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Senior Daycare business plan for starting your own business
If you want to start a business where you can make money while being useful for the society, a senior daycare business can be a good option. In this business plan for senior day care center pdf, you will learn in detail how to open a senior day care center. The senior daycare business is a relatively new one and that means there is not a lot of competition in this field. All you need to do is do proper business plan development and you can make serious money in this niche. Many of the details of this business will closely resemble reiki practice business basics.
Executive Summary
2.1 The Business
Eastwood Senior Home will be a registered senior daycare service provider in Austin, Texas. If you ask what is a adult day care, the business will cater to the needs of the people who have to go to work and want their parents/loved ones taken care of. This senior day care business plan will look in detail how the business will be started and operated.
2.2 Management of Senior Daycare Business
It is very important to have a good management structure for starting a senior day care business with success so that we can make a good profit from it. If you want to have a business plan for angel investors, management is the most important part.
Eastwood Senior Daycare will be managed by three managers. They will be look after the operations, public relations, and human resource of the business.
2.3 Customers of Senior Daycare Business
Unlike a pharmacy business plan, this business will serve a number of different customer types. It is necessary to decide which customers we will be serving in order to start and operate the business the right way.
- People who want to leave their senior relatives at the daycare on a daily basis.
- Seniors who want to move in for permanent care.
- Seniors who are advised by doctors to not live alone.
- People who are going on a trip/holiday and want to leave their senior relatives behind.
2.4 Business Target
Just like a retirement home business plan, this business has a target to improve the quality of life for senior citizens of the area. This target will be achieved by the following goals:
- Building a trustworthy brand around the business.
- Providing impeccable customer service.
- Arranging the best-in-class services for the seniors we have to care for.
- Keep improving and growing as a business.
Company Summary
3.1 Company Owner
The owner of Eastwood Senior Daycare is Clint Eastwood. Clint has worked as a caregiver for seniors on a freelance basis for 10 years and then did a job in a day care center for seniors for another five years. He has the experience and expertise in this business and is just the right person to start this business.
3.2 Why the Senior Daycare Business is being started?
The reason Clint is starting this business is that he always wanted to do something for the society. He also wanted to start a business of his own. This business is a way that he can do something for the society while making good money. He also knows in detail how to start a senior day care business and can start and run this business effectively.
3.3 How the Senior Daycare Business will be started?
Step1: Planning
If you want to know how to start a daycare for adults, the first thing you need to know is the planning of the business. This is the part where you need to conduct a feasibility study and prepare the senior citizen day care center floor plans so that the business can be started.
Step2: Registration
The next thing that you need to do is to get the business registered. As this business will include attending to the very specific needs of people and providing them with medical attention if needed, it must be properly registered and insured. This step will closely resemble the one for non-emergency medical transportation business plan.
Step3: Establishing the Daycare Center
Once the business has been registered, the next step will be to establish the facility. The facility will be designed and scaled according to the needs of the area where it is being made. The building will be small in the start but will be constructed in a way that it can be extended in the future if need be.
Step4: Marketing
The next logical step of starting the business will be to make the business known to the people. Social, print and electronic media channels will be used to make sure that anyone needing the service in the area knows of the existence of the business.
| Start-up Expenses | |
| Legal | $248,000 |
| Consultants | $0 |
| Insurance | $27,500 |
| Rent | $35,000 |
| Research and Development | $22,000 |
| Expensed Equipment | $58,000 |
| Signs | $3,200 |
| TOTAL START-UP EXPENSES | $393,700 |
| Start-up Assets | $369,000 |
| Cash Required | $374,000 |
| Start-up Inventory | $40,000 |
| Other Current Assets | $238,900 |
| Long-term Assets | $281,000 |
| TOTAL ASSETS | $1,302,900 |
| Total Requirements | $1,696,600 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $393,700 |
| Start-up Assets to Fund | $1,302,900 |
| TOTAL FUNDING REQUIRED | $1,696,600 |
| Assets | |
| Non-cash Assets from Start-up | $1,711,900 |
| Cash Requirements from Start-up | $383,000 |
| Additional Cash Raised | $59,000 |
| Cash Balance on Starting Date | $37,000 |
| TOTAL ASSETS | $2,190,900 |
| Liabilities and Capital | |
| Liabilities | $29,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $50,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $79,000 |
| Capital | |
| Planned Investment | $1,696,600 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,696,600 |
| Loss at Start-up (Start-up Expenses) | $415,300 |
| TOTAL CAPITAL | $2,111,900 |
| TOTAL CAPITAL AND LIABILITIES | $2,190,900 |
| Total Funding | $1,696,600 |
Services
Now, we have to decide the service that our adult day care service will be providing. As the field is quite a vast one, we can introduce different formats of an adult day care program so that everyone in the need of the service can find one that suits them the most. If you want to know how to start adult day care or how to start a day program for adults with disabilities, the services you will be providing need to be clear.
