Elements of a Business Plan
1. Executive summary
2. Product or service
3. Management team
4. Market and competition
5. Marketing and sales
6. Business system and organisation
7. Implementation schedule
8. Opportunities and risks
9. Financial planning and financing
Key questions– 1. Executive Summary
Business concept
3 What is your business idea? In what way does it fulfil the criterion of
uniqueness?
The business idea is to establish smart health card system to every health care
service provider and set a standard where anybody with a smart card can walk to
any hospital/ clinics/ pharmacist where the information of patients can be read
write and updated.
Participants carry the card with them at all times, giving medical
personnel immediate access to their concise medical history, current medications,
allergies, the names and telephone numbers of family or friends, and other
information necessary for medical treatment decisions.
The patients can avoid delay in admission, giving same answer again and
again, doing same tests again. Doctors can easily know the medical history of the
patient, the diagnostic reports etc.
4 Who are your target customers?
The idea is to create an common standard where all the participants in Health
Care can share the information so starting from patients the target customers
include hospitals, diagnostic centres, Clinics, Pharmacy, Dental Clinic etc.
5 What is the value for those customers?
The patients will have just one card to carry which will have medical history. The
doctor can have quick look of patients past check ups, the medication, the
diagnostic tests and he will be in better position to proceed of further treatment.
The pharmacy with a look at data on smart card can give medicines. The
pathology lab can have data of tests sold to which patients.
6 What market volume and growth rates do you forecast?
We are targeting single city at a time. If we start from Delhi there are more than
1000 health care centres, 5000 pharmacy, 1000 pathology labs and 1000000
patients who need to go for health cards. Combining all the total market potential
is of Rs 100 crore. Since the market is mostly untapped 50-100% growth rate can
be expected in coming three years after that 20% of growth rate can be seen.
7 What competitive environment do you face?
There is hundreds of smart card providers are in the market. Most of these

players are into hundred other businesses like software development, smart cards
for driving license, national id, campus, hotel, reader and they are interested in
bigger projects. There are number of suppliers who will push down the price of
smart cards and readers. There are people are in the related domain who are
trying to jump in this field but there is hardly any player who is focused in Health
Card only.
8 What additional stages of development are needed?
The team building
Business Plan
Getting Customer
Fund Raising
Product Development
9 How much investment is necessary (high level estimation)?
Till Incubation the need of incubation which will take 6 months the requirement
of fund is Rs 10 lac. Once we serve a few customers then we will need Rs 50-100
lac for full fledge set up and scale up.
10 What long term goals have you set?
To be the sole Health Card provider in the country
We want to start from a single city and slowly we want to penetrate other metro
cities and two tier cities. For significantly big hospitals we will go for turnkey
projects. We will develop one stop portal for health care in India.
Draft business plan
11 What do you estimate your financing needs to be?
12 What are the sales, cost and profit situations?
13 What are the most important milestones along the way to your goal?
14 What test customers have you approached/could you approach?
15 What distribution channels will you use?
16 What partnerships would you like to enter into?
17 What opportunities and risks do you face?
18 What is the picture on patents?
‘Final’ business plan
19 What are the results of your detailed business planning?
20 What are your exact financing needs?
21 How will you delegate management tasks?
22 How much production capacity is necessary?
23 How will the implementation of your business idea be organised?
24 What are your next concrete steps?
Key questions – 2. Product or service
25 What are the features or functions of the product/service?
The Smart Health Card can provide medical history of the patient, the ID of
patients and insurance details. The patients can see his medical records in any
computer where as the right of writing will be with the autherized people only. So
there will be software encrypted in card which will enable reading and there will
be full application software installed at hospitals, chemist and pathology labs can

