Quality Care Business Plan Cover

¶ … Quality Care Business Plan

Cover Letter

Dear

I am currently seeking an investor for my company, Basic Quality Care, non-profit trade association that includes and represents long-term care providers devoted to providing professional cares to their clients.

Based on the interest you have shown for the health care industry, I am fully confident that our business may be of interest to you, for which reason I have taken the liberty of hereby including a business plan presenting the most important elements related to both our industry and the competitive advantage our association brings.

Basic Quality Care is determined to bring a new approach in the health care industry by providing diversified assisted living facilities to include supportive and health-related services, as well as personalized care. Taking into consideration the changes in the marketplace and our clients' demands, we have embarked upon providing the necessary difference in health care services. Our management team boasts significant experience in this industry and is set to combine quality with reasonable prices in their performance.

In order to achieve our goals, we are requesting a total amount of $280,000 to be provided in the form of a 30-year fixed interest loan.

Thank you for your consideration and interest in Basic Quality Care. Please contact me with any questions you have, and I will be pleased to provide any additional information you require. if, upon completing your review, you would like to discuss this matter further, please do not hesitate to contact me via email, phone, or fax.

Summary

A. Business Description

Our association is named Basic Quality Care and it is located at 2610 W. Fairmount Avenue Baltimore, MD 21223. Our services will be entirely concentrated on the American market, notably in the health care industry. Our niche will cover those individuals and potential clients for whom living at home has become difficult, but who does not require full time attention in a nursing home.

Our portfolio will provided a diversified and vast array of services, including basic physical and hygiene services, social, educational or recreational activities, and a similar array of assistance services that will ensure that the individuals are able to live on their own, despite the assistance of our employees.

B. Business goals

Our main business goals include providing efficient health care services for our customers. By efficient health care services we have come to understand providing service that offer both the highest degree of quality at the lowest possible prices, that is, the best quality to price ratio. We are committed to our customers, who are the main reason for our existence as a business association.

However, because of the constant diversification of our services, we are also able to offer a mitigated assistance that ensures the fact that our clients will be able to lead a normal life, with the assistance of our employees. Our goal is not to turn into a nursing home, but to provide the assistance needed by clients who are not in need of full day services.

C. Summary of financial needs and application of funds

The required funds are $280,000, coming in the form of a 30-year fixed interest rate. Part of these will go towards creating the initial framework and working capital for our business. Once money starts coming in, it is likely that we will need the other part for future investments in equipment and other requirements for medical care. Aiming to provide the best quality services also means that we should be able to offer competitive salaries to those who provide them, so we aim to have a medium to high level of salaries for our employees.

D. Earnings projections and potential return to investors

We are aiming to start at a reasonable pace and build upon our gathered momentum. This means that we aim to increase our revenues by 15% a year, which will lead to an annual potential return for investors of around 5%.

Market Analysis

A. Description of total market

There are several markets we could consider given the nature of our activity, however, we can integrate our assisted care in the larger category of the nursing care industry. In the United States, this has come to reach a total of around 30,000 companies, with a combined annual revenue of close to $100 billion. These companies operate around 60,000 nursing facilities. It is estimated that the average nursing home has an average annual revenue of around $5 million.

One of the interesting characteristics of the market is the fact that it is highly labor intensive, with annual revenues per worker of less than $50,000. We have decided to compete with this in two manners: first, by increasing the average salary in our association to be included in the medium to high range, in order to stimulate and motivate our employees; and second, we emphasize the importance of quality service to all our employees, the mark on which we build our credentials.

B. Industry trends

The market itself is constantly growing, although it is still dependable on the demographics of the consumers. With the old age period of life prolonged due to medical conquests, it becomes more likely now that, after retirement, an individual may live up to 20 years after that. This means that it is now more probable that an individual may be in need of assisted care in the final years of his life.

Following this analysis, we can point out that the industry trend seems to be continuously ascending and that we are likely to see an expansion of the market in the years to come, especially as average life expectation is also likely to increase gradually in the U.S.

C. Target market

We can use the socio-economic and psychological variables to narrow the market down to our target market. In terms of demographical variables, we are generally targeting individuals over the age of 65, although this generally is extended to individuals who are well into their 70s. Since we provide assisted living services rather than full healthcare services, we tend to be able to cover a segment of the population who is also younger, which is why we can set our minimum range from 65 years onwards.

In terms of economic variables, we are targeting retired individuals with annual revenues around or over $50,000 a year. As mentioned, our services are not necessarily in the premium range, but rather in the average range, which means that this would be a reasonable revenue average for our customers.