2019 FBLA Business Financial Plan Colegio Congregación ... · Golden Age Service Business...
Transcript of 2019 FBLA Business Financial Plan Colegio Congregación ... · Golden Age Service Business...
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
2019 FBLA Business Financial Plan
Colegio Congregación Mita
Puerto Rico
Juan A. Torres
Patricia A. Blanco
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Description of business
Golden Age Service will be a business dedicated to offering entertainment and concierge services to senior citizens over the age of 60 that live in elderly home centers, by themselves or with family. Why should we develop this business? Our interest is to create a business in a secured environment and amusing where senior members can have a great time together enjoying: “trips, games, crafts, computer workshops, music, singing, dance and theater. We also wish to offer concierge services for: shopping and delivering groceries, gifts and medications and helping them plan a vacation. These services can be obtained with an annual membership payment. Different types of memberships exist to accommodate our clients’ needs. These types are:
Bronze- only includes concierge services
Silver- includes concierge services and trips
Gold – offers concierge services and full access to entertainment activities
With a minimum cost, while they stay at our facilities where they can enjoy El Rincon del Café. Since elderly residential livings have restricted outings, we offer entertainment activity centers and workshop packages. In addition, our company plans to be involved in supporting our community by sponsoring non-profit organizations and hosting activities that involve the elderly with low income.
Patricia A. Blanco y Juan Torres studied at the same high school where they developed a desire to
open their own business. Juan completed a Bachelor’s Degree in Business with a concentration in
Accounting and Patricia completed two Associate’s Degree in Entrepreneurship and in Geriatrics
Technician. They reunited while working at a living facility for senior citizens called Los Lirios. Senior
citizens in the lives of Patricia and Juan have always played an important role. Since they were kids, they
have shared numerous memories with their families. These memories and life experiences working with
the elderly has motivated them to create Golden Age Service. They want to build a business where
the administration and employees will be committed to provide services of excellent quality that will
satisfy the expectations of their clients. We work with elderly people living alone, with families,
guardians and care facilities to meet client’s requirement.
Golden Age Service will be a limited liability corporation located at Road #2 in the town
of Guaynabo, very close to the city of San Juan, Puerto Rico. We have an area of 2,000 square feet where
we will offer the services for people 60+. All of this will be done in a sophisticated and secured
environment. Our marketing strategy goals will be designed to attract a market of people 60+ in
Guaynabo, San Juan and surrounding towns. This is the metropolitan area with a growing economy and
population. 24% of Puerto Rico’s population live within and around these towns, which are our target
market and 22% of the population in these towns, are 60+ years. Another point to consider is that 20% of
the population on the island is 60+ years of age and it is expected to increase as the Baby Boomers
generation reaches that age as well. Projections from the United States Census Bureau indicate that an
there will be an increase for the 60+ age group which will represent 25.9% for 2020 of our total
population of Puerto Rico. Analyzing the age structure, we can establish that ages 65 to 74 will be in that
age group.
To successfully execute this vision, we defined an amount of $180,000.00 needed for our
investment. The business owners will contribute $25,000 ($12,500 each one). Then, the amount of
$180,000 will be requested from Popular Bank, a stable financial institution, to obtain a commercial loan
to a term of 10 years at 12% interest. This investment will be used in local improvements, to purchase
equipment, organizational costs and working capital. The owners have agreed to retain part of the profits
in the company to have funds available for future growth.
