2300 words assignment

INTRODUCTION

I plan to have a limited company named XXXX. My focus will be on skin conditions as an acupuncturist. This will be wholly owned by me with no other directors or owners involved. I will retain full responsibility for managing business development services, profits, losses, and making sure the company operates in compliance with UK regulations.

BUSINESS START-UP COSTS

Name of Business: XXXXXX

Start-up expenses

Cost

Source

Equipment

Therapy Bed

£77.99

Amazon

Electroacupuncture Kit

£149.50

Scarborough

Blood pressure machine

£20.99

Amazon

Cupping Set

£0

Owned

Mini smokeless stick-on moxa x 12

£215.4

Scarborough

Gua Sha instrument x 4

£35.96

Amazon

Tweezers

£0

Owned

Lighters x 12

£12

-

Needles (budget)

£500

Scarborough

Nitrile Gloves (pack of 100)

£11.99

Amazon

Alcohol swabs (x400)

£6.99

Amazon

Sharps waste box x3

£11.97

Amazon

Computer

£0

Owned

Marketing

Website

£122.40

Wix

Business Cards and flyers

£75

Software Fabrik

Budget for extra

£300

-

Stationary

A4 Paper (2500 sheets)

£20.99

Amazon

Printer

£0

Owned (Hp)

Suspension files

£0

Owned

Subtotal

£1,561.18

Year 1 operating expenses annual

Start-up cost

£1,561.18

Membership

£305

BAcC

Rent

£3840

Edgeware road

Directory salary

£8400

HSBC

Phone bills

£192

O2

Marketing and advertising (budget)

£3000

Facebook, Instagram, website

Subtotal

£17,298.18

Year 2 operating expenses annual

Membership

£457.5

BAcC

Rent

£4224

Edgeware road

Directory salary

£9600

HSBC

Phone bills

£192

O2

Marketing and advertising (budget)

£3500

Facebook, Instagram

Subtotal

£17,973.5

Year 3 operating expenses annual

Membership

£610

BAcC

Rent

£4646

Edgeware road

Directory salary

£10,800

HSBC

Phone bills

£192

O2

Marketing and advertising (budget)

£4000

Facebook, Instagram

Subtotal

£20,248

Justifications

The start-up expenses are calculated with the estimate of 351 visits in the first year.

Week 1-13

3 patients per week, a total of 39 visits within 13 weeks.

Week 14-26

6 patients per week, a total of 78 visits within 13 weeks.

Week 27-39

8 patients per week, a total of 104 visits within 13 weeks.

Week 40-52

10 patients per week, a total of 130 visits within 13 weeks.

A total of 351 visits in the first year

All the equipment listed will be needed to carry out treatments. This is an estimated prediction of the materials needed for the first year, and will re-evaluate within 6 months to see if there needs to be any adjustments.

I will have a budget of £3000 for marketing in the first year as I think it is very important. I will mainly use Facebook and Instagram as it is one of the best marketing tools to use at this current time in my opinion. I plan to manage my monthly marketing and expect high client retention rates to reduce the need for expensive marketing. I will aim to have a professional and simple looking website that is functional and easy to use for all age groups. I will be using a calendar booking on the website. Images and social media along with positive reviews are the key marketing tools with new techniques and materials keeping the company relevant. As I learn more skills, I plan to introduce new services to the company.

In terms of stationary, I plan to keep it as minimal as possible. A4 paper will be used for patients’ files in suspension folders.

The beauty room I am currently renting is £320 per month. I plan to rent to use the same building, therefore, the price would be around the same. Directory salary is estimated to be £700 a month, £8400 in the first year.

