Service Dominant Logic and Operations Management

This assignment delves into the concepts of service dominant logic and its application in operations management. It draws from various research studies that highlight the importance of understanding the dynamics between customers and businesses in creating value. The selected readings emphasize the significance of actor engagement, stakeholder synergy, and the use of big data analytics in optimizing business processes. By examining these perspectives, students can gain a deeper comprehension of how to effectively manage operations and create value for stakeholders.

Running head: BUSINESS PROPOSAL
BUSINESS PROPOSAL
Name of the Student:
Name of the University:
Authors Note:

1BUSINESS PROPOSAL
Executive Summary
The report focuses on the proposing a business plan for opening a wellness and home-
care centre for elderly people in Maldives. The centre provides a unique combination of both
premier home health care and community based services to the old aged people. The business
is to be established in Hulhumale region of Maldives. The Market research indicates that the
people in this particular region highly needs a quality homecare and wellness centre for the
senior citizen. After employing the well-educated and competent staffs, the old age centre can
become highly successful and service agency of choice in entire Maldives. Hulhumale is an
artificial island that is reclaimed and is located in the southern-most part of Maldives. It is a
reclaimed island that is undertaken by government owned corporation. The island is still
underutilized as compared to the other atolls in the Maldives region. It is a great opportunity
to start the business and earn profit in the long-run.
There is a high potential for growth and business in Hulhumale area of Maldives. The
liberal trade environment, development oriented lawful structure and dynamic private sector
all contribute to gain a conductive climate required for investment and trade. The market
location and potentials are highly advantageous for the proposed business plan. Consumer of
the services will be those families and individuals, who are constantly in the need of social
services and home health care.
All the facilities to the aged people will be provided inside one roof. The services
include physician, attorneys, health care facilities and insurance companies. The agency has
already developed excellent services with high qualified professionals. The company plans on
taking a debt through three year loan and further has no plans for additional debt. The health
and wellness care agency growth will be mainly through cash flow. The plan will include
assumptions for 100% sales on credit, sufficient cash on-hand at start-up so that any problems
with the cash flow can be easily prevented.
The methodology used to collect the data and information for the decision making
purpose mostly included surveys, publication research and various other techniques.
Secondary data were used that included both historical and present information. The business
development plan aims to help the senior citizens of Hulhumale region. The key outcome
obtained from the business development plan was that the market condition present in
Maldives is favorable enough to create the new business venture for the aged people.

2BUSINESS PROPOSAL
Table of Contents
1. Introduction:...........................................................................................................................4
1.1 Terms of References:.......................................................................................................4
1.2 Approach..........................................................................................................................4
1.3 Concepts and Models applied..........................................................................................6
1.4 Literature Sources............................................................................................................7
1.5 Assumptions.....................................................................................................................8
1.6 Timescales........................................................................................................................8
2. Business concept....................................................................................................................8
2.1. The service......................................................................................................................8
2.2. Target Market and Value added features........................................................................9
2.3. Window of Opportunity:.................................................................................................9
2.4. Vision statement:.............................................................................................................9
2.5. Mission Statement.........................................................................................................10
2.6. Objectives:.....................................................................................................................10
2.7. Core purpose:................................................................................................................10
3. Feasibility Research:............................................................................................................11
3.1. Product Feasibility........................................................................................................11
3.2. Industry Feasibility:......................................................................................................12
3.3. PESTEL Analysis..........................................................................................................12
3.4. Market Research:..........................................................................................................13
3.5. Organizational Feasibility:............................................................................................16
3.6. Financial Feasibility:.....................................................................................................16
3.7 Cost of failure:................................................................................................................18
3.8. Result of the Feasibility Research:................................................................................19
4. The Business Model.............................................................................................................19
4.1. Business Model Canvas:...............................................................................................19

3BUSINESS PROPOSAL
4.2. The core strategy:..........................................................................................................20
4.3. Resource needed:..........................................................................................................20
4.4. Value derivable for customers......................................................................................21
4.5. Discussion from the Business Model................................................................................22
5. The Business Plan:...............................................................................................................23
5.1. Summary:......................................................................................................................23
5.2. Objectives:.....................................................................................................................23
5.3. Key to Success:.............................................................................................................23
5.4. Mission..........................................................................................................................23
5.5. About the company:......................................................................................................24
5.6. Startup summary:..........................................................................................................24
5.7. Services:........................................................................................................................27
5.8. Market Analysis Summary:...........................................................................................27
5.9. Market segmentation:....................................................................................................28
5.10. Service Business Analysis...........................................................................................29
5.11. Competition and buying pattern..................................................................................29
5.12. Marketing strategy:.....................................................................................................30
5.13. Sales Strategy..............................................................................................................30
5.14. Sales Forecast..............................................................................................................31
5.15. Risk Management:......................................................................................................32
5.15.1. Challenges:...............................................................................................................32
5.16. Viability of the Plan:...................................................................................................33
5.17. Projected Timeline......................................................................................................37
5.17.1. Strategy and Implementation:..................................................................................38
Bibliography:............................................................................................................................39
References:...............................................................................................................................40

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List of Tables and Figures
Table I: Assumptions.................................................................................................................7
Table II: SWOT analysis............................................................................................................8
Table III: Monthly fees...........................................................................................................11
Table IV: Gantt Chart...............................................................................................................12
Table V: Daily service fees......................................................................................................19
Table VI: cash flows statement................................................................................................20
Table VII: Business Canvas Model..........................................................................................21
Table VIII: value derivable for customers...............................................................................22
Table IX: Start up Capital........................................................................................................27
Figure I: Market Analysis........................................................................................................27
Table X: Rate of growth of customers.....................................................................................28
Table XI: Break-even Analysis................................................................................................32
Table XII: Projected Timeline.................................................................................................37

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1. Introduction:
Old age home and wellness centre are the place where senior citizens are inhabited in
positive and friendly environment. The environment helps the old people to live comfortably
and sharing their ideas and thoughts with all like-minded people. In Maldives, the old aged
people are left out and not being given proper care and facilities. The old-age home business
idea is an innovative concept and highly beneficial for the community (Tomczak, Reinecke
and Kuss 2018). This is the home for extremely ill, unacceptable old peoples, poor or rich
people. This homecare and wellness centre will therefore be highly beneficial for aged
individuals, their families and society at large. The old age home is increasing at a global
level has also proved to be a blessing for various senior citizen. Hulhumale is a reclaimed
island and developing at a rapid pace to match with the global level. Large parts of the
population are in their old age and therefore setting up the new healthcare and wellness centre
will prove to be a great idea for the business proposal.
1.1 Terms of References:
The Home care and Wellness centre for the elderly people in Hulhumale is to provide
homecare and wellness facilities to the senior citizens. Most of the families’ lives together in
this region reside in a small rented apartment. The grown up children has to stay out most of
the time to earn livelihood for the family. As the basic rent of the Hulhumale region is
comparatively high than the rest of Maldives and income earned by a single person is not
enough to serve the basic and overall need of the family. The elderly persons are thus left
alone in the home as their grown up children have to go for work. This leads to leaving their
elder parents alone in the home or under the care of a maid. The elderly people at this age are
not properly cared and monitored well enough. Moreover, it has also been reported that the
children are sometimes guilty of leaving their parents behind and not taking care of their
parents.
1.2 Approach
To overcome this increasing problem or rising issue in Maldives, a homecare and
wellness centre for all such elderly people has been proposed. Therefore, for proper analysis
of market and business research, secondary data is to be used. The business is new to the
people and community therefore proper market and business analysis is necessary before
establishing the business. Moreover, the business also has conductive approach. The

