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Promedica24 Business Report

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Question: The task is about a new business which is operating in overseas UK (PROMEDICA24), our task is to bring that business in Australia. We have to prepare report and pitch our business to potential investor.

Answer: Introduction: This report consists of hoe Promedica24 is a profitablebusinessventure for the investors and what are the likely financialstatistics associated with the business. The report also highlights the various profitabilityprospects, which will help in drawing more investors.

Profitability prospects: Promedica24 has established themselves to be the largest care providing franchised business in Europe, offering 24*7 live in services as an authentic alternative to the various residential care homes. The carers reside with the client and provide them with companionship and on-on care. The role of the franchisee is to be introduce and educate the health care professions and the families in needs to the various services being offered by Promedica24. The business venture aids the clients with recruiting and training the carers, handling the registration with the various industry regulators, employing the care managers, and invoicing the clients. The business has an established presence in more than 100 franchises in and around Europe with providing for more care to than 19000 families (Promedica24, 2019). The Franchise partners of the business venture will receive commission on every successful care package being provided in fair compensation for their work, generating a growing and on-going income stream in the process. The franchise owners will also benefit massively by being part of a team which provides the highest standards of care and support with fully tested ad tried procedures, extensive services for support and back-up from an Industry leader.

Furthermore, the franchise owners would not be required to recruit or train the care workers. They would not require registration with Care Quality Commission and other health Service monitoring bodies either as Promedica24 will undertake the registration or regulated activities. The business venture has acquired tremendous traction in the market particularly due to the ageing population and the anaemic social care system, which struggles in providing care to the patients in the residential facilities. This has accentuated the business cause of the organisation and has presented a potential avenue for capitalising on the demand with franchising.

Return on Investments: The return on investment on an business venture such as Promedica24 is stipulated to be substantially higher. The working from home opportunity and the minimal investment has helped in creating a low risk business model which will guarantee a high rate of Investment. The average contract value for the clients based in UK is around £750 per week, which will amount to be around 1,390 Australian Dollar. The average will be a bit lower than UK standards, but approximate $1200 and 3 clients per month will generate $3600 and a revenue of $10000 is expected for the first three months. The business aims to expand with being present in more than 3 franchises and operating at a scale of $40,000 in the first fiscal year.

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Start Up costs: The start-up costs incurred in setting up a franchise in UK is around £15,000 plus VATandrequires extra capital of £5,000-£10,000 for helping in to fund the businessgrowth and with a 9% service fee for each month (Promedica24, 2019).Thestart-up expense translates roughly to 27,771or 28000 Australian Dollars. Since the business will be primarily home based, the expense incurred will be >$7000 for the hardware and other technical necessities. Other miscellaneous expenses is expected to be around $5000. The Marketing and the support staff will incur further $25000 per month, with the administrative business support professionals included. The total expense amounts to $75000 for the initial start up.

Projected growth targets: As the market has highlighted that there is a sustainable demand for quality driven and reliable live in care services, collaborating with Promedica24 on the business front will help in driving in more revenue and help in bolstering commercial presence in the market.

The Projected growth targets will include slowly expanding the client base, with accounting for more than 3 care services being provided in during the first month. This will have to be expanded to average of 5+ in the succeeding months. The growth will be measured by accounting for the Key Performance Indicators and will factor in the revenue generation. The business has the growth target of becoming a $40,000 company in the first fiscal year, operating from more than 3 franchisees in nearby locales.

Projected Payback periods: The projected payback period is 6 months from the issue date. The payback period has been calculated on the basis of the expenses and includes the sales expectation.

Expected Sales: The business venture is essentially a management franchise, the organisation works with the clients and their families for ascertaining their requirements and supporting the provision for suitable staff for caring and offering support, in a bid to ensure utmost customer satisfaction. The expected sales of the organisation is ball parked around the range of $10000 for the first 3 months of operation. With servicing for more than 3customers a month, the business is expected to rake in an average of $4000 per month on sales.

Conclusion: The report presents the profitability potential and the expected financial data regarding the business expense of the organisation.The report states that the estimate expense in start-up of a franchise will be $75000 and the first year generation of revenue is stipulated to be around $40000.

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