Jenna Saville

Y.N.O.T.
324 Pine Street
Wichita, Kansas 67203
(316) 420-7698

Sarah Johnston
Kansas Credit Union & Trust Company
616 State Street
Wichita, Kansas 67200

March 12, 2006

Re: Financing Request

Dear Ms. Johnston:

Thank you for your interest in seeing the plan for my business, which will provide non-medical
homecare for the elderly. I think we are a good fit with the credit union’s stated mission to
encourage Kansas entrepreneurs to create local businesses that are not only profitable but also
help society.

I have raised $15,000 in start-up capital for my business, Y.N.O.T., and am seeking a 10-year
loan for an additional $10,000. The company name, Y.N.O.T., is an acronym for “Your Needs,
Our Tasks.” Our mission is to provide affordable non-medical homecare services that support
independence, by providing assistance to elderly and homebound individuals.

In Kansas there are currently 359,000 individuals age 65 and older, and in the year 2030 that
number is expected to reach 605,000. Social changes in family size, and the number of women in
the workforce, have affected the ability of informal caregivers to provide care for their elderly
family members. Therefore, Y.N.O.T. is available when these informal caregivers cannot be.

Our competitors include home health care providers and independent providers. Unlike home
health care providers, Y.N.O.T.’s services will not require a doctor’s prescription. Unlike
independent providers, Y.N.O.T. will focus not on one or two specific services, but on a broad
range of services. Y.N.O.T. will have a competitive edge in the areas of heavy housekeeping,
education, and entertainment services. We do not require a minimum number of hours of service
for each visit, which allows our services to remain affordable for the client who requires only one
or two hours of service per visit. We also have the flexibility to meet the changing needs of the
client, whereas a franchise organization is often unable to do so.

My business plan is attached. If you have any questions, please contact me at (316) 420-7698.

Sincerely,

Jenna Savile

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 Inside:
Executive Summary
Business Description
Management and Employees
Operations and Suppliers
Marketing Plan
Competition
Financing Request
Business Financial Statements
Personal Financial Statement
Financial Ratios
Break-Even Analysis

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 Exit Strategy
Appendix: Services Offered

CONTENTS

1. Executive Summary

2. Business Description

3. Management and Employees

4. Operations and Suppliers

5. Marketing Plan

6. Competition

7. Financing Request

8. Business Financial Statements

9. Personal Financial Statement

10. Financial Ratios

11. Break-Even Analysis

12. Exit Strategy

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 EXECUTIVE SUMMARY

Business Description
Stop and think about some of the activities that occur in a typical day. Simple everyday duties
such as going to the grocery store or cleaning in and outside the home may seem routine to many
individuals. Unfortunately, for the elderly and homebound, these somewhat simple tasks can be a
burden and often cause the individual to be forced into a care home. Through the non-medical
homecare services Y.N.O.T. provides, elderly individuals in the Wichita area are able to remain
independent in their place of residence.
This century will see an increase in the size of the elderly population as the large baby boom
generation ages. From 2010 to 2030, the number of baby boomers age 65 to 84 will grow by an
estimated 80%, while the population 85 and older will grow 48%. While most elderly people are
not disabled, the likelihood of needing long-term care services increases with age. In Kansas
there are currently 359,000 individuals age 65 and older, and in the year 2030 that number is
expected to reach 605,000. Social changes in family size, and the number of women in the
workforce, have affected the ability of informal caregivers to provide care for their elderly family
members. Therefore, Y.N.O.T. is available when these informal caregivers cannot be.
Y.N.O.T. strives to maximize the needs of their clients while minimizing their tasks. We find that
these services will appeal to two market segments, one being elderly individuals aged 65 and
older who are limited in their daily activities and the other being the children of those elderly
individuals. Our services will be individualized to meet the specific needs of each client and will
also be distinguished from the competition through our offering of heavy housekeeping,
education, and entertainment services. When these individuals and family members become
aware that they are no longer able to do the things to remain in their home, we will respond to
them by asking, “Y.N.O.T.? ”
“Y.N.O.T., Non-Medical Homecare Services.” “Y.N.O.T.” is an acronym for “Your Needs, Our
Tasks.” This name creates a non-threatening and memorable way to relate the needs of the clients
to the services we provide. Those services are described in detail in Appendix: Services Offered.

Business Contact Information

Y.N.O.T.
120 Water Street, Suite 204
Wichita, Kansas 67203
Fax: (316) 222-7658

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Owner
Jenna Saville
Y.N.O.T.
324 Pine Street
Wichita, Kansas 67203
(316) 420-7698

Social Security Number: XXX-XX-XXXX

Experience: (Describe owner’s experience that would be relevant to his/her ability to operate this
business.)

