Business Plan for Cosmetic Clinic  Start-up- Alpha Centre

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1.     Introduction

The healthcare industry in Dubai is expected to grow because the demand for clinical services has been increasing. New improvements in this sector are being witnessed. Moreover, hospitals and clinics are now regulated by the Government of Dubai. Competition has been growing simultaneously and in order to gain a competitive advantage, it is necessary to develop a business plan. Here, a business plan will be created for Alpha Centre. It will be located in Dubai, Jumeirah.

Scope of the study

Dubai is regarded as a multi-cultural hub and people from different nationalities visit the city in order to gain better access to services (Jumana Al Tamimi, 2018). Cosmetic surgery is in demand and therefore, it opens up enormous opportunities for growing a business. The newly established centre would ensure profit, growth and advancement. The start-up would be a good idea. Following a business plan would ensure strategic growth of the start-up. The business plan would consist of an operational plan, marketing plan, management process and a complete financial budget.

Objectives of the study

• To prepare a business plan for a cosmetic clinic in Dubai
• Understand the move of competitors and to develop a functional strategy
• Gain insights regarding the hospital sector in Dubai so that standard quality services can be developed

2. Company Description

Mission Statement

The mission of Alpha Centre is to become an institution which delivers comprehensive clinical cosmetic services and serves the needs of the customers in Dubai using a customer-centric approach.

Goals and Objectives

• To provide technologically advanced cosmetic treatment to the customers
• To provide services that will exceed the expectations of customers
• To Ensure the sustainability of cosmetic surgery business in Dubai

Business Philosophy

• Maintaining a valuable relationship with patients/customers
• Offering quality-based treatment
• Recognizing the efforts of employees
• Maintaining a comfortable and welcoming environment in the clinic

Industry Description

In the Middle East, the demand for cosmetic surgery is on the rise because enhancing personal appearance is one of the needs of the population. Medical aesthetics has been gaining popularity according to the data of the Global Wellness Institute. The healthcare industry is expected to grow at a rate of 7% by 2020 (Zain, 2020). Moreover, medical tourism has gained prominence, as well. There is a constant demand for trained international industry professionals. The goal of the Dubai government to reach 1.3 million medical tourists can be achieved because the DHA has launched the Dubai Health Experience Program (Gulftoday.ae. 2019). . The customer base is high as well. Acquiring foreign clients who are willing to spend on cosmetic treatments will not be an issue.

Business Competencies

In order to set a cosmetic clinic, it is essential to develop professional competencies and maintain an annual performance so that the business can gain a competitive advantage (Confente and Brunetti, 2017). Alpha Centre is focussed on creating a state-of-the-art facility so that it can provide clinical care at a highest level. Dedicated and experienced physicians, receptionists and nurses will be hired. They possess the expertise to meet the needs of the patients. The goal is to offer finest service at an affordable price. Hence, discovering the quality services would be beneficial for the patients. A large team of specialist doctors will consistently meet the various service-related needs of patients.

Ownership form

Alpha Centre will be operated as a sole proprietorship. It implies that the cosmetic clinic will have no separate existence from the owner. The owner would be entirely responsible for the profit and loss in the business. A sole proprietorship has been considered as the best option by the owner because the owner will have complete control over the business expenses (Khan, 2017). It is a simplified structure and the tax reporting system is simplified in nature.

3. Products and Services

Service Description

The following services will be offered at Alpha Centre –

• Cosmetic surgeries – Specific areas of the body will be treated for enhancing its appearance. The type of surgeries that will be provided include arm lift, brow lift, and cheek implant, chin implant, dimple creation, breast augmentation, breast reduction and composite filling.
• Dentistry- The services that will be provided are composite filling (1surface /2surface /3surfae), Root canal treatment (Single/Multiple), Extraction (Simple), Extraction (Impacted), Laser Teeth Whitening and Dental Clean and Polish. The overall oral health needs of patients shall be met at Alpha Centre.
• Laser Treatments for Hair Removal- By using a concentrated light beam, unwanted hair will be removed in facial parts such as eyebrows, earlobes, chin, upper lip, cheeks, forehead and jawline. Similarly, unwanted hair from body parts such as hands, toes, underarms, full arms, half legs, half arms and full legs shall be removed by offering this service.
• Laser Treatments for Scar Vanishing- The purpose of this treatment is to improve the outer layer of skin so that the appearance can be improved. Damaged skin cells can be removed using this treatment.
• Weight/Fat Loss- Fat or weight would be permanently removed in order to refine the contour of the body.
• Body Sculpting- The service would be provided in order to destroy the fat cells without using surgery.
• Lasik Eye Surgery- The cornea will be reshaped by conducting the surgery and the process is pain-free. Only 15-20 minutes might be required to perform the surgery on both the eyes.

Competitive Advantages

In order to establish in the market, a business must offer services and products at an affordable price. The emphasis should be upon innovation, quality and price (Subramaniam et al., 2017). In Dubai, Alpha Centre might face stiff competition from Lucia Aesthetic & Dermatology Centre & Clinic and Aesthetica Clinic, Jumeirah. Nevertheless, Alpha Centre has a greater possibility of gaining a competitive advantage over other cosmetic surgery clinics.

Pricing Structure

4. Marketing Plan

Market Research

The healthcare sector in UAE is focussed on providing quality cosmetic services and despite market restraints; the industry is likely to grow in the coming decades (de Oliveira et al., 2018). Therefore, a marketing plan has been prepared to understand the scope and nature of the cosmetic surgery market.

Economics

• Industry facts– Dubai tops the medical tourism business and the industry has attracted tourists as well as the local population (Younies et al., 2016). The market will witness growth due to the popularity of cosmetic procedures among the younger population.
• Target market- The target market are the people aged 30-65. These consumers show ageing signs, dark spots and reduced skin elasticity. Similarly, young customers aged 25-30 and often concerned with appearance are the target customers.
• Market Segmentation- Geographic location will be Dubai, Jumeirah and customers in the age group 20-30 and 30-65 has been targeted. Preferably people concerned about looking young, presentable and confident usually prefer cosmetic clinic services (Nguyen et al., 2017).
• Growth potentials- The global trends suggests that individuals suffering from any medical condition and want to remove or treat unwanted portions of their body are increasing in number. Statistics suggests that by 2023, the market of cosmetic surgery is likely to be at a CAGR of 7% (Feng et al., 2019). Hence, demand is high and growth potentials exist as well.
• Business barriers- Stiff competition due to rising number of cosmetic clinics in Dubai market can be a serious barrier or threat to the start-up. Sudden fall in the quality of treatment might also reduce the rate of treatment.

Services/Products – Features and Benefits

The services that will be offered at Alpha Centre are cosmetic surgeries, dentists, laser treatments for hair removal and scar vanishing, weight/fat loss and body sculpting and lasik eye surgery. These services have been designed particularly to serve the needs of patients. The services would be beneficial as it will improve image by reducing or treating unwanted body parts, increases confidence and service users are likely to feel comfortable. Lastly, they will be satisfied with their appearance and this in turn will improve their mental health.

Customers- Women in the age group 30-60 usually need surgical procedures in order to enhance appearance. Hence, women are the primary customers. Aged people also require dentistry and fat loss services. Lastly, the younger adults have an increasing need to shape or re-shape their existing body features and they are the potential customers.

Competition- Alpha Centre might face stiff competition from the established and existing cosmetic surgery clinics in Dubai. These are Medical Arts Clinic, The Private Clinic, Wellbeing Medical Centre and others (Ahmed et al., 2018). Services are being provided to thousands of patients and most of these clinics have been operating in the Gulf for more than 10 years.

Niche- The business belongs to the cosmetic surgery niche as demand for treatment and removal of unwanted body parts has become a trend.

Promotion- The services offered at the cosmetic clinic will be promoted by creating a social media presence. In the digital era, onsite reviews and a “social proof” of a business matters. The business will immediately gain credibility because plenty of browsers or potential buyers can be found online. Using an influencer can also help promote the services as the influencers are professionals and they can create visual content that might seem appealing to the customers.

Promotional Budget- Alpha Centre will spend approximately AED 6000-AED15000 for promoting the services online. The budget might fluctuate based on future modifications of services and specialty areas. The advertising budget in case of a cosmetic clinic might vary.

Pricing strategy

The services offered in the cosmetic clinic will be priced based on two pricing strategies. These are penetration pricing and value-based pricing. Since, the start-up will be newly launched in Dubai; penetration pricing strategy will be useful to enter the competitive cosmetic surgery market of Dubai (Gorianova et al., 2017). Similarly, value-based pricing strategy would be useful as the customers are more likely to believe in the worth of the services that is being sold at Alpha Centre.

Proposed Location- Alpha Centre will be based in Jumeirah. It is one of the coastal residential areas in Dubai and the rise of private dwellings or hotel developments will attract the pleasure-seeking tourists.

Distribution Channels – Two types of strategies will be employed by Alpha Centre for distributing its services. These are direct selling and internet retailing. In case of direct selling, the cosmetic services shall be directly offered to customers/patients within a non-retail environment such as in a work environment or home. Internet retailing method will be employed as well and services will be presented on internet WebPages or product shipping centres.

Sales Forecast

5. Operational Plan

Production- The manufacturing solutions will be provided by modifying the technical capabilities. A dedicated fabrication and engineering environment shall be produced. Investments on technology will be made to create surgical equipments and the focus will be on creating computer-assisted software applicable in the cosmetic clinic.

Location- The production and manufacturing of the surgical instruments such as rasps, pliers, osteotomes, ronguers or electrosurgical instruments will be based in plastic and cosmetic surgery centres across Dubai.

Legal Environment- The start-up falls under healthcare sector and the Dubai Health Authority (DHA) has imposed international safety standards that must be followed by cosmetic clinics. The procedures at the clinic should be led by professional consultants as safeguarding the life of patients is mandatory in the healthcare sector.

Personnel- The personnel at Alpha Centre has been outlined below-

Inventory

• Stretch mark removal beauty machine
• Thermolift beauty care tools
• Skin tightening facial equipment
• Adjustable cosmetic treatment bed
• Wrinkle removal microneeding machine
• Whitening injection
• Multi-purpose silicon gloves
• Cosmetic beauty facial bed

Suppliers- The items required for Alpha Centre will be supplied by Al Ajwa Trading LLC, Al Hathboor International, Al Artmiss Company LLC and Al Maina Ent LLC.

Managing Accounts Payable– At Alpha Centre, the accounts payable process will be simplified by reducing the check runs. We will be employing two/month check runs and awareness of cash disbursement ceilings will be created as well. The Accounts Payable staff will need to enter terms in case of each vendor. Moreover, laser printed checks shall be used for updating systems automatically.

6. Management Process

Administration Departments/Organisational Chart

Professional Support-

Board of directors– The members will consider the interests of shareholders and will set bigger agendas for the organization.

Management advisory board– The members will provide strategic advice on the operations and marketing of the start-up. They will provide assistance and influence internal and external groups. They are also responsible for providing non-biased information.

Accountant- The professional accountant would prepare the financial records and make decisions regarding tax. The entire financial operations of Alpha Centre would be looked after by the professional accountant.

Insurance agent– The agent would help identify the opportunity for sales by understanding the client’s portfolio. The agent will also identify risk management strategies and handle the policy renewals effectively.

Banker– The professional banker for Alpha Centre will be accountable for maintaining customer accounts and are supposed to build a strong customer base by developing trust-based relationships.

Consultants– The consultants for Alpha Centre would offer expert advice after studying the industry trends. They will work with the independent contractors.

Mentors and key advisors– The services at Alpha Centre would be improved with the best advice of professional advisors and mentors. Their knowledge and experience of the industry will help the start-up flourish in specific areas.

7. Personal Financial Statement

8. Start-up Expenses and Capitalization

9. Financial Plan

12-Month Profit and Loss Projection

Three-Year Profit Projection

Projected Cash Flow

Opening Day Balance Sheet

Projected Balance Sheet

Break-Even Analysis

10. Conclusion

A business plan has been prepared for Alpha Centre, a cosmetic clinic that will be based in Dubai. It can be inferred that within the UAE medical or healthcare sector, cosmetic industry has the potential for growth. However, sustainability of the start-up depends on improving the service quality and focussing on hiring and retaining qualified medical staff. In this industry, service requirements of national and international patients might differ and therefore, keeping the needs and requirements of cosmetic clinic customers, the plan has been prepared. Within the plan, a competitive analysis has been done to gain deeper insights regarding the threats and opportunities available to a new start-up like Alpha Centre. Quality of treatment and pricing strategies are the key determinants of growth and sustainability of the business. Within the marketplace, the key to success is constant effort and drive towards innovation and research.

11. Recommendation

On the basis of discussion regarding the application of the business plan, it can be recommended that the growth of the business will be ensured if alternative methods can be implemented in the marketing plan, operational plan, financial plan, management process and other areas noted above. In Alpha Centre, it is vital to implement a marketable strategy so that business practices can be improved. Within the cosmetic facility, constant advancements is necessary so that the business can operate within a safe legal environment. Since Alpha Centre will operate based on the regulations of Dubai Health Authority (DHA), it is necessary to adhere to the strict guidelines. Patient safety should be the sole purpose besides profit-making (Kara, 2016). Hence, the patient screening process at Alpha Centre should be a cautious approach. Apart from that, constant technological improvements are necessary. The usage of technology platforms and investing in safer and useful laser technology will also ensure the security of patients. The centre should consider liability insurance and similar other security measures in order to secure the business in Dubai. Winning and retaining client’s trust by implementing safer medical procedures in the clinic is a necessity as well. The centre should focus on using a corrective medical system.