Managing Human Capital and Entrepreneurship - Free Essay Example

   MANAGING HUMAN CAPITAL AND ENTREPRENUERSHIP Business Plan Proposed Business E-z, Inc. creates a course which gathers as well as reviews all of the crucial aspects of information necessary for governmental confirming reasons. The program is actually easy to use, creates much better reviews compared to the majority of the well-liked applications being used, as well as affordable ($500 permit charge, $125 monthly maintenance). E-z is actually constantly obtaining new clients: E-z suggests in order to update its software program to use with the addition of substantial performance, integrating extra functions through obtained businesses, proper alliances, as well as company companions, as well as keeping its simplicity of use as well as exceptional confirming procedures to produce E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s Enterprise Software program Answer, an overall total software program means to fix handle each and every company fine detail from the long-term treatment supplier. The actual Business Software program Answer is going to be much better than something curre ntly available as well as price the small fraction associated with the other applications can sell with regard to. The typical permit charge is going to be regarding $1, 000 and also the typical month-to-month upkeep regarding $500. Market The populace is actually getting older, as well as increasing numbers of people you live lengthier, also it may carry on this way for many years in the future. Its produced the powerful as well as developing marketplace for that long-term treatment supplier, and something by which practically a large number of information components tend to be gathered, documented, examined, as well as employed for info to supply sufficient ongoing treatment, assistance governmental compensation costs, handle stocks as well as monetary finances, monitor drugs, and several additional utilizes. You will find around eighteen, 000 long-term treatment companies in america, as well as every should devote a lot of time in order to accumulating as well as documenting this particular information. Software program designers possess produced applications in order to catch the majority of the information. Most of the applications which perform properly are extremely costly; the program permit price through $1 0, 000 in order to $15, 000 as well as month-to-month upkeep costs vary from $1, 000 in order to $1, 500. A few of the applications tend to be more affordable, however possess restrictions within performance as well as simplicity of use. Funding E-z is actually looking for $750, 000 to aid operating funds needs in order to update its software program, set up its workplaces as well as payroll, as well as operate its product sales as well as advertising strategies. Absolutely no extra money is going to be needed, which is anticipated how the whole expense is going to be retrieved in under 2 yrs. All of us think we are able to catch a minimum of 10% from the long-term treatment supplier marketplace throughout the following 5 many years; nevertheless, the professional forma projections conservatively estimation the catch associated with under 6% from the marketplace within the following 5 many years may produce more than $7, 000, 000 within present property (cash as well as company accounts receivable) through the finish associated with 12 months 5. Keys to Success The keys to success for E-z are: Investment finance in order to update software program in order to Home windows atmosphere as well as include performance in order to improve functions, improve performance, as well as provide the value-added item which creates financial savings with regard to clients which much surpass the merchandise price. two. Intense advertising in order to expose long-term treatment companies towards the substantial cost/benefit benefits of E-z.Three Item high quality, simplicity of use, world-class customer support as well as assistance. four. Cost competition. Company Ownership E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s Leader as well as Main Working Official, Ken Smitzhe is the owner of 30% from the gives. The residual gives tend to be possessed through Tod Smitzhe (20%), Main Monetary Official, Leslie Smitzhe (20%), Overseer associated with Procedures, Little bit Smitzhe (20%), Overseer associated with Item Improvement, as well as Betty Smitzhe, (2%), Overseer associ ated with Item Improvement à ¢Ã¢â€š ¬Ã¢â‚¬Å" Grasp Hyperlink. 8% from the share is actually kept through the company. Company History Range Wellness Providers created the actual E-z software program within 1986 to deal with the requirements associated with long-term treatment amenities to keep some type of computer dependent healthcare information program which incorporated along with earlier variations from the MDS as well as study reviews. Within old age whenever HCFA modified MDS 1. 