Owning an assisted living business is an engaging and lucrative way to help senior and disabled citizens. Before diving in, however, it is vitally important that one understands their target market before embarking on this type of enterprise.
Assisted living communities differ from nursing homes by offering housing and care services for senior residents at an affordable cost. Activities, services and fees for activities may also be charged according to each resident’s level of need.
Business plan
An assisted living business plan serves as a blueprint that outlines its goals and strategies, offering information about its services, 5-year financial projections and project proformas as well as personnel requirements and policies that the business will implement.
Executive Summaries for Residential Assisted Living Businesses The executive summary should outline your business history and goals; additionally, include any legal structures (S-corporation, LLC or sole proprietorship).
The next section of your business plan should outline your products and prices. Here, you should include information on specific services your facility provides such as exercise classes, transportation services and pet accommodations. Also in this section should be costs associated with starting and operating your facility – building costs, furniture purchases and startup expenses are examples. Financial statements as well as 5-year projection charts should be saved for an appendix.
Location
Assisted living businesses should be situated in areas that are safe for both clients and staff members, comply with local zoning regulations, and accommodate medical equipment and furniture as part of the business operations.
Selecting an optimal location will improve your odds of success, and effective marketing is key to drawing in new clients while maintaining existing ones – this may involve advertisements in newspapers and periodicals, as well as creating a website dedicated to your business.
Aspiring owners must also ensure their business is registered with all necessary authorities and has all required licenses and permits, otherwise serious fines or even closure could ensue. Visit the SBA’s reference to state licenses and permits to learn what requirements may exist in their locality.
Equipment and furniture
Establishing or purchasing an assisted living business can be an expensive endeavor. The first step should be selecting an appropriate legal structure such as sole proprietorship, partnership or corporation for its formation – your CPA or lawyer can advise which structure best protects the owner from personal liability.
Once they’ve created their legal structure, future business owners must obtain an operator’s license required by their state. Furthermore, insurance coverage including general liability and workers compensation policies will be necessary for their operations.
Most assisted living homes are constructed from scratch; however, leasing or purchasing an existing place and converting it can also work. Once selected as the location for a residential care home, it must pass inspection by the state licensing office and receive a Certificate of Occupancy (CO). This certification shows that all relevant zoning laws and building standards have been complied with and that residents are safe living there. Furnishings should also reflect each resident’s lifestyle needs.
Staff
Assisted living facilities must maintain sufficient staff to offer 24/7 care and assistance for senior residents, such as administrative staff, nurses, housekeepers and personal care aides. In some instances, employees must also undergo extensive training prior to becoming part of an assisted living team; this process may be particularly costly for new businesses.
As an owner and operator, it is crucial to keep records of all expenses and sources of revenue for your business. Doing this allows you to assess its health as well as prepare for annual tax filings. Failing to obtain all necessary licenses can result in heavy fines or even shutting down of operations altogether.
Poor nurse staffing ratios take their toll on residents and lead to decreased quality of life. According to government studies, assisted living communities with full-time registered nurses reduces residents’ chances of needing nursing home placement by approximately 50 percent – this is encouraging news for long-term care facilities, but also highlights the significance of hiring and training qualified employees.