This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Zenergy Medical Industries
This sample business plan can be edited directly in Business Plan Pro software. This business plan has been developed to present our company to prospective supplier partners, employers, and investors. Zenergy Medical Industries is a start-up company focused initially on distribution of leading brands of therapeutic systems for use by residents of Homecare and Assisted Living facilities at risk of complications from X disease. After establishing a market presence with this product niche, we will expand to offer other products related to further treating and managing complications of the disease.
The market is currently served poorly and inconsistently by a patchwork of local pharmacies and distributors. We will offer a regional, and ultimately national, network of clinical sales professionals, which will make us the partner of choice for large, geographically diverse Homecare and Assisted Living (A.L.) chains, and will make us attractive to potential supplier partners.
The two major market opportunities are "at risk" residents with the disease in Homecare and Assisted Living. There are an estimated 345,784 Homecare at risk residents, with a potential $59.6 million revenue, and an estimated 66,671 Assisted Living at risk residents, with a potential for $17.6 million in revenue.
The product technology is available to all players in this market. We will differentiate ourselves by adding value through our distribution strategy and channels, and our comprehensive product lines and programs that make working with us incredibly easy. We are uniquely positioned to gain market share in this segment due to our corporate account relationships, our ability to build a regional (ultimately national) field clinical sales team quickly, and our ability to create compelling marketing programs. The competition is largely smaller, more local distributors and pharmacists who are not approaching this market in a sophisticated or coordinated way.
Using relationships with decision makers at major homecare chains to gain unique access to sell into their facilities. This will allow us to provide "pre-qualified" sales opportunities to our field-based clinical sales team.
Effectively building a strong national clinical sales team capable of building strong relationships with clinical decision makers at the facility level.
Creating marketing strategies and tactics to position ourselves as leaders in providing clinical product solutions to help facilities manage the complications of disease.
Gaining distribution relationships with a unique combination of top suppliers to build a comprehensive line of product solutions for managing the complications of the disease. We will create an effective channel of distribution that will be indispensable to suppliers as a cost effective way for them to penetrate the post-acute market.
We will utilize the therapeutic system offering as the means to gain entrance into the market and build our organization. Then we will add complimentary products for managing complications of the disease, followed by other products related to managing complications of heart disease and aging.
The owners will invest personal savings in the business. We are seeking an additional short-term (3 year) loans, to supplement initial cash flows from sales for the first year. We anticipate a first year net profit. This should grow substantialy by year three. By the end of year three, Zenergy Medical Industries will have a very respectable net worth. The main objectives of this business are: to achieve the sales growth targets by month six and by end of year one. Aggressive gains in market share and average monthly revenues in year two. To grow the contracted sales team to seven field clinical sales reps by month eight and to 25 field clinical sales reps by year three. To achieve net profit in year one, increasing in year two, by containing costs and meeting sales goals. To begin paying Vice Presidents a regular salary starting in year two. To maintain 90 day customer satisfaction survey results (% who would definitely repurchase and definitely recommend us) at 98% or higher. We provide post-acute-care facilities with product solutions to help manage complications of X disease. We take pride in helping to alleviate patient suffering associated with these conditions. We offer a comprehensive line of innovative, top qualityproducts. We provided unequaled clinical support on a regional (national) level to post acute facilities. We have close relationships with key decision makers in top post acute chains, and with key administrators and clinicians at the facility level. We do an exceptional job of articulating the value of our products and solutions.We position ourselves in a clear, powerful, and memorable way in the marketplace. We have an organization with a unique spirit that makes people eager to join us or do business with us. Once people join us, they can't imagine working anywhere else.
Zenergy Medical Industries will be seen by post-acute-care providers as THE source for product solutions to manage the complications of X disease.
We are a start-up company that will initially distribute a full line of disease therapies and medications, followed by additional complimentary products that fit with our strategy. Zenergy Medical Industries' headquarters will be in Charleston, S.C.
Our source of differentiation will be in our distribution and marketing strategies. We will leverage our corporate account relationships and create marketing programs to drive demand for our products solutions at the corporate level. We will establish a unique network of clinical sales professionals, first in the Southeast, then nationwide, who will then build relationships at the facility level by providing value-added service and expertise to caregivers.
As distributors, our only relevant compliance issues are to stay in compliance with CMS's supplier standards as regulated by the DMERCs and to stay in compliance with HIPAA regulations regarding patient data.
