ABC Home Care, LLC Jane Doe CEO/Administrative Director ABC Home Care, LLC 123 Your Address Your Town, Ohio 44444 216.123.4567 [email protected] Prepared October 2012 ABC Home Care, LLC Table of Contents Executive Summary.............................................................................................................................. 2 Business Vision and Description .........................................................................................................5 Organization and Management ...........................................................................................................7 Services ............................................................................................................................................... 10 Market Overview .................................................................................................................................12 Marketing and Sales Strategy ...........................................................................................................20 Financial Management ....................................................................................................................... 24 Appendix A: Financial Management Plan............................................................................................. 1 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Executive Summary ABC Home Care, LLC (ABC) is a home care and geriatric services agency based in Cuyahoga County, Ohio. The company is registered as a limited liability company in Ohio and will cater to individuals, families and health care facilities seeking assistance from local home care providers. Our service model is based on responsive care tailored to the specific needs of our clients. We will work toward offering a range of services to help older adults and individuals with chronic diseases and disabilities maintain a comfortable lifestyle (as defined by our clients) despite their age or health status. The ABC Difference Owner Jane Doe has no interest in establishing just another home care agency. After serving as primary caregiver for her father, she promised that she would do whatever she could to help others obtain premier home care services tailored to their needs. Studies show that home care is more effective than treatment received in nursing homes or hospitals. 1 At ABC, we want our clients to relax knowing they can receive affordable, custom care without leaving their homes. In addition to our passion for caring for others, our agency’s competitive edge lies in our specialized geriatric care services. Market research indicates a strong need exists in the region for this type of care. Market Outlook As the baby-boom population ages and the elderly population expands, the demand for home care aides to provide assistance and companionship will continue to rise. 2 Elderly individuals often have health problems and need assistance with daily activities. The U.S. senior and disabled population increasingly relies on home care as a less expensive alternative to nursing Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition, Home Health and Personal Care Aides. Retrieved October 9, 2012 from http://www.bls.gov/ooh/healthcare/home-health-and-personal-care-aides.htm 1 Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition, Home Health and Personal Care Aides. Retrieved October 9, 2012 from http://www.bls.gov/ooh/healthcare/home-health-and-personal-care-aides.htm. 2 2 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC homes or hospitals. Those who require help with daily tasks and household chores, rather than medical care, can significantly reduce their medical expenses by returning home. According to the U.S. Census Bureau, 15.6 percent of Cuyahoga County’s residents are 65 or older, compared to the statewide average of 14.3 percent. 3 ABC’s primary goal is to address the needs of the county’s older population. We are confident that by offering premier care delivered by competent, passionate and well-educated staff, we can become a leading home care and geriatric service provider in Cuyahoga County. At this time, ABC will focus on private pay consumers. For geriatric care, we will target households earning $75,000 or more annually. Geriatric care aims to promote health by managing and treating diseases and disabilities in older adults. There is no established age at which individuals may need geriatric services; the individual’s health determines the need for care. However, adults 65 years of age and older are more likely to require this type of care than individuals in other age groups. Financial Summary ABC is a start-up business with significant potential to capitalize on the home care industry’s anticipated growth. Please refer to Appendix A for details about the agency’s financial plan. Objectives According to IBISWorld, the aging population and increased number of individuals coping with chronic diseases and disabilities will aid in the growth of the home care sector. In 2012 alone, industry revenue was expected to increase by 3.6 percent, rising to $69.8 billion. 4 Because service is localized, there are no companies with a dominant market share in this sector. To obtain a portion of the market share in Cuyahoga County, we strive to: Begin accepting clients in February 2013. Hire one administrative assistant and three home care aides by the First Quarter of 2013. Service 100 clients by February 2014. U.S. Census Bureau, 2010 Census. Retrieved October 10, 2012 from http://2010.census.gov/2010census/popmap/ipmtext.php?fl=39. 