A private duty nursing business is a business that provides expert nursing care and medical assistance to patients in their homes or other private settings. Private duty nurses give one-on-one care and support to patients of all ages who need ongoing medical care or have complicated medical needs.
Private duty nursing firms are mostly privately owned and operated, and they may employ licensed practical nurses (LPNs) or registered nurses (RNs) who are trained and skilled in delivering specialized care to patients with a variety of medical diseases.
These businesses may provide a variety of services, including pharmaceutical management, wound care, respiratory treatment, infusion therapy, and others.
According to available data, the global market for private nursing services was valued at $415.7 billion in 2021 and is predicted to reach $848.7 billion by 2031, growing at a 7.5% CAGR between 2022 and 2031. Private nursing services are provided by nurses who hold a Licensed Practical Nurse (LPN) or Registered Nurse (RN) license.
Steps on How to Write a Private Duty Nursing Business Plan
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Executive Summary
Red Rose® Private Nursing Services, Inc. is a new private duty nursing business that will be based in Denver, Colorado but operates across neighboring cities such as Aurora, Arvada, Broomfield, Centennial, Golden, Lakewood, Littleton, Westminster, Thornton, Englewood, with the purpose of providing compassionate and professional care to patients who require skilled nursing care in the comfort of their own homes.
Our skilled registered nurses and licensed practical nurses give each patient tailored care, ensuring that their particular needs are satisfied, and their health is maximized. Red Rose® Private Nursing Services, Inc. is dedicated to providing the finest level of care to our patients.
We accomplish this by offering continual training and instruction to our employees, using evidence-based procedures, and remaining current on the newest breakthroughs in medical technology and therapies. Roseline Murdock is the founder and CEO of Red Rose® Private Nursing Services, Inc.
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Company Profile
a. Our Products and Services
Red Rose® Private Nursing Services, Inc. will offer the following services;
- Wound care
- Medication management
- Infusion therapy
- Ventilator management
- Personalized Care Plans
- Health and Wellness Services
b. Nature of the Business
Our private-duty nursing business will operate with a business-to-consumer and business-to-business model.
At Red Rose® Private Nursing Services, Inc., our business model is built on providing exceptional care at an affordable price. We work closely with insurance providers to ensure that our patients are able to access the care they need without financial burden.
c. The Industry
Red Rose® Private Nursing Services, Inc. will operate in the healthcare industry.
d. Mission Statement
At Red Rose® Private Nursing Services, Inc. we are committed to providing quality, compassionate, and professional care to individuals in their homes. We are dedicated to improving the quality of life of our patients and their families by delivering personalized care that is tailored to their specific requirements.
e. Vision Statement
At Red Rose® Private Nursing Services, Inc., we aspire to be Denver, Colorado’s premier provider of private duty nursing care. We seek to do this by offering high-quality, evidence-based care that is tailored to each patient’s specific needs.
f. Our Tagline (Slogan)
Red Rose® Private Nursing Services, Inc. – The Private Duty Nursing Care That Truly Cares!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Red Rose® Private Nursing Services, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Executive Officer (Owner)
- Human Resources and Admin Manager
- Nurses
- Accountants/Cashiers
- Cleaners
i. Ownership/Shareholder Structure and Board Members
- Roseline Murdock (Owner and Chairman/Chief Executive Officer) 54 Percent Shares
- Laura Nelson (Board Member) 16 Percent Shares
- Frank Greene (Board Member) 10 Percent Shares
- Jude Duke (Board Member) 10 Percent Shares
- Henry McCarron (Board Member and Secretary) 10 Percent Shares.
