New Horizon Homeopath business plan

Introduction to Business 101 Section: 12 North South University

Prepared by Tania Amin Mahmudul Basit Ehsanul Karim 1030781530 1030850530 1020378530

Farhana Ashrafee Dilshad 1030082530 Mofizul Haque Chowdhury 1030697530

Prepared for Sheehan Rahman

Executive Summary In Bangladesh, complementary and alternative medicine CAM has long been practiced and it is estimated that 70-75% population of the country still use traditional medicine for management of their health problems of various kinds. Broadly speaking, four types of CAM are primarily practiced in Bangladesh namely herbal, homeopathy, religious and magical methods. New Horizon Homeopath will be part of the increasingly popular complementary therapy industry, and is based on the 'law of similars', which states that a substance that causes a reaction in a healthy person can treat symptoms already present in an unhealthy person. For example, a homeopathic remedy with its source in coffee is used to treat certain types of insomnia that resemble the sleeplessness caused by drinking caffeine. New Horizon Homeopath will offer holistic therapy and consultation where we are concerned with the overall wellbeing of their patients as well as with any specific complaints. Patients will attend an initial consultation in which we will inquire about the patient's medical history, general health, diet, lifestyle, and any other issues that may be relevant such as emotional trauma. The patient will then be prescribed a personalized treatment using homeopathic remedies, which are derived from natural sources such as plants. Interest in homeopathy has intensified in recent years in line with the increasing amount of attention given to the complementary therapy industry as a whole. However, it has so far proved impossible to explain scientifically why homeopathy works and, while it is gaining increasing recognition, many doctors and scientists still dismiss it. Homeopathy is a vitalist philosophy in that it regards diseases and sickness to be caused by disturbances in a hypothetical vital force or life force in humans and that these disturbances manifest themselves as unique symptoms. Homeopathy contends that the vital force has the ability to react and adapt to internal and external causes, which homeopaths refer to as the "law of susceptibility". The law of susceptibility states that a negative state of mind can attract hypothetical disease entities called "miasms" to invade the body and produce symptoms of diseases. New Horizon Homeopath will be responsible for ensuring the general health of their patients. Through a combination of industry benchmark customer service and flexibility, New Horizon Homeopath will quickly gain market share. Profitability will be reached by month 10, and desired sales will be achieved by the end of year two.

Introduction Homeopathy (also spelled Homoeopathy or Homeopathy) is a form of alternative medicine, first proposed by German physician Samuel Hahnemann in 1796, that treats patients with heavily diluted preparations which are thought to cause effects similar to the symptoms presented. Homeopathic remedies are prepared by serial dilution with shaking by forceful striking, which homeopaths term "succussion," after each dilution under the assumption that this increases the effect of the treatment. This process is referred to as "potentization". Dilution often continues until none of the original substance remains Apart from the symptoms of the disease, homeopaths use aspects of the patient's physical and psychological state in recommending remedies. Homeopathic reference books known as repertories are then consulted, and a remedy is selected based on the totality of symptoms. Homeopathic remedies are considered safe, with rare exceptions. However, some homeopaths have been criticized for putting patients at risk with advice to avoid conventional medicine such as vaccinations, anti-malarial drugs, and antibiotics. In many countries, the laws that govern the regulation and testing of conventional drugs do not apply to homeopathic remedies. Helping the body to heal itself The word homeopathy (also known as homoeopathy) is derived from the Greek words homoios, meaning similar, and pathos meaning suffering. Homeopaths treat patients with specially prepared substances that mimic the symptoms of those diseases in healthy people. Homeopaths believe that this strengthens the ability of the body to heal itself. Treatments and precautions Homeopathic medicines can be in the form of liquid, granules, powder or tablets. Our practitioner might also advise general lifestyle and dietary changes as part of a treatment plan (Homeopathy health services, 2009). Sometimes symptoms may temporarily get worse before they get better. This aggravation of symptoms can be part of the homeopathic treatment. However, you should tell your homeopath if you have these reactions. Our homeopath may refer you to a doctor or other healthcare practitioner if necessary. Intended location We recommend opening our business in a busy area where there is good public transportation .and also an area where our target customers are available. Assessing traffic flow, Parking

factors, Disabled access, Competitors' location, Anticipated sales volume, Location history, Council zonings and permits etc our researched has indicated Mirpur is the best place to locate our business in order to attract the highest number of customers Vision Statement Honours, supports and welcomes all individuals who sincerely desire to contribute to the strength and quality of homeopathy by providing excellent customer service Mission Statement Our mission is to restore your health and wellbeing with a caring and professional attitude. We deeply committed to provide the highest standard of treatment which focuses on your personal needs and concerns. Business core values

Provide a professional service to our customers. Provide the most efficient and effective remedies for our customers. Keep a good relationship with our suppliers. Treat others as you would like to be treated Persistence for doing the right thing and servicing clients the right way. Treating our customers in a respectful and friendly way. The aim is to cure customers from any discomfort or disease.

Distinctive Competencies Care for the best interest of the customers health not the money. Clean material used by practitioner. Provide remedies that are rare and not available everywhere.