Introduction
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Company Description
Legal Form of Business .................................................................................................... 4
Mission and Vision ........................................................................................................... 4
Company Governance ....................................................................................................... 4
Location ............................................................................................................................ 5
Long and Short Term Goals .............................................................................................. 5
Operations and Administration
Business Facilities………………………………………………………………………..5
Management Personnel…………………………………………………………………..6
Workforce………………………………………………………………………………..7
Target Market
Market Defined…………………………………………………………………………..8
Size……………………………………………………………………………………….8
Growth Potential…………………………………………………………………………8
Needs………………………………………………………………………………….....9
Risks and Potential Adverse Results……………………………………………………..9
Marketing Strategies…………………………………………………………………….10
Financial Institution and Loan Request
Name and Type of Institution ........................................................................................... 10
Purpose of Loan and Amount Requested .......................................................................... 11
Itemized Planned Expenditures......................................................................................... 11
Plan for Repayment .......................................................................................................... 11
Projections Stability of the Company
Financial Statement – First Year projected and Notes…………………………………..12
Financial Statement – Three years projected...............................................................…..13
Supporting Documents
Works Cited Page ............................................................................................................. 15
Table of Contest
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Legal Form of Business
It will be organized as a Limited Liability Company (LLC) between Patricia A. Blanco and Juan
A. Torres. This type of business ownership combines several features of a corporation and
partnership such as:
The official business name will be Golden Age Service. José Villanueva, Attorney and
CPA, will be hired for legal counsel. He will serve as the registered agent and will comply with the
guidelines set forth through the Treasury Department of Puerto Rico. Our company will comply with
all federal, state and local laws and regulations.
Mission and Vision Statement
Golden Age Service will provide a personalized and efficient quality service where we
manage to please the needs of the customer beyond their expectations. We strive to support our
guests’ minds, bodies, and spirits by providing diverse recreational opportunities, social activities,
and friendly customer service. It will have a team of dynamic and qualified professional employees
dedicated to providing a fun and secure environment. We intend to become a model of excellence
in elderly entertainment centers for the residents of Guaynabo and surrounded towns.
Company Governance
As established in the agreement, Golden Age Service will be equally owned by Patricia
A. Blanco and Juan Torres. Each owner will be entitled to equal rights.
Juan A. Torres:
Bachelor’s degree in Business Administration with a major in Accounting, University of
Puerto Rico.
Supervisor in the Accounting Department, Hogar Los Lirios I, II y III for three years. His
responsibilities were preparing the budget report and financial statements.
Patricia A. Blanco:
Associate’s degree in Entrepreneurs, Metropolitan University.
Associate’s degree in Geriatric Technician, National University College.
Certificate in Coordinate Event, Sacred Heart University.
For two years, she worked as the recreational activities coordinator for three centers of
Hogar Los Lirios.
Both of them graduated from the Business Education Program from the Congregation Mita
School, where they obtained knowledge that will be useful in the administration of this business.
To promote career growth and education, the management team will create training programs.
To sustain job stability, the company’s head staff will proactively meet weekly with its employers to
discuss suggestions that improve operations and job experience. In addition, it will create policy
handbooks for the business.
Company Description
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♦ Limited liability ♦ Protect assets ♦ Flexible profit distribution ♦ Less paperwork ♦ Flow through taxation
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Location
Long and Short Term Goals
Business Facilities
The Golden Age Service facilities will be located in a leasing property that will be rented
with a monthly fee of $5,000 for three years. At the end of the third year, our business has the
priority to either renew the contract. The property is a one level cement structure with an area of
2,650 square foot, which current will be done according to ours operation and services required. The
facilities will be distributed as follows:
Operations and Management
Prior to Opening Goals
Obtain a $150,000 loan
Building renovations complete
Create a website and social media pages
Train our future employees
Develop our company policies.
Develop a promotional plan.
Sign lease agreement.
Long Term Goals
Pay off the $150,000 loan
Increase profit continually
Reducing cost due to increased production.
Purchase a building where with can expand the offers services
Expand total number employees
Have a greater amount of repeat customers than new customers
Open a second location on high populated town like Ponce.
Short Term Goals (1-3 years)
Hire additional employees.
Increase our target market by 6%
Expand entertainment and concierge services
Incentive program for customers who refer to
friends
Develop strong promotion strategies
Start process for NCoA accreditation
Golden Age Service will be located at Road
#2, Villa Caparra at Guaynabo very close to the city
of San Juan. These towns are surrounded by the other
main towns of Puerto Rico. According to the US
Federal Census, these area it has one of the highest
seniors populations of the island, including being an
area with the highest concentration of centers for
people of advanced age. This provides excellent
Golden Age Service access to potential
customers. In addition, this location is a well
traveled road, easily accessible from different regions
of the island, through Ave. Roosevelt, Las Americas
Express and the main road known as Road #2. We
will be surrounded by pharmacies, hospitals,
shopping malls and a big residential area.
