Title

Management Team
Sidrah Khurshid
Mariyum Haider
Wajhee Uddin
Farahat Ullah Khan
Table of Contents
1. Executive Summary ...................................................................................................................... 3
2. Business .......................................................................................................................................... 4
2.1. Background ........................................................................................................................... 4
2.2. Objectives............................................................................................................................... 4
2.3. Hardware Design .................................................................................................................. 5
2.4. The Algorithm ....................................................................................................................... 6
2.5. Uniqueness of the Product .................................................................................................... 6
2.6. Revenue Sources.................................................................................................................... 6
3. Marketing ...................................................................................................................................... 8
3.1. Market Overview .................................................................................................................. 8
3.2. Market Segmentation ........................................................................................................... 8
3.3. Key Market Trends............................................................................................................... 9
3.4. Competitive Landscape ...................................................................................................... 11
3.5. Estimated Share .................................................................................................................. 13
4. Operations ................................................................................................................................... 18
4.1. Current Operations ............................................................................................................ 18
4.2. Future Operations ............................................................................................................... 18
4.3. Sales Forecast ...................................................................................................................... 19
5. Management Plan ....................................................................................................................... 20
6. Financial Plan .............................................................................................................................. 21
6.1. The Investment So Far ....................................................................................................... 21
6.2. Financial Plan ...................................................................................................................... 23
6.3. Important Assumptions ...................................................................................................... 24
6.4. Break-even Analysis............................................................................................................ 24
6.6. Projected Cash Flow ........................................................................................................... 26
6.7. Projected Balance Sheet ..................................................................................................... 27
7. Timeline ....................................................................................................................................... 29
8. Critical Risks ............................................................................................................................... 29
Appendix .............................................................................................................................................. 33
 1. Executive Summary

With an aim to assist and improvise the living conditions of the physically-challenged or age-
affected individuals based at remote or isolated location, we present to you a home-based
human-monitoring system comprising of a network of wearable sensing devices attached to an
individual’s body. The vital information collected by these sensors is relayed to the concerned
healthcare personnel who, in case of any emergency, can be alarmed to take the immediate and
necessary follow-ups.

Our product is not only hassle free for the user, it is also a source of comfort to both the users
and their respective healthcare supervisors who can do their job from afar without having to
halt their daily activities with our system allowing full time monitoring and ensuring that help
is just a phone call away. Being an affordable and original system that integrates common
technologies like Wi-Fi for operating, our system provides a unique solution to problems that
are otherwise hard to afford within our country and surrounding South Asian regions.

With the wearable motion sensors market exploding and expected to register a CAGR of 47.2%
during the forecast period 2019 – 2024, our product being part of the industry appears to have
a bright future. The market is expected to witness significant growth with the advancements in
wireless communication devices, sensor technology, power supply technology, and others,
specially in Asia Pacific Region. With the world of healthcare advancing rapidly it is a field
with great potential.

Despite having large global competition with huge names already making way in the market
with revenues worth billions of dollars, it may be a challenge to build a reputation
internationally. But the market being fresh and evolving, it is a step in the right direction to
start from home.

With our initial target market being local clinics, research and rehabilitation centres as well as
elderly individuals, we plan to market our product online, the hub of information, as well as
with official visits to larger markets such as hospitals. Planning to start with Karachi, we aim
to expand our market to the entire country within 3 years and become the household name in
the world of wearable motion sensors and remote healthcare monitoring systems.

We hope to change lives and make special needs individuals more comfortable and confident
as members of our society with our system allowing them to feel more independent and
bringing about an impact in the up surging healthcare industry of our country. Although there
are many risks and challenges to overcome, we are confident that our venture has the potential
to make room for itself and gather a noticeable market share.

2. Business Description

2.1. Background

Our product seeks to bridge the gap between the recent technological advancements and
the healthcare sector. It combines the modern modes of data transmission to assist the
living conditions of homebased individuals.

With a user-friendly control system, it allows the age-affected and physically-challenged

individuals to easily communicate with their respective medical personnel in case of
emergencies. Patients based at remote locations can be timely monitored and assisted,
thereby ending the need for prolonged hospitalization and unnecessary bills.

With this cost-effective solution, we hope to improvise the lives of the less-privileged
individuals or those who live in otherwise inaccessible areas.

