The Existing Market for CAM in the UK - Essay Example

? Business Portfolio Table of Contents Business Portfolio Table of Contents 2 Section Business Concept 4 Business Concept Summary: 4 Section 2: Market Analysis 6 Introduction 6 Industry/market review: 6 PEST Analysis: 8 Opportunities and Threats 13 Regulatory frame work: Message therapy 15 Ethical Issues 15 Interested stakeholders 16 Section 3- Marketing and Communication Plan and Strategy 17 Competitor analysis 17 Analysis and Evaluation of data 19 Analysis of target market 19 Key Factors affecting success of the CAM among target customers 21 Benefits sought 21 Company values 22 Positioning statement 22 Competitive advantages 22 Pricing plan and policies 23 Marketing goals and objectives 23 Marketing Strategies 24 Future plans 26 Conclusion 28 Appendices 29 Reference List 34 Section 1: Business Concept I intend to start practicing Herbal Medicine as an independent business. I would operate from my home, offering massage therapy and also sell homemade herbal products. It would increase revenue and also widen my client base. I have an existing business of homemade soaps, aromatherapy oils and other cosmetics. I am not in the economic position to pursue this business immediately. I will be working as a massage therapist for a spa part time. It would be a source of part time income. Since herbal medicine practice requires low administration and does not require investment in capital goods, this option seems most viable for me. I would act as a sole proprietor and intend to use my house as an asset. Currently, I do not have plans to employ other individuals for the maintenance of the business. I would expand my business gradually and repay all debts gradually so as to avoid running into any big debt. This would keep me away from any major financial loss. I have completed a personal finance sheet in class that has helped me to assess the start up costs essential to my practice (Appendix 1). I have evaluated the initial financial plan to build a strategy outline for my business. Given below are my personal business concept and a concise summary of my business strategy. Business Concept Summary: To work as a massage therapist in a well known spa clinic (as a part time employee). For my own business I am particularly interested in specializing in Aromatherapy massage, hot stone massage, yoga and Pregnancy Massage. My current engagement in the Spa as a message therapist would help me to gain the essential evidence to run my business successfully later on. To take up the job of freelance massage therapist in my free time in local health spas in my region. This would enrich my experience and also provide me the much required financial support. To save a proportion of the income earned from these engagements and invest the saving to make a set up in my house for starting my business as an Herbal Medicine practitioner. To furnish the three rooms in the ground floor of my house and set them up as the massage centre and the retiring room. My house is located in central London near a big shopping complex. I have already been trading in home made products from my place, which implies that my place has already gained popularity in the locality. I have a good customer base. Besides, there is no specialist herbal medicine therapist practising in the locality. To make massage therapy accessible to the target market, such as, obese people, pregnant women and women with gynaecological disorder, through routine massage schedules and also by conducting special workshops for people that belong to the lower income class. I also intend to provide service in the workshops delivered by the National Childbirth Trust (NCT) in London and its outskirts. I do not intend to limit my practice to some particular clients. However, I desire to put special attention on women and children, since I have found out through thorough research that there is a gap in the market in terms of facilities available to the female population in the low income group. Therefore, these areas have caught my special interest and the in-class discussion has further helped me in converting my interest into concrete business plan for my practice. Through the discussion I have also come realize the client base that I already have on account of the broad local network of existing and potential clients to whom I currently sell soaps and aromatherapy oils. Section 2: Market Analysis Introduction Some of the essential knowledge regarding new business includes information on the current facts related to the general market trends and