Hospital business plan sample

Business plan
XXXXX
Strictly private and confidential
Project E
XXXXX
Founder
Email:

Business plan – Project E ©XXXX - Priv ate and Conf idential
Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Financial Projections 37
Management Team 43
Use of Proceeds 46
2
Disclaimer

Disclaimer
3
• This presentation has been prepared exclusively for the benefit and internal use of a qualified sophisticated global financier to whom it is directly addressed and
delivered. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral
briefing provided by XXXXX. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of XXXXX.
• The information in this presentation is based upon forecasted numbers provided in industry literature and our best estimates. These projections and estimations
reflect prevailing conditions and our views as of this date, all of which are accordingly subject to change.
• In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available
from public and private sources which were provided to us or which were otherwise reviewed by us. In addition, our analyses do not claim to be appraisals of the
assets, or the valuation of any entity. XXXXX makes no representations as to the actual benefits which may be received in connection with a transaction nor the
legal, tax or accounting effects of consummating a transaction.
• A number of statements referenced in this presentation that have been granted, are forward-looking statements, and any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, and goals, assumption of future events or performance are not
statements of historical fact and may be "forward-looking statements."
• Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and
uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this presentation may
be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or
"might" occur. Any person or entity seeking to make an investment in the company should not rely on the information set forth in this business plan as complete.
• Any person or entity seeking to make an investment in the company should not rely on the information set forth in this business plan as complete. There exists
substantial information with respect to the company, its business and its future prospects which are not set forth in the business plan and there exist a substantial
number of risks associated with an investment in the company which are not set forth in this business plan.
• Any person or entity considering making an investment in the company must ensure that they avail themselves of all other information relating to the company, its
business, and its financial projections, as well as all other information deemed necessary or desirable by such prospective, prior to any such investor making an
investment in the company.
• Any prospective investors shall be required to represent to the company that, prior to making such investment, they have received from the company all
information deemed necessary or desirable by them with respect to such investment and that such investor did not rely on any information set forth in this
business plan in making any such investment.
• By accepting delivery of this plan, the recipient agrees to return this copy to the corporation at the address listed below if requested.
• Do not copy, fax, reproduce or distribute without written permission from XXXXX.
Disclaimer

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
4
Executive Summary

The Project E will be Botswana’s first private psychiatric hospital focused on inpatient and outpatient clinical health care
5
Marketanalysis
• To become a major provider of mental health care in Botswana and,
eventually, other countries as well
• To increase number of beds in the hospital from 20 to 100 over the next
10 years
• 600 inpatient admissions in year 1
• To complete construction of the hospital building in year 5
• To become a teaching affiliate for government agencies and private
health care institutions
• To participate in non-profit programs/projects (including school
wellness programs) that aim to increase early detection of mental
health
• To act as a clinical training base for education and research segments
of Institute Z
• To achieve gross revenue - $11,9m in year 7
StrengthsGoals
• Attractive location of the hospital in an area with substantial need for such a facility
• Synergistic effect: hospital, education and research facilities in one place
• High-quality but affordably priced solutions
• Innovative marketing approach
• Experienced management team
• Founder substantial industry contact network will help to make the business
successful extremely quickly
Business idea
• The Project E will be Botswana’s first private psychiatric hospital focused on inpatient
and outpatient clinical health care.
• Project E is part of the Institute Z, which also include education and research
segments.
• Price: medium
• Geographical focus: Botswana
• Target end-customers: people in need of mental and general medical health care
and support
• Founder: XXXXX
Executive Summary
Availability of mental health facilities
Total number of
facilities/ beds
Rate per 100,000
population
Number of
facilities/beds
reserved for
children and
adolescents onlv
Rate per
100,000
population
Mental health outpatient facilities 17 0.86 1 0.05
Day treatment facilities UN UN UN UN
Psychiatric beds in general hospitals 99 5.01 UN UN
Community residential facilities UN UN UN UN
Beds places in community residential facilities UN UN UN UN
Mental hospitals 2 0.10 UN UN
Beds in mental hospitals 332 16.79 UN UN
Source: Department of M ental Health and Substance Abuse, World Health Organization

The Company is seeking an investment of $9m, mainly to finance CAPEX and the working capital during the first 12 months of operations
6
Financials
KPIs
sExecutive Summary
Initial investments, £
Item Amount
Refurbishment of the leased premises 60,000
Purchases of goods 50,000
Investments in working capital 90,000
Total: 200,000
Source: Management information
Initial investments
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue structure, %
Outpatient services Inpatient services Telemedicine
Source: Management inf ormation
Key performance indicators
CF (1-7 years), $ 12,223,112
NPV (1-7 years)*, $ 949,696
IRR, % 4%
Payback period 6.5 years
*Discounted rate 3%
Source: M anagement information
Initial investments, $
Item Amount
CAPEX
Transport
Ambulance 50,000
Hospital Vehicles 100,000
Construction of the building
Construction works (prefabricated modular building) 400,000
Electricals and plumbing 70,000
Other 25,000
Medical equipment 75,000
Equipment and furniture 25,000
Construction of permanent brick structures in year 3-5 8,000,000
Working capital 300,000
Total 9,045,000
Source management information
Projected Profit and Loss account
$ Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue 2,573,250 3,322,843 4,226,140 5,109,335 9,805,745 10,941,925 11,926,699
Operating expenses (1,420,463) (1,656,430) (2,256,136) (2,527,312) (3,388,579) (4,548,960) (6,112,912)
Net profit/(loss) 816,159 1,216,788 1,453,588 1,930,963 4,298,375 4,279,499 3,827,739

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
7
Market Research

Globally, one in four people will experience psychological distress and meet criteria for a diagnosable mental disorder at some point
in their lives (WHO)
General overview
• For years, the global burden of mental disorders on individuals,
families, communities and health services has been considerably
underestimated. Resources for mental, neurological, and
substance use disorders have been slow in development,
insufficient, constrained, fragmented, inequitably distributed, and
ineffectively implemented. While mental and neurological
disorders comprise only 1% of deaths worldwide, they account for
8–28% of the disease burden, with the majority of these disorders
occurring in low- to middle-income countries.
Mental Health: An International Problem
• Most mental disorders are highly prevalent in all societies, remain
largely undetected and untreated, and result in a substantial
burden to families and communities. Although many mental
disorders can be mitigated or are avoidable, and though they
continue to produce significant economic and social hardship,
they continue to be overlooked by the international community.
Moreover, in all countries there is an enormous gap between the
prevalence of mental disorders and the number of people
receiving care.
• In less-developed countries, more than 75% of persons with
serious mental disorders do not receive treatment. Unfortunately,
psychiatry’s best efforts at training physicians to provide mental
health care within the global context are proving too small to
contain the global problem.
• For too long, the focus has been on medicine and not on local
communities (Patel, 2013). In fact, every person’s health care is
local (Unützer, 2013). The major issue with the current provision
of care is, therefore, the limited size and training of the
community health care workforce (Becker & Kleinman, 2013).
8
Market Research General Overview
• Globally, one in four people will experience psychological distress and
meet criteria for a diagnosable mental disorder at some point in their
lives (WHO). This ominous data speaks to the need for accessible,
effective and socially equitable mental health care (Hinkle & Saxena).
WHO estimates that more than 450 million people worldwide live with
mental health problems; these numbers are no doubt bleak.
• More specifically, WHO estimates that, globally, more than 154 million
people suffer from depression, 100 million are affected by alcohol use
disorders, 25 million have schizophrenia, 15 million abuse drugs, and
nearly one million people commit suicide each year (Saraceno et al.).
• Depending on the source, unipolar depression has been estimated to be
in the top four causes of loss of disability-adjusted life years across the
six socially diverse continents (Murray & López; Vos et al., 2012).
• Furthermore, it has been estimated that as many as 25% of all primary
care consultations have a mental health component (Goldberg &
Huxley; Warner & Ford; WHO). Mental disorders are related to a range
of problems, from poverty, marginalization, and social disadvantage, to
relationship issues such as divorce, physical conditions such as heart
disease, reductions in economic productivity, and interruption of child
and adolescent educational processes (see Alonso, Chatterji, He, &
Kessler, 2013; Breslau et al., 2013).
• At the developmental level, at least 10% of children are considered to
have mental health problems, but pediatricians and general medical
practitioners are not typically equipped to provide effective treatment
(Craft). With mental disorders contributing to an average of 20% of
disabilities at the societal level, the evidence is clear that these
disorders pose a major global health challenge (Alonso, Chatterji, et al.,
2013; Alonso, Petukhova, et al., 2013). Moreover, the associated
economic burden exceeds that of the top four non-communicable
diseases (i.e., diabetes, cardiovascular, respiratory and cancer; Bloom
et al., 2011).

