1 TITLE Final Project - B.docx

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TITLE: Final Project - Business Plan for
Vic Spanish Riviera Retirement Home.
PROFESSOR: Daniel Doiron
NAME: Victor Palomino
ID # 3259445
University of New Brunswick, Saint John
COURSE: MBA 7010

DATE: September 30, 2011
2
1 Letter of Transmittal
September 23, 2011
Dear Investors:
My partner and I are pleased to submit our business plan for Vic
Spanish Riviera Retirement
Home to all potential investors. As a start up company we are
seeking investments that can bring
our plan into action. In return we guarantee an IRR in 5 years of
16% to our capital investors.
Our business plan will be a strong indicator of our potential

success and thus help you in
reaching a conclusion.
The purpose of Vic Spanish Riviera is to bring the best quality
service with all the nursing care
capabilities that fusions family environment experience and a
committed professional staff to
improve the standard of life to our clients. As shown in the
market analysis, the elder care
industry is growing as the baby boomers start to retire. Vic
Spanish Riviera sees the potential in
targeting this expanding market with a competitive advantage of
proving better nursing care
service, luxury and more social and recreational activities.
Certainly, throughout our business
plan we have shown how successful and profitable can Vic
Spanish Riviera be. Our business
plan includes complete details of our marketing, development,
operations and financial plans.
The plan also outlines a market and competition analysis, exit
strategy, break even analysis as
well as sensitivity analysis and mitigation factors.
Vic Spanish Riviera is welcoming investors interested in taking
advantage of this key potential
opportunity. If you have any questions, my partner and I would
be pleased to discuss these either
at your convenience. We look forward to doing business with
you.

3
2 Title Page
VIC SPANISH RIVIERA RETIREMENT HOME
Business Plan
To establish and operate a Retirement
Home Facility
in Halifax, Nova Scotia.
September 23, 2011
By
Victor Palomino

[email protected]
100 Tucker Park Road PO Box 5050
Saint John, NB
(506) 653-2065
4
Table
of
Contents
Table
of
Contents
...............................................................................................
.......................... 4
1 Letter of Transmittal
...............................................................................................
.......... 2
2 Title Page
...............................................................................................
............................. 3
3 Executive Summary and Fact Sheet
................................................................................. 5

4 Company Summary and Service Offering
...................................................................... 8
5 Market Analysis
...............................................................................................
................. 11
6 Competition Analysis
...............................................................................................
........ 14
7 Marketing Plan
...............................................................................................
.................. 16
8 Development Plan
...............................................................................................
............ 19
9 Implementation Schedule
...............................................................................................
. 24
10 Operations Plan
...............................................................................................
............... 25
11 Management Team
...............................................................................................
.......... 28
12 Risk and Mitigation Factors
......................................................................................... 30
13 Financial Plan
...............................................................................................
.................. 32
14 Sensitivity Analysis and Mitigation Measures
............................................................. 36
15 Long Term Development and Exit Plan
....................................................................... 39
16
Appendix………………………………………………………………
……………..41

5
3 Executive Summary and Fact Sheet
3.1 Executive Summary
Vic Spanish Riviera is a retirement home with nursing care
capabilities that fusions family
environment experience, recreation activities and committed
professional staff to provide
customers with high level of service, comfort and quality.
Located in Halifax, Nova Scotia, Vic
Spanish Riviera business model is focused around the customer.
In Canada, seniors are the
fastest growing population since the early 1980’s. With the high
number of baby boomers turning
65 in this decade and the current shortage of nursery care

services in the country, retirement
homes with nursing capabilities is an outstanding market to
enter to.
Coming from a family that has owned and managed businesses
in Peru and the US I possess
that entrepreneurial spirit to start up a business and successfully
turn it around to a winner in a
short time frame. Certainly, throughout my managerial career I
have enhanced my leadership and
analytical skills. I graduated with honors in business
administration from Florida International
University, US and I am a current MBA candidate from the
University of New Brunswick. I have
also been a member of a team that did a successful financial
feasibility study and a marketing
plan for a three star hotel for my last employer in Nazca city,
Peru. My partner is in the nursing
school at the University of New Brunswick and his expected
graduation time is in December
2011. In addition, he comes from a family that has a medical
practice background and he has
always loved to help sick and needy people. Our Board of
Advisors are both my partner's
relatives. In Vancouver, BC his father is a neurosurgeon doctor
and his uncle has been the
director for a nursing home in the same city. While having
summer recess in college for the last
three years he has work as resident assistance in Heaven Sunrise
Nursing Home in Vancouver,
BC thus gaining valuable experience. We both like challenges
and have the entrepreneurial
dream and determination to make the business a success.
The senior population has been growing at a steady rate for the
last decade in Canada as the

baby boomers are reaching 65 in the early 2010’s. Furthermore,
seniors aged 85 and over are the
fastest growing segment of the overall senior population thus
increasing the demand for elder
care services.1 As they grow older, elders required a place
where they can have human contact,
activities and the immediate nursery care if is needed. Now as
the demand for nursing homes
increases there is current shortage of nursing homes in Halifax
city. In addition there is also a
shortage of optimal retirement homes for people who are in the
middle ground not yet on the last
stage of their lives in needing full time nursery care but do find
hard to manage their lives for
themselves thus needing some assistance. In fact, there is a
current gap in this target market as
the growing number of elders has trouble fulfilling their
expectations when seeking a retirement
place that has a family environment with recreation services and
activities and has the
professional and medical staff available 24/7. In addition the
current waiting time in Halifax city

1
http://www.cbo-‐eco.ca/en/index.cfm/guides/how-‐to-‐start-
‐a-‐personal-‐care-‐home-‐for-‐seniors-‐in-‐ontario/
6
for a retirement home is around 1.5 years.
By opening a retirement home with nursing care capabilities for
50 elders in Halifax, Nova
Scotia, Vic Spanish Riviera will accomplish to meet elder’s
demands for a differentiated service
and quality care as well as create profit for the investors. My
partner’s and my retirement home
will offer a superior family experience with all the recreation
amenities and activities but with

the added valued of having a great nursery staff to attends
elders 24/7. Vic Spanish Riviera will
concentrate on the customers as their main priority. Our
building will be a state of the art, with a
pool, sauna, dancing room, fitness room and dining halls.
Laundry and housekeeping services
will be provided as well as dinning. Our competitive advantage
is the highest quality of nursing
care that we will provide due that we will have a 24/7 nursing
staff that will provide personal
assistance to our clients. We indeed will provide a specialized
service to each and every client
thus assuring customer satisfaction and a more enjoyable, happy
and healthy life for our clients.
Vic Spanish Rivera’s IRR will be around 16% after 5 years for
the original investment from
our investors. In addition, at the end of 5 years the cumulative
NPV will be $238,054 thus being
a profitable capital investment for investors. The amount of
capital that needs to be raised is $4
million dollars, around $800,000 for the land purchase in
Halifax, $2.9 million in constructing
the facility place with all the furniture and equipment plus
permits, insurances and licenses and
around $300,000 for 3 months operating expense. Vic Spanish
Riviera capital structure will be
financed 70% from debt by bank loans and 30% from equity by
investors. Our forecast profit for
the first year is $611,751. The time frame schedule to pay our
debt is in 5 years. Thus at the end
of 5 years, we would not only have paid all our deft but also our
equity investors will have made
more than $1.5 million in dividend payments made. The outlook
of the industry is potentially
growing and thus our goal is to open more retirement homes

after that period.
This is the right time to enter this industry, with the shortage of
nursing and retirement
homes that will be capable to take the increasing influx number
of elders that need personal and
nursing assistance while demanding a family environment with
full recreation services. Our
medical and operating staff will be committed in providing the
best professional quality service.
Vic Spanish Riviera will have the competitive advantage in
providing a more personalized
nursing care, comfort and more recreational activities. Halifax
is a growing city where baby
boomers choose as their retirement place and currently there is
a waiting list of about 1.5 years
for a retirement home2. My partner has a deep knowledge and
passion for the medical field. We
also have the top board of advisors, Mr. Raj Gupta a director of
a Nursing home in Vancouver,
BC and a successful business man and Mr. Sanjeev Sodhi a
neurosurgeon with over 20 years in
medical experience. Vic Spanish Riviera will be profitable since
the first year of operations and
will repaid our debt within 5 years. The 16 % IRR is an
outstanding indicator of our profit
potential thus providing our investors with a great return. My
partner and I have the leadership,
entrepreneurial and professional skills and determination to
make Vic Spanish Riviera a success.

2
http://www.statcan.gc.ca/pub/89-‐519-‐x/89-‐519-
‐x2006001-‐eng.pdf
7
3.2 Fact Sheet

Requested Funds: $ 4,000,000
$2,800,000 in Debt and $1,200,000 in Equity.
Business Type: Retirement Home
Sector Trend: The number of seniors in
Canada is projected to
increase from 4.2 million to 9.8 million between
2005 and 2036.3 In Nova Scotia, 14.2% of the total
population is seniors but by 2026 around 25% of
the
province population share will be seniors.4
Total Market %: The senior population in
2011 is around 65,000 in
Halifax city and around 160,000 in the entire province
of Nova Scotia.5
Current Situation: Shortage of Nursing and
Retirement Homes in
Halifax, Nova Scotia and the rest of Canada.
1.5 Years Waiting List for a Retirement Home in
Halifax.6
Location: Halifax, Nova Scotia
Projected Cash Flow – Year 1: $532,678
IRR after 5 Yr.: 16%
NPV after 5Yr. (12): $238,054
Debt Payment Time: 5 years.

