I.

Checklist of Elements of the Business Plan for an

Innovative Health Care Venture
1. Caveats: Life is not Literature; Beware of True Believers;
Basic is Beautiful

2. Clear explanation of the venture; Clear assignment to one of
the three types of new health care ventures

3. Six Factors Alignment

4. Strategic Market Assessment

a. Market Information

b. Research findings converted into a marketing plan

c. Competitive Strategy

5. Financial Viability

a. Break-even Volume

b. Market Share Analysis

6. Valuation Analyses

a. Cash Flows

b. Terminal Value

c. Rates of Return

d. Exit Value Analysis

7. Sustainability

a. Revenues

b. Costs

c. Management

d. Financial Risk

8. Managerial Assessments

a. Fit of Managerial Skills and Type of Venture
b. Wannabes versus Experienced Managers
9. Societal Impact

10. Technological Risk Assessments

a. Understanding the Black Box

b. Depth of Research

c. Downside Risks

d. Financial Considerations

e. Regulatory Issues

f. Potential Competition from Other Technologies

g. Likelihood of a Patent

h. Production Considerations

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Business Plan Grading Checklist
(1 point per yes)
1. Clear explanation of the venture? Yes o No o
2. Clear classification into one of the three types of innovative
health care ventures?
Yes o No o
3. Explanation of how venture is aligned with the Six Factors?
Structure Yes o No o
Financing Yes o No o
Consumers Yes o No o
Accountability Yes o No o
Technology Yes o No o
Public Policy Yes o No o
4. Strategic market assessment
Convincing sizing of the market? Yes o No o
Are research finding about the market converted into a
marketing plan?
Yes o No o
Clear delineation of one of the three competitive strategies
(first mover; fast follower; legal barriers to entry)? Yes o No o
5. Financial Viability
Analysis of break-even volume? Yes o No o
Analysis of market share required to break even? Yes o No o
6. Valuation Analysis
Cash flow statement? Yes o No o
Terminal value analysis? Yes o No o
Rate of return analysis? Yes o No o
Exit value analysis? Yes o No o
7. Sustainability
Are the revenues sustainable? Yes o No o
Are the costs sustainable? Yes o No o
Is management sustainable? Yes o No o
Are the financial risks sustainable? Yes o No o
8. Managerial Analysis
Fit between management team and type of venture? Yes o No o
9. Societal Impact
Is there a clear explanation of how the venture does
good? Yes o No o
Total Grade ____________/23
If Technology Venture:
1. Understanding the Black Box
Does the explanation give you an understanding of the
technology? Yes o No o
2. Depth of Research
Does it seem as if a sufficient amount of research has been
undertaken? Yes o No o
3. Downside Risks
Are there NO or MINIMAL downside risks? Yes o No o
4. Financial Considerations
Will medical personal accept this in the market? Yes o No o
Are technologies financially beneficial to adopters? Yes o No o
Is there no to low risk of creation of turf warfare among
different
physician specialties? Yes o No o
Are there no to minimal requirements for new types of medical
personnel? Yes o No o
Do technologies fit existing coverage, coding, and payment
regulations? Yes o No o
Do technologies create a product and/or customer pipeline?
Yes o No o
Is the market size attractive and is penetrating the market
relatively easy? Yes o No o
5. Regulatory Issues
Are there minimal regulatory issues? Yes o No o
6. Potential Competition from Other Technologies
Is the potential competition from other technologies relatively
low? Yes o No o
7. Likelihood of a Patent
Is there a high likelihood of a patent? Yes o No o
8. Production Considerations
Do production capabilities exist and will they be well
executed? Yes o No o
Total Grade ________/14
Copyright Regina Herzlinger, 2014