If you are a nurse or a medical practitioner and you are tired of working for someone or the government, you should consider starting your own private nursing service.
Private nursing service is relatively easy to start, it requires moderate startup capital, and it is indeed one of the coolest ways to make money as a nurse especially if you are starting the business in The United States, Canada, and Europe or in Australia.
Below is a sample private duty nursing business plan template that can help you to write your own with little or no hassles.
Private Duty Nursing Business Plan
Table of Content
1. Industry Overview
Private duty nursing business is grouped under the Home Care Providers industry and players in this industry mainly provide services in the home. These services may be medical or nonmedical and include skilled-nursing care, personal care, homemaker and companion services, physical therapy and medical social services.
If you are a close observer of the Home Care Providers industry, you will quite agree that over the last five years, the industry growth has been nurtured by an aging US population, the occurrence of chronic disease, growing physician acceptance of home care, medical advancements and a movement toward cost-efficient treatment options from public and private payers.
Nevertheless, in spite of strong past growth, the funding the industry benefits from government sources has come under intense pressure in recent years.
Going forward, Medicare and Medicaid reimbursement cuts will continue to seriously threaten the industry. Nonetheless, strong and steady revenue growth seems likely for the Home Care Providers industry in the next five years, as a result of an aging population and increasing interest in home healthcare.
Statistics has it that in the united states of America alone, there are about 427,064 registered and licensed (accredited) home care providers companies (private nursing services companies inclusive) responsible for employing about 2,017,574 people and the industry rakes in a whooping sum of $99 billion annually.
The industry is projected to grow at 3.7 percent annually within 2014 and 2019. It is important to state that there are no establishments in this industry that has a lion market share.
A recent report published by IBISWorld shows that the Home Care Providers industry is highly fragmented: IBISWorld expects the three-largest industry firms to generate less than 10.0 percent of industry revenue in 2016. As hospitalization costs have increased and aging consumers have embraced the home healthcare trend, many new firms have entered the industry in the past five years.
The report further stated that the total number of industry operators has grown at an annual average rate of 3.4 percent during this period, a rate only slightly behind that of the industry’s 4.3 percent revenue growth over the same period.
Some of the factors that encourage entrepreneurs to start their own private duty nursing services business could be that the business is easy to set up and they can easily run the business as a one man show (sole proprietorship) and still generate good income.
It is important to state that the private duty nursing services business is indeed a growing business. Even though the business is not considered a Green business in the United States of America, one can comfortably say that the business is booming and open to potential entrepreneurs.
Over and above, the private duty nursing services business is very open to any aspiring entrepreneur who has acquired the required trainings, skills and perhaps professional certifications to start his or her own business.
2. Executive Summary
Mildred Williams® Private Duty Nursing, Inc. is a licensed private duty nursing company that will be located in the heart of San Jose – California in a neatly renovated and secured office facility.
We will provide services such as skilled nursing care, personal care, homemaker and companion services, physical therapy and medical social services to all our clients at their home irrespective of the religious affiliations, race, and health condition.
At Mildred Williams® Private Duty Nursing, Inc., we are going to be a health conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.
Mildred Williams® Private Duty Nursing, Inc. will deploy trained nurses that will help our clients complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, grocery shopping, eating in restaurants, making calls or inquiries, and exercise regularly amongst other activities.
Mildred Williams® Private Duty Nursing, Inc. is a family business that is owned and managed by Mildred Williams and her immediate family members. Mrs. Mildred Williams who is a native of Fort Myers-Cape.
She is a Registered Nurse (RN), a licensed non – medical home care administrator and social health worker with over 20 years’ hands on experience working for leading brands in the industry. She has a Master’s Degree in Public Health and she is truly passionate when it comes to taking care of the aging population and people with disability.
3. Our Products and Services
Mildred Williams® Private Duty Nursing, Inc. is set to operate a standard private duty nursing company in San Jose – California. The fact that we want to become a force to reckon with in the Private duty nursing services business means that we will provide our customers private duty nursing services that will be second to none in our city and state.
In all that we do, we will ensure that our customers are satisfied and are willing to recommend our services and company to their family members and friends.
We are in the nursing home line of business to deliver excellent services and to make profits and we are willing to go the extra mile within the law of the United States to achieve our business goals, aims and objectives. Mildred Williams® Private Duty Nursing, Inc. will provide the following services to her clients;
- Providing homemaker and companion services
- Administering in-home physical therapy
- Providing in-home hospice care
- Providing 24-hour home care
- Administering in-home occupational and vocational therapy
- Providing in-home dietary and nutritional services
- Administering speech therapy
- Providing in-home medical care
4. Our Mission and Vision Statement
- Mildred Williams® Private Duty Nursing, Inc. wants to become a pacesetter in the private duty nursing services industry not just in California, but through the United States of America.
- Our mission is to build a private duty nursing company that will meet and surpass the needs of all our customers; we want build a profitable and successfully business brand that in the nearest future will sell franchise all across the United States and Canada.