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Colegio Congregación Mita 4
Reception – It will be located in the front to welcome and greet the clients.
Office – It will be next the reception to be used for administrative,
financial tasks and organized the concierge/errand services.
Recreational and Activities Areas – these areas are divided with removable walls to
accommodate the participants based on the needs of the activities offered.
“El Rincon del Café” – on this place you can enjoy a coffee
and other beverages while a socializing between them.
Bathrooms – spacious bathrooms for men and women
We will offer ours services according to the following schedule:
Monday will be closed for maintenance of the facilities and equipment, employees training
and other business transactions.
Management Personnel
Both owners have assigned responsibilities within the business operation according to their
specialty and they will support other areas if needed. Each owner will bring their knowledge and
corporate expertise to manage the business and train the employees. They will work consistently and
with a high level of integrity to achieve success.
Office Hours 8am – 5pm Tuesday- Friday
Elderly Centers Activities As agreed upon Wednesday & Friday
Activities in our facilities &Tours 12am – 7pm Wednesday, Friday, Saturday & Sunday
Concierge services 9am – 4pm Tuesday, Thursday & Saturday
Floor Plan of Golden Age Service
Bathrooms Office
R e c e p t i o n
Activities Area
Activities Area
Activities Area
Activities Area
“Rincon del Café”
Games
Technology Workshops
Dance and
Singing Class
“Rincon del Café”
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Craft
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Workforce Described (current and projected)
Our concierge and entertainment team is a diverse group of well-educated professionals. We take
satisfaction in assessing the unique needs of each client to provide the highest caliber experience.
Upon being hired, each of our employees will enter a training program. Golden Age Service will
not unlawfully discriminate against employees or applicants for employment based on individual’s
race, color, religion, sex, national origin or any other status protected by applicable law. As our
business grows, we will offer our employees a benefits package, including health insurance and
vacation benefits.
The working force that will begin this business will consist of:
The proportion of people in advanced age has increased during the years, which causes
changes in the demographic variables of birthrate, mortality and migration. The advances in medicine
and changes in lifestyle and nutrition have contributed to an increase in life expectancy of
puertorricans people, based on the United States Census International Data on the 79.4 age range.
Description of duties Employees
Reception &
Office clerk
*Perform basic bookkeeping, filing and clerical
duties
*Coordinate the concierge delivery and purchase
of merchandise
Current: 1 (full time) 1 (part time) Projected: 1 (part time)
Activities
Leaders and
Concierges
service
*Offer workshops to our clients in their specialty areas
*Assist clients in any needed tasks
*Assist outside speakers in their workshops to our clients
*Purchase and delivery of merchandise
*Offer motorcycle and car services as needed
*Accompany the members to the tours
Current: 7 (part time) 3 (full time) Projected: 2 (part time) 1 (full time)
Maintenance *Clean the equipment and the building Current: 1 (part time) Projected: 1 (part time)
* Customer Services * Marketing
* Cash Management
* Financial Report
* Annual Budget
* Marketing
* Human Resources
* Event Coordinator
Patricia A. Blanco
Director of Operations
Juan A. Torres
Finance Director
To provide the entertainment desired, the necessary personnel will be contracted by the hour
Target Market
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Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Target Market Defined
This growth mentioned above, translates into more demand for the services we want to offer.
These trends have created the perfect opportunity to start this business venture. In our interest to
accurately study the market, two types of surveys were done: one for people 60+ year old and other
for the elderly home administration. We surveyed 88 elderly home administrations from Guaynabo,
San Juan and surrounding towns, demonstrating result of 52% of administrator interested in our
services.
