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Business arrange for PARAMOUNT SENIOR CARE SERVICES

Business arrange for PARAMOUNT SENIOR CARE SERVICES

Paramount Senior Care Services Inc. (Paramount) is a new home health care company in its set up stages. It will offer in-home care services to patients and clientele from Halton-Peel area of the province of Ontario, Canada. Our value proposition is to provide quality, personalized, customized care, support and assist with seniors and families to help them keep their independence at the comfort of their very own homes at reasonable price. Paramount includes a unique competitive advantage; it really is offering a “one-stop-shop” home care provider for senior: skilled house health care, companionship; cleaning and housekeeping services; residence repair, renovation and protection at reasonable selling price. Paramount offers the senior and family members the benefits of living in an assisted center in the comfort and ease of their private homes.

There is an expected progress in the demand of healthcare in Canada over the next 30 years, largely due to unprecedented growth in the number of seniors. According to Figures Canada you will have a 30% increase in Canada’s senior population annually from 2006 to 2016 or 4.3M to 9.0M respectively. The population based in Canada is aging, incorporating residents of Halton-Peel Area, and even more of the seniors opting to stay in their own homes so long as possible. Actually after their hospitalization for example, they rather recuperate in the home rather than proceeding to a nursing residence or rehabilitation clinic. At the rate of 57% development of senior population in Halton-Peel region from 1996 to 2016 as projected by Statistics Canada, the senior inhabitants aged 65 to 85+ in the region for another five years will come to be from 222,921 to 242,459; trend is growing by 30% yearly in succeeding years. Paramount client base will become through referrals from doctors, social workers, other healthcare professionals and community care and attention facilities in the region. There is a strong competition on the market, however, Paramount will posture itself as specific ‘one-stop-shop’ home care provider for seniors with competent, caring caregivers and professional supervision.

Our company’s business model includes several earnings streams from services you can expect such as for example skilled care-nursing attention, physical therapy, speech remedy or occupational remedy; companionship; housekeeping; and house repair, renovation and repair.

In the house care business, the terms of payment for providers rendered usually takes up to thirty days. In this respect, Paramount is looking for additional funding to aid the cash flow for the original operation, in the type of a 5-year loan in the amount of $50,000 at the prevailing interest rate. The company will not take up any more loans, as it plans to aid the development through its cashflow.

Company Overview

Paramount Senior Care Products and services Inc. can be a start-up enterprise in its initial season of operation. Our firm will be found in Mississauga. It’ll offer in-home care solutions to patients and clientele, who prefer to come to be assisted and looked after in the relaxation of their own homes, from Halton and Peel District region which include the places of Mississauga, Brampton, Caledon, Milton, Oakville, Halton Hills & Burlington.

Offering:

Skilled Attention- Nursing, Physical Therapist, Occupational Therapist, Speech Therapist

Personal Support Care

Companionship

Housekeeping

Home Fix, Renovation and Maintenance

Value Proposition

Our value proposition is to provide quality, personalized, customized care, support and assist with seniors and families to help them keep their independence at the relaxation of their own homes at reasonable expense.

Mission Statement

Paramount Senior Care Products and services strives to provide superior and reasonably priced home health care to individual and family members in Halton-Peel Area providing with competent, reputable health care and professional management.

Company Ownership

Paramount Senior Care Providers Inc. is a restricted liability partnership owned and operated by:

Severina Saliva-Parayaoan

Arlyn Gardon, RN

Ben Dimaano

Business Model

Our company have some income streams from services it includes which includes income from skilled health care, companionship, personal support and offerings, housekeeping and companionship, and different special services in house repair, renovation, protection and security offerings as outlined in the diagram below.

PARAMOUNT SENIOR CARE Products and services INC.

Business Model

Profit

Key Personnel /Resource

Cost/Expenses

Revenue Streams

Customer Segments

Strategic Goals

Objectives

Key Strategic Regions 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 company’s business in Edmonton and B.C.

Expand internationally- US East coastline and the hawaiian islands of Bermuda

Customer satisfaction

At least 80% consumer retention

At least 80% buyer retention

At least 80% customer retention

Service Overview

Paramount Care Solutions Inc. offers excellent house health care services such as for example skilled nursing health care, nursing aide, speech therapy, physical therapy, or personal support companies; companionship: personal hygiene, foods preparation, housekeeping, laundry, transport and shopping. We provide home repair, renovation, protection and protection to upgrade home establishments adaptable to seniors changing way of living and physical mobility.

