1 of 14   Search

document 

Business Plan on Expansion of Small Clinic

to Medium Clinic
1. E xecutive Summary

This document is...
 Useful  Not useful
The purpose of this business plan is to raise 21 million birr for the development

of a clinic while 60 million birr is the expected total investment for financials

and operational expenditures over the next five years. The Clinic is found in


Related titles Oromya Regional state the nearby Addis Ababa Holeta Town. It will provide

emergency and general medical care services to patients in its targeted market.

The Company will launch its operation in the year 2014.

1.1 Medical Services

The Medium Clinic has been designed to become a recognized leader in Huruta

Town Arsi Zone oromia Regional State; particularly, more than 26 kebeles of lode

hetosa woreda for its expansive line of emergency, clinical, and minor surgical

services. The facility will feature 200sqm of clinical space that will

include a full scale emergency room, several operating rooms, inpatient,

outpatient as well as a laboratory department. The medium clinic will also have

5 beds for in patient care.

1.2 The Financing

The Owner is seeking to raise 2.5 million birr from Financial Backers. The

terms, equity investment covenants, and payouts are to be discussed during

negotiations. However, this business plan assumes that the Company will give

guarantee 61% of equity (building cost) as a mortgage in exchange for the

require capital.

1.3. Mission Statements

The clinic’s goal is to provide the general public with a 24 hours health care

services, inpatient and outpatient based clinical facility that will also provides

urgent healthcare to people with medical emergencies. The Company will

provide patients with compassionate and comprehensive medical treatments for

all of their emergency care, clinical, and minor surgical needs.

1.4 Management Profile

The Company was founded by Mr. Dereje and his family who has more than 10

years of experience in the medical and healthcare industry. Through

their expertise, they intended to be able to bring the operations of the business to

profitability within its first year of operations.

1.5 Sales Forecasts

The Owner expects a strong rate of growth at the start of operations. Below are
the expected financials over the next five years.

2.
Company profile and Financing Summary

2.1 Registered Name and Corporate Structure

1. Profile of the Business

i. Name of the applicant Ato Dereje Girma Begashew

ii. Address : Arsi Zone , Huruta town 01 Kebele: House No-726.01

 TEL+251-911362460

3. Type of business: sole proprietorships

4. Contact person/Authorized person/: Ato Dereje Girma Begashew

5. Marital status of the borrower:

6. Type of project or economic activity: service

7. Legal form of business: Sole proprietorships

 Status of the business: Existed

 Registering Agency: Oromia Regional Gov’t huruta town Trade office.

8. Registration number and date: ORO/ARS/HUT/1/0015443/2014

9. Trade License Number and License Date

 License: ORO/ARS/LHW/04/362/6478416/2013

 License Date: - 29/11/2007

 Taxpaying identification number (TIN):0040365123

 Startup capital Birr 5,000.00

3. Medical Services

As discussed in the executive summary, the medium clinic is seeking to develop

an expansive facility that will provide emergency, medical, and minor surgical

services to the residents of the target market. Mr dereje anticipates that upon

receiving loan, the clinic will have full operating rooms, laboratories, a full scale

emergency room, and a general medical laboratory. The clinic facility will be

200 square meter of occupational space. The total in patient space is expected to

be about 5 beds. For each section of the clinic, the latest in medical technology

will be acquired. Currently, Mr. Dereje will plan a number of medical

instruments to acquire its medical/surgical assets.

The Clinic will provide services which are listed below

 Nursing Service

 Patient Flow Service

 Inpatient service

 Internal Medical Service

 And other all clinical level medical services will deliver to customers in and

around huruta town.

4. Strategic and Market Analysis

4.1 Economic Outlook

The project can create employment for 9 people. In addition to supply of the

domestic needs, the project will generate Birr more than 3 million revenues

annually.

4.2 Industry Analysis and Market Study

Ethiopia with its total population 90 million [2011] has the population growth

rate 3.2% per year. It indicates that the population will be 102 million by the

year 2015 while the health supplies unable to meet the current demand as well as

for the coming years.

