Elderly Day Care in Maldives

This report discusses the business development proposal for an elderly day care center in Maldives. It includes a brief introduction, analysis of the business concept, literature review, research methodology, data analysis, business model, and business plan.

Running head: ELDERLY DAY CARE IN MALDIVES
ELDERLY DAY CARE IN MALDIVES
Name of the Student
Name of the University
Author Note

1ELDERLY DAY CARE IN MALDIVES
Executive Summary
Maldives can be understood to be a growing economy and hence, this has been the ultimate
target of various businesses as present around the globe. The business which will be discussed in
the given report can be understood to be the one relating to the Elderly day care. The particular
report will be based on the business development proposal of the same in Maldives. The report
has followed a systematic format and it is in relation to this that the report is divided into various
parts whereby the first part will provide a brief introduction of the business operations, which
will then be followed by the analysis of the discussion the overall concept of the business and a
review of the literature, based on the same. This will then be followed by the chapter on
Research Methodology which lays down the research techniques adopted for the paper. The
fourth chapter presents the Data and Analysis chapter whereby the Product, Market, Industry and
the Organizational Feasibility along with the financial feasibility has been critically discussed.
This is then followed by the Business model of the firm and the Business plan of the
organization.

2ELDERLY DAY CARE IN MALDIVES
Table of Contents
List of Tables...................................................................................................................................5
1. Introduction..................................................................................................................................7
1.1 Selection of the scenario........................................................................................................7
1.2. Rationale of the chosen topic............................................................................................7
1.3. Research Questions...........................................................................................................8
1.4. Research Objectives..........................................................................................................9
1.5. Terms of reference............................................................................................................9
Layout of the Project.................................................................................................................10
1.6. Concepts & Models applied............................................................................................10
1.7. Assumptions....................................................................................................................13
1.8. Business Objectives &Time Scales.................................................................................13
2. Literature Review......................................................................................................................15
2.1 Description of the Proposed New Business.........................................................................15
2.2 The Concept Statement........................................................................................................15
2.2.1 The Product / Service....................................................................................................15
2.2.2 The Segmentation & Target Market.............................................................................16
2.2.3 Unique Selling Points (USPs).......................................................................................16
2.2.4 Location........................................................................................................................16
2.2.5 Those who involved......................................................................................................17

3ELDERLY DAY CARE IN MALDIVES
2.3 The Window of Opportunity...............................................................................................17
2.4 Feasibility Research: Literature Review..............................................................................18
Improving Quality of Life for Residents of Care Homes..........................................................19
The Role of Smart Technology in Improve Experience of People in Old Age Homes.............19
Equality, Gender Sensitivity and Dignity as Factors that ensure Good Quality of Life for
Senior Citizens of the LGBTQ Community..............................................................................19
Role of Tele-Health in ensuring Good Quality of Life for Senior Citizens..............................20
Planning for the Process of Ageing and its Challenges in Extra Care Homes..........................20
Crucial Role of Care Workers in Improving Quality of Life for Residents of Old Age Homes
...................................................................................................................................................21
Old Age Care in the Context of South Asia..............................................................................22
Effects of Reminiscence Therapy in Improving the Quality of Living in Residents of Old Age
Homes in Bangalore..................................................................................................................22
Understanding how Inside Walking can Influence Quality of Sleep and Quality of Living
among Residents of Care Homes in Nepal................................................................................22
Effects of Music Therapy on ensuring Good Quality of Life for Senior Citizens in Care Homes
in Hyderabad..............................................................................................................................22
Key Findings/Takeaways from the Literature Review..............................................................23
3. Research Methodologies............................................................................................................24
3.1 Research background statement..........................................................................................24
3.2 Overall Research Design.....................................................................................................24

4ELDERLY DAY CARE IN MALDIVES
Research Approach................................................................................................................24
Research Design........................................................................................................................25
Research Strategy..................................................................................................................25
Research Instruments.............................................................................................................26
Sampling Plan........................................................................................................................27
Data Types & Data Collection Methods................................................................................27
Research Ethics..........................................................................................................................27
Research Barriers & Limitations...............................................................................................28
4. Data Analysis and the Business Model.................................................................................29
4.1 Data Analysis.......................................................................................................................29
4.1.1 Product/ Service Feasibility..........................................................................................29
4.1.2 Industry Feasibility.......................................................................................................30
4.1.3 Market Feasibility.........................................................................................................31
4.1.4 Organizational Feasibility.............................................................................................32
4.1.5 Financial Feasibility......................................................................................................32
4.2 Business Model...............................................................................................................37
5. Business Plan.............................................................................................................................45
5.1 Proposed Vision and Mission..............................................................................................45
5.1.1 Vision............................................................................................................................45
5.1.2 Mission.........................................................................................................................45

5ELDERLY DAY CARE IN MALDIVES
5.2 Marketing Plan.....................................................................................................................45
5.3 Operations............................................................................................................................46
5.4 Human Resource Plan..........................................................................................................49
5.5 Risk Assessment..................................................................................................................50
5.6 Financial Plan......................................................................................................................53
5.6.1 Quarterly based cash budgets.......................................................................................53
5.6.2 Budgeted Income statements...................................................................................54
5.6.3 Budgeted statement of financial position at the end of the third year.....................55
Breakeven..............................................................................................................................57
5.6.4 Sensitivity analysis for the 1st year of income........................................................58
5.6.5 Ratio analysis................................................................................................................59
5.6.6 Cost Management.........................................................................................................60
5.7 Schedule for Implementation...........................................................................................61
7. Bibliography..........................................................................................................................66
8. Appendices............................................................................................................................67
List of Tables
Table 1.6: The concepts applied....................................................................................................10
Table 4.1.5 Startup expenses.........................................................................................................32
Table 4.2: Business Canvas Model................................................................................................36
Table 5.2: 4ps of marketing...........................................................................................................45

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Table 5.5 Risk Assessment Plan....................................................................................................51
Table 5.6.1 : Cash Budget..............................................................................................................52
Table 5.6.2: Income statement.......................................................................................................53
Table 5.6.3 Balance sheet..............................................................................................................54
Table 5.6.3.1 Breakeven................................................................................................................56
Table 5.6.4 Sensitivity Analysis....................................................................................................57
Table 5.7 Schedule.........................................................................................................................60

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1. Introduction
1.1 Selection of the scenario
The business idea which has been essentially proposed for the business development plan
can be understood to be the business idea of an Elderly daycare center based in Maldives.
Here , it becomes essential critical to ensure that, although the idea of the daycare can be
considered to be essential, it has not gained much popularity in Maldives and it is in relation
to this that, the particular idea can perform considerable well (Timmons and Spinelli 1994).
The project proposal aims to see to it that, all the necessary idea and information about the
day care center will be essentially provided. Moreover, the entire plan for the business will
be laid out in order to ensure that the business is successfully being able to engage in long
term success of the overall business organization due to the prior planning which will be
taken because of the proposal. The areas which will be discussed can be understood to be the
marketing plan, the business idea, the location, the overall business canvas model and other
related aspects of the business which will help in ensuring that the entire modelling of the
business can be carried out essentially prior to the execution of the idea.
The day care shall have various facilities for the elderly and will provide them help an
assistance in regard to the professional care which they require. This way the business will
not only be looking after the problem which exists in the society which can be considered to
be the lack of a daycare center but can also be understood to be solving a societal problem
which will ensure that the firm is being able to engage in long term success.
1.2. Rationale of the chosen topic
The reason why the business plan regarding the day care has been chosen is because, it
lies as an overall opportunity which the business is required to cater to in order to ensure
overall long-term success. In addition to this, as there are very few elderly day care facilities
as present in the country, it becomes critically relevant to understand that, this is a gap which
exists in the domain of the business and is required to be dealt with adequately so as to see to
it that, the business is able to flourish properly. The development and running of a business
cannot be understood to be an easy task and hence, it becomes very important to lay down
the overall domains like the marketing, financial, operations and the other crucial details.

8ELDERLY DAY CARE IN MALDIVES
This would then assist in carrying out the business in a proper manner and will then ensure
that, the firm is being able to gain from this related growth of the business operations. In
addition to this the elderly people are suffering and due to the negligence of their children
they are suffering a great loss. Hence, in relation to this, it is crucial for the business to look
after the needs of the elderly population as well and this can be essentially carried out by
ensuring that the business is being able to perform as per the entrepreneurial gap which exists
in the society. However, starting a business without any proper planning cannot be
considered to be fairly accurate and in relation to this, it is the duty of the entrepreneurs in a
society to see to it that the different members of the society are benefiting from the initiative
which is being undertaken by the organization.
Hence, the report will follow a systematic format with respect to which, the overall
business scenario will be laid down which will then be followed by the overall feasibility
analysis of the business operations. This shall then be assisted by the business canvas model
and the business plan as well through which the different operations of the business can be
well understood. After understanding and analyzing these points, it can be understood that
the rationale for carrying out the particular study can be understood to be to outline the
different requirements which the business would be required to fulfill in the long run. Hence,
the outcomes and overall involvement in the business have also been outlined adequately.
1.3. Research Questions
The different research questions which have been selected for the purpose of the
project can be understood to be as:
1. How will the day care perform in the particular industry?
2. What are the procedures which the business can adopt in order to ensure long term
success?
3. What are the financial funds and requirements which are required by given organization?
4. In what ways will the business be able to deal with the requirements of the organization
and ensure that it is able to become quite successful in a short period of time?
5. In what way will the business canvas model of the Day care business be decided upon?

