Business plan for PARAMOUNT SENIOR CARE SERVICES
| ✅ Paper Type: Free Essay | ✅ Subject: Marketing |
| ✅ Wordcount: 5282 words | ✅ Published: 10th Jan 2018 |
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 Canada’s 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 professionals 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 company’s 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.
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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 company’s 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 Barber’s 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 country’s 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 Porter’s Five Forces:
Barriers to Entry is low, considering home care services are considered as home-based business threats of new entrants is high.
Supplier’s 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.
Buyer’s 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 region’s 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 company’s 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 Bachelor’s 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 HRR&M 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
Workman’s Compensation Insurance Deposit
$ 500.00
Premises and content Insurance Deposit
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