Mystic Meadows Home Care
(Sample Business Name)
2014
Business Plan
In-Home Care | Assisted Living
Introduction
The purpose of this Sample Business Plan is to provide you with the tools to
properly forecast your new Homecare and Assisted Living Placement Company. You
may have already decided that you are ready to launch and in this scenario, this plan will
help you determine how much capital you will need to begin. If you are still considering
whether or not this is the right business opportunity for you, this kit will give you the
means to make that decision.
Business plans need to be simple. They need to get to the point and not labor in
the details. That is why we’ve created this simple, straight-to-the-point plan that you can
edit to match your specific business. Accompanying this sample business plan are tools
and financial spreadsheets that can be used to forecast the revenue and expenses for your
business. The directions on how to use these forecasting tools are also included.
Lastly, make sure to have fun with this! Launching a new company is an exciting
adventure and the planning stage can often times be the most enjoyable as this process
opens your mind up to dreaming! Dream big, plan wisely, and get ready to launch!
TABLE of CONTENTS
1.0
Executive Summary ............................................................................................. 1
1.1 Our Mission ..........................................................................................................1
1.2 Objectives .............................................................................................................2
1.3
Keys to Success....................................................................................................2
2. 0 Company Summary .............................................................................................2
2.1 Company Ownership ............................................................................................2
2.2 Company Location and Facilities .........................................................................2
2.3 Legal Considerations ............................................................................................3
2.4 Start-Up Summary ................................................................................................3
3.0 The Services .......................................................................................................... 5
4.0 Market Analysis Summary ................................................................................... 5
4.1 Market Segmentation ............................................................................................6
4.2 The Competition .....................................................................................................7
4.3. The Mystic Meadows Home Care Services Advantage ......................................7
5.0 Marketing Strategy................................................................................................ 8
5.1 Networking and referrals ......................................................................................8
5.2 Traditional advertising and promotion..................................................................8
5.3 Web Site Promotion ..............................................................................................9
5.4 Pricing Strategy.....................................................................................................9
5.5
Sales Strategy .......................................................................................................9
5.5.1 Sales Forecast...................................................................................................10
6.0
Management Summary .................................................................................... 10
6.1 Personnel .............................................................................................................10
7.0
Financial Plan..................................................................................................... 11
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1.0
Executive Summary
Mystic Meadows is a new company, which will be providing non-medical, in-home
support services and assisted living placement services to people wanting to live
independently in their own homes and communities. This Business Plan has been
prepared to obtain a short-term loan in the amount of $______________ for start-up
expenses and to cover operating expenses for the first few months. The loan will be
paid from the cash flow of the business and backed by a personal guarantee from the
owner. Mrs. Ever Right will contribute $5,400 of her personal funds towards start-up
costs.
Home Care is a term used to reflect a wide range of supportive activities that are
conducted for purposes of enabling compromised people to live independently in
their own homes and communities. Such support also provides relief to caregivers
who are looking after loved ones. The services provided are diversified and
numerous and are delivered by a wide cross-section of professionals and
paraprofessionals.
Assisted Living Placement is a term used to describe the services provided to assist
clients and their families to find right option for assisted living.
The decision to go into the homecare and assisted living placement business was
made by Mrs. Ever Right as she became aware of the emerging need for such
services. The media has been making continual reference to the fact that the need for
homecare and assisted living services is escalating and will become a factor to reckon
with, as the elderly population numbers continue to increase. Part of this upsurge is
due to current senior citizens living longer and part of it is due to the large group of
“baby-boomers” swiftly approaching their retirement years. Coupled with that are
governments trying to respond to the staggering costs of health care. Remaining in
their own homes and communities not only make clients happier and healthier but
costs are a mere fraction of institutional care. Additionally, many terminally ill
people are electing to receive hospice care at home, which, once again, costs less than
facility care. It also allows the patient and their families to deal with the pending
death privately and with dignity. Being able to do so in a comfortable and familiar
environment is peaceful and therapeutic for them.
1.1 Our Mission
The mission of Mystic Meadows is to help our clients lead dignified, independent
lifestyles in the comfort and safety of their own homes by carefully assessing and
fully understanding their individual needs and selectively placing trained personnel to
meet these needs. In addition, when staying home is no longer an option, our mission
is to find the appropriate assisted living option within our network to properly serve
the client and his/her family.
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1.2 Objectives
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Profit- To generate sufficient profit to finance future growth.
Growth- To grow the business at a manageable and challenging rate.