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1.4. Research Objectives
The research objectives which the study aims to follow can be understood to be as
follows:
1. To find the manner in which the day care will perform in the particular industry.
2. To find the procedures which the business can adopt in order to ensure long term success.
3. To find the financial funds and requirements which are required by given organization.
4. To find the ways in which the business will be able to deal with the requirements of the
organization and ensure that it is able to become quite successful in a short period of
time.
5. To find in what way will the business canvas model of the Day care business be decided
upon?
1.5. Terms of reference
The terms of reference can be rightfully understood to be the functions which are
generally carried out by the business operations. Additionally, the proposal has been
designed with an aim to understand the overall manner in which the business will be able to
perform financially and moreover, the overall industrial environment of the industry where
the business has been performing is also required to be understood adequately. However,
irrespective of these aspects, the study comprises of a limitation which can be understood to
be the limitation relating to the overall background of the information. The report can be
understood to be based on secondary data and analysis only (Kirzner 2015). This means that,
the data on which the entire report will be based on will be just on the secondary analysis and
will not be on the primary analysis which makes the entire study considerably limited in
nature. Moreover, it needs to be understood that the overall goal of the report is to outline the
manner in which the business and related operations will be designed adequately so that the
firm is able to attain long term success.
Title: Day Care center for the Elderly in Maldives
Purpose of project: To ensure that the design and overall establishment of the elderly day
care business in the country can be described specifically.
Membership: Single member

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Review: The Review shall involve an assessment of the study which will be carried out once
in a week.
Working methods: The study is based on secondary research models and the discussions
with meetings.
Layout of the Project
The project can be understood to be following the given layout:
1st chapter: The first chapter is the Introduction chapter which will present an overall
background of the study and outline the various research questions and objectives which the
research aims to follow. In line of this, the research Introduction chapter also ensures that the
various models which will be adopted in the project are highlighted throughout.
2nd chapter: The second chapter is the Literature review chapter which outlines the various
theoretical concepts related to the chapter and also presents and analysis of the literature gap
which is present in the given field and additionally, tends to layout an explanation of the theory
in the given field.
3rd chapter: The third chapter is the Research Methodology chapter which presents, and overall
presentation of the research techniques adopted for the study and the manner in which the
research for the paper has been carried out effectively.
4th chapter: This chapter is an analysis of the Business model and the Data analysis chapter
whereby the details regarding the Business canvas model have been presented and this is then
followed by the other relevant key aspects of the operations of the Day Care as a business.
5th chapter: The last chapter is the Business Plan. In this Business Plan, the different aspects of
the business-like Marketing, Sales, Risks involved and the related Human resource plan will be
outlined which shall assist in understanding the implementation of the business operations.
1.6. Concepts & Models applied
The different concepts as well as the models which have been applied for the purpose of
the business can be understood to be the given ones:

11ELDERLY DAY CARE IN MALDIVES
Table 1.6: The concepts applied
Theory / Concept / Sources of
evidence
Purpose
Porter’s five forces model The given model has been made use of by the report as it
assists in examining the overall industrial environment of
the firm. In addition to this, it also assists in understanding
the manner in which, the different forces govern in the
industry and helps in understanding the manner in which,
the industrial forces will have an impact on the business
organization.
Porter’s value chain The Porters value chain is a strategic management tool
which is generally made use of in order to analyze the
overall operations of a firm. Hence, in the section where
the business plan is present, the Porters Value chain has
been made use of in order to gain an understanding of the
supply chain management.
PESTLE Analysis The PESTLE analysis as a strategic management tool has
also been applied in the different operations of the firm
which shall assist in understanding the manner in which,
the PESTLE forces will have an impact on the overall
operations of the organization.
SWOT analysis The SWOT analysis is also a comprehensive strategic
management tool which can be utilized by the business in
order to understand the overall internal capabilities of the
business.

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Business Canvas Model The business canvas model can be largely understood to be
a model which the organization uses to understand the
overall business operations which are followed by the
different managers. The business canvas model can be
understood to be a visual chart which the business can
make use of in order to understand how the different
departments of the business can be managed successfully
or how the business operations could add value to the
overall functioning of the firm. The different domains
which are understood and well described in a business
model can be understood to be the customer segments, the
customer relationships, and the value proposition of the
products, the infrastructure of the firm and related critical
aspects (Miller 1983).
Business Plan The Business Plan can be rightfully understood to be the
overall plan which is laid down for the success of the
business operations. It is the business plan which outlines
the overall funding requirements of the business and
essentially lays down the manner in which the organization
can benefit in the long run (Kuratko 2016). The Human
resource plan and the legal plan of the business are also
defined with the help of the different sections.
Additionally, the business plan tends to assist in ensuring
that, the firm will be able to ensure successful operations in
relation to the same. Additionally, these aspects help in
ensuring future success in the domain.
Financial feasibility Tool The Financial feasibility can be taken to be the overall
sustainability of the business in terms of the financial
aspects (Parker 2018). In line of this, the financial
feasibility can be taken to be a crucial section which assists
in determining whether the firm will be able to survive in

13ELDERLY DAY CARE IN MALDIVES
the long run or not. All businesses in the complicated
business environment would be required to see to it that
they are taking adequate steps and procedures which would
help them to see to it that the business does not face any
troubles in the long run (Shapero and Sokol 1982). The
financial feasibility of an organization checks out for the
overall incomes and expenditures which are incurred by a
business and in addition to this, checks out for the overall
breakeven as well.
1.7. Assumptions
The different assumptions based on which the study can be carried out can be understood to
be as follows:
1. The business idea will be successful in the country.
2. The elderly will be willing to stay in the country.
3. The cost factors and the revenue streams will be assumed in the right manner.
1.8. Business Objectives &Time Scales
The business objectives which have been designed can be understood to be as follows:
 A maximum number of elderly individuals will subscribe to the services of the day
care. The business is functioning with the aim of serving at least 500 elderly in the
first year of operation
 There will be adequate professional help which shall be available for the business and
all professional employees will be hired. At least 100 employees will be hired to
make the care ratio of 1: 5 by 2021.
 The organization will be able to find overall long run success by earning high
revenues. The firm has aimed to earn the revenue of $100000 in the first year of
operations.
Activity Months

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Sept Oct Nov Dec Jan Feb Mar
Finalizing the business idea 
Collecting data from secondary sources  
Forming a layout of the research work 
Conducting Literature review   
Forming the research plan  
Ensuring that the implementation can
be conducted in the right manner
 
Evaluating the operations of the
business
 
Analysis of key indicators  
Revision and others  

15ELDERLY DAY CARE IN MALDIVES
2. Literature Review
2.1 Description of the Proposed New Business
The business idea which has been recommended for the business can be understood to be
the idea of an Elderly daycare in Maldives. The given business idea has been proposed for the
purpose of the business because, there exist adequate opportunities for the business to carry out
its overall idea. The concept of day care for the elderly is although present in Maldives, but the
particular idea is not very well developed and in relation to this, the opportunity to come up with
a day care facility which will provide all the services to the different members of the elderly day
care. The facility will be provided services from 10 in the morning to 5 in the evening. Through
this service, the elderly will be provided with various facilities which related from providing
them with proper medicines, reading material, exercises, good meals, meaning full activities and
different sources of entertainment. As the economy of the country has been performing
considerably well, the needs of the different individuals have been increasing and it is in relation
to this, that it becomes increasingly important for the business organizations to undertake crucial
measures to come up with ideas whereby the parents of the younger generation can be looked
after well (Baumol 1968). Moreover, the time spend at the elderly care can be understood to be
relatively engaging and will assist in ensuring that the firm is being able to serve the society
present as well in the right manner.
2.2 The Concept Statement
The overall concept of the business can be understood to be as follows:
2.2.1 The Product / Service
The business can be understood to be a service-based business and the service which it
has been providing is the Day care elderly service. In this kind of a service, the business will be
providing elderly day care service in Maldives and lacks an international standard day care
system with adequate amenities to be provided to the target audience. The different elderly will
be provided with adequate food, adequate activities and the medical care which they require at
the tender age (Burns 2016). It is with respect to this, that the organization aims to ensure that, it
is being able to provide world class facility to the elderly and ensure success in the long run.

16ELDERLY DAY CARE IN MALDIVES
2.2.2 The Segmentation & Target Market
The target market and segmentation need to stand as an integral part of the organization`s
overall business plan. Hence, the segmentation basis for whom the given business has been used
can be understood to be the Demographic segmentation whereby the target market has been
essentially targeted by using the Age as a segmentation variable. The different elderly
individuals who are above the age group of 58 have been targeted and it is this age group which
will be provided with adequate facilities which will ensure that the members of the facility
belong to the similar age group and hence, the different programs as present can be designed in a
manner such that the overall society shall benefit from the given facilities (Baumol 1996).
2.2.3 Unique Selling Points (USPs)
The Unique Selling points of the particular business idea can be essentially understood to
be as follows:
 The day care facility will be providing world class facility to the different customers as
present.
 As there are no adequate day care facilities as present in the country, it is with respect to
this, that the business will be able to ensure that, it is being able to attain long term
objectives be able to gain a sustainable long-term objective.
 All medical, food as well as the related expenses will be undertaken by the day care
facility itself. Moreover, the overall lifestyle of the elderly can be improved in such a
case.
2.2.4 Location
The location of the business can be understood to be as follows:
The Elderly day care facility will be present in Male in Maldives. The Male can be
understood to be the capital city of the country ad hence, by providing this prime service of the
elderly care business in the city, the business will be able to find adequate opportunities or the
operations which will ensure that the business is being successfully able to engage in overall
success and get a high number of subscriptions in a short period of time.

17ELDERLY DAY CARE IN MALDIVES
2.2.5 Those who involved
The business is based entirely on a sole proprietorship idea whereby the owner of the
business will be the sole proprietor of the business and he will be hiring various professionals as
well as related managers to look out for the different needs of the business. In addition to this,
the organization will also be seeing to it that, all doctors and professional medical associates are
hired within the business in the right manner which will help in making the overall facility fairly
adequate in nature.
2.3 The Window of Opportunity
The window of opportunity which lies within the scope of the business can be stated to be
the fact that the elderly individuals as involved in the society have been increasing and very often
their children are not willing to look after them. In addition to this, the overall economic scope of
the country has also been improving and they will essentially be able to afford the different
operations of the day care and hence, there lies a scope of opportunity in opening the day care
facility for the customers. In the following section, the PESTLE analysis of the Maldives as a
country has been done in order to understand the feasibility of the business in the country.
PESTLE
 Political: The government of the country can be understood to have become quite stable
currently and the President can be taken to be the head of the state. Hence, it is with
respect to this that, the ease of doing business in Male, Maldives can be understood to
have become considerably easy (Bygrave and Hofer 1992). Moreover, the different
governmental policies and regulations which have been designed with respect to the
purpose of the business can be understood to be in alignment with the overall business
operations.
 Economical: The overall economic environment of the country can be understood to be
improving however, the traditional activities relating to the fishing, tourism and
agricultural can be understood to be the primary industries. Secondly, the other aspects of
the economic belong to service and hence, as it will be performing considerably well,
there has been a considerable increase in the overall businesses and hence, the
environment is suitable for new businesses (Kirzner 2015.).

