JIMMA UNIVERSITY COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT
ENTREPRENEURSHIP
(MGMT 1012)
TEL2519859500
Email:ICFHCF@gmail.com
Group members ID number
1.BEKA BADHASA RU 0157/16
2.FUAD TEMAM RU 0392/16
3.KETIM LELISA RU 0579/16
4.MEKLIT ADERA RU 0664/16
5. SIFAN TULU RU 0942/16
Submitted by Group 7 sec-2

Submission Date: Thursday 30, 2024

Submitted to MR.HAGOS G.
Contents
1. EXECUTIVE SUMMARY.........................................................................................................................5
1.1 OBJECTIVE..........................................................................................................................................6
1.2. MISSION............................................................................................................................................6
1.3. KEY TO SUCCESS................................................................................................................................6
2. COMPANY SUMMARY..............................................................................................................................7
2.1. COMPANY DESCRIPTION...................................................................................................................8
2.2. COMPANY LOGO...............................................................................................................................8
2.3. START-UP SUMMARY........................................................................................................................8
3. Company management............................................................................................................................9
3.1 Company ownership..........................................................................................................................9
3.2 Management team............................................................................................................................9
3.3 Professional competency and requirement.......................................................................................9
4. Service.....................................................................................................................................................9
5. Market analysis summery......................................................................................................................10
5.1. Market segmentation.....................................................................................................................10
5.2 Proposed location............................................................................................................................11
5.3. Target Market Segment Strategy.....................................................................................................11
5.4. Competition....................................................................................................................................12
6. Strategy and implementation analysis...................................................................................................13
6.1 Implementation...............................................................................................................................13
6.2 SWOT analysis..................................................................................................................................14
6.2.1 Strength........................................................................................................................................14
6.2.2 Weakness......................................................................................................................................15
6.2.3 Opportunity..................................................................................................................................15
6.2.4 Threat...........................................................................................................................................15
7.Financial and plan analysis.....................................................................................................................16
7.1 Key Assumptions..............................................................................................................................16
7.2 Personnel Budget.............................................................................................................................16
7.3 Financing..........................................................................................................................................17
7.3.1 Use of funds..................................................................................................................................17
7.3.2 Source of funds of ICFHP..............................................................................................................17
7.4 ICFHP projected balance sheet........................................................................................................18
 7.4 ICFHP PROJECTED INCOME STATEMENT..........................................................................................18
7.5 Risk Management and Protection....................................................................................................19
7.6 Exit Strategy for Medical Insurance for Doctors Business Plan........................................................20
8. Conclusion.............................................................................................................................................22
9. Appendix................................................................................................................................................22
THANK YOU PAGE…...................................................................................................................................24
INSURANCE COMPANY FOR HEALTHCARE POFESSIONALS
 1. EXECUTIVE SUMMARY

Insurance company for healthcare professionals founded to improve standard of life of

members of this company. This company shall provide services for its members according
to the rule prepared by this company and the Ethiopian Insurance Corporation. What
makes differ this company and its rule from other companies is that its specificity only for
healthcare professionals who are the member of these company. Our mission is to offer
innovative, affordable and personalized insurance products that address the unique needs
and risks faced by healthcare providers. We understand the challenges of medical field
from high costs of malpractice coverage to the complexities of navigating employee
benefits.

That is why we have assembled a team of industry experts who are dedicated to
delivering exceptional customer service and customized insurance plans. Looking
ahead ,we are poised for continued growth by expanding our geographic footprint ,and
leveraging strategic relationship with in the health care industry.by empowering medical
professionals to manage their risks effectively ,ICFHP is committed to contributing to the
over all well- being of the communities we serve. This insurance company is approved by
concerned body with the intention to ensure the quality of life of healthcare professionals
through standardized licensure and inspection procedures to promote access to quality to
life of healthcare professionals.
The Ethiopian Insurance Corporation recommended fulfilling all the requirements
stipulated under this document.it has to be noted that the fruition of these requirements
will ensure the quality and economic development of healthcare professionals through
availing appropriate infrastructure, deployment and retention of qualified and competent
health professionals that deliver best practices and by generating innovative ideas and
methodologies to solve economic related problem and health care problem. Insurance
company for healthcare professionals will be formed and operated by January 1,2024.the
proposed location is in Jimma town .ICFHP will be 1500meters square, and it will be
professional in both appearance and function. Area was selected for the following
reasons; office of location, projected community growth rate, opportunity for greater
number of healthcare professionals.
 1.1 OBJECTIVE
1. Risk Mitigation/Management
 This insurance company protect healthcare professionals from the financial risks
associated with their practice such as medical malpractice claims, liability issues and
other potential liabilities.
2 .Talent Attraction and Retention
 Providing comprehensive insurance coverage to help healthcare organizations
attract and retain qualified healthcare professionals.
3. Financial Stability
 Offering healthcare professionals a stable financial protection mechanism against
unexpected events or claims.
 Providing peace mind and allowing healthcare professionals to focus on patient care
with out the constant worry of potential financial liabilities.