the economic situation in the country in which the start up business is to be made. This would help the entrepreneur to remain competitive, be conscious of the impending risks and long term threats and also cater to the customers in accordance to their needs and preferences. The next section provides a detailed analysis of the market for CAM (complementary and alternative medicine) in UK and these data have been utilized to evaluate the status of massage and therapy industry in the country. In addition, the potential customer base has been analysed to assess the potential market for my business venture. In certain cases, enough information related to the industry in UK is either limited or is not available. In these cases, information from other developed countries, like, Australia or America has been used make estimates regarding the heterogeneity existing in the CAM industry in the UK (Ernst, 1999). Industry/market review: Industry size in UK The Cam industry in the UK is has comparatively new and has been growing since rapidly since 2007. The industry has grown at a rate of almost 18 percent till 2009 (Mintel, 2009). However, the financial crisis of 2007 - 2009 has affected the industry adversely and the growth rate has dropped since 2009. Among the total adult population in the country, between the years 2008 and 2009, 12 million adults have been reported to be the existing customers of the total CAM market (Mintel, 2009). It has been forecasted that this sector is set to grow by 33 percent between the years 2009 and 2014 (Mintel, 2009). Revenue generated in CAM industry The CAM industry has grown in value since the 2007. As it has gained popularity, value of the industry has increased with the number of customer following (Owens, 2001). In 2009, the gross value of this industry as estimated in revenue terms has been ?213 million (Mintel, 2009). However, the economic slump is expected to have cast influence on the sector, although the exact influence has not been revealed yet. According to some analysts, tension within the industry has increased and growth levels have fallen (Cobweb, 2008). Customers base for CAM industry It has to be found that the CAM user in the UK are mostly females and recent research findings shows that they belong to the age bracket of 35 years to 44 years. The socio-economic group that makes the highest amount of spending on these products are the professionals that have good income from high paid employments and therefore have high disposable income. (Thomas, Nicholl and Coleman, 2001; Ong and Banks, 2003). There is lack of spending from the middle income earners. According to certain reliable sources, 79 percent of the CAM has been purchased by customers that are well off and did not receive any financial assistance from the government (Mintel, 2009). Patients visit It has been found by the survey conducted by the UK National Omnibus that 10.6 percent of the total population in the UK pay at least one visit to CAM therapists every year (Thomas and Coleman, 2004). Average number of visits by the patients that are above 18 years of age is between 2 to 5 (Ong & Banks, 2003). It has been estimated that in the next decade, one person out of four randomly chosen persons in the UK would be a CAM user. CAM for gynaecological disorder In a recent survey on midwives in the UK 70 percent of the respondents gave positive responses with regard to the positive benefits accruing to pregnant women from use of CAM (Mitchell et al., 2005). Accurate statistics for CAM usage in UK households is not available, particularly for the low income population. Experts opine that CAM usage is prevalent in the country among pregnant women in mainly the high income households (Tiran, 2005; Cobweb, 2008). In other developed countries, such as, America and Australia, 16 percent and 30 percent of women use CAM during and after pregnancy (Gibson, Powrie and Star, 2001; Skouteris et al., 2008). CAM for children with obesity CAM use has been prevalent in the UK since the mid 2000s and is increasingly becoming popular in use for children with health problems like diabetes and obesity (Cobweb, 2006; Crawford et al., 2006). Factors that primarily dictate the use of CAM for growing children include parents’ own satisfaction with CAM (which has been estimated at 45% to 59%) and also the socioeconomic background of the household (Ernst, 1999: Johnston Bilbao and Graham-Brown, 2003). Sex or age of children does not determine usage of CAM. Almost 59% of children in the high and middle income class are found to be obese (Ernst, 1999). They