Entrepreneurship

Final Project

Topic: Business Plan

Submitted To:

Prof:Mr. Dawood Ilyas Butt

Submitted By:

Muhammad Jawad Rasheed 094005168

Shehryar Khan 094005045

Ramzan Khalid 094005

Program BBA (H)

Section A

Date 27-01-2012

School School of Business & Economics

University of Management & Technology

 Declaration

We hereby declare that the Project Report submitted here with by us to

Prof: Mr Dawood Ilyas Butt, University of Management &
Techonlogy, name is our own piece of work and it has not been
submitted to any other university nor published at any time earlier.
 Acknowledgement

In the name of Allah, the Most Gracious and the Most Merciful Alhamdulillah, all praises to
Allah for the strengths and His blessing in completing this project. All respect and possible
tributes goes to my Holy Prophet Mohammad (SAW), who is forever guidance and knowledge
for all human beings on this earth.

Special appreciation goes to my supervisor, Prof: Mr Dawood Ilyas Butt , for his supervision
and constant support. His priceless help of constructive comments and suggestions throughout
the experimental works have contributed to the success of this project.

We would like to express my thanks to my parents for their love and care. We are also great full
to those who indirectly contributed in this project, your kindness means a lot to me. Thank you
very much.
Table of Contents
Executive Summary.....................................................................................................................................6
Business Description:...................................................................................................................................7
MARKETING.................................................................................................................................................8
Industry Analysis......................................................................................................................................9
SWOT...................................................................................................................................................9
PEST ANALYSIS...................................................................................................................................21
Market size and trend................................................................................................................................22
Barriers to growth......................................................................................................................................23
Competitors:..............................................................................................................................................24
Market Segmentation................................................................................................................................25
Management.............................................................................................................................................26
Legal considerations..............................................................................................................................26
Human Resource Management.............................................................................................................26
Staffing Plan...........................................................................................................................................26
Job Descriptions.....................................................................................................................................27
Financial Projection...................................................................................................................................28
Capital Cost of the Project.....................................................................................................................28
Income Statement & ROE, ROI...............................................................................................................28
Projected Cash Flow Statement.............................................................................................................29
Projected Balance Sheet........................................................................................................................29
Break Even Analysis...............................................................................................................................30
Payback Period......................................................................................................................................31
Critical Analysis..........................................................................................................................................32
Potential Problems:...............................................................................................................................32
Obstacles and Risks in new business.....................................................................................................32
Contingency Plans for our Business.......................................................................................................33
Continuity Plan......................................................................................................................................33
Exit Strategy:..............................................................................................................................................34
Milestone...................................................................................................................................................36
Conclusion.................................................................................................................................................37
Appendix...................................................................................................................................................38
Executive Summary

This report is about establishing new business idea by using computerized technology. The idea
is to promote better and easy access health care services to general people. This business will be
beneficial for the patients who are far away from hospitals and are in sensitive troubles. PPHS
focuses on identifying, analyzing and distributing information about the universe of Health
Market Innovations operating in developing countries. Healthcare innovations through mobile
technologies have been used to improve the lives of many citizens of the world and are now
available and accessible In Pakistan to those who need them the most. This office will work for
24 hrs. We don’t have direct competitors but U health is indirect completion. Pakistan’s cellular
sector is best known for low-cost mobile connection charges, reduced tariffs, almost complete
coverage area and better mobile services for the general public throughout the country.

Return on equity is 31 % in first year and it increases to 47% and 52%. IRR shows positive value
so this project is god to adopt. Income statements showed positive values but it is not
compulsory in practice so there may be negative in few months but it doesn’t mean that business
cannot gain profit. Every business needs time to establish.
Business Description:

The PAKISTAN PUBLIC HEALTH SERVICES (PPHS) is a network that seeks to improve
the functioning of health markets in developing country with large numbers of private healthcare
providers. Funded by RAMZAN KHALID and JAWAD RASHEED and SHEHRYAR KHAN,
PPHS works to accelerate the diffusion of Health Market Innovations that lead to better health
and financial protection for the poor. PPHS focuses on identifying, analyzing and disseminating
information about the universe of Health Market Innovations operating in developing countries.
Health Market Innovations are programs and policies implemented by governments, non-
governmental organizations (NGOs), social entrepreneurs or private companies that have the
potential to improve the way health markets operate. These programs and policies increase
efficiency and effectiveness in transactions that occur in the health care marketplace which
contribute to improving health and financial protection, especially for the poorest and most
vulnerable.

The word innovation is in common usage by all sectors across the globe, yet it means different
things to different people. We ask ourselves, what makes something innovative and how are
innovations sustainable-in terms of resources and the business model? This series of studies
demonstrates some effective, sustainable innovations in the health sector in Pakistan. Many
Pakistani, regardless of their ability to pay, do not necessarily have preliminary knowledge of,
access to, or assurance of quality health services. Although some health issues are improving,
such as maternal and child health, many critical health issues still lag behind and remain
undocumented. As actors in the health market, we strive to provide sustained innovations that
will enable us to meet the health needs of Pakistani over time, particularly for the vulnerable.
Whether providing good public healthcare, access to clinics for those in remote areas, educating
mothers on pregnancy and childcare, or healthcare utilizing mobile technologies we are
constantly challenged to solve cross cutting issues and make interventions work. Each day we
search for better, effective, affordable, sustainable ideas to improve the way we work for the
benefit of healthcare in the country and often this means finding simpler solutions to complex
and chronic problems. In doing so, we are aware that sustained innovations that can address
critical health issues in the country will not be possible without the merging of expertise,
knowhow and resources from multiple actors and sectors. Therefore, in addition to carrying out
direct healthcare work in the field, PPHS also strives to identify health innovators, and facilitate
partnerships amongst those innovators, including those fueling the growth of mobile health.

