By
DR. SHARMILA RAMASAMY
• An organizational structure defines how task allocation, coordination and supervision are directed towards its achievement. • It can also be considered as the viewing glass or perspective.
• Can be structured based on their objectives. • Allows allocation of responsibilities for different functions and processes. Eg. branch, department, workgroup and individual. • Organizational structure affects actions in two big ways : • 1) It provides the foundation for standard operating procedures (SOP) and routines. • 2) It determines which individuals get to participate in which decisionmaking.
• Management is the function that coordinates the efforts of people to accomplish goals and objectives using available resources efficiently and effectively.
• Many organization have a brief mission statement, usually in 30 words or fewer, explaining their reason for being in the market and their guiding principles. Eg. MISSION STATEMENT & VISION Our mission here at Advanced Aesthetics Medical Clinic is to uphold an atmosphere of professionalism, personal attention, and excellence in care. We strive to do this through utilizing the highest quality and most advanced technology, as well as using the best therapeutic and medical quality aesthetic services available. We focus on educating our clients on maintaining health, wellness and beauty and to treat and prevent the signs of aging.
Eg. TAGLINES • Most innovative & aesthetic medical care • Choose a treatment that’s right for you • Transform yourself- Mediviron UOA • We are professionals, that’s what we do- Ko Skin Specialist
• Goals are destinations—where you want your business to be. • Objectives are progress markers along the way to achieve that goal. • • • •
Eg. GOALS Successful clinic that is a leader in patients. Service that is loyal to patients. Eg. OBJECTIVES Annual sales targets. Patient satisfaction.
What background experience, skills and strengths do you personally bring to this new venture?
Describe in depth about the services offered to the patients.
What factors will give you competitive advantages & disadvantages?
What are the pricing or fee of your products or services?
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FACTS ABOUT THIS INDUSTRY What is the total size of the Aesthetic market? Total estimated turnover in 2009- RM500 M (http://www.expatgomalaysia.com/2012/06/18/aesthetic-health/) Current demands in the Aesthetic market. Trends in the target market—growth trends, trends in patient preferences, and trends in product development. Growth potential and opportunity for a business of your size. What barriers do you face in entering this market? Some typical barriers are: How could the following affect your organization? Government Regulations (Eg. LCP) High capital costs Change in technology (Eg. New Machines) Change in Economy (Eg. GST) Patient acceptance and brand recognition Training and skills How will you overcome the barriers?
• Identify your targeted patients, their characteristics, and their geographic locations, otherwise known as their demographics. • You may have more than one patient group. • Identify the most important groups. • Then, for each patient group, construct what is called a demographic profile: • Age, Gender, Location, Income level, Social class, Occupation, Education, Preferred Quality and Price Preferences.
• Analyze your location criteria as they will affect your business. • Is your location important to your patients? If yes, how? • Is it convenient? Parking? Interior spaces? Not out of the way? Is it consistent with your image? Is it what patients want and expect? • Where is the competitor located? Is it better for you to be near them or distant? • What will your business hours be?
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Amount of space required Type of building Interior Designing- modern Cost: Estimate your occupation expenses, including rent, maintenance, utilities, insurance and initial remodeling costs to make the space you need. • These numbers will become part of your financial plan.
• Who are your competitors? • List your major competitors. (Names, Addresses, Distance) • Will you have direct or indirect competition? • Use a Competitive Analysis table to compare your clinic with your two most important competitors. • Take them positively
• Now that you have systematically analyzed the • Economics • Patients • Location • Premise • Competitors • You should have a clear picture of where your organization fits. • In one short paragraph, define your niche, your unique corner of the industry.
• Now outline a marketing strategy that is consistent with your niche. • How will you get the word out to patients? Advertising: Billboards, Cosmetic magazines. • Have you identified low‐cost methods to get the most out of your promotional budget? • What image do you want to project? How do you want patients to see you? • In addition to advertising, what plans do you have for graphic image support? • This includes things like logo design, name cards, letterheads, brochures, signage, and interior design. • You should have a system ? (Eg. Patient records- many in the market like Glauco, Doctor Assist) MUST KEEP RECORD
• List all of your major procedures, services and products. • For each • Describe the most important features. What is special about this procedure? • Describe the benefits. What will it do for the patient? • What after‐sale services will you give? Eg. Promo/follow‐up
• Explain your method of setting prices. • For most small businesses, having the lowest price is not a good policy. It robs you of needed profit margin. • Usually its better to have average prices and compete on quality and service. • Does your pricing strategy fit with what was revealed in your competitive analysis? • Compare your prices with your competitors. Are they higher, lower or the same? • How important is price as a competitive factor? • Do your patients really make their decisions based on price? (this also depends on your location & income level)
• Use a sales forecast spreadsheet to prepare a month‐by‐month projection. • You may want to do two forecasts: ʺworst caseʺ minimum you can reach no matter what happens.
