1. Associação de Politécnicos do Norte (APNOR)
Master Degree on Business Management
Economics and Corporate Finance
(Module Corporate Finance)
“Investment Appraisal” Assignment
P&Z Dental Experts
a33871 Pratik Iyengar (Instituto Polytechnico De Braganca)
ERASMUS Paulina Hys (Medical University of Warsaw, Poland)
ERASMUS Żaneta Cieślak (Medical University of Warsaw, Poland)
Teacher: Prof. Doutora Ana Paula Monte
Scholar year 2016-2017
ESTiG, December, 2016

2. INTRODUCTION
The Investment idea emphasizes on the conceptualization and incorporation of Dental Hygiene in
our society. The concept of Dental Hygiene is relatively new in the Polish Market. We would like to
not only introduce this client oriented brainchild into existence but also create enormous value in
the minds of our prospective clientele by transmitting and elevating awareness of advantages
pertaining to this domain of good health.
We would like for this unique idea to be inducted in the domain of Public Health and Hygiene in
Poland. It might seem similar to a common Dental office with normal Dental services offered by a
Dentist, however, it is an innovative idea in the Polish market in terms of its objective and
functionality.
“Prevention over Cure” being the tagline of our Dental Hygiene Office, derives its objective and
purpose of establishment from the widely known saying which states, “Prevention is better than
cure”. Also, as Benjamin Franklin quoted, “An ounce of prevention is worth a pound of cure” which
implies our innovative idea of creating this enterprise.
We would like to start by elaborating on the idea of Prevention and how it would do wonders in
terms of creation of value for our clientele and generating significant amount of revenues for us.
Also, our Business model would assist our clientele in extending to a considerable extent savings
from not having to pay for complex Dental treatments and surgeries. Having mentioned the fact
that our Business idea would result in extension of savings for our Clientele, it is indispensable to
understand that the idea has to be held against that of the Dental office in the long run and not the
short run.
The Business Model will prove to be more feasible and effective in the long run owing to the
evolution of thought process of our clientele. The best explanation to this would be an example of
the incorporation of Dental Hygiene practices in Developed Nations like the United States of
America and Germany in Europe. We would like to have more penetration of this idea in the less
developed countries in the European Union by establishing a small facility in Warsaw, Poland.
We would like to draw your attention to the concept that is very crucial in terms of Public Health
and Hygiene, however, is also one that seeks utmost attention from our society. We would like to
focus on the ideology of Prevention by deciphering it into a table depicting the dynamism of
Prevention in today’s world. The table 1 below depicts the dynamism of Prevention. It states the
reasons why prevention can make a difference and the how it would be successful in doing so.

3. Table 1: Significance of Prevention as an ideology
Why Prevention: The “How” aspect of the reason:
Improves Population Health Timely Diagnosis and Treatment
Creation of high value for society
Deviation from complexities associated with the
Dental Health domain
Cost Effectiveness:
a. To Business productivity
In terms of much lower costs of overall
establishment compared to normal Dental Office
b. To our potential clientele More savings in the long run.
Source: own elaboration
The Table 1 above states the immeasurable importance of Prevention and its applicability in the
Health domain and market. Prevention improves population health by aiming for timely diagnosis
and treatment. We would like to give example of Germany as a country in the EU that has adopted
Dental Hygiene Practices already. The society that has adopted Dental Hygiene as a practice (as
observed in Germany), would be benefitted by it a long way in terms of averting potential Health
risks by the virtue of timely and convenient diagnosis of Dental health and treatment both at the
Individual and the societal level.
In today’s world that is heavily inflicted with automation and change driven corporate environment,
a successful Business Model is one that creates immense value in terms of knowledge and
usability in the minds of citizens of our society. This ingenious Business Model will successfully
create the much-needed value in the society with the help of its simplicity and easy applicability in
the lives of our potential Clientele. The process of rendering Dental Hygiene Services to the benefit
of the society would result in a desirable deviation of attention and concerns related to the
complexities associated with the need for Dental Environment. Moreover, every small or big idea
that contributes to the wellbeing and betterment of our society is one that adds to the concoction of
monumental value for the society should be well received.
Cost effectiveness is an integral aspect of our Business Model as it is highly relevant to both the
Business Productivity and our future Clients. Taking in to consideration the cost effectiveness of
establishment and Performance of our Model, we would not require facilities and competencies like
expensive technology, Dental materials and tools, specialty training, elaborate treatment
procedures as compared to the Dental Office. For an instance, our Dental Hygiene does not
require a sophisticated Microscope needed for Dental procedures such as The Root Canal
Treatment. This is because our Business Model emphasizes on one particular aspect of Dentistry
and not the whole domain. Our idea focusses on the preliminary stage of the Dental Environment
that ushers our Clients towards effective prevention of potential Dental ailments rather than offering
costly procedures.
The cost effectiveness to our Clientele is prevalent in the long run in terms of saving a little more of
their valuable earnings. This is attributed to the less expensive and convenient Dental Hygiene

4. services that we would render to our clients at our facility. Regular visits to the Dental Hygiene
Office would pave the way for cheaper, safer and more convenient maintenance of Dental health
and also reduction in the number of risks and complexities associated with later stages of Dental
treatments. For an instance, regular visits to the Dental Hygiene Clinic would ensure better Dental
health and reduction in the possibilities of potential Dental risks such as development of cavities in
teeth.
We would base the foundation of our Business Model on the ethical and Client oriented ideology of
Prevention in the sense of prevention of future risks and concerns related to Dental Health.