Professional Relationships
Accountant: Gerald Banks, C.P.A. (316) 552-7968
Banker: Sheila Johnson, Bank of America (316) 776-8000
Insurance agent: Hugh Bracken, State Farm (specialty, small business) (316) 882-6750
Attorney: Danny Saville, Esq. (316) 220-5647

Advisory Board:

 Bill Manness: C.E.O. of Syndeo Outsourcing and B.G.M. Marketing, who is an expert in
human resource management and marketing strategies for the service industry
 Sandra Schubert: Active elderly caregiver and senior volunteer
 Danny Saville: C.E.O. of Justice Suites and practicing attorney

Legal Status: Y.N.O.T. will register as a single member Limited Liability Company, whose sole
member will be Jenna Saville.

Purpose: Y.N.O.T. provides affordable services for elderly individuals or couples who wish to
remain independent, but who require non-medical assistance to live in their homes.

Status: Y.N.O.T. is a start-up that will begin operations January 2007.

Business Type: Y.N.O.T. is a service business.

Products/Services: Y.N.O.T. provides six categories of services:

 Personal care • Light housekeeping

 Supervision • Heavy housekeeping
 Companionship • Transportation

Services are available to individuals age 65 years and older who are limited in their daily
activities.

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Reasoning: Heavy housekeeping services are needed in this market as individuals begin to
realize the tasks they are unable to accomplish in their home. Simple tasks such as hanging up a
picture or moving furniture, however, are considered heavy maintenance tasks by most homecare
service providers. Many organizations have their employees sign contracts that specify the
services they are able to provide. The small tasks that many individuals think of as a routine
home maintenance, therefore, cannot be completed until a family member is called for
assistance. Y.N.O.T. finds that this service should be offered among the other available services,
as well as many other heavy housekeeping services an individual may need.

Goals
1. Obtain a minimum of 100 clients within three years of operation.
2. Increase the average number of months clients are able to remain in their homes by 5%
during the first year of operation.
3. Achieve a 15% increase in the number of hours of services provided by the end of the
second year of operation.
4. Earn 10 referrals from local hospitals, churches, and senior centers in the first year of
operation.

Industry Trends/Outlook
Over the past two decades, the elderly population has grown twice as rapidly as the rest of the
population. The Administration on Aging states that people age 65 and older currently represent
13% of the population and are expected to grow to be 20% of the population in 2030 (AOA,
2000). In 2011, the baby boomers will begin to turn 65, and by 2030, it is projected that one in
every five people will be 65 years of age or older. In Kansas, there are approximately 359,000
persons age 65 and older, and this number is expected to expand to 605,000 persons by the year
2030 (C.O.A., 2004). These projections indicate that the elderly population expects to double
over the next 30 years, reaching almost 70 million individuals. The most rapidly growing age
group are those individuals age 85 and older, which is expected to double from 3.9 million to 8.5
million from 2000 to 2030. However, the most astonishing fact occurs in the year 2050, when the
number of older individuals in the world will exceed the number of young individuals for the
first time by reaching approximately 18 million individuals (K.D.O.A., 1999).
As the number of elderly individuals increases, the number of individuals who previously
provided the care they require will decrease. National data shows that the majority of care
provided to adults to prevent or postpone the need for nursing homecare comes from family
members and friends (Federal Forum, 2001). A 1996 survey done by the National Alliance for
Caregiving and the AARP indicated that 22.4 million U.S. households are involved in caring for
an elderly relative (N.A.C. & A.A.R.P., 2001). That number accounts for almost a quarter of the
population, which is three times the number that was found in the survey that was conducted in
1987. However, as more women enter the workforce and children move away from home, the
homecare service provider will assume the responsibilities that were previously managed by
families.
The primary caregivers of dependent individuals typically are women and, as more become part
of the workforce, the number of caregivers available to elderly individuals to provide unpaid
homecare reduces. Statistics indicate that 72% of current caregivers are women, 29% are
daughters, and 23% are wives (N.A.H.C., 2000). By 2010, as the baby boomer generation

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reaches old age and begins to require assistance, the number of women available to provide basic
services will be dramatically smaller than today. Therefore, it becomes increasingly important to
develop an availability of paid service providers while also supporting the remaining informal
caregivers who are still available to provide the level of care that is needed.
The U.S. Census reports that women will have a longer life expectancy than men and continue to
outnumber them in the future (Census, 2004). However, women are considerably less likely to
have an adequate retirement income than men, so most homecare service recipients are elderly
women. The 2002 statistics for Kansas indicate that there are 37,158 women age 85 and older
while there are only 14,612 men age 85 and older (C.O.A., 2004). The average age of homecare
service recipients is currently 80.5 years. This number will remain stable over the next two years
and gradually increase with the extended life expectancies.
One group of elderly individuals who will be most likely to need formal services are those that
live alone and have no living children or siblings. For the state of Kansas, the 2000 Census states
that 105,689 Kansans age 65 and older are living alone and that 77% of those individuals are
women (Census, 2004). NAIC researchers have estimated that 1.2 million people age 65 and
older will live alone in 2020. The 288,000 people who are age 85 and older and live alone
without close family nearby are the most likely candidates for homecare services (K.D.O.A.,
1999).

Business Schedule
Business operations for Y.N.O.T. will begin in January 2005. Y.N.O.T. will distribute services by
being available whenever the need arises for assistance in the client’s home. This allows the
services to take place exactly where the care is needed. Y.N.O.T. will not dictate when to
schedule the services, but rather the client will. We will adjust to those schedules so that each
client is able to remain independently in his or her own home.

Seasonality in Transportation
The Association on Aging states that more elderly individuals get out of their homes during the
months of late spring to early fall (A.O.A., 2000). Therefore, they will require fewer hours of
service during the winter months of January and February, where there is an average of 3 hours a
month. There is an increase to 4 hours of service during the month of March and yet another
increase to an average number of 5 hours of service needed for the beginning of the spring
season in April. The average number of hours needed for transportation services remains at 5
hours through September and will experience a decrease to 4 hours in the month of October.

Seasonality in Heavy Housekeeping

Lawn and garden care are more frequently needed in the late spring, summer, and early months
of fall. These are also the months where more maintenance and home up-keep is required, which
is typically 5 hours a week or 20 hours a month. Through the winter months there is expected
service due to snow and other heavy maintenance needs, but there will be significantly fewer
hours of service provided than during the summer months. During the months of November to
January there is an expected average of 2 hours a week, or 8 hours a month. During the months
of February to May there is an expected average of 1 hour a week, or 4 hours a month.

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 MANAGEMENT AND EMPLOYEES

Y.N.O.T.
L.L.C. (service)

Management

 Jenna Saville: CEO/President

o Double major in Entrepreneurship and Economics from Wichita State University

 Daniel Marceau: COO/IT Coordinator

o Double major in Management and Financial Economics from Wichita State

University

 Michael Saville: CFO/VP of Finance

o Certified Public Accountant with a Bachelor’s and Master’s degree in Accounting

and 20 years of experience in the field.

Wages for executive management are based on a rate of $40,000 during the first year for three
executive members. During the initial months of operation, management will not receive any
wages in order to allow for a positive cash flow. Their wages will begin during the third month of
operation. In the second year, the wages of the top three executives will increase to $45,000 per
year, and a fourth manager will be brought on board at $40,000 per year. In the third year of
operation, the top three executive members will receive $50,000 per year, and the fourth manager
will receive $45,000 per year.

Employees
Present and Future Personnel Needs:
Y.N.O.T. finds that as we grow throughout the first year and obtain more clients, we will need to
have available more employed caregivers to provide those services. Research states that the
average caregiver is 57 years old and female, but Y.N.O.T. will not only be hiring caregivers of
this age group and gender (N.A.H.C., 2000). We will need and require caregivers of both the
younger and middle-aged generation of males and females to provide the variety of services we
offer. Locating the potential caregivers will not be as difficult as matching each client to an
available caregiver, because Y.N.O.T. plans to recruit caregivers in the same locations that we
look for potential clients. These locations include the senior centers, hospitals, and churches.
Many individuals enjoy spending time with and helping elderly individuals, and the fact that they
will be paid to provide those services only makes the recruiting that much easier.

7
The individuals who will be employed to provide the level of care our clients require are those
individuals who we would feel comfortable sending to our own parents or grandparents’ homes.
Common characteristics of our caregivers include the following:

 Range in age from 18–60 years old.

 Each caregiver works for our company because he or she enjoys helping others.

 Each caregiver has undergone a thorough criminal background check before being
hired.

 Each caregiver has a current driver’s license with liability insurance, a safe driving
record, and a properly maintained vehicle in safe operating condition to transport any
individual.

 Each caregiver has gone through extensive training to prepare for all reasonable
contingencies.

 Each caregiver is bonded and insured.

The employed caregiver becomes like a surrogate family member. A level of trust and friendship
develops between the client and the caregiver, therefore bringing an end to the fear of
manipulation that many elderly individuals have. More information is also relayed to the
caregiver regarding the specific way the client would like his or her tasks completed. The
caregiver wages will be as follows:

Type of Service Hourly Wage

Personal and Light Housekeeping $7.50/Hour

Heavy Housekeeping $10.00/Hour

Transportation $6.50/Hour

Mileage Fees $.37/Mile

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 OPERATIONS AND SUPPLIERS

Operations

Service: The services of Y.N.O.T. allow individuals to remain in familiar surroundings and retain
their current lifestyle. In most cases, remaining at home offers individuals freedom to continue
the activities that have always provided them with a sense of both independence and belonging.
Clients are able to attend religious services and social events, receive visits from family and
friends, and do things in the way and place they always have.

We are an affordable solution for elderly individuals or couples who wish to remain independent
but who require non-medical assistance to live in their homes. These services can be arranged as
a short visit of less than one hour or for as many as 24 hours a day. Y.N.O.T. focuses on clients
by helping them determine what is needed for them to maintain as normal and independent a
lifestyle as possible within their homes. We will keep that focus during the entire relationship
with the client through a four-step process for determining the services they want and need. The
determination of services process includes the following steps:

1. Assessment: An in-depth evaluation to assess the client’s ability to function around

the house.
2. Planning: Details the level and frequency of the services to be provided.

