Business Plan: Super-thin Health Clinic - Innovation in Healthcare

This document presents a comprehensive business plan for a new venture called Super-thin Health Clinic, focusing on the introduction of an innovative product named Super-thin Tooth Sensor. The plan encompasses various critical aspects, including a detailed venture description, consideration of legal compliances, strategic approach planning, a thorough marketing strategy, competitor analysis using Porter's 5 Forces, financial analysis encompassing budget forecasts and balance sheets, and a detailed risk assessment. The venture aims to provide high-quality healthcare equipment and monitoring systems, particularly targeting dental healthcare service providers and individual users, while strategically planning operations to maximize profit and minimize potential operational or financial risks within the biomedical instrument manufacturing industry in Australia. The plan outlines the company's mission, organizational structure, and strategies for marketing, communication, and financial sustainability, emphasizing cost leadership and efficient product development.

Running head: ENTREPRENEURSHIP AND INNOVATION
Entrepreneurship and Innovation: Business Plan
Name of the Student
Name of the University
Author note

1ENTREPRENEURSHIP AND INNOVATION
Executive Summery
This is a report based presentation of a business plan is to present business planning
for new venture names Super-thin Health Clinic. The purpose of this business plan is to
present a new product named Super-thin Tooth Sensor. Throughout the business plan the
description of the venture, considerable legal compliances, strategic approach planning,
marketing strategy, Competitor analysis financial analysis and risk assessment has been
discussed.

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Table of Content
Introduction................................................................................................................................3
Venture description....................................................................................................................3
Background............................................................................................................................3
Description of venture presentation.......................................................................................4
Management...............................................................................................................................4
Rationale for legal structure...................................................................................................4
Strategic planning approach...................................................................................................5
Marketing plan...........................................................................................................................6
Target audience......................................................................................................................6
Communication strategy........................................................................................................6
Competitor analysis....................................................................................................................7
Porter’s 5 force.......................................................................................................................7
Competitive strategic plan......................................................................................................8
Financial Analysis......................................................................................................................8
Budget forecast.......................................................................................................................8
Balance sheet and Funding.....................................................................................................9
Risk assessment........................................................................................................................11
References:...........................................................................................................................12

3ENTREPRENEURSHIP AND INNOVATION
Introduction
Business plan is crucial part of pre-venturing activity that ensures the quality and
attainability of the business. According to the business proposals the following business plan
will be developed. The purpose of this business plan is to present business planning for new
venture names Super-thin Health Clinic. Through this new venture the business will be going
to offer a new advanced dental monitoring product named Super-thin Tooth Sensor.
Throughout the business plan the major aspects of the business, which have been considered
and planned are the description of the venture, considerable legal compliances, strategic
approach planning, marketing strategy, Competitor analysis financial analysis and risk
assessment (Naranjo-Valencia, Calderón-Hernández and Sanz-Valle 2018). The aim of this
business plan is to plan the venture operation strategically to maximise the profit while
minimising the risk of potential operational or financial failure.
Venture description
Background
Super-thin Health clinic is the potential venture plan for biomedical instrument
manufacturing. The business is currently focusing only on the biomedical real time diagnosis
products for their manufacturing operation. Super-thin Health Clinic has a authentic
registration according to the Australian Business Operation Act (Julien 2018). The mission of
this company is to offer high quality and efficient healthcare equipments and monitoring
system to the people as well as to the main stream healthcare service provider while
generating enough revenue to enhance the financial and operational expertise of the business.
The head quarter of Super-thin Health Clinic is situated at NSW. However, the aim is to
expand across the Australia within the next 5 years. In long run the venture will also
manufacture and supply the advance imaging and even laboratory equipments.

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Description of venture presentation
Currently this business venture is shared within the 3 owners who are mutually
contributing their financial effort and decisions to improve the business status. Facilitating
the business is another crucial factor, where Super-thin Health Clinic needs to successfully
establish and operate the logistics, Supply chain, Human Resource, Administration, Finance
and other departments. Currently the venture presentation will be adopting the cost leadership
strategy while establishing highly efficient product development life cycle (Erdemir, Yıldız
and Yucel 2018). Innovation will be key for the success of this venture. Besides, the business
is also considering their manpower as their most crucial strength and responsibility as well.
Currently Super-thin Health clinic is planning to operate their workforce through making the
cooperative relationship with the local community and labour market. At the same time for
financial support Super-thin Health clinic will also need some investors. For outbound as well
as inbound logistics the company is currently involving the external business partners.
Management
Rationale for legal structure
As a start-up business Super-thin Health clinic will need a very precise and controlled
operational approach that not only can identify the risk, but can also mitigate the situation
consuming very small amount of time. Hence, the most suitable business structure will be the
vertical or hierarchical business structure where the root will be going to have the maximum
power and the terminal lodes will have the maximum importance (Höglund et al. 2018). As
per the earlier discussion for establishing and controlling the product procurement,
manufacturing and distribution cycle while making enough profit Super-thin Health clinic
will need a structural plan and role-play divisions.

