The break-even point for a business is the point at which you are not earning a profit nor incurring a loss. As a financial manager, it is important to know what this point is because an increase in revenue or sales may not necessarily mean an increase in profit. You have to understand the variable and fixed cost behavior related to your business
I am eager to start my health care business in Eye care sector. Where I will be serving the community for affordable eye care treatments. My team will be comprising of best doctors which will assist, guide and take care of the society in eye care sector in all the possible ways. My team will be giving world class affordable service in the region. My goal is to serve the community. Once a year basic eye care education and treatment will be free for the people who can afford it. This will help in marketing my eye care clinic too. I will be using digital and traditional marketing tools to market my eye care center. I would like to locate the business wherein people can reach easily and can have sufficient parking space. My team will be having HR, Financial and Marketing team to help me making wise decisions for future and to manage the organization in the defined goal. Identify the type of organization it is or will be (sole proprietorship, partnership, or corporation) and why this structure is appropriate for your business. Be sure to give your health care business a name. I will be start my health care business initially as sole proprietor as I will be focusing on limited market initially. Once it is being proved that the model is working, then during the time of expansion, I may consider other models like partnership or forming a corporation. I would like to be the sole decision maker my company and the target market is also small; hence I will be using sole proprietorship mode.
I will be naming it as Barnaby Eye Care. Explain whether it is a for-profit or not-for-profit business and why you chose that type of organization structure. It will be a for profit business only although pricing and services will be competitive. Sooner or later expansion mode will be picture wherein I can go for franchise model even, hence from day one it will be a for profit organization certainly by using social responsibilities means too. While starting my goal is to serve the community in better way and I would be growing my business to the state and then to country, hence as a sole proprietor I would like to develop my own culture when comes to health care practices. Discuss the mission of the business, i.e., the purpose the business serves. To cater the importance of Eye care for the community and helping the society by giving affordable and reachable treatments Describe the target market the organization will serve. All age group and gender as eye care is needed to everyone. Middle class and above in geographical territory will be targeted initially to give services. Social activities and free basic checkups for Lower middle class once a year which will further help in marketing too. Explain your role as the financial manager and identify how the finance department fits into the organizational structure. To use the money with proper investments, maintain accounts of the organization, Taxation compliance, to make proper investments of the profit to increase the same, Loans and fund raising, Accounting
Identify any challenges (trends, laws, regulations, industry standards, etc.) facing your business today that may impact its financial viability. Although there are not many challenges in the health care system and if certain are there they can be solved. Apart from this the major challenge is rising land costs and initial investments for machinery costs, high machinery costs, purchasing or leasing land.
1. Identify the variable and fixed costs associated with your selected health care business. Discuss how these costs are affected by changes in productivity levels. Determine what steps you could take to reduce at least two of those costs.