Zenergy Medical Industries is a division of Finkelstein and Acropolis, LLC., which is equally owned by Acropolis, Finkelstein, and Aktum.
Capital for start-up costs will be provided out of private funds from Acropolis, Finkelstein, and Aktum. Zenergy Medical Industries will also seek an SBA Micro-Loan to supplement the private funding provided by the three managing executives.
Target Market Segment Strategy
Geographically, we will focus on facilities located in the Southern U.S. that fit within our two top priority segments.
Our model will be to leverage our relationships with these chains to get easier and faster access at the facility level for our field clinical sales team. This should allow us to achieve economies in marketing, promotions, and sales costs, and should allow our field sales team to be more efficient in working only with highly qualified facilities.
The Southern U.S. DMERC Region C will be our geographic focus because the prevalence rates for the disease tend to be higher in the Southern U.S. (5 of the top 10 states, ranked in order of prevalence rates, are in the Southern U.S.) and there tends to be a high number of chain facilities located in this region.
We will begin by targeting Homecare and A.L. chains with the majority of their facilities located in Tennessee, North Carolina, South Carolina, Alabama, Georgia, and Florida in year one, then we will expand further into Virginia, Louisiana, Mississippi, Oklahoma, and Texas in years two and three. In years three and four we will expand across the country into other DMERC regions to create a national presence. Of course, our field reps will also call on non-chain accounts within their territories where opportunities arise, but our strategic focus will be on trying to leverage corporate account relationships to open doors at the facility level for the field reps.
Demographic trends indicate that the larger African American and Hispanic populations in this region will cause prevalence rates to continue to grow at above average rates over the next 20 years.
Our industry is Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS), focusing on the elder care markets.
The elder care market will be impacted by conflicting sets of dynamics. Consumer preference, payor desire for lower costs, and advances in pharmaceuticals, non-invasive surgery, assistive devices, telemedicine, and remote monitoring will continue to allow more elderly patients to be cared for in their homes. However, the continued growth in the elderly population and continued increase in heart disease, disease, Alzheimer's, and associated disease states will force an older and sicker resident population into institutional settings due to the intensity of care required to manage these disease states.
The net effect is difficult to predict, but it would appear likely that Homecare census will remain flat or experience slight growth (1-3% per year), while Assisted Living will likely continue to experience slightly stronger growth (3-5% per year).
HIDA estimates that the Durable Medical Equipment (DME) market's revenue has grown 4-5% per year from 2002-2004; while total national spending on Elder care grew approximately 5% per year during that period. HIDA also estimated that total distributed medical product sales from 2001-2003 grew approximately 5% per year.
These revenue growth rates may decelerate somewhat over the next several years as the industry struggles to find ways to control costs, so we conservatively estimate that growth rates in the DME institutional elder care market will probably be in the 3% per year range.
Competition and Buying Patterns
The market is currently served inconsistently and, in some areas poorly, by a variety of players including pharmacies, DME manufacturers, rehab facilities and therapists, and local dealers/distributors who lack a national presence, a clear marketing strategy, and the ability to leverage corporate chain relationships. Their field sales team mainly functions as order takers, going out and visiting facilities, targeting only residents they believe are covered under Medicare part B or an equivalent private pay coverage, then submitting orders for these residents.
Our growth will not come entirely from overall market growth, but also from taking market share away from our competitors. The market is very fragmented; CMS estimates that 95% of DMEs generate less than $350,000 per year in annual billings and 99% generate less than $5 million. We will grow in part due to the underlying trends specific to growth in disease prevalence, but also by consolidating a fragmented market by creating a regional (then a national) clinical sales channel that provides a source of competitive advantage.
One study in 1995 indicated that utilization of the Medicare therapeutic disease benefit was extremely low and could be boosted substantially via the use of a coordinated marketing approach. We believe that the combination of market dynamics along with our sales and marketing approach should allow us to grow revenue in this market rapidly over the next three years.
- Bell J- Doing Your Research Project, Third Edition (Open University Press, 1999) ISBN: 0335203884
- Best J- Research in Education, (Prentice Hall, 1997) ISBN: 0137740182.
- Kane E- Doing Your Own Research, (Marion Boyars, 1997) ISBN: 0714530433
- Mcniff J- Action Research: Principles and Practice (Rout ledge Falmer, 2001) ISBN: 0415219949
- Management Today (Chartered Management Institute)
- People Management (Chartered Institute of Personnel and Development)