BUSINESS PLAN

MOLLY X-RAY SCAN LAB

MOLLY X-RAY SCAN LAB

BUSINESS PLAN

Company Information
Issued Date:..........................
Legal Name: Molly X-Ray Diagnostics Test
Trading Name: Molly X-Ray Diagnostics Test

CONTACT PERSON:
Mrs Molly Motlalepula
Cell: 071 380 9213
POSTAL ADDRESS:
P.O Box 1555
Makhado
0920
Physical Address:
Marite 66A Kock Street
Makhado
0920

Confidential Agreement

The information contained in this business plan is confidential and proprietary to Mrs
Molly Motlalepula Limited and is intended only for the persons to whom it is
transmitted by the Company or its representatives. Any reproduction of this
document, in whole or in part, or the divulgence of any of its contents without the
prior written consent of the Company, is prohibited.

Business Plan Copy No: _____________

The undersigned reader acknowledges that the information provided by Mrs Molly
Motlalepula Limited in this business plan is confidential; therefore, reader agrees
not to disclose it without the express written permission of the Mrs Molly
Motlalepula.
It is acknowledged by reader that information to be furnished in this business plan
is in all respects confidential in nature, other than information which is in the public
domain through other means and that any disclosure or use of same by reader
may cause serious harm or damage to Mrs Molly Motlalepula.

_________________________

______________________________

Signature

Name:
____________________
Date

Why was this Business Plan Written?

1. To obtain the grant financing of an amount of R 601 103 from any

financial institutions.

2. To give the owner who wants to start the clothing production business a much better idea of
whether the owner should really get involved in this type of business at all, through
determining the commercial, technical and financial viability.
3. To serve as a useful guide for the business to check continuously how the business is gettingon in achieving its goals

4. To serve as an operational plan document for Molly X-Ray Diagnostics Test .

5. To serve as a very good document for outsiders, like banks or suppliers of credit, to see
whether they are interested in getting involved in the affairs of the business or not.

In a nutshell This business plan is a road map that tells business owner where to
go, and allows the owner to check if the team is on the right road.

MOLLY X-RAY SCAN LAB

Table of Contents
EXECUTIVE SUMMARY
1.

Brief Description of the Business..7-8

2.

Keys to success.....8

3.

Financial Summary.....9

4.

Business's Contributions to the Economy...9

5.

Purpose of Required Fund ...9

Section 1
MARKETING PLAN
1.1

Description of the Product and services.10

1.2

Reasons for choosing this Traditional Clothing as product .....10

1.3

Competitors.11

1.4

Competitive Advantage ...11

1.5

Location..12

1.6

Market Area12

1.7

Targeted Customers.12

1.8

The Industry Overview...13

1.9

Total Demand.13

1.10

Market Share...14

1.11

Selling Price14

1.12

Sales Forecast...15

1.13

Marketing Strategy15

1.14

Marketing Budget..16

Section 2
MANUFACTURING PLAN

2.1

Fixed Required Capital 17

2.3

Life of Fixed Capital..17

2.4

Cost of Stock and Raw Materials ..18

2.5

Labour....18

2.6

Overhead Expenses....18

Section 3
ORGANISATION & MANAGEMENT PLAN
3.1

Form of Business.19

3.2

Organisational Structure.21

3.3

Pre-Operating Activities and Gantt chart..21

3.5

Pre-Operating Expenses.....24

3.6

Administrative Expenses.24

Section 4
FINANCIAL PLAN
4.1

Capital Required....25

4.2

Financing Plan and Grant Requirement.....25

4.3

Profit and Loss Statement............26

4.4

Cash Flow Statement....28

4.5

Balance Sheet....30

4.6

Break-even Point (BEP) ...31

4.8

Return on Investment (ROI).32

4.9

Exit Plan...32

EXECUTIVE
SUMMARY

1.