ʺbest guessʺ which is what you really expect,
• From this you can determine if you need a funding source?
• Licensing and bonding requirements. • Permits for workplace and signboards. • Special regulations covering this profession. • Insurance coverage. • Trademarks, copyrights, or patents.
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Number of employees Type of labor (skilled, unskilled or professional) Where and how will you find the right employees? Quality of existing staff Pay structure (in the market value range) Training Who does which tasks? Do you have schedules and written procedures prepared? Have you drafted job descriptions (SOP) for employees? If not, take time to write this • Important to always follow regulations and contribute for KWSP and SOCSO. You don’t want to be brought to the industrial court by your employee.
• Who will manage the business on a day‐to‐day basis? What experience does that person bring to your business? • Is there a plan for continuation of the business if this person is lost or incapacitated? • Create an organizational chart showing the management hierarchy and who is responsible for key functions. • Include position descriptions for key employees.
• What kind of inventory will you keep? Type & amount • Average value in stock (eg. What is your total inventory investment)? • Rate of turnover? Need more of the items used often • Time for ordering? You cant say you have no stock • Identify key suppliers. • Credit and delivery policies • Should you have more than one supplier for critical items (as a backup)? • Do you expect shortages or short‐term delivery problems? (eg. Adipax) • Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?
• 5S is a basic, fundamental, systematic approach for productivity, quality and safety improvement in all types of business. • Five Japanese words: • Seiri – Sort, • Seiton – Systematic Arrangement • Seiso - Shine • Seiketsu – Standardize • Shitsuke – Sustain • You have achieved 5S if you can find organized stuff in 15 seconds
• Board of Directors. Eg. Sdn Bhd • Company secretary • Accountant • Financial Planner • Attorney • Insurance Agent • Banker • Income Tax • Mentors and Key Advisors
• You will have many startup expenses before you even begin operating your business. • It’s important to estimate these expenses accurately and then to plan where you will get sufficient capital. • Opening a new business has a way of costing more than you anticipate. • There are two ways to make allowances for surprise expenses. • The first is to add a little “padding” to each item in the budget. • The problem with this approach, is that, it destroys the accuracy of the financial plan. • The second approach is to add a separate line item, called contingencies, to account for the unforeseeable. • This is the recommended approach.
• Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies. • If you cannot get good information, we recommend a rule of thumb that contingencies should equal at least 20% of the total of all other startup expenses. • Explain your research and how you arrived at your forecasts of expenses. • Give sources, amounts and terms of proposed loans. • Also explain in detail how much will be contributed by each investor and what percent ownership each will have.
• The financial plan consists of a 1. 12‐month profit and loss projection. 2. A four‐year profit and loss projection 3. A cash‐flow projection 4. A projected balance sheet 5. A break‐even calculation • Together they constitute a reasonable estimate of your • company's financial future. • More important, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.
• 12‐month profit and loss projection is the centerpiece of the plan. • This is where you put it all together in numbers and get an idea of what it will take to make a profit and to be successful. • Your sales projections will come from a sales forecast, cost of services, expenses, and profit month‐by‐month for one year. • Profit projections are major assumptions used to estimate income and expenses.
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If the profit projection is the heart of your business plan, cash flow is the blood. Businesses fail because they cannot pay their bills. Every part of your business plan is important, but none of it means a thing if you run out of cash. The point of this worksheet is to plan how much you need before startup, for preliminary expenses, operating expenses, and reserves. You should keep updating it and using it afterward. This will enable you to foresee shortages in time to do something about them—perhaps cut expenses, or perhaps negotiate a loan. The cash‐flow projection is just a forward look at your checking account. For each item, determine when you actually expect to receive cash (for sales) or when you will actually have to write a check (for expense items). You should track essential operating data, allows you to track items that have a heavy impact on cash flow, such as sales and inventory purchases.
• Your cash flow will show you whether your working capital is adequate. • Clearly, if your projected cash balance ever goes negative, you will need more start‐up capital. • This plan will also predict just when and how much you will need to borrow. • When you buy inventory, do you pay in advance, upon delivery, or much later? How will this affect cash flow? • Are some expenses payable in advance? When? • Are there irregular expenses, such as yearly tax payments, maintenance and repairs or seasonal inventory buildup, that should be budgeted? • Loan payments, equipment purchases, and Director’s salary usually do not show on profit and loss statements but definitely do take cash out. Be sure to include them. • Depreciation does not appear in the cash flow at all because you never write a check for it.
WEBSITES • http://www.mpc.gov.my/mpc/images/file/RR 2014/Healthcare%20Report/chap4.pdf • • http://www.rmc.upm.edu.my/dokumen/PTPP Y1_Good_Clinical_Practices_in_Malaysia.pdf