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1.0 Executive Summary
Senior Transportation Service, LLC (“the Company”) was founded by Jeffrey Peters. The Company will provide non-medical transportation for senior citizens throughout Myrtle Beach, South Carolina. At this time, the Company is seeking $150,000 via an SBA equipment loan in order to acquire three vehicles for the business’ fleet. Given the immense demand for these services among older people, Management will be able to aggressively scale operations over the next three years.
1.1 The Services
The business intends to acquire two sedan vehicles and one minivan in order to provide comprehensive transportation for older people or people that cannot drive to and from their destinations in Myrtle Beach. It is expected that most people will use these services when traveling to medical facilities. The business will typically charge $2.00 per mile traveled or a flat fee of $50 per hour.
In order to ensure that the business receives ongoing orders for senior transportation, the business will work with nursing homes, assisted living facilities, independent living facilities, and other entities that provide services to senior citizens. The Company will also coordinate its efforts with medical entities when individuals need to be transported from their homes to physicians’ offices, medical clinics, and hospitals.
The broad range of senior transportation services offered by the Company will be further discussed in Chapter Three.
1.2 Financing
The $150,000 of SBA equipment financing sought in this document will be used to acquire three vehicles that can provide non-emergency medical transportation for its clients throughout its targeted Myrtle Beach market. The entirety of this financing will be used for that purpose.
Mr. Peters will provide an investment of $35,000 which will cover business development costs, initial payroll, and marketing. Given that this is a highly scalable enterprise, the Company could acquire additional financing as needed to acquire new vehicles for senior transportation and non-emergency medical transportation. The business may also use leases to expand the fleet of sedans, minivans, and vans that are used during the course of operations.
1.3 Mission Statement
Senior Transportation Service, LLC’s mission is to provide cost effective transportation services for senior citizens in the Myrtle Beach market.
1.4 Management Team
Jeffrey Peters has been involved in the field of non-emergency medical transportation over the past four years. He, along with the Company, are properly licensed to provide these services within the State of South Carolina. He is committed to providing an outstanding livery experience for its clients.
1.5 Revenue Forecasts
1.6 Expansion Plan
After the first year of operation, the Company will add new vehicles to its fleet. Each year, the Company will acquire at least one new sedan and one new minivan in order to expand the operational capacity of the business. Senior Transportation Service, LLC may also expand into other regional markets in South Carolina as well as the Mid-Atlantic United States.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Senior Transportation Service, LLC.
2.2 Required Funds
An SBA equipment loan of $150,000 will be acquired to acquire the vehicles discussed in this document. The aggregate capital needed to launch operations are to be used as follows:
2.3 Investor Equity
Although the business is not seeking an equity partner at this time, Senior Transportation Service would be a strong candidate for this type of financing in the future.
2.4 Management Equity
Jeffrey Peters currently retains a 100% ownership interest. In the future, this ownership structure may change if the business takes on an equity partner or provides key employees with an ownership stake in Senior Transportation Service, LLC.
2.5 Exit Strategy
Given the immense need and demand for senior transportation services, the Company could easily find a buyer within twelve months time. However, Mr. Peters intends to develop this Company into a widely recognized regional firm that provides comprehensive senior transport and non-emergency medical transportation services. In the event of a business sale, the Company will work with a valuation firm that specializes in this industry while concurrently working with a business brokerage to market the business.
3.0 Services
The Company’s initial fleet will consist of two sedans that will be used for providing transportation to and from a client’s home or from their assisted/independent living facility. On average, the Company will produce revenues of $50 per hour. It should be noted that these services, while primarily for medical visits, can also be used for general transportation among older people that need to go to other locations (such as friends’ or relatives’ homes).
The Company will retain qualified EMTs to operate the business’ minivan vehicles. The vans will be properly retrofitted so that they can accommodate a wheelchair or stretcher. These services will be offered on a non-emergency basis only. In the future, and as Senior Transportation Service expands, the Company may acquire ambulatory vehicles that can provide a greater scope of comprehensive transportation services among people that have specific medical needs. However, this event would not occur until after the third year of operation given the expanded licensure, insurance, and other costs of operating in this capacity.
The business will partner with numerous medical entities throughout the greater Myrtle Beach area that will place direct transportation orders with the business or provide referrals when senior transportation services are needed. Moving forward, the Company may develop a proprietary application (for iOS and Android) that will allow ongoing users to make reservations for transportation services from their phones.
In regards to employment, the Company will conduct thorough background checks on each employee while concurrently providing proper training specific to the needs of traveling senior citizens.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Although not directly a healthcare business, senior transportation services enjoy the same economic advantages and benefits of similar firms. This is due to the fact that older people often lose their ability to operate a motor vehicle. Companies like Senior Transportation Service, LLC are in a strong position to generate profits at all times.
In regards to the economy, there are currently no issues that would impact the Company’s ability to launch and expand its operations over the next three years. The capital costs as a function of revenue is relatively low, and the Company will be able to acquire additional vehicles for expanded transportation services on an as-needed basis.
