Social Business Plan

Wrote by:
Craciun Doina-Veronica
Dascalu Delia

The aim of the business plan is both for school purpose and to help
Romanian society to evolve and become a better place for its citizens.

Contents
Mission and Vision...................................................................................................... 3
Mission.................................................................................................................... 3
Objectives and Unique Value Proposition................................................................4
Theory of change.................................................................................................... 4
Our Solution and Unique Advantage.......................................................................5
Strategy and Business Model (Operations Plan).........................................................5
Who will be the beneficiaries (customers)...............................................................5
How we will serve them.......................................................................................... 5
How our program will look like................................................................................6
Office....................................................................................................................... 6
The Team.................................................................................................................... 6
Initial management and governance structure.......................................................6
Employees............................................................................................................... 7
Training.................................................................................................................... 7
Salary...................................................................................................................... 7
Outsourcing............................................................................................................. 7
Key Partners............................................................................................................ 7
Industry Analysis..................................................................................................... 8
CAEN codes............................................................................................................. 8
Position within target market.................................................................................. 9
Marketing Plan............................................................................................................ 9
Product Strategy...................................................................................................... 9
Pricing Strategy....................................................................................................... 9
Placement Strategy............................................................................................... 10
Promotion Strategy............................................................................................... 10
Measuring Results................................................................................................. 10
Risks and Challenges............................................................................................. 11
Financial Plan............................................................................................................ 11
Start-up Summary................................................................................................. 11
Revenues for first 4 months..................................................................................12
Income statement................................................................................................. 12
Capital of the company......................................................................................... 13

Overview of Financial Projections..........................................................................13

Salaries................................................................................................................. 14
Critical Risk Factors.................................................................................................. 14
Conclusions.............................................................................................................. 14

The problem and the opportunity

Given the restricted access to health care, in rural areas and small cities, it is hard to reach
and benefit of appropriate and professional health care advice, not to mention the poor or even
no education for healthy lifestyles and prevention campaigns.
The biggest problem Romania is facing, concerning the health system, is that a lot of doctors
choose to leave the country and work abroad for higher salaries and more incentives. There are a
lot of hospitals full of patients and very few doctors to take care of their problems.
Of course, there are private hospitals where everyone gets a lot of attention and an
immediate solution to his/her current situation, but there are few people that can afford private
health services.
Concerning people in rural areas, having lower incomes, they do not have so much access to
information concerning health care and they usually get treatment from neighbors or relatives
that state they have had that problem too and they got rid of it by following a certain treatment.
Unfortunately, most of the times this unconventional ways of treatment make things even
worse than they were.
It is true that other approaches regarding this issue have been tried, such as live chat or mobile
medical applications, but when considering the not so developed areas of living, a telephonic
health care service will really suit everyones needs and possibilities.
This problem would be solved if people in rural areas would have access to professional
health advice and therefore, the issue of unconsciousness and unfamiliarity in health related
circumstances, would be handled with guidance from well prepared individuals in this field of
activity.

Mission and Vision

Mission
Stay healthy. Stay in touch.
By offering medical professional support, ROTeleHeath engages to help people, as well as
possible, in a sympathetic, efficient and qualitative manner.
The mission of Company ROTeleHealth is the pursuit of the following principles:

Accuracy customized support concerning each issue addressed

Efficiency offer the proper piece of advice and indication in a timely manner
Quality professional assistance
Confidentiality discrete and caring support
Integrity honesty, trust and respect in any moment
Wellness encourage behaviors that promote a healthy lifestyle

Objectives and Unique Value Proposition

Our company aims to address to people in Romania living in rural areas that do not have
so much access to modern health systems and health education.
We believe that we can overcome this shortage of health education and support in rural areas by
providing the people there with a telephonic health care service that they can call 24 hours of 24
hours to get professional guidance with their health issues.
We aim to improve our peers overall physical and mental health, by providing a better
management for self health care and by improving the quality of life.

Theory of change
If more and more people would have equal chances concerning access to health, then
preventive medicine will be emphasized and appropriate self health care management will be
encouraged.
We believe that everyone deserves an excellent support in medical issues and that high quality in
medical services, in rural areas, this is an important ingredient to ensure a healthier and, thus, a
greater life expectancy for these people.
We think that current health crisis is so urgent that is needs immediate focus and action.
Based on these beliefs, our theory of change is that if graduates from the nursery school agree to
provide telephonic health care services to people in rural areas in Romania, then:

People will become more informed and will take the right medication to heal their
illnesses;
People will become more open to find out how to take care of their health;
Those who help will have a greater self esteem for earning a living from something that
makes a lot of good to other people;
People will be educated to provide healthier lifestyles for themselves, their families and
most important, their children;
To help them suffice their health needs, behavioral and physical aspects.

Our Solution and Unique Advantage

Company ROTelehealth will focus on providing professional, confidential and
compassionate one-to-one telephonic outreach and ongoing support to individuals with chronic
diseases and health conditions.
Diseases and health conditions supported by ROTeleHealth include: chronic pain, asthma, heart
disease, type II diabetes, depression, congestive heart failure, sleep issues and it will also offer
support and advice to those recovering from substance abuse.
Our advantage will be represented by the unique services we will offer:

Professional staff (nurses)

24 hours support services
Direct telephonic support
Additionally, there will also be a regular communication with members health care
providers, in order to provide for optimal treatment.

Strategy and Business Model (Operations Plan)

Who will be the beneficiaries (customers)
Our customers will be people living in rural areas in Romania, individuals with chronic diseases
and health conditions.

How we will serve them

We will employ in the beginning 8 graduates from nursery school, who will work 24
hours of 24 hours, with shifts of 8 hours.
We will serve them by telephonic health care services that they will have 24 hours of 24 hours
access to.

How our program will look like

People will be consulted on minor health problems that can be diagnosed on the phone
and can be treated at home; also they can be guided on what medication to take in case of
behavioral issues.
Diseases and health conditions supported by ROTeleHealth include: chronic pain, asthma, heart
disease, type II diabetes, depression, congestive heart failure, sleep issues and it will also offer
support and advice to those recovering from substance abuse.

Office
Our office would be in Bucharest, in Unirii area, in an office building that our employees
will have easy access to.
We will rent a 100 square meters office, on Serban Voda street, in Unirii area, in Bucharest.

The Team
Initial management and governance structure
The two shareholders that start this social business are Veronica Craciun and Delia
Dascalu. We will also be managers of the company and will deal with all the aspects regarding
the smooth working of the business.
The entire project will be coordinated and supervised by the two of us, as the founders of this
company. Both of us will own the company and will work on a full-time basis.
On the strength of our specialization- Business Administration, we will be able to use our
knowledge in order to run properly the business. We will also use our skills and knowledge we
gathered, so far, from our extra-curricular activities, regarding fields of activity such as: social
media, tourism, customer support and charge backs and refunds; these things will come in handy,
when dealing with the marketing and the operations plan.
In the beginning we will also collect feedback from customers and try our best to see what can be
done to improve our services and additionally, we will respond to peoples inquiries, questions or
misunderstandings.

Employees
We plan to employ, at first, 8 graduates from nursery school; they will work 24 hours of
24 hours, with shifts of 8 hours per day.

Training
The future employees will be following a one month training program where they will get
accustomed to the possible questions they will encounter from our customers. They will follow
some specific questions that they will ask in order to figure out the problem the person is facing
with and to provide the right treatment to it.

Salary
We will provide an initial salary of 2000 RON, which is approximately 450, with
possible promotion after 3 months.

Outsourcing
We will outsource the accounting and law services.

In the future, we are considering employing also 2 psychologists, for the services of support
concerning depression and recovery from substance abuse.

Key Partners
We will have a partnership with Telekom, as the telephone company through which we
will get in touch with our customers.
ROTelehealth will be in a partnership with Telekom as follows:

ROTelehealth will charge 20 cents/minute that will go 100% to RoTelehealth

For subscriptions, Telekom will have a 25% part of the subscription price, the rest of 75%
goes to ROTelehealth
The average length of a call is expected to be of 5-6 minutes

The fee we will charge is 20 cents/ minute, out of which we will get 100% (20 cents) and
Telekom will only have full financial benefits in the case of subscriptions. Therefore, people will
be able to choose a monthly subscription of 8, 10, 12 or unlimited number of calls with the
following prices:

8 calls = 3
10 calls = 4
12 calls = 5
Unlimited calls = 6

Another partnership we will make is with the city halls in the rural areas of interest, which will
help us introduce this project on the market and also, make people aware of the opportunity they
will be facing.
Village halls will tell people about us and our company, they will announce our opening event.
We will travel and have local meetings with people over there, in order for them to meet us and
to understand how they can benefit from what we are offering.
Also, we will partner with nursery schools from Bucharest, in order to recruit their best graduates
for our company, so that the services offered to be professional ones.
The partnership with emag.ro will bring us 8 telephones, connected to 8 computers, in exchange
of a CSR campaign.

