Kyra M. Johnson
June 4, 2012
Venture Budgeting and Forecasting
Many Americans live with self-care disabilities. The Americans who chose to remain home is increasing as the cost of assisted living facilities increases. The decision to remain in home stimulates from the increasing cost of assisted living facilities as well as the ease of remaining in a familiar environment. Though the decision brings challenges, many Americans chose to seek in-home assisted living services. As the demand for assisted living requirements increases it is evident that there is a consumer need and a business opportunity to meet the needs of those consumers, (US Census Bureau, 2006).
Despite how excellent of an idea or opportunity, there is a cost to start a business. Because the agency will conduct business in the comfort of the client’s home; the cost for start-up is minimal for the agency and the main concerns that require start-up capital consists of marketing, labor, website construction, insurance, office technology. After researching the average cost of opening an assisted living and personal care agency, the idea became clearer and more feasible financially as well as profitable.
The first step in opening the agency consists of acquiring a business line for an in-home office. The business line is solely for the business of Under One Roof, and the cost for setting up a line is $150. The agency will need a separate computer, printer, and software for management in the effort to maintain financial and personal records of clients, and the cost is $1,000. The agency must acquire insurance in the case of accidents and negligence and the cost for $1,000,000 in coverage estimates at $3,000 yearly and $250 monthly. Because the agency will begin at a modest pace and will operate with one employee until the business starts growing. The cost of labor for the first year of business with one employee, and the business...