2.2. Objectives

This system aims to correctly identify the observed movement of the patient’s body. To
achieve the main goal of providing healthcare assistance, it shall timely notify the
concerned medical personnel in case of an unpleasant situation.

 To achieve the sales growth targets by month six and by end of year one. Aggressive
gains in market share and average monthly revenues in year two.

 To grow the contracted sales team to seven field clinical sales reps by month eight and
to 25 field clinical sales reps by year three.

 To achieve net profit in year one, increasing in year two, by containing costs and
meeting sales goals.

 To maintain 90 day customer satisfaction survey results (% who would definitely

repurchase and definitely recommend us) at 98% or higher.
2.3. Hardware Design

The hardware design of the system is an assembly of low-power consuming, small-sized,

non-invasive and light-weight sensor units interconnected to form a network with
wireless transmission links, operable across a specified range. (CHRIS OTTO, 2016)

Multiple tiny heterogenous biological sensors are strategically placed on different parts of
human body, creating a wireless web around it. Moreover, since the data is communicated
through radio waves between the sensors, the complexity of design of the system is very
minimal, thereby not creating any inconvenience and difficulty for the user to carry it
around and allowing them to perform their daily activities without any physical hindrance.

A single sensor unit is composed of three sub-sensors which are accelerometer,

magnetometer and gyroscope, interfaced with a Radio Frequency (RF) module via an
Arduino Nano chip powered by a battery. The receiver module consists of another RF
module, a Bluetooth module and an Arduino UNO board.

Data processing begins in the Arduino Nano board embedded in each sensor unit, as soon
as the inertial measurements are received from the Inertial Measurement Unit (IMU). This
incoming inertial data from each of the three sub-sensors (accelerometer, magnetometer
and gyroscope), is read in Nine Degrees of Freedom, because the measurements are done
in three separate axes (x, y and z). With the implementation of a fusion algorithm, these
nine separate readings are fused into a tri-dimensional dataset. (Tran, 2017)

The three dimensions, namely Roll, Pitch and Yaw, indicate the movement or rotation of
each sensor unit, thus giving the orientation of the body as integer numbers. Once this
information from all of the five sensors reaches the central Arduino Uno board through
Radio-Frequency waves, it is further channelled via Bluetooth signals to a smartphone app
where it is stacked in a cloud storage through the Internet. A local server with an available
Wi-Fi access processes this collected information by applying the supervised machine
learning algorithms on it. After the data is converted into a human-readable form, a
medical professional based at a different location, analyses it and provides the required
assistance to the patient. In case of any emergency, the system can efficiently issue timely
warnings to the patient, as well as the responsible personnel.
2.4. The Algorithm

Our product recognizes the active physical state of its subject through a trained set of
supervised Machine Learning Algorithms: Support Vector Machine (SVM) and k-Nearest
Neighbour (k-NN). These algorithms work by running a comparative analysis between the
incoming data and an already stored training dataset, thus giving a classified output with
an accuracy of approximately 97%.

2.5. Uniqueness of the Product

Our hardware design is entirely based on original ideas accumulated through cognitive
thinking and a thorough research across the internet. After coming across extremely high-
priced similar range of products on the internet, we decided to build a relatively
inexpensive and economically feasible solution that could cater the needs of individuals
from all walks of life; unlike the other products that only serve a financially-stable part of
the society. A classless market is what we seek!

Besides this, our system is exclusive of the hassle that comes along the complicated wired
network frames in most of the similar systems. With the wireless architecture and easy-to-
wear individual sensor bands, our design makes the use of the equipment quite convenient
and comprehensible for the end-users.

The modes of data transmission that we have incorporated in our design are also
unorthodox and free from harmful radiations, thus providing a hazard free environment to
the users. The wireless technologies include Near Radio Frequency, Bluetooth and Wi-Fi
signals.

2.6. Revenue Sources

 Transactional Revenue Model

Countless companies, both tech-oriented and otherwise, strive to rely on the

transactional revenue model, and for good reason too. This method is one of the most
direct ways of generating revenue, as it entails a company providing a service or product
and customers paying them for it.
 Advantages: Consumers are more attracted to this experience because of its simplicity
and the wider set of options.

 Disadvantages: Because of the directness of the transactional revenue model, many

companies employ it themselves, which means more competition and price
deterioration, and therefore, less money to made for everyone who uses this model.