3
http://www.statcan.gc.ca/ads-‐annonces/89-‐519-‐x/index-
‐eng.htm
4
‐x2006001-‐eng.pdf

5
http://www.chsrf.ca/Libraries/Aging_roundtable_reports/CHSR
F_Halifax_Roundtable-‐Web.sflb.ashx
6
‐x2006001-‐eng.pdf
8
4 Company Summary and Service Offering
4.1 Company and the Industry
Vic Spanish Riviera will enter the elder care service industry by
opening a Retirement Home in
Halifax, Nova Scotia. Vic Spanish Riviera is a start up company
that aims at providing high
quality service and a family atmosphere to seniors. Vic Spanish
Riviera will be an incorporated
business entity and will be owned by Victor Palomino,
Gangadeep Sodhi and capital investors.
We will provide shares to capital investors and they can decide
to sell their shares after a 5 year
period. Victor Palomino will be the general manager and will

also do all the accounting work
while Gangadeep will in charge of the nursing staff and be
available 24 hours a day as a RN for
Vic Spanish Riviera’s residents. The company website is
www.VicSpanishRiviera.com. Our
business model is build around our clients needs.
Our Vision is to improve and enhance the quality of life of our
clients.
The goals and objectives of Vic Spanish Riviera are as follows:
“To deliver outstanding quality care and service, to care about
the well being, safety and dignity
of each client, to have accountability and a committed staff and
to provide superior recreation
amenities and activities for our clients.”
At Vic Spanish Riviera we believe that the customer is the core
driver of our business. Certainly
we must achieve excellence in our service to be successful and
profitable as a business. Our core
values define what Vic Spanish Riviera stands for. Core Values
such as client first,
accountability, respect, integrity and top quality service are the
main structure for our business
strategy. We will establish an intimate personal relationship
with our clients and conduct surveys
to ensure top client service quality management. Vic Spanish
Riviera’s personnel staff will
always be happy and smiling. Our operations strategy will be
aligned with our objectives and
core values and thus, Vic Spanish Riviera will bring a
reasonable rate of return on the initial
investments.
The elder care service industry trend is growing as more baby

boomers in Canada start to retire
in the 2010’s. In fact, according to Statistics Canada the senior
share of the total population is
expected to almost double from 4.2 million in 2005 to 8 million
in 2026.7 As they grow older,
elders require more human contact, social activities and
immediate nursery care. In Canada, there
is a current shortage in the number of nursing and retirement
homes to receive the growing influx

7
http://www.statcan.gc.ca/daily-‐quotidien/070227/dq070227b-
‐eng.htm
9
number of seniors.8 Other factors to consider are that life
expectancy, literacy rate, income level
and education have increased among todays elders.9 Thus,
seniors expect more social and
recreation activities, family experience and higher quality care
services than before.
4.2 Service and Product Offering
The service that Vic Spanish Riviera will offer is a private
retirement home for seniors. Vic
Spanish Riviera will be located on a 5 acre land property in
Halifax, Nova Scotia and will be
housing 50 elder residents. Our building will be a state of the
art with a pool, sauna, dancing
room, activity room, computer room, fitness room as well as
dining halls. Each resident will
enjoy their own luxury bedroom suite with their private
bathroom and sitting area. Vic Spanish
Riviera will take care of all major tasks chores so that our
clients remain free of worries and thus
concentrate on enjoying their lives in our facilities. All meals
and snacks would be made fresh

daily by our gourmet chef. Our housekeeping staff will perform
all cleaning and laundry duties.
Once a week we will have a dietician came to our facility. In
addition, our maintained person
will take care of any repairs, lawn services and any other
required chores. Vic Spanish Riviera
will also provide the highest quality of nursing care to our
residents and our professional staff
will be available to provide personal assistance 24 hours a day 7
days a week.
Certainly, at Vic Spanish Riviera our goal is to enhance the life
of our clients. So besides
comfort, safety and health care factors we will focus on
recreation activities for our residents. A
full time activity coordinator will organize weekly activities
inside and outside the facilities. Our
clients will feel pampered and thus satisfied by all the fun
recreational activities that we provide
such as bingo nights, daily exercises, cooking classes, games
among others more.
Here is a detailed explanation of our service value proposal.
Facilities
Vic Spanish Riviera will be on a 5 acre property in Halifax,
Nova Scotia presenting an unique
exclusive getaway for seniors. The property boasts a forest with
nature trail, a duck pond with a
marvelous and picturesque view of the sunset. Vic Spanish
Riviera is also located just 5 miles
from the center of downtown Halifax.
Nursing Staff and Medical Equipment
My partner Mr. Sodhi will become a Registered Nurse and will
be available 24 hours for nursing

care assistance. Vic Spanish Riviera will provide 2 LPN’s
(Licensed Practical Nurses) and 3
RA’s (Restorative Nursing Aides) to ensure top quality nursing
care service for our residents.
The LPN will perform resident’s test assessments such as
recording blood pressure, heart rate,
glucose among others and report the results to Mr. Sodhi (RN).
The RA will assist patients with
exercises to maintain their mobility as well as provide with
nursing care and services according

8
http://www.cbc.ca/news/canada/new-
‐brunswick/story/2011/01/24/nb-‐nursing-‐homes-‐beds-
‐shortage.html
9
http://www.statcan.gc.ca/ads-‐annonces/89-‐519-‐x/index-
‐eng.htm
10
to the schedule provided by Mr. Sodhi (RN). When needed the
RA will do also assist residents
with daily living programs such as providing baths and
massages. The nearest Doctor is a 5
minute drive from Vic Spanish Riviera and the nearest hospital
is 15 minutes away. Each room is
equipped with an electronic device to notify the aides of any
emergency or assistance that
residents might request.
Vic Spanish Riviera has invested around $42,000 in Medical
Furniture and Equipment such as
Hemoglobin, Glucose and Cholesterol Test Machines, Vital
Signs, Blood Pressure and
Defibrillator Monitors, Wheelchairs, Safety Benches, Shower
Chair, Audiometer, Spirometer,

Speculum, First Aid Kit, and among others to provide
outstanding nursing care service and test
assessment to our residents and thus increasing their standard of
living. See Appendix 7 for a list
of our medical equipment.
Dinning, Dinning Halls
Our two gourmet chef will provide three healthy and warm
meals options at each dinner. At Vic
Spanish Riviera we want to bring excellence cuisine with an
emphasis on healthy eating and also
our residents are encouraged to offer suggestions to the chef.
Also we have an open kitchen with
all the amenities available for our residents to indulge their
baking and cooking skills when they
please. Also, we have 2 Dinning Halls with modern furniture
where our residents will enjoy their
meals while having a nice time in our bright atmosphere with
their fellow residents.
Fitness Room, Fitness Trainer, Dietician and Outdoor
Equipment.
We have an equipped fitness room to encourage personal fitness
for our members. We believe
that exercise is a key part to maintain optimal health condition
for our residents. A part time
Fitness Trainer will be in charge of the cardio, therapy and
muscle resistance programs in the
fitness room. The programs will include fitness dance exercises,
bicycle class, abdominal and
stretching and muscle resistance training. See Appendix 8 for a
list of our fitness equipment. A
dietician will come once a week to check the improvement of
our resident’s fitness health and
provide healthy recipes according to each personal needs and
requirements. In addition, residents

are also encouraged to enjoy the country air while walking or
biking around our 5 acre
compound. We have 15 bicycles for residents in our facility.
The Suites
Vic Spanish Riviera has new luxury suites with a private
bathroom with safety handrails and
sitting area. In addition, each member is welcome to
accommodate their rooms as they wish.
Individual controlled heating, electronic device and alarm
system are among the features at Vic
Spanish Riviera.
The Living Room and Activity Room
Our family room is the center of the building and reflects our
goal of establishing a family
experience among our residents. Residents can have quiet
reading by the fireplace, a game of
chess or checkers or perhaps play a melody on the piano. It also
3 Plasma TV’s where we play
11
daily night movies. The activity room is equipped with all the
tools and appliances to make arts
and crafts. It also has tables, chairs and a small stage where
they practice acting lessons or
entertain other members. It also has a big sliding door that
opens to the outside patio and to the
swimming pool. The rooms include new comfortable and stylish
furniture.

Housekeeping and Laundry Services
Our 4 housekeeping staff will do cleaning on a daily basis and
laundry duties will be done by our
staff twice a week for our residents. Our goal is for our
residents to relax and not worry about
any chores because that is why we are there for. We have brand
new washers and dryers
machines.
Swimming Pool, Pool Patio Furniture and Sauna
Vic Spanish Riviera includes a pool to provide a healthy and
fun facility service to our residents
who enjoy doing exercise in the pool water. We have also bough
new Patio Furniture where
residents can sit and relax in the shadows of the umbrellas.
Furthermore, residents can choose to
enter our sauna room to relax while reading a newspaper.
Computer Room and Game and Recreation Equipment
We have 12 computers equipped with furniture in the computer
room for our residents to
navigate and socialize on the web, perhaps talk to friends who
are far away. In addition we also
have pool and ping pong tables, dominos, chess and bingo for
our residents to play at anytime.
Activities and Mini Bus
Daily activities are arranged by Vic Spanish Riviera’s activity
coordinator. These include arts
and crafts, games, bingo nights, daily exercises, cooking classes
and a book club. Also our
activity coordinator will schedule recreational events inside and
outside the facility for our
residents and we own a Toyota Mini Bus for 30 passengers to
transport residents to field trips,

social events or shopping. See Appendix 9 for a projected
activity sample for January 2013 at
Vic Spanish Riviera.
5 Market Analysis
5.1 Target market and customer base
Vic Spanish Riviera will be targeting elderly individuals who
want a family environment
experience with recreation activities and high quality nursing
care service in a retirement home
compound. Our target clients might be from Halifax city and the
surrounding areas.
Consumer Profile:
Man or Woman age 65 and over
Medium to Upper Income level
Active individuals who might need nursing care service
assistance with a 24 hour staff on duty
12
Individuals who do not want to or perhaps cannot care for their
own home any longer
Individuals who want to relax, live in a family and fun

environment with daily activities
Vic Spanish Riviera is targeting Halifax city because is a
growing city with a rising number of
seniors who are currently seeking for a retirement home
facility.10 The location compound that
we have chosen is close to Halifax’s downtown area and is
accessible to the surrounding cities so
that the family of the residents could be able to visit them as
they wish. Since Halifax is a city
with a sizeable influx of immigrant seniors this location is an
outstanding place to set our
retirement home facility.
5.2 Market size and potential
The number of elders in Canada is growing exponentially as the
baby boomers start to retire in
this decade. In fact the senior share of the total population is
expected to almost double from
2005 to 2026 from 4.2 million to almost 8 million.11 According
to Statistics Canada, Nova Scotia
has the highest share of seniors 65 and over by province at the
rate of 16.1% in 2011. By the year
2026 the percentage of seniors over the total population in Nova
Scotia will rise to 25.3%.12
Moreover, according to Statistics Canada it is forecasted that in
2011 the senior population will
be around 65,000 in Halifax city and around 160,000 in the
entire province of Nova Scotia.13 The
Canadian average income after tax in 2009 for elderlies was
$32,300 for males and $28,400 for
females.14
As they grow older, elders require more human contact, social
activities and immediate nursery

care. In addition, is common for elders to find the
responsibilities of maintaining a household
overwhelming after reaching a certain age. In Halifax city and
well as the rest of Canada, there is
a current shortage in the number of nursing and retirement
homes to receive the growing influx
number of seniors. According to Statistics Canada the current
waiting time for residents in
Halifax city is around 1.5 years and after doing extensive
research we have found out that some
of our competitors in Halifax have a two year waiting list for
seniors wanting to join their
facility.15
The following graphs show the current senior population in
share percentages and in numbers by
province in Canada. The graphs also show their growing
potential up to the years 2026 and 2031.

