Starting Ayur-Care Ayurvedic Medical Centre in Barnet - Essay Example

? ……………… College/ ………… ……. BUSINESSES PLAN Business plan for Starting Ayur-Care Ayurvedic Medical Centre in Barnet, UK TABLE OF CONTENTS Executive summary…………………………………… 3 The Business-rationale ………………………………. 4 Mission Statement ………………………………….. 5 Ayur-Care Business Goals ………………………….. 7 Marketing Plan ……………………………………… 8 Marketing-Mix elements …………………… 8 Market-segments …………………………….. 10 Communication Plan ………………………. 11 Financial Projections ……………………………….. 11 Projected Profit and Loss Statement ……….. 13 Management Plan ………………………………….. 14 Conclusion …………………………………………. 14 References …………………………………………. 15 Executive summary ‘Ayur-Care’ will be a unique experience of true and natural art-of-healing that would fulfill its very fundamental goal of providing its target market with joyful environment and effective-natural treatment of Ayurveda, Yoga and Spa, and not just an alternative place to seek cure. Ayurveda, developed by ancient Indian scholars around 2000 years ago (Brannon and Feist, p. 192), has emerged as one of the most successful alternative therapies of today, mainly since modern medicine faced challenges of growing concerns that most of its drugs cause severe harm on human body (Paulien, p. 60) due to the ‘toxic’ elements it contains. The major emphasis of Ayur-Care will be placed on producing high-quality Ayurveda medicines from genuine natural-leaves and tree-roots with an aim to foster holistic approach to bringing better medical care and wellness that, in fact, many other therapies failed to deliver to the community. Ayur-Care proposes to deliver valuable and rejoicing life experiences to all those who, due to the modern life-style and tightly-scheduled work contexts that made them in a different synthetic lifestyle, have become very vulnerable to major health hazards of stress, strain, cancer and chronic diseases. People from around United Kingdom are badly in need of an effective diagnostic treatment in an eco-friendly treatment and greenery environment that itself will serve greater contributions to promote public health. The Ayur-Care will be a public limited company located in Barnet, a city near to the woodland called Epping Forest in South East England. The company has chosen proximity to Epping Forest because it is rich with trees-and leaves-resources that are extremely significant for manufacturing genuine-natural and herbal medicines. This paper presents a brief business plan for the Ayur-care Ayurvedic Medical centre, to be located in Barnet, UK. This paper will elaborate needs for Ayurvedic treatment in today’s changing life-style and living-contexts. This business plan will cover the mission and vision statements of the company, the main objectives of the business, the marketing mix-elements, the marketing plan, financial projections and management plan. The Business-rationale As Leach and Melicher pointed, an effective business plan must be able to describe the proposed venture in terms of the products and service opportunity, available resources and financial projections. A business plan is one that sells the excitement, opportunity and the rationale of the business idea to its members as well as outsiders (p. 74). More specifically, the what, where and why explanation of the business is highly important element in developing the business plan. The Ayur-Care is an Ayurvedic Medical centre, projected with main goal of providing continuous holistic and natural treatment, as developed by ancient Indian gurus, in order to create a life with pleasure, enthusiasm, perfect health and long-lasting joy. It will be located in Barnet of the South East England, because, proximity to the Epping Forest will be an advantage to the company not only to attract people to the eco-friendly environment but also to access large-resources from the forest. Ayur-Care will be an ultimate solution to the concern of ever-growing rates of both patients and diseases. The Ayurveda medical Centre will be open to the public from June, 2011, seven days a week so as to ensure continuous community services of both Ayurvedic medicines and Ayurvedic Spa. The management plans to hire expert doctors, scholars and scientists from India as well as business, management and natural-scientists from UK so as to mould a multicultural perspectives to form an ethical and medical culture with an emphasis on customer-focus. Service will be its motive, but still, in order to reach its vision to the targeted customers, the company plans to incorporate all today’s relevant marketing strategies and business perspectives to enhance its success. Management and doctors team will be comprised of those individuals who have at least 10 years of experience background in medicine, Ayurveda, natural science and management skills. When it comes to customer-side, there has been an ever-increasing opportunity for an effective diagnostic