Given the complexities of this business, the Company will always retain a properly qualified attorney in order to ensure that Senior Transportation Service, LLC maintains all necessary licensure and insurance to properly operate within the State of South Carolina.
4.2 Industry Analysis
Currently, there are 200,000 companies that provide specialized personal transportation services throughout the United States. Each year, senior transportation services produce $13 billion of revenue. It should be noted that these figures may be higher than reported given that taxi companies provide these types of services on an incidental basis.
This industry is poised for significant growth over the next ten years. Although ridesharing and e-hailing services have gained prevalence, these services do not encompass the unique travel needs of senior citizens and nor do they provide non-emergency transportation services. As more people within the Untied States become older, it is expected that more senior focused transportation services will enter the market.
4.3 Customer Profile
Any person that is a senior citizen that is unable to operate a vehicle is a potential client of Senior Transportation Service, LLC. The Company has specifically chosen the Myrtle Beach market as the number of people over the age of 65 is substantially higher than the national average for other major metropolitan areas. Although senior citizens will remain as the primary customer base, the Company will also provide services to others that are unable to operate a vehicle due to injury or developmental disorders.
The Company’s secondary customer base will consist of independent living facilities, nursing homes, group homes, and medical entities that will call upon the business when their residents, patients, and clients need non-emergency medical transportation. The business, as it enters new markets throughout the Southeastern and Mid-Atlantic United States, will conduct in-depth market analysis before establishing new operating locations.
4.4 Competition
In any market where there is a substantial population of senior citizens, there are always a number of fleet operators that provide senior transportation services and non-emergency medical transportation. One of the ways that Senior Transportation Services, LLC will maintain a strong differentiating factor is by using vehicles that are brand new with leather interior. The Company will source high-end sedans and minivans for when rendering its services.
Moving forward, the Company will create a further differentiating factor by integrating mobile device applications into the business’ operational ecosystem. This will allow for transportation to be more conveniently and more quickly arranged by ongoing clients of the business.
When developing a competitive analysis for your senior transportation business, you will need to examine all companies that provide similar or identical services within your market. This analysis should include the number of vehicles that are in their fleet, their fees, and if they have any specific attribute that has allowed them to operate successfully over a significant period of time.
5.0 Marketing Plan
As has been one of the central themes of this document, the demand for both senior transportation and non-emergency medical transportation services in Myrtle Beach is substantial. The Company will use a regionally focused marketing campaign in order to create substantial awareness among the demographics discussed in Chapter Four.
5.1 Marketing Objectives
• Develop relationships with EMT training schools and driving schools in order to recruit properly licensed drivers.
• Foster ongoing relationships with medical entities, assisted living facilities, nursing homes, group homes, and organizations that work with people that have developmental disabilities.
• Leverage the latest in reservation and booking technology in order to develop an ongoing user base at the start of operations.
5.2 Marketing Strategies
In order to ensure that Senior Transportation Services, LLC receives substantial volume, the Company will work directly with the numerous companies that provide services to elderly people throughout this market. The business will distribute substantial information packages that showcase the fleet of high-end sedans and minivans that can comfortably transport clients to and from their destinations in Myrtle Beach. The business will acquire large mailing lists of companies that operate in this capacity, which will be sourced from a regional marketing firm.
In addition to working with medical entities, the business will coordinate efforts with social workers that often work with senior citizens. These social workers are expected to refer both older people as well as people with disabilities to use the Company’s services. An additional source of referrals will come from surgical clinics that need to have post-operative patients returned to their homes as well as for subsequent checkups.
One of the key components to the Company’s rapid growth will be the continued integration of application-based technologies. Once the business establishes a highly predictable stream of revenue, Management will work with an application development company to provide an app that will allow clients to arrange transportation from their mobile devices and tablets. As more older people are familiar with this type of technology, Management sees a substantial market opportunity to provide this convenient method of access to their senior transportation needs.
The Company’s website will showcase images of the Company’s fleet while also featuring integrated technology that will allow for reservations to be made through the platform. The Company will use targeted search engine advertisements among people that have searched for NEMT or senior transportation services in the Myrtle Beach market.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
As it relates to developing this section of the Senior Transportation Services business plan, it is important to indicate prior experience in this field, relevant licensure, educational background, and commitment to providing effective services to your specific market. If you are seeking a SBA loan or conventional business loan, you may be required to submit your resume as a separate document as part of your application.
7.0 Financial Plan
7.1 Underlying Assumptions
• An SBA equipment financing loan carrying a 7-year term and an 8% interest rate will be acquired to purchase two sedans and a minivan.
• The Founder will provide $35,000 for working capital, licensure, and early business development cost purposes.
7.2 Sensitivity Analysis
Senior transportation and non-emergency medical transportation services remain in demand even during an economic recession. These businesses generally have fixed operating costs as it is a service-based business. The costs of acquiring capital assets is relatively low since the primary inventories consist of vehicles. Senior Transportation Service, LLC will able to maintain its profitability, pay its debt obligations, and make reinvestments into expansion at all times.
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
