Data Skills MOD006960: Business Plan for Residential Care Home

This business plan outlines the takeover of a government-owned residential care home, addressing the increased demand due to the pandemic. It details the business overview, including the core service of tele-coaching, immediate and future aims, and required seed capital. The plan further describes the management structure, team skills, roles, and a legal advertisement for a trainer. Market analysis focuses on elderly residents and children without family support, highlighting the competitive advantage of tele-coaching. Marketing strategies, competitor analysis, operational logistics, cost analysis, and cash flow forecasts are also included, providing a comprehensive roadmap for the care home's successful operation. Desklib provides students access to a wide array of similar documents.

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Section One A
Scenario
Business Overview (approx.250 words)
1.1 Business summary: Please write business outline. (who, what, where, When and
how)
The current business plan will outline the takeover of the management and lease of a
local residential care home. This is particularly the plan because currently with respect to
pandemic there is high requirement of care home. Hence, with the help of takeover a new
government owned residential nursing home will be used and takeover (Brown, 2018).
In the present case the government residential care home involves 50 bed and also after
COVID there were 21 residents. Also, there is 60 % of new employees working and they
will have to sign the new contract after takeover. Also, the lease will be for the time
duration of 25 years.
1.2 Describe your core product or service:
The core product that will be brought in the business plan at time of takeover will involve
the use of tele- coaching which can also be stated as telemedicine (Gilissen and et.al.,
2020). This undertakes the use of personal communication and use of technology device
altogether for providing treatment and diagnosis.
1.3 Your immediate and future business aims:
The immediate aim of the company is to take over the government residential care home
so that it can be used by the company. along with this the future business aim will
include the following-
To install a good system of tele- coaching so that residents can be taught and treated
well.
To install a good training system for the care workers so that they treat the elderly
people well.
To make new contract of employment for the employees who are new and existing as
well.
1.4 Please state the amount of seed capital required and partner
investment : (Up to a maximum of £40,000 – see ‘Project Scenarios’ doc.
for clarification)
The amount of seed capital for the project of take over involves £30,000

Section One B
Management structure. (approx.250 words)
1.5b Professional team skills: (Outline individual team members transferrable and
professional skills as per your current CVs only).
While dealing with the residential care it is necessary for the employees to possess some
of the skills so that they can take proper care of elder people. These skills generally
involve the following-
The first and foremost skill involves the use of leadership skills. This is particularly
because of the reason that in case leadership skill will not be inculcated in proper
manner so that proper care can be provided to patient (Horton, 2022).
Along with this, effective team working skill must also be required to be possessed by
care worker. The reason underling this fact is that when the team will not be working
better than this will be affecting the completion of work.
1.6b Each team member’s roles and responsibilities:
Team member Roles and responsibilities
Team manager The role of manager of team will include
the taking of decision and also the
communication of responsibilities of every
member.
Team coordinator This is the person who is responsible for
ensuring that every work is being done as
per planned working.
Team workers These are the people who are responsible
for the effective management and
completion of all the activities assigned by
manager.
1.7b. Identify your company’s skill gaps, then chose one role and create a
legal advert with the skills required and their roles and responsibilities.
The company skill gap involves the fact that there is lack of proper training facility for
employees working in residential care home. Hence, the selected role is of a trainer and
for that the legal advert involves the following-

LEGAL ADVERT FOR TRAINER IN RESIDENTIAL CARE HOME
Within the care home setting there is a
requirement of professional who can share
and impart immense knowledge relating to
changes in technical and legal fields.
Please come for the interview
and salaries are negotiable
please forward he CV and
cover letter at
[e-mail]

Section Two A
The market/customer profile. (approx..250 words)
2.1a Describe your target market profile and where are your proposed
customers based:
The target market is being referred to as the process through which the company focuses
to improve the working of company. In the present case the target market for the
government residential care home is the elder people. This is because of the reason that
within the residential care generally the elder people come and live there only. Hence,
the reason for the takeover of government residential care home is to focus on the elder
people so that it will result in increase in operation of company (Inns and et.al., 2019).
further, the target will be set for the taking care of children as well who are not having
any family or person. This is particularly because of the reason that there are also many
children who do not have any family and because of this the care home will also take care
of children who are not having any support.
2.2a Describe your perceived competitive advantage/USP:
The perceived advantage which the takeover will be providing is that the use of tele-
coaching will result in a competitive advantage. The reason underlying this fact is that
use of latest technology will be providing better outcome and patient will be take care in
proper manner (Ling and et.al., 2018). Hence, this will be resulting in better and effective
working and advantage will be gained because of this takeover.