and treatment medical care system, being able to provide all technological assistances that a normal hospital provides today, and this has been the driving force behind the thought of Ayur-Care in modern UK. There are, to say, thousands of hospitals, but, numbers of patients never get decreased and it is a more terrible fact that as long as modern medicine experiences radical advances in technology and infrastructure, the public health is getting more worsened day by day. Ayurvedic medicine has been proved to be one of the most effective alternative with no side effects on human body. Mission Statement A business or marketing plan with no correctly-defined vision is truly vagueness. As Stutely mentioned, a vision statement is one of the most critical elements of a business plan, and it must be able to describe what the business will be doing in the next few years (p. 56). The business plan must be able to spell out the overall strategy or its underlying goals and objectives mainly through its mission statement in a way that it enables the business clarify its main objects to its stakeholders (Roberts, p. 24). A mission statement of a business is its statement that states the purposes of the business, to say who or what is the business, state the scope the business, to say what it does and to state the values, to say why is that business important (Devine, p. 28). When it comes to the case of Ayur-care, its main objectives are to serve the people from around the UK to help them high-quality medical, especially Ayurvedic services, in a way that can maintain long-term relationship with its customers with a trust of better health and well-being. It will be providing both Yoga and Spa so as to promote physical-healthiness of people, regardless of their age, gender, class and religion. The missions statement is given below The vision of the Ayur-Care Ayurvedic hospital is very clear from the above mission statement. Ayur-Care will be a genuine Ayurvedic Medical Treatment Centre so that people from around UK will be able to approach for various Ayurvedic treatments like its medicines, Yoga and its specific-spa as well. Ayur-Care Business Goals As Fullen noted, the business objectives and goals should cover both the long-term and short term expectations of the business and it also should be able to be converted in to monetary-measurements or other tangible results (p. 56). All the businesses, no matter they operate in manufacturing or service industries, have their very own objectives and goals and therefore they design specific routes or strategies to achieve these goals and objectives. In order to help the business identify its objectives, help its people get familiarized with these objectives and also to make these goals repeatedly being informed to their hearts, it is highly important that they are to be specifically defined, listed and clearly stated (Longenecker and Loeza, p. 152). The main objective Ayur-care Medical Centre is to serve an excellent, perhaps to be as most valued and rewarded to be supreme quality in the Europe, Ayurvedic medicines and related treatments to the public regardless of their case, age, gender, and religion. The Medical-centre aims to provide almost all medical services, like Ayurveda treatment, Ayurveda massages, Ayurveda panchakarma (keralaayurvedichealthcare.com) and Ayurvedic training to the growing generation. Company’s main objective is to create a generation, being fully-aware about prevailing conditions and drastic side effects of Allopathic medicines, and inculcate a culture to depend the nature for true-art of healing. The business thus has a long-term objective of creating people who are nature-loving, and those who like eco-friendly living to enhance better health conditions. One of its main goals is to facilitate Yoga to its customers on regular basis, with an approach of integrating both Yoga and Ayurveda, to help people gain optimal health, vitality and higher degree of life . it also will be helpful to reveal the secret power of physical organism, the body as a whole, breath, senses, mind, spiritual attention and so on. As Frawley emphasized, Ayurveda together with Yoga provides specific language for understanding the primal forces of nature as helps us become aware of how to work with the, in various stages (p. 30). The company has projected large-scale production and marketing of Ayurvedic medicines, as developed by Indian Ayurvedic scholars, mainly from wood and leaves resources. The company will depend Epping Forest for most of its resources for medicines-development. An R&D will be assigned to study Ayurvedic books and conduct extensive researches through olden literatures so as to help the bio-botanical department to develop newer ranges of medicines, being strictly inclined to the very basic and fundamental principles of Ayurveda. The financial management aims at generating a gross profits of $40,000 by