Hearth and Home Senior Care

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Hearth and Home Senior Care is a non-medical home care agency in Iowa. We send trained, background-checked caregivers to the homes of older adults who want to stay independent. Caregivers help with meals, bathing and dressing, medication reminders, light housekeeping, errands, transportation to appointments and companionship, from a few hours a week to overnight and live-in care.

Why this fits. Most older adults want to stay in their own homes, and their families often cannot provide all the help they need. Families look for care they can trust, with caregivers who show up, treat their parent with respect and communicate. An agency that screens, trains, schedules and supervises caregivers lets families rest easier and keeps older adults safer and happier at home.

Here is what our numbers show. In Year 1 we plan about 16,000 hours of hourly care (about eight full-time caregivers) and 300 overnight and live-in shifts. That brings in sales of $623,500, growing to $2,096,950 by Year 5 as we add clients and caregivers. We expect a loss of about $9,600 in Year 1 because we hire and train caregivers and pay them weekly before payments arrive, then a profit of about $28,800 in Year 2, $117,600 in Year 3 and $210,600 by Year 5. Payers often take about 51 days to pay, so the plan holds cash for unpaid invoices.

We need $172,000 in total. Of that, $56,500 is startup costs (software, computers, the state registration, legal setup, branding, caregiver recruiting and training, insurance and an office deposit), and the rest is cash to pay caregivers while we wait for payments. I am putting in $52,000 of my own savings and asking for a $120,000 SBA 7(a) loan.

I am Ruth Anderson, the owner and administrator, with sixteen years in senior care, including eight years as a care manager at a home care agency. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Hearth and Home Senior Care is a small, independently owned home care agency in Iowa, planned as a limited liability company (LLC). We serve older adults and adults with disabilities and their families in our city and the towns around it.

Our mission. To help older adults live safely and with dignity at home, and to give their families peace of mind.

What we believe. Care is personal. We match caregivers with clients by needs and personality, write a care plan with the client and family and keep the same caregivers when we can. We treat every client with respect, protect privacy and report any concern about a client's safety. We pay caregivers fairly and train them well, because good care starts with good caregivers.

What we offer:
- Hourly home care. Visits of two to twelve hours for personal care, meals, housekeeping, errands and companionship.
- Overnight and live-in care. Caregivers who stay through the night or live in the home for several days.
- Transportation and errands. Rides to appointments and help with shopping.
- Care coordination. A care coordinator who creates the care plan, supervises caregivers and keeps families informed.

Who we serve. Older adults, adults with disabilities, people returning home from the hospital and their families.

What we do not do. We do not provide medical care, give injections, manage medications beyond reminders, make medical decisions or replace nursing or therapy services. We do not take clients whose needs require skilled nursing without a referral to a licensed provider.

How we are run. I am the owner and administrator. A care coordinator works with me from Year 1 and the team grows to three. A scheduler and intake specialist joins in Year 2, and a second in Year 5. Caregivers are our employees, trained and supervised. An accountant keeps the books.

Where things stand today. We have toured two office spaces, drafted a client agreement and caregiver policies reviewed by an attorney, confirmed the state's requirements for non-medical home care, built a list of about 25 caregivers who want to join and received interest from a senior center, two churches and a hospital discharge planner. (Replace this with where you really are.)

Problem & Opportunity

Many older adults need help with daily tasks, but not full-time medical care. Families often cannot provide the help themselves because they live far away, work or are caring for their own children. Some hire a caregiver through an ad or a friend, with no background check, no backup if the caregiver is sick and no supervision. Others find large agencies that send a different person each week.

Quality is a real worry. Families want to know that the person in their parent's home is trustworthy, trained and supervised, and that someone will answer the phone when there is a problem. Caregivers want fair pay and support, and turnover is high.

Running an agency is hard. Caregivers must be recruited, screened, trained and scheduled. Payroll must be paid every week, but clients and insurers often pay weeks later. Licensing and insurance requirements vary by state.

For a new agency, the hard parts are the cash needed to pay caregivers before payments arrive, recruiting caregivers, winning referrals from doctors, hospitals and senior centers and keeping quality high as the agency grows.

We want to be clear about what we know and do not know. Home care is a real and growing need as the population ages. We do not know how fast clients will come, so our plan assumes a loss in Year 1 and a large cash cushion. We will use current local numbers on older adults and competing agencies in our final plan and will not overstate them.

Products & Services

Hearth and Home Senior Care will send caregivers families can trust and supervise them well.

How it works, step by step:
1. First call. A family calls and speaks with a care coordinator, who asks about the client's needs, the schedule and the budget.
2. Home visit. The coordinator visits the home, meets the client and writes a care plan with the client and family.
3. Match. We match a caregiver by skills, schedule and personality and introduce them before the first shift.
4. Start care. The caregiver arrives on time, follows the care plan and records what was done after each shift.
5. Supervise. The coordinator visits or calls the client regularly, checks the caregiver's notes and updates the plan as needs change.
6. Backup. If a caregiver is sick or unavailable, we send a trained backup and tell the family.
7. Communicate. Families receive updates and have one number to call, day or night.
8. Billing. We bill clearly, explain each charge and help families who have long-term care insurance or veterans' benefits understand how to submit claims.

