A Sample Business Plan

1. EXECUTIVE SUMMARY

1.1 Overview

The primary purpose of this document is to formulate initial strategies and operating guidelines for WonderCare Professional Service Limited (which will be trading as WonderCare Recruitment or WonderCare Recruit, and may hereinafter be referred to as the ‘company’ or ‘WonderCare’), and its services, business model and trading prospects with the intentions of assisting management and staff in implementing and reviewing its goals and objectives. The document shall provide information which will help to understanding the predicted development, performance and forecasted position of the company, the principal risks and uncertainties likely to face the company and strategies used by the company to monitor this development, performance and position.

The information contained in this document may contain estimates and forward-looking statements. By their nature, these statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by the statements and forecasts in this document. The forward-looking statements reflect the knowledge and information available at the date of preparation of this business plan, and may be updated by the company if trading conditions change.

This document has been primarily prepared for WonderCare’s management and any other parties who may have an interest in the affairs of the company. The Company and its directors, employees or agents do not accept or assume responsibility to any other person in connection with this document and any such responsibility or liability is expressly disclaimed.

1.2 About WonderCare: Our Mission and Vision

To be recognised at all levels for our high standards of professionalism, service and quality of care provided within appropriate, safe and therapeutic environments.

We aim to provide staff that is able to nurture a good working environment which will attract, motivate, develop and retain the very best professional standards to our contractors.

To the care provider we purpose to be open, honest, fair and transparent in all our dealings. To integrate all these values into every aspect of our operation for the mutual benefit of our staff, clients and our team members.

Our ambition is to be one of the leading independent providers of highly skilled nursing and healthcare staff in healthcare services in the UK.

Our clients are assured by our extensive experience working with private hospitals and nursing/residential homes, as well as learning disability services.

Our aim is to provide a high quality service at a reasonable rate and go the extra mile to ensure that clients can trust us to deliver the best possible people for the job and worker continuity where possible.

2. STRATEGIC AND OPERATIONAL PLAN

2.1 Core Objectives

Our central objective is to be a unique and cost-effective provider of specialised healthcare recruitment solutions for the region. Our aim is to help healthcare professionals and businesses to maximise on their human capital, knowledge and skills by using unique methodologies to identify the most ideal staffing or career opportunities.

Today’s healthcare employers are demanding more in a market where skilled candidates are becoming harder to find. With our in-depth knowledge of the healthcare market and combining this with our staff’s experience and capabilities, we are confident the company will make the work of sourcing and placing candidates seem easier, enabling it to compete with the more established competitors.

We aim to succeed as a client-driven, high-quality and professional healthcare recruitment solutions provider, through harnessing our expertise in creating innovative, value-adding and sustainable human resources solutions. We aim to deliver our services in a way that meets and exceed our customers’ expectations, to the highest standards and at competitive prices.

The company will focus mainly on the temporary recruitment market but will also pursue permanent recruitment opportunities if they become available. We will operate as a specialist recruiter for the following specific job sectors within the healthcare market across the region:

  • Registered General and Specialist Nurses

Our nursing recruitment team works very closely with MOD, NHS Trusts, private organisations and healthcare providers to identify potential vacancies for qualified nurses over a broad spectrum of nursing specialties ranging from community, general, mental health, midwifery, and dental roles. We guarantee highly competitive pay rates to nurses and are also aiming for the best placement service provision to both our candidates and employer-clients. We have a wealth of experience and knowledge when it comes to nursing profession and in particularly registered general nurses (RGNs) and mental health nurses. We understand that integrity and confidence are two things that you look for in a leading nursing agency – we provide exactly that to all our clients.

  • Healthcare Assistants and Domiciliary Care Professionals

We aim to be a leading nursing agency that offers a wide range of healthcare assistant jobs in the region. We shall continuously filter healthcare assistants, simply to arrive at individuals that show the highest levels of experience and provide outstanding patient care and support. We shall offer both private and public positions for potential healthcare assistants that particularly have experience in a hospital setting and in domiciliary care. We supply staff to residential homes, care homes, rest homes, nursing homes, EMI, hospitals, children’s services, learning disability centres and mental health centres.