the fourth months, and $340,000 within the first year, before June 2012, with an average selling of more than $12,00,000 within the first year. Marketing Plan Marketing-Mix elements As Armstrong and Kotler stated, the company must be able to deliver high-level customer values and satisfaction than its competitors do provide (p. 72) and hence the company essentially requires to recognize and find out what specific features, utilities and usefulness can add values to the products or services to be delivered. For this purpose, it may be even important to observe competitors’ plan, their market segments, customer attitudes to them and the level or their satisfaction with their goods or services (Bangs, p. 61). Marketing-mix elements are product, price, place and promotion and related strategies. When it comes to the case of Ayur-Care, marketing mix comprise of the products and services Ayur-Care will deliver, their prices, the places where these products and services will be delivered and the promotion for the Ayur-Care hospital (Winston,p. 27). The major products include Ayurvedic small-sized tablets, Tonics, Syrups and other types of readily available or Ayur-care produced items. The major services include diagnosing, treatment, Yoga, Massages, Spa, bed-and-in-hospital caring etc. All these products and services, especially from a marketing perspectives, will be designed and developed in such a way that they will be extremely effective and customers will like their tastes, smell and all other attributes. All the products and services will be reasonably, to say as cheaper as possible, priced, so that company can attract huge number of nature-loving people for curing their diseases. Though there will huge expenses for developing medicines from wood and forest resources, it is highly important that a skimming pricing policy only can help the company gain access to the market (Forsyth, p. 41). Under skimming pricing policy, company will initially charge as lower prices as possible and will increase this price when company gains quite a strong customer bases in order to cover its expenditure (Pride and Ferrell, 613). The place element has been chosen and proposed to be an important one because the proximity to Epping Forest and its nearby eco-friendly areas will surely attract customers to entertain as well as get Ayurvedic medical treatment in such an environmentally sound situations. The place will thus surely add greater values to the marketing and its business landscape. Promotion will play an important role in the success of the business. Unless its message and mission has been effectively communicated, Ayurveda and significance to bringing health will remain quite unknown to the public. The Ayur-Care company will go for extensive advertising campaign, perhaps with help of an advertising agency, to make effective use of both print and other media to reach its message to the community at large. The company will put greater efforts in keeping consistency in messages to be delivered to the customers, because, consistency in communicative messages is a critical element to the success of promotion. As part of its promotion, company will set up a website, that itself will form to be an advertising channel and can be used as an inter-mediatory between company and customers to help them get updated with latest information as well Ayurvedic news. Market-segments The market Ayur-Care is segmented in to three different categories, based on the following criteria, Customers on the basis of their attitude towards Ayurvedic treatment and natural care, Customers on the basis of Geography, and Customers on the basis of age-group Customers based on their behavioural pattern towards Ayurvedic medicine and its dimensions like Yoga and Spa, are the main targeted groups of Ayur-care’s medical services. The company will consider all those promotional activities that can create public-awareness about Ayurvedic medical treatment and to increase the number of customers in this group. Customers are also segmented based on their geography. More than 60% of its customers will be from Barnet, Enfield, Loughton, Brentwood, Huddleston and Hatfield. Remaining 40 % of the total customers will be various other parts of the UK. The company plans to increase the percentage of people that it can expect from other parts of the country. On the basis of the age-group, the total targeted customers can be segmented as:- Infants- to Child- 0- 10 ages = Around 5 % Ten-agers = 8 to 10 percentage Adults- 20 to 35 = 25 Percentage Old-aged --- from 35 to 70 ages = more than 60 percentage As most of the customers that the company expects are from between 35 to 70 ages, the company will be providing all the required medical, entertainment and refreshment services, in calm and very healthy environment, so that its customers will enjoy the treatment. According to a large number of research findings, pleasant