5ENTREPRENEURSHIP AND INNOVATION
Owners and Directors
General Manager
Operation
Manager
Finance
Manager
Human Resource
Manager
Production Executive
Logistics Manager
Administration
Executive
Sales and Marketing
Manager
Sales and consumer
relation Executive
Marketing Executive
Legal Advisor
Figure 1: Organisational Structure
Source: (Created by author)
Strategic planning approach
Strategic planning is the essential part of any business plan that holds the potential
growth of the business. For strategic planning, Super-thin Health clinic needs to analyse their
external and internal environment. In terms of external environment they need to consider the
current political situation, economic situation of industry, social acceptance, legal procedures
and technological advantages (Ang and Rusli 2018). Besides, as internal environment Super-
thin Health clinic needs to examine their own strength, weakness, opportunities and threat.
According to the current situation of Australia the financial benefit of biomedical
manufacturer and suppliers is potentially high due to increasing demand for advance
healthcare services and the exponential growth of public and private healthcare,

6ENTREPRENEURSHIP AND INNOVATION
rehabilitation, medical research industries. Using the accurate capital distribution Super-thin
Health clinic can increase their operational efficiency through new technologies and
competent workforce.
Marketing plan
Target audience
For this new venture the target audience of this business will be the dental healthcare
service providers and personal users. The Super-thin Tooth Sensor can be used as clinical
diagnosis system as well as personal monitoring system. Therefore, patients who are
suffering for various dental problems such as bleeding gums, sensitive teeth, pain, tooth-
stone, cavity and others. Currently the marketing and promotional activity will focus on the
local dental clinic, healthcare organisations and the patients (Alias, Zyed and Ning 2018).
There is no demographical preference for this product, because it can be useful at any age and
for any gender. Super-thin Health Clinic will able to solve health problem concerning a
toothache, build-up of cavities and any other related diseases affecting tooth. All this will be
treated using a new idea of super-thin tooth sensor. Therefore the personal user can also
purchase this product for regular health monitoring. On the other hand, the commercial
healthcare service provider will also use this product for diagnosis and patient monitoring
purposes.
Communication strategy
To reach the target audience Super-thin Health Clinic will use both mass media and
social media based promotion. Besides as long term communication strategy Super-thin
Health Clinic will focus on sponsoring various dental care charity events. Sponsoring the
charities will allow them to be recognised within the end terms users of the market. In terms
of social media based marketing and promotion, Super-thin Health clinic will develop their

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own websites and social media pages, where potential service users and B2B (Business to
Business) level customers will know the product types and services offered by Super-thin
Health clinic. Apart from that digital marketing will also allow Super-thin Health clinic to
collect market data easily while maintaining regular healthy relationship with customers (Jia,
Choi and Park 2018). Super-thin Health clinic will also publish their new product description
through attractive presentation through satellite media and social media. The pay per click
advertisement will also allow them to increase their brand recognition through digital
platform. The customer communication centre will be open for 24x7 hours, through a toll free
contact number.
Competitor analysis
Porter’s 5 force
The porter’s 5 force is a competitive market analysis tool that will allow Super-thin
Health clinic to examine their current market rivalry, threat from substitute products, threat
from new entrees and bargaining power of the buyers as well as customers. The biomedical
manufacturing and suppling industry of Australia is very strong. Companies like A-dec
Australia, W9 Medical and Dental Supplies, Ridley Dental, Orien Dental are the major dental
care equipments manufacturers and suppliers (Lounsbury and Glynn 2018). The selection of
product is unique and therefore risk of substitute products is very low. However, many new
small biomedical companies are emerging through the major cities. Therefore, threat from
new entries are very high. Because of the experience competitors of the market the most
balanced suppliers are business partners of those major companies. Most of the time these
suppliers are in a partnership contract, where they are bound to supply their raw materials
only to the partner company. Hence, the bargaining power of the suppliers will be very high.
At the same time, the quality and properties of the product have made the product unique. It
also reduces the bargaining power of the consumers significantly.

