Strategic business plan

BUSINESS STRATEGIC PLAN
Develop a Strategic Business Plan for a New Venture
Start-up companies are more important in bringing products and services to market. In response to
new technology, new and innovative businesses are taking over the markets of those older
companies too slow to move with changing customer demands. Following this line of thought, for
this task you are an administrative officer at the corporate level of an offshore organization and,
you are assigned to develop a strategic business plan for a new venture in a sector of your
choice. This Strategic Management Process should contain whatever is necessary to start-up a
company from scratch, including the new company’s philosophy, mission, objectives, strategies
and tactics, CSR, an analysis of the firm’s internal and external environment, organizational
structure, leadership and, an one-page financial report justifying the firm’s survival for at least a
year. You should justify your choices in terms of the chosen industry/sector on the grounds of
innovation, competitive advantage and, company’s sustained growth and survival. Your budged is
£150,000 (BP).
Hypothetical Business Strategic Plan
Strategic Business Plan for a New Venture
Daniel Kangwa
University of Nicosia
Corporate Strategy

Business Strategic Plan 2
Executive Summary
The main purpose of this report was to discuss various factors involved in the launching of a new
business venture, which is basically a medical application for smartphone users, namely, the
“Dr.App”. It is such an innovation of the 21st
century, which will help and assist the patients in
many aspects. The introduction of this application is basically to provide care and health facility
to people of all ages with any kind of disease. Before the development of Dr.App, patients used to
face several kind of problems related to appointments with the doctor, but now they can simply
visit our application and book the appointment with doctor according to their disease or illness.
With the application of this app, it is anticipated that it will improve the overall healthcare
outcomes in the society. Furthermore, the business will prosper with appropriate and concrete
decision making strategies which have been discussed in the paper.

Table of Contents
Executive Summary........................................................................................................................ 2
Introduction..................................................................................................................................... 5
Introduction to Start-up Venture..................................................................................................... 5
Company Mission........................................................................................................................... 6
Policies that Empower Action ........................................................................................................ 7
Management by Objectives............................................................................................................. 8
Long Term Objectives ............................................................................................................ 8
Competitive Position....................................................................................................... 8
Technological Leadership............................................................................................... 9
Customer services ........................................................................................................... 9
Profitability ..................................................................................................................... 9
Return on Investment...................................................................................................... 9
Short-Term Objectives............................................................................................................ 9
Internal Analysis ........................................................................................................................... 10
SWOT Analysis .................................................................................................................... 10
Strength......................................................................................................................... 11
Weakness ...................................................................................................................... 11
Opportunities................................................................................................................. 11
Threats........................................................................................................................... 12
External Analysis.......................................................................................................................... 12
PEST Analysis ...................................................................................................................... 12
Political Factor.............................................................................................................. 13
Economic Factor ........................................................................................................... 13
Social Factor ................................................................................................................. 14
Technological Factor .................................................................................................... 14
Available Opportunities for the Business ..................................................................................... 15
Generic and Grand Strategies ....................................................................................................... 15
Generic Strategy.................................................................................................................... 15

Analysis of Generic Strategies...................................................................................... 16
Grand Strategy ...................................................................................................................... 17
Analysis of Grand Strategies ........................................................................................ 18
Functional Tactics......................................................................................................................... 19
Strategic Control and Continuous Improvement .......................................................................... 20
Financial Plan................................................................................................................................ 21
Start-up Budget ..................................................................................................................... 22
Income statement .................................................................................................................. 22
Balance sheet ........................................................................................................................ 22
Cash Inflows & Outflows ..................................................................................................... 23
Conclusion .................................................................................................................................... 23
References..................................................................................................................................... 25
Appendix....................................................................................................................................... 28
Start-up Budget ..................................................................................................................... 28
Income statement .................................................................................................................. 29
Balance sheet ........................................................................................................................ 30
Cash Flow statement............................................................................................................. 31

