Residential Assisted Living BUSINESS PLAN Here to help the old ones. Prepared By John Doe (650) 359-3153 10200 Bolsa Ave, Westminster, CA, 92683 info@upmetrics.co https://upmetrics.co Table of Contents Executive summary 4 Problem Definition & Validation 4 Solution 4 Objectives 5 Strategic Objectives 5 Operational Objectives 5 Mission statement 5 Keys to success 5 Financial Highlights 7 Home Aid - 3 Year Revenue Highlights 7 Chart 7 Business overview 8 Company Ownership/Legal Entity 8 Location 8 Interior Operating Facilities 9 Hours of Operation 9 Startup summary 9 Products & Services 10 Core Services 10 Live-in Care 10 Packages Offered 11 Hourly Care 11 Service Execution 12 Market Analysis 13 Market segmentation 13 Market Trends 13 Target market 14 Competitive Advantage 14 SWOT analysis 15 Strategy & implementation 17 Distribution Strategy 17 Marketing and Promotions Strategy 17 Pre-Launch Strategies 17 Launch Strategies 17 1 / 31 Post-Launch Strategies 18 Positioning Statement 18 The planned positioning of Home Aid's Market 18 Sales strategy 18 Pricing strategy 19 Operational Plan 20 Organization chart 20 Chart 20 Stacy Green 20 Jane Doe 20 Amanda Doe 20 John Doe 20 Management Team 20 Personnel Plan 21 Hiring plan 21 JANE DOE 21 AMANDA DOE 21 JOHN GREEN 22 Milestones 23 HOME AID 23 Financial plan 24 Important Assumptions 24 Brake-even Analysis 24 Projected Profit and Loss 24 Profit Yearly 26 Chart 26 Gross Margin Yearly 26 Chart 26 Projected Cash Flow 27 Projected Balance Sheet 28 Business Ratios 29 2 / 31 Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. 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See How It Works [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 3 / 31 Executive summary Start Writing here... A compassionate individual determined to bring positive change to the lives of many; Ms. Stacy possesses a keen interest in providing home care services to the elderly and adults with special needs who are unable to fend for themselves. Having identified a distinct market opportunity for such services in the US—where exists high standards of care that complement her principles Problem Definition & Validation Start Writing here... In the United States, it is culturally required for children to leave their parental home and build a life outside of their nurturing homes once they reach adulthood. While this culture significantly aids in children becoming independent, self-reliant, and successful from an early age, the downside is often faced by aging parents. Living alone can leave aging individuals facing Solution Start Writing here... Home Aid is founded by Ms. Stacy with her aim to enter the booming home care market in the US. She intends to receive adequate training to understand its standard operating procedures and domiciliary care service offerings—i.e. hourly and live-in care arrangements for the aged and disabled populace. By optimizing and building upon the successful ‘tried-and-tested formula of the To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 4 / 31 Objectives Strategic Objectives Start writing here... To establish a home care facility to cater to South Dakota and the surrounding vicinity in 2022 To build a reputation in the assigned territory as a high-quality, safe, and effective domiciliary care service provider over the first five years of operations Operational Objectives Start writing here... To achieve and maintain at least 80% annual business efficiencies—i.e. Care Worker utilization vs. availability—throughout the first five years of operations To develop and implement a strategic promotional campaign within the first year of operations to expand market share, preferably to a double- Mission statement Start Writing here... To make available the choice for people to remain safe and happy in their own homes by providing first-class domiciliary care services combined with supplying independent living equipment. We aim to be the best at what we do while ensuring employee satisfaction and capturing the hearts of those we serve. Keys to success Management Expertise Ms Stacy has over 20 years of management expertise in a number of prominent companies, along with strong traits of compassion and hard work. Staff Training & Development Home Aid will accurately set and follow the standards through effectively training and guiding its staff and care workers. To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 5 / 31 Service Quality Home Aid will be service-oriented, and strive to provide high-quality domiciliary care services to their clients in every respect, exceeding their highest expectations. Untapped Market Access to high quality and affordable staff is important to Home Aid in executing its service mandate. The growing workforce of South Dakota would contribute to this. Flexible Services Home Aid will be prepared to accommodate the unique needs of its clients in s flexible manner without compromising on quality. Superior Customer Support Exceptional customer service will play a pivotal role in the success of Home Aid as it will not only be aligned with the company's aim to bring a smile on its client but also enable repeat business and customer loyalty by ensuring that workers are polite, friendly and professional. [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 6 / 31 Financial Highlights Start Writing here... The company envisions raising an equity investment of $50,000 through long- term borrowings, which will be used for the setup and launch of the care facility in the US. The company expects to steadily grow its revenues through active efforts in marketing, networking, excellent customer service, and quality products. Meanwhile, the company will establish a healthy net profit ratio that Home Aid - 3 Year Revenue Highlights Financial Year Sales Gross Margin Net Profit 2021-22 360723 114289 13038 2022-23 538041 216784 44360 2023-24 665012 269869 65638 Sales Gross Margin Net Profit 2021-22 2022-23 2023-24 0 250.00k 500.00k 750.00k To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 7 / 31 Business overview Start Writing here... Home Aid expects to commence operations in July 2022 once it has acquired the necessary licenses to operate a home care facility for the state of South Dakota and its neighboring territories. Basing its administrative headquarters in