read and write the data. So the updating will be only possible by doctors, chemists
or pathologists.
26 Who are the target customers?
Hospitals
Clinics
Chemists
Diagnostics
In long term—Pharmaceuticals Companies for advertisement
27 What value propositions does the product/service provide to the customers?
(e.g., tabulate customers’ unfulfilled needs and ways the product/service
addresses those needs)
Medical History on a single card instead of carrying to many files
Avoiding repletion of explaining medical history to the doctors
In emergency situation patients may not need to talk to the doctors
For years the data can be safely stored
The data can be read by any PC at home
Can support loyalty plans of hospitals
28 What is the revenue model? (i.e., description of revenue sources – advertising
revenue, transaction revenue, subscription revenue, flat-fee vs. percentage-
based)
In the short term the revenue will come from—
Selling of software: There are options we can go for minimum price or at the cost
of CD
Readers
Smart Cards
Installation
In the long term the revenue will come from—
Advertisement on the websites where a person can see his or her medical history
by log in
29 What is the development status of the product? What remains to be done to
convert the business idea into a tangible product or service?
We need to first develop the software and then embed it into the hardware.
30 Has this business model been proven elsewhere? What are some successful
examples?
This business model has been successful in country like Germany, France and
China where there is common health card and patient can walk into any health
care centre of the country and can access his all the medical information. In India
government is not keen to pour huge money on this project hence some private
player with long term vision can do this job.
31 What is the plan to maintain the loyalty of customers?
The quality service
We will have own designed cards and it will be available by us only
The product will be available at affordable price
Continuous maintenance service

Key questions – 3. Management team
32 Who are the founders/founder groups and what are their qualifications,
experience and past achievements
The management team includes people from Software, Hardware and Marketing.
Sunil Kumar: He has done his MBA from Pune University then worked for a
biotech start up for two years. In his last company he was responsible for
interacting with senior oncologists across the country. He has visited more than
100 big hospitals in different cities of the country.
Gaurav: He is expert in Smart Card software and presently working in a reputed
smart card company. He has worked on different platform including Java.
Viral: He an engineer from IIT. He has done his engineering in Electronics and
worked for a start up for a year. He is very much comfortable in dealing with
hardware.
Apart from these core team members we have support of people from different
companies who are expert in smart card business. There are technocrats who have
done good research work on smart card, we have their support too.
33 How critical is the idea originator to the future success of the venture?
The idea has come out collectively from the team. Since the health care market is
almost untapped the first mover advantages will be there and the more people use
our services the more strong our business will be. Later with the help of current
set up we can move to the other related services like providing single stop service
for all kinds of health care queries.
34 How are the management responsibilities shared among the team? (e.g., a
table of team members with their position and key activities/responsibilities)
There are three main part of business at this moment and these responsibilities
will be distributed as follows—
Sales & Marketing, Purchase, Operation and PR: - All these activities will be
handled by Sunil Kumar.
Software development, testing, documentation and installation: - These activities
will be handled by Gaurav.
Hardware, Integration and full service installation: - These activities will be
performed by Viral
35 What is the plan to reinforce management team in the future? (e.g., schedule
of future management hiring and skills required)
Initially all the activities will be handled by core team only. At the end of first year
we will hire 3 people in operation, 2 in software, 2 in hardware and 2 in
marketing. By the end of second year we will go for expansion and will have
branches in other cities.
Key questions – 4. Market & competition

36 What is the potential market size for the product/service? (e.g., calculation
derived from number of target customers, units sold, value of sales)
The potential market size of a city like Delhi can be calculated as follows—
There are 25 lac people who need to have health card: If each card cost Rs 100
then the card market will be of Rs 25 crore
There are 1000 health care centres that will go for installation of health card
system and on average system installation at a place will cost Rs 50000. So the
potential market will market of setting up system at health care centres will be of
Rs 5 crore.
There are 1000 diagnostic centres whose average system cost will be Rs 25000 and
the potential market will be of Rs 2.5 crore.
There are 3000 chemist whose installation cost will be of Rs 15000 and the
potential market will be of Rs 4.5 crore.
So the potential of market is Rs 32 crore in Delhi. If we go for online service
provider the potential market will be from advertisement which might go Rs 1-5
crore a year.
Jumping to the other cities will expand the size of potential market
37 What is the expected market growth and which major factors influence that
growth?
The expected market growth rate is 50-100% for coming 2-3 years and then it will
be 20% per year
The basic factors which will influence the growth of Health Smart Cards are—
PC penetration
Penetration in other smart cards like National Id, PPF, Driving Licence, Transit
etc
Government support in Health Care
Decrease in prices of cards, readers and software
Health awareness
Internet Penetration
38 Who are the likely competitors? What do they offer?
There are a number of players who are already in the market but they are doing
hundred things together. There are likely competitors who have foothold in
market already are---
Aplab
Ascom India
Baehal Software
CMS Computers
Compaq India
Detanet Corp
e-SmartNET
Equifax Venture Infotek
Exim Soft
Gemplus India
Schlumberger Measurement & Systems
Shonkh Technologies

