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Business proposal

Businessproposal

Duedate

Executivesummary

GreyHaven Personal Care Home will be a privately owned business locatedin the suburbs of San Antonio near Terrell region. This residentialhome is expected to constitute of 6 bedrooms with 2 beds per room.Thus, we will be able to serve 12 clients at a go. The primaryservices offered here will be nursing and supervisory services forthe elderly citizens who can no longer take care of themselves withintheir homes or whose families and relatives can no longer take careof them. The main reason behind the construction of this personalcare home is the fact even though there are many nursing and personalcare homes that take in the elderly people, there still exist excessdemand over the supply. There is still room to do more for the olderadults by providing them the warmth, care, and love they need duringtheir non-productive times. In this home, there will be certifiednursing assistants 1 for every 3 persons, during the day, and 1certified nursing assistant at night. Also, there will be a cookavailable during the day, up until pre-bedtime. Our mission is totransform the society by offering the senior citizens the time,personal care, warmth and love that is needed to make this a home farfrom home. Our vision is to use our dedicated and qualified team ofprofessionals in providing a full range of in-home healthcareservices and strive to be the most highly adored residential home inSan Antonio. Some of the services that will be offered here includemedical administration, assisted living, telenursing services andphysical fitness exercises among others. Grey Haven Personal CareHome is expected to meet several targets. However, our primaryobjectives are one, is to ensure that our residents derive maximumpossible personal care and attention and the second is to ensure thatall needs and expectations of our clients are respected regardless ofrace, religion, gender, and political affiliation. This organizationlies within the healthcare and social assistance industry which hasseen rapid growth and expansion in the past decades. In that case,market analysis is of paramount importance to attain sustainedsuccess. Our target market will be senior citizens above the age of65years both male and female. Social classes will not be a factorwhile receiving our clients and therefore all social classes fallwithin the said target customers. Our core competitive strategy willbe delivering high-quality services at very low prices to attract newand existing customers. We also intend to do a lot of advertising tomake this personal care home known since it is a start-up businesswithin the market. The major strength facing Grey Haven Personal CareHome is a high brand image due to its comprehensiveness in nature.Nonetheless, the company expects stiff competition from upcoming andthe existing personal care and nursing homes in the region and theUnited States. It will take about 34 million dollars to constructGrey Haven Personal Care Home. The longest time possible for thecomplete construction is expected to be 16 months while the shortestduration possible is ten months. The fiscal projections indicate thatthe possible amount of revenue in the first year stands at about 5.76million dollars. This amount of income is expected to increase overthe years as we accommodate more and more patients. The projectappraisal conducted indicates that the net present value is apositive integer which shows that Grey Haven Personal Care Home is aviable project with significant benefits to the society.

Businessproposal: The upstart of a personal care home for seniors in SanAntonio

PartI: Introduction

Agingcomes with more complex mental problems that may jeopardize lives ofeveryone around including the patient. This kind of memory loss isconsidered to be more dangerous than even a physical disease. Itmakes the elderly vulnerable to accidents and mishaps. According toresearch by Eccles 2013, the United States has experienced a rapidgrowth of personal care and nursing homes taking in about 99% of allsenior citizens to provide them with assisted living and personalizedcare depending on the degree of individual needs. These homes alsocontain furnished cottages with essential services and immediatemedical attention services. San Antonio located in Texas is amongthose cities where personal care homes are flourishing and doingquite good. The city hosts about 35 retirement homes each of themtaking in the elderly with various specifications. Some of theminclude Highlands Gardens Assisted Living and Personal Care home,Starlight Homes Bryn Mawr and Just Like Home Care Centre among others

Problemstatement

Gettingold is inevitable which imply that every day the pool of the elderlycitizens gets bigger and bigger. The community ought to carry theburden of their elderly citizens by providing them with the care,warmth and love that they need at their old age. In that sense, SanAntonio has experienced a robust growth of personal attention andretirement homes all geared towards ensuring that the elderly live ahappy life during their non-productive periods. Nonetheless, therestill exist excess demand of personal care services over the supply,and something needs to be done. One key attribute with most of thepersonal care homes in San Antonio is that they offer specific kindof services. For instance, Starlight Homes only specializes inproviding care for seniors with Alzheimer`s disease. In that case,Grey Haven Personal Care Home which will be located on the outskirtsof San Antonio focuses on contributing to the community throughproviding healthcare services for patients with both light and highcare needs. Other than providing the usual care for our belovedseniors, our facilities will majorly aim at keeping them morephysically fit, agile and mentally active. At Grey Haven, there willbe highly trained staff to watch over the residents and ensure abalance between freedom and safety such that they do not feel trappedor locked.

