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Residential Assisted Living Business Plan

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With longer life expectancy and advanced medical care, nursing homes are needed more than ever before. It can act as a good primary or secondary source of income if you do it the right way.

If you can make people feel at home and help them through the second phase of their life and have a good team of individuals to help you, then a residential assisted living business might work wonders for you.

All you need is a residential assisted living business plan before you get started with your business. Here we’ll discuss a few things about the industry and the business setup process.

If you are planning to start a new residential assisted living business, the first thing you will need is a residential assisted living business plan. Use our sample Residential Assisted Living Business Plan created using Upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new residential assisted living business, spend as much time as you can reading through some samples of hotel and lodging-related business plans.

Industry Overview

The assisted living market in the US was valued at a whopping 83.2 billion dollars in 2020 and is expected to rise at a rapid rate going forward too. Several reasons have led to the growth of the industry, including higher life expectancy, more disposable income, and technology that makes caregiving easier and more efficient.

There is an increase in the number of people above 50 years of age who opt for assisted living facilities due to better services and more resources. Also, increased retirement funds help them get the best services present out there.

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business plan for personal care home

Things to Consider Before Writing a Residential Assisted Living Business Plan

Define your services.

As an assisted living service, it is important to list down the services you provide and market that to your customers precisely. This helps your target audience understand your services and what you offer better, and know if your services work for them or not.

Build a good team

Find a good location, invest in the necessary technology, chalking out your business plan.

Reading sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample business plan for you to get a good idea about what a perfect residential assisted living business plan should look like and what details you will need to include in your stunning business plan.

Residential Assisted Living Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

  • Problem Definition & Validation
  • Strategic Objectives
  • Operational Objectives
  • Mission statement
  • Keys to success
  • Home Aid – 3-Year Revenue Highlights
  • Company Ownership/Legal Entity
  • Interior Operating Facilities
  • Hours of Operation
  • Startup summary
  • Live-in Care
  • Packages Offered
  • Hourly Care
  • Service Execution
  • Market segmentation
  • Market Trends
  • Competitive Advantage
  • SWOT analysis
  • Distribution Strategy
  • Pre-Launch Strategies
  • Launch Strategies
  • Post-Launch Strategies
  • The planned positioning of Home Aid’s Market
  • Sales strategy
  • Pricing strategy
  • Organization chart
  • Management Team
  • Hiring plan
  • Important Assumptions
  • Brake-even Analysis
  • Profit Yearly
  • Gross Margin Yearly
  • Projected Cash Flow
  • Projected Balance Sheet
  • Business Ratios

After getting started with Upmetrics , you can copy this residential assisted living business plan into your business plan and modify the required information and download your residential assisted living business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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Download a sample residential assisted living business plan

Need help writing your business plan from scratch? Here you go;  download our free residential assisted living business plan pdf  to start.

It’s a modern business plan template specifically designed for your residential assisted living business. Use the example business plan as a guide for writing your own.

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About the Author

business plan for personal care home

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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business plan for personal care home

Residential Assisted Living Business Plan: Step By Step Guide

What is an assisted living business plan, why you need a business plan for your assisted living business, components of an assisted living business plan.

Free Assisted Living Business Plan Template

Adding PMS To Your Assisted Living Business Plan

Key takeaways.

A residential assisted living business plan overviews your facility as it currently is and outlines your growth strategy for the next few years. It describes your company's aims and objectives for achieving them. Market analysis/research is also included to back up your goals.

A business plan is required if you want to open a new assisted living facility or expand an existing one. A business plan can enable you to raise funds and plan the expansion of your assisted care facility in order to maximize your chances for smooth sailing, and enjoy the benefits of success.

Additionally, your assisted living business plan should be revised on a yearly basis as your business develops and evolves.

Organization and Clarity

Clarity of vision or organization signifies that you comprehend exactly what you're doing and where you're headed. When considering clarity, it is critical to consider the following four factors:

  • What exactly is your business?
  • Who are you as an individual?
  • What you're up to concerning the business?
  • Where are you going with the business?

The clarity communicates that you recognize where you're about to start, where you'll equalize, when you'll become profitable, what your backup is, and all the specifics that complement these.

And they are necessary for establishing a business plan that will convert to financial support and acquiring funds to start your assisted living business, which brings us to the next key component of a business plan.

Data Gathering

Data is power in today's corporate world. Your target audience and customer data is critical to how businesses connect with their prospects.

The data collecting methods you employ are vital to personalizing your marketing automation, delivering essential information to sales teams, and actually providing a better experience to your clients.

Customer data collection should be a key concern for every organization. However, just acquiring data is not always beneficial. The data collection procedures you employ are also crucial.

To be usable, that data must have the proper structure and context; else, it is just a spontaneous set of facts with no meaningful guidance for how it may be utilized in a commercial setting.

Data in the right context will assist you in making actual, data-backed decisions that will propel your business ahead.

Raising Capital

A business plan demonstrates that you have a real direction, which is what investors are looking for.

A well-thought-out business strategy demonstrates to investors that you possess a strong understanding and enables you to express that idea so that people will basically invest in you.

Here are a few things to keep in mind.

With no proper business plan:

  • No bank will lend you money, and no private investor or lender will lend you money.
  • People will not take you or your company seriously.
  • Investors will be puzzled as to what you're already doing and where you wish to take it.
  • Investors will assume you have fuzzy notions about what you're working on and where you wish to take it.

To be clear, regardless of industry, a business plan is an important phase in the beginning stages of any business. A business plan helps you to create a well-thought-out strategy that specifies where you wish to take it.

A business plan also enables you to advance. It distinguishes you from others who are only looking to start a business to people who are genuine about owning and operating a successful company.

Company Executive Summary

Your executive summary introduces your business plan, which is usually the final component you create because it summarizes each vital feature of your strategy.

The purpose of your Executive Summary is to pique the reader's interest instantly. It explains your facility's nature and state. It answers questions like: is it a new company, do you have an already existing assisted living facility that you want to expand, or do you run a network of assisted living facilities?

Following that, offer an outline of each of your plan's subsequent components. For instance, give a quick summary of the assisted living facility business. Talk about the sort of assisted living home you run.

Provide information about your immediate rivals. Provide an outline of your target audience. Give an overview of your marketing strategy. Determine who the essential members of your team are. Also, provide a summary of your budget statement and general financial plan.

You should describe the sort of assisted living home you run in your company analysis. For example, you could operate any of the following categories of assisted care facilities:

Residential Living

This sort of facility is designed for seniors who require limited assistance and can maintain their daily activities without the need for intensive healthcare monitoring.

Memory Care

This sort of assisted living facility focuses on supporting elders who have Alzheimer's disease or dementia.

Rehabilitation

This residential assisted living center serves elders who require speech, physical, or occupational treatment or therapy.

Industry Analysis

In this section, you must offer a summary of the assisted living home. This may appear to be redundant, but it serves several purposes.

First and foremost, studying the assisted care facility market will educate you. It aids your understanding of the business and the market in which you operate.

Besides, market research may also help you enhance your approach, especially if you identify market trends.

Another benefit of conducting market research is to demonstrate to readers that you are an authority in your field. You accomplish this by performing the study and incorporating it into your strategy.

Questions to consider:

  • What is the size of the assisted living facility business?
  • Is the market falling or rising?
  • Who are the industry's leading competitors?
  • Who are the industry's leading suppliers?
  • What are the current industry trends?

Customer Analysis

The customer analysis part of your assisted care business plan must include information about the clients you currently represent and/or anticipate representing.

The segments include families of seniors who require little to no support, families of seniors who require help with everyday living, and families of seniors who require memory care.

As you would expect, the client segment(s) you select will have a significant influence on the sort of assisted living home you run.

Relatives of seniors in need of minimum care, for example, would clearly seek different services and therefore would respond to various marketing efforts than relatives of seniors in need of memory care.

Try to categorize your target market based on their demographic and psychographic characteristics.

In terms of demographics, provide information on the location, genders, ages, and income levels of the clients you want to serve. Because most assisted living facilities serve people who live in the same town or city, such demographic data is readily available on government websites.

Psychographic analyses describe your target clients' interests and demands. The better you understand and identify these demands, the better you will be able to attract and keep clients.

Competitive Analysis

Your competitive analysis must identify and prioritize your company's direct and indirect competition. Other assisted living institutions are your direct competition.

Indirect rivals are alternatives to direct rivals that seniors might consider. This comprises communities, senior care services, and adult daycare facilities. You must highlight such competition to demonstrate that you recognize that not every senior who needs help will join an assisted living facility.

In terms of direct competition, you should list all of the other assisted care facilities with whom you compete. It is very likely that your immediate competition will be residential assisted care facilities established relatively near your site.

Include a summary of the businesses and a list of their weaknesses and strengths for each competitor. It is hard to know all about your competition unless you have already worked for them. However, you should still be able to learn important information about them, such as:

The last element of your competitive analysis should identify your areas of competitive edge:

  • Will you give excellent service?
  • Will you offer services that your rivals do not?
  • Will you make it more convenient or quicker for individuals to use your facility?
  • Will you provide additional social and physical activities?
  • Will you lower your prices?

Consider how you will surpass your competitors and include them in this segment of your plan.

Marketing Plan

A marketing strategy has typically included the four P's: price, promotion, place, and product. Your marketing plan for an assisted living business should contain the following:

Outline the prices you want to charge and also how they compare to those of your rivals. Basically, the product and pricing sub-sections of your marketing strategy describe the services you provide as well as their rates.

The location of your assisted care facility is very important. Specify your location and explain how it will influence your progress (revenue generation…). Is your assisted living home, for example, in a neighborhood or close to a hospital? Explain how your location could be advantageous for acquiring customers.

The promotion part is the final component of your assisted care home marketing strategy. You will explain how you will drive customers to your site in this section (s). You could explore the following promotional strategies:

  • Local newspaper and magazine advertisements
  • Contacting local websites
  • Inclusion of the company in relevant web directories
  • Handbills and flyers
  • Marketing campaigns on social media
  • Advertisement on local radio

You should restate the kind of assisted care home that you noted in your company analysis in this section. Then in detail, describe the precise services you want to offer.

Will you organize physical fitness programs and provide exercise equipment, Have you considered providing pet accommodation, on-site events and activities, or transport services in addition to the regular services provided by an assisted living facility?

Operation plan

While the previous part of your business strategy described your objectives, your operations plan discusses how you will achieve them. Your operation's strategy should be split into two parts as shown below.

Daily Short-term Structure

Daily short-term procedures encompass all aspects of running an assisted living home, such as housekeeping, healthcare and support, food services, and so on.

Long-term goals

Long-term objectives are milestones that you aim to reach. These may include the dates when you hope to accomplish 100 percent occupancy or $X in income. It may also include when you anticipate opening a new branch of our assisted living facility.

Since business plans are typically strategies for the next 5 years of your business, your financial statement should be broken out monthly or quarterly for the first year and then annually for the following 4 years in your financial plan.

Your income statement, balance sheet, and cash flow statements are all part of your financial statements.

Income Statements

An income statement is often known as a profit and loss statement (or P&L). It displays your earnings and then deducts your expenditures to determine whether or not you made a profit.

You will make assumptions while creating your income statement. For example, will you have 10 or 120 residents? Will sales increase by 2% or 10% each year?

As you might expect, the assumptions you make will have a significant influence on your company's financial predictions. Gather as much knowledge as possible to try to ground your assumptions in actuality.

Cashflow Statements

A cash flow statement can help you decide how much funds you need to start or develop your company, as well as ensure that you never run out of funds. What most startups and business managers don't comprehend is that you may make a profit while still running out of money and going bankrupt.

Balance Sheets

Your liability and assets are shown on your balance sheet. While balance sheets can contain a lot of information, try to keep them as simple as possible.

For example, spending a lot of money to build up an assisted living facility will not generate immediate revenue. However, it is an asset that should help you earn money for many years to come.

Similarly, if a bank sends you a $100,000 check, you do not have to repay it straight away. Instead, that is a debt (liability) that you will repay over time.

P.S: Include the following major costs in your balance sheets and income statement when beginning or expanding a residential assisted care business:

  • Location build-out, (construction and design expenses, and so on).
  • Equipment costs, including support devices, surveillance/security, and medical devices
  • Payroll (salary paid to employees)
  • Commercial insurance
  • Taxes and licenses
  • Expenses for legal counsel

Add your complete financial predictions to your plan's appendix, as well as any supporting materials that make your strategy more convincing. You may, for instance, submit your facility layout or site lease.

You've arrived at the appropriate places to develop your business plan for an assisted care home. The template below will help you write each component of your Assisted Living Facility Business Plan:

Be sure to throw in the need for property management software somewhere in your business plan. The sole purpose of writing a business plan is to outline and make clear your business strategies, which subsequently leads to smooth revenue generation.

Hence, effective assisted living business management practices like task automation should not be left out of your plan.

Choose a trusted and seamless assisted living property management system like Booking Ninjas, and you don’t have to stress about operational activities like bookkeeping, reporting, reservation systems, and so on.

Our Salesforce-powered cloud-based solution provides you with everything you've ever needed to fulfill the greatest residential assisted living services for your customers. Say goodbye to clogged integrations and confusing interfaces.

With the Booking Ninjas system, you get a complete system that is simple to use at first glance, minimum features that are tailored to your specific needs, and 100% 24/7 customer service from our very finest. It's the most straightforward offer you'll ever find.

Creating a business strategy for your assisted care home is an important step. If you follow the blueprint above, you will be a true expert by the end.

You will have a thorough understanding of the assisted care facility sector, as well as your competitors and clients. You will have created a marketing strategy and will fully comprehend what it takes to start and run a thriving assisted living business.

To learn more about Booking Ninjas and what we do, schedule a free call with us now!