10
http://www.nsarda.ca/images/populationforum/2011/PopForum
2011_FinalReport_standardres.pdf
11
http://www.gov.ns.ca/seniors/pub/StatProfile05.pdf
12
‐x2006001-‐eng.pdf
13
http://www.chsrf.ca/Libraries/Aging_roundtable_reports/CHSR
F_Halifax_Roundtable-‐Web.sflb.ashx
14
http://www40.statcan.ca/l01/cst01/famil21a-‐eng.htm
15

‐x2006001-‐eng.pdf
13
14
5.3 Expected Sales and Market Share
Our expected number of clients at Vic Spanish Riviera
forecasted in this growing industry is up
to our maximum capacity at the number of 50 clients. Certainly,
after carefully studying all the
factors and assessing the current shortage of retirement homes
that provide high quality nursing
care service with a family experience with recreational
activities we are convinced that our
capacity will be fulfill when opening the facility.
With the growing number of new seniors throughout the

following years our market share will
be small. Although there is a huge advantage of opening more
facilities to cater the new influx of
potential clients seeking for a retirement home in the future.
6 Competition Analysis
The main competitors of Vic Spanish Riviera that we have
identified in the retirement home
industry in Halifax city are the following four companies:
6.1 Core Competitors
Shannex
With locations in Halifax, Dartmouth and Truro, Shannex is one
of the most successful
retirement resident facilities available for seniors. It has a
membership with Accreditation
Canada since 2007, a not for profit group that sets quality
standards for service performance. In
the facility in Halifax, Shannex provides a Traditional
Retirement Living Suite that provides two
meals per day, laundry and housekeeping services and a staff
presence 24 hours a day. Also,
organized recreational activities are scheduled regularly and
personal assistance and medication
management are provided. The Halifax residence at Parkland
Living has 154 rooms and the
monthly price for a suite that has all the added benefits is
between the ranges from $4,000 to
$4,455 depending on the size of the unit and the amount of
personal assisted care needed.16
The Berkeley
The company has residences in Halifax, Dartmouth, Bedford

and Gladstone Ridge. The Berkeley
is an approved member of ORCA (Ontario Retirement
Communities Association) which credits
quality service and excellence in customer satisfaction. The
Berkeley residence in Halifax
provides comfort and security, health care staff onsite 24 hours
a day and recreation activities
such as card clubs, exercise classes and craft and board games
among others. It also provides two
meals per day. The Berkeley residence for additional fees
provides medication administration,
personal care assistance, blood work and personal laundry
services. The facility has a total of 52

16
http://www.shannex.com/inner.php?page=142&region=18&site
=10&type=retirement
15
rooms and the monthly fee for a personal suite with all the
added benefits is $3,360 and $5,125
for a personal suite with exclusive assisted care.17
The Melville Heights
The company has an independent living facility located in
Halifax. NS. Melville Heights frees
residents from the daily chores and isolation of living alone.
The bedroom suites come with a full
kitchen where residents can make their own breakfast and lunch.
The dinner is provided by the
house in the dinning room. In addition, health care staff is on
duty 24 hours ready to provide care
and activities are organized for the residents on a regularly
basis. Melville Heights has a
whirlpool and sauna, a fully equipped room, a movie theater, a
fitness room and a library with
computers where internet classes are provided. The company

has also the Melville Heights bus
where residents are taken on scheduled outings. The facility has
a total of 101 rooms and the
monthly fee is $3,100 for a personal suite with all benefits such
as two meals a day, recreation
activities, 24 hour staff on duty, once a week housekeeping and
laundry services. However as the
residents request more assisted personalized care, they will be
charged extra on a per hour
basis.18
Northwood
With facilities in Halifax and Bedford, Northwood provides a
service called Assisted Living in
their Apartments with Retirement Living. For additional charges
Northwood Retirement Assisted
Living provides medication management and on site nurse/LPN.
It also provides three meals a
day served in their dinning room, weekly housekeeping and
laundry services. The facility in
Halifax includes a beauty salon, a fitness center, a gathering
place and a health center. However,
their building apartment facility is more for active seniors who
still can be independent and thus
do not promote too much emphasis on social and recreational
activities on a regular basis. The
facility in Halifax for Retirement Living has more than 200
rooms in 3 independent buildings.
The assisted living monthly fee of $2,050 includes three meals a
day, weekly housekeeping and
laundry services. However, any nursing or LPN calls require an
extra charge per hour of service
acquired. 19
6.2 SWOT Analysis on the Competition

Strengths
The competition has the strengths that they offer a 24 hour
nursing care on duty, enjoy an
established history throughout years of being successful in the
industry and provide most chores
for their residents thus leaving them to enjoy their living
experience with programed activities.
Another strength is that two out of our four major rivals are part
of an organized membership
association such as Accreditation Canada and ORCA. Also, our
competitors’ price is reasonable
and competitive.

17
http://www.theberkeley.com/halifax.html
18
http://www.melvilleheights.com/living-‐suites.html
19
http://www.nwood.ns.ca/ways-‐to-‐live-‐at-
‐northwood/living-‐with-‐care/halifax-‐location
16
Weaknesses
The weaknesses of the competition are that they operate on
large facilities of more than 100 suite
residences thus decreasing the quality of their personal care
service. With their large housing
there is also a lack of family feeling and environment.
Opportunities
The major opportunities for our competition is that the
increasing number of elderlies in the
Halifax area and in Canada presents a good supply of potential
future clients thus presenting
them with an opportunity to expand and open new facilities.

Also, companies can charge more
per suite as the demands increases and the waiting list rises.
Threats
The threats to the competition are new retirement home
facilities that might enter this growing
industry. Also there is always the risk that the government
decreases the pension funds thus
leaving residents with a lower income.
6.3 Competitive Advantage
After studying the competitive environment, Vic Spanish
Riviera feels that our retirement home
facility has the following advantages:
• We have a smaller number of suites of only 50 thus creating a
better family environment
and superior personal care.
• We would provide a greater ratio of nursing staff available
24/7 to provide a higher
quality and a more personalized assisted care.
• We will provide a better recreational environment for our
clients because we will have a
brand new state of the art facility with all the amenities and
activities to provide an
enhanced quality of life.
• Our schedule will have more social and recreational activities
than our main competitors.
• We will provide excellence cuisine with an emphasis on
healthy eating.

7 Marketing Plan
7.1 Mission
“To deliver outstanding quality care and service, to care about
the well being, safety and
dignity of each client, to have accountability and a committed
staff and to provide
superior recreation amenities and activities for our clients.”
7.2 Marketing Strategy
17
Vic Spanish Riviera‘s marketing strategy centers on
differentiating our quality service and living
experience from the competition and on creating and developing
a company philosophy where
our business model will be client focus driven. Our target
market are seniors 65 and over in the
middle to upper income brackets. Vic Spanish Riviera
understands clearly what the needs and
expectations of our target market are. The Marketing Mix will
seek to explain our value and
benefits that Vic Spanish Riviera will bring to our potential
customers. Certainly we want to
emphasize our competitive advantages as the key reasons why
clients should choose our
company as their best decision in a retirement home.

7.3 Service Offering
Vic Spanish Riviera will offer a private retirement home for
seniors, located on a 5 acre land
property in Halifax, Nova Scotia and will be housing 50 elder
residents. Our top quality service
with nursing care staff 24 hours a day is our key differentiator
from our main competitors. At Vic
Spanish Riviera we have built a company identity that puts
client’s satisfaction and needs as our
top priority. We will have a greater ratio of nursing care staff
than our main competitors thus
providing better personal assistance to each resident. At Vic
Spanish Riviera we also understand
that seniors want a place where they can feel like home and
have fun activities.
7.4 Marketing Mix
Pricing
Vic Spanish Riviera will use a premium price strategy. The
price charged of $4,000 per month to
its residents is slightly above most of our competitors. Thus our
target customers are medium to
upper income seniors who are price insensitive when choosing
their retirement home. Certainly,
Vic Spanish Riviera wants our clients to understand that at our
facility they will receive a greater
personalized care, family experience with fun activities and
quality service than our competitors.
In addition, customers will associate the price higher as an
indicator of excellence in quality and
service offered.

By charging a premium price Vic Spanish Riviera will seek to
differentiate itself from our top
competitors as well as create a greater IRR for our investors. At
full capacity the yearly revenues
will allow us to recuperate the initial funds invested at around
only 5 years. Overall, our 5 acre
facility with a state of the art building, amenities and services
provided make our price proposal
competitive and reasonable in the retirement home market.
Place
Vic Spanish Riviera will be located in a 5 acre land in Halifax,
Nova Scotia. Most of our target
potential customers are from Halifax city, although many are
from the surrounding towns in the
province where at this time the senior share over the total
population is at 16.1% in Nova
18
Scotia.20 This is the highest among all provinces in Canada. In
addition our residents will pay us
once a month, usually before the fifth day of each month. Either
though a credit card, debit card,
check or cash and their principal relative can also make the
payments for them after they sign
their names in the contract. For the two quarters prior to
opening our facility, we will hire two
sales persons who will be in charge of reaching potential clients

and sign them up with our
service. Sales persons will earn up to $6,000 in commissions.
Promotion
Promotion at Vic Spanish Riviera will not be very extensive
since there is a high demand in the
province for retirement homes. In fact, many retirement homes
have a waiting list and the trend
is going to exponentially increase as more seniors start looking
for retirement places in this
decade. Vic Spanish Riviera will apply advertisement in the
Halifax Daily News and The
Chronicle Herald newspapers for the last 2 quarters prior to
opening since our research shows
that a great percentage of residents read one of those two major
newspapers thus making this a
viable and effective way to get our name in the market at a
relatively low price. Marketing costs
have been set at $1,800 ($75 per week for 24 weeks) for the
Halifax Daily News and $2,040 ($85
per week for 24 weeks) for The Chronicle Herald. Our company
information will also be listed
in the yellow pages book. Vic Spanish Riviera will also employ
radio advertisement for the six
months prior to the grand opening at the estimated cost of
$4,000.
Also, 2 quarters prior to opening Vic Spanish Riviera will
perform publicity by forming alliances
with local hospitals, clinics, therapy centers and senior
community associations and thus,
promote our services and benefits. Certainly by using special
events in the Hospitals and having
senior community involvement we will achieve to reach a
bigger potential target market and

build our brand recognition. Our company website at
www.vicspanishriviera.com will also
inform our potential clients about our facility amenities and
services. Here potential clients will
be able to see our facility rooms by pictures and videos as well
as read our major benefits and all
the recreational facilities and activities that we provide. The
website will be developed around 7
months prior to opening the store at a projected cost of $12,000.
Direct marketing will also be employ as any other start up
business that wants to enter a new
market. Vic Spanish Riviera will design and print flyers,
business cards and company brochures
to add another means of marketing promotion. We will send our
flyers to potential client’s home
addresses and place our brochures and flyers in strategic places
that seniors often frequent so that
they can read our brochures and thus call us if they are
interested in finding more about our
company. Word of mouth will be another means of building our
recognition since current clients

