Business plan for PARAMOUNT SENIOR CARE SERVICES

Business plan for PARAMOUNT SENIOR CARE SERVICES Paramount Senior Care Services Inc. (Paramount) is a new home health care company in its start up stages. It will offer in-home care services to patients and clients from Halton-Peel region of the province of Ontario, Canada. Our value proposition is to offer quality, personalized, customized care, support and assistance to seniors and families to help them maintain their independence at the comfort of their own homes at reasonable cost. Paramount has a unique competitive advantage; it is offering a one-stop-shop home care service for senior: skilled home health care, companionship; cleaning and housekeeping services; home repair, renovation and maintenance at reasonable price. Paramount is providing the senior and families the benefits of living in an assisted facility in the comfort of their own homes. There is an expected growth in the demand of health care in Canada over the next 30 years, largely due to unprecedented growth in the number of seniors. According to Statistics Canada there will be a 30% increase in Canadas senior population annually from 2006 to 2016 or 4.3M to 9.0M respectively. The population based in Canada is aging, including residents of Halton-Peel Region, and more of the seniors opting to stay in their own homes as long as possible. Even after their hospitalization for example, they rather recuperate at home rather than proceeding to a nursing home or rehabilitation clinic. At the rate of 57% growth of senior population in Halton-Peel region from 1996 to 2016 as projected by Statistics Canada, the senior population aged 65 to 85+ in the region for the next five years will be from 222,921 to 242,459; trend is growing by 30% annually in succeeding years. Paramount customer base will be through referrals from physicians, social workers, other health care profess ionals and community care facilities in the region. There is a strong competition in the market, however, Paramount will position itself as unique one-stop-shop home care service for seniors with competent, caring caregivers and professional management. Our companys business model includes several revenue streams from services we offer such as skilled care-nursing care, physical therapy, speech therapy or occupational therapy; companionship; housekeeping; and home repair, renovation and maintenance. In the home care business, the terms of payment for services rendered usually takes up to 30 days. In this regard, Paramount is looking for additional funding to support the cash flow for the initial operation, in the form of a 5-year loan in the amount of $50,000 at the prevailing interest rate. The company will not take up any further loans, as it plans to support the growth through its cash flow. Company Overview Paramount Senior Care Services Inc. is a start-up company in its initial year of operation. Our company will be located in Mississauga. It will offer in-home care services to patients and clients, who prefer to be assisted and taken care of in the comfort of their own homes, from Halton and Peel District region which includes the cities of Mississauga, Brampton, Caledon, Milton, Oakville, Halton Hills Burlington. Offering: Skilled Care- Nursing, Physical Therapist, Occupational Therapist, Speech Therapist Personal Support Care Companionship Housekeeping Home Repair, Renovation and Maintenance Value Proposition Our value proposition is to offer quality, personalized, customized care, support and assistance to seniors and families to help them maintain their independence at the comfort of their own homes at reasonable cost. Mission Statement Paramount Senior Care Services strives to offer superior and reasonably priced home health care to individual and families in Halton-Peel Region providing with competent, reliable health care and professional management. Company Ownership Paramount Senior Care Services Inc. is a limited liability partnership owned and operated by: Severina Saliva-Parayaoan Arlyn Gardon, RN Ben Dimaano Business Model Our company have several revenue streams from services it offers that includes income from skilled care, companionship, personal support and services, housekeeping and companionship, and other special services in home repair, renovation, maintenance and security services as outlined in the diagram below. PARAMOUNT SENIOR CARE SERVICES INC. Business Model Profit Key Personnel /Resource Cost/Expenses Revenue Streams Customer Segments Strategic Goals Objectives Key Strategic Areas of Focus Year 1 Year 2 Year 3 Sales Revenue 10% annual growth 10% annual growth 10% annual growth Profit before Interest Taxes 40% of sales 40% sales 40% of sales Net Profit At least 20% of sales At least 20% of sales At least 20% of sales Geographic coverage- # of locations Focus in Halton-Peel Region Expand nationwide thru franchising the companys business in Edmonton and B.C. Expand internationally- US East coast and the Islands of Bermuda Customer satisfaction At least 80% customer retention At least 80% customer retention At least 80% customer retention Service Overview Paramount Care Services Inc. offers excellent home health care services such as skilled nursing care, nursing aide, speech therapy, physical therapy, or personal support services; companionship: personal hygiene, meals preparation, housekeeping, laundry, transportation and