1.0 Executive Summary
The purpose of this business plan it to showcase the development of a non-medical in-home care agency based in Round Rock, Texas. Austin Helpers LLC (“the Company”) will provide its services throughout the entirety of the Austin area. At this time, the Company is seeking a revolving credit facility ($100,000) to establish operations. Full scale revenue generating operations are expected to start at the beginning of next year. The Company’s President/CEO is Matthew Deutsch.
Through its network of retained caregivers, the Company will provide older individuals and people with special needs with daily assistance. The scope of the Company’s services will include companionship, transportation, housekeeping, medication reminders, assistance with grooming, and related services that are permitted by non-medical caregivers. The Company will charge $30 per hour for its services.
The Company will directly employ all caregivers. Substantial training will be provided so that each client receives an exceptional experience regarding their day-to-day needs.
The services offered by Austin Helpers will be further discussed in the third section of the business plan.
The Financing
Austin Helpers is seeking a $100,000 SBA backed working capital line of credit to establish its operations in Round Rock. This business plan assumes that the Company will receive a 10-year commitment carrying an 8% interest rate due on the drawn down balance. The funds will be principally used for establishing the Company’s location while providing capital for recruitment and payroll as the client base is established. The Founder will provide $15,000 toward the venture.
Moving forward, the Company could easily have its working capital line of credit expanded as Austin Helpers grows. However, it is unlikely that the Company would require additional capital unless satellite locations are established in Texas. The Company will use its retained earnings to finance growth.
Expansion
Over the next five years, Austin Helpers will further expand the scope of its marketing campaigns throughout Round Rock and Austin. A major component of the Company’s growth will come from the ongoing hiring of qualified and vetted caregivers that will render non-medical care for older individuals and people with special needs. In the future, the Company may include skilled care services which could be introduced easily given the established brand name of the business. However, the integration of skilled care is not expected to occur within the first five years of operation.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
A RLOC of $100,000 is sought to establish the operations of Austin Helpers in Round Rock. The Founder (Matthew Deutsch, RN) will contribute $15,000 toward the venture. The loan and investment are to be used as follows:
2.2 Management Equity
Matthew Deutsch retains a 100% ownership interest in the business.
2.3 Exit Strategies
As non-medical care firms generate highly recurring revenue, the demand to acquire these types of enterprises is enormous. The business, should it be financially prudent to do so, could be easily sold to a third party that is seeking to enter this industry via acquisition or to an established agency seeking to expand their operations. Historically, these types of enterprises command a P/E ratio of three times earnings.
3.0 Operations
Through its location in Round Rock, the Company will provide exceptional non-medical care rendered by highly qualified and trained professionals. The scope of the Company’s services will include assistance with dressing, grooming, transportation, light housekeeping, and meal preparation. The Company’s caregivers will also provide medication reminders as they will not be permitted to dispense medication. The Company will charge $30 per hour for services rendered. All payments will directly come from patients.
It should be noted that to provide a safe and secure environment for clients, the caregiver will have the contact information for all medical personnel including physicians, specialists, and mental healthcare professionals. All caregivers will be trained to provide first-aid and CPR in the event that there is an emergency.
4.0 Overview of the Organization
4.1 Registered Name
Austin Helpers LLC. The business is registered as a limited liability company in the State of Texas.
4.2 Commencement of Operations
Revenue generating operations will commence in first quarter of next year.
4.3 Mission Statement
Austin Helpers’s mission is to provide affordable, end-to-end solutions for people that need ongoing support.
4.4 Vision Statement
By the fifth year of operation, Austin Helpers will become a leading agency for non-medical home care.
4.5 Organizational Objectives
• Establish ongoing relationships with referring healthcare partners throughout the Austin area.
• Implement a wide-ranging marketing campaign that focuses on the use of both traditional marketing and online marketing.
• Adhere to all regulations and laws as it relates to providing non-medical care in Texas.
• Use targeted social media strategies among people that have recently conducted searches for non-medical care.
• Implement policies that will guide the continued growth of the business over the next five years.
• Provide gainful employment opportunities for the Company’s staff.
• Engage in a wide-ranging recruitment campaign to onboard compassionate staff members.
5.0 Strategic and Market Analysis
5.1 External Environment Analysis
This section of the business plan will showcase the current economic climate, non-medical care industry, client profile, and the ongoing competition that the business will face moving forward.