Section TWO B
Marketing (approx.300 words)
2.3b Explain your market research with references,
Currently within the environment many elder people are facing the issues in staying with
their children as all are working. Hence, with this it was seen that taking over of
government residential care home will be beneficial (Daly, 2020). Also the competition
within the care sector is very high and this can affect the working of the company to a
great extent.

2.4b Competitor analysis
(Based on your market research, analyse two key competitors and explain
how your business will compete with them) (You may consider a SWOT
here)
Basis Our company Notaro Homes Larchwood care
price The company
undertake the use
of competitive
pricing in order to
charge from patient
(Lotty, 2019).
The company uses
penetration pricing
to get deep into the
market
The company
implement price
skimming method
Promotion This is undertaking
the use of
combination of
modern and
traditional
marketing
It implements only
modern marketing
strategies
The company
employs both
strategies but
focuses more on
social media
marketing

2.5b Marketing strategy
(describe your marketing strategy, with reference to researched
materials. Identify the most appropriate strategies, (You may consider a
4 or 7ps etc. )
Element Description
Product In the current environment there are many
elder people who are not having place to
live and because of this the product
involve providing the service of care to
elder people and for children as well.
Price The pricing is being defined as the amount
charged for the services provided to the
patient. For this, the company undertakes
the use of competitive pricing strategy
(Foote, 2022). This is particularly because
of the reason that it will provide the
knowledge that what price are being set
by other competitors.
Place The place is the areas or the way the
services will be provided to the consumers
or the service users. In the current case
the use of physical presence.
Promotion The promotion further involves the fact
that the services of residential care home
must be communicated to other people as
well (Roberts, 2021). hence, for this the
use of digital and traditional marketing
techniques will be undertaken.

Section Three A
Operations and logistics (approx.150 words)
3.1a Premises and location.:
the premise and location selected will be in the centre of area so that people can
easily approach to avail the services.
3.2 Equipment & Set up Costs and suppliers:
Product Supplier Cost.
Advance
Rent/deposit
1500
Tele- coaching
equipment
2000
Increasing the
number of beds
2550
Research and
development
1250
Information
technology
1000
Total 8300
3.2a Transport needs:
the transport need of the company is less as there is not any production being
taking place which need to be shifted from one place to another. Moreover, in this the
transportation might involve getting the person from one place to another and providing
them with good treatment.
3.2a Legal requirements:
Partnership Agreement etc.
The legal requirement involves the undertaking of leasing agreement which can also be
termed as partnering with the government residential home. This is particularly because
of the reason that it involves the taking over of the other government care home and the
requirement will be of leasing.
3.2a Insurance requirements:
Business Insurance etc.
The company operates in taking care of elder people and because of this there is
requirement for them to have some insurance as well. This is necessary for the reason
that when there will be insurance then in some case of any contingency the money can
be reimbursed. Thus, for this company must use business insurance.
3.2a Other Required Certifications:
3.3 Fixed monthly Costs as per cash flow:
Items Costs
Salaries 2000

Rent. 550
Rates 125
Staff Wages. 1555
Utilities/Gas/Elec 200
Phones. 350
Total 4780

Section Three B
Costs and pricing strategy (approx.150 words)
Product/service name ( Select a single unit) Tele- coaching
Cost to your business per unit 300
Price you charge per unit 350
Profit margin (£) 50
Profit margin (%)
(Profit / Price x 100 = Profit margin)
14.29%
Mark up (%)
(Profit / Cost x 100 = Mark Up) 16.67%
3.4b Your Pricing Strategy:
The pricing strategy involves the competitive pricing because it provides a base that how other competitor is pricing its services.
Section Three C