shopping. We also provide home repair, renovation, security and maintenance to upgrade home facilities adaptable to seniors changing lifestyle and physical mobility. The following are the list of services and its features. All aims to benefit the seniors and family with peace of mind, convenience and assurance of excellent personal health care and care of property- providing the benefits of assisted living facility in the comfort of their own homes. Skilled Care features: Nursing Care Physical Therapy Speech Therapy Occupational Therapy Personal Support Care features: Assist in personal hygiene and grooming Morning Care/Bedtime Care Catheter care Etc. Companionship features: Companionship on travel Respite care while in the hospital or at home Meals preparation Grocery shopping Medical appointment Beauty Salon or Barbers appointment Engage in interactive activities Pet Care Etc. Housekeeping features: Cleaning inside the house Cleaning windows Laundry, etc. Home Repair, Renovation and Maintenance features: Toilet and bathroom renovation Installation of handrails in bathrooms or stairs Plumbing Electrical Carpentry Gardening and Lawn Maintenance Snow removal Country Analysis- PEST PEST Analysis- Canada Establishing a senior home care business in a democratic country like Canada is projected to be successful. Canada has a strong and stable economy where seniors are protected and covered with health care insurance and benefits, and labor laws pertaining caregivers and health care professionals are in place to support the growing and changing needs of the countrys demographics, supported with highly advanced technological infrastructure with a general hospital in every major city and good route accessibility. Political and Legal Factors Democratic country Health insurance for seniors are mandatory and well-established Laws and regulations supporting and encouraging seniors home care health services Labor laws and immigration laws encouraging caregiver programs Economic Factors Strong, stable economy Senior citizens are provided with health care benefits and allowances Growing population of seniors at the rate of 30% annual growth rate Increase in demand in seniors home health care services Growth in immigration particularly in health care profession Socio-Cultural Factors Seniors in Canada are usually taken care of caregivers other than family members Family members are usually busy with careers and can afford to hire caregivers for elderly members of the family rather than to give up their work Seniors prefer to stay in the comfort of their own homes as long as there will be proper caregiver to assist Technological Factors Highly technological infrastructure with very good access to telecommunications including telephone, internet, etc. Service Business-Industry Analysis To summarize the industry analysis using Porters Five Forces: Barriers to Entry is low, considering home care services are considered as home-based business threats of new entrants is high. Suppliers Power is low, although nurses and health-care related professionals are in demand there are more people who are also getting qualifications in health care as second career as well as qualified new immigrants coming to the country. Buyers Power is high, considering there are many choices referrals and recommendation from key partners is highly important. Threat of Substitute is high, as there are many alternative service providers in the market. Competition/Rivalry is high, existing large private companies are dominating the market plus the presence of major franchise companies. Due to the increasing demand and growth of the industry, senior home care business is still consider to be an attractive industry even though the rivalry is high. Marketing Plan Market Analysis Summary There is an expected growth in the demand of health care in Canada over the next 30 years, largely due to unprecedented growth in the number of seniors. The forecasted numbers are below*. Year Number of Seniors Population Share Ratio of Seniors 2006 4.3 million 13.3% 1 in 7 people 2016 5.7 million 16.6% 1 in 6 people 2026 7.7 million 21.4% 1 in 5 people 2036 9.0 million 24.5% 1 in 4 people * Statistics Canada, CANSIM, Table 052-0004 and Catalogue no. 91-520-X. 2005. Based on the above information, there will be a 30% increase in senior population annually from 2006 to 2016. The consumer base for Paramount Senior Care Services Inc will be patients referred by social workers, physicians, health care facilities and other health care professionals as well as satisfied clients and their families. The majority of these patients will be covered by OHIP with a smaller portion being shouldered by the patients and/or families. Market Segmentation The population based in Canada is aging, including residents of Halton and Peel Region, and more of the seniors opting to stay in their own homes as long as possible. Even after their hospitalization for example, they rather recuperate from home than proceeding to a nursing home or rehabilitation clinic. Population Estimates and Projections by CSD for Halton-Peel Region, 2001-2016 Census Subdivision 1996 Population 2001 Population 2006 Population 2011 Population 2016 Population Peel Mississauga 563,000 613,000 653,000 676,000 694,000 Brampton 277,600 321,000 382,000 445,000 510,000 Caledon 41,200 49,000 58,000 67,000 76,000 Total 881,800 983,000 1,093,000 1,188,000 1,280,000 