:
Details of management & ownership:
Being a sole proprietorship business, owner will only be responsible for making all the
decisions regarding carrying out the activities of business. However, there are several managerial
level involved in the structure of business which will directly report to the owner before making
any decisions regarding the contingency of Al Khalidyah Medical Est. In addition to it, the focus
of company is to provide Life support equipment's and its after sales services to enhance the
overall customer's satisfaction. In this context, trained sales executives and delivery staff will
play crucial role in selling and delivering the products to the desired place of the customer.
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Illustration 1: Organizational Structure

Furthermore, Al Khalidyah Medical Est's owner also given great importance to the fact that
management team should focus on after sales service for improving the overall satisfaction level
of the target audience.
Key personnel
Required staff
Job Title Quantit
y
Expected
staff
turnover
Skills necessary Date
Inventory
Manager
[1] [2-3
years]
- Bachelor degree program in Supply chain
management.
- Computer operator in the inventory
management process.
- At least 1 years experience.
[Jan/2016]
Sales
Manager
[1] [2-3
years]
- Consistent Coaching
- Good listening
- Maintaining professional relationship
- Emotional Control
- Leadership
[Jan/2016]
Accountant [1] [1-2
years]
- Analytical
- Detail-oriented
- organizational
- Strong communication skills
- Excellent maths skills
[Jan/2016]
Delivery
Staff
[3] [0-1
Years]
- Time management Skills
- Better communication skills
- Knowledge about products
[Jan/2016]
Recruitment options
The staff required by the business will be recruited through a number of methods. Print
advertising will be used for this and advertisements for the staff required will be published in the
local newspapers. Further, online advertising options will also be considered. Advertisements
will also be placed in magazines that are on medical issues and areas related to medical services.
Job advertisements in magazines and newspapers will contain important information such as
location, job tile and description and instructions to apply for the job (Davis, 2015). Al-
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Khaldiyah Medical Est. will sell life support machines. Therefore, the staff required for the
business needs to possess information about machines and their usage. They also need to have
technical information which will be required for providing repair and maintenance services of
the machines.
As social and new media are regarded as a fruitful resource, these will also be used to
connect with professionals in other parts of the country. Job vacancies will be posted on twitter
and Linkedin. This will help in attracting relevant candidates for the senior positions in the
business. Facebook will be used for increasing the applicant pool for the job positions of the new
medical supply business.
Training programs
The new business will require training programs in the situation when suitable candidates
have been recruited and do not possess adequate information about new products of life support.
For them, internal training will be opted. In house training program will provide flexibility to the
new business. This is because the training program can be developed specifically as per the
needs of Al-Khaldiyah Medical Est. Medical equipment repair courses will also form a part of
these training programs. Furthermore, biomedical equipment training will be provided to the
staff through cooperation of hospitals and medical equipments manufacturing companies. This
will provide hands- on training to the staff. A a business manager, the owner of Al-Khaldiyah
Medical Est. will focus on obtaining training on operations of a medical business. The training
will include obtaining a basic information about the products, managing the various departments
of the business and learning management skills for running the business properly.
Skill retention strategies
For maintaining the skills of the staff, regular meetings will be organized in which
procedural documentation will be provided to them. This will comprise of the allocation of
responsibilities to the staff. For maintaining the skills, the responsibilities of the staff will be
interchanged as required. The responsibilities will be documented through job descriptions which
will include task, duty and responsibility lists. Regular meeting on a monthly basis will ensure
that the employees understand their responsibilities. Through these meetings and mails, the
responsibilities will be communicated to the staff members. Apart from that, various internal
processes will also be implemented to regularly check that the current skills of staff members are
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appropriate for the business. A 'skills check' document will be prepared. This will help in
assessing the skills of the staff as well as their appropriateness for the business.
Products/ services
Market position
Al-Khaldiyah Medical Est. proposes to sell life support machines and provide their
maintenance and repair services. The products of the business fit in the market in the area of
fulfilling the demands of health care organizations and other working groups such as ambulatory
services, fire departments, emergency medical services etc. The products will be high end as well
as competitive. Al-Khaldiyah Medical Est. will make considerable efforts to source highly
sophisticated, innovative and superior quality machines and equipments that form life support
systems. As life support systems are directly associated with the health of the patient, there is
requirement of high degree of sophistication and good quality. There is a greater demand of high
ed medical equipments in health care sector. This suggests that the market position of Al-
Khaldiyah Medical Est. will be to provide high end and competitive life support machines which
are reliable and standardized. The proposed business will also provide maintenance and repair
services for these machines. The services will be competitive as only qualified staff will be
recruited. Further, the staff will be trained with the help of in house training. Moreover, the
internal process of performing a 'Skills check' will help in making the staff capable of providing
reliable and good quality services. This can be compared to the competitors. There are many
companies which are involved in carrying out medical supply business, but Al-Khaldiyah
Medical Est. will specifically cater to the sector of life support machines and their services.
