Signature Assignment Part III- The Written Business Plan

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Signature Assignment Part III: The Written Business Plan

Roy L. Salvador West Coast University HA 560 Entrepreneurial Opportunities in the Health Care Industry Dr. Jake Redden July 3, 2021

2 Signature Assignment Part III: The Written Business Plan Introduction Name of the Proposed Business R3N Harmony Home and Residential Care began with a thought I had while caring for my senior family members. I have given my passion for caring for others to my staff (Caring.com, n.d.). While we have our home with seniors, we have modified it to offer our residents comfort and solitude that one would have in their residence. However, there are opportunities for companionship (Caring.com, n.d.).

Name of Principal and the Nature of Proposed Business R3N Harmony Home and Residential Care is a senior living residence based in Glendora, California. The residence can fit six people and gives senior living services and amenities. For many years, Roy Salvador, the originator, and owner of R3N Harmony, has taken care of a senior citizen at his home. This senior citizen also happens to be a family member of his.

Statement of Financial Needed Table 1 R3N Harmony Statement of Financial Needed

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

Confidentiality Statement This document contains confidential information proprietary to The R3N Harmony Home and Residential Care®, hereinafter referred to as the "Company." This information and related conversations are submitted solely to introduce selected parties to Company's Business Plan

3 (ISSUU, 2013). The Company's presentation of information contained above and in connected conversations does not imply a subscription or authority to use or disclose the information, ideas, or thoughts presented (ISSUU, 2013). This Plan, as well as the concepts and ideas represented within, remain the property of "Company (ISSUU, 2013)."

Each person who receives this material pledges to keep it totally confidential (ISSUU, 2013). The recipient may not divulge any of the information included herein, either directly or indirectly, or permit any agent or associate to do so (ISSUU, 2013). Alternatively, without the Company's previous written consent, replicate this text in whole or in part (ISSUU, 2013).

Any entity who acknowledges delivery of this Plan or any other document from "Company" or verbal transmission of private information undertakes to be governed by the requirements of this Confidentiality Statement and to immediately return documents to the Company upon receipt (ISSUU, 2013).

Executive Summary R3N Harmony Home & Residential Care offers assisted living services for senior citizens. R3N Harmony is devoted to offering optimal care for LA seniors who request or want an assisted living facility. R3N Harmony is founded in an excellent climate in the community of Glendora, California. Residents can encounter a pleasant combination of beachfront and inland valley climates. This atmosphere is great for seniors who suffer from arthritis, joint pain, or are easily irritated by the typical cold.

R3N Harmony is an alternative option to expansive, less personal senior assisted living facilities with a specialty of offering optimal care in a smaller, customizable environment. R3N Harmony helps seniors with their daily activities such as medicine, meals, reminders, individual grooming, physical therapy, and more (ISSUU, 2013). R3N Harmony also offers recreational

4 activities, bonding events, and entertainment to satisfy residents. In addition, R3N Harmony strives to assist seniors with residential care, offering seniors the best combination of private home surroundings and camaraderie and activities that more extensive facilities operate.

As the owner and operator of R3N Harmony I, Roy Salvador, have been using a family member's home for several years to offer service for her. From my interactions with the family member, I have acquired priceless experience and information while growing her already intense desire to help others. As this passion grew, I chose to adjust my residential dwelling into a customized care facility for seniors that need assisted living. In addition to customized care, R3N Harmony also offers amenities that other residential facilities do not have, like a pool and spa.

R3N Harmony will commence with a capacity of three guests, hopefully increasing occupancy to five by year two, allowing the business to succeed. We also plan to renovate the facility to increase the occupancy to seven guests and discuss opening a second facility.

Industry Analysis Future Outlook and Trends In the previous two decades, assisted living facilities have become a more popular choice for the long-term demands of US senior citizens (Bowblis, 2012). Assisted living facilities offer 24 hours of supervised care in an independent residence that differs from regular nursing home care (Bowblis, 2012). Because of the supervised care, people would overall prefer to get care in an assisted living facility compared to a nursing home by a ratio of six to one (Bowblis, 2012).