5. PART I
1. Company profile
The Name:
The most suitable name of our Dental Hygiene Clinic is one that represents our creativity and
camaraderie among all group members. Figure 1 below depicts the Name and Logo of our entity:
Figure 1: Name and Logo of the Investment proposal
Source: own elaboration
As our name quotes, we are a start-up entity focusing on the idea of creating value in the Dental
Health domain by catering to the Dental needs of the society. As we are a new Brand in the Polish
market, we would like for the name of our enterprise to be short and simple and one that majority of
our Target Clientele could relate to. The prime reason for choosing P & Z as our name comes from
the name of an American multinational conglomerate that most of us are familiar with. P & G or
Procter and Gamble is a colossal consumer goods company that most of us are well aware of
owing to its diversified brands and products. Our idea of the name of our enterprise being
influenced by P & G is because our society would easily relate to it and it would help us in the long
run in terms of prospective cross border expansion. We call ourselves Dental Experts in order to
assure our Clientele safety and quality of our services in terms of professionalism and expertise.
Our name is succeeded by the tagline “Prevention over Treatment” that is self-explanatory. This
tagline fits perfectly with the name of our Business idea by the virtue of the main focus of our
operational activity. It also serves as the groundwork for the fundamental idea of familiarizing our
Clientele with the purpose of establishment. The tagline will be instrumental in justifying to our
Clientele the significance of Prevention of potential Dental risks and concerns as opposed to
complex and exorbitant cost oriented Dental Treatments. We aim to establish and popularize the
inter-relation between “P & Z” and Prevention in the minds of our Clientele when they think of
Dental Health.
P & Z Dental Experts
Prevention over Treatment

6. The location:
The desired location of P & Z is Warsaw city in Poland. The location was chosen with mutual
consent of all group members. The location was chosen owing to the prime emphasis on promoting
the idea of Dental Hygiene and Prevention of potential Dental risks for our Clients. We will start
from Warsaw city as it is the Capital City of Poland and also as it has a high concentration of big
Organizations and their headquarters. Our location will help us a long way in terms of promoting
our core Business activity. Our entity is perfectly located as it empowers us with easy access to our
Target Clientele who happen to be employees from these Organizations. The location is in the
heart of the district of Warsaw and it contributes significantly to the easy accessibility and
convenience for our Target Clientele. The location in Warsaw District is as follows:
P & Z Dental Experts
Registered Office Address:
Platinium Business Park V
Domaniewska 44A
02-672 Warszawa, Polska
Sector of activity:
The Sector that will accommodate our Entity is the Health and Wellness Sector. The induction of
our entity in this sector is evident from the purpose of our Business Model and its core Business
activity. There will be further categorization of our enterprise as being a part of the Dental and Oral
Health Sub – Category. We are representing the Private sector category of the Dental Health
sector. Moreover, we are a wholly Private Enterprise by the virtue of the sheer purpose and
concept of our Business Model. Figure 2 below is a pictorial representation of the categorization in
the Health and Wellness sector in Poland.
Figure 2: Categorization of P & Z in terms of Sector of Activity
Source: own elaboration
Health and Wellness Sector
Oral and Dental Health (Sub- Sector)
Public Sector: Contracts
with the National Health
Fund (NHF)
Private Sector
Private and Contracts with
the NFZ (Semi – Private)
Wholly Private
(P & Z)

7. As we can see from the categorization of our entity (P & Z), the entity is rightly classified as a
wholly Private Company. The Dental Health sub – Sector comprises of the Public and the Private
Sectors. The National Health Fund (NFZ) is a statutory body in Poland that monitors, regulates and
sanctions funds for the needy in the Dental Health Domain. The Public sector relies heavily on the
funds and grants sanctioned and allocated to the needy by the NFZ. The NFZ is an initiative by the
Government of Poland to cater to the Health needs of the Polish Society. The NFZ is a state
institution that finances health care benefits from contributions paid by people insured in the NFZ
(the insured individuals pay contributions to the NFZ, and in return for that they are entitled to free
healthcare).
For an instance, the NFZ will disburse an allocated and restricted amount of funds to a Public
Sector Dental facility towards the procurement of Dental Fillings. It will also disburse an appropriate
but restricted amount of funds to a Semi – Private Dental Facility only for specific Dental Services.
A Semi – Private Dental facility is a beneficiary of NFZ funds in spite of being a Private Entity by
the virtue of being an entity that has contracts with the NFZ for specific Dental Services.
Our entity, P & Z, is a wholly Private entity as depicted by the structure diagram above. We are a
wholly Private entity as the NFZ has reserved amount of funds for the Dental Health Sector,
moreover, it only approves funds for specific Dental services that are connected majorly to the
Dental Treatment aspect than the Dental Hygiene one. However, P & Z, being a privately-owned
entity, will have an edge over Public and Semi – Private Sector facilities in terms of timely
diagnosis of Dental risks and utmost care from the preliminary stages.
Legal structure:
Out of the main types of Legal Structures prevalent in the Business Market today, the Legal
Structure of P & Z will be Sole Proprietorship. This is evident from the Organizational Structure of
our entity which demonstrates the control and power of Decision making vested in the hands of its
Proprietor. Further implications of the Legal Structure of P & Z are subject to adoptions of country
specific norms on the grounds of adaptability. The inception of P & Z in the Polish Health Sector
will take the form of an Individual medical practice. An Individual medical practice is registered as a
one-man business in CEDIG which is the Central Registration and Information on Economic
Activity.
Being a prospective constituent of the Dental Hygiene sub – category of the Dental Health sector,
we can register our office in any form with the exception of the Sole Proprietorship and the nature
of the activity will facilitate our entry into the Central Registration and Information on Economic
Activity (CEDIG) or the National Court Register (KRS).
We will file our application for registration of our entity to the Office of the Mazovia Province
Governor. The activity undertaken in our facility will be carried out independently. Our entity may
seem one that falls under the Self – Employment category and the concept of Self – Employment
implies that the Office has only one owner. However, we are well aware that this categorization will