The following are the list of services and its own features. All aims to profit the seniors and family members with reassurance, convenience and assurance of exceptional personal health care and care of property or home- providing the benefits of assisted living service in the relaxation of their unique 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 Barber’s appointment

Engage in interactive activities

Pet Care

Etc.

Housekeeping features:

Cleaning inside the house

Cleaning windows

Laundry, etc.

Home Mend, Renovation and Protection 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 house care business in a democratic nation like Canada is normally projected to reach your goals. Canada includes a strong and stable economy where seniors are shielded and covered with health care insurance and benefits, and labor laws pertaining caregivers and health care professionals are in destination to support the developing and changing wants of the country’s demographics, supported with very advanced technological infrastructure with a general hospital atlanta divorce attorneys major city and great route accessibility.

Political and Legal Factors

Democratic country

Health insurance for seniors are mandatory and well-established

Laws and regulations helping and encouraging seniors house care health services

Labor regulations and immigration regulations encouraging caregiver programs

Economic Factors

Strong, stable economy

Senior citizens are provided with healthcare benefits and allowances

Growing populace of seniors at the charge of 30% annual growth rate

Increase popular in seniors home healthcare services

Growth in immigration particularly in health care profession

Socio-Cultural Factors

Seniors in Canada usually are looked after caregivers apart from family members

Family members are usually busy with careers and may afford to employ caregivers for elderly family rather than to stop their work

Seniors prefer in which to stay the relaxation of their personal homes given that 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 sector analysis applying Porter’s Five Forces:

Barriers to Entry is low, considering home care services are believed as home-based business threats of different entrants is high.

Supplier’s Power is definitely low, although nurses and health-care related specialists are popular there are more people who are also getting qualifications in healthcare as second career in addition to qualified new immigrants coming to the country.

Buyer’s Power is high, considering there are many choices referrals and advice from key companions is highly important.

Threat of Substitute is high, as there are a variety of service providers on the market.

Competition/Rivalry is high, existing large private companies are dominating the marketplace plus the existence of major franchise businesses.

Due to the raising demand and development of the industry, senior home care organization continues to be consider to be an attractive industry even though the rivalry is high.

Marketing Plan

Market Analysis Summary

There can be an expected expansion in the demand of healthcare in Canada over the next 30 years, largely because of 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 simply no. 91-520-X. 2005.

Based on the preceding information, you will see a 30% upsurge in senior population each year from 2006 to 2016.

The consumer bottom for Paramount Senior Attention Products and services Inc will be sufferers referred by social staff, physicians, health care facilities and other health care professionals in addition to satisfied clients and their families. The majority of these clients will be covered by OHIP with a more compact portion getting shouldered by the sufferers and/or families.

Market Segmentation

The population located in Canada is aging, incorporating citizens of Halton and Peel Area, and more of the seniors opting in which to stay their own homes as long as possible. Actually after their hospitalization for instance, they rather recuperate from home than proceeding to a nursing house 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 region’s people is projected to experience a rise rate of over 50%, compared to a provincial average of around 25%, according to Ontario Ministry of Health and Long-Term care Provincial Health and wellbeing Planning Database in 2001.

Population in Halton-Peel Area, by Years and Sex, 2000 (Ontario Ministry of Health and Long-Term care Provincial Well being Planning Database in 2001)

Halton Region Peel Region

Target Market Segment- Developments and Growth

Based on the above data, at the level of 57% progress of population from 1996 to 2016 as projected by Statistics Canada, the senior inhabitants aged 65 to 85+ in Halton-Peel region for another five years will end up being 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 populace in the Halton and Peel region is normally 222,921 in 2011 to 242,459 in 2016; and likely to maximize by 30% in the succeeding years.

Out of the full total marketplace size, Paramount Senior Health care Services, Inc target market share for the 1st three years of procedure can be 0.12%, 0.13%, and 0.14% or 276, 303 and 333 patients/clientele respectively, at 10% product sales annual development as illustrated in the desk 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 marketplace segment incorporates those seniors 65 years aged and above who require health care services or companionship by residence health nursing staff or personal support staff. As well as, those who have suffered stroke, and additional physical ailments bringing on personal harm requiring rehabilitation care, respite care, speech remedy, physical remedy, or care administration from qualified nurse or therapist or personal support worker within their own homes.

