Listed below are the assignment instructions. The assignment must be original, timely, quality. The initial project and the professor feedback is included.
Creating a Business Plan Project: Part 2
In this second and final portion of the project, you will create the remaining portions of your business plan and complete a capital budgeting plan. Your plan should include:
A Financial Model
Financial Projections
Return on Investment (ROI)
Managing the Cost of Capital
Capital Budgeting Plan
Manage the cost of capital in order to maximize profits, including a discussion distinguishing working capital and net working capital.
Discuss at least two strategies required for managers related to planning for capital expenditures.
Address the tradeoff between profitability and risk as they are related to capital.
You will submit this final portion along with the portion previously submitted in Unit III. Be sure you have updated the sections after review and incorporate the feedback from the professor.
Include the following:
Executive summary
Business Description
Time Value of Money
Four Basic Financial Statements – put in the Appendix
Financial Model Used
Financial Projections
Return on Investment (ROI)
Managing the Cost of Capital
Capital Budgeting Plan
Your final project will be at least eight (8) pages in length, including the sections written in the previous unit. Be sure to include a separate title page and references page. Use subheadings for all the elements of the assignment, as well as for the conclusion. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.
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Creating a Business Plan Project – Part 1
Executive summary
Mission Statement
“Our organization is dedicated to enhancing the standard of healthcare services by
fostering innovation, promoting accessibility, and prioritizing patient-centric care. Our
primary objective is to deliver comprehensive and inexpensive medical care solutions to our
local community.”
Products/Services
HealthWave Healthcare aims to offer an extensive range of healthcare services,
encompassing a wide spectrum of medical care options. Our comprehensive range of services
encompasses primary care, specialized medical evaluations, state-of-the-art diagnostic
testing, convenient telemedicine examinations, and carefully tailored wellness initiatives. The
extensive array of services provided guarantees that our esteemed patients receive
comprehensive and individualized care, amalgamating conventional face-to-face
consultations with pioneering virtual healthcare alternatives, all with the objective of
augmenting their welfare and overall health results.
Reason for establishing the company
The motivation behind the establishment of this enterprise is from the belief that
equitable access to high-quality healthcare should be extended to all individuals, rather than
being limited to a privileged few. Given our awareness of the inherent deficiencies within the
healthcare system, we were motivated to intervene and enact constructive transformation.
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The aim of our business is to address the significant disparities in the provision of healthcare
services, with the goal of ensuring that all individuals receive adequate care and are not
excluded from the system. Our motivation stems from our passionate wish to offer top-notch
healthcare as a fundamental entitlement rather than an extravagance.
Business Description
Type of Business
The establishment shall function as a Limited Liability Company (LLC) bearing the
name “HealthWave Healthcare, LLC.” This particular legal framework offers notable
benefits, effectively safeguarding its proprietors from personal accountability, all the while
granting them considerable leeway in terms of administration and taxation. HealthWave
Healthcare, operating as a limited liability company (LLC), adeptly amalgamates the
advantageous attributes of a corporation, namely the safeguarding of liability, with the
streamlined operational framework and fiscal advantages typically associated with a
partnership. This practice guarantees that the founders are able to concentrate their efforts on
delivering exceptional healthcare services, while simultaneously safeguarding their personal
assets from potential business hazards.
Industry
HealthWave Healthcare, LLC aims to provide services within the healthcare industry,
a vital and ever-evolving sector that plays a crucial role in promoting societal well-being.
This particular sector encompasses a vast array of services, spanning from primary healthcare
provisions to specialized medical interventions, diagnostic examinations, telemedical
consultations, and programs promoting overall well-being. The industry functions within a
dynamic regulatory environment that undergoes continuous evolution, accompanied by
technology improvements and changing patient expectations. HealthWave Healthcare is
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positioned to make a significant contribution to the healthcare industry through the
implementation of ground-breaking and patient-centric approaches. These approaches are
designed to effectively tackle the evolving healthcare environment, thereby improving the
accessibility, cost-effectiveness, and overall caliber of medical services.
Team Experience
The composition of our founding team comprises of seasoned healthcare
professionals, whose collective expertise spans over four decades within the industry. Our
organization possesses a multifaceted array of proficiencies encompassing the fields of
medicine, healthcare administration, and technological advancements.
Business Goals
Short Term
1. Within its first 2 years in business, HealthWave Healthcare plans to capture 10% of
the regional market (Ginter et al., 2018). The focus of this objective is to solidify ties
and earn the confidence of the locals.