are given CAM treatment rather than conventional medicines. Children belonging to the living in other areas also complain about allergic problems. Low food intake or improper diet results in lack of vitamins D and E, minerals, anti-oxidants and omega 3 in the mother that sometimes causes health issues in children. PEST Analysis: Political: Economical: The main concern regarding CAM practicing in the UK is registration of the practitioners, regulation of quality of practice and proper training (House of Commons Report, 2000) In general, in the country under Common law, CAM practitioners are allowed to practice under few legal limitations (Kings Fund, 2008) However, they are restricted by the New Advertising Standards about making advertisements. They cannot advertise on the social media by making claims to cure specific health issues. A standard has been set by The Complementary and Natural Healthcare Council (CNHC) to maintain the quality of service provided by CAM practitioners in order to ensure patient protection. NHS would receive ?20 million as grant from the government between 2011 and 2014 for maintaining excellence of service provided (NHS, 2011). UK has been recovering at a slow pace and consumer confidence is at a record low level since 2011 While the economy is experiencing slow economic growth, the first quarter of 2013 has depicted contraction (Bank of England, 2012). There are uncertainties in the business front of the entire Euro zone, which poses considerable threat. Most of the CAM consultations in UK are not big health centres or hospitals. These are private settings made by private practitioners. Therefore patients themselves need to pay for CAM treatments (Kings Fund, 2008). Size of the market becomes difficult to estimate since data is mainly available for OTCs sales. Estimate of CAM consultations in the country is difficult to obtain (Mintel, 2009). Social: Technological: Common man is becoming increasingly aware of the negative effects of conventional medicine and is therefore becoming more inclined to consumption of complementary and alternative medicine. This shows that public view about CAM is improving (Mintel, 2009). The problem of overweight is increasing during pregnancy in the UK (NHS, 2011). Birth rate is increasing in the UK since 1999 (ONS, 2012a). This shows that the CAM industry has good prospects in the near future. Social recognition of CAM is increasing with larger incidences of celebrities endorsing CAM therapies. The practice of CAM is rising in the UK and asong with it the industry is increasingly coming under media scrutiny. In UK, CAM is mostly being used by the female population aged between 30 years and 45years. Besides, almost all these people are highly educated and belong to the high income class (Cobweb, 2008). Since direct marketing or advertisements are restricted, recommendation through informal public networks plays a major role in this industry. Internet plays an important role in terms medical treatments and advices for better health. This is a good source of information regarding CAM; potential customers can get to know about the benefits and the any possible negative effects of this treatment on the internet. There have been vast technological advances in modern biomedical sciences. This shows that changes are likely to happen in the lifestyle of the population. Modern technological knowhow allows ground breaking research in this field thereby making more new inventions that would help the alternative medicine practitioners (Blackburn, Tisty and Lippman, 2010). Technological advances develop cost reducing measures. This helps CAM practitioners since these set ups are generally small businesses run by private individuals. Lower costs allow them to increase productivity. The internet provides practitioners with online databases that help them to keep them updated on the modern developments in the field of alternative medicines. It also helps in the practice by making diagnosis and treatment more scientific and customised. Political There is lack of evidence in the CAM industry about the actual number of CAM users. Therefore there is need of good quality and reliable data regarding CAM usage by pregnant women in the country (NICE, 2008). Respect towards women’s rights is preserved. They are provided with full information and are therefore free to make choice about seeking advice or treatment from registered CAM therapist (NICE, 2008). Diet and lifestyle puts serious impact on health of women before conceiving, during pregnancy and after delivery of baby. Lifestyle