3. Monitor services: Y.N.O.T. will keep in touch with the client to continuously monitor
the quality of care being provided.

4. Reassessment: The needs of the client are going to change over time and so will the
level of services being provided. Therefore, the services being provided will be
periodically evaluated to ensure that all of the client’s needs are being met effectively.

Facilities: We will grow from 10–20 employees to 50–100 employees within three years. We
will lease a 250-square-foot office building downtown at 2nd and Water in Wichita, Kansas.

Insurance:
Y.N.O.T. will obtain the following insurance policies:

 Professional liability insurance

 General liability insurance
 Non-owned auto insurance
 Fidelity bond insurance
 Workers’ compensation
 Business property insurance

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Service Distribution:

The average client receives 30 hours of care a week, which is 120 hours a month (C.O.A., 2004). This is how those
hours are distributed among our available services:

Type of Service Average Hours/ Average Hours/ Hourly Rate

Week Month

Personal and Light 24 Hours/Week 96 Hours/Month $12.50/Hour

Housekeeping

Transportation 3 Hours/Week 12 Hours/Month $10.00/Hour

Average Miles 15 miles/3 Hours a 60 Miles/12 Hours a $.40/Mile

Traveled Week of Month of
Transportation Transportation

Heavy Housekeeping 3 Hours/Week 12 Hours/Month $14.00

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 MARKETING PLAN

Slogan: “Your needs, our tasks, Y.N.O.T.? ”

Market(s): While most elderly individuals are not disabled, the likelihood of them needing
assistance in their daily lives increases with age. The type of care and assistance needed is not
medical care but supportive care, and it does not require the use of a nursing home. Y.N.O.T. will
appeal to two demographic segments found in the Wichita, Kansas region. A major determinant
of the market for long-term care is the extent to which future generations of elderly individuals
will be able to afford these services. Future long-term care perceptions are expected to influence
the way baby boomers prepare financially for the care they will require. A National Council on
Aging survey reports that 48% of their respondents have done little or no long-term care
planning (N.A.H.C., 2000). Our current state and federal policies require that people pay the full
cost of their long-term care needs until they have no available financial resources. Therefore, it
becomes obvious that many individuals are unaware of their options in regards to financially
preparing for long-term care that might be needed in the future.

Many individuals may begin planning for their retirement early in life, but few plan for their
long-term care needs. Companies have begun to implement the option of long-term care
insurance into their benefits plans, but few individuals know much about the offering and what it
entails (Cohen, 2000). Therefore, Y.N.O.T. offers future planning information to all individuals,
regardless of a person’s age. This information will be made available in an online format,
continuously updated with forum options available for questions, comments, or suggestions for
all to see. We find that this information is needed and not currently made available by the
homecare service providers, even though it is an important issue that all businesses will soon
face.

1. The Potential Customer: Middle class individuals aged 65 and older who have at least
one limitation in performing the activities of daily living. The 2002 median household
income of individuals aged 65 to 74 is $31,565, while for individuals age 75 and older it
is $22,189 (Census, 2004). The fastest-growing age segment among elderly individuals is
those aged 85 and older and currently require the most assistance. In Wichita, there are
currently 7,307 individuals in that segment, and this number will increase substantially as
the baby boomers get older (Census, 2004).

2. The Family of the Potential Customer: There are 46,914 households with people age 65
and older living in them in Wichita, Kansas and among those households, 21,255
individuals are living alone (Census, 2004). Y.N.O.T. understands that today’s busy
lifestyles often deprive family members of the time necessary to provide assistance for
their loved ones. Y.N.O.T. will be available when they cannot be and provide the care
needed for those individuals.

.
Geographic Scope: Wichita, Kansas, and surrounding suburbs

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Buyer Profile: Y.N.O.T. finds that the market of potential customers is best segmented by the
ages of the individuals being served. The market for Y.N.O.T. is segmented as follows:

Market Analysis
Potential Customers Growth 2004 2005 2006 2007 2008 CAGR
Individuals Age 60–74 2% 32,567 33,218 33,882 34,560 35,251 2.00%
Years Old
Individuals Age 75–84 2% 21,674 22,107 22,549 23,000 23,460 2.00%
Years Old
Individuals Age 85 Years 4% 7,307 7,599 7,903 8,219 8,548 4.00%
and Older
Total 2.24% 61,548 62,924 64,334 65,779 67,259 2.24%

Product: Non-medical Homecare for the Elderly

Y.N.O.T. will provide a continuum of services for elderly individuals that complement and
enhance support. This entails quality services to all clients, so that they are able to maintain
maximum independence and optimum quality of life while in their own home.

 Benefits: Through the non-medical homecare services Y.N.O.T. provides, elderly

individuals in the Wichita area are able to remain independent in their place of residence.