The demographic trends display that assisted living facilities are rising with an aging population and a demand for uncommon medical services and help with daily tasks. Furthermore, the future is bright, with the senior population growing by 26% by 2040 (ISSUU, 2013). There are currently 272,220 senior citizens in Los Angeles, growing by 17.34% from 2010 to 2020

5 (ISSUU, 2013). There are 157,711 female senior citizens (58% of the senior population) in Los Angeles, leading to being the more prevalent market for residential care facilities (ISSUU, 2013).

The 114,509 male senior citizens make the remaining 42% of the market (ISSUU, 2013).

Analysis of Competitors Glendora has 68 assisted living centers, and Los Angeles County has 881 assisted living centers. Most of these facilities are privately owned and run in a residence. The restrictions of this type of residence depend on the dimensions of the facility. R3N Harmony can only have six beds and only looks for a broad enough market to fill the facility. In their future endeavors, they strive to expand to a newer facility to satisfy demands (ISSUU, 2013).

Market Segmentation Seniors represent a profitable market for the assisted living services when pondering their enhanced economic state, raised freedom, and enhanced health. (Faranda & Schmidt, 2000).

R3N Harmony's market segmentation is composed of two parts. One is individual seniors who might be ambulatory or non-ambulatory, with a moderate disorder, crisis, and desire for social interaction. The other part is senior couples who might be ambulatory or non-ambulatory, with a moderate disorder, crisis, and desire for social interaction (ISSUU, 2013). The subgroups are categorized based on age, behavior, life stages, health, attitudes, and other demographic and psychographic data types. Please refer to Table 1. R3N Harmony Market Segmentation (ISSUU, 2013).

Industry and Market Forecasts According Aslanyan (2021), the study, many of the 67 million adults over the age of 60 require or will require care. Around 65 million Americans will age 65 in the next 20 years, bringing the total number of seniors requiring long-term care to 15 million by 2050, according to

6 experts (Aslanyan, 2021). Products and Services for the Elderly: In 2019, the market was worth $832.8 billion, and it is expected to increase at a CAGR of 3.9 percent from 2020 to 2025 (Wood, 2021).

Description of Venture Services R3N Harmony helps seniors in their daily activities such as assistance with medicine, meals, reminders, personal grooming, physical therapy, and more (ISSUU, 2013). However, we also offer events, entertainment, and recreational activities as a way for seniors to find camaraderie and satisfaction with their talents and skills. In addition, R3N Harmony strives to assist seniors with residential care, offering seniors the best combination of private home surroundings and camaraderie and activities that more extensive facilities operate. Medications are locked and secured in a central hub for residence who favor or need staff aid. Transporting residents to medical appointments is available as per their request (ISSUU, 2013).

Size of Business, Facility Equipment and Personnel R3N Harmony Home & Residential Care provides offers assisted living options for senior citizens. R3N Harmony's mission is to offer a healthy and safe atmosphere, allowing senior citizens to live as independently as possible. The purpose of R3N Harmony is to service senior citizens with residential care by combining private home surroundings and camaraderie and activities that more extensive facilities operate (ISSUU, 2013). Residents can access a swimming pool and spa equipped with an ADA compliant lift for those who find it difficult to enter the pool or spa (ISSUU, 2013). There are some standard rooms such as two living areas, two dining areas, and a spacious kitchen. A patio extends around the whole residence providing various private areas where residents can visit or have some alone time. Beautiful gardens

7 enclose the home overlooking a view of the Glendora hills. There are raised gardens where senior citizens can utilize their knack at gardening and a courtyard with a fountain and sitting area for residents. Personnel must have a four-year college degree or professional degree, as well as two years of expertise in a field linked to caring for the elderly, to educate new employees in the first week of employment (ISSUU, 2013). Once they get their license, they will be eligible to practice as a health care practitioner in California.

