1. BUSINESS OVERVIEW
What is your business (or value) proposition and why do you think it’s a good idea?
I have spent five years of my life working in different care home settings and I have grown up with a family member who suffers from Alzheimer’s. I know that the UK and the rest of the world are experiencing a population increase which leads to an aging population; from looking at the aging population we can see that there are a number of different services that one can provide in order to incentivise this portion of the market to spend their money, but I want to target the families of people suffering from forms of Alzheimer’s by developing a chain of homes that caters to them.
I also want to integrate the use of animals and children in the care of the elderly as this has been shown to reduce blood pressure and reverse or slow down the aging process of the brain.
How have you confirmed there is a need for your business?
In the UK we are experiencing an ever-growing population which in turn shows that we are also experiencing an aging population. With an aging population there will be an increase in the demand for care for the portion of the portion of the population who have retired. In my working career I have seen an increase in the number of customers with dementia or other forms of Alzheimer’s which is catered to by a small number of specialized teams that aren’t attached to a hospital. Furthermore, we see that people are immigrating into the UK to live so we can target this segment.
1. WHO ARE YOUR CUSTOMERS AND HOW WILL YOU REACH THEM?
Customer Profile Why are you targeting them? How are you going to get their attention? How are you going to convince them to buy from you? What specific activities does this mean you need to do? What approximate level of spend will you need on each activity?
1. People suffering from Alzheimer’s and those worried they may develop it There is a large growing market segment which has few specialised services dedicated to them. With this segment of the market I will need to work with hospitals as well as multiple societies such as Age UK and the Alzheimer’s Society to promote my service. I will also utilise social media to target the families or carers of this segment to encourage people to buy this service. In the UK there are a large number of homes and hospitals that cater to both those with and without Alzheimer’s, the idea of my service is I will primarily target those who suffer Alzheimer’s. I will design a home which is specialised to care for this issue which has activities available to keep the client as active as possible to encourage a health brain function to try and reduce the effect of the issue. Adverts will be placed in newspapers as well as leaflets being released to the public and billboards being built. With this segment I will aim to spend approximately £15,000 on newspaper advertisements and on televised adverts to target this segment
2. Families and/or carers of people with Alzheimer’s. If there is one, then the Lasting Power of Attorney People who suffer from this illness will not have full mental capacity, so they will give a member of their family the ability to make certain decisions for them I will use social media to attract the people around those who suffer Alzheimer’s to encourage this portion of the public to use this service.
There will also need to be a use of publications from places like hospitals and charities or societies to promote the use of said service as it will serve as an encouragement to everyone. The development of a company website will play a crucial role in the attraction of this group of people. We can place testimonials on the website that promote our home to the public. Use the same method as targeting the first profile as well as utilizing the internet and emails. The largest portion of the spending will go to attracting this segment as the clients who fall into the first profile will have a reduced mental capacity and struggle to make certain decisions; in which case a person with a relationship with them will be nominated to make decisions for them.
3. Rescue centres and/or people who are no longer to care for pets We can see that there is a growing need for the adoption of animals with rescue centres becoming over filled with abandoned pets. Research shows that when elderly have a pet, that their blood pressure is reduced, and the aging process of the brain is reduced, as well as in a few rare cases Alzheimer’s is reversed. Also, in a study we have learnt that if someone has no living partner will start feeling lonely and having a pet will provide much needed company. We can see that pets encourage owners to maintain activities outside their own home, which is beneficial on multiple levels. There are articles that have been published as well as videos showing the advantage of having pets in the home. I will try to increase the viewing of this publications by having them shown on social media and other platforms that are similar to this, which have a large number of views. I will contact multiple rescue shelters to create a relationship between us. There will be talks will different government bodies to discuss funding to help create housing units for rescue animals. I will need to place an equal amount of money to spend on this profile as the first. This will primarily target people with pets in order to encourage the owners to not abandon the animals on the streets but to bring them in to the home. I will need to do this by spending the money on publications from charities to circulate through social media.
2. WHO ARE YOUR COMPETITORS AND HOW WILL YOU BEAT THEM?
Competitor profile
What will you be competing with them on? Why do customers buy from them? Why would customers switch to you? What specific activities will you need to do? What approximate level of spend will you need on each activity?
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No Competitors. There are no competitors in the UK who don’t separate Alzheimer’s residents from residents without Alzheimer’s. Also, no home brings in the use of animals in the care of the elderly in the UK. One thing that you will notice is that we can bring in the use of people who are unable to look after their own pets so may give them to use so that the residents can care for them.
