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Residential Assisted Living
BUSINESS
PLAN
Here to help the old ones.
Prepared By
John Doe
(650) 359-3153
10200 Bolsa Ave, Westminster, CA, 92683
info@upmetrics.co
https://upmetrics.co
Table of Contents
Executive summary 4
Problem Definition & Validation 4
Solution 4
Objectives 5
Strategic Objectives 5
Operational Objectives 5
Mission statement 5
Keys to success 5
Financial Highlights 7
Home Aid - 3 Year Revenue Highlights 7
Chart 7
Business overview 8
Company Ownership/Legal Entity 8
Location 8
Interior Operating Facilities 9
Hours of Operation 9
Startup summary 9
Products & Services 10
Core Services 10
Live-in Care 10
Packages Offered 11
Hourly Care 11
Service Execution 12
Market Analysis 13
Market segmentation 13
Market Trends 13
Target market 14
Competitive Advantage 14
SWOT analysis 15
Strategy & implementation 17
Distribution Strategy 17
Marketing and Promotions Strategy 17
Pre-Launch Strategies 17
Launch Strategies 17
1 / 31
Post-Launch Strategies 18
Positioning Statement 18
The planned positioning of Home Aid's Market 18
Sales strategy 18
Pricing strategy 19
Operational Plan 20
Organization chart 20
Chart 20
Stacy Green 20
Jane Doe 20
Amanda Doe 20
John Doe 20
Management Team 20
Personnel Plan 21
Hiring plan 21
JANE DOE 21
AMANDA DOE 21
JOHN GREEN 22
Milestones 23
HOME AID 23
Financial plan 24
Important Assumptions 24
Brake-even Analysis 24
Projected Profit and Loss 24
Profit Yearly 26
Chart 26
Gross Margin Yearly 26
Chart 26
Projected Cash Flow 27
Projected Balance Sheet 28
Business Ratios 29
2 / 31
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[YEAR] Business Plan | Residential Assisted Living 3 / 31
Executive summary
Start Writing here...
A compassionate individual determined to bring positive change to the lives of
many; Ms. Stacy possesses a keen interest in providing home care services to
the elderly and adults with special needs who are unable to fend for
themselves. Having identified a distinct market opportunity for such services in
the USā€”where exists high standards of care that complement her principles
Problem Definition & Validation
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In the United States, it is culturally required for children to leave their parental
home and build a life outside of their nurturing homes once they reach
adulthood. While this culture significantly aids in children becoming
independent, self-reliant, and successful from an early age, the downside is
often faced by aging parents. Living alone can leave aging individuals facing
Solution
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Home Aid is founded by Ms. Stacy with her aim to enter the booming home
care market in the US. She intends to receive adequate training to understand
its standard operating procedures and domiciliary care service offeringsā€”i.e.
hourly and live-in care arrangements for the aged and disabled populace. By
optimizing and building upon the successful ā€˜tried-and-tested formula of the
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[YEAR] Business Plan | Residential Assisted Living 4 / 31
Objectives
Strategic Objectives
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To establish a home care facility to cater to South Dakota and the
surrounding vicinity in 2022
To build a reputation in the assigned territory as a high-quality, safe, and
effective domiciliary care service provider over the first five years of
operations
Operational Objectives
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To achieve and maintain at least 80% annual business efficienciesā€”i.e.
Care Worker utilization vs. availabilityā€”throughout the first five years of
operations
To develop and implement a strategic promotional campaign within the
first year of operations to expand market share, preferably to a double-
Mission statement
Start Writing here...
To make available the choice for people to remain safe and happy in their own
homes by providing first-class domiciliary care services combined with
supplying independent living equipment. We aim to be the best at what we do
while ensuring employee satisfaction and capturing the hearts of those we
serve.
Keys to success
Management Expertise
Ms Stacy has over 20 years of
management expertise in a number
of prominent companies, along with
strong traits of compassion and
hard work.
Staff Training & Development
Home Aid will accurately set and
follow the standards through
effectively training and guiding its
staff and care workers.
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[YEAR] Business Plan | Residential Assisted Living 5 / 31
Service Quality
Home Aid will be service-oriented,
and strive to provide high-quality
domiciliary care services to their
clients in every respect, exceeding
their highest expectations.
Untapped Market
Access to high quality and
affordable staff is important to
Home Aid in executing its service
mandate. The growing workforce of
South Dakota would contribute to
this.
Flexible Services
Home Aid will be prepared to
accommodate the unique needs of
its clients in s flexible manner
without compromising on quality.
Superior Customer Support
Exceptional customer service will
play a pivotal role in the success of
Home Aid as it will not only be
aligned with the company's aim to
bring a smile on its client but also
enable repeat business and
customer loyalty by ensuring that
workers are polite, friendly and
professional.
[YEAR] Business Plan | Residential Assisted Living 6 / 31
Financial Highlights
Start Writing here...
The company envisions raising an equity investment of $50,000 through long-
term borrowings, which will be used for the setup and launch of the care facility
in the US. The company expects to steadily grow its revenues through active
efforts in marketing, networking, excellent customer service, and quality
products. Meanwhile, the company will establish a healthy net profit ratio that
Home Aid - 3 Year Revenue Highlights
Financial Year Sales Gross Margin Net Profit
2021-22 360723 114289 13038
2022-23 538041 216784 44360
2023-24 665012 269869 65638
Sales Gross Margin Net Profit
2021-22 2022-23 2023-24
0
250.00k
500.00k
750.00k
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[YEAR] Business Plan | Residential Assisted Living 7 / 31
Business overview
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Home Aid expects to commence operations in July 2022 once it has acquired
the necessary licenses to operate a home care facility for the state of South
Dakota and its neighboring territories. Basing its administrative headquarters in
South Dakota, the company will offer hourly and live-in care services to the
elderly population and those with disabilities within the locale. The territory was
Company Ownership/Legal Entity
Start Writing here...