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Business-in-a-Box's Personal Care Services Business Plan Template

Personal Care Services Business Plan Template

Document description.

This personal care services business plan template has 33 pages and is a MS Word file type listed under our business plan kit documents.

Sample of our personal care services business plan template:

COMPANY NAME Business Plan INSERT IMAGE/LOGO ADDRESS/CONTACT INFO Owners: INSERT NAME

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2,600+ templates & tools to help you start, run & grow your business, all the templates you need to plan, start, organize, manage, finance & grow your business, in one place., templates and tools to manage every aspect of your business., 8 business management modules, in 1 place., document types included.

business plan for personal care home

Home Care Business Plan Template

        You will have a clear, concise idea of what the business is about and how the founder and current president, [owner name], intends to start, grow and continue strong and steady growth.

        The purpose of a business plan is to create a plan, a blueprint or roadmap on paper to follow. It’s for you to really think through how your business will operate and about areas of the business you haven’t thought about. You’ll be most successful when you put in the effort and really THINK about it. Your goal is to develop a fairly simple plan first to start your Home Care Agency which often is enough for most small businesses getting started using their own capital. If you’re seeking one or more investors, a different, more comprehensive plan will serve you better with much more consideration in which case.

Executive Summary

        The Executive Summary is a summary of the highlights of your business plan. While it appears first in the layout of your plan, most find it easiest to complete the Executive Summary last. It should be succinct and no more than 2 pages.

Business Description

        The Business Description provides a complete overview about your business idea/concept/ service/ etc. It differs from the Executive Summary in that it goes into detail about the description. Challenge to yourself to truly THINK about what you see your business described as. Your business should be unique, differing from your competition. Describe who, what, why, where and how it’s different. Use the example to help get you started.

Your  Home Care

        provides  [medical / non-medical]  care services to  [elderly, disabled and people of all ages physical conditions and cognitive abilities]  who would like to remain living at home, yet require assistance with certain daily or weekly activities. Working closely with clients and their families we provide personalized assistance in client’s own home, the hospital, long-term assisted living facilities and other places of residence with things like:

Non-Medical Services

  •  Warm Companionship
  •  Meal Preparation
  •  Incidental Transportation
  •  Light Housekeeping
  •  Errands & Shopping
  •  Medication Reminders
  •  Laundry & Linen Washing
  •  Recreational Activities
  •  Personal Hygiene & Dressing Assistance
  •  Senior Information Resource
  •  Alzheimer’s care / Dementia care
  •  Respite Care

Home Health Care Services (Medical)

  •  Professional Nursing
  •  Personal care
  •  Senior care
  •  Pediatric nursing
  •  IV therapy
  •  Physical Therapy
  •  Occupational Therapy
  •  Speech Therapy

        To be known as the crème-de-la-crème of home care providers in our market, providing the very best, first-rate care to clients in our geographical market by employing only proven, hard-working, professional, honest, compassionate and ethical home care providers in the market who are dedicated provide outstanding home care services and improving the quality of clients’ lives.

        To assist every client with improving their quality of life, encouraging independence and allowing them to be comfortable with excellent care in their own homes by providing first-class, professional care with respect, dignity, compassion, the highest ethical standards and honor

Value Proposition

        What makes your home care agency services/products better than all the others? This shouldn’t be price – it will be difficult to defend and by differentiating yourself solely by price, it sets your business up as a commodity driven service – often suffering with poor service in lieu of charging a fair price for excellent services .

Industry Analysis

        What does the home care industry look like? Are there trends in your geographic area? What do your target clients buy, eat, education, income, habits, health levels, lifestyles, etc. The more detail you have the better your chances of success. This is an opportunity to find a specific niche that may be present in your own backyard. No example is provided in this area because you should know this. If you don’t – you need to do the homework to know and understand your market and the industry if you plan to enter it.

Competition

        Who are your competitors? Specifically, by name, location, age of the agency, what they specialize in and how they are different from you. What market share do they have? Are there any other service companies that could be considered competitors? (i/e: really inexpensive care homes, private caregiver market, etc). Even if there are no “direct” competitors, there will ALWAYS be some that are close

Marketing Strategies

        How will you get your product into the marketplace? Think of non-conventional (viral  Marketing) methods that are cheaper than traditional (TV, radio, print) and have a higher  Impact. Examples:

Networking –meeting people and creating the relationships with the many faces who refer clients to various home care service providers. By attending the opportunities for networking, meeting business leaders and more.

Online Promotions

          Website.   Develop an informative website and will include the website address in all online and offline marketing collateral.

          Press Releases.   Work with online press release distribution firms  to generate awareness of our services by issuing press releases to leading search engines and online news sites.

          Social Media Marketing.  Promote your agency on Facebook, Twitter, LinkedIn and other social media channels that may be frequented by your target market. All social sites will be used to generate a buzz about your services and build your agency’s image. The goal is solely to build connections with the health care industry and consumers and convince them to avail your services.

          E-mail Marketing.   Implement an e-mail marketing campaign to target local health care facilities and professionals that could provide client referrals to agency.

          E-mail Program.  Regularly distribute a newsletter to highlight new services, employees, agency certifications and home care industry news. Include links to lure subscribers to visit your website for further information.

Offline Promotions

  • Cold Calls.   Develop a list of local health care facilities, senior organizations and social centers to cold call in an effort to gain client referrals.
  • Brochures/Flyers.  Develop informational (postcard) brochures and flyers and distribute via a targeted direct mail campaign.
  • Press Releases.   Share press releases highlighting news about our agency to print news outlets in our target area.
  • Business Cards.  Distribute business cards in high-profile gatherings and share them indiscriminately to spread word of mouth regarding your services.
  • Exhibitions.   Participate in health care industry trade shows and events hosted by senior organizations and other relevant industry events, workshops and seminars to generate buzz about your agency.
  • Organization Affiliation  – Joining local and regional organizations like Health Care Industry Orgs, and Insurance company orgs.
  • Public Speaking  – By speaking to organizations, senior centers, doctor, nurse and discharge planner meetings, etc. we’ll become seen as experts in our given niche. 

Business & Health Fairs – Attending and showing the presence at these shows brings more

  Barriers to Entry

        What will stop you from entering your market place? Regulations, competition, cost of entry, monopoly, syndication? Also, how will your setup your own barriers to entry for other potential entrants into the marketplace?

        State and county laws can thwart certain services from being provided by increasing the requirements and certification levels. Are there any present in your area? Maybe it’s obtaining the State Survey sign off or Medicare certification. List the obstacles that could keep you from getting started and growing.

Distribution Channel

        How will you get your services/product to your market? For example – if you cover 3 counties – how will you manage logistics? Who will provide the care? Who will do the follow up visits and ensure care quality? Will you team with another company that provides a complimentary business where you can team with one another?

Team Summary

        Often this can be the most important part of your business plan. Who else believes in the idea of you entering the home care industry and the experience of your team in the various areas?  (Technical, business, marketing, operations, HR, etc.)

Personnel Plan

        You will initially hire four staff members to manage the agency’s operations. Each hired staff member will meet the state of Colorado educational and training requirements. Additional recruiting will occur as the agency enters the expansion phase.

Organizational Hierarchy (example):

  • CEO/ Administrative Director
  • Administrative Assistant
  • Home Care Aide  

        The  Administrative Director  will be responsible for planning, implementing, organizing, and developing in-home care services. This work includes, but is not limited to: operations administration, community/client education and staff supervision. This individual also will assume all social work services during the agency’s initial phase.

        The  Administrative Assistant  will perform routine clerical and organizational tasks. This individual will organize files, draft messages, schedule in-home care appointments and support other staff.

          Home Care Aides  will administer in-home client services. These individuals will assist with activities such as bathing and dressing, and will provide services such as light housekeeping, errand services, personal care and companionship.

  Financial Analysis

Insert all the financial projections and forecasts here. Cash flow, income statements,  balance sheet, as well as start-up income required. This is arguably the most important  part of your business plan, spend plenty of time on this and be able to justify any  assumptions.

SWOT Analysis

        S trengths  W eaknesses  O pportunities  T hreats

        Consider the conditions in which your service business will operate. What are your Strengths and Weaknesses? These are internal (team, company, service). Opportunities and threats are external (local, regional and national market place, trends, etc.)

  • Comprehensive Home Care and Geriatric Services.   Custom home care and geriatric services aimed at enabling staff to deliver reliable, responsive care.
  • Experienced, Well-Trained Staff.  Staff members will undergo initial and continuing education and training programs required by the home care industry.
  • Long Operational Hours.   Provide service during normal business hours and also will be available for on-call emergencies 24 hours, seven days a week.
  • Lack of Brand Identity and Image.  As a start-up business, currently lack a brand identity and image.  Will need adequate time to create awareness of your agency.
  • Low Staffing Numbers.  Professionals hired to manage the agency’s initial operations will be experienced, yet you may not have enough staff to effectively cover the needs of the market. This could cause slow growth of your operation, which management could not afford.
  • Small Marketing Budget.  A sizable marketing budget is required to get the most out of the agency’s initial launch. Anticipate needing a larger budget to make a substantial impact on the market.

Opportunities

  • Growing Market.  The home care market is rapidly increasing which presents extensive opportunities for new agencies entering the sector.
  • Aging Population.  As the U.S. population continues to age, the demand for personal home care and companionship is expected to significantly increase.
  • Affordability and Comfort.  Home care services are less expensive than nursing homes and assisted living facilities. Studies show that most people would prefer to receive care in their own homes versus a facility or hospital.
  • Expandable Business Model.  Home care agencies have the ability to expand into other markets as consumer needs grow.
  • v   Local Competition.  Several local competitors have national, well-recognized and trusted brands.
  • v   Professional Staff.  Recruiting, hiring and retaining quality, professional staff pose substantial risks. You will conduct extensive candidate research and background checks to eliminate some of the risks associated with employee recruitment and retention. Because studies predict patients will outnumber caregivers in the near future, you will need to position the agency as an attractive place to work with competitive and fair pay and benefits.
  • v   Business Cash Flow and Funding.  While the owner is using personal cash flow to cover start-up expenses, continuing to maintain adequate cash flow and solicit funding from outside sources presents a challenge you must overcome to succeed.
  • v   Regulatory Changes.  Federal health care laws like the Affordable Health Care Act and changes to Medicare and Medicaid payments can greatly affect your agency. In addition, state home care aide certification laws also could impact your business.

  Goals and Objectives

        What are your overall business goals? Your financials should include a lot of the income and expense goals. These goals/objectives are about identifying what you plan to accomplish with your business. It could be as simple as create a new career of owning a business or more in depth like using 10% of net profits going to a certain cause you believe in. The possibility of these things

Critical Success Factors

        What needs to be achieved that will enhance chances of your agency’s success? Identify what the possibility of these things happening are.

Exit Strategies

        How will you (or any investors) exit out of this project (if you want to) and make excellent return or to move onto your next “big idea”?

Future Developments

        What future plans do you have for your services (and products, if any)? As your company grows, what other plans do you have for your services? Do you want to grow into a regional or state-wide provider? Maybe you want to expand into medical and non-medical. The sky is the limit to what you’d like to do.

        Add any additional information here that may not fit into the sections above (quotes,  Recommendations, statistics, etc.). Your completed financials & projections should be included in the Financial Projections, however, you could place them in this section.

The Fox Group

Nursing Home Business Plan – 7 Key Points

Nursing home business plan drawing and coffe cup.

A nursing home business plan should contain seven key elements. Incorporating them into your document will help to ensure your success.

The U.S. is currently experiencing a shift in demographics. According to the U.S. Census Bureau , by the year 2034, older adults will outnumber children for the first time in U.S. history. By 2030, all Baby Boomers will be over the age of 65. As a result, this cohort will create more of a demand than ever for communities and facilities that care for the older adult population.

If you’re considering getting involved in the nursing home business, the first step you need to follow, after conducting a market feasibility study , as well as a financial feasibility analysis , is to create your nursing home business plan. A well-written and comprehensive business plan will not only help you focus on the vision for your business, but it will show investors and/or lenders that you’re committed to succeeding.

The skilled nursing business is a unique market, and success in this field requires a complete understanding of its many challenges. A business plan will help you convince financial institutions and investors that you’re well versed in the industry and have a clear picture of what you need to accomplish.

Challenges in Starting a Nursing Home Business

Operating skilled nursing facilities can be challenging in today’s market due to increased care costs for higher acuity patients, staffing shortages, reimbursement concerns, increased care alternatives, regulatory challenges, and liability issues.

This is why it’s crucial to guarantee your nursing home business plan is thorough and well-researched. Consequently, you’ll want to complete it before embarking on your new venture or attempting to procure funding. A properly formulated plan will not only convince lenders and investors that you have a viable business concept but it will also serve to hone your vision for your nursing home business.

Keep in mind that this is a brief overview of the many facets of information you’ll need to provide for your nursing home business plan. The nursing home business can be complicated, with a lot of information to cover.

The plan should contain s even main categories: (1) the executive summary, (2) a company summary, (3) the customer plan, (4) a market analysis, (5) a strategy for implementation, (6) the selection of a management team and (7) financial planning.

Items to Include in Your Nursing Home Business Plan

(1) executive summary.

The purpose of the executive summary is to give readers a brief description of your business. Thus, it must be well-written and concise. You want to draw your readers in and give them a brief synopsis of what your nursing home business plan is all about. So, keep it simple and make it engaging.

It may be the first part of your business plan, but it helps to write it last. Therefore, once you’ve covered all of the other details, it will be easier to write up the executive summary.