6BUSINESS PROPOSAL
business is at its initial and start-up stage, hence it is highly important to ascertain the
potential area required for the business development. Business canvas model is to be used to
analyze the major nine building blocks of the business (Kothari, Mizik and Roychowdhury
2015).
The homecare and wellness centre may have specific objectives and goals. The main
goal of this business development plan is to help the senior citizen to live an independent,
safe and comfortable life. The foremost step is to create a business plan for the senior most
people that need to evaluate the wants and needs of the individuals. Application of SMART
method would be helpful in establishing the objectives for the organization. SMART method
stands for specific, measurable, achievable, relevant and time-bound. The prior section of the
objectives helps in evaluating the specific objectives that would be required to achieve the
desirable results. The second most element of the objectives helps in providing the required
details about the plan being measured. The third part is to determine if the available resources
are sufficient enough to attain the goals of the organization. Henceforth, it is also important
that the objectives is adequate to the senior needs and setting a time frame for completing the
goal is essential.
THE BUSINESS ENVIRONMENT
ASSUMPTIONS
(1) QUANITATIVE
AND FINANCIAL
INTERNAL EVIRONMENT EXTERNAL
ENVIRONMNET
The cost of setting the business
would be assumed to be Rf. 7 to 8
lakh.
Employees to be hired would also
pay according to their number of
hours for the service provided.
The cost of health equipments for
the providing the services will be
assumed to be around Rf. 50,000
The infrastructure cost in
the area is assumed to be
stable.
It is assumed that the
insurance and tax charge
of the healthcare
industry is assumed to be
very high.
The number of
employees to be hired in
the business will
assumed to be around 30
due to high labor cost

7BUSINESS PROPOSAL
Initially only less
amount of employees is
to be hired.
Inflation and
employment rate is
assumed to be favorable.
ASSUMPTIONS
(2) QUALITATIVE
It is assumed through high quality
services more and more old aged
people are stay in the centre will
increase by the year end.
It is supposed that by the end of
three years the old age stay in the
hospital would increase up to 200.
It is assumed that the
beliefs of the people and
community are
constantly changing at a
high rate.
Latest technology is to
be implemented by
providing the senior
citizen the best services.
Table I: Assumptions
1.3 Concepts and Models applied
In order to make the business successful, it is important that the proposal for the
business development is highly relevant. The start-up business should deal in providing a
customized care options and respite to the senior people. The resources should be adequately
realized by facilitating the best services to its customers. The target customers are the lonely
old aged people (Baker 2016). The business should be strategically managed so that the
individuals by proper planning so that the mission and vision of the company is achieved.
With the help of SWOT analysis the external and internal business environment for Old age
agency in Maldives is analyzed. Business canvas model is applied to know the current
position of the market. Moreover, value chain analysis for the organization has also been
made.
INTERNAL
STRENGTHS WEAKNESSES
Highly skilled
workforces
Innovative idea
Reliable
stakeholders
Well planned
High
Investment
New to the
business for
senior care
Limited room

8BUSINESS PROPOSAL
operations
Large target
market
Maldives climate
Large target
for growth
EXTERNAL
OPPORTUNITIES
Low inflation rate
Change in the
behavior of
customers increase
the growth of
agency
Large number of
population in their
aged stage.
New customers
from the online
channels
THREATS
Latest advent of
technology can
proved to be
highly
dangerous for
the old age
centre.
Many small
competitors.
Table II: SWOT analysis
1.4 Literature Sources
Tomczak, T., Reinecke, S. and Kuss, A., 2018. Introduction. In Strategic Marketing (pp. 1-
18). Springer Gabler, Wiesbaden.
Kothari, S.P., Mizik, N. and Roychowdhury, S., 2015. Managing for the moment: The role of
earnings management via real activities versus accruals in SEO valuation. The Accounting
Review, 91(2), pp.559-586.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.

9BUSINESS PROPOSAL
Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory
study of branded social content and consumer engagement. Psychology & Marketing, 32(1),
pp.15-27.
Behrangrad, M., 2015. A review of demand side management business models in the
electricity market. Renewable and Sustainable Energy Reviews, 47, pp.270-283.
Vargo, S.L., Wieland, H. and Akaka, M.A., 2015. Innovation through institutionalization: A
service ecosystems perspective. Industrial Marketing Management, 44, pp.63-72.
Palizban, O., Kauhaniemi, K. and Guerrero, J.M., 2014. Microgrids in active network
management—Part I: Hierarchical control, energy storage, virtual power plants, and market
participation. Renewable and Sustainable Energy Reviews, 36, pp.428-439.
Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability
and brand performance. Journal of Advertising, 44(1), pp.37-46.
Wilden, R. and Gudergan, S.P., 2015. The impact of dynamic capabilities on operational
marketing and technological capabilities: investigating the role of environmental
turbulence. Journal of the Academy of Marketing Science, 43(2), pp.181-199.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
1.5 Assumptions
It is assumed that the market demand is sustainable in nature. The homecare team is
highly committed to the new venture. The existing business environment of the Hulhumale
region is stable despite of the unfavorable economical condition. Funds will be availed
according to the budget prepared. The designing of the homecare and wellness centre will be
made according to the professionals and homecare architects (Ashley and Tuten 2015). The
skilled nurses are highly committed towards the project.
1.6 Timescales
This proposal for the homecare and wellness of elderly start-up business and this is
made for the initial three year time period.

10BUSINESS PROPOSAL
2. Business concept
2.1. The service
The business concept of opening the old age and wellness centre in the Hulhumale
region is highly innovative in nature. The residential and age old centre would help in
providing healthy and safe environment. This would enable the adults to enjoy freely besides
having the best assistance in healthcare facilities. The agency is to provide assistance to
senior citizens in their day to day activities. This includes helping the old aged people in
providing medical aids, physical therapy, meals, reminder and personal grooming. The main
aim of the organization is to provide the elderly people the best facilities from both the world
(Luxton, Reid and Mavondo 2015). This includes private homecare environment and all
healthcare facilities.
2.2. Target Market and Value added features
The agency aims to provide maximum healthcare facilities for their seniors. The
agency would therefore require well trained staffs for supporting the healthy livings of old
age people. The resistance and support will be providing to the local communities and entire
Maldives area. The rooms provided to the senior residents are highly furnished and includes
all the latest gadgets and technologies. The room has also private access to the present patio
in the nearby regions (Wilden and Gudergan 2015). All the basic amenities are also provide,
which includes proper furniture, linens toiletries. Moreover, laundry and cleaning services
will be provided on a weekly basis to the individuals.
The old aged people will also have proper access to spa and swimming facilities. The
pool also has latest features, equipped with ADA compliant lift for all the elderly people
having difficult in entering the spa or pool area. Moreover, total of 3 meals and 2 snacks will
be provided to the old aged people on a daily basis. Reminder facilities will be provided to
those individuals, who are unable to take their own medication. Healthcare and clinical
facilities like physiotherapy and speech therapy shall be provided to that senior citizen who
needs it.
Monthly price for staying in the old aged facility is established at Rf. 20,000 per
month. There is also a pre admission fees that is to be paid once in a year. Moreover
additional monthly fees for various products and services provided are listed below:
Product/services Price
Private room Rf. 20,0000 per month
Additional hour Rf. 20,000 per month
Healthcare supplies Rf. 20,000 per month
Dementia care Rf. 15,000 per month.