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SWOT Analysis
a. Strength
- Availability of highly skilled and experienced nursing staff
- Ability to provide personalized care in the comfort of patients’ homes
- 24/7 availability, providing peace of mind to patients and families
- Strong relationships with insurance providers and healthcare organizations
- Commitment to ongoing education and training for staff to ensure the highest quality of care.
b. Weakness
- Limited reach and market share due to being a small business
- Dependence on insurance reimbursements for revenue
- Challenges in recruiting and retaining qualified nursing staff
- Difficulty in managing and coordinating care for patients with complex medical conditions
- Lack of brand recognition and marketing efforts.
c. Opportunities
- Extending services to new geographic areas and customer groups
- Diversifying services to include more medical specialties and associated services
- Forming alliances with healthcare institutions and community groups in order to increase referrals and brand recognition
- Using technology to streamline operations and improve patient outcomes
- Capitalizing on the growing demand for home healthcare services as the population ages.
i. How Big is the Industry?
The private duty nursing service industry is indeed a big industry and as a matter of fact, the global market for private nursing services was valued at $415.7 billion in 2021 and is expected to reach $848.7 billion by 2031, rising at 7.5 percent CAGR from 2022 to 2031.
ii. Is the Industry Growing or Declining?
The private duty nursing service industry is experiencing growth owing mostly to the aging population in the United States and a growing demand for receiving medical care in the comfort of patients’ homes. As the need for healthcare services rises, the industry is anticipated to expand more.
Yet, the industry may confront difficulties such as labor shortages, regulatory compliance, and shifts in healthcare policies and insurance payments. Generally, the private duty nursing business is on the rise, with potential for future growth and expansion.
iii. What are the Future Trends in the Industry
Technology is becoming more common in the private duty nursing industry, and this trend is projected to continue. Smart home technology, telemedicine services, and electronic health records are examples of this.
Private duty nursing companies are striving toward more tailored care programs that take into account each resident’s specific needs and preferences. This involves providing personalized meal planning, medication management, and other services suited to the needs of each resident.
Private duty nursing companies are increasingly concerned with sustainability and minimizing their environmental impact. This involves implementing energy-efficient appliances, recycling programs, and other environmentally friendly measures.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no existing niches when it comes to private duty nursing business.
v. Can You Sell a Franchise of Your Business in the Future?
Red Rose® Private Nursing Services, Inc. intends to sell franchises in the near future, with a focus on major cities in the United States of America and Canada with a growing aging population and a burgeoning healthcare services industry.
d. Threats
- Increasing competition from larger, more established healthcare organizations.
- Variations in insurance reimbursements and healthcare policies.
- Regulatory and compliance challenges in the healthcare industry
- Economic downturns that may result in decreased demand for non-essential healthcare services.
- Nursing staff shortages due to industry-wide labor shortages.
i. Who are the Major Competitors?
- Atria Senior Living
- All Heart Home Care
- Aveanna Healthcare
- Amedisys
- Bayada Home Health Care
- BrightStar Care
- BrightStar Lifecare
- CareGivers America
- Comfort Keepers
- FirstLight Home Care
- Griswold Home Care Visiting Angels
- Home Healthcare of America
- Home Instead Senior Care
- Interim HealthCare
- Maxim Healthcare Services
- Nurse Next Door
- Kindred at Home
- Premier Home Health Care Services
- VNA Health Group.
ii. Is There a Franchise for Private Duty Nursing Business?
Yes, there are franchise opportunities for private duty nursing businesses and some of them are;
- Always Best Care Senior Services
- BrightStar Care
- ComForCare Home Care
- FirstLight Home Care
- Homewatch CareGivers
- Interim HealthCare
- Nurse Next Door
- Right at Home
- Synergy HomeCare
- Visiting Angels.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Private Duty Nursing Business?
Indeed, there are county and state regulations as well as zoning laws for private duty nursing businesses. Please keep in mind that in the United States, local or state restrictions and zoning requirements for private duty nursing enterprises can differ based on region.
In truth, certain states may mandate licensing or certification for private duty nursing businesses, while others may not. Zoning restrictions may also differ, with some cities and counties permitting these enterprises to operate in residential districts while others limit them to commercial areas.