Our Business Structure
Mildred Williams® Private Duty Nursing, Inc. will be built on a solid foundation. From the kickoff, we have decided to recruit only qualified professionals to man various job positions in our organization. We are quite aware of the rules and regulations governing the private duty nursing services industry which is why we decided to recruit only well experienced and qualified employees.
We hope to leverage on their expertise to build our business. When hiring, we will look out for applicants that are not just qualified and experienced, but homely, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Mildred Williams® Private Duty Nursing, Inc.;
- Chief Executive Officer
- Human Resources and Admin Manager
- Nurse’s Aides
- Sales and Marketing Executive
- Accounting Officer
- Security Officer
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily home activities.
Nurse’s Aides/Home Caregivers/County Aging Workers
- Providing homemaker and companion services
- Administering in-home physical therapy
- Providing in-home hospice care
- Providing 24-hour home care
- Administering in-home occupational and vocational therapy
- Providing in-home dietary and nutritional services
- Administering speech therapy
- Providing in-home medical care.
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of the business
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Documents all customer contact and information
- Represents Mildred Williams® Private Duty Nursing, Inc. in strategic meetings
- Helps to increase sales and growth for Mildred Williams® Private Duty Nursing, Inc.
Accountant/Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Mildred Williams® Private Duty Nursing, Inc.
- Serves as internal auditor for Mildred Williams® Private Duty Nursing, Inc.
Security Officers
- Ensures that the office facility is secured at all times
- Controls traffic and organize parking
- Patrols around the building on a 24 hours’ basis
- Any other duty as assigned by the facility administrator
Cleaners:
- Responsible for cleaning the office facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the facility
- Handles any other duty as assigned by the facility manager
6. SWOT Analysis
Mildred Williams® Private Duty Nursing, Inc. is equipped to become one of the leading private duty nursing companies in San Jose – California which is why we are willing to take our time to cross every ‘T’ and dot every ‘I’ as it relates to our business.
We want our private duty nursing company to be the number one choice of all senior residents of San Jose. We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation.
Even though our Chief Executive Officer (owner) has a robust experience in social work and taking care of people with disability, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to help us structure our business to become a leader in the private duty nursing services industry.
This is the summary of the SWOT analysis that was conducted for Mildred Williams® Private Duty Nursing, Inc.;
- Strength:
Top on the list of what we will count as our strength is that we have a team of well qualified professionals manning various job positions in our organization. As a matter of fact, they are some of the best hands in the whole of San Jose – California and they are professionals who have what it takes to grow business from scratch to profitability in record time.
Our location, the Business model we will be operating on and our excellent customer service culture will definitely come to the fore and position us to stay highly competitive.
- Weakness:
Mildred Williams® Private Duty Nursing, Inc. is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the experienced hands in the private duty nursing industry.
- Opportunities:
Older adults are major users of healthcare services due to the development of diseases and assistance required later in life. The aging population and its increasing preference for home care over hospital stays are factors that make home care/private duty nursing services a growing part of the healthcare sector.
The number of adults aged 65 and older is expected to increase in 2019, growing at a faster rate than the general national population. This signifies that the elderly will make up an increasingly larger share of the population, which may represent an opportunity for the industry.
- Threat:
Individuals covered by private health insurance are likely to use healthcare services more frequently. Therefore, the extent to which private health insurance covers the US population affects demand for healthcare services. More than 10.0 percent of industry revenue comes from private insurance payments.
The number of people with private health insurance is expected to increase in 2019, but the elimination of the individual mandate provision still poses a potential threat to industry operators.
7. MARKET ANALYSIS
- Market Trends
Because of the essential nature of services provided by private duty nursing services, the industry was able to grow even in the face of economic stagnation. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.
Since the aging population are more prone to injury and illness and therefore require more assistance with daily activities, the larger share of senior adults has propelled demand for senior care homes, non – medical home care facilities and of course nursing care facilities. Despite favorable demographic trends, unsatisfactory government funding has hindered industry growth.
One more trend in the industry is that in other to make private duty nursing companies more affordable for low income individuals, many states in the United States of America are enacting changes to the portion of Medicaid which can be applied to nursing homes, senior care facilities and group Home Facilities.
Before now, only individuals living in nursing homes were provided Medicaid assistance, but in recent time, there has now been a shift
Without a doubt, the Private duty nursing services industry will continue to grow and become more profitable because the aging baby-boomer generation in Unites States is expected to drive demand for this specialized service and care for the elderly.
8. Our Target Market
Mildred Williams® Private Duty Nursing, Inc. is in business to take care of the aging population in San Jose – California.
We will ensure that we target both self – paying customers, and those who have Medicaid cover. The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the private duty nursing services industry in the United States.
Our staff are well – trained to effectively service our customers and give them value for their money. Our customers can be categorized into the following;
- The aging population/senior citizens
- Every other age category that falls under the conditions listed by the physician as people who need the services health workers to survive or carry out their daily task.
Our Competitive Advantage
Apart from the competitions that exist amongst players in the private duty nursing services line of business, they also compete against other home healthcare service providers such as non – medical home care facilities, assisted living facilities and senior care facilities amongst others.