We surveyed 800 people60+ years old from Guaynabo, San Juan and surrounding towns,
Carolina y Bayamón obtaining the following results:
Size
Our target market consists of people 60+ year old residing in Guaynabo, San Juan, Carolina and
Bayamón, be it in elderly or individual homes. According to the 2010 census and recent statistics
prepared by “La Encuesta de la Comunidad” 2016 census, 21% of the population of Guaynabo and
San Juan lies within our target market, of 60+ year old. In addition, we will capture this market in
Bayamón and Carolina, which have 22% of their population in the ages 60+ year old. Part of this
population live in elderly home center. This group of towns has 24% of the total population of Puerto
Rico. In the towns of our target market there is an average of 200 of these centers, where the majority
exist in San Juan and Bayamón.
Growth Potential
The projections established by the US Bureau of the Census indicate a continuous growth of
advanced age people, which will increase our percentage of the total population on the island to
25.9% by 2020. It’s worth mentioning that after Hurricane María in 2017, there was an immigration
of young people which will also increase the projections. Migrating movements show that our young
people return to the island to live out the latter years of life. It is anticipated, according to the
International Data Base Census, that in the year 2050 the population of 60+ year old increase to
37.2%. An important detail to consider is that statistics also show that over 67% of our target
markets, in the towns already mentioned, are over the poverty limit. Therefore, taking these facts into
consideration, we predict a favorable growth potential in our market.
Also, the increase of senior life expectancy due to healthier lifestyles and the presence of
none institutionalized seniors that live alone wanting to socialize will promote a growing demand for
our services. Our excellent offers, marketing plan, unique quality services and committed staff will
The Elderly Population of Puerto Rico:
748,729 people Target market towns’ population:
810,255 people
Population with the ages of our target market: 328,077
people
(328,077/748,729) =
44% of population
of target market
0
200
400
600
800
Games Tours Special activities
Craft Workshops
Favorites seniors' activities
0
200
400
600
800
Food Gift Medicine Vacation schedule
Favorites concierge services
Puerto Rico Island
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Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
help to increase our brand awareness. As we plan to keep expanding to other metropolitan cities our
center will continue growing.
Needs
Risks and Potential Adverse Results Identified and Planners for
Understanding the challenges a new business faces, the management will periodically perform a
SWOT analysis. With this knowledge, the owners can better prepare for potential risks that may
arise.
Strengths (+)
*A variety of programs and activities
*Accessible prices
*No direct competition
*Strategic and dense populated location
*Strong promotion plan
*Qualified staff and excellent customer
service
*Secure location
Weaknesses (-)
*Little knowledge services and their advantages
*Lack name recognition
*Limited space for future expansion
*Clients are high risk for demand
*We lease, instead of own our facility
*Limited personnel to assist in the increase of
clients
Opportunities
*The 60+ population as is the emerging
market
*Expand the business to other locations and
others towns
*Bring innovative and trendy entertainment
*Cross marketing with other businesses to
create alliances and to attract customer
*Conduct tournaments and fundraisings to
get involved with the community (+)
Threats
*Economic situation in the country of Puerto
Rico
*Seniors unwilling to pay for services
*Creation of business with our concept
*Businesses with similar services
*Change in laws and regulations
(-)
SWOT
Our market has specific needs that we will strive to satisfy. Humans are living longer and there is a
big population of seniors with important needs. Many mature adults live at home alone and need help
with daily tasks like shopping for food, clothes, gifts, medicines and others. They may not be able or
do not want to drive anymore. Also, public transportation can be difficult to use for them and their
families may not be available at certain times to help them. We will help them by offering them home
services like concierge services.
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0
200
400
600
800
1000
Safety Enjoyable activities
Mental and
physical condition
Sharing with other
seniors
Good customer
service
Help solving
situation
Benefits of seniors activities In addition, as we age, it is important to remain
active and socialize. Many elderly people want to
interact socially and long to maintain their
independence, but may not find safe comfortable
places that cater to their preferences. Also,
sometimes families do not have the opportunity to
interact as such as desire with their elderly causing a
sensation of loneliness for the seniors and guilt for the
family. Golden Age Service will satisfy these
needs by providing them with a unique environment
to enjoy activities created for them.
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
As a result of this analysis, management will make the necessary changes to maintain
profitability. Having identified our risks, various strategies have been planned to surpass them: An aggressive campaign to emphasize the advantages of our services.
One of our goals is to purchase a larger place (inside and outside).