8. not inhibit the recruitment process of the required staff. The process of registration of our entity
does not require the Proprietor to possess initial capital. Moreover, the Owner does not have to
undergo an entire accounting procedure. In Poland, for small businesses, there exists a possibility
of Simplified accounting until their Turnovers do not exceed the benchmark of 1 200 000 Euros
annually (The Rate of 30
th
of September).
Equity:
The Equity that will result in the inception of P & Z will be mainly constituted by the Proprietor's
Equity and sanctioned funds from the European Union. Out of the total Equity or Capital required
for the establishment of the entity, a major portion of investment will be facilitated by the Proprietor,
however, the reliance on the sanctioned funds by the European Union is also to a significant
extent.
The total amount of Capital or Equity required for domiciliation of P & Z is an amount of 90,250
Euros. The Capital Structure of P & Z will comprise of two sections: 1. Equity that is constituted by
the Owner’s Capital – Euros 40250 and the Subsidy from the Labour Office of Warsaw City – Euros
10000 (Non – Repayable Subsidy) and 2. Debts from long term loans – Euros 40000. In order to
have the accurate compilation of the Capital Structure for our entity, we needed to decipher the
equity into Equity and Debts. The bifurcation of total capital and further categorization is depicted
by Figure 3 below:
Figure 3: Capital Structure
Source: own elaboration
Total Capital Structure
Equity Debts
Ministry of Labour
and Social PolicyThe Labour Office
(Non – Repayable
Subsidy
Owner’s Equity

9. As we can see from the Figure 3 above, the Equity going into the formation of P & Z will be funded
by the Owner (Proprietor) and the and The Labour Office whereas the Debts are derived from a
long term loan from the European Union under its Ministry of Labour and Social Policy program.
The categorization of the long term loan from the EU is a result of our Entity being eligible to
become a beneficiary of program or initiative by the EU for the empowerment of aspiring young
Entrepreneurs. Our entity fits into the eligibility criteria of this program initiated by the EU. The
Financial resources that will be facilitated by two different programs with varying criteria (Non –
repayable Subsidy from the Labour Office – Euros 10000 and the long-term loan as a debt from the
Ministry of Labour and Social Policy – Euros 40000), however, they will be dispersed from the
same source, the EU.
A portion of the Equity will be funded by the Labour Office. These funds form a part of Equity apart
from the Owner’s Personal Equity of Euros 40250. These funds for setting up a Business
Enterprise from the Labour Office of the Capital City of Warsaw are available to us because we are
citizens of our Country entitled to apply for it and receive these funds - unemployed persons
wishing to register and operate dental hygiene office in the city of Warsaw. The maximum amount
of funds that can be obtained from the Labour Office is 10,000 Euros. In order to pursue these
funds, we have to submit a request in writing along with the required documents and attachments.
These funds are given to Entrepreneurs as a Non - repayable stimulation for establishment
purpose of their Start - up ventures. However, there exists an important clause of this impetus
amount that our Business Enterprise has to be operational for more than a minimum period of 12
Months.
The Long term loan (Debts) is another Program initiated for the Empowerment of Young
Entrepreneurs by the EU. This unique program which that will facilitate funding is the one of the
Ministry of Labour and Social Policy. This program is called: Support in the Start. In totality, the
Ministry shall disperse 20 million euros for unemployed people who can apply for low interest loans
for starting a business. To obtain funds we should report to the financial intermediary acting in the
city of Warsaw and submit a request. The maximum loan amount that we will be able to avail for is
40 000 Euros. As this substantial amount that will have to be repaid to the EU, the interest rate
which we will borrow the amount at is 0.44% per year. The interest rate is determined at the stage
of conclusion of the loan and is fixed throughout the financing period and the repayment period is
up to seven years. This period given to us to repay the entire amount is sufficient as we hope to
have above average returns from Investment by the Virtue of the Idea of Investment being
innovative and Client centric.
Number of employees:
P & Z and its professional Family comprises of the following staff in its facility:
4 dental hygienists
4 dental assistants
1 dentist

10. 2 receptionists
1 cleaning lady
1 Proprietor (manager)
Two-shift work (2 units, from Monday till Friday)
P & Z is an innovative idea in the Dental Wellness domain and it is start – up entity. The enterprise
will comprise of a relatively small number of employees and Managerial staff at the time of its
inception.
The professional family at P & Z will focus on the care and consultation of our Clientele in terms of
potential Dental risks and preventive measures for a better Dental future. A major part of our staff is
constituted by Dental Hygienists and rightly so owing to the core activity undertaken in our facility.
We will have four Dental Hygienists who will form the crux of our Business offering utmost care.
Dental Hygienists are highly educated and trained professionals who focus on the care and
prevention of future Dental concerns as opposed to Dental Treatments offered by Dentists.
However, Dental Hygienists are learned to a considerable extent in the Dental Treatments domain
which extends their professionalism and expertise.
The Dental Assistants form an integral part of our staff at P & Z as their responsibilities make the
work of Dental Hygienists and Dentist a lot easier and well-coordinated. The Dentist in our facility
will extend the expertise offered in our facility in terms of Treatments and consultation in cases
where there exists a need for collaborative work.
Another reason behind having four Dental Assistants in our facility is that Dental Assistants will not
only care for our Clientele but also enlighten the environment of our facility by coordinating
effectively with Clients and Dental Hygienists.
P & Z will be a Sole Proprietorship entity. It will be owned and managed by a single individual
(Proprietor). During its inception, P & Z will be managed and marketed by the Proprietor. The
Proprietor will be a sole promoter of the Business Model who will co-ordinate with the entire staff
and also work on the development of prospective Clientele with the help of marketing strategies.
The receptionists (working in 2 different shifts) will offer professional front office environment to P &
Z. The Receptionists will cater efficiently to the clerical needs of our facility. They will be
instrumental in functionality of the ERP and Information systems installed in our facility. For an
instance, the receptionists will serve as facilitators of confidential information and Client related
data between our Clientele and the Management.
Lastly, the Cleaning personnel will provide solutions to the indispensable needs of hygiene and
cleaning standards in the facility.
Organizational structure:
The organizational structure of P & Z is one that is deciphered using the top - down approach. The
Proprietor will be at the helm of the Organizational chart. The entity will have a functional structure
because of the entire idea of the Business Model being one that is function or activity oriented. The