- Marketing Plan
a. Who is your Target Audience?
i. Age Range
Our target market comprises adults above 65 years old.
ii. Level of Educational
We will attend to all clients irrespective of their level of education as long as they can communicate.
iii. Income Level
We will work with clients of different income levels as long as they can afford our services, especially with the fact that there are options for government funding.
iv. Ethnicity
We are open to working with people from different ethnic groups.
v. Language
We are open to working with people irrespective of the language they speak, but we will prefer clients who speak English, Spanish, and French.
vi. Geographical Location
Our services will be open to people from different geographical locations.
vii. Lifestyle
Red Rose® Private Nursing Services, Inc. will not restrict any client from accessing our services because of their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Content marketing
- Deliberately Brand Our Office Facility
- Email marketing
- Events and sponsorships
- Pay-per-click (PPC) advertising
- Referral marketing
- Search engine optimization (SEO).
i. Traditional Marketing Strategies
- Broadcast Marketing -Television & Radio Channels.
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Affiliate Marketing
- Content Marketing.
- Email Marketing.
- Influencer Marketing.
- Mobile Marketing.
- Social Media Marketing Platforms.
- Search Engine Optimization (SEO) Marketing.
iii. Social Media Marketing Plan
- Create a personalized experience for our customers and their families.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Create profiles on relevant social media channels.
- Gear up our profiles with a diverse content strategy.
- Start using chatbots.
- Run cross-channel campaigns.
- Use brand advocates.
c. Pricing Strategy
Red Rose® Private Nursing Services, Inc.’s pricing strategy will consider factors such as the value of the service offered, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:
- Tiered Pricing
- All-Inclusive Pricing
- Ala Carte Pricing
- Move-In Specials
- Long-Term Contracts
- Medicaid and Medicare Programs
- Private Pay.
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Sales and Distribution Plan
a. Sales Channels
- Direct sales: This involves the private duty nursing business’s sales team directly reaching out to potential clients, such as small and medium-sized healthcare-related businesses, through email, phone, or in-person meetings.
- Referral sales: This involves leveraging existing clients, business partners, and other industry contacts to refer potential clients to the private duty nursing business.
- Online sales: This involves using digital channels such as the company’s website, social media, and online advertising to generate leads and attract potential clients.
- Broker or agent channels: This involves working with brokers or agents who act as intermediaries between the private duty nursing business and potential clients, referring clients to the company in exchange for a commission.
- Partner channels: This involves working with strategic partners, such as doctors, hospitals, and other healthcare service providers, to offer factoring services to their clients.
- Industry-specific sales channels: This involves targeting specific industries that may have a higher demand for private-duty nursing services.
- Trade shows and events: This involves participating in industry trade shows and events to generate leads and build relationships with potential clients.
b. Inventory Strategy
Our inventory strategy will involve managing and tracking the availability of essential supplies such as food, medication, medical equipment, and cleaning products. The strategy will also involve setting par levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages.
We will also implement software systems to automate inventory management and improve efficiency. Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.
c. Payment Options for Customers
Here are the payment options that Red Rose® Private Nursing Services, Inc. will make available to her clients;
- Apple Pay and Google Wallet
- Gift cards and store credit
- Credit and debit cards
- PayPal
- Installment payments
- Cash on service delivery.
d. Return Policy, Incentives, and Guarantees
As a private duty nursing services provider, the nature of our business does not permit us to offer a traditional return policy, incentives, or guarantees.
e. Customer Support Strategy
Providing exceptional customer support is crucial for the success of our private-duty nursing business. Here are some customer support strategies that we will adopt:
- Provide multiple communication channels for patients and their families
- Offer personalized attention
- Set clear expectations.
- Maintain transparency.
- Offer value-added services.
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Operational Plan
Our private duty nursing business operational plan is a detailed document that defines the day-to-day operations of the business, such as staff roles, resident care plans, facility upkeep, and financial management. Specific goals and objectives, as well as strategies for accomplishing those goals, will be included in the plan.
It will also handle risk management, emergency readiness, and regulatory and policy compliance. The operational plan is an essential component of a private duty nursing organization’s overall business strategy and acts as a guide for day-to-day management.
a. What Happens During a Typical Day at a Private Duty Nursing Business?