 Differentiation: Unlike home health care providers, Y.N.O.T.’s services will not require
a doctor’s prescription. Unlike independent providers, Y.N.O.T. will focus not on one or
two specific services, but rather on a broad range of services. Y.N.O.T. will have a
competitive edge in the areas of heavy housekeeping, education, and entertainment
services. We do not require a minimum number of hours of service for each visit, which
allows our services to remain affordable for the client who requires only one or two hours
of service per visit. We also have the flexibility to meet the changing needs of the client,
whereas a franchise organization is often unable to do so.

12
Price

Y.N.O.T. will implement a pricing scheme based on the anticipated number of hours per session. The categories of
services and the rates for those services are as follows:

Category Rate

Personal and Light Housekeeping Services $12.50/Hour

Heavy Housekeeping Services $14.00/Hour

Transportation Services $10.00/Hour

Mileage Fee $.40/Mile

Economics of One Unit (One Week of Services)

Service Revenues: Avg. Hours Hourly Rate Total
Personal and Light Housekeeping Services 24 $12.50 $300
Heavy Housekeeping Services 3 $14 $42
Transportation Services 3 $10 $30
Mileage Fees 15 $0.40 $6
Total Revenue $368

Cost of Services:
Personal and Light Housekeeping Services Wages 24 $7.50 $180
Heavy Housekeeping Services Wages 3 $10 $30
Transportation Services Wages 3 $6.50 $19.50
Caregivers Mileage Fees 15 $0.37 $5.55
Cleaning Supplies $2.00 $2.00
Total COGS $237.05
Contribution Margin (Gross Profit) $140.95

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Place: We will grow from 10–20 employees to 50–100 employees within three years. We will
locate in a 1250-square-foot office building downtown at 2nd and Water in Wichita, Kansas. This
location is in the heart of Wichita and allows for easy travel to all locations.

Promotion

Services of Y.N.O.T. are marketed through the following four-pronged approach:

1. Brochures and flyers: Members of our target market can obtain these in various senior
centers, hospitals, and churches in the Wichita area.
2. Website: This communication channel is detailed in the Web Plan section of the
marketing plan.

3. Strategic Alliances: Y.N.O.T. will develop strategic relationships with local churches,
senior centers, and hospitals in the Wichita area. Both organizations will benefit from the
use of each location’s customer base and individual offerings. We are then able to refer
our clients to these organizations’ services if we do not provide them, and they are able to
do the same.

4. Referrals: This is one of our strongest areas of promotions in that our clients are going to
communicate to their friends about issues and concerns in their life. The feedback we
obtain will allow for continuous improvement and more positive client feedback and
satisfaction.

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 Marketing Plan
Element of Marketing Start Date End Date Budget Manager Department
Search Engine and Website 6/30/2004 7/15/2004 $0 Danny Web
Evaluation and Listing
Focus Group Website 8/1/2004 8/10/2004 $20 Jenna Marketing
Discussion
Website Launch 9/15/2004 10/15/2004 $400 Danny Web
Flyers Distribution 10/30/2004 12/30/2004 $100 Jenna Marketing
Tri-fold Brochure 10/30/2004 12/30/2004 $300 Jenna Marketing
Distributions
Phone Book Listing 7/1/2004 7/30/2004 $240 Jenna Marketing
Senior Centers 2/30/2005 3/15/2005 $0 Jenna Marketing
Churches 3/30/2005 4/15/2005 $0 Jenna Marketing
Hospitals 4/30/2005 5/15/2005 $0 Jenna Marketing
Postcard Distributions 6/1/2005 8/1/2005 $100 Jenna Marketing
Client Focus Group on 12/1/2005 12/15/2005 $20 Jenna Marketing
Current and Possible
Services
Business Cards 12/1/2004 12/30/2005 $30 Jenna Marketing
Totals $1,210

Website Marketing Strategy:

Y.N.O.T. has a website strategy that will focus on communication in providing the most current
and useful information to the two segments of our target market. In society today, people over
the age of 60 comprise the fastest growing segment of the estimated 80 million online users in
the United States. They have the time to use the Internet, and as they become homebound, they
are able to stay connected to what is occurring in the rest of the world. As these individuals
become more independent, they are better able to realize the additional support they require in
order to remain independent in their surroundings.
These elderly individuals will not be the only ones to make use of this availability, but so will the
other segment of our target market, their families. These individuals will also be able to post
references, letters, and questions regarding their issues or areas of concern for their elderly
family members. Through this website offering we will be able to receive emails, inquiries, and
allow access to forums to ensure effective communication with families and clients.
The National Library of Medicine states that “Good information is the best medicine for older
adults. Web site designers can help seniors find answers to their medical questions and support
answers from the comfort of their own home” (Holt, 2000). The information is not being forced
upon them but rather is available when they wish to make use of it. This is important for many
elderly individuals because so many believe that those who try to provide support or assistance
are only trying to manipulate them. The information we provide is important for them to read and
understand and may also make seeking homecare assistance much easier.
The communication strategy for the website provided by Y.N.O.T. will focus on three principles:

15
 1. Opportunity: Allowing individuals the ability to obtain the required and important
information needed for their lifestyle.
2. Motivation: The ability to apply the education and information obtained from our
website to their lifestyle and future needs.