The company will be registered as a limited liability entity with the Department
of State. Further, since the company envisions setting up operations in South
Dakota, it will also register with the local county. The business will be wholly
owned and Managed by Founder Ms. Stacy Green, who will also be the
principal investor of the business.
Location
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Home Aid will begin operations for its home care facilities from South Dakota, a
state which is touted for its home care services and population of senior
citizens. Mount Rushmore State has much more to offer in terms of
advantages and benefits for a variety of businesses. It is home to big
corporations and large enterprises including Avera Health, Regional Health,
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[YEAR] Business Plan | Residential Assisted Living 8 / 31
Interior Operating Facilities
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The company will begin operations from a picturesque property in South
Dakota to set up its offices and home care facilities. Initial investments in
setting up the interior facilities, consumables, inventory, and client
entertainment space will be set up. Additions to space will be made as the
company expands operations.
Hours of Operation
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Home Aid will operate an assisted living facility in the state of South Dakota.
Office hours will be akin to corporate working hours while the facility will have
staff working 24/7 in shifts to ensure aid is available at all times of the day.
Startup summary
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The founding team will infuse a capital sum of $50,000 through long-term
borrowings to meet the companyā€™s start-up requirements. The start-up
expenses are estimated at $18,500, primarily consisting of interior renovation,
rent, and advertisement expenses. A further sum of $15,000 will be used to
purchase initial stocks, furniture, computer, and other salon equipment. Sales
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[YEAR] Business Plan | Residential Assisted Living 9 / 31
Products & Services
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Most people live independently in their own residences, but living alone is
difficult for those who are frail or have long-term care needs. They require the
help and support of other people and services. Sadly, most times, the families
of those who need assistance do not have the time to provide for their day-to-
day needs, nor do they possess the know-how of how to tackle specific
Core Services
Start Writing here...
Clients may choose from a full-time live-in arrangement (live-in care) or
additional help a few times per week (live-out care) to maintain a good quality
of life, sans the stress and upheaval of moving to a residential care home or
medical establishment.
Live-in Care
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The benefits of live-in care are visible for both clients and their families through
the successful service of the Franchisor over the years. Full-time care-at-
home service allows clients to stay in familiar and relaxed surroundings with
excellent one-on-one support. Support assistants embrace personal care,
housekeeping, and most importantly, companionship. They will live in the
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[YEAR] Business Plan | Residential Assisted Living 10 / 31
Packages Offered
24Hr Sleep-in
Includes 10 hours of full
support during the day and
sleep-in service at night
$100
ī¤½
24Hr Awake
Includes 10 hours of full
support during the day and
an awake night service (2
workers assigned on shift
basis)
$150
ī„€
10Hr Sleep-in
Sleep in service to provide
support if required. If more
than 4 hours of continuous
sleep are not achieved then
the hourly support charge is
applied for the entire shift.
$50
ī„ƒ
Hourly Care
Start writing here...
Hourly care involves care assistants visiting clients on short/temporary stays
that usually last for around 60-minutes or multiples thereof. A dedicated,
trained team of care workers will provide clients with a range of services
tailored to suit their requirements. A care plan is agreed upon in advance,
complete with services that range from assistance with carrying out simple
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[YEAR] Business Plan | Residential Assisted Living 11 / 31
Service Execution
Start Writing here...
Home Aid will aim to ensure that receiving support at home is as stress-free as
possible. The idea of someone new living in oneā€™s place of residence could
cause some apprehension; however, Home Aid will go to great lengths to
provide sufficient reassurance.
The initial part of the process is a client meeting. At this meeting, clients will
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[YEAR] Business Plan | Residential Assisted Living 12 / 31
Market Analysis
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The U.S. assisted living facility market size was valued at USD 83.2 billion in
2020 and is expected to expand at a compound annual growth rate (CAGR) of
5.3% from 2021 to 2027. The growing geriatric population and the rising
incidence of brain injuries are expected to boost the growth of the market. The
growing prevalence of target diseases and advancements in assisted living
Market segmentation
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There are approximately 28,900 assisted living communities with nearly 1
million licensed beds in the United States today. The average size of an
assisted living community is 33 licensed beds.
Market Trends
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The concept of continual care retirement communities is gaining traction
among seniors with high disposable income. These retirement communities are
known to cater to people aged 50 years and above. The idea behind these
communities is to prevent seniors from relocating when additional care is
needed. As a result, the less than 65 years segment is likely to receive a
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[YEAR] Business Plan | Residential Assisted Living 13 / 31
Target market
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It is foreseeable that by 2039, 1 in 12 people will be over the age of 80, and
several people aged 75 and above are projected to reach 9.9 million. This
naturally causes the need for more home care facilities. This growing need for
domiciliary care services puts pressure on the government for improved
healthcare and pensions. In some instances, families live away from their
Competitive Advantage
Family Atmosphere
Home Aidā€™s Staff will provide
customers a family like feel to
ensure they are comfortable and
open with the care giver. An open
communication is necessary to
ensure satisfaction as well as
accuracy of service provided.
īØ·
Trained Staff
The Home Aid staff will be adequate
trained in nursing and first aid to
ensure the clients are in
professional hands
īØ·
Reputation
Home Aid will strive to build a
reputation of becoming the best
assisted care provider in South
Dakota
īØ·
Operating Hours
Home Aid, while operating in
corporate hours, will ensure
availability 24/7 to be able to attend
to the special needs of the client.
īØ·
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[YEAR] Business Plan | Residential Assisted Living 14 / 31
SWOT analysis
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A SWOT (Strength, Weakness, Opportunity, and Threat) analysis is a useful
tool for businesses to evaluate their position in the market against the potential
internal and external factors that could assist or jeopardize their operations and
existence. A SWOT has been conducted for Home Aid and is presented
below.
Strengths
The Founder has over 20 years of
leadership and managerial experience
which would be of great assistance in
her new role.
The founder has access to sufficient
funds to maintain business operations
until stable.
Flexible/part-time/as-needed staffing
arrangements for Care Workers will
help keep fixed costs low.
