Business Plan: Health Monitoring System


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Business Plan: Health Monitoring System

  1. 1. Business Plan for Multifunctional Health Monitoring Systems Vivek Singhwal Participant (3 rd batch) NirmaLabs
  2. 2. Outline <ul><li>Executive Summary </li></ul><ul><li>The Product </li></ul><ul><li>Market </li></ul><ul><li>Competition </li></ul><ul><li>Cost and selling price </li></ul><ul><li>Marketing & Sales </li></ul><ul><li>Core Team </li></ul><ul><li>Organization Structure </li></ul><ul><li>Financial </li></ul><ul><li>Risks </li></ul><ul><li>Incubation Proposal </li></ul>
  3. 3. Executive Summary <ul><li>The business plan is to establish a company for design and manufacturing multifunctional health monitoring systems. </li></ul><ul><li>The multifunctional health monitoring system would be an electro medical system that can measure: </li></ul><ul><li>height, weight, Body Mass Index (BMI), blood pressure, pulse rate, body fat percentage, and body fat mass. </li></ul><ul><li>It would be a valuable gadget for: </li></ul><ul><li>health centers, fitness clubs, gymnasium, schools, IT companies, hospitals, pediatricians, clinics, hotels and malls. </li></ul><ul><li>Similar systems are already available in western countries and such imported systems price around Rs. 4,50,000 in India, therefore having smaller market; if we could manufacture such a system in about Rs. 30,000 then we can have large market. </li></ul>
  4. 4. Executive Summary Project cost Projected Gross Sales and Profit in three years 11,888,064 4,65,61,000 1168 3rd 27,71,954 1,92,19,000 482 2nd (2,42,610) 42,74,000 107 1st Profit (Loss) in Rs. Gross Sales (Rs.) Number of units sold Year 35,93,500 Total cost 25,00,000 Start-up cost Rs. 10,93,500 Incubation cost (15 months)
  5. 5. The Product <ul><li>Multifunctional Health Monitoring System </li></ul><ul><li>A user-friendly, ultra modern system from which can measure </li></ul><ul><li>Height </li></ul><ul><li>Weight </li></ul><ul><li>Body Mass Index (BMI) </li></ul><ul><li>Blood Pressure </li></ul><ul><li>Pulse rate </li></ul><ul><li>Body Fat Percentage </li></ul><ul><li>Body Fat Mass </li></ul>
  6. 6. The Product (Picture)
  7. 7. The Product <ul><li>Key Features </li></ul><ul><li>User Friendly </li></ul><ul><li>On-Screen Display </li></ul><ul><li>Managing old record </li></ul><ul><li>Coin Operated Model </li></ul><ul><li>Weighs up to 200 kg with accuracy of 0.1 kg </li></ul><ul><li>Height measured by ultrasonic sensor from 0 to 7.0 ft with accuracy of 0.1 inch. </li></ul><ul><li>Detailed printout </li></ul>
  8. 8. The Product <ul><li>Detailed printout (Davi Y CiA): </li></ul>
  9. 9. The Product (Technology involved) <ul><li>Height Measurement: </li></ul><ul><li>Technology: Ultrasonic sensor </li></ul><ul><li>Measurement: By time interval between the sound pulse is transmitted to the echo is received. </li></ul>
  10. 10. The Product (Technology involved) <ul><li>Weight Measurement: </li></ul><ul><li>Technology: Strain-gauge load cells </li></ul><ul><li>Measurement: It convert the load acting on them into electrical signals and we will use micro-controller to program this voltage output. </li></ul>
  11. 11. The Product (Technology involved) <ul><li>Body Mass Index (BMI): </li></ul><ul><li>A statistical measure of the weight of a person scaled according to height. BMI is a better indicator of health risk than absolute body weight and a useful screening tool to access malnutrition and fatness. </li></ul><ul><li>As a rough guideline for adults a BMI of less than 20 implies underweight, over 25 is overweight, and over 30 is obese. </li></ul>
  12. 12. The Product (Technology involved) BMI = 28 BMI Does Not Measure Body Fat
  13. 13. The Product (Technology involved) <ul><li>Body Fat Index (Body Fat Percentage): </li></ul><ul><li>It is simply the percentage of fat your body contains. </li></ul><ul><li>body fat mass +   lean body mass = total mass (body weight) </li></ul><ul><li>Technology: Bio-impedance technique </li></ul><ul><li>Measurement: The change in electrical resistance in body tissues by using a detectable electrical signal that is passed through the body. </li></ul>
  14. 14. The Product (Technology involved) Omron HBF-306 Body Fat Analyzer Cost $30 (around Rs. 1500)