Injuries are a risk that elderly entertainment center can suffer at any time. Because of that,
our facility has a public liability insurance to cover possible injuries in our members. Our
facility trained staff will monitor clients continuously to prevent and manage any emergency.
Our strategic location in a dense populated area and accessible prices, with package deals,
will help maintain our clients and expand our market.
Our competition will come in different forms: some health insurance companies offer group
tours and delivery certain medications and people who are contracted to providing concierge
services to elderly home centers. We will keep a highly qualified staff that will offer a
personalized customer service. That will build long term relationships with our clients,
setting us apart from other facilities.
Promotion Strategy
Our challenge as a company is establish a reputation for such quality and service among our
potential markets. Considering this as a goal, we will stand out from our competitors and start
gaining recognition by following a strong promotion plan:
This financial plan will be submitted to Banco Popular which has provided more than 100
years of service in Puerto Rico. It is a stable financial institution with international recognition. Juan
Opening Plan ♦ Create a website and social networks business profiles
♦ Ads in newspapers, radio and social media
♦ Place banners and others signs at strategic locations
♦ Offers an opening party with discounted prices for the clients
♦ To distribute flyers in business, residential areas and others strategic places
♦ Direct mail promotions
Permanent Plan
♦ To share monthly videos about our activities and events in our internet pages
♦ To continue advertising with flyers, banners and others ♦ To write articles in newspapers and magazines about entertainment and elderly life
♦ Discount program with such as “Bring a Friend Coupon” and others offers
♦ To sponsor charity events
♦ Cross promotion with others business will be developed
♦ Participle in “Baby Boomers Expo” and others trade show
♦ Develop talks about important entertainment in the mental and emotional health
Financial Institution and Loan Request
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Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Torres and Patricia A. Blanco individually have a banking relationship with Popular Bank. The bank
proposed the Small Business Administration (SBA) 7(a) loan that caters to small business. A
business line of credit to meet short-term cash needs was also proposed. Collateral is available in the
form of business and personal assets, such as personal life insurance of the two owners.
Purpose of Loan and Amount Requested
For the development of this business, we will require an investment of $205,000. This amount
will come from two sources: a contribution from the owners of $25,000 ($12,500 each owner) and a
commercial loan of $180,000, at an interest rate of 12% to a term of 10 years, without a grace period.
The purpose of this loan is the purchase of equipment and furniture, renovations to the building,
startup cost and beginning capital work.
Itemized Planned Expenditures
This investment is intended to be used in:
Building Improvements $ 80,750 Startup Costs** $ 17,000
Equipment & Furniture $ 50,845 Working Capital $ 47,005
Sign Design & Thematic Decoration $ 9,400 Total $ 205,000
** Startup cost included: rent, utilities, opening promotion plan, permits, uniforms and others expenses. There was an agreement
to pay 50% rent during the pre-opening months of the business.
Plan for Repayment
After acquiring the loan, Golden Age Service will pay $2,582.48 per month in loan
payment. This chart represents the payments on the loan during ten years.
Projections are essential for the success of company; therefore, Golden Age Service
financials have been conservatively prepared.
YEAR PAYMENT PRINCIPAL INTEREST BALANCE
180,000.00
1 30,989.76 9,923.74 21,066.02 170,076.26
2 30,989.76 11,182.32 19,807.44 158,893.94
3 30,989.76 12,601.04 18,388.72 146,292.90
4 30,989.76 14,198.52 16,791.24 132,094.38
5 30,989.76 15,999.32 14,990.44 116,095.06
6 30,989.76 18,028.45 12,961.31 98,066.61
7 30,989.76 20,314.84 10,674.92 77,751.77
8 30,989.76 22,891.30 8,098.46 54,860.47
9 30,988.76 25,794.54 5,195.22 29,065.93
10 30,989.76 29,065.93 1,923.83 0.00
Projections for Stability of Company
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Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Income and Cash Flow Statement - First year
This statement has been projected by month. Our business is projected to generate sales of
$785,096 in its first year of operation.