11. structure of our organization is deciphered and classified in a way that makes it easy for the
Management (Proprietor) to have effective coordination and control in the entity. The
Organizational Chart of P & Z is delineated by Figure 4.
Figure 4: Organizational Chart of P & Z
Source: own elaboration
The Top Management (The Proprietor)
Operations Administration Marketing
Proprietor (Marketing
Manager)
Receptionists
Cleaning Personnel
4 Dental
Hygienists
1 Dentist
4 Dental Assistants
Financial Accounting
The Recording, Assimilating and Reporting
of Financial Statements of P & G
(Outsourced to a Private Third party)

12. 2. Products / services and markets
Description of services and the Market:
Our entity, P & Z, is a brainchild of the Proprietor that offers services in the Dental Health and
Hygiene sector. These services represent just one specific area of Dentistry. Our entity is a
professional workspace where we will focus on the innovative idea of prevention. The core
operational services will necessarily take the form of preventive diagnosis and measures offered to
our clientele. Awareness about Dental Hygiene as well as preventive measures and practices will
be our core Business services. These rejuvenating services will be directed towards ensuring our
clientele a healthy Dental future and deviation from anticipated potential Dental risks. For an
instance, our routine services will include a preventive measure such as Professional Teeth
cleaning or an additional service ensuring client satisfaction such as Teeth whitening.
Moreover, in cases of exigency and circumstantial Dental Health of any of our Clients, we will offer
conservative Dental Treatments provided by the Dentist in our entity. These Treatments are not
included in our core operational activities but we will offer them for the welfare and convenience of
our clients.
The Market that our entity represents is one that encompasses state of the art Technology and
extremely learned and accomplished professionals. The Dental Health and Hygiene sector is aided
by cutting edge equipments and conservative treatments that facilitate instantaneous diagnosis and
cure for Dental risks and concerns of people of our society. We strongly believe that our Market,
specifically the Dental Hygiene domain, is unidentified. This new market that we will potentially
represent, will require enormous awareness and penetration. With the help of our innovative idea
and unparalleled vision to create immense value in the minds of our Clients, we aim to ensure
client centered precautionary measures that will empower them with a healthy Dental experience
and future as opposed to complex and unpleasant Dental treatments.
The market we represent is predominantly untapped and one that needs utmost attention and
awareness on the part of our prospective clientele. We, as a business entity, strive for the
relentless outreach and penetration of the humungous potential of our untapped market in terms of
acquirement and multiplication of our Target Clientele - Knowledgeable and accomplished working
professionals.
Marketing Policy of P & Z (Marketing the vision that enlightens and ensures a healthy Dental
Future):
The Marketing policy of our entity relies heavily on the geographical location and the identification
of Target Market. Our Business Model, an unaccustomed and innovative one, will have an equally
innovative and well deciphered Marketing policy. This marketing policy will be aimed towards
paramount familiarization of the concept and its penetration into the target market. Moreover, the
marketing strategies will include USPs such as creation of monumental value in the market through

13. knowledge of Dental Hygiene as well as cost effectiveness pertaining to good Dental Health in the
long run.
The Marketing Policy of P & Z is branched out to achieve maximum penetration into this mammoth
untapped market. Figure 5 below delineates the well-planned marketing and promotion strategy of
the Marketing arm of P & Z.
Figure 5: Marketing Strategy of P & Z
Source: Own Elaboration
As deciphered in the pictorial representation in Figure 5, the Marketing Strategy that will be
adopted by P & Z will deploy relentless efforts towards marketing it heavily in the target market on
the grounds of maximum enlightenment of the concept and penetration. The strategy will be broken
down into two sub - categories such as Direct Marketing and Digital Marketing.
The Direct Marketing will encompass the Enterprise's unique vision to transmit value through
enlightenment and welfare in the lives of its Target Clientele. This strategy will be implemented
using two techniques. One technique will be where we as an entity will sign contractual agreements
with companies post detailed and rewarding discussions with the Managements and other
Marketing Strategy of P & Z
Direct Marketing Digital Marketing
Contractual
Agreements with
Companies
Advertising in
companies with no
Agreements
Social
Media
websites
Inclusion of
website link of P
& Z in intranet
portals of
companies
Potential
agreements
with
Professional
networking
websites
Search
Engine
Optimization

14. concerned personnel in these companies. The other technique will involve the transmission of the
Purpose and concept of our Business Model via Advertisements (Hoardings, Roll ups, flyers in
common areas like cafeterias, etc.)
The Digital marketing will not only ensure cost effectiveness as far as marketing costs are
concerned but also help P & Z in maximum outreach to its clientele. The Digital marketing in three
primary ways. The fourth way of potential agreements with Professional Networking Websites will
be incorporated in the Marketing Strategies in the future when P & Z will be looking forward to
diversification and cross border expansion.
To start with the Digital Strategy of Marketing P & Z, we will create and constantly update a
uniquely designed and sophisticated website. We will make the most of the relevance of social
media websites such as Facebook and twitter in the lives of our Target Clientele. For an instance,
posting or attaching the link to P & Z's website on the Proprietor's profile or Create a company
profile page on Facebook or Tweet about benefits of Dental Hygiene in order to encourage our
prospective clientele.
Another crucial component of the Digital Marketing Strategy aiming towards the maximization of
penetration into Companies is creating a direct interface for employees and Managerial staff of
companies. This interface will create a direct connection and relativity of P & Z with the welfare of
our clientele in terms of awareness and transmission of basic information about our entity. The
interface implies a curtailed advertisement of P & Z and its core operational activity on the intranet
or networking portals used in these companies for effective internal communication. The curtailed
advertisement will be instrumental in creating a positive first impression in the minds of employees
and staff and also comprise of the complete link or URL of P & Z’s website for further detailed
information about our entity.
Considering the tremendous amount of information sought after through the search windows of the
biggest search engines in operation today, we opted for another very commonly and widely used
technique of Digital Marketing. This technique, Search Engine Optimization (SEO), will help a long
way in elevating the importance of our Business Model as well as in establishing high relevance of
our core operational activity in the busy and dynamic lifestyles of Professionals in and around the
location of our entity. SEO will be a boon for our Business in terms of fulfillment of the prime
objectives of establishment of our entity – Dissemination of knowledge of Dental Hygiene and
efficiently tapping the untapped potential of our humungous market in Poland.
Main Customers, Suppliers and Competitors:
Our entity is a part of the Dental Health Sector, so our Suppliers and Competitors are also from the
same sector. Further justification on these Market Forces are as follows:
a. Suppliers: Medical Equipment and Materials form a major part of the Supplies required to set up
our entity. In the Dental Health Market in Warsaw city we have one too many suppliers of Dental