To be highly competitive in the private duty nursing industry means that you should be able to hire qualified and competent nursing aides and count workers, deliver consistent quality service and should be able to meet the expectations of the family members paying for their loved ones.
Mildred Williams® Private Duty Nursing, Inc. is coming into the market well prepared to favorably compete in the industry. Our staff are well groomed in all aspects of private duty nursing and all our employees are trained to provide customized customer service to all our residents.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
We do all we can to maximize the business by generating income from every legal means within the scope of our industry. These are the services we will offer to generate income for the business;
- Providing homemaker and companion services
- Administering in-home physical therapy
- Providing in-home hospice care
- Providing 24-hour home care
- Administering in-home occupational and vocational therapy
- Providing in-home dietary and nutritional services
- Administering speech therapy
- Providing in-home medical care
10. Sales Forecast
One thing is certain, there would always be elderly people and senior citizens with one form of disability or the other who would need the services of private duty nursing companies.
We are well positioned to take on the available market in San Jose – California and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our private duty nursing business and our residents’ base.
We have been able to, examine the private duty nursing services market and we have analyzed our chances in the industry and we have been able to come up with our sales forecast. Below are the sales projection for Mildred Williams® Private Duty Nursing, Inc., it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year (FY1): $100,000 (From Self – Pay Clients): $250,000 (From Medicaid Covers)
- Second Fiscal Year (FY2): $250,000 (From Self – Pay Clients): $500,000 (From Medicaid Covers)
- Third Fiscal Year (FY3): $500,000 (From Self – Pay Clients): $1,500,000 (From Medicaid Cover)
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy adopted by Mildred Williams® Private Duty Nursing, Inc. will be based on generating long-term personalized relationships with our clients. In order to achieve that, we will ensure that we offer top notch services at affordable prices compared to what is obtainable in San Jose – California.
All our employees will be well trained and equipped to provide excellent and knowledgeable services as it relates to our business offerings. We know that if we are consistent with offering high quality service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent in subsequent years.
Prior to choosing a location for Mildred Williams® Private Duty Nursing, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of San Jose and other cities in California.
We hired experts who have good understanding of the private duty nursing services industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in San Jose – California.
In summary, Mildred Williams® Private Duty Nursing, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to residents, clubs for elderly and senior citizens with disability and other key stakeholders in San Jose – California
- Advertise our business in community – based newspapers, local TV and local radio stations
- List our business on yellow pages’ ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals)
- Enter into business partnership with hospitals, government agencies and health insurance companies to canvas for clients via referrals.
- Attend health care related exhibitions/expos to market our services.
11. Publicity and Advertising Strategy
We are in the private duty nursing business to become one of the market leaders and also to maximize profits hence we are going to explore all available means to promote Mildred Williams® Private Duty Nursing, Inc.
Mildred Williams® Private Duty Nursing, Inc. has a long-term plan of extending our clientele base in key cities all across the United States of America which is why we will deliberately build our brand to be well accepted in San Jose – California before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Mildred Williams® Private Duty Nursing, Inc.;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs that appeals to the aging population and senior citizens with disability
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Billboards in strategic locations all around San Jose – California
- Distribute our fliers and handbills in target areas with high concentration of the aged
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo.
12. Our Pricing Strategy
Mildred Williams® Private Duty Nursing, Inc. will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in the United States of America.
On the average, nursing homes, senior care facilities and group home facility service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment.
In view of that, it is easier for private duty nursing care service providers to bill their clients based in their discretion. Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
- Payment Options
The payment policy adopted by Mildred Williams® Private Duty Nursing, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mildred Williams® Private Duty Nursing, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.
13. Our Startup Expenditure (Budget)
When it comes to starting a private duty nursing company, you should be ready to raise enough capital to cover some of the basic expenditures that you are going to incur. The truth is that starting this type of business does not come cheap.
You would need money to secure a standard office facility, pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to take of the daily running cost and overhead. The items listed below are the basics that we would need when starting our private duty nursing company business in the United States;
- The total fee for registering the business in the United States of America- $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Mildred Williams® Private Duty Nursing, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring business consultant – $2,500.
- The cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
- The cost for leasing a standard and secured facility in San Jose – California for 2 years – $80,000
- The cost for facility remodeling – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory – $50,000
- The cost for the purchase of storage hardware (bins, rack, shelves,) – $3,720
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost for the purchase of staff bus: $15,000
- The cost of Launching our official website: $700
- Miscellaneous: $10,000
We would need an estimate of $350,000 to successfully set up our private duty nursing company in San Jose – California.
Generating Fund/Startup Capital for Mildred Williams® Private Duty Nursing, Inc.
Mildred Williams® Private Duty Nursing, Inc. is owned and financed by Mrs. Mildred Williams and her immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Mildred Williams® Private Duty Nursing, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our private duty nursing care services a little bit cheaper than what is obtainable in the industry and we are prepared to survive on lower profit margin for a while.
Mildred Williams® Private Duty Nursing, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of medical equipment and staff bus et al: In Progress
- Purchase of supplies, furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with clubs for the elderly, hospitals, government agencies and health insurance companies in the United States of America: In Progress