3 IBISWorld, Home Care Providers in the US: Market Research Report. Retrieved October 9, 2012 from http://www.ibisworld.com/industry/default.aspx?indid=1579 4 3 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Launch geriatric care management offering by February 2015. In addition, we also have established the following long-term goals: Establish the agency’s brand as a leading home care services provider in Cuyahoga County, Ohio. Recruit, train and retain skilled and talented staff members. Receive ongoing client referrals by building strong relationships with health care professionals in the community, i.e. physicians, discharge planners, etc. Keys to Success To achieve the objectives identified above, we must effectively promote our core keys to success, which include: Responsive, personal home care On-call availability and reliable caregivers Specialized geriatric services for the county’s aging population Well-educated and responsive management team Effective collaboration with other health care professionals in the community, i.e. physicians, discharge planners, etc. 4 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Business Vision and Description ABC was registered as a limited liability company in the state of Ohio in January 2012. The agency focuses on providing home care and geriatric services in Cuyahoga County. The agency is solely owned by Jane Doe and will strive to provide the highest quality home care services to individuals and families. The ABC office will be located in Beachwood, Ohio – a suburb situated on the east side of the Cuyahoga River with approximately 12,000 residents. Nearly 50 percent of Beachwood households earn $75,000 or more annually. “ABC strives to offer excellent and affordable home care and geriatric management services to elderly and impaired individuals and their families. It is our goal to employ competent, caring and well-trained individuals who are responsive to the needs of our clients, their families and the community.” We chose Beachwood as our office location because it sits at the heart of several affluent suburbs and is in close proximity to three of the region’s leading health care facilities. Beachwood is home to a Cleveland Clinic facility and is within approximately 10 miles of St. Vincent’s Hospital in Solon, Ohio and University Hospitals Health System in Bedford, Ohio. All three centers will serve as referral bases for our agency. We will focus our marketing efforts on individuals and families residing on the east side of the Cuyahoga River. It is our goal to interact with our target market directly as well as through referrals from health care facilities, senior organizations, etc. While we will primarily target locations within 10 miles of Beachwood, Ohio, we are willing to provide care in areas up to 25 miles outside of Beachwood. The following map provides a snapshot of the major suburbs located in our target region. As the agency grows, we will expand our target area to meet market demands. 5 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Figure 1: Map of Local Suburbs around Beachwood, Ohio 6 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Organization and Management Ms. Doe will serve as the agency’s CEO and Administrative Director. As CEO, she will manage the agency’s operations. Ms. Doe began her career in home care in 2011 as a home health aide for one of Cuyahoga County’s largest agencies. Her passion for providing in-home elderly personal services grew after caring for her ill father prior to his passing. Ms. Doe’s love for taking care of others is the driving force behind her business. She also offers extensive management experience and has supervised teams of approximately 50 employees. Ms. Doe holds a bachelor’s degree in business with a specialization in management and labor relations from Cleveland State University. She earned certification in 2011 as a home health aide from Med-Cert Training Center in Maple Heights, Ohio. Advisory Committee Ms. Doe has spent several years collaborating with other professional home care agencies and is currently working with one of the industry’s most experienced business consulting firms. She has future plans to build an advisory committee of experienced sales, marketing and health care professionals to ensure she has access to the knowledge necessary to build a sustainable home care business. Personnel Plan ABC will initially hire four staff members to manage the agency’s operations. Each hired staff member will meet the state of Ohio educational and training requirements. Additional recruiting will occur as the agency enters the expansion phase. Figure 2: Organizational Hierarchy CEO and Administrative Director Administrative Assistant (1) 7 Home Care Aides (3) Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Table 1: Personnel Plan Position No. of Employees CEO/ Administrative Director 1 Administrative Assistant 1 Home Care Aide 3 We have included below brief descriptions of initial roles and responsibilities within the agency. We will continuously review and update this personnel plan to ensure it meets the needs of the market. The Administrative Director will be responsible for planning, implementing, organizing, and developing in-home care services. This work includes, but is not limited to: operations administration, community/client education and staff supervision. This individual also will assume all social work services during the agency’s initial phase. As the need for social services expands, we will consider transferring these duties to a new position. As mentioned, Ms. Doe will assume the Administrative Director role temporarily. Her compensation will be distributed in the form of a draw and will not include payroll taxes, insurance costs, etc. The Administrative Assistant will perform routine clerical and organizational tasks. This individual will organize files, draft messages, schedule in-home care appointments and support other staff. The Administrative Assistant role is based on 30 hours per week at a rate of $12 per hour. Because this position carries less than full-time employment, no benefits will be available. However, we will offer up to four weeks of paid personal leave and 11 paid holidays. Home Care Aides will administer in-home client services. These individuals will assist with activities such as bathing and dressing, and will provide services such as light housekeeping, errand services, personal care and companionship. Home Care Aides will be paid at a rate of $10 per hour for hours worked. These individuals will not qualify for benefits and will receive pay for up to two weeks of personal leave and 5.5 holidays per year. 8 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Competitive Edge Our competitive edge lies in our ability to combine our home care offering with comprehensive geriatric care services. As part of our service model, we will provide customized, reliable care based on our clients’ needs. In addition, we will differentiate ABC from competitors by joining and actively participating in two of the industry’s top organizations – Caregiver Quality Assurance™ (CQA) and the National Private Duty Association (NPDA). CQA Program. CQA is the industry’s leading program for recruiting, hiring and retaining top caregivers. As a member, ABC will earn the program’s CQA Seal, which is quickly becoming the home care sector’s must-have quality control stamp of approval. We also will have access to the organization’s referral database. NPDA. The NPDA was founded in 2002, and is the first association in the United States for providers of private duty home care. The association represents approximately 1,200 member organizations and more than 250,000 employees throughout the country providing private pay in-home care services for the elderly and disabled. We will draw on this organization’s strong industry standing to brand ABC as a trusted home care and geriatric services agency. Additionally, we will gain the opportunity to list ABC in the NPDA’s directory of private duty home care agencies. Challenges One of the greatest challenges we face will be to create awareness in the local community. In addition, we will need to appropriately position our agency as a niche provider of geriatric services rather than just another home care services organization. With effective advertising and promotion, we can effectively inform the local public of this specialized service. Lastly, we must overcome the challenge of attracting enough clients to cover our business expenses. 9 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Services ABC will provide in-home care services at the onset of the agency’s launch. In 2015, we will launch our geriatric care management offering. Both services will be provided on a contractual basis. All services will be based on a pre-established, in-home care schedule or an on-call respite care model. The respite care model would include providing temporary, as-needed relief to family members who typically provide full-time care. ABC will thoroughly screen all home care aides and match caregivers to clients to ensure optimal service and compatibility. Home Care Services ABC will offer up to 24 hours of care for clients. We can accommodate overnight care requests as well as temporary respite care to relieve family members who serve as primary caregivers. Our goal is to provide the custom care that our clients desire and need. Our services will include: In-Home Services. We will assist clients with cooking, light-duty housekeeping and meal preparation. Personal Care and Companionship. We will assist clients with bathing, dressing, eating and other hygiene needs. We also will provide companionship for a range of activities including low-impact exercising, board games, etc. Errand Services. We will assist clients with grocery shopping and managing personal errands such as picking up prescriptions, home maintenance supplies and other personal care items. Geriatric Care Management In 2015, we will begin to hire experienced, certified geriatric care managers. To position ABC competitively in the market, we will focus on clients suffering from chronic obstructive disease, congestive heart failure, diabetes, depression and Alzheimer’s/dementia. Our services will include: Health and Disease Care Management. We will assist clients with managing their illnesses. 10 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Medical Transportation. We will transport clients to and from physician/clinic appointments, etc. Financial Management. We will assist clients with paying bills and managing finances. Advocacy and Consulting Services. We will advocate on behalf of our clients to receive community services, etc. We also will help clients manage guardianship and trust terms and guidelines. Our goal is to ensure clients receive the care needed to effectively manage their illnesses. We will collaborate with clients and their loved ones on coping with the effects of chronic diseases. In addition to our core geriatric care management services, we also will offer a referral program in which personal care services will be offered directly through ABC by contract or referral. 11 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Market Overview The U.S. private pay home care market is in the growth stage and is showing encouraging signs to those interested in investing in the sector. The NPDA predicts that the industry’s growth will continue as a result of the aging U.S. population. The nation’s 65-plus residents are expected to increase to 71.5 million between 2010 and 2030. 