Strategic Business Plan for a New Venture
Introduction
This report provides an in-depth analysis of the new venture being launched with the name
of “Dr.App”. This report entails the strategic management and planning strategies for the launch
of this new innovative venture to be successful. The main idea of initiating, evolving and executing
the application for patients and healthcare is going to be discussed. How the idea of introducing a
medical application was generated, what are the reasons behind launching it and what are the
consequences to it are the major areas of this discussion. Furthermore, it is understood that, in the
contemporary world, each day new and innovative developments are taking place. Similarly, in
the medical field, the development of such an innovative, unique and unique concept was
becoming an essential. “Dr.App” will help, aid and assist the patients in booking appointments
through smartphone applications.
Introduction to Start-up Venture
In recent times, the complexities and convolutions in the healthcare system has increased
immensely. Patients require an incredible and inconceivable array of healthcare. The main idea of
launching this business application “Dr.App” is to facilitate and assist the patients especially those
with chronic disease, as they are unable to perform difficult activities and tasks. Although the app
store has been featuring numerous health apps, but their uptake for healthcare has remained
sporadic and patchy (Groves, et al, 2016). We are introducing Dr.App in an effort to provide the
best quality app.

Lately, the scale of development in the field of technology has raised rapidly which has
changed the way of life in many aspects. Technological advancement such as the Dr.App will
internationally transform the structure of healthcare facilitation. In the coming future, this app will
have a great impact on the overall efficiency of care (Charani, Sánchez, Moore & Holmes, 2014).
It is a very sophisticated app produced which will help patient in many medical procedure which
were once problematic and difficult. Through this app, the patients will be able to book
appointments of specialists of the field of medical, which will then assist them according to their
disease.
The purpose of choosing and initiating this business venture is to ease and facilitate the
patients according to the needs and requirements. In most of the medical procedure, it takes a lot
of time to have an appointment for specialists. Through this application, we are going to help the
patients and will serve the needs of the community. In the field of medical sciences, this is a unique
and innovative idea, as it will connect the patients with doctors directly without going through any
difficulty. This is a very efficient and proficient application, in which the list of doctors will be
listed with their availability (Charani, et al, 2014).
Company Mission
Dr.App’s mission is to provide such medical assistance which will exceed the expectations
of the user. Promoting the well-being and health of the local inhabitants is our number one priority.
Providing the individuals and patients with the highest quality and accessible and easily reached
medical services and facilities. This application has will provide services which includes the care
of patient, educating the patients regarding their preventative care and other services which will
result in better performance and profitably successful business (Taylor, McNicholas, Nicolay,

Darzi, Bell & Reed, 2013). Dr.App is a concept which promotes the idea of providing best
healthcare facility with preeminent services as it will lead to a more successful, prosperous and
cost-effective business.
Policies that Empower Action
In order to achieve and attain success in a highly competitive market, the most essential
element factor, which needs to be tailed consistently and religiously, is the making of fast and swift
strategy. Decision making power is another major area which needs to be processed proficiently.
Keeping these factors in mind, we have established concrete business strategies, such as growth
strategy, product Differentiation strategy and focus. In order to ensure the success of Dr.App
(Taylor, et al, 2013).
Growth strategy basically involves the introduction of inventive and innovative product in
the market. In this regard, the Dr.App is a completely new and unique business idea, which will
help the patient connect with clinicians and specialists within no time. Patients or users will simply
download the “Dr.App” application on their smartphones and no charges will be applied on it.
However, there will be booking charges for each appointment which will vary doctor to doctor.
The minimum charges for the booking of the appointment whatsoever will be 5$.
Furthermore, this application is will also assist the patients through its unique and different
features. For example, we have planned to list the number of doctors available with their timings
and availability. The patients will be allowed to read the profile of specialists and the reviews
accordingly. After consulting and discussing the disease with the doctor, patients will then be
required to pay the bills online. Basically, Dr.App is such an application which can be considered
as highly cost effective, as it will not only safe time but money too (Groves, et al, 2016). The

policy is principally to focus on the objective of providing the highest quality healthcare facilities
to the individuals of our society while maintaining and sustaining the growth of our business. This
is an utterly new idea in the global market which emphasizes on providing the healthcare needs to
the population with business escalation.
Management by Objectives
Management by Objective is a business strategy introduced by Peter Drucker (2014) for
setting goals and their implementations in the organization. These objectives are short term and
long term. Dr. App is focusing on both the objectives and they are discussed below:
Long Term Objectives
Long term objectives can be defined as goals that have a life of more than one year. These
objectives are prepared by using mission statement. Dr. App’s mission is to provide a better
platform to the patients where they could have solutions to their problems in less accessible time.
The long term objectives of Dr. App includes annual profitability, return on investment,
competitive position, technological leadership, productivity and customer services.
Competitive Position
A team of best mobile application developers will be there to develop and assist the
business. Dr. App. is designed in a way that it provides maximum satisfaction and is user friendly.
There will be no fee charges for downloading the app. Proper forms are available for the
appointment and will automatically arrange timings for the appointment. In case of emergency,
special services are programmed.