Halton Oakville 132,300 146,300 161,300 184,900 214,900 Burlington 141,100 154,800 164,300 172,200 178,900 Milton 33,100 37,100 58,000 71,000 84,200 Halton Hills 43,700 49,000 54,800 60,000 65,000 Total 350,200 338200 438,400 488,100 543,000 Grand Total 1,232,000 1,321,200 1,531,400 1,676,100 1,823,000 From 1996 to 2016, Halton-Peel regions population is projected to experience a growth rate of over 50%, compared to a provincial average of approximately 25%, as per Ontario Ministry of Health and Long-Term care Provincial Health Planning Database in 2001. Population in Halton-Peel Region, by Age and Sex, 2000 (Ontario Ministry of Health and Long-Term care Provincial Health Planning Database in 2001) Halton Region Peel Region Target Market Segment- Trends and Growth Based on the above data, at the rate of 57% growth of population from 1996 to 2016 as projected by Statistics Canada, the senior population aged 65 to 85+ in Halton-Peel region for the next five years will be as follows: Year Halton Region Estimated Population Peel Region Estimated Population Estimated Total Population Projected Senior Population (65 and above) (13.3% of Total) 2011 488,100 1,188,000 1,676,100 222,921 2012 497,862 1,211,760 1,709,622 227,380 2013 507,819 1,235,995 1,643,814 231,927 2014 517,976 1,260,715 1,778,691 236,566 2015 528,335 1,285,929 1,814,265 241,297 2016 543,000 1,280,000 1,823,000 242,459 The total size of the market representing projected senior population in the Halton and Peel region is 222,921 in 2011 to 242,459 in 2016; and expected to increase by 30% in the succeeding years. Out of the total market size, Paramount Senior Care Services, Inc target market share for the first three years of operation is 0.12%, 0.13%, and 0.14% or 276, 303 and 333 patients/clients respectively, at 10% sales annual growth as illustrated in the table below. Year Projected Senior Population (65 and above) (13.3% of Total) Target Market Share in % Target Number of Clients/Patients/day (year) Growth Rate 2011 222,921 1st-2012 227,380 0.12% 23 (276) 10% 2nd-2013 231,927 0.15% 25 (303) 10% 3rd-2014 236,566 0.20% 27.5 (333) 10% Our primary market segment includes those seniors 65 years old and above who require health care services or companionship by home health nursing staff or personal support workers. As well as, individuals who have suffered stroke, and other physical ailments resulting to personal injury requiring rehabilitation care, respite care, speech therapy, physical therapy, or care management from skilled nurse or therapist or personal support worker in their own homes. These patients and their families may also require other home services such as meals preparation, cleaning, housekeeping, transportation and shopping as well as home repairs, renovation, including property and lawn maintenance, home security and emergency alarm. Target Market Segment Strategy Initially, our company will focus on those market segments that require only home-based services where our services are mostly needed. This will greatly decrease overhead, since additional office or facilities will not be required. In the long term, maybe after five years of successful operation opening of an assisted living facility will be an option. Competition and Buying Patterns The following are key factors considered by the consumer and healthcare professionals when referring home health care services: Trust in the reputation of the service provider Reliability and timely delivery of services Quality of services by the service provider Price comparative to other providers Competitive Analysis Key Factors Paramount Care Services Home Instead (Private) Nurses Next Door (Private) Guardian Angel Care (Private) Public sector-i.e. Red Cross, Victorian Order of Nurses,etc Strength One-Stop-Shop care for seniors Franchise proven business and strong support Franchise proven business and strong support Hospice, palliative end of life care Community services and link with government/ Hospitals Weakness New company with no strong clients base yet Categorize as more expensive in the industry Categorize as more expensive in the industry Lack of personalize care Limited to health care service only (no cleaning/ housekeeping) Unique Selling Proposition One-Stop-Shop care for seniors Patented CAREgiver program Guaranteed nurses just next door of the clients Specialized in hospice, palliative end of life care Community service supported by the government Trust in the professional reputation Medium-as we are a start-up company High-due to brand image High-due to brand image High-due to number of years in the business High- due to established and proven organization and community service Reliability High-24/7 service High-24/7 service High-24/7 service High-24/7 service High-24/7 service Quality of Services High- regulated by law High- regulated by law High- regulated by law High- regulated by law High-regulated by law Price Lower than franchise competitors Expensive Expensive Competitive As per OHIP Notes: The table above shows a strong competition in the home health care industry. However, Paramount Senior Care Services Inc is positioning itself as health care company providing affordable rates for seniors and families having a limited budget which represents a majority of seniors in the target market areas with our unique offering of one-stop-shop services for seniors. Competitive Advantage Paramount Senior Care