3. Fulfillment: The feeling of success or happiness by individuals, in knowing that the

information was applied and promotes a long life of happiness while allowing them to
remain independent in their homes.

The Y.N.O.T. website will be developed during the first month of operation by an internal
employed Internet Technology Website Designer. This individual will maintain the website on a
full-time basis, which will include all research, advertising, and maintenance.
The National Institute on Aging and the National Library of Medicine has developed a set of
“senior friendly” guidelines that are specific to the older adult Internet user. These guidelines will
be incorporated into the design and up-keep of our website offering (Adler, 2002). The research
in aging, cognition, human factors, and print materials leads to the development of guidelines
covering three areas of design:

1. Designing readable text

2. Increasing memory and comprehension of web content

3. Increasing the ease of navigation

Website characteristics include the following:

 The font will be a sans serif typeface, in size 12 or 14 points for the body of the text, with
a medium or boldface type.
 The body of the text will be in upper and lowercase letters, while the headlines will use
all capital letters and italics.

 Underlining will only be used for links, so that the user can more easily identify which
are links to another page and actual text.

 The body text will be double-spaced.

 A dark color will be used for all text and graphics against a light background, such as
black lettering on white background. There will be no patterned backgrounds or colors
such as yellow, blue, and green in close proximity.

 The same symbols and icons will be used throughout our entire website offering to make
navigation simple and common in all locations associated with our site.

COMPETITION

16
Elderly individuals seek homecare service providers for two main reasons:

1. The individual has reached a point where he or she requires some assistance with the
daily tasks of living; without this assistance, a tremendous amount of stress is placed on
the individual and his or her family.

2. The individual has been told or recommended by a healthcare provider to seek assistance
or move to a Long-Term Care Facility. Many individuals often resort to an Assisted
Living or Long-Term Care facility because they are unaware of their options and have not
adequately planned for their future.

In the areas of competition, Y.N.O.T. finds that it has four types of competitors:

1. Individuals: There are still some individuals who are homecare providers for their
family members, but this competitor is a shrinking market segment.

2. Homecare providers: The majority of these providers are nation-wide franchise

organizations under the control of their franchiser and bound by contract in the services
they offer. These companies lack the flexibility to respond to changing needs or
additional requests by the client unless it is agreed upon by their franchisor. These
providers do not provide any heavy housekeeping services and require a minimum
number of hours of service with each visit. A minimum of more than two hours is not
necessary for some of the required services and is often a reason why elderly individuals
do not seek in-home assistance.

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The following organizations are found within this segment of competition:

Business Name Strengths/Weaknesses

Strengths: Known nation-wide for their services; free public informational

seminars on elderly related topics; use of a sliding scale of rates to focus
on more services at a lower price per hour.
Comfort Keepers
Weaknesses: Requires a minimum of two hours of service per visit; high
rates for a few hours of service; double rate for holidays; Mileage fee of
$.55 per mile.
Strength: Strong focus on companionship with the client.
Right at Home
Weakness: Requires an initial face-to-face meeting before any information
on services and rates will be released to the client.
Strengths: Includes medical reminders; specializes in short visits with
clients and willing to stop by their home up to five times a day; homecare
services include therapy programs.
Saint Raphael
Home Care, Inc. Weaknesses: Employs medical staff to perform homecare services and
charges a higher rate for their availability; homecare services do not
include respite care or transportation services.
Strengths: Known world-wide for their services; strong emphasis on the
continued education of their employees through training seminars;
Alzheimer’s care program.
Home Instead
Senior Care Weaknesses: Minimum of three hours of service per visit; high rates for
holidays and more than 12 hours of service per visit.
Strengths: Known world-wide for their services; affiliated with Kelly
Staffing, a company that provides temporary employees when they are
needed.
Kelly Home Care
Services Weaknesses: Services are not targeted toward elderly individuals but those
with disabilities and health problems; employs registered nurses for all
non-medical services.
Weaknesses: Focuses on rehabilitation and short-term services for sick
individuals; employs registered nurses for non-medical services; requires
an initial assessment before rates and company information can be
Progressive Home discussed; homecare services do not include respite care or transportation
Support Services services.

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 3. Home Health Care Providers: These organizations focus on the availability of
health care services provided by a registered nurse with an emphasis on assistance in
medical needs. The major difference between these organizations and those of
traditional homecare service providers is the doctor’s order required for these services
to be provided.

The following organizations are found within this segment of competition:

Business Name Strengths/Weaknesses

Strength: Affiliated with Kelly Homecare and Kelly Staffing Services.

