Blue Ribbon Community Care

     

     

ID Number:
Section One
Scenario: A: B: C:

Business Overview

1.1 Business summary: Please write business outline. (who, what, where, When and how)

Blue Ribbon community care is a vibrant and independent home care agency providing personalized

or individualized and residential care and support services to the elderly across the UK at the comfort of

their homes. Home care services vary based on the needs of the clients given that the needs vary regarding

the age of the clients. The agency offers services to people and communities throughout England, and has a

wealth of expertise to draw from since the directors come from an experienced care background. Therefore,

quality assurance has been the mission and goal of the agency right from its establishment.

1.2 Describe your core product or service:

Blue Ribbon community care provides a variety of services to its clients.

The people the agency care for include:

 Elderly people in need of help especially of going to bed or getting up in the morning.

 Couples who need assistance for their partners for example keeping on top of household chores.

 Clients with physical disability and require necessary assistance.

 People having higher levels of care needs but not wishing to go into residential care.

Other services by the agency are;

 Rehabilitation – Offer assistance with domestic and independence skills.

 Respite care – Provide relief care for primary carer, which comprise of providing company for about

an hour or two.

 Community support services – Assistance with accessing educational facilities such as Adult

Education Centres alongside leisure activities for example cinema, sports, library, theatre, Art and

music.

1.3 Your immediate and future business aims:

 Blue Ribbon community care understands the challenges faced by people who are in need of home

care. The home care is committed and dedicated to provide personal home care services not compromising

the client’s independence. The immediate aim is to help clients or patients continue leading their life the way

they always have before.

Future aims include:

 Enhance live in care.

 Provide exemplary independent health and social care provider.

 Provide services with absolute safety, value and quality while involving the people using the services

to maintain a comfortable independence level.

1.4 Please state the amount of seed capital required and partner investment: (Up to a maximum of
£40,000)

Blue Ribbon aims at taking over the management and leasing of a local authority residential care home,

which would total to a seed capital of £40,000. The nursing home is a government – owned property having

50 bed residential nursing home. Currently, the residential care home has about 21 residents following the

outbreak of COVID-19 pandemic. With the £40,000, Blue Ribbon community care agency would be able to

provide the necessary services such as staff members to provide basic and necessary services to the 21

service users. The partner investment totals to £10,000, which would cater for various services in the home

care.

Section Two
Management structure.

2.1 Professional team skills: (Outline individual team members transferrable and professional skills as per your current
CVs only).

 Communication skills – The team or staff has the ability to communicate in an efficient and clear

way.

 Responsibility – The staff or caregivers understand the work they are responsible for and be

accountable.
  Active listening – The staff members have empathy for teammates and allow one to better

understand their feelings and motives.

 Active listening – Active listening helps the team to learn, understand and trust each other.

 Awareness – The ability to be aware of the team and know or understand the needs of the clients.

2.2 Each team member’s roles and responsibilities:

The caregiver roles and responsibilities include:

 Care planning and home management.

 Medical advocacy.

 Management of prescription medication.

 Help with personal care and hygiene.

 Help with mobility and transportation.

 Housekeeping and home maintenance.

2.3. Identify your company’s skill gaps, then chose one role and create an advert with the skills
required and their roles and responsibilities.
     
By taking over the management and leasing of the local authority residential care home, there will be

need for some teamwork skills or staff to provide the 21 service users with the necessary skills. In this case,

Blue Ribbon community care skill gaps are such as attention to detail, critical thinking/problem solving, and

technology skill gap. The issue of technology would be based on the aspect that today internet has become

an essential aspect in any dealing and Skills for Care reports that about 95% of services users are aware of

the digital technology. It is important that the staff members are equipped with the current technology to

understand the service users in depth.

Section Three
The market/customer profile.

3.1 Describe your target market profile and where are your proposed customers based:
     
The target market for social and care home agencies includes families, patients, communities,

medical personal, hospital staff, and doctors:

The main target are the Patients:

 Age Range – Above 50 years

 Gender – Both male and female

 Regionality – United Kingdom citizens, however the agency has extended services for people from

other regions.

 Health status – Mental/dementia /depression.

3.2 Describe your perceived competitive advantage/USP:

Blue Ribbon community care has gained a competitive advantage in creating a story around its

services. For example, the company share with clients and community the reason the staff members decided

to choose them instead of other home care agencies, the clients often feel more connected emotionally to the

brand. The other competitive advantage is that the company provides super call-in service, cancer care,

companionship, domestic services and has become high dependency care in the industry.

