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1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the continued development of an in-home healthcare service based in Houston, Texas. Home Healthcare Service, LLC (“the Company”) was founded by Jane Jones. The business will provide comprehensive in home care via registered nurses and in-home care aides. In most instances, the Company will have these retained personnel as independent contractors. The business will provide services for elderly people, people with developmental disabilities, and people that are in need of temporary care.
1.1 The Services
The primary revenue center for the business will come from the ongoing in home care services that will be rendered by registered nurses and properly qualified aides. The business will provide both skilled care and general in-home help services to its client base. The Company will typically charge $25 to $50 per hour depending on the level of care needed.
In regards to billing, the Company anticipates that it will receive about 30% of its fees directly from patients. The remaining revenue will come from publicly funded healthcare systems (Medicare and Medicaid) as well as private insurance.
The third section of the business plan will further document the in home care services offered by Home Healthcare Service, LLC.
1.2 Financing
Mr. Doe is seeking to raise $125,000 via a loan from a financial institution. This document assumes that the Company will receive a ten-year loan carrying a 9% interest rate on the principal. The funding will be used for the following:
• Location development in Houston, Texas
• Initial marketing
• General working capital
• Furniture, fixtures, and equipment
Given the highly predictable streams of revenue generated on a monthly basis, the Company is in a strong position to acquire additional rounds of funding as necessary. This additional capital would allow the Company to expand its operational infrastructure while potentially acquiring home healthcare services that can be acquired.
1.3 Mission Statement
Home Healthcare Service’s mission is to provide comprehensive and cost-effective in home care solutions for its clients.
1.4 Management Team
Jane Jones has been a registered nurse for the past five years. Through her extensive experience in the field of in-home healthcare, she will be able to bring the operations of this business to substantial profitability over the next five years.
1.5 Sales Forecasts
1.6 Expansion Plan
The Company will continue to expand the geographical scope in the greater Houston area in which the business conducts its operations. Management may acquire existing home healthcare agencies that can be integrated into the Company’s ecosystem. A potential acquisition would not occur until after the third year of operation.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Home Healthcare Service, LLC. The business is a Texas based limited liability company.
2.2 Required Funds
Ms. Jones is currently seeking $125,000 of capital via a loan in order to commence full scale operations. The funding will be used as follows:
2.3 Investor Equity
Ms. Jones is not seeking equity capital at this time, The business is a strong candidate for private investor financing in the future.
2.4 Management Equity
Jane Jones is the sole owner of Home Healthcare Service, LLC.
2.5 Exit Strategy
As home healthcare agencies are wholly immune from negative changes in the economy, these businesses are able to receive a substantial price to earnings multiple. Generally, these companies can be sold for up to four times their previous year’s net income. Ms. Jones has no plans on selling to the business for at least five to seven years.
3.0 Home Healthcare Services
As stated in the executive summary, Home Healthcare Service will provide a broad range of in home care that covers the entire spectrum of what a client can possibly need. As it relates to skilled care, these services will be rendered by retained registered nurses. These individuals will be able to directly administer medicines while taking vital signs. It is expected that these individuals will help people that have recently undergone surgery or are in need of round-the-clock support as it relates to their day-to-day care which involves medical intervention. Skilled care services will be billed at $50 per hour. These fees maybe higher if the nurse requires specialized education.
As it relates to aides that will provide support for clients, these individuals will assist with dressing, provide companionship, prepare meals, and provide incidental transportation as needed. The fees for these services will be approximately $25 per hour.
It should be noted that all provider retained by Home Healthcare Service will be required to undergo both a comprehensive background check as well as a drug test. The Company will use a third-party service to verify the information that each candidate provides on their application.
The business will carry all necessary insurance policies that will protect the business in the event that an injury occurs. The business will retain legal counsel that will ensure that the business remains within the letter of the law at all times.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Currently, the economic climate in the United States is reasonably strong. Inflation is now on a downward trend as the US Federal Reserve has taken aggressive measure to reduce the inflation rate. It is expected that interest rates will decline in the near future given these newly implemented economic policies.
