this is business Plan power point illustration of Establishing a research and producing facility for African Traditional medicine. this is done as a proposal requirement for my masters thesis in project management

1. ESTABLISHING A RESEARCH
AND PRODUCING FACILITY
FOR AFRICAN TRADITIONAL
MEDICINE IN KAILAHUN –
SIERRA LEONE
Business proposal By
Melvin Bunton-Nicol
Group 522
1

2. DEFINITION OF BUSINESS PLAN
 In its simplest form, a business plan is a guide—a
roadmap for your business that outlines goals and
details how you plan to achieve those goals. Your
business plan may also describe your team and
why they are the right people to achieve your
business goals.
2

3. OVERVIEW
 population of Sierra Leone is 6,190,280.
 The Ministry of Health and Sanitation is directly
responsible for health care delivery in Sierra Leone
challenges
 The health sector is in an appalling state:
 It is over-centralized
 under-funded
 under-staff.
 Services are severely limited in much part of the
country and access depends entirely on how much
you can afford to pay.
3

4.  For most Sierra Leoneans, health care amounts to
buying basic drugs from pharmacies, some of
which are registered and run by qualified personnel,
others of which are simply stalls on the street
manned by unlicensed briefcase pharmacists.
 Malaria: In Sierra Leone, malaria is one of the
major leading causes of morbidity and mortality in
children under five years of age, accounting for
about 50% of outpatient visits and 38% hospital
admissions. Malaria contributes to close to two of
every five child deaths and to one of every four
deaths in a general population
4

5.  Tuberculosis: The burden of tuberculosis (TB) is
increasing in Sierra Leone. Between 2004 and
2007, the number of registered TB cases in the
country almost doubled, in spite of a case detection
rate of 52% (the WHO target is 75%).
 Nutrition: Children in Sierra Leone are generally
malnourished. In 2008, 21% of children under age
five were found to be underweight or too thin for
their age while 36% were stunted or too short for
their age and 10% were wasted or too thin for their
height
5

6.  The most easy access and affordable medicine are
African tradition medicine.
 Even though this could be the solution to the
challenges of the health sector its also lack
modernization and a risk to health in this state
6

7.  according to estimated survey by world health
organization 80% of Sierra Leoneans make use of
Traditional medicine and an estimate of 40%
depend only on traditional medicine due to high
cost of orthodox medicine and belief system
use traditional
medicine
orthodox medicine
use
can't afford other
treatment, depend on
traditional medicine
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8. ESSENCES OF THE PROJECT
 The project is to establishing a research and
producing facility for African Traditional Medicine in
Kailahun - Sierra Leone.
 The main goal of this project is to undertake
scientific research on some useful traditional
medicinal herbs and develop or reproduce them to
an efficacious hybrid traditional African medicine to
be marketed in Sierra Leone and the entire West
African region
 NO LETHAL SIDE EFFECT + AFFORDABLE
COST
8

9. MARKETING ANALYSIS
 2 sets of customers: internal/local and regional
 internal/local: Sierra Leone is 6,190,280
 80% of Sierra Leoneans make use of Traditional
medicine
 estimate of 40% depend only on traditional
medicine due to high cost of orthodox medicine and
belief system
 Regional: ratio of users but with high number of
population
9

10.  SWOT ANALYSIS
 A tool that identifies the strengths, weaknesses, opportunities
and threats of an organization. Specifically, SWOT is a basic,
straightforward model that assesses what an organization can
and cannot do as well as its potential opportunities and threats.
Strength Weakness Opportunity Threats
Untapped forest
of medicinal
value
Lack of experts Development Deforestation
Reasonable cost Job Discredit
traditional
medicine.
10

11. MARKETING PLAN
 The project will seek to attract two different groups
of customers and will thus have two strategies to
attract them. Anticipation is made that by far the
largest group of customers will come from internal
customers since 40% of a population of 6,190,280
is estimated to be the target market. But
notwithstanding Sierra Leone is a very small
country as compare to its regional neighboring
countries. Therefore customers’ toll from the region
would surpass the local customer base by the
second year of operation. 11