     
     
Section Four
Marketing

4.1 Explain your market research with references, Using primary and secondary research.
Provide a questionnaire with 5 suitable questions and state the objective of said questions.
The questionnaires that would help in doing an adequate research are as follows;

 What is the U.K home care market size?

 What has been the trend in market size for the past 5 years?

 Who are the key competitors?

 What is the market segmentation?

 What are the key market drivers?

In doing a market research it is important to understand in detail the market parameters and trends. For

instance, the UK market size for home and social care services is estimated at $1,192.6 million back in 2018

and by 2026, it is projected to reach $1,551.7 million. For the past 5 years the market and industry have

experienced a rising trend from 2015.

Figure 1: The United Kingdom home care market size 2015 -2026 (US$ million)
4.2 Competitor analysis

The home and residential care industry is more competitive and the market has grown significantly.

The key competitors in the industry and market include Baxters Homecare Ltd., Respectful Care-Mansfield

and Ashfield, and Evercare (Hillingdon). However, Blue Ribbon having adequate staff members committed

and determined to provide quality services, the agency has gained a competitive advantage over the other

home care agencies in the United Kingdom.

4.3 Marketing strategy

In such a competitive market and industry, it is important to have the best and appropriate marketing

strategy or approach. The market strategies to use to build the brand and company profile are such as

maintaining stringer social media presence. Several agencies use Facebook as the marketing platforms but

often neglect other social media platforms such as LinkedIn, Instagram, Twitter and Google +. Blue Ribbon

to beat the increasing rivalry or competition in the industry and market will have to use Facebook,

Instagram, Twitter and most important LinkedIn. Most marketers have not come to understand how

Instagram work as a marketing tool not knowing that it can generate a wider customer base than any other

platform. Even though Facebook has been in existence for several years, it depends with the target market.

The target market dictates what type of platform to use in marketing. For instance, Twitter and Facebook

would be appropriate for Blue Ribbon community care.

The other best marketing strategy to be used by Blue Ribbon community care is the consistency in

publishing blogs on their websites. The blogging provides the agency with the chance of driving traffic to its

respective website. By using blogs, it is important to research the most relevant keywords or posts that

relates with the services the agency provides. Through this, the agency will have a huge number of traffic

thus increase in clients. In addition to blogs, the agency would prefer investing in Google AdWords. Google

has become a top channel for clients and customers to connect with agencies, and has been a way of

ensuring that the agency is seen by potential customers or clients.

4.3b. How and where will you launch your product or service.
The launch for the services will happen at the residential premises given that there is no plan to relocate the

home care. Therefore, this will reduce the expense of launching or introducing the facility into the market.
Section Five
Operations and logistics

5.1 Premises and location.:

     
The property and equipment are all in good state of repair and all the rooms have been refitted and decorated in

the last six months; therefore, there is no need for relocation of the facility to a given destination. However,

there will be only some changes when it comes to expanding the premises to accommodate more than the

current 21 service users.

5.2 Equipment & Set up Costs and suppliers:

Product Supplier Cost

Advance Rent/deposit Savings Account and Grants £5,000
Computer and Apple Inc. Ltd/HP company £15,000
hardware
Repairs and Paintings Paints and Repairs Company £6,000
Marketing and Digital Signage Menu Board £2,000
advertising materials
Insurance and licensing Insurewithcare company £4,500
Training expenses Training Institute £5,700
Total Cost £38,200

5.3 Transport needs:

The suppliers provide delivery services at discounted costs. Therefore, the company will rely much on the
suppliers’ delivery services. The delivery services will approximately cost £1,000
5.4 Legal requirements:
 Partnership agreement.

 Tax liabilities.

 Insurance cover or agreements.

 Patents, trademark and copyrights.

5.5 Insurance requirements:

 Business insurance

o Professional liability insurance.

o Property insurance.

o Business interruption insurance.

 o Vehicle insurance.

5.6 Other required Certifications:

 ANCC certification.

 Equipped with the necessary equipment and facilities.

5.7 Fixed monthly Costs as per cash flow:

Items Costs
Rent £5,000
Salaries for caregivers £50,000
Facility repairs £3,000
Food services £3,000
Healthcare services £3,500
Section Six
Costs and pricing strategy

Product/service name (Select a single unit) Home care services

Cost to your business per unit £4,000/month
Price you charge per unit £16/hour
Profit margin (£) £270,000
Profit margin (%)
(£270,000/35,000) x 100 = 7.7%
(Profit / Price x 100 = Profit margin)
Mark up (%)
(£270,000/30,000) x 100 = 9%
(Profit / Cost x 100 = Mark Up)

6.b Your Pricing Strategy:

The best pricing strategy or approach to use for the home care facility is the price scheming strategy. The strategy or approach work best during the

introductory face of services and products. Penetration pricing strategy is another best strategy to use in this stage because the services are already existing in

the market. It involves setting the prices of the services or products below the market price to attract more clients and customers. The two pricing strategies are

effective and most important especially when it comes to home and social care services, because a number of aging populations require these services.