Services Inc. is a newly set up business that has a unique competitive advantage offering a one-stop-shop for senior care: home health care and companionship; cleaning housekeeping services; home repair, renovation and maintenance at reasonable price. Paramount Senior Care Services is providing the senior and families the benefits of living in an assisted facility in the comfort of their own homes. Strategy and Implementation Summary Paramount Senior Care Services Inc. will initially focus on Halton and Peel District within the province of Ontario, Canada. Within this geographical area we will target on senior home care program. Within this area we have two target markets: the individual client, and the regional physicians, hospitals and other health care facilities and insurance companies. Marketing Strategy Product/Services Our primary focus is home health care services to seniors. We will provide seniors a One-Stop-Shop in all their home health care services need; it will provide convenience for seniors and their families. Pricing Strategy Our company pricing system will be set according to OHIP and other private insurance regulations, and is reasonable and competitive. We will do so by developing a contracted service from health-care staff on hourly, daily or weekly basis and only limited full-time employees as full-time staff. Distribution Strategy Our company will focus in the Halton-Peel Region where the projected growth of seniors is higher than the national average. Our company will build strategic alliance with health care facilities in the region primarily Trillium Hospital in Mississauga, Credit Valley hospital, and the new general hospital in Milton as well as community centers and health care practitioners in the region. Promotion Strategy Marketing our company as a service-oriented business requires establishing a good reputation for expert care and superior quality service. It starts with our existing contacts currently in positions to make recommendations and referrals to us, and we will continue with our efforts to network, integrate with the community health care professionals in the region. We will participate in community events in the region to build contacts and generate more referrals. We will create marketing communications and promotion materials in a business, professional manner, as well as our marketing tools such as flyers, brochures, business cards and advertisements. Sales Strategy Our patients and their families, as well as referring physicians and healthcare professional must be satisfied with our service, as we sell superior care, 24/7 availability, reliability and good relationships. Growth in service industry often resulted to loss of quality control that causes client dissatisfaction, increase in complaints and eventually loss of customers. In this regard we will constantly focus on superior quality of service. Sales Forecast The companys projected annual sales for the first three years of operation are as follows based on the assumption: Using conservative estimates Assuming to acquire a share of only 0.12% to 0.13% of target market An average of six hours service per client An average rate of $25/hour Target growth rate of 10% annually Sales Forecast Year 1 Year 2 Year 3 Sales Target Market Size 227,380 231,927 236,566 Target Market Share 0.12% 0.13% 0.14% No. of Patients or Clients 23 25 28 Ave. Hours/Patient/Day 8 8 8 Total Service Hours/Day 184 200 220 Ave. Rate/Hour $25.00 $25.00 $25.00 Total Sales/Day $4,600.00 $5,000.00 $5,500.00 Total Sales/Month $92,000.00 $100,000.00 $110,000.00 Total Sales/Year 100% $1,104,000.00 $1,200,000.00 $1,320,000.00 Direct Cost of Sales at 6% of Sales 6% $ 66,240.00 $ 72,000.00 $ 79,200.00 Gross Profit 94% $ 1,037,760.00 $ 1,128,000.00 $ 1,240,800.00 Geographic Expansion Plan Year 1- Halton Peel Region in the Province of Ontario, Canada Year 2- To expand operation nation-wide by second year of operation by expanding in British Columbia and Edmonton. Year 3- To expand operation internationally by third year of operation; to start in the United States by entering New York City in US East Coast; and the Islands of Bermuda in the Atlantic. Operations Day-to-day Operations Office Location: Main office in Mississauga with sub-office in Milton Office hours: 8:30 am- 5:30 pm Mondays-Saturdays at the main office location in Mississauga. Operating hours: 24/7 on call in case of appointment schedule, clients visit or emergency. There will be an assigned manager to handle calls during out-of-office hours on rotation basis. Client call and visit schedule. Staff and sub-contracted parties work schedule and assignment making sure clients/patients will be attended as required. Office Requirements Telephone 4-in-1 printer, copier, fax and scanner machine Computer for office use Office table and chairs Office supplies- stationary, etc, Legal Compliance Business license and registration Incorporation Taxes Bond, security and liability insurance Legal documentations CPA retainer Health Compliance Accreditation and certification from government agencies Certification and qualification of staff and skilled professionals Management Information System QuickBooks software program for accounting, finance and payroll recording and management Company website Internet connection and email Data Base Management Customer Relationship Management Communications Brochures Print ads Presentation