Smart Chip
TVS Cherry
VeriFone India
Smart Card India
Axalto
Smart Chip Online
Venture Infotek
Rajpurohit Cardtek
iCard Technologies
e-Xseed
Infeneon
mChek
Mindfetchindia
i-Smart International
IC Ifotech
Paramount Smart
A Little World
A K S Smard Card System
The above mentioned players are not only in smart cards but into manufacturing of
readers, smart cards, system integration, etc.
39 What are the strengths and weaknesses of competitors? What are your
competitive positioning vis-à-vis competitors? (i.e., a table of competitors and
their ratings across key criteria – e.g., time to launch, technological capability,
access to proprietary technology, privileged relationship with suppliers and
customers)
Most are the competitors who are in the market are well established player in the
market in the related businesses. They have good relationships with the existing
suppliers but they are not concentrated in Smart Card business only, especially
Health Smart Card is hardly a good idea for them. They chase the big projects
only. We will have solution for small players at very small cost. We will have a
readymade software which will be installed at free of cost. We will make money in
readers and smart cards. Simultaneously we will focus big hospitals for their
turnkey project. So far not a single player who is in Health Card provide these
information on net, we will differentiate there and will provide full information on
net which will be accessible by log in. This is the right time to enter into Health
Care Smart Card where one side standard of living is increasing on the other
hand people are becoming more aware of the health.
Key questions – 5. Marketing & sales
40 What are the specific plans to promote the product/service?
We will have a website which will have all the information of our products and
services. Later we will strengthen our websites by storing patient’s information
online. In our websites we will also provide general information about the health
care facilities in India, about different diseases, different health care professional,

about diagnostic centres and about the chemist.
We will directly go to the customers and present our product and services. We will
leave brochures and leaflets to the hospitals, pathology labs and to the chemists.
We will take help of MRs who are already working in different companies to
advertise our product and services
More than everything we will focus on mouth publicity by providing excellent
product and services at affordable prices.
41 How will the product/service be distributed? Which partners will be needed in
the distribution channel?
Our distribution model will be of direct selling. The marketing person from the
company will be directly going to the customers and presenting our product and
services. We will provide them after sale services. After serving a reasonable
market in a city we will have branches in different part of the city so that
customers can easily avail our services.
42 What will be the pricing strategy? (e.g., how much will you charge for
different customer segments, quantities)
Since we are trying to provide common product for all the customers we will have
similar price for every target customers. But not all the target customers welcome
our idea with the same excitement; in that case we will go for discount or lower
price. We have basically three offers- Software, Readers and Cards. The software
will be sold and installed at free of cost or at Rs 50. The reader will be sold at
20-30% margin which will come around Rs 1500-2000. The card will be sold at
30-40% margin which will come at Rs 40-50.
Key questions – 6. Business systems & organisation
43 What is the proposed organisational structure of the company?
There will be flat organizational structure. There will be three people initially
handling Hardwar, Software and Marketing. Everybody will need to report other
two. One of them will lead the team. When the team will expand there will
departments like Software, Hardware, Marketing, Operation, System and
Operation.
44 How will this organisational structure help achieve business goals?
The present structure will help in achieving the present goals. Once we will have
good number of customers we will expand our team and the responsibilities will be
assigned accordingly.
45 What skills will be required and what is the hiring plan?
(e.g., a table that shows total number of positions and the functional
description of positions, skills required for top 3 positions in each department)
Initially we will not need to hire people but as we will move we will hire more
people and the organizational structure will be as follows—
CEO