Brief Description of the Business

Molly X-Ray Scan Lab is a start-up business which will provide a medical scanning
imaging using X-Ray Scan Machine, at a reasonable price while still making a healthy
profit margins. The lab will be located at Makhado Town.
Molly X-Ray Scan Lab is managed by highly motivated, well qualified and experienced
managers. The business is owned and managed by Molly who experience and
knowledge in scanning lab operation having been working this working for Makhado
Hospital for many year.
The business will operate 6 days a week, from Monday to Saturday.
The business has targeted individuals of any age and income level around Makhado
and Souranding Village . This type of client or penitents are mainly referred by Doctors
within and surrounding Makhado Village. Currently this group of people or clients are
getting this type of services from public and private hospital.
The Market survey conducted by the owner indicated that there is a high demand of
this services around Makhado, Limpopo and South Africa as whole. Currently this
group of people or clients are getting this type of services from public and private
hospital. The doctors are currently referring them to public hospital because they dont
have such equipment. Due to the shortage or few hospital around makhado people
queue for long time. The other reasons is that many people prefer doctors that public
hospital to avoid queue and good treatment also.

Our advantage is that we will be providing medical scanning tests with the latest
equipment and the expert medical training to interpret and provide valuable
consultations to the physicians who make the patient referrals to Scan Lab.

2.

Keys to success

Only purchase medical equipment that has demand within the community.

Provide fast, friendly service with accurate readings.

Employ strict financial controls to help manage the expensive capital costs associated
with medical imaging equipment

3.

Financial Summary
The table below is a brief summary of the profit and Loss statement.

4.

Business's Contributions to the Local Economy

Molly X-Ray Scan Lab will contribute to local economy through providing source of
income to 2 people and their families. It will also result in healthy competition by forcing
existing small individuals to join forces and to improve their product and services
quality. This will empower woman and encourage other women to start their business.

5.

Purpose of Required Fund

To improve this business a total amount of R 361,082 is needed. The owners have
proposed to finance this capital requirement by a grant of R 349,532 or 97% and the
balance R 11550 or 3% will be financed by owners. This grant amount will be used as
follow:

Section 1
MARKETING PLAN

1.1

Description of Services
Molly X-Ray Scan Lab offers physicians a wide range of diagnostic scanning tests. Due
to the high cost of scanning equipment for occasional use, most small clinics and
practices use an outside service provider for scanning needs. The following scans will
be offered: X-Ray uses invisible electromagnetic energy beams to produce images of
internal tissues, bones, and organs on film. X-rays are used for numerous reasons but
work best to find tumors or bone injuries.

Advantages of Going Digital with our X-Rays

Nearly all types of radiological practices benefit from going digital, including small
radiology and ultrasound clinics, large hospitals and medical centers, as well as mobile
medical practices. Some of the advantages that our customers have reported are:

Streamlined work flow

Easier, faster access to all X-ray images

Reduced file storage requirements

Reduced operational costs

Better patient outcomes

The Health Insurance Portability and Accountability Act (or HIPAA) classifies X-ray film
as private documents, since it contains patient information, so care must be taken with
patient's private data.
The film needs to be disposed of in accordance with Environmental Protection Agency
guidelines. X-Rayscan.com turns what could be a painful process into an easy one with
our one-stop shop service.

1.2

Future Products
CAT Scan: This is a diagnostic technology that uses a combination of x-rays and
computer technology to produce cross-sectional images (slices) in a horizontal and
vertical orientation. A CAT scan can show detailed images of any part of the body
including bones, muscles, fat, and organs. CAT scans are more detailed than traditional
x-rays and have lower releases of radiation. CAT scans are often used to diagnose
tumors, evaluate internal bleeding or investigate internal injuries or damage.
MRI: This technology harnesses magnetic energy. The patient is placed in a tube or on
a bed where magnetic fields are applied to the body. The reaction by the body when the
magnetic fields are applied and relaxed are noted by a computer which has been
recording data throughout the process. MRIs are the premier scanning device for
extremities, especially joints, as well as for imaging the upper spine and lower back.

1.3

Competitors

10

Molly X-Ray Scan Lab is facing a competition from two competitors, public hospitals
and private hospital, which has its own with their own scanning equipment. The public
hospital are the direct competitors is the one serving the Public or Doctors. People are
referred by Doctors for scanning in the public hospital because doctors do not have this
facilities. Both hospitals has only one equipment and the day their equipment is out of
order is a problem.
The private hospital is an indirect hospital which does not serve the outside doctors.