Healthcare innovations through mobile technologies have been used to improve the lives of
many citizens of the world and are now available and accessible In Pakistan to those who need
them the most. These programs, by-products of partnerships of various actors, can help address
the traditional challenges of the national health system and facilitate widespread access to
information and quality services. This series of studies showcases these innovations and we hope
will encourage and inform key stakeholders on the opportunities for providing credible and
accurate health services to the public, including vulnerable populations, with the ultimate aim of
improving healthcare on a much greater scale.

MARKETING
Mobile Health
Mobile health, a term used for the practice of medicine and public health that is supported by
mobile devices.

In recent years, developing countries have experienced rapid growth in the application of
technology to improve the health literacy of the public. Pakistan is no exception and a similar
trend has been marked by an increasing number of health-focused technological tools, including
innovative programs aimed at educating the public about health information through short
message service (SMS).

Pakistan‘s SMS market is now the fifth largest in the world, and experts and stakeholders from
the private and public sectors have high hopes that SMS technology will improve the
dissemination of relevant health information to the public. The expansion of Pakistani mobile
network infrastructure is providing new possibilities to solve problems of health information
access, especially within poor and vulnerable populations who lack access to traditional health
facilities and programming. SMS technology is considered more promising than other forms of
communication mostly because it is cheaper than phone calls and internet access, and is easy to
use as it allows users to save and store messages thus making them retrievable later. However
continued development of mobile phone-based health tools (Mobile Health) can only happen
alongside continued advancements in technology, expansion of mobile network coverage, and
reduced prices of mobile phone devices and low tariffs.

Industry Analysis
SWOT

Weakness and solution

Pakistan‘s SMS market is now the fifth largest in the world6, and experts and stakeholders from
the private and public sectors have high hopes that SMS technology will improve the
dissemination of relevant health information to the public. The expansion of Pakistani mobile
network infrastructure is providing new possibilities to solve problems of health information
access, especially within poor and vulnerable populations who lack access to traditional health
facilities and programming. SMS technology is considered more promising than other forms of
communication mostly because it is cheaper than phone calls and internet access, and is easy to
use as it allows users to save and store messages thus making them retrievable later. However
continued development of mobile phone-based health tools (Mobile Health) can only happen
alongside continued advancements in technology, expansion of mobile network coverage, and
reduced prices of mobile phone devices and low tariffs.

In order to better understand the potential of mobile Health solutions in the Pakistani context,
this case study explores two specific programs driven by the private, for-profit sector in
Indonesia: Nokia Life Healthcare Services, initiated and run by the Nokia Corporation, and
Jatis/LAFAI’s “SMS Info Obat Murah” (SMS Affordable Drug Information), which is
collaboratively run by Jatis, an application platform provider, and Lembaga Anti-Fraud Asuransi
Indonesia (LAFAI), an Indonesian NGO designed to fight fraud in the health system. This paper
explores lessons learned from the two programs via interviews and secondary source reviews,
and analyzes each innovator’s ability to sustain and scale their Mobile Health tool in the
Indonesian market. This paper is not a comparison of the tools, nor do the findings represent the
entire Indonesian health market.
Nokia Life was launched in Indonesia in January 2010. The initial service offering included:
agriculture information such as weather, crop advisories and market prices, education services
such as “Learn English,” exam preparations, and entertainment services such as ring tone
downloads. Healthcare services were added in May 2011 in Indonesia. Nokia Life plugs
information gaps in daily life by providing hyper-local and personalized information to its
subscribers. For example, a farmer can acquire agricultural information on the set of crops he has
selected including weather forecasts, agricultural advice and market prices specific to his
location. Similarly, pregnancy advice is personalized based on expected date of delivery. Once
someone has subscribed, information is sent to the user daily without the need for any further
user action. The information is displayed in a service menu with an easy to read and intuitive
graphical interface. The program is pre-embedded into Nokia phones, providing phone owners
with easy access to the service without needing to install or purchase any applications. Prior to
launching Nokia Life Healthcare in Indonesia, Nokia had launched the service in India in July
2009 and in China in July 2010. “Staying healthy is one of the biggest areas of interest amongst
our target population. Staying healthy is staying productive which is so vital to a lower income
population. Hence, we added Healthcare information services expanding our Nokia Life service
portfolio [and] making it more relevant for our users,” according to Jawahar Kanjilal, Global
Head of Nokia Life. 13
Launched in 2009, Jatis/LAFAI’s SMS Info Obat Murah began as a partnership with Telkomsel,
enabling mobile phone users to access information on affordable pharmaceutical drug
alternatives through SMS subscription. At a cost of 500 IDR (about 0.05 USD) per SMS,
subscribers send an SMS including the name of a drug to the number “9123” and receive an
SMS in return with purchasing information about that drug.14 For example, patients requiring
information on alternatives to the patented drug Vomitrol would send an SMS:
“OBAT<space>Vomitrol” and in return, within minutes, receive an SMS with the name of the
alternative, generic drug, dosage , the type of packaging to expect and its latest price. If the
generic version of the drug is not available, a message is sent sharing that information.

This study explores strategies of the private sector to build an mHealth user base in Indonesia
and the partnership of not-for-profit and for-profit private sectors in improving access to health
information for target population, as demonstrated by Nokia Life and Jatis/LAFAI. Both
programs employed “easy-to-access” mechanisms as their competitive product strategy, such as
Jatis’ use of a Common Short Codes (CSC) system, in which keywords are queried to get the
information needed, or Nokia’s use of an “Icon Led User Interface” to guide the user through the
service menu with images instead of text. In Nokia Life, information is delivered over SMS so
the service works wherever the phone works, without the need for GPRS coverage or
subscription. The information is rendered with the Nokia Life service menu in a colorful icon-led
interface and organized in easy to reference folders.