15. Equipment and Materials. However, we shall choose one particular Supplier with whom we will
have a contractual deal to procure all of our Equipment and Materials right from the beginning in
order to avail discounts on these crucial supplies. The contractual deals will be on the grounds of
negotiations and the best possible prices owing to the homogeneous nature and quality of supplies.
The procurement process of our supplies will be undertaken at the price agreed upon by both
parties and will attain redundancy in the future in terms of regular and timely supplies:
1. Meditrans
2. Kol-Dental
3. PDD (Polish Dental Distributor)
For an instance, following is a small list of major players in the Medical Equipment Supplies Market.
We will finalize one supplier and seal the deal for procurement of all required supplies.
b. Target Customers: Our Business Model is innovation driven and client centered. Like any other
entity from the Health and Wellness Services sector in the Polish Market, our clients are at the
Heart of the Business Productivity and Performance. Moreover, the fundamental idea behind the
inception of the Business Model is the concept of Prevention which happens to be one that is
universally applicable in terms of relevance and significance across all customers in our society.
The concept of Investment proposal, possessing prevention and innovativeness in its core
operational activity - familiarizing our clients with the overall welfare associated with preventing
potential Dental risks, is the prime reason why we think we will be catering to clients across all age
groups.
However, we have a specific portion of the Population of Poland that will form our Target Clientele.
We firmly believe that location of our entity strongly complements the identification and
acquirement of our target clientele. The target clientele that we aim to cater to is that from big
corporations in close proximity to our entity.
Our target clientele are employees of corporations, advertising agencies, whose workplaces are at
the heart of corporate and industrial region of Warsaw - Mokotów. They are young people who
want to take care of their health, but often do not have time to think about it because these
employees are mobile, energetic and living a fast paced and spontaneous lifestyle. We plan to
advertise and promote our concept in their workplaces. Employees of corporations are very
intelligent who have higher education and they are aware that prevention is better than cure.
Employees of corporations are often people aged between 25-40 years, young married couples
and parents of small children.
Hence, the penetration of the value of our Business Model and of the care and awareness will
gradually be into the lives of entire families of these working professionals. People who work in
corporations easily amass about 1000-2000 Euros monthly and they have the knowledge that is
better and advisable to spend money on prevention than a lot more on complex treatments in the

16. future. Employees of corporations are learned and accomplished individuals who are well aware of
the fact that good Dental Health and Hygiene are quintessential pre-requisites of a beautiful smile
and a sought after professional personality.
c. Competitors: As stated above, our competitors are predominantly going to be from the same
sector of activity as us. Our dental hygiene office is an innovative office, the first such
establishment in Warsaw - for this reason we do not have a direct competition. However, our
competitors can be only dental offices located in Warsaw. The number of such operational Dental
Offices is tentatively around 500. They offer services such as our office but more focused on
treatment than prevention. Our practice focuses on prevention - so business profile is different.
Moreover, we are innovation driven and indispensible factors such as awareness and cost
effectiveness in the long run would turn out to serve as USPs of our Business Model.

17. 3. Description of the investment project in question: justification of the need
for investment in question, identification/ brief description of the key
assumptions (sales, prices and costs, initial investment and your schedule,
forms of financing, etc.)
The investment project or the Business Model that we have undertaken is a patrician one that
introduces to our society the concept of prevention of potential Dental risks and concerns as
opposed to being subject to paying exorbitant amounts of money in the wake of emergencies
arising out of hectic and eventful lifestyles of working professionals. The investment project aims
not only at creating awareness and enlightening the mindsets of our Clientele but also at tapping
the untapped potential of the vast market we wish to cater to as an Organization. The Business
Model will create tremendous value in terms of dissemination of knowledge and utmost care in the
Dental Health Market in Poland. As the Investment idea is innovative and new, our prime objective
as an entity is to offer services that will make significant amount of difference in the lives of our
Clientele in long run in terms of averting potential Dental risks and liabilities as well as fabricating a
professional environment of paramount care and situational consultation. The various costs and
assumptions along with the innovative services that P & Z will offer are demonstrated by the well
bifurcated table 2 below. Table 2 also gives a clear insight into the amount of money in Euros that
has to be invested for procurement and establishment.
The total and consolidated amount of money to be invested in the Investment Proposal – P & Z
Dental Experts:
Total amount to be invested in Euros: 90250
Amount to be invested in Infrastructure: 56250
Amount to be invested in Dental Equipment, Tools and Materials: 34000
Tables 2 and 3 below illustrate the Capital Expenditure and the Services offered to our Clientele
respectively:

18. Table 2: Bifurcation of amount of money to be invested (Amount is in Euros):
Capital Expenditure:
Fixed Expenditure Dental Tools and Materials
Item Amount (In Euros) Item
Amount (In
Euros)
2 Dental Units 30000 Intraoral Camera 2000
Dental Compressor 2500 High Speed handpieces 500
X - Ray equipment 7000 Low speed handpieces 500
Dental Assistors 1000 Handpieces accessories 250
Dental stools 500 Prophy - Jet (3*2500 Euros) 7500
Dental cabinets 10000 Periodontal probe 2000
Reception room furniture 1000 Materials 10000
Bathroom furniture 1250 Tools 1500
Social room furniture 500 Endometer 500
Floor 250 Ultrasonic scalars (Tips) 500
Light 1000 Dental autoclave 5000
Rental cost / Month 1000 Cleaning and lubrication system 2500
Total Fixed Expenditure 56000
Practice management software &
hardware 1500
Total Dental tools and materials 34250
Total Capital Expenditure: (Fixed Expenditure + Dental Tools and Materials) = 90250 Euros
Source: Own Calculations
Table 3: Services Offered at P & Z with their respective prices (Amount is in Euros):
Source: Own Elaboration
Services Offered:
Services Price (In Euros)
Intra - Extra oral examinations 0
Dental cleaning Package:
a. Air polishing 30
b. Ultrasonic scaaling 10
c. Topical flouride treatment 10
Total Dental cleaning package 50
Dental sealant (1 Tooth) 15
Dental radiograph / X - Ray (1 Tooth) 5
Adaptation visit (For children) 10
Oral hygiene instructions 0
Professional in - office teeth whitening 150
Take - home whitening kit 100
Dental referrals as needed
Conservative treatment as needed

19. As we can see from the Investment assumptions above, the Capital Expenditure and services of
our innovative Business Model are related to the core Dental Health Sector, however, the
orientation and undertaking of operational activities is going to be aligned with the prime objective
of business – “Prevention over Treatment”.
The implementation of the Business Model will commence with the identification of the actual
facility or office space at the desired location. Post identification and negotiations, we will proceed
with the renting of the facility at the desired location in Warsaw city. This is going to be succeeded
by the procurement of infrastructure and equipment that will form the base for our core operational
activity. The success of our Business model will heavily depend on the generation of required
investments and the effectiveness of the Marketing Strategies. The forms of Financing that will
facilitate the establishment of our entity are well deciphered and depicted by the equity diagram
shown above in the Equity section of our proposal.

20. PART II
1. Investment expenditure (investment plan in tangible and intangible assets and
current assets – Working Capital investment)
The Investment Expenditure: The Investment Expenditure for P & Z will be majorly diverted
towards the procurement of Tangible Fixed Assets and Intangible Asset in terms of authorization to
carry out our core operational activity. The Investment or Capital Expenditure will be a consolidated
amount to the tune of 90250 Euros.
This consolidated amount of Investment Plan is categorized in three main categories. The first
category will comprise of the procurement of Fixed tangible assets that will facilitate the
actualization of our concept through Professional Training and Expertise, the second category of
Investment will consist of the imperative approval and authorization to establish our Dental Hygiene
Clinic and finally the third category of Capital expenditure will be constituted by the Investments
diverted towards the indispensable implementation of Marketing and Publicizing strategies of our
Marketing Department. Figure 6 below illustrates the categorization of our Initial Investment
Appraisal:
Figure 6: Investment Procedure for P & Z
Source: Own Elaboration
As depicted in the figure 6 above, the Investment expenditure in Tangible Assets will comprise of
procurement of all the Fixed Assets at the time of Inception. The detailed list of Fixed Assets along
with the corresponding amounts to be invested is as follows:
Investment Expenditure
Procurement of Tangible
Fixed Assets:
Machinery and
equipment: 90250 Euros
Approval and
procurement of
License to
practice Dental
Hygiene: 6000
Euros
Initial Marketing
Expenditure: 10000
Euros

21. Table 4: List of Fixed assets:
List of Fixed (Tangible) Assets:
No. Asset Amount (In Euros)
1 2 Dental Units 30000
2 Dental Compressor 2500
3 X - Ray equipment 7000
4 Dental Assistors 1000
5 Dental stools 500
6 Dental cabinets 10000
7 Reception room furniture 1000
8 Bathroom furniture 1250
9 Social room furniture 500
10 Floor 250
11 Light 1000
12 Handpieces:
13 Intraoral Camera 2000
14 High Speed handpieces 500
15 Low speed handpieces 500
16 Handpieces accessories 250
17 Prophy - Jet (3*2500 Euros) 7500
18 Periodontal probe 2000
19 Endometer 500
20 Ultrasonic scalars (Tips) 500
21 Dental autoclave 5000
22 Cleaning and lubrication system 2500
Total Fixed Assets 76250
Source: Own Elaboration
Current assets: The current assets mentioned below are as per the Balance sheet after the first
year in Business.
The Total amount of Sales Generated through all clientele is 195446 Euros after the first year of
Business (2017). As per our assumptions and as per the categories of Clientele, the bifurcation of
sales or fees collected from Clientele is 30% from Individual Clientele in form of cash balance and
70% from Corporate clients through agreements with Companies in form of Creditors. Therefore,
the division of the Total Amount of Sales or Fees is: 61004 Euros in Cash from Individual Clients
and the rest of 134442 Euros from Corporate clients (Half in cash and half in credit) from
Companies.
The further categorization of sales generated of corporate clientele is assumed as 50 % in cash at
the beginning and 50% at the end of every month as a result of contractual agreements with
Companies. This further categorization of the amount of 134442 Euros is: 134442 * 0.50 = 67221

