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



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



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



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

4

♦ Limited liability ♦ Protect assets ♦ Flexible profit distribution ♦ Less paperwork ♦ Flow through taxation



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.

5



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”

6

Craft

https://www.ageukmobility.co.uk/mobility-news/article/reasons-older-people-join-dance-class

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjCmOfqoe3eAhWK1VkKHeFSAjYQjRx6BAgBEAU&url=https://www.verywellhealth.com/art-projects-for-seniors-197756&psig=AOvVaw1IFUxdpbb4hdIHzHkd3V55&ust=1543156950748547

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiV2p6Xou3eAhWip1kKHcnZA3MQjRx6BAgBEAU&url=https://www.technewsworld.com/story/83454.html&psig=AOvVaw0N_6WNCetsf7Pq6t-IN-_c&ust=1543157051196179

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiIpfD3ou3eAhUFwlkKHYuzAoAQjRx6BAgBEAU&url=https://www.alamy.es/foto-el-grupo-de-cuatro-ancianos-tomando-cafe-charlando-y-tener-un-gran-familytime-juntos-33378253.html&psig=AOvVaw3j2J75eu-o50WSsAA-XNxQ&ust=1543157262503811

http://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi-sb2vo-3eAhWH1lkKHcE0CysQjRx6BAgBEAU&url=http://cadenaser.com/ser/2016/10/27/internacional/1477523563_034569.html&psig=AOvVaw3j2J75eu-o50WSsAA-XNxQ&ust=1543157262503811

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwj8jrOxn-3eAhXM1VkKHdPfDX4QjRx6BAgBEAU&url=https://www.youtube.com/watch?v=sal4C92UfZI&psig=AOvVaw1Qfc6rUqLi3B-H_XvY4kis&ust=1543156285452054

http://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiUouafnPveAhUmx1kKHQUNBG0QjRx6BAgBEAU&url=http://tecnologiawilliam.blogspot.com/2013/02/servicio-de-recepcion-de-llamadas.html&psig=AOvVaw0N48M99gCptflX8BHYZeZx&ust=1543636465501451

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwiW5KXvu6TfAhVlplkKHVxWBF4QjRx6BAgBEAU&url=https://clipartxtras.com/categories/view/1e7793bf6b9ff4a25f38081eaf58116fbdb96745/free-home-delivery-png-clipart.html&psig=AOvVaw0zXgW4dJ-vuUv8F67mJgtq&ust=1545053701428213



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

7



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

8



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.

9

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.



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

10



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

11



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

12

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



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


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


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


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.

13

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 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



Anne Arundel County. (2018). O'Malley Senior Activity Center. Obtained from

https://www.aacounty.org/departments/aging-and-disabilities/senior-center/omalley-senior-

center/index.html

Best Friend Errand Service, ALL. (2016). Senior Concierge Service . Obtained from

https://bestfrienderrand.com/senior-concierge/

Commerce, U. D. (2018). United States Census- Puerto Rico . Obtained from

https://www.census.gov/quickfacts/pr

Englewood Colorado . (2015). Malley Center Membership. Obtained from

https://www.englewoodco.gov/inside-city-hall/city-departments/parks-and-recreation/malley-

senior-recreation-center/malley-center-membership

Estado Libre Asociado de Puerto Rico . (2017). Perfil Demográfico de las personas de Edad Avanzada:

Puerto Rico y el mundo .

García, P. (2016). 17 Juegos, Actividades y Dinámicas para Personas Mayores. Obtained from

https://www.lifeder.com/juegos-para-personas-mayores/

Great Senior Living. (2016). Fun & Activities for Seniors: Why Play Is Important and How to Do More of It.

Obtained from https://www.greatseniorliving.com/articles/fun-activities-for-seniors

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

15

2019 FBLA Business Financial Plan Colegio Congregación ... · Golden Age Service Business...

Documents

Transcript of 2019 FBLA Business Financial Plan Colegio Congregación ... · Golden Age Service Business...