SENZANI PVT HOSPITAL

BUSINESS PROFILE

© SENZANI PVT HOSPITAL | | OCTOBER 2022

Senzani, Ntcheu
 OWNERSHIP INFORMATION
MR. Godfrey Chinkhota

+265 881 056 222

+256 999 801 120

Senzani, STA Tsikulamowa

Ntcheu

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 Table of Contents
OWNERSHIP INFORMATION ....................................................................................................................... 1
BUSINESS OVERVIEW ................................................................................................................................... 3
Introduction..................................................................................................................................................... 3
Objectives ........................................................................................................................................................ 3
Keys to Success ................................................................................................................................................ 3
Mission ............................................................................................................................................................. 4
Services ............................................................................................................................................................ 4
Location and facilities ..................................................................................................................................... 4
Business Ownership ........................................................................................................................................ 4
Financials ......................................................................................................................................................... 4
MARKETING ..................................................................................................................................................... 5
General market information .......................................................................................................................... 5
Segmentation and targeting ........................................................................................................................... 5
Competitive edge and Strategy implementation .......................................................................................... 6
Pricing .............................................................................................................................................................. 6
Sales forecast ................................................................................................................................................... 6
MANAGEMENT ................................................................................................................................................ 7
Overview .......................................................................................................................................................... 7
Personnel Plan ................................................................................................................................................. 7
FINANCIALS ..................................................................................................................................................... 1
Cash flow statement ........................................................................................................................................ 1
Projected income statement ........................................................................................................................... 2
Projected statement of financial position ...................................................................................................... 3

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 BUSINESS OVERVIEW
Introduction
Senzani Private hospital focuses on diagnosing and treating conditions of all ages whilst
emphasizing preventative medicine and the overall health and wellness of patients. The clinic
utilizes equipment’s and trained staffs within and outside the entity, making it possible to deliver
and optimize the care of each patient. We understand that there are many factors that can affect
health, including exercise, diet, environment and heredity. Senzani Private Hospital strives to
provide the most comprehensive medical care possible in order to optimize the care and well-being
of each patient.

As part of its ongoing efforts to improve access to good and affordable health care, Senzani Private
Clinic is geared to scale up its operations and positively assist the people of Senzani and Ntheu
boma as a whole. As such, it planned to increase its drug inventory, staff and medical equipment’s.
However, there is inadequate finance for all this to happen. We have resorted to borrowing
MK4,500,000.00 on owner’s collateral and it will be repaid within 12 months from the clinic’s
cash flows.

Objectives
The objectives for the next two years of operation include:

 To offer service that will exceed patients' expectations, and to position ourselves as a
private clinic that serves the community's needs.
 To increase the number of patients by 20% per year through superior performance and
word-of-mouth referrals.
 To be able to provide our services whilst surviving on our own cash flow.
 To expand our operations in other areas within Ntcheu and beyond.

Keys to Success
In the view of a competition with other health care providers, we have developed and embraced
our own stratagem and culture to steer our mission forward, and this includes:

Patients
 Focus on patient care
 Educate patients on the importance of preventative care

Staff and Office Organization

 Recognize that the office staff is as crucial for us to succeed.
 Create incentives by allowing the office staff to benefit from increased profits generated
by the hospital

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Finances
 Keep a low overhead
 Optimize the number of patients we can see in an hour while providing quality medical
care
 Use this medical clinic business plan to review and guide management decisions

Mission
The mission of Senzani Private Clinic is to promote the health and well-being of the local
population by providing accessible, affordable high-quality medical care for people of all ages.
We are committed to providing services that will exceed the expectations of our patients, resulting
in a successful and profitable business.

Services
In general, Senzani provides general care for all ages, as well as providing multiple procedures to
create a complete health care solution. The costs depend upon the materials used, the medical
assistant’s time and the amount designated for each procedure.

Sensani Private hospital provides the following services, among others:

 Diagnosis and treatment of various diseases

 Family planning
 Nutritional/ Dietician Services

Location and facilities

Senzani private clinic is located north of Ntheu boma along M5 road. We have a good building
with space for patients and well air circulation system. It also has access points to people with
disabilities.

Business Ownership
The business is owned and managed by Mr. Godfrey, as a sole proprietorship. He is responsible
for ensuring the general health of his patients and creating a viable and profitable private clinic.
Over the years, Godfrey Chinkhota has worked and followed best practices expected of private
clinic and to that effect he had been able to get the clinic on a sound financial and operational
footing, using the business plan as a guiding management tool.

Financials
Senzani private hospital is valued at MK16,000,000.00 and most of this value is held in assets.
The hospital building is valued at MK10,000,000.00 and medical equipment’s, drugs and office
materials and furniture are valued at MK6,000,000.00.