and habits of children cause serious problems like diabetes and obesity. This fact is well recognised in the country (Department of Health, 2010). Economical: Although Cam is popular in the UK, cost of treatment is high, which restricts it to users belonging to the high income group. The recession of 2007 has hurt the country’s economy; middle-income class is affected the most. The South East UK and London are expected to recover faster than the other regions (Experian, 2012). Social: Birth rate in the UK shows consistent growth since the 1999. Among women in the age bracket of 15 years to 44 years, fertility rate in 2010 was 1.9 children per woman (ONS, 2012a). This shows the CAM industry has good prospects of growth in the near future. Figure: Birth rate trend in London (Source: London’s Poverty Profile, 2011) Problem of weight is faced by many women in the UK before and/or after pregnancy. They seek CAM treatment for this problem (Department of Health, 2010). Recently people have become conscious of the side effects of the pharmaceutical medicines. They are therefore increasingly switching to CAM. It induces a feeling of better self care. Parents therefore take their children to CAM practitioners for any health related problems (Crawford et al., 2006). Technological: Conventional medicines are found to cast adverse potential impact on foetus. Therefore pregnant women are recommended to avoid using conventional drugs whenever possible (NICE, 2008). Surveys show that the majority of pregnant women, that have used CAM, rate it as effective and also less invasive (Woolhouse, 2006) Opportunities and Threats Opportunities: Threats: 35 % of the primary health care organisations in the UK provide access to CAM facilities (Thomas and Coleman, 2004). Provisions are being made for certain forms of CAM treatment to be covered under medical insurance. BUPA provides coverage of ?250 (Kings Fund, 2008) Currently it has been made a custom that CAM should be taught in schools and colleges to make this trend well known to the common mass right from their childhood. The General Medical Council (GMC) in the UK looks into this matter. CAM practitioners in the country has the opportunity to preach disease prevention measures since they operate at the local level and have long networks (Kings Fund, 2008) Increased acceptance of combined qualitative and quantitative research methods for CAM evidence base research (Wilson et al., 2002). CAM researchers are encouraged to make more researches in this field. Strategy Research and Development organization was established in 2007 to provide more research opportunities to the CAM researchers (Robinson and Lewith, 2011). Although CAM is becoming more popular with the passing of the day, particular interest in massage therapy is not yet fully developed (Ong & Banks, 2003). Highly reliable data regarding the efficiency of CAM is not available in the context of UK. Therefore more evidence is needed before this field can be integrated into public healthcare. Out of total government budget on medical research only 0.0085% is allocated for CAM (Kings Fund, 2008) Since conventional medicine is prevalent in the country for long years, alternative medicines have not been well acknowledged in the country as cure for various ailments. Cam suffers in this competition with conventional medicine (Ernst et al., 1999) Due to lack of evidence, CAM has not been considered the standard cure for various diseases. In message therapy practice and yoga practice, certain practitioners earn a bad name by providing unprofessional service and practicing in unethical way. This harms the reputation of the entire industry. CAM practitioners often do not hold high degree certificates from very reputed institutions. Such high level educations are not made on CAM and they therefore take the backseat in the competition with their conventional medicine competitors. Regulatory frame work: Message therapy Under Common Rule in the UK, massage therapists can freely practice in the country (King’s Fund, 2008). The principle regulatory body in the country that looks after alternative treatments in the UK are is Complementary and Natural Healthcare Council (CNHC). CNHC (2012) aims at quality assurance and maintain a process of quality testing through complaints processing to increase patient satisfaction (Smith, 2010). Ethical Issues Common Law in the UK enables anyone to practice as a CAM practitioner provided no claims are made of being a registered medical practitioner (Mills, 2001). The common Law allows general practitioners (GPs) to