Developing A Business Idea For Services For Retirees
The Problem
The main aim of this report is to emphasize the new business idea by using nine components of Business Model Canvas in order to determine the feasibility and major factors of the success for a disruptive competency on the basis of the business model in services for Retirees. The report will highlight the problems and addresses the advantages of the business of the model with taking help of the value creation. The main feature of the disruptive innovation is to alter complex and expensive activities into cheaper and hugely accessible.
The Problem
It has been analyzed that everyone wants to survive in a better way even after retirement and there are more than 60% of retirees are facing issues of the frightening crisis of running out of money. It has been found by the Australian National University (ANU) poll that there is a number of people who are concerned about their future as they have not enough idea to survive their life in a better way after retirement. It has been found from ANU poll that around 1,200 people belong to a wide socioeconomic background (Booth, 2017).
It has been asked by ANU in its survey about the expectations of the Australian about their inheritance, retirement, financial living standards; it has been found that they are not having an effective and safe plan for their future after retirement. It is required for the retirees of Australia to involve in an effective plan or in services as per their experiences so that they can get an effective policy after their retirement.
Services for Retirees
Everyone desires to survive a superior life even after retirement and the business of services for retirees will start enormous opportunities in order to target adults that are over 50 and who want a blissful retirement. It would be the business that includes a number of services for the retirees such as retirement real estate, retiree bMail services, Retiree Parking Options, Retirement and benefits Contacts, UC Travel Interest Program and nutritional counseling to help seniors look better (Edwards, 2016). It would be the business that helps the employee to think about their family and their future plan in which they can make their own house and focus on savings so that they can survive in a better way after retirement with their families (Keane, 2018).
The goal of the new business is to bring the creativity and the skills of our retirees to resolve issues and develop opportunities. It would be helpful in connecting the faculty, staff and high qualify personalities with tools as well as resources to facilitate with a smooth transition in retirement. Along with that, the business would be helpful in raising awareness of retirement programs and tools for retirees.
Benefits associated with Service for Retirees
Improved profits
The main aim of the business is to improve the efficiency of the business and increase the facilities for the retirees so that they can survive in a better way after retirement. By hedging the risk of future living standards, their risk would be eliminated and might lead to developed advantages (Spieth, Schneckenberg & Ricart, 2014).
Services for Retirees
Enhanced knowledge
By giving customers with daily consultancy, the new business would also amplify the entire level of knowledge linked with services for retirees in the country. The knowledge would be increased about the services of retirees.
Reduced risk
The clients linked with the business would provide the higher level of consulting services to retirees to invest in a better way for their future so that they can attain objectives for the company.
Feasibility
Feasibility screening has given an outcome in a way of changes to the starting idea (Johnson, Christensen & Kagermann, 2008). It has been found that there is a number of position where the planning is made by them for the next some years which is not decided. It is necessary for the retirees to think about the future plan and about the implications of going into aged care later in life. It is necessary for the seniors to focus whether they will stay their family home and who will able to pay the repayment deposit of hundreds of thousands of dollars. Moreover, it is needed for the business to have an effective team that should be capable of providing instant services to retirees.
The business model has nine building blocks that are helpful in defining the use of new business in different terms. The business model has the ability to identify the significance of recognizing consumers with a tendency to purchase (Joyce & Paquin, 2016). Potential customers need to have self-assurance in the expertise of the services which is provided by the new business for the retirees. In the context of the partner, it is needed for the business to have a partner such as government, community and other stakeholders.
Strong partner has the ability to permit the customer value proposition of a high quality, a low cost structure that helps to increase the revenues of the business (Quak, Balm & Posthumus, 2014). The role of the advisor and management is huge as they help retirees to know about the benefits or perks of the services which are provided by the new business (Rohrbeck, Konnertz & Knab, 2013). Retiree ID would be provided by the business to the customers so that they can access to services, campus discount, and discounted memberships.
