Senior care is a specialized service that provides a combination of medical assistance, compassionate care and companionship. Whether it’s adult day care, long term care, or assistance on demand, Bessie V. Rose Senior Care is there to make life that much easier for the entire family.
Today’s baby boomers and the older Gen X group face a dual challenge: They’re caring for their own children, and sometimes grandchildren, as well as caring for parents. By 2020, nearly 14 million people in the United States will be over the age of 85, and 84 percent of them will want to continue living at home. To do that, more than half will need assistance with daily living activities. Seniors and family members of older relatives are looking at alternatives to assisted living and nursing homes, and Bessie V Rose is a great option for those home care or home health care needs. We are dedicated to our community and aim to provide the best service for your loved ones. COMPANY DESCRIPTION
Bessie V. Rose Senior Care is a service that provides live-in or live-out non-medical home care to seniors and disabled individuals. Caregivers play a crucial role in improving the quality of life for those who are not chronically ill, yet require some type of supervision and assistance with daily living.
We are dedicated to assisting those in need with all of the monotonous and mundane activities of the day, in such a fast paced and technology driven society. We want to be the bridge that connects their generation to what is going on now without them having the hassles of learning new methods. Our goal is to make lives more comfortable, keep minds and bodies active and to be a dependable and accessible service that cares.
STRATEGIC FOCUS AND PLAN
Providing high quality health care and companionship for the elderly and helping them continue to live their lives how they want to.
a. Become a staple in the elderly communities in the southern sector of Dallas, Tx b. Make more jobs available in the inner cities while contributing to the community. c. Ensure that none of our elders in the communities are without their basic needs for survival.
a. Financial growth by 20% every 24 months
b. Expand beyond the inner city to other senior concentrated areas, including a staff of 10 for each area along with mobile centers. c. Ultimately we would like grow in to the medical side of senior care and work directly with senior care facilities and hospitals as a contracted assistant living service to widen our market.
Bessie V. Rose Senior Companionship Care will be committed to meeting the physical, physiological, sociological and spiritual needs unique to seniors. We are targeting those that have been in the community for years and have no one to consistently provide care for them. It is a mobile service that will work in the inner city communities where this kind of service does not
SWOT Analysis – Bessie V. Rose Companionship Care
STRENGTHS: * a new and/or innovative service for the southern area of Dallas * cultural connections * community driven * connection with VA Hospital * growing trend around the nation * prime locations near many senior living facilities | WEAKENSSES: * financial support and available funding * reputation of services as such mistreating patients * lack of access to technology in these areas * management or staff availability * lower income areas * undifferentiated service lines | External: Opportunities & Threats
OPPORTUNITIES: In addition to new or significant trends, other external opportunities exist and how can we best exploit or benefit from each. Examples might include: * a market vacated by a competitor * availability of new communication technology * younger generation with a disdain for placing family members in nursing homes * lack of dominant competition * new market segment * niche market is growing throughout the states | THREATS * there are new competitor(s) in our home market * changes in reimbursement or regulations * changing insurance plans and/or contracts for major area employers * established competitors have superior access to channels of distribution * economic shifts * field is not booming at local universities * shifts in market demand or referral sources|
* The number of American seniors, ages 65 and up, will double in 26 states by the year 2030. * Because approximately 80% of seniors prefer in-home care versus relocating to a care facility, the current market trend largely surrounds aid that is administered in the home of the patient. * The National Center on Senior Transportation was formed for the express purpose of increasing senior assistance with transportation, enhancing their ability to live more independently within their communities. These trends represent an opportunity because of the amount of seniors that will be entering this stage within the next 10-20 years. This is an opportunity to develop our idea locally and expand our business to other areas, primarily because the baby boomer generation represents the largest part of our population and they are beginning to enter the retirement phase. This is a nationwide trend.