11BUSINESS PROPOSAL
Table III: Monthly fees
2.3. Window of Opportunity:
The old age home should be located in a calm and pollution free environment to gain
competitive advantage. It is to be located near the beach besides proper communicating
facilities with the outer world. To gain competitive advantage with the local old age home
and nursing homes. The room provided to the individuals should be properly ventilated and
all the latest facilities are to be implemented.
2.4. Vision statement:
The main vision is to become the best and number one choice in all over Hulhumale
in regards to Old age and Healthcare wellness agencies. Moreover, the organization wants to
be regarded as the top leader providing effective services in all over Maldives within the next
5 years.
2.5. Mission Statement
The major business is to establish first-class home health care facilities that will take
care of the elderly people by providing affordable services to their customers. The main
motto is to become one of the leading wellness and aged homecare industry in Hulhumale
and Maldives. The main mission is to maximize the quality of life of seniors and assisted
living in the form of personalized services and high care facility that leads to a healthy, safe
and caring environment (Vargo, Wieland and Akaka 2015)
2.6. Objectives:
 To provide safe and healthy environment to the senior most people.
 To promote mental and physical health.
 To train and hire qualified and ethical staff members
 To provide a quality care to the individuals that would exceed their peers.
 To make maximum profits through quality of services and care facilities that is being
provided by them.
2.7. Core purpose:
To provide the senior members an economical alternative by living in a more assisted
and wellness centre. This approach would help in increasing the standard of living of the
individuals. The business development plan is based on zero based budgets as it is a start-up
business therefore the basis for the budget is considered as either for a cost centre or profit
contribution centre.
Activity Days(March-April)

12BUSINESS PROPOSAL
April M
ay -
June
July-
August
Septembe
r – oct.
Nov-
Dec
Jan-
Feb
Marc
h
Market research
Collecting data from the secondary
sources
Overall Architecture
Project planning
Resource planning
Market Analysis
Gathering business requirements
Hiring well skilled employees
Building rapport and trust
Business promotion & training
Implementation
Evaluating outcomes and processes
Table IV: Gantt Chart
3. Feasibility Research:
3.1. Product Feasibility
Home care and wellness centre for taking care of those elderly people, who cannot be
treated well in their home is a great concept. It is a great option for all such aged people and

13BUSINESS PROPOSAL
their family to live a peaceful life. Moreover, it would also serve as a cost effective
alternative to the elderly nursing homes. The old aged home care and wellness centre would
be a community based and care giving facility to serve the needs of rapidly increasing elderly
population of Maldives. Since various decades, old age home and residential facilities for
elderly people have existed in various forms in different places.
In Hulhumale region of Maldives no such agency has been made to take care of the
elderly people. This is an innovative concept for the potential market. This is a thriving
industry, where every passing day more and more people get incapacitated in one way or
other. Over the past few years, different countries have developed its licensure requirements
so that the quality of all these facilities can be adequately standardized (Tanta and Priem
2016). The elderly homecare agency before operating its business in the Hulhumale area also
must be first licensed under the Code of Maldives Regulation.
The homecare and wellness centre will comply with the requirements and licensure
stated under the laws and regulation. The wellness agency for the elderly people will lay
major emphasis on providing high quality services to the aged people. It will be ensured that
the individual’s independence is also promoted in such a pleasant and safe environment. The
elderly people when left alone or staying out of nursing home, they seek immense help for
preparation of food, housekeeping and laundry. As an alternative option for the citizens of
Maldives, the new wellness and healthcare agency will help in providing assistance, housing
and wellness facilities to the old aged people.
The facilities will also include meal preparation consisting of special and general diet,
linen, laundry, housekeeping as well as personal care. Adequate number of staffs will be
provided to the elderly people and assist them in their recreational and daily activities (Zhang
et al. 2015). Furthermore, staff will also arrange the appointment with the physicians and also
coordinate transportation.
Elderly people more often feel the express their desire for a companionship or friend
in need for assistance. They prefer not to impose much burden on their family members. The
concerned members of the family are forced to acknowledge the fact that it is really difficult
for them to take care of the age old parents in their home. Therefore this new innovative
approach will help in accommodating the old age residents for twenty four hours a day and
seven days in a week.
The agency will also be staffed with full twenty four hour services with highly
qualified employees. The employees would be skilled nurses, who are trained to take
effective care of the old people. This would help in promoting the dignity of elderly people
and also respect their individuality. The elderly population in the country is also increasing in
the country. In the recent times, the elderly are living more long and therefore requires
alternative arrangements for living. Therefore, administrators and qualified owners of care
facilities are also in demands. Both the old aged residents and their relatives would feel
highly confident that adequate level of care will be provided to their parents along with
proper supervision and monitoring. Fund would be availed through loans to facilitate the

14BUSINESS PROPOSAL
property acquisition for the agency. The loan will also be advantageous for leasehold
improvements, lease deposit, furniture and insurance.
3.2. Industry Feasibility:
There is a large gap in the market as the people living in the Hulhumale area does not
have any proper care centre for elderly people. The agency is to be established near the
airport so that the family of the aged people can regularly pay visit to them whenever they
like.
3.3. PESTEL Analysis
With the help of PESTEL analysis, both the negative and positive factors can be
easily identified. The new home care and wellness centre would create a positive impression
in the society by providing such residential services. Being a new venture it does not have to
overcome the challenges present in the diverse market condition at a global level. The major
negative factor is ascertained due to varied changes in the political and legal scenario existing
in Maldives.
Political factors: the political scenario of Maldives is highly stable that results in few
complications in the healthcare segment. The new venture will enjoy a favorable position in
the business market. The rates of taxation are also highly favorable and rates of taxation for
healthcare and wellness industry is comparatively low.
Economic factors: Maldives is a developed nation with positive economic growth. It
would be highly beneficial for the organization to regulate the policies and design it as per the
market trends. The potential target customers are also rapidly increasing for availing the
desired services. In the recent times, recruitment of skilled and talented employee is difficult
for the old age home care. This could lead to low customer base for the old age venture. In
addition to this unemployment rate in the Hulhumale region is gradually increasing. Thus,
affects the individual’s purchasing power.
Social factors: in the current scenario, people are highly busy with their professional
life, thus need for old aged care home is rapidly increasing. This generates a perfect customer
base for attracting the potential target group in the healthcare centre. People always want the
best care for themselves and their families. The new business aims to attract more elderly
with its distinctive services as compared to various conventional health care agencies.
Personalized home services and homely atmosphere is provided as compared to other old age
homecare.
Technological Factors: with the advent of innovation and technology, the economy is
increasing at a rapid pace. Improved and updated technology grows the business in every
sector of the economy. Improved and updated technologies will help in providing more
effective and efficient facilities to its consumers. On the other hand, the main target
customers are elderly people and their compatibility with the improved technology is also
very vital. The best choices should be provided to the aged people. Due to increase in the
technological cost the organization cost structure may be negatively affected.