Technological Leadership
Application is featured with interactive content layers and design pattern. Application
Performance Management (APM) will also be assisting Dr. App. Testing and quality assurance
will be improved.
Customer services
Dr. App is providing its customer the best services the one can only imagine to have. Now
the patients do not have to wait in long queues for their turn. Appointment slots will be available
and the customers have to select the slot they wanted to have.
Profitability
The business will be in a profitable situation as it will be having 22% in the first year, 30
% in second year and 38 % in third year.
Return on Investment
Investment is giving efficient return as the business is earning good profit.
Short-Term Objectives
Dr. App. presents a wealthy solution to all the people willing to book an appointment. For
this reason, the company is hopeful to gain high outcomes and excellent results in the short term.
Dr. App. has an objective to create maximum brand awareness and identification under its short
term objectives. The business aims to adapt intensive marketing in order to gain maximum reach
to the target audience and attract customers. Adding to this, with informative advertising, Dr. App.

aims to create awareness amongst its target audience, with details of the services provided and
information on downloading the application. Dr. App. also plans on keeping the costs as low as
possible to gain competitive advantage. Moreover, Dr. App. aims to establish a strong connection
with hospitals and medical service providers while expanding its scale of operations in order to
have a larger customer base. Having the advantage of an innovation, Dr. App. aims to achieve at
least the break-even point within months of its operations and then increase its profits, both in the
short run. Management of Dr. App. aims to cater all its customers and build strong relationship
with them by providing full assistance.
Internal Analysis
The mobile applications development is a prodigious way to create increase business
opportunities and it is valued by improving productivity, increase sales and traffic and generate
brand awareness. It is essential to understand the environment within which a business has to
operate. To run an Information Technology business unit successfully environmental factor’s
influence plays an important role (Zakić, Jovanović, & Stamatović, 2008).
The internal analysis of Dr. App will help to identify and evaluate its specific characteristic
including resources, capabilities and core competences of this company. SWOT tools is used to
analyze the internal factors of this company.
SWOT Analysis
To analyze the internal factors of Dr. App SWOT analysis was conducted and following
results have been derived:

Strength
The core strength of Dr. App lies in the power of its team; the workforce. A team of young
and dynamic IT professionals that are innovative and highly skilful in mobile apps design and
development sector (Lee & Raghu, 2014). Dr. App is ready to take full advantage of this
opportunity and wanted to offer a low cost user friendly application. The company will select such
a team of developers and programmers that will be unique and diverse.
Weakness
Since Dr. App is an innovative mobile application development company in United
Kindgom. The company believes that it might take some time for the organization to break into
the market especially to generate awareness among the people about how to book appointments
online. However, the limited amount of capital 150,000 that has been provide to the company is
its major weakness.
Opportunities
Due to the development of mobile application, people are now connected through cellular
technologies and mobile phones usage has increased worldwide at a growing pace. Dr. App
presents unparalleled opportunity to increase efficiency and to reduce costs in the healthcare
sector. This application will provide an opportunity to its user both to the doctors and to the patients
to access systematic data online. It will help to increase patient flow and suggests innovative ways
to retain online users. Generate automatic feedback and surveys.

Threats
It is inevitable for a business not to face threats or challenges during its life cycle. These
threats could be external or internal. The importance of a comprehensive business plan is to combat
the threats or challenges that might affect the business. The threats that Dr. App would likely to
face as an innovative mobile application development company based in United Kingdom would
be unfavorable government policies, imposed taxes and regulations on IT sector. Another threat
would be the global economic recession that usually effects on the purchasing or spending power
of the user. The company believes that there is hardly anything that can be done in this regards,
however, these threats can be optimistically cater as the company progresses in future.
External Analysis
External Environmental Factors play an important role in taking business the business to
the top or to the bottom. Dr. App will be the next wireless communication in United Kingdom that
will support the efficiency in public health and clinical practices in United Kingdom. To facilitate
this mobile application the company has developed a platform i.e. a web-based and free download
application based software that will help be the helping hands of the society. To analyze the SWOT
for Dr. App mobile application the company has used PEST analysis method.
PEST Analysis
PEST analysis i.e. political, economic, social and technological provides a basic outline to
access micro-environmental factors used in the environmental scanning of strategic management.
While conducting a marketing research or a strategic analysis PEST provides an overview of the
certain macro-environmental factors that are taken into consideration. This strategic tool is used