18ELDERLY DAY CARE IN MALDIVES
 Socio-Cultural: The elderly population has been increasing and forms more than 10% of
the targeted audience (Cunningham and Lischeron 1991). Hence, it is with respect to this,
that the business would be required to target this specific group itself.
 Technological: The technological environment can also be understood to be quite
advanced in nature and the advancement can be applied in the field of the medicine care
which will enable the different professionals at the elderly day care to serve the different
individuals in the right manner (Kerin and Hartley 2015).
 Environmental: The environment laws in the country can be understood to be moderate.
 Legal: There are strict Islamic laws and other such legislations as present in the country
and in relation to this, it becomes considerably crucial important for the organization to
ensure that they are able to follow all the strict laws which will enable them to attain
overall success in the long run (Drucker 2014).
Therefore, it can be determined that if a business aims to ensure long term success, then
with respect to this, it would be required to take considerate measures which would enable it to
perform well in the external environment of the business.
2.4 Feasibility Research: Literature Review
Setting up an old age home in the Maldives in Southern Asia, that caters specifically to
the requirements and citizens of senior citizens, and which adds value and dignity to their lives,
is a project that can be achieved only after taking a number of factors into consideration. Elderly
individuals have special needs, and care giving for the elderly can prove to be a complicated and
challenging affair. This section engages in an in-depth review of literature on old age homes, and
the aspects that make an old age home a desirable place to reside in for senior citizens who have
no family or friends to turn to for support and assistance. It also highlights scholarly arguments
on the types of issues and ailments that prevail among old people living in care homes, which is
something that business owners need to be mindful of when setting up such a care giving
institution in the South Asian country of Maldives. The review is divided into two parts. The first
focuses on matters pertaining to quality of life of residents in care homes in general, and the
second part of the review focuses on issues and aspects associated with quality of life of
residents of care homes in the context of South Asia.

19ELDERLY DAY CARE IN MALDIVES
Improving Quality of Life for Residents of Care Homes
The Role of Smart Technology in Improve Experience of People in Old Age
Homes
Peek and Wouters (2016) have undertaken research on the role that smart technology can
play in improving the experience of people living in old age homes. The research talks
specifically about the ways by which smart technology can make senior citizens in old age
homes more independent in the manner in which they conduct their daily activities and also
discusses the views and perspectives that old people are seen to have on the use of smart
technology as a whole. It is argued by Peek and Wouters (2016), that the concept of
independence that prevails among old people who reside in care homes, can be characterized into
three distinctive modes or types and discusses how such modes can be connected to the
perceptions and acceptance of old people in community dwelling regarding the use of smart
technology for independent living. The concluding argument made by Peek and Wouters (2016)
is that smart technology has a direct contribution to play in improving the life of people in old
age homes, as it facilitates them to lead lives as independent adults, and not as helpless and
dependent individuals.
Equality, Gender Sensitivity and Dignity as Factors that ensure Good Quality
of Life for Senior Citizens of the LGBTQ Community
Westwood (2015) has undertaken research on the housing preferences of elderly people
who belong to the LGBTQ community. The study has been carried out in the context of the
United Kingdom. The lack of choice that elderly citizens who belong to the LGBTQ community
are faced with over here, when it comes to care giving homes for the elderly or sheltered
housing, is something that has been well reflected in the research. Qualitative research was
carried out by Westwood (2015), that explored gender, sexuality and ageing from the perspective
of with semi structured interviews being carried out, with as many as sixty people in the UK who
are senior citizens of the LGBTQ community. The concerns of the respondents regarding social
care provision and health care provision are adequately highlighted and what the findings of the
research appear to reveal is that there are several themes that underpin concerns of older LGBTQ
individuals about mainstream shelter accommodation as well as residential care. These are

20ELDERLY DAY CARE IN MALDIVES
unequal openness, risky visibility, the lack of visibility, and the compulsory co-occupation of
what may be termed as care spaces. The significant role that gender has to play when it comes to
housing preferences is also something that has been well pointed out by Westwood (2015), who
argues that many older LGBTQ women desire sexuality or gender specific provisions in care
homes, in comparison to men.
Role of Tele-Health in ensuring Good Quality of Life for Senior Citizens
Cimperman et al. (2016) have researched on the role that tele-health has to play in improving
the lives of senior citizens in care homes, and the security that such health provisions ensure for
these senior citizens. The researchers have made use of what may be termed as a UTAUT model
in order to conduct the investigation. It is the argument of Cimperman et al. (2016) that although
an improved approach is offered by telehealth to the provision of healthcare services, the
adoption of telehealth by end users is something that remains quite slow. Telehealth targets an
older population, who are primarily quite traditional and conservative in their outlook to
healthcare who in turn pose a significant challenge to the process of innovative health services
being successfully implemented. The research has been carried out in the context of Slovenia and
the purpose of the research is to develop as well as test empirically a model that can predict all
the factors that influence acceptance by older users of home telehealth services. Cimperman et al.
(2016), argue that three factors, namely, the level according to which home telehealth services is
perceived in addition to perceived security and perceived usefulness are what primarily influence
the acceptance of home telehealth services by older people in care homes. It is concluded by
Cimperman et al. (2016) that home telehealth services can certainly improve the lives of senior
citizens in care homes and that those marketing such services should portray it as secure and
reliable and even have it endorsed by health professionals, to ensure successful implementation.
Planning for the Process of Ageing and its Challenges in Extra Care Homes
The process and the experience of ageing in extra care housing is something that has been
well explored by Johnson et al. (2019). The research has been carried out in the context of the
United Kingdom. It is argued by Johnson et al. (2019) that extra care housing is something that is
often perceived as a solution for the issues that are associated with conventional forms of social
care, largely because it enables older people to live their lives in autonomous way, while making
care giving, support and assistance to them at the same given time. The theories of the fourth age

21ELDERLY DAY CARE IN MALDIVES
and the third age have been used as a conceptual framework to conduct this research. The
arguments made by Johnson et al. (2019) is that transitions across the dividing line between the
fourth age and the third age is not something that is always irreversible or straightforward and at
times can be planned for, managed and even resisted by older people. It is also argued by
Johnson et al. (2019) that all operational practices that are located within extra care housing
schemes are those that can function to impede or facilitate the attempts that are made by
residents to manage this dividing line or boundary.
Crucial Role of Care Workers in Improving Quality of Life for Residents of
Old Age Homes
Bjornsdottir (2017) has carried out research on the quality of life as experienced by
people who live in old age homes, looking at the factors that specifically influence the
experience of living well in care homes. It is argued by the researcher that plenty of attention is
paid to the matter of how old age homes or care homes as they are commonly known can
facilitate old people to lead independent lives and make them less vulnerable than what they
usually would be, when living all on their own. However, little heed is paid to the challenges that
are faced by old people who are fragile and sick and who are unable to cope with the pressures of
the everyday even when they reside in a care home. An ethnographic study has been conducted
by Bjornsdottir (2017) in the context of Iceland, with Foucault’s concept of self-care for
individuals and Latimer’s concept of care for old and frail people being used as the theoretical
framework for the study. It is argued by Bjornsdottir (2017) that with declining ability as well as
declining stamina for handling all things material, the role of care workers and relatives becomes
especially important for frail old people. It is concluded by Bjornsdottir (2017) that home care
services need to be reconceptualized as services that as world forming and as a part of life, with
workers contributing to all the daily activities that are seen to support the art of living well in
care homes.

22ELDERLY DAY CARE IN MALDIVES
Old Age Care in the Context of South Asia
Effects of Reminiscence Therapy in Improving the Quality of Living in
Residents of Old Age Homes in Bangalore
Shah et al. (2018) have undertaken research on the effects that reminiscence therapy can
have on the quality of health and of life in general among people who reside in old age homes in
Bangalore, India. The researchers narrowed down their investigation to one select old age home
in Bangalore, with a quasi-experimental design being adopted for the research. It is concluded by
Shah et al. (2018) that inmates of the old age home in Bangalore that were included in the study
were people who showed significant signs of improvement after reminiscence therapy was
administered on them, thus arguing that reminiscence therapy needs to be adopted as a crucial
tool for ensuring good quality of life for senior citizens in care homes.
Understanding how Inside Walking can Influence Quality of Sleep and
Quality of Living among Residents of Care Homes in Nepal
The relationship between quality of life, sleep quality and the act of walking among older
adults in care homes has been studied in detail by Chalise and Lamsal (2017) in the context of
Nepal. It is argued by the researchers that disturbances in sleep are a problem that is frequently
experienced by people who belong to the older age group. The aim of the research carried out by
Chalise and Lamsal (2017) is to see whether the quality of life of old people in care homes can
be improved by getting them to participate in inside walking, that includes bringing about
improvements in their quality of sleep. What the results of the research appear to reveal is that
sleep disturbance, habitual sleep efficiency, subjective sleep quality, sleep duration, and sleep
latency are seen to significantly improve when older adults are made to engage in inside walking
in care homes, leading Chalise and Lamal (2017) to conclude that inside walking is an activity
that ought to be incorporated in care homes in Nepal to improve the quality of sleep of residents,
and in doing so, their quality of life in general.
Effects of Music Therapy on ensuring Good Quality of Life for Senior
Citizens in Care Homes in Hyderabad
Kalapala et al. (2017) have carried out detailed research on the effect that music therapy
can have in curing depression among older adults living in care homes in the Indian city of

23ELDERLY DAY CARE IN MALDIVES
Hyderabad. An epidemiological design has been adopted by the researchers for this investigation
and individuals living in a selected old age home in Hyderabad were exposed to classical music
therapy to understand whether depression prevailing among the respondent population could be
improved. The results of the research reveal that feelings of isolation, pain and sadness and
symptoms that are commonly associated with what may be termed as seasonal affective disorder
including psychological distress are those that can be made to go away, or be reduced by a
considerable degree, when old age home residents are administered with music therapy.
Key Findings/Takeaways from the Literature Review
The literature review that has been undertaken reveals that a number of factors come into
play in order ensure quality of life for residents of care homes such as inside walking, music
therapy, reminiscence therapy, good behavior and assistance of care workers, acceptance of all
forms of sexuality, and the use of smart technology. The literature review also highlights the
crucial role that organization and planning can play in ensuring a disciplined, dignified and good
quality of life for elderly people who are made to live in care homes.