About 35–50% of mental health cases in developed countries and approximately 75–85% in less-developed countries have received
no treatment in the 12 months preceding a clinical interview
• Most international mental health systems are dominated by
custodial psychiatric hospitals (WHO).
Global Community Mental Health
• Serious mental disorders are generally associated with
substantial role disability within the community. About 35–50% of
mental health cases in developed countries and approximately
75–85% in less-developed countries have received no treatment
in the 12 months preceding a clinical interview. Due to the high
prevalence of mild and sub-threshold cases, the number of
untreated cases is estimated to be even larger. These milder
cases, which can be found in communities all over the world,
require careful consideration because those with untreated, mild
cases of mental illness are far more vulnerable to cases of severe
mental illness (WHO, 2010a, 2010b; WHO World Mental Health
Survey Consortium).
• It is important to note that in most low- to middle-income
countries, community workers are often the people’s first line of
contact with the health care system (Anand & Bärnighausen,
2004; Hongoro & McPake, 2004). However, there is a long history
of issues with the sustainability of community programs (Walt,
1988). There is a pronounced lack of community service
providers with the necessary competencies to address mental
health needs, which remains the most significant barrier to the
provision of mental health services. Although human resources
are the crucial core of health systems, they have been a
neglected developmental component (Hongoro & McPake, 2004),
particularly in the field of mental health. WHO’s “Mental Health
Atlas” specifies a critical global shortage of mental health
professionals (e.g., psychiatrists, psychiatric nurses,
psychologists, social workers, neurologists).
9
Market Research Value Chain
• Similarly, an informal international survey of clinical mental health,
school, and career and work counselors by NBCC-I indicated that the
professional counselor workforce has yet to be adequately identified on
a global scale (Hinkle, 2010b). Moreover, extant mental health services
are inequitably distributed; lower-income countries, where behavioral
risk factors tend to cluster among people of lower socioeconomic status,
have significantly fewer mental health human resources than higher-
income countries (Coups, Gaba, & Orleans; WHO; WHO World Mental
Health Survey Consortium).
• In low- to middle-income countries, human resources are clearly limited,
and the quality and productivity of the existing workforce is often
challenged. Investment in human resources for community mental
health care is insufficient in absolute terms as well as in distribution
(Hongoro & McPake).
• For instance, the global average for physicians is 170 per 100,000
people, but in Nepal and Papua New Guinea there have been as few as
five doctors per 100,000 (WHO,).
• In 2009, approximately 36% of doctors’ posts and 18% of nurses’ posts
were unfilled around the world (Bach). Moreover, general practitioners
are not typically adept at providing mental health care, including
detection, referral and management of mental disorders (Chisholm et
al.). Therefore, partnerships between formal primary and informal
community health care systems need to be more prevalent, effective
and integrated.
• Because psychiatric hospital beds are extremely limited, the demand for
mental health services within communities becomes even more critical
(Forchuk, Martin, Chan, & Jensen). Furthermore, early detection and
treatment of mental disorders and co-occurring emotional and
behavioral problems not only decreases the chance of lower physical
health later in life, but also associated costly hospitalizations.

Mental health and mental hospital expenditures by the government health department/ministry in Botswana are less than what is
needed to grapple with the issue
General information about Botswana
• Botswana is a country with an approximate area of 582 thousand
square kilometers (UNO). The population is 1,977,569 and the
sex ratio (men per hundred women) is 102 (UNO). The proportion
of the population under the age of 18 years is 39% and the
proportion above age 60 is 4% (UNO). The literacy rate is 94%
for men and 96% for women (UN Statistics). The life expectancy
at birth is 54 years for males and 53 years for females (UNO).
The healthy life expectancy at birth is 49 years for males and 53
years for females (UNPD). The country is in the upper-middle
income group. The total expenditure on health as a percentage of
gross domestic product is 10.25% and the per capita government
expenditure on health (PPP int. $) is $624 (WHO). In Botswana,
neuropsychiatric disorders are estimated to contribute to 4.6% of
the global burden of disease (WHO).
10
Market Research Botswana
Governance
• An officially approved mental health policy exists, which was revised
and approved relatively recently (in 2003). Mental health is also
specifically mentioned in Botswana’s general health policy guidelines.
• A mental health plan exists and was approved or most recently revised
in 1997. The mental health plan components include:
• Funding allocation for the implementation of half or more of
the items in the mental health plan.
• Shift of services and resources from mental hospitals to
community mental health facilities.
• Integration of mental health services into primary care.
• Dedicated mental health legislation exists and was initiated, or most
recently revised, in 1971. Legal provisions concerning mental health are
also covered in other laws (e.g. welfare, disability, general health
legislation etc.).
Financing
• Though steps are being taken to address mental health issues in
Botswana, mental health and mental hospital expenditures by the
government health department/ministry are less than what is needed to
grapple with the issue.
Mental health care delivery
Primary Care
• Prescription regulations authorize primary health care doctors to
prescribe and/or to continue prescription of psychotherapeutic
medicines but with restrictions. Similarly, the department of health
authorizes primary health care nurses to prescribe and/or to continue
prescription of psychotherapeutic medicines but with restrictions.