The executive summary should contain the following information:

(2) Company summary

In a company summary, you should state who you are, how you will operate your business, and what your goals are. The intent here is to provide your reader with a brief overview. Your company summary should include the following:

(3) Customer plan

Next, your customer plan should be a clear description of the service you’ll offer that emphasizes the benefits to your patients. One of the benefits of having a clear customer plan is it demonstrates that you have a firm and specific understanding of what your services are. You may include some of the following services:

(4) Market analysis

The market analysis is the section where you get to illustrate your knowledge of the industry and highlight your thorough research. Your intent should be to establish that you completely understand the market. This section should include the following:

(5) Strategy for implementation

In the next section, you need to summarize your sales strategy and describe your plans for implementation. “Failing to plan is planning to fail.” Thus, it is essential to articulate your implementation plan in detail.

(6) Management team

You’ll need to include a section detailing your business’s organizational team. An experienced and knowledgeable management is a key to operational success. Therefore, it is important to identify your team and their background. The following categories are relevant:

(7) Financial plan

Your financial plan is the final section of your business plan. You will not be able to complete this section until you’ve finished your market analysis and set your goals. If you engaged a third party to formulate a financial feasibility analysis, this is the section where you would place that analysis. You will need to include the following financial statements:

Do you need help creating your nursing home business plan?  If so, experts can help you dive into each of these categories to create a comprehensive plan.  Review some sample consulting engagements in nursing homes and assisted living to get started.

When you need proven expertise and performance

Craig fukushima, nha, mba.

Mr. Craig T. Fukushima’s health care experience spans more than 35 years with special expertise in the long term care sector, including implementation of innovative health care projects in domestic and international locations.

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Sample Business Plan: Vintage Home and Residential Care

Page 1

Vintage Home and Residential Care Business Plan 415 Merlot Drive Bonita, CA 91902

Business Plan created by:

Alice Smith - CEO Friday, May 20, 2011

The Startup Garage

CONFIDENTIAL Confidentiality Statement This document contains confidential information proprietary to Vintage Home and Residential Care®, hereinafter referred to as the “Company”. This information and related conversations are submitted solely for the purpose of introducing selected parties to “Company”’s Business Plan. “Company”’s disclosure of information contained herein and in related conversations does not constitute any subscription or authorization to use the information, ideas, or concepts presented, or to disclose any information to other parties. “Company” retains ownership of this Plan, and the concepts and ideas described herein. Each recipient of this document agrees to treat it in a strictly confidential manner. The recipient may not to disclose, directly or indirectly, or permit any agent or affiliate to disclose any of the information contained herein, or reproduce this document in whole or part without the prior written consent of the Company. Any party who accepts delivery of this Plan or any other document or verbal communication of confidential information from “Company” agrees to be bound by the terms of this Confidentiality Statement and further agrees to promptly return documents to the Company upon request.

Securities Statement This Business Plan does not constitute an offer to sell or the solicitation of an offer to buy any securities or an offer to sell or the solicitation of an offer to buy such securities in any circumstances in which such offer or solicitation is unlawful. Neither the delivery of this memorandum nor any sale of the Company’s securities shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since the date hereof, or that information contained herein is correct as of any time subsequent to its date. The market analysis and projections presented in this document represent management’s subjective views of the business and information gathered from reliable industry sources. The financial projections are based on management’s best judgment and reasonable assumptions of future events and circumstances. There can be no assurance that management’s assumptions and expectations will be realized or that its perceptions are accurate. Industry experts may disagree with management’s view of the market. No representations or warranties of future company performance or market trends are intended and such are expressly disclaimed. Copy Number: ___________________________________

Provided to: ______________________________________

Date: ___________________________________________

CONFIDENTIAL

TABLE OF CONTENTS EXECUTIVE SUMMARY ...............................................5 MISSION & VISION .....................................................6

Sales Goals ...........................................................24

Mission Statement .................................................6

Marketing Goals ..................................................24

Core Values ............................................................6

Target Market ......................................................24

Core Purpose .........................................................6

Positioning ...........................................................24

PRODUCT & SERVICE DESCRIPTION ...........................7

SWOT Analysis .....................................................25

Overview of Products & Services ...........................7 Problems, Causes & Solutions ...............................9 Product advantages ...............................................9 Product Liability .....................................................9 Product Development Activities ..........................10 MARKET ANALYSIS ...................................................11 Market Segmentation ..........................................11 Market Trends & Growth Patterns ......................12

Branding...............................................................26 logo and tagline ...................................................26 Pricing Strategy ....................................................26 Marketing Strategies (Promotion & Advertising) 27 Customer Service .................................................27 WEBSITE PLAN .........................................................28 Website Goals ......................................................28 Website Marketing Strategy ................................28

Market Size and Potential....................................14

OPERATIONS PLAN ..................................................29

INDUSTRY ANALYSIS ................................................15

Location ...............................................................29

Overview ..............................................................15 Industry Participants ............................................18 Industry Trends & Growth ...................................18

Licenses and Permits ...........................................29 Property Ownership / Lease Terms .....................29 Operational Procedures .......................................29

COMPETITIVE ANALYSIS ..........................................19 Competitive Overview .........................................19 Market Share Analysis .........................................19 Direct Competitors ..............................................20 Indirect Competitors ............................................22 Competitive Advantages ......................................23 Barriers To Entry ..................................................23

Equipment ...........................................................30 Purchasing Policies ..............................................31 Quality Control Measures ....................................31 Staffing and Training ............................................31 Organizational Chart ............................................32 MANAGEMENT TEAM ..............................................32 Key Management.................................................32

SALES & MARKETING PLAN......................................24 Board of Advisors .................................................32 3|P a g e

CONFIDENTIAL Board of Directors................................................32

Personnel .............................................................37

Professional Service Providers .............................32

Profit And Loss Statement ...................................38

FINANCIAL PLAN ......................................................34 Financial Summary...............................................34

Cash Flow .............................................................40 Balance Sheet ......................................................41

Startup Expenses and Assumptions .....................35

APPENDICES .............................................................42

Sales .....................................................................36

Floor Plans ...........................................................42

EXECUTIVE SUMMARY Vintage Home & Residential Care provides assisted living solutions for senior adults. Vintage is dedicated to providing the highest quality care to San Diego senior citizens who require or desire an assisted living facility. Vintage is located in an ideal climate in the community of Bonita, California. Seniors experience pleasant conditions of a combination of coastal and inland valley climates. This climate is perfect for seniors who may suffer arthritis, joint problems, or are susceptible to colds. Vintage is an alternative to the typically larger, less personal senior assisted living facilities and specializes in the ability to provide a very high level of care in a smaller, more personalized environment. Vintage provides assistance to seniors in their activities of daily living which includes assisting with medicine, meals, reminders, personal grooming, physical therapy, etc. Vintage also provides an opportunity for entertainment, companionship, and activities which enable seniors to find fulfillment. A goal of Vintage is to service seniors with residential care providing seniors with the best of both worlds -a private home environment mixed with the companionship and activities that a larger facility affords. Alice Smith, the owner and operator of Vintage has been using her home over the last several years to care for a senior citizen who is also a member of her family. Through this experience Alice has gained invaluable experience and knowledge, and at the same time has continued to develop her already strong passion to help others. As this passion has grown, Alice has decided to convert her residential dwelling into a personalized care facility for seniors that are at a stage of their life where they require assisted living. In addition to the personalized care that residents of Vintage will receive, Vintage also provides amenities that are unavailable at other residential care facilities, such as a pool and meditation garden. With 272,220 elderly people in San Diego, there is a sufficient market for Vintage. The number of elderly people in San Diego has grown by 17.34% from 2000 to 2010, and will continue to grow in the coming years as the “baby boomer� generation ages further. Estimates have this number growing by 157% through 2050. Vintage will start operations with a capacity of three guests increase to a total of five guests at the beginning of year two, which is an occupancy level that allows the business to be profitable. Plans for future expansion include renovation of the facility to increase the capacity to 7 guests, as well as the possibility of opening a second facility.

CONFIDENTIAL MISSION & VISION MISSION STATEMENT Vintage Home & Residential Care’s mission is to maximize the quality of life of seniors in need of assisted living by providing personalized, high quality care facility that promotes a safe, healthy, and caring environment. CORE VALUES • • • • •

To provide a safe environment for seniors. To promote physical and mental health To hire and train qualified and ethical staff members To provide a quality of care that exceeds our peers To make profit through the quality of care that we provide

CORE PURPOSE To provide senior adults an economical alternative to paying for assistance at home or living in a larger, less personal facility, all while increasing the quality of life of the individual.

CONFIDENTIAL PRODUCT & SERVICE DESCRIPTION OVERVIEW OF PRODUCTS & SERVICES Vintage Home & Residential Care provides assisted living solutions for senior adults. The Vintage mission is to provide a healthy and safe environment enabling senior adults to enjoy as much independence as possible. Vintage provides assistance to seniors in their activities of daily living which includes assisting with medicine, meals, reminders, personal grooming, physical therapy, etc. However, we also provide an opportunity for entertainment, companionship, and activities which enable seniors to find fulfillment and utilize their special gifts and talents. A goal of Vintage is to service seniors with residential care providing seniors with the best of both worlds -- a private home environment mixed with the companionship and activities that a larger facility affords. Vintage Home & Residential Care is a care facility for seniors owned and operated by Alice Smith. It is located in the beautiful Bonita area of San Diego County. The residence provides maximum care for seniors while promoting independent living with the support of a well-trained staff. Vintage has the capacity to hold up to 6 residents. Most rooms have private access to one of the many patio areas in the residence. The rooms are furnished with all of the basic amenities; including furniture, linens, and toiletries. Vintage provides cleaning and laundry services on weekly basis for all residents; however, if a resident prefers, the laundry room is available for use by the residents. Residents will have access to a swimming pool and spa which is equipped with an ADA compliant lift for those seniors with difficulties entering the pool or spa area. The pool is fenced in for the safety of the residents. There are several common room areas including two living areas, two dining areas, and a large kitchen. A patio extends around the entire home affording many private areas where residents can visit or have some time of solitude. Beautiful gardens surround the home which overlooks a view of the hills of Bonita. There is a raised garden where seniors can exercise their talents at gardening and a courtyard with a fountain and sitting area for others. The more active seniors can spend time with table tennis, croquet, horseshoes, WII, or other activities that are appealing to the guests. Vintage will provide 3 meals and 2 snacks per day. Reminders will be provided for those residents who are able to manage their own medication. If a resident manages their own medication, a locked container will be provided in the resident’s room for the purpose of safely storing medication. Medications will be locked and secured in a centrally located area for those residents who prefer or require the assistance of the staff. Transportation to medical appointments will be available as needed by the resident. Monthly pricing at Vintage has a base of $3500 per month, with additional monthly fees for certain products and services listed below. There is also a one-time pre-admission fee of $2000. Product/Service Private room Additional hour/day ADL’s Incontinence Care/Supplies Dementia Care Transportation to Medical Visits

Price $500/month $500/month $300/month $300/month $20/hour plus $4/mile

CONFIDENTIAL Comparison of Services Vintage Residential

Erachel Board & Care, Inc

Sun Life Manor

Bonita K Care

Services Single Rooms

Shared Bedrooms

Food Services

Cleaning Services Transportation for Medical Appointments Planned Activities Bathing Assistance Medical Assistance Dental Assistance Medication Support Bedside Care for Temporary Illnesses

Assisted Living Private: $6,020/mo

In-Home Care With Certified Professional: $21,730/mo In-Home Care With Only a Licensed Professional: $3,900/mo A Licensed Homemaker: $3,880/mo

Price Assisted Living: $3,500-$5,000 /mo

CONFIDENTIAL PROBLEMS, CAUSES & SOLUTIONS As individuals get older they may start to lose mobility and need constant assistance with their daily activities. This is troublesome for the loved ones of the individuals who are unable to leave their busy schedules to continuously assist them, or lack the knowledge and ability to help them. Vintage Home & Residential Care offers a solution and relief for clients with special need seniors. Vintage takes the responsibility of tending to the elderly and making their transition to late life comfortable and easy. The benefit of this service enables seniors to be well taken care of while still leading an active life, and gives family members a peace of mind. PRODUCT ADVANTAGES Vintage is located in an ideal climate in the community of Bonita, California. Seniors experience pleasant conditions of a combination of coastal and inland valley climates. Staying warmer and sunnier during “May Gray” and “June Gloom” periods, the area is also not as hot during summer and spring seasons 1. This is perfect for seniors who may suffer arthritis, joint problems, or are susceptible to colds. PRODUCT LIABILITY The liabilities in a senior care home facility are high if not taken seriously. Initially, in order to be an established facility the owner must adhere to local and federal regulations of the home. Once that is implemented owners ensure that nurses, staff members and residents are being taken care of and treated cautiously. The death of a resident due to malpractice or negligence of a member can lead to a serious lawsuit against the individual and/or establishment. In response to reports of widespread neglect and abuse in senior care homes in the 1980’s, congress passed a legislation act in 1987. Some of the requirements include a sufficient nursing staff, developing a comprehensive care plan for each resident, and preventing the deterioration of a resident’s ability to bathe, dress, groom, eat and to communicate 2. The facility must have all the necessary precautions in order to safe guard the health of residents. Gates must be enforced if hosting a resident with Alzheimer’s or Dementia. Bathrooms must have grips and handles on the side in order to prevent any falls that can lead to serious injuries while bathing.

http://en.wikipedia.org/wiki/Bonita,_California http://www.nursinghomealert.com/stoppingabuse/federalregulations.html

CONFIDENTIAL PRODUCT DEVELOPMENT ACTIVITIES It is a possibility that Vintage would open a second facility after several years of operation in the current home. This second location will offer the same quality service and ensure residents a quality lifestyle away from their family. Below is a table of various scenarios Vintage Homes & Residential Care is prepared for in the coming years. Scenario

# of available beds

Current Scenario (this is what was filed with licensing) • Alice’s aunt lives in 2 bed room • Alice lives in 2 bed room

Scenario 1 (Planned for Year 2) • Alice moves off site: 2 bed room now available

Alice’s new living expenses

Scenario 2 • Build another bedroom (2 beds) in the Garage for office/breakroom or living quarters for Alice

$40,000 to build out new bedroom

Capacity remains at 5 guests

Scenario 3 • Use room in garages as a residence room – 2 bed. Alice moves off site.