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 MARKETING
General market information
There is a general consensus that public health service delivery has deteriorated and private sector
players are becoming second alternative or first choice to some people in desperate in need of
priority medical services. Although economic conditions deny majority of Malawians access to
these private clinic, majority seem to prefer paid medical care before or after getting little or no
help from public hospitals.

Segmentation and targeting

We are open to patients of all ages. Our market segmentation breaks out potential patients out into
local population within 10km radius and patients from all over Ntcheu boma. According to Malawi
population and housing census of 2018, Ntcheu district had 659,608 people and its population was
projected to grow by 3.3% annually. There were 319,45 males and 340,193 females. However, the
area we are operating has approximately 60,000 people.

Pie chart: Marketing Analysis

Senzani
9%

Senzani
Other areas
Other areas
91%

The expected growth of the local population, at 3.5% a year, makes this an ideal location for a
broadly geographic marketing approach.

The rural and semi-rural patients of this area do not, and often cannot, travel more than 5KM to
see a doctor.

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Pie Chart: Population distribution by gender

CHART TITLE

Female Male
52% 48%

Competitive edge and Strategy implementation

In general, competition among fellow private clinic is fierce in Ntcheu. The growing population
base and fair prices create a great potential for meeting out patient load goals.

When deciding which hospital to visit, most patients look for location, convenience of service,
short waiting time, friendly staff and the quality of service offered. The relative importance of each
of these factors vary by patient’s age range, medical needs and level of sophistication in managing
their own health.

Senzani private hospital has competitive advantage based on location, number and quality of
serives offered, friendly staff and clean environment among other factors. All these factors result
in patient’s satisfaction and high referral rates.

Pricing
The pricing for consultation and visits as well as any medical procedure are billed according to
industry standards and we are consistent with our competitors.

Our clinic is a general family medical hospital and we treat patients of all age ranges, income,
physical abilities, race and tribe. Therefore, our clinic is able to appeal to all potential customer
groups.

Sales forecast
The following tables basically show sales income made over the past 12 months and the future
sales outlook for the next 12 months, beginning 1st November 2022.

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Table: Past sales trend

Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22
Past sales trend MK
Patient care 700,000.00 810,000.00 1,000,000.00 1,000,000.00 1,000,000.00 900,000.00 700,000.00 900,000.00 1,100,000.00 1,100,000.00 1,100,000.00 900,000.00
others - - - - - - - - - - - -
Total 700,000.00 810,000.00 1,000,000.00 1,000,000.00 1,000,000.00 900,000.00 700,000.00 900,000.00 1,100,000.00 1,100,000.00 1,100,000.00 900,000.00
Growth % 0% 16% 23% 0% 0% -10% -22% 29% 22% 0% 0% -18%

Table: Projected sales

Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23
Projected sales MK
Patient care 900,000.00 1,100,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,100,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00
others
Total 900,000.00 1,100,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,100,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00
Growth % 0% 22% 9% 0% 0% -8% 0% 18% 0% 0% 0% 0%

MANAGEMENT
Overview
Besides the owner, the clinic has three full time employees: a security guard, a receptionist and a
medical assistant. It is our dream that as the clinic grows, we will add an accountant and additional
medical personnel to help with referrals and additional responsibilities that will be needed at that
time.

We will create a policy and procedures manual that will act as a guide and reference to sick pay,
leave, vacation, payment, etc. The philosophies and guidelines in this manual will help create
proper organizational structure.

Personnel Plan
Currently, employees are paid salary that corresponds to their level of skill and total contribution
to the clinic. As our business grows and become stronger in the near future, we will offer a six
figure employee compensation package. The goal is to create a profit-sharing opportunity in which
to foster loyalty, longevity and contentment in the workplace.

Table: current Personnel plan

Personnel Monthly salary Annual salary

Medical assistant 150,000.00 1,800,000.00
Receptionist 40,000.00 480,000.00
Security guard 20,000.00 240,000.00
Owner
Total 210,000.00 2,520,000.00

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 FINANCIALS
We are in need of MK4,500,000.00 to boost our working capital. This amount of money will be used to purchase additional office equipment, medical
supplies, furniture, stationary, and cover other expenses. This amount, and a starting cash balance already in the accounts will be financed through
borrowing.