Why this approach is strong. Care plans, supervision and backup caregivers make care steady and safe. A coordinator who knows the family makes problems easier to solve.

Market Analysis

Who we serve: older adults, adults with disabilities and their families in our city and the towns around it.

Our primary group is adults aged 75 and older who live at home and need help with daily tasks, and their adult children. Our secondary group is people leaving the hospital or rehabilitation who need extra help for a few weeks. We will use the most recent local numbers on older adults, home care need and competing agencies in our final plan.

How we sized our plan. We plan about 16,000 hours of hourly care (about eight full-time caregivers) and 300 overnight and live-in shifts in Year 1, growing to 47,000 hours (about 23 full-time caregivers) and 1,000 shifts by Year 5. Our Year 1 prices are about $34 per hour and $265 per overnight or live-in shift, rising about 3% a year.

Demand data. Interest from a senior center, two churches and a hospital discharge planner covers part of the first months. We do not count on any one source. Many clients begin with a few hours a week and add hours as their needs grow.

We do not take every client. We decline clients who need skilled nursing, clients with unsafe homes where we cannot reduce the risk and requests that go beyond a caregiver's training.

Competitive Landscape

Other choices for families, and what makes us different.

- Large national home care franchises. They have brand recognition and many caregivers. We offer a local owner and consistent caregivers.
- Other independent agencies. Some are excellent. We compete on screening, training, communication and pay for caregivers.
- Hiring a caregiver directly. It can cost less but makes the family the employer and leaves no backup. We provide an employer, insurance and backup.
- Assisted living and nursing homes. They offer full services but require a move. We help people stay home.
- Family members. They are the best caregivers when they can be there. We support families so they do not burn out.

What makes us different.
- A care coordinator who writes the plan and visits regularly.
- Background-checked, trained, bonded and insured caregivers.
- Backup caregivers and one phone number day or night.
- Fair pay and training for caregivers, which means steadier staff.

What we do not claim. We are new. Larger agencies have more caregivers and a longer record. We plan to earn trust one family at a time.

Marketing & Sales Strategy

How we will reach customers.

Referral sources. We will meet doctors' offices, hospital discharge planners, senior centers, churches and adult day programs, explain how we work and ask for a chance to earn their trust. We will not pay for referrals.

Families. A website with clear information about services and pricing, a Google business listing, reviews and free information sessions for adult children on how to choose care.

Elder law attorneys and financial planners. We will offer a short guide on paying for home care, including long-term care insurance and veterans' benefits.

Caregivers. We will recruit through job boards, community colleges and word of mouth, with a clear message about fair pay and training.

Events. We will take part in senior fairs and health fairs and give short talks on topics such as fall prevention.

Pricing. About $34 per hour and $265 per overnight or live-in shift in Year 1, quoted in writing with no hidden fees.

Operations Plan

How the business will run.

Setup (the 4 to 6 months before the first client). We will form the LLC, get an EIN and open a business bank account, confirm and obtain the state registration or license for non-medical home care, buy insurance and a bond, set up scheduling and billing software, rent an office, write policies and a care plan template, recruit and train the first caregivers and sign the first referral partners. We will not begin care until the required registrations and insurance are in place.

The office. A small leased office with a training room. Rent is $9,000 a year in Year 1.

Staffing. In Year 1: I serve as owner and administrator. A care coordinator, paid $46,000 a year, writes care plans and supervises caregivers. The coordinators grow to two in Year 2 and three in Year 4. A scheduler and intake specialist, paid $36,000 a year, joins in Year 2, and a second in Year 5. Caregivers are employees whose pay, payroll taxes and workers' compensation are counted in the cost of each hour.

Costs. Caregiver pay and related costs are about $23.60 per hour and $180 per overnight or live-in shift in Year 1. Insurance and bonding are about $14,000 a year, caregiver recruiting and training about $9,000, marketing and referral work about $18,000 and software about $7,200.

Safety and quality. Every caregiver passes a background check, reference checks and training on safe lifting, fall prevention, dementia care and emergencies. Caregivers follow the care plan, record what they do and call 911 in an emergency. We report any suspected abuse, neglect or exploitation as the law requires.

Payments. Many clients pay privately or through long-term care insurance or other programs, which can take about 51 days to pay. Our plan holds about $87,290 in unpaid invoices at the end of Year 1, and a large part of our startup cash pays caregivers while we wait.

Insurance. We carry general and professional liability, bonding, workers' compensation and commercial auto for any transport.

Management & Organization

The people who will run Hearth and Home Senior Care.