2.2 SWOT Analysis

Strengths                    

  • Provide numerous ongoing training and support to our candidates.
  • Strong client and candidate networks and good client relations in the region
  • An in-depth screening process; our candidates will undergo various assessments, depending on the role, including skills and competence assessments as well as DBS and other relevant checks.               
  • Use of multiple industry leading job boards and CV searching facilities      
  • Closer candidate and client relationships and fully understanding their exact needs.
  • Our transparent and competitive fees: we charge a competitive flexible rates and offer volume discounts to our employer-clients.         
  • Strong network and client relations in the region
  • Sound IT and social media capabilities as well as a good website and superior CRM and candidate data technologies

Weaknesses

  • The WonderCare brand is still new to the region.
  • Lack of sufficient manpower resources, in terms of experienced consultants, to fully exploit the vast opportunities in the region.
  • Insufficient high street presence, when compared to our larger rivals who have offices in most of the towns in the region.
  • A specialist approach may not compete well against general recruiters.

Opportunities

  • Building excellent online technology capabilities including unique social media tools (capitalising on the benefits of better use of the likes of Facebook, Linked-in, Twitter and Google+), video interviewing, as well as building active online talent communities and online behavioural assessments.
  • Building a sustainable regional niche business centred on having closer relationships with candidates and clients to ensure their complete satisfaction with our services, thus in turn build loyalty and longer term relationships.
  • Opportunity to build a lucrative and growing client-base in one of the UK’s fastest growing regions.

Threats

  • Economic and political uncertainty, especially driven by factors such as the UK’s EU membership challenges (Brexit), government cuts and financial instability; may limit economic growth leading to clients tightening their recruitment budgets.
  • Intense competition from both established players and up-coming low-cost recruiters.

2.3       Corporate Governance, Risk and Internal Control

The company will take a very cautious risk management approach in all its corporate activities. We believe that it is essential for the company to conduct its corporate affairs in accordance with the highest ethical standards. The company will take advantage of the vast range of expertise of its directors and management in helping with designing, operating and monitoring its policies, procedures and systems of internal control.

The company intends to appoint two non-executive directors, who are not involved in the day-to-day running of the company to make independent judgments on all risk, internal controls and audit related matters.

The company will also be appointing a firm of chartered accountants to assist in auditing and ensuring accurate financial reporting, in line with the UK’s generally accepted accounting practices and suitable for filing with the Companies House and HMRC.

The company is in the process of developing a set of financial reporting policies and procedures pertaining to recording of transactions, authorisation of acquisitions and disposals of assets and maintaining integrity in its financial reporting processes.

The company is putting in place sufficient Insurance covers for various risks that it may face, including:

  1. Public Liability
  2. Professional Indemnity
  3. Employer Liability

The company is registered and complies with the requirements of the Data Protection Act. The company is also pursuing its registration with the CQC (Care Quality Commision), which will help ensure it meets the industry’s best practices as far as compliance is concerned.

2.4 Organisational Structure

WonderCare is run by a team made up of the Chief Executive Officer, Operations Director and three members of staff.

Chris Hunter – Chief Executive Officer

Chris is a Registered Nurse and also holds an MBA degree. She has extensive nursing experience and a great passion for leading and developing people. She has also worked in various key roles within the NHS prior to setting up WonderCare. Chris will oversee strategy development, implementation and corporate governance within the company

Kyle Waters – Operations Director

Kyle is a Registered General Nurse and has over 15 years healthcare leadership and nursing experience within the NHS and the private sector. Kyle is a well-grounded leader with unrivalled skills and passion for the healthcare profession and played a pivotal role in the formation of WonderCare. Kyle will be responsible for all day-to-day operations including overseeing compliance, risk management, training and all recruitment processes.

Adrian Ellis – Business Development Manager

Adrian is a seasoned healthcare professional and has held several key positions within the NHS. Adrian is a skilled and knowledgeable professional, whose commitment and dedication were instrumental in the formation of WonderCare. Adrian will be responsible for new business development and client relations functions.

Alex Bell – Finance Manager

Alex holds a BA (Hons) in Accounting and Finance and a holder of the CIMA Accountancy qualification. Alex has vast experience from both blue-chip corporations and SMEs and has a great interest in start-up organisations. Alex will oversee all finance responsibilities for the company, initially on a part-time basis.

2.5 Training and Development

The company strongly believes in investing in its people, both staff and candidates. The company has a set budget and has engaged 2 leading training companies to provide ongoing training to staff and candidates in the following courses, as well as any other that become relevant:

  • Infection Control
  • Equality, Diversity and Inclusion
  • Food Hygiene
  • Fire Safety
  • Epilepsy
  • Control of Substances Hazardous to Health Regulations
  • Conflict Resolution
  • Information Governance
  • Lone Worker
  • Manual Handling
  • Moving and Handling
  • Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
  • Basic Life Support
  • Intensive Life Support

3. MARKETING PLAN

3.1 The Recruitment Market

The UK’s recruitment market is worth around £26 billion, with over 75% coming for temporary/contract recruitment and 25% from permanent recruitment (Deloitte, 2018). The industry is relatively sensitive to seasonal variations and economic influences, varying in the different sectors it serves. However, the healthcare sector tends to maintain steady revenues throughout the year.

Research by the Recruitment and Employment Confederation (REC, 2016) showed that in the 2014/15 financial year, the value of the jobs industry grew by 8.2% on the previous period and it forecasts that total industry turnover will rise by 9% in 2015/16, then by 8.7% the following year. WonderCare, as it penetrates its market, looks to increase its market by at least 100% for years 2 and 3, primarily through increasing its staff and building a loyal clientele.

Source: REC (2015)

An analysis of our region

Our region has a population of 5.3 million. Over 80 per cent of the population lives in urban areas, contributing to the one of the highest regional population density in the UK outside London.

Source: KPMG (2014)

The region has over 200,000 organisations operating, about 7% of the UK’s as the statistics from ONS (2018) illustrate. As figures from KPMG (2016) illustrate, the region has one of the largest healthcare recruitment markets in England and indeed a healthcare sector recruitment hotspot with significant growth in population, especially of the elderly.

3.2       Target Customers and Customer Management

Our key employer-clients will include NHS trusts’ hospitals, private hospitals and nursing/residential homes, as well as primary health and learning disability services within the region.

One way that we will use to make our mark and retain our clients is through excellent customer service, in our interactions with both candidates and clients. Whilst our larger and more established competitors seem relatively indifferent to managing the candidate and client experience, we focus on this to build a competitive advantage. We will put some quality and client-focus key performance indicators (KPIs) in place to ensure we monitor our performance in this regard.

Our client-focused approach will be centred on fully understanding their needs, being strict in our candidate selection process and ensuring a smooth onboarding and settling-in of our candidates. Armed with relevant and invaluable tools and our drive and optimism – we believe we will establish ourselves as a key player in the healthcare recruitment industry in the region.

We anticipate at least doubling our revenues and sales volumes for years 2 and 3 as we penetrate the market. Our hope is to drive the majority of our growth through repeat client business, which we hope will come from our client-focused approach. We also intend to drive growth through aggressively entering new sectors. From the beginning of 2016, we intend to have 3 experienced consultants with a thorough understanding of the healthcare sector.

The company will initially be operating from a small office at the XLS Business Centre. Consultants will constantly travel to clients and potential clients as often as required. The consultants will also have access to several Regus business lounges and local hotels within the region, particularly for meeting with candidates.

3.3 Competitor Analysis

The UK healthcare recruitment industry is extremely competitive and recruitment companies are in a constant war for talent. It is also a very fragmented industry, with about 20 major players accounting for almost 25% of revenues generated and the remainder of the sector is divided between several thousand smaller consultancies.

Researches by the REC and KPMG have identified the following as the key competitive issues to focus on:

•  Competition will intensify

“As hiring activity increases, healthcare recruitment businesses should expect competition to intensify – both in terms of headhunting candidates and keeping high-profile clients happy. As employers post an ever greater number of vacancies, the talent pool will shrink in relative terms.”

In order to counter this competitive challenge, we will focus on being more convincing to job seekers and employer-clients that our services are better than anyone else’s in terms of cost and quality, which are our key selling points.

•  Faster turnovers will put pressure on recruiters

“As the market improves, healthcare professionals already in employment will worry less about job security and might start thinking about new opportunities elsewhere. As a result, expect faster turnovers in 2015-16 than in previous years. You’ll also need to recruit more quickly than in the past. As workers turn nomadic to take advantage of a healthier economy, recruiters will be faced with filling a lot of sudden openings – and clients will expect candidates to be equally as high in quality as they were when business as slower.”

We will overcome this challenge through planning ahead. Ensuring we have 3 experienced consultants will help us stay ahead of the game and will enable us to keep up with the fast flowing stream of new clients and candidates.

•  Social media will become critical to the hiring process

“2015-16 will see social media play a bigger role in the hiring process than it has in the past. Lots of recruiters are already warming up to the benefits it offers and there will be more potential candidates available as a result – and competitors will be out looking for them.”

We will counter this challenge by being experimental and become an early adopter of various new social media tools and techniques including:

  • Being found on more social media platforms than our competitors
  • Carrying out pre-employment checks on candidates’ online profiles.
  • Using networks like Facebook, Twitter and LinkedIn to find prospects that are not actively looking for work.

• Big data will hit the mainstream

“Finally, recruitment – like almost every other sector – will continue to be shaken up by big data next year. Gartner predicts business intelligence will top the priorities of recruiters through to 2017, so there’s every chance real-time data analysis will hit the mainstream in the meantime.”

We will take advantage of our powerful performance and productivity tools to help us make a valuable contribution to our clients’ businesses. Using these tools, we will help in analysing retention, productivity and performance per employee; this could have a huge impact on client retention.

Key competitors

Below are the Yorkshire’s Top 5 Healthcare Recruitment Consultancies and their brief profiles. These will present the greatest competitive challenge because of their reputation and focus on quality. However, their greatest weakness is their significantly higher prices, which hopefully will make ours look much more favourable, as long as we do not compromise on quality.

Team 24 – With years of experience, Team 24 is one of the country’s leading healthcare recruitment businesses. Complete with its uncommonly personalized service, an iPhone app and a full corporate social responsibility programme, this is truly a recruitment agency for the 21st century. In the healthcare sector, Team 24 works with a huge diversity of clients to source permanent, contract, temp and interim talent in practically every role imaginable.

Mayday Healthcare – It not only has offices throughout the region, but also offers a robust jobsite that allows you to browse a huge variety of vacancies. The site, which is popular amongst candidates, allows to browse numerous healthcare jobs.

A24 Group – One of the largest healthcare recruitment businesses in the UK, Blue Arrow also has branches throughout Yorkshire and is a key player in the healthcare sector.

Hays Medical – Hays has a worldwide presence and its northern UK network includes dedicated regional/sector websites, as well as offices in throughout the region. The Hays UK website has numerous healthcare jobs.

Healthcare Locums – Working across a number of healthcare sectors, Adecco places candidates in temporary healthcare roles. The business has branches throughout the region and its website offers a vacancy search, career tips and more.

Rest of the market – The rest of the market comprises many smaller players, the majority with the less than 10 employees. The main advantages these smaller players include the ability to specialise in specific healthcare sectors/job roles, thus developing specialist expertise as well as the flexibility to lower their fees. However, we hope our focus on quality and customer service will help us gain a reasonable market-share.

3.4 Our Unique Selling Points ( USP’s)

1. Constantly innovating new client service add-ons

We are committed to providing personalised extra services (add-ons) to our core service offering in order to maximise value to our clients and candidates. Some of the value-adding

“service add-ons” which are tailored to meet each client’s needs include: free on-boarding and training.

2. Active use of creative technologies

We will focus on our genuine commitment to using innovative technologies to provide outstanding candidate and employer customer service, with particular focus on:

  • Use of numerous social media platforms to reach out, network and identify prospects
  • Use various means of communications including the likes of skype, facetime, whatsapp, viber, msn and text messaging to reach out and engage with candidates
  • Use technology to match-make our candidates to the right jobs and to identify their core skills and areas of expertise

3. Operate as a boutique-fit Yorkshire healthcare recruiter with niche local knowledge

We want to present ourselves as a Yorkshire specialist healthcare recruiter with in-depth local expertise of the region’s recruitment needs. We will provide our consultants knowledge and skills to enable them to build sector-specific industry knowledge. We will be using continuous training and development to ensure our consultants stay ahead of the game, with wealth of industry knowledge in their sectors. We will also demonstrate the specialist knowledge in the form of relevant articles and expert reports to clients and candidates on a regular basis.