Statistics – mental health services in Botswana
11
Market Research Mental Health Services
Human resources• Official policy also enables primary health care nurses to
independently diagnose and treat mental disorders within the
primary care system.
• Officially approved manuals on the management and treatment of
mental disorders are available in most primary health care clinics.
Official referral procedures for referring persons from primary
care to secondary/tertiary care exist, as do referral procedures
from tertiary/secondary care to primary care.
Mental Health Services
Availability of mental health facilities
Total number of
facilities/ beds
Rate per 100,000
population
Number of
facilities/beds
reserved for
children and
adolescents onlv
Rate per
100,000
population
Mental health outpatient facilities 17 0.86 1 0.05
Day treatment facilities UN UN UN UN
Psychiatric beds in general hospitals 99 5.01 UN UN
Community residential facilities UN UN UN UN
Beds places in community residential facilities UN UN UN UN
Mental hospitals 2 0.10 UN UN
Beds in mental hospitals 332 16.79 UN UN
Workforce and training
Health
professionals
working in the
mental health
sector Rate per
100.000
Training of health
professions in
educational
institutions Rate per
100.000
Psychiatrists 0.25 0.0
Medical doctors, not specialized in psychiatry 0.51 0.0
Nurses 4.05 18.05
Psychologists 1.52 1.52
Social w orkers 0.35 UN
Occupational therapists 1.82 1.82
Other health w orkers 2.38 NA
Data on number of
people/ activities
are collected and
reported
Data on age and
gender are collected
and reported
Data on patient's
diagnosis are
collected and
reported
Persons w ith mental disorders treated in primary
health care
Yes Yes Yes
Interventions (psychopharmacological and
psychosocial) delivered in primary health care for
people w ith mental disorder
Yes Yes Yes
Persons treated in mental health outpatient facilities Yes Yes Yes
Contacts in mental health outpatient facilities Yes Yes Yes
Persons treated in mental health day treatment
facilities
Yes Yes Yes
Admissions in general hospitals w ith psychiatric
beds
Yes Yes Yes
Admissions in mental hospitals Yes Yes Yes
Days spent in mental hospitals Yes Yes Yes
Admissions in community residential facilities Yes Yes Yes
Information Systems
UN = information unavailable,NA = item not applicable
Access to care
Rates per 100,000
population)
Persons treated in mental health outpatient facilities 541.93
Persons treated in mental health day treatment
facilities
UN
Admissions to psychiatric beds in general hospitals UN
Persons staying in community residential facilities at
the end of the year
UN
Admissions to mental hospitals 93.04

As opposed to neighboring South Africa, Botswana does not have a long history of psychology as a profession
12
Market Research
Psychology in
Botswana
Psychology and its status in Botswana
• As opposed to neighboring South Africa, Botswana does not have
a long history of psychology as a profession. Psychology is a
relatively new discipline in Botswana; therefore, there is little
published literature. Botswana has very few practicing
psychologists or registered counselors. Those who practice in
Botswana were trained either overseas or in the neighboring
countries, such as South Africa and Zambia. In addition, those
who are trained in psychology find employment mostly in the
areas of lecturing, human resources, or other work not directly
related to their areas of clinical training.
• In Botswana, psychologists are required to register with the
Botswana Health Professions Council (BHPC). Currently, the
Botswana Health Professions Council (BHPC) Act only
recognizes and registers clinical psychologists and is silent about
other categories (Botswana Health Professions Chapter 61:02).
This indicates that there is an information gap in terms of an
understanding of the scope of psychology as a profession in
Botswana.
• There have, however, been efforts to bring psychologists together
to speak with one voice to address issues of credentialing and
ethics and lobby for the recognition of psychology as a
profession.
• After periodic efforts, the Psychological Association of Botswana
(PAB) was formed in 2005 and was registered as an association
in 2007 (Psychological Association of Botswana Handbook).
• Unfortunately, the association does not have any powers to
regulate and protect the practice of psychology or the provision of
psychological services.
Psychological services in Botswana
•Botswana is grappling with a host of issues, including social,
psychological, and behavioral problems, HIV/AIDS, and the need for
psychological assessment in the workplace. These issues may have a
direct impact on Botswana’s economic and social development if they are
not handled professionally. in an attempt to address these issues, the
Botswana government introduced and effected health and social welfare
structures that provide counseling, psychological assessment and
HIV/AIDS voluntary counseling and testing services (VCT). They further
stated that the impact of these structures has been inhibited, either by a
lack of awareness of such services by the public or underutilization of the
services by primary health care providers. The ability of a nation or
community to withstand social crises or serious conflicts is directly related
to the quality of health, as well as the psychological wellbeing, of the
nation.
•Psychological services that do exist in Botswana are provided through
health and welfare structures and the education sector. Other
psychological services that exist belong to non-governmental organisations
and agencies (Directory of Counseling Services in Botswana), religious
organizations, traditional doctors and family members also play a major
role in rural areas. On the next slide is a table from the Directory of
Counseling Services in Botswana, indicating some of the government
institutions and non governmental organizations that offer psychological
services.
•In an attempt to offer psychological services at health centers, government
policymakers have introduced psychological services at the primary health
care level. Clinical psychologists are attached to Botswana’s three main
referral hospitals, namely Marina and Nyangabwe Referral Hospitals and
Lobatse Mental Hospital (Ministry of Health). Psychological services at
community health centers are often offered by medical doctors, nurses and
social workers who do not have the relevant training in psychological
intervention skills.

Psychological services that do exist in Botswana are provided through health and welfare structures and the education sector
• Though these professionals make valiant efforts to provide
psychological services, many of them have not been give the
tools or resources they need to understand the diverse causes of
psychological problems and, therefore, they often lack the
expertise to offer effective psychological intervention.
• In the nation’s schools, the guidance and counseling division in
the Ministry of Education is charged with the responsibility of
providing psychological services in Botswana’s schools, from pre-
primary schools to tertiary institutions. Psychological services are
offered, which include training teachers how to guide and counsel
their students while adhering to the ethical principles of
counseling. They provide counseling to individuals and groups on
a wide range of issues.
• As psychology as a profession is a relatively new discipline in
Botswana, this may result in the role of a psychologist in the
health care setting and the community in general being unclear.
The fact that social workers, counselors and guidance and
counseling teachers are charged with the responsibility of offering
psychological services, and therefore function as psychologists,
adds to the misconception regarding the roles of these
professionals.
• Botswana has outlined a longer-term vision, which they hope to
achieve by 2016, including the goal of building a compassionate,
just and caring nation that addresses the need to strengthen the
health care system and to ensure that Botswana is a healthy
nation so that its citizens can contribute meaningfully to the
country’s development (Long-Term Vision for Botswana). This
requires a coordinated program of health promotion and disease
prevention services, as well as a functioning primary health
system and the provision of high-quality health services to those
who require secondary and tertiary care (Long-Term Vision for
Botswana.
13
Market Research Psychology
City Institution Counselling services offered
Francistow n Peer Approach to Counselling by
Teens
Equip youth w ith social skills and relationship
management
Francistow n Young Women's Christian
Association (YWCA)
Youth counseling and peer pressure
management skills
Francistow n Red Cross Blood Donation
Programme
Pre-and-post-blood donation counselling to
blood donors
Francistow n Tebelopele Voluntary Counselling and
HIV Testing Centre
Pre-and-post counselling for HIV testing
Counselling services to individuals directly or
indirectly affected by HIV/AIDS
Gaborone 3ana Consultancy (BANACO) Pre-and-post information and assistance to
professionals w orking w ith children and their
families
Gaborone Botsw ana Family Welfare
Association (BOFWA)
Advocate and provide information and
education oc human grow th, reproduction and
sexual development Advice on pre-mantal and
mantal counselling, family and couple
counselling
Gaborone Careers and Counselling Centre.
University of Botsw ana
Career assessment and counselling
Gaborone Coping Centre for People Living w itt
HIV/ AIDS
Counselling services to people living w ith HIV
AIDS
Gaborone Holy Cross Hospcce Facilitate and strengthen support groups of
people living w ith HIV AIDS
Gaborone Tinsanyo Catholic Commission Behavioural change based on Christian
teaching. Provide care and counselling
services to individuals living w ith HIV. AIDS
and orphans
Gaborone Tshepong C ounselling Netw ork Psychocherapeutic interventions
Gaborone Guidance and Counselling Division.
Curriculum Development and
Evaluation
Career counselling Job placemen and skills
training
Gaborone Tebelopele Voluntary Counselling and
HIV Testing Centre
Pre-and-post counselling for HIV testing
Counselling services to individuals directly or
indirectly affected by HIV/AIDS
Psychological service offered in Botswana