Providing rigorous staff and care
worker training prior to placement
assures exceptional quality.
The low capital intensity of the
business
Monitoring systems are in place to
track work time and provide flexible
shifts accordingly for care assistants,
creating a positive working
environment.
Continuous assistance can be obtained
from the Franchisor and associated
networks.
The founder's passion for social work,
particularly the elderly and disabled.
S
Weaknesses
Home Aid would be a new business
entering an industry with existing levels
of competition.
Zero market share in the chosen
geography at the onset.
Will require continuous and somewhat
aggressive marketing and promotions
to achieve and sustain market share.
The founder has limited knowledge of
South Dakota, its people, and culture,
which could be overcome by doing the
market research, participating in
community events, and engaging with
customers through social media
W
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[YEAR] Business Plan | Residential Assisted Living 15 / 31
Opportunities
There is a general acceptance that
ā€œcare at homeā€ is better.
Further capacity expansion is possible
until peak volumes are achieved.
New markets opening constantly i.e.
support for those with learning
difficulties, childrenā€™s Services, etc.
People want to be able to stay at home
and maintain their independence for as
long as possible which means a larger
and expanding need for domiciliary
care.
Increasing costs of residential care
mean people are more likely to choose
domiciliary care services that are cost-
friendly.
Projected increase in healthcare
expenditure.
Home care providers can target clients
with private healthcare insurance.
O
Threats
Other domiciliary care service
providers in and around the area
already have an office and have
already established a clientele.
Changes in local and/or national
government policy.
Possible Competition from Residential
Care Providers.
Market saturation.
T
[YEAR] Business Plan | Residential Assisted Living 16 / 31
Strategy & implementation
Start Writing here...
Operating solely as a B2C service provider, the companyā€™s core offerings are
uniquely tailored to cater to those aged 65 and above who live in their own
homes and are unable or find it difficult to fend for themselves. The following
section proposes the use of both online and offline marketing techniques to
successfully capture the attention of prospective clients.
Distribution Strategy
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The Founder has identified the target market as elderly and/or disabled
communities living in their own residences who are unable to carry out day-to-
day activities effectively. At its inception, Home Aid would offer non-medical
services to their clients, striving to create and strengthen the brand attributes of
reliability, honesty, flexibility, and transparency. Research by Care Industry
Marketing and Promotions Strategy
Pre-Launch Strategies
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1. Putting up window stickers ā€“ ā€œopening soonā€ at the selected building
location
2. Leaflet distribution in the area, especially in communal areas
3. Online platforms and social media such as a website, blog, and LinkedIn,
particularly to reach working individuals who are unable to take care of
Launch Strategies
1. Publishing a local press release announcing arrival and start-up
2. Local press advertising via newspapers and magazines
3. Targeted customer mailshot
4. Continued leaflet distribution in both communal areas
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[YEAR] Business Plan | Residential Assisted Living 17 / 31
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Post-Launch Strategies
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1. Regular leaflet distribution in both communal areas
2. Regular advertising via newspapers, magazines, local TV stations,
posters Local PR
3. Maintaining online presence via social media, company website, blog,
and LinkedIn
Positioning Statement
The planned positioning of Home Aid's Market
Aged Individuals
Aged individuals who need help with
medication and house chores
Disabled Individuals
Assist disabled individuals in daily
tasks like dressing, eating,
exercising.
Sales strategy
Start Writing here...
According to the recent market survey, most customers discover assisted
living facilities mainly through seeing the physical outlet and word of mouth,
while a small proportion of customers find a coffee shop through social media.
The company will undertake a ā€˜pre-opening promotional campaignā€™ in
consultation with an expert to boost the visibility of the new store. Some ideas
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[YEAR] Business Plan | Residential Assisted Living 18 / 31
Pricing strategy
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The live-out service will be priced at a fixed rate of $22.00 per hour. The prices
for the live-in service will vary, depending upon the duration and type of
service. For example, a 24-hr service with sleep-in will be priced at $420.
Further, the same duration of service with an awake night will be charged at
$520. Nevertheless, the average hourly rate is estimated at $16.29 for the live-
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[YEAR] Business Plan | Residential Assisted Living 19 / 31
Operational Plan
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The team will be headed by Managing Director Ms. Stacy Green who will also
oversee the company operations. Joining Ms. Stacy in the Management Team,
the company will onboard a care manager, care coordinator, and a team of
professional caregivers.
Organization chart
Stacy Green
Managing Director
Jane Doe
Care Manager
Amanda Doe
Care Giver
John Doe
Care coordinator
Management Team
Start Writing here...
Equipped with such extensive academic and work experience in management,
branding, and marketing, Ms. Stacy would be more than capable of overseeing
and handling the business operations of Home Aid. Her excellent people skills
would guarantee healthy relationships with both clients and employees, while
her passion to make a change in the lives of specifically elderly and differently-
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[YEAR] Business Plan | Residential Assisted Living 20 / 31
Personnel Plan
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The company plans to create six full-time equivalent jobs in addition to the
management team within the first three years of operations. Salaries for each
employee are in line with the industryā€™s benchmark.
Hiring plan
Group By Department Position Filled Time of Hire Time of Start Filled On Time
Care Manager 1 of 20 10 days 121 days 100%
Care Giver 3 of 23 30 days 21 days 80%
Care Coordinator 4 of 15 158 days 127 days 0%
20
Filled
5
Hired
25
Open
JANE DOE
Care Manager- janedoe@example.com
Ability to cope with fast-paced and pressured work, accuracy, strong attention to
detail and a strong analytical mind, ability to notice patterns within statistics, an
interest in psychology and behavior, good organizational skills, excellent (spoken
and written) communication skills.