In conclusion, linking industries and connecting public health with private IT and
telecommunication and not-for-profit sectors plays an important role in improving the mHealth
information market in Pakistan. Progress may be subtle and the impact of the initiatives in
disseminating health information amongst the users is yet to be scientifically proven, however
with more stringent measurement tools and attention paid to what is most relevant and cost
effective for end users, the market will improve and increase the health literacy of Pakistani,
especially those from poorer and more vulnerable populations.

Strengths

Limited access to credible and accurate health information sources

Health knowledge can be obtained in many ways; reading published health literature in academic
journals, reading blogs of medical experts, and receiving health information in person from
health providers. In Pakistan, health information sources are growing but remain insufficient to
educate the public. Sources are mostly available on-site in doctors’ offices or other health
providers. However, many people are reluctant to go to doctors’ offices due to geographical
barriers, transportation, cultural and traditional beliefs and low health literacy. Although poorer
populations may face more geographical and opportunistic challenges to access health facilities,
studies showed that, regardless of socioeconomic levels, many Pakistanis access health
information mostly through word-of-mouth (neighbors and relatives), health providers (when
they get sick and decide to go to the doctors), and media such as radio and television shows (if
they own media devices). "First (initial) information on illness comes from their family/relatives,
radio/television, and spiritual practitioners, shaman. They (patients) will go to a medical doctor
as a last choice.” A survey on health and well-being index involving 1004 respondents revealed a
similar finding where 42 percent of the respondents stated that family members or friends are
their primary resources for health information; meanwhile only 30 percent go to doctors to obtain
health information.

Low health literacy resulting in less involved patients

Health literacy is defined as “the degree to which individuals have the capacity to obtain,
process, and understand basic health information and services needed to make appropriate
decisions.”39 According to the National Network of Libraries in Medicine, one is said to be
health literate, if he/she can handle complex tasks including the ability to locate health
information, analyze the credibility and quality of the information, analyze the risks and benefits,
interpret test results, calculate dosages, ask pertinent questions, and make better treatment
decisions—tasks that require an individual to be visually, information, computer, and
computationally literate.

Lack of access to information on drug options

Patients’ rights in Pakistan are regulated by the Consumer Protection Law of 1999.51 It
guarantees the right to access to information on the efficacy, side effects, contraindications, and
prices of all medicines that could be used to treat a patient’s condition. However, many
Pakistanis go to their physicians to obtain prescribed medicines without being informed of other
choices available. Sometimes the reason is from the supply-side, as doctors are often given
incentives to prescribe patented drugs. This practice has become quite common in Pakistani
public and private hospitals based on aggressive promotion of patented drugs by their parent
companies.52 from the patients’ side; many demand prescriptions, believing that medicine is a
sure answer to sickness, when in reality it is not always the best choice.
When patients are prescribed medications, they generally do not understand they have the right
to request generic drugs. Furthermore, many feel that it is unnecessary or inappropriate to
question their doctors’ decisions about their health condition. In addition, there exists a common
perception that generic drugs are always of lower quality than patented drugs, and this
misperception over quality of generic drugs frequently discourages patients from asking for
cheaper options.53 Additionally, a lack of two-way communication between patients and doctors
within a health system that only provides information of the latest price of patented drugs but not
on equivalent drugs’ names and prices54 means that patients rarely understand the true
differences between benefits and quality of generic and patented pharmaceutical drug options.
Ubiquity of mobile communication

Cellular industry of Pakistan has matured into a competitive and progressive market which
requires new ventures to be explored by cellular operators and ultimately delivered to end users.

From a mere 5 million cellular subscribers in 2004, cellular subscribers jumped to 100 million in
2010. Voice has been the focus of cellular operators since the inception of cellular mobile
services in Pakistan but now the focus is shifting towards utilizing the huge potential lying in
data and value added services (non-voice).

Pakistan’s cellular sector is best known for low-cost mobile connection charges, reduced tariffs,
almost complete coverage area and better mobile services for the general public throughout the
country.

As of Today, cellular teledensity has reached 62.5% from just 3.3% in 2004 while almost 92% of
the land area and more than 10,000 cities/towns/villages are under the umbrella of by cellular
services.

From only 2000 cell sites to 30,417 in just six years, cellular services have reached to every nook
and corner of the country. However, there still exist challenges for the regulator and industry
alike such as quality of service, heavy taxation, lack of local content on mobile phones and
economic slowdown.

Cellular Penetration

Cellular penetration in the country has reached 62.5% at the end of January 2011 which means
that every 6 out of 10 people in Pakistan own a mobile connection. Cellular penetration had a
topsy-turvy trend in the recent past due to continuous data cleaning process by the operators and
blockage of un-registered SIMs by the operator.
Subscribers Mix

According to statistics made available by telecom operators, there were 104 million cellular
subscribers in Pakistan at the end of January, 2011 as compared to 99.2 million at the end of
June, 2010 showing a net increase of 4.8 million subscribers over the last seven months.

Almost all of the cellular mobile operators have contributed in this subscriber addition and
managed to maintain positive growth trend during the last two quarters.

Mobilink reached 32.1 million subscribers followed by Telenor with 25.1 million cellular
subscribers. Ufone performed well during the last four quarters and managed to increase its
subscriber base to 20.4 million whereas Warid has 17.6 million subscribers and Zong holds 8.9
million figure till January, 2011.
Cellular Market Share

Cellular market is moving towards maturity, stability and intense competition as operators are
dedicating their best efforts to achieve a higher stake in the overall market share. Over the last
calendar year, cellular market share has not altered significantly.