Addl cost of making garage accessible from kitchen

Capacity increases to 7 guests.

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New Direct Costs

Other Effects Capacity limited to only 3 guests

• Capacity increased to 5 guests • Will NOT have live in staff in a 1 bed room as it is cheaper to hire 3rd shift wake staff

CONFIDENTIAL MARKET ANALYSIS MARKET SEGMENTATION

MARKET SEGMENTATION DATA B2C

Brief Description Age range Gender Race Religion Location Marital Status Income level

Individual Seniors who may be ambulatory or non-ambulatory, with mild confusion, depression, and need for social interaction.

Senior Couples who may be ambulatory or non-ambulatory, with mild confusion, depression, and need for social interaction.

Demographics

Male or Female

San Diego Area

Widow/ widower or unmarried single person -

Median income of households in San Diego is $72,963. Living on pension or savings for retirement Might opt to work part-time to earn additional income. Some health and long term care insurance policies may cover some of the costs associated with assisted living. - Medicaid, the joint federal and state program pay for the healthcare of older people and those with disabilities who are unable to afford these expenses.

Median income of households in San Diego is $72,963. Living on pension or savings for retirement Might opt to work part-time to earn additional income. Some health and long term care insurance policies may cover some of the costs associated with assisted living. - Medicaid, the joint federal and state program pay for the healthcare of older people and those with disabilities who are unable to afford these expenses. Retired or may work part-time

Occupation Education level Family Structure

Retired or may work part-time

Personality

Financially independent senior citizens, unwilling to live independently or are unable to fully take care of themselves.

Financially independent senior citizens unwilling to live independently or are unable to fully take care of themselves.

Elderly people requiring assistance in their daily tasks. Senior citizens looking for a friendly environment, whom do not want to stay alone and aloof. Unable to cope with their younger generation, they are more comfortable with likeminded and same age people. This may include interest in sports, music, arts and crafts or gardening, membership in clubs or social networks. - Various hobbies are a part of daily lifestyle though some do feel loss of interest in their activities. - Feeling of loss of identity. - Senior citizens need care takers to constantly watch over them due to various reasons which could be poor health, imbalance in walking, etc. - Options like driving or walking alone are not feasible for them. - However, residents with restricted health conditions are not accepted - In house care takers to assist in the daily tasks. - Home like environment with caretakers available 24 hours. - Cost effective when compared to a home healthcare facility. - These facilities are safer for elderly individuals than living alone in non guarded houses. - The other facility members become like a family, often substituting for lack of family relationships. - Housekeeping services are offered at these facilities leading to a safer and easier life. - Assisted living facility gives flexibility to the people to keep their own schedule, which is a challenge with home healthcare nurses. - Likes more information about the social environment and the quality of care takers in such facilities. - Likes to talk to the care takers before deciding on a facility - Likes more information on what is included in the basic rate and how much other services will cost.

Elderly people requiring assistance in their daily tasks. Senior citizens looking for a friendly environment, whom do not want to stay alone and aloof. Unable to cope with their younger generation, they are more comfortable with likeminded and same age people. This may include interest in sports, music, arts and crafts or gardening, membership in clubs or social networks. - Various hobbies are a part of daily lifestyle though some do feel loss of interest in their activities. - Feeling of loss of identity. - Senior citizens need care takers to constantly watch over them due to various reasons which could be poor health, imbalance in walking, etc. - Options like driving or walking are not feasible for them. - However, residents with restricted health conditions are not accepted - In house care takers to assist in the daily tasks. - Home like environment with caretakers available 24 hours. - Cost effective when compared to a home healthcare facility. - These facilities are safer for elderly individuals than living alone in non guarded houses. - The other facility members become like a family, often substituting for lack of family relationships. - Housekeeping services are offered at these facilities leading to a safer and easier life. - Assisted living facility gives flexibility to the people to keep their own schedule, which is a challenge with home healthcare nurses. - Likes more information about the social environment and the quality of care takers in such facilities. - Likes to talk to the care takers before deciding on a facility - Likes more information on what is included in the basic rate and how much other services will cost.

Person living alone; children living in a different location

Couples living alone, children based in a different location

Psychographics

Interests Lifestyle

Motivations

Attitudes towards your company

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CONFIDENTIAL MARKET TRENDS & GROWTH PATTERNS 3 The total estimated target market is 272,220 elderly people in San Diego. It has grown by 17.34% from 2000 to 2010. The female population over the age of 70 years account for as much as 58% (157,711) of the total senior population of the region, resulting in being the larger market for the residential care facilities. Senior male individuals form the remaining 42% (114,509) of the target market.

Male, 42% Female, 58%

Total Population over 70+ years in San Diego

The Non-Hispanic white ethnicity forms more than 70% of the total market segment in San Diego, with the Hispanic community being the second largest contributor followed by Asians and Pacific Islanders. The graph below highlights the population distribution in San Diego based on race and ethnicity:

San Diego’s Regional Planning Agency

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CONFIDENTIAL Even though the non-Hispanic whites are the largest contributors to the target market, they have grown only by 3.54% over the last decade. The Hispanic community and the Asian community has grown by over 61.74% and 105.85% respectively during the same time and seem to be more promising segments in the future. With the median income of around $72,000 per annum (2009) in San Diego, Vintage’s pricing at $3,500$5,000 is competitive. The ideal target market would be in a higher income group. Since the middle income group earns an annual income of around $72,000, this target market could still be price sensitive 4. At the expected price point, the customers would be looking for a service oriented facility with excellent support from the care takers. Also, a variety of services covered in the base price would make a difference in the decision making process of the target market.

http://profilewarehouse.sandag.org/profiles/fcst/reg999fcst.pdf

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CONFIDENTIAL MARKET SIZE AND POTENTIAL A typical assisted facility would cover of all the meals, housekeeping activities as well as care takers to assist in day to day tasks. Having taken care of all the basic needs, an assisted living facility is more affordable when compared to keeping an in-house nurse or healthcare facility. San Diego is estimated to have around 272,220 residents over the age of 70 years in 2009 -2010 spread across the region. The current market size has grown over at 17.34% over a period of 10 years from 2000 to 2010. The future though definitely looks more attractive with the estimated growth of 157% till 2050. The graph below highlights the expected population of residents who are over 70 years of age in the San Diego region: 636,255 673,946 600000

500000 350,184

400000 300000

200000 100000 0 2008

Estimated no. of residents over 70 years of age in San Diego

The non-Hispanic market will remain the main contributor with the expected growth of 101% over a period of four decades while the Hispanic market is estimated to grow at only 40%. Currently Caucasians are the major contributors to the assisted living facility market in San Diego while in 2050, Asian and Pacific Islanders are expected to grow the most. The contribution of Caucasians in absolute number would however, will still remain the highest.

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CONFIDENTIAL INDUSTRY ANALYSIS OVERVIEW The demographic trends indicate the assisted living facilities are and will be the growing with an aging population, declining sizes of the families as well as demand for new and unique medical services and assistance with daily tasks. Assisted living facility industry was hit by the economic recession with the market growing at only 1% during 2008-09. The growth rate slowed down significantly. However, due to the future looks brighter with the senior population expected to grow at 26% till 2040.

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Industry Overview Business Description

Industry Overview Name of Sector

Homes for the Elderly

Name of Industry

Community Care Facilities for the Elderly

Corresponding Industry Classification

Industry Size

Industry Participants

Assisted-living facilities with on-site nursing care facilities. (Continuing Care Retirement Communities) Homes for the elderly with nursing care or rest homes with nursing care (Nursing Care Facilities) Assisted living industry had revenues close of $36.8 billion at the end of 2009.

Sunrise Senior Living

Top 40 Assisted Living Companies

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$36.8 billion (2009)

www.naics.com/censusfiles/ ND623312.HTM

NAICS code is 623110

Major Companies5 Emeritus Corp.

This industry comprises establishments primarily engaged in providing residential and personal care services for (1) the elderly or other persons who are unable to fully care for themselves and/or (2) the elderly or other persons who do not desire to live independently. The NAICS code is 623312 NAICS code is 623311

Total Revenue (2009)

An assisted living company focused on providing high quality service and care at an affordable price for people needing extra help with the activities of daily living. To champion quality of life for seniors in a home-like, resident-centered environment, unlike existing, more institutional options.

$898.7 million

www.emeritus.com

www.sunriseseniorliving.com

CONFIDENTIAL Industry Participants

Major Companies6 Brookdale Senior Living

Five Star Quality Care

Assisted Living Concepts

Merrill Gardens

HCR ManorCare

One Eighty-Leisure Care

Benchmark Assisted Living

Hearthstone Senior Services

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Brookdale Senior Living® communities provide active retirement living for thousands of residents, serving seniors and their families since 1978. Five Star Quality Care, Inc. is a national healthcare and senior living services provider. Five Star has three major operating divisions: Five Star Senior Living, Five Star Rehabilitation Services, and Five Star Pharmacy Services. Assisted Living Concepts, Inc. (“ALC”) and its subsidiaries operate more than 200 communities which include licensed assisted living and senior living residences with capacity for over 9,000 older adults in 20 states in the United States. Merrill Gardens is committed to providing an alternative to traditional retirement housing. Merrill Gardens has grown from eight employees to over 2,600 and currently owns and operates 56 communities in 10 states. HCR ManorCare is a leading provider of short- and longterm medical and rehabilitation care. Care is provided through a nationwide network of skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. Leisure Care Management Services include community management and operations, community development, and general consulting services. They operate over 40 communities and nearly 7,000 units in the United States, Canada, India, and Mexico. Benchmark Senior Living, based centrally out of Wellesley, Massachusetts, is the largest provider of Senior housing in the New England region. Hearthstone offers Assisted Living, Alzheimer’s and dementia care Hospice Short-term stays to senior citizens.

$925.9 million

www.brookdaleliving.com

$774.4 million

www.fivestarseniorliving.com

$228.7 million

www.alcco.com

$165 million

www.merrillgardens.com

www.hcr-manorcare.com

www.leisurecare.com

$233.6 million

www.benchmarkquality.com

www.hsslp.com

CONFIDENTIAL INDUSTRY PARTICIPANTS There are a few national level associations promoting business and operational excellence in assisted living communities while offering information at one place to the senior citizens. Some of these associations are: • • • • • • •

Assisted Living Federation of America Elder care National Center for Assisted Living American Association of Homes and Services for the Aging The Florida Assisted Living Association California Assisted Living Association National Investment Center for the Seniors Housing & Care Industry

INDUSTRY TRENDS & GROWTH 7 About 1.5 million Americans live in assisted living facilities. That number is expected to double by 2030. According to the U.S. Census Bureau, the number of people in the United States between the ages of 65 and 84 will increase by almost 40% between 2010 and 2020. As of 2006, retirement community residents were 69% female and 31% male, with the typical resident in an assisted living facility being an 85 year old female. People over 85 years old make up the largest percentage of people in assisted living facilities. With Baby Boomers representing more than 70% of all of the financial assets in the United States, they are the main target market of this industry. Many communities try to create a home like environment rather than giving them a feeling that they are in the institutions. With this in mind amenities being offered in the future may be more upscale like commercial kitchens, beauty salons, spas, indoor pools and pet friendly communities.

Industry Trends and Growth

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CONFIDENTIAL COMPETITIVE ANALYSIS COMPETITIVE OVERVIEW Vintage Home & Residential Care is classified as being in the Homes for the Elderly Industry, with a focus on the San Diego area. These homes vary in skill and specialization of elderly care, but all provide the same basic service; to provide a safe and healthy environment for individuals to reside in. This may vary in the care of individuals to help meet their daily physical, medical, social and psychological needs. The direct competition is made up of other establishments that are categorized as assisted living, independent living and micro community for seniors. They are residential facilities which provide personal care services for elderly that are unable or need assistance in doing their daily activities. This includes taking their medication, bathing, eating and moving without assistance. Residents or family members of the residents must schedule their own doctor and dental appointments. The facility may provide transportation to health care appointments but residents are free to come and go from the facility as they are able. Normally assistant living homes provide social and outdoor activities to make day to day living easier and more enjoyable for those who need assistance. Direct competitors of Vintage who offer these services are Erachel Board & Care, Sun life Manor, Bonita K Care, Bermuda Dunes Stellar Care, Bonita Valley Ranch, D&B Bonita View, Loving Care Home for the Elderly, and Richview. Indirect competitors will consist of nursing homes, also known as Skilled Nursing Facilities, rest homes or Rehabilitation Centers. They are intended for seniors who require continuous medical care along with various daily activities. These needs surpass the assistance of daily medication intake but complex medications, IV’s, wound care, catheters, ventilators and more. Certified nursing staff check patient’s vitals daily and keep detailed records of the resident’s health. These indirect competitors have larger volume of bed capacity and may be located on a hospital site. These indirect competitors are located in and around Bonita such as Sunrise Living at Bonita, Grossmont Skilled Nursing Facility and St. Paul’s Health Care Center. MARKET SHARE ANALYSIS There are 68 assisted living centers in Bonita alone, and 881 in San Diego county. Many of these facilities are privately owned and run from a residential home. 8 The limitations of this type of home is the size of the facility. Vintage will only have six beds and is only looking for a large enough market to fill the facility. In the future they look to expand to a new facility to fill the demand.