1.2. MISSION
1. Advocacy and Industry Engagement
 This insurance company for healthcare professionals actively engage with industry
associations, police makers, and regulatory bodies to advocates for the healthcare
professionals
2. Claim Management and Support
 This insurance company will provide efficient claim management services , including
investigation ,negotiation and settlement to protect the interests of healthcare
providers.
 Starting small micro and small enterprise and develop to large enterprise

1.3. KEY TO SUCCESS

Risk Management Guidance

Provide risk management service and educational resources to help healthcare
professionals
 Efficient Claims Processing
Streamline the claims process to prompt and efficient handling of claims.
Expertise and Reputation
 Develop a strong reputation for expertise in the healthcare industry and a
deep understanding of the risks and challenges faced by healthcare
professionals.
Personalized Service
 Prioritize personalized customer service and support with dedicated account
managers and representatives.
Technological Integration
 Leverage technology to enhance the customer’s experience.
Competitive Price
 Offer competitive and transparent pricing for your insurance products, taking
in to account the specific needs and budgets of healthcare professionals.
Partnerships and Collaborations
 Establishing strategic partnership with healthcare organizations, professionals
associations, and other industry stakeholders to expand our reach and provide
value added.

2. COMPANY SUMMARY

ICFHP going to start the business in well structured management system that will work
in integration.
 This insurance company is a specialized insurance provider dedicated to offering
comprehensive coverage options for healthcare professionals.
 The primary target market for this insurance company next to owners includes
licensed medical practitioners such as doctors, dentists, pharmacists, nurses and
therapists.
 The company’s competitive advantage lies in its specialized focused on the unique
insurance needs of healthcare professionals. By understanding the specific
challenges faced by this professional group and offering customized policies that
address these concerns effectively, the company aims to establish itself as a trusted
partner in providing comprehensive coverage solution.
 2.1. COMPANY DESCRIPTION
The company name is ‘’Insurance Company For Healthcare Professionals “and can be
abbreviated as “ICFHP” which can be used as a short name for catching up with the
customer in the promotion.

2.2. COMPANY LOGO

The company logo as depicted in page – 5.
The small plant indicates our insurance company’s development from micro and small
enterprise to macro enterprise and the green colour indicates prosperity and symbol hand
shows members(owners) support and protection for their company’s.

2.3. START-UP SUMMARY

Start-up requirement will be financed through owner investment and get some loan from
the bank. Our government give a large support and incentive for small and medium
business so we intended to use these opportunity to our advantage.

Start up requirements Cost

Computer 200000
Business licence 20000
Communication 80000
Office rent 120000
Office supplied 120000
Marketing plan 800000
Office furniture 100000
Total start up expenses 1440000

3. Company management
 This company will govern by a professional manager as the share holders have their
own work to do. This will simplify the task by hiring a professional Manager.

3.1 Company ownership

Insurance company for health care professionals is founded and owned by partnership
of Jimma university medical students Beka Badhasa, Fuad Temam, Ketim Lelisa, Meklit
Adera and Sifen Tulu.

3.2 Management team

The Manager will manage the business operations assisted by assistance manager,
accountants and other professionals. The manager work to build the business to its fullest
potential by expanding the agency’s visibility in the Jimma’s health care.
3.3 Professional competency and requirement
For the manager he /she should be
 A science graduate of MBA ( Business administration )
 Successful previous experience
 Excellent mentoring, coaching and people management skill
 And our company accountant will be
 Graduate of BS accountancy and qualified CPA
 Good in oral and written communication
 Strong attention to details with great analytical skills.

4. Service

The insurance company for health care professional will offer

 Financial protection: Covers the costs of medical expenses, reducing the financial
burden on individuals and their families.
 Access to healthcare: Ensures access to necessary medical services and treatments.
 Preventive care: cover preventive care services, such as annual checkups and
screenings, which can help prevent or detect health problems early.
 Make Peace of mind: Knowing that medical expenses are covered provides peace of
mind for our clients and reduces anxiety about unexpected healthcare costs.
  Tax benefits: our health insurance premiums are often tax-deductible, lowering the
overall cost of coverage.
 Wellness programs: our health care insurance offer wellness programs that provide
incentives for healthy behaviours, such as fitness trackers and discounts on gym
memberships.
 Prescription drug coverage: which helps reduce the cost of medications.
 Dental and vision coverage: offer optional dental and vision coverage as add-ons to
the main health insurance policy.
The Company will also offer some life insurance services such a
 Financial protection for loved ones: Provides a lump sum to help cover
expenses and replace income after the policyholder’s death.
 Funeral expenses: Covers costs associated with funeral arrangements and
burials.

