How to Start a Home Care Business: The Proposal (part 6)

Web results

Executive Summary

Product

Apex Home Health is both a home health and non-medical home care agency. Our non-medical home care services include personal care, assistance with daily living activities, meal preparation, housekeeping and transportation. Our medical skilled home health services administer skilled licensed nursing and rehab therapy services under physicians' orders.

Clientele

The target audience for Apex Home Care is seniors and adults with disabilities who wish to remain in a community setting. Specifically, we specialize in consumer directed services (CDS).

Future of the Company

Home care agencies continue to grow in popularity due to our aging population and preference of many older Americans to be cared for in their homes. Starting a home care business to meet this great demand for in-home care may potentially be a rewarding business enterprise.

Company Description

Mission Statement

To provide necessary assistance in meeting the unmet needs of seniors and adults with disabilities and enable the individuals to remain in a community setting.

Principal Member

Charles Lamson---owner, business manager/sales, account manager

Legal Structure

Apex Home Care is a Sole Proprietorship, operating out of St. Charles, Missouri.

 Market Research

Now at this point in my proposal, I hit a little roadblock, because I have done absolutely no market research and I'm not quite sure how to proceed, so I went to the Small Business Administration's website sba.gov, clicked on Start and grow your business: see the guide, there I found the section on conducting market research.

Market Research and Competitive Analysis

Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business.

Use market research to find customers

Market research blends consumer behavior and economic trends to confirm and improve your business idea.

It is crucial to understand your consumer base from the outset. Market research lets you reduce risks even while your business is still just a gleam in your eye.

Gather demographic information to better understand opportunities and limitations for gaining customers. This could include population data on age, wealth, family, interests, or anything else that's relevant for your business.

Gather demographic information to better understand opportunities and limitations for gaining customers. This could include population data on age, wealth, family, interests, or anything else that is relevant for your business.

Then answer these questions to get a good sense of your market.

• Demand: Is there a desire for your product or service?
• Market size: How many people would be interested in your offering?
• Economic indicators: What is the income range and employment rate?
• Location: Where do your customers live and where can your business reach?
• Market saturation:  How many similar options are already available to consumers?
• Pricing: What do potential customers pay for these alternatives?

You will also want to keep up with the latest small business trends. It is important to gain a sense of specific market share that will impact your profits.

You can do market research using existing sources, or you can do the research yourself and go directly to consumers.

Existing sources can save you a lot of time and energy, but the information might not be as specific to your audience as you would like. Use it to answer questions that are both general and quantifiable, like industry trends, demographics, and household incomes. Check online or start with the Small Business Administration's list of market research resources.

Asking consumers yourself can give you a nuanced understanding of your specific target audience. But, direct research can be time consuming and expensive. Use it to answer your questions about your specific business or customers, like reactions to your logo, improvements you could make to buying experience, and where customers might go instead of your business.

Here are a few methods you can use to do direct research:

• Surveys
• Questionnaires
• Focus groups
• In-depth interviews

For guidance on deciding which methods are worthwhile for your small business, check out resource partner network.

Use competitive analysis to find a market advantage

John and Kelly want to open an auto repair shop. they write their business plan, then turn their attention to making sure this idea will actually work.

They start with a competitive analysis of the local business landscape. A quick online search shows three auto repair shops within five miles of a nearby town called Henry, which rests on an interstate highway.

Next, John and Kelly look into who lives in the area. market research from the U.S. Census Bureau shows that local college students make up more than half of the population. the college is roughly a two-hour drive from the nearest major city. that means there is a large number of students in the area who drive long distances to go to internships and visit family.

Finally, John and Kelly check the websites for the Bureau of Economic Analysis and Bureau of Labor Statistics. They find that the town's economy is buoyed by jobs at the college, and there is a strong market for non-student residents, most of which earn well above the region's average cost of living.

John and Kelly found customers that will make their business successful. 

Competitive analysis helps you learn from businesses competing for your potential customers. This is key to defining a competitive edge that creates sustainable revenue.

