Лого компании

BUSINESS PLAN PROJECT REPORTiHealthy

Done by: Keldybay ZhanyimKutym Lyaziza

•iHealthy – provides support to elderly people or people, who suffer disease and disabilities by pushing alarm button on emergency situation.

•Caller presses a button and a signal is sent to the call center, where the operator with medical education clarifies the situation on the speakerphone and in case of need calls to relatives, neighbors or ambulance.

Problems (Demand, market size)• Fall is one of the main causes of death of older people

over 65 years;• According to statistics, 7,1% of older persons 65 years

fall at least 1 time per year, with half of these drops leads to damage, 25% of patients with fractures of the femur die within the first 6 months, 25% is returned to the previous level of mobility;

• After falling more than 50% of older people can't own up, 80% of them are not able to dial a phone number;

• Assistance within 2-4 hours after the fall reduce the probability of death to 80%;

• In Kazakhstan more than 1.2 million elderly people, more than 200,000 of which statistics to fall this year.

Solution

•iHealthy – signalling health, a simple and efficient way to call for help.

Implementation of the project

2014 year:• Legal documentatios• Agreements with key suppliers• First sales 1000-15000 Customers• Running a call center2015-2016 yaers:• 200-2500 Customers• Increse of sales channels• Testing of sales channels• Openning new branches in Astana, Aktay, Atyray2018 year:• More than 3500 Customers• Attraction of new investment• Production of new devices

Nature of the industry•The device is popular in other development

countries. That is why, our company took into consideration many factors and decided to introduce new product for Kazakhstan’s market.Our company will work as a leading company on providing high-tech services for the elderly and disabled people by using international experience. The device is unique in helping to elderly people or people, who suffer disease and disabilities.

Trends in the industry

• We will ask a permission in an akimat of Almaty city to implement our products in each hospital. Our specialists will consult medicine workers how our bracelet will work if something happened.

Major political, economic, social and technology factors (PEST analysis)

Political EconomicalDirect and indirect taxes (income tax and vat)Corporate taxationPublic spending by central and local governmentRegional and industrial policiesMonetary policy and the level of interest ratesChanges in international tradeRegulation and deregulation

EconomicdevelopmentAvailabilityofcreditOil and commodity prices Inflation level from 8 to 15%%InvestmentclimateinindustryExchange rate of the currency from 0.3% to 3%

Social TechnologyPopulation growthAge structureRural tourban migrationSocial and cultural shifts

Level of expenditure on research and development by competitorsNew marketsProduction methodsRate of adoption of new technology

Competitive advantageSWOT analysis

Strengths Opportunitiesmarket dominationeconomies of scalelow-cost positionfinancial resourcesmanufacturing skills and technologyresearch and developmentbrand and reputationpatents and copyrightsdistribution network

technology innovation new demand diversification opportunitymarket growthdemographic and social changefavourable political supporteconomic upswingacquisition and partnershipcheap fundstrade liberalisation

Weaknesses Threatslow market sharefew core competencieshigh cost baseweak balance sheet and cash flowLack of distributionSkills gap

new market interestshigher input priceschanging customer needsconsolidation among buyerscapacity growth outstrips demand growthcyclical downturnDemographic changeregulation and legislation

 Table №1: Habits of the elderly people

Do not leave the bed

Do not leave their flats

Cause ambulance more than 2-3 times a month

Suffer the limitations of mobility

Live alone

Fall 1 every year, leading to serious damage

0% 5% 10% 15% 20% 25% 30% 35%

Sales projections• Our project is popular

and successfully works in Western countries for 30 years. The motive of our project desire to become involved in the creation of a new industry and social entrepreneurship in Kazakhstan.

• The results of the survey on the demand of the product:

12.86%

75.71%

8.57% 2.86% I like, I'm ready to buy

this is interesting, want to learn more about the service

buy not ready yet, I do not understand how it works

Not interesting, I wouldn't buy

Pricing & distribution

20141.the first sales

2.1000-1500 Customers3.running a call center4.statistics collection

5.execution of agreements with

20151.2000-2500 customers

2.the increase of sales channels3.testing of sales channels

4.the opening of new branches in Astana, Karaganda etc.

2016-20181.more than 3500 customers

2.attraction of new investments3.production of new devices

Action Plan & Timetable (Gantt Chart)

Sources of Funding• Initial expenses•  • Legal $ 1,000• Insurance $ 2,000• Land $ 1,800• Built Building $75,000• Equipment and supplies $ 59,900 (8,984,000 KZT)• Taxes and license $ 2150 (202,545+120,000 KZT)• Initial marketing $ 1,000• The initial payroll of $ 3,000• Others $ 0• Total $ 145,850

Risk analysisReason Negative influence on expected profitrisk emergence

Remoteness from Additional costs of creation

Relation of the local Possibility of introduction by them additional

authorities the restrictions complicating implementation of the projectLevel Increase in volume of borrowed funds and

solvency decrease in net profit because of paymentpercent

Unforeseen expenses, Increase in volume of borrowed funds and

including because of inflation decrease in net profit because of paymentpercent

Untimely delivery Increase in terms of production, payment

accessories penalties to customersInstability of demand Decrease in demand with a rise in prices

Emergence of an alternative product Decrease in demand

Reduction of prices by competitors Profit reduction

Growth of taxes Reduction of net profit

Reduction in solvency Decrease in sales

consumers

Rise in prices for raw materials, Profit reduction because of a rise in prices

materials, transportationsDependence on suppliers, Profit reduction because of a rise in prices

absence of alternativeLack of the reverse Increase in volume of borrowed funds and

decrease in net profit because of payment of percentmeansDifficulties with a set of the qualified Decrease in rhythm

Insufficient wage level Turnover of staff, decline in production

Wear of the equipment Increase in expenses at repair

Financial plan•Inventory•«iHealthy» buys the devices which is

equipped with a emergency button in China, but we do not keep inventories in a wholesale stores, because it is additional expenses. So we use «Just in Time» production strategy, which means that each batch of goods comes only when pharmacies, hospitals make orders. It helps to improve return on investment by reducing carrying costs.

• Building • As the sale of devices is supporting activities of the

company, so it mainly focuses on the call center. Firstly for creating call center Company needs building. We decided to rent, because at this stage of development it is more appropriate decision. Analyzing our business we came upto the solution that location of the officehas no value, because we contact with our customers exclusively on phone and Internet, which mean that we should not spend money on areas where expensive rentals. Location: Almaty, Atyrau, Astana, Aktau.

Revenue Forecasting

2014 2015 2016 2017 2018

Sales (devices)

Customers (sales) 1000 1500 2000 3000 3500

Selling price 8000 8000 8000 8000 8000

Total 8000000 12000000 16000000 24000000 28000000

Customers (call center) 1000 2500 4500 7500 11000

Service price 3000 3000 3000 3000 3000

Total 3000000 7500000 13500000 22500000 33000000

Total Revenue 11000000 19500000 29500000 46500000 61000000

2014 2015 2016 2017 20180

10000000

20000000

30000000

40000000

50000000

60000000

70000000

11000000

19500000

29500000

46500000

61000000

Cost of Goods Sold

Cost of Sales (devices) 2014 2015 2016 2017 2018

Quantity Purchased 1000 1500 2000 3000 3500

Cost per unit 4000 4000 4000 4000 4000

Total COGS 4000000 6000000 8000000 12000000 14000000

2014 2015 2016 2017 20180

2000000

4000000

6000000

8000000

10000000

12000000

14000000

4000000

6000000

8000000

12000000

14000000

2014

2015

2016

2017

2018

0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000

2795000

3350000

5735000

7100000

6420000