Image- To establish and build a community image. Asset to community.
Keys to Success
The keys to our success are:
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Marketing and Networking (getting our name visible in the community)
Relationship building (building and maintaining a loyal client base)
Quality Services (providing the best in client services by employing the best
employees)
Convenience (offering a variety of home care and assisted living services. i.e.
one-stop-shopping)
Competitive pricing for the quality and variety of services
2. 0 Company Summary
Mystic Meadows Home Care Services is a start up company that provides a variety of
home care services to help individuals remain independent in their own homes. In
addition, when staying home is no longer an option, our mission is to find the
appropriate assisted living option within our network to properly serve the client and
his/her family.
2.1 Company Ownership
The business is an LLC with a sub-S election, which is owned and managed by Mrs.
Ever Right.
2.2 Company Location and Facilities
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One room (12’x14’) in the owner’s home will serve as an office
Computer facilities will initially consist of the owner’s existing system
Telephone: one line currently services the location. A second line for business
purposes will be added shortly.
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2.3 Legal Considerations
Mystic Meadows Home Care will be operated as an LLC. This creates simplicity,
since little is required to begin operations: there is minimal paperwork and ongoing
annual reporting is not required. Salary for the owner will be withdrawn from the
year-end funds, once the business is established and profitable. Taxes will be paid via
the personal return of the owner; the company has filed for a sub-S election.
The owner has received an affirmative answer from the local planning division for
obtaining a home occupancy business license for the company to operate in a
residential neighborhood, since noise, traffic, and pollution are not factors to be
considered in this type of business.
The owner does not need a license with the state department of health to operate this
type of business in this state. (This will vary from state-to-state)
All necessary insurances have been acquired. The owner's current insurance is
through XYZ Insurance Company, who offers a full line of insurance coverage.
Office equipment will be insured for its full value by adding a rider to the existing
homeowner's policy. An additional policy for up to $2 million will be issued to cover
general comprehensive liability insurance and employee theft coverage. Workers
Compensation insurance will be acquired when employees are hired. Non-Owned
Automobile insurance has been acquired to cover client transportation.. Since this is a
small business there will be no benefits package. As the business expands, the issue
of benefits will be re-evaluated based on the needs of the qualified staff added to the
company.
2.4 Start-Up Summary
The start-up expenses amount to _______________, which allows for initial
insurance deposits, licenses, equipment, advertising, printing costs and software. In
addition to these start up costs, an initial balance of _________ will be placed in the
company account as working capital. Mrs. Ever Right will provide $ 5,400 towards
start-up costs
The numbers below should be edited to fit your estimated costs. Please use the Financial Forecast
Spreadsheets to assist in determining these figures.
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Start-Up Expenses
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Launch Homecare Start-Up Package……..……………………………...$_______
Office Rent……………………………………………………………….$_______
Insurance deposits (liability, bonding, auto, home, etc.) ...........................$_______
Licenses (local business license and state home care license) ..................$_______
Advertising in local newspaper .................................................................$_______
Advertising in yellow pages ......................................................................$_______
Printing of brochures and business cards (5000 each) ..............................$_______
Direct mailing of introductory letter, business cards brochures ................$_______
Accounting Software (QuickBooks) .........................................................$_______
Office equipment (cell phone and business phone)...................................$_______
House cleaning equipment ........................................................................$_______
Window washing equipment .....................................................................$_______
Personal care equipment ............................................................................$_______
Web site development (FrontPage and template) .....................................$_______
Total Start-up Expenses: .................... $________
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3.0 The Services
Mystic Meadows Home Care Services will provide an array of non-medical services
including:
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Housekeeping
Meal preparation
Laundry
Window washing
Wall cleaning
Oven cleaning
Shopping
Errands
Client transportation
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Companionship
Respite
Child care
Personal care
Pet care
Plant care
Safety and welfare checks
Handyman tasks
Services will be available 24 hours per day 7 days per week, including all statutory
holidays.
