Posted by Matthew Deutsch on November 18th, 2011 at 09:36pm
In this article, we will discuss the development of a Hospice SWOT analysis, its development, and how it can be used to acquire financing from a bank or investor. Hospices generally are able to remain profitable and cash flow positive in any economic climate due to the fact that they are able to render a service that is in constant demand among the general public. One of the best aspects of a hospice is that they are able to generate highly gross margins from their services. A well written Hospice SWOT analysis will feature a strengths section, a weaknesses section, and opportunities discussion, and a threats discussion. Foremost, you should make mention of the fact that your hospice business will be owning a large amount of real estate as well as other tangible assets that can be used in conjunction with obtaining SBA loans or other traditional forms of bank financing as you progress through your operations. This is one of the better strengths of operating this type of business. Additionally, regardless of the underlying economic climate, the demand for quality hospice care is going to be in demand despite an economic recession. As such, this should be discussed prominently within your Hospice SWOT analysis as well as your business plan in order to ensure that you receive the financing that you need.
Most importantly and first, you are going to want to focus heavily on the strengths that are associated with your hospice. Foremost, you should again reiterate the high gross margins generated from your hospice services while also showcasing the generally low costs associated with operating this type of business. Another important mention should be the relatively low cost overhead associated with operating this type of business.
Also within the strengths section of the SWOT analysis, you should focus on your abilities to operate this business on a day to day basis, your experience as an entrepreneur, and how you intend to bring the operations of your hospice to profitability very quickly.
The next section of the Hospice SWOT analysis focuses significantly on the weaknesses that are associated with this type of business. Foremost, you should heavily discuss the fact that there are many other types of businesses that operate in a similar capacity to your hospice. You may also want to discuss the relatively high start up costs that are associated with a hospice.
Next, you are going to want to focus significantly on the opportunities that your business will have to expand during its first five years of operation. This may include developing new locations, hiring additional personnel, and engaging in a broad based marketing campaign that will ensure that your hospice business is able to rapidly expand and repay its debts on a timely basis.
Finally, you are going to want to effectively showcase to your SBA loan banker or investor the threats that will be faced by your hospice. We strongly recommend that you emphasize a number of these issues as it will be to the benefit of your investor or banker to see how you intend to mitigate these risks as time progresses.
As always, we strong recommend that you work closely with a number of professionals including CPAs, attorneys, SBA loan consultants, conventional loan consultants, and other professionals that will ensure that you have produced a Hospice SWOT analysis and business plan that is appropriate for both a bank and a potential investor. It is imperative that you have a clear understanding of the complex nature of raising capital for your venture and by having a number of professionals in place – you will be in an outstanding position to receive the capital you need in order to start your hospice.
Tags: Bank Financing, Business Plan, Cash Flow, Conjunction, Economic Climate, Economic Recession, Entrepreneur, Focus, Gross Margins, Hospice Services, Hospices, Investor, Quality Hospice Care, Real Estate, Sba Loans, Swot Analysis, Tangible Assets
Under SBA Loan SWOT Analysis