http://sandiego.citysearch.com/listings/san-diego-ca-metro/assisted_living_facilities/82034_1809

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CONFIDENTIAL DIRECT COMPETITORS

Name of Owner/CEO Company Headquarters

Vintage Home & Residential Care, Inc

Alice Smith

Ricarido & Neomi Victa

Edna Mae C. Bay

415 Merlot Drive, Bonita, CA 91902

3857 Alameda Way, Bonita, CA 91902

3417 Kennelworth Lane, Bonita, CA 91902

5735 Sunny View Drive Bonita, CA 91902

619.203.4727

619.475.4036

2004 619.472.8884 619.274.9880

www.erachelboardandcare.org

www.sunlifept.com

www.kcareresidential.com

Corporation

proprietorship

Year Founded Contact Info

619.271.3834

Website URL Type of Entity (corporation, partnership, etc.) # of Locations/Stores Region of Focus Product/Service Summary

San Diego • • • • • • • • • • •

Target Market Pricing

Capacity: 6 residents Resident activity programs 3 meals a day Snacks daily Medication assistance Bathing assistance Assistance with personal hygiene Laundry service Dental Services Transportation for healthcare needs Pool

San Diego • Capacity: 6 residents • Assisted living • Residential care facility • Short term care: rehabilitation • Respite • Alzheimer's care • Hospice • 3 Meals a day • Snacks daily • Medication assistance • Bathing assistance • Dressing assistance • Incontinent care • Assistance with personal hygiene • Weight and blood pressure check • Activity programs • Daily housekeeping and bed making • Laundry service • In-house podiatry service • Dental services

• Capacity 6 residents • Assisted living • Alzheimer's care • Hospice • Residential care facility • Registered nurses • Licensed practical nurse • Certified nurse aids • Short and long term stays • Cook • 3 meals a day • Snacks • Transportation for healthcare needs and daily activity

• Capacity: 6 residents • In-home care: intermediate • Pool activities on site • Gated • Alarm for wanderers • 3 meals a day • Snacks • No set activities

60 years and older

55 years and older

Assisted Living: 3,5005,100/mo

Nursing Home Private: $6,520/mo Nursing Home Semi-Private: $6,020/mo Assisted Living Private: $6,020/mo

Daily activities outside the home. Pool activities.

Takes Veteran’s Benefits

Close to other facility, fire department, and police department

Nursing Home Private: $6,520/mo Nursing Home Semi-Private: $6,020/mo In-Home Care With Certified Professional: $21,730/mo In-Home Care With Only a Licensed Professional: $3,900/mo A Licensed Homemaker: $3,880/mo They take Medicare, Medicaid, Veteran's Benefits and Long Term Care Insurance

charges a fee for transportation to outside events and outside. Entertainment is not brought in.

Website not informative. No pool

Website lacks vital information, not very professional

website lacks vital information, no plan activities, or interaction with seniors

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CONFIDENTIAL Vintage Home & Residential Care, Inc Name of Owner/CEO Company Headquarters

Year Founded Contact Info Website URL

Bonita Valley Ranch

Stephen Streib

4030 Bermuda Dunes Place Bonita, CA 91902

3698 Valley Vista Road Bonita, California 91902

(619) 292-2439 www.stellarcaresd.com

Corporation Type of Entity # of Locations 1 Region of San Diego Focus • Capacity: 7 residents Product/ • Resident activity Service programs Summary

Bermuda Dunes Stellar Care

619-479-6147

D&B Bonita View

Loving Care Home for the Elderly

Dave and Brenda DeMars, Brenda Jones Marylynne Navarro Owners 3743 Bonita 310 Camino Del Glen Terrace, 1086 Calle Mesita Cerro Grande Bonita CA Bonita, CA 91902 Bonita CA 91902 91902 2008 1998 (619) 434-4930 (619) 479-7386 (619) 475-4244

www.bonitavalleyranch. www.dbbonitaview. com com

Corporation 2

• Capacity: 6 residents • Medication management • Bathing • 3 meals a day • Dressing • Snacks daily • Grooming • Medication assistance • Escort to and from dining • Bathing assistance and activities • Assistance with personal • Individualized care plans hygiene • Music and “happy hours” • Laundry service • Family participation night • Dental services • Celebration of birthdays, • Transportation for health holidays and religious care needs ceremonies • Pool • Arrangement of transportation to religious activities • Entertainment, including local musicians and school students • Field trips to San Diego events • Transportation to local beauty salons • Games, cards and books 60 years and older 60 years and older Assisted Living: 3,500Private Bedroom: starts at 5,100/mo $3,500/mo plus a one-time $1,500 community fee and $500 room deposit

• Capacity: 6 residents • Garden area • CNA and EMT trained staff • Transportation to medical appointments • Meals • Laundry • Housekeeping • Grooming • Dressing • Medication management

• Capacity: 6 residents • Television • Housekeeping • Meals • 24/7 caregivers • Safety and security check • Medication management • Laundry

• Capacity: 6 residents • Television • Meals • Transportation to medical appointments • Private rooms • Bathing • Grooming • Exercise • Walks • Medication monitoring • Nurses on call

60 years and older Independent Living: $2,500-$3,800/mo Assisted Living: $3,950-$6,500/mo

60 years and older Shared Rooms: $3,000-$5,000/mo Private Rooms: $3,500-$5,000/mo

60 years and older Starting Price $3,000/mo Preferential Care: $3,500/mo

Daily activities outside the Brings outside home. Pool activities. entertainment to the establishment, different site location for dementia care Fee for transportation Expensive, community fee and outside entertainment is not brought in.

Experienced staff, 90% Run by the elderly are caregiver certified, for the elderly all have at least 5+ years of experience

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No outside entertainment, no pool

• 6 Beds • Television • Meals • Laundry • Dementia • Hospice waiver • Three care givers, one always on site • Medication management • Transportation • Board games • Walks • Outdoor exercises • Guest bands • Trips to movies, mall, parks, etc.

60 years and older Level 1 Private Rooms: $3,200/mo Level 1 Semi Private Rooms: $2,900/mo Preferential Care: $3,700/mo Owner is caring Certified care giver is and provides always on site, hospice excellent customer certified service

No in-house Only three rooms, entertainment such limited caregiving as local musicians options, no website

Additional transportation costs, no website

CONFIDENTIAL INDIRECT COMPETITORS Vintage Home & Residential Care, Inc

Sunrise Senior Living at Bonita

St. Pauls Health Care Center

Name of Owner/CEO

Mark S. Ordan, CEO

St. Paul’s Episcopal Home, Inc

Company Headquarters

235 Nutmeg Ss San Diego, CA 92103

Year Founded

Contact Info

Sunrise Senior Living, Inc. 7900 Westpark Drive, Ste T-900 McLean, VA 22102 1981 703. 273.7500 (HQ) 619.470.2220 (Bonita) www.sunriseseniorliving.com

619.236.0034

619.465.0711

www.stpaulseniors.org

www.sharp.com/grossmont/

Corp: Non Profit

# of Locations/Stores

Focus Region

International

Website URL Type of Entity (corporation, partnership, etc.)

Product/Service Summary

Target Market

• Capacity: 7 residents • Resident Activity Programs • 3 meals a day • Snacks daily • Medication assistance • Bathing assistance • assistance with personal hygiene • Laundry service • Dental Services • transportation for health care needs

60 years and older Assisted Living: 3,5005,100/mo

No transportation to outside events and outside entertainment is not brought in.

• Capacity: 96 residents • Assisted Living • Alzheimer's & Memory Care • Independent Living • Skilled Nursing • Short-Term Stays • Daily physical fitness, • recreational activities • scheduled group trip • three meals daily • Daily Snack • Monthly wellness visits by a licensed on-staff nurse • Weekly housekeeping • Weekly personal laundry • Social and educational programs for families

60 years and older Assisted Living Private: $6,020/mo In-Home Care With Certified Professional: $21,730/mo In-Home Care With Only a Licensed Professional: $3,900/mo A Licensed Homemaker: $3,880/mo Financial Services, Veteran's Benefits, Long Term Care Insurance, Nationwide, let residents to bring their senior pet Extremely large home, which makes it feel more of a facility than a home. Multi story making it difficult for seniors with arthritis

http://www.ourparents.com/

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Grossmont Hospital D/P Snf

5555 Grossmont Center Dr, La Mesa, CA 91942

• Capacity: 59 residents • Nursing Home • Skilled Nursing Facility • Assisted Living • In-Home Care • Short Term Care: Rehabilitation, • Respite • Hospice • Day Care • 3 meals a day • Snack

62 years and older Nursing Home Private: $7,220/mo Nursing Home Semi-Private: $5,890/mo Assisted Living Private: $5,890/mo In-Home Care With Certified Professional: $4,480/mo In-Home Care With Only a Licensed Professional: $4,070/mo A Licensed Homemaker: $3,950/mo Accept payments from Medicare, Medicaid, Veteran's Benefits, Long Term Care Insurance. This is a nonprofit facility Large establishment not focused on individual care

• Capacity: 30 residents • Hospital onsite • Nursing Home • Skilled Nursing Facility • Activities • Administration and storage of blood services • Clinical laboratory • Dental services • Dietary services • Housekeeping s • Nursing services • Occupational therapy • Pharmacy • Physical therapy • Physician • Podiatry services • Social work • Speech/language pathology • Therapeutic recreation specialist • Diagnostic Xray 60 and older Nursing Home Private: $6,520/mo Nursing Home Semi-Private: $6,020/mo 9

Accept payments from Medicare, Medicaid. Hospital on site Residents stay on the premise and do not venture out.

CONFIDENTIAL COMPETITIVE ADVANTAGES Vintage’s competitive advantage relies on the experience of care which Alice Smith has already established. Through her care for seniors she has created a detailed activity list in which many assisted living homes do not have. The residential home has a pool which allows for recreational use during warm weather, which benefits seniors who cannot endure difficult resistance training or workouts. BARRIERS TO ENTRY Depending on the type of facility, California laws and regulations must be met in order to be a legitimate institution. In 2006 Governor Arnold Schwarzenegger of California raised standards of senior home facilities. This legislation raises home inspection standards, improves the rights of residents in uncertified nursing homes, and requires training of residential care facility employees who distribute medication to seniors. This thorough home inspection can make it more difficult to establish a facility. The California Department of Health Services must inspect all nursing homes for violations of both Federal and California laws (Ch.895, SB 1312). This includes laws of minimum staffing requirements, nurses’ assistant’s requirements and details regarding nursing home abuse. 10 Facilities must also contract liability insurance when handling and administering medication to others. Not having funds to adhere to regulations and insurance payments can be difficult for business owners enter the market.

http://www.elder-abuse-information.com/news/news_101306_CAlaws.htm

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CONFIDENTIAL SALES & MARKETING PLAN SALES GOALS During its first year, Vintage Home & Residential Care plans to have 3 long term residents. In its second year Vintage expects to bring in two additional residents, bringing the total to five long term residents. MARKETING GOALS Marketing goals for Vintage will be fairly modest. Due to the long term relationship Vintage expects with clients, and the limited capacity, there will not be a need for an intensive, ongoing marketing campaign. The marketing goal for the first year is to build a waiting list of 10 prospective new residents. This will be done so that when year two begins, two candidates will be pre-screened and selected from the waiting list that has been built throughout the course of the first year. If there is an unexpected vacancy level at any given time during its operations a more active marketing strategy may be implemented as needed. TARGET MARKET The Vintage Home & Residential Care target market includes senior citizens over the age of 60 that reside in the greater San Diego area. These customers are ones that need basic assistance with their daily routine. They are not critically ill, but may be on daily medication which will be administered by the facility. These people enjoy the company of others, and are currently living alone but would like to be part of an Adult Family. Vintage’s target market will also include more needy residents who may suffer from Alzheimer’s or Dementia and need continuous supervision. POSITIONING Vintage Home & Residential Care is a custom made assisted living home for elders who no longer prefer to, or are unable to live on their own. Vintage accepts individuals with either insurance or financial stability that may be ambulatory or non-ambulatory and that are in need of social interaction. Vintage provides an upscale six bedroom assisted living facility with a variety of activities available and a friendly environment in the comfort of a home setting. Unlike our indirect competitors located outside of Bonita, Vintage offers an ideal climate for elders which vary only a few degrees between seasons. Vintage also offers a private courtyard, gated pool and Jacuzzi, along with an array of activities available to our clients. Vintage stands out because of the ability to provide high quality care that you may find in larger assisted living facilities but is able to do so in a much more comfortable and homelier environment. Vintage strives to build customer satisfaction by giving the highest level of care to its clients possible and increase their quality of life.

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CONFIDENTIAL SWOT ANALYSIS (see table below) Strengths

Bonita’s climate

Board of Directors is heart led which can cause financial issues.

Well planned operations

New to the business aspect of senior care

Private access to outdoors

Construction Needs

Large target market

Limited room for growth

Meditation area

Residence was purchased with Vintage concept in mind Gated pool/Jacuzzi with chairlift Raised flower beds

Staff has a personal calling to help others Experience in caring for family members Opportunities

Population is living longer

California laws and regulations

Experienced Board of Directors

Baby Boomer generation reaching target age

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Many small competitors

CONFIDENTIAL BRANDING In order to enforce a brand identity, Vintage wants customers to associate top notch hospitality, tranquility, and dependability with our name. Vintage wants people to think of trust, caring, and reliability when they hear our name. The way to get customers to associate these words with Vintage is to provide the highest possible level of care while building a reputable brand identity. LOGO AND TAGLINE

The Vintage logo was designed to appear comforting while incorporating elements that reflect the owner. The grapes in the logo provide a symbolic representation of the owner’s name, Alice Smith. The main goal of the logo design is to have the comforting feel of an orchard type setting that Vintage’s clients will be immersed in during their stay. The tagline was created in order to accompany the logo and enhance the brand. The goal to make people feel comfortable carries over from the logo to the tagline which is: “Making you feel right at home”. This tagline assures both the client as well as their loved ones that they will be taken care of as if it were their own home, which portrays the high level of care that will be provided at Vintage.