These patients and their families could also require other home offerings such as for example meals preparation, washing, housekeeping, transportation and purchasing and also home fixes, renovation, including residence and lawn maintenance, home security and emergency alarm.

Target Market Segment Strategy

Initially, our organization will give attention to those market segments that require only home-based services where our products and services are usually needed. This will tremendously decrease overhead, since additional office or facilities will not be required. In the long term, probably after five years of effective operation opening of an assisted living facility will be a choice.

Competition and purchasing Patterns

The following are key factors considered by the buyer 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 products and 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. Crimson Cross, Victorian Order of Nurses,etc

Strength

One-Stop-Shop look after seniors

Franchise proven business and strong support

Franchise confirmed business and strong support

Hospice, palliative & end of life care

Community services and link with government/

Hospitals

Weakness

New company without strong clients base yet

Categorize as more costly 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 look after seniors

Patented CAREgiver program

Guaranteed

nurses just nearby 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 certainly 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 desk above shows a solid competition in the home health care industry. However, Paramount Senior Care Solutions Inc is definitely positioning itself as healthcare company providing affordable prices for seniors and families having a limited budget which represents most seniors in the target market areas with this unique offering up of ‘one-stop-shop’ products and services for seniors.

Competitive Advantage

Paramount Senior Care Companies Inc. is a recently set up business which has a unique competitive advantage supplying a “one-stop-shop” for senior care: home healthcare and companionship; washing & housekeeping services; home repair, renovation and protection at reasonable selling price. Paramount Senior Care Providers is providing the senior and families the benefits of moving into an assisted facility in the convenience of their private homes.

Strategy and Implementation Summary

Paramount Senior Care Products and services Inc. will initially focus on Halton and Peel District within the province of Ontario, Canada. Within this geographical area we will aim for on senior home care course. Within this area we have two target markets: the average person client, and the regional doctors, hospitals and other health care facilities and insurance firms.

Marketing Strategy

Product/Services

Our primary concentrate is home health care services to seniors. We provides seniors a ‘One-Stop-Shop’ in every their home health care services need; it will provide convenience for seniors and their families.

Pricing Strategy

Our company pricing system will be set regarding to OHIP and other private insurance restrictions, and is affordable and competitive. We will do so by creating a contracted provider from health-care personnel on hourly, daily or every week basis and only limited full-time staff members as full-time staff.

Distribution Strategy

Our company will target in the Halton-Peel Region where in fact the projected growth of seniors is greater than the national normal. Our business will build strategic alliance with healthcare facilities in the region primarily Trillium Medical center in Mississauga, Credit Valley hospital, and the brand new general medical center in Milton together with community centers and health care practitioners in your community.

Promotion Strategy

Marketing our provider as a service-oriented organization requires establishing a good reputation for expert attention and superior quality provider. It starts with this existing contacts currently in positions to make advice and referrals to us, and we’ll continue with our attempts to network, incorporate with the community health care professionals in the region.

We will participate in community events in your community to build contacts and create more referrals.

We will create marketing and sales communications and promotion supplies in a business, professional manner, together with our marketing tools such as flyers, brochures, organization cards and advertisements.

Sales Strategy

Our patients and their families, and referring physicians and healthcare professional must be satisfied with our program, as we sell top-quality care, 24/7 availability, reliability and good relationships.

Growth in service industry generally resulted to lack of quality control that causes client dissatisfaction, increase in complaints and eventually lack of customers. In this regard we will constantly give attention to superior quality of assistance.

Sales Forecast

The company’s projected gross annual sales for the primary 3 years of operation are as follows predicated 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 provider per client

An average level of $25/hour

Target growth fee 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 grow operation nation-wide by second yr of procedure by expanding in British Columbia and Edmonton.

Year 3- To broaden operation internationally by third yr of operation; to begin in america by entering NEW YORK in US East Coastline; and the hawaiian islands of Bermuda in the Atlantic.

Operations

Day-to-day Operations

Office Location: Main workplace in Mississauga with sub-office in Milton

Office hours: 8:30 am- 5:30 pm Mondays-Saturdays at the key office area in Mississauga.

Operating hours: 24/7 on call in the event of appointment schedule, consumers visit or emergency. You will see an assigned manager to handle calls during out-of-office time on rotation basis.

Client call and go to schedule.

