BUSINESS PLAN BUSINESS PLAN MEDICAL DEVICE MEDICAL DEVICE START-UP START-UP

SOUTH AFRICASOUTH AFRICARavi Nishankar(BMS-Marketing/Mumbai University)

Executive SummaryExecutive Summary Introduction Overview business plan / Important Steps South Africa – Medical Devices Industry

Review Govt. Approvals Financing Management team Mission Vision Conclusion

IntroductionIntroduction Starting a new business can be both

exciting and frightening. There are many practical things to consider

-- location, size, employees, quality control, etc.

And then there are the anxieties and concerns: "Will I make it?" "Am I in over my head?" "Where do I start?"

All these will be taken care by – “Good TEAM”

Overview business conceptOverview business concept To help ensure our business' success, it is

of the utmost importance that we are aware of all the regulations, requirements and aspects of operating a business before beginning our endeavor.

We need to ensure that we have all necessary licenses, permits or registrations applied for and approved before we open our door.

STEP-1 STEP-1 Target a niche and target market

for our medical supply business. For example, we can sell supplies to

Radiology - Ultrasound, CT Scan , MRI Scan, X-Ray, Mammography (All New or Refurbished)

Urology – Equipment like Scopes, Cameras, Lasers, Lithotripsy, Therapeutic /Consumables

Other Hospital Surgical / Consumables

STEP-2STEP-2 Contact our state's public health

department or medical board to find out if we need to be licensed to sell the types of medical equipment we're interested in carrying.

This is not required for all medical suppliers, except those specializing in specific types of equipment.

Eg. Radiation / Nuclear Med etc.

STEP-3STEP-3 Obtain the permits required in our city

and state to start a business. This may include a sales and use tax

permit, resale permit, assumed name certificate, or doing business as, or Employer Identification Number ETC.

And obviously – COMPANY NAME

STEP-4STEP-4 Our storage facility (will it need at

initial stage?) to be clean and free of dust to prevent our supplies from becoming contaminated.

Alternatively, a clean spare room attach to office or large closet that our dedicate solely to storing inventory would be suitable.

STEP-5STEP-5 Establishment to wholesale accounts with

distributors of medical equipment suitable for our niche –

Buying stock is necessary to make a profit. Manufacturers can be found online, in phone

books and business directories. We need to provide business documentation

and order a minimum dollar amount to open a wholesale account. Eg. Medtronic, USA - Catheters / Stents , baloons, pacemakers

STEP-6STEP-6 Offer incentives for medical

professionals to patronize our medical supply company.

For instance, we can offer discounted or free shipping, free delivery within our local area or volume discounts.

Free samples to make them habitual Better pricing offer on devices in first

purchase

STEP-7STEP-7 Market our medial supply business to

medical professionals, especially those within our city.

Send fliers and coupons, sponsor medical conventions or health fairs, and send news releases to local medical associations and professional groups.

South Africa MarketSouth Africa Market

GeneralGeneral

There are presently “NO” regulations regarding the sale and use of medical devices in South Africa, save for electro medical devices, regulated by Radiation Control, an agency of the Department of Health.

Growth RatesGrowth Rates Compared with the pharmaceutical market, where domestic

manufacturers are now able to meet 50% of demand in volume terms, South Africa’s domestic medical device industry remains

underdeveloped, with imports catering for 90% of the market by value.

The South African medical device market was estimated at USD1.2bn in 2013 generating revenues in excess of ZAR12.1bn and ranks among the top 30 largest in the world.

The market is forecast to grow by a CAGR of 7.7% between 2013 and 2018, driven mainly by the development and upgrade of hospitals through public-private partnerships.

South Africa’s medical device production firms tend to be small or medium sized businesses and often combine distribution activity with manufacturing. Multinational companies present in South Africa often operate in a joint venture capacity with local firms. Most South African manufacturers focus on producing basic medical equipment and supplies. Production is focused on bandages and dressings, medical furniture and low technology items.

Medical Devices Sales by product Medical Devices Sales by product categorycategory

Strengths and OpportunitiesStrengths and Opportunities

Market Size – Govt Market Size – Govt South Africa has a number of public (government run)

hospitals within its nine provinces. These are split into three categories: Academic, District and Regional Hospitals.

For a list of all these hospitals and their contact details, please follow the following links to each provincial department of health:

National Department of Health: http://www.health.gov.za/ Gauteng Department of Health: http://www.health.gpg.gov.za/Pages/default.aspx Free State Department of Health:

http://www.fshealth.gov.za/portal/page/portal/fshp/intranet Eastern Cape Department of Health: http://www.ecprov.gov.za/Pages/default.aspx KwaZulu Natal Department of Health: http://www.kznhealth.gov.za/ Limpopo Department of Health: http://www.doh.limpopo.gov.za/ Mpumalanga Department of Health: http://www.mpuhealth.gov.za/ North West Department of Health: http://health.nwpg.gov.za/dohnw/ Northern Cape Department of Health: http://www.northern-cape.gov.za/ Western Cape Department of Health: https://www.westerncape.gov.za/dept/health

Market Size – PrivateMarket Size – Private Life Healthcare Hospitals: www.lifehealthcare.co.za The Hospital Group has 48 Facilities with 7 713 beds. National Hospitals

NHN has 165 members, consisting of 52 Hospitals, 37 Day Clinics, 25 Psychiatric Facilities, 18 Ophthalmology Facilities, 33 Sub-Acute Facilities.

Netcare Ltd: www.netcare.co.za Netcare Ltd runs 31 Hospitals in Gauteng, 9 Hospitals in KwaZulu Natal,

1 Hospital in Mpumalanga, 1 Hospital in North West Province, 4 Hospitals in Free state, 4 Hospitals in Eastern Cape and 6 Hospitals in the Western Cape.

Mediclinic: http://www.mediclinic.co.za/Pages/default.aspx Mediclinic runs 49 private hospitals throughout South Africa and 3 in

Namibia with more than 7 000 beds in total. l Network (NHN): www.nhn.co.za

FinancingFinancing Finance is most important “Pillar” of any

organization. We need proper initial capital investment plan. Many banks support small scale business start-

up Budget allocation and demo equipment

investment plan might be critical stage Investor can be good idea for quick start-up of

any business Business sustainability plan for at least 2 years

MissionMission

“We as a Team need to make ensure that the marketing of health products, Devices to HCPs…is carried out in a responsible,

ethical and professional manner…”

VisionVision

The human life is valuable and deserves to be treated with respect and dignity. Hence We commitment ourselves by letting the healthcare  community benefit through the giving of best medical technology

ConclusionConclusion

Coming together is beginnings...Keeping together is progress...working together is success !