HealthMonitor
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HealthMonitor

Health Monitor — Business Plan Highlights

The Health Monitor whitepaper was considerably shorter than typical documents provided during ICOs. We had several reasons to make this choice:

First, we thought that the typical startup slide deck format was more convenient for a business-focused ICO. Actually, Health Monitor isn’t inventing any decentralized models; we are simply using crypto tools to streamline the funding process. In the future, we could easily integrate into our machine tokens/coins concepts, but at a later stage.

Second, we believe that the current whitepaper format is too lengthy and complicated for most of the investors. Mixing too many technical and business aspects can be somewhat misleading for people pondering an investment.

That said, I’m writing this article to disclose more information about our business plans and explain more about why we claim amazing dividends for our machine business. You can learn more about our current developments, here.

Health monitor ’s success depends on a combination of research and customer development. Research is essential to ensure growth — adding new diseases to our diagnostics list and making the machine more and more accurate are the ingredients to attract people and community interests. Customer development, of course, is essential to sell our product also. Our device has huge potential, especially in regards to partnerships with other health sector players.

Our primary focus is the EU: according to our research, this market fits our machine use case. It’s a rich market with rising requirements regarding health and with relevant diabetes issues (mostly due to lifestyle).

Healthmonitor’s business model is pretty straightforward: place about 200 machines all over the EU and sell health checks for roughly $5 . To be successful, it’s necessary to find the correct place (we need crowded areas like airports and malls) and convince people that our machines are accurate. Our product (the machine) is already built, so we don’t need to concentrate much on the product (even if there will be constant updates, thanks to our research center based at the University of Novosibirsk).

We plan to install the first 30 working machines between April and September, and we will reach the 200 target in the following 12 months.

Initial marketing efforts will be relevant: we need to bring our concept to the final users. Of course, we will work both online and offline, and we will push heavily between April and August, while we plan to reduce this push in the following months. To promote online we will use our website, Google Ads, and publications. Offline, we will try to focus on newspaper and health magazine promotions.

Sales are very much related to the previous point. We really depend on our ability to convince people about product reliability; nobody is willing to pay for a false diagnosis. Of course, we are not worried about this aspect, since we strongly believe in our technology. Based on our forecasts, we plan to reach the $100k-per-month target in November 2018 and the $500k threshold in December 2019.

Cost breakdown is likely to change over time (marketing costs, for example, are likely to decrease after first 6 months), but our breakdown for October 2018 is as follows:

  • Vending Machine: 37%
  • Marketing: 22%
  • Rent and Service: 37%
  • Others (included personnel): 4%

I think it’s important to notice that our costs are mostly related to the machine commercialization. Thanks to our agreement with the IP owner, we are spending a limited amount of money for R&D. Regarding the Free Cash Flow, we plan to come into the “green” area from October 2018, when the first machines will start to provide a return.

Other financial indicators:

  • ROI — 600% (from August 2019 to July 2020)
  • NPV — € 4,028,280
  • IRR — 1,286%
  • Payback period — 1 year

The Healthmonitor management team includes experienced managers with a consistent track record of successful ventures. They have worked on several continents and developed valuable contacts with investors, entrepreneurs, and universities.

On the technology side, we are mostly employing scientists from the University of Novosibirsk, as it’s one of the most important Russian Universities.

If you want to read our business plan entirely, send me a private message via one of our communication channels:

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Mauro Biasolo

Blockchain|Funding|Startup Grind Veneto Co-director|SAP Financial expert|