Currently, two health care systems run concurrently in Botswana, one western and the other a more traditional form of health care
• Some of the ways to enhance realization of the health-promotion
goals of vision 2016 is to explore the awareness of psychological
services within the health care system, to assess the attitudes of
health care providers towards psychology and to explore their
referral practices with regard to psychological problems.
According to Vogelman, the important ingredients for achieving
appropriate service delivery include a multi-disciplinary team
approach, preventative interventions and the appropriate use of
health professionals.
Primary Health Care in Botswana
• In most nations, health care is seen as a basic need. When it was
granted its independence in 1966, Botswana inherited a largely
curative, hospital-based health care system, which left the
majority of the population without access to any services.
• In 1973 – 78 a network of basic health facilities was gradually
established throughout the country with the aid of the Norwegian
Agency for Development Co-operation (NORAD) and the United
Nations International Children’s Emergency Fund (UNICEF) (A
Manual of Health Services, 1992).
• In 1975, a separate Ministry of Health was established, which
was charged with improving the health (both physical and mental)
of the nation. The Ministry of Health then adopted the fifth
National Development Plan (NDP 5) policy on Primary Health
Care (PHC), which emphasized that the primary health care
services provided must be appropriate, affordable to both people
and the government and must also be easily accessible (Manual
of Health Care Services). During the National Development Plan
6 (NDP 6) in 1985-1991, the policy again focused on Primary
Health Care (PHC) and the aim was to integrate preventive,
promotive, rehabilitative and appropriate curative services
through the participation of community groups at all levels of
national health care.
14
Market Research
Primary Health Care in
Botswana
• The National Development Plan 7 (NDP 7) of 1985 -1991 brought a shift
towards an integrative approach where mental health forms an integral
part of primary health care (Manual of Health Care Service).
• Currently, two health care systems run concurrently in Botswana, one
western and the other a more traditional form of health care. Every
Botswana citizen has access to both traditional health care and western
health care. The selection of which health care system to seek is
influenced by the beliefs, customs and values of the people. The
western health care inherited at independence in 1996, as previously
stated, was largely curative hospital-based care and most Batswana did
not have access to the western health care systems (Mental Heath
Action Plan, 1997). Seloilwe and Thupayagale (2007) explained that it is
for these reasons that health care providers should take into cognizance
the operations of these two systems and fully comprehend the belief
systems of the people with whom they deal in order to accommodate
both systems. This makes it possible for the users to gain access to
both traditional and western forms of health care.
• The Botswana health care system is organized at different levels of
sophistication and coverage. The lowest level is the outreach level,
where health care may be provided at a mobile stopping point. The next
level is the health post that consists of small structures staffed by a
nurse and a family welfare educator. The next level is the clinic, which is
staffed by a community nurse assisted by visits from the medical
practitioner. The nurses at these clinics offer health service and
educative health projects, as well as carrying out immunization
programs. They are also charged with the responsibility of the provision
of psychological services. The primary and district hospitals are the next
level and they provide a range of services which includes a combination
of curative and preventive services. These are staffed by medical
practitioners and registered nurses, who mainly provide specialist
services. The medical professionals also provide psychological
services.

Botswana has a population of 1.7 million people (Central Statistics Office), all of whom are served by one mental hospital located in
the southern part of the country which serves as the referral hospital for the whole country
• At the apex of the service pyramid are three main referral
hospitals. These are the Marina Referral Hospital in Gaborone
and the Nyangabwe Referral Hospital in Francistown. These are
staffed with medical doctors and nurses, who mainly provide
specialist services. Psychosocial service is provided by social
workers and clinical psychologists attached to these referral
hospitals (Ministry of Health). The third referral hospital is the
Lobatse Mental Referral Hospital. This will be briefly discussed
below.
Mental Health Care in Botswana
• Mental health care should be seen as a basic need within a
nation because of its important contribution to the quality of life of
every individual. The government of Botswana, with the help of
non-governmental organizations, is committed to the
improvement of the mental health status of the Botswana nation.
Botswana has a population of 1.7 million people (Central
Statistics Office), all of whom are served by one mental hospital
located in the southern part of the country which serves as the
referral hospital for the whole country (Mental Heath Action Plan).
• The Lobatse Mental Hospital was opened in 1944 and prior to
that, persons with mental illnesses were treated in prison or at
home by traditional practitioners. The Lobatse mental hospital
cares for persons with a variety of mental illness, including those
who are in need of custodial care, forensic patients, persons with
developmental disabilities, persons with alcohol and drug
problems and others who may be referred for mental status
examinations (Mental Health Action Plan).
• Psychological services are provided by psychiatrists, psychiatric
nurses, clinical psychologists and social workers.
15
Market Research
Mental Health Care in
Botswana
• Given the size of the country and the needs of the population, there
have been steps to decentralize mental health services, and already
more than six community mental health clinics situated across the
country are in operation, providing regular outreach services to those
people who can be treated in the community.
• Evidently, private psychiatric care, let alone public psychiatric care, is
greatly deficient and unavailable to the majority of people (even those
who can afford it). This unarguably creates a burden of care on public
services and offers very limited choices to mental health patients
compared to general medicine where patients have fair choice between
public and private medical services. Most patients are left with the
option of traveling outside the country for private psychiatric care, which
only adds to psycho-socio-economic cost and logistical challenges.
• The World Health Organisation (WHO) published a declaration which
said that mental health care should form part of primary health care. The
WHO Report stated that the integration of mental health care into the
general health service, particularly at the primary health care level, has
many advantages. including less stigmatization of patients, as mental
and behavioral problems will be managed alongside physical health
problems, and the improved detection of patients presenting with vague
somatic complaints related to mental and behavioral problems.
• Integration has the potential to improve the treatment of mental health
problems associated with physical factors (WHO). In response to this
declaration, the Botswana government developed the National Health
Policy on mental health to provide a framework for the incorporation of
the objectives of mental health into a general health care system and
the integration of mental health care services into the health care
mainstream. The policy initiated community mental health care
education and psychosocial skills for nurses based at community clinics,
and the establishment of family support systems for mentally ill patients
(Ministry of Health).