* There are several known franchises capitalizing on in-home care already and they include; Right At Home, Comfort Keepers, Visiting Angels, ComForCare Senior Services and Home Instead Senior Care. * Social workers are capitalizing off of the industry as well, typically costing $80 to $100 per hour; they provide senior assistance for doctor appointments, supervise medication and research various care options for you. The National Association of Professional Geriatric Care Managers offers referrals for senior help. * Senior Care facilities at present are starting to outsource this kind of senior assisted living, which already includes are large portion of the elderly at this time Competition is usually threatening for any business, but this industry is so vast and transcends race and economic status, so competition will continue to grow as non-profits, hospitals, present senior care services, social workers and state medical organizations vie for a foothold on the market.
Bessie V. Rose Senior Care will simplify the care of your aging loved ones by providing dependable caregivers and impeccable service. Our staff will be trained to understand the needs of older adults. Our home-care analysis includes: * An interview that can be done over the phone or in person * Scheduled to fit within your schedule
* Conducted and reviewed by a Certified Counselor
After the interview, you’ll get an actionable plan you can use to help your loved one find home care. Our goal is to make these kinds of decisions as easy as possible and to become a reliable source of support, aid and comfort.
Trends Related to the Senior Home Care Industry
* Non-medical home care is a $15 billion industry and an important part of its success revolves around the important services offered to patients in the privacy of their own homes. * Senior Fitness Programs have opened new avenues for gyms and personal trainers. According to the American College of Sports Medicine’s (ACSM’s) worldwide fitness trend survey published in 2008, Senior Fitness ranks #6 in the top 10 trends. * Senior volunteers and are matched to provide elderly assistance through a nonprofit organization. Senior care services include everything from companionship to overnight stays, housekeeping to transportation. Seniors Helping Seniors, is one of the fastest growing services of this type. Like social trends in the senior care industry, the economic trends present an opportunity to approach senior assistance from different angles specific to our service fulfillment and being able to provide fitness programs and peer care are two great avenues. There is an opportunity for sponsorship and volunteer assistance that ultimate can be a benefit to our bottom line.
* New gadgets geared toward elderly functionality are infrared blood circulation food massagers to disposable hearing aids and bionic gloves. * GPS-enabled devices to necklaces that can be pressed in case of emergency, senior assistance is getting a big boost in remote applications that allow you to regain freedom in home care for the elderly. * Granny cams, monitors and motion detectors that first entered the market for childcare are being revamped and repackaged for elderly in home care. These trends represent an opportunity because so many of our elders are living longer and desire to be as independent as possible. With technology, you can get the best of both worlds, by being able to monitor and respond promptly to situational emergencies and providing comfort for the patient and the family.
* With an aging population that is expected to double over the next 20 years, legal parameters and policies are being amended, clarified and implemented. According to SimpyHired.com elder -law jobs have increased by 121% since July of 2007.
* Some Senior Services has partnered with ADT, the worldwide leader of in-home electronic monitoring and communications systems, in an effort to provide their customers with around-the-clock access to help as needed. ADT is trying make this mandatory for all in home care operations. * State law requires that DHSS inspect each senior care facility or operation twice in a fiscal year. A federal survey is also required every 9 to 15 months for Medicare and/or Medicaid-certified facilities. Not unlike competition, regulation is always limiting and presents obstacles when considering clientele, treatment of patients and health inspections. There has to be extreme attention paid to the regulations we must work behind, to ensure ethical treatment and proper medication assistance stays within those parameters. Many businesses in this industry have failed because of overlooking was has been mandated by the health industries.
Marketing Product Focus
Potential Customers| Points of Differences| New Products| Independent elderly individuals (70 and up)| * Giving the individual the option to create their own schedule of service and providing another source of support when dealing with different kinds of situations| Set up a communication device that allows the client to interact with the provider on demand, similar to Skype or an audio visual setup| Families with healthy, functioning elders| * Coordinating a weekly schedule of different activities with other seniors to continue a positive and interactive social life in a small setting designed to cater to their present interests. Having this information and communicating it to the family for input and participation.| Have 2 or 3 vehicles (1 bus, 2 vehicles) available for trips, tours, date-night and sight-seeing.| Hospitals, nursing centers and contracting agencies…| * Connecting our mobile operation with medical facilities to provide assistance to recently released patients that only can perform limited activities…and be available to assist those that are without others in their lives.| Contracts with the penal system to assist those without support or families that are incarcerated and elderly.