15BUSINESS PROPOSAL
Legal Factors: there are various legal obligations relating to the healthcare facility.
The new venture for aged home care and wellness should comply with the nation’s law. The
modification of the existing or current law can create an adverse impact on the business
operational activities.
Environmental Factors: it is important to keep the sustainability of environment while
opening a new business. One of the major factors is waste management that is faced currently
by all the operating organization. Effective waste management program is necessary for
better living environment. The homecare and wellness centre should be surrounded by trees
to create greenery as well as fresh environment for the elderly people. Recycling process
should also be practiced to reduce the amount of waste generation.
3.4. Market Research:
The potential targets customers of the health and wellness centre are old aged men
and women, who cannot stay safely in their home ad need proper care and assistance. This
does not mean that they need full time skilled nursing care provided by the nearby hospitals.
In fact the target client market for the services provided includes people who are above 60
years of age and older. As per the survey of the population in Maldives, more than 30,000 are
above age 60 and 5000 of the population are above age 80. Many of these elderly adults are
widowed or single individuals. They may have outlived other friends and relatives. If such
elderly people are left alone at their places, forgetfulness or confusion may affect their mental
health and also render them unsafe. However, with effective supervision and assistance the
rising problems can be easily solved. The elderly will remain independent, safe and will be
able to maintain their dignity. They would also conserve their needed funds for effective and
proper medical care in future. Moreover, the federal and state funds are much higher and
costly to aid the individuals.
According to the Government report, 50% or more of the country population are
above age 60 with annual income of Rf. 5 laces or more. Out of the targeted residents of
Hulhumale region at least 60% of the people will easily avail the services offered and less
than 20% are dependent on their adult children’s. The cost of semi-private rooms in the
homecare and wellness agency would be Rf. 50,000 per month or Rf. 1500 per day. This is
very less than the cost of any hotel room. The residents and families investigating other
available options will find that the average cost of semi private room in any nursing home is
at least Rf. 3000 to 5000 per day. Furthermore, the cost to hire full 24 hour unskilled home
care staff is Rf. 100 per hour.
Individuals and families would choose this new homecare and wellness centre
because of the following reasons:
 High quality of the service and care provided.
 Safe, comfortable and home like environment.
 High quality of care provided.
 Locality is perfect, which makes visitation easier for the elderly relatives and friends.

16BUSINESS PROPOSAL
 Old age people are not in nursing home but wellness and homecare centre, thus giving
peace of minds to the residents and its families.
Presently, there are only limited old age care facilities in Maldives and cannot fulfill
the needs of majority of elderly residents. In most of the facilities, there are waiting lists and
report from the hospitals and rehabilitation centre shows that there are no adequate residential
options. Therefore this new business would be successful in such market area, where elderly
are unable to live alone and ready for proper home care facility.
Location: the old age care and wellness centre will be located in the Hulhumale
region, Maldives. Maldives is already known for its serene beauty worldwide. It is relevant
to open the agency in such an area, where people are familiar with the place. Hulhumale has
its reputation for beauty, affluence, relatively safety and is proximately close to the desired
clients and their family members. Hulhumale is also chosen because it is more affordable
than other places situated in Maldives. Moreover, the place has very less government
restrictions.
The elderly homecare and wellness centre will be located I a quiet residential area of
the region with large home. The old aged residents would be able to peacefully sit on the
patio or can go for short walk in the neighborhood as per their wish. The house will be made
of three storey with proper lift to accommodate 50 residents comfortably. The place would be
highly comfortable and brought into compliance with all the local and state regulations.
Competition: there is no huge competition in the market but still being a start-up
venture it is beneficial to plan and make the strategy to gain competitive advantage in future.
Maldives Aged Care is one such agency that provides homecare and wellness facility to its
people. Apart from the growth rate and demographic changes information on age and
population of the people in Maldives is essential to know the market feasibility. The total
population of the region in the year 2014 was 4, 07,660. Moreover, distinction was made
between the resident and non-resident population. Maldives population has continued to
increase and grow at a steady rate, which increases over four fold during the past few years.
Population above aged 5 years includes 5% of the total population. In the last five
years, there were a total of 16,000 people in this age group, with 9,000 males and 10,000
females. The figure has been at a constant rate due to the decline in the rate of mortality. As
people nowadays have the tendency to stay fit and lead a happy life. This further is because
of better health facilities and latest technology used by the organization.
Aged care Maldives is one such organization that helps the aging population and their
families need with the help of customized services and programs. The main objective is to
create awareness and disseminate the information about healthy ageing. The agency provides
home care to the ageing population and also provides social care to those individuals who are
not lucky enough to be cared in their own homes.
Distribution: this is to be done by contacting each and every professional that can be
proved appropriate for the accommodation of elderly people. The referral sources for the

17BUSINESS PROPOSAL
organization generally includes hospital discharge planners, day care centre, home care
agencies, rehabilitation centre discharge planner, senior citizen centers and the independent
case mangers. Distributing brochure will be helpful to target the potential customers.
Moreover referrals can also be made through phone calls. Placing continuous ads about the
new homecare agency can also prove to be beneficial. The advertisements done through the
yellow pages can help the people to know about the new wellness and healthcare agency.
Many referral sources will also be accessed through the professionals present in the Aged
Maldives Care.
Sales: The main plan is to increase the number of age old residents by the end of three
years. The condition of the economy also could affect the ability of the individuals to pay for
the provided care from their private funds (Zimmermann and Foerst 2014). Irrespective of the
economical condition, it is natural that the population will age. The amount of profit obtained
can decrease but would never result in a negative income.
The market has shown a positive increase over the past few years. The main reason
behind this market growth is due to the fact that population is ageing at a rapid rate
worldwide. Increasing demand for quality life by the senior citizen is also one of the major
factors (Weele and Raaij 2014). The other factors for the market growth are chronic illness
among the aged population and technological advancement. Moreover, the market is
expected to achieve a considerate growth in the present forecasted period. The elder care
service will continue to expand at a swift rate from the year 2017 to 2021.
3.5. Organizational Feasibility:
The organization would have maximum growth rate with the help of government
support such as Medicare and number of elderly people that needs enough care as the life
expectancy would continue to increase. Since the last few years, Medicare has provided the
senior citizen enough money for home care. It is also one of the largest sources of income
provided in the home health care and services. The rest of the money is derived from private
insurances Medicaid, out of pocket costs and revenue paid from the local governments. As
the majority of income for the industry is availed through private insurance, Medicaid and
Medicare thus set a price in the industry. The major competition between the service
providers is not related to price but on name recognition, reputation, word of mouth, quality
of care and referrals from the medical professionals.
In the rising trend of innovation and technology, the wellness centre will be able to
achieve the desired goal and attract the potential customers. With the unique combination of
ubiquitous and seamless connectivity the service will be provide to the senior citizen in a
more systematic manner. Highly equipped devices and sensor facilities will be provided to
asses, mange, monitor and motivate the older population. These gadgets will act as a
reminder to help people in taking their prescribed medications, eat well and exercise to
enhance the individual well being. Through innovative techniques, the elder citizens will be
provided more high qualities facilities to increase their standards of living. From kitchen to
toilets, smart systems will be installed to help the people.