 Web Sales

This is an offshoot of the transactional revenue model, in which a customer pays directly
for a product or service, except that customers must first come to your company via a
web search or outbound marketing and conduct transactions solely over the internet.

 Advantages: Web sales work with a wide variety of offerings, including software,
hardware, and even subscription services.

 Disadvantages: Relationship sales are incompatible with the web sales model, so if your
company is related to consulting or big-ticket items (high-value items such as houses,
appliances, and cars), you should consider employing a model that’s more suited to
your offering.

 Direct Sales

There are two types of direct sales: inside sales, in which someone calls in to place an
order or sales agents calling prospects; and outside sales, which is a face to face sales
transaction.

 Advantages: Direct sales models work great with relationship sales cycles, enterprise
sales cycles, or complex sales cycles that entail multiple buyers and influencers.

 Disadvantages: The direct sales model often requires hiring a sales team of some sort,
which means that it isn’t optimal for small ticket price items. If your offering is priced
below the $1,000-$2,000 range, you’ll have trouble building a scalable company.
3. Marketing

3.1. Market Overview

The wearable motion sensors market is expected to register a CAGR of 47.2% during the
forecast period 2019 - 2024. The market is expected to witness significant growth with the
advancements in wireless communication devices, sensor technology, power supply
technology, and others.

 Motion sensors such as accelerometers, gyroscopes, MEMS and combination of these

sensors are the most used type of sensors incorporated in wearables. Moreover, health
tracking wearables will always integrate motion and MEMS sensors, but are not limited
to and can also add health-specific sensors like pulse monitors, heart rate monitor and
skin temperature sensors.

 With the ongoing miniaturization of sensors and related components, rising growth
towards the advanced function sensors in smart wearables, and improvement in the
battery sizes and efficiency are the key drivers which are boosting the wearable motion
sensor market.

 Sensors are an important component in wearable devices used by consumers owing to

the increased focus of consumer on tracking real-time motion sensing activities such
as steps counting, walking distance covered, this generated data analysis provides users
with specific results that can be used to define health and fitness goals.

3.2. Market Segmentation

 Research & Development Departments

 Rehabilitation Centres
 Hospitals & Clinics
 Care Takers

The estimated shares of each of these can be predicted as:

Potential Customers Growth expected per annum

 Managed Care 25%

Hospital Groups 10%

Rehabilitation Groups 10%

Independent
5%
Researches

3.3. Key Market Trends

Consumer Electronics Segment to Witness High Growth

 The consumer electronics segment is expected to witness high growth rate during the
forecast period. The region is also witnessing increased demand for sensor-based
devices as the consumers are gaining awareness regarding the features these devices
provide such as remote monitoring of wellness and fitness.
 Also, a wide variety of factors are driving the demand of these devices in this region
such as the availability of various types of wearables, technological advancement in the
field of sensors, and vendors ability to provide differentiated products.
 With the growing adoption of wearables among users, the consumer electronics
segment is expected to dominate the market over the forecast period. The increase in
demand for fitness trackers, wellness monitors is a key factor driving the growth of
shipments of wearables in this region.
 Asia-Pacific to Witness the Highest Growth
 Asia Pacific region is expected to witness the highest growth rate during the forecast
period owing to the rapid urbanization and increased awareness of people for wearable
devices. Moreover, This region is home to some of the biggest manufacturers of
semiconductors and sensors which is expected to further drive the market.
 Many big enterprises and various new players in countries like China and Japan are
investing in sensor technology advancement, which is due to the growing popularity
and adoption of various wearable fitness and health tracking devices among people.
 With the miniaturization of sensor technology and the development of precise sensing
technologies in wearables from original equipment manufacturers in the Asia Pacific
region, the market is anticipated to grow even further.
 Also, OEMs are making a significant contribution in the development of inertial
measurement units and MEMS technology, to provide greater accuracy while keeping
the price lower for these products, is one of the factors for the increased adoption of
wearables in this region.
3.4. Competitive Landscape

The wearable motion sensors market is highly competitive owing to the presence of many
players in the market in the domestic as well as international locations. The market is
moderately concentrated with the key strategies adopted by the major players are product
innovation and mergers and acquisitions. Some of the major players in the market
are Texas Instruments Incorporated, Honeywell International Inc., Analog Devices,
Inc., STMicroelectronics among others.
Apart from these, smaller setups selling motion analysis systems include:

COMPANY NAME ANNUAL REVENUE

VICON systems $ 21.1 M
Xsens systems $ 9.5 M
Qualisys $ 13 M
OptiTrack $ 3.8 M
Motion Analysis $7M
TechnoPrope $ 18 M
Northern Digital, Inc. $ 50 M
YOST Labs <$1M
SBG Systems $ 14.7
APDM Wearable Technologies $ 7.4

However, the good news is that despite the competitors being at large, they are not popular
in our local target market which is the Pakistani population. Here we currently have no
major competitors as the current systems are generally very expensive. Our product is
likely to be the best choice in a low price which is affordable for most middle class to
higher earning populations.
 3.5. Estimated Share

The global patient monitoring wearable devices market value is in constant grow and
this year it is estimated to reach a value of approximately $26 billion. It is a market that
is in constant growth, if we think that in 2010 the market was only $6.3 million, it is
possible to understand that in these recent years it has increased substantially (around
200 hundred percent). According to IDTechEx, in terms of global revenue, the following
five year’s trend is to increase at a higher rate as it can be seen in the figure below:

Figure: Horizontal bar graphic showing the total revenue in billions ($) (left axis) from 2015 to 2017, and estimated until
2026. The blue line shows the revenue growth rate in billions ($) (right axis).

So if our expectations are met, and we are able to produce estimated growth rate upto 12.5%
annually, it will not be a major share in the global industry. However it can still impact the
local market where the international competitors are not presently at large, specifically due to
unaffordable range of prices for the local community.

3.5.1. Marketing Plan

The key element in our strategy is to market to homecare and assisted living patients in
Pakistan, where we are likely to see the highest level of customers for our products.
To do this we will leverage our corporate relationships to open the door to hospitals and
research facilities, and use our marketing expertise to build a compelling program. This will
allow our field sales team to be much more efficient in prospecting.

We will do this by:

 Arranging hospital visits by our marketing team and cover as many hospitals
as possible in Karachi within a year, and expand to major hospitals in major
cities by year 2. We will then try to expand our market to the entire country
by year 3 and extend our marketing to all major hospitals in the country.

 Research centres and rehabilitation centres will also be personally visited by

our team at the same rate.

 Our major marketing platform over Year 1 will include online marketing
initially done by our own team and will be extended according to profits
obtained. We aim to create advertisements and bring awareness to people via
social media and our own personal website, where propagation of news is
the fastest these days.

 Marketing platforms may increase to newspapers, brochures and written and

electronic advertisements by year 2 to bring local awareness.

Our success is dependent on building a strong field clinical sales team that can build
relationships at the facility level, successfully leveraging of national account relationships,
and effectively marketing the value proposition that our therapeutic system program can offer
to both the resident and the facility.

We will utilize the monitoring system offering as the means to gain entrance into the market
and build our organization. Then we can add complimentary products for managing
complications of remote patients.
Our key to marketing success will be to effectively manage the building of our brand
platform in the market place, which will consist of the following elements:

 Brand Vision - our envisioned future of the brand is to be THE national source for
product solutions to manage the complications of remote living in the elderly.
 Brand Attributes - Partners, problem solvers, fast on our feet, flexible and easy to
work with.
 Brand Essence - the shared soul of the brand, the spark of which is present in every
experience a customer has with our products, will be "Problem Solving" and
"Compassionate." This will be the core of our organization, driving the type of
people we hire and the type of behavior we expect.
 Brand Image - the outside world's overall perception of our organization will be that
we are alleviating the complications of remote living in the elderly.
 Brand Promise - our concise statement of what we do, why we do it, and why
customers should do business with us will be, "To alleviate chances of suffering and
constant need to look after indivisuals and give a sense of confidence, freedom and
feeling that they are being taken care of to our users’
 We focus first on understanding the needs of caregivers to residents, then deliver them
the care they deserve with a team of compassionate clinical professionals.

3.5.2. Market Strategy – Sales and Distribution

Our initial market strategy is direct sales from the company to hospitals and consumers, with
the platform of sales majorly online. However, with organization like hospitals with large bulk
orders personal meetings will be arranged with our Marketing manager for signature of
contracts.