Background of Entrepreneur R3N Harmony Home & Residential Care is an assisted living facility for seniors owned and operated by Roy Salvador. It is established in the charming Glendora area in Los Angeles County. The residence offers optimal care for senior citizens while encouraging independent living with the assistance of a prepared staff.

Operation Plan Description Roy Salvador owns and operates R3N Harmony & Residential Care, which is located at 8915 Bender Ave., Glendora, CA 92456. Direct competitors for the company will be based in Glendora, while indirect competitors will be distributed around the Greater Los Angeles area.

Because of these factors, the R3N Harmony facility serves the whole Los Angeles area, not simply Glendora. The company will shop at inexpensive retailers in Glendora and hire suitable employees from all throughout Los Angeles. R3N Harmony's rent is currently $3,100 per month (ISSUU, 2013).

Permits and Licenses R3N Harmony will have accomplished the following permits before officially launching for business:

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Administrator Accreditation

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Fire Marshal Pre-Inspection

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Facility Registration

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Business Licensing

Operational Procedures •

The residential facility's clients are actively participating in a daytime program or activity.

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Residents have the option of staying in a private or shared room, with no more than two people are in each room at any given time.

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All residents will have their laundry done once a week.

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Residents will be fed three times a day, with a maximum of 15 hours between the last meal of the day and the first meal of the next.

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A telephone is available to each resident.

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At all times, there must be at least one person in the facility who is capable of and responsible for communicating with emergency services.

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Medications will be kept and secured in a single area that will only be accessible to authorized personnel.

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Transportation will be provided to and from health and dental appointments, transitional care institutions, daily activities in the event of an accident, and facility programming.

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R3N Harmony does not discriminate against candidates on the basis of ethnicity, faith, sexual orientation, or nationality.

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Family members, friends, and anyone involved in a resident's life can visit during non-sleeping hours.

Equipment In order to satisfy ADL requirements, R3N Harmony will rebuild a bathroom and install new bathroom amenities. To comply with licensing regulations, each room will be outfitted with bedroom furniture and linens (ISSUU, 2013).

Purchasing Polices Roy Salvador will be in charge of budgeting and purchasing for the R3N Harmony facility and must authorize any purchases for food and supplies as well as the upkeep of the residential assisted living home (ISSUU, 2013). An inventory list and evaluation will be part of the protocol, which will be approved on a weekly basis. Purchases for operational purposes will be purchased from local discount stores (ISSUU, 2013).

Quality Control Measures Each resident at R3N Harmony receives high-quality service. To ensure a consistent, high standard of service, each care employee will be thoroughly trained and will have access to an operating manual containing official policies (ISSUU, 2013). In addition, residents will have access to fresh items such as meat, milk, bread, veggies, fruit, and supplies for meal preparation.

For cooking and emergencies, canned and dried food will also be accessible (ISSUU, 2013).

Staffing and Training All employees must be in excellent health, physically and psychologically capable of executing given activities, and this will be verified through a pre-employment health exam and a background check (ISSUU, 2013). Education, experience, letters of recommendation, and

10 credentials are all necessary for this position. At the time of hire, employees must read and sign Notice Employee Rights (LIC 9052) (ISSUU, 2013).

Within the first four weeks of employment, new employees will get at least ten hours of training, which will include, but not be restricted to, the relevance and practices of personal care services such as washing, hygiene, dressing, eating, toileting, and universal precautions (ISSUU, 2013). Duties will be reviewed and supported by a well-organized and complete instruction handbook after training.

Marketing Plan Pricing With competition in the Glendora area, R3N Harmony will implement a competitive pricing strategy. The following is a breakdown of their pricing: Table 2 R3N Harmony Competitive Pricing Product/Service

Product/Service

Rate per guest-cover full services

$3,500/month

Additional for private room

$500/month

Additional hour/day ADLs

$500/month

Incontinence Care/Supplies

$300/month

Dementia Care

$300/month

Transportation to Doctors

$20/hour plus $4/mile

One Time-Preadmission Fee

$2,000

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

Promotion and Advertising

11 R3N Harmony Home & Residential Care plans to promote its business primarily through strategic partnerships and online marketing. R3N Harmony's website will offer a full description of the different services offered, pictures of the actual facilities, and information about the owner and the vision/mission of the home. In addition, R3N Harmony will strategically place the home into a variety of web directory listings. R3N Harmony will target several locations for promotional and advertising needs, as well as seeking strategic partnerships with companies such as: •

