Business Plan
MediGlobe Egypt
Table of Contents
1.0Introduction5
1.1 Background and choice to business5
1.3 Need for business6
1.4 Current trends in business6
2.0Industry Analysis7
2.1 Description and analysis of the industry7
2.2 Major competitors and industry size7
2.3 Expected response to entry7
2.4 Industry’s opportunities and threats8
2.5 Porter’s five forces8
2.51 Threat of new entrants:8
2.52 Threat of substitutes:9
2.53 Rivalry among existing firms:9
2.54 Bargaining power of customers:9
2.55 Bargaining power of suppliers:9
3.0Market Analysis10
3.1 Target market / customer profile10
3.11 Geographic:10
3.12 Demographic:10
3.13 Psychographic:10
3.2 Demographic characteristics of market11
3.4 Marketing strategies11
3.5 Competitive advantages12
3.6 Size and characteristics of market segment13
3.7 Competitor’s positioning13
3.71 Advantages:13
3.72 Disadvantages:13
4.0Management Plan14
4.1-Responsibility of the owners14
4.2 Opening hours of the business14
4.3 Employee positions14
4.4 Form of ownership14
4.5 Organization Structure15
4.6 Management’s qualifications15
4.61 Ibrahim Youssef15
4.62 Sherouk Abdelghaffar15
4.63 Tasneem Rabie15
4.64 Jana Harraz15
4.65 Ashraf Youssef16
4.66 Menna Ateya16
4.7 Other stakeholders16
4.71 Partners:16
4.72 Investors:16
4.8 Professional service firms16
4.81 Strategy consulting17
4.82 Accounting firms17
4.83 Law consulting firm17
5.0Marketing Plan17
5.1 Place17
5.2 Pricing plan18
5.3 Distribution channels19
5.4 Promotional activities19
5.5 Branding20
5.6 Partnerships20
6.0Operations Plan20
6.1 Doctor21
6.2 Hospital21
6.3 Visa and Travel Permissions21
6.4 Flight and Hotel22
6.5 Technical Requirements22
7.0 Financial Plan24
7.1 Start-up Costs24
7.2 Assumptions24
7.21 Capital:24
7.22 Sales estimate for the next three years24
7.23 Product Price:25
7.24 Salaries:25
7.25 Extra Revenue25
7.3 Breakeven analysis25
7.4 Financial ratios26
7.5 Balance Sheets27
7.6 Income Statements30
7.7-Cashflow Statements32
1.0 Introduction
1.1 Background and choice to business
In Egypt, there are 104 million people. People who want to eat, people who want to drink, people who need the necessary things in life. One of the problems people face is the absence of some surgical procedures and qualified experts in the healthcare system. People with complex illnesses have to travel to different countries around the world in order to find the healthcare they need. This can be a huge burden and a serious waste of time and money for anyone who isn’t experienced in medical travel industry. This is when the idea came in. Develop a business model that fast-tracks and streamlines this process. A business that books the flights, the hotel, the doctors, the hospitals and everything that is needed for the customer to travel and get better. A travel agency that focuses on the niche market of medical tourism. Thus the idea was born.
1.2 Business evidence and roadmap
There are different steps in the process to be administered for our business. First the client would have to get an appointment for a first meeting. This appointment could be reserved by email or from our phone from 9am to 5 pm Sunday to Thursday. The client will take an appointment with our medical advisor who understands the medical jargon and medical reports the client has. He will also ask some questions like, “which hospital and/or doctor did you last go to”, “What was the initial diagnosis”, and “Do you have any countries, doctors, or hospitals that were recommended to you by anyone (friend, doctor….)”. The medical advisor will either ask for more tests or write a simplified report and hand it over to the travel advisor.
Following this step, the client will be shown different brochures, which they are allowed to keep, it will explain the different processes which they will go through. After this introduction the client will be appointed to a travel planner who will begin to suggest doctors, hospitals, and countries within the price range, availability, and the medical condition of the client. The customer will choose everything and the team will be responsible to fulfilling the customers needs.
