Eye care business plan

The plan will look at the market analysis, the feasibility analysis, the legal tax and ethical issues, the financial data and then conclude by suggesting the chances of The Mist eye clinic surviving in the eye care industry in Santa Fe. Market analysis Eye problems among older adults mainly result from the prevalence of chronic diseases which also mostly affect the older people. One of the chronic diseases that is the leading cause of eye loss is diabetes. Diabetes could affect the eye through many ways which include a blurry vision, glaucoma, cataracts, and diabetic retinopathy. Since diabetes mostly affects the older people, it is prudent to say that the cases of eye loss resulting from diabetes are more prevalent among the older people who are 65 years old and above (CDC's Health Vision Initiative, 2018).

This was related to an annual growth rate of 3. 4% from 2006-2012. This is reported to have outpaced the average growth of the overall global economy which was 2. 9% around that time, and further reports indicate that the rate is expected to increase to 5% between 2014 and 2019. The success of the industry is related to the prevalence of myopia which has a massive occurrence among patients all over the world. First, it is important to note that the ideal customers for The Mist clinic are the older Hispanic people with eye problems across all genders, and in this regard, the market piece that will be sought after by The Mist clinic is older Hispanic people in Santa Fe New Mexico. In 2000, the population of older adults in the world was reported to have grown from 600 million people to more than 1 billion people.

In around 25 years, this population is expected to hit 2 billion people (Evans, 2008). If the relationship between older people and chronic illnesses and eye loss problems is anything to go by then the future demand for eye care services among the older people is expected to soar to unimaginable heights, and this could be considered to be a good thing in as far as the business of providing eye care services is concerned. The United States, more specifically the state of New Mexico is not left out in these statistics meaning that the target market size of The Mist eye care clinic is likely to grow in significant numbers in the future. The general cost of administering eye examination and treatments for patients is 150 dollars and 400 dollars respectively.

The possible gross margin in this regard is likely to be 100 dollars for each test, and 500 dollars for surgery or treatment at the market entry point. After market entry, the gross margin will be 300 dollars for examination, and 1000 dollars for treatment. The total gross margin for both treatment and examination will, therefore, depend on the overall demand for eye care services in Santa Fe. The demand is likely to be low when the clinic is opened, but with time the number of customers is likely to pick up, and more customers are expected to go to the clinic. The other significant point under competition and strategy is the mode of advertisement. The Mist eye clinic will focus on the potential of the internet as a marketing tool, and through this, it will make the most of search engine, the clinic website and social media platforms for advertisements.

Given its small size, it will not go directly into the use of expensive billboards, but it will instead use brochures, simple posters among other inexpensive mass media platforms. Feasibility analysis. As indicated earlier, the mission statement for The Mist clinic is to provide the old with the gold of vision through quality eye care services offered under an appropriate atmosphere of compassion and understanding. These technological devices will also act as a form of distribution through which the clinic will increase the accessibility of customers to its services. The last point to note is that the clinic is likely to have 20 employees who will all be employed permanently. With regards to how the market will respond, other employees may be hired on contract.

The clinic will also be located in the central business district in Santa Fe, and this may come with certain costs in as far as rent among other resources are concerned. The SWOT analysis. The first weaknesses of The Mist eye clinic will be in a financial context. The cost of starting up a state of the art eye clinic is enormous, and the owners may find it challenging to bring together all the funds and kick start the business. It is also important to note that the eye care industry is cyclical and for this reason, the customers may be exposed to market whims which may affect the financial operations of The Mist eye clinic. The other weakness will be internal shortcomings.

The fact that The Mist eye clinic will be a new company would mean that it will face some internal problems such as database management before achieving the status of seamless internal processes. Threats. The Mist eye clinic will also face some threats in the Santa Fe eye care industry. The first one will be too much competition from the already established clinics in the area. Santa Fe has so many eye clinics which will make the life of The Mist clinic a little harder in as far as the market share is concerned. There is also a threat when it comes to market share. Affordable fee structure. Low financial strength 2. Cyclical whims of the eye care industry 3. Internal inefficiencies. Inability to secure competitive work force.

There are a number of legal, Tax and ethical issues that The Mist clinic will have to adhere to, to successfully operate the business in Santa Fe. Health care is a sensitive avenue for business and for this reason, no clinic or health center can competitively operate without adhering to specific regulatory issues, federal requirements, insurance considerations, legal issues, tax considerations, and state and local requirements. Regulatory issues. Federal regulations. There are a number of federal regulations that would determine the ways of operation of most health establishments such as a clinic. Under the Health Facility Licensing and Certification, the New Mexico state requires all facility owners to register with the state. Two bureaus are charged with the responsibility of registering health facilities in New Mexico, and they include the Programs Operations Bureau and the District Operations Bureau.

These two bodies are responsible for the monitoring of health facilities to ensure that all the quality standards are adhered to. In addition to the health facility licensing certification, the New Mexico Clinical Laboratory Improvement Act is the other state requirement that The Mist clinic will have to adhere to. This act also aims at ensuring that health facilities adhere to the set standards for specimen testing. Some employees may not act appropriately, and as a result, they may cause certain losses to the clinic if their dishonesty causes considerable damage to the concerned parties. With the fidelity bonds, The Mist clinic will be protected from any legal issues that may follow, and therefore the clinic should have it as the other insurance plan under consideration.

Legal issues. For The Mist clinic to avoid potential legal consequences and litigation, it will have to stay consciously aware of some legal issues that could directly apply to the management and operations of health clinics. Health facilities are prohibited from the use of false claims to gain or illegally earn from certain contracts. New Mexico taxes personal incomes at a rate of 1. 9 % (Steingold, 2018). In this regard, the mist clinic will be required to submit these taxes to the government promptly. On the other hand, federal taxes may range from 10%-39% and all the company and business facilities will also be required to submit the amounts promptly to the relevant authorities. Apart from the income taxes, there are also corporate taxes that The Mist clinic will have to comply with.

Ethical issues. The first ethical issue is the possible disagreements that may prevail between families or patients with the clinic. There are some treatment methods that some families may object to while there are also treatment options suggested by families that the clinic may object to. In this regard, there must be a consensus between the two parties before treatment proceeds. The other ethical issue that may arise is related to the waiting list, and the clinic should not keep the patients waiting for longer periods that could deteriorate their health as they wait (Breslin, MacRae, Bell & Singer, 2005). Since the business will be at a startup point, it will not have the account receivables which can only be expected after the business is up and running.

In the hustles of rushing to start up the business, it is also important to note that The Mist clinic has incurred current liabilities that stretch to around 2,000 dollars. The clinic has not yet started, and for this reason, it does not have any long term liabilities. In this regard, the balance sheet of The Mist clinic will balance with a significant amount of the owners’ equity on the right side. The balance sheet will be presented to banks for a loan, and in this sense, it is essential that the balance sheet be accurately prepared to show the actual financial position of the clinic. Statement of cash flows. The assumed number of appointments that The Mist clinic will have monthly will be 1500 people.

The services offered during these appointments will be charged at an average cost of 400 dollars which implies that at the start The Mist clinic is likely to make 600,000 dollars monthly. The clinic will also require its patients to subscribe to the health monitoring devices which will check on their health and recommend them to visit the clinic as soon as possible. The subscriptions will cost around 10 dollars per month, and the clinic is expecting close to 10,000 subscriptions which implies that it will earn close to 100,000 dollars for the subscriptions. The Ethnic Market: Learning the Facts and how they relate to Direct Marketing. Retrieved from https://the-cma. org/disciplines/direct/archive/the-ethnic-market Breslin, J. , MacRae, S. , Bell, J. Eye care for older people.