Hospital skilled nursing placement contacts

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Referral agencies

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Home health nursing

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Elderly care websites

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Elder care law firms

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Long term insurance agents

Customer Service Customer service will be provided through two R3N Harmony resources. The first will be the most direct and rapid response, which will be provided by direct care workers who will be available to visitors at all times to address questions (ISSUU, 2013). Administrators will be accessible by email or phone to address queries from guests' families or to respond to any additional inquiries (ISSUU, 2013).

Website Promotional Techniques Inquirers will be directed to a webpage maintained by R3N. This website will feature a description of the company, a list of the services it offers, images of the actual premises, as well as information about the owner and the company's mission and vision. The fundamental

12 marketing strategy will be Search Engine Optimization and Listings in Online Residential Care Directories.

Organizational Plan Form of Ownership Roy Salvador will run this business as a sole proprietorship.

Organization Chart Figure 1 R3N Harmony Strategic Organization Chart

CEO Roy Salvador

RCFE Administrator

CFO

CMO

Roy Salvador

Assistant RCFE Administrator

Nutrionist/Cook

Caregiver

Sales Manager

Medicine Administrator

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

Management Team Background •

Roy Salvador manages the business operations as the licensee and RCFE Administrator.

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Connie Bulos, Assistant RCFE Administrator and Nutritionist, will take over.

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Roy Salvador, CEO and RCFE Administrator

Board of Advisors •

The board of advisors will consist of the following positions.

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Roy Salvador - Business Owner

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Nelia Bulos - Medical Administrator

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Nurse - Bernadette Zambrano

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Accountant - Nette Wang

Board of Directors •

Connie Bulos and Julie Santiago will be a part of the Board of Directors

Professional Services Providers •

R3N Harmony will be using services by Charles Morris and Associates Law Firm located in Glendora.

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Handyman - Ronnie Salazar

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Housekeeper - Keyla Adriano

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Pool Service - Deep Blue Pools

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Groundskeeper - Alfredo Gutierrez Assessment of Risk

Weaknesses of Ventures R3N Harmony's weaknesses are that the Board of Directors is guided by the heart, which might lead to financial problems, there isn't much room for expansion, needs for construction, and the needs to familiarize the business side of senior care (ISSUU, 2013).

14 Contingency Plan R3N Harmony’s long-term care contingency staffing according to Minnesota Department of Health (2020), during this phase, the institution's standard day-to-day practices are activated to fill staffing gaps, including using on-call employees and leveraging resources from facility partners (Department of Health, 2020). The degree of care supplied to residents is the maximum practicable level of care in order to suit their needs (Department of Health, 2020). Development of the proactive steps and ideas listed below needs to occur before a crisis occurs and will help to minimize the risk of having to move to crisis staffing (Department of Health, 2020).

R3N Harmony advocates to form a committee composed of facility administration, HR, and facility leads, but not limited to them. Maintain emergency contact numbers for: •

All employees

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Depending on the situation, the system and/or associated facilities

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Staffing companies

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Other emergency staffing options in the area

In circumstances where a patient/resident could be treated for at home as an interim remedy, family members can: •

Share information with employees on a regular basis regarding the present circumstances and the efforts taken by the company to ensure employee safety.

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Identify any potential staffing hazards unique to that facility. Ongoing staffing issues, information gaps for patient/resident management for potential threats, a patient acuity census, and feelings of hopelessness from local and regional support are all possible examples.

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Keep track of staffing levels for external workers working at your facility and communicate it with any "supplemental nurse staffing agencies" (e.g., basic life support, vaccines, etc.) so they can bridge demands.