AMANDA DOE
Care Giver- amanda@example.com
Preferably bilingual with ability to speak English and French fluently, problem-
solving, ability to convert leads into sales, active listener, patience, and
understanding of the companyā€™s products and services. Additionally, skills in social
media marketing, search engine optimization, newsletter marketing, other forms of
digital marketing will also be required
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[YEAR] Business Plan | Residential Assisted Living 21 / 31
JOHN GREEN
Care Coordinator- John@example.com
Excellent verbal skills and a knack for cosmetic products, strong written and verbal
communication skills, skilled in customer interaction, and a qualified marketing
specialist.
[YEAR] Business Plan | Residential Assisted Living 22 / 31
Milestones
HOME AID
YEAR 1
Establish
Home Aid will rent a property at
the suburbs of South Dakota
alongside developing a fully
optimized and informative
website. Marketing activities will
also begin during this stage to
build awareness and launch the
brand into the market.
Gain Market Traction
The company will begin
expanding its services beyond
South Dakota to cover other
regions around the US.
Year 2
Year 3
Diversify
Having externally established the
business, the company will begin
internally expanding its range of
products
Grow
Begin expanding across the
US
Consider market expansion
beyond US
Year3
[YEAR] Business Plan | Residential Assisted Living 23 / 31
Financial plan
If you are going to start your own assisted living business, then make sure you
will pay special attention to your financial plan. Your financial plan should
include the details about how well you manage your incomes and expenses,
and how will you recover investments from the profit, etc. So, you should focus
on your financial plan if you want to expand your business on a large scale.
Important Assumptions
The companyā€™s financial projections are forecasted on the basis of the following assumptions. These
assumptions are quite conservative and are also expected to show deviation but to a limited level such
that the companyā€™s major financial strategy will not be affected.
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410
Projected Profit and Loss
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[YEAR] Business Plan | Residential Assisted Living 24 / 31
Year 1 Year 2 Year 3
Sales $309 069 $385 934 $462 799
Direct Cost of Sales $15 100 $19 153 $23 206
Other $0 $0 $0
TOTAL COST OF SALES $15 100 $19 153 $23 206
Gross Margin $293 969 $366 781 $439 593
Gross Margin % 94,98% 94,72% 94,46%
Expenses
Payroll $138 036 $162 898 $187 760
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $188 766 $220 744 $252 722
Profit Before Interest and Taxes $105 205 $146 040 $186 875
EBITDA $107 275 $148 110 $188 945
Interest Expense $0 $0 $0
Taxes Incurred $26 838 $37 315 $47 792
Net Profit $78 367 $108 725 $139 083
Net Profit/Sales 30,00% 39,32% 48,64%
[YEAR] Business Plan | Residential Assisted Living 25 / 31
Profit Yearly
Financial Year Profit
Year1 10000
Year2 12000
Year3 14000
Profit
Year1 Year2 Year3
0
5.00k
10.00k
15.00k
Gross Margin Yearly
Financial Year Gross Margin
Year1 10000
Year2 12000
Year3 14000
Gross Margin
Year1 Year2 Year3
0
5.00k
10.00k
15.00k
[YEAR] Business Plan | Residential Assisted Living 26 / 31
Projected Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359
Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683
[YEAR] Business Plan | Residential Assisted Living 27 / 31
Cash Balance $21 823 $22 381 $28 239
Cash Received Year 1 Year 2 Year 3
Projected Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420
[YEAR] Business Plan | Residential Assisted Living 28 / 31
Business Ratios
Year 1 Year 2 Year 3 Industry profile
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
[YEAR] Business Plan | Residential Assisted Living 29 / 31
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.
Year 1 Year 2 Year 3 Industry profile
[YEAR] Business Plan | Residential Assisted Living 30 / 31
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[YEAR] Business Plan | Residential Assisted Living 31 / 31

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Residential Assisted Living Business Plan Example

  • 1. Residential Assisted Living BUSINESS PLAN Here to help the old ones. Prepared By John Doe (650) 359-3153 10200 Bolsa Ave, Westminster, CA, 92683 info@upmetrics.co https://upmetrics.co
  • 2. Table of Contents Executive summary 4 Problem Definition & Validation 4 Solution 4 Objectives 5 Strategic Objectives 5 Operational Objectives 5 Mission statement 5 Keys to success 5 Financial Highlights 7 Home Aid - 3 Year Revenue Highlights 7 Chart 7 Business overview 8 Company Ownership/Legal Entity 8 Location 8 Interior Operating Facilities 9 Hours of Operation 9 Startup summary 9 Products & Services 10 Core Services 10 Live-in Care 10 Packages Offered 11 Hourly Care 11 Service Execution 12 Market Analysis 13 Market segmentation 13 Market Trends 13 Target market 14 Competitive Advantage 14 SWOT analysis 15 Strategy & implementation 17 Distribution Strategy 17 Marketing and Promotions Strategy 17 Pre-Launch Strategies 17 Launch Strategies 17 1 / 31
  • 3. Post-Launch Strategies 18 Positioning Statement 18 The planned positioning of Home Aid's Market 18 Sales strategy 18 Pricing strategy 19 Operational Plan 20 Organization chart 20 Chart 20 Stacy Green 20 Jane Doe 20 Amanda Doe 20 John Doe 20 Management Team 20 Personnel Plan 21 Hiring plan 21 JANE DOE 21 AMANDA DOE 21 JOHN GREEN 22 Milestones 23 HOME AID 23 Financial plan 24 Important Assumptions 24 Brake-even Analysis 24 Projected Profit and Loss 24 Profit Yearly 26 Chart 26 Gross Margin Yearly 26 Chart 26 Projected Cash Flow 27 Projected Balance Sheet 28 Business Ratios 29 2 / 31
  • 4. Easy to use Business Plan Software Get started using a business plan template is always the fastest way to write your business plan, but as you know, you can't just fill in the blanks along with a template. You will need a collaborative tool that guides you on every step of your planning. Upmetrics can help. With Upmetrics, you can easily bring your team to write a professional business plan with automated financial forecasts. You can also do: 200+ Sample business plans Get access to hundreds of sample business plans covering almost all industries to kick start your business plan writing. This helps you to get an idea how the perfect business plan should look like. View Sample Business Plans Step-By-Step Guide You'll receive step-by-step instruction as soon as you select any business plan template. We made business planning easy with prompt help and examples on every step of your business plan writing. See How It Works Conduct accurate financial projections Do not worry about not having accounting skills. With Upmetrics, Simply enter your sales and costs figures, and we'll prepare all of your monthly/quarterly and yearly financial projections. See How It Works [YEAR] Business Plan | Residential Assisted Living 3 / 31