5. Market analysis summery

5.1. Market segmentation

In Jimma town there is total population of 221,992 among them there are 1229 health
professionals. Including 148 doctors, 425 nurses, and 220 midwifes, 153 health officers,
153 lab technician and 131 pharmacists. Our company can give service for all professionals.
Our company gives an equal service for all professionals.

5.2 Proposed location

The insurance for health care professionals will be located in Jimma town which is 350
km from A.A. This town have a total population of 221,992 from these there are about
1,229 health professionals including doctors, nurses, midwifes, health officers, laboratory
technician and pharmacists. Those professionals can easily find our company and become
member of it. We feel that our location is a great asset and will strengthen our future
success.

5.3. Target Market Segment Strategy

Market Segmentation

The health care professional insurance market can be segmented based on a number of
factors, including:

 Type of health care professional

 Size of practice
 Location
 Age

Target Market Segments

As mentioned above based on these factors, the target market segments for our health
care professional insurance are:

 Physicians
 Nurses
 Dentists
 Pharmacists
 Other health care professionals

Strategy

The strategy for each target market segment will vary depending on their specific
needs. However, some general strategies that insurance companies can consider include:

 Developing insurance products that meet the specific needs of each segment.
 Marketing insurance products to each segment through the appropriate channels.
  Providing excellent customer service to each segment.

5.4. Competition

The competition for insurance for health professionals is expected to increase in the
coming years, due to a number of factors, including:

 Rising healthcare costs: The cost of healthcare is rising faster than the rate of
inflation, which is putting pressure on health insurance companies to raise
premiums.
 Increased regulation: The government is increasingly regulating the health insurance
industry, which is making it more difficult for insurance companies to operate
profitably.
 New entrants to the market: New insurance companies are entering the market,
which is increasing competition and putting pressure on prices.

Specific competitors that health insurance companies for health professionals will
face include:

 Other health insurance companies: There may be a number of large health insurance
companies that offer insurance to health professionals.
 Employer-sponsored plans: Many health professionals get their health insurance
through their employer. Employer-sponsored plans are often more affordable than
individual plans, and they may offer more comprehensive coverage.

To compete in this competitive market, health insurance companies for health

professionals will need to focus on the following:
 Offering competitive rates: our Health insurance companies need to offer
competitive rates in order to attract and retain customers.
Providing comprehensive coverage: our Health insurance companies need to provide
comprehensive coverage that meets the needs of health professionals.
Offering excellent customer service: our Health insurance companies need to
provide excellent customer service in order to build and maintain relationships with
customers.

6. Strategy and implementation analysis

6.1 Implementation

To execute its strategy, the insurance company plans to invest in advanced technology
infrastructure to streamline customer service, claims processing, and data analytics for
personalized offerings. It will also focus on expanding its network of healthcare providers
to offer comprehensive coverage to its customers.
Furthermore, the company will launch targeted marketing campaigns to raise
awareness of its innovative product offerings and value-added services. Additionally, the
company will prioritize talent acquisition and training to ensure a customer-centric culture
and efficient service delivery.

6.2 SWOT analysis

There are many positive consideration for establishing of insurance company for
healthcare professional as it is the first insurance company in Ethiopia that provide service
for health professionals only.
 The necessity for patient (who is member of insurance company) for a full-service
healthcare and as the only insurance company in this area will be beneficial for the
insurance company. Although, the wealth of the insurance company engaged in several
business ventures, this is the first attempt at operating a full-service healthcare and
employing the right personnel will be the key for business to succeed.
Insurance company for healthcare professionals can address many of the issues the
business faces by obtaining the requested funding. Utilizing the funds to hire and train an
experienced manager and staff and increasing awareness of the insurance company
through aggressive advertising will be essential to the success of the business

6.2.1 Strength

This insurance company is the only and first insurance company that provide healthcare
service for healthcare professional only, so it provide service like other insurance company
it engage in several business by initiating itself and giving loan and other service for its
costumers which make profit its members.
 Extensive network of healthcare providers and hospitals.
 Diverse range of health insurance products to cater to different customer needs.
 Robust financial performance and stable revenue streams.

6.2.2 Weakness

 Lack of innovative product offerings compared to emerging competitors.