0 in order to MDS two. 0, Range improved the actual OBRA e-z software program in order to adhere to MDS two. 0 specs as well as enhance performance. Range offered just about all privileges towards the software program for an expense team within Might 2000. The actual expense team created the actual Subchapter Utes Company, E-z, Inc. within The month of january 2001. E-z, Inc. offers because elevated the client bottom through sixteen in order to 69 certified clients. Programs tend to be underwa y in order to update the actual DOS-based software program towards the Home windows system as well as include substantial performance which will produce the actual à ¢Ã¢â€š ¬Ã…“Enterprise Software program Solutionà ¢Ã¢â€š ¬Ã‚  thatll be an overall total turnkey program for that administration associated with long-term treatment amenities. Company Locations and Facilities E-z, Inc. offers business workplaces within Stamford Connecticut as well as a good procedures satellite television assist table within Macon, Atlanta. Products and Services E-z creates a good Business Software program Answer for that long-term treatment business constructed upon E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s effective motor associated with completely incorporated quests for that selection, confirming, as well as evaluation associated with MDS two. 0 evaluation information, citizen high quality indications, doctor purchases, admissions info, study as well as care-plan remedy information, along with a individual arranging component developed by MasterLink, a current purchase associated with E-zs. E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s smooth integration using its proper partnersà ¢Ã¢â€š ¬Ã¢â€ž ¢ items comprises E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s Business Software program Answer. The actual proper partnersà ¢Ã¢â€š ¬Ã¢â€ž ¢ items consist of illness condition as well as medication treatment administration (ICPS Group), the materials monitoring program (AIMS), the information financial institution with regard to individual healthcare information which comes after the actual HIPPA guideline (MedicalRecords. com), along with a monetary administration sales component made by MedEasy. As well as 24/7 help-desk assistance, E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s Business Software program Answer is really a total, turnkey administration info program for that long-term treatment business. Product and Service Description E-z offers a strong collection associated with items to handle every part from the long-term treatment service. The actual collection associated with items range from the subsequent: à ¢Ã¢â€š ¬Ã‚ ¢System MDS decorative mirrors federal government types à ¢Ã¢â€š ¬Ã‚ ¢Identifies finished parts of MDS, leaps in order to required area à ¢Ã¢â€š ¬Ã‚ ¢Automatically computes RAPs à ¢Ã¢â€š ¬Ã‚ ¢Creates Citizen Roster as well as Census Situation types à ¢Ã¢â€š ¬Ã‚ ¢Utilizes prior citizen particular info à ¢Ã¢â€š ¬Ã‚ ¢Exception Statement exhibits MDS background modifications in order to MDS Reviews: à ¢Ã¢â€š ¬Ã‚ ¢Completed citizen particular MDS types in addition to empty MDS types à ¢Ã¢â€š ¬Ã‚ ¢RAP reviews AREA RUG 3 reviews with regard to each Medicare insurance as well as Medicaid à ¢Ã¢â€š ¬Ã‚ ¢Resident Evaluation Tickler Checklist (showing past-due assessments) à ¢Ã¢â€š ¬Ã‚ ¢Numerous MDS queries reviews (including person described reports) à ¢Ã¢â€š ¬Ã‚ ¢Fully i ncorporated à ¢Ã¢â€š ¬Ã‚ ¢Look-up collection associated with medicines à ¢Ã¢â€š ¬Ã‚ ¢Phone purchases instantly revise current documents à ¢Ã¢â€š ¬Ã‚ ¢MARà ¢Ã¢â€š ¬Ã¢â€ž ¢s as well as TARà ¢Ã¢â€š ¬Ã¢â€ž ¢s tend to be user-definable to incorporate enteral urological purchases à ¢Ã¢â€š ¬Ã‚ ¢All types might be imprinted upon basic document getting rid of the actual higher price associated with multi-part types. Competitive Comparison The very best 3 rivals tend to be Accomplish, MDI as well as Keane. Licensing costs vary from $10, 000 in order to $15, 000 along with month-to-month upkeep averaging regarding $1, 500. Center marketplace options consist of Monnette Info Techniques, Mylex Company as well as Sophisticated Info Administration. Licensing costs vary from $8, 000 in order to $10, 000 along with month-to-month upkeep averaging through $1, 000 in order to $1, 500. Reduce marketplace options consist of RH Good, United states Healthtech as well as SOS. Licensing costs vary from $3, 000 in order to $6, 000 along with month-to-month upkeep averaging through $375 in order to $1, 000. The actual E-z Business Software program Answer includes all of the performance provided by rivals as well as the MedicalRecords. com collection associated with items and it is connections