Research Proposal on Financial Logic to Acquire New Location

Before starting a business or setting up new premises, any entrepreneur should conduct an intensive analysis to ensure the project’s success. For instance, the demand of the surrounding populace and dermatology office is vital in this case. Fundamentally, policymakers and the financial analyst should consider the community’s goodwill, initial cost, and expenses expected to keep the project running.  Besides, considering the retirement of one physician owner, it is vital to ensure an equal proportion of healthcare service providers and the patients in each dermatology. Essentially, this initiative will not only aid in identifying the need of the client’s subject to appropriate planning procedure.

Startups raise funds for different reasons, but the primary purpose is to grow the business. For a company to reach the desired profitability rates, it may take a while. Until then, businesses need cash to keep going. Therefore, sound financial decisions will ensure the ultimate success of the company. In this case, different financing decisions will be considered. Funds will be outsourced from both personal and other available financing institutions. Additionally, the funding options will be deemed to be based on the returns and interests generated from the business (Arena et al., 2018). Consequently, the investment is expected to generate a positive NPV within the set period. Business proposals have many sections, especially in cases where the funds are outsourced from outside. In this case, the funding request provides information regarding the future financial plans of the business and information such as how much and when the funds will be needed.

Most businesses need funding regardless of whether they are starting or expanding their operation. Notably, understanding the available funding options will aid in long-term growth.  The necessary combination of the funds from the company’s money to borrowing needs to be in proportion. Besides, the financial decision-making is required to yield a maximum return on the capital that has been employed after the necessary interests and other cost reductions have been made—both depts. Therefore, individual funds are crucial in setting up this business and meeting the expenses.

One of the main physicians in the given case is retiring. This means an opening for hiring a new one with similar experience to meet clients’ demand and attain the firm’s objective. Therefore, costs for advertising and hiring a new person need to be considered. Nevertheless, the new employee must possess the experience and package equal to or higher than the retiring one. Additionally, there will be training costs channeled towards the new physician if he or she does not meet exact qualification or be introduced to the organization’s new policy. Essentially, training the new staff will help the individual be effective and at purr with the company’s goals and objectives.

Set up and database cost for maintaining and centralize ding all the company’s records at one place will need terminal and server software and accessories. The management will need to hire IT professionals to install all the necessary software. The accessories can either be custom-built or standardized. Standardized software could be claimed as a deduction revenue (Makonin, 2020). Additionally, customized software could be claimed following the updates required in running the business.

Equipment financing is also crucial for small businesses. Most of the time, businesses obtain equipment financing and leasing to expand their operations (Arena et al., 2018). Besides, equipment companies allow one to make necessary payments within the stipulated timeline. Consequently, if the company decides to lease the equipment instead, they are expected to play up more diminutive amounts. In leasing, the companies can also purchase the equipment after the leasing term comes to an end. In this regard, Fraxel Laser needed disposable machines, and stock of equipment must be considered for waste disposal.

Housekeeping and clinical expenses are also necessary for clinics. Needed care must be observed in the two areas to avoid instances of clinical infections. Cleanliness services must be observed once a client checks out and before another one checking into the premise for appointments. Maintaining cleanliness in the area will remove any bacteria that might infect the service users. Therefore, maintaining a clean environment will also boost the recovery process of the clients. Furniture investments are also crucial in making the setting more appealing in creating the environment appealing and safe. Resultantly, extra care must be ensured the asserts like furniture are well kept. Additionally, depreciation can be stated following the applicable rates.

Finance Principle Table

Expenditure Revenue Expenditure
Office Advertisements Expenditure
Depreciation on the Assets
Training
Recruitments
Promotion
Recruitment
Capital Expenditures
Accessories and necessary equipment’s
Furniture and Disposable machines
Set up cost and interior machines

 

Borrowed funds help startups and business owners cover up the credit of paying up the first expenses of the business. Outsourcing of funds will most likely benefit the company as it will not have to depend solely on individual savings or credits to fund the purchase and upgrade its operations. In addition, getting more funds from external options will help the company focus on making the most out of it (Cotei & Farhat, 2017). Besides, the most business runs on return investments. Outsourcing different financial options allow room to generate more income: more money, better services, and higher profits. Successfully, when businesses sport new opportunities in the market, they outsource funds that they use in generating more funds. In this case, the funds will be used in upgrading services in different departments in the company. The furniture and equipment’s for instance will be upgraded. Thus, giving the environment a better and safe look and enhancing the quality of services being provided by the company.

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