PRO FORMA INCOME STATEMENT

Owner(s) Name(s) and Credentials:

xxxxxx

Business Address/Contact: (If Known):

Address: X

Mobile: X

Business Start-Up Date: September 10, 2020

Business Structure: Limited

YEAR ONE

YEAR TWO

YEAR THREE

GROSS SALES

(Calculation here):

Less any COST OF SALES

£28,080

£0

£67,600

£0

£83,200

£0

= GROSS PROFIT (Margin)

£28,080

£67,600

£83,200

OPERATING EXPENSES

Membership

Rent

Directory salary

Phone bills

Marketing and advertising (budget)

Start-up cost £1,561.18

£305

£3840

£8400

£192

£3000

£457.5

£4224

£9600

£192

£3500

£610

£4646

£10,800

£192

£4000

Total Operating Expenses

£17,298.18

£17,973.5

£20,248

Net Profit Before Taxes

£10,781.82

£49,626.5

£62,952

Justifications

· £80 per treatment, free consultation

Year 1

Week 1-13

3 patients per week expected. A total of £3,120 in gross sales.

Week 14-26

6 patients per week expected. A total of £6,240 in gross sales.

Week 27-39

8 patients per week expected. A total of £8,320 in gross sales.

Week 40-52

10 patients per week expected. A total of £10,400 in gross sales.

A total of £28,080 in gross sales in the first year.

Year 2

Week 1-13

12 patients per week expected. A total of £12,480 in gross sales.

Week 14-26

15 patients per week expected. A total of £15,600 in gross sales.

Week 27-39

18 patients per week expected. A total of £18,720 in gross sales.

Week 40-52

20 patients per week expected. A total of £20,800 in gross sales.

A total of £67,600 in gross sales in the second year.

Year 3

Week 1-26

20 patients per week expected. A total of £41,600 in gross sales.

Week 27-52

20 patients per week expected. A total of £41,600 in gross sales.

A total of £83,200 in gross sales in the third year.

There is a possibility of an increase in price in the third year.

The company is being formed with a fund of £17,298.18 generating revenue of £28,080 in the first year, net profit being £10,781.82. Revenue and costs are forecast to increase annually as the company drives up sales and monitors costs. Due to the start-up cost and low number of patients in the first year, the profit made is estimated to be low. However, there is a big increase in the second and third year assuming that the patient number has grown, profiting up to £49,626.5 in the second year and £62,952 in the third year.

I am going to collect a Director's salary with annual increases as profits grow, estimated increase of £100 every year. The rent for second and third years are estimated assuming that the rent increases by 10% every year.

FORECASTS

My estimates were based on my experience as a current business owner here in London. I do cosmetic tattooing and beauty treatments. I have also studied Business management in Canada in 2016, this gave me a good foundation on how to manage a business before starting my own. I have also had an interest in marketing, therefore I self-educated myself on how to optimize and target my audience to get a clientele at a faster rate. I have experience in marketing tools such as SEO.

I am a firm believer that when it comes to business, marketing is as important as being a good practitioner to have a successful business. Many factors need to put into consideration such as the quality of the service, communication skills, location, set-up of the place, and the list goes on. However, with really good marketing, patients tend to travel anywhere for the service that they want. I believe that we live in an era where the internet dictates the success of most businesses. Without good marketing, the right target with an optimal rate is not reached. Word of mouth has a great importance as this will help build a loyal patient base.

I have come across a few practitioners with some positive and some negative experiences as a start-up. When I have checked their website, the practitioner with negative experience did not have a professional-looking website in my opinion and it was not functional to use. The other practitioner with a better experience had a more professional-looking website that was functional to use. This gave me an understanding of the importance of the aesthetic of the website.

Practitioners tend to charge £75 per session here in London. The two practitioners that I have spoken to charge £60 and £75. The beginning prices seem to be around £60 to £70 local to where I live. Well-established places tend to charge more. I plan to charge around £80 as I believe I have the skill to reach the right target audience to fulfil my yearly targets with this price.

I am fortunate to have a mother who is a successful acupuncturist as well as a medical doctor. She has shared some of her experiences on how she started as an acupuncturist. She has struggled for many years as Chinese medicine and acupuncture were very foreign to the Turkish community, however, over the years, the awareness has increased. She had a breakthrough when she started writing articles and publishing them online. She has invested a big part of her marketing budget on the advertisement of the articles which increased the number of patients dramatically. My mother spent many hours writing articles which she then used as a marketing tool. This taught me that the quality of the marketing is very important to have a successful business as an acupuncturist.