Cash flow statement

Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23
MK
Cash inflow
Sales revenue 900,000.00 1,100,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,100,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00
Loan 4,500,000.00
Total Cash inflow 5,400,000.00 1,100,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,100,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00

Cash outflow
Expenses 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00 412,500.00
Loan repayment 326,192.07 334,346.87 342,705.55 351,273.18 360,055.01 369,056.39 378,282.80 387,739.87 397,433.36 407,369.20 417,553.43 417,292.46
Total Cash outflow (738,692.07) (746,846.87) (755,205.55) (763,773.18) (772,555.01) (781,556.39) (790,782.80) (800,239.87) (809,933.36) (819,869.20) (830,053.43) (829,792.46)
Net Cash flow 4,661,307.93 353,153.13 444,794.45 436,226.82 427,444.99 318,443.61 309,217.20 499,760.13 490,066.64 480,130.80 469,946.57 470,207.54
opening bal. 4,661,307.93 5,014,461.06 5,459,255.51 5,895,482.33 6,322,927.31 6,641,370.92 6,950,588.13 7,450,348.26 7,940,414.89 8,420,545.69 8,890,492.26
Closing bal. 4,661,307.93 5,014,461.06 5,459,255.51 5,895,482.33 6,322,927.31 6,641,370.92 6,950,588.13 7,450,348.26 7,940,414.89 8,420,545.69 8,890,492.26 9,360,699.81

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Projected income statement
Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23
MK
Sales 900,000.00 1,100,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,100,000.00 1,100,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00 1,300,000.00
Direct cost of sales 300,000.00 450,000.00 500,000.00 500,000.00 500,000.00 450,000.00 450,000.00 600,000.00 600,000.00 600,000.00 600,000.00 600,000.00
Gross Profit 600,000.00 650,000.00 700,000.00 700,000.00 700,000.00 650,000.00 650,000.00 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00

Expenses
salaries 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00 210,000.00
Utility Bills 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Professional services 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Transport costs 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
Maintenance costs 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Miscellaneous costs 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00

Total Expenses (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00) (400,000.00)
Profit BET 200,000.00 250,000.00 300,000.00 300,000.00 300,000.00 250,000.00 250,000.00 300,000.00 300,000.00 300,000.00 300,000.00 300,000.00
Interest payment (112,500.00) (104,345.20) (95,986.53) (87,418.89) (78,637.06) (69,635.68) (60,409.27) (50,952.20) (41,258.71) (31,322.87) (21,138.64) (10,699.81)
Tax (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00) (12,500.00)
Net profit 75,000.00 133,154.80 191,513.47 200,081.11 208,862.94 167,864.32 177,090.73 236,547.80 246,241.29 256,177.13 266,361.36 276,800.19

Important information and assumptions.

Requested loan amount 4,500,000.00
Interest 2.5%/month
Loan maturity 12 months
hired professional services 75,000.00
transport is also assumed constant
Maintenance & miscellaneous costs are assumed constant
Direct cost of sales consist of cost of medical supplies and other items is constant in some cases
Tax payable after six months 75,000.00

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Projected statement of financial position
Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23
MK
Assets
Hospital Building 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00
Equipment& Furniture 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00

Cash 4,661,307.93 353,153.13 444,794.45 436,226.82 427,444.99 318,443.61 309,217.20 499,760.13 490,066.64 480,130.80 469,946.57 470,207.54
Inventory 3,415,653.13 3,022,947.58 2,671,674.40 2,311,619.38 1,992,563.00 1,614,280.20 1,076,540.33 679,106.96 271,737.77 224,407.05
Total Assets 20,661,307.93 19,768,806.26 19,467,742.04 19,107,901.21 18,739,064.37 18,311,006.61 17,923,497.40 17,576,300.46 17,169,173.60 16,751,868.57 16,694,353.62 16,470,207.54

Capital & Liabilities

Liabilities
Loan payments (326,192.07) (334,346.87) (342,705.55) (351,273.18) (360,055.01) (369,056.39) (378,282.80) (387,739.87) (397,433.36) (407,369.20) (417,553.43) (417,292.46)
Outstanding loan bal. 5,000,000.00 4,173,807.93 3,839,461.06 3,496,755.51 3,145,482.33 2,785,427.31 2,416,370.92 2,038,088.13 1,650,348.26 1,252,914.89 845,545.69 427,992.26
Capital
Equity 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00 16,000,000.00
Retained profits 75,000.00 133,154.80 191,513.47 200,081.11 208,862.94 167,864.32 177,090.73 236,547.80 246,241.29 256,177.13 266,361.36 276,800.19
Others (87,500.00) (203,809.60) (220,526.95) (237,662.22) (255,225.88) (273,228.63) (291,681.45) (310,595.59) (329,982.59) (349,854.26) 182,707.54
Total Capital & Liabilities 20,661,307.93 19,768,806.26 19,467,742.04 19,107,901.21 18,739,064.37 18,311,006.61 17,923,497.40 17,576,300.46 17,169,173.60 16,751,868.57 16,694,353.62 16,470,207.54