Develop and present a 3-year budget to support your business plan. This should show how you will spend the 1 .5 million pounds over the 3 years

Portfolio of Task: This assignment has two parts:

Part 1: Financial Data Development using excel

Part 2: The report Background:

As a project manager, you have been asked to develop a ‘business plan’ for a newly built project for older people in a local authority of your choice.

Your project brief provides you with some financial data shown below:

a. You have an annual capital funds provided by your sponsors of £1.5 million.

b. Your project has a capacity for 50 residents of which a third of these are for high support needs whilst the 2/3rd are for low/medium support needs.

c. The weekly revenue for the higher support needs is twice the low / medium support residents.

d. You have been asked to make appropriate financial assumptions, such as weekly charges, occupancy rates of between 75 – 85% and any other investment that needed to be made.

e. The project will be for an initial three years; hence you will provide a cash-flow, and projected income and expenditure as part of the business plan.

Task

Your business plan will show a degree of research and your findings has to reflect on the strategic commissioning work of the social services of the Local Authority. Some of your report must present your findings about the viability, demand, and opportunity for collaboration to make your new service a quality public sector engagement with the sponsors and stakeholders.

You are to use a simple data management tool (an Excel application) to accomplish your tasks and your report must show the financials and the explanation of your calculations.

Guidance Notes

• Your tutor will assist you with the use and application of the Excel software, some class tutorials will be required for students to practice and gain confidence in data management with a simple analytical tool.
• Students need to understand the usage of primary and secondary data.
• Your report must have a formal structure.
• The financial data & the report is one piece of work, & must be presented as one document, seek guidance from the tutor. (4000 words) (100 marks)

To set this out you will need to format this as a business plan Use the following format so it flows well

Arden front cover page Title page

Terms of reference: All you need to write is that this is a report submitted in fulfilment of the requirements for course: BUS6005 Arden University

Summary or Abstract/Executive summary: this may be better written last, but you can always go back to alter it. It is really an overview of the points raised in the report. A summary of about 100- 150 words is enough.

Table of contents –use all your subheadings and page numbers

Financial Summaries Part 1

Develop and present a 3-year budget to support your business plan. This should show how you will spend the 1 .5 million pounds over the 3 years. You may wish to make assumptions about the income and outgoings.

The budget is a summary of the predicted money coming in (income) versus the money going out (expenditure)

Income is based on a prediction of average room occupancy over the month and the price expected to be paid for those rooms.

For example, if a care home has 10 beds and fees are £2k per month. If the home expects occupancy of 9 people per month (average of 90% occupancy), the predicted income will be 9 people x £2k per month = £18k total income each month.

If the occupancy is predicted to be consistently 9 all year, it means the predicted income will be £18k x 12 months = £360k of income

If historically there is lower occupancy in Dec / Jan, the budget should reflect this. For physically vulnerable residents in poor health, a harsh winter can be especially difficult and, in some cases, will impact occupancy.

When a budget is built, the average price may be based on a combination of local authority funded residents, some with a private top up and some funded privately.

Example:

4 residents funded by the local authority at £500 per week

1 at £650 per week – local authority funded plus family “top up” of £150 per week

5 fully privately funded at £1000 per week.

This makes a total weekly income of £2k+£650+£5000 = £7,650 per week

Expenditure:

A detailed budget will predict costs across different areas of the home.

The main budget lines to be aware of are staffing hours – care, management, admin, kitchen, laundry, agency, leisure activities

There will be budgeted hours per department per week.

Also, maintenance costs, catering costs (provisions), agency costs. Staffing costs are usually 45 – 65% of total expenditure.

Of course, there are many other costs e.g., electric, gas but these are not costs that can be managed a great deal, whereas managing staff hours against occupancy is something that can be

Some facts you may need:

Incomes, as well as the £1.5 million from sponsors, there will also be revenue from NHS continuing Healthcare funding contributions £187.60 for everyone who requires high level support.

Average weekly costs for low level needs are £600 per week and £1200 for high level need

Present your excel table in the discussion here, and explain the reasoning behind your figures and the key trends that are apparent

Create a Budget in Excel (In Easy Steps) (excel-easy.com)

Business Report Part 2

Introduction – This is a summary of the elderly client group and the provision you are proposing for the elderly within the local authority. Keep it clear and brief. The purpose of the introduction is to set the scene for your readers so that they know what to expect from the plan. (100 words)

What is the vision of the project? Aim, and objectives

Background and definition of the market

Include here details of the demand for elderly services, some statistics within the Borough would be a good example to cite here. Services that are currently available could be mentioned. Provide some figures here to support the rationale for your business plan. You must use current literature (such as recent trends, service demand, market analysis of the service sector etc) to support your discussion Develop and present a 3-year budget to support your business plan. This should show how you will spend the 1 .5 million pounds over the 3 years. You may wish to make assumptions about the income and outgoings.

Maybe look at existing services for the elderly in the borough, where does this need strengthening n terms of support needs, what provision is there already in relation to care homes?

Include here a discussion of qualitative and quantitative data and the benefits this has had on formulating this business plan to provide a picture of needs.

Strategic Commissioning in (name of your local authority)

This is where you propose a partner is found, and the responsibility for service delivery is handed over to them. You can discuss mutually beneficial partnerships here in terms of strong service provider partnerships.

Why strategic commissioning? -give reasons, maybe to cut costs, improve service delivery, assist fast transformational services,

Establishing a team to evaluate and select the right partner to develop the service

Outcomes and benefits

Describe the service outcomes you want the partner to achieve for your project How will this benefit the elderly?

Clearly outline the benefits and the outcomes because of having the service commissioned. Implementation of a tender document what will be included? Contract negotiation Implementation and transition Performance monitoring and ongoing communication