Mobilink still leads the pack with 31% market share while Telenor stands at 24%. Ufone
increased its market share to 20% and Warid has 17% stake in the overall subscriber base. Zong
has improved its market share and reached at 8% at the end of December, 2010.
Cellular Revenues

Cellular revenues stood at Rs. 126.5 billion during the first two quarters (Jul-Dec 10) of FY
2010-11 as compared to Rs. 122.6 billion for the last two quarters of FY 2009-10.

Quarter-wise analysis of the revenues as shown in figure below reveals that revenues have been
on the rise since the start of year 2010; however, there was a dip in the quarter of Jul-Sep 2010
due to huge loss in revenue reported by Mobilink and Telenor.

Mobilink being the SMP has the highest stake in overall revenue of the mobile cellular market.
Its revenue during the last four quarters stood highest followed by Telenor. Ufone has steadily
grown its revenues sitting at the third spot. Warid lies at the fourth spot while Zong is catching
up.

Cell Sites

The hallmark of the success of any service pertains to its geographical presence and coverage in
a country. In case of Pakistan from hills to plains, east to west, urban to rural, cellular services
have reached every nook and corner of the country.
All cellular mobile operators have collectively erected 30,169 cell sites by the end of December,
2010 as compared to 30,126 by the end of June, 2010.

Since major cities and towns have already been covered by the cellular services, therefore, the
focus of cellular operators has shifted towards unexplored areas where tough physical conditions
take longer than usual to install base towers.

Above given table shows an interesting comparison of the cellular operator market share and
their respective share in cell sites. Among the cellular operators, Mobilink has the highest
number of cell sites i.e. 7,952 and 26% share in overall cell sites.

However, if compared with its market share of 31% and no net additions throughout the year, it
is probable that focus of the company is more towards increasing its subscriber base rather than
expand its existing infrastructure.

Similar is the case with Telenor, Ufone and Warid who lag behind in infrastructure share as
compared to their respective market shares.
Zong is the only cellular operator which has a significantly higher infrastructure share rather than
its market share. Despite being the smallest operator, Zong has focused more towards raising the
network realizing the potential for future growth in the market.

Average Revenue per User (ARPU)

Average Revenue per User (ARPU) is one of the key indicators to the financial status of telecom
market in any country. Pakistan’s cellular companies had to face a tough time by the end of last
year due to amplified fixed investments and global recession. However, the cellular industry has
bounced back from this temporary shaky period and industry ARPUs are on the rise ever since.

The industry reached a collective ARPU of US$ 2.48 by the end of FY 2009-10 and currently, it
stands at US $2.53 as of December, 2010.

With the upcoming 3G licensing, it is expected that rise in ARPU will sustain for a longer period
of time as cellular operators owe to find new revenue streams via data services and Value added
services.
Short Messaging Service (SMS)

Short Messaging Service (SMS) is one of the important features of cellular mobile services and a
vital source of revenue for cellular companies. Figure below shows a steadily growing trend of
SMS over the last five quarters.

All cellular companies generated approximately 100 billion SMS during Jul-Dec 10 as compared
to 86 billion during the preceding two quarters. This shows a 16% increase in the SMS traffic in
just two quarters.

Ufone leads the SMS traffic parameters by a clear margin followed by Telenor and Mobilink.
Warid and Zong have significantly low SMS traffic as compared to their competitors.

This huge rise in the SMS traffic owes largely to the attractive and wide range of bundle
packages being offered by all the operators. Daily, weekly, fortnightly, monthly even unlimited
packages are being offered at very low rates by cellular companies to cap the true potential of
this value added service.

Opportunities

The role of mobile technology in disseminating health information in Pakistan

Increased use of cell phones and the spread of text messaging amongst the population at the
lower socioeconomic level present new opportunities for consumer engagement with a new
segment market for the for-profit companies and an opportunity for the not-for-profit private
sectors to disseminate health information amongst poor and vulnerable populations. With these
amenities, it is expected that SMS technology could bridge the digital divide caused by limited
access to other modes of modern communication technology such as the internet within the
health sector more specifically, SMS presents the opportunity to improve outreach
communication and disseminate information between community practitioners.
POTENTIAL

Potential for improved effectiveness and efficiency through transformations (e.g.

commercialization and cost recovery programmers).

THREATS

Inadequate budgets are declining in real terms (inflation).

1. Prevailing economic situation: unlikely that government will increase budgetary

allocations.

2. Unstable macroeconomic and political environment.

3. Donors are withdrawing or scaling down.

4. Retrenchments usually start at the bottom with the community service providers.
PEST ANALYSIS
Political

There is now growing political focus and pressure on healthcare authorities across the world.
This means that governments will be looking for savings across the board. Some of the questions
the industry should ask are:

 What pressures will be put on pricing?

 What services will be cut?
 Will the same selection of drugs be available to everyone?

In addition to this, could there be more harmonization of healthcare systems across Europe or the
USA? What impact will reforms have on insurance models?

Economic

The global economic crisis still exists yet government reports still show that the spend on
healthcare per capital continues to grow. Will the current healthcare models exist tomorrow? The
growth in homecare (as seen in the Nutrition sector) demonstrates how nursing services have
moved to the private sector and have become a key business offering.

The reduction in consumer disposable income will have an impact on those countries using
health insurance models particularly where part payment is required.

These economic pressures are seeing an increased growth in strategic buying groups who are
forcing down prices.

Increased pressure from shareholders has caused a consolidation of the industry: more mergers
and acquisitions will take place over the coming years.

Social / Culture

The increasing aging population offers a range of opportunities and threats to the pharmaceutical
industry. The trick will be to capitalize on the opportunities.

