Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Download for free

Medical Equipment icon Medical Equipment Business Plan

Start your plan

MedNexis, Inc.

Company Summary

MedNexis will research and develop biomedical devices, including the MedStim and TheraMag systems, to aid in the treatment of a variety of diseases. Its customers are patients afflicted with any condition resulting in muscular atrophy, as well as those patients interested in the proposed alternative benefits of magnetic therapy. The company is currently developing its patent-applied technology to final product and approval stage. It is also seeking to establish its corporate identity in the medical products field. The company’s growth strategy involves the following objectives:

  • Complete the patent process.
  • Establish corporate identity, brand names, trademarks.
  • Set a clear business direction and both long-term & short-term goals to be achieved.
  • Build staff and company infrastructure.
  • Complete clinical trials and obtain FDA approval.
  • Continue R&D and product development.
  • Maintain market performance by linking remuneration packages for key personnel with the performance of the company through stock options and other salary schemes.

2.1 Company Ownership

The company will be incorporated in North Carolina. It will have authorized 15,000,000 ordinary shares and 150,000 preferred shares. The rights and privileges of these shares will be stated in the company’s Articles of Incorporation.

The proposed share capital of the company prior to capital raising

Owner Percentage of Shares Owned
Daniel Burnett 40%
Mike Marriott 20%
Nathan Wain 20%
Brian Bell 20%

The company is expected to raise seed capital of approximately $750,000 prior to the commencement of its business operations. Additional working capital is anticipated and will be raised in year 2 of operations. Capital raising exercises are anticipated to be conducted in 2 portions (i.e. Year 0 and Year 2) raising approximately $6.75 million in funds.

2.2 Start-up Summary

The key elements in the start-up plan for the company are:

  • The legal expense for filing all patent applications.
  • The establishment of a corporate identity.
  • The location of business.
  • Funding of working capital requirements, purchases of other equipment and assets deemed necessary for the principle operating activities of the company, and additional capital raising alternatives.
  • Salary for key managers and staff of the company.
  • Formulation of the strategic business plan.

Costs of raising capital through private placement

Approximately $250,000 was raised from the founders of the company for these purposes. This funding will be available in early 2001 and these tasks have either been completed successfully or are in the final process of completion.

These are treated purely as start-up expenses and initial working capital by this plan. The $250,000 is treated as cash-on-hand as of the start of this plan on January 1, 2001. The remainder of the start-up capital required, as well as capital required for the continuation of operations in the first 6 months will be provided by selling the shares via a private placement to key investors. The capital obtained through this fund-raising exercise is expected to provide an additional $750,000 and the business plan calls for these funds to be infused for the purposes of operating the business, in accordance with this business plan.

Medical equipment business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $168,000
Start-up Assets to Fund $82,000
Total Funding Required $250,000
Non-cash Assets from Start-up $0
Cash Requirements from Start-up $82,000
Additional Cash Raised $0
Cash Balance on Starting Date $82,000
Total Assets $82,000
Liabilities and Capital
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $0
Planned Investment
Daniel Burnett $100,000
Nathan Wain $50,000
Mike Marriott $50,000
Brian Bell $50,000
Additional Investment Requirement $0
Total Planned Investment $250,000
Loss at Start-up (Start-up Expenses) ($168,000)
Total Capital $82,000
Total Capital and Liabilities $82,000
Total Funding $250,000
Start-up Expenses
Legal $50,000
Stationery etc. $500
Brochures $3,000
Consultants $3,000
Insurance $3,000
Rent $1,000
Research and development $100,000
Expensed equipment $6,500
Other $1,000
Total Start-up Expenses $168,000
Start-up Assets
Cash Required $82,000
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $0
Total Assets $82,000
Total Requirements $250,000

2.3 Company Locations and Facilities

The company will initially be based in the Research Triangle Park area in North Carolina.

In view of the strategic plan to contract with a third party for all manufacturing requirements, the facilities needed will be mainly offices for personnel and storage space for inventory. After Year 5, when the market for our products reaches our anticipated milestone, the company will explore the feasibility of constructing its own manufacturing facilities.