5 Although the private duty home care sector is still emerging, approximately 70 percent have been in business for five years or more.6 Market Gap As more of the nation’s population reach the golden years, the demand for home care services will grow. ABC will help address the market’s needs by offering home care and geriatric services tailored to the clients’ requirements. Our vast, yet focused service offering allows our target market to select companionship care and a wide range of other non-medical care services to assist with their daily activities. Target Market Our primary target market includes hospitals and health care facilities that employ discharge planners and other health care professionals who can provide client referrals. It is estimated that 75 percent of all home care referrals come from hospital discharges or physicians’ offices.7 Our target location is the region on the east side of the Cuyahoga River. By building a strong rapport with the local health care industry, we will position the agency to effectively market to individuals and families. ABC will target impaired individuals and their families who have a household income of $75,000 or more annually. While we will provide services to individuals and families across all income National Private Duty Association, Home Care Businesses Grow Despite Recession. Retrieved October 9, 2012 from http://www.prweb.com/releases/2009/06/prweb2491434.htm. 5 National Private Duty Association, Private Duty Home Care Industry Fact Sheet. Retrieved October 9, 2012 from http://www.privatedutyhomecare.org/downloads/NPDA-FactSheet.pdf. 6 Leading Home Care, Private Duty Today, Find Your Private Duty Home Care Niche. Retrieved October 9, 2012 from http://www.leadinghomecare.com/pdtoday/20051026.htm. 7 12 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC levels and age groups with a need for our services, market research indicates that members of this income bracket are more likely to have the discretionary income to cover the cost of premier home care and geriatric services. Health Care Facility and Professional Profile According to the 2007 Economic Census, 3,734 health care and social assistance establishments are located in Cuyahoga County, Ohio. Of this total, 197 establishments are based in or near Beachwood, Ohio. 8 We will target health care facilities in our region, including the area’s top hospitals and their affiliated physicians’ offices. Consumer Profile Because ABC will not accept reimbursement from Medicare or Medicaid, it is important that we target individuals and families that have the disposable income to cover the cost of our services. A study conducted by the NPDA indicates that home care is much more affordable when compared to nursing homes and assisted living facilities. The average annual cost for one nursing home resident is $69,715 and $36,372 for one assisted living resident. 9 Seniors who stay in their homes may only need a few hours of in-home care. For example, 20 hours of companionship care per week could cost approximately $1,500 a month or $18,000 annually. Household Income Our Beachwood, Ohio office is ideally situated to attract clients similar to those outlined in this consumer profile. The following table highlights the percentage of households earning $75,000 or more in Beachwood and Solon (a nearby suburb) compared to Cuyahoga County as a whole. U.S. Census Bureau, Health Care and Social Assistance, 2007 Economic Census. Retrieved October 9, 2012 from http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2007_US_62A1& prodType=table 8 National Private Duty Association, Private Duty Home Care Industry Fact Sheet. Retrieved October 9, 2012 from http://www.privatedutyhomecare.org/downloads/NPDA-FactSheet.pdf. 9 13 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Table 2: Comparison of Percentage of Households Earning $75,000 or More Solon Beachwood Cuyahoga County 62% 49% 25% Age Group Consumers of our private duty home care and geriatric services will be individuals 65 or older as well as families seeking care for relatives in this age group. According to the U.S. Census Bureau, 145,686 households in Cuyahoga County include one or more individuals 65 years or older. 10 Porter’s 5 Forces Analysis Below we use the Porter’s 5 Forces model to identify and analyze five competitive forces ABC faces in the home care industry. Figure 3: Porter’s 5 Forces Model Buyer Power Threat of Substitutes Competition and Rivalry Barriers to Entry Supplier Power U.S. Census Bureau, Households by Presence of People 65 Years and Older, 2011 American Community Survey. Retrieved October 9, 2012 from http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_11_1YR_B11007 &prodType=table. 10 14 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Competitive Rivalry (High) Strong competition exists; the majority of the market share is held by a few franchised and self owned agencies operating in the Cuyahoga County, Ohio area. These agencies include: Comfort Keepers Visiting Angels Visiting Nurse Association We will face significant competition from these organizations, especially as we move into our expansion phase. Bargaining Power of Customers (Medium) This is a key factor that can significantly affect our agency. Consumers and referring health care facilities have a large pool of private pay home care agencies from which to choose. Therefore, they will expect to obtain the best value service against not only cost, but also well-trained and educated staff. Bargaining Power of Suppliers (Low) In the private pay home care industry, this is not a significant factor. Home care agencies provide services and not goods/products. We will, however, need to purchase supplies and tools to provide effective and efficient care to clients. Threat of New Competitors (High) Because the market size is growing rapidly, the possibility of new competitors entering the industry is high. Threat of Substitute Products (High) One of the greatest factors in the Porter’s Five force model for private pay home care agencies is the threat of alternative services like nursing homes and assisted living facilities. These alternatives can seem attractive to impaired individuals and their families who seek quality care and are unfamiliar with the range of services offered by home care agencies. 