Staff and sub-contracted celebrations working arrangements and assignment making sure customers/patients will end up being 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 recognition from government agencies

Certification and qualification of staff and skilled professionals

Management Information System

QuickBooks computer software for accounting, financing and payroll recording and management

Company website

Internet connection and email

Data Base Management

Customer Relationship Management

Communications

Brochures

Print ads

Presentation folders for clientele and partners in health and wellbeing care

Medical Supplies & Equipments

Basic materials in handling patients such as for example clinical gloves and masks

Risk Management

There are several identified potential risks in home health care industry, our company have recognized some of them and have established mitigation intend to manage the risk accordingly as referred to in the table below.

Potential Risks

Mitigation Plan

Injury, incidents and/or death

Loss/theft on customers property

Internal breach of secureness (i.e. credit cards use, unauthorized use of data by workers or third parties)

Health care recording method & quality control operations in destination to prove care or negligence

Bond and insurance coverage

Liability waiver

Background check up on staff and sub-contractors/partners is mandatory

Bond and security & liability insurance

Liability waiver

Organization policies and techniques in handling documentations should be in order

Data encryption

Electronic form and signature

Offsite storage

Management and Organization Summary

Paramount Senior Treatment, Inc. initial management workforce will contain a Managing

Director, a Case Manager, a Maintenance Supervisor, six employees, and contracted caregivers and housekeepers, a contracted firm to fulfill the need for Physical Therapists, Occupational Therapists, and Speech Therapists. Initially, all managers will also provide direct service.

Severina Saliva-Parayaoan includes a Bachelor’s Degree running a business Administration major in Accounting and presently finishing a post-graduate certificate in Global Business Management. She’s over ten years experience in business development, administration and administration. She will provide all administrative route and will perform almost all of the administrative functions with assistance from the Administrative Assistant. She’ll also supervise housekeeping service.

Arlyn Guardon is certainly a rn and has experience as an experienced Nurse and Care Manager for a Home Wellbeing Agency will be the Case Manager. She will provide direct nursing services during the initial stages of the business, as well as supervising the nursing and caregiver personnel. As the necessity for the service providers grows, both managers will assume primary roles in management and can delegate direct assistance to employees.

Ben Dimaano is definitely a licensed home specialist in Ontario and features over 10 years of experience in residence repairs, renovation and protection. He’ll be the Maintenance Manager in charge of the HRR&M Division.

Organizational Chart

Personnel Plan

Assumptions:

Owners won’t receive salaries rather it will be in the sort of a draw.

Number of full-time personnel will be placed to a minimum, any upsurge in labour requirements will get fulfilled through contracting.

10% annual increase in expense of living allowance for the full-time employees.

Managing Director- This full-time placement will be held by Severina Saliva-Parayaoan. As owner settlement will be produced in the sort of a draw.

Case Supervisor- this part-time job will be placed by Arlyn Gardon. As owner reimbursement will be produced in the kind of a draw.

Maintenance Manager- this part-time job will be placed by Ben Dimaano. As owner compensation will be made in the type of a draw.

Administrative Assistant (1)- this regular position is based on 40-hours per week reimbursed at $12.00 per hour, with benefits believe at 30% of total payroll.

Skilled Nurse (1) – this full-time location will be paid $22.00 per hour for direct service hours, with benefits presume at 30% of total payroll.

Personal Support Workers (12)- This full-time situation triangle definition will be payed for $12.00 per hour for direct service time, with cost of benefits presume at 30% of total payroll.

Housekeepers (10)- This position will be paid for $10.25 per hour for direct service time with cost of rewards assume at 30% of total payroll.

Physical therapist/Occupational Therapist/Speech Therapist- these positions will end up being contracted for a price of $30.00 per time. There will be no benefits attached to these positions because 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 twelve months experience

Registered and permit in Ontario

At least 3 years of experience

Certified in Ontario

At least 24 months of experience

Secondary School graduate

At least twelve months 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 beginning up costs which includes:

Business Development

Rental Expenses

Office Equipment

Nursing Supplies

Start-up Capital Requirements

Business Development

Attorney Fees- Establishing 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

Workman’s Compensation Insurance Deposit

$ 500.00

Premises and articles Insurance Deposit

$ 300.00

*Assuming 25% down of $1,200.00

Contract Retainer with PT/OT/ST

$ 500.00

Miscellaneous Expenses

$ 956.40

Rental Expense

Deposit plus First Month

$ 1,000.00

*Assuming $500.00/month

Phone Set Up

$ 300.00

Utilities Deposit

$ 150.00

Post Office Box

$ 30.00

Office Equipment

2 Computers (fully-loaded)

$ 3,000.00

4-in-1 Printer/Fax/Copier/Scanner

$ 500.00

Quickbooks Accounting Program

$ 500.00

Phones

$ 200.00

Office Supplies

Stationary

$ 200.00

Business Cards

$ 150.00

Brochures

$ 200.00

Miscellaneous Office Supplies

$ 400.00

Nursing Supplies

$ 2,000.00

Total Start-up Expenses

$ 20,086.40

Operating Expenses for First 6-month

$ 89,913.60

*Assuming at $14,985.60/month

Total Cash Requirements

$ 110,000.00

Start-up Funding

Start-up Expenses to Fund

$ 20,086.40

Operating Expenses for First of all 6-month

$ 89,913.60

Total Funding Required

$ 110,000.00

Planned Investment

Severina Saliva-Parayaoan

$ 20,000.00

Arlyn Gardon

$ 20,000.00

Ben Dimaano

$ 20,000.00

Long Term Loan

$ 50,000.00

Total Investment

$ 110,000.00

Financial Plan

The the very first thing for our financial plan may be the accounts receivables. Home well being providers will be reimbursed mainly by OHIP and other private insurance companies. These companies are sometimes slow to reimburse and it will greatly impact our cashflow. In this respect, we will consider yet another loan of $50,000 for five years at 8% interest per year to cover the earliest half a year operating expenses as proven in the Start-Up Capital Requirements table; and finance the development in succeeding years.

General Assumptions:

We assume a solid, stable economy no major recession within the next three to five years of operation.

We assume that we now have no significant adjustments in the federal coverage relating to OHIP reimbursement of health care services.

Current interest rate is estimated at 10% for another 3 years of operation.

Long-term interest is estimated at 8% for another 3 years of operation.

Tax rate reaches 30%.

Attached in the Appendices may be the financial projections for the business enterprise which will run for the next 3 years; detailing the start-up capital requirements, along with the first 12 months’ cashflow projection, pro forma balance sheet, and earnings and loss projection including assumptions with regards to costs and revenues.

Notes to the financial projections:

Projected Profit and Loss

Our projected profit and loss is demonstrated in the next table, with product sales projection at 30% progress rate per year for the three years plan, with huge projected expenses including independently contracted services for further caregivers, physical, occupational and speech therapist; and income is notable possibly on the first yr of operation. Cost of sales is mostly direct labour expense. The owners are not paid a monthly salary but in the kind of drawings. Full-time personnel’ salaries reflected a cost of living boost of 5% each year.

Cash flow Projection

The cashflow projection for the 1st a year of the operation with itemized money receipts and dollars disbursement on every month basis. Assortment of accounts receivables from revenue on credit will greatly affect our cashflow. The assumption is that all sales are on 30-day terms and all expenses are paid on monthly basis.

Projected Balance Sheet

The stability sheet was ready on a 12-month period. The table shows managed but sufficient growth of net worthy of for the first time of operation. There is absolutely no major capital investment required other than office tools amounting to $3,500.

Break Even Analysis

Based on the approximated every month fixed expenses of $14,985 and 6% adjustable cost including direct labour cost of contracted employees, the business’s monthly break-even sales should be $15,941.

Return on Investment

With an ROI of 2.58, the investors will be able to recover the investment in under a year.