1.3 Need for business
Medical tourism is an emerging market as more and more people realize that it can be cheaper and more reliable to get treated in a different country. MediGlobe will be tapping into this market as it will be offering Egyptians the opportunity to travel overseas to obtain dental or medical services in another country and helping them in every way to meet their budget and get the best possible treatment for their medical issue. MediGlobe will also offer the customer an alternative when his illness is not treatable in Egypt. We will help him travel abroad to get the treatment that is not available here.
1.4 Current trends in business
It is noticeable that people are looking for the easiest ways to satisfy their needs. They like to have their needs met in the most convenient way possible, with the least steps and procedures. Looking around us, we can find the spread of the delivery and online stores and applications that saves people time and effort. When people find out they have to have an operation that is not offered in Egypt and that they have to travel, it can be overwhelming for them. They could choose to arrange everything by themselves, but since the trend of the market is the convenience and comfort of the customer, they will be willing to try our service. It will save them time, money and effort. MediGlobe would arrange everything for them; they would not have to worry about anything in their trip from the doctor and the hospital to their accommodation and plane ticket. We offer them all these services in one place, they do not have to go through a lot of procedures. All what they would need throughout their trip will be organized and planned.
2.0 Industry Analysis
2.1 Description and analysis of the industry
The medical tourism industry is a very large informal industry that is growing at an exponential rate with each passing year. All ages and genders seek this service, but cannot find the proper organization that can fulfill their requirements. The market is currently valued at approximately $61,172 million, and expected to grow about one and a half times its current size.
It is an informal, mainly online, market that has grown so large, countries like the United Kingdom, are planning on banning it. The market is highly driven by its ability to provide patients with affordable and accessible health care from places all around the world.
2.2 Major competitors and industry size
MediGlobe will be focusing on a niche market of people who need to travel abroad to find treatment they did not find in Egypt. Thus our competitors are few in numbers. We do not have a direct competitor in Egypt. However, we do have competitors online that provide the same service as we do. Our main competitor is Medigo, an online website that also helps its customers find treatment in other countries.
2.3 Expected response to entry
It is unlikely that any competitor would be responsive to MediGlobe’s entrance to the market, this can be due to the underestimation of the market size by the competitors, and the excessive costs that would be required to advertise in the region making a barrier to entry. It would not be cost-beneficial for them to try and enter the market right after us, and as a fresh start-up, the element of risk is quite large, and competitors are likely to prefer to wait out the initial phase to see what the business becomes and how much it will grow. It may be likely that no one becomes aware of MediGlobe’s opening since marketing will only be focused on the Egyptian region and selected target segments.
2.4 Industry’s opportunities and threats
The medical tourism industry is a very large one, despite of how modern it is. Like any other industry, its opportunities and threats are many.
The market in Egypt is non-existent, and very few people have actually heard of medical tourism. Being the first to introduce this into the market will give us a competitive advantage with our customers and consumers in general as it will be what every emerging similar business will be compared to. The industry also has a large room for expansion, as more and more services can continuously be added, and as long as the basis of the actual service exists, no one will be missing on anything, but will only have added value to their service. It is also currently an informal market that we will be able to formalize and take advantage of, and be well accepted by the local and international governments.
Threats are also present in the industry. These include the existence of very strong competitors worldwide; consumers will start researching as they get to know about our service and may head to them as a result. Another threat is the difficulty existing in reaching all the hospitals required and ensuring they will be available for such a small start-up at the beginning.
2.5 Porter’s five forces
2.51 Threat of new entrants:
Since the medical sector is profitable especially when talking about operations done abroad, there can be a threat of new entrants to our business. On the other hand, this can be somehow offset by the barriers to entry in the market. For example, the high cost and long time for collecting the data base of hospitals and doctors outside of Egypt and what type of operations they offer. In addition, the barrier new entrants may face; is that we provide customers with the convenience of having all the services they want through only one place. We help them find where the surgery they need is done abroad, connect them with the hospital and surgeons as well as the accommodation in the country they are traveling to.