Eastwood Senior Daycare will provide the following services:
Basic Senior Daycare
This will be the standard daycare package for normal seniors who do not need any special care.
Daycare for Physically Challenged Seniors
This service will cater to the needs of the seniors who have physical limitations and can’t move around or do normal activities on their own.
Daycare for Mentally Challenged Seniors
The mentally challenged seniors affected by Alzheimer’s disease, or other such conditions will be taken care of by this service.
Long-Time Senior Care
The families who want to leave their senior members with us for extended periods of time can avail this service.
Marketing Analysis of Senior Daycare Business
Business plan for investors
If you want to know how to open a senior daycare center, you’ll need to run a complete marketing analysis of the industry to see if the business can actually be feasible and profitable. Clint ran a marketing analysis of the business and found out that starting an adult daycare in the area can bring massive profits. This is because there is no such service provider in the area but there is a lot of demand for the service.
5.1 Market Trends
The next step in knowing how to open a senior daycare center is having a look at the market trends of the industry. It can be seen that the market is a relatively new one. People have just started opening an adult day care recently. It has also been pointed out that there is not even a single senior day care facility in the city. This makes the business a very lucrative one to start.
5.2 Marketing Segmentation
The customers of Eastwood Senior Daycare will be from the following market segments.
5.2.1 Families of Seniors
Families who want their seniors taken care of will be one of the main market segments for the business.
5.2.2 Retired Seniors
Retired seniors who do not have anyone to take care of them will also be among the customers of the business, they will pay for their own care.
5.2.3 Hospitals
Hospitals that have more seniors than their staff can take care of will also be one of the main sources of income for the business.
5.2.4 Care Homes
Senior care homes who are under staffed to take care of all the seniors they have will also be served by the business.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Basic Senior Daycare | 24% | 23,000 | 25,000 | 28,000 | 30,000 | 32,000 | 10.00% |
| Daycare for Physically Challenged Seniors | 27% | 29,000 | 31,000 | 34,000 | 36,000 | 37,000 | 10.00% |
| Daycare for Mentally Challenged Seniors | 32% | 34,000 | 36,000 | 38,000 | 39,000 | 42,000 | 10.00% |
| Long-Time Senior Care | 17% | 16,000 | 18,000 | 20,000 | 22,000 | 24,000 | 11.00% |
| Total | 100% | 102,000 | 110,000 | 120,000 | 127,000 | 135,000 | 10% |
5.3 Business Target
- To become a well-reputed name in the business.
- To make as much money as possible.
- To provide the best adult daycare services in the area.
- To get permanent customers for the business.
5.4 Product Pricing
Eastwood Senior Daycare will charge premium prices for the service. This is because no one is offering the services in the area and people need them. This gives the perfect opportunity to charge any price for the services.
Marketing Strategy
The next thing that is important for starting this adult day care manual is the marketing strategy of the business. It is necessary to get the adult day care license, without which we cannot provide these services. Clint knows in detail how to start a senior center because he has a complete marketing strategy for the business and all that remains is to execute it now. This business is closely related to a physical therapy business plan.
6.1 Competitive Analysis
The next step in knowing how to open an adult day care center is to run detailed competitive analysis of the business. Here is what’s discovered in the analysis:
- It has been found that there is no business in the service providing this service.
- The senior care service providers in the area do not provide daycare services. They are only for long-term care
- There is a lot of demand for these services in the area and that means we can get a lot of business by starting this line of work.
6.2 Sales Strategy
One of the main benefits of adult day care business is that a simple sales strategy can work for it and unlike a business plan medical diagnostic centre, we don’t have to make a detailed one. Here’s the strategy for this business:
- We will make the business known using all the advertisement channels in the area.
