The easy-to-use financial model allows you to control in real-time all aspects of the P&L, cash flow, and balance sheet. Please see video below!
1.0 Executive Summary
The purpose of this business plan is to raise and examine the allocation of $125,000 for the development of an adult day care facility that will be based in Concord, New Hampshire. Adult Day Care Center, LLC (“the Company”) will provide full-day care services for families that need ongoing assistance with the care of elderly adults and people with developmental disabilities. The Company was founded and is owned by Peter Smith. The location will be able to provide care for up to 30 people.
1.1 The Operations
As stated above, Adult Day Care Center, LLC will provide comprehensive care for people that cannot be alone during the course of the day. These individuals will typically live with family members. The facilities will feature televisions, card games, video games, and other forms of entertainment. Ongoing events will be held at the facilities as well.
One of the most important elements of the Company’s operations is that the location will provide ongoing entertainment and activities for its enrollees. The business will have transportation available for weekly travel events to area museums, parks, and other facilities.
The Company will charge $100 per day. Management, at all times, will strive to keep the fees affordable for families in the Concord market.
The third section of the business plan will further document the usage of funds.
1.2 Financing
At this time, Management is seeking $125,000 via a business loan in order to establish the operations of the Adult Day Care Center. The terms of this financing are to be determined during negotiation. However, this business plan assumes that the Company will receive a 10 year loan carrying an 8% interest rate. The funding will be primarily used for the following:
• Location development in Concord
• Transportation vehicle
• Working capital
Moving forward, the Company could easily acquire additional rounds of capital in order to further fuel the growth of the business. Management may develop additional locations using lines of credit or business expansion loans. This event is not expected to occur within the next three years.
1.3 Mission Statement
Adult Day Care Center’s mission is to provide an affordable solution among families within Concord that need ongoing day focused assistance for their loved ones.
1.4 Management Team
Peter Smith has more than four years of experience operating an adult day care facility. He will be able to quickly bring the operations of this enterprise to profitability while expanding bottom line income on a yearly basis.
1.5 Sales Forecasts
1.6 Expansion Plan
After the third year of operation, Management may develop additional locations within New Hampshire. The Company may also acquire existing adult care facilities, which could be interested into the Company’s ecosystem.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Adult Day Care Center, LLC. The business is registered as a limited liability company in the State of New Hampshire.
2.2 Required Funds
Mr. Smith is seeking $125,000 in order to establish operations. He will contribute $25,000 towards the development of the Adult Day Care Center. The funds are to be used as follows:
2.3 Investor Equity
Peter Smith does not require an investor at this time. In the future, he may seek an equity partner as the Company expands.
2.4 Management Equity
Mr. Smith is currently the sole owner and member of Adult Day Care Center, LLC.
2.5 Exit Strategy
In the event that Management wishes to divest the business, a qualified business broker would be hired to manage the sale. Given the substantial economic stability of adult day care centers, the business could be sold for up to three times the previous year’s earnings. Mr. Smith has no intention of divesting the business for at least seven years.
3.0 Operations
As stated in the executive summary, Adult Day Care Center, LLC will provide a safe and secure environment for the needs of elderly people and people with developmental disabilities. The location will be able to provide care for up to 30 people on a daily basis.
In order to provide clients with an outstanding and engaging daily experience, the business will host events that focus on maintaining cognitive abilities while also providing entertainment. Multiple times per month, therapy animals will be brought to the location for the clients to engage with. The Company will arrange outings on a weekly basis that will include visits to parks, museums, lakes, and other areas of interest with a focus on natural environments.
The business will employ three staff members that will provide ongoing support for clients. As the Company expands, the Company will maintain a 10:1 client to employee ratio. An additional staff member will be hired to prepare meals and snacks.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This part of the business plan will focus on the current economic climate, the adult care industry, the competition, and the client profile.
At this time, the economy is doing reasonably well. Interest rates are returning to normalized levels while unemployment has remained very low. Inflation rates are declining, and the economy is poised for continued growth over the next three years.
However, any issues with the economy will have a negligible impact on the Company’s ability to remain profitable. The ongoing demand for adult day care services does not wane even during times of economic recession. The high gross margins generated will further contribute to the economic stability of the business.
4.2 Industry Analysis
There are currently 30,000 businesses that provide ongoing daycare focused services for elderly and developmentally disabled people. The industry generates in excess of $5 billion, and employs 138,000 people.
The growth of this industry is expected to remain strong in the coming years. As more people progress past the age of 65, the demand among families to have access to adult day care centers is expected to growth. At this time, approximately 18% of the population is over this year.
4.3 Customer Profile
Management will employ the following demographic profile when marketing the Company’s services to the Concord public:
• Annual household income of $75,000 to $125,000
• Will spend $500 per week on adult care services
• Lives or works within five miles of the Company’s location in Concord
Management has specifically picked the Concord market given its population density and wealth. A full analysis of the target market that you plan on entering should be completed for your specific market. Most importantly, you will need to examine the number of potential clients in your market, median household income, and median home value (as an indicator of the general wealth of the market).
4.4 Competition
In this section of the business plan, you will need to examine the ongoing competition that you will face as you develop your adult day care center. A general market radius of 10 miles should be examined. Here, you will need to indicate the number of competitors, their pricing, number of clients, and how they market their services within the market. You should also list why your business has competitive advantages over other care centers.
5.0 Marketing Plan
In order to rapidly reach 100% occupancy for the adult day care center, the Company will employ a number of marketing strategies that will inform the Concord market of the business’ location. This will include a mixture of online-focused and direct outreach programs.
5.1 Marketing Objectives
• Develop referral relationships with geriatric focused physicians as well as medical professionals that provide services for developmentally disabled people.
• Maintain an expansive online presence that uses both SEO and social media marketing specific for the Concord market.
• Develop referral relationships among families that use the Company’s services.
5.2 Marketing Strategies
The Company’s website will showcase all aspects of the programs offered by the Adult Day Care Center. The platform will undergo local/regional search engine optimization specific for the Concord market. Management will have a number of videos created that showcase the facility and how clients interact with the center’s staff. The platform will be mobile friendly.
The Company will also acquire mailing lists that include the names and addresses of families that have indicated that they currently care for an elderly people in their home. These highly targeted mailed advertisements will be distributed within 10 miles of the Company’s location.
As it relates to social media, the Company will maintain profiles on Facebook, LinkedIn, and Instagram. Of special importance to the Adult Day Care Center’s operations is LinkedIn. Here, the Company will use advertisements that are specific to professionals that indicate that they work with older people or people with disabilities. This will further create new connections for referrals throughout the life of the business.
The Company will also maintain ongoing relationships with social workers, therapists, and related allied health professionals that frequently work with families that live with a person that may need adult day care services. Over the next three years, these ongoing relationships will ensure that the Company operates at or near 100% capacity at all times.
5.3 Pricing
The Company will charge $100 per day for its services.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
This section is optional. If you would like to include your professional background you should detail information about your education, experience in the adult day care center industry, and other related information.
7.0 Financial Plan
7.1 Underlying Assumptions
• Adult Day Care Center, LLC will acquire $125,000 to launch operations.
• Peter Smith will contribute $25,000 towards the development of the business.
7.2 Sensitivity Analysis
Adult Day Care Center’s revenues are not sensitive to negative changes in the economy. Among families that need to provide round the clock support for an elderly or developmentally disabled people, this demand remains at all times. Th business will produce highly predictable revenue, which will further ensure profitability.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