2.52 Threat of substitutes:
The substitutes to our service, MediGlobe, would be for people to seek treatment in Egypt itself, which may be extremely expensive with a low chance of success, and/or death. when they do not find the appropriate treatment within their given period of time in the country. These substitutes will not be quite effective, and would not necessarily benefit the sick people, we have a high chance of success and profits will likely skyrocket. Our offerings of acquiring visas, great doctors and decent hospitals in different places around the world for custom prices is what makes it hard for people to try to turn to any substitutes.
2.53 Rivalry among existing firms:
While there are no competitors in the Egyptian market thus far, this gives us the advantage of being able to diversify into the market and have the upper hand. There is, however, a variety of websites on the internet that offer this service at a discounted price when compared to personal travelling. The problem is, some of these websites are quite established and offer very high discounts. However, our competitive advantage is being on ground in Egypt itself and having our service offered in Arabic, unlike websites that are mainly in Egypt, offers us a larger target segment in the country itself, where many of those who speak just Arabic find themselves under privileged when requiring such a service.
2.54 Bargaining power of customers:
Since our customers do not have many alternatives their bargaining power for our service is relatively low. In addition, the field we are operating in (health care) somehow has low price elasticity. The unique value proposition we are offering to our customers provide us with an edge over their pressure.
2.55 Bargaining power of suppliers:
Our potential suppliers are the hospitals, surgeons, hotels and airlines we are dealing with. Since the services we are providing is not associated with one consistent supplier the bargaining power is very low. we look for the best hospitals, surgery centers and clinics worldwide so that we have huge alternatives to look for.
3.0 Market Analysis
3.1 Target market / customer profile
Although MediGlobe services are essential and can have huge demand, it is not affordable for everyone. In order for us to have the maximum profit and be able to serve our customers efficiently, we are going to targeting a certain segment in the market. Since operations done abroad can be very expensive, we are targeting a niche market. Our aim is to reach those who are looking for convenience and do not want to go through the hustle of looking for hospitals, booking hotels and plane tickets in exchange for certain fees. Since our business’ resources are still limited as we are still starting up, we chose to target a small concentrated market and go after a large share in it. This niche market is characterized by some features.
3.11 Geographic:
We are targeting the residents of Cairo. Since our starting team is small, we offer customers face to face appointments. On the other hand, our plan is to expand in other governorates after three years.
3.12 Demographic:
The target age group will be 40 above, those are the target age that usually demand the type of surgeries we are offering. Their income level should be 20,000LE per months or above to be able to afford our services and the operations done abroad. Regarding the gender our service is targeting both genders.
3.13 Psychographic:
We are targeting mainly an A class customer with higher education so they can afford our service and to be able to understand the procedures and operations they are going through.
Finally, we can say that when segmenting the market MediGlobe does not rely on one segmentation strategy. We rely on multiple segmentation bases in order to achieve the maximum knowledge about our customers and be able to serve them efficiently.
3.2 Demographic characteristics of market
The Egyptian population’s size is 104 million, with a ratio of 1.05 males to every female. 47.6% of the population are above or equal to the age of 25, and the remaining are below that age. The birth rate is 6.45 times that of the death rate, showing a high potential growth in population. The large Cairene state, consisting of both Cairo and Giza is about 18 million people. This heavy population density in Cairo allows for a wider market segment than may be anticipated in other major cities in the world. The latest measured health expenditure as a percentage of GDP is 5.6%, indicating low research and development in the health sector that widens the gap for us as a business.
3.4 Competitive advantages
In order to reach any organization’s goal, which is maximizing profit, this business needs to recognize and capitalize on its competitive advantages. Our main competitive advantages are: one on one meetings, our service process, database, discounted prices, becoming a formal business, and website.
A well organized, and easy to access database is a competitive advantage. Our database will be inclusive of all the doctors, hospitals, and countries that a customer can visit for medical treatment. As a result, when a customer knows that they have a variety of options to choose from, in most cases, they will feel that we are a professional organization that has done their research making us more trustworthy.