1.4

Competitive Advantage
Scan Lab will leverage its competitive edge of having the most advanced equipment
with a seasoned, nationally recognized radiologist providing all of the analysis.
Molly X-Ray Scan Lab will distinguished itself from its competitors through providing
high quality products at reasonable prices.
Due to the high shortage Makhodo Public Hospital is always full and cannot cater the
entire demand.
Our advantage is that will be also an alternative source of providing this services in the
case were hospital equipment is out of order for both public and private

1.5 Location
The business will is located at Louis Trichardt within Makhado Municipality, Vhembe
District, Limpopo Province, South Africa. This location has been selected because of
the following reasons, there is a high demand of this services , currently our targeted
customers depend only on one public hospital for X-ray scan

1.6

Market Area

11

The business has targeted doctors and private clinic at Louis Trichardt and doctors in
surrounding village.
Molly X-Ray Scan Lab plans to initially supply its products in Vhembe District. Our
future plan is to supply the whole country and other African countries.

1.7

Targeted Customers
The scan lab main targeted customers are doctors who have their own practice. This
type of customers are currently getting this type of services from public hospital.
Other customer is a private hospital in case where there equipment is order they will
refer all their clients to Molly X-Ray Scan lab.

1.9

Total Demand
The market survey conducted by the owner indicated there is a higher than the supply.
There is only one public hospital and one private hospital in our targeted market area.
These two hospitals are always full, people they dont depend on doctors surgeries and
clinic and this type of group they dont have their own equipment. The doctors
surgeries around Makhado are about 16 and each receives 3 to 4 people who need
this type of services per day. These means that total demand from our targeted
customers are 42 (16 surgeries X 3 clients) customers per day.

1.10

Market Share

12

Due to the fact that there is only one hospital which doctors are currently reffering
people and is always full. Some people they wait for more than a week when they dont
find space.Our market share is 10 people per day, this is about 8% of the total demand.

1.11

Selling Price
The survey indicate that people are paying for services about R400 if charged to their
medical card and about R 300 is cash price. To encourage people coming to our lab we
will start by R 250 per client.

1.12

Sales Forecast
The sales forecast is calculated by multiplying market share per prices and is indicated
this the table below: 10 client per day x R250 x 24 day a month = R 60,000.

1.13

Marketing Strategy
Molly X-Ray Scan Lab will have very modest cost to promote and advertise its services
it will rely mostly on word of mouth promotion by satisfied customers who would have
received high quality products at affordable prices.

Personal Visits to customers

13

Members of the cooperative will visit all targeted business and institution in their
premises and drop the brochures. The cooperative will also register with procurement
database for all government department and municipalities within the district.

1.14

Marketing Budget

The marketing budget will consist of travelling cost, roadshows, which can be done
three times every year. The monthly budget will be budgeted for the travelling cost to
market new customers.

Section 2

14

MANUFACTURING PLAN

2.1

Fixed Assets Required

2.3

Life of Fixed Capital and Depreciation

The lifespan of the fixed assets are as follows; this is based on supplier information.
Our depreciation will be on a straight line method.

The annual depreciation cost, assuming no scrap value, will therefore be:

15

2.4 Cost of Stock and Raw Materials (Rand Value)

The increase is estimated at 10% in all products and Services for the entire years.

2.5

Labour
All labour will be directly be involved in the daily operations of the business.

2.6

Overhead Expenses
Overhead costs are monthly indirect cost of the business. The table below shows the
breakdown of categories of expenses.

16

Section 2
MANAGEMENT PLAN
3.1

Form of Business

The business has been established and registered as a co-operative. The following
are members of the cooperative: Mashudu Khangale Lorraine, Ndidzulafhi Eunice
Mudau, Tondani Mavis Tshinyani, Virginia Netshivhera and Takalani Florance
Mulaudzi.

