Elderly Daycare Business Plan Template
If you want to start an elderly daycare or expand your current elderly daycare business, you need a business plan.
The following elderly daycare business plan template gives you the key elements to include in a winning adult daycare business plan.
Sample Business Plan For Elderly Daycare Businesses
Below is an elderly daycare business plan example with each of the key sections to help you write an elderly daycare business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a senior daycare business that serves elderly residents living in [Location] and the surrounding areas. Our business is open daily for local senior residents who want to engage in a fun community while getting the care they need. We offer a center full of activities and care services to ensure every resident feels like they are a part of a compassionate and caring community. Every day they come to our center, our patients can expect high-quality meals and snacks, engaging activities and social interaction, and compassionate healthcare and support. With all of these services and more, patients will feel right at home when they come to [Company Name].
Products Served
The professional staff at [Company Name] will provide numerous services to ensure all our senior residents are cared for and are in optimal health. Some of these services include:
- Social gatherings and activities
- Nutritional meals
- Physical therapy
- Occupational therapy
- Nursing
- Safe transportation to and from the daycare center
Customer Focus
[Company Name] will serve the aging community (55+) of [Location]. The demographics of this area are as follows:
- 400,613 residents
- Average income of $60,000
- 72.1% married
- 46.3% retired and/or over the age of 55
- Median age: 42 years
Management Team
[Company Name] is owned and operated by [Founder’s Name], a Registered Nurse who has worked for the past 20 years in various nursing homes and senior daycare centers around [Location]. At each location she worked at, she was never satisfied with the level of care, compassion, and cleanliness of each facility. She knew that local senior residents deserved a daycare center they could call their second home. This requires training compassionate staff, providing enjoyable activities, and offering high-quality healthcare services. With these goals in mind, [Founder’s Name] set out to establish a senior daycare center with all of these features.
Though she has never run a business or senior daycare center herself, she has spent considerable time in the industry and learned all aspects (including operations, marketing, and management) of running a senior daycare business.
Success Factors
[Company Name] has several advantages over its competition. Those advantages include:
- Our location is in a high-volume area with easy access from multiple residential and commercial areas.
- The management team has a track record of success in the senior daycare and nursing home industries.
- [Company Name] will offer all daycare services for an affordable price.
- [Company Name] will contain compassionate and friendly staff that will keep residents coming back.
Financial Highlights
[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Initial supplies and equipment: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a senior daycare business that serves elderly residents living in [Location] and the surrounding areas. Our business is open daily for local senior residents who want to engage in a fun community while getting the care they need. We offer a center full of activities and care services to ensure every resident feels like they are a part of a compassionate and caring community. Every day they come to our center, our patients can expect high-quality meals and snacks, engaging activities and social interaction, and compassionate healthcare and support. With all of these services and more, patients will feel right at home when they come to [Company Name].
[Company Name] is owned and operated by [Founder’s Name], a Registered Nurse who has worked for the past 20 years in various nursing homes and senior daycare centers around [Location]. She was never satisfied with the quality of the facilities she worked for. Therefore, she set out to set up a daycare center that focused on cleanliness, compassion, and improving the quality of life of all its patients.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has identified a potential location to run the center from. She has begun lease negotiations and pricing out of construction to transform the building into a comfortable center for those who will be frequenting our business.
Since incorporation, the company has achieved the following milestones:
- Found a potential commercial location and signed a Letter of Intent to lease it
- Developed the logo, social media accounts, and website located at [website]
- Finalized the list of services the company will be able to provide
- Determined the equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
The professional staff at [Company Name] will provide numerous services to ensure all our senior residents are cared for and are in optimal health. Some of these services include:
- Social gatherings and activities
- Nutritional meals
- Physical therapy
- Occupational therapy
- Nursing
- Safe transportation to and from the daycare center
III. Industry Analysis
The world population is aging at a rapid rate. Due to baby booms earlier in the previous century and a currently declining birth rate, the ratio of seniors to younger individuals increases every year. Within the next couple of decades, there will be more elderly individuals than children in many countries around the world. This presents many challenges, including how to properly care for these aging populations.
Adult daycare is one industry that is rising up to the challenge. Many elderly individuals don’t want to live in nursing homes but can’t be left alone without some supervision. Furthermore, loneliness is a rampant issue for elderly populations, so they need social engagement in a safe and supervised setting. Adult daycare centers can provide healthcare services, supervision, and social activity for elderly individuals. This allows them to get everything they need for a good quality of life without losing much of their autonomy.
With all of these benefits, adult daycare services are becoming increasingly popular. According to Global Newswire, the adult daycare industry is currently valued at $842 billion USD and is expected to grow at a compound annual growth rate (CAGR) of 8.5% over the next five years. However, we expect this growth rate to continue until the end of the decade due to the increasing demand for these services. Therefore, this is a perfect time to open up a new adult daycare center, as demand will only increase with time.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the aging and disabled residents of [Location] and its surrounding areas.
The community of [Location] has thousands of retired, elderly adults who require more attention and care than younger adults. Much of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and requires round-the-clock care. There is also a large segment of disabled adults who have disabilities that make it difficult to live independently or without supervision.
Customer Segmentation
We will primarily target the following three customer segments:
- Isolated senior residents: Many individuals spend much of their golden years alone. Therefore, loneliness is a rampant issue for the aging demographic. Our center serves to alleviate this loneliness by bringing together like-minded elderly individuals and engaging them in social activities.