24ELDERLY DAY CARE IN MALDIVES
3. Research Methodologies
3.1 Research background statement
The reason why the particular research is being carried out can be understood to be to
determine the manner in which the Elderly day care business and related operations can be set up
in the country and what resources can be set up in the given country. The research methodology
as an overall chapter will be outlining the various research techniques which can be made use of
while carrying out the research procedure (Eckhardt and Shane 2003). The research methodology
forms a crucial part of the study and all the businesses as present, will be required to ensure that
they are being able to undertake a comprehensive research procedure which would go a long way
in helping the business to undertake the overall operations of the business in the rightful manner.
3.2 Overall Research Design
The following section will outline the various aspects of the Research design which will be
primarily adopted in the paper and will assist in carrying out the study effectively.
Research Approach
The research approach can be taken to be the overall plan and process which undertakes to
assume a set of points with respect to the overall procedure of data collection, interpretation as
well as the analysis which is present. The research approach is generally capable for the different
categories relating to the collection of the data and the overall distribution of it. The research
approach forms an integral part of the overall study as it has the capacity to determine the
manner in which the research objectives will be achieved. There are a large number of research
approaches which can be followed for the paper and be taken to be the Deductive approach, the
Abductive approach and the Inductive approach (Evans and Leighton 1989). Out of these
approaches, the research approach which has been adopted for the purpose of the study can be
understood to be the Deductive research approach. In the deductive research approach, the
information regarding the project is collected and the analysis is deduced from it. Here the
information would be mostly collected from the secondary sources and hence, this shall provide
a comprehensive view of the entire research procedure and the performances of various business
in this domain can also be assessed adequately.
Justification for the Research Approach

25ELDERLY DAY CARE IN MALDIVES
The reason why the deductive research has been adopted is to ensure that all the data
which is being collected for the research can be analyzed and the informative data can be
deduced out of it. This will assist in arriving at a conclusion about the overall performance of the
organization in the future.
Research Design
The research design can be taken to be the manner in which the overall research shall be
designed for the purpose of the paper. It also tends to determine the manner in which the entire
study is set and how the information which has been deduced shall be presented in a
comprehensive manner (Hodgetts and Kuratko 2001). There are various types of variables which
are generally involved in a study and the Research design can be understood to be the section
whereby the overall framework as involved in a study with the techniques of research is
mentioned adequately in a comprehensive manner. There are various types of Research design
which are present, however, for the purpose of the study, the research design which has been
adopted and can be followed can be understood to be the Descriptive research design. This
research design can be stated to be a method which describes the current status of the scenario.
The data collection procedure which has been adopted for the given study can be understood to
be observational in nature.
Justification for the Research Design
The reason why the Descriptive research design has been adopted for the research is to
ensure that the overall goals and objectives of the study can be achieved and in addition to this,
the Descriptive research design will assist in ensuring that the overall objectives of the research
can be attained in the right manner by explaining all the aspects of the business in the right
manner.
Research Strategy
The research strategy can be essentially stated to be the overall plan which is formed for
the purpose of the study (King and Levine 1993). The research strategy which can be applied for
the purpose of the paper can be understood to be the secondary approach whereby the
information for the particular research can be taken to be with respect to the secondary sources.
Various newspaper articles, the business reviews and the different journal articles will be used as

26ELDERLY DAY CARE IN MALDIVES
mediums to find information for the particular study as present. In addition to the secondary data
collection method, the secondary analysis will be made use of whereby the different data
collections which will be made use of will be analyzed using the secondary approach. This shall
assist in forming the research proposal in a systematic format.
Justification of the Research Strategy
The secondary qualitative approach of research strategy can be adopted because the
requirement of the research demanded the usage of the Secondary method of analysis. In line
with this the secondary method of data collection assisted in analyzing the data collected in a
qualitative manner which will ensure that the objectives of the Business can be achieved in the
right manner.
Research Instruments
The research instruments can be rightfully understood to be the research mediums which
will be made use of in the particular paper and the decision regarding the research instruments
can be understood to be critical as it determines whether the research objectives outlined can be
achieved or not. For the purpose of the research the Applied research and the Data collection
instruments comprise of the research instruments. These often comprise of mediums like the
Questionnaire, the Interview Methods and other such mediums. The case study approach can
also be undertaken to be a comprehensive medium which can be adopted for the purpose of the
research proposal. The given research proposal has made use of the Ethnographic or the
correlation approach, whereby the data for the analysis shall be collected and this will be
followed by the analysis of the same. This approach tends to assist in finding the overall scope of
the research and leaves a room for the analysis as well.
Justification for the Research Instruments
The reason why the Ethnographic approach of the research has been adopted is to
determine the manner in which the business will perform in the long run and also assess the
manner in which the overall operations of the business will be discussed and thereby there can be
adequate room for conclusion.

27ELDERLY DAY CARE IN MALDIVES
Sampling Plan
As mentioned earlier, the secondary approach has been adopted for the purpose of the
study and it is with respect to this that, no sampling work will be carried out for the purpose of
the paper. To collect the information, the study has made use of various journals, business
reviews, studies and related sources so that the data could be extracted in a comprehensive and
sustainable manner.
Data Types & Data Collection Methods
The data types and data collection method being adopted for the purpose of the paper can
be understood to be the secondary approach where the data will be collected from various
business reviews, journals as well as the governmental websites. Hence, in this type of analysis it
becomes considerably relevant for the firm to be able to ensure that it is being able to gather the
data which is relevant for the purpose of the study. The external references being used shall
assist in ensuring that the data is collected in a comprehensive manner and additionally, the
analysis is carried out in the right track.
Justification for the Data Type and Collection
The reason why the secondary method of the Data collection can be understood to be
adopted for the research can be contributed to the fact because the project has been based on a
business plan and in relation to this, the Secondary method of Data collection has been adopted
which will assist in ensuring that the objectives of the research can be achieved.
Research Ethics
The research ethics can be stated to be an initiative which is usually adopted by the
researcher in order to ensure that the entire research can be essentially presented in a
comprehensive manner and that the he is being able to carry out the overall objectives
successfully. The research ethics determines the analysis of the ethical issues which generally
arise in the domain of the study where the survey is used as a method and the different
participants as present are involved. However, in this case, as the research has been carried out in
the secondary approach, no such ethical issue arises However, in the given research proposal
development, it has to be seen to it that there does not exist any case of plagiarism or copying.
Moreover, all the references which will be made use of will be acknowledged and the due care

28ELDERLY DAY CARE IN MALDIVES
will be given importance to. As the study is based on Secondary analysis, there may be chances
that there might take place certain cases of Plagiarism. In line of this, all due reference for the
various sources will be made and in line of this, there shall not take place any issues of similarity
or fake citations as well.
Research Barriers & Limitations
The different research barriers which may arise in the field of the research can be
understood to be as follows:
 The researcher may not be able to find any related information which would have assisted
them to complete the research in a timely manner.
 In addition to this, the secondary analysis method used for the purpose of the study may
make the overall study quite limited in nature as previous researchers which take place,
may or may not be able to fulfill the overall requirements of the research objectives as
present.
 Moreover, as the views of the different participants is not being undertaken, the new
facilities which are usually present in the firm cannot be included because the researcher
may not be able to figure out the exact requirement of the workplace.

29ELDERLY DAY CARE IN MALDIVES
4. Data Analysis and the Business Model
4.1 Data Analysis
4.1.1 Product/ Service Feasibility
The critical success factors of any given product or service, including the products and
services that are related to old age care and assistance, are the operations or work involved in
making the product or service available, the people who are involved in the execution of such
operations, the marketing of the product or service, and the finances that need to be deployed for
this purpose (Parker 2018). The proposed elderly care home will have unique selling points that
are in keeping with all of these critical success factors.
Operations – The operations of the proposed elderly care home will include maintaining the
health and the wellbeing of the residents, caring for minor health related problems as well as
long term health related issues, ensuring that residents are served quality meals in a timely
manner, getting the residents to take part in community living practices within the setup of the
elderly care home, and making sure that residents get all the rest and comfort they need to lead a
good life in their old age (Lovelock and Patterson 2015).
People – The proposed elderly care home will employ an elaborate staff who will be responsible
for running all operations in a smooth, efficient and in a timely manner. The proprietors of the
elderly care home will take care to recruit skilled and competent employees, who are not only
proficient in the rendition of their duties but who also possess the compassion, care and
sensitivity that is needed to deal with people who are in their old age (Lovelock and Patterson
2015).
Marketing – Most of the marketing for the proposed elderly care home will take place on social
media. Some of the popular platforms on social media that are going to be made use of for this
purpose are Facebook, Twitter and Instagram (Kirzner 2015.). Additionally, a website will also
be developed that will contain information about the new business and what it is going to offer
(Kotler et al. 2015).

30ELDERLY DAY CARE IN MALDIVES
Finances – The total operating budget for the proposed elderly care home is $ 10 million. The
source of funding will be personal capital or self-funding hence issues are not going to arise with
regard to the acquisition of funds.
4.1.2 Industry Feasibility
The industry for old age care in Maldives is growing at a rapid pace, with the
decision to prioritize care giving for senior citizens having been taken by the country’s
cabinet of ministers in as early as 2011. A concern was expressed by the ministers over the
increasing number of senior citizens who would be brought to an old age home in K. Guraidhoo
which is meant for people who are in need of special assistance and care which in turn prompted
the administration in Maldives to announce the initiation of new initiatives that would be taken
to bring about improvements in the quality of the lives of helpless, vulnerable and needy senior
citizens in the country (SunOnline International, 2019). The longevity of Maldivians is
something that has been seen to increase quite a bit in recent years as well and the older
population in the country is increasing in number (Searo.who.int, 2019). While the national
health policy of the country is one that advocates the equal distribution of healthcare facilities
and services for the benefit of citizens, gaining instant or easy access to health care services
remains a concern for senior citizens situated in the outer islands of the country, even though
Maldives offers a health insurance policy for people who have crossed sixty five years of age.
(Searo.who.int, 2019).
The industry for elderly care in Maldives can be analyzed using Porter’s 5 Forces –
Competitive Rivalry – There aren’t too many places in the Maldives as a whole that offer
organized services for elderly care and assistance, even though the matter has been now
prioritized by the government. Most of the care and assistance made available to vulnerable
sections of the country’s elderly population are provided by NGO’s and civil society
organizations, so the competitive rivalry for the proposed elderly care home is low (Porter 2011)
Supplier Power – The supplier power for the proposed elderly home in the Maldives is likely to
be high, given the fact that there are few or limited organizations along the lines of what the
proposed elderly care home is looking to provide. (Ibid)

31ELDERLY DAY CARE IN MALDIVES
Buyer Power – Since there are few options for customers to choose from with regard to elderly
care services, the buyer power for the proposed elderly care home is likely to be low (Ibid)
Threat of Substitution – The proposed elderly care home is going to be the first of its kind, and
since it is going to be launched and operated on a very high budget, it is the quality services
provided by the enterprise are those that are not likely to be easily or readily substituted by rival
or competitor organizations (Ibid)
Threat of New Entry – The demand for elderly care assistance and services in the Maldives due
to the rising elderly population in the country and a dependent population at that implies that
there is plenty of scope or opportunity for new enterprises to emerge that offer services which are
similar to those provided by the proposed elderly care organization. The threat of new entry is
therefore quite high (Ibid).
4.1.3 Market Feasibility
The market analysis for the proposed elderly care home will be carried out on the basis of
buyer behavior, brand loyalty and access to potential customer information.
Buyer Behavior – The rapid rise of an elderly dependent population in the Maldives implies that
there are many people in the country who are going to be interested in procuring the services that
the proposed elderly care home is going to offer. People are going to want to send their aged
parents and relatives to an institution which offers high quality services and where their loved
ones will get the care and the attention that they deserve. Many elderly individuals who live all
on their own in the Maldives will also be interested in availing the services offered at the
proposed elderly care home as it will enable them to lead a more autonomous and dignified life
(De-Mooji et al. 2018).
Brand Loyalty – Brand loyalty is something that is likely to be quite limited when it comes to
the proposed elderly care home in the Maldives since customers are not aware of what the new
business has to offer as yet, and as such have not availed the services of the proposed
organization. There are also little or no prominent elderly care organizations in the Maldives that
customers are likely to owe allegiance to and which can pose to be a problem for the market
presence of the proposed elderly care organization. Hence brand loyalty is not going to influence
the market operations or market presence of the proposed elderly care organization.

