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1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a home healthcare agency while showcasing the expected financials and operations over the next three years. The Home Healthcare Agency, Inc. (“the Company”) is a New York based corporation that will provide in home nursing and assisted living to customers in its targeted market. The Company was founded by John Doe.
1.1 Operations
As state above, the Home Healthcare Agency is in the business of providing in-home healthcare services that will allow elderly and developmentally disabled people that ability to have an affordable in-home living aide that will assist them in their day to day activities. The Company will also retain a number of healthcare professionals in the event that more significant treatment is needed or in the event of an emergency. In addition to the in-home services, the Company will have its aides take their patients out so that they are not constantly confined to their homes. This is especially true for people that are still mobile and active but no longer have the ability to operate a car. The third section of the business plan will further describe the services offered by the Home Healthcare Agency.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Home Healthcare Agency’s mission is to become the recognized leader in its targeted market for in home nursing and assisted living services.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the healthcare industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals with home healthcare needs within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Home Healthcare Agency, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Home Healthcare Agency requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Home Healthcare Agency, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Home Healthcare Agency. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Operations
The primary service offered by the Company is the direct in-home living assistance for people that are unable to properly care for themselves. This includes assisting elderly people with the day to day care and keeping elderly people company. Injuries among elderly people are frequent, and by having an in-home healthcare aide, the Company’s clients can rest assured that they will have fewer issues with their daily lives. Additionally, the Home Healthcare Agency’s staff will engage our clients with many projects, activities, and trips that are not offered by institutional facilities. The business seeks to provide these people with an alternative to the uncompassionate facilities of normal mental health institutions. Management will only hire nurses and assisted living aides that truly seek to improve the quality of life for clients in their homes.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the in home healthcare industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Current, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
As with all healthcare companies, the demand for in-home care does not decline during challenging economic climates. The demand among families to have their loved on properly cared for will remain strong even during recession.
4.2 Industry Analysis
There are over 19,000 assisted living service companies in the United States. Each year, the industry generates over $49 billion dollars in billable revenue. The industry also employs more than 1,000,000 people, and provides average annual payrolls of over $22 billion dollars. The assisted living industry has grown tremendously over the past fifteen years. According to the last economic census, the industry’s five year growth rate is 31.3%. This exceptional growth is attributed to the general public’s acceptance and compassion for developmentally disabled and elderly people. Large institutions that cater to the needs of the developmentally disabled are becoming less popular because of their cold nature. Developmentally disabled people and their primary caretakers are quickly adopting in-home assisted living services as an alternative to traditional institutional care.
4.3 Customer Profile
All of the Company’s clients will be developmentally disabled and elderly people that require full time assisted living services. Mr. Doe expects that clients will have a range of developmental and old age disorders, but are able to live within their own homes. Management anticipates that the average client will be between the ages of 25 and 85, and they will have the desire to live semi-independently at not at an assisted living facility.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Home Healthcare Agency intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Home Healthcare Agency.
5.1 Marketing Objectives
- Establish relationships with referring physicians within the targeted market.
- Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
The Company will use a referral network from doctors, surgeons, hospitals, and post operative clinics. As such, it is imperative that the Company develop these relationships with other medical professionals for the local supply portion of the business. Many insurance carriers and Medicare/Medicaid require that a physician authorize the purchase of certain home healthcare services. The Company will use both traditional and experimental forms of marketing to inform, educate, and sell the Company’s service. Traditional means of advertising will include print and media advertising. Finally, the business will maintain an internet website that will provide each prospective client or current primary caregiver (friend or family member) with a complete brochure of the background and services provided by the Company. This website may also feature a log-in for clients and their families to track incurred expenses and update billing information. This functionality would not be developed until the business is profitable and a cost benefit analysis is performed. However, this is becoming a common trend among medical service and care providers, and Management will develop these ancillary benefits to retain a strong competitive advantage.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
7.0 Financial Plan
7.1 Underlying Assumptions
- The loan will have a 10 year term with a 9% interest rate.
- The Owner will acquire $100,000 of debt funds to develop the business.
- The Home Healthcare Agency will have an annual revenue growth rate of 16% per year.
7.2 Sensitivity Analysis
The Company’s revenues are not subject to the overall changes in the economy. Developmentally disabled and elderly people require assisted living services regardless of the overall economic climate. As such, the Company does not expect that economic recessions or downturns will affect the overall profitability of the Company. Additionally, much of the revenues generated from the Company will be paid for by public health systems. As this is a health and medical services related business, the Company is insulated from any changes in the economy.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statement
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 Breakeven Analysis
7.9 Business Ratios