Descriptionof Grey Haven Personal Care Home

GreyHaven Personal Care Home will be located in the suburbs of SanAntonio in the Terrell Hills area. This is a quiet neighbourhood andprovides successful outings for our residents. Grey Haven will bemodelled as an all-inclusive residential home providing servicesneeded by older adults. In this home, there will be certified nursingassistants 1 for every 3 people, during the day, and 1 professionalnursing assistant at night. Some of other services provided are aslisted below

  • Medical administration

  • Supervisory services

  • Accommodation

  • Ambulation services

  • Physical fitness exercises

  • Entertainment services

  • Terminal disease monitoring and care

  • Education programs

  • Personalized assistance with dressing and grooming among many more others

OurMission

Totransform the society by offering the senior citizens the time,personal care, warmth, and love that is needed to make this a homefar from home.

Ourvision

Touse our dedicated and qualified team of professionals in providing afull range of in-home healthcare services and strive to be the mosthighly adored retirement home in San Antonio.

GreyHaven Personal Care Home’s strategic objectives

GreyHaven will be a home far from home, and its construction will focuson achieving the following targets

  • To ensure that all residents derive maximum possible personal care and attention

  • To honor and respect age

  • To provide first class health care, entertainment, accommodation, individual care, catering, and continuity of high-class lifestyle for our patients

  • To ensure that all needs and expectations of clients are respected regardless of race, religion, gender, and political affiliation.

  • To provide both physical and emotional support by delivering best care at all times.

  • To involve relatives, friends, and community in daily activities that affect their loved ones.

Anticipatedoutcomes from the construction of Grey Haven Personal Care Home

  • Grey Haven Personal Care Home is expected to provide cheaper and efficient services to the elderly.

  • We hope to prolong life as much as possible by offering high-quality services to the senior citizens.

  • This project will also bring about happy old age to our senior citizens.

PartII: Market Analysis

Accordingto Capon&amp Hulbert (2011), Marketanalysis clarifies how the organization understands the market forits products or services and put measures to effectively deal withits rivals in line with attaining additional market share. Thus,market analysis assesses the size of the market based on the volumeand value, different client segments and purchasing patterns, thecompetition, economic environment as well as barriers to access themarket and regulations. The section comprises of the followingsubsections

Industry Analysis:Health careand social assistance sector. Nursingand personal care organizations fall within the healthcare and socialassistant industry. Firms within this subsector offer residentialservices intertwined with nursing, supervisory or other individualcare services. The major facilities offered within this industry canbe classified into three major groups namely nursing care services,mental health and drug abuse facilities and societal care servicesfor the elderly. Thus, Grey Haven Personal Care Home will specializein providing assisted living to persons with lighter care needs.Apart from being a significant industry in the production process,this sector has seen growth and level of employment is increasing dayby day. The data below indicates the number of establishments inhealth care and social assistance sector between 2015 and 2016. Thisdata constitutes of both personal care and nursing homesestablishments.

Data series 2nd Quarter 2015 3rd Quarter 2015 4th Quarter 2015 1st Quarter 2016
Number of institutions
Private industry 1, 407, 131 1,424,559 1,442,975 1,460,916
Local authorities 6,946 6,938 6,935 6, 994
State government 6,734 6,749 6,819 6,864
Federal government 1,198 1,192 1,195 1,212

Source:US Bureau of Labour and Statistics, 2016

GreyHaven’s target market

Atarget market can be defined as a part of the clients that anorganization sets up a plan to sell its goods or services. Theprimary objective of every organization funding is to generate profitby making sales to its target market. A business approach to anyorganization must start with a well-structured target market. Theperformance of any service or good in the market majorly depends onfour aspects of the marketing mix, that is, location, price, product,and promotion (Capon&amp Hulbert, 2011).A target market can be categorized in the five primary attributesincluding demographics, geography, client habits, customer attitudesand product. Since initiation, the major marketing approach for GreyHaven assisted living residence will be providing health care andsocial assistance services at a low cost with a focus on attainingextra sales volume at a reasonable profit margin.GreyHaven’s target market consists of a set of prospective seniorcitizens aged 65 years and above. Our services will suit both maleand female clients from all backgrounds (low, middle and high-incomesocial classes). For an organization to succeed in the currentcompetitive setting, it needs to predict its potential customers andstrive towards attaining those needs. There is a vast distinctionbetween determining the needs of the target clients and integratingmeasures to ascertain that those requirements are achieved. In thatcase, Grey Haven Personal Care Home`s primary strategy will be toassist its customers to save money by charging their services at verylow prices.

Competitivestrategy

GreyHaven assisted living residential home expects to continually faceincreasing rivalry from local, regional and countrywide personal carehomes. In San Antonio, the principal competitors of Grey Havenorganization will be Highlands Gardens Assisted Living and PersonalCare home, Starlight Homes Bryn Mawr and Brook Hollow Assisted Livingcentres among others. Additionally, some smaller and medium personalcare homes have the potential of discovering a small place market andcontend triumphantly against Grey Haven Personal Care Home forconsumer sales.

GreyHaven Personal Care Home aims at establishing two to three moreassisted living homes within the surrounding area apart from the mainresidential home at San Antonio. Another competitive strategy forGrey Haven organization will be taking over every sector where itwill establish its businesses. Its master plan for sellinghigh-quality services at very low prices will serve as an attractivearoma to potential clients and even those of rival firms. Thecorporation will endure three essential beliefs or heartphilosophies. They include respect for the people, service to ourcustomers and lastly, the struggle for excellence. Recognizing peopleis the key to treating staff well and motivating them to theachievement of the organization`s goals. Employees are the heart ofany organization. Hence, Grey Haven Personal Care Home will valuethem and incorporate measures such as training programs, healthpolicy, and good salaries alongside other benefits to boost their jobsatisfaction. Other strategies include exceeding customeranticipations by installing door greeters to offer hospitality. Also,various outlets of the organization feature patriotic exhibits andthemes. Grey Haven Personal Care Home will also engage incommunity-based programs such as donations and other corporate socialresponsibility agendas. Giving back to the community is a criticalaspect of every company since it can help to generate extra sales asmost individuals like to be associated with such organizations.

SWOTanalysis

Themajor strength for Grey Haven Retirement Home is the high brandimage. Being an all-inclusive personal care home and offeringhigh-quality services to the elderly, we expect the company to gainpopularity over time and be able to remain full to the capacity allthe time. The organization will also establish secure communicationchannels with the ability to communicate with friends and relativesof our customers efficiently.

The primaryweakness that Grey Haven expects is small living space such that ourclients may not be able to carry all their possession and furniturewith them. On a similar line, when operating at the capacity we maybe forced to reject willing customers due to unavailability of space.

Theorganization has great opportunities such as the capacity todiversify and extend its reach. Within the health care and socialassistance industry, demand is growing so fast thus exceeding thesupply. Grey Haven Personal Care Home has an objective ofconstructing two to three more residential homes in the surroundingareas.

The primarythreat facing this company is competition. There are other start-upsas well as established personal care homes. However, the company isprepared to triumph over the heavy competition through creatinghigh-quality services and maintaining customer relationships byoffering the best assisted living facilities possible.

PartIII: Budget analysis

GreyHaven Personal Care Home will be a wide-ranging residential home with11 primary steps in its construction. The major goal of this budgetoutline is to ensure that a post-modern and classic home with theability to adjust to technological changes over time has beenestablished. The initial capital outlay for this business has beenprojected to be 34 million dollars which will be obtained from loans,donors, and well-wishers. However, the major breakdowns of thisbudget have been attached herewith as Appendix I. The budget variancewill not have been included in the analysis because no actual costshave been occurred since the project is yet to begin. Please considermaking a donation to fund this proposed project within San AntonioTexas. We also encourage you to feel free and visit our NursingAgency Centre at your convenience, to give words of encouragement,advice, and support to this proposed personal care home.

Projectappraisal

Thissection tries to evaluate the viability of the proposed business.Grey Haven Personal Care Home, is expected to accommodate about 6bedrooms with two beds per room which when estimated serves 12 seniorcitizens at a go. The estimated income from this project is about$4,000 per person. However, for the purpose of fiscal projectionsconsidering that at some points we may not have all beds occupied weexpected as small as 5.760 million dollars in the first year. Thefinancial projections in the next years are as outlined below. Theinitial cost outlay has been extracted from the budget attached inAppendix I.

YEAR

PROJECTED BENEFITS (millions)

PROJECTED COSTS

(millions)

NET BENEFITS

0

(34.00)

1

5.760

0.880

4.880

2

6.624

0.704

5.920

3

7.618

0.563

7.055

4

8.760

0.451

8.309

5

10.074

0.360

9.714

6

11.585

0.288

11.297

7

11.585

0.288

11.297

Themarket rate of interest (r) is estimated to be 10%.

PV=

PV=

PV=38.51024932

NPV= PV – INITIAL COST OUTLAY

=38.51024932 – 34.0002

=4.510049323.Thusthe NPV&gt0 Thus the project will be viable.

PartIV: Timeline Analysis

Todetermine the amount of time needed to complete this project theCritical Path Method (CPM) will be incorporated.

Activity

Abbreviation

Initial node

Final node

Estimated time in months

Preliminary activities

A

1

2

2

Groundbreaking and laying the foundation

B

2

3

2

Complete rough framing

C

2

4

3

Initial wiring and plumbing

D

2

5

4

Insulating the walls

E

3

6

2

Putting the ceilings

F

4

6

3

Complete drywall and interior fixtures

G

5

7

6

Exterior driveways and walkways

H

6

8

2

Installing fixtures and decorate

I

6

7

5

Laying the floor

J

7

8

1

Landscape garden and final walkthrough

K

8

9

2

0

0

1

2

2

2

5

4

3

6

7

8

9

4

6

8

8

144

14

16

16

13

13

6

7

5

5

A

2

B

2

E

2

H

2

K

2

1

J

5

I

F

3

G

6

C

3

D

4

Networkanalysis

Paths

Activities

Duration in Months

Path 1

A-B-E-H-K

10 Months

Path 2

A-B-E-I-J-K

14 Months

Path 3

A-C-F-I-J-K

16 Months

Path 4

A-D-G-J-K

15 Months

Usingcritical path method, the longest time possible to completeconstruction of Grey Haven Personal Care Home will be 16 Months(Walsh,2012).That is following path 3 which has the longest duration. However, itis possible to complete this project within the shortest timepossible that is 10 months. To do so, there will be a trade-offbetween time and cost, and thus this will take much more expensesthan the estimated 34 billion dollars.

PartV: Conclusion

Havingobtained a positive net present value which indicates that thebusiness proposal is viable, the next step will be soliciting fundsfrom donors and well-wishers. Furthermore, Grey Haven Personal CareHome will even contribute much more to the community through socialbenefits and the positive externalities stemming from this business.It is the wish of every person that they spend their old days inhappiness and comfort. In that case, the society ought to take partin taking care of the elderly because every person at some point willneed these facilities. All in all, the senior citizens remain to beour burden to carry, and this retirement home will be a part ofappreciating them for the part they have played in our lives duringtheir active lifetimes.

AppendixI:Estimated Project Budget

BUDGET SUMMARY FOR THE CONSTRUCTION OF GREY HAVEN PERSONAL CARE HOME

Estimated Cost (In thousand dollars)

Preliminary Activities

  • Preliminary Design

  • Surveying

  • Geotechnical Investigation and Environmental study

  • Engineering Design

  • Permitting and Preparation of Contract document

Inputs:

  • Surveyors

  • Architecture

  • Engineer

  • Environmental Scientist

  • Lawyers

  • Coordinator

40.00

34.90

50.00

0.20

54.90

20.00

Groundbreaking and laying the foundation

  • Labor

  • Machinery

  • Materials

2,166.60

3,336.60

1,296.80

Complete rough framing

  • Labor

  • Machinery

  • Materials

2,366.60

1,766.70

1, 866.70

Initial wiring and plumbing

  • Labor

  • Machinery

  • Materials

183.30

383.30

433.40

Insulating the walls

  • Labor

  • Machinery

  • Materials

600.00

900.00

1,500.0

Putting the ceilings

  • Labor

  • Machinery

  • Materials

153.30

413.30

433.40

Complete drywall and interior fixtures

  • Labor

  • Machinery

  • Materials

400.00

1300.00

800.00

Exterior driveways and walk ways

  • Labor

  • Machinery

  • Materials

266.70

466.70

266.60

Landscape garden and final walkthrough

  • Labor

  • Machinery

  • Materials

86.60

166.70

246.70

Purchase of groceries and basic utilities

1,000.00

Purchase of furniture

1,400

Acquisition of machinery and related paraphernalia

4,000.00

overhead costs for the whole project

3,600.00

Purchase of insurance covers (home, accidental, malpractice, etc.)

2000.00

Total Initial Cost Outlay

34,000

34,000× 1,000 = $34 Million

References

Capon,N. &amp Hulbert, J. (2011). Marketing Management in the 21stCentury. Upper

SaddleRiver, New Jersey: Prentice-Hall.

Eccles,J. (2013). TheDirectory of nursing homes.Baltimore: HCIA Inc.

Walsh,R. (2012). Timemanagement:Making every minute count.Avon, Mass.: Adams Business.