folders for clients and partners in health care Medical Supplies Equipments Basic supplies in handling patients such as clinical gloves and masks Risk Management There are several identified potential risks in home health care industry, our company have identified some of them and have established mitigation plan to manage the risk accordingly as described in the table below. Potential Risks Mitigation Plan Injury, accidents and/or death Loss/theft on clients property Internal breach of security (i.e. credit card use, unauthorized use of data by employees or third parties) Health care recording process quality control management in place to prove proper care or negligence Bond and insurance coverage Liability waiver Background check on staff and sub-contractors/partners is mandatory Bond and security liability insurance Liability waiver Organization policies and procedures in handling documentations must be in order Data encryption Electronic form and signature Offsite storage Management and Organization Summary Paramount Senior Care, Inc. initial management team will consist of a Managing Director, a Case Manager, a Maintenance Manager, six employees, and contracted caregivers and housekeepers, a contracted agency to fulfill the need for Physical Therapists, Occupational Therapists, and Speech Therapists. Initially, all managers will also provide direct service. Severina Saliva-Parayaoan has a Bachelors Degree in Business Administration major in Accounting and currently finishing a post-graduate certificate in Global Business Management. She has over ten years experience in business development, management and administration. She will provide all administrative direction and will perform most of the administrative functions with assistance from the Administrative Assistant. She will also supervise housekeeping service. Arlyn Guardon is a registered nurse and has experience as a Skilled Nurse and Care Manager for a Home Health Agency will be the Case Manager. She will also provide direct nursing services during the initial stages of the business, as well as supervising the nursing and caregiver staff. As the need for the service providers grows, both managers will assume primary roles in management and will delegate direct service to employees. Ben Dimaano is a licensed home technician in Ontario and has over 10 years of experience in home repairs, renovation and maintenance. He will be the Maintenance Manager responsible for the HRRM Department. Organizational Chart Personnel Plan Assumptions: Owners will not receive salaries rather it will be in the form of a draw. Number of full-time employees will be kept to a minimum, any increase in labour requirements will be fulfilled through contracting. 10% annual increase in cost of living allowance for the full-time employees. Managing Director- This full-time position will be held by Severina Saliva-Parayaoan. As owner compensation will be made in the form of a draw. Case Manager- this part-time position will be held by Arlyn Gardon. As owner compensation will be made in the form of a draw. Maintenance Manager- this part-time position will be held by Ben Dimaano. As owner compensation will be made in the form of a draw. Administrative Assistant (1)- this full time position is based on 40-hours per week reimbursed at $12.00 per hour, with benefits assume at 30% of total payroll. Skilled Nurse (1) this full-time position will be paid $22.00 per hour for direct service hours, with benefits assume at 30% of total payroll. Personal Support Workers (12)- This full-time position will be paid for $12.00 per hour for direct service hours, with cost of benefits assume at 30% of total payroll. Housekeepers (10)- This position will be paid for $10.25 per hour for direct service hours with cost of benefits assume at 30% of total payroll. Physical therapist/Occupational Therapist/Speech Therapist- these positions will be contracted at a rate of $30.00 per hours. There will be no benefits attached to these positions as they are contracted on a fee-for-service reimbursement only. Personnel Plan Year 1 Year 2 Year 3 Managing Director $ $ $ Case Manager $ $ $ Maintenance Manager Administrative Assistant $ 29,952 $ 32,947 $ 36,241.92 1-Skilled Nurse $ 54,912 $ 60,403 $ 66,443.52 12-Personal Support Worker $ 359,424 $ 395,366 $ 434,903.04 10-Housekeeper/Companion $ 255,840 $ 281,424 $ 309,566.40 Total People 23 23 23 Total Payroll $ 700,128 $ 770,164 $ 847,178 Personnel Summary Position Admin Assistant Skilled Nurse Personal Support Worker Housekeeper Qualification College Graduate At least one year experience Registered and license in Ontario At least 3 years of experience Certified in Ontario At least 2 years of experience Secondary School graduate At least one year of experience Type of employment Full time Full Time Full Time Full time Salary +Benefits $29,952 $54,912 $29,952 $21,320 No. of Positions 1 1 12 10 VIII. Start-up Capital Requirements The following is the summary of the start up costs which includes: Business Development Rental Expenses Office Equipment Nursing Supplies Start-up Capital Requirements Business Development Attorney Fees- Setting up a limited company $ 1,000.00 Business Licence $ 200.00 Medisoft Billing Program $ 5,000.00 Professional Liability Insurance $ 3,000.00 *Assuming 25% down of $12,000.00 Workmans Compensation Insurance Deposit $ 500.00 Premises and content Insurance Deposit