Industry Analysis
ROTeleHealth will focus its activity on health care support services, on one market
segment- individuals.
Individuals with chronic diseases and health conditions will ask for our support, on the phone,
and they will be offered professional and ongoing support.
People eligible for this project are people in the rural areas, with poor access to appropriate
health care services and who suffer from conditions such as: chronic pain, asthma, heart disease,
type II diabetes, depression, congestive heart failure, sleep issues and also those recovering from
substance abuse.

CAEN codes

8621 - General medical assistance activities

(Activitati de asistenta medicala generala)

8810 - Activities of social assistance, without accommodation, for elders and for people
in incapacity of taking care of themselves
(Activitati de asistenta sociala, fara cazare, pentru batrani si pentru persoane aflate in
incapacitate de a se ingriji singure)

8899 - Other social assistance activities without accommodation

(Alte activitati de asistenta sociala, fara cazare, n.c.a.)

Position within target market

By targeting this group of people, we expect a customer outreach, throughout the entire
year. In Romania, this business is so well developed, it is in its growing period, so this is the best
time to enter this type of business and to grow along with it.
It is true that other approaches regarding this issue have been tried, such as live chat or mobile
medical applications, but to differentiate from them, we are considering the not so developed
areas of living, so a telephonic health care service will really suit everyones needs and
possibilities.

Marketing Plan
Product Strategy
ROTelehealth Company will focus on providing professional, confidential and
compassionate one-to-one telephonic outreach and ongoing support to individuals with chronic
diseases and health conditions.
Our advantage will be represented by the unique services we will offer:

Professional staff (nurses)

24 hours support services

Direct telephonic support

Additionally, there will also be a regular communication with members health care
providers, in order to provide for optimal treatment.

Pricing Strategy
People benefiting from ROTeleHealths services will be charged with 20 cents/ minute of
phone-call and they will also be offered the possibility to choose a monthly subscription of 8, 10,
12 or unlimited number of calls with the following prices:

8 calls = 3
10 calls = 4
12 calls = 5
Unlimited calls = 6

Placement Strategy
This project envisions help being offered to people in rural areas, with restricted access to
appropriate and professional medical services and support.
As a first phase, we will begin with the area of Buzau - Calarasi, since this areas are pretty close
to Bucharest, the place where will hold our office.

Promotion Strategy
ROTeleHealth will use as a simple distribution channel, through direct marketing, using
no intermediaries.
We will use channels such as:

Facebook official page

Fliers
Promotion campaigns, in each area of interest

So as to increase awareness among clients, we will start by distributing brochures and fliers, so
that people get to know our business and the services we offer. Moreover, customers might share
there their opinions on our services, make suggestions or complaints.
The official Facebook page of ROTeleHealth is another advertising instrument. There, customers
will be displayed services, prices and benefits.
Word-of-mouth will also be an important advertising tool; people take into account the advice of
a friend. ROTelehealth will offer small bonuses to people who recommend us to their friends.
The most important instrument of advertising will be represented by the promotion campaigns
that we will realize, with the help of the city halls; there, we will present the entire project, its
advantages and benefits, by presenting both our ideas and the nurses advice and encouragement
towards embracing this experience.

Measuring Results
Some key and valuable indicators, regarding our activity, will be:

number of calls per month: we estimate a number of 250 calls, in the first 3 months
number of call returns
opinions/ feedback from customers
communication with the health care providers, of our members, and see how their
treatment is going

Risks and Challenges

Management Risks our lack of experience might be a disadvantage in critical situations,
with respect to unexpected situations; in this case, we would ask for the advice of a business
consultant
Marketing Risks we cannot be 100% sure that our marketing plan will have the
expected results; in case this happens, we will ask for help from a marketing professional
Financial Risks even though we have the money for a functional business, with a
projection for the first three months, we might have to borrow money from a bank, in order to
boost and expand it
Intellectual Property and Infringement since we offer our products under a trademark
and this type of business is not that common in Romania, we might be forced to take legal action,
hire a lawyer and go to trial against those who would use our brand, for different purposes.

Financial Plan
Start-up Summary
Concerning the start-up costs, there are the rental cost, the legal fees, a certain number of
flyers and brochures, the costs with the equipment and the inventories and the salaries for the 6
employees for the first 4 months (1 for training and 3 for work).
The space will need to be furnished with several chairs, a couple of desks and 8 telephones
connected to 8 computers. The legal fees include the fees that must be paid at the incorporation
of the business.
Moving further, there are the start-up costs with the payment of rent in advance and the printing
of the flyers and brochures. When it comes to the equipment, the company will need desk
supplies, 8 telephones connected to computers and Internet connection.
Table: Start-up
START-UP
Requirements
Start-up Expenses
Legal
Rental (for the first 4 months 1 training + 3 work)
Brochures&Flyers
Salaries for 8 employees for 2 months
Office Supplies

246
2,800
250
12,507
400

Mailings
Total Expenses

300
16,503 EURO

The total start-up expenses consist with approximation of 16,500 EURO of which 6,000 EURO
will be personal contribution from the two shareholders, the rest of 10,100 EURO remaining to
be gathered from investors.

Revenues for first 4 months

At the beginning we will focus our business in the rural area of Buzau (300,623)-Calarasi
(76,952) with a total rural population of 377,575 and our forecasts are:

First month: 100 customers paying on average

Second month: 150 customers paying on average
Third month: 250 customers paying on average

3 = 300 revenue
3 = 450 revenue
4 = 1,000 revenue

Total Revenue

1,750

From our surveys we can forecast that in the next 3 years 30% of the population, meaning,
113,272 persons will be our customers.
Forecast of customers in percentages:

First year: 15% = 56,636 clients

Second year: 25% = 94,393 clients
Third year: 30% = 113,272 clients

Also, from the BETA testing done we can approximate a 4 average monthly payment from one
customer. From here we can deduct that on average one customer will pay 48 in a year.

Income statement

Pro forma Income St.

Total Revenue
Operating Expenses
Salaries
Rent
Utilities
Depreciation

Year 1
2,718,528

Year 2
4,530,864

Year 3
5,437,056

75,037
8,400
1,000
500

93,796
8,400
1,100
500

112,556
8,400
1,200
500

Outsourcing Accounting
Total Op. Expenses

2,400
(87,337)

2,400
(106,196)

2,400
(125,056)

Taxes

(9,600)

(14,400)

(19,200)

Net Income

2,621,591

4,410,268

5,292,800

Capital of the company

Part of the capital will be brought into the company by the three associates.
It will be consisting of 3,000 from each of the two associates.
The company will have the headquarters in a rented office in Unirii Area in Bucharest. The
rental contract will be on a period of one year and the first four months will be paid in advance.

The total of 6,000 will be used as follows:

700*4=2,800 for the first three months of rent

250=brochures and fliers.
1,423=other expenses

The rest of 1,527 will be kept in a bank account.

Overview of Financial Projections

ROTelehealth will be in a partnership with Telekom as follows:

ROTelehealth will charge 20 cents/minute that will go 100% to ROTelehealth

For subscriptions, Telekom will have a 25% part of the subscription price, the rest of 75%
goes to ROTelehealth
The average length of a call is expected to be of 5-6 minutes

Salaries
At the beginning the company will have 8 full-time employees who will be paid with net
salaries of 1,969 RON (approx. 446.88 = 447 EURO at a rate of exchange of 1 RON=4.4061
EURO).
The costs of the company with the salaries:

Gross salary = 3,444 RON = 781.64 EURO

Critical Risk Factors

Marketing risks

We cannot be 100 per cent sure that the village halls will do a good job in advertising us and
announcing the people to come for our meetings.
Operating Risks
Service Quality
Even though we make substantial efforts to make sure that our clients benefit only from
high-quality services and our people are very well prepared we cannot be 100 per cent sure that
all the situations that might appear will be perfectly managed by our team.

Financial Risks

Even though we have the money for a functional business, we might have to borrow money
from a bank to boost it. We would like to implement new ideas, like giving telephonic
consultation for psychological and behavioral problems, to be there for the people when they
need an advice.

Intellectual Property Infringement

This can be a risk as our services can be copied by other entrepreneurs, but what makes
us different is the quality of our employees and, thus, of our services.
Customers
We saw from the surveys that people seem quite interested of our idea and 1 in 3 would
actually try our services. However, we cannot be 100% sure of how people will respond to our
offering for real.

Conclusions
In conclusion we consider this idea very benefic for Romania in the present context and it
definitely should be implemented as there are a lot of people that need to be more educated about
health and on how to make the right choices for themselves.