This is an executive summary, business proposal and other documents of a potential business that I worked on in the first semester of my final year in university with Aaron Duda, Wandile Lamula and Lehlonolo Phaphathisa.
Executive summary
This business proposal proposes the business venture, AutoMed+, an automated machine that uses cutting edge technology to provide reliable access to medication. This is a business proposal for potential investors to finance this venture.
Problem background
Research conducted by the world health organisation shows that between 1.3 and 2.1 billion of the world’s population have difficulty with access to medication. The public hospitals in South Africa serve 42 million people, which is 13 718 people per hospital. This total exceeds the WHO guidelines of at most 10 000 people per hospital/clinic. This leads to congestion in hospitals, which results in an inefficient healthcare system.
Product Description
AutoMed+ is a secure and reliable automated machine that dispenses medication for patients at locations far from the hospital. This machine will use the same protocol as both a vending machine and an ATM. Patients diagnosed with chronic diseases that require prescription medicine will each have a smart card that contains all their medical record, they will use it for authentication and get their mediation. People who wish to purchase the non-prescription medication (e.g. painkillers and sore throat tablets) can use cash.
Market Analysis
AutoMedTM is the first technology of its kind, one that is aimed at addressing the problem at hand. As a result of the absence of a current product or system that resolves the identified problem, AutoMedTM will quickly establish itself in the market. The target market for the product has been identified to be the pharmaceutical companies and the government, specifically the department of health. Any independent corporation that might be interested in the product will also be considered.
Marketing Strategy
It cannot be guaranteed that there will not be any competitors in future, to stay a step ahead of all competitors AutoMed+ will be upgraded every year, to make it faster, safer, more user friendly and increase its capacity. We will strive to build good relationships with our potential and existing customers, which will persuade them to stay when there is competition while we work to provide them with the best product.
AutoMed+ will be advertised on local publications that are aimed at our target market, these include IEEE magazines, healthcare journals and some newspapers. An interactive website dedicated to the advertisement of AutoMedTM is under development. Accounts on the most popular social media have been created. These are for educational purposes and partialy advertising and they will operate as a tool to get feedback from the end-user. After two years, when AutoMedTM is well established locally, we will run television, radio and international publication adverts with an aim of penetrating the international market.
Financials
We require an investment of R 770 000 from potential investors for a 25% share of the company. In addition to the R250 000 that was raised from family and friends, this amount of money will be used to improve the software, extend the production plant and for advertisement purposes.
Each product will cost R10 871 to make and will be sold for R50 000, with a profit of R 39 129 on each sale. The break-even point will be reached in three years’ time and a turnover of R5 357 000 in five years will be reached.
Justification
Blow is are links to pdf documents of an executive summary, a detailed business proposal and a poster of our product.
AutoMedTM is a cutting-edge technology that aims to minimise that gap between centralized hospitals and patients, making sure they get their medication with ease. AutoMedTM is secure, gives patients privacy and is available 24/7.
Click to download: Executive summary
Click to download: Business proposal
Cick to download: Poster
This is the preposed appearance, the medication is not vissible.
Below is video of our presentation rehearsal: