The Business Plan
Introduction
As Kenya’s population ages, the need for quality elder care is becoming increasingly
urgent. Unfortunately, many elderly people are left neglected and without any care and support
they deserve. This business plan outlines our strategy to establish a network of care homes across
Kenya. Our care homes will not only offer essential medical and personal care services but will
also create a nurturing environment where the elderly can live with dignity, respect, and purpose
1.Executive Summary
Mission Statement
Our mission is to provide compassionate, high-quality care to the elderly around Nairobi.
We are committed to offering tailored care that meets the physical, emotional, and social needs
of the elderly. Through this initiative, we aspire to be a beacon of hope for families who struggle
to care for their elderly loved ones and set new standards for elder care in Kenya. Our goal is to
ensure that every elderly person in our care lives their later years with purpose, peace, and
happiness
Vision statement
Our vision is to establish a network of care homes across Nairobi, dedicated to
transforming the standard of elder care in the city. We aim to become the leading provider of
compassionate and professional care for the elderly, ensuring that no senior citizen is left to
suffer neglect or isolation.
Our goal is to expand this model across multiple counties after establishing in Nairobi,
establishing a presence in urban, suburban, and rural areas to meet the diverse needs of Kenya's
aging population. Over time, we envision growing into a nationwide network, potentially even
expanding regionally within East Africa.
Other investors will be interested in being part of us because of the following: our
business is addressing a critical need in the country, we are using Sustainable and Scalable
Model, our Innovation in Elder Care such as use of technology.
Product/Service Summary
Our company offers a range of elder care services designed to provide compassionate,
personalized care in the following areas:
Residential Elder Care: Full-time, homelike care with individualized care plans focused on
comfort and dignity,
Specialized Memory Care: Tailored services for those with dementia and cognitive impairments,
using evidence-based practices to enhance quality of life.
In-Home Care: Flexible, personalized care delivered in the client's home, promoting
independence and community connection.
Day Care Programs: Daytime care with social, medical, and wellness activities, supporting
families who need daytime assistance.
Palliative and End-of-Life Care: Compassionate, holistic care focusing on pain management and
emotional support during end-of-life stages.
Community Outreach and Education: Workshops, seminars, and support groups to raise
awareness and educate the community about elder care.
What makes our company unique is the following: Personalized care plans and holistic
approaches addressing physical, emotional, and social needs, Integration of the latest care
practices and technology and Strong emphasis on community involvement and cultural
sensitivity tailored to Kenya’s elderly population.
Market Opportunity Summary
Kenya's population is aging rapidly, but the infrastructure and services to support the
elderly are severely lacking. Many elderly individuals face neglect, poor living conditions, and
inadequate access to healthcare. This gap presents a critical need for specialized elder care
services.
Traditional family structures are evolving, with more people moving to urban areas for
work, leaving fewer family members to care for aging relatives. As a result, there is an increasing
demand for professional elder care services that can provide the support traditionally offered by
family members.
These trends translate into a significant market opportunity for our company to become
the leading provider of elder care in Kenya. By addressing the unmet needs of the elderly
population, we position ourselves in a high-demand, low-competition market. Investors can
expect sturdy growth potential as we scale our services to meet the increasing demand, making
this venture not only a financially rewarding opportunity but also one that contributes to solving
a pressing social issue.
Traction Summary
Next Steps
Our next objectives include expanding our care home network by opening additional
facilities in key regions of Nakuru and Eldoret, and within other Nairobi environs, launching our
in-home care service to reach clients who prefer aging in their home place, and developing
specialized memory care programs to cater to those with cognitive impairments. Achieving these
milestones will significantly increase our market presence, diversify our service offerings, and
position us as the leading elder care provider in Kenya. This growth will not only enhance our
revenue streams but also solidify our reputation as a pioneer in compassionate, high-quality elder
care.
2. Company Synopsis
Many elderly individuals in Kenya face neglect and inadequate care due to a lack of
proper elder care infrastructure and changing family dynamics. They often endure poor living
conditions, insufficient medical attention, and emotional isolation, which significantly
diminishes their quality of life.
Our company addresses this problem by providing high-quality, personalized elder care
through a network of well-designed care homes, in-home care services, and specialized
programs. We offer a compassionate and comprehensive approach to meeting the physical,
emotional, and social needs of the elderly. Our model includes individualized care plans,
specialized memory care, and a strong focus on community involvement and support, ensuring
that each elderly person receives the respect, attention, and care they deserve.
3.Market Overview
Kenya’s elder care market is rapidly expanding, driven by a growing aging population.
As of 2024, over 2 million Kenyans are aged 60 and above, and this demographic is expected to
double by 2040. The current elder care infrastructure is insufficient to meet this demand, creating
a substantial market opportunity for high-quality care services. Our company is well positioned
to tap into this market, addressing the critical need for professional and compassionate elder care.
The elder care sector in Kenya is experiencing significant growth, fueled by increasing
awareness of aging-related issues and a rising middle class seeking quality care options for their
elderly relatives. The market is projected to grow at a compound annual growth rate (CAGR) of
8% over the next decade, reflecting the expanding need for specialized elder care services and
the increasing willingness of families to invest in high-quality care for their loved ones.
Trends driving the demand include the following: Increase in the aging population,
urbanization, increased awareness of quality health
Success stories
Nikko Home Care is in Karen, Nairobi. Founded in 2018, it operates on multiple
healthcare provision facilities across the city, majorly catering to a high-income demography of
the city. This care home was very instrumental when we were making the decision on the capital
requirement and the expected revenue
4.Product
We offer individualized care plans tailored to each resident’s specific needs, preferences,
and health conditions. These plans are developed in consultation with healthcare professionals,
families, and the residents themselves, ensuring that every aspect of their care
For residents with dementia or cognitive impairments, we provide specialized memory
care services. This includes structured activities designed to stimulate cognitive function, secure
living environments to ensure safety, and therapeutic interventions to manage symptoms and
improve well-being.
We offer both residential care and in-home care services. This flexibility allows families
to choose the care option that best suits their needs, whether they prefer their loved ones to
remain at home or move into one of our care homes.
We emphasize strong connections with the community and family members, offering
regular family visits, community events, and education programs to keep everyone involved in
the care process.
Technology we will use
Our care homes will use advanced care management software to track and manage
residents’ care plans, medication schedules, and health records. This technology ensures that all
care is coordinated, accurate, and up to date, allowing our staff to provide the highest level of
care.
For memory care, we use specialized cognitive therapy tools and software designed to
enhance memory, attention, and problem-solving skills. These tools are part of our daily
activities and are crucial in maintaining and improving cognitive function in residents with
dementia or other cognitive impairments.
5. Revenue Model
Revenue Channels:
The primary source of revenue will come from fees charged for full-time residential care.
These fees will be structured as monthly payments, covering accommodation, meals, daily care,
medical supervision, and participation in wellness programs.
Families will pay daily or weekly fees for our day care programs, which provide elderly
individuals with care and activities during the day.
We may also generate revenue from workshops, seminars, and training sessions offered
to families and other caregivers, although this may initially serve more as a community service
than a significant revenue stream.
Additional revenue will come from specialized services such as memory care, palliative care,
and therapeutic programs. These services may have premium pricing due to the expertise and
resources required.
Pricing
Residential Care: Pricing will be tiered based on the level of care required, ranging from
basic care to more intensive medical and memory care. Rates will be competitive but reflect the
high quality of services provided.
In-Home Care: Pricing for in-home care services will vary based on the duration and complexity
of care, with options for packages that offer discounts for long-term commitments.
Day Care Programs: Day care fees will be set at an affordable rate to attract a larger client base
while ensuring sustainability.
6. Operating Model
Critical Costs
Labor Costs: Labor is the most significant cost driver in the elder care business, including
salaries for caregivers, nurses, administrative staff, and specialized personnel like memory care
experts. These costs directly impact service quality and operational efficiency.
Facility Maintenance and Operations: Costs related to maintaining the care home facilities, such
as utilities, food, medical supplies, and routine maintenance, are also critical. These costs must
be carefully controlled to maintain profitability, especially as the business scales.
Technology Implementation: Investing in care management software, telemedicine tools, and
other technological solutions is necessary to streamline operations and enhance care quality.
Ensuring that technology investments lead to cost savings and improved service delivery is key
to managing these expenses.
Cost Maturation & Milestones
Labor Costs: Initially, labor costs will be high due to the need to hire and train staff. However, as
operations stabilize and staff become more experienced, these costs are expected to mature, with
improved efficiency and reduced turnover leading to lower training and recruitment expenses.
Facility Costs: Initial setup and maintenance costs may be high, particularly in establishing new
care homes, these costs should stabilize as the facilities reach full occupancy. Cost management
milestones include achieving full occupancy to spread fixed costs over a larger revenue base and
implementing energy-efficient practices to reduce utility expenses.
Customer Acquisition Costs: Early-stage customer acquisition costs might be relatively low,
relying on word-of-mouth and local marketing. However, as the business scales and seeks to
attract more customers, these costs may rise. Monitoring these costs and finding ways to
optimize marketing spend, such as through targeted digital marketing or referral programs, will
be crucial as the company grows.
Investment Costs
Technology Investments: Investments in technology, such as care management software,
telemedicine platforms, and remote monitoring tools, are expected to pay off by improving
operational efficiency and enhancing the quality of care. These investments should reduce
administrative costs, streamline care delivery, and improve resident outcomes, leading to higher
customer satisfaction and occupancy rates.
Facility Expansion: Expanding the number of care homes is a significant investment that will
lead to long-term growth. While the upfront costs are high, these new facilities will generate
additional revenue streams and help the company capture a larger share of the market. The
payback period will be reached as the new facilities achieve high occupancy rates.
Staff Training and Development: Investing in ongoing staff training and development is crucial
to maintaining high care standards. This investment will pay off by reducing turnover, improving
care quality, and enhancing the company’s reputation. Over time, a well-trained and experienced
staff will enable the company to operate more efficiently and attract more clients.
Operating Efficiencies
Innovative Recruitment and Retention Strategies: By focusing on innovative recruitment
strategies, such as partnerships with nursing schools and offering competitive benefits packages,
the company can attract and retain top talent more effectively than competitors. This reduces
turnover costs and ensures a consistently high standard of care.
Streamlined Customer Support: Efficient management of customer support costs will be
achieved through technology, such as automated scheduling and communication tools. This will
reduce the need for extensive administrative support while ensuring that customer inquiries and
concerns are addressed promptly.
Economies of Scale: As the company expands, it will benefit from economies of scale,
particularly in purchasing supplies and managing facilities. Bulk purchasing of food, medical
supplies, and other essentials will reduce per-unit costs, while centralized management of
multiple facilities will spread administrative costs over a larger revenue base.
Enhanced Service Value with Scale: As more clients use our services, the value we provide will
increase through enhanced community activities, broader care offerings, and improved facilities.
This network effect will create a virtuous cycle, where increased client numbers lead to better
services, attracting even more clients and driving growth.
7. Competitive Analysis
In Nairobi, the elderly home business is populated with a different mix of established players and
new business entrants. To flourish and compete effectively and fairly, it is important to
understand our key competitors in the Market. For instance, Nikko Home Care is situated in
Karen, Nairobi. Founded in 2018, it operates on multiple healthcare provision facilities across
the city, majorly catering to a high-income demography of the city. Their strength lies squarely in
their premium services and well-established brand, including medical care and recreational
activities for the aging population of the city. Traction-wise, Nikko Home Care generates a
substantial annual revenue attributed to its loyal customers, partly also due to their important
venture fundings from local investors and donations from friends.
Another notable competitor is Chesire Home for the elderly, an entrant based in Nairobi's
suburb slums of Kariobangi. It focuses on affordable elderly care solutions for the low-income
residents of the city. While still in its growth stages, it has attracted attention with its competitive
pricing and comprehensive care packages offered. Its revenue generation is moderately low, and
it has therefore received early-stage funding from private investors. Despite being in a slum
setting, its focus on personalized care and affordability poses a direct challenge to more
established players like Nikko Home Care.
Comparing Nikko Home Care to Chesire Home for the elderly, the latter offers higher
quality premium services but at a significantly higher cost, while Chesire’s affordability appeals
to a different market proportion. Better understanding of these dynamics helps to position our
business as either a premium or budget-friendly alternative or both, all depending on our
strategic choices.
8. Customer Definition
Our target demography for this business here in Nairobi primarily includes adults aged
60 and above who require assistance in carrying out their usual activities of daily existence and
comfort. This demographic trend tends to be more skewed towards female, showing a
significantly higher life expectancy rates among women than men in Kenya. This According to
recent data population survey census in Kenya of 2019. Many of these individuals living in this
city have moderate to high disposable income, because most of them are often retired
professionals, former businesspersons, or individuals with pension benefits. Our customers are
the city dwellers, targeting those living in Nairobi's more affluent neighborhoods, like Westlands,
Karen and Runda. These individuals are more concerned with the quality of care offered to them,
their safety and comfort, and are ready to invest in services that will provide a high standard of
living and health care for them. Proper comprehensibility of these priorities allows our business
to tailor offerings that meet their specific needs and expectations.
9. Customer Acquisition
For the acquisition of customers for our business, a multi-channel marketing strategy
shall be employed. Initially, we shall focus on digital marketing and product promotion channels
such as targeted online ads and google search engine optimization (SEO) to reach our potential
clients. Additionally, different social media platforms shall be utilized to fully engage with
customer’s families and caregivers, sharing testimonials and informative content about elderly
care services we are offering. We shall collaborate with local hospitals and Nursing homes to
establish referral partnerships for our clients. Direct mail campaigns aimed at affluent
neighborhoods and local community events like the Chief’s Barazas, Seminars and Conferences
will help raise awareness. The initial budget for these channels includes adequate allocations for
our partnership development, online ad expenditure, and content creation. Through targeting
specific geographic locations of the city and integration of both traditional and digital marketing
strategies, we aim to gain a robust customer acquisition means.
10. Traction
As of this moment, our business is in its initial stages of product development, with plans
to launch our first facility with business operations within the next six months. A prototype of
our business service has already been tested in our pilot programs, and the feedback has been
positively encouraging. We are establishing good relationships through MOUs with local
suppliers for manufacturing and distribution of necessary equipment and services that are
essential in our business facility. Early acquisition of customers is our main and most critical
focus. We aim to secure a solid and deeply rooted customer base through planned pre-opening
promotions and community outreach programs. Our goal is to generate initial revenue by the
turnover of the first quarter of the year, and we prospect steady growth as we scale up our
operations. Testimonials, endorsements, and feedback from the early users will be significant in
building credibility of our service product.
11. Management Team
Our business management team comprises highly experienced professionals who have
diverse backgrounds in both business management and healthcare delivery. Dr. S.O, our Medical
Director, brings along with him over 20 years of technical experience in geriatric care and has a
proven record of accomplishment in managing several elderly care facilities in Kenya. His role
involves overseeing all medical services rendered and ensuring high standards of care are
attained. J.N the Operations Manager has extensive experience in logistics and facility
management. She is responsible for staff coordination and daily operations of the facility. Her
background includes managing multiple facilities both locally and internationally and
streamlining operations for efficiency. Lastly, we have A.K, our Marketing Director, he has a
reputable background in digital marketing and brand development in Kenya having worked with
different media companies in the country. He will therefore lead our marketing efforts, focusing
on brand positioning and customer acquisition.
12. Funding
Our funding is projected to secure a whooping KSh 50 million to cover all startup costs,
which include initial marketing expenses, staffing, and facility development. This amount has
been determined based on detailed prospections on financial projections and cost estimates. Our
investors will receive equity in exchange for their investment portion in the business, with
potential returns highly linked to the business’s growth and profitability. The funds from our
investors will be allocated as follows: 30% for the facility development, 20% for training and
staffing, 25% for customer acquisition and marketing, and 25% for other contingencies and
operational costs. Key milestones upon securing these funds will include securing initial
customers, achieving break-even within 18 months (about 1 and a half years) of service delivery,
and expanding our market base to additional locations both in the city and within its environs.
Investors will significantly benefit from our growing market demand for the services rendered
and our team’s expertise in the delivery of high-quality services.
13. Financials
The financial projections for this business include an income statement, break-even
analysis, the balance sheet, and cash flow projection. The income statement forecasts the
business’s revenues based on service fees and anticipated customer occupancy rates, while the
balance sheet outlines the business assets, we are owning such as the business property and
equipment, liabilities, and its capital. These financial statements will help to provide a clear
picture of our business's financial health and guide us through strategic decision-making
processes.