Assisted Living Placement
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FREE service to seniors and their families
Personalized tours
Negotiation on behalf of the client/family
Coordination of the placement and related care needs
4.0 Market Analysis Summary
The primary market for Mystic Meadows Home Care is comprised of seniors that
require assistance in order to remain in their own homes and communities. A
secondary group includes those who are unable to remain in their own home and
need to find an appropriate assisted living facility or home. The potential customer
group includes:
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The elderly;
The frail;
The housebound;
The terminally, chronically and acutely ill;
The physically and mentally challenged;
Those recently discharged from hospital;
Family caregivers requiring assistance with caring for their loved ones;
Those requiring assistance with caring for newborns/children;
Those needing assistance in developing life skills; and,
Able-bodied people wanting assistance with their home maintenance, and,
Accident victims
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Home Care Services are purchased by clients privately or by third parties who may contribute
wholly or partially to the costs. Third party agencies include:
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Insurance Companies including
health insurance and long-term
care;
Workers’ Compensation;
Health Ministries;
Human Resources
Ministries/Social Services;
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National Institutes for the Blind;
Senior Citizens Agencies;
Veterans Administration;
Long-term care;
Public Trustees.
Indian Affairs Agencies
Note: The statistics below are based upon a city with 500,000 people. Demographics
can be obtained at Census.gov for your specific area.
4.1 Market Segmentation
The primary market for Mystic Meadows Home Care will be the City of Someplace. It has
a population of approximately 500,000. A recent statistical analysis has revealed the
following age-related breakdown:
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217,750 fall within the ages of:
1 to 35
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217,750 fall within the ages of:
36 to 64
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64,500 fall within the ages of:
65 and over
The estimated percentage of people in each age group who will purchase home care
services or need assisted living services (i.e. Number of potential clients) is:
 Ages 1 – 35……….
.1%. (of 217,750) =
217.75 potential clients
 Ages 36 – 64………
.2% (of 217,750)
=
435.50 potential clients
 Ages 65 and over… 3.0% (of 64,500)
=
1,935 potential clients
 Total =
2,588.25 potential clients
An estimation of the projected billable hours to be obtained month-over-month is provided in the
financial projections at the end of this document.
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Below is an example of how to list your known competition in your service territory.
You will want to exchange these examples with actual competitors in your area.
4.2 The Competition
Known Competitors
There are two known competitors in the someplace area providing some form of home
care services. They are:
a. Someplace Home Care and Assisted Living Placement Services; and,
b. Quality Personal Care Services and Special Equipment
a. Someplace Home Care Services
Someplace Home Care Services is a non-profit, government-subsidized agency that
provides in-home and assisted living placement services to clients who are assessed at
an Intermediate Care Level or higher. To qualify for subsidization these clients must
require some form of personal care such as assistance with bathing before they are
eligible for non personal care services. The non personal care services provided are
basic housekeeping, meal preparation, and transportation to appointments. There are
many services not provided such as heavier cleaning, yard work, and out-of-town
transportation. Clients are charged according to their income, which is measured on a
sliding scale basis. In some cases there is no charge while in other cases, rates be as
high as $22/hour.
b. Quality Personal Care Services and Special Equipment
Quality Personal Care Services and Special Equipment is a privately owned and
operated business that focuses on providing personal care. The business does not do
housekeeping or other homemaking activities. Its secondary sideline is the sale of
special equipment such as scooters, wheelchairs, lifts, commodes, walkers, etc. that are
necessary for conducting the activities of daily living.
4.3. The Mystic Meadows Home Care Services Advantage
As mentioned earlier, Mystic Meadows Home Care Services is committed to providing
the best in client services by placing highly qualified personnel in our clients’ homes. It
is filling a need for a large variety of in-home services that are not provided by the
competition. Its niche is its ability to provide any type of home support activity needed
or wanted by the client. For example, ABC Home Care will do any housekeeping chore
including heavier cleaning, (washing walls, windows, cleaning stoves, stripping and
waxing floors), all forms of general housekeeping, preservation of foods,
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companionship, respite, handyman tasks, out-of-town transportation, pet and plant care - in short, it will provide whatever non-medical services the competition does not, with
the exception of selling any special equipment items.
Mystic Meadows Home Care Services will also supplement services that are government
subsidized. I.e. The government may pay for “x” number of services for a client and if
that client wants more, then it can be purchased privately from Mystic Meadows Home
Care Services.
In addition, Mystic Meadows offers assisted living placement services. This allows
Mystic Meadows to truly be a “continuum of care solution”. The healthcare community
and the public as a whole will see Mystic Meadows as a true all-in-one solution for
senior care.
5.0 Marketing Strategy
Mystic Meadows Home Care Services is a new business and, consequently, its top
priority is to develop an aggressive advertising and promotion strategy in order to
establish our business image and presence. It will focus on the following to establish and
grow the business:
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Networking and referrals,
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Traditional media advertising and promotion, and
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Web based promotion,
5.1 Networking and referrals
Mystic Meadows Home Care Services will establish relationships with various
individuals, agencies, organizations, and businesses to help develop new sources of
clients. We will introduce ourselves to these networking contacts and provide them with
our letter of introduction, business card and brochure. Word of mouth is the best
advertising and once a client base has been established we will ask clients for referrals.