The other competitive advantage is our website. This website will be the sources of information and source of communication in case a customer lives far away, for example 6th of October, outside Egypt, or who wants to gather more information. As a result, customers will feel more comfortable dealing with us as they will be able to reach any information at any given time. Also, we will be able to compete internationally as anyone from around the world will be able to reach us.
As we do not have office space, it will be very beneficial to have one on one meetings with our customers. Our customers might have questions which they are more comfortable to ask to a person instead of a website, or they might not be able to articulate exactly what they want, so these meetings will be very beneficial. During these meetings our representative will briefly explain what is it we do as an introduction to ease the client and make them feel comfortable. Following this introduction, the representative will open the floor for any questions the client might have.
A well-organized service process can be considered a competitive advantage. Our service process will be as explained in the introduction. This process will give the customer the impression that not only we are professional, but also that they can trust us with their money and health.
In addition, we will offer discounted prices. These prices will include hotels and plane tickets. To reach these discounted prices we will have collaborations with some of the previously mentioned airlines and hotel services. When seeing and comparing these prices, our clients will be encouraged to use our service.
Finally, one of our main advantages is that we will be formalizing an informal market. Many people travel to the UK for example on a tourist visa then get free medical assistance. Using our service those people can go through a formal way of getting medical care.
3.5 Size and characteristics of market segment
The target age group will be 40 above, those are the target age that usually demand the type of surgeries we are offering. Their income level should be 20,000LE per months or above to be able to afford our services and the operations done abroad. Regarding the gender our service is targeting both genders.
3.6 Competitor’s positioning
Our Main competitor is MEDIGO,
3.61 Advantages:
1. They provide 24/7 online service
2. They have recommendations from well-known figures and international accreditations.
3.62 Disadvantages:
1. They don't provide the two-way interaction/recommendations with doctors
2. They don’t provide the face to face meeting we’re providing to our customers
MediGlobe has a competitive edge; is that we provide the visas, flight and hotel bookings at discounted prices, MediGlobe provide second opinion, where we will have two-way interaction and recommendations from doctors, they will recommend us to patients those medical case cannot be treated in Egypt, and we will recommend them if the patient’s case doesn't require to travel abroad. MediGlobe will be able to overcome the trust issue that customers have when dealing with online websites, as we will provide them with face to face meeting after signing up on our website. When it comes to the recommendations and accreditations we’re still launching our business, so we still don’t have accreditations, but we will do our best to achieve this.
4.0 Management Plan
4.1-Responsibility of the owners
The Owners of the business will act as managers and coordinators. This will be during the first five years. Then as the company grows, we will transition to a professional management team and we will act as shareholders only to ensure business sustainability.
4.2 Opening hours of the business
The business will not have a fulltime office and mostly will be run from the owner’s homes. Therefore, we will not have a formal hour’s schedule, but work as required by our responsibilities. However, the general working days are Sunday through Thursday.
4.3 Employee positions
We will not employ any personal except a part time medical advisor.
4.4 Form of ownership
The shares will be divided equally among the 6 owners of the company.
4.5 Organization Structure
Founder
Job Title
Ibrahim Youssef
Sales Director
Sherouk Abdelghafar
National Communications Director
Menna Ateya
Accounting and Marketing Director
Ashraf Youssef
Visas and Logistics Coordinator
Jana Harraz
Travel Planner
Tasneem Ali
International Communications Director
4.6 Management’s qualifications
The MediGlobe team is going to be divided into six managers, each responsible for an aspect of the process. We will not have an office or any full time employees. This is to reduce our startup and running costs.
4.61 Ibrahim Youssef
Degree in marketing from the American University in Cairo with 3 years’ experience in sales
4.62 Sherouk Abdelghaffar
Business major from the American University in Cairo and 2 years’ experience in operations and communication
4.63 Tasneem Rabie
An economics major from the American University in Cairo with 4 years’ experience in an international tourism agency.
