Business Plan Impact of Nascent Entrepreneurs

Question: Discuss about the Business Plan for Impact of Nascent Entrepreneurs. Answer: Introduction: This report discusses about a new business idea of launching a new application namely Grab-a-Nurse. In the report, the detailed analysis is made on the industry as well as target market of the company. Along with that, the report also analyzes and evaluates the business plan in respect to the financial and technical feasibility (Bryman and Bell, 2015). However, at the end of the report, an overall conclusion is provided based on the findings of the study. Business Details: The following report presents business analysis, financial plan for a new venture start up by a company, Tech Nursing as grab a nurse e- service. As we know, the present market structure is focusing on procurement of business through online marketing and e- commerce by using the advanced technology. Tech Nursing also planned to start its service to provide nurses to the citizens and patients through online commercials and apps. This idea has been adapted to provide the people with best nursing services just a single click away without any hassles and worry. The organization is a partnership business with two Singapore resident partners in Singapore focusing its marketability for all classes of family and individuals. Description of Service: Grab a nurse is a service application, which will provide nurses to the patients for all types of nursing services like change dressing, in- house care for post operated patients, regular in house care for senior citizens or patients who are bid ridden and require nursing care. The services will be provided through web application, which will be available on several software users viz. Android, Microsoft, IOS under relative type of services required by the clients on different time slots and service charges. Currently, Tech Nursing is the only launcher of this type of e-service in Singapore and therefore the start up will be available on the three software used by the maximum people. Tech Nursing also focuses on sustainability of its organization in the market strategy and therefore best services at best prices will be maintained so that it can be affordable to all the citizens of Singapore. In order to start the venture, the owners had complied with all the necessary legal complianc es i.e. registration with the Corporation Act, procurement of trade license, or any other necessary requirements. The proposed venture will be available on smart phones having Android, Microsoft windows and IOS software. There would be very few simple steps for users to grab the service, users will have to download the application from the respective software app stores then they will have to register themselves either by using their contact number or email id and few other necessary details. Once the users are registered, the application will automatically detect the location of the user so that they can save time to explain the address. After this step, user is required to click on the option of service type and time he wants to avail and the expected charge will be displayed automatically before confirmation of booking along with the expected arrival time to be taken by the service provider. Once the user confirms the booking, the system operators process service immediately (Zhou and Liu, 2015). Mission statement: Providing the nursing services within minimum possible time Vision: Provide quality nursing service to the needy people Objectives: Grab the attention of 90% people in Singapore within the first 12 months after launching the business Earn minimum 10% profit to run the business successfully Make the application easily available in the market Industry and Market Analysis: Since, Tech Nursing falls into the healthcare industry number of competitors are at higher percentage even though the other organizations are not into e-commerce operation. Another challenging risk for Tech Nursing in the market is reliable and satisfactory service rendering to the clients. As we all know, that nothing is more important and valuable for people than their health it will be very difficult to get the venture started, as most of the citizens will be comfortable in taking service from their regular service providers (Bryman and Bell, 2015). Industry Analysis: At present, Singapore is considered the fourth best in the industry of healthcare infrastructure while medical practices ranks best among the world. Therefore, Tech Nursing is also required to maintain its standard and quality of services at par. For the better and detailed analysis, we have used SLEPT analysis and Porters Five Forces. Slept analysis is a analytical structure used to measure the external influence on an enterprise considering five factors that affect the economy at macro level (Chang, 2016). SLEPT analysis is used to ascertain threats and opportunities used to conduct SWOT analysis, which provides further measurement of influence through internal factors that, affect the entity. To present the industry structure and growth SLEPT analysis is briefed as follows: Factors Analysis Social Factors Social factors include analysis on the society in relation to education level, healthcare, population growth rate, class of population as per age, income level etc (Plan, 2015). On conducting survey for these factors, it has been concluded that Singapore citizens are well educated and addictive to the usage of advanced technology as well as quite particular about their health factors. Moreover, it has also been framed out that out of around 3.81 million residents of Singapore 20% have employment pass holders accordingly, availing the tech Nursing Service will not be difficult for them. Legal Factors Legal factors include laws and legal formalities regarding anti- trust laws, consumer protection laws, employment laws, corporate regulatory laws (Gregg and Strnad, 2016). The entrepreneurs of Tech Nursing have thoroughly studied the requirements of all the factors and focusing on duly compliance of the provisions and requirements of the laws and regulations. Economic Factors Economic factors represents the information and general ideas about the Goss Domestic Profit, interest rates, market growth and revenue rate, exchange rates for foreign currencies, fiscal and monetary policies, credit availability including Reserve