Current Trends in Private Psychiatric Services and Emerging Trends in the Delivery of Mental Health Services
• Integration of Mental Health Services into the general health
system is currently practiced in many countries in Sub-Saharan
Africa. For example, in South Africa, the Mental Health Service
exists within the health care system and has been a major
component of the main institutional practice of curative care
(Freeman).
Emerging Trends in the Delivery of Mental Health Services
• Delivery of less stigmatised services made up of combined
general medical and psychiatric services in the same facility (i.e.
delivery of holistic care)
• Youth-friendly services to encourage early presentation of young
people to mental health services
• Culturally sensitive services which is inclusive of different cultures
and generations
• Family-oriented approaches to mental health problems
• Sensitive introduction of novel psychiatric treatments to promote
treatment adherence.
• Delivery of evidence-based care and treatment in mental health
care
Results of survey
• There is global concern that psychosocial problems impact
negatively on mankind. The government of Botswana introduced
psychological services at national referral hospitals with the aim
of addressing this concern. This was also one of the goals of
Vision 2016, which emphasizes the need to strengthen
Botswana’s health care system
• (Long Term Vision for Botswana). However, there is concern that the
impact of these structures is not significant. This has been attributed to
a lack of public awareness of psychological services or the
underutilization of these services by health care providers.
• There is ongoing concern regarding the effectiveness and accessibility
of psychological services in Botswana. There is also an evident desire
for and interest in referring psychological problems to psychological
services. However, there is also a shortage of trained professionals to
offer psychological services, and as a result, psychological problems
are most frequently referred to social workers. Medical professionals are
charged with the responsibility of psychological assessment and
intervention, which could affect their capacity to attend to physical
illnesses.
16
Market Research
Trends in Private
Psychiatric Services
Referral practices of psychological problems
Psychological problem
Psycholog
ist
Social
worker
Church
pastor
Traditi
onal
Healer
1.Emotional problems 33% 67% 10% 2%
2.Problems of anxiety and stress 46% 46% 5% 3%
3.Psychological adjustment to physical illness 51% 38% 2% 0%
4.Interpersonal and social problems 5% 84% 5% 0%
5.Marital problems 7% 84% 18% 0%
6.Educational and Occupational difficulties 26% 60% 2% 0%
7.Drug and Substance abuse 42% 60% 4% 0%
8.Rape 33% 58% 0% 0%

Survey results
17
Market Research Survey Results
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Availability of psychological services by type, %
Participants were given a list of psychological services and were asked to
indicate the availability of those psychological services at their health care
centres.
Statement
Strongly
Disagree
Disagree Neutral Agree
Strongly
agree
1. Psychological services available in your
setting are adequate
25% 34% 20% 21% 1%
2. Psychological services aге easily
accessable to patients
22% 33% 18% 26% 1%
3. Psychological services which зге
available aге effective
12% 19% 29% 32% 8%
4. If psychological services were геadily
available. I would refer to them
4% 1% 4% 27% 63%
5. Psychologists have little to offer in heath
сaге centres
65% 16% 6% 8% 6%
Participants’ awareness of available psychological services
0%
10%
20%
30%
40%
50%
60%
70%
80%
Doctor Nurse Psychiatrist Psychiatnc Nurse Social Worker
Provision of psychological service, %
Psychology is a relatively new profession in Botswana, and the provision of
psychological services in health care centers is not yet well established. The findings
visualized here are a reflection of what is happening on the ground. In the absence of
trained psychologists, psychological problems are attended to by medical
professionals and social workers.
Psychological Problems Weekly Monthly
Less
often
Never
1. Emotional problems 66% 11% 18% 5%
2. Problems of anxiety and stress 65% 11% 19% 5%
3.Psychological adjustment to physical illness 40% 15% 33% 13%
4. Interpersonal and social problems 55% 27% 13% 5%
5. Marital problems 24% 26% 41% 9%
6. Educational and occupational problems 13% 15% 45% 28%
7. Drug and substance abuse 16% 15% 39% 31%
8. Rape 11% 10% 38% 41%
The frequency of psychological problems

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
18
Business Model

The Project E will be Botswana’s first private psychiatric hospital focused on inpatient and outpatient mental health care
• The Project E will be Botswana’s first private psychiatric hospital
focused on inpatient and outpatient clinical health care.
• Project E is part of the Institute Z, which also include education and
research segments.
• Price: medium
• Geographical focus: Botswana
• Target end-customers: people in need of mental and general medical
health care and support
• Founder: XXXXX
Company profile:
19
Business Model Company Profile
Project E
Legal structure:
100%
XXXXX
Founder

The hospital will provide a full range of mental health services
20
Business Model Services
Inpatient care:
• 8 beds will be used for patients with addiction problems
• 12 beds will serve a range of mental health problems
including mood disorders, anxiety disorders, psychotic
disorders; personality and behavioural problems.
Other services:
• Outpatient services covering psychiatric care and
general medical ambulatory services; emergency
services.
• Pharmacy and dispensary;
• Laboratory services
• Emergency services
• Counselling services will be established
• Weight control clinic
• Youth mental health outreach programs
List of services
Inpatient care services
General Adult Psychiatric care
Subacute & Recovery services
Young people’s Mental Health
Acute Drug, Alcohol and Addiction care & Rehabilitation
Specialist Mental Health Services for Old People
Medical Psychiatry Services
Neuroscience/Neuropsychiatry
Psycho-oncology Services
Community Ambulatory Care Services
Outpatient psychiatric services
Outpatient primary health care services
Outpatient monthly psychiatric clinics for Consultation services
Satellite Psychiatric services
Satellite Primary Health Care Services
Telepsychiatry Services for remote areas
Outpatient Allied Health Services
Outpatient Drug, Alcohol and Addiction services
Outpatient Forensic Consultations
Diagnostics and Therapies
Radiology services
Laboratory services
Electroconvulsive Therapy Suite
Pharmacy
Physiotherapy
Occupational Therapy
Psychosocial Therapies
Hydrotherapy
Weight Management Clinic
Youth Mental Health Outreach Programs
Suicide Prevention Services
Pain Management Services
Oral Health Services

Detailed list of services
21
Business Model Services
• Psychiatry Consulting Rooms x2
• General Practice Consulting Rooms x 2
• Nurse Practitioner x2
• Pharmacy
• Laboratory
• Radiology
• Medical Records
• Psychologist (x2)
• Social Worker
• Counsellor (x2)
• Pastoral Care
• Staff Room & Kitchenette
• Staff Lecture Hall
• Student Room
• Community Hall
• Incineration and Waste Management Facility
• Grounds & Water Department
• Electrical & Maintenance Department
• Allied Health Services
• Pain Management Clinic
• Weight Management Clinic
• Youth Services
• Suicide Prevention Services
OutpatientUnit
20-bed inpatient ensuite unit
Nursing station
Nurses office
Nursing Manager’s office
Psychiatrist’s office
Visiting Psychiatrist’s office
Senior Medical Officer’s office
Medical officer’s office
Staff Room & Kitchenette
Staff ablution (Male & female)
Medication Room
Main Kitchen
Patient’s Kitchenette
Patient’s Quiet room
Seclusion Room
Cleaners Room
InpatientUnit
Laundry
Consultation rooms (x2)
Treatment Room
Patient’s common room
Activities room (x3)
Art Room
Wet Linen Room
Clean Linen Room
Store Room
Exercise Room
Hospital manager’s Office
Finance office
Administration
Secretarial Services
IT Services
The admission program will run in the form of a fixed 5 day program for observation, treatment and counselling followed by
outpatient care; or a fixed 28 day inpatient care for support, psychotherapy and treatment followed by outpatient care.

