Business Plan of Smile Child Hospital

SMILE CHILD HOSPITAL
Smile Child Hospital

Hospital Road Rahim Yar Khan
(068) 5888888
www.slinkycity.tk
admin@ slinkycity.tk
Nature of Company
It’s a Partnership hospital having five partners; the names of the partners are as
follows:
Mr. Arslan Mazhar

Mr. Jamil Ahmed
Mr. Faizan Shahid
Miss. Huma Irshad
Miss. Sarwat Afzal
Nature of business
It’s a service type organization.
Amount of finance needed to start
According to our assumptions and the rates of different things required like
machinery, equipment and building for the hospital we need 50 million
approximately.
Amount of investments
All of the partners will provide 30 million to start the new venture.
We have requested for a loan of 20 million from the Punjab Medical
Association (PMA) to be paid in 20 years without interest. This debt will cover
medical equipment costs, an ambulance and building’s leased cost.
The Islamia University of Bahawalpur

1
Statement of confidentiality of report
This report is confidential and is the property of all the three partners. It is intended
only for use by the persons to whom it is transmitted with the consent of all the
partners. Any reproduction or divulgence of any of its contents without the prior
written consent of the company is prohibited. Violation of which may lead to certain
legal action.

2
Industry Forecast
In Pakistan every ninth (9th) child died before his/ her 5th birth day due to
Malnutrition (Imbalanced diet), (WHO survey 2005).
During past three years growth rate of diseases in children is approximately 60%
percent due to lack of hygienic factors & polluted atmosphere. But growth rate in
hospital industry is just 15%, the reason is that there is no technological advancement
in hospital industry. People of Rahim Yar Khan intend to go other big cities like
Lahore, Karachi and Islamabad etc, for better treatment of there children. Keeping
this point of view we decide to create a stand that gives all types of child related
problem solution in Rahim Yar Khan under one roof.
Analysis of competitor:
In private or public sector there is no single hospital is situated in Rahim Yar Khan,
match with our standard & caliber. So, no direct competitor is there but some indirect
competitor have established their clinics and doing practices. They are simple MBBS
and get training in respected fields and on the basis of experiments they are running
their clinics. Some of them are competent but hunted by lack of new technology and
laboratory system; they normally refer their patients to other big cities in critical
situation.
Child is a very sensitive, but simple MBBS doctor treats him / her in experimental
way, but we come here with Physician & surgeon, Nutrition Specialist, Psychiatrist,
Neurologist, Anesthetic specialist, before starting treatment they all diagnose problem
sitting in panel and then start treatment.
Market Forecast:
We operate our business in huge level, targeting the area from Liaqat Pur to Sukhar,
and no single hospital here providing all types of medical facility under one roof with
new machineries. According to Pakistan Govt. survey 18.5% of child in this area died
due to non available of proper medical facility. And remaining go for big cities for
treatment.
We segment our market on Income bases:
1. Upper Class
3
2. Middle Class
3. Lower Class
By giving high quality of medication with latest equipments and doctors we can
satisfy the high income group.
Because our rates are reasonable for middle income group we can also satisfy them.
By giving compensation packages to poor we can also satisfy the poor income
group.
Background of Entrepreneurs
We the student of BBA (Hons), making a feasibility report of Children hospital under
a subject INDUSTRIAL MARKETING. And my respected sir, Prof. Shahid Nawaz
assigned this project to me.
Services Provided:
Our each program emphasizes comprehensive, multidisciplinary care for children
with all types of medical conditions. In addition, we provide moral support to patients
and families to cope with the challenges of illness. These include our Child Life
Services department, which caters to the emotional and developmental well being of
hospitalized children and their families.
Child Life Services:

The Children Hospital’s Child Life Department focuses on the emotional and
developmental well being of hospitalized children and their families.
Genetic Diagnosis and Counseling:

4
The Section of Genetics at our Medical Center provides a full range of services for the
diagnosis, counseling and treatment of patients who have or who are concerned about
genetic and congenital disorders.
Pediatric Cardiovascular Services:

