Creating a Business Plan Project: Part 2 In this second and final portion of the project, you will create the remaining portions of your business plan and complete a capital budgeting p

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Creating a Business Plan Project – Part 1

Executive summary

Mission Statement

“Our organization is dedicated to enhancing the standard of healthcare services by

fostering innovation, promoting accessibility, and prioritizing patient-centric care. Our

primary objective is to deliver comprehensive and inexpensive medical care solutions to our

local community.”

Products/Services

HealthWave Healthcare aims to offer an extensive range of healthcare services,

encompassing a wide spectrum of medical care options. Our comprehensive range of services

encompasses primary care, specialized medical evaluations, state-of-the-art diagnostic

testing, convenient telemedicine examinations, and carefully tailored wellness initiatives. The

extensive array of services provided guarantees that our esteemed patients receive

comprehensive and individualized care, amalgamating conventional face-to-face

consultations with pioneering virtual healthcare alternatives, all with the objective of

augmenting their welfare and overall health results.

Reason for establishing the company

The motivation behind the establishment of this enterprise is from the belief that

equitable access to high-quality healthcare should be extended to all individuals, rather than

being limited to a privileged few. Given our awareness of the inherent deficiencies within the

healthcare system, we were motivated to intervene and enact constructive transformation.

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The aim of our business is to address the significant disparities in the provision of healthcare

services, with the goal of ensuring that all individuals receive adequate care and are not

excluded from the system. Our motivation stems from our passionate wish to offer top-notch

healthcare as a fundamental entitlement rather than an extravagance.

Business Description

Type of Business

The establishment shall function as a Limited Liability Company (LLC) bearing the

name "HealthWave Healthcare, LLC." This particular legal framework offers notable

benefits, effectively safeguarding its proprietors from personal accountability, all the while

granting them considerable leeway in terms of administration and taxation. HealthWave

Healthcare, operating as a limited liability company (LLC), adeptly amalgamates the

advantageous attributes of a corporation, namely the safeguarding of liability, with the

streamlined operational framework and fiscal advantages typically associated with a

partnership. This practice guarantees that the founders are able to concentrate their efforts on

delivering exceptional healthcare services, while simultaneously safeguarding their personal

assets from potential business hazards.

Industry

HealthWave Healthcare, LLC aims to provide services within the healthcare industry,

a vital and ever-evolving sector that plays a crucial role in promoting societal well-being.

This particular sector encompasses a vast array of services, spanning from primary healthcare

provisions to specialized medical interventions, diagnostic examinations, telemedical

consultations, and programs promoting overall well-being. The industry functions within a

dynamic regulatory environment that undergoes continuous evolution, accompanied by

technology improvements and changing patient expectations. HealthWave Healthcare is

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positioned to make a significant contribution to the healthcare industry through the

implementation of ground-breaking and patient-centric approaches. These approaches are

designed to effectively tackle the evolving healthcare environment, thereby improving the

accessibility, cost-effectiveness, and overall caliber of medical services.

Team Experience

The composition of our founding team comprises of seasoned healthcare

professionals, whose collective expertise spans over four decades within the industry. Our

organization possesses a multifaceted array of proficiencies encompassing the fields of

medicine, healthcare administration, and technological advancements.

Business Goals

Short Term

1. Within its first 2 years in business, HealthWave Healthcare plans to capture 10% of

the regional market (Ginter et al., 2018). The focus of this objective is to solidify ties

and earn the confidence of the locals.

2. In the first year, the organization intends to implement specialized medical

consultations and diagnostic testing services, thereby expanding its repertoire of

offerings to encompass a more comprehensive range of healthcare requirements.

Long-term

1. HealthWave Healthcare plans to grow in the next five years by opening more offices

in nearby areas and having a greater regional and national influence (Ginter et al.,

2018).

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2. The corporation endeavours to forge alliances with indigenous healthcare providers

and entities, thereby cultivating synergy and engendering a holistic healthcare system

that proffers uninterrupted and unified care to patients.

Target Customer

HealthWave Healthcare's target demographic encompasses individuals and families

who are actively seeking medical services that are both easily accessible and financially

feasible, without compromising on the paramount aspect of exceptional quality (Ginter et al.,

2018). These astute individuals place great importance on the factors of convenience and

tailored attention. They may place a high degree of importance on the availability of

telemedicine as a means of conducting consultations, demonstrating a discerning inclination

towards proactive health measures.

Trends and Major Competitors

The healthcare sector is currently undergoing a notable transformation, wherein there

is a discernible inclination towards the adoption of telemedicine and a greater emphasis on

preventive care. This shift can be attributed to the prevailing global circumstances that have

necessitated a re-evaluation of traditional healthcare practices. Prominent competitors within

our geographical area include well-established healthcare entities as well as telemedicine

platforms.

Differentiation

What distinguishes HealthWave Healthcare from its competitors is its unwavering

dedication to a patient-centric methodology, harnessing state-of-the-art technology to

augment the healthcare encounter (Ginter et al., 2018). The prioritization of preventive care

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and the implementation of wellness programs will undoubtedly distinguish us from our

competitors.

Time Value of Money

The time value of money holds paramount significance within the framework of

HealthWave Healthcare, LLC. It acknowledges that money's value varies over time as a

result of things like inflation and possible investment possibilities (Weygandt et al., 2020).

Through an in-depth comprehension of this fundamental principle, the organization is

empowered to make judicious and discerning choices pertaining to its financial matters

(Weygandt et al., 2020). For example, they will evaluate the financial benefits of purchasing

medical equipment, establish competitive prices, and choose the best time to expand. This

tactical use of time value of money guarantees prudent resource allocation, which eventually

boosts profitability and fosters long-term growth for the business.

Financial Tools

Four Key Financial Statements

Income Statement – This statement will offer a concise overview of our monetary inflows,

expenditures, and resultant profitability within a designated timeframe (Zutter & Smart,

2022). It facilitates the monitoring of our financial viability.

Balance Sheet – The balance sheet will present an overview of our organization's financial

status, encompassing its assets, liabilities, and equity.

Cash Flow Statement – This statement effectively monitors the inflow and outflow of money

within the confines of our enterprise (Zutter & Smart, 2022). It is essential for maintaining

liquidity and making sure we have the money to pay our debts.

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Budgeted Financial Statement – As a new enterprise grappling with constrained resources,

we shall place substantial reliance on the practice of budgeting to judiciously apportion our

financial reservoirs (Zutter & Smart, 2022). The utilization of a budgeted financial statement

will provide a framework for making informed judgments regarding our expenditures and

investments.

Critical Ratios

Liquidity Ratio (Current ration) – This particular ratio serves as an indicator of our

capacity to fulfil immediate financial obligations. A more elevated current ratio is deemed

more desirable, as it signifies enhanced liquidity.

Profit Margin Ratio – This ratio quantifies the proportion of every unit of currency earned as

revenue that is ultimately converted into net profit (Weygandt et al., 2020). It aids in the

evaluation of the business viability.

Debt-to-Equity ratio – This ratio provides insight into the relative share of debt utilized for

the purpose of financing our activities in comparison to equity (Weygandt et al., 2020). It is

necessary for determining the level of financial advantage and risk that we are at.

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References

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health

care organizations. John Wiley & Sons.

Weygandt, J. J., Kimmel, P. D., & Aly, I. M. (2020). Managerial Accounting: Tools for

Business Decision-Making. John Wiley & Sons.

Zutter, C. J., & Smart, S. B. (2022). Principles of managerial finance (16th ed.).

Pearson. https://online.vitalsource.com/#/books/9780136945666