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This Assignment will help you define who your customers are (and specificity is the key to success here), define why your company has a competitive advantage over others to attract and retain your customer base, and research regulations you will need to understand to get started as well as to maintain your enterprise.
Assignment checklist:
3.3: Competitors (from business plan outline in course resources)
- Explanation
- Table
3.4 Competitive advantage
3.5 Regulations
Access the
rubric
.
Reading and Resources
In your reading, you will examine marketing concepts and research as well as competitive advantage.
1. Read: Market research – introduction (SBA website): All hyperlinks under the help section on the right
2. Access the following article from the Library:
O’Shannassy, T. (2008). Sustainable competitive advantage or temporary competitive advantage. Journal of Strategy and Management, 1(2), 168–180. doi:http://dx.doi.org/10.1108/17554250810926357
3. Review the resource – Bureau of Labor Statistics –
https://www.bls.gov/iag/tgs/iag51.htm
4. Access the following videos from the Library:
Overview of Competitive Strategy
To Attract your Market, Create Unique Value
Bad Competition can Sour Good Markets
BUSINESS PLAN
[Your Name], Owner
Date
1
. EXECUTIVE SUMMARY
1.1 Product
1.
2
Customers
1.
3
What Drives Us
2. COMPANY DESCRIPTION
2.1 Mission and Vision Statements
2.2 Principal Members at Startup (In Unit 7 you will expand on this section to include medium and long term personnel plans for all team members, including the line staff.)
2.2.1 Using chapter 10 of your text, write the plan, using the section in Chapter 10 that shows how to introduce each team member and describe their background and responsibilities. You will start with the leaders and managers, then discuss other employees as needed for your company to grow.
2.2.2 Use this spreadsheet to show the planning
Leaders/managers (unit 1)
When needed (number of months/years after opening)
Outside Services
Needed
Key Functions
Add line staff (Unit 7)
2.3 Legal Structure 4 >3.1 Industry (from SBA, Business Guides by Industry – https://www.sba.gov/managing-business/business-guides-industry, and Bureau of Labor Statistics – https://www.bls.gov/iag/tgs/iag
5 1.htm, )
3.1.1 Industry description 3.2.1 Resources used Add SBA part here Then: Fill in spreadsheet using this example from the text: Housewife :
Married Couple:
Age: 35–65 Age: 35–55 Income: Fixed Income: Medium to high Sex: Female Sex: Male or Female Family: Children living at home Family: 0 to 2 children Geographic: Suburban Geographic: Suburban Occupation: Occupation: Varies Attitude: Security minded Attitude: Security minded, energy conscious Older Couple: Elderly: 55–75 Age: 70+ High or fixed Income: Fixed Male or Female Sex: Male or Female Empty nest Family: Empty nest Geographic: Suburban Geographic: Suburban White-collar or retired Occupation: Retired Security minded, energy conscious Attitude: Security minded, energy conscious Explain who you are targeting and where they are located beginning with the heading “Customers.” Insert information here using these guidelines: Information About Your Target Market – Narrow your target market to a manageable size. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market: Distinguishing characteristics – What are the critical needs of your potential customers? Are those needs being met? What are the demographics of the group and where are they located? Are there any seasonal or cyclical purchasing trends that may impact your business? Size of the primary target market – In addition to the size of your market, what data can you include about the annual purchases your market makes in your industry? What is the forecasted market growth for this group? For more information, see our market research guide for tips and free government resources that can help you build a market profile. How much market share can you gain? – What is the market share percentage and number of customers you expect to obtain in a defined geographic area? Explain the logic behind your calculation. Then:
Estimated Market Share
Competition 60%
Home Improvements Inc. 30%
Product Line Quality 4 5 Technology 4 5 Advertising 5 Sales Force 5 Distribution 3 4 Price 4 4 Installation 4 5 Ease of Use 4 5 Appearance 3 5 Design 4 5 Useful Life 4 4 Responsiveness 3 5 Availability 5 Technical Expertise 4 5 Repair Service 3 5 Efficiency 3 5 Guarantee/Warranty 5 5 On Time Capability 4 5 Industry Reputation 3 5 Write an explanation of your findings using information from the spreadsheet using these guidelines: · Market share · Strengths and weaknesses · How important is your target market to your competitors? · Are there any barriers that may hinder you as you enter the market? · What is your window of opportunity to enter the market? · Are there any indirect or secondary competitors who may impact your success? · What barriers to market are there (e.g., changing technology, high investment cost, lack of quality personnel)? 5.1 Growth Strategy