3-12 months Pro forma Profit and Loss

Total

Year 2

Year 3

$

Sales

$ 1,104,000.00

$ 1,214,400

$ 1,335,840

Less: Cost of Sales

$ 66,240.00

$ 72,864

$ 80,150

Gross Profit

$ 1,037,760.00

$ 1,141,536

$ 1,255,690

Expenses

Payroll

$ 700,128.00

$ 770,164

$ 847,178

Depreciation-Pre-operating Expenses

$ –

$ –

$ –

Rent

$ 6,000.00

$ 6,000

$ 6,000

Hydro and Utilities

$ 1,800.00

$ 1,800

$ 1,800

Telephone

$ 1,200.00

$ 1,200

$ 1,200

Cellular Phone

$ 1,200.00

$ 1,200

$ 1,200

Internet Access

$ 480.00

$ 480

$ 480

Professional Liability and Insurance

$ 9,000.00

$ 9,000

$ 9,000

Workman’s Compensation Insurance

$ 600.00

$ 600

$ 600

Premises and Content Insurance

$ 600.00

$ 600

$ 600

Advertising and Marketing

$ 1,200.00

$ 1,200

$ 1,200

Meals and Entertainment

$ 600.00

$ 600

$ 600

Professional Development

$ 1,200.00

$ 1,200

$ 1,200

Office Equipment and Supplies

$ 2,400.00

$ 2,400

$ 2,400

Contracted Therapists OT/PT/ST

$ 18,000.00

$ 18,000

$ 18,000

Nursing Supplies

$ 6,000.00

$ 6,000

$ 6,000

Total Operating Expenses

$ 750,408.00

$ 820,444

$ 897,458

Income before Curiosity and Taxes

$ 287,352.00

$ 321,092

$ 358,232

Interest Expense

$ 3,999.96

$ 4,000

$ 4,000

Income before Taxes

$ 283,352.04

$ 317,092

$ 354,232

Taxes Incurred

$ 85,005.61

$ 95,128

$ 106,270

Net Profit

$ 198,346.43

$ 221,965

$ 247,962

Net Profit/Sales

18%

18%

19%

12Month Pro Forma Profit and Loss

Pro Forma Income and Loss

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Total

$

$

$

$

$

$

$

$

$

$

$

$

$

Sales

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

1,104,000

Less: Cost of Sales

5,520

5,520

5,520

5,520

5,520

5,520

5,520

5,520

5,520

5,520

5,520

5,520

66,240

Gross Profit

86,480

86,480

86,480

86,480

86,480

86,480

86,480

86,480

86,480

86,480

86,480

86,480

1,037,760

Expenses

Payroll

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

700,128

Depreciation-Preoperating Expenses

0

0

0

0

0

0

0

0

0

0

0

0

0

Rent

500

500

500

500

500

500

500

500

500

500

500

500

6,000

Hydro and Utilities

150

150

150

150

150

150

150

150

150

150

150

150

1,800

Telephone

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Cellphone

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Internet Access

40

40

40

40

40

40

40

40

40

40

40

40

480

Professional Liability and Insurance

750

750

750

750

750

750

750

750

750

750

750

750

9,000

Workman’s Compensation Insurance

50

50

50

50

50

50

50

50

50

50

50

50

600

Premises and Content Insurance

50

50

50

50

50

50

50

50

50

50

50

50

600

Advertising and Marketing

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Meals and Entertainment

50

50

50

50

50

50

50

50

50

50

50

50

600

Professional Development

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Office Equipment and Supplies