  • 5. Executive summary Start Writing here... A compassionate individual determined to bring positive change to the lives of many; Ms. Stacy possesses a keen interest in providing home care services to the elderly and adults with special needs who are unable to fend for themselves. Having identified a distinct market opportunity for such services in the USā€”where exists high standards of care that complement her principles Problem Definition & Validation Start Writing here... In the United States, it is culturally required for children to leave their parental home and build a life outside of their nurturing homes once they reach adulthood. While this culture significantly aids in children becoming independent, self-reliant, and successful from an early age, the downside is often faced by aging parents. Living alone can leave aging individuals facing Solution Start Writing here... Home Aid is founded by Ms. Stacy with her aim to enter the booming home care market in the US. She intends to receive adequate training to understand its standard operating procedures and domiciliary care service offeringsā€”i.e. hourly and live-in care arrangements for the aged and disabled populace. By optimizing and building upon the successful ā€˜tried-and-tested formula of the To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 4 / 31
  • 6. Objectives Strategic Objectives Start writing here... To establish a home care facility to cater to South Dakota and the surrounding vicinity in 2022 To build a reputation in the assigned territory as a high-quality, safe, and effective domiciliary care service provider over the first five years of operations Operational Objectives Start writing here... To achieve and maintain at least 80% annual business efficienciesā€”i.e. Care Worker utilization vs. availabilityā€”throughout the first five years of operations To develop and implement a strategic promotional campaign within the first year of operations to expand market share, preferably to a double- Mission statement Start Writing here... To make available the choice for people to remain safe and happy in their own homes by providing first-class domiciliary care services combined with supplying independent living equipment. We aim to be the best at what we do while ensuring employee satisfaction and capturing the hearts of those we serve. Keys to success Management Expertise Ms Stacy has over 20 years of management expertise in a number of prominent companies, along with strong traits of compassion and hard work. Staff Training & Development Home Aid will accurately set and follow the standards through effectively training and guiding its staff and care workers. To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 5 / 31
  • 7. Service Quality Home Aid will be service-oriented, and strive to provide high-quality domiciliary care services to their clients in every respect, exceeding their highest expectations. Untapped Market Access to high quality and affordable staff is important to Home Aid in executing its service mandate. The growing workforce of South Dakota would contribute to this. Flexible Services Home Aid will be prepared to accommodate the unique needs of its clients in s flexible manner without compromising on quality. Superior Customer Support Exceptional customer service will play a pivotal role in the success of Home Aid as it will not only be aligned with the company's aim to bring a smile on its client but also enable repeat business and customer loyalty by ensuring that workers are polite, friendly and professional. [YEAR] Business Plan | Residential Assisted Living 6 / 31
  • 8. Financial Highlights Start Writing here... The company envisions raising an equity investment of $50,000 through long- term borrowings, which will be used for the setup and launch of the care facility in the US. The company expects to steadily grow its revenues through active efforts in marketing, networking, excellent customer service, and quality products. Meanwhile, the company will establish a healthy net profit ratio that Home Aid - 3 Year Revenue Highlights Financial Year Sales Gross Margin Net Profit 2021-22 360723 114289 13038 2022-23 538041 216784 44360 2023-24 665012 269869 65638 Sales Gross Margin Net Profit 2021-22 2022-23 2023-24 0 250.00k 500.00k 750.00k To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 7 / 31
  • 9. Business overview Start Writing here... Home Aid expects to commence operations in July 2022 once it has acquired the necessary licenses to operate a home care facility for the state of South Dakota and its neighboring territories. Basing its administrative headquarters in South Dakota, the company will offer hourly and live-in care services to the elderly population and those with disabilities within the locale. The territory was Company Ownership/Legal Entity Start Writing here... The company will be registered as a limited liability entity with the Department of State. Further, since the company envisions setting up operations in South Dakota, it will also register with the local county. The business will be wholly owned and Managed by Founder Ms. Stacy Green, who will also be the principal investor of the business. Location Start Writing here... Home Aid will begin operations for its home care facilities from South Dakota, a state which is touted for its home care services and population of senior citizens. Mount Rushmore State has much more to offer in terms of advantages and benefits for a variety of businesses. It is home to big corporations and large enterprises including Avera Health, Regional Health, To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 8 / 31
  • 10. Interior Operating Facilities Start Writing here... The company will begin operations from a picturesque property in South Dakota to set up its offices and home care facilities. Initial investments in setting up the interior facilities, consumables, inventory, and client entertainment space will be set up. Additions to space will be made as the company expands operations. Hours of Operation Start Writing here... Home Aid will operate an assisted living facility in the state of South Dakota. Office hours will be akin to corporate working hours while the facility will have staff working 24/7 in shifts to ensure aid is available at all times of the day. Startup summary Start Writing here... The founding team will infuse a capital sum of $50,000 through long-term borrowings to meet the companyā€™s start-up requirements. The start-up expenses are estimated at $18,500, primarily consisting of interior renovation, rent, and advertisement expenses. A further sum of $15,000 will be used to purchase initial stocks, furniture, computer, and other salon equipment. Sales To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 9 / 31