20
‐x2006001-‐eng.pdf
19
will be able to tell their friends about the outstanding service
and activities that we provide at Vic
Spanish Riviera.
7.5 Marketing Tactics and Budget
Our marketing mix will effectively inform potential customers
about our company service value

proposal and benefits. Our goal is to have all the 50 rooms full
prior to opening the facility.
Through our marketing strategy employ we are confident that
Vic Spanish Riviera will be able to
meet this goal. Moreover, there is a rising demand of retirement
homes in Halifax city and a
shortage of current facilities thus increasing our success
percentage of meeting our initial goal.
After the opening of the facility we will focus on positioning
our company with advertising in
the radio and in maintaining public relations with hospitals,
therapy centers and seniors
associations. Another major goal that we want to achieve is to
build and maintain a waiting list
of seniors who have contacted us and thus will be waiting for an
open spot to take our services.
By this way Vic Spanish Riviera will assure the full capacity of
its 50 resident rooms per time
and build a cushion in case instances when few clients decide to
leave us.
Our total marketing cost prior to opening the facility will be
$18,840. $3,840 in Advertising in
local newspapers and $4,000 in local radio. $5000 in direct
marketing and $6,000 in sales
commissions. In addition, we are investing $12,000 in a
company website which is assessed as a
fixed asset and not as a marketing expense. After that we plan
to invest around $12,000 per year
in marketing cost with the purpose of building brand
recognition in the province and in not only
maximizing our 50 resident capacity but in creating a waiting
list of seniors seeking to join our
facility.
Marketing Expense $ Budget Start Date End Date

Develop company website. $12,000 06/01/2012 Continuously
Perform Advertising in the Halifax Daily News
and The Chronicle Herald newspapers
$3,840 07/01/2012 12/31/2012
Local Radio Advertising $4,000 07/01/2012 12/31/2012
Perform Direct Marketing by mail (business
brochures and flyers) and in strategic locations.
$5,000 07/01/2012 12/31/2012
Hire two sales people who will be in charge of
reaching potential clients and sign them up with
our company.
Commissions
Up to $6,000
07/01/2012 12/31/2012
Achieve Publicity and Public Relations by
forming alliances with hospitals and senior
citizens associations.
---------------- 07/01/2012 Continuously
8 Development Plan
20

In order for Vic Spanish Riviera to start operations, certainly
there are certain elemental steps
that must be first approved or implemented. The investment
funds must be approved and
available to start the development phase. In the location and
facility factor, the site must be
approved and purchased and then the construction facility built.
A provincial license, building
permit, commercial permit and entrance permit must be
acquired. The building facility must be
finished thus meeting the required safety and legal guidelines.
In addition, insurance for liability,
theft, fire, crime and commercial general must be purchased
prior to open business operations.
Two quarters prior to opening the facility, Vic Spanish Riviera
must execute advertisement in the
Halifax Daily News and The Chronicle Herald newspapers. We
would also do direct marketing
by sending our flyers by mail to potential clients and will
perform radio advertisement as well.
Also, we will start to do publicity by forming alliances with
local hospitals and senior
community associations thus promoting our services and
benefits. Another major element for the
two quarters prior to opening our facility, will be to hire two
sales persons that will be in charge
of reaching potential clients and sign them up with our service.
He or she will get a commission
per each client that joins Vic Spanish Riviera.
Staff personal must be hired after an intensive selection process
by the partners. Moreover, Vic
Spanish Riviera must find and approve contracts to our different
suppliers of food provisions for

our chefs to prepare daily fresh meals. All required furniture
and equipment must also be
acquired prior to opening the retirement home facility. Also the
company website must be
developed to start marketing our business in the web and an IT
Software Program must be
purchased to integrate our company computers thus raising
productivity and allowing us to reach
clients’ previous medical records.
Here is greater detailed information of the start up costs needed
to open Vic Spanish Riviera
retirement home.
Land
After spending several months searching for a convenient
location, we found a five acre terrain
in the suburbs of Halifax City for $800,000. The land in the
beginning was appraised for more by
the real estate entity but we were successful on lowering and
thus agreeing at that final sale price.
Facility Construction and Fixed Assets Built
According to the Perry’s construction company the building
construction project with all labor,
permits and material included is projected to cost around
$2,400,000. We have consulted and
reviewed different construction companies in the Atlantic
Canada area and have decided to
choose Perry’s because it brings more years of expertise,
reliability on the time frame agreed,
offer price competitiveness and quality.21 After acquiring the
rights for the property area our
company building will be constructed with all the necessary
lodging amenities, activity and
dining areas as well as suite and office rooms. In addition, a

pool will also be constructed to

21
http://www.perrysconstruction.com/
21

provide a healthy and fun facility service to our residents who
enjoy doing exercise in the pool
water. The pool will cost $25,000. Vic Spanish Riviera will also
build a sauna room to provide a
comfort, relax and luxury environment for our residents at a
cost of $10,000. Also for accounting
purposes we have assigned the Building Compound, Pool and
Sauna as 20 Years of depreciation
life time.
Company Set Up and Initiation Legal Fees
Vic Spanish Riviera will incur legal fees for corporation set up
fees and legal consulting fee on
company shares provided to capital investors. Ernst and Young
will provide the legal and
accounting services needed to set up and start the business and
share issued at a cost of $5,000.22
Provincial License and Commercial Building Permit
In order to operate the business a provincial business license
from Nova Scotia is needed at a
cost of $600 and a Municipal License from Halifax city at a cost
of $100.23 In addition, a
building permit and a commercial building will be purchased at
a cost of $1300.24 An entrance
permit is also needed at a cost of $600 and Septic Bed Permit at
a cost of $400. The total cost for
licenses and permits needed is $3,000.
Fixed Assets Purchased
Vic Spanish Riviera will purchase required Transportation
Vehicle, Furniture and Equipment to
start the business always with the goal of providing clients with

the best amenities and top
comfort and quality facility environment.
*A Mini Bus for 30 passengers will be purchased one month
prior to the Grand Opening to
transport residents to field trips, social events or shopping.
After doing price comparison we have
decided to buy a new Toyota Mini Bus for 30 passengers at a
cost of $70,000.
*An IT Software Program is needed as well to operate our
business and has an expected cost of
$11,000 and is projected to be acquired two months prior to the
Grand Opening. The IT Software
Program will be the key system that will unite our company
resources, data, residents past
medical record, human resources, financial and staff
information and other required data to
increase the business productivity and management capabilities.
*In addition, a website will be developed by an engineer from
India 6 months prior to the Grand
Opening at a projected cost of $12,000. The website is
fundamental in informing about our
service proposal, values, benefits and vision to potential clients
on the web as well as showing
our pictures and videos. The website
www.vicspanishriviera.com will bring formal assurance
about our company service and values to our potential clients
and will also seek to encourage
them to contact us to find more about our services.

22
http://www.gov.ns.ca/snsmr/paal/rjs/paal265.asp#price
23
http://www.gov.ns.ca/snsmr/paal/health/paal454.asp
24
http://www.gov.ns.ca/snsmr/paal/lae/paal239.asp
22

Also we would purchase the following required furniture and
equipment two and a half months
prior to the Grand Opening:
*Office Furniture: 6 Office Desk, 6 Chairs and 6 Lamps.
*Office Equipment: 4 Computers and 1 Printer-Scanner and
Fax.
*Suite’s Furniture: 100 Night Tables, 50 Queen Bed, 50 Sofas,
50 Chairs and 50 Lamp.
*Suite Equipment: 50 Bathroom Safety Handrails and 50
Electric Communicator Devices.
*Telephone: 60 Cordless Phones and a Telephone System
Integrator for the Building.
*Dinning Room Furniture: 6 Dinning Table Sets, 2 Furniture
Cabinets and Dinning Dinnerware.
*Living and Activity Room Furniture: 4 Coach Furniture, 12
Sofas, 4 Game Tables, 4 Coffee
Tables, 8 Side Tables and 25 Chairs.
*Entertainment Electric Equipment: 5 Plasma TV 60 inches, 5
DVD Player and 3 Home Stereo
System.
*Laundry Appliance Equipment: 4 Washers and 5 Dryer
Machines.
*Kitchen Furniture: 8 Cabinets, 3 Compartment Sinks,
Kitchenware, 1 6x8ft Freezer, 3 Counters
and 4 Kitchen Shelf Sets.
*Kitchen Appliance Equipment: 3Refrigator, 3Stoves, 5
Microwaves, 2 Dishwashers, 2 Coffee
Makers, 2 Milk Shake Machines, 3 Extractor Hood and Filters,
2 Blenders and 3 Toasters.
*Computer Room Equipment: 12 Computers and 1 Printer-
Scanner.
*Computer Room Furniture: 12 Desks and 12 Chairs.

*Medical Equipment: Hemoglobin, Glucose and Cholesterol
Test Machines, Vital Signs, Blood
Pressure and Defibrillator Monitors, Wheelchairs, Safety
Benches, Shower Chair, Audiometer,
Spirometer, Speculum, First Aid Kit, and any other required
equipment.
*Fitness Equipment: Cardio Machines, Resistance and Muscle
Builder High Performance
Machines, Dumbbells Sets, Gym Exercise Balls and Exercise
Mats.
*Game Recreation Equipment: 4 Pool Tables, 8 Wood Chess
and Chinese Checkers Board
Games, 3 Ping Pong Tables, 8 Domino Sets, 2 Bingo Set Game
and 3 Poker Game Table.
*Piano: 1 Piano
*Outdoor Bicycle and Equip: 15 Bicycles and 15 Safety
Helmets.
*Pool Patio Furniture: 10 Lounges, 5 Chair and Table Sets, 1
BBQ Grill, 10 Folding Pool Chair
and 5 Pool Umbrellas.
*Art and Deco: 12 Art Painting Frames, 3 Art Statues, 6 Rugs
and Antique Object Decoration.
Following is a list for each category of fixed assets with its
total cost and depreciated time value
for accounting purposes.
Fixed Asset Acquired Total Cost Depreciation
Years
Pool $25,000 20 Yr.
Sauna $10,000 20 Yr.
Mini Bus $70,000 10 Yr.
Website $12,000 5 Yr.