using the ICPS Team to incorporate the actual pharmacists within the health care formula. The cost is just $1, 000 licensing charge as well as $500 month-to-month upkeep. As well as the substantial cost benefit, E-z provides simplicity of use. The majority of rivals need services associated with through 2 times to some 7 days. The encounter may be which new clients may set up the actual E-z software program as well as on a single day time acknowledge the citizen as well as transfer the necessary information towards the condition. The 24/7/365 assist table can be obtained to help clients. A number of our clients have discovered by themselves; other people need minimal assist table assistance. Sales Literature We are building brand new product sales books to explain the actual E-z Business Software program Answer. The present emailing offers created superb outcomes. E-z software program is definitely an incorporated MDS/Care Preparing program with regard to long-term treatment companies. Particularly E-z fulfills just about all recommendations such as Activates as well as RAPS to organize the actual Treatment Programs. E-zà ¢Ã¢â€š ¬Ã¢â€ž ¢s program integration offers the person a genuine solitary admittance software program answer. Citizen information joined as soon as is actually instantly open to the areas. Just about all quests include pop-up home windows, producing E-z software program each price as well as period effective. Strategy and Approach to the Market E-z leave not move a status strategy to the market. We aspect everyone in the long-term fixing businessperson concern as latent customers. Our Task Software Solution instrument ply the needs of all long-term protection providers, both slender and bulky. Its a whole solution, cost trenchant, and its user-friendly features give significantly change fecundity in any surroundings. We module approximate the mart finished net, indication and shortest post publicizing, and outspoken happening. We are currently negotiating with digit of the most hot welfare tending sites on the net to permit an publicizing fastening to obraez.com: amda.com nadona.org achca.org ana.org ascp.com cna-network.org healthinaging.org ngna.org, and snalf.com These sites remove a lot of reciprocation from individuals in the long-term aid bourgeois manufacture. We give also advertise in the Unsound Point Bourgeois paid press. Although this publisher has a subscription cost, free subscriptions are provided to professionals in the long-term bourgeois manufacture. We testament point long-term protection providers with honest communication advertising and select up with income calls from our own marketing people as compartment as fissiparous resellers interested in commercialism our set. Financial Plan The mass business projections are based on hidebound sales forecasts by month for the succeeding xii months, and by year for the figure eld thereafter. We module act to delude the DOS-based MDS 2.0 production until Jan 2002 at which time we expect to acquire planning complete in the Windows surroundings for the Endeavor Software Whitener. Permission fees for the DOS-based creation instrument preserve to total $500 with monthly mending averaging $125. Kickoff in Jan 2002 we faculty delude the Task Software Solvent for an intermediate $1,000 permission fee and fair $500 monthly mending fee. We instrument change our DOS-based customers to the Enterprise Software Whitener at the total assess of 25 customers per period. The salvation fee leave be $500 and monthly fix thereafter will be $500. We wait to have all of our customers converted by June 2002. Information of protrusive income and conversions are included low the title Income Assumptions. The expenditure to rise the E-z DOS-ba sed syllabus to windows is estimated at $120,000 that instrument be travel over the prototypical dozen months. Upkeep instrument require some $24,000 per assemblage thereafter. The value to depute and compound the MasterLink software is estimated at $204,000 (open over the oldest xii months) with period repair of about $12,000 thereafter. Information of estimated costs are included under the title Expense Assumptions. E-z module generate dissentient income from July 2001 until Apr 2002 while engrossing the cost to upgrade software and travel signaling its income and marketing activities. We expect to be generating profits first May 2002 and every period thereafter. We present enjoin an initial investment of $750,000, all of which give have been recovered by the end of period two in cash (some $700,000) and accounts receivable (roughly $200,000). By the end of twelvemonth figure, we wait to possess exchange and accounts receivable aggregating writer than $7,000,000. Break-even Analysis The break-even analysis assumes functional costs of roughly $91,700 per month that includes brimful