  • 11. Products & Services Start Writing here... Most people live independently in their own residences, but living alone is difficult for those who are frail or have long-term care needs. They require the help and support of other people and services. Sadly, most times, the families of those who need assistance do not have the time to provide for their day-to- day needs, nor do they possess the know-how of how to tackle specific Core Services Start Writing here... Clients may choose from a full-time live-in arrangement (live-in care) or additional help a few times per week (live-out care) to maintain a good quality of life, sans the stress and upheaval of moving to a residential care home or medical establishment. Live-in Care Start writing here... The benefits of live-in care are visible for both clients and their families through the successful service of the Franchisor over the years. Full-time care-at- home service allows clients to stay in familiar and relaxed surroundings with excellent one-on-one support. Support assistants embrace personal care, housekeeping, and most importantly, companionship. They will live in the To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 10 / 31
  • 12. Packages Offered 24Hr Sleep-in Includes 10 hours of full support during the day and sleep-in service at night $100 ī¤½ 24Hr Awake Includes 10 hours of full support during the day and an awake night service (2 workers assigned on shift basis) $150 ī„€ 10Hr Sleep-in Sleep in service to provide support if required. If more than 4 hours of continuous sleep are not achieved then the hourly support charge is applied for the entire shift. $50 ī„ƒ Hourly Care Start writing here... Hourly care involves care assistants visiting clients on short/temporary stays that usually last for around 60-minutes or multiples thereof. A dedicated, trained team of care workers will provide clients with a range of services tailored to suit their requirements. A care plan is agreed upon in advance, complete with services that range from assistance with carrying out simple To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 11 / 31
  • 13. Service Execution Start Writing here... Home Aid will aim to ensure that receiving support at home is as stress-free as possible. The idea of someone new living in oneā€™s place of residence could cause some apprehension; however, Home Aid will go to great lengths to provide sufficient reassurance. The initial part of the process is a client meeting. At this meeting, clients will To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 12 / 31
  • 14. Market Analysis Start Writing here... The U.S. assisted living facility market size was valued at USD 83.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.3% from 2021 to 2027. The growing geriatric population and the rising incidence of brain injuries are expected to boost the growth of the market. The growing prevalence of target diseases and advancements in assisted living Market segmentation Start Writing here... There are approximately 28,900 assisted living communities with nearly 1 million licensed beds in the United States today. The average size of an assisted living community is 33 licensed beds. Market Trends Start Writing here... The concept of continual care retirement communities is gaining traction among seniors with high disposable income. These retirement communities are known to cater to people aged 50 years and above. The idea behind these communities is to prevent seniors from relocating when additional care is needed. As a result, the less than 65 years segment is likely to receive a To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 13 / 31
  • 15. Target market Start Writing here... It is foreseeable that by 2039, 1 in 12 people will be over the age of 80, and several people aged 75 and above are projected to reach 9.9 million. This naturally causes the need for more home care facilities. This growing need for domiciliary care services puts pressure on the government for improved healthcare and pensions. In some instances, families live away from their Competitive Advantage Family Atmosphere Home Aidā€™s Staff will provide customers a family like feel to ensure they are comfortable and open with the care giver. An open communication is necessary to ensure satisfaction as well as accuracy of service provided. īØ· Trained Staff The Home Aid staff will be adequate trained in nursing and first aid to ensure the clients are in professional hands īØ· Reputation Home Aid will strive to build a reputation of becoming the best assisted care provider in South Dakota īØ· Operating Hours Home Aid, while operating in corporate hours, will ensure availability 24/7 to be able to attend to the special needs of the client. īØ· To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 14 / 31
  • 16. SWOT analysis Start Writing here... A SWOT (Strength, Weakness, Opportunity, and Threat) analysis is a useful tool for businesses to evaluate their position in the market against the potential internal and external factors that could assist or jeopardize their operations and existence. A SWOT has been conducted for Home Aid and is presented below. Strengths The Founder has over 20 years of leadership and managerial experience which would be of great assistance in her new role. The founder has access to sufficient funds to maintain business operations until stable. Flexible/part-time/as-needed staffing arrangements for Care Workers will help keep fixed costs low. Providing rigorous staff and care worker training prior to placement assures exceptional quality. The low capital intensity of the business Monitoring systems are in place to track work time and provide flexible shifts accordingly for care assistants, creating a positive working environment. Continuous assistance can be obtained from the Franchisor and associated networks. The founder's passion for social work, particularly the elderly and disabled. S Weaknesses Home Aid would be a new business entering an industry with existing levels of competition. Zero market share in the chosen geography at the onset. Will require continuous and somewhat aggressive marketing and promotions to achieve and sustain market share. The founder has limited knowledge of South Dakota, its people, and culture, which could be overcome by doing the market research, participating in community events, and engaging with customers through social media W To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 15 / 31