By Year 2, we may increase the number of employees in the marketing team up to 5 for both
online marketing and in person marketing, increasing distributions with the help of the
electronics media.

3.5.3. Advertising and Promotions

 Web Plan Summary

Our website will be informational and will serve as a repository for the organization
through password-accessible pages where we will update critical company information.

The Web pages viewable by the public will be designed to be extremely fast and easy to
use, and will enhance our brand image as, "clinical pros with a variety of product solutions
for the complications of remote monitoring." It will feature the following content:

Product information.

Contact info for the representative who covers their area.

Information about comprehensive programs.

Research articles with the latest on disease care.

Links to disease websites.

Customer testimonials and sales success stories.

Information about Medicare guidelines for the therapeutic system program.

Progressively expanded content relevant to homecare and post-acute care and the
complications of disease.

 Website Marketing Strategy

We will attempt to drive customers and clinics to use the website as our primary source of
communicating company information and any other relevant information on remote
monitoring, the market, reimbursement, etc. We will explore using Web portals as a means
to get corporate office decision makers to drive program compliance.

 Development Requirements

We will develop a very basic website using standard packages and doing the development
work in-house. We will target going live with the basic site by early May, then we will
enhance the site as we go along.

 Social Media Accounts

We will further create social media accounts where people will be given a brief glimpse of our
products and encouraged to ask questions as these platforms have most frequent visitors. But
direct sales will be done through our website only.
4. Operations

4.1. Current Operations

ABC, at the moment, is still in the process of development. There is no allocated work
space, except for the premises of the university. The management team is seeking a
reasonable funding and a separate on-campus work space from the university.

Besides this, further modules of the system are also under construction. The goal is to
manufacture at least five working modules before the official launch.

4.2. Future Operations

A company trademark, patents and copyrights will be bought for the legal registration of
our start-up. Federal and State Tax IDs will be requested as per the requirements. Moreover,
Incubator companies will be contacted for an authorised work environment.

The company will be certified under ISO 9001 for Quality Management System (QMS).
Once, these legal proceedings will be completed, the company shall be ready and fully
functional to launch.

The sales and marketing department will work to gather as many customers as possible
within the first year of establishment, thereby generating increasing profits for the
company. This income will be initially utilized to improvise the design (in terms of
materials) and inculcate new features (such as an increased range of data communication)
for a greater user-convenience.

With the growth in revenue, the company shall expand its infrastructure and the hiring
capacity for better operations in the future. ABC also plans to develop a user-friendly
Android/iOS application, as well as, a website for the purpose of commercialization of the
product.

The needs of the customers will be thoroughly studied in order to maintain and improvise
the quality of the existing protocol. The registered feedback and complaints will be timely
responded to and the Inspection Team shall look into the matter whenever and however
required. The major aim of the company will be to maintain the customer satisfaction with
a reliable product/service quality. If the number of customers and the generated revenues
 proceed to rise, as predicted, the company shall introduce a new range of products fitting
similar categories.

The company aims to keep on exploring the ever-growing field of technology, with hopes
of long-term expansion over the years. These future plans ensure that ABC will remain
relevant and useful to its customers.

4.3. Sales Forecast

Our direct costs in year one are calculated using the following assumptions:

 PKR 20,000 per unit cost, at least 20 units sold.

 Shipping is estimated at 5% of total sales.

Our direct costs in year two are calculated using the following assumptions:

 PKR 25,000 per unit cost, at least 36 units sold.

 Shipping is estimated at 5% of total sales.

Our sales in year three are calculated using the following assumptions:

 PKR 30,000 per unit cost, at least 50 units sold.

 Shipping is estimated at 5% of total sales.

Year 1 Year 2 Year 3

Direct cost PKR 400,000 PKR 900,000 PKR 1,500,000

Shipping PKR 20,000 PKR 45,000 PKR 75,000

Total PKR 420,000 PKR 945,000 PKR 1,575,000

5. Management Plan

Wajhee Uddin, Chief Executive Officer

wajheeuddinnew@outlook.com

NED University, BE in Biomedical Engineering

Mariyum Haider, Chief Financial Officer

mariyumhaider73@gmail.com

NED University, BE in Biomedical Engineering

Sidrah Khurshid, Chief Marketing Officer

sidrahkhurshid.96@gmail.com

NED University, BE in Biomedical Engineering

Farahat Ullah Khan, Chief Technology Officer

farahatkhan46@gmail.com

NED University, BE in Biomedical Engineering

6. Financial Plan
6.1. The Investment So Far

Item Name Type No. of Units Per Unit Total (in Rs)
Cost (in
Rs)