18BUSINESS PROPOSAL
3.6. Financial Feasibility:
The basic objective of using the financial feasibility study is to determine that the new
venture is completely viable for the business or the organization. The financial feasibility
study will forecast will include the forecast, examination and complications. . Generally a
financial forecast only includes a cash flow analysis and is done by the management
company. The higher levels will include examined or compiled reports. This will also leads to
detailed review of the market demographics and operations that are completed by the
certified public accountants.
The new venture will have pre-dominantly semi-private rooms with danced equipped
bathrooms. The existing structure will support the contemporary standard required for care of
the elderly residents. The new agency will be established in a 35,000 square foot structure
with three storeys and comprises of 25 beds connected with a common area. The new old age
care would be licensed by the Government and would be dealing in providing 24 hours full
supportive services and supervision to the individuals, who does not require complete nursing
home level of ambience and care.
Basis of assumptions:
 Management’s financing scenario
 The budget of the management for the new facility.
 Operating plan for the budget.
 Development programs for the project that is developed by the engineers.
3.6.1. Summary of Revenue Assumptions:
Revenue is to be driven by the occupancy of number of beds in the Homecare and
wellness centre. Stabilized occupancy of the number of residential beds is assumed to be
94%, that is more than 35 beds will be occupied out of 40. The new rest home beds are
forecasted to be available by the year end.
3.6.2. Daily service fees and payer mix:
It is assumed that the place will generate more revenue by charging day to day basis
fees as this current practice. Management has assumed that the majority of the residents will
be Medicaid payers and the remaining of the elderly residents will be private payers.
Unit type/payer type
payer
mix
No. of
residents
daily service
fees
skilled nursing
private pay 20% 5.69
Rf.
533.26
Medicare 75% 21.38 215.3
other private insurance payers 5% 1.43 386.43

19BUSINESS PROPOSAL
average fees 100% 28.5
Rf.
287.45
rest home
private pay 10% 0.92
Rf.
347.78
Medicaid 90% 8.28 132.5
home care occupied units average
fees 100% 28.5
Rf.
154.03
Table V: Daily service fees
Revenue Inflation rate:
 Home care private pay rates 3.0%
 Homecare Medicaid rates 2.0%
2018 2019 2020
project statement for activities and changes in the Net
assets
revenue gains and other support
net resident services revenues
assisted living and home care 520 530 540
health care 5000 6200 8500
total revenues, gains and other support 5520 6730 9040
Expenses
Wages 2000 3000 4000
benefits and others 500 600 600
retirement policies 200 200 200
utilities 100 180 200
contractual agreements
food 200 280 280
professional services 50 80 100
medical supplies 50 50 60
general insurances 100 120 140
other supplies 80 90 100
other expenses 20 20 40
Total expenses 3300 4620 5720
Cash flow from operations 2220 2110 3320

20BUSINESS PROPOSAL
Table VI: cash flows statement
3.7 Cost of failure:
On the assumption that the premium could be recovered, the cost of failure would
relate to the negative cash flow. The cash flow shows a positive income for the organization.
In the old age service industry it is important to be patient so that regular trade can be easily
allowed to be build up. The investors are highly confident that the new business will
definitely succeed. The initial indications are good and so the business will seek to include
financial position in more detail.
3.8. Result of the Feasibility Research:
From the earlier feasibility research, there is a high confidence to the people that the
team investing in the new start-up venture so that the ability to achieve the desired business
ambition. At the initial stage, the adequate resources required to make the strategy of the
business has been adequately covered in the completed project.
4. The Business Model
4.1. Business Model Canvas:
Key Partner
Doctor
Skilled nurses
Trainers
Other health
professionals.
Key Activities
Providing
services to
the elderly
patients
Enabling and
storing
information
about the data
of patients
Enhance
communicati
ons as well as
care
coordination.
Increasing
awareness
about the new
Value
Proposition
As a
homecare and
wellness
provider
taking care of
the patients
and relatives.
The elderly
patients get
connected
due to sharing
the overall
caring
workload.
Customer
Relationships
Word-of
mouth
TV and radio
ads
Online and
social media.
Customer
Segments
Targeted elderly
patients
Individuals with
more than 65 years
of age are the
potential customers
of the organization.

21BUSINESS PROPOSAL
venture.
Key
Resources
Technology
development
Skilled nurses
and workers
professionals
Channels
Family,
friends and
neighbors,
mobile apps
websites
Primarily
caregiver and
care
receivers.
Cost Structure
Technological service development
Legal services
Insurance
Background check of the professional
and workers
Revenue Streams
The platform provides easy access to service
through monthly subscription fees.
Free apps
Table VII: Business Canvas Model
4.2. The core strategy:
The main strategy of opening the Home care and wellness centre in Maldives involves
providing quality services to the old aged people. The agency aims to create a social
environment that is conducive to active –ageing. Moreover, offering necessary support to the
different level of care is needed under our policy objective. To create the world where the
right, health and choice of the elderly people are respected and protected (Kumar 2015). The
strategy is to influence the age related regulations so that the lives of older people can be
improved.
4.3. Resource needed:
The main resources needed for efficient operational activities are skilled nurse,
professionals, and doctors providing clinical therapy to the patients. With an increasing and
advancing age, individuals generally performing day to day activities become highly difficult
tasks. Therefore the agency skilled workers and trainers will assist and guide the elderly
people to perform the major activities.

22BUSINESS PROPOSAL
Partnership network: moreover, it is important to collaborate with the partners across
all sectors and discipline. Since old age home and wellness centre facilities is provided to the
senior citizens. Therefore, doctors and various professionals should be available for twenty
four hour services throughout seven days a week. Moreover, alternatively the elderly people
will also be provided an individual with them so that their schedule and appointments with
the doctors can be easily managed. In case of emergency the professional will aid in
providing the best clinical facilities.
4.4. Value derivable for customers
Value chain
components
Resources needed Obtained Required
Support activities Business
infrastructure
Human resource
management
Technology
development
Procurement
Strong financial
position
Strong management
team
Connective employee
infrastructure
Progressive and
sustainable
relationship with the
suppliers
Emphasis on
sustainability and
CSR
Connected employee
infrastructure
Progressive and
sustainable
relationship with the
suppliers.
Primary activities Inbound logistics
Operations
Outbound logistics
Marketing and sales
services
Inventory control
Technological
innovation
Strong reputation in
the community
Value based pricing
Innovative residential
and care facilities
Specialized services
Research and
Development
Innovative role in
residential facilities
Extensive customer
care.
Table VIII: value derivable for customers
4.4.1. Functional propositions
The homecare and wellness centre is a custom made assisted living home for the
senior citizens that are no longer preferable or unable to live on their own. The homecare
accepts such individuals with financial and insurance stability that are in the need of social
interactions. The agency will provide an assisted living facility to the people with a friendly
environment and complete comfort of home setting (Cusumano, Kahl and Suarez 2015). The
new venture will stand out by providing high regulatory services and care that is present in
the larger assisted living facilities. The elderly people will be able to live in much more
comfortable environment.
4.4.2. Competitive propositions

23BUSINESS PROPOSAL
To become one of the market leaders in the Hulhumale region it is important for the
organization to gain maximum profits and explore all the conventional and non-conventional
methods to promote the new Healthcare and wellness centre. The place should be advertized
on both print, which is community based magazines and newspaper and also the electronic
media platforms. Sponsor relevant community programs should be encouraged so that it
appeals the overall aging population. Leverage on social media platforms and internets like
Instagram, Facebook, YouTube and Google. Engaging in road shows from time to time is
helpful with that showcases the growing aging population. Distributing brochures, handbills
and files in all such target areas, where there is generally high concentration of elderly
population.
4. 4.3. Price propositions
To gain maximum advantage in the market, it is important to enter in the market with
a high competitive price. The new venture should be made in such a way that the prices
charged to the individuals are highly competitive in nature as compared to the existing
agency in the Maldives. On an average, usually home care centers leverage on this fact that
majority of the clients does not pay the payment from their pocket instead Medicare, private
insurance companies and Medicaid are responsible for the payment. Therefore, the clients
should be billed according to their discretion by the agency. Moreover, to put the plan in
place, discount services are also to be offered once in a while to reward their loyal customers
so that more clients can be referred to the organization.
4.4.4. Ethical and legal propositions:
Safety is definitely a major concern for the senior citizens twenty four hour full
security in the old age home would provide protection to the elderly people. On e of the
major factor that makes the old age home centre more attractive is presence of
companionship. The people residing in the agency are given constant care and support and
live cordially with the people of their own age. The toilets and bathrooms of the agency
should have rough flooring so that the elderly people do not slip. Easy passage of wheelchair
is also to be provided to fulfill the requirements of the individuals.
All the necessary medical accessories and medicines should be present beforehand
within the homecare. Suction apparatus and oxygen cylinders should also be present in the
case of emergency (Möhlmann 2015). Children often stay outside this leads to increasing the
depression and level of stress of the people. Furthermore, living in an old age home can also
give rise to the feeling of abodment and loneliness. Hence, 24 hours assistance with skilled
workers will be present to make the people more relaxed so that they can live peacefully.
4.5. Discussion from the Business Model
Feasibility Research and business model development there is high and sustained
confidence to continue to the new business launch and start-up plan.

