FINANCIAL PLAN :-

The budgetary allocation of Funds can be divided into the following broad
categories :-

FIXED COSTS: The fixed costs will constitute of two basic costs in
the initial stages :-

1) Technology Costs- During the initial stages it will represent initial

revenue allocation for all fixed computer that needs to be buyed out and
internet- related developments and charges ..
Cost/Unit No. Of Units Total Cost
Fixed computer 30000 10 300000
Software development 150000
Website design 150000
Systems integration 150000
TOTAL TECHNOLOGY 7,50000
COSTS

2) Corporate Costs. It represent a percentage of revenues allocation for all

fixed corporate cost associated with office related charges. Here we have
taken the sales force comprises of 5 people with salary of Rs 6000 each
and apart from it we have got the training expense at the cost of
2000/person for 1 month . Corporate costs also comprise of the office rent
for the coming 12 months and furniture and equipment costs.
Price(Labour) Months Cost
Sales Force 30000 12 360000
Training Expenses 10000 1 10000
Office setup
Office Rent 25000 12 300000
Furniture and other 100000 100000
equipments
Total Corporate Costs 7,70000

SALES AND MARKETING EXPENSES : Marketing expense here will

comprise of a basic initial amount required in order to create
awareness and apart from that a certain sum every month for basic
marketing and sales promotion . In the initial stage it represents a
percentage of revenues allocation for advertising in all media. In the
subsequent years, the much larger budgets include allocations for TV
advertising.
Sales expenses represents a percentage of revenues allocation for marketing
and selling activities, including commissions paid on advises given by
the doctors and sales promotions .In the initial year let the amount allocated
for sales be Rs 2,00,000
Marketing Expenses Price Month
s
Initial Marketing 2,00,000 2,00,000 5,60,000
Expense
MonthlyMarketing 30,000 12 3,60000
Expense
Sales Expenses 2,00,000 2,00,000
Total Marketing 7,60,000
Expense

. OTHER MISCELLANEOUS EXPENSES :- It basically comprises of

expenses on
Research and Development: represents a percentage of revenues
allocation for R&D activities..
General & Administrative: represents a percentage of revenues
allocation for expenses associated with running a corporation for example
electricity and maintenance costs
Depreciation: represents a depreciation on all capital investment.
The total amount allocated for miscellaneous expenses would be
2,00,000

TOTAL BUDGET

The total budget plan includes the cost incurred in all the 3
segments and it amounts to Rs 24,80,000.