According to the Canadian Network for international surgery ( www.cnis.ca), the

life expectancy at birth is 56/year, fertility rate 6.1 children/women, and

maternal mortality ratio 720/100,000 live births in Ethiopia. With this regard the

health professional ratio is below the international standard which is less than 5

physician/100000 people. As a result of this, Ethiopia in a Global Health

Industry ranked157 on UN Human Development Index and only 6% of births

attended by a skilled attendant.

So, private sector health investment in clinic is the back-bone for the

overall development in health services. Medium Clinic is a medical facility

that provides health care to both inpatients and outpatients and treats many

types of diseases with medical professionals. In Ethiopia Medium clinic is

supposed to serve minimum up to 3,000 people/annum and provide all

types of clinical service including surgery.

Moreover, improved health service coverage and quality will have a positive

effect in improving the quality of life of the community.

5. MARKET STUDY

The market feasibility study is conducted to people live in and around huruta

tow of Arsi Zone.

5.1 Market Demand

Health service provision is one of the most priority service areas for the

population. The target market for this venture is Oromiya Regional State Arsi

Zone Lode Hetosa Woreda Huruta town but the the study all kebeles in lode

hetosa woreda.

So the woreda population where more than 100,000 and the government Health

Facilities far from the people, due to this much amount of people forced to come

in our clinic for medical treatment.

5.2 Competitive Analysis

In the target market there is no private clinic however, there is Governmental

Health Center which cannot be considered as a strong competitor. So, the current

market research confirmed that the business will provide service without

competition.

5.3 Marketing Strategies

Management intends on using a number of strategies to increase the visibility of the

medium clinic and the services it provides. As the business is a 24 hour facility,

the Company intends to market the fact that in the event of an

emergency, it can provide appropriate medical treatment. At the onset

of operations, the Company will distribute advertisements within locally using

mun tarbo on the woreda market day. Finally, the Owner and the Management

Team also develop relationships with local government health facility and clinic

so that patients can be brought to the facility in the event of a medical emergency.

6. MEDICAL SUPPLIES AND UTILITIES

REQUIRED MEDICAL EQUIPMENT AND MEDICAL SUPPLIES REQUIREMENT

Table 1:

Item Quantiy Uni P rice

Toal P rice
Adrenaline injection 3 4,932.00
14,796.00
Minophyllioc injection 2 6,165.00
12,330.00
Savlon (chlorhexidene +Cotrimide) 2 5,425.00
10,850.00
Alcohol solution 79% 2 3,699.00
7,398.00
Dextrese 40% injection 2 2,466.00
4,932.00
Ergometrine maleate injection tabs 2 6,658.00
13,316.00
Hydrocortisone sodium succinate 2 9,864.00
19,728.00
Procaine hydrochloride injection 2 6,659.00
13,318.00
Vitamin k injection 2 9,864.00
19,728.00
Bandage different sizes 2 5,523.00
11,046.00
Cotton 2 3,205.00
6,410.00
Disposable syringes different types 2 6,658.00
13,316.00
Disposable needle different types 2 4,685.00
9,370.00
All types of Labratorica raw materials 2 62,449.00
124,898.00
Sphygmomanometer pcs 2 152,702.70
305,405.40
Clinical thermometers (assorted) 2 30,540.54
61,081.08
Diagnostic set 2 76,351.35
152,702.70
Scale infant 2 7,635.14
15,270.28
Scale adult 2 9,162.16
18,324.32
Examination bed 2 6,108.11
12,216.22
inpatient bed 5 9,162.16
45,810.80
Infusion stand 5 9,162.16
45,810.80
Instruments sterilizer 2 76,351.35
152,702.70

Stethoscope 2 45,810.81
91,621.62
Centrifuge 2 15,270.27
30,540.54
Lab. Bench 2 9,162.16
18,324.32
Glass ware (assorted) set 2 10,689.19
21,378.38
Timer 2 3,054.05
6,108.10
Photometer 2 30,540.54
61,081.08
Hemoglobin pipette 2 9,162.16
18,324.32
WBC pipette 2 9,162.16
18,324.32
2 91,621.62
Hemo cytometer with its cover slide
183,243.24

