Table of Content

    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.

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    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.

    Senior Daycare Business Plan Example - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    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.

    Senior Daycare Business Plan Example - Startup Cost

    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

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    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.

    Senior Daycare Business Plan Example - Marketing Segmentation

    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.

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    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:

    1. It has been found that there is no business in the service providing this service.
    2. The senior care service providers in the area do not provide daycare services. They are only for long-term care
    3. 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

    Senior Daycare Business Plan Example - Sales Monthly

    6.4 Sales Yearly

    Senior Daycare Business Plan Example - Sales Yearly

    6.5 Sales Forecast

    Senior Daycare Business Plan Example - Unit Sales

    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

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    8.2 Break-even Analysis

    Senior Daycare Business Plan Example - 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

    Senior Daycare Business Plan Example - Profit Monthly

    8.3.2 Profit Yearly

    Senior Daycare Business Plan Example - Profit Yearly

    8.3.3 Gross Margin Monthly

    Senior Daycare Business Plan Example - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Senior Daycare Business Plan Example - Gross Margin Yearly

    8.4 Projected Cash Flow

    Senior Daycare Business Plan Example - 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.

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