Currently, the economic climate with the United States is moderately strong. As a result of continuing changes in global trade policies, there has been a modicum of uncertainty introduced into the economy. However, global central banks are taking appropriate measures through fiscal policy to reduce the risks related to inflation. This will prevent an economic recession.
It should be noted that the demand for non-medical in-home care will remain strong in any economic climate given that this is a necessity for many families. Austin Helpers, through its operations, will produce substantial income on a monthly basis. The business will earn exceptional contribution margins as a function of the per-hour fees paid to staff members. Furthermore, the Company will operate with a lean business model that will further contribute to economic stability.
5.2 Industry Analysis
Currently, the demand for in home care is a $150 billion industry that spans more than 500,000 companies operating within this market. The industry employs slightly more than two million people. The demand for non-medical in-home care services is expected to increase in the coming years as people from the Baby Boomer population continue to enter their later years. In Austin, this demand will be especially strong given the large population of people over the age of 65. The compounded annual growth rate of the industry is expected to remain near 8% in next five years.
5.3 Customer Profile
Any older individual or individual with special needs is a potential client of Austin Helpers. The demand for in-home non-medical care encompasses the entirety of the socioeconomic spectrum. The following profile will be used during the course of marketing:
• Between the ages of 60 to 80
• Annual household income exceeding $80,000
• Live within 25 miles of the Company’s centralized management location
Based on the target market radius, the total demand for in-home care services for elderly people and developmentally disabled people is $961 million per year. This presents an enormous opportunity for the Company to grow in the coming years.
The greater Austin economy has substantial economic staying power. This Austin metropolitan area is home to 2.55 million people. The median household income is $98,500 which is $24,000 over the state median average in Texas. Of this population, approximately 12% of the population is over the age of 65. This correlates to 306,000 people within the Total Addressable Market.
As it relates to inflationary issues, Austin has historically performed very well during times of higher-than-expected inflation. As a function of unemployment, which serves as the bellwether of the quality of the economy, Austin’s economy is only impact 44% by continued increases in inflation as compared to the national economy. Furthermore, changes in GDP growth rate (including during times of economic recession) have only 50% of the impact that is felt on the national level. This substantial level of economic stability will further contribute to the economic stability of the business.
5.4 Competition
This business plan has been written as a sample only. If this was for a client engagement then a substantial competitive analysis examining the scope, scale, size, and estimated annual revenue will be provided among major market suppliers within the target market.
6.0 Key Strategic Issues
6.1 Sustainable Operations
The Company will be able to maintain successful business operations because of the following:
• The significant demand in Round Rock and the Austin area will ensure that the business will reach profitability in its first year.
• The Company can quickly onboard caregivers as no individual licensure is required to provide non-medical care.
• Austin Helpers will operate with a substantial degree of economic stability given the demand in this market and the necessity of non-medical home care.
• The Company will take a personalized approach for each client’s needs, which will provide a major differentiating factor.
• As needed, the Company can access growth capital to further expand its operations.
6.2 Basis for Growth
Austin Helpers will grow through three avenues:
• Continued expansion of the Company’s marketing operations throughout Round Rock and surrounding markets.
• Development of satellite locations within Texas to provide service to other areas.
• Potential integration of skilled care services (after the fifth year of operation).
7.0 Marketing Plan
7.1 Marketing Objectives
• Establish referral relationships with medical providers within Austin.
• Engage in regional marketing campaign through advertisements among lifestyle publications.
• Maintain an expansive online presence.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• Austin Helpers will establish its operations by hiring three caregivers within the first year of operation.
• First year revenues will reach $413,000.
Year 2
• The Company will expand its operations by hiring additional staff while expanding the scope of its marketing operations.
• Revenue will reach $826,000.
Years 3-5
• Through Year 3 to Year 5, the Company will expand the scope of its marketing campaigns to onboard additional clients while concurrently hiring vetted caregivers.
• Revenue will reach $1.9 million by the fifth year of operations.
7.4 Marketing Strategies
The Company will use a number of marketing strategies that will drive substantial interest in Austin Helpers from the onset of operations. During the development period, the Company will establish ongoing referral relationships with medical doctors and mental health professionals that have recommended that an individual receive ongoing non-medical support on a day-to-day basis. These referral relationships with be an invaluable source of new business throughout the life of the Company.