There is also the problem of the increasing obesity amongst the population and its associated
health risks.

Patients and home careers are becoming more informed. Their expectations have changed and
they have become more demanding. Public activism has also increased through the harnessing of
new social networking technologies. How can pharmaceutical companies get closer to consumers
without over stepping the regulatory boundaries?

Technological

Technological advancements will create new business prospects both in terms of new therapy
systems and service provisions. The online opportunities will see the growth in:

 New info and Communications technologies.

 Social Media for Healthcare.
 Customized Treatments.
 Direct to Patient Advertising.
 Direct to patient communications.

Market size and trend

Global Healthcare Industry

The global healthcare services market is forecast to reach $3 trillion by 2015, according to
research from Global Industry Analysts. Investment in sectors such as home healthcare,
healthcare IT and telehealth are expected to continue fuelling market expansion. Due to the
world’s aging population, the demand for home healthcare is likely to continue climbing over the
years to come.

The healthcare services industry is labor intensive and overburdened in many regions, making
telehealth and healthcare IT attractive options. With medical technologies continually
developing, these options are proving beneficial to patients and the overall healthcare system.

The global healthcare services market is impacted by government legislation and incentives.
Spending in the sector continues to climb, partly due to the availability of new drugs, higher
health insurance premiums and advanced technology services. Demographic profiles also play an
important role in the industry, with demand created by lifestyle-related medical conditions. In
addition, an aging population means that age-related health conditions continue to create
demand.
Spending on home healthcare is forecast to continue rising as elderly and terminally ill patients
opt for the ease of receiving healthcare at home rather than in hospitals or clinics. As with many
other industry sectors, information technology is also affecting the area of healthcare services,
with many healthcare bodies concentrating their efforts on setting up or enhancing their
electronic medical records systems, electronic health records and personal health records.

Barriers to growth
Increased user expectations for features and services and more value for the money
Technology keeps getting smarter and cheaper, making information more accessible to the
public. In the near future, users may not want to pay the same price for old technology and the
same services. The respondents of the survey of SMS Info Obat Murah indicated that the current
price at 500 IDR/SMS is acceptable. However, as the mobile health experience in the country
improves, the users of SMS Info Obat Murah may expect more value for their money. “I hope
SMS Info Murah will add more drugs into their database to provide all generic drug equivalents
in the future,” said 35 year-old user from Bondowoso, East Java. A user from Bekasi stated, “If
possible, I expect SMS Info Obat Murah can provide not only the generic drug’s name but also
the location where I can get it.”

Unwillingness to pay from the lower socioeconomic group

While the users interviewed were mostly professionals, the lower socioeconomic group and
those at the bottom of the pyramid may not be willing to pay 500 IDR for the message. It should
be noted that the trend of SMS tariffs in the country continues to decrease.

SMS character limitations: too short for thorough health information

Respondents of the survey at Posyandu indicated the desire to have more thorough health
messages; despite the additional 80 characters of Nokia Life messages (compared the standard
160-character message). Nokia Life tries to overcome this barrier by sending information on a
particular health topic by spreading it across multiple individual messages delivered in the
correct sequence, one message a day, building a body of knowledge for the user. Thus, providers
who implement SMS based health information are required to use plain language that is a clear
and straightforward and to avoid using expressions to improve accuracy, certainty and
precision.”

Competitors:
We don’t have such direct competitors but there is indirect completion.
Market Segmentation
Healthcare service has a wide target population with three specific segments. The first target
audience segment is pregnant women and young mothers who receive information related to
pregnancy and child healthcare. The second segment is people who are specifically interested in
a health topic like diabetes, and heart, respiratory and digestive health. The third segment is more
broadly people who are interested in general health and daily practices that they can adopt for a
healthier lifestyle. These Nokia Life General Health services offer separate men’s health and
women’s health services targeting both men and women across all age groups from teenagers to
senior citizens.

Target market

Program coverage could reach 22 million cell phone users in Indonesia (roughly 14 percent of all
cell phone users in the country). This forecast is based on three variables: the roughly 220
million mobile numbers currently available in the market and; the assumption that there are two
numbers per user and; each user belongs to a 5-person family, and calculations are based on the
company’s promotion plans.

Advertisements and promotions

 Print Media
 Mobile marketing
 Through hospitals
 Doctor recommendations
 Social networks

Management

Legal considerations
There are numerous legal implications to consider in our PPHS. While many of these are a
simple matter or filling out a form or registering our business, it is important that we seek
professional advice as ultimately, if things go wrong, we could be liable.

In our case we will have legal agreement with the mobile phone company, and we will also get
our company name registered legally

Human Resource Management

As a small business owner, we will always be involved in human resource management. Good or
bad, it will always be there for us to handle.

Staffing Plan

Before we start to think about hiring, we will need at least a basic staffing plan. The plan should
sort out how many employees we expect to hire, the type of employee we're looking for, and
what they will be expected to do. The plan should also address how the employee expenses will
be covered.

Basically in our company we will hire staff consists of 18 people, in which we will hire qualified
and trained staff these are the persons who will operate and listen to the customers availing the
medical services they will listen different medical queries and send them directly to Doctors who
will give prescriptions accordingly.

In our staffing plan these are the things we would like to include

 Approach to finding new employees

 Training

 Job descriptions

How we will find new employees

An important part of good human resource management is finding the right employees for the
work we are doing. Our human resources are the most important asset we have, so we want them
to be of high value to our organization, and that means they need to have the same culture as we
and our organization.

In order to get high value employees, we'll have to spend some time finding them. Here are ways
of finding new employees:

 ads in newspapers (general or trade specific)

 online Ads (on social media)

Hiring is a very costly process and time consuming, so we will not waste our time in hiring the
most valuable employees, we will just short list those employees by the criteria having good
communication skills who can deal with the customers in an effective way.