The membership income for the first year it was calculated by taking in consideration the
next projections: The membership income for the first year it was calculated by taking in
consideration the next projections:
A. There are also three types of packages for elderly people who do not live in elderly
residential living. Bronze membership, $350; Silver membership, $475 and Gold
membership, $600.
Town Population
60+ years Percent
Impact
Population Annual Annual Income
Carolina 38,344 0.5%
85 $350 $ 29,750
59 $475 $ 28,025
47 $600 $ 28,200
191 $ 85,975
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Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 TOTAL
INITIAL CASH BALANCE 45,197 49,390 59,952 72,564 93,818 112,641 131,713 161,004 190,296 219,587 258,548
REVENUES:
46,317 46,317 53,626 53,626 61,698 63,049 63,049 69,706 69,706 69,706 79,225 79,225 755,250
FOOD & DRINK (NET) 900 900 960 960 1,230 1,298 1,298 1,560 1,560 1,560 1,710 1,710 15,646
SPECIAL ACTIVITIES 1,900 2,500 500 500 1,800 1,800 500 500 500 500 500 2,700 14,200
TOTAL REVENUES 49,117 49,717 55,086 55,086 64,728 66,147 64,847 71,766 71,766 71,766 81,435 83,635 785,096
OPERATION EXPENSES:
18,451 18,451 18,451 18,451 18,451 18,451 18,451 18,451 18,451 18,451 18,451 24,779 227,740
PAYROLL EXPENSES 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 3,167 34,161
PROFESSIONAL SERV. 7,742 7,742 6,742 6,742 7,742 7,742 6,742 6,742 6,742 6,742 6,742 7,800 85,962
5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 60,000
3,932 3,932 3,932 3,932 3,932 3,932 3,932 3,932 3,932 3,932 3,932 3,932 47,184
1,200 600 600 600 600 600 600 600 600 600 600 600 7,800
REPAIR & MANT. 400 400 400 400 400 400 400 400 400 400 400 400 4,800
AUTO & MOTORCYCLE 600 600 600 600 600 600 600 600 600 600 600 600 7,200
PROMOTION 4,000 2,500 2,500 450 450 450 450 450 450 450 450 450 13,050
GOVERNMENT TAX 3,850 3,850 7,700
DEPRECIATION 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 18,564
INSURANCE 3,300 3,300 6,600
INTEREST 1,800 1,792 1,784 1,776 1,768 1,760 1,752 1,744 1,735 1,727 1,718 1,710 21,066
OTHERS EXPENSES 550 550 550 550 550 550 550 550 550 550 550 550 6,600
TOTAL EXPENSES 51,689 46,281 45,273 43,215 44,207 48,049 46,491 43,183 43,174 43,166 43,157 54,385 552,270
NET OPER INCOME (LOSS) (2,572) 3,436 9,813 11,871 20,521 18,098 18,356 28,583 28,592 28,600 38,278 29,250 232,826
FINANCIAL SOURCES:
180,000 180,000
OWNERS INVESTMENT 25,000 25,000
TOTAL 205,000 205,000
USES OF SOURCES:
EQUIP & FURNITURE 50,845 50,845
BUILDING IMPROV. 80,750 80,750
SIGN & THEMATIC 9,400 9,400
ORGANIZATION COSTS 17,000 17,000
TOTAL (157,995) (157,995)
LESS: LOAN PAYMENT (783) (790) (798) (806) (814) (822) (831) (839) (847) (856) (864) (873) (9,923)
ADD: DEPRECIATION 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 1,547 18,564
LESS: EARNING DISTR. (200,000) (200,000)
FINAL CASH BALANCE 45,197 49,390 59,952 72,564 93,818 112,641 131,713 161,004 190,296 219,587 258,548 88,472 88,472
LOAN
MEMBERSHIP
SALARIES
RENT
UTILITIES
SUPPLIES
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
B. Initially we will offer these services to the elderly in Guaynabo, San Juan & Bayamón.
Annual membership fee will be $800.
Three Years Projected Income and Cash Flow Statement
For the second and third year of business operation the Income Statement has been projected
by year. The revenue of the operation was estimated considering an income of 5% in relation to the
previous year services. However, special activities and “Rincon del Café” area increase of 4% of
revenue in relation to the previous year services.