12.  PRODUCTS AND SERVICE : The product and service of this project is in
shape with the health sector of Sierra Leone. The herbal medicines and
expert service on the table below would match mainstream treatment and
standards. Comparatively unlike the expensive malaria treatment which is
painful like in the case of drip and injection, difficult for the underprivileged to
afford, the Afro-Meds brands are soluble which is easy and painless for
consumption for belonephobias (fear of niddle), and more effective and
affordable
Product/Service Description Price
Afro-gbangba This is research and
redeveloped malaria
drug. It would be a
powdered form in a
sachet to mix with a Littre
of water for consumption.
$ 0.25
Consultancy Giving expert projection
and information on
traditional medicine and
herbs
$50
12

13. ORGANIZATIONAL BREAKDOWN
STRUCTURE OF THE COMPANY
Board
members
CEO
Lab manager
researchers
herbal and
orthodox
meds experts
marketing
manager
operation
manager
13

14. FINANCE
INCOMES FROM THE PROJECT
IMPLEMENTATION
Year 2015 2016 2017 2018 2019
Carrying
capacity
Price per unit
0.25
1320000 1430000 1540000 1540000
Total income $ 330,000 357,500 385,000 385,000
14

15. YEAR 2015 2016 2017 2018 2019
CASH
INFLOW
Incomes from the
project
implementation
(7.1)
330,000 357,500 385,000 385,000
Cash inflow 0 330,000 357,500 385,000 385,000
CASH OUTFLOW
Total investment
expense (7.2)
$131,000
Total operational
expenses (7.3)
$ 34600 $ 45300 $ 38,150 $ 38,500
Income tax (7.4) $ 49500 $ 53625 $ 57750 $ 57750
Cash Outflow $131,000 $84100 $98925 $95900 $96250
NET ANNUAL
CASH FLOWS
$
-131,000 245900 258575 289100 288750
15

16. NET PRESENT VALUE (NPV)
Discount rate 0.23 NPV 521344.02
Seed money 131,000
Year Cash inflow, $ Cash outflow,$ cash flow,$ Discount index Discount cash
flow,$
i Bi Ci CFi 1/(1+r)i
0 0 131000 -131000 1.000 -131000.00
1 330,000 84100 245900 0.813 199918.70
2 357,500 98925 258575 0.661 170913.48
3 385,000 95900 289100 0.537 155357.69
4 385,000 96250 288750 0.437 126154.15
Total 521344.02
16

17. INTERNAL RATE OF RETURN (IRR)
Discount rate 1.91 NPV 0.16 IRR 190.70
Seed money 131,000
Year Cash inflow, $ Cash outflow,$ cash flow,$ Discount index Discount cash
flow,$
i Bi Ci CFi 1/(1+r)i
0 0 131000 -131000 1.000 -131000.00
1 330,000 84100 245900 0.344 84589.51
2 357,500 98925 258575 0.118 30598.66
3 385,000 95900 289100 0.041 11768.52
4 385,000 96250 288750 0.014 4043.47
Total 0.16
17

18. DISCOUNTED PAYBACK PERIOD
Discount rate 0.23 DPP 2nd year
Seed money 131000
Year Cash
inflow, $
Cash
outflow,$
cash flow,$ Discount
index
Discount
cash flow,$
Cumulative
discount CF
with the
debts in
i Bi Ci CFi 1/(1+r)i
0 0 131000 -131000 1.000 -131000.00 -131000
1 330,000 84100 245900 0.813 199918.70 68918.70
2 357,500 98925 258575 0.661 170913.48 239832.18
3 385,000 95900 289100 0.537 155357.69 395189.87
4 385,000 96250 288750 0.437 126154.15 521344.02
Total 521344.02
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19. RISK MANAGEMENT
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20. Category Risk Likelihood Impact Strategy
Environmental Deforestation Unlikely High deforestation
campaign and partake
in tree plant and
preservation of the
forest
Technical Clinical accident Likely Medium, Quality control,
monitoring and
effective
management
External counterfeit Likely, low unique package with
barcode that would
easily differentiate it
from counterfeit
Project management Approval of the
project
Unlikely High, All documents and
governmental
policies would be met
with, and respected
by the project
management
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