From home care services and medical products to housing options like assisted living, the demand for products and services relating to the care of older Americans will soon begin to grow exponentially. Businesses throughout the country are finding ways to serve – and, ultimately, profit from the aging of America. As a result, senior vendors are spending their marketing dollars to reach the baby boomer directly. It will become equally important for companies selling products and services relating to the aging of America to reach the purchase influencers of senior care products and services. These include:
• Family Caregivers
• Medical Doctors
• Social Service Agencies
• Geriatric Care Managers
• Physical Therapists
• Rehabilitation Centers
• Home Health Care
• Housing and Residential Facilities
• Retirement Communities
• Investment and Retirement Advisors
• Elder Law Attorneys
a. Points of Difference
1) We want to provide communal living, often with planned activities, housekeeping and laundry, transportation, meals, exercise and wellness programs, opportunities to socialize with other residents, and assistance with activities of daily living. These can include bathing, toileting, eating, and dressing, and may also include things like medication reminders. Our focus would be those areas of high traffic and crime that can sometimes be overlooked. 2) Once consistency is established and all the medical and caring has been provided, protection is of optimum importance. The elderly are target more often than not, but with consistent monitoring and presence, any violators will be influenced to think otherwise because of the lack of vulnerability and presence of others in and out of the property.
* Marketing Mix – Age affects us all, in some capacity. Senior Care and Companionship transcends racial and gender lines. * The elderly, now, possess a more educated background and still seek stimulation even in their older age. * It is important that the elderly are conscious of their eating habits, physical heath and economic status because this can determine how independent they can be, which for most is still important * With the growing number of elders in our communities, there has to be a focus on making it as senior friendly as possible with technology that requires very little user knowledge. Having seniors moving around in these areas demands accessibility and convenience for emergency purposes and for communicating for assistance.
There are roughly 39 million adults age 65 and older in the U.S today. This sector of the population is estimate to be over 89 million within the next 40 years. Life expectancy is over 75 now, increasing the need for senior care.
* In the initial stages of entering the assisted, senior care market, we plan to set prices based on several different packages that we will offer. This is mainly to secure a large share of the market. We are interested in growth rather than in making a profit. Prices will vary to accommodate a wider base.
* Frequent changes in the prices of our services could harm our long-term interests. We do not look to exploit a short supply position to earn the maximum. During the periods of good business, we will try to keep prices from rising and during the periods of depression, we won’t allow prices to fall too low. We have to take a long-term view in achieving price stability.
* Because of the emergence of the senior care/assisted living field, the pricing for the various services we provide have to be consistent with others in the market based on the different packages. * This type of competitive market affects pricing based on pure competition. There can’t be many price changes, because marketing will largely based on referrals. * With healthcare and insurance involved, regulations on floor and ceiling for prices will force us to modify our services, time and technology in order to impact pricing.
3 Possible Prices
* $18 per hour for 20+ hours of care per week / $18,720.00 per year for 20hrs/wk * $100 per day for 8 hours of daily assisted care = $2000.00/month * $35 per month for integrated daily monitoring system with 40 hrs a week of personal care and assistance
Break Even Analysis:
* Total Revenue = Price * Volume = Fixed Costs + (Variable Costs * Volume) Total Revenue = (P1 * V1) + (P2 * V2) + (P3 * V3)
P1 = $65.00 for an initial screening evaluation
V1 = 130 clients screened
P2 = $300.00 for admission to service
V2 = 20 clients admitted
P3 = $85.00 per hour for continuous case management
V3 = The numbers of hours needed break-even
VC= $200 per client (the cost of mileage)
TR = P * V = FC + (VC * V)
(P1 * V1) + (P2 * V2) + (P3 * V3)= FC + (VC*V2)
(65 * 300) + (300 * 20) + (85 * V3) = 50,000 + (200 * 20)
85V3 = 31500
V3 = 370.60 hrs
V3 / V2 (volume of clients) / 12 (months in a year)
370.60 hrs per month/40/12 = 0.777(2 hr)
Absolute minimum break-even number of hours, it was determined we should strive for a minimum average of 2 contact hour per client per month and 20 clients/month which gives us max revenue of $40,000 a month. Financial 5 year Projection
* Year 1 ($378,000 net)
* Expect to grow 10% each following year
Year 5 = $623,044.80
Marketing our service-oriented business requires establishing a reputation for expertise and excellence. It starts with our known contacts that are in positions to recommend us and make referrals to us, and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields. We will develop and maintain a database of our contacts in the field; these will include well-known physicians, other nurses and hospital facilities in our market area. We will make initial contacts in the community as we establish the business entity and provider status with Medicare, Medicaid, private insurance companies and local attorneys. We will also make an effort to introduce Bessie V. Rose Care and Companionship to area professionals who are potential referral sources.