Test tubes (assorted) 2 9,162.16

18,324.32
Measuring pipettes (assorted) 2 3,054.05
6,108.10
Delivery table 2 4,581.08
9,162.16
Vacuum extractor/retoscope 2 45,810.81
91,621.62
Aspirator/manual 1 3,054.05
3,054.05
Breast pump 1 21,378.38
21,378.38
Suction unit 1 15,270.27
15,270.27

Light portable/mobile 1 1,527.03 1,527.03

Auxiliary operating light
minor operating set
Delivery kit set
Stethoscope (baby) pcs
Hand reflector pcs
Respiration bag adult pcs
Respiration bag babies pcs
Oxygen cylinder 20 lts pcs
Tourniquet pcs
Forceps assorted pcs
Enema set set
1 15,270.27 15,270.27
1 183,243.24
1 152,702.70
1 4,581.08 4,581.08
1 30,540.54 30,540.54
1 4,581.08 4,581.08
1 4,581.08 4,581.08
1 5,497.30 5,497.30
1 30,540.54 30,540.54
1 2,748.65 2,748.65
1 9,162.16 9,162.16
Toal
2,241,222.41

SECTION 7: HUMANRESOURCE AND MANAGEMENT

7.0 Organizational Plan and Personnel Summary

7.1. Human Resources

7.1.1. The Clinic will have Human Resource Department (HRD) which carries

out the major functions of Human Resource Management (HRM).

7.1.2. Each service units of the Clinic will maintain a sufficient number of staff with

the qualifications, training and skills necessary to meet patient needs

7.1.3. All recruitment and selection Will follow consistent approach using the

recruitment and selection manual approved by the clinic management/ governing

board.

7.2. Staffing Plan

7.2.1. The Clinic has available the minimum staff requirement for medium clinic

7.2.2. For additional staff a staffing plan shall be developed collaboratively by

the different service units and management, which identifies the number and

types of the staff.

7.2.3. The planning process shall use recognizable process for estimating the
staffing need like Workload Indicator for Staffing Need (WISN) method.

7.2.4. The staffing plan shall be reviewed on an ongoing basis and updated as

necessary

7.2.5 MANPOWER REQUIREMENT AND LABOUR COST

Table 2
Monthly
Salary[bir
Ser Requir r]/Employ Total Monthly Annual
No Description ed No ee Salary Salary[birr]
1 CEO 1 4,000.00 4,000.00 48,000.00
2 Nurse 1 2,000.00 2,000.00 24,000.00
3 Health O fficer 1 3,500.00 3,500.00 42,000.00
4 Midwife 1 3,000.00 3,000.00 36,000.00
5 Lab T echnician 1 2,800.00 2,800.00 33,600.00
6 Card R oom S taff 1 2,000.00 2,000.00 24,000.00
24,000.00
7 Cleaner 1 2,000.00 2,000.00
24,000.00
8 Guards 1 2,000.00 2,000.00
Grand T otal 7 21308.00 21300.00 255600.00

7.3. Job Description and Orientations

7.3.1. All staffs will be provided with current written job descriptions and be

oriented to their specific job responsibilities at appointment

7.3.2. The job description will include the title and grade of the position, specific

function of the job, job requirement, reporting mechanism, evaluation criteria

and description of job site and work environment.

7.3.3. The orientation program for all employees will given for

all 7.4. Dress Code and Employee Identification Badge

For areas involving direct patient contact:

7.4.1. Footwear will be safe, supportive, clean, and non-noise producing.

7.4.2. No open toe shoes shall be worn.

7.4.3. Artificial nails are prohibited. Natural nails must be kept short and jewelry

must be kept to a minimum.

7.4.4. Hair must be worn in a way that prevents contamination and does not

present a safety hazard

7.4.5. The dressing will not interfere in any way the service provision

7.4.6. The clinic will specify a particular style and/or color of uniform with

different style/color code; separate for each human resource category, employee

and trainees

7.4.7. The employee will keep the uniform neat, wrinkle free and in good

repair 7.4.8. The clinic be responsible for providing employee identification

badges 7.4.9. The identification badge will be worn at all times while at work and

be easily visible, with name, profession and department facing outward.

