Smile Child Hospital

Business Plan
6/4/2012 Muhammad Moiz SP09-BS(BA)17/ATK

SMILE CHILD HOSPITAL

SMILE CHILD HOSPITAL Business Plan

Muhammad Moiz SP09-BS(BA)-17/ATK Submitted to: Mr. Suhaib Date: Monday, June 04, 2012

SMILE CHILD HOSPITAL

Smile Child Hospital

Hospital Road Rahim Yar Khan

Nature of Company
Its a Partnership hospital having five partners; the names of the partners are as follows: Mr. Arslan Mazhar Mr. Jamil Ahmed Mr. Faizan Shahid Miss. Huma Irshad Miss. Sarwat Afzal

Nature of business
Its a service type organization.

Amount of finance needed to start

According to our assumptions and the rates of different things required like machinery, equipment and building for the hospital we need 50 million approximately.

Amount of investments
All of the partners will provide 30 million to start the new venture. We have requested for a loan of 20 million from the Punjab Medical Association (PMA) to be paid in 20 years without interest. This debt will cover medical equipment costs, an ambulance and buildings leased cost.

Industry Analysis
Industry Forecast
In Pakistan every ninth (9th) child died before his/ her 5th birth day due to Malnutrition (Imbalanced diet), (WHO survey 2005). During past three years growth rate of diseases in children is approximately 60% percent due to lack of hygienic factors & polluted atmosphere. But growth rate in hospital industry is just 15%, the reason is that there is no technological advancement in hospital industry. People of Rahim Yar Khan intend to go other big cities like Lahore, Karachi and Islamabad etc, for better treatment of there children. Keeping this point of view we decide to create a stand that gives all types of child related problem solution in Rahim Yar Khan under one roof.

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Analysis of competitor
In private or public sector there is no single hospital is situated in Rahim Yar Khan, match with our standard & caliber. So, no direct competitor is there but some indirect competitor have established their clinics and doing practices. They are simple MBBS and get training in respected fields and on the basis of experiments they are running their clinics. Some of them are competent but hunted by lack of new technology and laboratory system; they normally refer their patients to other big cities in critical situation. Child is a very sensitive, but simple MBBS doctor treats him / her in experimental way, but we come here with Physician & surgeon, Nutrition Specialist, Psychiatrist, Neurologist, Anesthetic specialist, before starting treatment they all diagnose problem sitting in panel and then start treatment.

Market Forecast
We operate our business in huge level, targeting the area from Liaqat Pur to Sukhar, and no single hospital here providing all types of medical facility under one roof with new machineries. According to Pakistan Govt. survey 18.5% of child in this area died due to non available of proper medical facility. And remaining go for big cities for treatment. We segment our market on Income bases: 1. Upper Class 2. Middle Class 3. Lower Class By giving high quality of medication with latest equipments and doctors we can satisfy the high income group. Because our rates are reasonable for middle income group we can also satisfy them. By giving compensation packages to poor we can also satisfy the poor income group.

Background of Entrepreneurs
We the student of BBA (Hons), making a feasibility report of Children hospital under a subject INDUSTRIAL MARKETING. And my respected sir, Prof. Shahid Nawaz assigned this project to me.

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Description of Venture Services Provided

Our each program emphasizes comprehensive, multidisciplinary care for children with all types of medical conditions. In addition, we provide moral support to patients and families to cope with the challenges of illness. These include our Child Life Services department, which caters to the emotional and developmental well being of hospitalized children and their families.

Child Life Services

The Children Hospitals Child Life Department focuses on the emotional and developmental well being of hospitalized children and their families.

Genetic Diagnosis and Counseling

The Section of Genetics at our Medical Center provides a full range of services for the diagnosis, counseling and treatment of patients who have or who are concerned about genetic and congenital disorders.

Pediatric Cardiovascular Services

Children's Hospital provides complete clinical services for the diagnosis and treatment of congenital and acquired heart diseases in children.