to develop an understanding of the market growth or decline, potential or directs for operations
and business positions (Buzan, Griffiths, & Harrison, 2014). PEST enhances the legal and
environmental factors and it is a most popular method of analysis in United Kingdom. The PEST
includes the following framework:
Political Factor
Political Influences are considered to be very important for a business as these influences
are having positive and negative effect. The political factor is basically to analyze governmental
interruption in the economy. It includes tax policies, tax policies, labor laws, trade restrictions,
environmental laws and political stability. Through this the government aims to provide goods and
services to the people. Furthermore, the political factor has a high impact on the health sector in
United Kingdom. The regulations posed on the mobile applications in the United Kingdom by
FDA has generate concerns among the developers and has affected the market. The business will
focus on these influences and will consider the political situation of the United Kingdom. For this,
policies have been designed which will direct the business to work in a good direction. Moreover,
Government factors play an important role in the establishment of a business as it imposes different
taxes. This business will pay all the taxes and will be registered by fulfilling all the legal
documents.
Economic Factor
The economic factors analyze includes the economic growth, exchange rates, inflation rate,
and exchange rates of an organization. Such factors have greatly affected business operations and
decisions. The economic factor is an uncontrolled factor that affect the growth and opportunity of

a business. The IT sector is considered to be the most promising sector in the world today. The
business will consider the economic factor and the business is very unique and will definitely give
rise to the economy. The business is offering unique services at low cost and in this way inflation
will not harm the economy. Therefore, this mobile application will be beneficial for the changing
economic trends of United Kingdom. It will boost the economy and will generate employment.
Social Factor
Social factors are also considered by the business as the app is according to the latest
technology and not harming the social environment. App is designed to facilitate the patients which
is a positively contributing to the society. The social factor affects the demand of supply of a high
growth product supply in the market. Dr. App believes that due to the innovate services that it will
provide to its user may change numerous management strategies to adapt to social trends in future.
Technological Factor
The technological factor includes the technological activities of a company. Such as the
research and development activity, automations, technology inducements and the rate of change
of technological changes. These factors can determine the barriers to entry in the market, the
minimum efficient production level and the impact to outsourcing decisions. Technology plays an
important role to enhance the business. Technology used in developing app is considered in a way
that is meeting the requirement of the customers. Target audience is considered properly.
Moreover, technological shifts affects the costs and quality of a business. Dr. App is an innovative
application specifically designed to influence the masses. The company believes that the
technological factor will lead to improvement of the organization in future.

Available Opportunities for the Business
This is the era of technology and people used to prefer the usage of available technologies
that will make their lives easier and easier. Dr. App is coming up with unique idea. Dr. App is the
application that is providing a unique services to the customers. The app is designed by keeping
the target audience in the mind. Great opportunities are available for the business to get flourished.
No direct competitor’s area available in the market. Indirect competitors are available but the app
is having unique features which will be effective enough to attract large number of customers.
This kind of application will be strongly liked by the targeted audience creating new opportunities
for the business.
Generic and Grand Strategies
Generic Strategy
Generic strategy is a basic approach towards strategic planning. In 1980, Michael Porter
developed three generic strategies that any company, in any industry could use to gain competitive
advantage (Magretta, 2013). These strategies include: Differentiation, competitive advantage (cost
leadership), and focus. Dr. App. will follow and implement a balanced combination of Porter’s
generic strategies. The product is innovative and is definitely different from the ways in which
patients used to book appointments. It provides a solution of a very common problem and is likely
to be used by huge masses after the intensive and informative advertising which will cater its long-
term goals. Secondly, this new business will try to keep costs as low as possible in order to have a
larger profit margin. Being an innovative product, there will not be a need to keep prices very low.
Higher profit margins will generate enough cash for the business which could be used for several