· A market penetration strategy. · A growth strategy. This strategy for building your business might include: an internal strategy such as how to increase your human resources, an acquisition strategy such as buying another business, a franchise strategy for branching out, a horizontal strategy where you would provide the same type of products to different users, or a vertical strategy where you would continue providing the same products but would offer them at different levels of the distribution chain. · Channels of distribution strategy. Choices for distribution channels could include original equipment manufacturers (OEMs), an internal sales force, distributors, or retailers. · Communication strategy. How are you going to reach your customers? Usually a combination of the following tactics works the best: promotions, advertising, public relations, personal selling, and printed materials such as brochures, catalogs, flyers, etc. After you have developed a comprehensive marketing strategy, you can then define your sales strategy. This covers how you plan to actually sell your product. 5.2 Your overall sales strategy should include two primary elements: · A sales force strategy. If you are going to have a sales force, do you plan to use internal or independent representatives? How many salespeople will you recruit for your sales force? What type of recruitment strategies will you use? How will you train your sales force? What about compensation for your sales force? · Your sales activities. When you are defining your sales strategy, it is important that you break it down into activities. For instance, you need to identify your prospects. Once you have made a list of your prospects, you need to prioritize the contacts, selecting the leads with the highest potential to buy first. Next, identify the number of sales calls you will make over a certain period of time. From there, you need to determine the average number of sales calls you will need to make per sale, the average dollar size per sale, and the average dollar size per vendor. 5.3.1 Internet Strategy (from the text) 5.3.1 Tracking ROI form website 5.3.2 Discuss how you will assure ethical practices are being used in your marketing and selling. Year 1 Year 2 Year 3 Costs/Goods Sold
GROSS PROFIT
OPERATING EXPENSES
Salary (Office & Overhead) Payroll (taxes, etc.) Supplies (Office & Operation) Repairs & Maintenance Car, Delivery & Travel Accounting & Legal Rent Telephone Utilities Insurance Taxes (Real Estate, etc.) Interest Depreciation Other Expenses
TOTAL EXPENSES
NET PROFIT BEFORE TAXES
Income Taxes
NET PROFIT AFTER TAX
Owner Draw/Dividends
ADJUSTED TO RETAINED
Pre-Startup EST. Year 1 Year 2 Year 3 Cash on Hand
CASH RECEIPTS
Cash Sales Collections from CR Accounts Loan/Cash Injection
TOTAL CASH RECEIPTS
TOTAL CASH AVAILABLE
CASH PAID OUT
Purchases Gross Wages
SUBTOTAL
Loan Principal Payment Capital Purchase Other Startup Costs Reserve and/or Escrow Others Withdrawal
TOTAL CASH PAID OUT
CASH POSITION
Assets
Start Date: End Date:
CURRENT ASSETS
Cash in Bank Accounts Receivable Inventory Prepaid Expenses Other Current Assets
TOTAL CURRENT ASSETS
FIXED ASSETS
Machinery & Equipment Furniture & Fixtures Leaseholder Improvements Land & Buildings Other Fixed Assets
TOTAL FIXED ASSETS
(net of depreciation)
OTHER ASSETS
Intangibles Deposits
TOTAL OTHER ASSETS
TOTAL ASSETS
Liabilities & Equity
CURRENT LIABILITIES
Accounts Payable Interest Payable Taxes Payable Notes, Short Term (due in 12 months) Current Part, Long-Term Debt
TOTAL CURRENT LIABILITIES
LONG TERM DEBT
Bank Loans Payable Notes Payable to Stockholders LESS: Short-Term Portion Other Long-Term Debt
TOTAL LONG-TERM DEBT
TOTAL LIABILITIES
OWNER’S EQUITY
Invested Capital Retained Earnings
TOTAL OWNERS EQUITY
TOTAL LIABILITIES & EQUITY
Customers
DIRECT COSTS
Fixed Costs ($)
Variable Costs (%)
Cost of Goods Sold Inventory Raw Materials Direct Labor
INDIRECT COSTS
Salaries Other Costs
Total Fixed Costs
Total Variable Costs
BREAK-EVEN SALES LEVEL:
Running head: BUSINESS PLAN: NURSING CARE FACILITY 1 BUSINESS PLAN: NURSING CARE FACILITY 2 Business Plan: Nursing Care Facility Shannon Oberlin 1/15/2018 Business Plan: Nursing Care Facility
3.1. Industry
3.1.1 Industry description The business offers Skilled Nursing Home services, and it is classified under Nursing Care Facilities Industry: NAICS 6231 which is under the nursing and residential care facilities subsector. Its main focus will be the provision of rehabilitative and inpatient nursing services to patients needing continuous and closely observed healthcare. Services offered in this industry differentiates from what is offered in the hospital, in that the nursing care facility will focus on treatments, medical monitoring. Other different types of care facilities in this industry include hospice care, assisted living and home care (NoAuthorFound, 2017). The market research report of 2017 shows that the industry has generated revenue of up to $ 129 billion and a 1.4% annual growth between 2012 and 2017. The industry has up to 31,015 businesses operating in the US market which have created employment for approximately 1.7 million professionals. The Skilled Nursing Home will increase the employment rate of professionals in this subsector.