After hiring those short listed employees we will arrange different training programs in order to
get them well trained as it is the new business idea so it will take time for them to get trained

Job Descriptions

The process of writing a job description in our company requires having a clear understanding of
the job’s duties and responsibilities. The job posting should also include a concise picture of the
skills required for the position to attract qualified job candidates.
 Financial Projection

Capital Cost of the Project

CAPITAL COST OF THE PROJECT

(Rs.in,000)
Description Local Foreign Total
Plant & Machinery 955 0 955
Furniture & Fixture 277 277
Preliminary Expenses 10 10
Pre-production Expenses 400 400
Fixed Capital Cost 1642 0 1642
Working Capital 259 259
Total 1902 0 1902

Income Statement & ROE, ROI

Projected Income Statement (Rs. In 000)

Year 1 2 3 4 5 6
Capacity Utilization in
%age
DESCRIPTION 80 90 95 95 95 95
Revenue 3833 4304 4539 4539 4539 4539
COST OF SERVICES
Utilities 238 268 283 283 283 283
Stores & Spares 14 15 15 15 16 16
Repair & Maintinance 10 10 10 10 10 11
Depreciation 233 233 233 233 233 151
Total Cost of services (495) 525 541 541 542 460
Gross Profit 3338 3778 3998 3998 3997 4079
OPERATING EXPENSES
Admin Salaries 2448 2534 2623 2714 2809 2908
General Expenses 39 40 40 40 40 40
Selling, Marketing Expense 70 20 20 20 20 20
Total Operating Expenses (2557) 2594 2683 2775 2870 2968
Operating Profit 781 1184 1315 1223 1127 1110
NON OPERATING EXPENSES
Profit Before Tax 781 1184 1315 1223 1127 1110
Tax Provision @ % rate 25 195 296 329 306 282 278
Net Profit after Tax 586 888 986 917 845 833
R. O. E % 31 47 52 49 45 44
R. O. I % 31 47 52 49 45 44

Projected Cash Flow Statement

 PROJECTED CASH FLOW STATEMENT
Year 0 1 2 3 4 5 6
Capacity Utilization in %age
DESCRIPTION 80 90 95 95 95 95
SOURCES OF FUNDS:
Operating Profit 781 1184 1315 1223 1127 1110
Depreciation 233 233 233 233 233 151
Total Operating Sources 0 1014 1417 1548 1456 1360 1261
Equity/Stock 1886 0
Total Sourses of Funds 1886 1014 1417 1548 1456 1360 1261
APPLICATION OF FUNDS
Fixed Assets 1642 277.2
Tax 195 296 329 306 282 278
Increase in C. Assets 744 -490 9 8 9 9
Decrease in C. Liabilities
Others
Total Appl. of funds 1642 939 -193 338 314 290 564
Cash Surplus/Defficit 244 75 1611 1210 1142 1070 698
Opening Cash 0 244 319 1930 3139 4281 5351
Closing Cash Balance 244 319 1930 3139 4281 5351 6048

Projected Balance Sheet

PROJECTED BALANCE SHEET

Year 0 1 2 3 4 5 6
Capacity Utilization in %age
80 90 95 95 95 95
DESCRIPTION
ASSETS:
Current Assets:
Cash 24 319 193 313 428 535 604
4 0 9 1 1 8
Other Current assets 744 255 264 272 281 290
Total Current Assets 1063 218 340 455 563 633
4 3 3 2 8
Fixed assets at Cost 1642 164 164 164 164 191
2 2 2 2 9
Accum. Depreciation 233 466 699 932 116 131
5 6
Total Fixed Assets 1409 1176 943 710 478 604
Total Assets 2472 336 434 526 610 694
1 7 4 9 2
 PROJECTED BALANCE SHEET
Year 0 1 2 3 4 5 6
Capacity Utilization in %age
DESCRIPTION 80 90 95 95 95 95
LIABILITIES & EQUITY:
Total Liabilities 0 0 0 0 0 0
EQUITY:
Capital 1886 188 188 188 188 188
6 6 6 6 6
Retained Earning 586 147 246 337 422 505
4 0 7 3 6
Total Equity 2472 336 434 526 610 694
1 7 4 9 2
Total Captalization 2472 336 434 526 610 694
1 7 4 9 2
Assets - Liabilities 0 0 0 0 0 0

Break Even Analysis

BREAKE-EVEN ANALYSIS
@ 100 % Production Capacity
Fixed Variable Total
DESCRIPTION Cost Cost Cost
- Utilities 0 283 283
- Stores & Spares 2 14 16
- Repair & Maintinance 1 9 10
- Depreciation 233 233
- Admin Salaries 2809 2809
- General Expenses 16 24 40
Selling, Marketing Expense 1 19 20
Tax Provision 282 282
Total 3344 349 3693
Sales = 4538.8
Variable Cost = 349
Contrib. Margin = 4189
Break-even Point (% age of Capacity Utilization) = 79.8 %
PAYBACK PERIOD
YEAR CAPITAL OPER. DEPREC- TAXES W.P.F NET CASH Payback Balance
OUTLAY PROFIT ATION FLOW Years Net Cash
Flow
0 1886 -1886
 1 781 233 195 0 819 1.000 -1068

2 1184 233 296 0 1121 0.952 0

3 1315 233 329 0 1219 0.000 0

4 1223 233 306 0 1150 0.000 0

5 1127 233 282 0 1078 0.000 0

6 1110 151 278 0 984 0.000 0

7 1008 151 252 0 907 0.000 0

8 902 151 226 0 828 0.000 0

9 793 151 198 0 745 0.000 0

10 679 151 170 0 660 0.000 0

S. Value 151 151
Payback Period = 1.952 Years

Payback Period

Critical Analysis

Potential Problems:
Things are never easy for a small-business. No matter how hard you try, there are always Start up
problems to solve and fires to put out. At least you can take comfort in knowing you're not alone.
Every small-business owner goes through the same thing

So here is the list of the problems our medical service will face:

Our current challenge is in raising capital for the medical service to go from having self-funding
and bootstrapping to being able to hire people and sell more services in many Areas of Pakistan.
It is a pretty classic problem, but we are in the middle of that.