Children's Hospital provides complete clinical services for the diagnosis and
treatment of congenital and acquired heart diseases in children.
Pediatric Critical Care:

The pediatric critical care program at our hospital provides services for children with
the entire range of severe illness.
Pediatric Gastroenterology, Herpetology & Nutrition:
The Section of Pediatric Gastroenterology, Herpetology and Nutrition at Children’s

Hospital offer the broadest range of services available for treatment of problems of
the stomach and intestines.
Pediatric Psychology:
At Children’s Hospital, our clinical psychologists are specially trained for the care of
children.
Size of the Business:
Our hospital is basically belonging from medium size business. Other clinics
situated in Rahim Yar khan are small in size and have not developed laboratories.
Capacity of our hospital will be `45 patients at once or 10 in emergency.
BUILDING:
We purchased land and construction on hospital is nearly to complete.
Location of building:
This building is situated on hospital road and 10 feet away Shiekh Zayed Medical
Hospital main Gate.
Size of building:
Area of building is fourty (40) Marla and building having 6 floors.
5
Rooms:
It has fifteen single rooms and ten double rooms. A visiting lounge, rooms for staff
(doctors) and for paramedical staff are also included.
Hall:
On ground floor there is 30×40 square feet hall, which is enough for a small children
ward.
Personnel:
Personnel are the assets of any company especially in the service sector. In our
Hospital more than 80% personnel will be skilled based. We rank our personnel into
different departments.
Doctors:
 Consultant physician
 Physician
 Medical officers (M.O)
 Anesthetic specialist
 Pharmacist
 Surgeon
 Pathologist
 Psychiatrists
Paramedic staff:
 Nurses
 Dispenser
 Operation thither assistant
 Laboratory assistant
Other personnel:
 Office boys
 Ward boys
 Gun men
 Ambulance driver
 Sweeper
 Gatekeeper
 Peons

6
Hospital Equipment:
When any business is going to be practically implement office equipment is essential
for routine work established discipline and identifications of specific designations.
Similarly, in our hospital three medical departments require some particular office
equipments, which will be helpful in checking of the patients while check by the
doctors. The most interesting thing is that our office equipment is quite different from
other manufacturing organizations. These three departments have three offices and
each office should contain following equipments.
 Stethoscope
 B.P apparatus
 Thermometer
 Laminator
 Otoskop
 Tongue depressor
 Torch
 Measuring tap
 Glucose monitor
 Pen stand
 Stationary
 Table lamp
 Office table
 Office chair
 Toys for children
 Weight scale
All above listed materials should in every office for checking the patients because
without equipment doctor is like the soldier without the weapon in war. Another thing,
which we have in our mind that all the equipment should be, modernized enough in
handily.
After the description of doctors list now we explain some other offices, which will be
compulsory for further hospital functioning.
For this purpose, fist of all we describe finance office and the equipment needed for
this is
 Computer
 Draw
 Safe
 Table furniture
Operation Theater Equipment
 Operation lights

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 Operation table
 Anesthetic machine
 B.P monitor
 Cardiac monitor
 Diathermy
 Suction machine
 Oxygen cylinder
 Nitrous cylinder
 Autoclave
Equipment for Laboratory:
 Colorimeter
 Analyzer
 Microscope
 Centrifuge machine
 X-ray machine
 Chemicals
 Glucose meter
Equipment for general ward and other rooms
 Incubator
 Sucker Machine
 Nebulizers
 ECG Machine
 Puls oxinator
 Oxygen Equipment
 Wheel chairs
 Weight Machine
 Stabilizers
 Stretcher
Other equipment includes
 Stationary
 Air-conditioned Unit
SUPPLIERS:
 Surgical
 Pharmaceutical
 Oxygen supplier
 Furniture supplier

8
SURGICAL SUPPLIERS:
These are the suppliers who will provide us the equipment and instruments necessary
for surgery.
Mr. John Singh provide us these equipments living in Japan. His Content no. is
+8859874563
Pharmaceutical suppliers
These suppliers will provide us all types of medicines.