CTO CMO COO
46 What is the scope of the business? (i.e. what will be performed internally and
what will be outsourced?)
Smart Card business has a good scope in telecom, national id, transit, health care and
retail. But we will be concentration on Health Care only. We will move ahead in
health care by offering online database of medical history of patients. We will provide
dedicated website on Health Care which will be one stop for all kinds of query. For
own use we will provide online medical software. For private players we will be a
good place to advertise their products. On the basis different search we will suggest
user’s products and services different products will flash on the screen and if a user
buy something online then we will be paid for that.
47 Have strategic partnerships been identified? If yes, how will these partners be
secured? If no, what is the plan to get partners?
We need strategic partners in Hardware and in Marketing. We need to have tie up
with big hospitals which will help in brand building.
48 Have key vendors been identified? If yes, how will these vendors be secured?
If no, what is the plan to get vendors?
Hardware-For readers and cards. We are talking to the local manufacturers for
the reader and cards. It is observed that there are a number of vendors in this
field and there are good chances of bargaining.
Key questions – 7. Implementation schedule
49 What is the detailed short term implementation plan? (e.g., Gantt chart
showing detailed activities by month)
– Who is responsible for each of the tasks?
– What are major milestones?
– What are interdependencies between tasks?
Short Term plans are as follows—
Building the team- May 10th 2007
Pre idea analysis- May 15th 2007
Business Plan/ Incubation Plan- May 20th 2007
Presentation of Business Plan—May 30th 2007
Start Incubation/ Business—June 30th 2007
50 What is the 5-year implementation plan? (e.g., Gantt chart showing activities
by quarter)
– Who is responsible for each of the tasks?

– What are major milestones?
First year operation start from Delhi
Get good foothold in the market and in second year onward move to the other cities
In five years tap all the big cities of the country
By fifth year create a revenue of Rs 25 crore
51 What are possible long term options for the business?
The joint venture with MNCs for operation in other country
Key questions – 8. Opportunities & risk
52 What are the best case and worst case scenarios for the 5-year financial
projections? What are the key assumptions on the key parameters? (e.g.,
market shares, profit margin)
53 What does the sensitivity analysis show? (i.e., by varying key assumptions in
isolation)
54 What mitigating steps are planned in order to minimise risks?
The best possibility is that market will accept our product and services and we will get
support from Government also. In this case we can achieve a growth rate of 50-100%
and in five year our sales will be Rs 50 crore and the valuation will be Rs 300-400
crore. The worst possibility is that the market will accept slowly and then we will be
getting small sales or 10-20% of our expectation. In this situation we will look for
similar business to survive like spreading smart card business in other fields like
Campus, Retail, Clubs etc. We might think of RFID which is relatively new
technology and work on the almost same principle.
The other risk will be from the competitors. There might be hundreds of companies
might think of joining the bandwagon in fact many of them already started to provide
some services to the hospitals. Our differentiation will be in terms of quality and
price. Being a small company we will have low operational and administration cost.
Key questions – 9. Financial planning & financing
55 For the next 5 years (and at least 1 year beyond breakeven point), what are the
projections for
– Income statement (includes detailed revenue source as described in the
business model)
– Cash flow statement
– Company valuation, utilising
· Discounted cash flow analysis
· Revenue multiples
– Balance sheet
56 What are the key assumptions used in the financial performance? (e.g., cost of
capital, market share, margin)
57 What are the financial requirements for the business and what sources of
financing have been identified? (e.g., financial schedule with amount needed
and possible financing sources)
Rs in Lac

Year 1 Year 2 Year 3 Year 4 Year 5
Investment 15 50 100 500 1000
Sales 20 100 500 1000 25000
Cost (80% of Sales) 16 80 400 800 20000
Profit 4 20 100 200 5000