freely practice which implies that they are responsible for the kind of service they provide. The GPs are liable for any kind of harm caused to the patients (General Medical Council, 2003; British Medical Association, 2006). Since data is not available in detail, the extent of true benefits and risks is not supported by empirical evidence (Smith, 2010). However, in UK only doctors can legally take the sole responsibility of a woman during her pregnancy and delivery. Other therapies would remain complementary (Smith, 2010). Interested stakeholders I would be the sole proprietor of my business and my family members would be legally responsible for business debts My patients would be women and children and their families that belong the low income class in London. Employers of the health care centres in my region, spas, NGOs catering to the low income group families and the midwives. Local businesses, such as complementary medicine shops, would be hold significant stake in my business. The HRMC would be another stakeholder owing to the tax paid on earning. Section 3- Marketing and Communication Plan and Strategy Competitor analysis The main competition for CAM practitioners is created both within the segment of CAM practitioners and outside the segment from the conventional medicine practitioners. Competitors include medical advisers on natural or botanical products, massage therapists, reflexology specialists, yoga advisors, meditation and tai chi practitioners, hypnotherapists, practitioners of magnet therapy and Reiki (NIH senior health, n.d.). Information has been collected by using different methods, such as, telephone, social media survey, face to face discussions and email survey. Table: Competitor analysis research in local area Services Fees/Pricing policy Conditions treated/ specialities Years in practice/ weekly clients Promotional tools Adviser of botanical products ?35 Preliminary (40 minutes) ?30 Follow up (30 minutes) Daily dietary supplements, vitamins and pro-biotic 20 years 30+ clients a week Massage therapist ?47 to ?50 preliminary (60 minutes) ?35 Follow up (45 minutes) Massage for cramped muscles, children, normal stress reliever 10yrs 3-5 clients a week Reflexology specialist ?40 to ?45 Preliminary (60 minutes) ?35 Follow up (45 minutes) Stress relieving treatment, heal strained body parts 3 years 2-5 clients a week Yoga advisor ?50 Preliminary (90 minutes) ?45 Follow up (60 minutes) Obesity, Proper breathing and relaxation, heal digestive disorders 15 years 25+ clients a week Tai chi advisor ?45 Preliminary (60 minutes) ?37 - ?40 Follow up (40 minutes) Enhance muscle activity in elderly people, improve overall well being 5 years 10+ clients a week Hypnotherapist ?45 preliminary (45 minutes) ?35 Follow up (30 minutes) Behavioural therapy and psychological therapy 2 years 4-5 clients a week Reiki specialist ?50 preliminary (60 minutes) ?45 Follow up (45 minutes) Treating abdominal pain, obesity, inflammation 1 year 3-4 clients a week Analysis and Evaluation of data Most practitioners provide service for a wide range of conditions. Some of them have specific set ups for children and pregnant ladies. All these practitioners offer on an average three types of therapies. Average period of practicing is greater than 5 years. Message therapy for pregnant ladies is not practised. My service would be unique in this regard. I intend to collaborate with some of my competitors in the first two years of practicing. This would enable to benefit from their valuable experience. Analysis of target market Geographic – I would primarily cater to the patients in London. In London, CAM is well known but, is not practiced widely for pregnant ladies. At least 40% areas in London are deprived of CAM services (Appleby, 2013). Demographic – There is a large reserve of working population group and also children between 0 to18 years of age (ONS, 2012). Population in this age group often consume fast food and therefore many of them are obese. General birth rate in the UK has increased consistently since 1999 (ONS, 2012). The population accessing CAM in London is mainly female and belong to the middle age group. Unemployment rate has increased in the UK in the second quarter of 2013. There is highest employment rate in North East region (74.8%) of UK (ONS, 2013). Figure: Unemployment trend in UK (Source: Economics help, 2013) Psychographic – Private spending on health care is less by the people belonging to the low income class (Emmerson, Frayne and Goodman, 2000). Only the well educated section of the population has made higher