Your competitive analysis should identify your competition by product line or service and market segment. assess the following characteristics of the competitive landscape:

• Market share
• Strengths and weaknesses
• Your window of opportunity to enter the market
• The importance of your target market to your competitors
• Any barriers that may hinder you as you enter the market
• Indirect or secondary competitors who may impact your success

Several industries might be competing to serve the same market you are targeting. That is why you should make sure to differentiate your competitive analysis by industry. There are many methods for doing this, including Porter's Five Forces analysis. Important industry factors to consider include level of competition, threat of new competitors or services, and the effect of suppliers and customers on price.

Free small business data and trends

There are many reliable sources that provide customer and market information at no cost. Free statistics are readily available to help prospective small business owners.

Consider these types of business statistics in your market research and competitive analysis:

Focus:	General business statistics
Goal:	Find statistics on industries, business conditions
Reference:	NAICS, usa.gov/statistics, Statistical Abstract of the United States, U.S. Census Bureau

Focus:	Consumer statistics
Goal:	Gain info on potential Customers, consumer markets
Reference	Consumer Credit Data, Consumer Product Safety

Focus:	Demographics
Goal:	Segment the population for targeting customers
Reference:	American Factfinder, Bureau of Labor Statistics

Focus:	Economic indicators
Goal:	Know unemployment rates, loans granted and more
Reference:	Consumer Price Index, Bureau of Economic Analysis

Focus:	Employment statistics
Goal:	Dig deeper into employment trends for your market
Reference:	Employment and Unemployment Statistics

Focus:	Income statistics
Goal:	Pay your employees fair rates based on earnings data
Reference:	Earnings by Occupation and Education, Income Statistics

Focus:	Money and interest rates
Goal:	Keep money by mastering exchange and interest rates
Reference:	Daily Interest Rates, Money Statistics via Federal Reserve

Focus:	Production and sales statistics
Goal:	Understand demand, costs and consumer spending
Reference	Consumer spending, Gross Domestic Product (GDP)

Focus:	Trade statistics
Goal:	Track indicators of sales and market performance
Reference:	Balance of Payments, USA Trade Online

Focus:	Statistics of specific industries
Goal:	Use a wealth of Federal agency Data on industries
Reference:	NAICS, Statistics of U.S. Businesses

*SOURCE: https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis*

end

Focus:

General business statistics

Goal:

Find statistics on industries,

business conditions

Reference:

NAICS, usa.gov/statistics,

Statistical Abstract of the United States,

U.S. Census Bureau

Focus:

Consumer statistics

Goal:

Gain info on potential

Customers, consumer

markets

Reference

Consumer Credit Data,

Consumer Product Safety

Focus:

Demographics

Goal:

Segment the population

for targeting customers

Reference:

American Factfinder,

Bureau of Labor Statistics

Focus:

Economic indicators

Goal:

Know unemployment rates,

loans granted and more

Reference:

Consumer Price Index,

Bureau of Economic Analysis

Focus:

Employment statistics

Goal:

Dig deeper into

employment trends

for your market  

Reference:

Employment and Unemployment Statistics

Focus:

Income statistics

Goal:

Pay your employees

fair rates based on

earnings data

Reference:

Earnings by Occupation and Education,

Income Statistics

Focus:

Money and interest rates

Goal:

Keep money by mastering

exchange and interest

rates

Reference:

Daily Interest Rates,

Money Statistics via Federal Reserve

Focus:

Production and sales

statistics  

Goal:

Understand demand,

costs and consumer

spending

Reference

Consumer spending,

Gross Domestic Product (GDP)

Focus:

Trade statistics

Goal:

Track indicators of

sales and market

performance

Reference:

Balance of Payments,

USA Trade Online

Focus:

Statistics of specific

industries

Goal:

Use a wealth of

Federal agency

Data on industries  

Reference:

NAICS,

Statistics of U.S. Businesses