It should be noted that any ongoing issues with the economy will not impact the Company’s ability to generate revenue and remain profitable. Home healthcare agencies and services remain in demand during all economic climates. Additionally, in many cases – private insurance and publicly funded healthcare systems will pay the services rendered to clients.
4.2 Industry Analysis
Within the United States, there are over 450,000 companies that provide in-home care services to the general public in a skilled and general aide capacity. The industry’s revenues have exceeded $100 billion in each of the last five years. The industry employs approximately 1.9 million people.
This industry will continue to expand over the next ten years as more people become older in this country. The age demographics within the United States are skewing older as younger people are not having children at the same rate that was common twenty to thirty years ago. Given this demand, the Home Healthcare Service is in a strong position to continue to grow within this industry throughout the life of the business.
4.3 Customer Profile
Any person that requires ongoing care within their home is a potential client of Home Healthcare Service, LLC. The Company’s client base will include elderly people, people recovering from major surgery, and people with special needs that need ongoing support through their daily lives. Management anticipates that the average client will have a median household income of $75,000 to $125,000 per year. The business will provide its services throughout the entirety of the Houston metropolitan area.
In this section, you should focus on the core demographics that you will target as you develop your home healthcare agency. Specific profiles should include median household income, median home value (a gauge of wealth), and the distance that your retained care staff are willing to travel from the Company’s central office location.
4.4 Competition
The ongoing competition that most home healthcare agencies and services face in their respective markets is substantial. This is due to the fact that these enterprises produce highly recurring streams of revenue and they remain economically viable at all times. In this section, you will need to determine the number of home healthcare services that operate within your specific market. Attributes of these businesses that should be included in your analysis is rating, length of time in business, approximate revenues, and the approximate number of people that work on behalf of those entities.
5.0 Marketing Plan
Given the competition that home healthcare services face in their markets, the Company will use a number of marketing strategies that will create an immense differentiating factor. The marketing and advertising strategies will encompass direct outreach programs as well numerous online methods of promotion.
5.1 Marketing Objectives
• Develop ongoing relationships with referring hospitals, medical practices, and among allied healthcare practitioners.
• Maintain a content-rich website that will showcase the operations of Home Healthcare Service, LLC.
• Create direct outreach programs among social workers that may recommend in home care for their respective clients.
5.2 Marketing Strategies
First, the Company intends to inform medical and mental healthcare practitioners of the services that are offered. In many cases, a physician or related practitioner must prescribe in home care for the patient if they want to be able to receive insurance reimbursement. The Company, via its staff, will directly reach out to medical practice offices, social workers, psychologists, psychiatrists, and other professionals that will be supportive when these types of services are needed.
The Company’s website will showcase all of the skilled and in-home aide care services that can be provided by the business. Most importantly, the Company will hire a firm that specializes in regional search engine optimization. Most likely, this firm will be based in the greater Houston metropolitan area. This business will ensure that when searches for home healthcare agencies or home healthcare services are completed for this market – the business will appear frequently in the body of the search results.
Home Healthcare Service, LLC will also maintain a moderate presence among social media platforms. This is important for two reasons. First, it will further increase the brand name visibility of the business. It will also allow the Company to more easily recruit nurses and in-home care aides that can render services on behalf of the business.
The Company will also engage specialized print advertisements that circulate throughout the greater Houton metropolitan area.
5.3 Pricing
For skilled care, the business will charge $50+ per hour. For in-home aide services, these fees will range from $20 to $30. Additional fees may be charged for incidental transportation.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
As it relates to your biography, you should indicate all experience that you have specific for the home healthcare agency industry. This includes a discussion of your educational background as well as any relevant licensure that you may hold.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• The Owner will acquire $125,000 of capital via a SBA loan.
• Jane Jones will contribute $50,000 towards the venture.
• The business will settle all short-term payables on a monthly basis.
• The business will use a third-party billing agent when processing its accounts receivables.
7.2 Sensitivity Analysis
Home Healthcare Service’s revenues are not sensitive to negative changes in the economy. People that have specialized medical needs will continue to use the Company’s services in all economic climates. The business will have highly controllable operating costs that will further ensure that the Company remains economically viable while servicing all underlying financial obligations.
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
