Running head: BUSINESS PLAN: NURSING CARE FACILITY 1 BUSINESS PLAN: NURSING CARE FACILITY 2 Business Plan: Nursing Care Facility Shannon Oberlin 1/15/2018 Business Plan: Nursing Care Facility 3.1. Industry 3.1.1 Industry description The business offers Skilled Nursing Home services, and it is classified under Nursing Care Facilities Industry: NAICS 6231 which is under the nursing and residential care facilities subsector. Its main focus will be the provision of rehabilitative and inpatient nursing services to patients needing continuous and closely observed healthcare. Services offered in this industry differentiates from what is offered in the hospital, in that the nursing care facility will focus on treatments, medical monitoring. Other different types of care facilities in this industry include hospice care, assisted living and home care (NoAuthorFound, 2017). The market research report of 2017 shows that the industry has generated revenue of up to $ 129 billion and a 1.4% annual growth between 2012 and 2017. The industry has up to 31,015 businesses operating in the US market which have created employment for approximately 1.7 million professionals. The Skilled Nursing Home will increase the employment rate of professionals in this subsector. 3.1.2. Resources used Services offered in this by this industry serve a fast-growing population in the United States thus the need to expand the scope of operations in Skilled Nursing Homes. In 2001 the United States spent approximately $92.2 billion in providing nursing home care to its citizens. The largest percentage of this expenditure was used in reimbursing professionals and equipping the nursing homes with equipment. The most important resources needed in operating the Skilled Nursing Home will be securing a suitable and secure location which has access to essential services. The center will also need professional services from at least 15 trained nurses who will be responsible for the welfare of the patients/client and also managerial purposes. Among the facilities needed for this business will be a standby ambulance which will be housed in the nursing home facility. 3.2. Customers 3.2.1. Target customer analysis Explanation According to the 2010 census report, there are 99 million persons aged 50 years and above living in the United States (FactFinder, 2017). Assuming that 75% of this population still can take care of themselves or have family members who take care of them our number will reduce to 74 million. Considering that we will only have one physical location, we can reduce the number of willing clients by the share of population covered by the location. The assumption is that we can only cater for people living in the county of location. The target customers will include patients who need short-term care services and those who need long-term or extended care services. Due to an extended life expectancy in the United States, the population of peopl ...

1. Running head: BUSINESS PLAN: NURSING CARE FACILITY
1
BUSINESS PLAN: NURSING CARE FACILITY
2
Business Plan: Nursing Care Facility
Shannon Oberlin
1/15/2018
Business Plan: Nursing Care Facility
3.1. Industry
3.1.1 Industry description
The business offers Skilled Nursing Home services, and it is
classified under Nursing Care Facilities Industry: NAICS 6231
which is under the nursing and residential care facilities
subsector. Its main focus will be the provision of rehabilitative
and inpatient nursing services to patients needing continuous
and closely observed healthcare. Services offered in this
industry differentiates from what is offered in the hospital, in
that the nursing care facility will focus on treatments, medical
monitoring. Other different types of care facilities in this
industry include hospice care, assisted living and home care
(NoAuthorFound, 2017).
The market research report of 2017 shows that the industry has
generated revenue of up to $ 129 billion and a 1.4% annual
growth between 2012 and 2017. The industry has up to 31,015

2. businesses operating in the US market which have created
employment for approximately 1.7 million professionals. The
Skilled Nursing Home will increase the employment rate of
professionals in this subsector.
3.1.2. Resources used
Services offered in this by this industry serve a fast-growing
population in the United States thus the need to expand the
scope of operations in Skilled Nursing Homes. In 2001 the
United States spent approximately $92.2 billion in providing
nursing home care to its citizens. The largest percentage of this
expenditure was used in reimbursing professionals and
equipping the nursing homes with equipment.
The most important resources needed in operating the Skilled
Nursing Home will be securing a suitable and secure location
which has access to essential services. The center will also need
professional services from at least 15 trained nurses who will be
responsible for the welfare of the patients/client and also
managerial purposes. Among the facilities needed for this
business will be a standby ambulance which will be housed in
the nursing home facility.
3.2. Customers
3.2.1. Target customer analysis
Explanation
According to the 2010 census report, there are 99 million
persons aged 50 years and above living in the United States
(FactFinder, 2017). Assuming that 75% of this population still
can take care of themselves or have family members who take
care of them our number will reduce to 74 million. Considering
that we will only have one physical location, we can reduce the