3.5 Potential Hurdles

1. Increasing competition might make growth prospects challenging

The recruitment industry is booming. The REC revealed that 4,083 new recruitment agencies were launched in 2014, up 7% from the previous year. There is particularly increasing challenges from cheaper one-person locum recruiters, in-house recruiters and low cost smaller niche recruiters. By focusing on our USPs, we should be able to have our own decent slice of the market.

2. Dealing with the high volume of calls, particularly from job-seekers

In order to focus on getting new business, it will, at times, be challenging to manage the high volume of calls, particularly from job-seekers. Use of telephone answering support services (such as Moneypenny) might be considered, if it proves to be a real challenge, to ensure consultants focus more time on issues they consider to be of a high priority.

3.6 Pricing Strategy

Our key competitive driver will be focusing on our significantly lower costs of recruitment (ranging from 10 – 20% margin, depending on nature of placement) and their positive effect on our clients’ cost structure and bottom line. In addition, unlike most of our competitors, we charge nothing for our service unless we manage to place someone with our clients.

The two graphs below from a research by Deloitte show our rates are amongst the lowest on the market. In addition, we will be offering clients an introductory lower rate for the first placement. There will be no surprises or add-ons. Our long term strategy is to offer genuinely sustainable low prices for a high quality innovative service provision in an honest, reliable and efficient manner.

(Source: Deloitte, 2014)

3.7 Advertising and promotional strategy

Our relatively low-cost but intensive marketing strategy will include the following:

  • Social Media Marketing on the likes of Linked In, Facebook, Twitter and SEO on Google Job advertising on job boards and websites such as monster/reed/indeed/totaljobs, as well as on jobcentre boards, CV library, etc. Email marketing on our quality database
  • Postal marketing on selected potential clients
  • Attending networking events, job fairs and other industry related events
  • Writing promotional articles for relevant online and print media
  • Telephone cold calling on high quality leads
  • Offering gifts and promotional material for referrals and leads
  • Partnering & database-sharing with other service-providers
  • Door-to-door cold calling visits to highly promising potential-clients

4.  FINANCIAL PLAN

The responsibility for the integrity and objectivity of the financial information presented in this business plan rests with the company’s management and Board of Directors.

The accompanying projected financial statements have been prepared in accordance with accounting principles generally accepted in the United Kingdom. Due to the inherent nature of forecasts, estimates and professional judgments have been applied, but may be subject to risk of misstatements if operating conditions change substantially.

4.1       Key Assumptions

  1. The average salary for each permanent placement for the purposes of this forecast is £20,000 per annum
  • The average monthly salary for each temporary/contract placement for the purposes of this forecast is £2,000 per month
  • The growth in sales is in line with increased market awareness and improved marketing response.
  • In year 2, the company intends to employ more recruitment consultants and therefore expects to double its revenues and profits.
  • Salaries: Chief Executive Officer: £18,000 pa; Operations Manager: £30,000 pa; Business Development Manager: £18,000 pa; Finance Manager: £12,000 pa (Part time role); Admin staff £12,000 pa
  • Motor Vehicles – Lease 2 cars at £300 pm per car
  • Insurance costs: Business Insurances £200 pm; Car Insurance £50 pm

4.2       Cash Flow Forecast

4.3       Forecast Statement of Profit and Loss

4.4       Forecast Statement of Financial Position

Forecast Statement of Financial Position as at 31 July 2017  
   
Non Current Assets  
Property, Plant & Equipment 3,750
   
Current Assets  
Inventories 1,250
Trade and Other Receivables 24,700
Cash & Cash Equivalents 84,950
   
TOTAL ASSETS 114,650
   
Equity  
Ordinary Share Capital 1,000
Retained Earnings 68,320
   
Non Current Liabilities  
Directors’ Loans 20,000
   
Current Liabilities  
Trade and Other Payables 8,250
Tax Payable 17,080
   
TOTAL EQUITY & LIABILITIES 114,650