The Homestead

1
The Homestead

• Presented by Group 4
• Stacy Boyle
• Brett Filous
• Erin Gorey
• David Humeston
• Lindsay Steiger

2
Congregate Care

• Definition
• A form of senior housing where residents live
  independently, where no medical care is provided.
  One building, meals, social activities, and
  other amenities are provided.

3
Choosing a Location

• Washington County
• 65 per capita income and population
• Ability to attract residents
• Convenience
• Part time workers

4
Competitors

• Indirect
• Retirement Communities
• Assisted Living Facilities
• Condominiums or Apartments
• Direct
• Colonial House
• The Inn at Marietta

5
Setting a Price

• Competitors Prices
• The Inn at Marietta - 1,940
• Colonial House - 1,300
• Perceived Value of Service
• Under-pricing
• Over-pricing

6
Setting a Price for Expenses
7
Recommended Price

• Price
• Single Room - 1,500
• Double Room - 1,250

8
Net Income and Cash Flows
9
Funding

• 350,000 Mortgage
• Property
• House
• Additions
• 40,000 Line of Credit
• Furniture
• Industrial Refrigerator
• Other Start Up Costs
• Ending Cash Balance is Positive

10
Recommendations

• Guest House
• Advertising
• Part Time Employees

11
Recommendations (cont.)

• Implementation
• Obtain mortgage/line of credit June 2001
• Purchase house/begin construction July 2001
• Begin advertising September 2001
• Open business January 1, 2002
• Have all rooms occupied January 1, 2004
• Cash balance of 53,000 December 31, 2004

12
Conclusion

• Thank you!
• Good luck with your business Mr. Mrs. Tuxhorn!