Pediatric Critical Care

The pediatric critical care program at our hospital provides services for children with the entire range of severe illness.

Pediatric Gastroenterology, Herpetology & Nutrition

The Section of Pediatric Gastroenterology, Herpetology and Nutrition at Childrens Hospital offer the broadest range of services available for treatment of problems of the stomach and intestines.

Pediatric Psychology
At Childrens Hospital, our clinical psychologists are specially trained for the care of children.

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Size of the Business

Our hospital is basically belonging from medium size business. Other clinics situated in Rahim Yar khan are small in size and have not developed laboratories. Capacity of our hospital will be `45 patients at once or 10 in emergency.

BUILDING
We purchased land and construction on hospital is nearly to complete.

Location of building
This building is situated on hospital road and 10 feet away Shiekh Zayed Medical Hospital main Gate.

Size of building
Area of building is fourty (40) Marla and building having 6 floors.

Rooms
It has fifteen single rooms and ten double rooms. A visiting lounge, rooms for staff (doctors) and for paramedical staff are also included.

Hall
On ground floor there is 3040 square feet hall, which is enough for a small children ward.

Personnel
Personnel are the assets of any company especially in the service sector. In our Hospital more than 80% personnel will be skilled based. We rank our personnel into different departments.

Doctors
Consultant physician Physician Medical officers (M.O) Anesthetic specialist Pharmacist

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Surgeon Pathologist Psychiatrists

Paramedic staff
Nurses Dispenser Operation thither assistant Laboratory assistant

Other personnel
Office boys Ward boys Gun men Ambulance driver Sweeper Gatekeeper Peons

Hospital Equipment
When any business is going to be practically implement office equipment is essential for routine work established discipline and identifications of specific designations. Similarly, in our hospital three medical departments require some particular office equipments, which will be helpful in checking of the patients while check by the doctors. The most interesting thing is that our office equipment is quite different from other manufacturing organizations. These three departments have three offices and each office should contain following equipments. Stethoscope B.P apparatus Thermometer Laminator Otoskop Tongue depressor Torch Measuring tap Glucose monitor Pen stand Stationary Table lamp Office table Office chair Toys for children Weight scale

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All above listed materials should in every office for checking the patients because without equipment doctor is like the soldier without the weapon in war. Another thing, which we have in our mind that all the equipment should be, modernized enough in handily. After the description of doctors list now we explain some other offices, which will be compulsory for further hospital functioning. For this purpose, fist of all we describe finance office and the equipment needed for this is Computer Draw Safe Table furniture

Operation Theater Equipment

Operation lights Operation table Anesthetic machine B.P monitor Cardiac monitor Diathermy Suction machine Oxygen cylinder Nitrous cylinder Autoclave

Equipment for Laboratory

Colorimeter Analyzer Microscope Centrifuge machine X-ray machine Chemicals Glucose meter

Equipment for general ward and other rooms

Incubator Sucker Machine Nebulizers ECG Machine Puls oxinator Oxygen Equipment Wheel chairs

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Weight Machine Stabilizers Stretcher

Other equipment includes Stationary Air-conditioned Unit

SUPPLIERS
Surgical Pharmaceutical Oxygen supplier Furniture supplier

SURGICAL SUPPLIERS
These are the suppliers who will provide us the equipment and instruments necessary for surgery. Mr. John Singh provide us these equipments living in Japan. His Content no. is +8859874563

Pharmaceutical suppliers
These suppliers will provide us all types of medicines. Glaxo Smith Kline and Abbott companies will provide us all types of medicines.

Oxygen supplier
These suppliers will provide us oxygen. This suppliers belong to Multan, name as Arif. His Content no. is 03345698707

Furniture supplier
These suppliers will provide us all kind of furniture. It includes a lot of suppliers some provide office furniture, others provide ward furniture. Modern Furniture Shop Lucky Furniture Shop

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Operational Plan
Intensive Cure Unit (ICU) Emergency Physiotherapy Neurology Laboratory Pharmacy Dispensary Electrical department

Emergency
Emergency department will be there in the hospital where patients that will be seriously ill will be admitted. They will remain in emergency for almost two to three hours and then will be shifted to rooms or intensive cure unit depending upon the situation.