purposes. Lastly, Dr. App. will focus in this industry and by creating extensive brand identification
and brand loyalty, Dr. App. tends to be the only provider of this service in the long run by providing
quality services to its users.
Analysis of Generic Strategies
Strategic planning analysis refers to the process in which organizational leaders do the
analysis of the set goals considering vision of the business. Strategies set by the business
developers are analyzed in order to check whether the set strategies are beneficial or not. Dr. App
is using Michael Porter’s generic strategies model. The model contains three important strategies
which would help Dr. App in achieving its strategic goals. Figure: 01 is showing the model of the
model of Michael Porter’s generic strategies. These strategies with their analysis are discussed
below:
Fig: 01 Model of Michael Porter’s Generic Strategies
Dr. App is entering into industry with the low cost. Total investment is (150,000 GBP) and
the projected profit will be 22 % for the first year, 30 % for the second year and 38 % for the third
year. The continuous growth is there with this much investment which is a good sign for the set
strategy. Differentiation strategy will be used. The strategy will support the business as it is

offering unique services to the customers with high quality and low prices. Dr. App will also
provide services in case of emergency, which is making it different from the others. The focus
strategy will also provide a great assistance to the business as the main focus is to provide better
application to our target audience. The focus is divided on the business as well as on the customers.
Implementing these strategies, Dr. App will be having a competitive edge.
Grand Strategy
Grand strategies are the major long-term strategies that defines the course of the business
(Grant, 2016). These include everything from the development of the product till its withdrawal.
Dr. App is using Grand strategy Matrix. First and the primary grand strategy of Dr. App. is general
growth. Growth, not just in profits and sales, but in customers. Growth in the product range and
growth of the business as a whole. Dr. App. will always be willing to avail any profitable and
beneficial opportunities of expansion, either via merger or takeover. Moreover, Dr. App. tends to
diversify in future by creating more and innovative products to enhance and develop its product
range and maximize satisfied and loyal customers. A large product range will reduce the
dependency of this venture on just one product and give it a balanced and stable income while,
increasing market share. Dr. App. aims to achieve operational excellence by producing on lowest
costs and producing easily accessible products to provide customer assistance. Dr. App. believes
in customer intimacy; it will keep maximum knowledge of the current needs and requirements of
the consumers. While, through continuous improvement and its knowledge, Dr. App. will also
cater the future needs of its customers. Furthermore, a continuous improvement is also a part of
the grand strategy of this venture. Dr. App. tends to keep on improving its products and services
by investing in research and development in order to have a good brand image and customer

loyalty. Over the years, if Dr. App. starts to experience a saturation or decline in sells, retrenchment
and downsizing techniques shall be used to revert back while keeping the overall profit balanced
with contribution of other products in the product range of this venture. Lastly, due to technological
changes, if Dr. App. falls into a constant loss, it will then be liquidated and replaced by another
advanced product while maintaining the lead.
Analysis of Grand Strategies
Grand Strategies are the strategies that provide a shape to the core functions of the business.
Long term plans are chosen from the available alternatives. Dr. App will be using the Grand
strategic Matrix. It is a tool used to devise alternative strategies. Suitable strategies that are used
in this Matrix are: market development, market penetration, product development, forward
integration, backward integration, horizontal integration and concentric diversification.

Figure: 02 Model of Grand Strategy Matrix
It has four quadrants and different above mentioned strategies are used in this matrix. The
business is using this matrix. Product is a mobile phone application. For the development of the
product, new features have been introduced and further will be added as the technology is changing
day by day. For its development proper marketing of the product will be done. The business will
use both the media electronic and print media. For market penetration low prices are charged. Dr.
App will expand the business by using backward integration. For this the business will open a
hospital and appointments will be arranged by using the app. This will be putting the business in
the first quadrant where the business will be in a strong position.
Functional Tactics
First of all, in order to achieve the short term objectives, skillful managers will be hired by
the company as manager’s communication with the employees will play a vital role in getting
strategies smoothly implemented and get good results. According the budget, marketing
campaigns will be designed in an efficient way in order to reach the maximum target audience.
Intensive marketing and informative advertising will mean that campaigns will be done using
multiple mediums at the same time, depending on the budget. Use of social media could also be
done by the marketing department in order to create further brand awareness.
Additionally, marketing department may also consult with hospitals and sign contracts with
them to outsource their appointment booking system which will then be done by Dr. App.
Moreover, by using the automated process and technical equipment, costs will be kept low to
increase the profit margins. Customer Relationship Management (CRM) will play a crucial role in
retaining existing customers and creating brand loyalty by being available on the help line all the