Glaxo Smith Kline and Abbott companies will provide us all types of medicines.
Oxygen supplier
These suppliers will provide us oxygen. This suppliers belong to Multan, name as
Arif. His Content no. is 03345698707
Furniture supplier
These suppliers will provide us all kind of furniture. It includes a lot of suppliers some
provide office furniture, others provide ward furniture.
Modern Furniture Shop

Lucky Furniture Shop
As we have a service type organization so there is no manufacturing process like in

the goods manufacturing companies.

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 Intensive Cure Unit (ICU)

 Emergency
 Physiotherapy
 Neurology
 Laboratory
 Pharmacy
 Dispensary
 Electrical department
Emergency:
Emergency department will be there in the hospital where patients that will be
seriously ill will be admitted. They will remain in emergency for almost two to three
hours and then will be shifted to rooms or intensive cure unit depending upon the
situation.
Intensive Cure Unit (ICU):

In intensive cure unit, patients suffering from severe diseases like pneumonia, malaria
etc. will be admitted. They will remain in that unit for two to three days depending
upon their condition.
Physiotherapy Department:
We are going to introduce a different kind of hospital. We research in our area there in
no standardized children hospital in which a separate physiotherapy department
available. So due to this reason we are making a special physiotherapy department for
those children which are hunted by polio and other these types of diseases.
We require five million (5,000,000) for a fully equipped physiotherapy department.

10
Neurology Department:
The section of Pediatric Neurology at hospital is staffed by the experts in their field.
We work closely with other specialists to provide the most advanced care for children
with neurological illnesses. We coordinate pediatric nurse-supervised sedation for CT
and MRI scanning with our neurologists, who provide a full range of radiological
imaging of the nervous system for our young patients. In addition, because of the
strong connection between the brain and behavior disorders, a team of child
psychiatrists, psychologists and behavioral pediatricians is also available to work with
patients and their families, as necessary.
Laboratory:
Laboratory will be well equipped with all the necessary equipment and instruments.
Almost, all types of tests can be possible there. e.g. X-Rays, blood test, CITY SCAN
etc.
Pharmacy:
This sort of pharmacy has life saving drugs and other routine drugs which are
recommended by a consultant physician to a patient. We will be having fully equipped
pharmacy.
Dispensary:
We have included dispensary for the patients that come just for time being. The
dispensary’s charges will be included in the Doctor’s fees.
Electrical Department:
Hospital is the place where electricity is most important, not only for operations but
also for patients in wards, laboratories or ICU. So, we have included it as a separate
department. This department will handle the air conditioner plant and the generators
for electricity problems.

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Here we describe market conditions and strategies related to services. How it will be
priced and promoted.
Being the entrepreneur our main focus is profitability but also target is how to serve
our people in constructive manner. Therefore our marketing goals will be the blend of
both factors.
Provide all possible facilities to our people in their own area.
Create medicated environment in our city whereas people will not move towards other
big cities for better treatment.
Situational Analysis
Our city environment is very much supportive for the hospital industry.
Through environmental analysis we came to know there is no direct competitor here.
Define Target Market
Our target market is from Liaqat Pur to Sukhar, because within this rang there is no
standard hospital giving medication services under one roof.

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Strengths
• New idea which will be highly acceptable in the market.
• We are the trend setters.
• Our relationships with suppliers are strong enough that offer credit
arrangements, flexibility & response to special product requirements.
• Employee competency and professionalism, which are the asset of our

company.
• Our commitment is quality to customers.
• We not only satisfy the customers but also build relationship with them in
order to get their loyalty and better future of the company.
• Our unique strength is giving all medication services under one roof.
• Competitive advantage of “first to enter in the market”.
Weaknesses
• Access to capital.
• Cash flow continues to be unpredictable.
• Lack of awareness to people. They don’t have the exact concept of interior
designing.
• People living in rural areas difficult to target
• All the weaknesses of a company are not the weaknesses; actually they are the
opportunities for improvement in the company’s functions. So by properly
arability the opportunities, they would become you strengths.
Opportunities