3.1.2. Resources used Services offered in this by this industry serve a fast-growing population in the United States thus the need to expand the scope of operations in Skilled Nursing Homes. In 2001 the United States spent approximately $92.2 billion in providing nursing home care to its citizens. The largest percentage of this expenditure was used in reimbursing professionals and equipping the nursing homes with equipment.
The most important resources needed in operating the Skilled Nursing Home will be securing a suitable and secure location which has access to essential services. The center will also need professional services from at least 15 trained nurses who will be responsible for the welfare of the patients/client and also managerial purposes. Among the facilities needed for this business will be a standby ambulance which will be housed in the nursing home facility.
3.2. Customers
3.2.1. Target customer analysis Explanation
According to the 2010 census report, there are 99 million persons aged 50 years and above living in the United States (FactFinder, 2017). Assuming that 75% of this population still can take care of themselves or have family members who take care of them our number will reduce to 74 million. Considering that we will only have one physical location, we can reduce the number of willing clients by the share of population covered by the location. The assumption is that we can only cater for people living in the county of location. The target customers will include patients who need short-term care services and those who need long-term or extended care services. Due to an extended life expectancy in the United States, the population of people aged above 50 is expected to increase by 70%. This increases disability cases which will call for the use of services offered by the Nursing Care Facility. The demand for nursing care will lead to an increase in the number of adult patients aged 65 years and above. Besides this population, there is the elderly population who need assisted living care services in their old age. This includes persons who are 70 years and above. The main concerns of this class of patients are to be facilitated by well trained and skilled nurses as well as to be involved in the treatment and living plan. Table
Older adults Elderly: Age: 50–65 Age: 65+ Income: High or fixed Income: Fixed Sex: Male or Female Sex: Male or Female Family: Empty nest Family: Empty nest Geographic: Suburban Geographic: Suburban Occupation: White-collar or retired Occupation: Retired Attitude: Security minded, energy conscious Attitude: Calls for respect and active involvement in the treatment/living plan References NoAuthorFound, (2017). Long Term Care Market Analysis by Service (Home Healthcare, Hospice, Nursing Care, Assisted Living Facilities) and Segment Forecasts to 2024. Grand View Research, Inc. Retrieved from:
https://www.grandviewresearch.com/industry-analysis/long-term-care-services-market
FactFinder, (2017). Profile of General Population and Housing Characteristics: 2010 more information 2010 Demographic Profile Data. Fact Finder. Retrieved from:
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF
3. MARKET RESEARCH
3.2 Customers (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanations)
Housewife
Age:
Income:
Sex:
Family:
Occupation:
Attitude:
3.3 Competitors (from SBA site fill in worksheet, then use text for spreadsheets and follow-up explanation)
Fill in spreadsheet using this example from the text:
4
5
2
3
1
3.4 Competitive Advantage
Read: Sustainable competitive advantage or temporary competitive advantage: Improving understanding of an important strategy construct.
3.5 Regulation (use SBA site to fill in blanks, and use https://www.sba.gov/managing-business/business-law-regulations as a resource)
4. PRODUCT/SERVICE LINE
4.1 Product or Service
4.2 Pricing Structure
4.3 Product/Service Life Cycle
4.4 Intellectual Property Rights
4.5 Research & Development
5. MARKETING and SALES
5.3 Communication Strategy
6. FINANCIAL PROJECTIONS
6.1 Profit & Loss
Sales
Outside Services
Advertising
6.2 Cash Flow Complete section 6.3 of your business plan outline
Outside Services
Supplies
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Accounting & Legal
Rent
Telephone
Utilities
Insurance
Taxes (Real Estate, etc.)
Interest
Other Expenses
6.3 Balance Sheet
Other
6.4 Break-Even Analysis
Supplies
Repairs & Maintenance
Advertising
Car, Delivery & Travel
Rent
Telephone
Utilities
Insurance
Taxes
Interest
Depreciation
6.5 Financial Assumptions
6.5.1 Assumptions for Profit and Loss Projections
6.5.2 Assumptions for Cash Flow Analysis
6.5.3 Assumptions for Balance Sheet
6.5.4 Assumptions for Break-Even Analysis