time for assistance and solving unexpected and daily issues. Combination of strategies and efforts
from all the departments of the company will help Dr. App. achieve its short and long term goals.
Strategic Control and Continuous Improvement
Strategic control and continuous improvement are the strategies which are identified to
devise the control systems of strategies (Han, Hou, Yang, Wu, Su, & Guerrero, 2016). The
strategic control system of the company helps it to identify and work its way towards the long-
term strategic goals. It covers all the aspects of business controls such as premise controls, strategic
surveillance, implementation and alert controls. The strategic control is devised by the top
management of the company to evaluate the progress of the strategies implemented in a timely
manner (Hill, Jones & Schilling, 2014). The strategic control also assists the top management to
identify the issues and based on these issues top management can devise the necessary resolutions
which can assist them in the speeding up the strategic implementation.
The two major strategies identified by the Dr. App are generic strategy and grand strategy.
Both of these strategies will be incorporated in the business to increase the growth and identify the
long term goals and objectives of the company. These strategies will be implemented in the venture
in the initial phase, but eventual improvements will be incorporated in the strategies to keep up
with the pace of market.
Strategic controls, as discussed, will allow the top management of the company to identify
various ways of implementation of the strategies in its initial phases. The management of Dr. App
will be responsible for the identification of the premise control, as this control will help them to
keep a track on the assumptions, changes in assumptions and the impact of change on the
organizational goals. The corporate planning staff will be responsible for gauging these changes.

The management of this company will also manage the resource allocation and also to keep a
check on the completion of the application development (Mustafa, Nazir, Hayat, & Madani, 2015).
Surveillance of application development is also necessary for the goodwill of business to identify
the expected timeframe in which it can be launched for public. This surveillance will be a
responsibility of development and designing team. The implementation control and strategic
surveillance are major controlling factors of strategic controls because if the application
development is not complete within the given time premise, than the company might face
significant loss in the business.
The strategic controls of the business also assist in the continuous improvement (Hill, et
al., 2014). The continuous improvement implies that a company must keep improving the product
or service which is being offered to the customers. Dr. App is an application which is available for
the patients through app stores of smartphones. This organization will keep updating itself by
making improvements in the app. Feedbacks and suggestions by the customers in this regard will
be helpful for them as Dr. App can plan accordingly to bring the changes in the app.
All in all, it can be suggested that the strategies of costing, leadership and competitive
advantage can help the company in a positive way. The control on these strategies can help in
growth of the company not only sales wise but also customer wise. And furthermore, the long-
term objectives and short term objectives can be achieved by the company.
Financial Plan
A financial plan is comprehensive technique in which the budget allocation, future
expenses, cash flows and projected profit and loss statement is discussed. In the financial plan of

Dr. App, we have closely defined the start-up budget, income statement, balance statement and
cash flows for the years of 2017-2019 consecutively.
Start-up Budget
The budget defined for developing Dr. App is £150,000. Since it is a new startup the
financials of the business need to be well-defined for allocating the resources to the optimum level.
The allocated budgeting for the venture is only done for the year 1 (2017). The detailed allocation
is available in appendix A.
Income statement
Income statement is also known as the profit and loss statement. This income statement
shows the projected revenue in the year 2017, 2018 and 2019 respectively. The sales growth shows
that it is increasing gradually. The year 2017 shows a standard growth of GBP 180000, while year
2018 shows 20% growth and year 2019 shows 30% growth. The expenses in the income statement
shows marketing, equipment, maintenance, rent, supplies, training and research costs. The income
tax expense is calculated as the 20% of the net income before taxes. The projected net income of
the year 2017, 2018 & 2019 are GBP 40800, 65600 & 108640.
Balance sheet
The projected balance sheet of Dr. App shows that the assets are equal to the liabilities.
The current assets shown in the balance sheet is the cash amount which will be utilized by the
company. The fixed assets comprises of the long term investments in supplies, furniture,
equipment and the software related (Intangible) assets. The current liabilities show income tax