3. number of willing clients by the share of population covered by
the location. The assumption is that we can only cater for
people living in the county of location.
The target customers will include patients who need short-term
care services and those who need long-term or extended care
services. Due to an extended life expectancy in the United
States, the population of people aged above 50 is expected to
increase by 70%. This increases disability cases which will call
for the use of services offered by the Nursing Care Facility. The
demand for nursing care will lead to an increase in the number
of adult patients aged 65 years and above. Besides this
population, there is the elderly population who need assisted
living care services in their old age. This includes persons who
are 70 years and above. The main concerns of this class of
patients are to be facilitated by well trained and skilled nurses
as well as to be involved in the treatment and living plan.
Table
Older adults
Elderly:
Age:
50–65
Age:
65+
Income:
High or fixed
Income:
Fixed
Sex:
Male or Female
Sex:
Male or Female
Family:
Empty nest
Family:
Empty nest

4. Geographic:
Suburban
Geographic:
Suburban
Occupation:
White-collar or retired
Occupation:
Retired
Attitude:
Security minded, energy conscious
Attitude:
Calls for respect and active involvement in the treatment/living
plan
References
NoAuthorFound, (2017). Long Term Care Market Analysis by
Service (Home Healthcare, Hospice, Nursing Care, Assisted
Living Facilities) and Segment Forecasts to 2024. Grand View
Research, Inc. Retrieved from:
https://www.grandviewresearch.com/industry-analysis/long-
term-care-services-market
FactFinder, (2017). Profile of General Population and Housing
Characteristics: 2010 more information 2010 Demographic
Profile Data. Fact Finder. Retrieved from:
https://factfinder.census.gov/faces/tableservices/jsf/pages/produ
ctview.xhtml?src=CF
BUSINESS PLAN
[Your Name], Owner
Date
1. EXECUTIVE SUMMARY
1.1 Product

5. 1.2 Customers
1.3 What Drives Us
2. COMPANY DESCRIPTION
2.1 Mission and Vision Statements
2.2 Principal Members at Startup (In Unit 7 you will expand on
this section to include medium and long term personnel plans
for all team members, including the line staff.)
2.2.1 Using chapter 10 of your text, write the plan, using the
section in Chapter 10 that shows how to introduce each team
member and describe their background and responsibilities. You
will start with the leaders and managers, then discuss other
employees as needed for your company to grow.
2.2.2 Use this spreadsheet to show the planning
Leaders/managers (unit 1)
When needed (number of months/years after opening)
Outside Services Needed
Key Functions

7. Add line staff (Unit 7)

8. 2.3 Legal Structure
3. MARKET RESEARCH
3.1 Industry (from SBA, Business Guides by Industry -
https://www.sba.gov/managing-business/business-guides-
industry, and Bureau of Labor Statistics -
https://www.bls.gov/iag/tgs/iag51.htm, )
3.1.1 Industry description
3.2.1 Resources used
3.2 Customers (from SBA site fill in worksheet, then use text
for spreadsheets and follow-up explanations)
Add SBA part here
Then:
Fill in spreadsheet using this example from the text:
Housewife:
Married Couple:
Age:

9. 35–65
Age:
35–55
Income:
Fixed
Income:
Medium to high
Sex:
Female
Sex:
Male or Female
Family:
Children living at home
Family:
0 to 2 children
Geographic:
Suburban
Geographic:
Suburban
Occupation:
Housewife
Occupation:
Varies
Attitude:
Security minded
Attitude:
Security minded, energy conscious
Older Couple:
Elderly:
Age:
55–75
Age:
70+
Income:
High or fixed
Income:

10. Fixed
Sex:
Male or Female
Sex:
Male or Female
Family:
Empty nest
Family:
Empty nest
Geographic:
Suburban
Geographic:
Suburban
Occupation:
White-collar or retired
Occupation:
Retired
Attitude:
Security minded, energy conscious
Attitude:
Security minded, energy conscious
Explain who you are targeting and where they are located
beginning with the heading “Customers.” Insert information
here using these guidelines:
Information About Your Target Market – Narrow your target
market to a manageable size. Many businesses make the mistake
of trying to appeal to too many target markets. Research and
include the following information about your market:
Distinguishing characteristics – What are the critical needs of
your potential customers? Are those needs being met? What are
the demographics of the group and where are they located? Are
there any seasonal or cyclical purchasing trends that may impact
your business?
Size of the primary target market – In addition to the size of
your market, what data can you include about the annual

11. purchases your market makes in your industry? What is the
forecasted market growth for this group? For more information,
see our market research guide for tips and free government
resources that can help you build a market profile.
How much market share can you gain? – What is the market
share percentage and number of customers you expect to obtain
in a defined geographic area? Explain the logic behind your
calculation.
3.3 Competitors (from SBA site fill in worksheet, then use text
for spreadsheets and follow-up explanation)
Then:
Fill in spreadsheet using this example from the text:
Estimated Market Share
Competition 60%
Home Improvements Inc. 30%
Product Line
4
5
Quality
4
5
Technology
4
5
Advertising
2
5
Sales Force
3
5

12. Distribution
3
4
Price
4
4
Installation
4
5
Ease of Use
4
5
Appearance
3
5
Design
4
5
Useful Life
4
4
Responsiveness
3
5
Availability
1
5
Technical Expertise
4
5
Repair Service
3
5
Efficiency
3
5

13. Guarantee/Warranty
5
5
On Time Capability
4
5
Industry Reputation
3
5
Write an explanation of your findings using information from
the spreadsheet using these guidelines:
· Market share
· Strengths and weaknesses
· How important is your target market to your competitors?
· Are there any barriers that may hinder you as you enter the
market?
· What is your window of opportunity to enter the market?
· Are there any indirect or secondary competitors who may
impact your success?
· What barriers to market are there (e.g., changing technology,
high investment cost, lack of quality personnel)?
3.4 Competitive AdvantageRead: Sustainable competitive
advantage or temporary competitive advantage: Improving
understanding of an important strategy construct.
3.5 Regulation (use SBA site to fill in blanks, and use
https://www.sba.gov/managing-business/business-law-
regulations as a resource)

14. 4. PRODUCT/SERVICE LINE
4.1 Product or Service
4.2 Pricing Structure
4.3 Product/Service Life Cycle
4.4 Intellectual Property Rights
4.5 Research & Development
5. MARKETING and SALES
5.1 Growth Strategy
· A market penetration strategy.
· A growth strategy. This strategy for building your business
might include: an internal strategy such as how to increase your
human resources, an acquisition strategy such as buying another
business, a franchise strategy for branching out, a horizontal
strategy where you would provide the same type of products to
different users, or a vertical strategy where you would continue
providing the same products but would offer them at different
levels of the distribution chain.
· Channels of distribution strategy. Choices for distribution
channels could include original equipment manufacturers
(OEMs), an internal sales force, distributors, or retailers.
· Communication strategy. How are you going to reach your
customers? Usually a combination of the following tactics
works the best: promotions, advertising, public relations,
personal selling, and printed materials such as brochures,
catalogs, flyers, etc.
After you have developed a comprehensive marketing strategy,
you can then define your sales strategy. This covers how you

