To: SeaHorizon Home Care’s Advisory Board
Thereport presents a comparison of two US states in the quest toestablish the best location for the company about environmentalvariables that favor business success. The target company is SeaHorizon Home Care Company, with its headquarters in Florida, UnitedStates. The aim of the report is to provide insights into otherconducive areas of business in the country that would offer anexcellent platform for further expansions and commercialbreakthroughs. The report will include state comparisons and views ontheir conducive levels.
Problem: Where Is the Best Location for OurCompany?
Thehome care industry has undergone commendable changes over the pastdecade. The Sea Horizon Home Care has also shown significantimprovements on the geographical coverage and economic achievements.However, it is important to explore different areas that could bemore conducive and promising to the development of the company.Despite the fact that Florida has a larger population, it isimportant to seek to explore other areas in the quest to increasecoverage.
Alternative: Florida or Wyoming___?
Wyomingis the rival state, as it has continued to show significantdevelopments in its economy regarding the GDP growth. Despite havingfewer people, the state has a conducive environment for establishinghome care services. The rural nature of the state also favors homecare services because most aged people prefer to retire in theirhomes, in contrast to retiring at the nursing homes.
Selection Criteria: What Are Our DecisionPoints?
Thekey decision points of selecting the best location for the companyinclude among others the taxes. Taxes play a significant role in thesuccess of every business, be it emerging or established. A statethat has lower taxes than the other is more likely to attractinvestors. Therefore, a state with lower tax rates would be conducivefor establishing the company. Secondly, the demographics of a countryalso play a vital role in determining the environment of business.Every type of business has its target age, group. The home carecompany primarily focusses on the baby boomers and other old peoplewho require extra care to conduct their daily activities. Thirdly,the state climate is key to understanding the business environment ofa company. The environment of the location should be conducive enoughto the normal operations of business in the quest to ensure maximumproductivity. Extreme temperatures or other aspects of climate couldaffect some people negatively, reducing their effectiveness andefficiency. The three points help in making a conclusive decisionregarding whether to relocate or not.
Discussion: How Do the Two States Compare?
Thestate is among the nine states that do not have taxes imposed on itsresident’s personal income. It neither levies personal norcorporate income taxes, a condition that comes as a relief to theresidents. Wyoming does not assess or follow up on retirement incomethat a person or resident earn from a different state. Wyomingimposes personal and real property taxes on all goods except for somespecific and unique cases. The tax rates depend on the value of theownership but are usually 11.5 percent for property that isindustrial. The rest of goods, be it residential, commercial andothers are taxable from 9.5 percent of the assessed value. The statedoes not levy intangible assets including bank accounts, stocks orbonds. The Wyoming sales tax rates stand at 4 percent (Bell,2017).
Floridaalso has no taxes imposed on personal income, being among the ninestates that do not levy personal taxes. However, its sales tax ratesare relatively higher than those in Wyoming, standing at 6 percent(Bell, 2017). The property and realpersonal taxes are also present in the state, despite the fact thatit has no certain percentage of the assessed value. However, thestate has more exemptions from taxes in certain properties. Flags arealso free from sales taxes, while blind persons and senior citizensare also liable for exemptions. People are also free from intangibleasset taxes such as investments ("State of Florida.com |Florida Tax Guide", 2017).
Thetwo states have many similarities regarding the tax rates andexemptions. Despite their close resemblances, Wyoming seems betterand more resident-friendly than Florida.
Wyominghas seen a tremendous growth in the home care industry in the pastdecades, with an increasing number of nursing care homes and assistedliving facilities. Despite the high availability rates in the state,it has maintained a record low cost of its services, ranging at $19to $20 per hour. The cost is lower than the standard nationalaverage, with the state being position 36 out of the possible 51(Dibbern, 2017)..
Floridahas also experienced a vast improvement in the availability of homecare facilities and services. The state’s cost of home care is alsosmall, standing at $18 per hour. The costs of assisted living areabout $3000 per month, while the adult day care costs are $65 perhour (Valdmanis,DeNicola and Bernet, 2015).
Thetwo states have displayed commendable improvements in the past, withFlorida being on the upper hand about the growth in the industry. Thestate also has commendably low costs of living in home carefacilities and services. However, Wyoming has a lot of opportunitiesto grow and become an established player in the industry.