Being, as we are, a medical service company transferring medical services for 24 hours to our
customers with an effective way is the challenge that we cant ignore. Another big challenge that
we will face is the mostly the people do not know how to operate this service. For this a huge
marketing campaign will launch to let people know about this service

Another challenge is that the availability of Doctors it’s a big challenge for us to make sure that
the Doctors are available for their service for 24 hours, to overcome this we will think about the
time shifts of Doctors, e.g there will be numbers of doctors who are hired for this service some
will give service to patients in the morning and some will in the night.

Another problem is that mostly in rural areas where there is no medical facility, people know
how to use mobile phones but they will be un-aware of this medical service due to lack of media
awareness. At last but not the least government will allow us to start this kind of business or not
this is also the main problem.

Obstacles and Risks in new business

Whenever you start up a new business Obstacles and Risks are always welcomed.

Anxiety: Sometimes the anxiety takes over and anxiety can be one of the worst starts up
obstacles a person or business owner can have. Anxiety of not making profits.
Money: Ideally, we should have 4 to 6 months of income to draw from while waiting for a return
on our business. It’s also the main obstacles for our business that how much time it will take to
have break even and then making profits.

Hiring the Doctors: Will the doctors are able to work with our medical service or not, mostly
the doctors are doing their Job in different clinics and in Hospitals, so it is ample time for them to
work for us and it is an obstacle to convince them to work with us.

Choosing the best Cellular service: This is the main Obstacle how we can choose the Best
Cellular service who can give services with their GSM technology in a effective way

Convincing the Customers: How we can convince customers to use our medical services and
create awareness among the Customer.

Technology change: technology changes day by day so there is another obstacle of updating our
software whenever the technology changes.

Government Policy: Useless Taxes implemented by Government is also the main Hurdle.

Contingency Plans for our Business

A contingency is an unexpected event or situation that affects the financial health, professional
image, or market share of any company. It is usually a negative event, but can also be an
unexpected windfall such as a huge order. Anything that unexpectedly disrupts a company's
expected operation can harm the company even if the disruption is because of a windfall. That is
why companies create contingency plans for many possible situations, so company management
has a pre-researched plan of action to immediately follow.

Crises Management: Many types of crises that can affect our services that include natural
disasters, terrorist attacks, or even angry customers.

Continuity Plan: Business continuity plans cover a range of situations, including the death of a
key executive or manager, crisis events that threaten to shut down business operations for an
extended period of time, and any other financial situation or unexpected event that threatens to
destroy or injure our company.
Mismanagement: Fraud, theft, operational errors, mismanagement and personal scandal are all
crises that could happen in our business.

Virus and System Hack: now a days it is certain that you system or software is being hacked by
someone or affected by virus these are also the unexpected causes that can cause significant
business interruption which could be disastrous to our services

Business contingency plan can overcome all the unexpected business interruption.
The plan creates a crisis management team empowered to control any interruptions of the
business. Properly constructed, this crisis management team has the capability of responding
appropriately to any interruption; from the interruption of telephone service to and including a
worst case scenario involving complete inaccessibility of facilities.

As a proactive management controlled program, BCP modifies the consequences of a business

interruption to a level acceptable to management and provides a tested vehicle when executed
will permit an effective resumption of interrupted business functions.

BCP objectives are to: Ensure continuity and survival of the business, provide protection of
corporate assets, provide management control of risks and exposures, provide preventative
measures where appropriate, and to take proactive management control of any business
interruption.

Exit Strategy:

If the suggested idea is not successful the owners will appliance necessary measures to dissolve
the business. The assets are the property of the creditors and shareholders. The owner of the
business will sell the assets and distribute between creditors according to the deal worked and
shareholders and stakeholders. Office equipment and furniture will be sold, auctioned off and
pay back to creditors. IP, like patents, will most likely lapse or be sold with the other assets of the
company.

Every new business takes time to reach at breakeven and to make profit. It need time to be
popular among the users. This idea will also need time to build up and make profit so the owners
will keep this in mind while evaluating the state of the business, and make adjustments when
possible to keep the business running with a positive cash flow. May be first 2 years the cash
flows comes with negative value, this will not the sign of failure of business.
Milestone
Conclusion

The expansion of Pakistani mobile network infrastructure is providing new possibilities to solve
problems of health information access, especially within poor and vulnerable populations who
lack access to traditional health facilities and programming. Mobile health, a term used for the
practice of medicine and public health that is supported by mobile devices. All cellular
companies generated approximately 100 billion SMS during Jul-Dec 10 as compared to 86
billion during the preceding two quarters. This shows a 16% increase in the SMS traffic in just
two quarters.

In financial analysis break even shows 80% capacity utilization. There are positive values in
income statement which shows that this business will provide profit. IRR is also positive it
means this project is worthy and we have to accept it. These financials are on 100% equity based
so that interest factor is eliminated.

Software hacking is very common problem now a days. Business contingency plan can
overcome all the unexpected business interruption. The plan creates a crisis management team
empowered to control any interruptions of the business.