  • 17. Opportunities There is a general acceptance that ā€œcare at homeā€ is better. Further capacity expansion is possible until peak volumes are achieved. New markets opening constantly i.e. support for those with learning difficulties, childrenā€™s Services, etc. People want to be able to stay at home and maintain their independence for as long as possible which means a larger and expanding need for domiciliary care. Increasing costs of residential care mean people are more likely to choose domiciliary care services that are cost- friendly. Projected increase in healthcare expenditure. Home care providers can target clients with private healthcare insurance. O Threats Other domiciliary care service providers in and around the area already have an office and have already established a clientele. Changes in local and/or national government policy. Possible Competition from Residential Care Providers. Market saturation. T [YEAR] Business Plan | Residential Assisted Living 16 / 31
  • 18. Strategy & implementation Start Writing here... Operating solely as a B2C service provider, the companyā€™s core offerings are uniquely tailored to cater to those aged 65 and above who live in their own homes and are unable or find it difficult to fend for themselves. The following section proposes the use of both online and offline marketing techniques to successfully capture the attention of prospective clients. Distribution Strategy Start Writing here... The Founder has identified the target market as elderly and/or disabled communities living in their own residences who are unable to carry out day-to- day activities effectively. At its inception, Home Aid would offer non-medical services to their clients, striving to create and strengthen the brand attributes of reliability, honesty, flexibility, and transparency. Research by Care Industry Marketing and Promotions Strategy Pre-Launch Strategies Start writing here... 1. Putting up window stickers ā€“ ā€œopening soonā€ at the selected building location 2. Leaflet distribution in the area, especially in communal areas 3. Online platforms and social media such as a website, blog, and LinkedIn, particularly to reach working individuals who are unable to take care of Launch Strategies 1. Publishing a local press release announcing arrival and start-up 2. Local press advertising via newspapers and magazines 3. Targeted customer mailshot 4. Continued leaflet distribution in both communal areas To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 17 / 31
  • 19. Start writing here... Post-Launch Strategies Start writing here... 1. Regular leaflet distribution in both communal areas 2. Regular advertising via newspapers, magazines, local TV stations, posters Local PR 3. Maintaining online presence via social media, company website, blog, and LinkedIn Positioning Statement The planned positioning of Home Aid's Market Aged Individuals Aged individuals who need help with medication and house chores Disabled Individuals Assist disabled individuals in daily tasks like dressing, eating, exercising. Sales strategy Start Writing here... According to the recent market survey, most customers discover assisted living facilities mainly through seeing the physical outlet and word of mouth, while a small proportion of customers find a coffee shop through social media. The company will undertake a ā€˜pre-opening promotional campaignā€™ in consultation with an expert to boost the visibility of the new store. Some ideas To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 18 / 31
  • 20. Pricing strategy Start Writing here... The live-out service will be priced at a fixed rate of $22.00 per hour. The prices for the live-in service will vary, depending upon the duration and type of service. For example, a 24-hr service with sleep-in will be priced at $420. Further, the same duration of service with an awake night will be charged at $520. Nevertheless, the average hourly rate is estimated at $16.29 for the live- To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 19 / 31
  • 21. Operational Plan Start Writing here... The team will be headed by Managing Director Ms. Stacy Green who will also oversee the company operations. Joining Ms. Stacy in the Management Team, the company will onboard a care manager, care coordinator, and a team of professional caregivers. Organization chart Stacy Green Managing Director Jane Doe Care Manager Amanda Doe Care Giver John Doe Care coordinator Management Team Start Writing here... Equipped with such extensive academic and work experience in management, branding, and marketing, Ms. Stacy would be more than capable of overseeing and handling the business operations of Home Aid. Her excellent people skills would guarantee healthy relationships with both clients and employees, while her passion to make a change in the lives of specifically elderly and differently- To unlock help try Upmetrics! ī£” To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 20 / 31
  • 22. Personnel Plan Start Writing here... The company plans to create six full-time equivalent jobs in addition to the management team within the first three years of operations. Salaries for each employee are in line with the industryā€™s benchmark. Hiring plan Group By Department Position Filled Time of Hire Time of Start Filled On Time Care Manager 1 of 20 10 days 121 days 100% Care Giver 3 of 23 30 days 21 days 80% Care Coordinator 4 of 15 158 days 127 days 0% 20 Filled 5 Hired 25 Open JANE DOE Care Manager- janedoe@example.com Ability to cope with fast-paced and pressured work, accuracy, strong attention to detail and a strong analytical mind, ability to notice patterns within statistics, an interest in psychology and behavior, good organizational skills, excellent (spoken and written) communication skills. AMANDA DOE Care Giver- amanda@example.com Preferably bilingual with ability to speak English and French fluently, problem- solving, ability to convert leads into sales, active listener, patience, and understanding of the companyā€™s products and services. Additionally, skills in social media marketing, search engine optimization, newsletter marketing, other forms of digital marketing will also be required To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 21 / 31
  • 23. JOHN GREEN Care Coordinator- John@example.com Excellent verbal skills and a knack for cosmetic products, strong written and verbal communication skills, skilled in customer interaction, and a qualified marketing specialist. [YEAR] Business Plan | Residential Assisted Living 22 / 31
  • 24. Milestones HOME AID YEAR 1 Establish Home Aid will rent a property at the suburbs of South Dakota alongside developing a fully optimized and informative website. Marketing activities will also begin during this stage to build awareness and launch the brand into the market. Gain Market Traction The company will begin expanding its services beyond South Dakota to cover other regions around the US. Year 2 Year 3 Diversify Having externally established the business, the company will begin internally expanding its range of products Grow Begin expanding across the US Consider market expansion beyond US Year3 [YEAR] Business Plan | Residential Assisted Living 23 / 31