Unique selling position
The products and services of Al-Khaldiyah Medical Est. will succeed in the market
because it will provide the customers with a complete product and service package pertaining to
life support systems. Not only the machines but also their repair and maintenance services will
be provided by the business. This suggests that the business will provide after sale services as
well which will help it to remain connected with its customers. Serving as a one stop shop for the
the sale and repair services of life support machines, Al-Khaldiyah Medical Est. will succeed in
the market where others may have failed. Furthermore, the ability to provide high end medical
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devices and superior quality services will provide competitive edge to Al-Khaldiyah Medical
Est.
Anticipated demand
The customers of Al-Khaldiyah Medical Est. will be hospitals, primary health centres,
private clinics etc. along with them, the business will also provide services to fire departments,
ambulance companies and emergency medical services. The demand for life support machines is
expanding due to the prevailing medical conditions. In Saudi Arabia, there is high prevalence of
heart diseases, diabetes and renal disorders. Also, the country is experiencing high population
growth. Therefore, it is likely, that hospitals, ambulance services, primary health care centres and
health care clinics would required life support machines. It can be anticipated that large health
care organizations may buy 10-15 life support products in a year. As compared to this, private
clinics, ambulance services and primary health centres may buy 4- 5 life support machines
within 6 months.
Pricing strategy
Al-Khaldiyah Medical Est. will adopt competitive pricing strategy so as to target 'Value
customers'. Value customers are those that gravitate to products which are not only good but also
competitively priced. For some categories for example artificial nutrition and hydration,
competitive pricing will be useful for 'Value customers'. This is because, value customers will be
ready to sacrifice a degree of innovation for lower price. Therefore, various small health care
centers and clinics will be attracted to purchase products and services of Al-Khaldiyah Medical
Est. In other categories such as cardiopulmonary, mechanical ventilation and kidney dialysis,
premium pricing strategy will be used. This is because, the market for these products comprise of
the premium customers only. There are health care organizations which have strong brand image
in the industry and like to purchase only quality products. Premium pricing will help in satisfying
the needs of these customers.
Value to customers
The customers will views life support machines as necessity. This is because, these
machines are used for supporting and assisting those people who have one or more failing
organs. The customers of Al-Khaldiyah Medical Est. are various hospitals, ambulance services,
primary health centres etc. The will value its products as necessary for saving the life of patients.
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Growth potential
The product of Al-Khaldiyah Medical Est. is expected to grow in future. The growth will
be driven by various factors. These include increasing prevalence of various cardiovascular and
renal diseases. Rise in the number of people suffering from Diabetes is another factor that will
drive the growth of life support machines. Moreover, the population of Saudi Arabia is also
expanding. All these factors will add to the growth potential of the business.
Innovation
Innovation activities
In order to encourage innovation at the workplace, various activities will be undertaken.
Regular meetings will form a part of this activity. In the meetings, creative and novel ideas of the
staff will be invited. Action plans will be prepared to incorporate these ideas if they are feasible.
'New Knowledge' sessions will also be organized. The team will be provided information about
new ways of doing things at the workplace. They will be asked to prepare plans for
implementing changes at Al-Khaldiyah Medical Est.
Insurance
Nowadays with several uncertainties' government has implied insurance policies and
procedures that company has to comply in order secure the products and internal stakeholders of
the company. In the present given case, entrepreneur is focusing on dealing in life support
equipment's thus require to have insurance of each product so that threat of fire and theft can be
minimized. Workers Compensation: It can be defined as the form of insurance that assist in providing
wage replacement and medical benefits to the workers injured in the course of
employment (Workers' Compensation Insurance, 2015). Thus, it is important for the
owner of Al Khaldiyah Medical Est to comply this insurance and provide appropriate
working environment to the employees so that they can work in more efficient manner
and generate higher revenues by selling life support products. Public Liability Insurance: The main purpose behind Public Liability Insurance Act 1991
is that it assist in insuring the third party regarding the incidents of deaths and injury
through the medical equipment (Life Support System, 2015). However, through the help
of this insurance, Al Khaldiyah Medical Est can insured their part of liability from the
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