1. HOW WILL YOUR PRODUCT BE PRODUCED OR HOW WILL YOUR SERVICE BE CARRIED OUT?
If you will be producing a product, how, where and when will it be produced? If you will be providing a service: who will deliver your service? Does it involve transport or equipment? What preparation will be needed? Where will this take place? Will you need special premises etc?
In all cases, detail the estimated associated costs in the boxes on the following pages. You may also find it useful to include a flow chart.
With a care home specialised equipment will need to be obtained to be used for the care of the residents. For the nurses we will need to have blood pressure monitors and other first aid equipment, as well as hosting equipment to help the residents to get out of bed or off the floor. To have a fully stocked medical supply will cost approximately £30,000 for the first year and £1,000 a year in maintenance from then on.
We will need easy access to the road to make it easier for ambulances in the case of an emergency.
COST DETAILS: BELOW, GIVE COST DETAILS ESTIMATED COSTS
How will the product(s)/service(s) be delivered to the customer? And how much will this cost?
We will be offering round the clock care with nursing. There will be a basic charge of £6,000 for a single room and £7,000 for a double with charges increasing with in tandem with the care package. With each resident the cost of care will change as different diets. Aside from this we will need to look at what the resident will need assistance in.
Quality: Please describe your quality control process.
In any care setting there will be announced and unannounced inspections from the CQC who will publish their reports for the public to read. I will also try and talk to as many of the residents and their families by hosting forums in the home so that they can tell me what they want to see changed. With each forum and inspection, I will see what needs to be changed. If there is an issue with staffing, then I will need to increase spending on training of the staff or hire more which will increase the operational costs.
Payment processing: How will payments be accepted?
Payments will be accepted by checks, BACS and/or CHAPS With the different care packages there will be different pricing levels which will cause different levels of income tax.
2. STAKEHOLDERS – who will be involved in your business besides you? How will you manage their involvement and their expectations? What costs will be associated with them?
List the stakeholders Any issues which may arise and how you will manage them Any costs associated with this
1. Pensioners There may also be the possibility of the residents getting confused and walking out of the home. This issue is unavoidable and unpredictable, so when we bring in a new client there will be a full evaluation for a care plan. The care plan gets updated every six months so that the staff can be trained to see who might be the most likely to do this. There will be money put into creating a care plan for each client which will take into account their medical history. The client may feel uncomfortable discussing this, but it will be asked so that we can provide the best care possible for them.
2. Families of those who suffer Alzheimer’s Will be concerned about the quality of care provided. To manage the concern of families I will require that the care staff have the equivalent of a level 2 NVQ in Health and Social Care, with a minimum of a years’ experience in a care-based setting. The nurses will be required to be RGNs with an active NMC registration with experience in the field. When bringing in residents we will encourage the lasting power of attorney, family or friend to come and visit the home to put their mind at ease with staffing.
3. Animal shelters With animals being present we will need to take into account, some of the residents being allergic to the animal. To minimise the risk of this we will try to keep as much space between the resident and pet.
As with any animal there will be the possibility of them getting sick or ill, so pet insurance will be taken out to help with cover of treatment. Costs of insurance will vary depending on the number of pets you have for the home and the type of pet you have.
4. Local community The local community may be opposed to the location of the home as it may increase traffic. The increase in traffic will be due to the families coming to visit which can be mitigated with an onsite car park; when you work with the elderly you will notice that some will give up driving or be encouraged by their families which will reduce traffic from these drivers. £20,000 will be put in to building a car park for residents and their families.
3. PRICING
Product or Service – list up to 3 Price you will charge Why is your price set at this level? How does this price compare to your competition?
1. Rent of single bed with nursing £6,000 per month This cost will cover the maintenance of the room, food for the resident and round the clock nursing. Money will also go towards care for the rescue animals and activities. This level is set with the basic care plan in place and is assuming the resident has full mobility and no special dietary requirements. This also includes internet access in the room and other services in the room. Most care homes focus on having the majority of residents who don’t suffer from Alzheimer’s, however those who do will charge even more than this and will only provide the most basic care.
2. Rent of double bed with nursing £7,000 per month This cost will cover the maintenance of the room, food for the resident and round the clock nursing. Money will also go towards care for the rescue animals and activities. This level is set with the basic care plan in place and is assuming the resident has full mobility and no special dietary requirements. This also includes internet access in the room and other services in the room. For the average double room there will be a much higher cost with a basic quality of care.
3. Rent of single bed with nursing and the resident is diabetic but have full mobility £7,000 per month This price level is set as this is to cover food to be prepared for a resident with diabetes and money towards treatment. All other services are included. Competitors will charge on average the same but will not make adjustments for meals or will not provide staff properly trained for this care plan.
4. SALES – QUANTITY – for the above products or services, what is the value of your predicted sales forecast within what timeframe?
