Are you writing a palliative care business plan? If YES, here is a sample hospice financial projection, sales cost, profit & loss statement. When it comes to starting a hospice and palliative care facility business, you should ensure that you raise enough capital to cover some of the basic expenditure 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 residential facility big enough to accommodate the number of people you plan accommodating per time, you will also need money to acquire supplies and to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay take of the daily running cost and overhead.
Table of Content
Startup Expenditure (Budget)
The items listed below are the basics that we would need when starting our hospice and palliative care facility 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 Clara Davies® Hospice & Palliative Care Center, LLC 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 Consultant – $2,500.
- The cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – ,400.
- The cost for leasing a standard and secured facility in West Palm Beach – Florida for 2 years – $250,000
- The cost for facility remodeling – $50,000.
- 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) – $50,000
- The cost for start-up inventory (stocking with a wide range of products such as toiletries, food stuffs and drugs et al) – $50,000
- Cost for the purchase of storage hardware (bins, rack, shelves,) – $3,720
- The cost for the purchase of furniture and gadgets (Beds, Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost of Launching our official website: $700
- Miscellaneous: $10,000
TOTAL EXPENSES: $436,650
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully set up our hospice and palliative care facility in West Palm Beach – Florida.
Generating Fund/Startup Capital for Clara Davies® Hospice & Palliative Care Center, LLC
Clara Davies® Hospice & Palliative Care Center, LLC is a family business that is solely owned and financed by Mrs. Clara Davies and her immediate family members. They do not intend to welcome any external business partners which is why she 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 $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 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.
Sources of Income
Clara Davies® Hospice & Palliative Care Center, LLC will ensure that 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 general inpatient care
- Providing inpatient respite care
- Providing symptom relief and pain management for patients with life-terminating illnesses
One thing is certain, there would always be people citizens with one form of life terminating illness or the other who would need the services of a hospice facility. We are well positioned to take on the available market in West Palm Beach – Florida 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 business and our resident base.
We have been able to examine the senior scare facility services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Clara Davies® Hospice & Palliative Care Center, LLC, 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: $100,000 (From Self – Pay Clients): $250,000 (From Medicaid Covers)
- Second Fiscal Year: $250,000 (From Self – Pay Clients): $500,000 (From Medicaid Covers)
- Third Fiscal Year: $500,000 (From Self – Pay Clients): $1,500,000 (From Medicaid Cover)
Providing general inpatient care
- Providing general inpatient care for a client will cost $500
- Having 500 client, it will cost $250,000
Providing inpatient respite care
- Providing inpatient respite care for a client will cost $200
- Having 500 client, it will cost $100,000
TOTAL INCOME: $350,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $50,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $50,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $50,000
- Equipment rental, repairs and maintenance – $5,000
- Restock (toiletries, food stuffs and drugs et al) – $10,000
- Credit card processing fees – $1,000
- Other miscellaneous expenses – $4,000
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.