23
IT Software Program $11,000 5 Yr.
Office Furniture $2,580 5 Yr.
Office Equipment $3,600 5 Yr.
Suite Furniture $60,000 5 Yr.
Suite Equipment $24,000 10 Yr.
Telephone ( System and Phones) $46,000 10 Yr.
Dinning Room Furniture $24,600 5 Yr.
Living and Activity Room Furniture $19,970 5 Yr.
Entertaining Electric Equip $7,800 5 Yr.
Piano $2,000 5 Yr.
Laundry Electric Appliance Equip $5,000 5 Yr.
Kitchen Electric Appliance Equip $18,600 5 Yr.
Kitchen Furniture $15,600 5 Yr.
Computer Room Equipment $8,600 5 Yr.
Computer Room Furniture $3,600 5 Yr.
Medical Equipment $42,000 5 Yr.
Fitness Equipment $20,700 10 Yr.
Game Recreation Equipment $9,000 10 Yr.
Outdoor Bicycle and Equip $3,120 10 Yr.
Pool Patio Furniture $4,850 10 Yr.
Art and Deco $18,000 10 Yr.
Marketing in the Development Stage
Like it’s mentioned in the Marketing Plan, two quarters prior to
opening the business Vic
Spanish Riviera will perform several marketing strategies to
reach our potential clients in an
efficient and effective way. Advertising ads in local newspapers
will be purchased. The Halifax

Daily News newspaper will have a cost of $1,800 ($75 per week
for 24 weeks) and The
Chronicle Herald’s cost is $2,040 ($85 per week for 24 weeks).
Local Radio advertisement will
be also employed at a cost of $4,000. Flyers will be ordered,
printed and sent by mail to Halifax
residents or placed in strategic places in the surrounding area at
an expected cost of $5,000. Vic
Spanish Riviera will perform Publicity by establishing alliances
with local hospitals, clinics,
therapy centers and senior community associations. Another
strategy employ will be to hire 2
sales people and paid them commission if they sign a client.
The budget for commission is up to
$6,000 and the total development cost for marketing is $18,840.
Hiring, Selection and Training of Staff
Around 3 months prior to opening the facility Vic Spanish
Riviera will start the interviewing
process for 2 LPN(Licensed Practical Nurses), 3 RA
(Restorative Nursing Aide), 1 Activity
Coordinator, 2 Chefs, 4 Housekeeping personnel, 1 Personal
Trainer, 1 Maintenance Person and
1 Dietician. We would select the best staff members from a
large pool of valuable applicants.
Our personnel strategy will include modern management
techniques to select, hire and motivate
employees. After having our staff vacancies filled we would
train our new hired staff through an
24

intensive 2 weeks session. The training session around
December 2012 (less than 1 month prior
to open) will be conducted by human resource professionals and
their mission will seek to
enhance customer and quality service, productivity, motivation
and teamwork skills. The hiring,
selection and training for our personnel staff will have a
projected total cost of $12,000.
Providers Selection for (Food Provision and Medical Supplies)
Three months prior to the Grand Opening, Vic Spanish Riviera
will start to search and select
providers for Food Provision. We would select our providers on
factors such as quality,
reliability, price and business continuity. Food provision’s
quality is essential as we want to
serve our residents with fresh made nourishments. Reliability
and price competitiveness is
important as well as will try to manage our expenses by having
reliable providers. The amount
projected to be spend in meals and snacks per day on each
resident are $12.
Vic Spanish Riviera will search and select providers for medical
supplies three months prior to
the Grand Opening. Like Food Provision providers, we would
make our selection on the basis of
reliability, quality products and price competitiveness. Is
projected that we spend $4 in medical
and nursing supplies per day on each resident.
9 Implemented Schedule
At Vic Spanish Riviera we have developed a milestone with the

estimated budget and schedule
timelines for each critical activity that is required to launch our
company.
INPLEMENTATION SCHEDULE
Milestone Start Date End Date Budget
Approval Application for Investment funds from
Venture Capitalist.
09/23/2011 12/31/2012 -------------
Setting up the Partnership Company and Legal
Documents.
09/23/2011 12/31/2012 $5,000
Land site must be acquired and construction permits
processed and approved.
11/30/2011 01/30/2012 $800,000
Construction of the building facility.
01/30/2012 08/30/2012 $2,400,000
Construction of the swimming pool
05/30/2012 06/30/2012 $25,000
Develop company website and design and print orders
for company brochures, flyers and business cards.
06/01/2012 06/30/2012 $12,000

Construction of sauna room.
06/15/2012 07/15/2012 $10,000
Perform Advertising in the Halifax Daily News and
The Chronicle Herald newspapers and local radio.
07/01/2012 12/31/2012 $7,840
Perform Direct Marketing by mail (business brochures
07/01/2012 12/31/2012 $5,000
25
and flyers) and in strategic locations.
Hire two sales people who will be in charge of
reaching potential clients and sign them up with our
company.
07/01/2012 12/31/2012 Commission
Up to $6,000
Achieve Publicity and Public Relations by forming
alliances with hospitals and senior citizens
associations.
07/01/2012 Continuously --------------
Purchase provincial license, building permit,
commercial permit and entrance permit.

09/01/2012 11/01/2012 $3,000
Buy furniture, equipment, electric appliances, fitness
machines, nursing equipment, activity equipment and
among other fixed assets.
09/15/2012 11/30/2012 $350,000
Performs Interviews, select and staff training for 2
weeks (LPN, RA, Activity Coordinator, Chefs,
Housekeeping, Maintenance person, Dietician).
10/01/2012 12/30/2012 $12,000
Selection and approval of food provision providers for
our Dinning Service.
10/01/2012 12/30/2012 $12 Daily
per Resident
Selection and approval of medical suppliers for our
nursing daily services.
10/01/2012 12/30/2012 $ 4 Daily per
Resident
Purchase of IT Software Program
11/01/2012 11/30/2012 $11,000
Purchase insurance for liability, theft, fire, crime and
commercial general.
12/01/2012 12/30/2012 $100,000

Purchase of Mini Bus for 30 Passengers
12/01/2012 12/30/2012 $70,000
Grand Opening and start Operations (50 residents will
move in to Vic Spanish Riviera)
01/01/2013 Continuously ---------------
10 Operations Plan
The following section will identify our proposed operations
plan for Vic Spanish Riviera.
10.1 General
Vic Spanish Riviera will operate 24 hours a day and throughout
the entire calendar year.
Certainly, our industry demands that we have a nursing staff
available the 24 hours of the day to
bring more personalized care assistance. In addition, we expect
to start our business operations
by January 2013.
10.2 Location and Building Facility
Vic Spanish Riviera will operate its facility on a 5 acre
compound located in the suburbs of
Halifax city. The land area has a worth value of $800,000 on the
market. At the start of
operations in January 2013 the facility will be ready with all the
rooms furnished, equipment

26
acquired and licenses and permits purchased. Vic Spanish
Riviera will have a swimming pool to
provide a healthy and relaxing way of therapy to our residents
who enjoy doing exercise in the
pool water. In addition, the facility will also include a sauna
room in our quest to provide greater
comfort and luxury service to our residents.
10.3 Furniture and Equipment
Like it is mentioned in the development stage, Vic Spanish
Riviera will include all the required
Furniture and Equipment for the daily operations of our
business.
*Suites: The residents’ suites will include all the necessary
furniture and equipment for the
comfort, safety and happiness of our residents.
*Dining Room, Living and Activity Room, Game Room and
Computer Room: All the required
furniture and equipment will be purchased prior to the opening
day to provide excellent service
amenities, hospitable and relaxing environment to our clients.
*Office: Our offices will own comfortable furniture and latest
technology equipment so that our
management and staff can achieve a greater level of
productivity and service quality.

*Kitchen Furniture and Equipment: We will boast all the
necessary kitchen furniture and
equipment so that our chefs can operate and provide our healthy
and tasty meals.
*Medical Furniture and Equipment: We would own the required
furniture and equipment to
provide outstanding nursing care service and test assessment to
our residents and thus increasing
their standard of living.
*Fitness and Outdoor Equipment: Our Goal is for our residents
to maintain a healthy life and by
having the exercise equipment we are on the path of increasing
their cardio and resistance health.
10.4 Transportation
Vic Spanish Riviera will own a brand new Toyota Mini Bus for
30 passengers worth $70,000.
The Mini Bus will be used to transport our residents to activity
field trips, malls and any other
recreation events scheduled by our activity coordinator.
10.5 Personnel
Vic Spanish Riviera will have already selected, hired and
trained our personnel staff prior to the
Grand Opening. Our personnel will be motivated and thus
reflect our corporate philosophy of
bringing top quality service and always putting the client first.
Our staff members will have the following job functions:
*2 LPN (Licensed Practical Nurses): The 2 full time LPN’s will
perform resident’s test

assessments such as recording blood pressure, heart rate,
glucose among others and report results
27
to Mr. Sodhi (RN) and founding partner. Others functions will
include administering injections,
enemas, providing therapeutic massages and keeping the
medical records of our residents.
*3 RA (Restorative Nursing Aides): The job functions of the 3
full time RA’s are to assist
patients with exercises to maintain the mobility of our residents
as well as provide with nursing
care and services according to the schedule provided by the RN.
When needed the RA will also
assist residents with daily living programs such as providing
baths, massages or any other
activity that residents requested.
*1 Activity Coordinator: The tasks of the full time activity
coordinator will include scheduling
recreational events inside and outside the facility for our
residents. These include arts and crafts,
games, bingo nights, daily exercises, cooking classes and a
book club as well as fieldtrips.
*1 Fitness Trainer: A part time Fitness Trainer will be in charge
of the cardio and muscle
resistance programs in the fitness room. The programs will
include fitness dance exercises,
bicycle class, abdominal and stretching and muscle resistance
training.
*1 Dietician: A dietician will come once a week to check the

improvement of our resident’s
fitness health and provide healthy recipes according to each
personal needs and requirements.
*2 Chefs: 2 full time chefs will prepare daily healthy and tasty
food for our residents. Once a
week also 1 chef will provide cooking classes to residents
interested in this activity.
*4 Housekeeping: 4 full time housekeeping personnel will be in
charge of the daily cleaning of
the facility, resident’s laundry chores, and assist chefs with
washing the dishes.
*1 Maintenance Person: Will come twice a week to perform
maintenance work in the facility
such as cleaning the pool, cutting the grass, fixing damage
property and any other miscellaneous
needed task.
Here is a list of the staff team positions, hours per week and
rate per hour.
Staff Position $ Rate per Hour Total Combined
Hours per Week
Total Projected Cost
per Year 1
2 LPN $22.00 80 hr. $107,078
3 RA $18.00 120 hr. $131,414
1 Dietician $20.00 8 hr. $9,734
1 Fitness Trainer $18.00 20 hr. $21,902
2 Chefs $16.00 80 hr. $77,875
1 Activity Coordinator $18.00 40 hr. $43,805
4 Housekeeping $13.00 160 hr. $126,547
1 Maintenance $12.00 16 hr. $11,681
TOTAL $530,038