15 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Competitive Analysis Below we identify three top competitors offering the same or similar home care services in our target region. Comfort Keepers. Comfort Keepers operates 55 independently owned, Ohio-based franchise locations. While Comfort Keepers provides senior care, the agency does have strict service territory limitations. As a privately owned agency, ABC has the flexibility to provide services at any location and among a more expansive market. Comfort Keepers’ listing of services overlap with those offered by ABC. Visiting Angels. Visiting Angels is a national network of agencies providing in-home health services and elderly care. While ABC does not have the national footprint and name recognition like Visiting Angels, we offer Cuyahoga County clients the convenience of custom in-home care solutions. As an independent agency, we have the flexibility to build on our core services and cater to our clients’ specific needs. Visiting Nurse Association. The Visiting Nurse Association is a national health care organization and a federally registered charity that was established in 1983. The organization offers a range of services beyond elderly care. While this does not lessen the organization’s position in the market, it does illustrate a key differentiator between services provided by the Visiting Nurse Association and ABC. Although senior care is not distinguished as a core service offering from the Visiting Nurse Association, the agency’s listing of services is similar to those provided by ABC. Although ABC is not yet a household name like the agencies listed above, we offer in-home care services at competitive rates. Also, unlike our three primary competitors, ABC is privately owned which gives us the flexibility to tailor our services to the needs of our clients without the worry of adhering to guidelines established by franchisors or larger corporations. 16 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC SWOT Analysis Below we rely on the SWOT analysis model to highlight ABC’s core strengths, weaknesses, opportunities and threats in the home care industry. Figure 4: SWOT Analysis Model Strengths Weaknesses Opportunities Threats Strengths Comprehensive Home Care and Geriatric Services. Our service model entails custom home care and geriatric services aimed at enabling staff to deliver reliable, responsive care. Experienced, Well-Trained Staff. Our staff members will undergo initial and continuing education and training programs required by the home care industry. Long Operational Hours. We will provide service during normal business hours and also will be available for on-call emergencies 24 hours, seven days a week. Affordable Cost with High Standards. Fees for all services are competitive. As members of the CQA and NPDA, we will be committed to providing high-quality care reflective of the type of service offered by our peer members. 17 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Weaknesses Lack of Brand Identity and Image. As a start-up business, we currently lack a brand identity and image. We will need adequate time to create awareness of our agency. Low Staffing Numbers. Professionals hired to manage the agency’s initial operations will be experienced, yet we may not have enough staff to effectively cover the needs of the market. This could cause slow growth of our operation, which management could not afford. Small Marketing Budget. A sizable marketing budget is required to get the most out of the agency’s initial launch. We anticipate needing a larger budget to make a substantial impact on the market. Opportunities Growing Market. The home care market is rapidly increasing which presents extensive opportunities for new agencies entering the sector. Aging Population. As the U.S. population continues to age, the demand for personal home care and companionship is expected to significantly increase. Affordability and Comfort. Home care services are less expensive than nursing homes and assisted living facilities. Studies show that most people would prefer to receive care in their own homes versus a facility or hospital. Expandable Business Model. Home care agencies have the ability to expand into other markets as consumer needs grow. While ABC plans to offer a core set of services initially, substantial opportunity exists for the agency to add more service offerings in the future. Threats Local Competition. Several local competitors have national, well-recognized and trusted brands. We face challenges positioning ABC as a viable alternative to these brands. 18 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Professional Staff. Recruiting, hiring and retaining quality, professional staff pose substantial risks. We will conduct extensive candidate research and background checks to eliminate some of the risks associated with employee recruitment and retention. Because studies predict patients will outnumber caregivers in the near future, we will need to position the agency as an attractive place to work with competitive and fair pay and benefits. Business Cash Flow and Funding. While the owner is using her personal cash flow to cover start-up expenses, continuing to maintain adequate cash flow and solicit funding from outside sources presents a challenge we must overcome to succeed. Regulatory Changes. Federal health care laws like the Affordable Health Care Act and changes to Medicare and Medicaid payments can greatly affect our agency. In addition, state home care aide certification laws also could impact our business. 