Cash Flow forecasts (approx.150 words)
3.5c Realistic cash flow Sales and costs forecast, including next 3 years’ projections, assuming you’ve received the start-up fund’s
you’ve requested. (Please edit to suit your need)
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
CASH IN:
OP cash 3535 3552.
7
3570.
4
3588.
3
3606.
2
3624.
3
3642.
4
3660.
6
3678.
9
3697.
3
3715.780
37
39871.85
37
Sales 1000
0 10050 1010
0
1015
1
1020
2
1025
3
1030
4
1035
5
1040
7
1045
9
1051
1
10563.95
83
123355.6
24
Loan 5525 5552.
63
5580.
4
5608.
3
5636.
3
5664.
5
5692.
8
5721.
3
5749.
9
5778.
7
5807.
5
5836.586
98
68153.98
21
Owner’s
money 3555 3572.
78
3590.
6
3608.
6
3626.
6
3644.
8 3663 3681.
3
3699.
7
3718.
2
3736.
8
3755.487
19
43852.92
42
Other
investment 1050 1055.
25
1060.
5
1065.
8
1071.
2
1076.
5
1081.
9
1087.
3
1092.
7
1098.
2
1103.
7
1109.215
62
12952.34
05
Total Cash
In
2013
0
20230
.7
2033
2
2043
3
2053
6
2063
8
2074
1
2084
5
2094
9
2105
4
2115
9
21265.24
81
248314.8
71
CASH OUT:

Set-up
Costs (per
3.2)
8300 8341.
5
8383.
2
8425.
1
8467.
2
8509.
6
8552.
1
8594.
9
8637.
9
8681.
1
8724.
5
8768.085
41
102385.1
68
Variable
Costs:
Materials. 2315 2326.
58
2338.
2
2349.
9
2361.
6
2373.
5
2385.
3
2397.
3
2409.
2
2421.
3
2433.
4
2445.556
35
28556.82
69
Direct labour 1050 1055.
25
1060.
5
1065.
8
1071.
2
1076.
5
1081.
9
1087.
3
1092.
7
1098.
2
1103.
7
1109.215
62
12952.34
05
Fixed Costs:
Salaries 2000 2010 2020.
1
2030.
2
2040.
3
2050.
5
2060.
8
2071.
1
2081.
4
2091.
8
2102.
3
2112.791
67
24671.12
47
Rent. 550 552.7
5
555.5
1
558.2
9
561.0
8
563.8
9
566.7
1
569.5
4
572.3
9
575.2
5
578.1
3
581.0177
08
6784.559
31
Rates 125 125.6
25
126.2
5
126.8
8
127.5
2
128.1
6 128.8 129.4
4
130.0
9
130.7
4
131.3
9
132.0494
79
1541.945
3
Staff Wages. 1555 1562.
78
1570.
6
1578.
4
1586.
3
1594.
3
1602.
2
1610.
2
1618.
3
1626.
4
1634.
5
1642.695
52
19181.79
95
Utilities/Gas/
Elec 200 201 202.0
1
203.0
2
204.0
3
205.0
5
206.0
8
207.1
1
208.1
4
209.1
8
210.2
3
211.2791
67
2467.112
47
Phones. 350 351.7
5
353.5
1
355.2
8
357.0
5
358.8
4
360.6
3
362.4
4
364.2
5
366.0
7 367.9 369.7385
41
4317.446
83
Stationary. 50 50.25 50.50
1
50.75
4
51.00
8
51.26
3
51.51
9
51.77
6
52.03
5
52.29
6
52.55
7
52.81979
16
616.7781
19
Interest on
loan. 100 100.5 101 101.5
1
102.0
2
102.5
3
103.0
4
103.5
5
104.0
7
104.5
9
105.1
1
105.6395
83
1233.556
24