Broad objectives business To provide health care to residents of Capital City, Parramatta Create customer loyalty. To create an organization whose primary goal is to exceed customer's expectations. To form a health care practice that is able to eventually survive off its own cash flow. To build on that business by offering additional products and service. Continuously in development to find out new remedies that are more effective. Cure our customers.

Increase market share.

Future objectives To bring the treatment of complicated diseases into our business like cancer or AIDS To develop a professional mobile group for treating clients at their own house. To open another two clinics in the next 5 years in different areas.

Critical success factors Sustain good relationship with suppliers Provide services on weekends Provide customers with high quality services and products. Provide staff with customer-focused training. Maintain the best internal control system for the business

Consumer behavior: In a Healthcare industry we believe it is very important to understand customer needs. It is very important to consider both cost and service and in some instances service outperforms price. We believe people tend to forget price when they get an exceptional service because for an industry like this an act of due care and friendliness drives customers more than anything else. Market Segmentation The customer base for homeopathy looks set to continue expanding. People are increasingly willing to spend money on 'luxury' services, and complementary therapies have benefited accordingly: Homeopathy appeals to people suffering from conditions for which conventional medicine is often relatively ineffective, such as hay fever or chronic fatigue syndrome. Homeopathy can be particularly helpful in alleviating allergies because, in contrast to conventional medication, the treatment is personalized. As people become increasingly disillusioned with the side effects associated with long-term use of conventional medication, they often turn to complementary therapies. Homeopathic remedies are very mild and contain only minute concentrations of the therapeutic agent; therefore they can safely be used on young children, pregnant women and the elderly. Individuals suffering from chronic conditions such as asthma and eczema often use homeopathy as a way of alleviating symptoms and thereby reducing their intake of conventional medication.

Homeopathy can also be used to improve the quality of life of people dealing with potentially terminal conditions such as cancer or Parkinson's disease. Certain homeopathic treatments are believed to alleviate the pain and emotional distress associated with these conditions.

Because homeopathy works by stimulating the body's own defense mechanisms, it can be a very effective way of improving the immune system. This is attractive to many people as modern lifestyle involves many stressful situations and pollutants that lower natural immunity from disease.

People dealing with prolonged stress, for example due to family illness or highpressure jobs, often turn to homeopathy as a way of treating their symptoms and improving their general wellbeing.

Management Structure: Chairman & M.D. Deputy Managing Director Director Executive Director

Director (Production)

Director (Administration)

Director (Technical)

Director (Marketing)

Marketing Strategies: Competition: We will encounter direct competition from other homeopaths practicing in that operating area area; one way of estimating this is to check trade association registers for professional practitioners based locally. However, we would bear in mind that not all practicing homeopaths are registered with professional associations, although this situation is changing. As the general public becomes more interested in wellbeing and self-improvement, the complementary therapy industry is receiving increasing public recognition. Other complementary therapies, such as aromatherapy and acupuncture, may compete for the

attention of individuals who are looking for a healthier lifestyle without a clear idea of how to achieve it. The conventional healthcare system also represents indirect competition, since people with existing medical conditions tend initially to investigate complementary therapies such as homeopathy in tandem with conventional treatments recommended by their GP. Nevertheless, homeopathy does have a recognized role within the NHS, and GP referrals are on the increase. SWOT analysis Strengths Excellent quality product Previous knowledge of the industry Ability to extract information lower offered price

Weakness No prior management skills Lack of systems (sales and operation) New compared to existing players

Opportunities Enormous market to exploit Growing market segments Advancement in homeopath industry

Threats Increasing supplier price Intense competition Probable shift in customer preferences

Competitive Advantage: New Horizon will leverage their two competitive edges to generate market share. Customer service. New Horizons entire practice is based on a customer centric service model. This business model is particularly emphasized when the practitioner is working with patients. New Horizon believes that the patient must make an informed decision regarding their needs. New Horizon will take significant time

detailing what occurs during the procedure, any side effects the patient may notice, as well as the success/failure rate. Only after the patient has been educated regarding the procedure will New Horizon allow the patient to go forward with the procedure. Flexibility. New Horizon recognizes that his patients have busy schedules so he has tailored his practice around being flexible to meet the customers needs. This is an extension to their competitive advantage of customer service; however, New Horizon concentration on flexibility is worth noting separately. Place: Considering the nature of your business, we recommend you a place that is located in a busy area where it has better public and private transportation services, adequate parking facilities, different types of shops and businesses. Price: To cover up the cost and to get a surplus a cost plus pricing is to be used. We believe it will help to track cost and a easy way to measure profitability. The price of the consultation and therapies are to be based on industry average. For product price a 50% mark up is to be used on suppliers cost. Promotion: As it is very important to create a brand name and customer awareness, we recommend to promote the business by making leaflets and distributing them to public, free online advertisement, paper advertisements and encouraging people about the business in different seminars, public ceremonies; visiting schools and universities. We also can promote it by making some discounts for students, pensioners, disabled, old people and kids. Distribution: In distribution strategy there are three important factors. Which are market factors, producer factors and product factor.... there are There are three broad options - intensive, selective and exclusive distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets. In this stage we have to make our brand as they chose this brand from others. In Selective distribution system we can focus our best performing outlets and focus effort on them. Selective distribution works best when consumers are prepared to "shop around" - in other words - they have a preference for our brand or price and will search out the outlets. We can see this type of outlets using by Hamdard, Sadhona Ousodhaloi etc. in this system to it is easy for peoples to collect medicine.

