A Start-up Business Plan - Mediequip, Inc. - Free Essay Example

Sample details Pages: 3 Words: 1019 Downloads: 3 Date added: 2017/06/26 Category Business Essay Type Case study Did you like this example? Executive Summary: Mediequip, Inc. is a medical device development company, completely owned by Mr.XYZ at the time of start-up by holding 100% interest in the company that intends to design, patent, and market medical devices related to nuclear medicine imaging niche markets. The company intends to design Positron Emission Tomography scanners by using specialized automated innovative techniques for manufacturing to cut back prices while at the same time upholding quality, to cut back costs in order to support company achieving a competitive place in market through COST LEADERSHIP strategy to Growth. Don’t waste time! Our writers will create an original "A Start-up Business Plan Mediequip, Inc." essay for you Create order The key elements in the Start-up plan for Mediequip are: The legal fee for filing patent applications for manufacturing process The registration fee for intellectual property owned by company. The location and place of doing business. Salary for the key managers and founders. $250,000 was raised from the initial investor for these purposes. This funding came in in early 2014 and these tasks have either been completed successfully or are in the final process of completion. These are treated purely as start-up expenses by this plan. $128,000 is treated as cash-on-hand as of the start of this plan on January 1, 2014. The remainder of the start-up capital required as well as capital required for the continuation of operations in the first six months will be provided by a bank loan and a bank overdraft facility. The capital obtained from these arrangements is expected to total an additional $700,000 and the plan calls for this cash to be infused in May and December, 2014. Mediequip, Inc. business offices are at 1234 Main Street, Any town, U.S.A. Phone is. Fax is. These offices are leased month-to-month on a temporary basis. This business plan calls for the establishment of corporate offices, RD facilities, and prototype and small-run manufacturing facilit ies. These facilities are to be located in Puerto Rico with 10,000 sq. ft. initially expandable to 30,000 sq. Rental costs in Puerto Rico range from $1.75 to $4.00 per sq. ft. currently available space in Puerto Rico may also be used on a joint-venture basis to be negotiated. Currently the main competition faced by company is from three large competitors namely General Electric, Siemens and Phillips Healthcare. Over the past five years, the PET Scanner Manufacturing industry has experienced growth, thanks to a rise in PET utilization among the industrys downstream markets. In particular, PET scanner utilization among oncologists has been high, because PET scanners can be used to diagnose and determine the stages of many types of cancer. During the five years to 2019, industry revenue is forecast to grow at an annualized rate of 5.9% to $8.8 billion. In particular, as PET scanner manufacturers focus on improving the quality and quantity of information that can be gathered in a sin gle scan, healthcare providers will be able to provide more streamlined care, stimulating demand for industry products. Market share concentration in the industry is high as IBIS World estimates that the top three industry players, GE, Siemens and Philips, hold a combined market share of 84.3% of total industry revenue in 2014. PET scanner manufacturers incur significant costs related to purchasing gamma cameras and input commodities, such as chemical elements like lutetium oxyortho silicate. As a result, many of these companies are multinational conglomerates, which produce these items in house. The use of radiopharmaceuticals is also essential to PET scanning procedures and a majority of industry operators also produce these drugs purposed for molecular imaging Industry Statistics and Market Size: 1 Revenue $ 7 bn 2 Annual Growth till 2014 2.3 % 3 Employment 16134 4 Businesses 135 About Company: Vision Statement: To be a leading company in producing medical devices by reshaping and revisiting the concept of manufacturing and changing this to manufacturing with quality. We aim to serve the humanity, by providing people with the best possible health facilities and revolutionize the medical equipment world by bringing the best medical practitioners and best business administrators and this culminating into a World à ¢Ã¢â€š ¬Ã¢â‚¬Å"Class business venture providing economical quality machines. We aim to satisfy our entire stakeholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s, specially our employees and we extend the idea of stake in organization to the society as a whole. We assume our Corporate Social Responsibility by committing a specific percentage of our profits to GREEN ideas and we encourage eco-friendly manufacturing of machines to preserve nature. Mission Statement: Our mission is to be a Gold Standard provider of medical equipment and our company will focus on the Future of Radiology, demonstrating specific ways in which it is meeting the various evolving needs of healthcare and to lead the market by Providing exceptional value, uncompromising quality and incomparable services to our customers. Continuously evaluating our customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s needs and creating new or enhanced services to our customers Creating solid and enduring relationships with our customers through our continuous commitment to meeting and exceeding their expectations. Objectives: To Convert negative to positive cash flows within the 1st year of trading To achieve ISO standards manufacturing systems and procedures within 6 months of manufacturing To achieve annual growth above the industry average To provide our employees , best workplace conditions and a promising reward system with robust career growth To provide employment to un-employed people by moving manufacturing facilities to the areas with high number of un-employment ratio To expand our business geographically and moving into the areas with poor health facilities Joining hands with UNICEF to provide medical equipmentà ¢Ã¢â€š ¬Ã¢â€ž ¢s to those countries which are in warfare or are currently economically in a bust, at below average rates which those countries could easily afford Company Background: The idea to setup a company like mediequip came into my mind due to entrepreneurial nature of mine and me following à ¢Ã¢â€š ¬Ã…“freewheeling opportunismà ¢Ã¢â€š ¬Ã‚  style. The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s idea was triggered mainly by my nature and passion towards healthcare and Medical field, and the reason was supported by one of major manufacturers of PET scanners ceasing manufacturing of these machines thus leaving a huge gap in market. Company started trading on 30 June 2014 and successfully completed its half year of trading under the supervision of a professional team lead by à ¢Ã¢â€š ¬Ã…“M.D nameà ¢Ã¢â€š ¬Ã‚ . Loss for the first six month is $150,000 and company expects to cover this by achieving economies of scale up to the year end