In addition to salaries, an important bonus will be given to
employees at the end of the year that
will be used to reward their performance thus increasing
productivity and maintaining strong
employee commitment and motivation to attain measurable
business targets. At Vic Spanish
Riviera, our goal is for our staff team to meet or exceed our
customers' expectations.
28
10.6 Food provisions and Medical and Nursing supplies
Having already chosen our food provision and medical nursing
supplies providers prior to
opening the facility, we would focus on controlling the quality
of the supplies. We want to
provide the best nourishments available to our chefs so that they
can prepare fresh, nutritive and
delicious cuisine plates. The medical and nursing suppliers
would have to remain reliable and
price competitive otherwise we can end their contract and
change suppliers. The expected daily
cost per resident is $12 on food provision and $4 on medical
and nursing supplies.
10.7 Operating Expenses
Vic Spanish will have to incur several operational expenses to
operate the facility. From laundry,

cleaning and cooking supplies to repair and maintenance and
utilities expenses. Here is a table of
the each category of expenses with the projected monthly and
year 1 costs:
Operating Expense Monthly Cost $ Annual Cost $
Telephone $600 $7,200
Internet $500 $6,000
Utilities $2,000 $24,000
Insurance $8,333 $100,000
Office Supplies $500 $6,000
Cleaning Supplies $1,000 $12,000
Recreational Activities Supplies $1,333 $16,000
Cooking Supplies $367 $4,400
Laundry Supplies $100 $1,200
Marketing Expense $1,000 $12,000
Fieldtrip Events $1,000 $12,000
Mini Bus Gasoline Expense $1,000 $12,000
Repair and Maintenance Exp. $1,200 $14,400
TOTAL $227,200
10.8 Insurance
Vic Spanish Riviera will purchased business liability, theft,
fire, crime and commercial general
insurance. The estimated cost for this requirement is $100,000
per year.
11 Management Team
11.1 Organization Structure

29
Vic Spanish Riviera is an incorporated entity formed by the
partners Victor Palomino and
Gagandeep Sodhi. Both of the partners along the capital
investors will own shares of the
company. The organization structure at Vic Spanish Riviera will
be a traditional hierarchical
structure, however we will empowered staff members to go out
of their way to make decisions
on problems solving thus meeting customers needs within a
shorter time frame.
11.2 Management Team – The Leaders
Executive Director: Victor Palomino
This position will be held by Victor Palomino, one of the
founder partners. The executive
director is in charge of the daily operations, marketing, human
resources and accounting at Vic
Spanish Riviera. Victor Palomino has 4 years of experience in
retail management at Walgreens’
in the US and 3 years as marketing director at a tourism
company in Peru. Victor Palomino has a
BA in Business Administration with a major in Finance from
Florida International University in
Miami, Florida and a MBA from the University of New
Brunswick in Saint John, NB. Mr.
Palomino qualities as a manager are of a leader, analytical,
result oriented and in fact, he has
professional success in streamlining procedures and business
profitability. Highly organized,
motivated, with a strong marketing and management

background. Mr. Palomino has played a key
role in the building of a financial feasibility study and a market
analysis to build a 3 star hotel in
a Nazca city, Peru. Mr. Palomino will earn a salary of $50,000
per year.
Director of Nursing: Gangadeep Sodhi
Gangadeep Sodhi, a RN and the second founder partner member,
will be in charge of the health
care service, supervise the LPNs and RAs and thus ensure that
residents get top quality care at
Vic Spanish Riviera. Mr. Sodhi will graduate from the nursing
school at the University of New
Brunswick in December 2011. He comes from parents with a
medical practice background. His
father, Mr. Sanjeev Sodhi is a neurosurgeon at Vancouver
General Hospital and his mother is a
RN over 20 years in experience. In addition his uncle Mr. Raj
Gupta has been a director of a
Nursing Home in Vancouver, BC and has owned two nursing
homes in his native India. Mr.
Gangadeep Sodhi loves to help sick and needy people, and has
three year experience as a RA in
Heaven Sunrise Nursing Home in Vancouver, BC during his
summer studies recess at UNB. He
possesses management and leadership qualities and has the
determination on bringing
outstanding nursing care service at Vic Spanish Riviera. He is
passionate in the medical field
with strong problem solving, communication and
entrepreneurial skills. Mr. Gangadeep Sodhi
will earn a salary of $50,000 per year.
11.3 Board of Advisors
Raj Gupta

30
Mr. Raj Gupta is the uncle and mentor of Mr. Gangadeep Sodhi
and has been the executive
director of Heaven Sunrise Nursing Home in Vancouver, BC.
Mr. Raj Gupta is a recognized
businessman who currently owns a Motel in the US, four Burger
King Restaurants in BC and has
owned successfully in the past two nursing homes in Florida,
US. Mr. Gupta holds a BA in
Industrial Engineering from New Delhi Institute of Technology
and a MBA from Simon Frasier
University in BC.
Sanjeev Sodhi
Mr. Sanjeev Sodhi is a neurosurgeon at Vancouver General
Hospital. He holds over 20 years of
experience in the medical field. Mr. Sanjeev Sodhi has always
encouraged his son to open his
own business and will satisfactorily be a member of the board
of advisors at Vic Spanish Riviera.
Mr. Sodhi holds a MD degree from University of British
Columbia.
12 Risk and Mitigation Factors
12.1 Assumptions
The Business Plan at Vic Spanish Riviera is based on the

following assumptions:
* Able to acquire all the construction and building permits and
commercial licenses.
* Able to obtain all required financing.
12.2 Risk and Mitigation Factors
Our management team is responsible for constantly evaluating
risks and taking corrective actions
to provide adequate control and prevention measures. At Vic
Spanish Riviera, we have identified
the top 5 risks associated with our business project and have
thus developed efficient and
effective mitigation factors for each potential risk.
1 New Competition
The risk of new competition is high in the Halifax area as new
entities can seek to enter this
growing market. The risk impact will depend on how
differentiated the new entrants’ services
are from our service. Vic Spanish Riviera will develop a
continuous improvement management
strategy to elevate the level of care and recreational service that
we provide to achieve a high
degree of customer satisfaction and loyalty. Our goal is to
differentiate from our current and
future competitors by providing an enhanced and superior
quality service. Our higher ratio of
motivated nurse staff, a state of the art facility and the coolest
activities that we organize will
gives us a competitive advantage to potential entrants.
2 Change of Government funded pension plans and laws

31
There is always the risk that the Government of Canada will
decrease the senior’s pension funds
or change the laws thus reducing the amounts that our clients
are willing to spend on luxury
retirement homes. To minimize this risk we are catering our
services towards the upper medium
and higher income levels that are in a better position to
withstand any negative changes in their
government funds. Our target niche market has income from
investments funds, bank accounts
and from selling their homes so they are capable to manage and
pay our monthly fees even if
government policy changes regarding pension funds.
3 Liability Incident
Another major risk to our company is that a safety incident
could happen inside our facilities and
thus the resident might decide to sue us. To minimize this risk,
we are taking operational
measures to ensure the safety of our residents and staff
members by establishing guidelines and
by training our employees to follow these rules and to be on the
look out if any our residents
have any issues that might require attendance within a quick
time frame to prevent any major
incidents. Vic Spanish Riviera also will purchase a liability
insurance thus protecting our
company in the instance that a major incident happened.
Another way to minimize this risk is to
install safety equipment such as handrails in the suite‘s
bathrooms and an emergency electronic

communicator in every residents’ suite to press it if they need
any assistance.
4 Hiring and maintaining quality employee staff
Another risk that we might encounter is hiring quality staff that
is committed and able to provide
top quality care and maintain their loyalty. In the Halifax area,
there are a many skilled LPN’s
and RA’s, chefs and activity coordinators and thus we will be
able to select the best candidates
from a large number of valuable applicants. To tackle the risk,
our personal strategy at Vic
Spanish Riviera includes modern management techniques that
will be applied to select, hire,
motivate and reward employees. We will offer competent hourly
wages, and an end of the year
bonus according to their performance. We will also
communicate and share our company goals
and objectives with our employees thus increasing their
motivation, loyalty and productivity.
5 Economy Recession
With all the current financial problems and economic recession
occurring in the US is highly
probable that it will impact the investment funds of elders here
in Canada. If the US recession
spreads and initiates an economic recession in Canada our
potential clients can be vulnerable and
in turn be more picky and thoughtful when choosing a
retirement home to live in. The value of
their investment funds can inversely fluctuate and their values
of their home can decrease at the
time they are seeking to sell them to move to a retirement home.
To mitigate this risk, at Vic
Spanish Riviera we are positioning as a high end provider and
attract the higher income seniors

who can withstand a potential Canadian economic recession. In
addition, we want to maintain a
client waiting list that will be waiting for a place in our facility
thus always assuring the 50
32
residents full capacity at Vic Spanish Riviera. Also, we are
performing a sensibility analysis to
better access and react to potential economic problems that
might affect our revenue.
13 Financial Plan
Vic Spanish Riviera expects to maintain a healthy financial
position over the next five years. As
it can be seen in our financial statements we will start making
profits from the first operating
year. The following plan outlines the financial development of
our company. Our Startup cost
will be $4 million dollars and our capital structure will be
financed 70% from debt by bank loans
and 30% from equity by investors. The source of paying the
debt loans will be by the cash flow
generated from operations. The following chart shows our
profits for the first five years.