People: We recommend all the necessary customer-focused training which will provide the staff a better way to deal with everyday business activities. This training includes a mandatory course of Occupational health and safety (OH&S) at the very start of the business. People responsible for marketing work will look for ways to increase sales. Process: Financial factors Sustain good relationship with suppliers where we will give you discounts and send you your supplies on time. We would get your supplies from a local supplier this will lower your costs where you will not need to pay high fees for transporting the supplies. Also by making some discounts for our services and product this will attract customers and will increase our sale. Customer factor In order to keep our clients satisfied, we would give them what they need. Other homeopathic businesses have a specific trading hours and close on weekends but what if some people are working at the time of their trading hours and dont work on weekends. New horizon will give special consideration to those people and will open 6 days a week including weekends. It will close on Mondays only. Also in order to win our clients show them that money isnt the reason that you are treating them especially if some of our regular clients cant pay. We will take a partial amount of the fee to help them where they will trust us and come back and recommend us to their friends. Retain our staff and keep up customer-focused training in order to give the customer the service they want and satisfy them. Internal business process Clients always look for the high quality product with the lowest price. New horizon will offer clients the best services and remedies at a reasonable price that everyone can afford and lower than the competitors. We shall always make sure to give our clients the right remedies for the illness or diseases. Also make sure that we do not mix wrong ingredients to make the remedies. This will dissatisfy our clients where they may return the product or ask for their money back and they will start looking for another practitioner. We will make sure that our services are done professionally with care. If any mistake happens it will affect our business where our clients

will not trust us and may tell their friends and people they know about their dissatisfaction which will turn our clients away and end their loyalty

ESTABLISHMENT COSTS AND SOURCE OF FUNDS Important Assumptions To start up the business we are recommending investing 3000000, although we have Tk500000, to meet all the necessary cost such as location and administrative cost, furniture and fittings, inventory etc. We have assumed that we will be acquiring other direct materials, namely gloves, cotton, syringes etc. which are sufficient for you to start the business. Rental expense is based on rent paid by a business in a similar industry and in a relatively similar property. By making some discounts for our services and product this will attract customers and will increase our sale. We will gain market share locally of 25% by your highly studied competitive strategies. Through our analysis we have determined that your likely total start up capital expenditure is approximately 5000000 tk. Required Capital Through our analysis we have determined that our likely total start up capital expenditure is approximately 5000000 tk. The majority of these costs are directly related to location and administrative expenses and capital equipment. Table Projected Profit and loss Statement: Year 1 REVENUE GROSS SALES REVENUE COST OF SALES DIRECT MATERIALS REQUIREMENT GROSS PROFIT EXPENSE WAGES PHONE AND INTERNET RENT INSURANCE ADVERTISING BANK FEES ELECTRICITY PROFESSIONAL FEES DEPRECIATION GST PAYABLE EXPENSE 267109.50 55,160 211949.26 46,800 1,416 74,376 51,000 25,000 240 4,800 17,500 5,616 26710.95 Year 2 336558 66192.286 270365.68 46,800 1,416 74,376 51,000 25,000 240 4,800 17,500 5,616 33656 Year 3 411349 77224.333 334124.30 47,736 1,444 75,864 52,020 25,500 245 4,896 17,850 5,616 41135

TOTAL EXPENSES NET PROFIT/LOSS There are thirtyeight homeopathic medical

253,459 -41509.69

260,404 9961.89

272,306 61818.79

college & hospital in Bangladesh legislated under (a government organisation) Banglade sh Homopathy Board, Dhaka. One of them is govt. & rest of all are private medical colleg e. There are three medical colleges alone in Dhaka city. In order to run the business in the most effective way; the following points help you select staff members with high standards: Excellent communication skills Educated and have the qualification required for the job Mature and confident Cooperative and a team worker. Honest, reliable and trustworthy Pleasant facial expression; smiling. Friendly, punctual and patient Polite and well-mannered Initiative, Dependable, loyal and acts ethically. Willing to learn Follow directions Doing work without being told and moving to additional duties that are more difficult and needs more responsibility. Committed to their work.

Conclusion New horizon Homeopath has many plus point as well as some comings, which are exposed from their marketing analysis. To be successful in future, it needs to tackle their shortcomings through putting concentrate on their marketing strategy. We, the owner of New Horizon Homeopath, will leverage the years spent in private practice to model this new business. Partitions past experience in conjunction with his forward-looking customer-centric business model will allow them to rapidly grow a large and loyal patient base. We will give our full

potential and provide our customer with all their necessities needed to meet the fulfill their demand and expectation from our company.