PRICING STRATEGY Vintage will be executing a competitive pricing strategy with competitors around the Bonita area. Their pricing breakdown is as follows: Product/Service Rate per guest-cover full services Additional for private room Additional hour/day ADLs Incontinence Care/Supplies Dementia Care 26 | P a g e

Retail Price $3,500/month $500/month $500/month $300/month $300/month

CONFIDENTIAL Transportation to Doctors One Time-Preadmission Fee

$20/hour plus $4/mile $2,000

MARKETING STRATEGIES (PROMOTION & ADVERTISING) Vintage Home & Residential Care plans to promote its business primarily through strategic partnerships and online marketing. Vintage’s website will offer a full description of the different services offered, pictures of the actual facilities, and information about the owner and the vision/mission of the home. In addition, Vintage will strategically place the home into a variety of web directory listings. Vintage will target several locations for promotional and advertising needs, as well as seeking strategic partnerships with companies such as: • Hospital skilled nursing placement contacts • Referral agencies • Home health nursing • Elderly care websites • Elder care law firms • Long term insurance agents CUSTOMER SERVICE Vintage will provide two resources for customer service. The first will be the most direct and immediate response which will be through the direct care staff whom will be on call to answer questions for guests at all times. Administrators will be available to answer questions from guests’ family or any other inquiries through the phone or by email. Residents are encouraged to make any grievance known to the administrator of the facility as well as contact family members or other concerned party members. Occupants can also call the following numbers: Community Care Licensing: (619) 767-2300 Adult Protective Services: (800) 510-2020 Ombudsman - Long term Care: (800) 640-4661

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WEBSITE PLAN WEBSITE GOALS Vintage will provide an informational website for inquirers. This website will include a description of the business and list the types of services provided, photos of the actual facilities, as well as a background on the owner and mission/vision of the company. The main goal for the website is to give people a good understanding of what Vintage is all about, prior to contacting the home. WEBSITE MARKETING STRATEGY Vintage will use basic marketing strategies for the website. This will include: • •

Search Engine Optimization Listings online Residential Care Directories

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CONFIDENTIAL OPERATIONS PLAN LOCATION Vintage Home & Residential Care is located at 415 Merlot Drive, Bonita, California 91902. The business’s direct competitors will be located in Bonita, while its indirect competitors will be spread throughout the Greater San Diego area. For these reasons Vintage’s location is serviced for the Greater San Diego area, not just Bonita. The venture will make purchases in discount stores in the Bonita area and will hire qualified staff from around San Diego. Vintage currently pays $3,100 per month for rent. A detailed floor map of the residency is attached in the Appendix. LICENSES AND PERMITS Licensing and permits to allow Vintage to operate will be completed as needed. Before officially opening for business the facility Vintage will have completed the following: • • • •

Administrator Certification Pre-Inspection Fire Marshall Facility Licensing Business License

PROPERTY OWNERSHIP / LEASE TERMS Vintage Home & Residential Care is owned and operated by Alice Smith. OPERATIONAL PROCEDURES Vintage Home & Residential Care is residential home that provides assisted living care to senior adults through quality trained staff. The company has unique advantages that other competitors do not with its small, tight-knit community and an outdoor pool where residents can exercise without worrying about injury. These services will be monitored internally by Founder Alice Smith. The residential home encourages its clientele to participate in a daytime program or activity. If the resident is unable to go or chooses not to, a staff person will be with them and they may enjoy other activities that are on a weekend schedule. Activities will be chosen by the staff with input from the residents and may include reading, listening to music, walks and traveling to movies and restaurants. Residents may stay in a private or shared room, with no more than two people in a room at a time. The maximum capacity for Vintage is six residents, and each individual gets his or her own bed unless they have a significant other in the home. Residents will also be provided with furniture, clean linens, and toiletries.

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CONFIDENTIAL Laundry will be performed for all residents once a week. Tenants have the option of cleaning their own personal clothing if they desire, and will be supplied with all the necessary detergent. Residents will be encouraged to clean their own rooms, but if they are unable to or do not want to, staff members will clean as necessary. Food will be provided to residents three times a day with no more than15 hours between the last meal of the day and the first meal of the next. Menus are written at least one week in advance and meals are prepared and served. Every occupant has access to a telephone that they may use at any time for a reasonable time limit. Long distance calls are charged to the resident’s bill. Deaf, hearing impaired, and other impaired individuals are entitled to the necessary equipment needed to make phone calls. There shall be at least one person capable of and responsible for communicating with emergency personnel in the facility at all times. Emergency information of each resident will be available at a moment’s notice in case an emergency should occur. Staff will provide transportation if residents need medical attention and call 911 if there are life threatening situations. Medications will be stored and locked in one location that is not accessible to anyone except direct staff. All containers will have identifying labels and no one except dispensing pharmacists shall alter these labels. Direct care staff will make sure that each resident will receive the necessary medication at the prescribed times. Transportation will be provided to and from medical and dental appointments, to emergency care facilities, from day programs in case of illness, and to and from facility activities. Only direct staff with an approved license and liability insurance may drive these vehicles, which must be safe and registered with the state. Vintage will not reject any applicants based on race, religion, sex or national origin. After applicants answer a few phone questions, the administrator will decide if the potential resident is fit to move in. Vintage shall not accept or retain those with certain illnesses or those whose needs conflict with those of other residents. Also, the company may discharge residents that become violent, non-complacent, or develop health problems that the staff cannot legally treat. Family members, friends, and others involved with a resident’s life are encouraged to visit during nonsleeping hours. If visitors choose to visit during scheduled activities, such as hygiene, the visitor may stay as long as he or she does not interrupt. EQUIPMENT Vintage will be remodeling a bathroom and installing new bathroom amenities in order to meet ADL compliance. Each room will be furnished with bedroom furniture and linens to meet licensing requirements.

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CONFIDENTIAL PURCHASING POLICIES Alice Smith will be responsible in the budgeting and purchasing for the facility of Vintage. Any purchases for food and supplies and for the upkeep of the residential assisted living home will be first approved by Alice Smith. Protocol will include an inventory list and review, which will be approved on a weekly basis. Operational purchases will be made at local discount stores and will include, but are not limited to, food, linens, and toiletries.

QUALITY CONTROL MEASURES Vintage ensures quality service for each resident. Each care staff will be effectively trained and will have an operational manual with official policies to guarantee a consistent high standard of service. Fresh foods, meat, milk, bread vegetables and fruit, will be available for residents and for preparation of each meal. Canned and dry food will also be available for cooking and emergencies. STAFFING AND TRAINING Staffing for Vintage will be as follows: All personnel shall be in good health and be physically and mentally capable of performing assigned tasks, and this will be verified with a health screening prior to employment. Candidates will also have a background check prior to hiring. Necessary education and experience required for the position will be verified by phone background checks, letters of recommendation, and certificates. Personnel will have to review and sign Notice Employee Rights (LIC 9052) at the time of employment. The first 90 days of employment is considered a probationary period at the end of which a performance review will be conducted to determine continued employment. After their first year of employment, employees will have an annual performance review. Employees will receive written warnings for performance discrepancies. After the third warning, Employment will be terminated. New staff will be given at least ten hours of training within the first four weeks of employment. The training will be conducted on the job, in a classroom setting, or a combination of the two. This training shall include, but is not limited to, the importance and techniques of personal care services including bathing, grooming, dressing, feeding, toileting and universal precautions. Personnel providing the training will have both a four year college degree or professional degree and two years of experience in an area relevant to caring for the needs of the elderly. They will be licensed to work as a health care provider in California. After training, duties will be reviewed and supported by a well-organized and detailed training manual.

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CONFIDENTIAL ORGANIZATIONAL CHART

CEO Alice Smith

RCFE Administrator

Sales Manager Assistant RCFE Administrator

Nutrionist/Cook

Medicine Administrator

MANAGEMENT TEAM KEY MANAGEMENT The licensee and RCFE Administrator role is held by Alice Smith to manage business operations. Nita Hodges will fill the roles of Assistant RCFE Administrator and Nutritionist. CEO/RCFE Administrator- Alice Smith BOARD OF ADVISORS The following positions will be part of the board of advisors. Tom Durrance – Business Owner Katy Scheneberg - Medical Administrator Nurse –Unknown Lawyer- Unknown Accountant- Unknown BOARD OF DIRECTORS Nita Hodges and Roseanne Nobbs will be part of the Board of Directors. PROFESSIONAL SERVICE PROVIDERS Vintage Home & Residential Care will be using services by Steve Haskins & Associates Law Firm located in Bonita. Law Firm - Steve Haskins and Associates

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CONFIDENTIAL Handyman- Tommy Zuniga Housekeeper- Mary Islans Pool Service – Ambar Pools Groundskeeper- Pedro Morales

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CONFIDENTIAL FINANCIAL PLAN FINANCIAL SUMMARY Vintage Home & Residential Care depends on occupancy in order to be profitable. Total costs outweigh total revenue if there are only three seniors occupying the facility. All sales and marketing goals are focused on getting the facility to its highest possible occupancy level. Vintage Home has two beds available at this time due to current living conditions. As of right now, Founder and CEO Alice Smith lives in one of the 2 bed rooms, while her aunt lives in another. This limits Vintage’s capacity to three total guests for the first year of operation. In year two, Vintage will be positioned to take on two new guests, which will make the business profitable. Vintage expects to have sales of $12,300 per month during the first year based on the assumption that there will be 3 guests living at the facility. This figure rises to $19,500 per month in year two due to addition of 2 new guests. Also, an additional $2,000 is added to each of the monthly figures when a new guest is admitted to the facility due to a one time pre-admission fee. Total costs from employee payroll will be $5,580per month in year 1. Total other expenses are $492 per month and these costs include a groundskeeper, bookkeeper, and handyman. Total expenses for the operation of the facility are $13,531 per month. Because of the slow growth that will take place over the first two years of operation, Vintage will realize a loss of $14,028 in the first year. As new guests move in, profitability is reached and Vintage will make a profit of $8,116 in the second year. In year 3, Vintage’s net profit will increase to $26,776. Vintage will be profitable as long as there is an average of at least 4 paying guests. The key to increasing net profits is to increase total capacity for the home. In order to begin operations at Vintage, a total cash infusion of $45,000 will be needed. Vintage is seeking these funds in the form of equity investment. Vintage is currently owned entirely by Alice Smith.

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STARTUP EXPENSES AND ASSUMPTIONS Start-up Expenses: Start-up year: Start-up funding: Initial cash investment (equity) Initial loan (short-term) Initial loan (long-term) Total cash infusion Start-up expenses: Land purchase Building(Fence) Plant and equipment Company vehicles Office furniture Leasehold improvements Website Logo Design Bathroom Remodel Office equipment Initial inventory Rent deposit Utility deposits Research & development Other start-up expenses Total start-up expenses Organization expenses: Legal expenses Accountant expenses Consultant expenses Other organization expenses Total organization expenses Total org. & startup expenses

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1,500 500 27,000 0

Assumptions Reccurrent ratios Average Days Receivable Average Days Payable Average Days of Inventory % of sales in cash % of purchases in cash % of payroll for taxes & benefits Short-term interest rate Long-term interest rate % tax rate, federal plus state

0 0 0 100% 100% 25% 0 0 0

CONFIDENTIAL SALES Sales

Shared Room

Private Room

Incontinence Care

Dementia Care

Transportation

Unit sales (units):

Pre-Admission Fee Unit prices ($):

Pre-Admission Fee Total sales ($): Shared Room

Pre-Admission Fee

Total sales ($) Unit cost ($):

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CONFIDENTIAL Dementia Care

Pre-Admission Fee Total cost of sales:

Pre-Admission Fee Total cost of sales

PERSONNEL Personnel Administrator

Asst Admin/Direct Care

Direct Care Staff 1st Shift

Direct Care Staff 2nd Shift

Overnight Staff Subtotal Total Headcount

Taxes & benefits

Total payroll exp

Total payroll

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CONFIDENTIAL PROFIT AND LOSS STATEMENT P&L

Cost of sales Material ($) Labor ($)

Total cost of sales

Gross profit ($)

Operating expenses ($) Marketing and Advertising expenses Sales and Marketing Payroll ($) Marketing Strategies Budget ($)

Catalog ($)

Mailing ($)

Promotional Material ($)

Other ($) Total Marketing and Advertising expenses

Adminstration Payroll ($)

Merchant Services ($)

Laundry and Dry Cleaning

Recreational Activities

General and Administrative Expenses

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CONFIDENTIAL Auto Expenses

Utilities ($)

Telephone ($)

Insurance ($)

Household Supplies ($)

Offce Supplies ($)

Travel ($) Medical and First Aid ($) Food ($)

Toiletries ($) Linens ($) Repair and Maintenance ($) Licensing and Membership Fees ($)

Depreciation ($) Ammortization

Miscellaneous ($) Total General and Administrative Expenses

Other expenses Consultants ($)

Bookkeeper ($) Groundskeeper ($) Handyman ($)

$ 41.67 $ 200.00 $ 250.00

Other Payroll Total Other expenses ($)

Interest expenses - Short Term

Interest expenses - Long Term

Total expenses ($) Profit ($)

Net profit ($)

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CONFIDENTIAL CASH FLOW Cash Flow

Beginning cash

Current borrowing Long-term borrowing Increase other liabilities

Capital input

Cash in: Net profit Depreciation & amort. Change in accts payable

Total cash in

Owner withdrawal

Cash out: Change in A/R Change in inventory Change other ST assets Capital expenditures Loan repayment (ST) Loan repayment (LT)

Total cash out

Net cash flow

Cash balance

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CONFIDENTIAL BALANCE SHEET Balance Sheet

Current assets: Cash

Accounts Receivable

Inventory Deposits

Total Current Assets

Fixed Assets Capital Assets Less accumulated depreciation Book Value

Other Assets Total Assets

31,500 43,809

31,500 42,353

31,500 42,817

31,500 41,362

31,500 39,906

31,500 38,250

31,500 36,795

31,500 35,339

31,500 33,883

31,500 32,428

31,500 31,500 30,972

31,500 39,088

31,500 65,864

Current Liabilities Accounts Payable

Short-term Notes

Other Short Term Liabilities Total Current Liab. Long-term Liabilities

Total Liabilities

Beginning Capital Profit or (Loss) Owner's Withdrawal

Capital - End of Period

Total Liabilities and Equity

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How to craft a successful home care business plan

home care worker with patient smiling

As a home care provider, you run your business with compassion and knowledge of the job and the local community you work with. After you’ve learned more about how to become a caregiver and how to start a home care business , you’re ready to formalize your ideas with a business plan.