- The office is open for the day’s work
- Routine staff meetings
- Nurses are assigned and they visit clients to provide the needed private nursing care.
- Documentation
- Harmonization with healthcare providers
- Administrative tasks such as scheduling appointments, billing, invoicing, and managing supplies and equipment.
- The business is closed for the day.
b. Production Process
There is no production process when it comes to private duty nursing business.
c. Service Procedure
The service procedure for a private duty nursing business revolves around clients (patients or their family members) requesting personalized services. Once the price and terms of service are agreed upon, a private duty nurse is assigned to the client.
d. The Supply Chain
The supply chain is not applicable to a private-duty nursing business.
e. Sources of Income
At Red Rose® Private Nursing Services, Inc. we will make money from patient fees, government programs such as Medicaid or Veterans Affairs, and private pay options such as long-term care insurance or personal funds.
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Financial Plan
a. Amount Needed to Start Your Private Duty Nursing Business?
Red Rose® Private Nursing Services, Inc. would need an estimate of $150,000 to successfully set up our private duty nursing business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $70,000.
- Other start-up expenses including commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up Inventory – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $35,000
- Website: $600
- Opening party: $4,000
- Miscellaneous: $5,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Red Rose® Private Nursing Services, Inc. will not build a new facility for our private duty nursing business; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Private Duty Nursing Business?
- Staffing costs (salaries, benefits, and training for caregivers, nurses, and administrative staff)
- Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
- Food and supplies (groceries, medications, medical supplies, personal care items, and cleaning supplies)
- Marketing and advertising
- Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
- Resident care expenses (medical equipment, therapy services, and other specialized care needs)
- Taxes
- Compliance expenses.
e. What is the Average Salary of your Staff?
- Chief Executive Office (President) – $60,000 annually
- Administrator – $45,00 annually
- Nurses – $46,000 annually
- Account Officer – $40,000 annually
- Front Desk Officer – $32,000 Per annually
- Cleaners – $22,000 Per Annum
f. How Do You Get Funding to Start a Private Duty Nursing Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
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Financial Projection
a. How Much Should You Charge for Your Product/Service?
Red Rose® Private Nursing Services, Inc. will charge based on what is obtainable in the United States. The average hourly rate for a private nurse is $24.00, and the average monthly cost for full-time care is $4,767. Please note that we will offer various pricing options and also accept government programs or private pay options, such as long-term care insurance, to help offset the cost of care.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $420,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $100,000
- Second Fiscal Year (FY2) (Profit After Tax): $180,000
- Third Fiscal Year (FY3) (Profit After Tax): $280,000
d. Profit Margin of a Private Duty Nursing Business Product/Service
The ideal profit margin we hope to make at Red Rose® Private Nursing Services, Inc. will be between 10 and 20 percent on each job carried out irrespective of the distance covered.
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Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Red Rose® Private Nursing Services, Inc. will grow our private duty nursing business by first opening our offices in key cities in the United States of America within the first five years of establishing the business and then start franchising in the nearest future.
b. Where do you intend to expand to and why? (Geographical locations)
Red Rose® Private Nursing Services, Inc. plans to expand to;
- Atlanta, Georgia
- Charlotte, North Carolina
- Dallas, Texas
- Denver, Colorado
- Minneapolis, Minnesota
- Nashville, Tennessee
- Phoenix, Arizona
- Portland, Oregon
- San Diego, California
- Tampa, Florida.
The cities listed above have a growing aged population with a significant demand for private duty nursing services, making them potentially viable markets for private duty nursing enterprises, which is why we want to expand to these geographic locations.
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Exit Plan
The founder of Red Rose® Private Nursing Services, Inc. aims to exit the company through a merger and acquisition. We wish to merge with a global private duty nursing firm so that when the founder retires, the company’s management can be placed in trusted hands.
The purpose of merging with two or more international private duty nursing firms is to achieve synergy, in which the total (the new company) is greater than the sum of its parts, and with a well-structured management team and board of trustees.