  15. 15. The Product (Technology involved) <ul><li>Blood Pressure: </li></ul><ul><li>Technology: Oscilometric Method </li></ul><ul><li>Measurement: An air-filled cuff is wrapped around the patient's wrist. As the cuff is allowed to deflate, pressure data is recorded by the device. Devices measure the mean systolic and diastolic. </li></ul>
  16. 16. The Product (Technology involved) Omron Wrist Blood Pressure Monitor Costs $33 (around Rs. 1500)
  17. 17. The Product (Technology involved) <ul><li>Software Technology involved: </li></ul><ul><li>Data-management </li></ul><ul><li>Profiling (individual level and company level) </li></ul><ul><li>GUI Development (web based) </li></ul><ul><li>Internet enabled + USB drive enabled systems </li></ul><ul><li>Barcode reader or biometrics identification </li></ul>
  18. 18. Market <ul><ul><li>India’s population is more than 1.08 billion and still growing. </li></ul></ul><ul><ul><li>Growing India’s middle class </li></ul></ul><ul><ul><li>Increasing awareness of health and fitness in India </li></ul></ul><ul><ul><li>Increasing number of health clubs and gyms </li></ul></ul><ul><ul><li>Exposure to television and internet has created a high level of consciousness about fitness. </li></ul></ul><ul><ul><li>The Government is also promoting healthy habits; recently CBSE has asked all its affiliated institutions to start health clubs as part of a newly framed comprehensive school health program. </li></ul></ul>
  19. 19. Market Source: Times of India, Friday, 7th July 06
  20. 20. Market
  21. 21. Market A copy of health record from medical Check-up file @ health center at Hiramani School.
  22. 22. Market Potential market <ul><li>High-class Schools, Residential Schools/ International Schools and Colleges / Academic Institutes </li></ul><ul><li>Software Companies, Call Centre / BPOs, and other corporate companies located in Hyderabad, Bangalore, Chennai., Pune, Delhi, Gurgaon, Noida, Mumbai, Kolkata, Coimbatore, Mysore. </li></ul><ul><li>High-Class Clubs (like Karnavati Club, Rajpat club, Pleasure club) </li></ul><ul><li>Health Clubs / Gymnasiums, fitness clubs like VLCC Centers, First fitness </li></ul><ul><li>Public place: Shopping Malls, Airports / Railway Stations, picnic place </li></ul><ul><li>Hotels /Resort, Cruise Ships. </li></ul><ul><li>Doctor Clinics, Dietitian, Pediatrician, Hospitals, Nursing Home and Physiotherapist </li></ul><ul><li>Defense / Police Academy </li></ul>
  23. 23. Market <ul><li>Initially, we will have two different models for targeting different market segment. </li></ul><ul><li>System-S (System for Schools) </li></ul><ul><li>System- HC (System for health clubs, shopping malls, hotels, hospitals, etc) </li></ul>
  24. 24. Competition <ul><li>Traditional measuring equipment </li></ul><ul><li>Indian firms currently importing such multifunctional </li></ul><ul><li>monitoring systems from Europe. </li></ul><ul><li>Few known companies manufacturing similar systems </li></ul><ul><li>in Europe are: </li></ul><ul><li>Davi & CIA, Spain </li></ul><ul><li>DPS-Promatic, Italy </li></ul><ul><li>Sokei, France </li></ul>
  25. 25. Competition <ul><li>Few known Indian companies importing such multifunctional health monitoring system from Europe are: </li></ul><ul><li>Delmerindia, Vadodara http:// (importing Systems from DPS-Promatic, Italy) </li></ul><ul><li>Alexandra Scales India, Ahmedabad </li></ul>
  26. 26. Competition
  27. 27. Competition
  28. 28. Cost and Selling price <ul><li>System-S (Bill of materials per unit): </li></ul>16,500 Total 1500 Misc. 12 1000 Packaging/forwarding cost 11 2400 Small printer 10 300 Network card 9 1500 Hard disk 8 3000 Outer casing 7 1200 Bioelectrical impedance device 6 1000 Ultrasound sensor 5 800 Load Cell 4 800 Power Supply 3 1000 LCD Display / Keypad 2 2000 Micro controller processor 1 Cost (in Rs.) Component S. No.
  29. 29. System-HC (Bill of materials per unit) Added  Added  19,350 Total 1500 Misc. 14 1000 Packaging/forwarding cost 13 1500 Coin Validator (optional) *12 2400 Small printer 11 300 Network card 10 1500 Hard disk 9 3000 Outer casing 8 1200 Bioelectrical impedance device 7 1350 Blood pressure equipment *6 1000 Ultrasound sensor 5 800 Load Cell 4 800 Power Supply 3 1000 LCD Display / Keypad 2 2000 Micro controller processor 1 Cost (in Rs.) Component S. No.