Weaknesses: Requires a doctor’s order to begin an assessment; each

client is assigned a specific case manager; no available light
housekeeping, transportation, or respite care services available to
Advantage Home clients; if these are needed, Kelly Homecare will provide those
Care, Inc. services; a registered nurse will provide all services to the client.
Strengths: Employees are trained in hospice care; sliding scale of rates
to promote more hours of service at a lower rate.

Afford-A-Care, Inc. Weaknesses: Focuses on a trained medical staff who provides all
services required by the client; requires a minimum of four hours of
service per visit.
Strength: Affiliated with Caring Hearts of Wichita, which focuses on
Loving & Caring health care services.
Hearts of Wichita
Weaknesses: Requires a doctor’s order before an initial assessment can
take place; employs registered nurses for all services required by the
client; does not provide any transportation services.
Strength: Home health services and hospice services are combined or
Total Homecare & kept separate for each client’s scenario.
Hospice
Weakness: Employs registered nurses for all services required by the
client.
Strength: Homecare services work hand-in-hand with their medical
Blessed Home health services.

Weakness: Strong emphasis on religious associations.

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 4. Independent Providers: These providers tend to focus their services on one specific
area of the general services Y.N.O.T. makes available for their clients. Therefore,
these organizations are also considered indirect competitors in that they provide the
services we make available but as a single service rather than a combination of
services. Many of these organizations are also non-profit or are only available at
specific times and places during the year.

The following organizations are found within this segment of the competition:

Business Name: Strengths/Weaknesses:

Strengths: Affiliation with Wesley Hospital;

employs full-time professionals for transportation
services.

Weaknesses: High transportation rates; only

Senior Friends Medical Transportation transports the client to Wesley Medical Center.
Strengths: Affiliation with the United Way
Foundation; includes four segments of services
within their business: Meals on Wheels
(volunteers deliver daily meals to those who
cannot prepare their own), Neighborhood
Connection (volunteers are matched with low-
income individuals who require light chore
assistance in the home), Roving Pantry
(volunteers take telephone grocery orders and
deliver them to the customer’s home), and Retired
Senior Services of Wichita and Senior Volunteer Program (elderly
individuals are matched with volunteer
community work for local non-profit agencies).

Weaknesses: Services are not available on an on-

going basis; for services to be provided, elderly
individuals must meet specific qualifications.
Strengths: Affiliation with Riverside Health
Systems; volunteers provide supportive person-
to-person services.
Senior Companion Program
Weakness: Services are provided to individuals
with mental, physical, or social needs.

Competitive Strategy: The Y.N.O.T. competitive strategy is to develop and maintain an edge
over the competition in the areas of heavy housekeeping, education, and entertainment services.

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To carry out this strategy, Y.N.O.T. will use the following tactics:

 Unlike home health care providers, Y.N.O.T.’s services will not require a doctor’s
prescription.

 Unlike independent providers, Y.N.O.T. will focus not on one or two specific services,
but rather on a broad range of services.

 Y.N.O.T. will not require a minimum number of hours of service for each visit, which
allows our services to remain affordable for the client who requires only one or two hours
of service per visit.

 Y.N.O.T. will have the flexibility to meet the changing needs of the client, whereas a
franchise organization is often unable to do so.

Mission Statement: Y.N.O.T. will provide affordable non-medical homecare services that
support independence, by providing assistance, to elderly individuals.

Vision Statement: To create happy moments and smiles by helping the elderly remain
independent.

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 FINANCING REQUEST

Loan Requested: $10,000

Owner Investment: $15,000
Total: $25,000

Use of Funds

Item Quantity Cost

Leasing office space First month’s rent plus security deposit (lease covers gas, electric, and $4,000
water utilities)

Minor remodeling of office Building cubicles, flooring, etc. $2,000

Obtaining city, county, and LLC registration for sole owner. $500
state licenses Trademark/servicemark registration.

Insurance Deposit for liability and bonding $1,500

Office equipment 3 computers, 1 laptop, copier/printer, fax machine, phones $2,000

Office furniture (to be Desks, chairs, etc. $1,200

purchased from estate sales)

Household cleaning supplies Enough for first month of operations $600

Phone, Internet, web hosting Purchased from Cox Communications and supplied on a monthly basis. $300
services Two phone lines for the first month with free installation at $23.99 per
line.
Cable modem for Internet installation will cost $49.50.
Labor and cable connection installation will cost $199.99.

Advertising and promotions Several flyers, brochures, signs, and meetings with churches, hospitals, $100
and senior centers.

Professional and legal fees $500

Employee training seminars Seminars will supply the needed training for executive management to $500
understand the business in all aspects. These seminars will also provide
the information needed to begin a training program for the employees, if
needed.

Total Startup Investment $13,100

Cash Reserve $11,900

Total Startup Investment + Cash Reserve $25,000

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Collateral

I can secure the loan with $2,000 I have invested in stocks and bonds; with my car, valued by my insurer
at $10,000; and the equity in my condo in downtown Wichita, valued at $120,000.