  • 25. Financial plan If you are going to start your own assisted living business, then make sure you will pay special attention to your financial plan. Your financial plan should include the details about how well you manage your incomes and expenses, and how will you recover investments from the profit, etc. So, you should focus on your financial plan if you want to expand your business on a large scale. Important Assumptions The companyā€™s financial projections are forecasted on the basis of the following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the companyā€™s major financial strategy will not be affected. Year 1 Year 2 Year 3 Plan Month 1 2 3 Current Interest Rate 10,00% 11,00% 12,00% Long-term Interest Rate 10,00% 10,00% 10,00% Tax Rate 26,42% 27,76% 28,12% Other 0 0 0 Brake-even Analysis Monthly Units Break-even 5530 Monthly Revenue Break-even $159 740 Assumptions: Average Per-Unit Revenue $260,87 Average Per-Unit Variable Cost $0,89 Estimated Monthly Fixed Cost $196 410 Projected Profit and Loss To unlock help try Upmetrics! ī£” [YEAR] Business Plan | Residential Assisted Living 24 / 31
  • 26. Year 1 Year 2 Year 3 Sales $309 069 $385 934 $462 799 Direct Cost of Sales $15 100 $19 153 $23 206 Other $0 $0 $0 TOTAL COST OF SALES $15 100 $19 153 $23 206 Gross Margin $293 969 $366 781 $439 593 Gross Margin % 94,98% 94,72% 94,46% Expenses Payroll $138 036 $162 898 $187 760 Sales and Marketing and Other Expenses $1 850 $2 000 $2 150 Depreciation $2 070 $2 070 $2 070 Leased Equipment $0 $0 $0 Utilities $4 000 $4 250 $4 500 Insurance $1 800 $1 800 $1 800 Rent $6 500 $7 000 $7 500 Payroll Taxes $34 510 $40 726 $46 942 Other $0 $0 $0 Total Operating Expenses $188 766 $220 744 $252 722 Profit Before Interest and Taxes $105 205 $146 040 $186 875 EBITDA $107 275 $148 110 $188 945 Interest Expense $0 $0 $0 Taxes Incurred $26 838 $37 315 $47 792 Net Profit $78 367 $108 725 $139 083 Net Profit/Sales 30,00% 39,32% 48,64% [YEAR] Business Plan | Residential Assisted Living 25 / 31
  • 27. Profit Yearly Financial Year Profit Year1 10000 Year2 12000 Year3 14000 Profit Year1 Year2 Year3 0 5.00k 10.00k 15.00k Gross Margin Yearly Financial Year Gross Margin Year1 10000 Year2 12000 Year3 14000 Gross Margin Year1 Year2 Year3 0 5.00k 10.00k 15.00k [YEAR] Business Plan | Residential Assisted Living 26 / 31
  • 28. Projected Cash Flow Cash Received Year 1 Year 2 Year 3 Cash from Operations Cash Sales $40 124 $45 046 $50 068 Cash from Receivables $7 023 $8 610 $9 297 SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359 Additional Cash Received Sales Tax, VAT, HST/GST Received $0 $0 $0 New Current Borrowing $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 New Long-term Liabilities $0 $0 $0 Sales of Other Current Assets $0 $0 $0 Sales of Long-term Assets $0 $0 $0 New Investment Received $0 $0 $0 SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359 Expenditures from Operations Cash Spending $21 647 $24 204 $26 951 Bill Payments $13 539 $15 385 $170 631 SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 Other Liabilities Principal Repayment $0 $0 $0 Long-term Liabilities Principal Repayment $0 $0 $0 Purchase Other Current Assets $0 $0 $0 Purchase Long-term Assets $0 $0 $0 Dividends $0 $0 $0 SUBTOTAL CASH SPENT $35 296 $35 489 $43 882 Net Cash Flow $11 551 $13 167 $15 683 [YEAR] Business Plan | Residential Assisted Living 27 / 31
  • 29. Cash Balance $21 823 $22 381 $28 239 Cash Received Year 1 Year 2 Year 3 Projected Balance Sheet Assets Year 1 Year 2 Year 3 Current Assets Cash $184 666 $218 525 $252 384 Accounts Receivable $12 613 $14 493 $16 373 Inventory $2 980 $3 450 $3 920 Other Current Assets $1 000 $1 000 $1 000 TOTAL CURRENT ASSETS $201 259 $237 468 $273 677 Long-term Assets Long-term Assets $10 000 $10 000 $10 000 Accumulated Depreciation $12 420 $14 490 $16 560 TOTAL LONG-TERM ASSETS $980 $610 $240 TOTAL ASSETS $198 839 $232 978 $267 117 Current Liabilities Accounts Payable $9 482 $10 792 $12 102 Current Borrowing $0 $0 $0 Other Current Liabilities $0 $0 $0 SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102 Long-term Liabilities $0 $0 $0 TOTAL LIABILITIES $9 482 $10 792 $12 102 Paid-in Capital $30 000 $30 000 $30 000 Retained Earnings $48 651 $72 636 $96 621 Earnings $100 709 $119 555 $138 401 TOTAL CAPITAL $189 360 $222 190 $255 020 TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117 Net Worth $182 060 $226 240 $270 420 [YEAR] Business Plan | Residential Assisted Living 28 / 31
  • 30. Business Ratios Year 1 Year 2 Year 3 Industry profile Sales Growth 4,35% 30,82% 63,29% 4,00% Percent of Total Assets Accounts Receivable 5,61% 4,71% 3,81% 9,70% Inventory 1,85% 1,82% 1,79% 9,80% Other Current Assets 1,75% 2,02% 2,29% 27,40% Total Current Assets 138,53% 150,99% 163,45% 54,60% Long-term Assets -9,47% -21,01% -32,55% 58,40% TOTAL ASSETS 100,00% 100,00% 100,00% 100,00% Current Liabilities 4,68% 3,04% 2,76% 27,30% Long-term Liabilities 0,00% 0,00% 0,00% 25,80% Total Liabilities 4,68% 3,04% 2,76% 54,10% NET WORTH 99,32% 101,04% 102,76% 44,90% Percent of Sales Sales 100,00% 100,00% 100,00% 100,00% Gross Margin 94,18% 93,85% 93,52% 0,00% Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20% Advertising Expenses 2,06% 1,11% 0,28% 1,40% Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86% Main Ratios Current 25,86 29,39 32,92 1,63 Quick 25,4 28,88 32,36 0,84 Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10% Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40% Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00% Additional Ratios Net Profit Margin 19,20% 21,16% 23,12% N.A. Return on Equity 47,79% 50,53% 53,27% N.A. [YEAR] Business Plan | Residential Assisted Living 29 / 31
  • 31. Activity Ratios Accounts Receivable Turnover 4,56 4,56 4,56 N.A. Collection Days 92 99 106 N.A. Inventory Turnover 19,7 22,55 25,4 N.A. Accounts Payable Turnover 14,17 14,67 15,17 N.A. Payment Days 27 27 27 N.A. Total Asset Turnover 1,84 1,55 1,26 N.A. Debt Ratios Debt to Net Worth 0 -0,02 -0,04 N.A. Current Liab. to Liab. 1 1 1 N.A. Liquidity Ratios Net Working Capital $120 943 $140 664 $160 385 N.A. Interest Coverage 0 0 0 N.A. Additional Ratios Assets to Sales 0,45 0,48 0,51 N.A. Current Debt/Total Assets 4% 3% 2% N.A. Acid Test 23,66 27,01 30,36 N.A. Sales/Net Worth 1,68 1,29 0,9 N.A. Dividend Payout 0 0 0 N.A. Year 1 Year 2 Year 3 Industry profile [YEAR] Business Plan | Residential Assisted Living 30 / 31
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