department (rectification and benefits), opening, utilities, supplies, income and marketing, grooming, and remaining miscellaneous costs. Versatile costs permit only those flat traceable to packaging and delivering the software production and are estimated to medium only around 10% of the certify income. The chart shows the break-even receipts is most $94,500 per month. Conservatively, we judgement that by May 2002 we faculty be coupling a minimum of 165 customers of $73,125 and authorization fees of $22,500. We gift someone crossbred the break-even taper in May and attribute gain thereafter. Pro FormaIncome Statements à ¢Ã¢â€š ¬Ã¢â‚¬Å" Year 1 by Month Jul Aug Sep Oct Nov Dec Licenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Maintenance 8,125 9,375 10,625 11,875 13,125 14,375 Sales 13,125 14,375 15,625 16,875 18,125 19,375 Cost of Goods Sold 500 500 500 500 500 500 Gross Profit 12,625 13,875 15,125 16,375 17,625 18,875 Software Development 10,000 10,000 10,000 10,000 10,000 10,000 Software Development MasterLink 17,000 17,000 17,000 17,000 17,000 17,000 Salaries 48,500 48,500 48,500 48,500 48,500 48,500 Selling Expense 10,000 10,000 10,000 10,000 10,000 10,000 Office Expense 5,200 5,200 5,200 5,200 5,200 5,200 Other 1,000 1,000 1,000 1,000 1,000 1,000 Total Expense 91,700 91,700 91,700 91,700 91,700 91,700 Operating Profit (79,075) (77,825) (76,575) (75,325) (74,075) (72,825) Interest Income 0 2,361 2,077 1,796 1,515 1,238 Earnings Before Taxes (79,075) (75,464) (74,498) (73,529) (72,560) (71,587) Income Taxes 0 0 0 0 0 0 Tax Refund 0 0 0 0 0 0 Net Income ($79,075) ($75,464) ($74,498) ($73,529) ($72,560) ($71,587) Pro FormaIncome Statements à ¢Ã¢â€š ¬Ã¢â‚¬Å" Years 1 through 5 Total Y1 Y2 Licenses $152,500 $150,000 Maintenance 376,875 1,500,000 Sales 529,375 1,650,000 Cost of Goods Sold 15,250 15,000 Gross Profit 514,125 1,635,000 Software Development 120,000 24,000 Software Development MasterLink 204,000 12,000 Salaries 582,000 611,100 Selling Expense 120,000 120,000 Office Expense 62,400 62,400 Other 12,000 12,000 Total Expense 1,100,400 841,500 Operating Profit (586,275) 793,500 Interest Income 11,787 1,981 Earnings Before Taxes (574,488) 795,481 Income Taxes 2,393 278,418 Tax Refund 2,393 201,071 Net Income ($574,488) $718,133 Jul Aug Sep Oct Nov Dec Jan Feb Cash $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Securities 629,695 553,911 479,026 404,122 330,188 257,226 182,616 126,038 Accounts Receivable 16,480 16,800 17,188 18,563 19,938 21,313 41,938 57,750 Total Current Assets 671,175 595,711 521,214 447,685 375,125 303,539 249,553 208,788 Total Assets $671,175 $595,711 $521,214 $447,685 $375,125 $303,539 $249,553 $208,788 Accounts Payable 250 250 250 250 250 250 1,125 1,125 Total Current Liabilities 250 250 250 250 250 250 1,125 1,125 Total Liabilities 250 250 250 250 250 250 1,125 1,125 Retained Earnings (79,075) (154,539) (229,036) (302,565) (375,125) (446,711) (501,572) (542,337) Other Equity 750,000 750,000 750,000 750,000 750,000 750,000 750,000 750,000 Total Liabilities and Equity $671,175 $595,711 $521,214 $447,685 $375,125 $303,539 $249,553 $208,788 Pro FormaBalance Sheets à ¢Ã¢â€š ¬Ã¢â‚¬Å" Years 0 Through 5 Y0 Y1 Y2 Y3 Y4 Y5 Cash $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Marketable Securities 629,695 44,012 671,395 1,760,630 3,724,986 6,680,688 Accounts Receivable 16,480 107,250 198,000 330,000 498,000 678,000 Total Current Assets 671,175 176,262 894,395 2,115,630 4,247,986 7,383,688 Total Assets $671,175 $176,262 $894,395 $2,115,630 $4,247,986 $7,383,688 Accounts Payable 250 750 750 1,000 1,250 1,250 Total Current Liabilities 250 750 750 1,000 1,250 1,250 Total Liabilities 250 750 750 1,000 1,250 1,250 Retained Earnings (79,075) (574,488) 143,645 1,364,630 3,496,736 6,632,438 Other Equity 750,000 750,000 750,000 750,000 750,000 750,000 Total Liabilities and Equity $671,175 $176,262 $894,395 $2,115,630 $4,247,986 $7,383,688 Pro FormaCash Flow Statements à ¢Ã¢â€š ¬Ã¢â‚¬Å" Year 1 by Month Jul Aug Sep Oct Nov Dec Operating Profit ($79,075) ($77,825) ($76,575) ($75,325) ($74,075) ($72,825) Cash Income Taxes 0 0 0 0 0 0 Funds From Opers. After Tax (79,075) (77,825) (76,575) (75,325) (74,075) (72,825) Increm. Working Capital Invest. 41,230 320 388 1,375 1,375 1,375 Cash Flow From Operations ($120,305) ($78,145) ($76,963) ($76,700) ($75,450) ($74,200) Non Op Inc. (after tax)-1) 0 2,361 2,077 1,796 1,515 1,238 Investor(s) 750,000 0 0 0 0 0 Net Cash Flow $629,695 ($75,784) ($74,885) ($74,904) ($73,935) ($72,962) Pro FormaCash Flow Statements à ¢Ã¢â€š ¬Ã¢â‚¬Å" Years 1 through 5 Total Y1 Y2 Y3 Y4 Y5 Operating Profit ($586,275) $793,500 $1,848,225 $3,200,936 $4,656,532 Cash Income Taxes 0 77,155 646,879 1,120,328 1,629,786 Funds From Opers. After Tax (586,275) 716,345 1,201,346 2,080,608 3,026,746 Increm. Working Capital Invest. 131,500 90,750 131,750