Bank regulatory norms (Pavlou and Stewart, 2015). On going through these factors and taking into considerations, it has been observed by the owners of the Tech Nursing that it will be a big challenge to procure the market with giving considerations regarding quality of the service. Political Factors Another major factor affecting any industry is the political factor presenting government policies in relation to corruption level, trade control, competition regulation etc. (Gregg and Strnad, 2016). Initially it will be a challenge for Tech Nursing to be at par following these stringent policies but subsequently, things will fall into place as the owners are very much confident about the quality of their service. Technological Factors As the venture relates to e- commerce, technology is the most vital factor for the owners (Schlaegel et al. 2015). The entire service process depends on the technology and therefore there should be a proper research and development program has to be conducted. The application will require to be updated from time to time about new software updates. Further, in order to enter into the healthcare industry as a complete new and advanced service provider it is very important to make a thorough industry research. Hence, apart from SLEPT analysis, management of Tech Nursing has also conducted Porters Five Forces as under. Five Forces Findings Industry Rivalry As the new app Grab-a-Nurse will be made in order to provide nursing services, the business is under the nursing industry of Singapore. However, as the service will be available just through a mobile application, this will be unique and in Singapore, this kind of services is not widely available (DeMartino and Barbato 2015). On the other side, there are many good organizations available in Singapore those provide better services at lower cost. Therefore, from these points of views, it can be said the industry rivalry will be moderate. Threat of new entrants The threat of new entrants in this similar type of business is low because it is still not guaranteed that this will be successful (Schlaegel et al. 2015). So, for first three to five years the threat of new entrants will be low. However, if the business gets success then more organizations may come to similar business and then this threat may increase. Threat of substitute product The threat of substitute product will be high because there are many hospitals and nursing homes available in Singapore those provide better services at an affordable price range. At the same time, they also provide services on time. Bargaining power of suppliers Bargaining power of the suppliers will be low because there are many nurses available in Singapore those are ready to provide this type of services to the people. Bargaining power of the buyers The bargaining power of the customer will be moderate because this service is related to the health and the prices of these types of services are generally fixed. However, as there are some poor people, the companies sometimes need to lower the price. Therefore, the bargaining power of the customers will be moderate. Therefore, from this five forces analysis, it can be said that the industry situation is good for the new business. However, the new venture needs to maintain the time and price factors in order to get a good market share. At the same time, the new venture needs to maintain the service quality also. Target Market: In order to know the future prospect of the business, it is very important to conduct a market research (Hair et al. 2015). With the help of the market research, the entrepreneurs of Tech Nursing will know the actual demand of the people in Singapore. For this particular business of Grab-a-Nurse app, the entrepreneurs have used the 4Ps tool of marketing. The entrepreneurs found out the followings: 4Ps Findings Product In the market of Singapore, most of the people are technology friendly and so the demand for any new application is high. However, the product or app must be easily accessible and fast to serve in any urgent situation. Price The people in Singapore are ready to pay a standard amount of money in order to get a quality service in their home (Peroni et al. 2016). However, in order to provide the facility to the middle and lower social classes of people, the price level must be within affordable standard. Place As the service is an application oriented, this will be better to make the application available in Google Play store, App Store and Microsoft Store Promotion As most of the people in Singapore use the social networking sites. Therefore, it will be feasible enough if the promotion of Grab-a-Nurse is one through social networking sites. At the same time, the company needs to give television advertisement in order make older people aware about the product Therefore, from the above analysis, it can be said that there is a good scope for Grab-a-Nurse. As the service or application is related to the human health, there is more chance to catch the market effectively. However, the price must be affordable to all social class and proper channel must be chosen to aware the people of all age group. Customers and Value Proposition: For the Tech Nursing, owners have planned to target the entire society and all the age groups of Singapore, this is because the healthcare industry cannot segregate between the class and age group of people. As the venture is completely with the application of advanced technology, young generation of Singapore is expected to be the maximum revenue-generating source. The selling of service proposition for the organization is very clear i.e. only the nursing service will be available and no other similar or relative service is provided by the organization. From the above discussion it was very clear that the organization is going to face lot of challenges to sustain in the healthcare industry but the same is not impossible because it is concentrating on only the nursing part of the medical industry which eventually will save the time and cost of the local society (Schlaegel et al. 2015). Moreover, there will also be an option of suggestions and instructions online on general Medicare for those who would want an instant help which are at present difficult to get from the medical institutions. Marketing Strategy: Marketing Strategy for an organization is the most vital strategy as its