  30. 30. Cost and Selling price This price does not include taxes. The cost to the customer will include excise duty tax, VAT and Octroi which will be around 20 percent of this amount. 42,000 System-HC 2 37,000 System-S 1 Selling Price (in Rs.) Model S. No.
  31. 31. Marketing & Sales <ul><li>Primary targets: schools, High-class clubs, health clubs and IT and BPO companies. </li></ul><ul><li>Sales operation: started from Pune latter Bangalore and Mumbai. </li></ul><ul><li>In first year we would go for direct sales. </li></ul><ul><li>Commission (employees): Rs 3000 per unit sales </li></ul><ul><li>Two sales executives in every metro city or cities where we opt for direct sales. </li></ul><ul><li>We assume that schools will take 3 to 5 visits i.e. 2 to 3 months to confirm a sale, 2 to 3 visits incase of Gym or IT, BPO company. </li></ul>
  32. 32. Marketing & Sales <ul><li>In the second year we would expand rapidly to reach large customer base. </li></ul><ul><li>Dealership: In second year we would opt sales through dealers. </li></ul><ul><li>Commission ( to dealers) 15 percent commission to dealers. </li></ul><ul><li>We expect total sales of 482 units in second year covering 11 cities with the help of dealers and 18 Sales executives. </li></ul><ul><li>In the third year we projected sales of 1168 units covering more than 15 cities. </li></ul>
  33. 33. Marketing & Sales Sales Coverage during first year *new city added Pune, Bangalore, Mumbai IV Pune, Bangalore*, Mumbai* III Pune, II Pune I Cities under operations Quarter
  34. 34. Marketing & Sales Sales Coverage during Second year Chandigarh and Indore IV Kolkata and Coimbatore III Hyderabad and Chennai II Delhi and Ahmedabad I New cities added Quarter
  35. 35. Marketing & Sales 107  Total no. of units sold 4,274,000  INR   Total Expected Revenue 4,274,000 63 44 63 44 16 11 16 11 31 22 Total 17 9 6 3 6 3 5 3 12 12 9 4 3 4 3 4 3 11 2,563,000 39 25 10 7 3 2 3 2 4 3 10 IV 7 6 2 2 2 2 3 2 9 5 4 1 1 1 1 3 2 8 1,074,000 15 12 3 2 0 0 0 0 3 2 7 III 3 2         3 2 6 2 2         2 2 5 516,000 7 6 2 2         2 2 4 II 1 1         1 1 3 1 0         1 0 2 121,000 2 1 0 0         0 0 1 I   HC S HC S HC S HC S HC S Direct Selling Direct Selling Direct Selling 2 Sales Exec 2 Sales Exec. 2 Sales Exec. Total Revenue per Quarter (In Rs.) Total (per quart) Total (per quart) Total (per month) Total (per month) Mumbai Bangalore Pune Months Quarter
  36. 36. Marketing & Sales <ul><li>Projected Sales per Quarter </li></ul>
  37. 37. Marketing & Sales 4,65,61,000 1,92,19,000 42,74,000 Total Revenue 1,168 482 107 Total Unit Sales 669 277 63 System HC 499 205 44 System S       Unit Sales 3rd Year 2nd Year 1st Year   Projected Sales
  38. 38. Core Team <ul><li>The business structure of the company will be established after incubation. During incubation the project team will be composed of four members (details in Incubation plan). </li></ul>Technology –hardware and embedded systems. Product development Having Experience in hardware Technology Team Member (2) Technology, software Management, administration and over all execution of the project. 2.2 years B.Tech (CS) Vivek (myself) Focus Area Experience Qualification Name
  39. 39. Core Team Sales and Marketing Having some exp. in sales MBA (Marketing & Sales) Team Member (4) Product development Software and programming Technology Team Member (3) Focus Area Experience Qualification Name
  40. 40. Organization Structure <ul><li>Total staff </li></ul><ul><li>First year (11) Second year (25) Third year (31) </li></ul>Organization structure (staff size)
  41. 41. Financials  Start-up expenses  Total assets
  42. 42. Financials
  43. 43. Financials
  44. 44. Financials 428 % 1,18,88,064 242% 4,65,61,000 1168 3rd - 27,71,954 449 % 1,92,19,000 482 2nd - -2,42,610 - 42,74,000 107 1st (%) Increase in profit Profit (in Rs.) (%) Increase in Revenue Revenue (in Rs.) No of Unit sold Year
  45. 45. Risks Large overseas players may see India as a growing market over a period of time and consider either selling at competitive price or get manufactured from some low cost centers like China or Taiwan.