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• Growing market with a significant percentage of our target market doesn’t

know about nutrition and psychiatrist services.
• Increase in opportunities beyond the target area of R.Y.K.
• By providing ambulance services to rural areas we can capture that market

also.
• We can expand business by targeting Sukhar to Hyderabab city.
Threats
• New Entrance of competitor
• High Import duty on machines can increase the cost and make direct effect on
our services charging from people.
Develop Goals and Objectives
Mission
Children hospital is guided by the belief that all children need to grow up in a
protective and nurturing environment, where each and every child is given the
opportunity to reach his or her potential. We believe this vision can provide a brighter
future for all children.
Goals
• To provide out class medical facilities to our patients.
• To provide them a favorable environment.
• To expand the business.
Objectives:
• To earn maximum profit
• To introduce new technologies to make services better than ever before.
• To provide incremental value to our customers.
• To protect and maintain our resources.
• Maintain a positive and steady growth of 15% each year. Maintain a gross
margin of 25%.
Marketing Strategies

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Increased awareness & image

Our first strategy is about the awareness of our hospital to the patients
Informing those not yet aware of what Smile Child Hospital offers.
We will increase the awareness among the customers through proper advertising.
Advertising through
• Local news papers

• Using cable network
• www.slinkycity.tk
Marketing Mix
1. Product
2. Place
3. Price
4. Promotion
5. People
6. Process
7. Physical Avoidance
Product
Input Sick Patient
Process Treatment of dieses
Output Healthy Patient
Place
We believe that place is not just about distribution it is about convenience too. If the
services are not available where and when people need, it will create a lot of problems
for customers.
The physical place which we have chosen of our Hospital is Hospital road RYK
because it is a most famous and well known place for all the people. Another reason
for that place so most of people, although, which are not our direct competitors, are
operating in that area and awareness will be created frequently.
Price

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Doctor’s Fee
Consultant physician 500/-

Physician 500/-
Physiotherapist 800/-
Ward and room charges per day
Ward charges 200/-

Single non AC room 300/-
Singe AC room 500/-
Double non AC 500/-
Double AC 900/-
ICU (intensive care unit) charges 600/-
ITR (intensive treatment room) charges 800/-
City Scan
Promotion
We will promote our Services through different types of promotions like
 Advertising
 Public relations
We need one million (1,000,000) R.s for promotion.
Advertising Medias:
We have decided to use almost all types of advertising media because we are the new
entrants in the market. So, we have to aware and educate people to come to our
hospital with their children to get a better treatment with advanced technology.
 Circulate Hand outs

 Advertise through Newspapers
 Through Cable TV because it has made a major source of
advertisement
 Billboards and banners
People
We are targeting the infants and child.

16
Process
We are providing better health care unit, with unique innovation like, before treatment
of any critical diseases in child, first make a panel of doctors, when the sit together
through brain storming it is zero chance to treat child wrongly that are very much
common in other hospitals.
Physical Aviedance
Our two doctors, Anesthetist and Neurosurgeon are foreign qualified has MD
(American) degrees and one Pediatric Surgeon is FRCS (UK) Fellow of Royal
College of Surgeon qualified and other are from FCPS (PAK) Fellow of college of
physicians and Surgeons qualified.
Implementing the Market Plan
After all above procedure accepted we will implement this marketing plan.
Evaluating the Market Plan
After implementing if we feel any deficiency in the plan then we evaluate it and again
implement it till the desire outcome not satisfy us.
But it’s very difficult to again make a market plan till startup.
Form of Ownership
Form of Ownership in Smile Child Hospital is Partnership so the business will be
performed on partnership basis.
Partners and their terms of Agreement

17
As the legal status of Smile Child Hospital is partnership so there are five patners.
Partners & Addresses
1. Mr. Arslan Mazhar

Gulshan-e-Usman
0333-7666666
2. Mr. Jamil Ahmed
Gulshan-e-Jamil
0300-9670967
3. Mr. Faizan Shahid
Gulshan-e-Iqbal
0321-3210321
4. Miss. Huma Irshad
Khan Pur, R.Y.K
0333-6549877
5. Miss. Sarwat Afzal
Gulshan-e-Iqbal
0333-654986
All the partners will have equal responsibility to operate the business and all will be
responsible for any wrong decision.
Profit/Loss Sharing Percentage

