Business Plan This Business Plan Business Plan

Length: 8 pages Sources: 1+ Subject: Business Type: Business Plan Paper: #59889851 Related Topics: Naturopathy, Business Plans, Business Theory, Business
Excerpt from Business Plan :

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

Y1

Y2

Assets

Liabilities

Equity

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.

Marketing

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
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 http://www.amfoundation.org/tcm.htm

No author (2005). Regulation of TCM in the United States. Medscape Today. Retrieved December 18, 2008 at http://www.medscape.com/viewarticle/511877_7

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 http://www.hhs.gov/news/facts/chinahiv.html

Census information from U.S. Census Bureau. Retrieved December 18, 2008 at http://factfinder.census.gov/home/saff/main.html?_lang=en

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…

Sources Used in Documents:

Works Cited

No author (2007). Traditional Chinese Medicine. Alternative Medicine Foundation. Retrieved December 18, 2008 at http://www.amfoundation.org/tcm.htm

No author (2005). Regulation of TCM in the United States. Medscape Today. Retrieved December 18, 2008 at http://www.medscape.com/viewarticle/511877_7

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 http://www.hhs.gov/news/facts/chinahiv.html

Census information from U.S. Census Bureau. Retrieved December 18, 2008 at http://factfinder.census.gov/home/saff/main.html?_lang=en


Cite this Document:

"Business Plan This Business Plan" (2008, December 18) Retrieved April 16, 2021, from
https://www.paperdue.com/essay/business-plan-this-business-plan-73998

"Business Plan This Business Plan" 18 December 2008. Web.16 April. 2021. <
https://www.paperdue.com/essay/business-plan-this-business-plan-73998>

"Business Plan This Business Plan", 18 December 2008, Accessed.16 April. 2021,
https://www.paperdue.com/essay/business-plan-this-business-plan-73998

Related Documents
Business Plan: Bridal Salon Business Products and
Words: 3400 Length: 10 Pages Topic: Business Paper #: 99069137

Business Plan: Bridal Salon Business Products and services Keys to Success Company description Vision Statement Mission Statement Company background Products and Industry Product Description Industry Description The Market Market and Target Customer Market Segmentation Target Market Strategy Competition and Competitive Advantage Curbing Local Competition Curbing Regional Competition Marketing Strategy Overall Strategy Sales Plan Competitive Plan Research and Development (Growth Plan) The Organization Legal and Organization Structure Key Personnel Related Service Providers Location The Financials Critical Risks Income Statement Cash Flow Projection Balance Sheet Assumptions References Executive Summary Introduction Pace-setter is a bridal salon that rides on the theme of 'experience'. It creates an environment in which

Business Plan for a Concrete Polishing Company
Words: 2039 Length: 7 Pages Topic: Business Paper #: 75786300

Business Plan for a Concrete Polishing Company Business plan for establishing concrete polishing company in Sydney Australia Concrete polishing company, Sydney, plans to become a leader in providing concrete polishing services in the city. The company plans to do this by having the best facilities and human resource with experience in the industry. Plans are set to counter competition from existing companies by a continuous improvement of processes. Measuring standards of performance

Business Plan Product Description Market
Words: 4066 Length: 15 Pages Topic: Business Paper #: 52314183

As part of the research triangle, Raleigh has a significant portion of its population that fits the target market. For the Farmery to succeed, it only needs to capture a small portion of the market share. This is especially true because the store has a small footprint, and has the flexibility to set up on vacant lots without the costs of either renting or developing fixed real estate. The

Business Plans Investment Decisions an Analysis of
Words: 760 Length: 3 Pages Topic: Business Paper #: 25275937

Business Plans Investment Decisions An Analysis of Three Business Plans in Regards to their Riskiness This paper will examine three separate business plans and rate these plans based on the level of risk and the cost of capital that should be awarded to these plans. Of the three plans considered, a plan for an expansion of a coffee production facility in South America carries the least risk. An investment opportunity for a truck

Business Plan Relating to the Sale of a New Financial Divorce Software...
Words: 6850 Length: 25 Pages Topic: Business Paper #: 96636947

Business Plan for a Financial Divorce Software Business Plan Divorce Software Business Plan relating to the Sales of a new Financial Divorce Software. Business Plan relating to the Sales of a new Financial Divorce Software F F1 F2 F3 G1 G1(a) G1(b) G1(c) Business Identification Keys to Success Company Summary Industry History Legal Form of Ownership Location and Facilities Management Structure Products and Service Market Analysis Target Market Industry Analysis Competitive Analysis Market Strategy Ps of Marketing Price List Selling Strategy Sales Forecast Implementation Strategy Overall Strategy Implementation Control Plan Financial Statements and Projections Revenue and Cost Estimate Forecasted Profit and Loss Statement Forecasted Balance Sheet Financial

Business Finance Assessing the Risk in Three
Words: 1357 Length: 3 Pages Topic: Business Paper #: 14779827

Business Finance Assessing the Risk in Three Potential Investments The way an investment is assessed will include consideration for the level of risk that is present in that investment. The higher a risk associated with a business the higher the required rewards referred to as the risk and reward equation. Where the risk premium increases this will also lead to the use of increased discount levels in discounted cash flow assessments, such