13.1 Projected Income Statement
We expect to be profitable in the first year of operations, with
profits increasing as the interest
payments of our debt goes down in the next four years.
Operating at a full capacity of 50
residents Vic Spanish Riviera will have profits of $611,751 in
the first year. In addition, an
income tax rate will be applied of 27% to our earnings, as Vic
Spanish Riviera is incorporated
and therefore it falls in this corporate tax category. See
Appendix 1 table that will show in detail
our projected Income Statement for five years. The following
chart is a preview of our revenue,
expenses and profits for five years.
$0
$100,000
$200,000
$300,000
$400,000
$500,000

$600,000
$700,000
$800,000
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
Yearly
Profits
Profits
33

13.2 Projected Balance Sheet
We expect to have a healthy financial position and will not
encounter any real problems meeting
our debt obligations and meeting our objectives. The declining
balance method of depreciation is
used for all our assets. Vic Spanish Riviera will also pay
dividends to the shareholders. The table
in Appendix 2 will show our projected balance sheet for five
years.
13.3 Projected Cash Flow
At Vic Spanish Riviera we understand that cash flow
deficiencies is a real concern for many
companies that is why we will have sufficient cash on hand to
meet our payment obligations and
thus be prepared for any unexpected needs of cash. In Appendix
3, our projected Cash Flow
Statement table shows our cash flow for the first year at
$532,678 and how we focus on
maintaining $40,000 in cash reserves for operations and
contingences. The following chart is a
preview of our cash flows for five years.
$0
$500,000

$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
Financials
Revenue

Variable
Exp
Fixed
Exp
Net
Profit
34
13.4 Debt Schedule
Our Debt Schedule chart shows that we will pay our debt of
$2,800,000 within 5 years at the rate
of 10% that is the current capital market rate that banks are
willing to lend for. For five years, we
would make principal payments of $560,000. In the first year an
interest payment for $224,000
will be made and by the fifth year our interest payment and debt
ending balance will be 0 as our
debt becomes fully repaid. See Appendix 4 for our Debt
Schedule at Vic Spanish Riviera.
13.5 Capital Structure
All of Vic Spanish Riviera’s assets will be depreciated on a
declining balance method. The
building, pool and sauna facility will be depreciated on a 20

years basis. Others assets will be
depreciated for accounting purposes according to their life
market value usage either on a 5 or 10
year basis. The Appendix 5 shows our Capital Schedule for 5,
10 and 20 years depreciation
assets. The following table indicates which assets are
categorized on 5 years and on a 10 years
life depreciation basis:
5 Year Depreciation Value 10 Year Depreciation Value
Suite Furniture Suite Equipment
Office Furniture and Office Equipment Telephone System
Computer Room Furniture and Equipment Fitness Equipment
Dining Room Furniture Game Recreation Equipment
Living and Activity Room Furniture Outdoor Bicycle and Equip
Piano and Enter. Electric Equipment Pool Patio Furniture
Kitchen Furniture and Electric Appliance Equip Art and Decor
Laundry Appliance Equip Mini Bus
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Year

2013
Year
2014
Year
2015
Year
2016
Year
2017
Cash
Flow
Cash
Flow
35

Website and IT Software Program
Medical Equipment
13.6 Break-Even Analysis
Vic Spanish Riviera’s Break-Even Analysis indicates that about
30 residents are needed to break
even in the first year in our facility. Certainly, due to the high
demand for retirement homes and
the current long waiting lists for retirement homes in Halifax
city we expect to operate at the full
capacity of 50 residents and easily reach and maintain
profitability. We are assuming annual
fixed costs for year 1 of $1,269,985 composed of operating
expenses, depreciation and interest
payments. In addition, the analysis will assess variable expenses
cost such as food provision and
medical and laboratory supplies that are directly related to the
number of residents living in our
facilities. See table in Appendix 6 to evaluate how lower
number of residents will affect our
profitability in our Break-Even Analysis.
13.7 Potential Return to Investors: IRR, NPV and Payback
Period.
IRR (Internal Rate of Return)
According to our conservative estimates, after assessing an
initial capital investment of

$1,200,000 and adding our cash flows for the next 5 years lead
us to achieve an IRR of 15.9%.
The level of 15.9% measures the estimated performance of the
capital investment and highlights
the potential return on the cash flows.
Year 1 Year 2 Year 3 Year 4 Year 5
($500,000)
($400,000)
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000

$400,000
$500,000
20
22
24
26
28
30
32
34

36
38
40
Break-‐Even
Analysis
-‐
Residents
36
Initial
Investment
($1,200,000)
Cash Flows
$532,678

$260,979
$296,137
$328,487
$363,540
IRR = 15.9%
NPV (Net Present Value)
The NPV evaluates our capital investment by discounting at
12% rate its future cash to their
present value and subtracting the initial investment of
$1,200,000. Vic Spanish Riviera will
realize a projected NPV of $238,054.
If the lending rate on debt goes up to 12% thus attaining an
outstanding performance on our potential cash flow returns.
12% Discount Rate Cash Flow
Year 1 $532,678
Year 2 $260,979
Year 3 $296,137
Year 4 $328,487
Year 5 $363,540

Initial Investment ($1,200,000)
Total $581,822
NPV $238,054
Payback Period
The Minimum time to recover the investment for the investor’s
initial contribution of $1,200,000
is short, only 3.34 years or 3 years and 4 months, computed as
follows:
Initial Investment ($1,200,000)
Less Projected Cash Flow
Year 1 $532,678
Year 2 $260,979
Year 3 $296,137
Year 4 (33.55% of $328,487) $110,206
Payback Period 3.34 Years or
3 Years and 4 Months
0
14 Sensitivity Analysis and Mitigation Strategies
At Vic Spanish Riviera we have build 5 sensitivity analysis case
scenarios seeking to access
better any potential inaccurate forecasting calculations and risks
that can negatively affect our
37

profits, cash flows, IRR and NPV, therefore our investors’
investment returns. After having
successfully build our financial statements we will concentrate
on lesser than expected scenarios
such as on monthly fees paid by residents and the number of
residents that joined our facility. In
addition, we will access what happens if the startup costs turn
to be greater than projected, or if
the banks increase our borrowing debt rate and if the operating
expenses increases more than
forecasted.
Case Scenario 1:
If the Price that customers are willing to pay goes down to
$3,800 per month?
Vic Spanish Riviera is very sensitive to changes in the monthly
fees because of our expenses to
provide quality amenities and services. Although our profits and
cash flows remain positive our
NPV is negative and the IRR decreases from 15.9% to 4.2%
now. For the IRR to be at 0, the
minimum monthly price charged will be $3,735.
Profit $524,151 $548,632 $582,790 $615,940 $649,394
Cash Flow $445,078 $173,379 $208,537 $240,887 $275,940
Break Even 32
5 Yr. IRR 4.20%
5 Yr. NPV
(12%)
($77,724)

Risk Mitigation Measures:
*Possible mitigation factors would be on cutting on some
operating expenses such as cooking
and recreational activity supplies and marketing expenses, thus
increasing our operating income,
IRR and NPV.
*Another strategy that we can use is to pay our debt in 8 years
instead of 5 thus achieving higher
profits, cash flows, IRR and NPV.
*In addition, we might have to reduce residents' benefits hours
from nursing services and fitness
training.
Case Scenario 2:
If only 46 Residents join our facility?
A lower number of residents in our facility have a strong impact
in our capital investors' returns.
As it can be seen a change of 4 residents brings our IRR from
15.9% to 0. Also our NVP gets a
harsh hit thus now being negative. In addition, Vic Spanish
Riviera needs to have a least 48
residents to have a positive NPV.
Profit $488,883 $513,645 $548,004 $581,361 $615,026
38
Cash Flow $404,788 $139,209 $174,569 $207,126 $242,390
Break Even 30

5 Yr. IRR -0.91%
5 Yr. NPV
(12%)
($204,045)
*Possible strategies will be to increase our marketing expenses
and to hire sales people on
commission seeking to increase our client residents to 50 (full
capacity).
*Another measure can be to lower operating expenses and
personnel staff hours to generate
greater operating income, IRR and NPV.
*In addition, we must achieve to have a 5 client waiting list to
enter our facility at times thus
minimizing the chance of operating with less than 50.
Case Scenario 3:
If the facility construction costs rises to $2,600,000?
If the construction costs increases to $2,600,000 then we would
have to ask for more funds
($200,000) otherwise we would not have enough funds to start
operations. Our IRR decreases
from 15.9% to 10% and NPV from $238,054 to $76,885 showing
the potential impact in our
investor's returns.
Profit $596,275 $622,800 $659,002 $694,196 $729,694
Cash Flow $499,202 $229,547 $266,749 $301,143 $338,240
Break Even 30
5 Yr. IRR 9.99%

5 Yr. NPV
(12%)
$76,885
*Vic Spanish Riviera must convince and guarantee additional
investment funds from capital
investors in the case of any unexpected increase in the start up
costs.
* In addition, we must effectively assess early and throughout
the facility construction any
potential problems or behind schedule time scenarios that might
later turn into a major problem.
* We can also restructure our debt into 8 years instead of 5 to
generate a greater IRR and NPV.
Case Scenario 4:
If the Debt borrowing rate goes up to 12%?
39
If the Debt Rate increases from 10% to 12%, we would earn
slightly less profits, generate less
cash flow available and raise our break even point to 31. In
addition our IRR will decrease from
15.9% to 13.55% and our NPV from $238,054 to $172,466.

Profit $579,047 $611,704 $654,038 $695,364 $736,994
Cash Flow $499,974 $236,451 $279,785 $320,311 $363,540
Break Even 31
5 Yr. IRR 13.55%
5 Yr. NPV
(12%)
$172,466
*To prevent the banks to raise their rates we must do a better
task on lowering our perceived risk
and assuring the institutions the repayment of their debt on time
(punctual).
* In addition, we can extend the debt schedule to 8 years to
generate greater profits, cash flows,
IRR and NPV.
* Vic Spanish Riviera can also increase our equity financing
and lower our debt borrowing.
Case Scenario 5:
If daily Food Provisions cost increases to $15 per resident?
If the daily Food Provision expense increases from $12 to $15
per resident our profits and cash
flow decreases by an average of $40,000 per year. In addition
our IRR will decrease from 15.9%
to 10.54% and the NPV from $238,054 to $89,295.
Profit $571,224 $595,045 $628,528 $660,987 $693,731
Cash Flow $503,923 $217,876 $252,359 $284,017 $318,362
Break Even 31
5 Yr. IRR 10.54%
5 Yr. NPV

(12%)
$89,295
* To prevent this to happen we will work with different
suppliers thus minimizing the probability
of having a big supplier from raising their prices at anytime.
* Also we can only provide 2 meals a day with a third optional
meal at an extra charge to lower
our variable expenses and increasing operating income.
15 Long Term Development and Exit Plan
40
15.1 Long Term Development
Vic Spanish Riviera long term goal is to build an established
image of quality, family oriented
and top care service in our luxury retirement residence. We
expect that Vic Spanish Riviera will
have gained a respectable reputation in approximately 4 to 5
years. As the market for this
business is growing steadily as baby boomers start to retire
throughout Canada, Vic Spanish
Riviera will look forward to expand and open another retirement

residence compound in a strong
city that has the same characteristics such as Halifax. Certainly,
this can only be done after our
company has reached a comfortable profit position in the
Halifax area. In addition, Vic Spanish
Riviera can also license (Franchise) new residences that want to
use our brand name and offer
the same benefits and quality as our company.
15.2 Exit Plan
At Vic Spanish Riviera, we recognize that investors in our start-
up company ultimately need an
exit vehicle after a 5 year period. Our purpose is to provide the
best alternatives to protect
investor's interest, while maintaining the profitability, the
liquidity and potential growth of our
company. Here we will describe a couple of exit alternatives for
our investors to recoup their
initial investments after a 5 year period.
* IPO (Initial Public Offering): Vic Spanish Riviera can pursue
an IPO thus selling shares to
public buyers and acquire the funds to pay back our initial
investors after 5 years.
* Trade Acquisition: Selling our company to a potential rival
can be lucrative for our investors
and Vic Spanish Riviera. A potential rival might want to use our
brand reputation, assets and
business potential and leave us in a god position to negotiate a
buy out price.
* Merger: We can also merge with a major retirement home but
retain an interest in the business.
The purpose is to combine resources that will enable future
growth and allow us to generate
greater profits and funds to pay back our initial investors.

