LIFETECH BUSINESS PLAN

Group #4 BSN1 S-5

ARONZA, Lea Rose

EDAL, Jenny Lou

IBAÑEZ, Alice Joy

HAPPINESS, Nnanna

JIMENEZ, Kaycelyn

MADJACO, Brent

MANILA, Mica

NGITIT, Jarret Monty

ORINION, Allinah Nikole

TORRES, Sunshine

JULY 3. 2019
 LIFETECH BUSINESS PLAN

1.0 EXECUTIVE SUMMARY

LifeTech Company intends to offer technology-driven and innovate new products

that will enhance and improve the Philippines medical technologies. The company intends
to grow its business first in the Philippines before going to the international market and all its
employees and team composes of Filipino workers to help increase the employment rate of
the country and help its fellowmen.

Currently, the company is in General Trias Cavite,which is one of the best

geographical location when the target market are Health care institution. In addition, the
Company ensures high profitability and high profit shares as well as good and safe
environment.

The business plan will show how the company will accumulate Php 10,500,000 in a
year while maintaining adequate levels of liquidity. The purpose of this plan is to secure
additional funding from investors and bank. To cover startup cost and to have enough
funds in adding new product line.

LifeTech will produce high quality products with high quality raw materials with the help of
everyone in the team consisting of very skilled workers and professionals through this we
believe that we will achieve to the company’s Vision and goal which is to be the one of
world leaders in manufacturing and inventing new technological equipment on the
medical field.

2.0 COMPANY DESCRIPTION

LifeTech is a technology-driven new manufacturer and research development
company that provides innovations and inventions for the medical world
2.1 OBJECTIVES
Increase sales significantly over the next three years.
Add technological products to the market, again at high gross margin.
Reduce the cost of goods sold while maintaining the high quality of the
products.
To provide jobs to the Filipino community.
To enhance life through technology

2.2 MISSION STATEMENT

To improve life by providing new specialized, high products and
equipment to be used in the medical field by looking on endless possibilities
by using highly skilled Filipino workers and their technology. To strategically
partner with medical institutions to meet with the people’s overall
 requirements and needs while delivering favorable returns to the shareholders
and investors.

2.3 VISION
To be one of the world leaders in manufacturing and inventing new
technological equipment on the medical field and to dramatically enhance
the health and overall life around the world by giving modern technological
help to the people.
2.4 KEYS TO SUCCESS
ATTITUDE- the company believes that a positive attitude will lead towards
success

GENERAL KEY SUCCESS FACTORS

Start small

Know your market

Maintain quality Merchandise

Listen to your customers

Company goals

Plan and control inventory

Market your business

Keep it simple and focused

KEY SUCCESS FACTORS PER AREA

MANUFACTURING RELATED

-Zero defect manufacturing

-High capacity utilization
-Availability of skilled labor

MARKETING RELATED

-Attractive designs
-Aware of the market needs and what is not in the market

SKILLS RELATED

- Expertise in R&D and technology

- Ability to develop innovative products
- Quality control know-how
- Proficient in medical field
 TECHNOLOGY RELATED

-Technical capability to make innovative improvements in production

process
- Product innovation capability
- Research expertise in introducing new products

2.5 COMPANY HISTORY

LifeTech Company is founded by Dr. Santiago on July 22, 2018. He
started this company due to an unfortunate incident in 2016 which led her
wife to coma and her 2 children to immediate death.
Having the skills Dr. Santiago researched and studied the reflexes of human
brain to communicate with his wife.
Along with the incident he found another purpose in life, which is to use his
money, mind and technology to help other people’s lives.

2.6 COMPANY OWNERSHIP

LifeTech is a Conventional corporation founded by the CEO and
major shareholder Dr. Lukas Santiago
Advantages of the corporation is that it is taxed as a separate entity and
Investors have limited liability- Stock holders will only be liable depending on
the amount of investment
2.7 COMPANY LOCATION AND FACILITIES
Location:
We have the main company building —a 645,000, square foot located
conveniently in #37 General Trias Cavite.
The company is in CALABARZON 4a where there is the largest number of
target market with 234 hospitals. The location can be easily accessed and is
in the center of the community.
Facilities and equipments:
LIFETECH has flexible office space (10’ x 15’)
Scientific laboratory space and equipment for startup businesses.
1 library
4 elevators and a separate one for lifting heavy equipment
Complete fire safety equipment ( Fire extinguishers, sprinklers, smoke alarms
and emergency exits)
Function hall
Showroom area
Parking spaces
(APPENDIX 8.1-8.2)
 2.8 COMPANY CONTACT INFORMATION
Telephone: (074) 355 9429
Facebook Page: LIFETECH CORPORATION
https://m.facebook.com/lifetech
Email: lifetech@gmail.com

2.9 LICENSES AND PERMITS

Lifetech Corporation is a registered business and have all necessary
permits and licenses required by the government
(See in Appendix 8.3)

2.10 PRODUCTS AND SERVICES

LifeTech’s product mainly focuses on inventing and innovating
technologically advanced equipment, machines and soft wares.
All products of the company is to be used in the Medical field and for the
enhancement of people’s health.