Our communication with the community and the local businesses in the area will be marketing tools such as brochures and business cards. After we have this in line and some familiarity associated with us, we will begin doing radio spots and hosting free workshops that detail our service, step by step and how it benefits the individual. We will also concentrate on collaborating with health organizations, insurance companies and nursing residents by providing coupons for a variety of services at discounted rates, as well as 10 day trials. This, we hope to make available to existing members, but definitely for new members.
* As a small business, we will design our advertising to produce sales, now. One way we hope to accomplish this is to always include an offer in our advertising – and an easy way for prospective customers to respond to it. So we will use the combination of radio ads, newspaper ads and direct mail. Each is low cost to run and can be concentrated in the areas we are targeting, most importantly, our community. I believe this approach could give us the right amount of visibility we need to get started and just enough for a start-up to handle.
* Consumer-oriented sales promotion activities
Deals – Present different packages that include discounts
Example: If you select weekly visit(2 days) and a weekend day for care for 6 months or more, you will receive half off the same care for one month. Premiums – All initial services packages will come with one free day of care for any package chosen. Point-of-purchase displays – In store setup with registration availability and brochures to pass out. Health Food Stores like Whole Foods and supplement and vitamin shops…
* Trade-oriented sales promotion and public relation activities Cooperative Advertising will be our initial approach, mainly, because our service is based on quality alone and being able to cross promote with some more established companies in the community can give us a respectable name. Our efforts would be targeted towards health oriented conventions and symposiums.
The importance of proper and timely evaluation cannot be overlooked. Communication between the business and the customer is essential for success. Customers will try a new service one time, usually. If they are not pleased with the service, they will look elsewhere. A good evaluation system and prompt corrective actions, when required, will assist ua in maintaining our individual market share.
1. Delaying retirement age – Some countries allow retirement at 60 or even earlier. In the U.S., many may meet the age requirement, but may be forced to continue working.
2. Customers may be dissatisfied with our service.
3. There could be some issues with insurance companies and how much coverage the seniors would have to help assist with the costs. Solutions
1. Although the retirement age delay may affect our projections of the amount of people leaving the workforce for retirement, we could modify our approach and still provide the same sort of service, but with more from a helpers stand-point. A lot of people will still need assistance to a degree and providing transportation, help maid service and home-care assistance can still be viable for those that continue to work.
2. Service quality has to be premium because of the various kinds of competitive forces that exist, but if anyone is dissatisfied with our service, there will be no long term contract, so they will be able to opt out if they choose to do so. We will also create a contingency plan that directly addresses our faults by taking feedback from all of our clients and plan to implement any changes we see fit to better suit our client’s needs.
10 Hot Trends in Senior Care Services. (2009, 03 27). Retrieved 08 18, 2011, from Elder Care ABC Blog: http://eldercareabcblog.com/10-hot-trends-in-senior-care-services/
Starting a Non Medical Senior Care Business. (2010). Retrieved 08 19, 2011, from The Senior’s Choice: http://theseniorschoice.com/index.html
Aging Parents and Elder Care. (n.d.). Retrieved 08 19, 2011, from Aging Parents and Elder Care: http://www.aging-parents-and-elder-care.com/