Town Population
60+ years Percent
Impact
Population Annual Annual Income
Bayamón 44,123 0.9%
156 $350 $ 54,600
133 $475 $ 63,175
108 $600 $ 64,800
397 $ 182,575
Town Population
60+ years Percent
Impact
Population Annual Annual Income
San Juan 86,547 0.4%
142 $350 $ 49,700
92 $475 $ 43,700
112 $600 $ 67,200
346 $ 160,600
Town Population
60+ years Percent
Impact
Population Annual Annual Income
Guaynabo 19,310 2.5%
178 $350 $ 75,000
100 $475 $ 76,500
205 $600 $ 153,000
483 $ 304,500
Town
Elderly
Centers
Care
Percent Impact
Centers Annual
Annual
Income
Guaynabo 30 33% 10 $800 $ 8,000
San Juan 88 10% 10 $800 $ 8,000
Bayamón 52 14% 7 $800 $ 5,600
27 $21,600
These the impact of
operating expenses in the
gross income during the
first year.
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Payroll, 33.0%
Rent, 8.0%
Prof Serv, 11.0%
Utilities, 6.0%
Interest, 3.0%
Promotion, 2.0%
Others, 7.0%
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
Golden Age Service will be a successful business because our projections and the
economic indicators show a positive picture for financial business development, indicating a
margin of gain of 30% for the first year; 33% for the second year and 35% for the third year.
It is projected that our business will adequately fund to service its customer as well as
creditors. We have an interested population in a variety of our services to satisfy their needs of
entertainment and concierge. As support to everything that has been presented we have an
administration and employees with the preparation and experience needed to conduct this
business successfully. We are pleased to create new job opportunities and strengthen our
country’s economy.
14
SECOND YEAR THIRD YEAR
INITIAL CASH BALANCE 88,472$ 80,442$
793,013$ 832,664
FOOD & DRINK (NET) 15,959 16,278
SPECIAL ACTIVITIES 14,484 14,773
TOTAL REVENUES 823,456$ 863,715$
OPERATION EXPENSES:
234,572$ 239,263$
35,186 35,890
PROFESSIONAL SERVICES 88,540 91,196
51,600 51,600
48,599 50,057
8,034 8,275
REPAIR & MANTENAINCE 4,944 5,191
AUTO & MOTORCYCLE 7,416 7,787
LICENSES & PERMITS 1,020 1,020
13,442 13,845
7,854 8,011
18,564 18,564
6,798 7,002
19,807 18,389
UNIFORMS 570 587
OTHERS EXPENSES 6,798 7,070
TOTAL EXPENSES 553,744$ 563,747$
NET OPERATING INCOME (LOSS) 269,712$ 299,968$
LESS: LOAN PAYMENT (11,182) (12,601)
13,440 14,880
LESS: EARNING DISTRIBUTION (280,000) (290,000)
FINAL CASH BALANCE 80,442$ 92,689$
RENT
INTEREST
ADD: DEPRECIATION
INSURANCE
UTILITIES
SUPPLIES
PROMOTION
GOVERNMENT TAX
DEPRECIATION
REVENUES:
MEMBERSHIP
SALARIES
PAYROLL EXPENSES
Golden Age Service Business Financial Plan
Colegio Congregación Mita 4
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senior-recreation-center/malley-center-membership
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Puerto Rico y el mundo .
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Estremera,J. López, J., Tirado,M., Irrizary, N. (2018). Orgnización sin fin de lucro centro de servicios
gerontólogicos, inc. .
Profitable Venture. (2018). A Sample Personal Concierge Service Business Plan Template. Obtained from
https://www.profitableventure.com/concierge-service-business-plan/
Senior Service Business. (2019). How To Start a Concierge Business for Seniors. Obtained from
https://seniorservicebusiness.com/
Ward, S. (2018). Best Business Ideas for Working With Seniors. Obtained from
https://www.thebalancesmb.com/the-best-business-ideas-for-working-for-or-with-seniors-
2947979
Works Cited
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