Arduino Nano Equipment 5 450 2250

NRF24L01+ Equipment 5 75 375

MPU9250 Equipment 5 680 3400

Charging circuit Equipment 5 100 500

Arduino UNO Equipment 1 450 450

Batteries Equipment 5 300 1500

Node MCU Equipment 1 450 450

Printed circuit board Equipment 5 40 200

Velcro straps Miscellaneous 1 500 500

Etching solution Miscellaneous 2 50 100

Acrylic sheets Miscellaneous 1 1800 1800

Connecting wires Miscellaneous 1 100 100

Switches, LEDs Miscellaneous 1 80 80

6 USB power charger + Miscellaneous 1 1500 1500

cord

Sand paper, Saw, Super Miscellaneous 1 295 295

glue
Item Name Type No. of Units Per Unit Total (in Rs)
Cost (in
Rs)

Total in 13500
(Rs)
 6.2. Financial Plan

Start Up Requirements

Start Up Expenses

Legal PKR 56,500

Stationary and Office supplies PKR 1,000

Office Equipment Leases PKR 12,500

Telecommunications PKR 50,000

Accounting PKR 15,000

Marketing Material PKR 10,000

Others PKR 5,000

TOTAL START-UP EXPENSES PKR 150,000

Start-up Assets

Cash Required PKR 150,000

Start-up Inventory PKR 100,000

Other Current Assets PKR 10,000

Long-term Assets

TOTAL ASSETS PKR 260,000

Total Requirements PKR 460,000

 6.3. Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the
following table as annual assumptions.

The collection days are for insurance billings only, and not a factor we can influence easily.
Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Two of the more important underlying assumptions are:

1. We assume a strong economy, without major recession.

2. We assume, of course, that there are no changes to the Medical/insurance Industry, such as the
nationalization of health care.

General Assumptions
2019 2020 2021
Plan Month 1 2 3
Current Interest Rate 12.25% 12.25% 12.25%
Long-term Interest Rate 12.88% 12.88% 12.88%
Tax Rate 20% 20% 20%
Other 0% 0% 0%

6.4. Break-even Analysis

Break-even Analysis

Monthly Revenue Break-even

PKR 15,505
Assumptions
Average percent Variable Cost
5%
Estimated Monthly Fixed Cost PKR 14,729

Table: Break-even Analysis

6.5. Projected Profit and Loss

Pro Forma Profit and Loss

2019 2020 2021
Sales PKR 63000 $45,185 $53,098
Direct Cost of Sales $2,180 $2,398 $2,638
Other Costs of Sales $0 $0 $0
Total Cost of Sales $2,180 $2,398 $2,638

Gross Margin $37,500 $42,787 $50,460

Gross Margin % 94.51% 94.69% 95.03%

Expenses
Payroll $30,000 $30,000 $33,500
Sales and Marketing and Other $550 $600 $600
Expenses
Depreciation $50 $50 $50
Rent (inc Utilities) $2,400 $9,600 $9,900
Insurance $636 $800 $1,000
Payroll Taxes $335 $30 $429
Other $1,200 $1,500 $2,000

Total Operating Expenses $35,171 $42,580 $47,479

Profit Before Interest and Taxes $2,329 $207 $2,981

EBITDA $2,379 $257 $3,031
Interest Expense $0 $0 $0
Taxes Incurred $656 $58 $840

Net Profit $1,673 $149 $2,141

Net Profit/Sales 4.22% 0.33% 4.03%

6.6. Projected Cash Flow

Pro Forma Cash Flow
2003 2004 2005
Cash Received

Cash from Operations

Cash Sales $34,522 $39,311 $46,195
Cash from Receivables $4,843 $5,761 $6,740
Subtotal Cash from Operations $39,364 $45,072 $52,936

Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $39,364 $45,072 $52,936

Expenditures 2003 2004 2005

Expenditures from Operations

Cash Spending $30,000 $30,000 $33,500
Bill Payments $7,411 $14,350 $17,208
Subtotal Spent on Operations $37,411 $44,350 $50,708