15. plan to actually sell your product.
5.2 Your overall sales strategy should include two primary
elements:
· A sales force strategy. If you are going to have a sales force,
do you plan to use internal or independent representatives? How
many salespeople will you recruit for your sales force? What
type of recruitment strategies will you use? How will you train
your sales force? What about compensation for your sales
force?
· Your sales activities. When you are defining your sales
strategy, it is important that you break it down into activities.
For instance, you need to identify your prospects. Once you
have made a list of your prospects, you need to prioritize the
contacts, selecting the leads with the highest potential to buy
first. Next, identify the number of sales calls you will make
over a certain period of time. From there, you need to determine
the average number of sales calls you will need to make per
sale, the average dollar size per sale, and the average dollar size
per vendor.5.3 Communication Strategy
5.3.1 Internet Strategy (from the text)
5.3.1 Tracking ROI form website
5.3.2 Discuss how you will assure ethical practices are being
used in your marketing and selling.
6. FINANCIAL PROJECTIONS6.1 Profit & Loss
Year 1
Year 2
Year 3
Sales

16. Costs/Goods Sold
GROSS PROFIT
OPERATING EXPENSES
Salary (Office & Overhead)
Payroll (taxes, etc.)
Outside Services
Supplies (Office & Operation)
Repairs & Maintenance
Advertising
Car, Delivery & Travel

17. Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes (Real Estate, etc.)
Interest
Depreciation
Other Expenses

18. TOTAL EXPENSES
NET PROFIT BEFORE TAXES
Income Taxes
NET PROFIT AFTER TAX
Owner Draw/Dividends
ADJUSTED TO RETAINED
6.2 Cash Flow Complete section 6.3 of your business plan
outline

19. Pre-Startup
EST.
Year 1
Year 2
Year 3
Cash on Hand
CASH RECEIPTS
Cash Sales
Collections from CR Accounts
Loan/Cash Injection
TOTAL CASH RECEIPTS
TOTAL CASH AVAILABLE

20. CASH PAID OUT
Purchases
Gross Wages
Outside Services
Supplies
Repairs & Maintenance
Advertising

21. Car, Delivery & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes (Real Estate, etc.)

22. Interest
Other Expenses
SUBTOTAL
Loan Principal Payment
Capital Purchase
Other Startup Costs
Reserve and/or Escrow

23. Others Withdrawal
TOTAL CASH PAID OUT
CASH POSITION
6.3 Balance Sheet
Assets
Start Date:
End Date:
CURRENT ASSETS
Cash in Bank
Accounts Receivable
Inventory

24. Prepaid Expenses
Other Current Assets
TOTAL CURRENT ASSETS
FIXED ASSETS
Machinery & Equipment
Furniture & Fixtures
Leaseholder Improvements
Land & Buildings
Other Fixed Assets
TOTAL FIXED ASSETS
(net of depreciation)

25. OTHER ASSETS
Intangibles
Deposits
Other
TOTAL OTHER ASSETS
TOTAL ASSETS
Liabilities & Equity
CURRENT LIABILITIES
Accounts Payable
Interest Payable
Taxes Payable
Notes, Short Term (due in 12 months)

26. Current Part, Long-Term Debt
TOTAL CURRENT LIABILITIES
LONG TERM DEBT
Bank Loans Payable
Notes Payable to Stockholders
LESS: Short-Term Portion
Other Long-Term Debt
TOTAL LONG-TERM DEBT
TOTAL LIABILITIES
OWNER'S EQUITY
Invested Capital

27. Retained Earnings
TOTAL OWNERS EQUITY
TOTAL LIABILITIES & EQUITY
Customers6.4 Break-Even Analysis
DIRECT COSTS
Fixed Costs ($)
Variable Costs (%)
Cost of Goods Sold
Inventory
Raw Materials
Direct Labor
INDIRECT COSTS
Salaries

28. Supplies
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Rent
Telephone
Utilities
Insurance
Taxes
Interest
Depreciation
Other Costs

29. Total Fixed Costs
Total Variable Costs
BREAK-EVEN SALES LEVEL:
6.5 Financial Assumptions
6.5.1 Assumptions for Profit and Loss Projections
6.5.2 Assumptions for Cash Flow Analysis
6.5.3 Assumptions for Balance Sheet
6.5.4 Assumptions for Break-Even Analysis