Investments (stocks and bonds): $2,000

Car: $10,000 (appraised insurance value)
Equity in Real Estate: $60,000 (equity in $120,000 condo with $60,000 remaining on
mortgage)

Total Collateral: $72,000

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 BUSINESS FINANCIAL STATEMENTS

Please see attached Excel files for:

o Projected income statement
o Projected cash flow statement
o Projected balance sheet

Projection Assumptions

Forecasted sales are based on the expected number of clients each month and the average hours
of services each client will require during that month. Y.N.O.T. expects to begin its first month
setting up the business and actively marketing the services we will make available to our target
marketing. The second month of operation will begin with two initial clients and then grow to
five clients in the third month. Through the end of the year we expect to gain five clients a month
and end the first year with 50 clients. Sales will increase as the months pass due to the increase in
clients and the number of hours of service required by those clients. Y.N.O.T. expects to then
grow its personal and light housekeeping hours of service at 10% and the heavy housekeeping
and transportation services at 5% in the next two years.

Cash Flow Assumptions

Investments:
 The owner will contribute $15,000 start-up capital in the first month. The capital was
obtained from family contributions and will be paid back at the end of the fifth year of
operation.
 A 10-year 6% annual loan will be established, and payments on principal and interest will
begin in January of the first year.

Revenues:
 These figures were taken directly from the sales forecast spreadsheet.
 The revenues obtained from mileage fees are based on a rate of $.03 per mile driven in
the caregiver’s vehicle.

Direct Expenses:
 Wages for all light housekeeping and personal care services are based on a rate of $7.50
per hour. The number of hours of service for all wages were obtained from the sales
forecast.
 Wages for heavy housekeeping services are based on a rate of $10.00 per hour.
 Wages for transportation services are based on a rate of $6.50 per hour.

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  Mileage reimbursement is based on a rate of $.37 per mile driven in the caregiver’s
vehicle.
 Cleaning and heavy maintenance supplies are purchased from a wholesale distributor and
fluctuate with sales.

Indirect Expenses:
 Rent and utilities are paid through a monthly lease of $1,000.
 Wages for executive management are based on a rate of $40,000 during the first year for
three executive members. During the initial months of operation, management will not
receive any wages in order to allow for a positive cash flow. Their wages will begin
during the third month of operation. In the second year, the wages of the top three
executives will increase to $45,000 per year, and a fourth manager will be brought on
board at $40,000 per year. In the third year of operation, the top three executive members
will receive $50,000 per year, and the fourth manager will receive $45,000 per year.
 Legal and professional fees are based on a stable rate of $500 per month as executives
meet on a monthly basis to ensure that all regulations and concerns are being faced.
 Business and payroll taxes are based on a combined rate of 12% of wages. The taxes
increase with the larger payroll.
 Internet and hosting utilities are paid on monthly basis through Cox at a rate of $99.95
per month. However, by also obtaining phone utilities from Cox at $23.99 per phone line
a month, we will receive a 15% off monthly discount on the Internet and hosting utilities.
 Phone utilities will include two separate phone lines, one for fax and one for phone.
These lines will be purchased at a rate of $23.99 per phone line.
 The amount of purchased office supplies correlates with sales on a monthly basis.

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 PERSONAL FINANCIAL STATEMENT

Jenna Saville
324 Pine Street
Wichita, Kansas 67203
(316) 420-7698

Social Security Number: 390-89-3214

Date of Birth: March 20, 1979
Employer name, address, contact: Manager, Lucille’s BBQ Restaurant, 230 State Street, Wichita,
Kansas 67203. (316) 375-6758

Assets
Savings Accounts $3,000
Retirement Accounts $1,200
Accounts and Notes Receivables N/A
Life Insurance, cash value N/A
Stocks and Bonds, market value $2,000
Real Estate, equity value $60,000
Automobile, equity value $10,000
Other Assets $0.00
Total Assets: $76,200
Liabilities
Residential Mortage, amount owed $60,000
Other loans $0
Unpaid taxes $0
Other liabilities $800 (credit card)
Total Liabilities $15,400

Net Worth $32,500

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 FINANCIAL RATIOS

Debt Management Ratios

Debt Ratio:
Debt-to-Equity Ratio:

Profitability Ratios

Return on Investment: %
Return on Sales: %
Payback Ratio: ___months

Liquidity Ratios

Quick Ratio:
Current Ratio:

Working Capital

$________________

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 BREAK EVEN ANALYSIS

Fixed Costs (from projected monthly Income Statement)

$_________

Gross Profit per Unit (from projected monthly Income Statement)

$__________/_____ units = $______

Break-Even Point = _____________ units

I need to sell approximately _______________ units of service per month for my business to
break even.
Given that my monthly projection is to sell ________________units per month, the business will
be able to cover its costs.

EXIT STRATEGY

My exit strategy is ______________________________________________________. This exit

strategy is attractive to my potential investors because
______________________________________________________________________________
_________________________________________________________________.

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