4.64 Jana Harraz
An average of 4 years in the field of travel agencies, a business graduate of the American University in Cairo.
4.65 Ashraf Youssef
An Engineering degree from the American University in Cairo, with 3 years of experience in logistics and management.
4.66 Menna Ateya
With a degree in marketing from the American university in Cairo with 2 years of experience in marketing and finance.
4.7 Marketing strategies
We will use several methods to market our business. First, we will use word of mouth strategy which means when one customer finds our service helpful, they felt it was really useful experience and we fulfilled all our promises, they will tell other people about us and how well their experience was. Another marketing strategy we will use is forming adds on applications as Facebook and Instagram. In addition, we will go to doctors specialized in the surgeries we help in performing and explain our service and ask if they can recommend us to patients that doesn't have a cure here in Egypt. Another method of marketing strategy we will use is renting small booths in hospitals and medical centers and explain more to people who we are and how can we help them.
4.7 Other stakeholders
Partners and investors
MediGlobe is proud to be supported by world-known investors and to work with established partners to improve access to healthcare around the world.
4.71 Partners:
1. Egypt Air
2. Booking.com
3. Trip Advisor
4.72 Investors:
1. Doctors
2. Potential investors
4.8 Professional service firms
We are expecting that after the growth of our business we will need to partner will some professional service firms that offer management as well as legal services. These firms provide services in different fields. They could be very helpful in our expansion phase, as they would provide the necessary advices needed for the success of our business.
4.81 Strategy consulting
Strategic consulting is one of the most important things for a business to compete in a dynamic marketplace. It is better to leave it to the professional like Logic and McKenzie consultant companies to do. However, as a small company we will be conduct meetings every 3 months in order to discuss the changes that happened to the market, the threats of competitors, the opportunities we are missing and the competitiveness of our business.
4.82 Accounting firms
They help with financial tracking and reporting processes. Additionally, they assist us improve our compliance rates and improve cash flow by optimizing our billing or payment processes and policies.
4.83 Law consulting firm
The key role of the lawyer as a business consultant, is to ensure that our strategies and plans are legal, and that documentation required to implement that strategy is correctly prepared, filed and approved.
4.84 Marketing research firms
These are firms that have expertise in the Egyptian market and will provide valuable information on the size of our segments and how we can target them.
4.85 HR consulting firms
Firms like Aspire and Target, these firms help its customers organize its management teams as well as recruit high level employees.
5.0 Marketing Plan
5.1 Place
We will start as a website but we’re planning to expand to have our own office. Since MediGlobe is targeting a very niche market, therefore our office will be in Heliopolis; the location is very prestigious, providing high visibility and a high flow of our targeted customers. Accordingly, the rent that was accounted for in this plan is higher than in other areas of the city. The office will be conveniently located just minutes from Cleopatra Hospital (Prestigious Hospital), which provides high quality of healthcare to first-class citizens.
Other advantages of the chosen location include:
• Proximity to prestigious residential area
• Plenty of parking areas and garages
• Excellent central location with easy access to major destinations and freeways
• High profile area with easy access from all parts of town
• All utilities required for operating are available nearby.
All these characteristics of the location are consistent with MediGlobe’s goal of
providing excellent service to our targeted customers.
5.2 Pricing plan
Our service is divided into 2 segments, one for those travelling abroad for surgeries, and another for those staying in Egypt. Since the latter will require cost, time and effort, which is required for getting visas, booking flight tickets and hotels, as well as coordinating with the hospital for the surgery, it will be more expensive than the former service. We will have a fixed fee set for both:
Travelling abroad: LE10,000
Staying in Egypt: LE2,000
Considering we are targeting a niche, upper class segment with high levels of income, our prices are justified by such. This means we will be using the ‘value-added pricing’ strategy since our prices are justified by the quality, and unique service we are offering. Medical advising, any extra future service like airport taxis or the deduction of any service not needed may affect the price in either as a positive or negative addition to the fixed prices. However, the changes will not be very large and therefore will not heavily affect our net income, since each customer is going to balance the other in terms of price. Payments will be 50% made up front by the customers in order for us to have a satisfactory cash flow to be able to complete the required transactions for the customer.