proportion of expenditure on CAM than on conventional medicines (Emmerson, Frayne and Goodman, 2000). Governmet spending on healthcare in the UK has been nearly 7.7 percent in 2012 (Appleby, 2013). Key Factors affecting success of the CAM among target customers The general CAM customer belongs to the well educated high income female in the age group of 30-50years. Distribution of leaflets in the shop and offer of free treatment would encourage the use of CAM among the low income class. Data generated by ACORN indicates that customers reveal general preference is shifting towards healthy eating. More people are getting interested in accessing alternative therapy rather than conventional medicines and treatment. Workshops would be held regularly with the health establishments and birth centres in the locality would and increase awareness and make the treatment accessible to more number of people. Networking on the Internet would also spread the word about my practice and attract good number of patients. Benefits sought Patients seek various kinds of benefits from CAM treatment. Certain health problems, such as, common pregnancy symptoms, postnatal symptoms, diabetes and obesity have been found to receive better cure through massage and yoga treatment. It has been rated as less invasive than other pharmaceuticals treatments generally received during pregnancy. Many common illnesses occurring among children can be cured in a better way without side effects through CAM therapy. Many side effects can be avoided by not using the conventional pharmaceutical medicines. Company values Company values play an important role in the industry which is not yet fully developed. Company values lie in Professional dealing with the patients Respectful attitude towards the individual Collaborative operation during the management of workshops Empowering the public by educating them Promoting preventative measures proactively so that many of the common illnesses might be prevented from occurring Multidisciplinary clinic enhances chances of patients traffic into the clinic and it would also spread name of the clinic through the network of customers Positioning statement Being a mother and a message therapist I can combine personal experience with professional expertise to help would be mothers and their families to find safe and gentle solutions to common as well as unique problems with the support of collaborating Primary Healthcare providers. Competitive advantages Expertise and training – Well trained from a well known academic institution in London Extensive local network – Owing to the wide client base from my existing business I would be able to start my business on the basis of this client base. Obese children are found in the school in which my child studies. The network can be extended among my child’s nursery group and playgroups and other local schools. I share a good rapport with the staff of the birthing centre in my locality and have a good network with mothers in my arena. I have good understanding of CAM (its benefits and limitations) since I have firsthand experience of using CAM during my pregnancy. In my locality there is no CAM practitioner who offers services to pregnant ladies or new mothers. Pricing plan and policies Own practice pricing Preliminary consultation - ?46 for adults (for 90 minutes session), ?25 for children (40mins session) Follow up consultation - ?37 for adults, ?20 for children Aromatherapy - ?40 for 60 minutes Workshops – Rate: ?10 per person Family discount - 15% for first member, 20% for second member onwards Referral - 15% discount for a referral (from other therapists or friends, not for family members) Marketing goals and objectives Quantitative Qualitative To run three workshops for prenatal and postnatal patients, each workshop would be meant for 10 participants. To cater to 10 patients in the first year of my practicing, out of which, there would be minimum 3 pregnant ladies. I would make 14 follow-up therapy sessions for the patients. To see 5 new patients who are children within my first year of practicing with 10 follow up visits. To work as a massage therapist in a number of well known spas and massage parlours. This would enrich my experience as well as help me to gain the financial support for the establishment of my own massage clinic. To enhance my qualification as a massage specialist. In the second year of my practice I would add a professional degree which would increase the value of my practice. To act part time in an NGO and offer treatment to low income population free of cost or at