24BUSINESS PROPOSAL
Payment options: The payment policy of the homecare would be inclusive in nature and the
people are quiet aware that different people prefers payment options that suits them , the
payment options are either to be made by cash, online bank transfer, Point of Sale (POS)
machine, payment via online bank transfer and mobile money.
5. The Business Plan:
5.1. Summary:
Wellness and healthcare services for the old aged people is proposed in Hulhumale,
situated in Maldives. The region is the heart of entire Maldives and is the main region with
planned extension areas. The greenery landscape makes the area more attractive. The
organization would assist clients and families through their programs and services. The
company provides customized and innovative services to the local people and community.
The healthcare and wellness centre for aged people are very limited. The other health care
does not offer the unique blend of social services and home health care to the local
community. The pricing for the healthcare is set as per the Medicare, Medicaid and various
insurance regulations.
5.2. Objectives:
 To serve more than 200 old aged home healthcare patients by the end of the first year.
 High gross sales by the end of first year.
 More than 80% of customer satisfaction returns from the services indicating the
satisfaction level of the people with the services provided.
5.3. Key to Success:
 Reliability- by being available through adequate staffing and being available through
24 hours services.
 Offering professional quality of services to the people.
 Effective collaboration with different professional in the field of healthcare and
wellness. Such as hospitals, physician and other organizations.
5.4. Mission
The main mission of the centre is very simple, which is to offer affordable and
excellent home health care and wellness to the people of Hulhumale. The main goal is to
employ caring, competent and well-skilled individuals. The employee should be highly
responsive to the needs of the patients, their families and the communities in which they

25BUSINESS PROPOSAL
serve. The senior citizen and old age people should be adequately taken care of. Each staff
members should adequately encourage and support the old aged people by providing the best
services. Moreover, the agency also provides a better and positive living environment for the
age old people.
5.5. About the company:
The healthcare and wellness centre is a new business at its start-up stage. The agency
is located in the main area of Maldives region. The services will also be provided to patients
and individuals from the regions like Bandos, Club Faru, Full moon, Paradise and Kurumba.
The services given to the patients will also include physical and speech therapy.
5.6. Startup summary:
As the business is in its start-up stage, there would be huge funding issues and start-up
costs that need to be addressed. The costs should include the cost for business development,
rental expense, office equipment and nursing equipment and supplies. The following chart
would demonstrate the assets that is required for the start-up and also addresses the funding
sources. This includes the cash investment that is to be made by the owner. Three year 8%
loan is also needed to cover the required start-up costs.
Sources of Capital Startup Expenses
Owners' Investment (name & %
ownership)
Buildings / Real Estate
Your name & % ownership Rf.
800,000
Purchase Rf.
200,000
Other Investor Construction 50,
000
Other Investor - Remodeling
Other Investor - Other
-
Total Investment Rf.
800,000
Total Buildings and R / E Rf.
250,000
Bank Loans Leasehold Improvements
Bank 1 Item 1
Bank 2 - Item 2
-
Bank 3 - Item 3
-
Bank 4 - Item 4
-
Total Bank Loans Rf.
-
Total L / H Improvements Rf.
-

26BUSINESS PROPOSAL
Other Loans Capital Equipment List
current borrowings Rf.
275,000
2 computers Rf.
50,000
Source 2 - 4-1 printrers 15,
000
Total Other Loans Rf.
275,000
phones 10,
000
stationery 8,
000
Nursing supplies 10,
000
Summary Statement Total Capital Equipment Rf.
93,000
Sources of Capital Location and Admin Expenses
Owners' and Other Investments Rf.
800,000
attorney fees Rf.
8,750
Bank Loans - license for homehealthcare
agency
10,
000
Other Loans 275,000 professional liablity insurance 30,
000
Total Source of Funds #########
#
medisoft billing program plus
support
50,
000
workmen's compensation
insurance deposit
5,
000
Startup Expenses Premises and content insurance
deposit
3,
000
Bldgs / Real Estate Rf.
250,000
contractor charges with
physiotherapists
5,
000
Leasehold Improvements - Total Location and Admin
Expenses
Rf.
111,750
Capital Equipment 93,000
Location / Admin Expenses 111,750 Opening Inventory
Opening Inventory - Category 1
Advertising / Promo Expenses 14,000 Category 2
Other Expenses - Category 3
-
Total Startup Expenses Rf.
468,750
Category 4
-
Category 5
-
Total Inventory Rf.
-
Advertising and Promotional
Expenses
brochure Rf.
4,000
Other / Additional categories 10,
000

27BUSINESS PROPOSAL
Total Adv and Promo expenses Rf.
14,000
Payroll and payroll taxes
Expense 1
Expense 2
Total Payroll and payroll taxes Rf.
-
Table IX: Start up Capital
5.7. Services:
The wellness and healthcare centre offers premier care to the old aged people in
Maldives. The services include physical therapy, nursing aid, homecare centre facility, skilled
nursing and social work. The centre also provides management services that include efficient
management services through proper planning, assessment, and resource linkage,
professional and reporting services.
5.8. Market Analysis Summary:
The customer base for Home health care services would also include patients that
would be referred by the healthcare facilities and various other professionals. The majority of
the senior citizen patients will be covered by Medicare. This will also help in insuring the
individuals through relevant insurance carriers.
medicare patients
medic aid and Private
Insuurance Patients
PICM patinets

28BUSINESS PROPOSAL
Figure I: Market Analysis
5.9. Market segmentation:
The large part of population in Hulhumale region is aging. People opt to stay longer in
their homes at this age. The senior citizens try to return home after their hospitalization
instead of proceeding to a nursing home. The main market segments include old aged
patients, who are unable to get proper treatment at their homes. The senior citizens require
maximum care at such delicate stage of life (Arnett and Wittmann 2014). The health care
services are given by the home health nursing staffs. The patients also require various home
health services so that they can easily access the community resources.
Moreover, the secondary market will include all such individuals that are suffering
from a personal injury as well as require services to assist them in addressing financial,
medical and the employment issues.
MARKET ANALYSIS Growth year 1 year 2 year 3 CAGR
Potential Customers
Medicare patients 10% 100 110 120 9.92%
medic aid and Private Insurance Patients 10% 25 28 31 10.30%
PICM patients 30% 12 16 21 30.68%
Total 12.31% 137 154 171 12.31%
Table X: Rate of growth of customers
5.9.1. Target Market Segment Strategy:
The agency will specialize in home health care and community based social services,
therefore major focus will be given on such market segments that will need the services the
most. Proper homely based services will be required to the old aged people. This strategy will
reduce the overhead cost to a great extent.
5.10. Service Business Analysis
The agency is a combination of both homecare and wellness centre for the aged
people in the Hulhumale region of Maldives. The social services are to be utilized by the
senior citizen, with service referrals (Chandler and Lusch 2015). The professionals giving the
referrals will include hospitals, physicians and attorneys. Maldives aged care is also one of
the old aged home serving the community in the same area.