The Project E will be located in Kgatleng district, a populous part of south eastern Botswana. The proposed location will be in a small village,
Madikwe (River villages) – Mabalane, 60km from Gaborone, the capital city of the country
Locationof RIPCNS
22
Business Model Location
The Project E will be located in Kgatleng district, a
populous part of south eastern Botswana. The proposed
location will be in a small village, Madikwe (River
villages) – Mabalane, 60km from Gabrone, the capital
city of the country.
The location is away from crowded city conditions,
offering a relaxed, natural environment for studying, as
well as easy accessibility to the city and South Africa,
where many Batswana often go for recreational
relaxation.
• The Hospital will be part of the Institute Y. It will share a location with the education unit
and the Ramaboko Research Institute.
• Such neighbors offers excellent opportunity for clinical exposure training for students. This
is in addition to the 5 Government Community Clinics in the area, the main District
Hospital, and the Deborah Retief Memorial Hospital only 40km away. Clinical guidance
and training will be carried out in these facilities.
Neighbors:
The business will be developed in three phases:
•Phase 0 (year 0). Construction of the prefabricated modular building
•Phase 1 (year 1-4). Project E will use prefabricated modular building permanent college
building is being constructed
•Phase 2 (after year 4). Project E will operate its newly constructed permanent facilities.
Expected land size is 15 ha.
Operating facilities:
Description of permanent hospital facilities
The operating facilities will comprise a 100-bed unit, which will include the Youth Ward; Adult Ward;
Geriatric Ward; Subacute Ward; Observation Unit; Medical Psychiatry ward; Neuroscience Ward; and a
Drug and final Alcohol (Addiction) Wing. In addition, there will be a Minor Theatre and an
Electroconvulsive Therapy Suite for psychiatric procedures. The facilities will also include two bedded
shared rooms and single rooms with ensuites, dining facilities, common kitchenettes, relaxation rooms,
activity rooms, counselling rooms, doctors’ rooms, nurses’ rooms and stations, staff facilities, medication
and procedure rooms, as well as reception facilities for the wards. There will be outpatient clinics with
consulting rooms, pharmacy and reception facilities. The administration block will comprise senior staff
offices and all the necessary facilities such as ablutions, kitchens and secretarial facilities, and on the
same block there will be security services. There will be sports facilities for staff, trainees and patients to
promote recreational activities. There will also be a hydrotherapy pool. There will be a common
restaurant, a garden, student and staff houses. There will be a power service area comprising solar
panels and an electric power generator. There will also be a runoff water reservoir near the gardening
facilities. The facility will run with approximately 350 staff, both professional and industrial.

Hospital Ground
23
Business Model Hospital

Road map of business development
24
Business Model Business Launch
Year 1 Year 2
• 20-bed facility and outpatient services in
leased premises
• Counselling – Psychological, Pastoral
• Drug and Alcohol Services plus counselling
• No acute admissions
• Special Clinics - Pain Management; Weight
Management; Suicide Prevention
• Initiate three-year construction of permanent
hospital building (eventually increasing
number of beds to 100)
• Increase number of beds to 30 in year 2
 10 Adult Acute
 10 Young People’s Mental Health
 10 Addictions & Drug and Alcohol Services
• Psychotherapy and Counselling
• Expansion of Drug and Alcohol & Addictions
• Acute admissions – No use of the Mental
Health Act detentions

Key operational flows
25
Business Model Operational Flows
ProjectE
2
3
5
1. Customers of Project E will be people experiencing mental
health problems and disorders ranging from children to the
elderly with a focus on groups with high and middle income.
2. Marketing activity will be conducted in-house.
3. The Company will closely cooperate with BCBMHS,
providing facilities to students for medical practice and
training and attracting qualified medical staff to the hospital
4. The Company will regularly purchase the following items:
furniture; medical equipment, etc.
5. The Company will lease land and operating facilities for the
first 5 year of operations
6. The Company will hire a reliable construction company and
architect to plan and construct a permanent hospital
building by 2020.
Description
Landlords Construction company and architect
Customers
Marketing
1
6
4
College
Suppliers/ Providers
BCBMHS

Paths to further development
26
• Organic growth – increase number of patients
• Geographical expansion into other regions of Botswana
• Service development through introduction of specialised psychiatric
services; implementation of mobile clinics; Telepsychiatry and other
remote services
Paths of development:
Business Model
Paths to Further
Development
• Initial public offering in 5-7 years
• Sell the business to a strategic investor – one of the global leaders in
the mental health care industry
• Merger with or acquisition by large African health care provider(s)
Exit strategy (7-10 years):

Organizational structure
27
Business Model
Organizational
Structure
Medical Manager
Nursing
Manager
Accountant
MarketingManager
PRO
Mr XXXX
Administration
Manager
Supplies Officer
Catering
Manager
Founder
Director
Dr XXXXX
Managing
Director
Mr XXXX
Senior Medical
Officer
Nursing Team
Leader
Assistant
Accountant
Marketing
Assistant
Administration
Officer
Suplies Office
Assistant
Cook
Medical Officer Nursing staff
Marketing
committee
Administration
Assistant Kitchen hand
Support services
staff
Paramedics
Expected number of staff: 50, including academic staff from
a wide range of disciplines and education levels (from
certificates to Master’s Degrees). Staff will be trained and
share knowledge with XXXXX.
XXXXX will be the main source of qualified personnel,
including Nurse Practitioners and Psychiatric Technicians.
Project E will be managed by hospital management board.
Strategic management will be performed by Institute Z
covering all segment of the group: hospital, education and
research.

Mission of the Company is to deliver holistic, high quality and competitive evidence based mental health, clinical neuroscience, and
psychiatric care; and neuroscience research
• To deliver holistic, high quality and competitive evidence based mental health, clinical neuroscience, and psychiatric
care; and neuroscience research
Mission
Goals
• To become a major provider of mental health care in Botswana and, eventually, other countries as well
• To increase number of beds in the hospital from 20 to 10 over the next 10 years
• 600 inpatient admissions in year 1
• To complete construction of the hospital building in year 5
• To become a teaching affiliate for government agencies and private health care institutions
• To participate in non-profit programs/projects (including school wellness programs) that aim to increase early detection
of mental health
• To act as a practical training base for education and research segments of Institute Z
• To achieve gross revenue - $11,9m in year 7
• To develop mobile clinics and telepsychiatry services
• Long-term, to expand the business by opening new hospitals in another locations
• Long-term, to develop the business in supplementary fields (e.g., Neuroscience/Neuropsychiatry, Research)
• Long-term, to introduce more specialised psychiatric services (e.g. Child and Adolescent; Geriatric Psychiatric Care;
Forensic Services, etc.)
28
Business Model Mission, Values, Goals
• Excellence
• Passion
• Leadership
• Quality
Core values