Wyominghas a population of more than 585,501 as of the year 2016, with moremales than females. The state has seen a population increase of 4percent since the year 2010. A majority of the Wyoming population isaged between 35 to 44 years, followed by the group of persons betweenthe ages of 45 to 54. 97 percent of the people live in households,with 39 percent of them being householders. Family homes also makemore than 67 percent of the total households, with nonfamilyhouseholds standing at 32 percent ("Wyoming DemographicStatistics", 2017).
Florida’spopulation stood at 15 million in the year 2016, with more women thanmen. Female persons made up of 51 percent of the total populationwhile males represented 49 percent. The state has seen a 10 percentpopulation increase since the year 2010, with the rate set to stretchfurther. The 35-44 age group also makes up the majority of thepopulation, followed closely by the 45-54 set. More than 97 percentof Florida residents live in households, with family homes dominatingover nonfamily households ("Florida DemographicStatistics", 2017)..
Thetwo states have conducive demographic changes for home care services,with a majority of the people being old. Despite the realsimilarities in the two demographics, Florida has a larger populationthan Wyoming. The state also has a higher population growth rate thanWyoming, presenting a real hope to the home care industry.
Wyomingexperiences an average of 13 inches of rainfall per year, a valuethat is far much lower than the usual average of 39 in the UnitedStates. The snowfall is, however, high at 54 inches, in contrast tothe US average of 25. The state also experiences more sunny days thanmost states in the US and has a comfort index of 63, better than thenational value of 54. The state’s UV index is level with thenational average ("Wyoming State Climate", 2017).
Floridaexperiences an average of 54 inches of rainfall per year, higher thanthe national average, with 0.01 inches of snowfall. The state alsosuffers more sunny days than the standard US value and has anexcellent comfort index of 80. Florida has a UV index of 6.1, higherthan the national average ("Florida State Climate",2017).
Thetwo states have also shown close similarities regarding their climaterecords. However, Florida seems to be better regarding the rainfallamounts and snowfall experiences. The factors contribute to the highcomfort index of 80 as opposed to 63 in Wyoming. Therefore, Floridais on the upper hand with regards to the climate.
Conclusions and Recommendations: Which StateBest Meets Our Needs?
Thediscussion has highlighted the similarities and differences betweenthe two states, providing insights into how conducive each state isto the well-being the Sea Horizons Home Care Company. Despite thehigh population and growth rate in Florida, Wyoming is a morepromising location for the company. The condition is as a result of ahigher rural living than Florida, with relatively high number ofpeople between the ages of 35 and 54. Besides, Wyoming has a higherGDP growth rate than Florida, making it more promising in an era ofincreased competition. An endeavor here could pose more benefits thanit currently experiences in Florida.
Bell, K. (2017). State Taxes: Wyoming | Bankrate.com.Bankrate.com. Retrieved 29 March 2017, fromhttp://www.bankrate.com/finance/taxes/state-taxes-wyoming.aspx
Demographic Statistics – Florida. 2017. InfoPlease. Retrieved Thursday, March 23, 2017, fromhttp://www.infoplease.com/us/census/data/florida/demographic.html
Demographic Statistics – Wyoming. 2017. InfoPlease. Retrieved Thursday, March 23, 2017, fromhttp://www.infoplease.com/us/census/data/wyoming/demographic.html
Dibbern, W. (2017). What does a Nursing Home Cost in Wyoming?.Dibbern.com. Retrieved 29 March 2017, fromhttps://www.dibbern.com/nursing_home_costs/cost_for_wyoming_nursing_homes.htm
Florida State – Climate. 2016. Sperling’sBest Places. Retrieved Thursday, March 23, 2017, fromhttp://www.bestplaces.net/climate/state/florida
Florida Taxes – A quick Look. 2017. State ofFlorida. Retrieved Thursday, March 23, 2017, fromhttp://www.stateofflorida.com/taxes.aspx
Valdmanis,V., DeNicola, A., & Bernet, P. (2015). Public health capacity inthe provision of health care services. Healthcare management science, 18(4),475-482.
Wyoming State – Climate. 2016. Sperling’sBest Places. Retrieved Thursday, March 23, 2017, fromhttp://www.bestplaces.net/climate/state/wyoming