In regards to the Company’s website, this will be a comprehensive platform that showcases the entire range of non-medical services offered. This platform will undergo regionally focused search engine optimization specific for the Round Rock and greater Austin market. On an ongoing basis, new content that showcases the operations of Austin Helpers will be added.
Beyond the Company’s website, the business will use multiple social media platforms to further increase brand visibility. On LinkedIn, the Company will focus on establishing relationships with individuals that list their profession as a non-medical homecare professional. This will reduce the lead time required to onboard vetted personnel.
The Company will also place advertisements in regional lifestyle magazines and publications that showcase the wide range of non-medical services offered. The business will work with a qualified advertising business so that these ads can be quickly placed.
8.0 Organizational Plan
8.1 Corporate Organization
8.2 Organizational Budget
9.0 Financial Plan
9.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• The Company anticipates that its growth rate will be 28% per year.
• The business will acquire $100,000 (via an SBA line of credit).
9.2 Financial Highlights
• The Company’s after-tax cash flow will be used to expand operations on a year-on-year basis.
• Austin Helpers can acquire additional capital as necessary to expand operations.
• The demand for non-medical in-home care services is increasing.
9.3 Sensitivity Analysis
Austin Helpers’s revenues are almost fully immune from challenging economic climates. The demand among families in Austin to have their loved ones have ongoing care, in a non-medical capacity, is incredibly strong. The Company’s will generate highly predictable income on a monthly basis by providing exceptional caregivers that tend to the daily needs of each client. Furthermore, the Company will maintain low operating costs (outside of personnel costs) which will allow for ongoing expansion on a yearly basis
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
Appendix A – SWOT Analysis
Strengths
• The Company will generate substantial revenues from the wide range of non-medical care offered.
• Through reinvestment, the operations of the Company are highly scalable.
• Given the wealth of the Round Rock area, the Company will be able to thrive even during challenging economic climates.
• An experienced President/CEO (Matthew Deutsch) who will be able to bring the operations of Austin Helpers to substantial profitability in the coming years.
• Low operating costs will allow for substantial capital to be allocated towards expansion.
• Very strong demand for non-medical care services given that 20% of the Round Rock population is over the age of 65.
Weaknesses
• Severe economic recessions could impact operations (limited risk given the necessity of in-home care).
• Ongoing competition from established providers in the Round Rock and Austin market.
Opportunities
• Expansion of the Company’s marketing campaigns to onboard a greater number of clients.
• Expansion of the number of satellite locations operated by Austin Helpers.
Threats
• Inflation could cause the operating costs of the Company to increase.
• Liabilities as of the result of an accident.
Appendix B – Risk Analysis
Development Risk – Low
The protocols that Austin Helpers will use to promote its non-medical agency operations in Austin have been developed over the past twelve months by Matthew Deutsch. At this time, Management is seeking to secure an SBA based line of credit to commence operations. Once this is completed, the Company will need to implement its wide-ranging marketing campaigns to onboard clients.
Financing Risk – Low/Moderate
A revolving credit facility of $100,000 is required to establish Austin Helpers’ operations. The risks related to this line of credit are abated given that the business will generate highly recurring revenue from its operations. The demand for non-medical in-home care will remain strong in any economic climate.
Marketing Risk – Low/Moderate
Foremost, the Company intends to conduct a substantial amount of direct outreach in order to onboard clients throughout the Austin area. This will be complemented through the use of multiple online driven marketing strategies that will create significant awareness for the business.
Management Risk – Low
The Company’s Founder/CEO (Matthew Deutsch) has extensive experience with the development of non-medically focused in-home care agencies. He will be able to effectively expand the scope of the Company’s operations once the initial development period is completed.
Valuation Risk – Minimal
The valuation risk is offset by:
• Immense demand within the Round Rock market for comprehensive non-medical home care.
• The operations of Austin Helpers are highly scalable.
• Moderate competition among companies that provide the same scope of services as Austin Helpers.
Exit Risk – Very Low
If it is financially prudent to do so, Austin Helpers would be sold to a third party for a substantial price to earnings multiple. In this event, a business broker would be hired to maker the Company to an entrepreneur that is seeking to enter this industry or to a larger-firm seeking to expand via acquisition.