Total Cash
Out
1659
5 16678 1676
1
1684
5
1692
9
1701
4
1709
9
1718
5
1727
1
1735
7
1744
4
17530.88
88
204708.6
58
Net Cash
In/(Out) 3535 3552.
68
3570.
4
3588.
3
3606.
2
3624.
3
3642.
4
3660.
6
3678.
9
3697.
3
3715.
8
3734.359
27
43606.21
3
Opening
cash
balance
Closing cash
balance 3535 3552.
68
3570.
4
3588.
3
3606.
2
3624.
3
3642.
4
3660.
6
3678.
9
3697.
3
3715.
8
3734.359
27
43606.21
3
3.5.1 C: Three-year projections, annual proposed sales and Net profit only
Year 1 Year 2 Year 3
CASH IN:
OP cash 39871.85
37
41865.44
64
43958.7187
3
Sales 123355.6
24
129523.4
05
135999.575
2

Loan 68153.98
21
71561.68
12
75139.7652
8
Owner’s
money
43852.92
42
46045.57
04
48347.8489
7
Other
investment
12952.34
05
13599.95
75
14279.9553
9
Total Cash
In
248314.8
71
260730.6
14
273767.144
8
CASH OUT:
Set-up
Costs (per
3.2)
102385.1
68
107504.4
26
112879.647
4
Variable
Costs:
Materials. 28556.82
69
29984.66
82
31483.9016
5
Direct labour 12952.34
05
13599.95
75
14279.9553
9
Fixed Costs:

Salaries 24671.12
47
25904.68
1
27199.9150
3
Rent. 6784.559
31
7123.787
27
7479.97663
4
Rates 1541.945
3
1619.042
56 1699.99469
Staff Wages. 19181.79
95
20140.88
95
21147.9339
4
Utilities/Gas/
Elec
2467.112
47
2590.468
1
2719.99150
3
Phones. 4317.446
83
4533.319
17
4759.98513
1
Stationary. 616.7781
19
647.6170
25
679.997875
8
Interest on
loan.
1233.556
24
1295.234
05
1359.99575
2
Total Cash
Out
204708.6
58
214944.0
9 225691.295
Net Cash
In/(Out)
43606.21
3
45786.52
36
48075.8498
2
Opening
cash
balance

Closing cash
balance
43606.21
3
45786.52
36
48075.8498
2
3.5.2 C: Notes and assumptions to cash flow and projections:
It is assumed that the income and cost will be increasing by 5 % for every next year.
Conclusion:
In the end, it is concluded that the idea of taking over the government residential care home is a good idea to develop. The
reason underlying this fact is that when the care of elderly people and children will be increased then it will be more profitable.
Moreover, it was inferred that use of competitive pricing strategy is assistive in making proper working and managing operations
of company.

References
Brown, D., 2018. Business models for residential retrofit in the UK: a critical assessment of five key
archetypes. Energy Efficiency. 11(6). pp.1497-1517.
Daly, M., 2020. COVID‐19 and care homes in England: What happened and why?. Social Policy &
Administration. 54(7). pp.985-998.
Foote, W.L., 2022. Risky business: Impact of outcomes-based contracting on nongovernment out-of-
home-care services. Children and Youth Services Review, p.106394.
Gilissen, J., Pivodic, L., Unroe, K.T. and Van den Block, L., 2020. International COVID-19 palliative
care guidance for nursing homes leaves key themes unaddressed. Journal of pain and symptom
management. 60(2). pp.e56-e69.
Horton, A., 2022. Financialization and non-disposable women: Real estate, debt and labour in UK care
homes. Environment and Planning A: Economy and Space. 54(1). pp.144-159.
Inns, T., Clough, H.E., Harris, J.P., Vivancos, R., Adams, N. and O’Brien, S.J., 2019. Estimating the
burden of care home gastroenteritis outbreaks in England, 2014–2016. BMC infectious
diseases. 19(1). pp.1-8.
Ling, R., Searles, A., Hewitt, J., Considine, R., Turner, C., Thomas, S., Thomas, K., Drinkwater, K.,
Higgins, I., Best, K. and Conway, J., 2018. Cost analysis of an integrated aged care program for
residential aged care facilities. Australian Health Review. 43(3). pp.261-267.
Lotty, M., 2019. Fostering stability through ‘Fostering Connections: the Trauma-informed Foster Care
Programme’. Foster. 7. pp.58-69.
Roberts, P., 2021. Are residential care homes really bad for children? Voices of alumni of residential
child and youth care in Trinidad and Tobago. International Social Work, p.00208728211031975.

Appendix