29BUSINESS PROPOSAL
5.11. Competition and buying pattern
The vital factor that s to be considered by both the individuals and their families while
availing benefits from the health and wellness centre is trust. In addition to this quality of
service and reliability are the other major main elements that will be provided by the home
care agency. Pricing of the services from healthcare agency does not generally influence the
choice of the health care agency. As most of the services cost would be reimbursed by
Medicaid, Medicare and other private insurance companies. Consumers would like to follow
the recommendation from their physicians and word of mouth referrals.
Moreover, to assess competition in the home health and social services fields the
clients would be referred by the professionals to the agency for their services. The agency
would provide outstanding care to the old aged people and quality services will be the main
motto of the organization. Through effective business management and professional
organization, it would be possible to gain competitive advantage in the Hulhumale region.
5.11.1 Competitive edge:
There are very limited healthcare and wellness centre in the Hulhumale Island.
Moreover in the entire Maldives the only leading centre providing such facilities to the
elderly people are Maldives Aged Care. The base would therefore allow the management to
access additional clientele and this would help in increasing the financial stability of the
agency. The new agency will stand out as an integrated social services centre. Efficient daily
administrative agency would be further make the age old agency quite successful. The
integration would further include additional services such as psycho-educational counseling,
family counseling and mental health case management.
5.12. Marketing strategy:
Marketing the service oriented business is a bit challenging as this requires setting a
reputation for high excellence and expertise. The agency should start first of all with its
known contacts. This can further help them to make recommends and referrals for the
organization. This continues with long-term efforts so that the agency can easily develop
recognitions among the people. Furthermore, the professionals dealing with the aged patients
could also help in advertizing about the new wellness and old age home. The individuals and
its families would like mouth-of-referrals. Especially when the referral comes from any
professional within the social services and healthcare fields.

30BUSINESS PROPOSAL
This would also help in developing and maintain database of the contacts relevant in
this field. Maintain proper contact with the well-known nurses, physicians and other facilities
in the various market areas will be prove to be helpful in the start-up process. It would be
highly significant to make initials contacts within the community on setting the business
community. Positive relationship should be made with the local attorneys, Medicare and
other insurance companies. Maintaining cordial and smooth relationship with the
professionals would prove to be helpful as they are the potential reference sources. Moreover,
old age home communications will be highly professional. The marketing tool to promote the
business will mostly include business card, brochures and advertisements.
5.13. Sales Strategy
Sales in this business refer to quality level services to the senior citizens. Maximum
satisfaction provided to the individuals and their families would be the main goal of the
organization. The business is actually perpetual in nature as home health care and wellness
provided is not sold. In fact reliability, excellent care and effective interpersonal relationships
are to be sold.
The services that are provided should also reflect the oversight and mission of the
management. With a service industry, business growth actually means loss of control that
would further leads to dissatisfaction of clients. The aged individuals should know that the
quality services provided to them would be of best quality. The services of best quality
should be provided to the entire atoll.
The new health care centre will focus on penetrating its market in one are at a time. In
a service industry, initially the main goal should be to focus on the main area before
expanding its business so quickly. Immediate actions and steps should be taken to provide
quality services and offering the highest best possible quality to the community. This
approach would help the firm to avoid temptation of broadening its scope of service very
quickly. When the business is effectively grounded and established in excellence, then only
the management should think of expanding its service base.
5.14. Sales Forecast
The annual sales demonstrate an average of 100 new home health and wellness care
aged individuals. The patients for the first year are seen with a modest increase in year
thereafter. The figures are actually based on the individuals that are monitored currently at
the existing Maldives Aged Care agency. With a much larger investment in employee

31BUSINESS PROPOSAL
relations, marketing as well as customer services, the client base for the centre will
significantly increase.
Fix
ed
Expenses
Fixed Expenses
Bldgs / Real Estate Rf.
250,000
Leasehold
Improvements -
Capital Equipment
93,000
Location / Admin
Expenses 111,750
Opening Inventory
-
Advertising / Promo
Expenses 14,000
Other Expenses
-
Total Fixed
Expenses
Rf.
468,750
Var
iable
Expenses
Inventory or
Materials
Direct labor (includes
payroll taxes)
Other expenses
Other expenses
Salaries (includes
payroll taxes)
Supplies

32BUSINESS PROPOSAL
Total Variable
Expenses
0%
Breakeven Sales
level =
Rf.4
68,750.00
Ye
ar 1
Ye
ar 2
Ye
ar 3
Net income (loss) -
Rf.468,75
0.00
Rf.
1,352,652.9
6
Rf.
1,381,266.1
9
Rf.
1,439,254.9
8
Cumulative income Rf.
883,902.96
Rf.
2,265,169.1
5
Rf.
3,704,424.1
3
Positive Cash Flow? TR
UE
TR
UE
TR
UE
Undiscounted break
even year
1 yea
rs
Actual break even
period
0.
35
yea
rs
Table XI: Break-even Analysis
5.15. Risk Management:
The risk related to marketing plan is related to the entire customer touch points. Risk
awareness is crucial so that proper measures are taken to ensure consistency while maintain
the experience of the customers.
5.15.1. Challenges:
Qualified employees: There may be high difficulties that the business can face later on
is finding and retaining qualified home health aides and registered nurses. As the number of
old age home and nursing home business is increasing in the recent times, the demand for the
qualified employees is certainly very high. The registered nurses present in the region are
retiring at a very fast speed than the entire present newly trained nurse can easily replace
them.
High turnover: of the workers and employees retention is the main potential issue.
The resident’s caregiver has very high turnover rate since the last few years. The employee’s
turnover rate has increased up to 36.4 % in the last year. The other challenge that the business
can face is the changes in policy of the Medicare.
Technological challenges: the ageing population in the world has the lowest adoption
rate relating to the computer usage among the population in Maldives. Without learning such

33BUSINESS PROPOSAL
important skills to use internet and computers, the seniors think themselves to be excluded
from the society. Therefore, to overcome the technological barriers the services and products
should be easily understandable, fully functional and easy to use. The aged people should be
provided latest technology and assisted through technical support and assistance.
Social isolation and diversity: Loneliness among the elderly people is the ultimate
problem. Recent study showed that more than half of people above aged 60 live by
themselves. Many of these senior citizens hence suffer from social isolation and loneliness.
5.15.2. Risk Assessment
Creating partnership: the homecare and wellness centre should seek new partnership
with the telecommunication firms, retailers and also with home deliveries companies. As
these firms are already looking at the age old population as a new opportunity for market
growth.
Creating a NexGen Care force- with the help of new technology, services and
partnership the services provided to the people will expand the services business. In addition
to this, aging service providers, educators and manufacturer of technologies would provide
new platforms to the elderly people for care. This leads to invest, envision and educate the
upcoming generation care professionals. Moreover, the care giver, ready collaborator, tech-
savvy and professionals become agile in both profit and non-profit organization.
Home health care is the main franchising opportunity within the elderly care industry.
This health care business either involves medical care or non-medical care or both the
services. One of the advantages of this large franchise in the senior care industry includes
access to large or increased marketing, which is generally not available to all those smaller
business. In the last few years the people in Maldives has received home health care in some
form or other. Diabetes as well as cerebro-vascular diseases is some of the few problems that
are faced by the elder people. This common most ailment generally results in needing the
home care to a great extent. About majority of the home patients are above the age 65 years
or more.
5.16. Viability of the Plan:
The Homecare and Wellness centre for elderly people in Maldives is a start-up and
would therefore required highly skilled and experienced staffs to establish itself in the
market. The management team would include one Administrative Director, Clinical Director,
and 15 to 20 employees. A contacted agency is necessary to meet the need for physical and
speech therapist for the senior citizens. The mangers to be hired should have enough
experience in the social work services. This could help in directly monitoring the services
provided to aged individuals directly.