* Franchise: Another exit strategy is to franchise our business
concept to new retirement home
that want to use our brand name. This will generate potential
cash flows that will be use toward
paying back our initial investors.
* Initial Investors right of refusal of the next round of
investment: Our Initial Investors can opt
out of investing any more funds in our expansion project and in
turn demand their initial
investment back. We will use part of the next round of funds to
pay back our initial investors.
41
16 Appendix
Appendix 1
VIC SPANISH RIVIERA

INCOME STATEMENT
Year
1
Year
2
Year
3
Year
4
Year
5
Operating

Revenue
Residents
Charge
for
Services
2,400,000

2,400,000
Cost
of
service
Provided
2%
Food
Provision
Expenses

237,053
2%
Medical
Supplies
Expense

311,513
Gross
Margin
2,108,000

2,088,487
88%
88%
87%
87%
87%
Operating
Expenses

2%
Management
Salary
100000
102000
104040
106121
108243
3%
Staff
Payroll
530038
540639
540639
540639
540639
3%
Office
Supply
6000
6120
6304
6493
6687
3%
Laundry
Supply
1200
1224
1261
1299
1337

3%
Cleaning
Supply
12000
12240
12607
12985
13375
3%
Recreational
Activity
Supplies
16000
16320
16320
16320
16320
3%
Cooking
Supplies
4400
4488
4488
4488
4488

Telephone
7200
7200
7200
7200
7200
Internet
6000
6000
6000
6000
6000
3%
Utilities
24000
24720
25462
26225
27012
Insurance
100000
100000
100000
100000
100000

3%
Travel
Gasoline
Expense
12000
12360
12731
13113
13506
2%
Marketing
Expense
12000
12360
12360
12360
12360
3%
Fieldtrip
Events
12000
12360
12360
12360
12360

42
3%
Repair
and
Maintenance
14400
14832
14832
14832
14832
Total
Expenses

884,360
Operating
Income
1,250,762

27
%
Taxes
on
Earnings
226,264

272,587
Profit
$611,751
$636,232

$670,390
$703,540
$736,994
43
Appendix 2
VIC SPANISH
RIVIERA
BALANCE
SHEET
Balance Sheet
Opening
Balance

Sheet Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Cash
332,180
40,000
40,000
40,000
40,000
40,000
A/R
-

Property Equipment
and Furniture
432,820
432,820
437,820
442,820
450,820
458,820
less Depreciation
-
66,997
134,994
203,991
275,188

347,985
Property Building
2,435,000
2,435,000
2,435,000
2,435,000
2,435,000
2,435,000
less Depreciation
-
121,750
243,500
365,250

487,000
608,750
Net Property and
Equipment
2,867,820
2,679,073
2,494,326
2,308,579
2,123,632
1,937,085
Land
800,000
800,000
800,000

800,000
800,000
800,000
Total Assets $4,000,000 $3,519,073 $3,334,326 $3,148,579
$2,963,632 $2,777,085
Liabilities
A/P
-
Debt
2,800,000

2,240,000
1,680,000
1,120,000
560,000
-
Owners Equity
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000
1,200,000

Retained Earnings
-
611,751
1,247,983
1,918,373
2,621,913
3,358,907
Dividends to
Shareholders
(532,678)
(793,657)
(1,089,794)
(1,418,282)

(1,781,822)
Total Liabilities &
Equity $4,000,000 $3,519,073 $3,334,326 $3,148,579
$2,963,632 $2,777,085
44
Appendix 3
VIC SPANISH
RIVIERA
CASH FLOW STATEMENT
Cash Flow
Statement Year 1 Year 2 Year 3 Year 4 Year 5
Open Balance

332,180
40,000
40,000
40,000
40,000
Income
611,751
636,232
670,390
703,540
736,994

Non-Cash Items
Depreciation
188,747
189,747
190,747
192,947
194,547
Change in Working
Capital
-
-
-
-

-
(Less Debt
payments)
560,000
560,000
560,000
560,000
560,000
(Less capital
expenditures)
-
5,000
5,000

8,000
8,000
(Dividend payments) $532,678 $260,979 $296,137 $328,487
$363,540
Ending Balance $40,000 $40,000 $40,000 $40,000 $40,000
45

Appendix 4
VIC SPANISH
RIVIERA
DEBT SCHEDULE
Initial Debt $2,800,000
Interest Rate 10%
Starting Balance $2,800,000 $2,240,000 $1,680,000
$1,120,000 $560,000
Principle
Payments $560,000.07 $560,000.07 $560,000.07 $560,000.07
$560,000.07

Ending Balance $2,240,000 $1,680,000 $1,120,000 $560,000
$0
Interest Costs $224,000.03 $168,000.02 $112,000.01
$56,000.01 $0.00
Appendix 5
VIC SPANISH
RIVIERA
CAPITAL
SCHEDULE
Depreciable Life
5 years

Starting Assets
237,150
Annual Capital
Additions
-
5,000
5,000
8,000
8,000
46
Total Assets

237,150
242,150
247,150
255,150
263,150
Depreciation
47,430
47,430
47,430
47,430
47,430

1,000
1,000
1,000
1,000
1,000
1,600
1,600
1,600
1,600
1,600
Annual Depreciation
47,430

48,430
49,430
51,630
53,230
Cumulative
Depreciation
47,430
95,860
145,290
196,920
250,150
Beginning Balance
237,150

194,720
151,290
109,860
66,230
Ending Balance
189,720
146,290
101,860
58,230
13,000
Depreciable Life
10 years

Starting Assets
195,670
Annual Capital
Additions
-
-
-
-
Total Assets
195,670
195,670
195,670

195,670
195,670
Depreciation
19,567
19,567
19,567
19,567
19,567
-
-
-

-
-
-
-
-
-
-
Annual Depreciation
19,567
19,567
19,567
19,567

19,567
Cumulative
Depreciation
19,567
39,134
58,701
78,268
97,835
Beginning Balance
47
195,670 176,103 156,536 136,969 117,402
Ending Balance

176,103
156,536
136,969
117,402
97,835
Depreciable Life
20 years
Starting Assets
2,435,000
Annual Capital
Additions

-
-
-
-
Total Assets
2,435,000
2,435,000
2,435,000
2,435,000
2,435,000
Depreciation
121,750

121,750
121,750
121,750
121,750
-
-
-
-
-
-
-

-
-
-
Annual Depreciation
121,750
121,750
121,750
121,750
121,750
Cumulative
Depreciation
121,750
243,500

365,250
487,000
608,750
Beginning Balance
2,435,000
2,313,250
2,191,500
2,069,750
1,948,000
Ending Balance
2,313,250
2,191,500
2,069,750

1,948,000
1,826,250
48
Appendix 6
VIC SPANISH RIVIERA
BREAK-EVEN ANALYSIS

160,000
Yearly
Revenue
960,000

1,344,000
1,440,000
1,536,000
1,632,000

1,728,000
1,824,000
1,920,000
Expenses
Variable

1,269,985
1,269,985
1,269,985
1,269,985

1,269,985
1,269,985
1,269,985
1,269,985
Total
Expenses

1,386,785
1,398,465
1,410,145
1,421,825

1,433,505
1,445,185
1,456,865
1,468,545

1,480,225
1,491,905
1,503,585
Income
$426,785
$342,465

$258,145
$173,825
$89,505
$5,185
$79,135
$163,455
$247,775
$332,095
$416,415
49
Appendix 7
Medical Equipment Assets
Home
Oxygen
Therapy
Products
3100
3
$9,300
Back
Therapy
Massage
Couch
Bed

2500
2
$5,000
Respiratory
Medication
Nebulizers
Equip
140
3
$420
Automatic
Blood
Pressure
Monitor
180
3
$540
Cholesterol
Testing
Machine
185
3
$555
Glucose
Monitor
190
3
$570
Vital
Signs
Monitor

420
2
$840
Spirometer
95
2
$190
Speculum
65
2
$130
Penlight
55
2
$110
Hemoglobin
Test
Machine
110
2
$220
Clinic
Bed
Set
450
2
$900
Recovery
Couch
230

3
$690
Diagnostic
Station
220
2
$440
Electrocardiogram
(ECG)
Machine
and
Equip
360
1
$360
Pulse
Oximeter
140
2
$280
Audiometer
160
2
$320
Stethoscope
140
2
$280
Reflex

Hammers
and
Pinwheels
155
2
$310
Every
Day
Kit
(Scissor,
Instruments
and
Syringes)
Equip
Kit
150
3
$450
Defibrillator
Machine
and
Equip
1100
1
$1,100
Compression
Diabetic
Pump
Therapy
1800
1
$1,800

Sleep
Therapy
Equip
Device
800
4
$3,200
Blood
Test
Device
140
2
$280
Trolley,
Storage
and
Cabinet
Set
400
4
$1,600
Urine
Test
Device
145
2
$290
First
Aid
and
CPR

Kit
270
3
$810
Clinic
Blanket
Set
135
3
$405
Hot
and
Cold
Pack
50
8
$400
Clinical
Thermometer
180
4
$720
Water
Distiller
Machine
180
2
$360
Scale
90
2

$180
Wheelchair
320
5
$1,600
Walker
120
6
$720
Safety
Bench
80
60
$4,800
Toilet
Seat
Frame
45
6
$270
Shower
Chair
260
6
$1,560
Total

$42,000
50
Appendix 8
Fitness Equipment Assets
Treadmills
700
7
$4,900
Exercise
Spin
Bike
400
8
$3,200
Step
Stair
Machine
350
5
$1,750
Rowing

Machines
280
3
$840
Super
Weight
Bench
Set
700
1
$700
Multi
Lever
Bench
500
1
$500
Leg
Extension
Machine
450
2
$900
Leg
Pull
Machine
350
2
$700
Seated
Calf

Machine
250
2
$500
Bicep
and
Triceps
Corm
Arm
Machine
350
2
$700
Back
Seated
Row
Machine
450
1
$450
Let
Pull
Down
Machine
400
2
$800
3
Station
Let
Pull-‐down
and

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