Creating a Business Plan Project: Part 2 In this second and final portion of the project, you will create the remaining portions of your business plan and complete a capital budgeting plan. Your plan

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Student Name

Institution

Instructors Name

Due Date

Business Plan

Executive Summary

DBC Healthcare is a new medical supplies delivery company. We want to make it easier for hospitals, doctors, and clinics to get medical equipment and products. Right now, it can be hard and expensive for healthcare places to get the supplies they need. DBC Healthcare will organize delivery of supplies so things are brought on time and costs less. Our goal is to help lower prices for patients and let doctors and nurses spend more time helping people. We will work with 15 companies that make supplies and 15 healthcare locations in our first year. We want to do over 500 deliveries each month. Our service will focus on bringing supplies between certain hours each day and having flexible routes to make drops off. This will make DBC Healthcare different than other options for getting medical supplies.

Business Description

DBC Healthcare will be formed as a limited liability company. The market for transporting medical supplies is substantial and continues expanding as more people require healthcare services. As co-founders, John and Susan each have greater than ten years of experience working in healthcare logistics. They have extensive knowledge of delivering supplies between manufacturers, hospitals, clinics, and doctors' offices. With their experience and leadership, DBC Healthcare is well positioned for success in this field.

Goals for the first year of business include developing partnerships with fifteen companies that supply medical equipment and products. These supply partners will provide the items needed to service clients. DBC Healthcare also aims to build relationships with fifteen healthcare facilities requiring delivery of supplies. The target is to complete over five hundred deliveries per month, helping move materials where they are needed efficiently. Key customers will include hospitals, doctors' offices, and medical clinics seeking more affordable and effective supply transportation options (Kulkov, 2023). John and Susan plan to distinguish DBC Healthcare by concentrating on offering flexible delivery windows every day of the week. Customizable routes will allow attending to specific client needs. This specialized approach is what will set the company apart from competitors.

Time Value of Money

The idea of time value of money means that a dollar today is worth more than a dollar in the future. This happens because of interest, inflation, and investment returns changing the purchasing power of money over time. For DBC Healthcare, understanding the time value of money principle will be important. Early on, the company may need to take out loans to pay for trucks and other startup costs. Knowing that money available now is more useful than later helps in loan decisions.

Maximizing the time value of money can assist DBC Healthcare in several ways. It allows obtaining financing needed to purchase vehicles and equipment to begin operations. Any profits made can be reinvested in expanding the business instead of sitting idle. As the company grows, reinvesting returns promptly permits compound growth. Time value of money also influences managing cash flow and accounts receivable. Ensuring swift collections from clients and paying invoices on time helps capital cycle productively (Nurmaxamadovna, 2021). Applying the time value of money concept will aid DBC Healthcare to start up and develop more quickly than competitors who do not leverage it. Faster growth leads to increased market share and profits in the long term.

Financial Tools

The income statement is important for DBC Healthcare to use. It shows revenue earned from deliveries and expenses spent like vehicle costs. Comparing income to expenses each period shows profit made. This allows the company to set budgets and see if goals are reached. The balance sheet also helps. It lists assets owned, like trucks, and debts owed, like bank loans (Kulkov, 2023). Careful asset and debt management ensures solid finances.

The cash flow statement tracks money coming in and going out. For a delivery business, cash is key. It shows if there is enough to pay bills on time. The statement of retained earnings records if profits are reinvested in the company or taken by owners. All tools help monitor finances, but the cash flow statement is especially important for DBC Healthcare to review frequently to ensure delivery payments cover payrolls and fuel costs. Core financial ratios will also provide insights. The profit margin ratio checks revenue versus costs. The debt ratio measures risk level. The current ratio checks if short-term debts can be paid with cash or assets convertible to cash. These tools guide planning for long-term stability.

References

Kulkov, I. (2023). Next-generation business models for artificial intelligence start-ups in the healthcare industry. International Journal of Entrepreneurial Behavior & Research, 29(4), 860-885.

Nurmaxamadovna, G. S. (2021). Start-Up: Essence and Main Components of Development. Barqarorlik va yetakchi tadqiqotlar onlayn ilmiy jurnali, 1(6), 264-270.