32ELDERLY DAY CARE IN MALDIVES
Access to Customer Information – Information about potential customers, that is customers
who are likely to sign up for services and facilities that are made available in an elderly care
home shall be obtained from social media sites for the new business to gain an understanding of
the type of target audience that it is going to cater to. Online survey’s or forms will also be
circulated among prospective customers through email and through the new website of the
proposed business in order to gain an understanding of what it is that such customers expect from
the business that is about to be set up. This in turn will give the proposed business a better
understanding about the type of market that it is about to operate in (Tuten and Solomon 2015).
4.1.4 Organizational Feasibility
The organizational analysis for the proposed elderly care home is going to be carried out
using the model of a SWOT Analysis
Strengths – The proposed business is one that is going to be launched on a massive budget. This
in turn will put the business owners to hire the best skill and talent for running this business in
the Maldives and also to offer high quality care giving services, the kind that has never been seen
to exist in the Maldives before. The budget of the new business is going to allow it to create the
type of infrastructure that will serve as a magnet for old people in the Maldives who need the
care and assistance that is provided in a professional elderly care home (Kerin and Hartley 2015).
Weaknesses – The business owners have little or no information about for how long it is that the
target audience will want to continue the services that are offered at the proposed elderly care
home, because the price of services will have to be increased from a competitive rate to a higher
rate at some point or the other. Apart from this uncertainty there is no other weakness that the
new business is going to be characterized by (Wilson et al. 2016).
Opportunities – The demand for elderly care assistance and elderly care services in the
Maldives is very high, which is why there is plenty of opportunity for the proposed elderly care
home to grow and expand, especially if it focuses on the provision of quality services for its
customers (SunOnline International, 2019).
Threats – Owing to massive demand for elderly care assistance in the Maldives and the ever
increasing rise of elderly care population in the country, other businesses that are related to the

33ELDERLY DAY CARE IN MALDIVES
proposed elderly care home are likely to emerge, and can pose a threat to the new business by
offering similar services at reduced prices, albeit of a lower standard or quality.
4.1.5 Financial Feasibility
Startup capital
As no loans is being taken for the business and the different operations of the
organization will be financed by making use of the personal funds, the loan statement would not
be made and the business will carry out its operations based on the cash and liquidity assets itself
and in relation to this, the working capital statement will not be presented.
Table 4.1.5 Startup expenses
Startup Expenses
Buildings / Real Estate
Purchase
$
45,000
Construction 12,000
Remodeling 23,000
Other 12,000
Total Buildings and R / E
$
92,000
Leasehold Improvements
Item 1
Item 2 -
Item 3 -
Item 4 -
Total L / H Improvements $

34ELDERLY DAY CARE IN MALDIVES
-
Capital Equipment List
Furniture
$
12,000
Equipment 20,000
Fixtures 40,000
Machinery 4,000
Other 23,000
Total Capital Equipment
$
99,000
Location and Admin Expenses
Rental
$
3,000
Utility Deposits 30,005
Legal and Accounting Fees 34,000
Prepaid Insurance 23,000
Pre-opening Salaries 23,000
Other 1,200
Total Location and Admin Expenses
$
114,205
Opening Inventory
Category 1 $

35ELDERLY DAY CARE IN MALDIVES
2,300
Category 2 12,000
Category 3 2,300
Category 4 12,300
Category 5 1,200
Total Inventory
$
30,100
Advertising and Promotional Expenses
Advertising
$
130,000
Signage 12,000
Printing 1,000
Travel & Entertainment 12,000
Other / Additional categories 100
Total Adv and Promo expenses
$
155,100
Payroll and payroll taxes
Expense 1
$
12,000
Expense 2 1,000
Total Payroll and payroll taxes
$
13,000

36ELDERLY DAY CARE IN MALDIVES
Summary Statement
Sources of Capital
Owners' and Other Investments
$
10,000,000
Bank Loans -
Other Loans -
Total Source of Funds
$
10,000,000
Startup Expenses
Bldgs. / Real Estate
$
92,000
Leasehold Improvements -
Capital Equipment 99,000
Location / Admin Expenses 114,205
Opening Inventory 30,100
Advertising / Promo Expenses 155,100
Other Expenses 13,000
Total Startup Expenses
$
503,405
Owners' Investment (name & % ownership)
Your name & % ownership
$
10,000,000

37ELDERLY DAY CARE IN MALDIVES
Another Investor
Another Investor -
Another Investor -
Total Investment
$
10,000,000

38ELDERLY DAY CARE IN MALDIVES
4.2Business Model
The business canvas model can be understood to be a nine-segment building block for the
business which can be a new idea or existing one. The canvas model tends to flex on the business
model and it helps to focus on the business model step-by-step period this also means that all the
activities like the key partners, Value proportion activities, the customer relationship
management and the customer segment along with the services will be managed in the business
so that it becomes comparatively easier for the different businesses to plan for the future (Baden-
Fuller and Haefliger 2013).
The nine different segments which are present in a business canvas model can be
understood to be the value proposition which is offered by the business to the customers, the key
activities undertaken by the business, the key partners involved in the business, the customer
relationship management which is carried out by the organization, the customer segments to
which an organization serves, the distribution channel through which the firm will reach out to
the different customers, the cost structure of the business and lastly the revenue structure of the
business.
These nine segments form an integral part of the organizations overall operation. The purpose of
this section will be on describing the business canvas model and its related segment for the
elderly Daycare business which will be carried out in the Maldives.
Table 4.2: Business Canvas Model
Key Partners
Hospitals
Food companies
Medical partners
Other companies
Key Activities
 Establishing
relationships
with clients
 Providing good
quality services
to the different
elderly as
present.
 Ensuring that the
different
employees are
Value Proposition
 The
internatio
nal
standard
service
being
offered
 The world
class
facility
being
Customer
Relationships
The customer
relationship
management will
be done as follows:
Social media tools
and websites
Customer
Segments
The customer
segments are as
follows:
The elderly
individuals aged
above 58 years

39ELDERLY DAY CARE IN MALDIVES
able to engage
themselves in
the right manner.
offered.
 The
affordable
pricing
being
offered.
.
Developing a help
care center
of age and
having the
capacity to pay
for the facility.
Key Resources
 The equipment’s
which are used
for the medical
purposes
(Baden-Fuller
and Haefliger
2013).
 The partnered
store products
being used.
 The HR
department.
 The key services
being offered.
Channels
 Physical
channels
 Social
media
Cost Structure Revenue Streams

40ELDERLY DAY CARE IN MALDIVES
 Office expenses
 Medical expenses
 Training of staff
 Other maintenance and marketing costs
 Subscription received
 The income received from the partners and
brand tie ups
New Business Drivers
The primary business drivers which are present behind the particular research can be
understood to be the fact that there does not exist any valid and reliable Elderly Day care as
present in the country and hence, the development of this business idea was taken to be very
attractive in nature. In addition to this, as the entrepreneur was looking out for various business
ideas, the given problem which is present in the given field provided the owner with adequate
convenience to proceed with the idea and to ensure long term success.
Key activities
The key activities which the business and carry out for its different customers can be
understood to be key activities which the business will carry out and the first one for the day care
can be understood to be the health and safety of its residents. The health and safety of the
residents has an integral part of the Daycare system and it is for this primary function the daycare
that it has been informed (Baden-Fuller and Haefliger 2013). People have busy lives these days
and very often the children do not get time to look after their parents in the same manner as we
do not have time to look after the children and hence this will then assist those children to look
after their parents with proper facilities. Hence the key activities of the business was looking
after the differential in elderly people, looking after the medical needs and seeing to it that they
get all the viable facilities which they will be needing. Additionally the day care system will tie-
up with different healthcare brands associated so that they will be able to provide them with the
right kind of products based on their needs. The elderly Day care system also has to insure that
the activities which it for forms for the different customers’ needs to be of the best quality so as
to gain a competitive sustainable advantage in the long run.

