The Homesteads Business Plan

1
The Homesteads Business Plan

• Group 7
• Dan Gilbert
• Brent Hammer
• Joe Licht
• Randi Rosenberg
• Andrea Wilson

2
Congregate Care Industry Analysis

• What is congregate care?
• Offers independent living and opportunities to
  engage in activities
• No medical assistance
• 15,000 facilities nationwide
• 50-100 billion industry

3
Growth Projections

• One third U.S. population 50 by 2010
• Projected increase of 35-50 within 20 years

4
Projected Target Market Population
5
Target Market

• Age
• 55 and older
• Gender
• Main focus females
• Income
• Middle class

6
Pricing and Promotion

• 1,500/month for single
• 2,500/month to stay in a double
• Competition pricing 1,300 1,485 and 1939

• Word of Mouth
• Yellow Pages
• Website
• Fliers

7
Direct Competition

• Inn at Marietta
• 25 female residents
• Country setting
• Colonial Home
• 16 coed residents
• City setting (commercial)
• Appletree Homes
• 6 coed residents
• City setting (residential)

8
Competitive Advantages

• Combination of country setting and close-knit
  coed family
• Rooms will be individual and unique, unlike
  traditional cookie cutter rooms
• Internet website

9
Financing

• 250,000 Mortgage
• 40,000 Line of credit
• 101,000 Operating expenses

10
Pro-forma Net Income

• Pro-forma net income in year one
• 1,000
• By year three, pro-forma net income of
• 80,000

11
Contingency Plan

• Lower than expected
• Lay-off part-time employee
• Lower price for a shared room to encourage higher
  residency
• Sell business to pay off loans
• Higher than expected
• Increase in services
• Higher more help
• More luxurious home

12
Suggestions for the Client

• Property
• Add-on
• Build
• Services
• Guest Home
• Medical Attention
• Transportation

• Staffing
• Part-time

13
Questions