22. Euros in cash and 5602 Euros in creditors (67221 Euros / 12). The Credit period that we assume is
a period of One Month or 30 Days. Therefore, the total Cash balance at the end of the year is
constituted by the cash collection from individual clients plus the 50% of the fees from Corporate
clients.
The total cash balance is 61004 Euros + 67221 Euros (50% of Corporate Clients in cash from
Companies). The cash balance is The Current assets (as per Balance sheet at the end of first
year: 2017) of our entity P & Z are constituted by three constituents that are:
1. Cash Balance: 128225 Euros
2. Creditors: 5602 Euros (67221 / 12 months)
3. Inventory: 11000 Euros
4. Prepaid Rent (Expenses): 12000 Euros (1000 Euros / Month)
The Inventory refers to the Materials and tools that will be reinforced into the facility once every
month and the Prepaid expenses represents the Prepaid rent that we will be paying at the
beginning of every month. The Inventory that will be reinforced every month is further bifurcated as
Dental Materials – 11000 Euros as mentioned in the list of current assets above. The category of
Marketing Expenses will be instrumental not only in ensuring substantial awareness of our concept
and business idea but also its significant penetration into our Target Market through Digital Media
(Social Media, Intranets of Companies and Professional Website of P & Z).
2. Revenues and Operating Costs:
Sales price policy and costs of goods and services and Cash Collection policy working
capital management investment: The sales categories of our Services and the cash collection
policies that we have adopted on the basis of categories of clients are demonstrated in detail by
tables 5 and 6 below:
Table 5: From Individual clients
Source: own calculations
Services for individual % of Clients Number Price (In
Euros)
Sales (In
Euros)
Cleaning Package 40% 475 50 23760
Air Polishing 5% 59 30 1782
Scaling 10% 119 20 2376
Flouride 5% 59 20 1188
Dental Sealant 7% 83 15 1247
Radiograph 10% 119 5 594
Adaptation Visit 3% 36 10 356
Teeth Whitening 10% 119 150 17820
Whitening Kit 10% 119 100 11880
TOTAL 100% 1188 61004

23. Table 6: From Corporate Clients
Services for corporative % of Clients Number Price (In
Euros)
Sales (In
Euros)
Cleaning Package 50% 1386 40 55440
Air Polishing 3% 83 20 1663
Scaling 8% 222 15 3326
Flouride 3% 83 15 1247
Dental Sealant 7% 194 10 1940
Radiograph 7% 194 5 970
Adaptation Visit 2% 55 10 554
Teeth Whitening 10% 277 150 41580
Whitening Kit 10% 277 100 27720
TOTAL 100% 2772 134442
Source: Own Calculations
Depreciation policy: The Depreciation policy that we have incorporated for all of our Non –
Current Assets is as per the Table 7 below.
Table 7: Depreciation Policy
Source: own calculations
Salaries and Payroll Policy: Table 8 below shows us the Salary and Payroll Structure at P & Z.
As seen in the table 8 below, the total amount that will diverted towards the payment of Salaries
and Payroll in one entire year is 85200 Euros.
Total Assets to be Depreciated using Straight Line Method (Amt. in Euros): 79250 Euros
Total Useful Life of Assets assumed: 5 Years
Salvage Value at the End of Useful Life (Assumption): 0 Euros
Total Depreciation Expenses using Straight Line Method: 15850 Euros
Total Depreciation Expense for Income Statement: 15850 Euros

24. Table 8: Payroll Structure at P & Z
SALARY (Monthly
in Euros)
NUMBER TOTAL
(Monthly in
Euros)
Dentist 1200 1 1200
Dental hygienists 500 4 2000
Dental assistances 400 4 1600
Receptionists 400 2 800
Cleaning staff 200 1 200
Financial accountant 500 1 500
Manager 800 1 800
7100
In one year: 85200
Source: Own Calculations
3. Proforma Income Statement:
Our proforma Income Statement gives an insight into the Total income for one entire operational
year as well as a detailed list of all the expenses that will be incurred whilst undertaking operational
activities. The Total income is basically the total revenue that will be generated by the virtue of fees
collected from both of our categories of clientele: Individual and Corporate. The detailed list of
expenses ccomprises of both direct and indirect expenses that will be incurred at P & Z. After the
deduction of all expenses along with the arbitrary Income Tax expense, we have the consolidated
Net Income that the Sharehoders will be a beneficiaries of.
The Net Income of 24925 Euros will be generated after deduction of all expenses from the Total
Income in the first year. The Net Income is approximately 12.75 Percent of the Total Inccome
which according to us is a resonable and decent amount of margin for the Sharehoders after one
year in business. Ideally the Net Income or Profit that is generated from the Total Income should be
in the range of 10 – 15 percent. This Market trend will make our project a profitable and feasible
one as our Net Income percentage lies well within the standard (desirable) range. The Income
Statement for the first year of Business is calculated in our Excel spreadsheet. Table 1 in the
Original Scenario spreadsheet represents the Income Statement for P & Z after the completion of
one entire year in business.
4. Proforma Cashflow Statement:
The Cashflows (both Global and for Shareholders) that we calculated for our Entity P & Z represent
inflows and outflows of cash for a timespan of five years (2017 to 2021; including the investment
year – 0th year). We calculated the Net Income after deducting all the outflows from the Inflows.
The purpose of Cashflows is instrumental in calculating the indispensible Net Present Value and

25. the Internal Rate of Return for our Investment Proposal. The calculation of the Net Present Value
will tell us if our Business or Investment model is exceeding the total costs or not and the Internal
Rate of Return will give us the maximum profitability of our Business activity.
As per our calculations the Net present value achieved is 47684.47 Euros which means that this
amount exceeds the Total costs that we will incur and it will be the profitable value that will be over
and above all costs and exenses. The Internal rate of return we achieved, after considering
cashflows for the time span in consideration, is 26 Percent. This value represents the maximum
profitability of our Investment Appraisal and it is well above the Discount Rate of 8 Percent in
consideration. As the Internal Rate of Return is well above the Discount rate, the Project is
desirable and can be implemented with a realistic and optimistic mind set and not an ambitious
one.
However, the differences in the Operational Cashflows and the Total Cashflows are a result of
investments that need to be made at the end of every year to the tune of 5602 Euros. This
investment to be made into the Capital Structure is by the Virtue of the Credit Period given to our
Debtors (Corporate Clientele). This amount of 5602 is calculated as: 50% of the total Revenue
generated from Corporate Clients / 12 months. Therefore, 67221 / 12 = 5602 Euros of the 12th
month of every year carry forwarded to the next year which infuses the need to invest the specified
amount.