All the partners have equal investment of 10,000,000 R.s in the business and the ratio
of profit and loss distribution will be equal
Authority or Control
Authority regarding business matters will equal to all the partners. All partners will
have joint account with the name of Smile child hospital so the check-signing
authority will be equal for all the partners. In case of all other matters regarding
dealing with employees, customers and suppliers but also placing orders and receiving
orders, taking different kinds of wise decisions, all will have equal authority and
control.
Roles and Responsibilities of members

The following is the description about the responsibilities of all the members of the
organization including owners and the designers. Each and every member will be
responsible to perform his or duty according to the specifications.
2No. Designation Responsibility

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1 Owners Dealing with suppliers

Decision making
Managing Inventory
Order placement
Financial decisions
Managing employees
2 Doctors Provide consultancy to

patents
Treating all patients in their
timing very carefully
Good Behavior &

3 Other Staff Consultancy regarding
finding any department and
patients
Recording all expenses

4 Computer Making profile of Patients
Operator Recording all medicines and
equipment, purchased and
dispose off. I-e injections or
vaccines

19
We are going to start a standardized children hospital in Rahim Yar Khan. Before this
there is no hospital operating which provide all facilities, which are needed for a
children hospital. According to our research there is a very much need for a
standardize hospital,
That provides all the facilities for the health to children. So in future our business is
100% successful and the chance of failure is Zero percent (0%). The involvement of
risk in our business is zero percent; the reason behind is that there is no direct
competitor in this region but some small clinics are operating here which are our
indirect competitors. There is no fear from their side because they are operating with
single doctor. Mostly Doctors are operating their own clinics own self. These clinics
are operating with old type of equipments and there is no specialty in their clinics. So
in these conditions our business is not facing any sort of risk.
High cost:
We are operating our business at very much cost where as our indirect competitor are
operating at low cost. Patients can easily offer their fees, so this is our one and only
weakness.
New & Imported Technologies:
We are introducing new & imported technologies in our hospital, that difficult to
operate and need special persons to operate it.
There is no such typical financial plan. As, we are making the feasibility report
therefore; we have decided to include the prices of different equipments and 1st time
salary needed for a hospital.

20
Initial finance needed 46,193,025 (calculated)

47,000,000 (Required)
Sources of Funds
All of the partners will provide 30 million to start the new venture.
We have requested for a loan of 20 million from the Punjab Medical
Association (PMA) to be paid in 20 years without interest (Approved). This debt
will cover medical equipment costs, an ambulance and building’s leased cost.
Department, equipments and their prices
 Building 40,000,000
 First Month salaries 585,000
 Operation theater equipment 2,305,000
 Laboratory equipment 1,650,000
 Office equipment 266,525

 Promotion 1,000,000
 City Scan Machine Credit
 Equipment for rooms and wards 121,000
Total 46193025
Building 40,000,000
Salaries
Dr. Ahsan (Retired) 100,000

Nutrition Specialist 40,000
Physician & surgeon 60,000
Psychiatrist 35,000
Anesthetic specialist 70,000
Neurologist 80,000
Other Peons, nurses, ward boys 200,000
Total 585,000

21
Operation Theater Equipment:
Operation theater lights 150,000/-
Operation table 300,000/-
Anesthetic machine 80,000/-
B.P monitor 120,000/-
Cardiac monitor 500,000/-
Diathermy 300,000/-
Suction machine 150,000/-
Oxygen cylinder 25,000/-
Nitrous cylinder 30,000/-
Autoclave 150,000/-
Set of surgery instruments 500,000/-
2,305,000/-
Total
Equipment for Laboratory:
Colorimeter 200,000/-
Analyzer 500,000/-