- Senior residents with health conditions or disabilities: Many seniors also live with chronic health conditions or disabilities that make it harder for them to care for themselves or be independent. Our daycare center will offer basic healthcare services, supervision, and other support so that they never feel alone or neglected.
- Family members of elderly individuals: Some senior individuals need to be monitored around the clock. However, families can’t always be available to care for their loved ones 24/7. Therefore, we will market ourselves to family members and other caregivers who need extra help caring for their aging loved ones throughout the day.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a 20-mile radius of [Company Name] and therefore provide direct or indirect competition.
Raleigh Hills Care Center
Established in 1998, Raleigh Hills Care Center is an adult daycare center and assisted living facility. The facility offers permanent living accommodations as well as daily services for those who wish to remain independent and live at home. Raleigh Hills Care Center provides numerous activities for social engagement daily as well as seven-day-a-week admission and physician services. Furthermore, the facility provides modern amenities, including Wi-Fi, flat-screen TVs, and restaurant-style dining.
Angel Care Services
Incorporated in 1987, Angel Care is a privately owned business that operates multiple adult daycare centers across the nation. These centers offer a varied agenda of activities daily as well as some of the best healthcare that an adult daycare center can provide. In addition to the scheduled activities, residents can also enjoy Wi-Fi, cable, board games, fine dining, and manicured gardens to walk through at their leisure.
Cedar Park Senior Center
Incorporated in 2017, Cedar Park Senior Center is a popular adult daycare center that provides skilled nursing, activities, and general support and care. It’s one of the best places in town for senior residents wanting to be a part of a fun and loving community. Family members no longer have to worry about their loved ones during the day. All of Cedar Park’s residents are properly cared for, with plenty of engaging activities, social interaction, fine dining, and healthcare and support.
Competitive Advantage
[Company Name] has several advantages over its competition. Those advantages include:
- Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field but place a special emphasis on compassion.
- Location: [Company Name] will be able to service the entire metropolitan area of [Location] and its surrounding areas.
- Quality Care: [Company Name] will provide expert services, so patients will receive quality treatment and care while being in a comfortable facility.
- Facility: [Company Name]’s facility will be constructed ADA-compliant, spacious, clean, and comfortable to ensure the resident is at their maximum satisfaction.
- Pricing: [Company Name]’s pricing will be more affordable than its competition. The company will also work on payment arrangements with the resident and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high. The company will also accept most types of insurance, as well as Medicare and Medicaid.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Knowledgeable, friendly, expert staff of healthcare professionals.
- Quality level of service and care.
- Cleanest and most comfortable senior daycare center in the metro area.
- Most competitive pricing for the area’s adult daycare facilities.
Promotions Strategy
[Company Name] will target the elderly and disabled residents of [Location] and the surrounding areas. The company’s promotions strategy to reach the most clientele include:
Local Hospitals
[Company Name] will work to make sure the hospitals send referrals and highly recommend [Company Name] to their patients and their families.
Website
[Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied residents and their families. The website will be highly informative and be designed in a way that is friendly and eye-catching.
SEO
[Company Name] will invest in a high SEO presence so that the daycare facility is listed at the top of the Google or Bing search engine when a family member is researching senior daycare in [Location].
Billboard
[Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.
Advertising
[Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters that focus on the retired and aging population.
Social Workers
[Company Name] will collaborate with social workers who work with individuals who have severe disabilities and are not able to live independently.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing our senior daycare services.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles in order to execute our business plan and ensure the company’s success:
Administrative Functions
- Bookkeeping
- Marketing
- Staff management and scheduling
- Hiring and training staff
- Other general administrative functions
Health Care Functions
- Nursing care
- Physical therapy
- Occupational therapy
Miscellaneous
- Meal preparation and cleanup
- Janitorial functions
- Scheduling and running activities and programs
- Engaging with residents and visitors during activities
- Driving patients to and from the daycare center
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is owned and operated by [Founder’s Name], a Registered Nurse who has worked for the past 20 years in various nursing homes and senior daycare centers around [Location]. At each location she worked at, she was never satisfied with the level of care, compassion, and cleanliness of each facility. She knew that local senior residents deserved a daycare center they could call their second home. This requires training compassionate staff, providing enjoyable activities, and offering high-quality healthcare services. With these goals in mind, [Founder’s Name] set out to establish a senior daycare center with all of these features.
Though she has never run a business or senior daycare center herself, she has spent considerable time in the industry and learned all aspects (including operations, marketing, and management) of running a senior daycare business.
Hiring Plan
[Founder’s Name] will serve as the center’s Founder and Chief Executive Officer. She will hire the following personnel in order to maintain a high-quality senior daycare center.
- Center Manager (1)
- Center Assistant Managers (2 to start)
- Nurses (3 to start)
- Physical Therapists (1 to start)
- Occupational Therapists (1 to start)
- Social Director (1)
- Activities Coordinators (2 to start)
- Kitchen Staff (3 to start)
- Janitorial Staff (2 to start)
- Drivers (2 to start)
IX. Financial Plan
Revenue and Cost Drivers
The revenues for [Company Name] will come from the fees it will charge the residents and their insurance for the health care services it provides.
The cost drivers for the company will be the payroll of the staff, lease on the building, office supplies and equipment, food, beverages, social event supplies, medical equipment, and marketing costs.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $500,000 to launch. Specifically, these funds will be used as follows:
- Store design/build: $200,000
- Initial supplies and equipment: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of patients | Average |
|---|---|
| FY 1 | 100 |
| FY 2 | 120 |
| FY 3 | 150 |
| FY 4 | 200 |
| FY 5 | 225 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
