ADVICE TO SMALL BUSINESS OWNERS
ADVICE TO SMALL BUSINESS OWNERS
DEMI Consulting Process in "Creating or Expanding a Business"
Our client has identified a business opportunity in the Bioresonance field to provide bioresonace devices to health care professionals and to the patients for self use. ABC Inc. is the business that will address this opportunity. NeuroFeedback therapy and other related products that also enhance one’s life style and health are other opportunities that ABC Inc. will address. Our process in new business engagements is to perform a project overview by first obtaining details from the client on the work they have done to this stage and find out why they think this would be a profitable business. We then working with the client to create a model of the company using assumptions obtained from preliminary research. Based on the information and conclusions from the project overview the feasibility study may be performed.
BioResonance Therapy (BRT) is a painless and quick method of testing and treatment that offers the possibility of specifically treating all kinds of diseases successfully. BioWellness Inc. provides the devices and software used in BRT.
Project Overview Stage
Based on the information obtained from the client and preliminary research on the sector and competitors the following information, business overview and business model was developed. The financial information has not been shown for this public web site. For those that may be interested in learning more about this opportunity please contact us.
Motive to create the Business.
The primary reason for setting up the company is to earn a living in an environment where one can be creative in how to operate and where there are no limits on personal and financial growth. The focus on health care devices serves two purposes being helping those that need specific healing that may not currently have access to the therapy or procedures due to cost and the need to go to health professional faculties. Another motive is to grow the company employing many employees with the facilities but through the UK and Ireland and eventual globally.
Client’s Sales Projections
The following information is based on the company being self funded with limited financial resources except for a government start up grant of £xx. Reasonable expectations regarding staffing is that in the first 6 months all staff will be on a part time basis as the need arises. The company forecast growth is initially xx devices monthly and after the first 3 months growing to xx devices monthly over the next 12 months. At that stage the company will need 2 in-house staff and up to 8 distributors or sales agents within London and the rest of the UK and Ireland.
In reviewing the inhibitors of success one was the geographic location of the sourcing of some components therefore to overcome this inhibitor the company will assembly all electronic health care devices initially the resonance device in the UK. The devices internal components will be purchased in manageable bulk. New device components will be assembled with different skins and design covers to appeal to the market place. The company's branding and labels will also be applied. As part of the assembly process specific software for specific clients or generic markets will be loaded to the devices. Finally all devices will be tested to prescribed standards before boxing and wrapping. All products we sell will be assembled and distributed in the UK and sold under the Company's brand. We will continually be abreast of the sector to identify new products and therapy requiring our current or new devices.
Management and Staffing
Initially the management and staffing structure is very simple the owner until volume increases to the levels previously mentioned then most in house duties will be allocated to staff and the owner will be seeking new products and markets while managing operations. In areas where subject experts are required in operations, procurement, quality control and marketing and sales external resources will be contracted using project budgeting and management.
The market falls into three categories. Patients, the ones that want to purchase directly for their own personal use. In addition Health and Physical Fitness professionals that use the devices for patient therapy in their facilities or to resell to their patients. The last market is to company's resellers and agents with in the Company's distributor or agent program. The geographic market at the start will be the UK and Ireland. Currently the market has competitors that provided devices and support to health facilitates where patient have to attend regular therapy sessions at the health professionals facility to continued therapy. BioWellness Inc. provides hand held devices that the patient can purchase and easily use the device themselves.
Following are the list the main aliments or sicknesses that the device with the applicable software can assist in healing; The list consists of 11 ailments and are available upon request.
The following information is based the knowledge of the client who is familiar with the sector and the competition. The financial projections at this time are limited to the initial devices being marketed. The retail prices of the products with specific software range from £xx up with an average of £xx.
In assessing projected costs of the business to be financially successful under the current financial resources at start up the company needs and average profit margin per Bioresonace device of £xx. To accomplish this profit margin the following costs must be attainable. The procurement costs of the preassemble must be £xx or less. Internal assembly, skin and shell costs as well as software including assembling labor and direct overhead would result in the cost of goods sold must not exceed £xx. The gross margin of the device must be £365 or less. Assuming an average reseller commission of £xx per unit and 50% of all sales through resellers the average profit margin per unit before owners drawings must be £xx or greater.
Based on the assumptions of projected volume, pricing, margins and the sales start date no later than January 2019, the revenue for the first 12 months would be £xx with profit before owner drawings of £xx. The revenue for year 2 would be £xx with profit before owner’s drawings of £xx. These numbers are dependent on current assumption of market, external business environment and limited start up funding of £xx.
Feasibility Study Stage
DEMI Consulting is now working with the client assessing the Project Overview Stage information. The client wants to proceed to the feasibility stage. The client has decided that they want the company to grow significantly larger than envisioned so the feasibility stage will include setting a target of obtaining a percentage of the market share in the UK and Ireland of Bioresonance devices and expand to the EU and globally. With the enlargement of the vision there is a need to obtain additional financing. The client has asked for a financing proposal to prepared after the feasibility stage based on the results of the study.
The first step in the feasibility stage is to verify all assumption reflected in the project overview. The feasibility stage encompasses many of the essential components of the financing and business plan with the addition of continually review new information to determine if the project remains feasible.
DEMI Consulting Process
The project provides an overview of the first stage of engagement process. Each engagement is different and the process is customized to each client. For more information please contact us.