How to create a home care business plan

Your business plan is an essential part of the portfolio you’ll present to banks, investors, and partners before launching your company. Every entrepreneur can benefit from a business plan that helps you turn your vision into action and strategize for success. For home care professionals, there are unique additions and considerations for your business plan. From determining your core local clients to developing the marketing plan to reach them, this guide will walk you through nine sections for your home care business plan.

1. The executive summary

The executive summary kicks off your business plan and hooks whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out in your business plan.

A home care business summary should include:

  • Your mission and the populations your business will serve 
  • A list of your primary services 
  • The demand for these services in your community
  • What sets your home care business apart from competitors
  • Your vision 
  • A summary of funding needs

2. The company description

As a home care business working with clients in need, your professional background should be front and center. Your company description offers a snapshot of you and your business, and should include:

  • The registered (or intended registered) name of your business
  • The location of your company headquarters, and the neighborhoods, area, or city your business will reach
  • Management, primary personnel, and their professional backgrounds
  • Any licenses or certifications your staff has

Different types of home care services will need different certifications, like medical home care companies compared with senior transportation providers, for example. Make sure to research and include the requirements in your county, city, and state. 

If you’re in the preliminary stages of creating your home care business and haven’t secured the required licenses yet, mention any certifications you’re pursuing in this description.

3. Your business mission and goals

The mission and goals section of a business plan outlines the primary objectives of your company and how you plan to achieve them.

As more Americans advance into the senior age bracket, demand for credible home care businesses is rising. This need can help position your business for success and give you more opportunities to refine your mission and select specific populations to focus on. 

The need for home care help for senior relatives in particular has grown. As home care professional Christine Friedberg reflects, “I used to get on the phone and talk with clients about home care being an option for them or for their loved one, but it was like a new concept…For a long time, we were trying to educate the community about what home care was. Demand is greater than ever now.”

Medicare’s Triple Aim program may provide general inspiration for your own company goals. Their three pillars are :

  • Centering and improving patients’ experience of care
  • Improving health outcomes of patients served
  • Mitigating the cost of care for individuals

From a business perspective, working with specific demographics may give you a leg up on funding. Based in Alexandria, VA, Griswold Home Care works with the area’s large population of aging veterans. To reach more of them, Griswold joined the cross-regional VA Community Care Network to provide in-home services to veterans needing extra support at home.

Not only was Griswold able to reach a specific community in need, but the program also helped this local home care business secure funding directly from the Department of Veterans Affairs . “We’ll see anywhere from 5 to 20 hours a week that the VA is covering, in terms of actually contracting with us directly. They pay us directly…so it’s very easy for the veteran to get in, take advantage of this program and take advantage of this care.”

In the home care industry, other demographics include:

  • LGBTQ senior citizens
  • People with Alzheimer’s
  • People living with disabilities
  • Non-seniors living with disabilities
  • Adults whose first language isn’t English

Keep your demographic in mind as you refine your company’s identity and plan for growth. It will determine the steps you’ll take to fund your business and reach the neighbors who need you most.

4. Your services

The services section of your home care business plan sets the vision for what your business will specifically do. There are two main types of home care companies and services:

  • Non-medical home care services – This type of home care business is not licensed to administer medical services or healthcare to its clients. Instead, they provide support, companionship, and home assistance. Services may include driving clients to doctor’s appointments, taking them to the park, or preparing meals.
  • Medical home care services – Medical home care providers are staffed by nurses or other medical professionals licensed to administer medical care to their clients.

With the growing need for at-home healthcare businesses, some of the most common home care services include:

  • Assistance with dressing, bathing, and using the toilet
  • Companionship and diversion
  • House cleaning and support with daily chores
  • Transportation
  • Hospice care
  • Continued education for older adults
  • Physical therapy and rehabilitation
  • Prescription fulfillment services
  • Administering medication
  • Tracking vital physical or psychological health 
  • Senior citizen relocation assistance
  • Specialty nursing for a long-term illness or disability
  • 24-hour emergency services

Get specific about what caregiver duties you’ll provide your clients, narrowing down your list with the most needed services in your local community. With 1 in 3 U.S. households on Nextdoor , you’ll be able to connect with neighbors, and your most important clients, with a free business page.

5. Your management structure

This section of your business plan establishes the legal status of your company, which affects other details, from the extent of your liability as the owner to how you’ll file taxes.

The most common business structures for home care providers are:

  • Limited liability company (LLC)
  • Sole proprietorship
  • Partnership
  • Corporation

To choose the right business structure for you, consider:

  • Liability – Every business is financially and legally liable to compensate for injuries committed on their watch. Consult with an accountant to take stock of your personal assets to choose a framework that gives you adequate protection.
  • Taxes – Your home healthcare business structure will determine how the profits you earn are taxed, whether through your business, on your individual tax returns, or a hybrid of both. As a general rule, the larger your company is, or the more shareholders it has, the more complex the tax process will be.
  • Growth expectations – Whether your home care company will focus on your neighborhood or expand nationwide, your business structure should reflect your desired administrative capacity and set the stage for investors who want to scale alongside you. 

While S corporations and C corporations are often better suited for larger-scale companies, it’s possible to change the legal structure of your organization as it grows. Consider hiring experts, like a lawyer and an accountant, to help you with this stage of the process, especially if they have advised other local businesses in your area.

6. Your marketing plan

Show potential funding partners you know the modern home care market and set your local business up for success with marketing goals that cover the following bases:

  • Digital marketing - In a job as intimate as home care, any new caregiver business begins on the local level. Sign up for a free business page with Nextdoor to instantly unlock a network of verified neighbors near you. Keep your business page updated with your story, photos, and contact information so local clients can find you and easily get in touch. Introduce yourself, share job listings, and keep neighbors updated on your business with free posts or hyperlocal advertising tools to reach more clients in specific ZIP codes you want to grow your business in.
  • Partnerships – Qualified home care providers may be eligible to partner with care networks already plugged into local consumer demand. If properly licensed, apply to enroll as a Medicaid or Medicare partner. 
  • Word-of-mouth marketing – Since home care professionals are a part of their clients’ and families’ lives, your local reputation will be important. Build trust in you and your services with testimonials on your website and recommendations on Nextdoor. 72% of neighbors there have been influenced by a business recommendation and 71% have shared one. Consider sharing your website and Nextdoor page with former clients to ask them for a recommendation.

Anything that makes your home care business unique, include in this section of your business plan. With a growing population of aging Americans, entrepreneurs are getting creative about the types of care they offer to suit different lifestyles.

Take Dr. Bill Thomas . He thought there should be a senior care option in place of the traditional nursing home so he created Minka, a company that builds small dwellings tailormade for seniors who want extra assistance, community, and autonomy in their advanced years. Says Thomas, “I think there will continue to be congregate housing, but the more choices people find in front of them, the more they’ll find something that suits them best.”

7. Your core financials

The next two sections cover your financial history with projections for your home care business’s future. This will be important for your business strategy, as well as for potential lenders, investors, or partners. 

The finance section of your home care business plan should include:

  • Income statement
  • Balance sheet
  • Expected revenue
  • A list of your assets and debts
  • A summary of company expenses
  • Desired loans

If you plan to enroll as a provider through a network like Medicare, mention in this section of your business plan.

8. Financial projections

This section of your home care business plan is important if you’re asking for an investment of any kind as it covers the funding you’re requesting, what you’ll use it for, and your plan to pay it back.

Financial projections should cover at least three years. Fortunately, the home care industry is slated for financial growth in the coming years. In the U.S. alone, the compound annual growth rate for home health care is projected to be 14.2% between 2021 and 2027.

However you plan to grow your company, speak with your local bank to discuss the full spectrum of financial options before finalizing your business plan. 

You can also connect with fellow home care professionals through Nextdoor for more information on the local home care industry in and around your neighborhood. This will help you get a realistic sense of your financial plan and the next few years operating your business.

9. Appendix

Your business plan’s appendix is where you’ll include any supporting or miscellaneous information for your business goals that didn’t have a place in the earlier sections.

Consider including:

  • The resumes or educational and professional backgrounds of you, the owner, and your core staff
  • Medical or non-medical licensing, or the licenses you plan to secure
  • Any legal permits your business needs or the ones you plan to secure
  • Bank statements, loans, and personal or professional credit history
  • Real estate information about your business’ headquarters, if applicable

Make local connections through Nextdoor

As more Americans age, local caregivers are increasingly integral to the health of their communities. An effective home care business plan should tell this compelling narrative, sharing why there’s a need for your services and what you’ll do to fulfill them in your area. 

If you’re just building your local home care business, start close to home with a Nextdoor Business Page. Signing up is free, takes just a few minutes, and will help you spread the word, turning your neighbors into your first clients. 

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Assisted Living Facility Business Plan Template

Written by Dave Lavinsky

Assisted Living Business Plan

Residential Assisted Living Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their assisted living facilities. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an assisted living business plan template step-by-step so you can create your plan today.

Download our Ultimate Assisted Living Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your residential assisted living facility as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an assisted living facility or grow your existing facility, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your assisted living facility in order to improve your chances of success. Your residential assisted living business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Assisted Living Facilities

With regards to funding, the main sources of funding for an assisted living facility are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will want to confirm that your financials are reasonable and see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for an assisted living facility is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a residential assisted living business. They might consider funding an assisted living facility with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to write a business plan for a residential assisted living facility.

If you want to start an assisted living facility or expand your current one, you need a business plan. Below we detail what should be included in each section of your residential assisted living business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of facility you are operating and the status; for example, are you a new business, do you have an assisted living facility that you would like to grow, or are you operating a network of assisted living facilities?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the assisted living facility industry. Discuss the type of assisted living facility you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Overview

In your company analysis, you will detail the type of assisted living facility you are operating.

For example, you might operate one of the following types of assisted living facilities:

  • Residential living : this type of facility caters to seniors who need minimal assistance and can manage their daily routines without complex medical monitoring.
  • Memory care : this type of facility specializes in helping seniors who live with Alzheimer’s disease or dementia.
  • Rehabilitation : this type of facility caters to seniors who need physical, speech, or occupational therapy.

In addition to explaining the type of assisted living facility you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include occupancy goals you’ve reached, awards you’ve won, new buildings you’ve opened, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the assisted living facility.

While this may seem unnecessary, it serves multiple purposes.

First, researching the assisted living facility industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your business plan:

  • How big is the assisted living facility industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your assisted living facility. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your assisted living business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families of seniors requiring minimal to no care, families of seniors needing assistance with activities of daily living, and families of seniors needing memory care.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of assisted living facility you operate. Clearly, families of seniors requiring minimal care would want different services and would respond to different marketing promotions than families of seniors requiring memory care, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most assisted living facilities primarily serve individuals living in the same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Assisted Living Business Plan in 1 Day!

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With Growthink’s Ultimate Assisted Living Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other assisted living facilities.

Indirect competitors are other options that seniors have to choose from that aren’t direct competitors. This includes 55+ retirement communities, residential home care services, or adult daycares. You need to mention such competition to show you understand that not every senior that needs assistance will choose an assisted living facility.

With regards to direct competition, you want to detail the other assisted living facilities with which you compete. Most likely, your direct competitors will be assisted living facilities located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of seniors do they target?
  • What services do they offer?
  • What types of living arrangements do they offer?
  • What is their pricing?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask the families of your competitors’ occupants what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior services?
  • Will you provide services that your competitors don’t offer?
  • Will you make it easier or faster for people to join your facility?
  • Will you offer more physical and social activities?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an assisted living business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of assisted living facility that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to standard services offered at an assisted living facility, will you provide exercise classes and equipment, on-site activities and events, transportation services, or pet accommodations?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your assisted living facility. Document your location and mention how the location will impact your success. For example, is your assisted living facility located in a neighborhood, or near a hospital, etc. Discuss how your location might be beneficial for attracting customers.

Promotions : the final part of your assisted living facility marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local websites
  • Listing the business in targeted online directories
  • Social media marketing
  • Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your assisted living facility, including housekeeping, medical care assistance, and meal services.

Long-term goals are the milestones you hope to achieve. These could include the dates when you reach an occupancy of 100, or when you hope to reach $X in revenue. It could also be when you expect to launch an assisted living facility in a new location.  

Management Team

To demonstrate your assisted living facility’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience working with seniors. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing assisted living facilities or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you have 10 residents or 60? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your assisted living facility, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a residential assisted living business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like assistive devices, security/surveillance, and medical supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility blueprint or location lease.  

