RAISING CAPITAL

Raising Capital

Financial Plan for Nursing Home

Introduction to the Business

The Millennium Care and Nursing Home is a new venture. It is a privately owned modern nursing care facility, which caters thirty old aged citizens who are able and willing to pay for their own care. The nursing home provides an alternate to the safe and secure environment of home with specialized care services according to the individual's nursing needs and preferences. This will be provided under the supervision of qualified staff that endeavors to provide premium quality services for reasonable charges and within easy reach. Health care professionals will conduct the business in joint partnership of four. They comprise of people who are well qualified and focused towards their destination. The partners include a general practitioner, a physiotherapist, a community nurse and a cardiac nurse. Together this pool of knowledge based people will surely guarantee the success of the venture, taking it to newer heights and growth. All the partners hold a Masters Degrees in Health Care Management which guarantees the highest possible standard of care for each service user.

Need for Raising Capital for Business

Capital is the essence for the success of ventures. Ventures need to use capital to run the business, such as product purchases, shop rent, to make profit, and even need more capital if engaged in a large number of commercial projects. Capital is enterprises' blood, driving force behind economic activities of enterprises and sustained impetus. Therefore, effectively raising capital is an important factor for the enterprise creation, survival and development. However, as the main body involved in a dynamic environment, enterprises will encounter more varieties of financing instruments and more complicated financing environment.

Cash is a vital resource for organizations. To maintain financial stability, the organization must have enough cash to operate the activities. Cyclical and seasonal fluctuations also affect the funds of the organization. Organization must plan when cash flows are generally lower than the cash outflows. The overall objective of cash management is to make sure that there is enough cash to pay the expenses (Anthony and Young, 1994). Cash and investment management is done through the statement of cash flows and cash flow forecast and budgeting.

Industry Analysis

The industry of nursing homes has grown magnificently over the last fifteen years. The last economic analysis and census shows that the industry's growth rate in the last year has been on a high with 31.3 percent. This growth has been tremendous. This is normally attributed to the increased trend of elderly people preferring to stay within these facilities where they are consoled and cared for just like their households. The cordial environment is what compels them to come to the nursing homes in hope of a better life. Larger and established institutions in the same industry are however facing problems because of their structured, typical environment and cold nature of the services.

Source for Funds

Partnership

The partnership for The Millennium Care and Nursing Home consists of four individual partners who are equal in their ...