Managementsummary -
strategies/objectives
List of actions
Description:
• Bring high-quality but affordably priced mental
health services to the market
• To add value through close cooperation with
education center XXXXX
• Use founder’s industry experience and
contacts to build strategic, productive
relationships with partners
• To build facilities for modern hospital
• Build brand awareness
• Implement innovative marketing strategy
• Achieve synergistic effect throughout entire
range of provided services
• Be cost-effective and efficient
• Service and geographical development
• Be socially responsible
• To get all necessary licenses to provide mental
health services in Botswana
• To recruit qualified local and international staff
• To train staff in Project E using facilities of XXXXX
on ongoing basis
• To hire reliable construction company, architect
and service providers
• To cooperate with globally known hospitals,
sharing knowledge and best practices
• To develop clinical programs
• To introduce new services, for example,
telepsychiatry
• To develop loyalty programs to retain customers
• To improve processes continuously
• To initiate online and offline marketing campaigns
• To outsource non-core activities to avoid
unnecessary costs
Bring high-quality but affordably priced mental health services to the market
29
Business Model Strategies

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
30
Marketing Plan

The Company is implementing a penetration strategy to pursue the objective of quantity maximization by means of a low price
• Quality leadership
• Maximize quantity
• Revenue maximization
Pricing
objectives
Pricing strategy
Penetration strategy
• Penetration strategy pursues the objective of quantity maximization by means of
low price
• The Company will set prices slightly below those of market analogues
Price options
31
Marketing Plan Pricing Strategy

POWER OF SERVICE
PROVIDERS
• High concentration of service
providers
POWER OF BUYERS
• High brand loyalty
• Low concentration of buyers
• High demand elasticity
• Fully informed buyers
BARRIERS TO ENTRY
• Investments in CAPEX is required
• Qualified medical staff is required
• Reputation/good brand is required
• Existence of substitute products
• Low switching costs for customers
32
Medium barriers exist to entry into the market of mental health services in Botswana
Marketing Plan Five Forces Analysis
Bargaining
power of
buyers
Bargaining
power of
providers
Threat of new entrants
Threat of substitutes
COMPETITORS
High differentiation
Low competition

Lack of mental health providers in Botswana creates tremendous opportunities for market entrants
• Attractive location of the hospital in an area with substantial
need for such a facility
• Synergistic effect: hospital, education and research facilities
in one place
• High-quality but affordably priced solutions
• Innovative marketing approach
• Experienced management team
• Founder substantial industry contact network will help to
make the business successful extremely quickly
• Lack of brand awareness
• Start-up business
• Lack of financing
• Lack of qualified health care personnel in Botswana
• Availability of substitute services
• Price pressure will lead to further decrease in margins
• Botswana is one of the fastest-growing economies in the
world
• Lack of mental health providers in Botswana
• High demand on mental health services in Botswana
• Available expensive solutions in South Africa create
opportunities for private mental health hospitals in Botswana
• Further geographical/market development is available
Strengths Weaknesses
Opportunities Threats
33
Marketing Plan SWOT Analysis

The main marketing objective of the Business is to develop and retain brand awareness associated with Project E
34
Marketing Plan Marketing Strategy
• To develop and retain brand awareness associated with Project EMarketing
Objectives
Marketing
Strategy
Marketing
Make-up
Differentiation
• Competitive advantage can be gained through a focus on the way the Project E brand can differentiate itself from its
competitors in terms of its:
• Quality care
• Fair price
• Best practices
• Product: To position the service as solution, one that the market needs
• Price: Fair
• Promotion: Promotion will be through online and offline marketing methods
• Place: Botswana
• People: Experienced staff will need to be recruited

Marketing tools
Online/offline advertising advertising
Social Networks
• Purpose: Social media will be used primarily as a attraction tool to create a
communication channel with potential clients, to highlight the latest news,
mental health services, programs, campaigns.
• Strategy: Facebook fan pages, Twitter and blogs will be created with
minimum of once-daily updates. This will have an added advantage of
contributing to the overall SEO effort as well.
• Keys to Success: The keys to a successful social media launch include the
following:
 Successful and aggressive initial friending/following campaign
 Ability to create compelling blog content
 Ability to find time to interact with users via Twitter and Facebook
 To launch display and video marketing campaign targeting relevant
keywords to attract club-affiliated audience
Traditional marketing tools (TV and Radio ads, advertising in
printing media)
• Purpose: Leverage the allowance of advertising to attract clients at a
competitive CPA.
• Strategy: Build marketing campaign based on communication with potential
clients through advertising on local TV, Radio channels and printing
newspapers like the Botswana Daily News; Mmegi Monitor; The Voice;
Saturday Standards and The Advertiser.
• Keys to Success: The keys to success for a successful traditional marketing
campaign will include the following:
 Qualified/Well-trained marketing personnel
 Proactive and creative marketing personnel
 Availability of resources to implement traditional marketing
tools
SEO
• Purpose: To secure top search engine placement in Google, Bing, Yahoo in
order to drive site traffic to website of the Project E. SEO maximizes the
visibility of the website via search engines.
• Strategy: A standard SEO strategy involving onsite optimization, link building
and content generation will be employed. Selection of an outsourced SEO
firm will be completed to manage this process.
• Keys to Success: The keys to a successful SEO launch include the
following:
 Selection of a budget-appropriate but also upfront and effective SEO
firm
 Focus on relevant keywords like “mental health services”
Google Adwords
• Purpose: To leverage the allowance of paid advertising on Google and to
acquire direct leads at a competitive CPA for Project E
• Strategy: A standard AdWords strategy of identifying potential keywords
and then whittling said keywords down to a profitable and manageable list,
utilizing tests in ad copy. Landing page design and acquisition offer will be
employed.
• Keys to Success: The keys to a successful Google AdWords launch
include the following:
35
Marketing Plan Marketing Mix

Marketing tools
 Successful acceptance by Google
 Ability to quickly test and to respond to ad copy, landing page copy and
acquisition offers
 Ability to track and to determine ROI and CPA of AdWords sign ups
Offline industry marketing tools
• Purpose: Publishing content and advertising in online medical and mental
health magazines and forums will enable Project E to reach a large audience
of relevant readers with an interest in mental health services.
• Strategy: Build marketing campaign based on communication with potential
clients.
• Keys to Success: The keys to a successful traditional marketing campaign
include the following:
 Qualified/well-trained marketing personnel
 Proactive and creative marketing personnel
 Available resources for the implementation of traditional marketing
tools
 Focus on relevant media resources
36
Marketing Plan Marketing Mix

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
37
Financial Projections

Assumptions used in the model
38
Financial Projections Assumptions
Outpatient services
Price per treatment, $ 80
Annual increase in price per treatment, % 9%
Maximum number of clients per day 90
Utilization rate, % 75%
Annual increase in utilization rate, % 7%
Inpatient services
Average price per day 110
Annual increase in price per day, % 9%
Number of beds:
year 1 20
year 2 30
year 3 30
year 4 30
year 5 100
Utilization rate, % 75%
Annual increase in utilization rate, % 4%
15%
30%
25%
25%
5%
Structure of marketing expenses, %
Social Media Traditional marketing tools
Online marketing Participation in career fair, printing materials
Other
Assumptions used in the model - expenses
Annual marketing costs, $ 100,000
Staff costs, $ 606,000
Other expenses, $ 70,000
Annual increase in marketing expenses, % 35%
Annual increase in other expenses, % 35%
Annual increase in staff costs in year 3 and 4, % 10%
Annual increase in staff costs in year 5, % 35%