34BUSINESS PROPOSAL
When the requirement of the services would increase, the mangers are to play primary
or significant role in delegating the services directly to the employees. The organization.
Skilled nursing would also be required by the individuals therefore employing experienced
and capable nurses will be helpful. Moreover, at the initial stage of business, if the quality or
level of services provided to individual is not satisfactory, the organization will be unable to
maintain its goodwill in the long-run. As the business will grow in the future more service
providers would be hired by the businesses. The Job description will be written for each job
position. An employee handbook will also be created prior to the start date.
5.16.1. Personnel Plan
The following is the plan showcasing the requirements, benefits and costs of the
personnel. The projections for the following three years would be completely based on
growth are of the client base. The cost should not impact the payroll due to increased service
hours. Moreover, increased cost of living is accepted for all the employees except the main
director or the entrepreneur. As the owner will realize increase in income only through profit
gains.
Administrative Director: this position is to be held by the owner of the wellness and
healthcare agency. The director will resume all the responsibility required for the social work
in the initial stage of the start-up. Later on, as the number of senior citizen coming in the
centre will increase, the working hour for the social services provided will also increase.
Moreover, owner’s compensation will not includes any payroll taxes or cost of insurances
and is to be made in the form of drawings.
Clinical Director: this position would be given to a highly specialized professional
sand there compensations will be made in the form of salary. Moreover, the clinical director
will have to majority of services in the initial stage of the business. The primary role of the
clinical director will be to provide health assistance to the age old people. It would also be his
or her responsibility to properly monitor and assess the health check-up of the organization.
As the requirements for additional skilled nursing hour in the agency will increase more
skilled nurses would be employed. Providing maximum satisfaction to the aged individuals
and their family is the main aim of the organization.

35BUSINESS PROPOSAL
Administrative assistant: the position for administrative assistant would be based on
30 hours services per week and with Rf. 50 per hour. At the earlier stage, no benefits would
be attached to the assistant positions except paid personal leaves for four weeks.
Skilled Nurses: this position will be held by skillful nurses and they are to be paid Rf.
80 per hour. In addition to this the skilled nurses will also be paid extra amount when called
for any on call hours of services. There will be no major benefits attached to this position
except 10 days paid personal leave and 5 paid holidays per year. The nurses will be hired in
the centre for part-time services.
Social Worker: the position for the social worker is also opened and they are supposed
to be given Rf. 80 per hour. The total reimbursements that are to be given to the workers is
shown and calculated on total of 520 hours per year. No major benefits will be given to the
social workers until the required for additional hour is realized.
Physical Therapist/Speech Therapist- the position for the therapists will be contracted
at a rate Rf. 200 per hour. The entire reimbursement is completely based on 650 hours per
year. Moreover, no extra benefits will be attached to the position. The employees are
contracted on fee required for only service reimbursement basis.
5.16.2. Financial Plan
The most vital factor required for the agency’s financial plan is the collection of
receivables. The healthcare services are reimbursed primarily with the aid of Medicare,
Medicaid and private services. As the scope of services would be broadening, the collection
of receivables will further impact the cash flow. The figures are based on start-up and
therefore additional loan will be required.
5.16.3. Important Assumption:
The chart below helps in demonstrating the interest rates, tax rates and annual
assumption level.
Year 1 model inputs
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first
year only.
1. Year-one revenue expectancy
Sevice 1 Service 2 Service 3 Service 4

36BUSINESS PROPOSAL
Number of units sold annually
Average sales price per unit
Annual revenue per product
Rf.1,000,00
0
Rf.1,000,00
0 Rf.100,000 Rf.100,000
Total year 1 revenue
Rf.2,200,00
0
2. Year 1 cost of goods sold
Ser
vice 1 Service 2 Service 3 Service 4
Expected gross margin per product
Annual cost of goods sold per product Rf.79,000 Rf.77,898 Rf.8,778 Rf.6,677
Total year 1 cost of goods sold Rf.172,353
3. Annual maintenance, repair, and overhaul
Factor (%) on capital
equipment 3%
4. Number of years for straight-line
depreciation 5
5. Annual tax rate 30%
6. If long-term debt is being used to finance
operations, enter the total loan value.
275,00
0
7. Account receivable and payable % 6%
It is to be assumed that it the economical condition of Hulhumale is strong without
any major recession. Moreover, there are no important unforeseen changes in the federal
policy of the nation. The policy that dictates the Medicaid and Medicare reimbursement of
health care services should not be complex.
5.16.4. Break-even Analysis
The Break-even Analysis is based on monthly fixed cost and average per unit cost for
variables. The assumption taken for cost of sales is initially at lower rate. But within the
service business, effective payroll is included in the expenses of operating expense fixed
monthly allowances. The mileage to and from location of the services is also included in the
additional cost. At this level, only the amount collected covers their monthly costs.

37BUSINESS PROPOSAL
Operating expenses are to be generated from the analysis of operating budget. Various
variable costs that include food cost and utilities are projected to fluctuate with the number of
occupancy. The staffing costs include wages and benefits that comprises of more than 60% of
the total operating expenses. The benefits availed are assumed to be equal 50% of the overall
wages. On the other hand, non-staffing cost that excludes debt service comprises 40% of the
total operating expenses. It is further anticipated that the operating expenses that includes
food utilities and supplies is supposed to increase by 3.0% at an annual level. The
management anticipates that various expenses will inflate at a much higher rate. Moreover,
the healthcare insurance benefits are also supposed to be increased by 7.5% annually.
Since, the wellness and home care centre is private owned new venture with operated
facility. There are various rules that are applicable to the operational and financial activities.
The operating and financing will be done through separate funds at the ground level.
5.17. Projected Timeline
April 2017 Meeting to approve the debt exclusion
April-2017 to June 2107 Development activities( planning,
architectures and entitlements)
August Issue bond anticipation notes to fund pre-
financing project costs.
September 2017 Construction activities
March 2018 Project available for homecare occupancy
Table XII: Projected Timeline
5.17.1. Strategy and Implementation:
The homecare and wellness centre will focus to cover the entire of Hulhumale Island
as well as whole of Maldives. The target market would be the old aged people in the
Maldives region. In addition to this, the regional physician is also targeted so that they can
refer the senior citizens about the home health agency. Senior citizens needs high assistance
for their day to day activities and for their healthcare requirements a quality life is must.
Therefore this all requirements leads rise to ‘elder care services market’ that specifically
comes into existence to serve that old age population worldwide. The market for elder care
has been dividing into various segments. The elderly care business includes home care,
nursing home facilities, and assisted living. These all are provided by the professionals,
pharmaceuticals and high skilled nurses. In the recent times, home healthcare segments and
assisted living is getting popularized to provide quality life to the senior citizens. The new
wellness and homecare centre is designed for the aging adults, who are no longer able to
mange independently and are left isolated or lonely. These services are not been provided by
the close relatives and family then the need for agency will arise.

38BUSINESS PROPOSAL

39BUSINESS PROPOSAL
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