Product or Service (from table above) Predicted sales (££) Timeframe (e.g. within x weeks or months of launch; or daily/weekly/monthly sales etc) Notes: How have you arrived at this figure? How have you used your market research or test trading to forecast your target sales figures? Consider all relevant factors e.g. are your sales likely to be seasonal? Do you already have some customers lined up? What may adversely affect your sales?
1. Ten double rooms at the base cost 70,000 Monthly sales Sales at maximum capacity with predicted sales being set at minimum setting with assumption that the client has no other pre-existing health issue except for a form of Alzheimer’s. However, predicted sales will increase as the care plan changes.
2. 70 singles rooms at the base cost 420,000 Monthly sales Sales at maximum capacity with predicted sales being set at minimum setting with assumption that the client has no other pre-existing health issue except for a form of Alzheimer’s. However, predicted sales will increase as the care plan changes.
Your business needs to operate according to relevant legal frameworks and regulations. You should also ensure you are covered by appropriate insurances should anything go wrong.
Needs Associated costs?
Do you need any licences to operate your business?
• Administrator Certification
• Pre-Inspection Fire Marshal
• Facility Licensing
• Business Licensing Total cost per year £70,000
What legal requirements are applicable to your business? (e.g. food hygiene and safety; child safeguarding; copyright; data protection; health and safety etc)
• Health and social care act 2008 (Regulation 4-19 and Regulation 20 and 20 A)
• CQC Regulation 2009 (Regulation 12-20 and 22A)
• Care Standards Act 2000
What insurance might you need to cover your business? (e.g. health and safety; professional indemnity; incapacity; 3rd party property damage etc)
• Employer’s liability Insurance
• Building and contents insurance
• Medical Malpractice insurance
• Professional Indemnity Insurance
• Legal Expense Insurance
• Public Liability
• Director and Officers Liability Insurance
• Cyber Insurance
• Pet Insurance Total cost per year £20,000
Anything else to consider?
• Mental Capacity Act 2005
• Mental Health Act 2005
1. SET-UP – LIST ACTIVITIES BELOW MONTHLY COSTS TOTAL COSTS OVER 6 MONTHS
1 2 3 4 5 6
Preparation of Substructure and car park £720,000
Frame work and flooring with stairs £200,000 £220,000 £45,000 £130,000 £595,000
Roofing £95,000 £95,000 £95,000 £285,000
Walls, windows and doors £1,830,000
Ceiling £95,000 £47,500 £47,5000 £190,000
TOTAL FOR SET UP £3,620,000
2. OPERATIONAL – LIST ACTIVITIES BELOW 1 2 3 4 5 6 TOTAL COSTS OVER 6 MONTHS
Sanitary Fitting £160,000
Kitchen £20,000
Electricals £400,000 £400,000 £400,000 £400,000 £400,000 £400,000 £2,400,000
Furnishing 44,000 14,000 14,000 14,000 14,000 14,000 £114,000
Staff-Day and night £171,000 £171,000 £171,000 £171,000 £171,000 £171,000 £1,026,000
Animal care (for cats) £1,740 £1,740 £1,740 £1,740 £1,470 £1,740 £10,440
TOTAL FOR OPERATIONAL £3,730,440
GRAND TOTAL SET-UP + OPERATIONAL OVER 6 MONTHS £7,350,440
3. PROJECTED TURNOVER – LIST ACTIVITIES BELOW 1 2 3 4 5 6 TOTAL TURNOVER OVER 6 MONTHS
Ten double rooms £70,000 £70,000 £70,000 £70,000 £70,000 £70,000 £420,000
70 single rooms £420,000 £420,000 £420,000 £420,000 £420,000 £420,000 £2,520,000
TOTAL PROJECTED TURNOVER £2,940,000
GRAND TOTAL: PROJECTED TURNOVER – (SET-UP + OPERATIONAL) = (£4,410,440)
NOTES (add any notes here which are relevant to your financial projections
When calculating the cost of setting up the residential home the final total does not take into account the cost of obtaining planning permission or hiring an architect. There will be a negative turnover until rooms start increasing, also the cost of construction of the home needs to be paid off. When calculating the projected turnover, I cannot predict what care plan will be put in place for certain residence as this will influence the pricing per month for the client.
When you look at the projected Turnover you will see that the data looks at maximum capacity with the basic care plan in place for the clients. Also, after projections of two years of working at maximum capacity, with the basic care plans in place, we will have paid off all the construction costs of the home and operating at a profit of approximately £1.5 million. In reality, it will actually take three years to reach these levels as we need to fill the rooms.
Also, there is the possibility of obtaining funding for caring of rescue animals from the government which will aid in paying off the construction of the home.