3.0 ORGANIZATION AND MANAGEMENT

3.1 ORGANIZATIONAL CHART
 3.2 MANAGEMENT TEAM
LIFETECH’s management team have direct knowledge in the
medical industry and possesses necessary administration skills. Our team
includes financial manager, marketing manager, research development and
technology professionals with a 5year minimum experience in their field.
The owner and founder is also a part of research and development. Dr Lukas
Santiago a well-known epidemiologist, Neurologist and cytologist.

3.3 WORKPLACE COMMUNICATION

Open communication –
The company values the idea of everyone in the team.
Effective communication will lead everyone to be on the same page; moving
in the same direction toward the same goal.
The management always communicate their goals as well as those of the
company.

4.0 INDUSTRY ANALYSIS

INDUSTRY ANALYSIS
According to the article in Manilastandard.net on February 15, 2017
“The healthcare sector is emerging as the new sunrise industry, just like the
business process outsourcing companies when they began to redefine
information technology during the early part of the new millennium.”
And a few from the private sector are emerging as vital cogs in helping
deliver more modern, efficient and affordable healthcare methods
technologies to the Filipinos.

According to the Department of health there are over 1796

licensed hospitals in the Philippines. The percentage of numbers of hospitals
by its type is 40% public and 60% private.
 Philippine Hospitals

Public
40% Private
60%

Private Public

The Philippine health care industry is dominated by the private sector with the
public sector playing minor role. The private sector purchases both new and
refurbished equipment

The table below shows the percentage of hospitals by type of ownership on

different regions of Philippines.
 The industry of Medical institution in the Philippines are great and as
of 2019 The health sector got a major boost in the P3.7-trillion General
Appropriations Bill (GAB), getting over a fifth of the P100-billion increase in the
budgets of several departments and constitutional offices this year.
Sen. Loren Legarda, chairperson of the finance committee, said the
Department of Health’s budget this year got a boost of P21.5 billion.
The amounts include P15 billion for the upgrading of hospitals under Health
Facilities Enhancement Program (HFEP).

5.0 MARKET ANALYSIS

5.1 TARGET MARKET
Shadow Target: International Hospitals
Secondary Target: Philippines public hospitals

Primary Target: Philippine private hospitals

Philippine private hospitals (Private-Corporation, Private-Partnership, Private-
Sole Ownership, Private-Non-Profit,
Church-Related)

We focus our strongest market segments on Philippine private

hospitals. Our target are large enough to need the high-quality technology
we produce. Because according to our research, the target market In terms
of output, the total revenues of private hospitals amounted to PhP 46 billion,
an average of PhP 74 million per hospital.
 During the teams research we have found the top best hospitals in the
Philippines in terms of quality, efficiency, size and revenue. And Lifetechs main
target will be this
Top 10 Target Hospitals
#1: St. Luke's Medical Center – Global City.
#2: St. Luke's Medical Center – Quezon City.
#3: Makati Medical Center.
#4: Asian Hospital and Medical Center.
#5: The Medical City.
#6: Cardinal Santos Medical Center.
#7: Manila Doctors Hospital.
#8: World Citi Medical Center.
#9 UST HOSPITAL
#10.Philippine General Hospital (PGH)

5.2 BUYER BEHAVIOR

Individual consumers are not the only buyers in a market there are
also companies. Our company focuses into this model of organizational
buying behavior. Because basing from the target markets they are
organizations/company/institution.
 5.3 SWOT ANALYSIS

STRENGTHS WEAKNESSES

-Innovative aspects -Product cost (expensiveness)

-Location -Start up company

-New in the market -lack of reputation we haven't

established a strong name in the
-Well known, skilled and
market
knowledgeable President/ CEO
-increase in the prices of raw
-strong management: we have
materials
assembled a team that embraces
disciplines and have good
characteristics with expertise in all
areas of the business.

OPPORTUNITIES THREATS

-Technological advancements -Entry of Foreign players/

competitors
-Market developments
-Wage inflation
-Business expansion
-changing customer attitudes
-International market
toward the company

5.4 COMPETITOR ANALYSIS

There are over 2000 medical supplies and equipment companies in
Philippines that supplies hospitals inside and outside the country. There are
different kinds of medical equipment manufacturer companies but there are
no similar to Lifetech’s
Which means “NO DIRECT COMPETITOR”

Competitive advantage of LifeTech is that it focuses on innovation of

equipments and its first product “Comatalk” is new in the market and has no
direct competitors that will able us to dominate the market share.

6.0 MARKETING PLAN

“Lifetech is going to market the products with the use of social media platforms, product
launching conferences and direct meetings”
6.1 PRODUCT
LifeTech’s first product is “COMA-TALK” a new, unique and first
machine designed specifically for patients under comatose stage.
COMATALK will allow the relatives/ family members to communicate to the
patient with the use of modern technology.
The machine will be connected into the patients brain through improved
electroencephalogram (EEG) medical sensor attached on the head of the
patient specifically in the areas of the 4 lobes that will study the reflexes and
will act as the transmitter, that will relay the message and will be analyzed by
the machine and will be projected through the screen with the span of 00005
sec.