41ELDERLY DAY CARE IN MALDIVES
Key partners
The key partners can be understood to mean those suppliers or associates of the business
to help in carrying out business operations successfully. Business will not be able to survive if
the key partner is not being able to play various roles in the overall success of the organization.
The departments of a business are required to ensure that the duty equally and then the able to
assist the business in ensuring long term success (Boons and Lüdeke-Freund 2013). The key
partners of the day care can be understood to be the hospital. The hospital is considered to be one
of the most important key partners because the entity of assistance which is specialized in nature
and can you provided by the hospitals only. Hence all the hospitals as present in that area are the
key partners of the business. Secondly the key partners of the business and also the brand
associations.
The organization for their own purpose carry some sponsorship program with various
brands and support the Daily care. However it is not always possible to ensure that the best
brands will be hired (Boons and Lüdeke-Freund 2013). Moreover, as it is a daily care for the
elderly, their association with various food suppliers it’s also important and hence the key
partners of the business can also be understood to be the food suppliers who will provide healthy
food for the elderly people and it helps in ensuring that the nutrient value of food and it can be
maintained successfully
Value chain-based offering
The business will be requiring a large number of resources pertaining to the financial
resources which will look out for the financial needs of the business. In addition to this, the
business will also look out for the human resource resources which can be understood to be day
care specialists. In relation to this, various medicinal resources will also be required which will
assist in looking after the day care specialists.
Value proposition
Valuable position understood to be the key value which the business delivers to the
different customers and in relation to this it becomes extremely important to underline the fact
that the customer needs have to be satisfied only then the organization can be understood to be
providing adequate valued less of friends. Value proposition is the function of the organization

42ELDERLY DAY CARE IN MALDIVES
and here in the case of the day care, the proper welfare of the elderly people who were present in
the system and ensuring that no harm comes to them in terms of emotional as well as physical
needs (Boons and Lüdeke-Freund 2013). Hence if the day care is able to provide proper facilities
to the different elderly people as present them in such a case it will become considerable easy for
the customers to get used to the business and hence the business will be able to perform well in
the long run. Hence implying of this it can be understood to be the ultimate goal of the elderly
day care business is to ensure that they are able to modify its value proposition and make the best
of the different customers as present.
The customer relationship
The customer relationship forms an integral part of any organization and any firm which
wants to ensure success in the long run will be required to maintain strong and healthy
relationships with the different customers at present. Not many businesses understand the
importance of customer relationship management and often engaged in and drift with the
customers which spoils the overall image in the society.
The many different ways in which the different businesses can maintain strong customer
relationships can be understood to be through this social media as a medium. The social media as
a medium allows the business to maintain digital relationships with the different customers by
answering the query on the net and by continuously collecting feedback for them. This feedback
which is generally collected from the different customers’ needs to be recorded, analyzed and
applied into the operations of the firm. This is how the customer relationship with the day care
can be strengthened and there shall be no complaints against organization in the long run. The
other means to maintain good relationships with customers can be understood to be provided
adequate service to them (Boons and Lüdeke-Freund 2013). The services of organization are the
key aspects of any firm and if the different customers and not satisfied with the overall services
then the customer relationship takes hold. Hence it is important that any departments in a firm
are able to look after the customer care relationship and maintains it sufficiently so that in the
future these customers are able to come back to the business and make the business successful in
the long run.
Customer segment

43ELDERLY DAY CARE IN MALDIVES
The customer segment can be understood to be the set of customers which the business is
serving currently. The elderly day care business will be serving the elderly people and these
customers can be set to be a target market by using their age demographic as a viable option for
the business. The Daily care system will be catering to the needs of both the male and female
gender as gender does not have any role in their operations. The primary customers in the given
business set up can be understood to be the elderly men and women who can afford to pay for
the operations but do not have anyone to look after them.
The key resources
The key sources of business from in integral part of it and any business which aims to
ensure success in the long run and is required to see to it that they are being able to fulfil the
needs of the different customers and will be required to ensure that the resources at its disposal
are utilized effectively. The key resources of the business are the ones which help it to achieve its
overall goal and helping to ensure success in the long run. However very often the organization
is not being able to maintain its sources. Hence the use of the resources is important and the
business must align the resources with its offerings made to the customer. The resources which
will be required in the day care business can be understood to be there medical facilities, Human
resource management, train doctors, the food department and related health care resources of the
of the different elderly people and other such amenities like furniture, television, radio, telephone
services, CCTV cameras and others which will help in looking after the different customers. The
infrastructure with the elderly people be kept in also be understood to be the primary source of
the business.
Distribution channel
The distribution channel can be understood to be the channel through which the
customers of the organization may be reached out by the business. The firm has to determine
which channels work out the best for itself as it is crucial to reach out to the customers in a better
manner. As the elderly Day care business can be understood to be hospitality business, the
distribution channel shall be mostly physical in nature. However all the facilities will be
available online as well with the different customers who will be able to view their facilities
provided and the course and related aspects of the daily life on the internet. In this way the
organization will be able to maintain the digital as well as the traditional method of business.

44ELDERLY DAY CARE IN MALDIVES
The marketing channel of the business can be understood to be the traditional social
media techniques and the modern means of social media as well which help a business in
attaining overall success. The payment channels which the business has adopted for itself can be
understood to be the channels of bank and cash dealings. The communication channels which
can be adopted for the business can be understood to be through the business website, through
phone and ace to face communication.
Cost structure
The different cost structures in which the business is essentially involved in can be
understood to be the medical costs of the business, the costs of the food which has to be given to
the guests, the amenities service, office maintenance, the cost of ensuring that their daily needs
can be met with (Boons and Lüdeke-Freund 2013). Moreover, the other costs which lie in the
scope of the business can be understood to be the costs of acquiring the overall resources of the
business. The office, marketing and operational costs as involved in the firm can be essentially
understood to be the other type of costs which are present.
Competition
The business will be facing adequate competition from the various hospitals and related
local elderly care which are present in the country. However, it is integral to note that, the
business will be required to engage in world class services which will ensure that the operations
of the firm attract the target audience towards it.
Revenue structure
The revenue structure can be stated to be the different sources of revenue which are
required to be earned by the business and can be understood to be as follows:
 The revenue from the associating with the different advertisement brands and the
associated partners.
 The revenue from the subscriptions which are paid by the elderly to the organization.
The impression which the business wants to create for itself can be understood to be as follows:
Name of the business: Maldivesn Elderly Day Care

45ELDERLY DAY CARE IN MALDIVES
Tagline: A home for all

46ELDERLY DAY CARE IN MALDIVES
5. Business Plan
5.1 Proposed Vision and Mission
5.1.1 Vision
The Elderly Day Care business has the vision for providing maximum care and love to
the elderly especially those who need added care and support. The day care service also
encompasses services to elderly people who want to spend the rest of their lives happily. It
means the vision of the day care center is to build a reputable and strong elderly day care
business that satisfies people from all spheres of life who form the business’s client base. The
business aims to become the most opted choice for clients in Maldives.
5.1.2 Mission
The primary mission of the business is to organize an elderly day care facility that will
provide complete care, protection, love and safety to the elderly people who need continuous
care and support. It will also provide enjoyment facilities to the elderly people, which include
various activities. The mission is also to consistently provide quality services to the clients that
will always bring smiles to their face.
5.2 Marketing Plan
Using one of the crucial aspects of the marketing mix, which is positioning plan, the
business aims to prepare the marketing plan for Elderly Day Care services (Gupta 2017). The
day care business aims to position itself as a superior day care service, which offers highest
quality care services to the elderly people. The positioning of the service will be accomplished
by taking advantage of the competitive market in Maldives and the target market of the business,
which is, the elderly people in need of love, support and care.
Specialized training – The service of elderly day care has a specialized training program
for the trainers and caregivers to ensure that the clients receive top class facility.
Activities and programs – The business will position itself as a care service provider
where the elderly people could enjoy various activities. The activities may include reading,
playing, listening to songs or motivational speeches and watching entertaining programs that
based on the interest of the elderly people.

47ELDERLY DAY CARE IN MALDIVES
Separate pool for elderly people – Keeping the target market in mind, the business will
also have the facility of a separate pool for the elderly who want to enjoy pool time. The pool
will have state-of-the-art facilities for the elderly who will be allowed to enjoy their pool time
under extreme supervision and care.
Table 5.2: 4ps of marketing
Product/Service
The service which is being offered to the
different customers can be understood to be
related to the Elderly day care services which
will assist in ensuring that the overall
operations of the business can be managed
well. World class solutions will also be offered
to the customers
Price
The competitive pricing strategies will be
followed for the purpose of the operations as
this will ensure that, the organization will be
able to reach out to all segments.
Promotion
The social media marketing and other related
means of marketing like newspaper advertising
will be made use of for the operations of the
business.
Place
The Elderly Day care center can be understood
to be the place of the service.
5.3 Operations
For any business, the operations component is one of the most crucial because the
success and failure of a business depends on how smooth its operations are. Porter’s Value Chain
is one effective way to analyze the operations of a business especially a new business. According
to Porter’s Value Chain, there are nine steps that determine the overall operations of a business.
These include, inbound logistics, operations, outbound logistics, marketing and sales, service,
procurement, technology development, human resource management and firm infrastructure
(McPhee 2014).
 Inbound logistics – It includes bringing raw material to the company from the source.
Value chain of the company is enhanced in this first stage by making sure that the raw
materials are of the top quality (McPhee 2014). In addition to that, it is also enhanced by

48ELDERLY DAY CARE IN MALDIVES
optimizing the inbound logistics cost. In terms of Elderly Day Care, the important thing is
to makes sure that the equipment’s for the day care facility are of top quality. Any
compromise on this aspect will take the company down.
 Operations – This is the most important department when it comes to making most of the
inbound logistics or the raw materials received (McPhee 2014). It is amongst the primary
activities under the value chain. The main work of the operations department is to convert
the raw materials into finished goods. For the present company, the raw materials are the
equipment’s that it will receive for the activities engaging the elderly people. By
converting the raw materials into perfectly fine finished goods, the company increases
customer value. Elderly Day Care operations will make sure that the customer value
builds and remains at the highest position (Rollow and Cucchiara 2016). To ensure that
the operations of the company are smooth, various technologies are used to support it.
Process, materials, machine tools, handling of the material, packaging, maintenance,
testing, creating design and operation and information systems are amongst the primary
aspects where the company uses advanced technologies. The use of technology in
operations will ensure that the installation of the equipment’s and the maintenance of the
day care facility are done at the highest quality.
 Outbound logistics – It involves providing the finished goods to the distributors and
retailers. However, in the present case where the company is a service provider, the
finished goods will mean the availability of world class facilities for the elderly people,
activity area for them and recreational activity materials as well.

49ELDERLY DAY CARE IN MALDIVES
Figure 5.2. It clearly shows the primary and secondary steps in Value Chain Analysis
(Source: https://www.marketing91.com/value-chain-porter/)
 Marketing and sales – Marketing for the day care company has to be done in a way that it
builds brand equity by being transparent. Sales have to be done in a way that does not
involve any fraudulent commitments given to the service users. The Elderly Day Care
service will ensure this by providing complete information about its services to the
clients.
 Service – The aim of the day care company will not only be to provide varied services to
the clients but also to make sure that they come back and remain loyal to the business.
Post sales service is used for this purpose only (Rollow and Cucchiara 2016). Providing
world class facilities to the elderly people needing special care also means that the clients
receive these services even after they have bought and used the service.
 Procurement – This aspect of Porter’s Value Chain is although a less important one, it has
to be managed expertly as well for the day care business to operate successfully for a
long time. Procurement of raw materials on regular basis is crucial.
 Technology development – Keeping updated with the latest technology is crucial for the
day care service since it involves facilities of recreational activities for the elderly people.
In any elderly day care business, it is important that the workers provide the highest
quality of care to the people who are the most vulnerable in the society.