2. In the first year, the organization intends to implement specialized medical
consultations and diagnostic testing services, thereby expanding its repertoire of
offerings to encompass a more comprehensive range of healthcare requirements.
Long-term
1. HealthWave Healthcare plans to grow in the next five years by opening more offices
in nearby areas and having a greater regional and national influence (Ginter et al.,
2018).
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2. The corporation endeavours to forge alliances with indigenous healthcare providers
and entities, thereby cultivating synergy and engendering a holistic healthcare system
that proffers uninterrupted and unified care to patients.
Target Customer
HealthWave Healthcare’s target demographic encompasses individuals and families
who are actively seeking medical services that are both easily accessible and financially
feasible, without compromising on the paramount aspect of exceptional quality (Ginter et al.,
2018). These astute individuals place great importance on the factors of convenience and
tailored attention. They may place a high degree of importance on the availability of
telemedicine as a means of conducting consultations, demonstrating a discerning inclination
towards proactive health measures.
Trends and Major Competitors
The healthcare sector is currently undergoing a notable transformation, wherein there
is a discernible inclination towards the adoption of telemedicine and a greater emphasis on
preventive care. This shift can be attributed to the prevailing global circumstances that have
necessitated a re-evaluation of traditional healthcare practices. Prominent competitors within
our geographical area include well-established healthcare entities as well as telemedicine
platforms.
Differentiation
What distinguishes HealthWave Healthcare from its competitors is its unwavering
dedication to a patient-centric methodology, harnessing state-of-the-art technology to
augment the healthcare encounter (Ginter et al., 2018). The prioritization of preventive care
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and the implementation of wellness programs will undoubtedly distinguish us from our
competitors.
Time Value of Money
The time value of money holds paramount significance within the framework of
HealthWave Healthcare, LLC. It acknowledges that money’s value varies over time as a
result of things like inflation and possible investment possibilities (Weygandt et al., 2020).
Through an in-depth comprehension of this fundamental principle, the organization is
empowered to make judicious and discerning choices pertaining to its financial matters
(Weygandt et al., 2020). For example, they will evaluate the financial benefits of purchasing
medical equipment, establish competitive prices, and choose the best time to expand. This
tactical use of time value of money guarantees prudent resource allocation, which eventually
boosts profitability and fosters long-term growth for the business.
Financial Tools
Four Key Financial Statements
Income Statement – This statement will offer a concise overview of our monetary inflows,
expenditures, and resultant profitability within a designated timeframe (Zutter & Smart,
2022). It facilitates the monitoring of our financial viability.
Balance Sheet – The balance sheet will present an overview of our organization’s financial
status, encompassing its assets, liabilities, and equity.
Cash Flow Statement – This statement effectively monitors the inflow and outflow of money
within the confines of our enterprise (Zutter & Smart, 2022). It is essential for maintaining
liquidity and making sure we have the money to pay our debts.
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Budgeted Financial Statement – As a new enterprise grappling with constrained resources,
we shall place substantial reliance on the practice of budgeting to judiciously apportion our
financial reservoirs (Zutter & Smart, 2022). The utilization of a budgeted financial statement
will provide a framework for making informed judgments regarding our expenditures and
investments.
Critical Ratios
Liquidity Ratio (Current ration) – This particular ratio serves as an indicator of our
capacity to fulfil immediate financial obligations. A more elevated current ratio is deemed
more desirable, as it signifies enhanced liquidity.
Profit Margin Ratio – This ratio quantifies the proportion of every unit of currency earned as
revenue that is ultimately converted into net profit (Weygandt et al., 2020). It aids in the
evaluation of the business viability.
Debt-to-Equity ratio – This ratio provides insight into the relative share of debt utilized for
the purpose of financing our activities in comparison to equity (Weygandt et al., 2020). It is
necessary for determining the level of financial advantage and risk that we are at.
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References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health
care organizations. John Wiley & Sons.
Weygandt, J. J., Kimmel, P. D., & Aly, I. M. (2020). Managerial Accounting: Tools for
Business Decision-Making. John Wiley & Sons.
Zutter, C. J., & Smart, S. B. (2022). Principles of managerial finance (16th ed.).
Pearson. https://online.vitalsource.com/#/books/9780136945666
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Stephen, great work on the assignment. Your business plan is well written and great work w/ APA. The instructions for the assignment asked you to mock up actual financial statements for the business using examples from the text and research what the data might look like. Please add these when you do your final assignment.
Keep up the great work!
Dr. Jordan
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