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current $0 $0 $0
Borrowing
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $2,000 $2,000
Dividends $0 $0 $0
Subtotal Cash Spent $37,411 $46,350 $52,708

Net Cash Flow $1,953 ($1,279) $228

Cash Balance $2,953 $1,675 $1,903

6.7. Projected Balance Sheet

Pro Forma Balance Sheet
2003 2004 2005
Assets

Current Assets
Cash $2,953 $1,675 $1,903
Accounts Receivable $816 $929 $1,092
Other Current Assets $50 $50 $50
Total Current Assets $3,819 $2,654 $3,044

Long-term Assets
Long-term Assets $2,000 $4,000 $6,000
Accumulated Depreciation $1,250 $1,300 $1,350
Total Long-term Assets $750 $2,700 $4,650
Total Assets $4,569 $5,354 $7,694

Liabilities and Capital 2003 2004 2005

Current Liabilities
Accounts Payable $596 $1,232 $1,431
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $596 $1,232 $1,431

Long-term Liabilities $0 $0 $0
Total Liabilities $596 $1,232 $1,431

Paid-in Capital $1,200 $1,200 $1,200

Retained Earnings $1,100 $2,773 $2,922
Earnings $1,673 $149 $2,141
Total Capital $3,973 $4,122 $6,264
Total Liabilities and Capital $4,569 $5,354 $7,694

Net Worth $3,973 $4,122 $6,264

7. Timeline
 Apply for funding from the university
 Acquire work space by June 30, 2019
 Start on-campus promotions
 Raise funds up to PKR 50,000 from friends and family by July 30, 2019
 Manufacture new modules by August 25, 2019
 Apply for trademark, patents and copyrights by September 15, 2019
 Launch Website by September 30, 2019
 Publish ads online through Social Media
 Establish official advertisement campaigns across the country
 Seek recruits for organizational growth
 Set up training programs for the new recruits
 Sell the first batch of equipment by December 30, 2019
 Increase production rate by 10% by January 15, 2020
 Increase sales by 20%

8. Critical Risks

 TECHNICAL CHALLENGES AND FUTURE OUTLOOK

Certain technical challenges still need to be addressed for wide-scale use and deployment of
wearables as part of the digital health era. One such challenge is their privacy and security.
Wearables are physically small and can store a large amount of data; therefore, it is highly
likely that the device and data stored may be lost or even hacked. Development of more
secure and encrypted wearables, potentially with tracking capabilities, is desired to reduce
privacy and security risks. Another technical challenge is the personal calibration of wearable
devices. Every person is uniquely different, and various factors affect personal health (e.g.,
family medical history, genetics, and diet); therefore, the symptoms for early disease
diagnosis may differ for every person. Thus, personal calibration of devices and machine
learning–based analysis of data that are tailored for individuals are required for more accurate
and relevant monitoring of the health status of the patient using wearables. Big data
approaches driven by large populations (e.g., specific to different countries, races, etc.) are
extremely powerful but can be misleading for individuals, and therefore wearable
technologies should be aware of “small data” created by an individual and be ready to
accurately harness and interpret them. Otherwise, big data streams will shadow outliers and
statistically create catastrophic events for some individual patients. A further challenge is the
misalignment of wearables, which affects their measurement quality and accuracy. A
wearable device should be capable of operating and gathering accurate data even if there is a
misalignment between the user and wearable. This demands smarter designs that can tolerate
such misalignments, for example, by using computational approaches and guide star– like
internal references or self-calibration protocols. This is especially important considering the
variations in human physiology and the size or 3D conformation of different organs on which
wearables operate. The durability and robustness of wearables also requires further
improvement. Wearables should be capable of operating under different conditions, such as
in humid or wet environments and warm temperatures. This would allow continuous
parameter monitoring without losing performance during such activities as swimming,
showering, or sunbathing (depending on the target application). Wearables made of smart
textiles and stretchable electronics should be washable and dryable (including the batteries),
and the electrodes should not break when bending or folding the device. Another wearable
part that requires increased robustness is the battery; this is especially crucial in GPS
tracking, which is an essential tool for wearables that consumes a considerable amount of
battery power while in use. The development of new materials that have more energy.