Features include:
A. 5 different language installed
(Filipino, English, Ilokano, Mandarin Chinese, Arabic, and Korean)
B. An automatic on and off of the machine upon the brain response of the
patient
C. an alarm that indicates if there is a sign of consciousness of in the patient.
D. Carrier with wheels
 The main objective and purpose of COMA-TALK is to fill in the
communication gap of the comatose patient and their relatives. This will also
serve as hope for the family and can maximize the time with their loved ones.

6.2 PRICE
TOTAL COST- Php 1,050,000
MARK UP - 42% (450,000)
SELLING PRICE- Php 1,500,0000

We must charge appropriately for the high-end, high-quality service and

support we offer. Our revenue structure has to match our cost structure, so
the salaries we pay to assure good service and support must be balanced by
the revenue we charge.
The price of the product will not depreciate in 5-10 years because the
development company will improve the machine and add other necessary
extra features.

Sales strategy and forecast

• The Year Total Sales chart summarizes our ambitious sales forecast. We expect our
first year sale to $22,500,000.00

MONTH No. of Units Cost/unit Sales

1st 3 4,500,000.00
Quarter 1,500,000.00
2nd 3 1,500,000.00 4,500,000.00
Quarter
3rd 5 1,500,000.00 7,500,000.00
Quarter
4th 4 1,500,000.00 6,000,000.00
Quarter

TOTAL SALES
22,500,000.00

Payment methods:
Installment per 4 months in 2 years with 2% interest
Bank transfer
Cash

6.3 PROMOTION
Online Advertising publications and posters
TV advertisements
 Billboard advertisements
Meetings
Product Launchings
(APPENDIX 8.4)

“Use now pay later”

- A marketing strategy of the company and a way to boost the net sales.
Here is where customers who would use the product cannot afford the bill
they can avail our service wherein we will pay all the bill coverage and
they will pay it 6mos to 2 years upon the discharge of the patient.
- It will come with contract with the terms and agreements.

6.4 PLACE/DISTRIBUTION
Calabarzon 4a is the region where we will have intense marketing
because this is where the company stand and the region of the largest
number of hospitals in the Philippines.

More intense advertising in other regions of the Philippines.

The product can be purchased online via email and the company team will
be the one responsible for the transportation of products anywhere in the
Philippines.

7.0 FINANCIAL PROJECTIONS

INCOME STATEMENT

Sales $ 22,500,000.00
App Sales $ 5,000,000.00
COGS $ 15,750,000.00

Gross Profit $ 11,750,000.00

Operating Expenses
Selling Expenses
Advertising Expenses $ 500,000.00
Commissions expenses $ 50,000.00 $ 550,000.00
Administrative Expenses
Office supplies expenses $ 200,000.00
Office equipment expenses $ 400,000.00 $ 600,000.00

Total Operating Expenses $ 1,150,000.00

Operating Income $ 10,600,000.00

Non-Operating Expense
Interest Expense $ 100,000.00

NET INCOME $ 10,500,000.00

 BALANCE SHEET
ASSETS LIABILLITIES OWNERS' EQUITY
Current Assets Current Liabilities
Cash $ 350,000.00 Accounts payable $ 50,000.00 Owners capital $ 600,000.00
Accounts Receivable $ 50,000.00 Wages Payable $ 30,000.00 Accumulated other comprehensive income
$ 60,000.00
Inventory $ 30,000.00 Interest Payable $ 20,000.00
Supplies $ 10,000.00 Taxes Payable $ 30,000.00

T.C.A $ 440,000.00 T.C.L $ 130,000.00

Investments $ 100,000.00 Long term Liabilities Total Owners Equity $ 660,000.00

Notes Payable $ 200,000.00
Non-current assests Bonds Payable $ 400,000.00
Land $ 200,000.00
Building $ 300,000.00 T.L.T.L $ 600,000.00
Equipments $ 200,000.00
Less: Accumulated Depreciation $ 250,000.00
Total Liabilities $ 730,000.00
T.N.C.A $ 450,000.00

Intangible Assets
Goodwill $ 150,000.00
Trade Mark $ 250,000.00

Total Intangible Asset $ 400,000.00

TOTAL ASSETS $ 1,390,000.00 Total Liabilities and Owners Equity $ 1,390,000.00

1st YEAR FINANCIAL PROJECTION

MONTH No. of Units Cost/unit Sales

1st Quarter 3 $ 1,500,000.00 $ 4,500,000.00

2nd Quarter 3 $ 1,500,000.00 $ 4,500,000.00

3rd Quarter 5 $ 1,500,000.00 $ 7,500,000.00

4th Quarter 4 $ 1,500,000.00 $ 6,000,000.00

TOTAL SALES
$ 22,500,000.00
8.0 APPENDIX
8.1 MAP

8.2 Company Building

8.3 LICENSES AND PERMITS
8.4 PROMOTIONS