22
Microscope 45,000/-
Centrifuge machine 15,000/-
X-ray machine 800,000/-
Chemicals 50,000/-
Glucose meter 50,000/-
Total 1,650,000
Office Equipment:
stethoscope (10) 15,000/-
B.P apparatus (5) 5,000/-
Thermometer (10) 500/-
Laminator 500/-
Otoskop 3,000/-
Tongue depressor (10) 500/-
Torch (5) 1,000/-
Measuring tap 25/-
Glucose monitor 45,00/-
Stationary 1,000/-

23
Table lamp (5) 2,500/-
Office table (5) 80,000/-
Office chair (5)+(50)+ (30) 103,000/-
Toys for children 5,000/-
Weight scale (2) 45,00/-

Total 266,525/-
After the description of doctors list now we explain some other offices which
will be compulsory for further hospital functioning.
For this purpose, fist of all we describe finance office
Equipment Cost
Computer 70,000/-
Draw 8,000/-
Safe 35,000/-
table 8,000/-
Total 121,000/-
Equipment for general ward and other rooms:
Incubator 500,000/-
Nebulizers 10,000/-

24
Weight machine 5,000/-
ECG machine 200,000/-
Stabilizer 4,000/-
Sucker machine 50,000/-
Oxygen equipment 15,000/-
Pulse oxinator 30,000/-
Wheelchairs(3) 24,000/-
Stature(3) 12,500/-
Total 850,500/-
 Al- Rehmat Children Hospital
 Assistant Laboratory Shiekh Zayed Medical Hospital,

Mr. SanuAllah.
 Mr. Sohail Aslam Medical Rap.
 Mr. ILYAS Owner of Ithehad Property Dealer
 ILYAS Waraich Cabel Operator Owner

25
 Mr. Zahid employee of Express News
 Mr. Rizwan Saleem, Current completed MBA from IUB.
 Internet Surfing, Prices of Different medical equipments.
 Dr. Saima Prof in Shiekh Zayed Medical College.

26

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SMILE CHILD HOSPITAL

Smile Child Hospital

Mr. Arslan Mazhar

It’s a service type organization.

Amount of finance needed to start

The Islamia University of Bahawalpur

Statement of confidentiality of report

The Islamia University of Bahawalpur

We segment our market on Income bases:

Child Life Services:

Genetic Diagnosis and Counseling:

The Islamia University of Bahawalpur

Pediatric Cardiovascular Services:

Pediatric Critical Care:

Pediatric Gastroenterology, Herpetology & Nutrition:

The Section of Pediatric Gastroenterology, Herpetology and Nutrition at Children’s

Size of the Business:

We purchased land and construction on hospital is nearly to complete.

The Islamia University of Bahawalpur

Operation Theater Equipment

The Islamia University of Bahawalpur

Equipment for Laboratory:

Equipment for general ward and other rooms

Other equipment includes

The Islamia University of Bahawalpur

These suppliers will provide us all types of medicines.

Modern Furniture Shop

As we have a service type organization so there is no manufacturing process like in

The Islamia University of Bahawalpur

 Intensive Cure Unit (ICU)

Intensive Cure Unit (ICU):

The Islamia University of Bahawalpur

The Islamia University of Bahawalpur

Through environmental analysis we came to know there is no direct competitor here.

Define Target Market

The Islamia University of Bahawalpur

• We are the trend setters.

• Employee competency and professionalism, which are the asset of our

• Competitive advantage of “first to enter in the market”.

• Cash flow continues to be unpredictable.

• People living in rural areas difficult to target

The Islamia University of Bahawalpur

• Growing market with a significant percentage of our target market doesn’t

• By providing ambulance services to rural areas we can capture that market

Develop Goals and Objectives

The Islamia University of Bahawalpur

Increased awareness & image

• Local news papers

Process Treatment of dieses

Output Healthy Patient

The Islamia University of Bahawalpur

Consultant physician 500/-

Ward and room charges per day

Ward charges 200/-

We need one million (1,000,000) R.s for promotion.

 Circulate Hand outs

We are targeting the infants and child.

The Islamia University of Bahawalpur

Implementing the Market Plan

Evaluating the Market Plan

Partners and their terms of Agreement

The Islamia University of Bahawalpur

Partners & Addresses

1. Mr. Arslan Mazhar