8. Financial Analysis

Table 3 Initial Working Capital

S/no Cost It em Annual Co st

1 Raw materials
1.1 Purchase o f R ow C offee 2,241,222.41
2 Administrative Expenses
2.1 Salary and Wages 255,600.00
2.2 Employee benefit 28,116.00
2.3 Pre -service Expense 10,940.00
2.4 Telephone, fax and postal 4,560.00
2.5 Repair and maintenance 5,680.00
2.6 Advertisement 55,680.00
2.7 Stationery and Printing Expense 4,940.00

2.8 cleaning/sanitory 15,680.00

2.9 Miscellaneous Expense 22,900.00
Grand T otal 2,645,318.41

Table 4: Depreciation Schedule

Descriptio Original Depreciatio

SN
Depreciation Depreciatio Depreciation
Depreciation
n Value In Birr n year 1 year 2 n year
3 year 4 year 5
1 Building 5,000,000.00 250,000.00 250,000.00
250,000.00 250,000.00 250,000.00
Computer
2 & Related 18,900.00 4,725.00
4,725.00 4,725.00 4,725.00 4,725.00

Equipmen 1,268,043.19
3 317,010.80
317,010.80 317,010.80 317,010.80
317,010.80
t
Total 6,286,943.19 571,735.80 571,735.80 571,735.80
571,735.80 571,735.80
Table 5: Total Investment cost

Description Cost i n b irr i n B r.

1 Total Fixed Investment Cost 5,018,900.00
2 Investment i n k ind / Inventory
0.00
3 Initial W orking c apital 2,645,318.41
Total Initial Investment Capital 7,664,218.41

Table 6: Estimated Selling price per Patient and Estimated

total Patient to be treated in our clinic

No of
Item
Patient Unit P rice Total P rice
/year
Card /Patient
3,500.00 100.00
Lab/Patient 350,000.0
0
others
3,500.00 350.00
1,225,00
0.00
5,000.00 400.00
2,000,00
0.00
Total
3,575,00
0.00

Dereje Girma Medium Clinic

Sales Projection

Table 7 : Sales Projection

Year 1 year 2 year 3 ar 4 year 5

Revenue 3,575,000.00 4,647,500.00
6,041,750.00 854,275.00 10,210,557.50
Less Cost of good sold 846,436.00

973,401.40 1,119,411.61 1,287,323.35

1,351,689.52 Gross Income

2,728,564.00 3,674,098.60 4,922,338.39

566,951.65 8,858,867.98

Salary and Wages 255,600.00 332,280.00

431,964.00 561,553.20 730,019.16
Employee benefit 28,116.00 36,550.80
47,516.04 61,770.85 80,302.11
Pre -service Expense 10,940.00 14,222.00
18,488.60 24,035.18 31,245.73
Telephone, fax and postal 4,560.00

5,928.00 7,706.40 10,018.32

13,023.82 Repair and maintenance 5,680.00

7,384.00 9,599.20 12,478.96

16,222.65

Advertisement 55,680.00 72,384.00

94,099.20 122,328.96 159,027.65
Stationery and Printing 4,940.00
Expense
6,422.00 8,348.60 10,853.18
14,109.13

Packing Expense 15,680.00 20,384.00

26,499.20 34,448.96 44,783.65
Miscellaneous Expense 22,900.00
29,770.00 38,701.00 50,311.30
65,404.69
Depreciation Expense 571,735.80 571,735.80
571,735.80 571,735.80 571,735.80 Interst
Expense/ margin
456,703.18
cost
384,726.69 298,670.27 195,779.67
72,761.79