200

200

200

200

200

200

200

200

200

200

200

200

2,400

Contracted Therapists OT/PT/ST

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

18,000

Nursing Supplies

500

500

500

500

500

500

500

500

500

500

500

500

6,000

Total Operating Expenses

62,534

62,534

62,534

62,534

62,534

62,534

62,534

62,534

62,534

62,534

62,534

62,534

750,408

Income before Interest and Taxes

23,946

23,946

23,946

23,946

23,946

23,946

23,946

23,946

23,946

23,946

23,946

23,946

287,352

Interest Expense

333

333

333

333

333

333

333

333

333

333

333

333

4,000

Income before Taxes

23,613

23,613

23,613

23,613

23,613

23,613

23,613

23,613

23,613

23,613

23,613

23,613

283,352

Taxes Incurred

7,084

7,084

7,084

7,084

7,084

7,084

7,084

7,084

7,084

7,084

7,084

7,084

85,006

Net Profit

16,529

16,529

16,529

16,529

16,529

16,529

16,529

16,529

16,529

16,529

16,529

16,529

198,346

Net Profit/Sales

18%

18%

18%

18%

18%

18%

18%

18%

18%

18%

18%

18%

0

12-Month Projected Cash Flow

Pro Forma Cash Flow

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

TOTAL

$

$

$

$

$

$

$

$

$

$

$

$

$

Cash readily available, Beginning

89,914

21,860

45,806

69,752

93,698

117,644

141,590

165,536

189,482

213,428

237,374

261,320

1,647,399

Cash Receipts

Cash Sales

0

0

0

0

0

0

0

0

0

0

0

0

0

Cash from Receivables

0

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

1,012,000

Loan/Other Cash injection

0

0

0

0

0

0

0

0

0

0

0

0

0

Total Cash Receipts

0

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

1,012,000

Total Cash Avaialbale

89,914

113,860

137,806

########

185,698

209,644

233,590

257,536

281,482

305,428

329,374

353,320

2,659,399

Cash Paid-Out

Purchases-Office Supplies

200

200

200

200

200

200

200

200

200

200

200

200

2,400

Purchases-Nursing Supplies

500

500

500

500

500

500

500

500

500

500

500

500

6,000

Direct Labor

5,520

5,520

5,520

5,520

5,520 essay about culture

5,520

5,520

5,520

5,520

5,520

5,520

5,520

66,240

Payroll

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

58,344

700,128

Rent

500

500

500

500

500

500

500

500

500

500

500

500

6,000

Hydro and Utilities

150

150

150

150

150

150

150

150

150

150

150

150

1,800

Telephone

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Cellphone

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Internet Access

40

40

40

40

40

40

40

40

40

40

40

40

480

Professional Liability and Insurance

750

750

750

750

750

750

750

750

750

750

750

750

9,000

Workman’s Compensation Insurance

50

50

50

50

50

50

50

50

50

50

50

50

600

Premises and Content Insurance

50

50

50

50

50

50

50

50

50

50

50

50

600

Advertising and Marketing

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Meals and Entertainment

50

50

50

50

50

50

50

50

50

50

50

50

600

Professional Development

100

100

100

100

100

100

100

100

100

100

100

100

1,200

Contracted Therapists OT/PT/ST

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

1,500

18,000

Miscellaneous

0

0

0

0

0

0

0

0

0

0

0

0

0

Subtotal

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

816,648

Loan Principal Payment

0

Capital Purchase

0

Other start-up Costs

0

Owner’s Withdrawal

0

Total Cash Paid Out

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

68,054

816,648

Cash Position, ending

21,860

45,806

69,752

93,698

117,644

141,590

165,536

189,482

213,428

237,374

261,320

285,266

1,842,751

Pro Forma Balance Sheet

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$

$

$

$

$

$

$

$

$

$

$

$

Assets

Current Assets

Cash

21,860

45,806

69,752

93,698

117,644

141,590

165,536

189,482

213,428

237,374

261,320

285,266

Accounts Receivable

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

92,000

Other Current Assets

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

3,500

Total current Assets

117,360

141,306

165,252

189,198

213,144

237,090

261,036

284,982

308,928

332,874

356,820

380,766

Long Term Assets

Long Term Assets

0

0

0

0

0

0

0

0

0

0

0

0

Accumulated Depreciation

0

0

0

0

0

0

0

0

0

0

0

0

Total Long Term Assets

0

0

0

0

0

0

0

0

0

0

0

0

Total Assets

117,360

141,306

165,252

189,198

213,144

237,090

261,036

284,982

308,928

332,874

356,820

380,766

Liabilities and Capital

Current Liabilities

Accounts Payable

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

Current Loan

0

0

0

0

0

0

0

0

0

0

0

0

Other Current Liabilities

0

0

0

0

0

0

0

0

0

0

0

0

Total Current Liabilities

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

4,463

long Term Liabilities

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

50,000

Total Liabilities

54,463

54,463

54,463

54,463

54,463

54,463

54,463

54,463

54,463

54,463

54,463

54,463

Paid-in Capital

60,000

60,000

60,000

60,000

60,000

60,000

60,000

60,000

60,000

60,000

60,000

60,000

Retained Earnings

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

-20,086

Earnings

16,529

33,058

49,587

66,115

82,644

99,173

115,702

132,231

148,760

165,289

181,818

198,346

Total Capital

56,442

72,971

89,500

106,029

122,558

139,087

155,616

172,145

188,673

205,202

221,731

238,260

Total Liabilities and Capital

110,906

127,435

143,964

160,493

177,021

193,550

210,079

226,608

243,137

259,666

276,195

292,724

Net Worth

56,442

72,971

89,500

106,029

122,558

139,087

155,616

172,145

188,673

205,202

221,731

238,260

Ratio Analysis

Year 12 months 2 Year 3 Industry

Profile

Sales Growth 10% 10% 10% 3.71%

Percent of Total Assets

Accounts Receivable 20% 20% 20% 21.90%

Other Current Assets 0 0 0 45.48%

Total Current Assets 69.58%

Long Term Assets 0 0 0 30.42%

Total Assets 100% 100% 100% 100%

Net Worth 48% 48% 48%

Percent of Sales

Sales 100% 100% 100% 100%

Gross Profit 94% 94% 94%

Selling, General & Admin 25% 25% 25%

Net PROFIT PERCENTAGE 18% 18% 19%

Activity Ratios

Accounts Receivable Turno

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