Ruth Anderson, owner and administrator. Sixteen years in senior care, including eight years as a care manager at a home care agency, where she wrote care plans, supervised caregivers and handled state rules. She leads operations, compliance, referrals and finance. (Replace this paragraph with your own background and any license your state requires.)

Care coordinators (from Year 1). Write care plans, supervise caregivers and keep families informed.

Scheduler and intake specialist (from Year 2). Matches caregivers to shifts and handles calls.

Caregivers. Trained employees whose pay is counted in the cost of each hour.

Outside advisors. An elder law attorney, an accountant, an insurance broker, a nurse who reviews our training and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and administrator $58,000, care coordinator $46,000 and scheduler and intake specialist $36,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before the first client (4 to 6 months ahead): confirm the state registration or license, buy insurance and a bond, set up software, recruit and train at least 10 caregivers and sign at least three referral partners.
- Year 1: about 8 full-time caregivers, a care coordinator and the first 30 clients; $623,500 in sales and a loss of about $9,600.
- Year 2: about 13 caregivers, a second coordinator and a scheduler and intake specialist; $1,052,454 in sales and a profit of about $28,800.
- Year 3: about 17 caregivers and strong referrals from hospitals and senior centers; $1,428,801 in sales and a profit of about $117,600.
- Year 4: about 21 caregivers and a third care coordinator; $1,777,972 in sales and a profit of about $163,600.
- Year 5: about 23 caregivers and a second scheduler, with more overnight shifts; $2,096,950 in sales and a profit of about $210,600.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: hours of care delivered, new clients, caregiver turnover, missed shifts, client and family feedback, unpaid invoices and their age and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $172,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $56,500, listed item by item in the Startup Costs section: $6,500 for scheduling, billing and caregiver tracking software setup; $5,500 for computers, phones and a secure filing system; $2,000 for training room supplies and caregiver equipment; $3,500 for state license or registration and business license; $6,500 for attorney: client agreement, caregiver policies and LLC; $6,500 for sign, brochures, branding and a website; $9,000 for caregiver recruiting, background checks and training for the first team; $12,500 for insurance down payment (liability, bonding, workers compensation); $4,500 for office deposit and first month.
- The cash the business uses before it breaks even, about $62,000. Caregivers are paid every week, but clients and insurers often pay about 51 days later, so a large amount of cash is tied up in unpaid invoices while pay is due.
- A cash cushion of about $45,900: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $108,000, and the three pieces add up to about $164,450, rounded up to the nearest $500: $164,500.
We are raising $7,500 more than that, $172,000 in all, to cover a slower first year than planned and the cost of a second coordinator in Year 2. With this funding, the lowest year-end cash balance is about $56,000, at the end of Year 2.

Where the money comes from:
- My own money: $52,000.
- SBA 7(a) loan: $120,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances health care service businesses, backed by my own savings.

How we will pay it back. We expect a loss of about $9,600 in Year 1, a profit of about $28,800 in Year 2, a profit of about $117,600 in Year 3, a profit of about $163,600 in Year 4 and a profit of about $210,600 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 12.5% over 10 years, about $1,757 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: my personal guarantee and a lien on business assets.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with a smaller team of five caregivers, one coordinator and a smaller office, which lowers payroll and startup costs.
- Phase 2: once clients and referrals are steady, add caregivers, the scheduler and the second coordinator and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume, any license or certification your state requires and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your state registration or license and insurance quotes.
- Your client agreement, care plan template and caregiver policies.
- Your caregiver training outline and background check policy.
- Quotes for software and the office.
- Letters of interest from senior centers, churches and discharge planners.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Hourly Home Care Visits (per hour): about $34 in Year 1, rising to $38.27; about $23.60 in direct costs, rising to $26.36; about 16,000 in Year 1, growing to 47,000.
- Overnight and Live-In Shifts (per shift): about $265 in Year 1, rising to $298; about $180 in direct costs, rising to $201; about 300 in Year 1, growing to 1,000.
- Hourly care is about 16,000 hours in Year 1, or about eight full-time caregivers, growing to about 23 by Year 5. Caregiver pay and related costs are about 69% of the price. Prices rise about 3% a year.
- Equipment and software ($14,000 in Year 1) cover scheduling and billing, computers and training supplies, and later years replace computers and add small items.
- Pay (a full year, per person): owner and administrator $58,000; care coordinator $46,000; scheduler and intake specialist $36,000.
- Other yearly costs in Year 1: insurance (liability, bonding, workers compensation) $14,000, office rent $9,000, caregiver recruiting and training $9,000, marketing and referral work with doctors and senior centers $18,000, scheduling and billing software $7,200, accounting and legal $6,500, payroll taxes and benefits for office staff $16,000. These grow between 4% and 12% a year.
- Startup equipment and later purchases ($14,000 in Year 1, then $2,000, $2,000, $3,000 and $2,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 51 days after service, so at the end of Year 1 about $87,290 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs