Medical Laboratory Business Plan

Executive Summary

Overview

PATILAD Laboratory Limited is a leading and standard medical and diagnostics center that was conceptualized with a vision to provide world-standard quality of diagnostic/healthcare services that are accessible and affordable to all. Achieving excellence is our motto. We are fully committed to providing optimum quality diagnostic services and a host of remedial solutions. We will strive to achieve world-class status as a quality medical service provider, so as to be the organizational choice for all, in every part of the society we work with.

We will offer Incorporating Medical/Hospital and Diverse Diagnostic services, Laboratory, Imaging (X-rays, CT Scanning, Ultrasound Scanning, ECG (Echocardiography, Physiotherapy Services, Consultancy and Advisory Roles. PATILAD Laboratory Limited will also carry out minor procedures. Our major target market is major cities around Nigeria.

We provide general health care management services at affordable prices. We are well trained and equipped to service the market segments that require health care services. We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in Nigeria. Our employees are well trained and qualified to handle the wide range of healthcare services.

The Company

PATILAD Laboratory Limited is established as a limited liability company owned by Dr (Mrs) Sarah Afolabi and Dr. Olaoluwa Hassan.  The Hospital is managed and directed by Dr (Mrs) Sarah Afolabi who has over 15 years’ experience and a distinguished medical practitioner with a passion for raising the standards of medical practice. PATILAD Laboratory Limited is pioneered with the vision to deliver fast, accurate and reliable diagnostic testing to all. The company will be located in Ogudu, Lagos state.

Products and Services

PATILAD Laboratory Limited will be offering a full range of diagnostics services and a host of remedial solutions. It’s equipped with all modern diagnostic amenities of international standards. We will be known for our ability to present accurate results at reasonable rates with a quick turnaround. We believe in utilizing our hard-earned expertise and years of experience along with cutting-edge technology to reshape the health and future of Lagos.

Our goal is to be the most preferred diagnostic/healthcare provider in the areas of Laboratory, Imaging (X-Rays, CT Scanning, Ultrasound Scanning, ECG (Echocardiography), Physiotherapy Services, etc. However, in order to create multiple sources of income in line with our core diagnostic service, we will offer medical support services as well as consultancy and advisory services.

The Market

It has not been a smooth experience for the diagnostics industry as there have been many disruptions in the last few years. The industry is getting consolidated as more of the unorganized settings in the industry are being organized which is slowly evident as the industry is seeing a CAGR of 18%.

As at 2014, a total of $51 million was spent on diagnostic imaging centers by the federal government. 187 companies were awarded 968 contracts, with a company averaging about $275,018 in value based on the contract.

Competition                                

Our aim of starting PATILAD Laboratory Limited is to ensure that we build a business that will be able to carry out difficult but accurate diagnosis and be the preferred diagnostic center for local physicians, medical practitioners and other clients that would be needing our services here in Lagos. With this in mind, we have set forth strategies that will allow us to favorably compete against our competitors and give us the advantage we need. Our uncompromised quality standard and upgrading according to future needs and demands as well as technological advancement is going to give us an edge over our competitors.

PATILAD Laboratory Limited is coming into the market well prepared to favorably compete in the industry. Our facility is well positioned and visible, we have enough parking space with good security. Our staffs are well groomed in all aspect of healthcare delivery and all our employees are trained to provide customized customer service to all our clients/patients.

Our competitive edge also includes discount prices for services, excellent customer service, the expertise of its founders, etc. 

Financial Considerations

PATILAD Laboratory Limited seeks N500 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.

Funding for the launch of the business is provided primarily by equity from the partners and investors. 

The business will reach positive cash flow in its 10th month of operation, allowing for expedited repayment of its loan obligations, as well as for dividends to be paid to the owners.  Revenue will top N14,500,000 and profit will reach about N3,843,950 in the 1^st year of operation. 

Introduction

The diagnostic industry has no companies with a dominant market share value. The industry generated revenue of $18 billion with a negative growth of -0.2 percent within the year 2012 and 2017. While there are about 14,300 diagnostic centers in Nigeria employing more than 100,000 people, IBIS World expects that proper growth for the industry will start occurring in 2019. This is because it is expected that advances in science will yield service capabilities that are new and improved as the aging population in Nigeria will require better diagnostic services. Demand is also expected to be boosted by the growing demand for affordable and accessible healthcare services for a majority of the population.

There are moderate levels of barriers to entry for