South Dakota, the company will offer hourly and live-in care services to the elderly population and those with disabilities within the locale. The territory was Company Ownership/Legal Entity Start Writing here... The company will be registered as a limited liability entity with the Department of State. Further, since the company envisions setting up operations in South Dakota, it will also register with the local county. The business will be wholly owned and Managed by Founder Ms. Stacy Green, who will also be the principal investor of the business. Location Start Writing here... Home Aid will begin operations for its home care facilities from South Dakota, a state which is touted for its home care services and population of senior citizens. Mount Rushmore State has much more to offer in terms of advantages and benefits for a variety of businesses. It is home to big corporations and large enterprises including Avera Health, Regional Health, To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 8 / 31 Interior Operating Facilities Start Writing here... The company will begin operations from a picturesque property in South Dakota to set up its offices and home care facilities. Initial investments in setting up the interior facilities, consumables, inventory, and client entertainment space will be set up. Additions to space will be made as the company expands operations. Hours of Operation Start Writing here... Home Aid will operate an assisted living facility in the state of South Dakota. Office hours will be akin to corporate working hours while the facility will have staff working 24/7 in shifts to ensure aid is available at all times of the day. Startup summary Start Writing here... The founding team will infuse a capital sum of $50,000 through long-term borrowings to meet the company’s start-up requirements. The start-up expenses are estimated at $18,500, primarily consisting of interior renovation, rent, and advertisement expenses. A further sum of $15,000 will be used to purchase initial stocks, furniture, computer, and other salon equipment. Sales To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 9 / 31 Products & Services Start Writing here... Most people live independently in their own residences, but living alone is difficult for those who are frail or have long-term care needs. They require the help and support of other people and services. Sadly, most times, the families of those who need assistance do not have the time to provide for their day-to- day needs, nor do they possess the know-how of how to tackle specific Core Services Start Writing here... Clients may choose from a full-time live-in arrangement (live-in care) or additional help a few times per week (live-out care) to maintain a good quality of life, sans the stress and upheaval of moving to a residential care home or medical establishment. Live-in Care Start writing here... The benefits of live-in care are visible for both clients and their families through the successful service of the Franchisor over the years. Full-time care-at- home service allows clients to stay in familiar and relaxed surroundings with excellent one-on-one support. Support assistants embrace personal care, housekeeping, and most importantly, companionship. They will live in the To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 10 / 31 Packages Offered 24Hr Sleep-in Includes 10 hours of full support during the day and sleep-in service at night $100 24Hr Awake Includes 10 hours of full support during the day and an awake night service (2 workers assigned on shift basis) $150 10Hr Sleep-in Sleep in service to provide support if required. If more than 4 hours of continuous sleep are not achieved then the hourly support charge is applied for the entire shift. $50 Hourly Care Start writing here... Hourly care involves care assistants visiting clients on short/temporary stays that usually last for around 60-minutes or multiples thereof. A dedicated, trained team of care workers will provide clients with a range of services tailored to suit their requirements. A care plan is agreed upon in advance, complete with services that range from assistance with carrying out simple To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 11 / 31 Service Execution Start Writing here... Home Aid will aim to ensure that receiving support at home is as stress-free as possible. The idea of someone new living in one’s place of residence could cause some apprehension; however, Home Aid will go to great lengths to provide sufficient reassurance. The initial part of the process is a client meeting. At this meeting, clients will To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 12 / 31 Market Analysis Start Writing here... The U.S. assisted living facility market size was valued at USD 83.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% from 2021 to 2027. The growing geriatric population and the rising incidence of brain injuries are expected to boost the growth of the market. The growing prevalence of target diseases and advancements in assisted living Market segmentation Start Writing here... There are approximately 28,900 assisted living communities with nearly 1 million licensed beds in the United States today. The average size of an assisted living community is 33 licensed beds. Market Trends Start Writing here... The concept of continual care retirement communities is gaining traction among seniors with high disposable income. These retirement communities are known to cater to people aged 50 years and above. The idea behind these communities is to prevent seniors from relocating when additional care is needed. As a result, the less than 65 years segment is likely to receive a To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 13 / 31 Target market Start Writing here... It is foreseeable that by 2039, 1 in 12 people will be over the age of 80, and several people aged 75 and above are projected to reach 9.9 million. This naturally causes the need for more home care facilities. This growing need for domiciliary care services puts pressure on the government for improved healthcare and pensions. In some instances, families live away from their Competitive Advantage Family Atmosphere Home Aid’s Staff will provide customers a family like feel to ensure they are comfortable and