Intensive Cure Unit (ICU)

In intensive cure unit, patients suffering from severe diseases like pneumonia, malaria etc. will be admitted. They will remain in that unit for two to three days depending upon their condition.

Physiotherapy Department
We are going to introduce a different kind of hospital. We research in our area there in no standardized children hospital in which a separate physiotherapy department available. So due to this reason we are making a special physiotherapy department for those children which are hunted by polio and other these types of diseases. We require five million (5,000,000) for a fully equipped physiotherapy department.

Neurology Department
The section of Pediatric Neurology at hospital is staffed by the experts in their field. We work closely with other specialists to provide the most advanced care for children with neurological illnesses. We coordinate pediatric nurse-supervised sedation for CT and MRI scanning with our neurologists, who provide a full range of radiological imaging of the nervous system for our young patients. In addition, because of the strong connection between the brain and behavior disorders, a team of child psychiatrists, psychologists and behavioral pediatricians is also available to work with patients and their families, as necessary.

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Laboratory
Laboratory will be well equipped with all the necessary equipment and instruments. Almost, all types of tests can be possible there. e.g. X-Rays, blood test, CITY SCAN etc.

Pharmacy
This sort of pharmacy has life saving drugs and other routine drugs which are recommended by a consultant physician to a patient. We will be having fully equipped pharmacy.

Dispensary
We have included dispensary for the patients that come just for time being. The dispensarys charges will be included in the Doctors fees.

Electrical Department
Hospital is the place where electricity is most important, not only for operations but also for patients in wards, laboratories or ICU. So, we have included it as a separate department. This department will handle the air conditioner plant and the generators for electricity problems.

Marketing Plan
Here we describe market conditions and strategies related to services. How it will be priced and promoted. Being the entrepreneur our main focus is profitability but also target is how to serve our people in constructive manner. Therefore our marketing goals will be the blend of both factors. Provide all possible facilities to our people in their own area. Create medicated environment in our city whereas people will not move towards other big cities for better treatment.

Situational Analysis
Our city environment is very much supportive for the hospital industry. Through environmental analysis we came to know there is no direct competitor here.

Define Target Market

Our target market is from Liaqat Pur to Sukhar, because within this rang there is no standard hospital giving medication services under one roof.

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Strengths
New idea which will be highly acceptable in the market. We are the trend setters. Our relationships with suppliers are strong enough that offer credit arrangements, flexibility & response to special product requirements. Employee competency and professionalism, which are the asset of our company. Our commitment is quality to customers. We not only satisfy the customers but also build relationship with them in order to get their loyalty and better future of the company. Our unique strength is giving all medication services under one roof. Competitive advantage of first to enter in the market.

Weaknesses
Access to capital. Cash flow continues to be unpredictable. Lack of awareness to people. They dont have the exact concept of interior designing. People living in rural areas difficult to target All the weaknesses of a company are not the weaknesses; actually they are the opportunities for improvement in the companys functions. So by properly arability the opportunities, they would become you strengths.

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Opportunities
Growing market with a significant percentage of our target market doesnt know about nutrition and psychiatrist services. Increase in opportunities beyond the target area of R.Y.K. By providing ambulance services to rural areas we can capture that market also. We can expand business by targeting Sukhar to Hyderabab city.

Threats
New Entrance of competitor High Import duty on machines can increase the cost and make direct effect on our services charging from people.

Develop Goals and Objectives Mission

Children hospital is guided by the belief that all children need to grow up in a protective and nurturing environment, where each and every child is given the opportunity to reach his or her potential. We believe this vision can provide a brighter future for all children.

Goals
To provide out class medical facilities to our patients. To provide them a favorable environment. To expand the business.