  46. 46. Risk mitigation <ul><li>(Entry barriers) </li></ul><ul><li>Understanding and implementing an integrated systems. </li></ul><ul><li>Ability to manufacture and sell at a competitive price. </li></ul><ul><li>Adding tailor made features to specific user segment </li></ul><ul><li>and internet enabled systems. </li></ul><ul><li>First mover with focused market penetration and </li></ul><ul><li>likelihood of word-of-mouth user experience in niche </li></ul><ul><li>segments. </li></ul>
  47. 47. Incubation Proposal <ul><li>Time Line (15 months) </li></ul>December 2007 <ul><ul><li>10. Launch of company </li></ul></ul>November 2007 <ul><ul><li>9. Finalizing assembly line, search for VC funding </li></ul></ul>October 2007 <ul><ul><li>8. Beta testing in market </li></ul></ul>September 2007 <ul><ul><li>7. Alpha testing of the product. </li></ul></ul>July 2007 <ul><ul><li>6. First complete prototype. </li></ul></ul>June 2007 <ul><ul><li>5. Database designing, GUI implementation. </li></ul></ul>March 2007 <ul><ul><li>4. Making system network enabled with Ethernet card. </li></ul></ul>February 2007 <ul><ul><li>3. Integration of whole system with LCD display and key pad. (first initial market launch) </li></ul></ul>December 2006 <ul><ul><li>2. Development of blood-pressure, body fat index and pulse. </li></ul></ul>October 2006 <ul><ul><li>First prototype for height-weight measurement </li></ul></ul>
  48. 48. Incubation Proposal <ul><li>Personnel required during incubation (& cost involved) </li></ul>Cost in Rs. (no. of months) <ul><ul><li>Personnel </li></ul></ul>24,000 (3 months) <ul><ul><li>4. Marketing & Sales personnel </li></ul></ul><ul><ul><li>A person who can help us in pushing our product into the market. He would join at the end phase of incubation </li></ul></ul>104,000 (13 months) <ul><ul><li>3. Programmer </li></ul></ul><ul><ul><li>(A person who can assist me to develop and design data base, GUI. A fresher who is fast learner with good programming skill. </li></ul></ul>112,000 (14 months) <ul><ul><li>2. Electronics Engineer </li></ul></ul><ul><ul><li>An electronics engineer having knowledge microcontroller, PCB and circuit designing. </li></ul></ul>120,000 (15 months) <ul><ul><li>1. Vivek Singhwal (myself) </li></ul></ul>
  49. 49. Incubation Proposal Equipment (& material) required for Incubation: 312,000 Total Cost 200,000 Wooden moulds for skinning 8 15,000 Skinning material 6 10,000 Coin and Currency validator 7 2,000 Programmable network card and adaptors 5 25,000 Mechanical equipment like screw-drivers, stands 4 20,000 Electronic equipment like bread-boards, soldering equipment, super glue, resistors, capacitors, power supply, wires, battery etc 3 25,000 Cost of Load Cell, Ultrasound sensor, Blood pressure equipment, Bioelectrical impedance device 2 15,000 Different types of microcontroller 1 Approx cost (In Rs.) Equipment (& material) Required S. No.
  50. 50. Incubation Proposal Cost of other facilities during Incubation   345,500 Total   120,000 Misc. Jobs Outsourced / Consultancy 12   150,000 NirmaLabs Incubation Overhead 11   9,000 Local Petrol Allowance 10   10,000 Books / Directories / Subscriptions 9   2,000 Visiting Cards, Stationary 8   5,000 Legal consultancy 7   3,000 Courier Charges 6 15,000 Guest Travel Compensation 5   8,000 Guest Accommodation Charges 4   6,000 Exhibition Participation Charges 3   10,000 Outstation Mobile Roaming charges 2 Will keep Idea mobile phone (Rs.) 7,500 Telephone expense 1 Particulars Approx cost Facilities Required S. No.
  51. 51. Incubation Proposal Total cost of the Incubation 1,053,500 Total Cost 50,000 Misc. 5 26,000 Traveling 4 345,500 Facilities + other expenses 2 320,000 Cost of Personnel 3 312,000 Equipment / Component Cost 1 Approx cost (In Rs.) Particulars S. No.
  52. 52. Incubation Proposal By the end of the incubation, we will develop 3-5 production ready units; put them at initial customer sites for beta testing to validate the product and its value proposition to the customer. We plan to launch the company by December 2007.