50ELDERLY DAY CARE IN MALDIVES
 Human resource management – Human Resource or HR department of any company is
vital to the overall operations. Managing the human resources is important because
having the right people in the company goes a long way in ensuring smooth functioning
of the business especially for the day care services.
 Firm infrastructure – To manage an elderly day care center where people from all ages
will be there expecting a comfortable experience, it is important that the company has
adequate and proper infrastructure.
5.4 Human Resource Plan
In order to build a high quality day care with variety of services to be provided to the
clients, the business has to employ people who are qualified for the work with professional
background and zeal to work hard. The business must employ people who have compassion
especially because the service demands this quality as the employee has to deal with elderly
people. The people who will be employed must have the passion to work for others and dedicate
their time in making others satisfied and happy. The following positions have to be filled up –
 Director – The key person in managing the overall functioning of the business
 Manager – the operations manager will look after
 Trained caregiver – the person will be responsible for looking after the young children in
the day care home
 House administrator – house administrator will have the responsibility to supervise the
services provided to the elderly people
 Nurses – will be responsible for providing healthcare and medical needs to all the clients
 Room supervisors – the responsibility of a room supervisor will be to make sure that each
room is cleaned and maintained regularly
 Accountant – responsible for handling the financial operations
 Trained physician – the responsibility of the trained physician is to look after the physical
wellbeing of the clients.
 Activity coordinator – will be responsible for developing and planning activities for the
elderly people and children.
 Cleaner – will be responsible for cleaning the rooms, the swimming pools and the entire
vicinity of the day care center.

51ELDERLY DAY CARE IN MALDIVES
The different Human resource operations which will take place can be understood to be as
follows:
 Training to the employees: The day care specialist employees are provided with adequate
training opportunities which helps them in ensuring that they are successfully able to
manage the elderly individuals and hence, perform the operations well.
 Employee engagement: The employee engagement forms an integral part of the
organization and with respect to this, the different employees are engaged in various
operations of the firm with the help of which, valuable inputs regarding the employees
can be gathered.
 Performance appraisal: The employees also undergo a performance management system.
Regarding this, it can be understood that, this performance management programs will
encourage the employees regularly.
 Remuneration: The remuneration will be paid to the employees as per the standard rate.
5.5 Risk Assessment
Risk assessment refers to the methods or overall process where the business has to:
 Identify the risks and hazard factors associated with the service known as hazard
identification
 Analyze and assess the risk related to the hazard called risk analysis and risk evaluation
 Decide upon the best ways to eradicate the hazard or to manage the risk when there is no
option of eliminating the hazard known as risk control.
In risk assessment, a business has to thoroughly look at the workplace and identify
whether anything, any situation or process might cause harm to the clients in particular. After the
analysis and evaluation is done, it then becomes clearer as to what the risks and hazards might be
and the level of their severity. When the analysis and evaluation brings forth the type and level of
risk, the next step is to decide on the type of measures that need to be taken to control the
hazards and the consequent risk from occurring effectively. The International Labor
Organization has multiple frameworks for maintaining and ensuring the health and safety of the
workers in the occupational field. Promotional Framework for Occupational Safety and Health

52ELDERLY DAY CARE IN MALDIVES
Convention, 2006, Occupational Safety and Health Convention 1981 are some of the standard
frameworks for ensuring safety and wellbeing in the workplace.
The Elderly Day Care service will provide facilities to the elderly people who need
special care and support. In the day care center, several cases of hazards and risk might occur
such as the elderly people might incur injury and so on. The risk also includes the risk of injury
to the elderly people while they are engaged in an activity. Another risk is that of the elderly
clients falling sick or possessing any disease that is hard to cure. Without timely intervention
from the medical team, it will be difficult for the other employees to manage the situation. The
risk becomes graver if the elderly client falls sick when no one is around or everyone is asleep.
Such risks have to be analyzed and assessed and then decision has to be taken on what measures
the company needs to take for avoiding these risks. However, apart from the clients, the workers
too might be at risk of incurring injuries or developing illness while providing services to the
clients tirelessly. The exhaustion the workers might face could lead to difficulties in carrying out
their responsibilities properly. the conventions mentioned earlier come into effect when assessing
risk factors involving workers.
The risks as mentioned above could be avoided if
 The elderly client is monitored around the clock and there is someone always present
with the client.
 Apart from that, the provision of medical care in close proximity to the elderly clients is
also an option to avoid the risk effectively.
 In addition, the elderly clients could be given training on what to do when they face any
risky situation like incurring physical injury falling sick when no one is around.
Risk assessment is important because it forms an integral part of any business and shows
the seriousness of the business reading occupational health and safety management. The risk
assessment helps in
 Creating awareness regarding hazards and risk
 Identifying the people who might be at risk such as clients, employees, visitors, cleaners
 Determining whether control program is necessary for a specific hazard or not
 Preventing injuries or sickness especially when designing or planning the business

53ELDERLY DAY CARE IN MALDIVES
 Prioritizing control measures and hazards
 Meeting legal requirements wherever applicable
Table 5.5 Risk Assessment Plan
Risk Probability of
occurrence
Impact of the
risk
Actions to avoid / mitigate
the risks
Market Risk Medium The
operations of
the firm may
be impacted
The business can research
well and mitigate these
risks.
Financial risk
.
Medium The sales
may not turn
out to be as
good as the
expected
sales.
The promotions can be
done in a manner such
that the sales of the firms
improves to a great extent
Employee risk Moderate The
employees
who are right
for the firm
may not be
hired
Comprehensive training
and recruitment plan has
to be carried out for the
firm.
Operational Risk High The
operations
may get
affected
Adequate reviews and
appraisals
\

54ELDERLY DAY CARE IN MALDIVES
5.6 Financial Plan
5.6.1 Quarterly based cash budgets
Table 5.6.1 : Cash Budget
CASH BUDGET
For the period / 201x to /
201x
Janua
ry
Febru
ary
Marc
h April May June July
Augu
st
Septem
ber
Octob
er
Novem
ber
Decem
ber
12 months
total
Cash and cash equivalents,
beginning of year
806,7
13
806,71
3
806,7
13
806,7
13
806,7
13
806,7
13
806,7
13
806,7
13 806,713
806,7
13 806,713 806,713
9,680,
555
Incoming payments - incl. VAT
Cash sale of goods
21,53
1 21,531
21,53
1
21,53
1
21,53
1
21,53
1
21,53
1
21,53
1 21,531
21,53
1 21,531 21,531 258,370
Sale of goods on credit 0 0 0 0 0 0 0 0 0 0 0 0 0
Interest 0 0 0 0 0 0 0 0 0 0 0 0 0
Other incoming payments 0 0 0 0 0 0 0 0 0 0 0 0 0
Total incoming payments:
21,53
1 21,531
21,53
1
21,53
1
21,53
1
21,53
1
21,53
1
21,53
1 21,531
21,53
1 21,531 21,531 258,370
Outgoing payments - incl. VAT
Creditors 0 0 0 0 0 0 0 0 0 0 0 0 0
VAT payable 0 0 0 0 0 0 0 0 0 0 0 0 0
Private withdrawals 0 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous: 0 0 0 0 0 0 0 0 0 0 0 0 0
Fixed costs 0 0 0 0 0 0 0 0 0 0 0 0 0
Pay for salaried employees
12,92
5 12,925
12,92
5
12,92
5
12,92
5
12,92
5
12,92
5
12,92
5 12,925
12,92
5 12,925 12,925 155,100
Rent 1,083 1,083 1,083 1,083 1,083 1,083 1,083 1,083 1,083 1,083 1,083 1,083 13,000
Electricity, water and heating 833 833 833 833 833 833 833 833 833 833 833 833 10,000
Repair and maintenance of premises 833 833 833 833 833 833 833 833 833 833 833 833 10,000
Cleaning 833 833 833 833 833 833 833 833 833 833 833 833 10,000
Car running expenses/mileage
reimbursement 667 667 667 667 667 667 667 667 667 667 667 667 8,000
Travel expenses 67 67 67 67 67 67 67 67 67 67 67 67 800
Office articles 100 100 100 100 100 100 100 100 100 100 100 100 1,200
Postage and charges 1,088 1,088 1,088 1,088 1,088 1,088 1,088 1,088 1,088 1,088 1,088 1,088 13,050
Total outgoing payments:
18,42
9 18,429
18,42
9
18,42
9
18,42
9
18,42
9
18,42
9
18,42
9 18,429
18,42
9 18,429 18,429 221,150
Change
Cash in hand 0 0 0 0 0 0 0 0 0 0 0 0
Cash and cash equivalents in
account/in 0 0 0 0 0 0 0 0 0 0 0 0

55ELDERLY DAY CARE IN MALDIVES
Available bank overdraft 0 0 0 0 0 0 0 0 0 0 0 0
Less cash and cash equivalents
beginning of year 0 3,102 6,203 9,305
12,40
7
15,50
8
18,61
0
21,71
2 24,813
27,91
5 31,017 34,118
Credit facility balance end of year 3,102 6,203 9,305
12,40
7
15,50
8
18,61
0
21,71
2
24,81
3 27,915
31,01
7 34,118 37,220
The given cash budget has been prepared by taking in the data from the income statement of
the organization. In line with this, it is required to be understood that, the figures have been taken
based on figures from competitors and general condition of the economy.
5.6.2 Budgeted Income statements
Table 5.6.2: Income statement
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual cumulative price (revenue) increase - 2.00% 4.00% 6.00% 8.00%
Annual cumulative inflation (expense) increase - 2.00% 4.00% 6.00% 8.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Gross revenue
$700,00
0
$714,00
0
$742,56
0 $787,114 $850,083
Cost of goods sold
$109,75
0
$111,94
5
$116,42
3 $123,408 $133,281
Gross margin
$590,25
0
$602,05
5
$626,13
7 $663,705 $716,802
Other revenue [source] $0 $0 $0 $0 $0
Interest income $0 $0 $0 $0 $0
Total revenue
$590,25
0
$602,05
5
$626,13
7 $663,705 $716,802
Operating expenses