5.3 Distribution channels
Our services will reach customers in several ways. The first one will be through booths in hospitals and through well-known doctors that will recommend us to patients who need to travel to get treatment. The second one will be through direct contact with the customer in his home or in the place he chooses. This is to lower costs and avoid having an office with high fixed cost.
5.4 Promotional activities
For the past five years’ social media has grown exponentially making it a very fertile land for attracting customers. This marketing platform has helped many startup companies as well as assisted in the growth of established companies. Therefore, it makes sense for us to take advantage of such a podium.
According to Adweek.com Facebook and Instagram are the most used social media platforms, with 1.59 billion and 400 million users respectively. Such promotional mediators would have a huge impact on any business if utilized efficiently. Thus, we cannot pass such an opportunity making us focus on social media to reach the widest amount potential customers in a short amount of time.
Our promotional strategy is going to also depend on the word of mouth. This promotional technique is going to be a vital variable in our success as a team. The main conductors behind the word of mouth are going to be doctors and social media users. The use of doctors in our promotional plan is key. We are going to ask these doctors, who are orthopedics and specialize in general surgery, to recommend us to clients who need surgeries that are not operated in Egypt. In return we are going to recommend clients to these same doctors who we think could have their surgeries operated by these Egypt.
When it comes to social media users we could still benefit from their word of mouth for our promotion. We were all put in a position where we have seen something interesting on social media and decided to share it on social media or personally, this is where we come in. In our strategy we plan not only to have social media users share and like our posts to spread the word, but to personally recommend us to any loved one if they feel that our service will be of service to that person.
5.5 Branding
Branding represents how the customer perceive us as a business. It focuses on the feelings of the customer about the services or product offered. Therefore, we are keen on delivering a strong genuine message to our customers. We are branding our business as convenient, safe and accessible. Convenient, as we will offer our clients all what they need through our website and our face to face meetings with them. Safe, because will are keen on searching for the best hospitals clinics and doctors abroad that have a great reputation and specialized in the type of operations our clients are looking for. More importantly is that our service is very accessible; our clients can easily open our website to get more information about what we offer and search for the hospitals and operations they need. They can easily book and appointment with our sales representative to have more information and start the procedures needed.
MediGlobe aims to have strong brand equity. we want our customers to think of how easy and manageable their lives could be when they try our service. In order for MediGlobe to position its brand in the clients’ mind, it always emphasizes on the competitive advantages it has.
5.6 Partnerships
MediGlobe will partner with as much hospitals as it can. We will be using the hospital platform to gaining more customers and patent who did not find the care they needed. As well as helping hospitals abroad gain more customers who require their services. Moreover, we will be partnering with medical centers and clinics for the same reason.
Hospitals such as:
Cleopatra Hospital
Egypt Air Hospital
Saudi-German Hospital
Dar El Fuad Hospital
6.0 Operations Plan
Our mission is to connect patients with hospitals abroad and to support them on their journey to better health. We believe that well-informed patients make better healthcare decisions.
In order to fulfill these requirements, we must have a clear plan that the team can carry out.
6.1 Doctor
We will have a team dedicated to contacting doctors outside of Egypt. This team will gather information and prices of these professionals. The head of this team will be Sherouk Abdelghaffar and Tasneem Rabie. When the customer requests a doctor to do his operation, the travel agent will contact them and find multiple doctors who are specialized in patents illness. The travel agent will contact the doctor's office to check availability and ask if any further information is needed from the patent.
6.2 Hospital
The medical team will also be responsible to gather information and prices for hospitals based in different countries. When the customer asks for the hospital to do his operation, the travel agent will open the database and contact the hospitals near the doctor's location and get their latest prices.