Satisfied clients will generate repeat and new clients.
5.2 Traditional advertising and promotion
 Placement of Running Ads In The Local:
 Newspaper, classified, and display ads
 Telephone Yellow Pages
 Direct Mail:
 Introductory letter
 Brochure
 Business card
Follow-up mail-outs will be conducted every four months.
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 Participating in Trade Shows:
Set up an informational booth at local trade shows. Large numbers of people attend
these shows, where there is a good opportunity for exposure.
 Other Planned Initiatives:
 Speaking at seminars and Service Club Meetings.
 Designing and distributing company calendars, mugs, pens, and notepads.
 Placing flyers on bulleting boards and vehicle windshields.
 Public Relations
 Developing and purchasing “grand opening “ announcements and press releases
in the local newspaper and radio media.
5.3 Web Site Promotion
Mystic Meadows Home Care Services will develop a web site and will hire a web firm to
manage the SEO and Social Media strategies.
5.4 Pricing Strategy
Mystic Meadows Home Care Services will be providing a variety of home care services
and prices will be set on an hourly rate which will vary depending upon the service
provided. Our services will be competitively priced between the lowest and highest price
range for comparable services offered by other agencies. We must ensure that our prices
are perceived to be good value to our clients.
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Home Making Services .........................................$ 17.00/hr
Personal Care .........................................................$19.00 - $22.00/hr
- Mileage............................................................$0.55/Mile
Assisted Living Placement Services (FREE to the client)
o Care Homes………………………….50% of 1st and 2nd month’s rent
o Assisted Living Facilities……………50% of 1st month’s rent
Statutory Holiday costs are 1½ times the established rates.
Prices are subject to change and Do Not Include Relevant Taxes
5.5
Sales Strategy
Mystic Meadows Home Care Services will focus its sales strategy on effectively reaching
our target market (seniors) through networking and referral sources. Providing excellent
client service will result in referrals and repeat business.
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5.5.1 Sales Forecast
Since we are a new business it will take some time before we are known in the
community and to build a strong client base. We foresee a steady and gradual growth in
revenue in the first year followed by a 10% increase in revenue in the next two years. The
sales forecast is considered to be an estimate based on our market research and business
growth projections.
Please see the Projected Revenue Model in the financial projections at the end of
this document.
6.0
Management Summary
Mrs. Ever Right is the sole owner and manager of Mystic Meadows Home Care Services.
She is a Graduate of the California Institute of Technology where she majored in
Business Administration. Additionally, she has taken a number of health and supervisory
courses. She is a certified Care Caregiver. Mrs. Right has over twenty years experience
in the retail business and five years in the Home Care Business, where she served in
supervisory and management positions. A detailed resume is available upon request.
At present, the business does not have any full-time employees but does have a number
of people on standby to meet emerging needs. Mrs. Right has interviewed, referenced
checked, and conducted criminal record checks on a number of individuals who,
collectively, can provide service for any of the advertised services. Plans are for Mrs.
Right to start out doing most of the work herself until the business builds up its clientele.
As requests come in for service, employees will be hired to meet the volume and
diversified needs.
For the first three months, Mrs. Ever Right plans on working herself for 160 hours a
month. After that, she will resume managerial duties and delegate in home service to her
employees. Any requests relating to the Business Plan should be directed to Mrs. Ever
Right.
Mrs. Ever Right will be responsible for all aspects of the business including marketing,
staffing, accounting, financial control, and service delivery.
6.1 Personnel
Staff will be added as the demand for services grow and will include both part-time and
full time employees.
Employees will be remunerated based on their qualifications and type of service provided
and will be paid an hourly rate. A forecast of personnel costs is included in the financial
projections.
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7.0
Financial Plan
Below are the financial pro forma reports that forecast the first year of Mystic Meadows Home
Care. (These are found in the Financial Forecast Spreadsheets)
Financial Projections
Table of Contents
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Projected Profit and Loss Statement
Projected Revenue Model and Variables
Projected Cost of Services and Cost of Marketing and Sales
Projected Staffing Expenses
Projected Staff Headcount and Rates
Projected Marketing Activities
Projected General and Administrative Expenses
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