56ELDERLY DAY CARE IN MALDIVES
Sales and marketing
$155,10
0
$158,20
2
$164,53
0 $174,402 $188,354
Payroll and payroll taxes $13,000 $13,260 $13,790 $14,618 $15,787
Depreciation $38,200 $38,964 $39,728 $40,492 $41,256
Maintenance, repair, and overhaul $14,850 $15,147 $15,444 $15,741 $16,038
Total operating expenses
$221,15
0
$225,57
3
$233,49
2 $245,253 $261,435
Operating income
$369,10
0
$376,48
2
$392,64
5 $418,453 $455,367
Interest expense on long-term debt $0 $0 $0 $0 $0
Operating income before other items
$369,10
0
$376,48
2
$392,64
5 $418,453 $455,367
Loss (gain) on sale of assets $0 $0 $0 $0 $0
Other unusual expenses (income) $0 $0 $0 $0 $0
Earnings before taxes
$369,10
0
$376,48
2
$392,64
5 $418,453 $455,367
Taxes on income
30
%
$110,73
0
$112,94
5
$117,79
3 $125,536 $136,610
Net income (loss)
$258,37
0
$263,53
7
$274,85
1 $292,917 $318,757
Cumulative income
$258,37
0
$521,90
7
$796,75
9
$1,089,67
6
$1,408,43
2
The figures have been taken from the competitor figures and predictions based on the market.
5.6.3 Budgeted statement of financial position at the end of the third year
Table 5.6.3 Balance sheet
Assets Initial balance Year 1 Year 2 Year 3
Cash and short-term investments $9,496,595 $9,680,55 $9,866,27 $10,057,0

57ELDERLY DAY CARE IN MALDIVES
5 5 76
Accounts receivable $70,000 $71,400 $74,256 $78,711
Total inventory $35,000.00
$35,700.0
0
$37,128.0
0
$39,355.6
8
Prepaid expenses 0 0 0 0
Deferred income tax 0 0 0 0
Other current assets 0 0 0 0
Total current assets $9,601,595
$9,787,65
5
$9,977,65
9
$10,175,1
44
Buildings $92,000 $92,000 $92,000 $92,000
Land 0 0 0 0
Capital improvements
$
- 0 0 0
Machinery and equipment
$
99,000 99,000 99,000 99,000
Less: Accumulated depreciation
expense 0 38,200 77,164 116,892
Net property/equipment $191,000 $152,800 $113,836 $74,108
Goodwill $0 $0 $0 $0
Deferred income tax 0 0 0 0
Long-term investments 0 0 0 0
Deposits 0 0 0 0
Other long-term assets 0 0 0 0
Total assets $9,792,595
$9,940,45
5
$10,091,4
95
$10,249,2
52
Liabilities Initial balance Year 1 Year 2 Year 3
Accounts payable $10,975 $11,195 $11,642 $12,341
Accrued expenses 0 0 0 0
Notes payable/short-term debt 0 0 0 0
Capital leases 0 0 0 0

58ELDERLY DAY CARE IN MALDIVES
Other current liabilities
Total current liabilities $10,975 $11,195 $11,642 $12,341
Long-term debt from loan payment
calculator - $0 $0 $0
Other long-term debt $0 $0 $0 $0
Total debt $10,975 $11,195 $11,642 $12,341
Other liabilities 0 0 0 0
Total liabilities $10,975 $11,195 $11,642 $12,341
Equit
y Initial balance Year 1 Year 2 Year 3
Owner's equity (common)
$
10,000,000
$10,000,0
00
$10,000,0
00
$10,000,0
00
Paid-in capital 0 0 0 0
Preferred equity 0 0 0 0
Retained earnings 0 44 88 131
Total equity $10,000,000
$10,000,0
44
$10,000,0
88
$10,000,1
31
Total liabilities and equity $10,010,975
$10,011,2
38
$10,011,7
30
$10,012,4
72
Breakeven
Table 5.6.3.1 Breakeven
Fixed
Expenses
Fixed Expenses
bldgs. / Real Estate
$
92,000
Leasehold

59ELDERLY DAY CARE IN MALDIVES
Improvements -
Capital Equipment 99,000
Location / Admin
Expenses 114,205
Opening Inventory 30,100
Advertising /
Promo Expenses 155,100
Other Expenses 13,000
Total Fixed
Expenses
$
503,405
Variable
Expenses
Inventory or
Materials 5%
Direct labor
(includes payroll
taxes)
10%
Other expenses 20%
Other expenses 10%
Salaries (includes
payroll taxes) 5%
Supplies 3%
Total Variable
Expenses 53%
Breakeven Sales
level = $506,087.26 Year 1 Year 2 Year 3 Year 4 Year 5

60ELDERLY DAY CARE IN MALDIVES
Net income (loss)
-
$506,08
7.26
$258,37
0.00
$263,53
7.40
$274,85
1.30
$292,91
6.91
$318,75
6.61
Cumulative income
-
$247,71
7.26
$15,820
.14
$290,67
1.44
$583,58
8.35
$902,34
4.95
Positive Cash
Flow? FALSE TRUE TRUE TRUE TRUE
Undiscounted
breakeven year 2 years
Actual break even
period 1.94 years
5.6.4 Sensitivity analysis for the 1st year of income.
Table 5.6.4 Sensitivity Analysis
Year 1 Year 2
Annual cumulative price (revenue) increase - -2.00%
Annual cumulative inflation (expense) increase - 3.00%
Interest rate on ending cash balance 0.50% 0.50%
Year 1 Year 2
Revenue
Gross revenue $700,000 $686,000
Cost of goods sold $109,750 $113,043
Gross margin $590,250 $572,958
Other revenue [source] $0 $0
Interest income $0 $0
Total revenue $590,250 $572,958
Operating expenses

61ELDERLY DAY CARE IN MALDIVES
Sales and marketing $155,100 $159,753
Payroll and payroll taxes $13,000 $13,390
Depreciation $38,200 $39,346
Maintenance, repair, and overhaul $14,850 $15,296
Total operating expenses $221,150 $227,785
Operating income $369,100 $345,173
Interest expense on long-term debt $0 $0
Operating income before other items $369,100 $345,173
Loss (gain) on sale of assets $0 $0
Other unusual expenses (income) $0 $0
Earnings before taxes $369,100 $345,173
Taxes on income 30% $110,730 $103,552
Net income (loss) $258,370 $241,621
Cumulative income $258,370 $499,991
5.6.5 Ratio analysis
Net profit ratio
Year 2019 2020 2021
Net profit
43.7729775
5
43.7729775
5
43.8963383
7
Profit and loss per product

62ELDERLY DAY CARE IN MALDIVES
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 10.00% 15.00% 15.00% 20.00%
Return on Investment
Year 2019 2020 2021
ROI 78.08099124 78.08099124 78.54795709
Contribution Margin
Year 2019 2020 2021
Contribution Margin $590,249.47 $602,054.47 $626,136.67
From the given Ratios, it can be rightfully understood that the predictions of the company
have been made on an optimistic side and in regard to this, all the figures which are present are
made in line of the predictions. The future of the company as per the Ratio Analysis looks bright
and in regard to this, the firm will perform well.
5.6.6 Cost Management
According to Parker (2018), There are various costs which are generally involved in the
domain of the business need to be controlled by the organization and in relation to this, it
becomes critically important to ensure that, the business is able to manage the different costs of
the firm and see to it that they are being able to long term success.
*Proper budgetary control system: To ensure a proper budgetary control system, the
organization will be reviewing the budget at a weekly basis and any unjustified costs will be
managed adequately.
*Training and education of employees: The employees as present in the organization would
be provided with regular training and it is with respect to this that the firm will be able to see

63ELDERLY DAY CARE IN MALDIVES
to it that they perform adequately and that they are being able to work efficiently (Timmons,
and Spinelli 1994).
*Continuous performance evaluation: The performance evaluation of the different employees
will take place regularly in order to ensure that the business is being able to attain all its goals
as well as the objectives as present.
5.7 Schedule for Implementation
Table 5.7 Schedule
Activity Months
Sept Oct Nov Dec Jan Feb Mar
Finalizing the business idea
Collecting data from secondary
sources

Forming a layout of the research work 
Conducting Literature review   
Forming the research plan 
Ensuring that the implementation can
be conducted in the right manner
 
Evaluating the operations of the
business
 
Analysis of key indicators  
Revision and others 
The given business plan has been provided in order to ensure that the operations of the firm
can follow a particular plan of action. In regard to this, it needs to be understood that the timeline

64ELDERLY DAY CARE IN MALDIVES
is tentative in nature. The cost of failure which is associated with the organization can relate to
the costs associated with the investments which have been made in the firm and additionally the
infrastructure and related resources will also be wasted.

65ELDERLY DAY CARE IN MALDIVES
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8. Appendices
Assumptions
1. Year-one revenue expectancy
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Number of units sold annually 100 150 200 150
Average sales price per unit $1,000.00 $1,100.00 $1,200.00 $1,300.00
Annual revenue per product $100,000 $165,000 $240,000 $195,000
Total year 1 revenue $700,000
2. Year 1 cost of goods sold
<Product
1>
<Product
2>
<Product
3>
<Product
4>
Expected gross margin per product 10.00% 15.00% 15.00% 20.00%
Annual cost of goods sold per product $10,000 $24,750 $36,000 $39,000
Total year 1 cost of goods sold $109,750
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 15%
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. -
7. Account receivable and payable % 10%

70ELDERLY DAY CARE IN MALDIVES
Cash flow
Year 1 Year 2 Year 3
Operating activities
Net income $258,370 $263,537 $274,851
Depreciation $38,200 $38,964 $39,728
Accounts receivable ($1,400) ($2,856) ($4,455)
Inventories ($700) ($1,428) ($2,228)
Accounts payable $220 $448 $699
Amortization 0 0 $0
Other liabilities 0 0 $0
Other operating cash flow items 0 0 $0
Total operating activities $294,690 $298,665 $308,595
Investing activities
Capital expenditures $0 $0 $0
Acquisition of business 0 0 0
Sale of fixed assets ($110,730) ($112,945) ($117,793)
Other investing cash flow items 0 0 0
Total investing activities ($110,730) ($112,945) ($117,793)
Financing activities
Long-term debt/financing $0 $0 $0
Preferred stock 0 0 0
Total cash dividends paid 0 0 0
Common stock 0 0 0
Other financing cash flow items 0 0 0
Total financing activities $0 $0 $0
Cumulative cash flow $183,960 $185,721 $190,801
Beginning cash balance $9,496,595 $9,680,555 $9,866,275
Ending cash balance $9,680,555 $9,866,275 $10,057,076

71ELDERLY DAY CARE IN MALDIVES