Objectives
To earn maximum profit To introduce new technologies to make services better than ever before. To provide incremental value to our customers. To protect and maintain our resources. Maintain a positive and steady growth of 15% each year. Maintain a gross margin of 25%.

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Marketing Strategies Increased awareness & image

Our first strategy is about the awareness of our hospital to the patients Informing those not yet aware of what Smile Child Hospital offers. We will increase the awareness among the customers through proper advertising.

Advertising through
Local news papers Using cable network

Marketing Mix
1. Product 2. Place 3. Price 4. Promotion 5. People 6. Process 7. Physical Avoidance

Product
Input Process Output Sick Patient Treatment of dieses Healthy Patient

Place
We believe that place is not just about distribution it is about convenience too. If the services are not available where and when people need, it will create a lot of problems for customers. The physical place which we have chosen of our Hospital is Hospital road RYK because it is a most famous and well known place for all the people. Another reason for that place so most of people, although, which are not our direct competitors, are operating in that area and awareness will be created frequently.

Price
Doctors Fee
Consultant physician 500/-

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Physician Physiotherapist

500/800/-

Ward and room charges per day

Ward charges Single non AC room Singe AC room Double non AC Double AC ICU (intensive care unit) charges ITR (intensive treatment room) charges City Scan 200/300/500/500/900/600/800/-

Promotion
We will promote our Services through different types of promotions like Advertising Public relations We need one million (1,000,000) R.s for promotion.

Advertising Medias
We have decided to use almost all types of advertising media because we are the new entrants in the market. So, we have to aware and educate people to come to our hospital with their children to get a better treatment with advanced technology. Circulate Hand outs Advertise through Newspapers Through Cable TV because it has made a major source of advertisement Billboards and banners

People
We are targeting the infants and child.

Process
We are providing better health care unit, with unique innovation like, before treatment of any critical diseases in child, first make a panel of doctors, when the sit together through brain storming it is zero chance to treat child wrongly that are very much common in other hospitals.

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Physical Aviedance
Our two doctors, Anesthetist and Neurosurgeon are foreign qualified has MD (American) degrees and one Pediatric Surgeon is FRCS (UK) Fellow of Royal College of Surgeon qualified and other are from FCPS (PAK) Fellow of college of physicians and Surgeons qualified.

Implementing the Market Plan

After all above procedure accepted we will implement this marketing plan.

Evaluating the Market Plan

After implementing if we feel any deficiency in the plan then we evaluate it and again implement it till the desire outcome not satisfy us. But its very difficult to again make a market plan till startup.

Organizational Plan
Form of Ownership
Form of Ownership in Smile Child Hospital is Partnership so the business will be performed on partnership basis.

Partners and their terms of Agreement

As the legal status of Smile Child Hospital is partnership so there are five partners.

Partners & Addresses

1. Mr. Arslan Mazhar Gulshan-e-Usman 2. Mr. Jamil Ahmed Gulshan-e-Jamil 3. Mr. Faizan Shahid Gulshan-e-Iqbal 4. Miss. Huma Irshad Khan Pur, R.Y.K 5. Miss. Sarwat Afzal Gulshan-e-Iqbal

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All the partners will have equal responsibility to operate the business and all will be responsible for any wrong decision.

Profit/Loss Sharing Percentage

All the partners have equal investment of 10,000,000 R.s in the business and the ratio of profit and loss distribution will be equal

Authority or Control
Authority regarding business matters will equal to all the partners. All partners will have joint account with the name of Smile child hospital so the check-signing authority will be equal for all the partners. In case of all other matters regarding dealing with employees, customers and suppliers but also placing orders and receiving orders, taking different kinds of wise decisions, all will have equal authority and control.

Roles and Responsibilities of members

The following is the description about the responsibilities of all the members of the organization including owners and the designers. Each and every member will be responsible to perform his or duty according to the specifications.