 Limited market penetration in certain geographic regions.

6.2.3 Opportunity

 Partnerships with healthcare providers for cost-effective care delivery.

 Expansion into new markets or demographic segments offering value-added services
such as wellness programs or telemedicine.
 6.2.4 Threat

 Intense competition from established players and new entrants in the health
insurance market .Rising healthcare costs and inflation affecting profitability.
 Regulatory changes impacting reimbursement rates or coverage requirements

7.Financial and plan analysis

7.1 Key Assumptions
Important notation/limitations in viewing the financial plan:
The maximum expense medical service for each member is 6000/year.
The expected number of member of ICFHP is shown blow.
Table: show number of expected members
Year 2024 2025 2026
Number of 100 500 700
expected members

7.2 Personnel Budget

Company Budget are considered key components of a healthcare expense budget and
are often used by budget managers to create a detailed plan for staff salaries, taxes and
benefits.
Table 2 provides the calculated personnel expenses in ICFHP in three consecutive years
from 2024 to 2026.

Professions 2024 2025 2026 Total

1.Manager 120000 180000 216000 516000
2.Accountant 96000 120000 144000 360000
3.Secretary 72000 90000 102000 264000
4.Employee 60000 84000 90000 234000
Total 348000 474000 552000 1374000
 7.3 Financing
7.3.1 Use of funds

ICFHP will purchase the building and have the following start up expenses
Table: 4 start-up expenses

Expenses Cost of funds in ETB

Computer 200000
Business license 20000
Communication 80000
Office rent 120000
Office supplied 120000
Office furniture 100000
Marketing plan 800000
Total start up expenses 1440000

7.3.2 Source of funds of ICFHP

The start-up requirements are to be financed by General Manager. This is in addition

to the ETB. 1,440,000. They will be providing will help with expenses in the first year. As
well as ETB. 348,000 for the workers expenses for the first year. 20% of purchase of the
ICFHP will be financed by the owner of ICFHP and 80%will be purchased by loan with a 20-
year bank loan (listed under Long-term Liabilities). This loan will be repaid from the ICFHP
cash flows and guaranteed with his personal assets.
 7.4 ICFHP projected balance sheet

Assets 2024 2025 2026

Cash 680,000 1020000 2176000
Account 0 0 0
receivable
Accumulated 600000 3000000 4200000
depreciation
Long term asset 1200000 1200000 1200000
Total asset 2480000 5220000 7576000
Long term debt 1700000 1400000 1000000
Short term debt 340000 280000 250000
Total liability 1740000 1680000 1250000
Retained earning 150000 1680000 3450000
Paid in capital 350000 516000 617000
Earning 240000 1174000 2450000
Total equity 740000 3540000 6517000
Total liability and 2480000 5220000 7576000
equity

7.4 ICFHP PROJECTED INCOME STATEMENT

2024 2025 2026

ICFHP service 76000 100000 200000
Total revenue 1480000 2840000 4400000
Other operating 70000 76000 96000
expenses
Depreciation 15000 20000 32000
Salary 348000 412000 520000
Rent and utility 125000 140000 180000
Marketing plan 800000 900000 1000000
Total expenses 14360000 1648000 2028000
Net income 44000 1192000 2372000
Net profit/sales 3% 42% 54%
 7.5 Risk Management and Protection

Medical insurance is a crucial risk management tool for doctors, providing financial
protection against unexpected medical expenses and liabilities. Comprehensive medical
insurance coverage can safeguard doctors from the high costs associated with medical
treatment, including hospitalization, surgery, and prescription medications. It can also
provide coverage for preventive care, such as routine check-ups and screenings, which can
help doctors maintain their health and well-being.
By obtaining comprehensive medical insurance, doctors can minimize their financial
risk and ensure that they have access to the medical care they need to maintain their
health and practice medicine effectively.
But if the business is not going as planned it is important that this activity doesn’t halt
because this isn’t only a business but also a lifesaving opportunity for the doctors with a
lower salary. The threats this business will be phasing are:
1. Financial crisis: - The financial capacity of the company is the most important thing to
be considered when we talk about the capability of the business to function fully. For our
case we will consider those cases that need a much more finance than the one they
supplied. Let’s take an example of a doctor who got a brain tumour and for him to be
medicated he should travel aboard with a lot of money so this would cause the company to
phase a huge finance problem. So the best way to deal with this is going to be providing
the patient a debit with the government involved. The debit should be provided with the
patient’s financial capacity. This way the life of the patient and the finance of the company
will be stable.
2. Number of case at a time: - If the case of emergency being reported is increasing
through time this would be a problem for the company to manage or supply the service as
promised. So the best way to deal with this problem would be to classify the cases into
different levels depending upon the severity of the cases. The classifications that we would
use are
1. The doctors themselves
2. The family of the physician
 But also these classifications would be rather classified generally into 3 main levels
 Level-1: The one which need medical attention at a higher level.
 Level-2: The one with a severe injuries but not that much serious as Level 1.
 Level-3: The one with least serious health problems.
This classifications would give the company an insight how and who to consider for the
aid.
3. Management system this will probably be caused by two ways the first to be the
finance management and the other to be operation management.
The finance management is concerned with the resource allocation and the number of
employees under the company. The problem is obviously caused by lack of experience of
the business manager so the best way to resolve this would be to train the managers and
the employees more often.
The operation management could be the main problem that the company can face why
we say this is because if the company doesn’t form an environment with a sustainable base
and which the relation between the manager and the employee is smooth, the company
would probably collapse and cause a downfall of the business.
4. External factors like inflation in market industries like the work place, salary for the
employees.
5. Loses caused by natural disasters, large scale accidents or widespread claims.