liability as a major liability. Owner’s equity exhibits the amount of money invested by the owner
in the business. The balance sheet shows that the company is going into profits.
Cash Inflows & Outflows
The projected cash flow statements of the Dr. App show a comprehensive detail of cash
inflows and outflows. The cash flow statement is projected for the year 2017, 2018 and 2019. The
cash flow which is received from the operations of the company in the initial year shows the least
growth i.e. GBP 261600 while in the coming years of 2018 and 2019, it shows noticeable growth
i.e. GBP 313920 and 408096 respectively. The cash flows also identifies that the investment in the
long term assets will increase in the following years. Hence, the financial plan shows that the
company will show growth in the future years.
Conclusion
To put it in brief, in the contemporary world, new and innovative applications are being
initiated (Taylor, et al, 2013), keeping in mind the needs and requirement of the population. Dr.App
is a unique idea, which focuses on the development of such an application that will help the patients
and users to easily book the appointments with doctors, which was once a very problematic issue
and concern. This plan can only be achieved, if all the departments and units will work with
coordination. The implementation of concrete planning and strategies as mentioned earlier in this
discussion is very important (Charani, et al, 2014). Check and balance of each and every doctor
before assigning them to the patient will be done, so as to ensure the healthcare factor. In order to
satisfy our users or patients, proper mechanism will be followed in order to maintain the academic

record of each doctor from respective government departments. If the intended plan is properly
implemented then this business will progress and excel.

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Appendix
Start-up Budget
Start-Up Costs
Items Cost
Rent 5,000.00
Equipment and Tools 10,000.00
Furniture, fixtures, display cases 5,000.00
Application development 40,000.00
Research and development 10,000.00
Installation fees (equipment, phones, etc.) 2,000.00
Licenses and permits 3,000.00
Legal fees 2,000.00
Business insurance 1,000.00
Supplies (office supplies, postage, etc.) 3,000.00
Marketing materials 11,000.00
Marketing campaign 21,000.00
Training cost 30,000.00
Miscellaneous 7,000.00
TOTAL £ 150,000.00

Income statement
Income statement
Revenue 2017 2018 2019
Sales revenue 180,000 216,000 280,800
Total Revenues 180,000 216,000 280,800
Expenses
Marketing & Advertising 21,000.00 19,000 15,000
Furniture and equipment 15,000 - -
Insurance 1,000 1,000 1,000
Maintenance and repairs - 5,000 5,000
Office supplies 3,000 3,000 3,000
Rent 5,000 5,000 5,000
Training cost 30,000 40,000 50,000
Salaries and wages 40,000 42,000 45,000
Utilities 5,000 10,000 12,000
Web hosting and domains 2,000 2,000 2,000
Other 7,000 7,000 7,000
Total Expenses 129,000 134,000 145,000
Net Income Before Taxes 51,000 82,000 135,800
Income tax expense (20%) 10,200 16,400 27,160
Net Income 40,800 65,600 108,640

Balance sheet
Balance Sheet
Assets 2017 2018 2019
Current Assets
Cash 81,600 97,920 127,296
Total Current assets 81,600 97,920 127,296
Fixed (Long-Term) Assets
office supplies 3,000 3,000 3,000
Furniture, fixtures, display cases 5,000 5,000 5,000
equipment 10,000 10,000 10,000
Intangible assets 60,600 80,480 76,864
Total fixed assets 78,600 98,480 94,864
Total Assets 160,200 196,400 222,160
Liabilities and Owner's Equity
Current Liabilities
Income taxes payable 10,200 16,400 27,160
Total liabilities 10,200 16,400 27,160
Owner's Equity
Owner's investment
Total owner's equity 150,000 180,000 195,000
Total Liabilities and Owner's Equity 160,200 196,400 222,160
{42} {42}
Profit Margin = Net Income / Net Sales (revenue) 0.226666667 0.303703704 0.386894587
ROCE = Earnings Before Interest and Tax (EBIT) /
Capital Employed
0.34 0.455555556 0.696410256

Cash Flow statement
Cash flow statements
2017 2018 2019
Cash received 81,600 97,920 127,296
Cash from operations
Cash sales 180,000 216,000 280,800
Subtotal cash from operations 261,600 313,920 408,096
Expenditures from operations
Cash spending 150,000 180,000 195,000
Bill payments 5,000 10,000 12,000
Subtotal spent on operations 155,000 190,000 207,000
Long-term assets 160200 196400 222160
subtotal cash spent (5,200) (6,400) (15,160)
Net cash flow 411,400 497,520 599,936
Cash Balance

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