- We will provide care packages suited for all types of customers the business is expected to have.
- The business will offer discount to bulk buyers like hospitals and care homes.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Basic Senior Daycare | 45,000 | 47,700 | 50,562 |
| Daycare for Physically Challenged Seniors | 56,000 | 59,360 | 62,922 |
| Daycare for Mentally Challenged Seniors | 54,000 | 57,240 | 60,674 |
| Long-Time Senior Care | 42,000 | 44,520 | 47,191 |
| TOTAL UNIT SALES | 197,000 | 208,820 | 221,349 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Basic Senior Daycare | $50.00 | $58.00 | $67.28 |
| Daycare for Physically Challenged Seniors | $70.00 | $81.20 | $94.19 |
| Daycare for Mentally Challenged Seniors | $74.00 | $85.84 | $99.57 |
| Long-Time Senior Care | $80.00 | $92.80 | $107.65 |
| Sales | |||
| Basic Senior Daycare | $2,250,000.00 | $2,766,600.00 | $3,401,811.36 |
| Daycare for Physically Challenged Seniors | $3,920,000.00 | $4,820,032.00 | $5,926,711.35 |
| Daycare for Mentally Challenged Seniors | $3,996,000.00 | $4,913,481.60 | $6,041,616.98 |
| Long-Time Senior Care | $3,360,000.00 | $4,131,456.00 | $5,080,038.30 |
| TOTAL SALES | $13,526,000.00 | $16,631,569.60 | $20,450,177.98 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Basic Senior Daycare | $48.00 | $55.00 | $64.00 |
| Daycare for Physically Challenged Seniors | $68.00 | $78.00 | $90.00 |
| Daycare for Mentally Challenged Seniors | $72.00 | $82.00 | $95.00 |
| Long-Time Senior Care | $78.00 | $89.00 | $103.00 |
| Direct Cost of Sales | |||
| Basic Senior Daycare | $2,160,000.00 | $2,623,500.00 | $3,235,968.00 |
| Daycare for Physically Challenged Seniors | $3,808,000.00 | $4,630,080.00 | $5,662,944.00 |
| Daycare for Mentally Challenged Seniors | $3,888,000.00 | $4,693,680.00 | $5,764,068.00 |
| Long-Time Senior Care | $3,276,000.00 | $3,962,280.00 | $4,860,693.60 |
| Subtotal Direct Cost of Sales | $13,132,000.00 | $15,909,540.00 | $19,523,673.60 |
Personnel plan
Like any business that is focused at providing services instead of products, senior day care business plan needs a lot of people to run the right way. This business plan for senior day care center pdf addresses this point in detail too. Here we will see what is the detail of the people that will be needed to run the business effectively. To answer the question how to start senior day care business, here is a plan of people needed to run this business.
7.1 Company Staff
The following people will be needed to run the business:
- Clint Eastwood will be the owner and CEO of the business.
- 3 managers to look after operations, public relations, and marketing.
- 5 female caregivers.
- 5 male caregivers.
- 3 drivers.
- 1 doctor.
- 1 guard.
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Operations Manager | $13,000 | $14,300 | $15,730 |
| Marketing Manager | $12,000 | $13,200 | $14,520 |
| Public Relations Manager | $12,000 | $13,200 | $14,520 |
| Female Caregivers | $50,000 | $55,000 | $60,500 |
| Male Caregivers | $50,000 | $55,000 | $60,500 |
| Drivers | $27,000 | $29,700 | $32,670 |
| Doctor | $9,000 | $9,900 | $10,890 |
| Guard | $8,000 | $8,800 | $9,680 |
| Total Salaries | $181,000 | $199,100 | $219,010 |
Financial Plan
The last thing that we need to cover is the adult day care cost. This is a relatively low-cost business that can be started with a small investment. The elderly day care cost is low because we don’t need to buy an inventory or specialized equipment for this business. Here are the costs that will be involved in starting this business:
- Cost of establishing the daycare facility.
- Salaries of the staff.
- Cost of an ambulance for the daycare.
- Cost of a medical room.