Organizational structure
|
Department |
Number of employees |
|
Human resource management |
3 |
|
Research Team |
10 |
|
Consultants |
12 |
|
Finance and Accounts |
3 |
|
Sales Team |
4 |
|
Marketing and PR |
4 |
Sources of finance
The business does not require a immense speculation as it is chiefly a service. Nonetheless, the business would need a preliminary outlay as below:
|
Particulars |
Approximate expenses |
|
Expenses of HRM involving recruitment cost and salaries of employees |
AUD 15000 |
|
Infrastructure |
AUD 40000 |
|
IT expenses |
AUD 20000 |
|
Expenses on the sales team |
AUD 3000 |
|
Advertisement and promotion activities |
AUD 10000 |
|
Office overheads |
AUD 1500 |
|
Total |
AUD 89500 |
Forecasted revenue
|
Year |
Expected Costs |
Expected Revenue |
|
Year 1 |
AUD 72500 |
>AUD 48600 |
|
Year 2 |
AUD 52600 |
>AUD 70000 |
|
Year 3 |
AUD 47200 |
>AUD 84000 |
Critical Success Factors
This business would bring a huge change in the life of retirees as they will get good services so that they can survive a good life even after a retirement (Chesbrough, 2010). Retiree ID would be helpful for the retirees to get a plenty of advantages of retirement in various places such as parking, learning, real estate, counseling services and many more. Along with that ID would facilitate in providing a high quality of services to retire regarding low vision devices, spectacles, and contact lenses.
The workshops of new busies would provide necessary information about how to invest their money in right place so that they attain huge benefit of invest money in their future planning. Business will divide their services into four parts such as reading materials, financial planning resources, online tools and health and wellness. Reading material will entail pension, retirement saving accounts, health and welfare plans and additional benefits from the business. Under the part of financial planning resources, a business would entail Financial Wellness Workshops, fidelity one on one counseling, fidelity workshop and fidelity retirement review.
Online tools are major success factors for the business as it helps to provide instant services to retire about the planning about retirement and after retirement services (Gibler, Manuel Casado-Díaz, Angeles Casado-Díaz, Rodríguez & Taltavull, 2009). There is a various tools such as retirement quick check, budgeting, and debt management, take home pay calculator and retirement income planner that help in making a plan for retirements. With respect to health and wellness which is also the major factor of the success of the business, the business will offer a various plan in which retirees can get benefitted by various services which help them to live their future without worrying.
Conclusion
It can be concluded from the above discussion that the role of the business model in innovating and starting up a new business is huge as it facilitates in providing various information regarding the business. This information would help the business to get potential growth without hurdles and with proper planning. The report has been considered a new business of services for retirees in which the business would provide a lot of services to retirees so that they can live a better future with proper planning. The discussion has been made on the business model and organizational culture so that better understanding could be made about a new startup. Along with that critical business, factors have been discussed in detail which would be helpful in increasing the revenues of the business.
References
Booth, M. (2017). Most Australian retirees will run out of money before dying.
Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range planning, 43(2-3), 354-363.
M. (2016). Australians worried about quality of retirement, becoming burden on families, survey finds. Retrieved .
Gibler, K. M., Manuel Casado-Díaz, J., Angeles Casado-Díaz, M., Rodríguez, V., & Taltavull, P. (2009). Late life second move housing choices of international retiree migrants. International Journal of Housing Markets and Analysis, 2(2), 190-210.
Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing your business model. Harvard Business Review, 86(12), 50.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
KEANE, A. (2018). Why Australia’s seniors need to consider life after 85.
Quak, H., Balm, S., & Posthumus, B. (2014). Evaluation of city logistics solutions with business model analysis. Procedia-Social and Behavioral Sciences, 125, 111-124.
Rohrbeck, R., Konnertz, L., & Knab, S. (2013). Collaborative business modelling for systemic and sustainability innovations. International Journal of Technology Management 22, 63(1-2), 4-23.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&d Management, 44(3), 237-247.