growth, sustainability and market share depends on how well an organization is marketing its products and services. In the service of grab a nurse management of the entity planned to launch its application through placing in house services and promoting through various social sites. This strategy is planned because as saying goes service starts at home which means if the known people around are satisfied with the service then it will become a great source of promotion (Schlaegel et al. 2015). Subsequently, young group of citizens are the target as they are the most tech savvy in order to save their time and prompt services as well as quality concerned. Gradually, Tech Nursing is proposed to target the entire age group and social class citizens in Singapore including non- residents. Tech Nursing is also planning in taking steps to get the franchisee from medical institutions so that clients get prompt services with good results. Apparently, threats that Tech Nursing is going to face are about the pricing of its competitors. What if the existing hospitals and nursing homes pay more salary to the nurses? The availability of the nurses will reduce and the company will face difficulties in providing services on time. What if new company with quicker application comes in to the market? The popularity of Grab-a-Nurse will reduce and the customer base and revenue will reduce. What if the company fails to recover the initial investment? The budgeted revenue of the company will decrease to the extent to which it will be suitable for the internal funds. The scalability of a new business can be identified with the help of three factors entrepreneur base, owners capabilities and comprehensiveness of the business plan (Chua and Bedford 2015). In case of this venture, the entrepreneur base is strong because the partners of the business have enough financial backup and they have good knowledge of software and application. On the other side, the owners of the business have good motivational and managerial capacities to run a business. Management team and Company Structure: The organization is a start up with two partners who are resident of Singapore having a good Information Technology background as well as management consistent from B Tech background and Software engineers. The company seeks to absorb highly qualified nurses with good work experiences as well as fresher to be trained under the seniors (Madani and Hashemi, 2015). The nurses are required to send their resumes through the application portal or through the website. The management of the organization is also comprised of having knowledge and skills about SAPs and other technological skills. The organization will have stabilized premises in the located in the central Singapore, which will be the central head of operating the entire business with all the necessary and required technological equipments. Financial feasibility analysis: As per the planning of the entrepreneurs of Grab-a-Nursing, 70% of the initial capital will be arranged by the entrepreneurs and 30% will be gathered by taking long-term bank loan at 10% interest per annum. The company has also decided that the initial investment will be same as the initial total cost of the company. However, the budgeted cost, profit and revenue of the company for initial three years are shown below: Particulars Amount (in $) (1st year) Amount (in $) (2nd year) Amount (in $) (3rd year) Revenue 10000 13900 14700 Cost of goods sold 6300 3100 3900 Gross profit 3700 10800 10800 Expenses for software maintenance 300 300 300 Salaries to the nurses 1000 1000 1400 Fees to the software developer 270 270 270 Distribution and advertisement expenses 410 680 710 Operating income 1720 8550 8120 Interest payment (10% on 1890) 189 189 189 Profit before tax 1531 8361 7931 Tax payment (30%) 459.3 2508.3 2379.3 Net profit 1071.7 5852.7 5551.7 Workings: Calculation of loan amount = 6300 * 30% = $1890 From the above table, it can be said that in the second year the net profit of the company is expected to be highest. This is because in the first year, the initial cost of preparing the application is high, due to which the cost of goods sold of the company will be higher, which is not applicable for second and third years. However, as the company has a plan to increase the number of nurses in the third year for providing more services, due to which the cost for paying the salaries will be higher, due to which the profit will decrease. Financial Projections: As discussed above, partners will invest 70% of the capital while 30% of the capital will be invested by taking long-term bank loan at an interest rate of 10%. The management is planning to issue ordinary shares to raise capital investment. Assets and Liabilities representing financial position of the organization will be comprised of non- current and current nature. From the above financial analysis, expected profit for next three years has been determined $1,531 $8,361 and $7,931 in the first, second and third year respectively, whereas profit after tax amounted $1,071.7 $5,852.7 and $ 5,551.7 for first, second and third year respectively. Further, expected revenue has been measured as $10,000, $13,900 and $14,700 for the first year, second year and third year respectively. This shows a decent growth in the revenue generation of the enterprise. Risk and Strategic Options: In order to maintain the financial results as discussed above, Tech Nursing will have to face the challenges and risks arising from various other factors. This includes, risk of non-availability of qualified and experienced nurses, increased payments by other healthcare institutions to the experienced nurses, providing better work infrastructure etc. As Tech Nursing is a new venture, it would be difficult to overpower all the factors in first year of its operations, however once the venture sustains in subsequent years it will be easier to eliminate the above-mentioned risks. For maintain the mission and objectives of the Tech Nursing (Madani and Hashemi, 2015), Management has set out the critical success factors like, quality of the service, timeliness of the service, as well as affordable costs to the clients. Conclusion: In this business plan, it has been identified that Grab-a-Nurse has a strong market opportunity that can be used to earn more revenue. 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