- Cost of registering and insuring the business.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.16% | 8.21% | 8.26% |
| Long-term Interest Rate | 8.43% | 8.44% | 8.47% |
| Tax Rate | 24.18% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5343 |
| Monthly Revenue Break-even | $133,100 |
| Assumptions: | |
| Average Per-Unit Revenue | $232.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $164,500 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $13,526,000 | $16,631,570 | $20,450,178 |
| Direct Cost of Sales | $13,132,000 | $15,909,540 | $19,523,674 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $13,132,000 | $15,909,540 | $19,523,674 |
| Gross Margin | $394,000 | $722,030 | $926,504 |
| Gross Margin % | 2.91% | 4.34% | 4.53% |
| Expenses | |||
| Payroll | $181,000 | $199,100 | $219,010 |
| Sales and Marketing and Other Expenses | $134,000 | $140,000 | $149,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,200 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $3,200 | $3,300 | $3,400 |
| Payroll Taxes | $27,000 | $28,000 | $29,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $352,500 | $377,850 | $408,210 |
| Profit Before Interest and Taxes | $41,500 | $344,180 | $518,294 |
| EBITDA | $41,500 | $344,180 | $518,294 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $8,300 | $68,836 | $103,659 |
| Net Profit | $33,200 | $275,344 | $414,636 |
| Net Profit/Sales | 0.25% | 1.66% | 2.03% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $53,000 | $57,240 | $61,819 |
| Cash from Receivables | $23,000 | $24,840 | $26,827 |
| SUBTOTAL CASH FROM OPERATIONS | $76,000 | $82,840 | $89,467 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $76,000 | $83,000 | $90,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $40,000 | $41,000 | $43,000 |
| Bill Payments | $28,000 | $29,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $68,000 | $70,000 | $74,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $68,000 | $73,440 | $79,315 |
| Net Cash Flow | $23,000 | $25,000 | $27,000 |
| Cash Balance | $26,000 | $28,000 | $29,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $276,000 | $309,120 | $340,032 |
| Accounts Receivable | $25,000 | $28,000 | $31,472 |
| Inventory | $4,200 | $4,704 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $281,000 | $314,720 | $353,745 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $20,200 | $22,624 | $25,452 |
| TOTAL LONG-TERM ASSETS | $25,100 | $28,112 | $31,626 |
| TOTAL ASSETS | $289,000 | $323,680 | $364,140 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,200 | $20,384 | $22,912 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $18,700 | $20,944 | $23,541 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,400 | $17,248 | $19,387 |
| Paid-in Capital | $28,000 | $30,000 | $31,000 |
| Retained Earnings | $52,000 | $56,680 | $62,348 |
| Earnings | $191,000 | $208,190 | $229,009 |
| TOTAL CAPITAL | $287,000 | $312,830 | $344,113 |
| TOTAL LIABILITIES AND CAPITAL | $302,400 | $323,680 | $364,140 |
| Net Worth | $296,000 | $322,640 | $354,904 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.27% | 8.06% | 8.93% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.27% | 10.27% | 11.38% | 9.80% |
| Inventory | 5.45% | 6.04% | 6.69% | 9.90% |
| Other Current Assets | 2.16% | 2.39% | 2.65% | 2.40% |
| Total Current Assets | 150.00% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.48% | 11.55% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.87% | 4.91% | 4.95% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.49% | 7.55% | 7.62% | 7.38% |
| NET WORTH | 100.50% | 101.30% | 102.24% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.10% | 97.67% | 100.40% | 99.00% |
| Selling, General & Administrative Expenses | 92.70% | 95.20% | 97.87% | 97.80% |
| Advertising Expenses | 1.53% | 1.57% | 1.62% | 1.40% |
| Profit Before Interest and Taxes | 41.60% | 42.72% | 43.92% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 32.2 | 32.8 | 33.62 | 33 |
| Total Debt to Total Assets | 0.17% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 73.78% | 74.00% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 97.24% | 102.10% | 107.21% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.29% | 34.32% | 35.39% | N.A. |
| Return on Equity | 55.10% | 56.81% | 58.57% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.9 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 31.2 | 32.76 | 33 | N.A. |
| Accounts Payable Turnover | 15.4 | 15.9 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $241,000 | $254,496 | $268,748 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.84 | 0.86 | 0.88 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 28.78 | 29 | 29.01 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Download Sample Business Plan for Senior Day Care Center in pdf
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