Medical Equipment Developer Business Plan

Medquip, Inc.

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Company Summary

Medquip, Inc. will develop and market endoscopic medical devices through multiple distribution channels both foreign and domestic. The company is currently developing its patent-applied technologies to final product and approval stage. It is also seeking to establish its corporate identity in the medical products field. Growth strategy calls for one joint venture license as well as the following objectives:

  1. Complete the patent process.
  2. Establish corporate identity, brand names, trademarks.
  3. Establish a medical advisory board.
  4. Build staff, infrastructure, and retain consultants for trial and compliance issues.
  5. Conduct animal trials.
  6. Prepare for FDA clinical trials.
  7. Continue R & D and product development.
  8. Explore options for 2nd round financing (venture capital, corporate alliance, licensing, public offering) to maximize value to shareholders.

Note: Management believes that accelerated FDA approval process will be available on the band ligation device since it involves only modifications on an existing, approved device. There is past precedent in 510k approvals (in an average of 3 months) in documented cases.

Start-up Summary

The key elements in the Start-up plan for Medquip, Inc. are:

  1. The legal expense for filing all patent applications.
  2. The establishment of Corporate Identity.
  3. The location and place of doing business.
  4. Funding of additional capital raising alternatives.
  5. Salary for the two key managers and founders.
  6. Formulation of Strategic Plan. Costs of raising capital through private placement.

$215,000 was raised from the initial two investors for these purposes. This funding came in in early 1998 and these tasks have either been completed successfully or are in the final process of completion. These are treated purely as start-up expenses by this plan.  $128,000 is treated as cash-on-hand as of the start of this plan on January 1, 1998. The remainder of the start-up capital required as well as capital required for the continuation of operations in the first six months will be provided by selling the shares in the private placement. The capital obtained from these sales is expected to total an additional $850,000 and the plan calls for this cash to be infused in May and June, 1998.

Start-up Funding
Start-up Expenses to Fund $130,000
Start-up Assets to Fund $128,000
Total Funding Required $258,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $128,000
Additional Cash Raised $0
Cash Balance on Starting Date $128,000
Total Assets $128,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $150,000
Investor 2 $65,000
Investor 3 $29,000
Investor 4 $14,000
Additional Investment Requirement $0
Total Planned Investment $258,000
Loss at Start-up (Start-up Expenses) ($130,000)
Total Capital $128,000
Total Capital and Liabilities $128,000
Total Funding $258,000
Start-up
Requirements
Start-up Expenses
Legal $50,000
Stationery etc. $2,000
Consultants $3,000
Insurance $3,000
Rent $9,300
Custom CAD software $5,700
Logo Design $1,000
Management Salaries $56,000
Total Start-up Expenses $130,000
Start-up Assets
Cash Required $128,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $0
Total Assets $128,000
Total Requirements $258,000

Company Ownership

Medquip, Inc. is a South State "C" corporation.

Its founding shareholders are:

Eric Smith (2,545,000 shares)
Timothy Jones (500,000 shares)

At the date of this plan, two additional shareholders are of record:

Arthur C. Clark (50,000 shares)
Genesis Corp. (14,000 shares)

Company Locations and Facilities

Medquip, Inc. business offices are at 1234 Main Street, Anytown, U.S.A. Phone is .... Fax is .... These offices are leased month-to-month on a temporary basis. This business plan calls for the establishment of corporate offices, R&D facilities, and prototype and small-run manufacturing facilities. These facilities are to be located in Puerto Rico with 10,000 sq. ft. initially expandable to 30,000 sq.ft. Rental costs in Puerto Rico range from $1.75 to $4.00 per sq. ft. Currently available space in Puerto Rico may also be used on a joint-venture basis to be negotiated.

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Start-up Funding
Start-up Expenses to Fund $130,000
Start-up Assets to Fund $128,000
Total Funding Required $258,000
Assets
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $128,000
Additional Cash Raised $0
Cash Balance on Starting Date $128,000
Total Assets $128,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Capital
Planned Investment
Investor 1 $150,000
Investor 2 $65,000
Investor 3 $29,000
Investor 4 $14,000
Additional Investment Requirement $0
Total Planned Investment $258,000
Loss at Start-up (Start-up Expenses) ($130,000)
Total Capital $128,000
Total Capital and Liabilities $128,000
Total Funding $258,000
Start-up
Requirements
Start-up Expenses
Legal $50,000
Stationery etc. $2,000
Consultants $3,000
Insurance $3,000
Rent $9,300
Custom CAD software $5,700
Logo Design $1,000
Management Salaries $56,000
Total Start-up Expenses $130,000
Start-up Assets
Cash Required $128,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $0
Total Assets $128,000
Total Requirements $258,000