19 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Marketing and Sales Strategy ABC will adopt a client-focused marketing strategy. We plan to capture market share by consistently communicating the value of our services. Over time, this strategy will lead us to become a recognized brand in the Cuyahoga County, Ohio market. We have selected services which we believe are most important to our target audience. However, we have adopted an analysis-focused business strategy to ensure we are kept abreast of industry trends and changing marketing needs. By continuously conducting market research, we will have the ability to quickly adapt to address the needs of our target region. The diagram below outlines our core value proposition – why consumers should buy our services. As we build our client base, we will document success stories and develop a more compelling value proposition. Figure 5: Core Value Proposition Professional, Caring Staff Affordability Value Proposition Broad Service Territory Custom Services 20 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Marketing Strategy Pricing Our pricing strategy is value-based. We have compiled extensive research and analysis from the target market and have set competitive prices based on the value of our services to the market. This strategy supports our mission to generate quick revenues. Our value-based pricing strategy also gives us an opportunity to not only attract clients, but also build brand loyalty. Place ABC services will be solely administered in our clients’ homes. We have found Beachwood, Ohio to be an ideal location for our administrative office. ABC’s administrative office will be located at: 123 Your Address Your Town, Ohio 44444 Promotions We will adopt a pull promotional strategy. We will motivate clients to actively seek out the ABC brand by employing a multi-dimensional marketing and promotion strategy. We will use both online and offline mediums to expand awareness of the ABC brand. Because we are targeting both consumers and health care facilities and professionals, we will focus on business-toconsumer and business-to-business channels. We will use this strategy to convince consumers to choose ABC and emphasize the responsiveness and professionalism of our in-home and geriatric services to health care facilities and professionals in our target region. We have included below various marketing tactics we will employ to build awareness of the ABC brand. Online Promotions 21 Website. We will develop an informative website and will include the website address in all online and offline marketing collateral. Press Releases. We will work with online press release distribution firms like PRWeb or others to generate awareness of our services by issuing press Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC releases to leading search engines and online news sites. Social Media Marketing. We will promote ABC on Facebook, Twitter, LinkedIn and other social media channels that may be frequented by our target market. All social sites will be used to generate a buzz about our services and build our agency’s image. The goal is solely to build connections with the health care industry and consumers and convince them to avail our services. E-mail Marketing. We will implement an e-mail marketing campaign to target local health care facilities and professionals that could provide client referrals to ABC. This tactic is not intended for our consumer market. E-mail Program. We will regularly distribute a newsletter to highlight new services, employees, agency certifications and home care industry news. We will be sure to include links to lure subscribers to visit our website for further information. Offline Promotions Cold Calls. We will develop a list of local health care facilities, senior organizations and social centers to cold call in an effort to gain client referrals. Brochures/Flyers. We will develop informational (postcard) brochures and flyers and distribute via a targeted direct mail campaign. Press Releases. We will share press releases highlighting news about our agency to print news outlets in our target area. Business Cards. We will distribute business cards in high-profile gatherings and share them indiscriminately to spread word of mouth regarding our services. Exhibitions. We will participate in health care industry trade shows and events hosted by senior organizations and other relevant industry events, workshops and seminars to generate buzz about ABC. Our initial marketing investment will be $10,000. Our marketing program will be funded on an ongoing basis by contributing a minimum of 2 percent of our gross sales toward promotional activities. We will regularly evaluate this plan to ensure our marketing mix and budget is adequate to achieve our aggressive business goals. 22 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Sales Strategy The sales strategy has been created to focus on ABC’s best attributes – professional, responsive, compassionate caregivers and service tailored to the needs of our clients. The key to building awareness about the ABC brand lies in our ability to demonstrate our agency’s competitive advantage and the personal side of our home care aides. In the home care industry, compassion, professionalism, trustworthiness, honesty and exceptional service sells. To achieve our goals, we must position ABC as an agency that consistently showcases all of these characteristics. 23 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author. ABC Home Care, LLC Financial Management ABC is in the launch phase and, consequently, will need adequate funds to manage start-up expenses and operating costs. Our research indicates exponential growth in the home care industry. Drawing from this and other positive factors discussed in our business plan, we are confident of our ability to competitively position ABC to capitalize on industry trends and build a successful home care and geriatric services agency. Please refer to Appendix A for information about our expenses, growth projections and overall financial management plan. 24 Copyright © 2013. BAAB Writing and Marketing Services LLC. All Rights Reserved. No part of this document may be reproduced or shared without express, written consent from the author.
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