The Legal name of the business is Mveledzandivho Multi-Purpose

Cooperative Limited. The Management team is highly motivated, experienced and well
qualified.
3.2

Organisational Structure

Mashudu Lorraine Khangale will serve as the General Manager (Chairperson) and will
be responsible for the day-to-day running of the business.

Ndidzulafhi Eunice Mudau as the Finance Manager will be responsible for the
following:

evaluation of data pertaining to costs in order to plan budgets

evaluate financial reporting systems,

accounting,

collection procedures,

Investment activities,

17

Making recommendations for changes to procedures,

Operating systems,

Budgets,

Other financial control functions

Prepare operational and risk reports for management analysis.

Virginia Netshivhera as the Manufacturing/ Production Manager will be responsible for:

overseeing the manufacturing process,

drawing up a manufacturing schedule,

ensuring that the manufacturing is cost effective,

coordinate, set up and implement standard operating procedure for all

manufacturing operations,

drafting a timescale for the job,

reviewing the performance of subordinates,

working with managers to implement the companys policies and goals

Ndidzulafhi Eunice Mudau as the Marketing Manager and will be responsible for:

studying competitors' products and services,

exploring ways of improving existing products and services,

increasing profitability,

identifying target markets and developing strategies to communicate with them.

18

Table 3.2 Organisation Chart

General Manager
(Mashudu Lorraine
Khangale)

Bookkeeper
secretary
(Outsourced)

Financial Manager
(Ndidzulafhi Eunice
Mudau)

3.3

Production
Manager
(Virginia Netshifhera
Shonisani)

Marketing Manager
(Ndidzulafhi Eunice
Mudau)

Pre-Operating Activities

Owners have listed down the following activities to be undertaken before they can
operate the business:
1.

Preparing the business plan

4 weeks

19

2.

Applying for a grant and approval

8 weeks

3.

Contacting equipment suppliers

1 week

4.

Construction the Factory

6 weeks

5.

Hiring labour

1 days

5.

Installing the equipment

1 days

6.

Purchasing raw materials

1 days

The owner aims to implement her operation approximately two months after the grant
application, or six weeks after release of his grant.
These pre-operating activities with their corresponding timetable appear in Table 3.4 in
a Gantt chart.

20

Table 3.4

Gantt chart

MOLLY X-RAY SCAN LAB

Pre-Operating Activities
Timetable (in weeks)
Activities
1. Preparing the Business Plan
2. Applying/Approval of Grant
3. Contacting Equipment Suppliers
4. Constructing the Factory
5. Hiring Labour
6. Installing the Equipment
7. Purchasing Raw Material

10

11

12

13

14

15

16

17

18

3.4

Pre-Operating Expenses

3.5

Administrative Expenses

The owner wants to keep their cost as low as possible in order to be competitive.
The only cost they will incurred is the cost of communicating with supplier during
ordering stock or raw materials and during the need of repair.

The increase is estimated at 10% in all products and services for the entire years.

Section 4
FINANCIAL PLAN

4.1

Capital Requirement (Business Cost)

4.2 Financing Plan and Grant Requirement

4.3 Profit and Loss Statement (one year)

3 YEARS PROJECTED INCOME STATEMENTS

4.4 PROJECTED CASH FLOW STATEMENT FOR 3 YAERS (Rand)

PROJECTED MONTHLY CASH FLOW STATEMENT (RAND)

Excludes depreciation expenses and amortisation of pre-operating expenses which are non-cash items.*

Not equal to due to rounding.

4.6

3 YEARS PROJECTED BALANCE SHEET

4.7

Break-even Point (BEP)

The break-even point can be calculated as follows

4.8

What is the return on investment (ROI)?

4.9 Exit Strategy

In business planning, much is based on anticipation the business exit strategy has been
decided after careful considerations just like any other aspect of the business. Should
the partners wish to sell their equity; the growth of the business will make the following
exit strategy possible.
Return capital to financers / investors through dividend or borrowed funds for a
management buyout or seek financial partners for the exchange of shares (investor
companies, private investors). It is asked that the shareholders retain their capital
investment for a minimum period of 3 years after the business launch.

Business Plan
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