mind leads to better cure (Gregory, p. 169). Calm and refreshing environment, entertainments, pleasant natural sights and so on will help the patients become happier and enjoy the treatment so that their diseases can be cured to a large extent, mainly with the climate itself (Miller, p, 31). Communication Plan Effective communication yields greater results. The mission, the vision, the major objectives and company’s fundamental interest in promoting public health through Ayurvedic, and natural medicines will be communicated to the targeted markets. In communication, the company will consider different targeted groups differently so that messages appropriate to them can be derived to the concerned groups of customers. Financial Projections Ayur-Care is a going to be big and rather a unique project in the UK and therefore there can be many hidden as well as greater initial-setting up expenses like legal proceedings. the financial plan, adding here, is not the ultimate or rigid projections, but these are likely expenses and incomes. Lasher described that a good business plan must comprise a financial plan, no matter whether the income and expenditure predictions are perfectly correct or not (p. 119). Company will be able to start its services in June, 2011, and will be able to start generating a reasonable amounts of profits from October, 2011 onwards. The first year projections anticipate an average sales volume, and above average income per person. Total revenues will be reaching $12,00,000 in the first year itself and the company will be able to almost double it by next year, as accounted to be $20,00,000, with an average gross profits of 28.5 % and 37 % respectively. The Ayur-Care is looking for various investment-proposals like loan of around $300,000, Debenture loans of around $200,000 and remaining from issuing shares. Income Statement for the first 2 years Income statement for the first two years- in $   Year- 1 Year- 2 Revenues 12,00,000 20,00,000 Cost of sales 860,000 12,60,000 Gross profit 340,000 7,40,000       Advertising and promotion 60,000 66,000 bank charges & legal exp 48,000 13,000 Insurance & Interests 8600 20,600 maintenance 4400 18,400 Other expenses 75,700 124,000 salary 68,000 72000 Depreciation expenses 15800 15800 Rent 35000 52000             Net Income 24,500 3,58,200 Though net profit in the first year is a challenging figure, the company will be able to generate a very reasonable amounts of net-profits, and a major portion of this will be reserved for promoting public-awareness of Ayurveda and its very natural-treatment, as an effective practice with no substantial side effects on human body. In order to create such an awareness, company proposes conducting seminars, symposiums, public-events-programs and drama to support the concepts of Ayurvedic treatment. Projected Profit and Loss Statement for 12 months An analysis of Ayur-care’s profit and loss figures show that it will be able to generate a good amounts of gross as well as net- profits from fifth month onwards. Company will make a total of net profits of $ 63,210 and $ 3,58,200 in the first and second year respectively. Ayur-Care’s financial projections for the first twelve months show that company will make a net-profits of amounts of relatively very less figures, ranging from $2000 to $4,500, in different months. But, this is not a difficult situation due to that in the first year company will be focusing mainly on attracting large number of customers and this will help it generate $ 3,58,200 in the next year. Management Plan Ayur-care basically looks for most talented, skilled and qualified professionals of scientists, doctors and efficient Ayurvedic nurses. In order to ensure utmost effectiveness in delivering quality-Ayurvedic medical treatment, Ayur-Care will be conducting an extensive recruitment and selection program, based in New Delhi, in India followed by an extensive research about their qualifications, skills, management abilities, nursing experiences, attitude towards natural care and cure and how far they are motivated to work in UK environment. A similar proportion of the management and scientists team will also be recruited from UK, in order to inculcate a multicultural perspectives among them. Professional and employees recruited from India will be given three months English-UK accent communicative English Training so as to make them very professionals and extremely serving to the UK community. Conclusion This piece of paper has presented a brief business plan, detailing various plans like marketing, management and financial projections etc. This paper has highlighted various management, marketing and business concepts, theories and underlying principles to support the plan being prepared. References Armstrong, G and Kotler, P, Marketing: An introduction, Prentice Hall, Pearson Education Inc, 2005 Bangs, D. 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