39
Financial Projections Assumptions
Annual staff costs, $
# of staff
Annual salary,
$
# of staff Annual salary, $ # of staff Annual salary, $
Managing Director 1 35,000 2 80,000 3 160,000
Administrator 1 10,000 1 15,000 1 15,000
IT specialist 1 12,000 1 13,000 2 40,000
Accountant 1 10,000 2 23,000 3 40,000
Supplies officer 1 10,000 1 12,000 2 28,000
Psychiatrist 2 28,000 2 28,000 3 42,000
Medical Officer 4 56,000 4 56,000 4 56,000
Paramedics 2 28,000 2 28,000 2 28,000
Nursing Manager 2 28,000 2 28,000 2 28,000
Psychologist 4 56,000 4 56,000 4 56,000
Social Worker 2 16,000 2 16,000 2 16,000
Counsellor 4 40,000 4 40,000 4 40,000
Pastoral Counsellor 2 20,000 2 24,000 2 24,000
Nurses 12 120,000 12 132,000 18 216,000
Security officers 3 27,000 3 27,000 3 27,000
Auxiliary Staff 4 36,000 4 40,000 4 48,000
Cleaners 4 32,000 4 40,000 4 50,000
Groundsman 1 8,000 1 8,000 1 8,000
Administrative Assistant 2 16,000 2 16,000 3 24,000
Drivers 2 18,000 2 18,000 2 18,000
Total 55 606,000 57 700,000 69 964,000
Position
Year 1 Year 2 Year 3

Sales
40
Financial Projections Sales
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Revenue structure, %
Outpatient services Inpatient services Telemedicine
0
20
40
60
80
100
120
140
160
180
200
Changes in average price per treatment, $
Outpatient services, per treatment Inpatient services, per day
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Utilization rate, %
Outpatient services Inpatient services
42%
9%
12%
15%
10%
8%
4%
Structure of operating expenses, %
Staff costs Marketing costs Medical and surgical supplies
Contracted services Other supplies and services Communications and utilities
Other expenses
Source: Management information

Projected profit and loss account – the Company will become operationally profitable starting from year 1
41
Financial Projections
Profit and Loss
Account
Projected Profit and Loss account
$ Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Revenue - 2,573,250 3,322,843 4,226,140 5,109,335 9,805,745 10,941,925 11,926,699
Operating expenses
Staff costs - (606,000) (700,000) (964,000) (1,060,400) (1,431,540) (1,932,579) (2,608,982)
Marketing costs - (100,000) (135,000) (182,250) (246,038) (332,151) (448,403) (605,345)
Medical and surgical supplies - (167,356) (193,316) (266,223) (292,846) (395,342) (533,711) (720,510)
Contracted services - (208,734) (241,112) (332,046) (365,251) (493,089) (665,670) (898,654)
Other supplies and services - (149,096) (172,223) (237,176) (260,893) (352,206) (475,478) (641,896)
Communications and utilities - (119,277) (137,779) (189,741) (208,715) (281,765) (380,383) (513,517)
Other expenses - (70,000) (77,000) (84,700) (93,170) (102,487) (112,736) (124,009)
Total operating expenses - (1,420,463) (1,656,430) (2,256,136) (2,527,312) (3,388,579) (4,548,960) (6,112,912)
EBITDA - 1,152,787 1,666,413 1,970,003 2,582,022 6,417,166 6,392,965 5,813,787
Deprecation - (106,429) (106,429) (106,429) (106,429) (906,429) (906,429) (906,429)
Income tax (22%) - (230,199) (343,197) (409,986) (544,631) (1,212,362) (1,207,038) (1,079,619)
Net profit/(loss) - 816,159 1,216,788 1,453,588 1,930,963 4,298,375 4,279,499 3,827,739
EBITDA margin, % 32% 37% 34% 38% 44% 39% 32%

Payback period of the Business is 6.5 years
42
Financial Projections Cash Flows
Projected Cash Flows
$ Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Receipts & Disbursements
Beginning cash 9,045,000 8,300,000 9,222,588 7,879,138 6,772,488 6,143,213 11,348,017 16,533,944
Receipts 0 2,573,250 3,322,843 4,226,140 5,109,335 9,805,745 10,941,925 11,926,699
Disbursements
Construction of prefabricated modular building
(745,000)
- - - - - - -
Construction of permanent brick structures - - (2,666,667) (2,666,667) (2,666,667) - - -
Staff costs - (606,000) (700,000) (964,000) (1,060,400) (1,431,540) (1,932,579) (2,608,982)
Marketing costs - (100,000) (135,000) (182,250) (246,038) (332,151) (448,403) (605,345)
Medical and surgical supplies - (167,356) (193,316) (266,223) (292,846) (395,342) (533,711) (720,510)
Contracted services - (208,734) (241,112) (332,046) (365,251) (493,089) (665,670) (898,654)
Other supplies and services - (149,096) (172,223) (237,176) (260,893) (352,206) (475,478) (641,896)
Communications and utilities - (119,277) (137,779) (189,741) (208,715) (281,765) (380,383) (513,517)
Other expenses - (70,000) (77,000) (84,700) (93,170) (102,487) (112,736) (124,009)
Income tax (22%) 0 (230,199) (343,197) (409,986) (544,631) (1,212,362) (1,207,038) (1,079,619)
Total Disbursements (745,000) (1,650,662) (4,666,293) (5,332,789) (5,738,610) (4,600,941) (5,755,998) (7,192,531)
Changes in Cash (745,000) 922,588 (1,343,450) (1,106,650) (629,275) 5,204,803 5,185,927 4,734,168
Ending cash 8,300,000 9,222,588 7,879,138 6,772,488 6,143,213 11,348,017 16,533,944 21,268,112
Key performance indicators
CF (1-7 years), $ 12,223,112
NPV (1-7 years)*, $ 949,696
IRR, % 4%
Payback period 6.5 years
*Discounted rate 3%
Source: M anagement information

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
43
Management Team

Management team
44
Management Team
Education:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
Experience
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
Position: Founder director
Address:
Phone #:
Email:
XXXXX

Management team
45
Management Team
Education:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
Experience
• XXXXX
• XXXXX
• XXXXX
• XXXXX
• XXXXX
Position: Founder director
Address:
Phone #:
Email:
XXXXX

Section Page
Disclaimer 2
Executive Summary 4
Market Research 7
Business Model 18
Marketing Plan 30
Management Team 43
Use of Proceeds 46
46
Use of Proceeds

The Company seeking an investment of $9m, mainly to finance CAPEX and the working capital during the first 12 months of operations
47
Use of Proceeds
Initial investments, $
Item Amount
CAPEX
Transport
Ambulance 50,000
Hospital Vehicles 100,000
Construction of the building
Construction works (prefabricated modular building) 400,000
Electricals and plumbing 70,000
Other 25,000
Medical equipment 75,000
Equipment and furniture 25,000
Construction of permanent brick structures in year 3-5 8,000,000
Working capital 300,000
Total 9,045,000

Hospital business plan sample

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