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Competitive strategic plan
As a biomedical equipment manufacturer and supplier, Super-thin Health clinic has
two major strategies to pursue namely the cost leadership strategy and product diversity
strategy. In this care Super-thin Health clinic has to enter the market while having a
completely new and innovative product to offer. Therefore, diversity strategy will not be
feasible for Super-thin Health Clinic. On the other hand, the major competitors have high cost
position in market map. Therefore, to be a powerful entrance in the market Super-thin Health
clinic can use cost leadership strategy (Rangarajan et al. 2018). The cost leadership strategy
will enable the company to offer the product in as lowest price as possible, which can attract
a huge number of customers. It will reduce the initial return on investment from initial sales
operation while it will increase the overall benefit if the breakeven point is used properly for
sales operation.
Financial Analysis
Budget forecast
In this budget forecast Super-thin Health Clinic should focus on their variable cash
outflow which includes the monthly expenses. The expenses are subdivided into four major
sections namely General Administration, Production and operation and Sales and Marketing.
Monthly EXPENSES
General Administration
Wages and Salaries 85000
Telecommunication 6000
Electricity 1500
Repair and maintenance 35000
Rent 15000
Others 17000
TOTAL 159500

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Production and operation
Logistics 56000
Warehouse 35000
Transportation 12000
Manufacturing 48000
Procurement 25000
Distribution 15000
Research and Development 8500
Licences and legal operation 7000
TOTAL 206500
Sales and Marketing
Satellite media Advertising 25000
Social Media Proportioning 5000
Event and Sponsorship 35000
Consumer relation 25000
Post purchasing service 75000
Market research 20000
TOTAL 185000
TOTAL Expense 551000
According to expense calculation total monthly expense will be 551,000 which will
be deducted from the working capital. However, the initially working capital will not include
the profit from sales.
Balance sheet and Funding
The balance sheet includes the total Assets of the Super-thin Health Clinic, the
liabilities and the initial capital. Here the aim is to measure the remaining working capital
after investment (Lounsbury and Glynn 2018).
Asset

10ENTREPRENEURSHIP AND INNOVATION
Start-up Assets 220,000
Start-up cash 10,000
Raised cash 0
Balance on cash (Starting Date) 10,000
TOTAL ASSET 240,000
Liabilities
Current Loan 50,000
Net Down Investment 220,000
Payable account 0
Others 0
TOTAL LIABILITIES 270,000
Initial Capital
Current Asset 240,000
Accounts receivable 50,000
Receivable Grants 150,000
Findings from Investors 550000
Others 15000
TOTAL INITIAL CAPITAL 1,005,000
Current Liabilities 270,000
Expenses (Variable) 551,000
NET WORKING CAPITAL 184,000
From the above examination it can be seen that net working capital is 184,000. As per
the approximation the variable cost of the next month will be at least 500,000. However, to
maintain the speed and financial feasibility of the business operation Super-thin Health Clinic
has to secure at least (500,000-184,000) = 316,000 revenue for next month. Currently no
additional funding will be required. However, in case of low profit margin additional funding
will be required in the next phase of the development.

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Risk assessment
There are many external threats that can act within the internal business operation for
Super-thin Health Clinic. However, for risk analysis the company should more focus on their
internal operation and financial obstacles. The risks of starting the new venture can be
segregated into 3 separate sections namely financial risk, operational risk, workforce risk.
Not all the risks should be considered as the challenges. As an example, risk of professional
hazard is a crucial factor. However, because of the workforce types and work procedures
currently Super-thin Health Clinic is not facing enough challenges from that. At the same
time, the financial risks and challenges are clearly noticeable (Phang and Phang 2018). Due
to the lack of net working capital at the first phase of business process, the risk of bankruptcy
is moderate. To resolve this challenge Super-thin Health Clinic should make more
partnership agreements with various investors.
The major operational challenge is less number of potential suppliers. Being a start-up
company accumulating a good number of suppliers, who will supply high quality products is
very difficult process. Because of poor raw material the risk of product cycle failure will be
also high. Some other challenges that can influence the business operations are social media
based negative marketing, online hacking and other external failure.