If the suggested idea is not successful the owners will appliance necessary measures to dissolve
the business. The owner of the business will sell the assets and distribute money back to
shareholders.
Appendix
PRELIMINARY EXPENSES
Description Amount Period * Rate Charged
(months) (%) Rs. (000)
Firm Registration 0
Electric Connection 0
Consultancy 0
Others 10
Total 10
* Based on one year construction period.
PRE-PRODUCTION EXPENSES
Description Amount Period Rate * Charged
(months) (%) Rs. (000)
Salaries 2448 0 1 0
Utilities 30 1 0 0.00
Administrative Expense 0 1 1 0
Others 400
Sales of Goods 0
Total 400
* Calculated on the basis of first year expenses

FURNITURE & FIXTURE

Description NOs. Value Total
Rs. (000) Rs. (000)
AC 2 45 90
Printer (Dot Matrix) 1 10 10
Chairs 10 3 30
Tables 8 3 24
Office Furniture 1 15 15
Teachers'chairs 0 1.2 0
Bath room Fittings 1 2 2
Steel Almirah 0 2 0
Curtains 2 3 6
Telephones 9 10 90
Single Bed 0 3.5 0
Fans 4 2 8
Tube Lights & Bulbs 6 0.2 1.2
Others 1 1 1
Total 277.2

Description Rate NOs. Rate Total

%age Rs. (000) Rs. (000)
(B)- Local Equipment:
laptps 8 45 360
Database 1 500 500
#NAME? 0 15 0
- Flate Loc Machine 0 0 0
- Embroidary Machine (Singer) 0 0 0
- Vessels (5 m3) Special 0 0 0
- Pumps (1 hp) 0 3 0
- Pumps (0.5 hp) Special 0 25 0
- Motors (5 hp) 0 15 0
- Generator (5 hp) 1 50 50
- Air Compressor 0 200 0
- Conveyor Belts 0 50 0
- Filters 0 25 0
- Piping & Valves @ % of Eq.
cost 0 0
Subtotal 910
Inland Freight * 0
Inland Insurance 0
Sundry Expenses** 0
Total (B) 910

Description Rate NOs. Rate Total

%ag
e Rs. (000) Rs. (000)
(C)- Electrical & Instrumentation:

Instrumentation including DCS 0 0

Motors/Switch gears/Elect. & Lighting 0
Trasformers 0
Uninterrupted Power Supply(UPS) 32
Motor Control Centers 0

Total (C) 32
(D)- Utilities

Tube Well 0
Despenser 7
 Despenser cool 6
Steam & Air lines with accessories % of
Eq. 0 0
Insulation (pipes, reactors etc.) % of Eq. 0 0
Water lines 0
Instrument Air compressor 0
Laboratory 0
Cooling Tower 0
Air Conditioning unit 0
Duct lines 0
Workshop Equipment (lath, tools etc) 0
Photocopy machine 0
Overhead crane 0
Furnace Oil Tank 0
Paints 0
Generator
Others
Total (D) 13
Total (B)+(C)+(D) - local Equipment 955
Total (A)+(B)+(C)+(D) - All
Equipment 955

MANPOWER REQUIREMENT & COST THEREOFF

Year Monthly 1 2 3 4 5 6
Salary Capacity Utilization in %age
NOs Rs.
DESCRIPTION . (000) 80 90 95 95 95 95
Factory:
Principal 0 0 0 0 0 0 0
Teachers
Pre-School 0 0 0 0 0 0 0
Primary 0 0 0 0 0 0 0
Game instructor 0 0 0 0 0 0 0
Chaperon 0 0 0 0 0 0 0
Helpers 0 0 0 0 0 0 0
Librarian 0 0 0 0 0 0 0
Computer Operator 0 0 0 0 0 0 0
 Security Staff 0 0 0 0 0 0 0
Sweeapers 0 0 0 0 0 0 0
Overheads % * 0 0 0 0 0 0 0 0
Sub Total 0 0 0 0 0 0 0
Admin./Sales:
Chief Executive 0 0 0 0 0 0
General Manager 0 0 0 0 0 0
G.M. Marketing 0 0 0 0 0 0
Managers 1 30 360 373 386 399 413 428
Assist. Managers 0 0 0 0 0 0
198 205 212 220 228
Computor Operators 8 20 1920 7 7 9 3 0
Clerks/Salesmen 0 0 0 0 0 0
Security Staff 0 4 0 0 0 0 0 0
Peons 2 5 120 124 129 133 138 143
Drivers 0 0 0 0 0 0
Sweepers 1 2 24 25 26 27 28 29
Electrician 0 5 0 0 0 0 0 0
Overheads * 1 0.66 24 25 26 27 28 29
253 262 271 280 290
Sub Total 12 2448 4 3 4 9 8
253 262 271 280 290
Total Expenses 12 2448 4 3 4 9 8
* Overheads 100 % are calculated on basic salary(Basic salary is 70 % of gross).

DEPRECIATION SCHEDULE
Year % Cost Contin- Total 1 2 3 4 5
DESCRIPTION Rate gencies Cost

- Civil Engineering 5 0 0 0 0 0 0 0 0
- Plant & Mach.(at site) 955 0 955
- Errection & Install. 0 0 0
Total Plant & Mach. 10 955 0 955 96 96 96 96 96
- Motors & Vehicles 20 0 0 0 0 0 0 0 0
- Furniture & Fixture 20 277 0 277 55 55 55 55 55
Amortized Expenses
- Preliminary Expenses 20 10 0 10 2 2 2 2 2
- Pre Production Exp. 20 400 0 400 80 80 80 80 80
T.Int. during Construct. 0 0 0 0 0 0 0 0
Total Amortized 20 410 0 410 82 82 82 82 82
Total Depreciation 1642 0 1642 233 233 233 233 233