very low rates. Marketing Strategies Method To help achieve which goal/objective Specific medium/method When Market research To identify the right kind of workshops required for the local patients and list the most preferred services in the locality on which the workshop should be conducted. Interviews at social groups, birth centres and children’s schools September 2013 onwards Design website/blog To act as a shop window for lead generation and provide info for existing clients Through friend’s web-hosting/design company specifically for CAM practitioners September 2013 Social media channels To provide information and advice to my current clients on CAM and counsel them with regard to their health necessities. My personal Face book and Twitter/ page I can also create profiles on my father’s online community accounts June 2012 - ongoing Business cards For contacting new clients at family occasions and social clubs Give out at least 10 cards per week September 2013 - ongoing Leaflets To be distributed in front of schools, health spas and health centers to inform them about my practice Distribute a nephew’s school, local nursery, medicine shops and heath spas December 2012 - ongoing Meetings with CAM therapists practicing nearby To develop a client base through referral network Conduct workshops in collaboration with these therapists and discuss with them about their practices and the new innovations upcoming in this field. December 2012- ongoing Free massage sessions They are primary agents for providing referral and creating a solid network. Free massage to clients of my current business November 2013 Word of mouth Word of mouth is a strong motivating factor for use of CAM Offer a 10% discount to clients on their next session who arrive on referral June 2012 - Ongoing Networking To build a network of loyal clients and offer discounts to clients of therapists collaborating with me Attend local social events and meetings held for women small scale entrepreneur once in two months to develop relationship with them December 2012 - ongoing Audit practice To improve quality of service to clients Request clients to fill up questionnaires Evaluation the information after workshops November 2013 Future plans ANSOFF MATRIX Market penetration Product development I have planned to acquire a new client base for my practice during the first 2 years. This would consist of regular clients; pregnant women, children, diabetic patients and also patients in the families of my clients. Word of mouth and workshops would be the key source of advertisement for my practice. Referrals by key stakeholders, and benefited patients in the short term workshops would form the primary network for my business. Besides practising, I would actively contribute to the ongoing research work on CAM. I intend to complete PhD on pregnancy massage and related therapy in the next four years. As a part of specialist offering, I would also like to provide infertility support to women. Market development Diversification For developing the market, I would offer to make workshops with different hospitals, children specialists, birth centres and health care centres in and around London. Besides, I would continue my own practice from the set up at my home. I would also tie up with three schools in my locality and conduct workshops for these children and their parents. I would also provide self care trainings to medical professionals, medical students and mid wives, at the workshops conducted at health care centres. While pursuing PhD I would add a diploma on teaching so that I can take lecture sessions on CAM in graduate institutions and medical colleges. It would also help me to instruct junior level CAM practitioners at health centres in which I would work. As an addition to my qualifications, I would acquire a diploma in herbal medicine before I start working on my PhD thesis. It would help me make better use of herbs in my therapy services. Conclusion This business portfolio has allowed me to gain valuable experience at the starting of my practice. I have gained clarity in understanding of the demographic characteristics of the existing market for CAM in the UK. It has enabled me to identify the prospective market for my business and formulate the ways in which I would be able to market my business in the initial stage. I have gained superior understanding of the threats in the CAM industry and also the opportunities that I should grab for enhancing the performance of my business (Haag, 1998). I have put all efforts to make an utmost realistic plan for my business, which would help me while setting up the business in course of time. Additionally, I have got the opportunity to talk to local practitioners and receive their valuable advice. Appendices Appendix 1 – Personal Finance worksheet Start-up costs: Cost Type Amount Source Consulting and dispensary room Therapy/massage couch ?99.95 Amazone.co.uk Desk/work station ?110 Ikea Chair (?35x 3) ?105 Ikea Filling cabinet (lockable) ?66.26 Amazon.co.uk Privacy screen ?139 Natural living.co.uk Coat stand ?20 Ikea Wall shelving units and work bench ? 