Section Seven
Cash Flow forecasts
7.1 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 Marc Apri May June July August Sept Oct Nov Dec Total YR2 YR3 Yr4
h l
Sales 1:

Loan £40,000 - - - - - - - - - - - £40,00 - - -

0
Investment. £20,000 £10, £15,0 £17, £18, £60,0 £25,0 £18,00 £20,0 £30, £35, £40,0 £308,0 £300, £250,0 £200,000
000 00 000 000 00 00 0 00 000 000 00 00 000 00
Total Sales: £300,000 £125 £150, £175 £200 £225, £230, £300,0 £380, £390 £380 £370, £5,025, £3,12 £3,250, £3,500,000
,000 000 ,000 ,000 000 000 00 000 ,000 ,000 000 000 5,000 000

SET UP COSTS £80,000 - - - - - - - - - - - £80,00 £0 £0 £0

TOTAL 0
Direct Costs:
Materials. £10,000 - - - - £20,0 - - - - - £30,0 £60,00 - - -
00 00 0
Stock. £50,000 - £15,0 - - - - - - - £20, £85,00 - £80,00 £80,000
00 000 0 0
Additional Staffing £15,000 £15,00 £25,0 £25,00 £25,000
0 00 0
TOTAL Direct £75,000 - £15,0 £20, £110,0 £115, £125,0 £125,000
Costs: 00 000 00 000 00

Fixed Costs:
Salaries 1 £50,000 £50, £50,0 £50, £50, £50,0 £55,0 £57,00 £57,0 £57, £57, £60,0 £643,0 £643, £643,0 £650,000
000 00 000 000 00 00 0 00 000 000 00 00 000 00
Rent. £5,000 £5,0 £5,00 £5,0 £5,0 £5,00 £5,00 £5,000 £5,00 £5,0 £5,0 £5,00 £60,00 £60,0 £60,00 £60,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Rates £8,000 £8,0 £8,00 £8,0 £8,0 £8,00 £7,50 £7,500 £7,50 £7,5 £6,5 £6,50 £91,00 £90,5 £90,00 £97,500
00 0 00 00 0 0 0 00 00 0 0 00 0
Staff Wages. £10,000 £10, £10,0 £10, £10, £10,0 £10,0 £10,00 £10,0 £10, £10, £10,0 £120,0 £125, £125,0 £125,000
000 00 000 000 00 00 0 00 000 000 00 00 000 00
Utilities/Gas/Elec £5,000 £5,0 £5,00 £5,0 £5,0 £5,00 £4,00 £4,000 £5,00 £5,0 £5,0 £5,00 £53,00 £53,0 £53,00 £53,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Phones. £3,400 £3,0 £3,00 £3,0 £3,0 £3,00 £3,00 £3,000 £3,00 £3,0 £3,0 £3,00 £36,00 £36,0 £36,00 £36,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Freight & Postage £2,560 £2,5 £2,50 £2,5 £2,5 £2,50 £2,50 £2,500 £2,50 £2,5 £2,5 £2,50 £30,06
00 0 00 00 0 0 0 00 00 0 0
Stationary. £1,000 £1,0 £1,00 £1,0 £1,0 £1,00 £1,00 £1,000 £1,00 £1,0 £1,0 £1,00 £12,00 £12,0 £12,00 £12,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Promotion & Ad. £1,000 £1,0 £1,00 £900 £900 £900 £900 £900 £900 £900 £900 £900 £8,400 £8,40 £8,400 £8,400
00 0 0
Website. £1,000 £1,0 £1,00 £1,0 £1,0 £1,00 £1,00 £1,000 £1,00 £1,0 £1,0 £1,00 £12,00 £36,0 £36,00 £36,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Accountant £3,000 £3,0 £3,00 £3,0 £3,0 £3,00 £3,00 £3,000 £3,00 £3,0 £3,0 £3,00 £36,00 £36,0 £36,00 £36,000
00 0 00 00 0 0 0 00 00 0 0 00 0
Legal £1,640 £1,6 £1,64 £1,6 £1,6 £1,64 £1,64 £1,640 £1,64 £1,6 £1,6 £1,64 £19,68 £19,6 £19,68 £19,680
40 0 40 40 0 0 0 0 40 40 0 0 80 0
Transport £3,000 £3,0 £3,00 £3,0 £3,3 £3,50 £3,60 £2,500 £3,50 £3,0 £3,0 £3,00 £37,45 £37,4 £37,45 £37,450
00 0 00 00 0 0 0 50 00 0 0 50 0
Vehicles £25,000 £25, £25,0 £25, £25, £25,0 £25,0 £25,00 £25,0 £25, £25, £25,0 £300,0 £300, £300,0 £300,000
000 00 000 000 00 00 0 00 000 000 00 00 000 00
Insurance £7,500
Maintenance £2,500 - - £2,5 - - - £2,500 - - - £2,50 £10,00 £10,0 £10,00 £10,000
00 0 0 00 0
Computers. £14,000 - - - - - - - - - - - £14,00 £10,0 £10,00 £10,000
0 00 0
Misc. £800 - - - - - - - - - - - £800
Loan repayment. £5,000 £5,0 £5,00 £5,0 £5,0 £5,00 £5,00 £5,000 - - - - £40,00 - - -
00 0 00 00 0 0 0
Interest on loan. £400 £400 £400 £400 £400 £400 £400 £400 - - - - £3,200 - - -
TOTAL: £149,800
Sub Total: Fix + £224,000
Direct Costs.