6.3 Visa and Travel Permissions
When the location for the operation is set. The travel agent will contact the local embassy for that country and ask for the required documents and forms to be completed. The customer will then be informed of these items and asked to quickly finish them with our Visas department.
6.4 Flight and Hotel
The travel agent will be responsible to book the flight, hotel and any transportation needed by the customer using the many travel websites like Expedia, Trivago or Airbnb.
6.5 Technical Requirements
Our needs will be simple. Computers with Microsoft office and internet with additional office equipment like printers and scanners. When we open our first office, we will invest in an ERP system that will be customized to follow the customer from registration till the end of the service.
7.0 Financial Plan
7.1 Start-up Costs
Company Website
1000USD x 20LE = 20,000EGP
Logo Designs
400USD x 20LE = 8,000 EGP
Legal Fees
10,000EGP
Total SU cost
38,000EGP
Remaining Cash
22,000EGP
7.2 Assumptions
7.21 Capital:
Each member will contribute 10,000 EGP and the rest will be collected through government loans (SMB Loans) with 5% interest rates.
7.22 Sales estimate for the next three years (in customers):
Quarter
Year 1
Year 2
Year-
Total
13
20
26
7.23 Product Price:
The price for our product is 10,000 EGP/customer. This will be a fixed fee, half will be paid as down payment upfront and the other half will be paid before the patent leaves Egypt. The customer will pay for all his costs as requested by our representatives (Ex. plane ticket, hospital payment … etc).
7.24 Salaries:
Medical Advisor (part timer): 6,000EGP
7.25 Extra Revenue
If the MediGlobe finds a professional in Egypt who can perform his procedure. The customer will pay 2000EGP and not proceed with the rest of the service. This will not be take into account in the financial statements as this is not considered our main revenue stream.
7.3 Breakeven analysis
The horizontal line is the total cost in a period of 3 years. The reason that the TC is a horizontal line is because the cost structure of our company does not have variable costs. No matter if we have 10 customers or zero, the cost that we will incur will be the same.
The breakeven point will take place in the beginning of the third year at the quantity of 55 customers.
7.4 Financial ratios
Year 1
Year 2
Year 3
Profit Margin
-
ROE
-
Return on Asset
-
Quick Ratio-
Current Ratio-
Asset Turnover-
Working Capital-
Debt to Equity-
7.5 Balance Sheets
MediGlobe Egypt LLC
Balance Sheet
December 31, 2018
Assets
Liabilities
Cash
12800
Notes Payable
9600
Company Website
20000
Interest Payable
480
Legal Documents
10000
Total Liabilities
10080
Branding
8000
Equity
Capital
40720
Total Equity
40720
Total Assets
50800
Total Liabilities & Equity
50800
MediGlobe Egypt LLC
Statement of Owner's Equity
For Year End December 31, 2018
Account
Amount
Capital
60000
Net income
-19280
Sub Total
40720
Withdrawals
0
Total
40720
MediGlobe Egypt LLC
Balance Sheet
December 31, 2019
Assets
Liabilities
Cash
28000
Notes Payable
10080
Company Website
20000
Interest Payable
504
Legal Documents
10000
Total Liabilities
10584
Branding
8000
Equity
Capital
55416
Total Equity
55416
Total Assets
66000
Total Liabilities & Equity
66000
MediGlobe Egypt LLC
Statement of Owner's Equity
For Year End December 31, 2019
Account
Amount
Capital
40720
Net income
14696
Sub Total
55416
Withdrawals
0
Total
55416
MediGlobe Egypt LLC
Balance Sheet
December 31, 2020
Assets
Liabilities
Cash
71200
Notes Payable
10584
Company Website
20000
Interest Payable
529.2
Legal Documents
10000
Total Liabilities
11113.2
Branding
8000
Equity
Capital
98086.8
Total Equity
98086.8
Total Assets
109200
Total Liabilities & Equity
109200
MediGlobe Egypt LLC
Statement of Owner's Equity
For Year End December 31, 2020
Account
Amount
Capital
55416
Net income
42670.8
Sub Total
98086.8
Withdrawals
0
Total
98086.8
7.6 Income Statements
MediGlobe Egypt LLC
Income Statement
For Year End December 31, 2018
Revenue