open with the care giver. An open communication is necessary to ensure satisfaction as well as accuracy of service provided. Trained Staff The Home Aid staff will be adequate trained in nursing and first aid to ensure the clients are in professional hands Reputation Home Aid will strive to build a reputation of becoming the best assisted care provider in South Dakota Operating Hours Home Aid, while operating in corporate hours, will ensure availability 24/7 to be able to attend to the special needs of the client. To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 14 / 31 SWOT analysis Start Writing here... A SWOT (Strength, Weakness, Opportunity, and Threat) analysis is a useful tool for businesses to evaluate their position in the market against the potential internal and external factors that could assist or jeopardize their operations and existence. A SWOT has been conducted for Home Aid and is presented below. Strengths The Founder has over 20 years of leadership and managerial experience which would be of great assistance in her new role. The founder has access to sufficient funds to maintain business operations until stable. Flexible/part-time/as-needed staffing arrangements for Care Workers will help keep fixed costs low. Providing rigorous staff and care worker training prior to placement assures exceptional quality. The low capital intensity of the business Monitoring systems are in place to track work time and provide flexible shifts accordingly for care assistants, creating a positive working environment. Continuous assistance can be obtained from the Franchisor and associated networks. The founder's passion for social work, particularly the elderly and disabled. S Weaknesses Home Aid would be a new business entering an industry with existing levels of competition. Zero market share in the chosen geography at the onset. Will require continuous and somewhat aggressive marketing and promotions to achieve and sustain market share. The founder has limited knowledge of South Dakota, its people, and culture, which could be overcome by doing the market research, participating in community events, and engaging with customers through social media W To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 15 / 31 Opportunities There is a general acceptance that “care at home” is better. Further capacity expansion is possible until peak volumes are achieved. New markets opening constantly i.e. support for those with learning difficulties, children’s Services, etc. People want to be able to stay at home and maintain their independence for as long as possible which means a larger and expanding need for domiciliary care. Increasing costs of residential care mean people are more likely to choose domiciliary care services that are cost- friendly. Projected increase in healthcare expenditure. Home care providers can target clients with private healthcare insurance. O Threats Other domiciliary care service providers in and around the area already have an office and have already established a clientele. Changes in local and/or national government policy. Possible Competition from Residential Care Providers. Market saturation. T [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 16 / 31 Strategy & implementation Start Writing here... Operating solely as a B2C service provider, the company’s core offerings are uniquely tailored to cater to those aged 65 and above who live in their own homes and are unable or find it difficult to fend for themselves. The following section proposes the use of both online and offline marketing techniques to successfully capture the attention of prospective clients. Distribution Strategy Start Writing here... The Founder has identified the target market as elderly and/or disabled communities living in their own residences who are unable to carry out day-to- day activities effectively. At its inception, Home Aid would offer non-medical services to their clients, striving to create and strengthen the brand attributes of reliability, honesty, flexibility, and transparency. Research by Care Industry Marketing and Promotions Strategy Pre-Launch Strategies Start writing here... 1. Putting up window stickers – “opening soon” at the selected building location 2. Leaflet distribution in the area, especially in communal areas 3. Online platforms and social media such as a website, blog, and LinkedIn, particularly to reach working individuals who are unable to take care of Launch Strategies 1. Publishing a local press release announcing arrival and start-up 2. Local press advertising via newspapers and magazines 3. Targeted customer mailshot 4. Continued leaflet distribution in both communal areas To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 17 / 31 Start writing here... Post-Launch Strategies Start writing here... 1. Regular leaflet distribution in both communal areas 2. Regular advertising via newspapers, magazines, local TV stations, posters Local PR 3. Maintaining online presence via social media, company website, blog, and LinkedIn Positioning Statement The planned positioning of Home Aid's Market Aged Individuals Aged individuals who need help with medication and house chores Disabled Individuals Assist disabled individuals in daily tasks like dressing, eating, exercising. Sales strategy Start Writing here... According to the recent market survey, most customers discover assisted living facilities mainly through seeing the physical outlet and word of mouth, while a small proportion of customers find a coffee shop through social media. The company will undertake a ‘pre-opening promotional campaign’ in consultation with an expert to boost the visibility of the new store. Some ideas To unlock help try Upmetrics! To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 18 / 31 Pricing strategy Start Writing here... The live-out service will be priced at a fixed rate of $22.00 per hour. The prices for the live-in service will vary, depending upon the duration and type of service. For example, a 24-hr service with sleep-in will be priced at $420. Further, the same duration of service with an awake night will be charged at $520. Nevertheless, the average hourly rate is estimated at $16.29 for the live- To unlock help try Upmetrics! [YEAR ] Bus ines s Plan | R es idential As s is ted Liv ing 19 / 31