The next few years present a set of new interesting challenges in this sector and to overtake
them an adaption of these technologies should be made. It is important to study user
requirements to develop an integrated approach in health and wellness. The development of
such devices and its integration in an architecture of intelligent home services may have some
main issues that require some attention: device efficiency, reliability and unobtrusiveness;
privacy and ethical issues; legislation within and between states or countries; interoperability;
end-user training to use and operate them; and social inclusion preventing users isolation,
which can lead to a decrease of interaction with caregivers and physicians.

 STRATEGIC RISKS:

It is the risk that the company’s strategy becomes less effective and the company struggles to
reach its goals as a result. It could be due to technological changes, a powerful new
competitor entering the market, shifts in customer demand, spikes in the costs of raw
materials, or any number of other large-scale change. Failure to adapt to such risks can lead
to bankruptcy so the company must keep up with the latest trends and technological materials
and make sure to keep an eye out for competitors in the region specifically.

 COMPLIANCE RISK

We must ensure that the company is complying with all the necessary laws and regulations
that apply to our business with extensively studying the legal requirements of start up
ventures. But laws change all the time, and there’s always a risk that we will face additional
regulations in the future as our business expands, so we might need to comply with new rules
that did not apply to the venture before. Even if the business is not expanding geographically,
we can still incur new compliance risk just by expanding our product line or due to changes
in legislation. So it is important to have a lawyer at hand and stay in touch with the local legal
bodies. In extreme cases, a compliance risk can also affect THE business’s future, becoming
a strategic risk too.

 OPERATIONAL RISK

This is a kind of internal risk. Operational risk refers to an unexpected failure in the
company’s day-to-day operations. It could be a technical failure, like a server outage, or it
could be caused by your people or processes. Anything that interrupts the company’s core
operations comes under the category of operational risk. In some cases, operational risk can
also stem from events outside our control, such as a natural disaster, or a power cut, or a
problem with your website host.

In some cases, operational risk has more than one cause. For example, consider the risk that
one of your employees writes the wrong amount on a check, paying out $100,000 instead of
$10,000 from your account. This a people’s as well as process failure as it could have been
avoided by a more secure process. While the events themselves can seem quite small
compared with the large strategic risks, they can still cost a lot to fix and cause a loss of
reputation, time and revenue.
 FINANCIAL RISK
Most categories of risk have a financial impact, in terms of extra costs or lost revenue. But
financial risk refers specifically to the money flowing in and out of the business, and the
possibility of a sudden financial loss. For example, if that customer is unable to pay, or delays
payment for whatever reason, then the business is in big trouble.
Having a lot of debt also increases your financial risk, particularly if a lot of it is short-term
debt that’s due in the near future. And what if interest rates suddenly go up, and instead of
paying 8% on the loan, you’re now paying 15%? That’s a big extra cost for the business, and
so it’s counted as a financial risk.
Financial risk is increased when the business expands geographically, especially if the
currency changes, as exchange rates can have drastic effects on the finance. They also
increase when dealing with transportation costs to far away areas.
 REPUTATIONAL RISK
When it comes to business, reputation is everything. Since our major competitors are huge
names in the industry, it is difficult to build a reputation well enough to be recommended
with them in the market. Care must be taken to avoid any mistakes as it can lead to large
losses as well as demoralization of employees. Reputational risk can take the form of a major
lawsuit, an embarrassing product recall, negative publicity about us or our staff, or high-
profile criticism of our products or services. And these days, it doesn’t even take a major
event to cause reputational damage; it could be a slow death by a thousand negative tweets
and online product reviews.
Appendix

Resumes of the Management Team

 Wajhee Uddin, Chief Executive Officer
 Sidrah Khurshid, Chief Marketing Officer
 Farahat Ullah Khan, Chief Technology Officer
 Mariyum Haider, Chief Finance Officer
Advisors:

 Ms. Tajwar Sultan

Lecturer, Biomedical Engineering Department NEDUET

B.E. (CIS) NEDUET;

M.Engg. (Comp. Sys.) NEDUET [CV]

Email: engr.tajwar@neduet.edu.pk

 Dr. Bilal Ahmed Usmani

Assistant Professor, Biomedical Engineering Department NEDUET

M.Sc. (Mathematics) (Pure) UoK

M.Phil (Mathematics) UoK

Ph.D. (Mechtematical Epidemiology);

University of Glasgow, UK [CV]

Email: bausmani@neduet.edu.pk