26. Part III: Assessment of the economic and financial viability of the
project:
Evaluation methods in context:
Net Present Value and Internal Rate of Return:
A significance of computation of Cashflows also facilitates the calculation of the extremely vital Net
Present Value and the Internal Rate of Return for our Investment Proposal. These methods are
crucial in transmitting the financial viability and profitability of our Investment Appraisal. These
methods are calculated using cashflows and the discount rate into consideration as well as the
discount factor that tells us about the discounted cash flow (DCF) analysis to determine the present
value of future cash flows. The calculation of the Net Present Value will tell us if our Business or
Investment model is exceeding the total costs or not and the Internal Rate of Return will give us the
maximum profitability of our Business activity.
As per our calculations the Net present value achieved is 47684.47 Euros which means that this
amount exceeds the Total costs that we will incur and it will be the profitable value that will be over
and above all costs and exenses. The Internal rate of return we achieved, after considering
cashflows for the time span in consideration, is 26 Percent. This value represents the maximum
profitability of our Investment Appraisal and it is well above the Discount Rate of 8 Percent in
consideration. As the Internal Rate of Return is well above the Discount rate, the Project is
desirable and can be implemented with a realistic and optimistic mind set and not an ambitious
one.
Discounted Payback Period:
The Discounted payback period represents the time period taken by the business to repay the total
investments that contributed to the its formation. The discounted pay back we calculated was on
the basis of the Accumulated Discounted Cashflows. The payback period thaat we attained was
exactly 2 years, 1 month and 13 days. The calculation of the Discounted Payback period is shown
in the Original Scenario of our Excel spreadsheet.
Breakeven Point:
The Breakeven point is one that represents a proposition where the total investments into the
project have been covered by the Operational activity. The Breakeven point in sales that we
achieved is at 143668 Euros where all of our investments get covered by the revenues generated.
The corresponding Breakeven point in Units or Number of Clients that we have to cater to is 2911
out of the total of 3960 Clients that we anticipate in one entire business year.
Sensitivity Analysis:
In our Sensitivity Analysis we measured the sensitivity and reaction of the Net Present Value of our
entity when held against variable overheads and the discount rate into consideration. The discount

27. rate and variable overheads into consideration for sensitivity analysis were ones we thought would
significantly impact the financial viability and profitability of our appraisal. The Net Present Value
(NPV), taken into account as a constant value for analysis, is volatile in accordance with the
variability of the overheads used for analysis. The important overheads that we took into
consideration for sensitivity analysis of the Net present value are, 1. Discount Rate, 2. Number of
Clients, 3. Raw Materials and 4. Salaries or Payroll.
By recording the sensitivity of the NPV to the overheads that we selected, we can make some
important observations that will help shareholders and investors in ascertaining as to which is the
most overhead or which is the factor or overhead that will result in a significant impact on the NPV
in terms of its value in figures either increasing or decreasing. The observations are:
1. The NPV increases or decreases by a more or less constant value when its sensitivity
to the Discount Rate is recorded. As we increased or decreased the Discount Rate, the
NPV increased or decreased by an approximate amount which was in the range of
3000 – 4000 Euros.
2. There is a convincing impact of the change in the number of clients on the NPV. The
NPV changes by a considerable amount when the number of clients increases or
decreases. We conclude that the NPV is highly sensitive to the number of clients that
we will cater to.
3. The Raw Materials overhead also makes the NPV change significantly as its one of the
most important overheads that contributes to the core opoerational activity at our
entity. Just like the Number of clients, the Raw Materials overhead is another very
crucial overhead that the NPV is highly sensitive to.
4. The Salaries or Payroll overhead is resulting in the NPV increase or decrease like all
the other overheads however, the sensitivity is till a moderate level. The payroll is also
vital in a positive and desirable NPV as it also happens to be one overhead that is
responsible for the undertaking of the core operational activity.
Scenario Analysis:
In this section of analysis we considered two scenarios that our Business model would find itself in
by the virtue of the changes in overheads that we selected (same overheads as used for Sensitivity
Analysis – Raw Materials, Payroll, Number of Clients and Discount rate). This type of analysis is
instrumenta in telling us about the ideal scenario or proposition our entity should operate in. The
scenarios, apart from the most likely or Original Scenario, are – 1. Optimistic Scenario and 2.
Pessimistic Scenario.
The Optimistic Scenario is one where we assume desirable levels of overheads in consideration -
the levels that would result in maximum profitability according to our assumptions.
The Pessimistic scenario or the worst case scenario is the one where we assumed higher than
usual values of overheads and recorded a negative NPV. This implies that the Business would
incur losses and the present value would recede and not exceed the total costs. A summary,

28. including the values of overheads in the two scenarios along with their impact on the NPV and the
Internal Rate of Return, is recorded in our Excel spreadsheet.
Scenario analysis will assist shareholders and investors in getting an insight into the extremes or
the unlikely scenarios (both positive and negative) the business model can be subject to. This will
help a long way in terms of controlling costs and risk management.
CONCLUSION:
We would conclude by stating the main reasons or motives for investors to invest their valuable
capital in our Investment Project (P & Z Dental Experts):
1. An innovative business model that familiarizes our society with a new concept and
approach to Dental Health and Hygiene.
2. An idea that promotes awareness and well being of the people of our society.
3. A business model that creates immense value for our Clientele in terms of knowledge
transmitted and cost effectiveness in terms of investments made for maintaining good
Dental Health.
4. A lucrative project that not only ensures a client centric approach but also promises
convincing revenues right from the first year in business (The percentage of Net Income
generated lies well within the trending and desirable market range).
5. Finally, our project is an extension to the idea of offering utmost Dental care and treatment
to Clients like any other Dental Office, however, it is different and unique with regards to
the stage at which we will offer our services. This supports our core ideology or belief that
is ‘Prevention over Cure’.