Amount
Total
Service Revenue
130000
Total Revenues
130000
Expenses
Office Supplies-Expense
-12000
Salary Expense
-72000
Marketing Expense
-36000
Maintenance Expense
-28800
Interest Expense
-480
Total Expenses
-149280
Net Income
-19280
MediGlobe Egypt LLC
Income Statement
For Year End December 31, 2019
Revenue
Amount
Total
Service Revenue
200000
Total Revenues
200000
Expenses
Office Supplies-Expense
-12000
Salary Expense
-72000
Marketing Expense
-72000
Maintenance Expense
-28800
Interest Expense
-504
Total Expenses
-185304
Net Income
14696
MediGlobe Egypt LLC
Income Statement
For Year End December 31, 2020
Revenue
Amount
Total
Service Revenue
260000
Total Revenues
260000
Expenses
Office Supplies-Expense
-12000
Salary Expense
-72000
Marketing Expense
-104000
Maintenance Expense
-28800
Interest Expense
-529.2
Total Expenses
-
Net Income
42670.8
7.7-Cashflow Statements
MediGlobe Egypt LLC
Statement of Cash Flows
For Year End December 31, 2018
Cash Flow from Operating Activities
Net income
-18800
Cash used in operating activities
-18800
Cash Flow from Investing Activities
Cash Flow used by investing activities
0
Cash Flow from Financing Activities
Borrowings of long term debt
9600
Cash used by Financing Activities
9600
Net increase in cash
-9200
Cash at beginning of the year
22000
Cash at the end of the year
12800
MediGlobe Egypt LLC
Statement of Cash Flows
For Year End December 31, 2019
Cash Flow from Operating Activities
Net income
15200
Cash used in operating activities
15200
Cash Flow from Investing Activities
Cash Flow used by investing activities
0
Cash Flow from Financing Activities
Cash used by Financing Activities
0
Net increase in cash
15200
Cash at beginning of the year
12800
Cash at the end of the year
28000
MediGlobe Egypt LLC
Statement of Cash Flows
For Year End December 31, 2020
Cash Flow from Operating Activities
Net income
43200
Cash used in operating activities
43200
Cash Flow from Investing Activities
Cash Flow used by investing activities
0
Cash Flow from Financing Activities
Cash used by Financing Activities
0
Net increase in cash
43200
Cash at beginning of the year
28000
Cash at the end of the year
71200
8.0 Growth and Expansion Plan
As MediGlobe becomes a well-known brand and its revenue rises and out cash flow increase. We will first expand our operation by hiring employees and travel agents who will replace the founding members. Furthermore, after perfecting our operation and business plan, we will branch out across Cairo and Egypt providing our services to different residents. After that we will expand to different countries in the middle east like Saudi Arabia and Dubai.
8.1 Three – five years
In 3-5 years, if MediGlobe finds success in with its service, we will hire more employees who are professional and capable of meeting and exceeding customer needs. They will be sent for training on a monthly basis to stay competitive and will be offered a high salary to avoid brain drain. Furthermore, we will open our first branch/office in Heliopolis with meeting areas and offices for employees and managers. The goal is to build a professional business that does not relay on its founders for assistance.
8.2 Five – ten years
Branch out to different areas in Egypt like Alexandria and Giza in order to reach a wider audience and scale our business. These branches will report to the head office in Cairo and submit their financials for follow up. It is important that we use management consultants and managerial experts to help us stay decentralized and not a large inflexible corporation.
8.3 Ten plus years
After reaching success with our business model in Egypt. We will branch out to different countries in the MENA region like Dubai and Qatar. These are huge opportunities with an extremely rich population. Market research will be done for each country in order to identify the customer and meet their needs. The MediGlobe corporation will aim at becoming a large franchise like Travico with high level management and with high profitability.