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Develop an emergent staffing onboarding and compliance management process: §

Credentialing process

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Role clarification

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command/reporting to

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PPE available for incident or work responsibilities

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Inquire about these agencies' ability to provide last-minute service.

Financial Plan

Increasing overall housing capacity is the strategy for maximizing net profits. To get started, R3N Harmony will require a total capital inflow of $45,000 (ISSUU, 2013).

R3N Harmony is looking for investors to help them raise these funds. Investors will take 20 percent return on the money they invest in your company.

Assumptions Table 3 & 4 R3N Harmony Start Expenses and Assumption

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

16 Pro Forma Income Statement Table 5 R3N Harmony Cash Flow Projections

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

Cash Flow Projections Table 6 R3N Harmony Cash Flow Projections

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

17 Balance Sheet Table 7 R3N Harmony Cash Flow Projections

Note. Reprinted from Vintage Home and Residential Care Business Plan by ISSUU, 2013

Conclusion The next ten years in the senior care market are full of promise and opportunity, and senior living is beneficial. Leaders in senior living have a chance to meet the nation's need for elderly care while maintaining the high quality of life that has made senior living an appealing long-term care choice for older persons and their families (Argentum, 2016). However, as the country's demographics alter and the healthcare business evolves, the industry must embrace change and develop new alliances while continuing to build on its stable basis (Argentum, 2016).

R3N Harmony is proud to be a part of the solution that supports its customers by giving elderly citizens an alternative in where they live, among other things. Furthermore, R3N Harmony campaigned for older citizens' choice, accessibility, autonomy, dignity, and life quality.

18 References Argentum (2016). Getting to 2025: A senior living roadmap. https://www.argentum.org/images/Argentum2025.pdf Aslanyan, M. (2021). Trends and predictions for the senior care industry in 2021. https://www.forbes.com/sites/forbeshumanresourcescouncil/2021/02/19/trends-andpredictions-for-the-senior-care-industry-in-2021/?sh=7db277aa57ed Bowblis, J. (2012). Market structure, competition from assisted living facilities and quality in the nursing home industry. https://onlinelibrary.wiley.com/doi/full/10.1093/aepp/pps006?casa_token=d9kD4Vm9Xo kAAAAA%3AsHjJehyeUFINFhf4QcC6Mo5oDmEvQ67J7JqPQN8ExpetShPlskZagZXf AgEZaDXHXkgMiJIexzQl9w Caring.com (n.d.). Find senior care & senior living options near you. https://www.caring.com/senior-living/california/bonita/vintage-home-and-residentialcare-91902#description Faranda, W. & Schmidt, S. (2000). Segmentation and the senior traveler: Implications for today's and tomorrow's aging consume. https://www.tandfonline.com/doi/citedby/10.1300/J073v08n02_02?scroll=top&needAcce ss=true ISSUU (2013). Vintage home and residential care business plan. https://issuu.com/thestartupgarage/docs/vintage-home-and-residential-careb_cd968e90a9a6c5/15

19 Minnesota Department of Health (2020). Long-term care contingency staffing plan (TEMPLATE). https://www.health.state.mn.us/communities/ep/ltc/ltccstemplate.docx Wood, L. (2021). Global elderly care products and services market report 2020: Market size was $832.8 billion in 2019 - Forecast to 2025 - ResearchAndMarkets.com. https://www.businesswire.com/news/home/20210113005662/en/Global-Elderly-CareProducts-and-Services-Market-Report-2020-Market-Size-was-832.8-Billion-in-2019--Forecast-to-2025---ResearchAndMarkets.com

20 Appendices Appendix A Indirect Competitors R3N Harmony Home & Residential Care

Roy Salvador 8915 Bender Ave., Glendora, CA 92456

Los Angeles, CA 38469

Los Angeles, CA 23456

Los Angeles, CA 78641

21 Appendix B Direct Competitors R3N Harmony Home & Residential Care Roy Salvador

Glendora, CA 74523

Los Angeles

Glendora, CA

Glendora, CA 43875

Los Angeles

Glendora, CA 74086

Los Angeles

Los Angeles