7.6 Exit Strategy for Medical Insurance for Doctors Business Plan

It is crucial for the business to have a future not only as a business but also to help the
physicians in hand in their day to day life. So an exit strategy is a plan for how a business
owner will exit their business. Then we will follow one of the strategies below depending
upon the situations we would face.

Types of Exit Strategies

There are a number of different exit strategies that we would consider, including:
 Sale of the business: We can sell our business to another doctor, a group of doctors,
or a healthcare organization.
Merger: We can merge our business with another medical insurance company to
create a larger, more competitive organization.
Initial public offering (IPO): We can take our business public by selling shares of
stock to investors. This can be a lucrative exit strategy, but it is also complex and
time-consuming.
Employee stock ownership plan (ESOP): We can sell our business to an ESOP, which
is a trust that holds shares of stock for the benefit of employees. This can be a tax-
advantaged exit strategy, but it can also be complex and time-consuming.

Factors to we considered when choosing an Exit Strategy

When we choosing an exit strategy, we considered a number of factors, including:

 Our financial goals: How much money do you want to make from the sale of your
business?
 Our tax situation: Some exit strategies can have significant tax consequences.
 Our personal goals: What do we want to do after we exit our business?
 The market conditions: The value of our business will be affected by the overall
market conditions.

Therefore, finally we chose the exit strategy which we found the most favourable one
which is the second one. To merge and become a huge company with a lot of employees
and make a difference in the business world. This will give our business a new chapter with
a lot more to accomplish.
 8. Conclusion
Our comprehensive business plan outlines a compelling opportunity to establish a
specialized insurance company dedicated to providing tailored health care insurances
solutions for health care professionals. By leveraging our deep understanding of the unique
risks and need soft his market, we aim to become the preferred provider for health care
professional seeking comprehensive and reliable coverage.
We are confident that our experienced management team, strong financial foundation,
and commitment to delivering value to our customers will position us a sale adder in the
health care insurance industry .By providing peace of mind and financial protection to
healthcare professionals, we will contribute to the well-being of both the individuals we
serve and the health care system as a whole.

We believe that investing in our insurance company for healthcare professionals is a wise
decision that will yield significant returns for our stakeholders. We are excited to embark
on this journey and make a positive impact on the lives of healthcare professionals,
ensuring that they can continue to provide exceptional care to their patients.

9. Appendix

Partnership agreement:-
Partners: BEKA BEDHASA, FUAD TEMAM, KETIM LELISA, MEKLIT ADERA AND SIFEN TULU.
 Creating of partnership:-a so far partnership form of business, the partners enters
into a partnership for the purpose of operating a business knows mas Insurance for
healthcare professionals.
 Nature of partnership business:-the business is service provider.
 Contribution of the partnership:-the partners will contribute 50% of equity to the
IFHCP business venture.
 Profit and loss allocation:-the partners will share business profit and loss in the
same proportions as their contributions to the business.
 Management of partnership business:-the partners will have equal management
powers and responsibilities.
  Dispute resolution:-if a dispute arises under this agreement, the partners agree first
try to resolve the dispute with the help of a mutually agreed on mediator. If it is
impossible to arrive at a mutually satisfactory solution, the partners agree to submit
the dispute to binding arbitration in the same city or region.

THANK YOU PAGE…

Finally; we want to thank our lecturer for giving as this mind blowing
assignment which really make us think about the business world in a very
different perspective and also our team agreed that if we ever got the
opportunity of this kind we would be glad to try it out and thank for everything.

THANK YOU!!!