Total Expenses 1,432,534.98

1,481,787.29 1,553,328.31 1,655,314.38

1,798,636.17 Profit Before Tax 1,296,029.02

2,192,311.31 3,369,010.08 911,637.27

7,060,231.81 Less Income Tax

435,610.16 749,308.96 1,161,153.53

1,701,073.04 2,453,081.13

Profit after Tax 860,418.86 1,443,002.35

2,207,856.55 3,210,564.22 4,607,150.68

Dereje Girma Medium Clinic

Balance Sheet

Asset C

urrent

Asset

Cash on ha nd 41,980.00
Cash at Ba nk 117,981.00
Inventory at ye ar En d 0.00
Prepayment ren t 0
Account Re ceivables 0
Total Current asset
159,961.00
Fixed Asset
Building 5,000,000.00
Computer & R elated M aterials
18,900.00
Furniture 1,268,043.19
Total Fixed Asset
6,286,943.19
Total Asset
6,446,904.19

Liabiliti

es

Current

Liability

Trade

account

payable

Salary

Payable

Total

Current

Liability

Long-term

Payables

Bank Lo an 4,700,000.00
Total L iability 4,700,000.00
Capital
Owner's E quity 1,746,904.19
Retained Earnings
Total Ca pital 1,746,904.19
Total L iabilities a nd C apital 6,446,904.19

Dereje Girma Medium Clinic

Cash flow

Description Year 0 Year 1

Year 2 Year 3 Year 4

Year 5 Cash Inlow

Equity 1,746,904.19
Bank L oan 4,700,000.00
Revenue 860,418.86 1,443,002.35
2,207,856.55 3,210,564.22 4,607,150.68
Depreciation 571,735.80 571,735.80
571,735.80 571,735.80 571,735.80
Total Cash Inlow 6,446,904.19 1,432,154.66
2,014,738.15 2,779,592.35 3,782,300.02 5,178,886.47
Cash out low
Fixed Co sts 0
Initial Working
2,645,318.41 2,909,850.25
3,200,835.28 3,520,918.80 3,873,010.68
4,260,311.75
Capital
Contin

gency

(Lump

sum)

Loan r epayment 637,051.57

761,670.43 910,667.01 1,088,810.02 1,301,800.97
Total Cash Outlow 2,645,318.41 3,546,901.82
3,962,505.71 4,431,585.81 4,961,820.70 5,562,112.72
Net Cash Flow 3,801,585.78 1,686,838.62
3,540,656.85 -1,651,993.46
--------------------------------------------------------------
383,226.25
1,179,520.68
Cumul
5,488,424.40 9,029,081.25 7,377,087.78
ative 6,197,567.10 5,814,340.85

Balanc

Reward Your Curiosity

Everything you

want to read.

Anytime.

Anywhere. Any

device.

Read free for 30 days

No Commitment. Cancel anytime.

Share this document

    

You might also like

Document 8 pages
Pauly

Project

Taxsolut

ions

OTP No

ratings

yet

Rab Alkes Dak Rsud Muaradua 2023 (1) (1)

Kontol

Lodon

No

ratings

yet

ICU,Anesth and Other Med Equip

Sam

Pattnaik

No

ratings

yet

Book2
RSUD SOLOK
No ratings yet
RAB ALAT MEDIS DAN PENUNJANG MEDIS KEA MEDISTRA 2020

Sultan

Cikupa

No

ratings

yet

11 November 202
Han 007
No ratings yet
Project Proposal for Pharmaceutical Product Legetafo

Tesfaye

Degefa

No

ratings

yet

Money

(adil )

Akhiles

h desai

No

ratings

yet

Broiler Production Benson

Ndubuisi

Chuma

Okeke No

ratings yet

CHAPTER
ferdyanta

_sitepu

No

ratings

yet

2022_july_25_drug price reference index

khara

teano

No

ratings

yet

Poultry Investment
lightfinga
No ratings yet
 Show more

About Supp Legal Social Get our free

ort apps
About Terms Instag
Help /
Scribd Privac ram
FAQ
Press y Twitte
Accessi
Our blog Copyri r
bility
Join our
ght Faceb
Purchas
team!
Cookie ook
e help Preferences
Contact
Do not sell or Pinter
AdChoi
us share my est
ces personal
Invite
information
Publish
friends
ers
Gihs

Scribd
for
• • •
enterprise • • Language: English Cop