Net Profit: Sales – Sub £76,000

total
7.1: Three-year projections, annual proposed sales and Net profit only

From the financial statement or cash flow above, the agency is likely to make profit for the next three years, given that the management stick to the variables.
The agency will be making profit or a profit margin of 7%, which means the agency will be getting extra cost from the sale of a single unit service. It is the
belief of everyone that after the COVID-19 pandemic things need to be normal. However, as an agency that has also been impacted there are plans to increase
the number of facilities to help in the near future in case such an event takes place. There is need for an emergency preparedness.

7.2 Notes and assumptions to cash flow and projections:

The assumptions are such as;

 The expenses will be constant throughout the years.
 The number of employees or staff will not increase throughout the year.
Conclusion:
From the above business plan, the Blue-Ribbon community care agency with the £40,000 plus the owner capital of £40,000 totalling to £80,000 will be
adequate for the takeover. The agency will not relocate from the current premises because it was just repaired by the current owners so that is an added
advantage. Moreover, the retained 60% of the staff members from the residential home will be retained after the takeover, which is also an added advantage to
the acquirer.
References/Bibliography
Chandrashekar, P., Moodley, S., & Jain, S. (2019, October 17). 5 obstacles to home-based health care, and

how to overcome them. Harvard Business Review. https://hbr.org/2019/10/5-obstacles-to-home-based-

health-care-and-how-to-overcome-them

Clarkson, P., Hughes, J., & Challis, D. (2015). The potential impact of changes in public funding for residential

and nursing-home care in the United Kingdom: The residential allowance. Ageing and society, 25, 159.

England, K. (2010). Home, work and the shifting geographies of care. Ethics, Place and Environment,  13(2),

131-150.

Genet, N., Boerma, W. G., Kringos, D. S., Bouman, A., Francke, A. L., Fagerström, C., ... & Devillé, W.

(2011). Home care in Europe: a systematic literature review. BMC health services research, 11(1), 1-

14.

Swanson, D. (2019, February 21). 11 unique skills you need to become a caregiver. Looking for Senior Home

Care? | Caring Senior Service. https://www.caringseniorservice.com/blog/unique-skills-to-become-a-

caregiver

Roland, M., Guthrie, B., & Thomé, D. C. (2020). Primary medical care in the United Kingdom. The Journal of

the American Board of Family Medicine, 25(Suppl 1), S6-S11.

 Appendix
Appendices #1: Cost and Pricing Strategy
Product/service name (Select a single unit) Home care services
Cost to your business per unit £4,000/month
Price you charge per unit £16/hour
Profit margin (£) £270,000
Profit margin (%)
(£270,000/35,000) x 100 = 7.7%
(Profit / Price x 100 = Profit margin)
Mark up (%)
(£270,000/30,000) x 100 = 9%
(Profit / Cost x 100 = Mark Up)

Appendices #2: Equipment Cost

Product Supplier Cost
Advance Rent/deposit Savings Account and Grants £5,000
Computer and Apple Inc. Ltd/HP company £15,000
hardware
Repairs and Paintings Paints and Repairs Company £6,000
Marketing and Digital Signage Menu Board £2,000
advertising materials
Insurance and licensing Insurewithcare company £4,500
Training expenses Training Institute £5,700
Total Cost £38,200