Business Plan This Business Plan essay

Download this essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from essay:

The office and administrative expenses would remain constant even to that point, as would the insurance expense.

Exhibit B: Cash Flow Statement, Year Two

At this point, the business is earning a healthy return and Mr. Ahn is receiving will be able to bring in a reasonable salary. The nature of the business may well change at this point. At the maximum revenue of $144,000 per year the pretax profit would be $63,600. As a result, it is likely that a clinic will be formed with other practitioners in order to minimize expenses and increase profitability.

We did not include taxes in our cash flow examples because the company is going to be set up as a sole proprietorship. This means that the income from the company will be rolled into the income for Mr. Ahn, as well as his liabilities. Mr. Ahn's personal expenses are therefore not included in the model, which is intended to solely illustrate the finances specifically relating to the clinic itself.

Exhibit C: Balance Sheet






The balance sheet reflects the $10,000 startup cost plus the loss in year one. The profit in year two is then accounted for. It is important to note that Mr. Ahn will not draw a salary directly from the clinic for the first two years of operation. His wife has a full-time job and will meet his basic living expenses while he establishes the business.


The target market for the venture will be mainly Koreans living in the downtown/Koreatown area of Los Angeles. Because of Mr. Ahn's language abilities in English, Chinese and Japanese, it is expected that the clinic will be able to draw customers from other groups as well, depending on the visibility of the location. Koreatown is a high-density, multiethnic area and its residents are knowledgeable and open to ideas from other cultures. This means that there is a market for an English-speaking TCM practitioner; few in the Los Angeles area are, particularly not in Koreatown, an area in which Korean immigrants can live for years without developing English language proficiency.

The narrow market consists of the estimated 46,000 Koreans living in the area. The broader market consists of the English-speaking area residents with an interest in TCM, and Koreans from other parts of Los Angeles, particularly those who commute to the area for Korean-specific services such as TCM, restaurants, groceries and entertainment. This broader market is estimated to amount to between 100,000-150,000, as there are other major Korean population centers in the area from which few such commuters can be expected.

The two primary channels used for marketing will be word of mouth and print. The print ads will run in the city's two main Korean newspapers. The ads will be basic black and white ads. The tone will be informational, containing the clinic's address, Mr. Ahn's background and experience, the value proposition the clinic offers, its convenient location and the multilingual aspect.

Word of mouth forms a crucial aspect of the business plan. Korean society is relatively conservative and family-oriented. Both Mr. Ahn have family and community ties in the Koreatown area, which will help them to establish a strong word-of-mouth network for the business. Extensive networking will also be conducted in order to maximize potential.

A key component of the marketing strategy will be the launch of the clinic. Additional funds above and beyond the basic marketing budget will be dedicated to this. Part of the launch will be larger, full-page ads in the newspapers. In addition, approximately $500 will be spent on leaflet and poster advertising in the Koreatown area. Also during the launch phase, extensive publicity will be undertaken. Mr. Ahn will attempt to secure time on Korean programs on LA's local Asia-market television outlet and on community radio as well. Moreover, it is expected that the high advertising spending in the newspapers will be reciprocated with stories highlighting the arrival of the new clinic.

In the future, the advertising budget may be increased, particularly if sales do not meet expectations. Alternative marketing tactics that are being considered are Google ads targeted towards Korean-language Internet users with Los Angeles-based IPs. Also, the English-language market is another potential target for supplementary marketing campaigns. The size of this market is unknown as are the best means by which to reach it; therefore, this market is considered secondary and will not be given a marketing budget unless needed.

Works Cited

No author (2007). Traditional Chinese Medicine. Alternative Medicine Foundation. Retrieved December 18, 2008 at

No author (2005). Regulation of TCM in the United States. Medscape Today. Retrieved December 18, 2008 at

No author (2008). HIV / AIDS, the U.S.-China Partnership for Public Health at Work, and Traditional Chinese Medicine in the U.S. Fact Sheet. U.S. Department of Health and Human Services. Retrieved December 18, 2008 at

Census information from U.S. Census Bureau. Retrieved December 18, 2008 at

No author. (2003). Population Change by Race and Ethnicity, 1990-2000, USA, California, Los Angeles County, Orange County, Koreatown. California State University, Los Angeles & Korean-American Coalition-Census Information Center. Retrieved December…[continue]

Cite This Essay:

"Business Plan This Business Plan" (2008, December 18) Retrieved November 30, 2016, from

"Business Plan This Business Plan" 18 December 2008. Web.30 November. 2016. <>

"Business Plan This Business Plan", 18 December 2008, Accessed.30 November. 2016,

Other Documents Pertaining To This Topic

  • Business Management Functions Business Profile

    Leadership: While the Inspector General authorizes all matters pertaining to the eight regional offices, the day-to-day operations and procedures of the individual regional offices are administrated by the RIG. The RIG supervises the audit managers in his region, sometimes among two or three remote field offices. As a typical example, Federal Region II comprises New York, New Jersey, and Puerto Rico. The Region II HHS-OIG- OAS offices include a regional headquarters in New

  • Business Proposal Economic Business Proposal

    Business Proposal Economic ( business proposal ) Option Elms hotel and spa operated only as a hotel in the previous years but it's due to offer spa services after renovation. The number of customers that visited the premises asked for spa services hence the need to include the services. The market for hotel and spa services is wide ranging from those who visit the premises only for a day to those who

  • Business Construction Scenario Business Entities Vary From

    Business Construction Scenario Business entities vary from countries to countries since the formation of a business is controlled by the various legal systems instituted in those countries. There are many types of business entities, and this is where we find the likes of sole-proprietorship, partnership, cooperatives, corporations and limited liability Company among others (Waddell, 2008). A business may be categorized in any of these entities just by the composition of its

  • Business Plan the Business That I Am

    Business Plan The business that I am going to start is a small coffee microroastery and shop. The company will perform two basic functions. The first is a product function, the roasting of coffee beans. Green beans will be received by the company, roasted, and then both used in the shop and made available for a variety of retail channels. The second function will be a service function, based on the

  • Business Expansion a Business That Has Been

    Business Expansion A business that has been doing well in its current location may decide to taste new waters in an attempt to grow. This can be through establishment of the same business in a different region in a country or even expand to a global scale. Such a decision is made when the business owner who has been successful in a sole proprietorship wants to try out new areas with

  • Business Ethics Masters Business Administration Essay

    Business Ethics - Masters Business Administration Essay - Drawing relevant literature, critically evaluate a position debates firms responsibility maximising shareholder returns. Discuss implications chosen position a manager concerned impact company environment. Business ethics Throughout the past recent decades, the means in which the economic agents conduct their business operations have suffered some notable changes, in the meaning that less apparent emphasis comes to be placed on profits, and more on generating socio-economic

  • Business Failure All Businesses Are Started With

    Business Failure All businesses are started with the intention of success, although this intention alone cannot guarantee immunity from failure. Whether or not businesses experience success or failure depends on several factors. Some of these factors are in the control of the business owners themselves, such as quality of management, while some factors are out of the control of the business owners, such as current economic climate. The following discussion highlights

Read Full Essay
Copyright 2016 . All Rights Reserved