140 Ikea Flammable storage cabinet for schedule 3 and high alcohol content herbs ?126 Seltekwarehouse.co.uk Subtotal ?806.21 Communications and IT Computer and software ?0 Already have (from previous business) Printer and scanner ?0 Already have Telephone(existing number ?30 per month) 40% claimable business use ?144 per year EE Subtotal ?144 Diagnostic and general equipment Stethoscope ?0 Already have Sphygmomanometer ?35.34 Medisave.co.uk Ophthalmoscope and Otoscope set ?149.99 Amazon.co.uk Electronic kitchen scale ?24.99 Amazon.co.uk Weight scale (for patient) ?20 Amazon.co.uk Wall mounted height measure ?13.02 Amazon.co.uk Pestle and mortar ?0 Already have Stainless steel touch bin ?18 Asda home Couch roll ?4.65 Amazon.co.uk Urinary stick (x50) urine sample pots(x300) ?10.76 ?46.86 Medisave.co.uk First aids kit ?0 Already have Fire extinguisher ?14.99 Amazon.co.uk Small fridge (for herbal materials e.g. creams, aromatic water etc) ?99.40 Amazon.co.uk Dispensing equipment Silicone spatulas set x 2 ?5.60 Amazone.co.uk Hand whisk ?0 Already have Measuring jugs ?0 Already have Glass measuring cylinders: 250ml, 100ml, 25ml and 10ml ?30.63 Ebay.co.uk Amber Glass dispensing bottles 10ml dropper x 25 100ml x 25 300ml x 25 500ml x 24 1000ml x 20 ?14.70 ?8.78 ?13.28 ?47.81 ?58.75 Ampulla.co.uk Amber Glass dispensing jars 30ml x 25 60ml x 30 100ml x 25 ?14.06 ?23.79 ?23.84 Ampulla.co.uk Airtight glass containers/jars pack of 6 x 5 ?93.45 Jbconline.co.uk Subtotal 772.69 Stock Herbal tinctures ?300 budget Organic Herb Trading Co Dried herbs ?200 budget Avicenna Creams0 ?100 budget Avicenna Infused oils ?100 budget Avicenna Essential oils ?100 budget Avicenna Fixed carrier oils: ? 50 budget Avicenna Stationary Invoice Book (50 per book) ?10.74 Staples.co.uk A4 Paper (2000per pack x 2) ?44.24 Staples.co.uk Labels (multi-purpose 100sheets x2) = 1800 per pack ?21.98 Staples.co.uk Document suspension file (pack of 50) ?14.46 Amazon.co.uk Dispensing bags various sizes (72) ?26.32 Rapidonline.com Envelopes pack of 500 ?15.99 Staples.co.uk First class tamps x 100 ?54 Staples.co.uk A4 cards (pack 0f 250 x 3) ?49.32 Staples.co.uk Printer Cartridges x3 ?47.05 Staples.co.uk Subtotal ?1134.10 Marketing Website: Web design, Development and logo Domain name per year Web hosting ?0 ?3.54 ?66.39 My brother Fasthost.co.uk Fasthost.co.uk Business Cards ?0 My brother and myself Leaflets (foldable, double sided) ?0 My brother and myself Subtotal ?69.93 Licences/ continuing professional development NIMH membership (insurance and CRB check included) ?328.452 The National Institute of Medical Herbalist Premises, Local borough license ?0 www.gov.uk CPD events ?40 The National Institute of Medical Herbalist Subtotal ?368.452 Miscellaneous Business account ?0 Lloyds TSB Subtotal ?0 Total of start-up costs ?3,295.382 Appendix 2: Start up costs YEAR ONE YEAR TWO YEAR THREE Consultation sales: Herbal preparation sales: (See justification) GROSS SALES -Less any COST OF SALES ?4,500 ?3,384 ?7,884 ?971.94 ?8,190 ?4,737.60 ?12,927.60 ?1,189.99 ?11,460 ?6,627 ?18,087 ?1,287.91 = GROSS PROFIT (Margin) ?6,912.06 ?11,737.61 ?16,799.09 OPERATING EXPENSES Professional membership Communication CPD Marketing Stationary Others ?328.43 ?144 ?40 ?97.53 ?141.42 ?4.65 ?338.94 ?144 ?80 ?97.53 ?275.19 ?4.65 ?409.42 ?144 ?80 ?97.53 ?275.19 ?4.65 Total Operating Expenses ?756.03 ?940.31 ?1,010.79 Net Profit Before Taxes ?6,156.03 ?10,797.30 ?15,788.30 Appendix 3: Justification of income statement Gross sales Consultation fees: Consultation fees Adult children Concession 25% discount Initial appointment ?60 ?35 ?45 Follow up ?45 ?30 ?35 *Cancellation charge less than 24hours 50% apply* Prescription (herbal preparation): Type of preparation 1 week 2 weeks 3 weeks 4 weeks Tincture ?8.25 (100ml) ?16.50 (200ml) ?24.75 (300ml) ?33 (400ml) Dried herbs ?4.63 (50g) ?9.25 (100g) ?13.88 (150g) ?18.50 (200g) Creams N/A ?5 (30g) N/A ?10 (60g) Infused oils N/A N/A N/A ?7.25 (50ml) Reference List Appleby, J., 2013. 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