2No. Designation Responsibility

1 Owners Dealing with suppliers Decision making Managing Inventory Order placement Financial decisions Managing employees Provide consultancy to patents Treating all patients in their timing very carefully Good Behavior & Consultancy regarding finding any department
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Doctors

Other Staff

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and patients 4 Computer Operator Recording all expenses

Making profile of Patients Recording all medicines and equipment, purchased and dispose off. I-e injections or vaccines

Assessment of Risk
We are going to start a standardized children hospital in Rahim Yar Khan. Before this there is no hospital operating which provide all facilities, which are needed for a children hospital. According to our research there is a very much need for a standardize hospital, That provides all the facilities for the health to children. So in future our business is 100% successful and the chance of failure is Zero percent (0%). The involvement of risk in our business is zero percent; the reason behind is that there is no direct competitor in this region but some small clinics are operating here which are our indirect competitors. There is no fear from their side because they are operating with single doctor. Mostly Doctors are operating their own clinics own self. These clinics are operating with old type of equipments and there is no specialty in their clinics. So in these conditions our business is not facing any sort of risk.

High cost
We are operating our business at very much cost where as our indirect competitor are operating at low cost. Patients can easily offer their fees, so this is our one and only weakness.

New & Imported Technologies

We are introducing new & imported technologies in our hospital, that difficult to operate and need special persons to operate it.

Financial Plan
There is no such typical financial plan. As, we are making the feasibility report therefore; we have decided to include the prices of different equipments and 1st time salary needed for a hospital. 17

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Initial finance needed

46,193,025 (calculated) 47,000,000 (Required)

Sources of Funds
All of the partners will provide 30 million to start the new venture. We have requested for a loan of 20 million from the Punjab Medical Association (PMA) to be paid in 20 years without interest (Approved). This debt will cover medical equipment costs, an ambulance and buildings leased cost.

Department, equipments and their prices

Building First Month salaries Operation theater equipment Laboratory equipment Office equipment Promotion City Scan Machine Equipment for rooms and wards 40,000,000 585,000 2,305,000 1,650,000 266,525 1,000,000 Credit 121,000 46193025

Total Building Salaries

Dr. Ahsan (Retired) Nutrition Specialist
Physician & surgeon

40,000,000

Psychiatrist Anesthetic specialist Neurologist Other Peons, nurses, ward boys Total

100,000 40,000 60,000 35,000 70,000 80,000 200,000 585,000

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Operation Theater Equipment

Operation theater lights Operation table Anesthetic machine B.P monitor Cardiac monitor Diathermy Suction machine Oxygen cylinder Nitrous cylinder Autoclave Set of surgery instruments

150,000/300,000/80,000/120,000/500,000/300,000/150,000/25,000/30,000/150,000/500,000/2,305,000/-

Total

Equipment for Laboratory

Colorimeter Analyzer Microscope Centrifuge machine X-ray machine

200,000/500,000/45,000/15,000/800,000/-

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Chemicals Glucose meter Total

50,000/50,000/1,650,000

Office Equipment

stethoscope (10) B.P apparatus (5) Thermometer (10) Laminator Otoskop Tongue depressor (10) Torch (5) Measuring tap Glucose monitor

15,000/5,000/500/500/3,000/500/1,000/25/45,00/-

Stationary Table lamp (5) Office table (5) Office chair (5)+(50)+ (30) Toys for children

1,000/2,500/80,000/103,000/5,000/-

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Weight scale (2) Total

45,00/266,525/-

After the description of doctors list now we explain some other offices which will be compulsory for further hospital functioning. For this purpose, fist of all we describe finance office

Equipment Computer Draw Safe table Total

Cost 70,000/8,000/35,000/8,000/121,000/-

Equipment for general ward and other rooms

Incubator Nebulizers Weight machine ECG machine Stabilizer Sucker machine Oxygen equipment

500,000/10,000/5,000/200,000/4,000/50,000/15,000/-

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Pulse oxinator Wheelchairs(3) Stature(3) Total

30,000/24,000/12,500/850,500/-

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