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
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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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Basic Senior Daycare24%23,00025,00028,00030,00032,00010.00%
    Daycare for Physically Challenged Seniors27%29,00031,00034,00036,00037,00010.00%
    Daycare for Mentally Challenged Seniors32%34,00036,00038,00039,00042,00010.00%
    Long-Time Senior Care17%16,00018,00020,00022,00024,00011.00%
    Total100%102,000110,000120,000127,000135,00010%

    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 SalesYear 1Year 2Year 3
      Basic Senior Daycare45,00047,70050,562
      Daycare for Physically Challenged Seniors56,00059,36062,922
      Daycare for Mentally Challenged Seniors54,00057,24060,674
      Long-Time Senior Care42,00044,52047,191
      TOTAL UNIT SALES197,000208,820221,349
      Unit PricesYear 1Year 2Year 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 CostsYear 1Year 2Year 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 1Year 2Year 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 1Year 2Year 3
      Plan Month123
      Current Interest Rate8.16%8.21%8.26%
      Long-term Interest Rate8.43%8.44%8.47%
      Tax Rate24.18%24.21%24.60%
      Other000
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        8.2 Break-even Analysis

        Senior Daycare Business Plan Example - Break-even Analysis
        Break-Even Analysis 
        Monthly Units Break-even5343
        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 1Year 2Year 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/Sales0.25%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 ReceivedYear 1Year 2Year 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
        ExpendituresYear 1Year 2Year 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   
        AssetsYear 1Year 2Year 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 CapitalYear 4Year 5Year 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 1Year 2Year 3INDUSTRY PROFILE
        Sales Growth7.27%8.06%8.93%3.00%
        Percent of Total Assets    
        Accounts Receivable9.27%10.27%11.38%9.80%
        Inventory5.45%6.04%6.69%9.90%
        Other Current Assets2.16%2.39%2.65%2.40%
        Total Current Assets150.00%151.00%152.00%158.00%
        Long-term Assets11.48%11.55%11.64%12.00%
        TOTAL ASSETS100.00%100.00%100.00%100.00%
        Current Liabilities4.87%4.91%4.95%4.34%
        Long-term Liabilities0.00%0.00%0.00%0.00%
        Total Liabilities7.49%7.55%7.62%7.38%
        NET WORTH100.50%101.30%102.24%110.00%
        Percent of Sales    
        Sales100.00%100.00%100.00%100.00%
        Gross Margin95.10%97.67%100.40%99.00%
        Selling, General & Administrative Expenses92.70%95.20%97.87%97.80%
        Advertising Expenses1.53%1.57%1.62%1.40%
        Profit Before Interest and Taxes41.60%42.72%43.92%33.90%
        Main Ratios    
        Current34353632
        Quick32.232.833.6233
        Total Debt to Total Assets0.17%0.18%0.17%0.40%
        Pre-tax Return on Net Worth73.78%74.00%75.00%75.00%
        Pre-tax Return on Assets97.24%102.10%107.21%111.30%
        Additional RatiosYear 1Year 2Year 3 
        Net Profit Margin33.29%34.32%35.39%N.A.
        Return on Equity55.10%56.81%58.57%N.A.
        Activity Ratios    
        Accounts Receivable Turnover7.77.87.9N.A.
        Collection Days100100100N.A.
        Inventory Turnover31.232.7633N.A.
        Accounts Payable Turnover15.415.916.3N.A.
        Payment Days272727N.A.
        Total Asset Turnover2.52.52.6N.A.
        Debt Ratios    
        Debt to Net Worth-0.04-0.03-0.04N.A.
        Current Liab. to Liab.111N.A.
        Liquidity Ratios    
        Net Working Capital$241,000$254,496$268,748N.A.
        Interest Coverage000N.A.
        Additional Ratios    
        Assets to Sales0.840.860.88N.A.
        Current Debt/Total Assets1%0%0%N.A.
        Acid Test28.782929.01N.A.
        Sales/Net Worth2.12.22.2N.A.
        Dividend Payout000N.A.

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