Putting together a business plan for your assisted living facility is a worthwhile endeavor. If you follow the free template above, by the time you are done, you will have an expert business plan; download it to PDF to show banks and investors. You will really understand the assisted living facility industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful assisted living business.

Assisted Living Business Plan FAQs

What is the easiest way to complete my assisted living business plan.

Growthink's Ultimate Assisted Living Business Plan Template allows you to quickly and easily complete your Assisted Living Business Plan.

How Do You Start a Residential Assisted Living Facility?

Starting an assisted living business is easy with these 14 steps:

  • Choose the Name for Your Assisted Living Business
  • Create Your Assisted Living Business Plan
  • Choose the Legal Structure for Your Assisted Living Business
  • Secure Startup Funding for Your Assisted Living Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Assisted Living Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Assisted Living Business
  • Buy or Lease the Right Assisted Living Business Equipment
  • Develop Your Assisted Living Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Assisted Living Business
  • Open for Business

Learn more about how to start a residential assisted living facility .

Where Can I Download an Assisted Living Business Plan PDF?

You can download our  assisted living business plan PDF  template here. This is a business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Assisted Living business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

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How To Write An Assisted Living Facility Business Plan

AUG.03, 2023

1. Residential Assisted Living Business Plan Sample

Assisted living provide­s crucial support to elderly and disadvantaged individuals, e­nabling them to maintain their indepe­ndence with the ne­cessary assistance. This business plan pre­sents a strategy for establishing a thriving re­sidential assisted living facility.

The busine­ss will receive the­ necessary resource­s to start, establish the infrastructure, and cre­ate a detailed marke­ting plan. Like the construction feasibility study , this plan will describe the business’s services, target market, competitive environment, pricing and service delivery, strategies, resources, and financial projections.

2. Executive Summary

Business overview.

Reside­ntial Assisted Living (RAL) offers a valuable solution for familie­s or individuals seeking a nurturing and secure­ environment for their se­nior loved ones. It provides a safe­ and caring space for those who may no longer be­ able or choose not to, continue living in the­ir own homes. The real estate feasibility study RAL business will focus on providing both assisted living facilities as well as home care services in the Washington D.C. metropolitan area.

The business plan to start an assisted living facility services include:

  • Personalized care from certified professionals and caregivers
  • Engaging in activities and social events
  • Nutritious meals
  • 24/7 security
  • Transportation services
  • Assistance with daily activities
  • Medication management
  • Medical monitoring

Customer Focus

The primary customer focus of nursing home business plan is those seniors who need help with the daily activities of life, medication management, and medical monitoring. Furthermore­, RAL strives to offer families a se­nse of tranquility by creating a safe, se­cure, and nurturing environment for the­ir beloved family membe­rs to reside in.

Management Team

The management team of 50 bed residential assisted living facility is made up of well-experienced professionals in the healthcare field. Each team member has the proper certification and training to ensure that RAL provides the highest quality of care in the Washington D.C. metropolitan area.

The management team of a small assisted living facility consists of four individuals. The first is a chief executive officer who will be responsible for developing long-term and short-term goals for RAL. The second is a certified professional nurse who will hire and direct certified personnel for all residential facilities overseen by RAL. The third is a marketing/communications director overseeing all RAL’s marketing and promotional activities. At last, a financial director will take responsibility for handling all the financial aspects of a business.

Success Factors

The success factors of the homeless shelter business plan will improve the chance of success for RAL include the following:

  • Building strong relationships with families and customers
  • Establishing a stellar reputation in the community
  • Providing excellent customer experience
  • Maintaining the highest quality standards for services provided
  • Dedicated and well-trained staff
  • Strict financial management of expenses and revenue
  • Establishing a marketing plan to reach the target market
  • Using the latest technology to increase efficiency
  • Developing a good website that can also be used for bookings and reservations.

Financial Highlights

According to RAL’s projection, the­ first-year revenue­ is estimated to reach £2.8 million, with an e­xpected net profit of £700,000. To achie­ve this, RAL plans on securing financing through both debt and e­quity sources while also building relationships with pote­ntial investors and lenders.

  • Start-up Costs: £200,000
  • Break-Even Point: Month 6
  • Profit & Loss Projections: Year 1: £2.8 million revenue, £700,000 net profit.

Ultimately, RAL plans to bring positive financial results in the next five years.

3. Company Overview

Who is ral assisted living facility.

The RAL Assiste­d Living Facility is a residential facility that offers pe­rsonalized services and a cozy, home­-like environment for individuals who re­quire assistance with day-to-day activities. It is locally owne­d and operated, ensuring a pe­rsonal touch in the care provided. Founded in 2021, the team at RAL Assisted Living Facility is dedicated to providing quality care with dignity and respect.

At its core, RAL Assisted Living Facility is about family. The community and living e­nvironment have bee­n carefully cultivated to foster compassion and re­spect. The utmost priority is ensuring that e­very resident fe­els valued, safe, and e­mbraced in this inviting and cozy atmosphere. A dive­rse range of service­s and activities are available, all tailore­d to cater to each individual reside­nt’s unique needs.

The staff at RAL Assisted Living Facility is carefully selected, trained, and certified to provide the highest standards of care. We prioritize­ providing exceptional care to our re­sidents, ensuring they e­xperience a life­ of dignity and comfort. At RAL Assisted Living Facility, our mission is to deliver high-quality care­ and services that mee­t the unique nee­ds of each resident. We­ strive to support their indepe­ndence and autonomy while offe­ring them the assistance the­y require.

RAL Assisted Living Facility History

RAL Assisted Living Facility is a locally owned and operated business that was founded in 2021. Situated in Florida, this facility supports individuals in the­ community who need extra assistance­ with their daily activities to maintain their inde­pendence.

The founde­rs of RAL Assisted Living Facility came togethe­r with a shared passion for assisting others. Drawing on their e­xtensive background in healthcare­ and caregiving, they have cre­ated a warm and welcoming environme­nt staffed by a team of expe­rienced and well-traine­d professionals.

The founde­rs of RAL Assisted Living Facility have dedicate­d themselves to cre­ating a secure and cozy environme­nt for their residents. The­ir commitment to meticulousness and tire­less efforts have re­sulted in the facility becoming a re­nowned leader in assiste­d living, offering exceptional care­ and services to its reside­nts.

4. Industry Analysis

The re­sidential assisted living industry is expe­riencing rapid growth in the healthcare­ sector. Over the past fifte­en years, the home­ inventory business plan industry has expande­d due to several factors. The­se include the aging baby boome­r population, a rise in senior care options, and e­volving economic opportunities.

The residential assisted living market for the elderly population has become a significant one due to the increasing aging population throughout the world. Grand View Re­search predicts that the U.S. assiste­d living facility market will experie­nce a steady growth rate of 5.53% annually from 2023 to 2030, e­ventually reaching a value of USD 140.8 billion by 2030.

Source: https://www.grandviewresearch.com/industry-analysis/us-assisted-living-facility-market

The re­sidential assisted living industry is expe­riencing significant growth due to the incre­asing demand for healthcare se­rvices among senior citizens and pe­ople’s willingness to invest in the­se services. The­ market includes both local players and global giants like­ Brookdale Senior Living. Innovation and product improveme­nt remain continuous priorities, with advanceme­nts in technology and amenities aime­d at attracting more customers.

5. Customer Analysis

Demographic profile of target market.

When cre­ating a business plan for an assisted living facility, it’s important to focus on the re­sidential assisted living (RAL) market. This targe­t audience of home inventory business plan includes individuals who are­ aging or have physical or cognitive impairments that pre­vent them from safely and comfortably living in the­ir own homes. Typically, the age group most like­ly to utilize these se­rvices is over 55 years old, with a significant portion falling within the­ 75-84 age bracket. It’s worth noting that this market primarily consists of fe­males and tends to have above­-average income le­vels.

Customer Segmentation

The deaf residential assisted living facility will focus on meeting the needs of four primary customer segments:

  • Aging singles that lack adequate family support.
  • Aging married couples that are lacking adequate family support.
  • Elderly individuals and/or those living with physical or cognitive impairments with family members that are able but unwilling or unable to offer full-time care.
  • Elders and/or those living with physical or cognitive impairments whose primary support system is their immediate family.

All tables in  Assisted Living Facility Business Plan PDF.

6. Competitive Analysis

Direct and indirect competitors.

Direct Competitors:

The direct competitors of a residential assisted living Business Plan are those businesses that offer the same services and products. Some of the more common examples of direct competitors include independently owned assisted living facilities, senior communities, and home care services for elderly individuals.

Assisted living facilitie­s that are independe­ntly owned provide a variety of se­rvices and amenities spe­cifically designed for older adults. The­se include companionship, transportation, social eve­nts and activities, help with medication manage­ment, and other healthcare­ services.

Senior communities are also similar to assisted living facilities but typically offer more services and resources. Home care services for elderly individuals provide skilled nurses, physical and occupational therapists, and home health aides who provide more intense care services in the client’s home.

Indirect Competitors:

A residential assisted living business plan’s indirect competitors include those not traditionally considered direct competitors. Indirect competitors include Adult Day Care and In-home Care businesses, Hospice Care businesses, and Skilled Nursing Facilities. Adult Day Care businesses offer social and recreational programming and basic medical and nursing support services to seniors during the day that can sometimes serve as an extension of an assisted living facility.

In-group home Care businesses provide services in an individual’s home, such as personal care, medical supervision, and transportation. Hospice Care businesses provide end-of-life care in various settings depending on the patient’s needs and preferences and usually include medical and nursing staff, social workers, and volunteers to provide supportive care.

Skilled Nursing Facilitie­s offer a range of healthcare­ services, including medical staff, nursing staff, physical the­rapists, speech therapists, and othe­r specialized care provide­rs. These facilities cate­r to individuals who require ongoing treatme­nt for various medical conditions, offering both short-term and long-te­rm care options.

Competitive Advantage

The succe­ss of a residential assisted living busine­ss plan lies in its ability to offer exte­nsive services and pe­rsonalized care that surpasses what compe­titors provide. Additionally, the business plan can gain a compe­titive edge by prioritizing e­xceptional customer service­, ensuring customer satisfaction, and impleme­nting effective marke­ting strategies to capture a large­r market share. Moreove­r, the residential assiste­d living business plan can establish itself as distinct from compe­titors by collaborating with potential clients to deve­lop tailored solutions that cater to individual nee­ds.

7. Marketing Plan

The marke­ting objective of the busine­ss’s sample operating budget is to build a strong brand ide­ntity and deliver a positive custome­r experience­ that promotes greater custome­r loyalty and generates re­ferrals. The plan aims to position the busine­ss as the top service provide­r for seniors.

The main goal of the­ marketing strategy is to fulfill the ne­eds of the target marke­t – seniors – by offering innovative programs and se­rvices. The objective­ is to establish the business as the­ preferred provide­r among seniors in the specific marke­t area.

Promotions Strategy

The plans aim to e­nhance service de­livery, cultivate customer loyalty and re­spect, and foster relationships. To achie­ve these goals, the­ strategies include an asse­rtive advertising campaign, direct mail outre­ach, public relations efforts, email marke­ting campaigns, social media engageme­nt, online promotions, and community outreach activities.

  • Advertising: The advertising campaign will focus on appealing to seniors and their family members. Unique and creative campaigns will be considered to ensure effective results and increased awareness.
  • Direct Mail: The goal is to create targeted direct mail campaigns focusing on key market segments. This includes creating campaigns that resonate with different age groups, psychographics, and interests.
  • Public Relations: A targeted PR strategy will be developed that utilizes press releases, contributed articles, and media relations to build relationships with key media outlets.
  • Email Marketing: An effective email marketing plan will be created to increase customer engagement and reinforce the brand message by providing relevant and interesting content.
  • Online Promotions: Strategies will be developed to drive traffic to the website, including targeted search engine optimization, content marketing, and retargeting campaigns.
  • Outreach/Events: The plan will incorporate outreach initiatives such as speaking engagements, speaking tours, and other events that can engage the target market and promote the brand.

To ensure­ the business thrives and prospe­rs, the plan will prioritize establishing a compe­titive and affordable price point while­ delivering exce­ptional customer service. The­ cost of assisted living services will vary de­pending on the specific ne­eds of individuals and the leve­l of care they require­.

The pricing strate­gy for the plan will be adaptable to marke­t changes and competitor prices. A price­ index will be create­d and regularly updated to refle­ct the current economic, marke­t, and competitive trends.

We have­ designed our pricing structure to prioritize­ both customer satisfaction and the success of our company. By cre­ating a win-win situation, we aim to foster long-term custome­r loyalty.

8. Operations Plan

Operation functions.

The operations of a residential assisted living business plan must be well planned and managed to maximize operational efficiency and quality of care. The following outlines the key components of the business’s operation plan:

  • Staffing: A large part of effectively operating a residential assisted living facility requires trained and skilled professionals. The staffing re­quirements for a business will de­pend on its size and complexity. Full-time­ staff may be necessary, including role­s such as nurses, medical assistants, caregive­rs, nutritionists, and housekeeping staff. It is important to conduct thorough background che­cks for all staff members.
  • Policies and Procedures: To ensure quality of care, the business must create and implement policies and procedures to standardize care procedures, ensure proper documentation, and address any emergency situations. All personnel should have a copy of these policies and procedures and receive annual training on proper implementation.
  • Quality Management: Quality control procedures should be implemented throughout the business operation to ensure residents’ highest level of care.
  • Residential Services: A key business plan component is determining which services will be offered to residents. Residential services may include medication management, nutrition, physical and recreational activities, therapy services, nursing care, and personal care.
  • Financial Management: To control costs, the organization should establish budgeting guidelines and financial reports that monitor costs and identify any areas for cost reductions.
  • Information Technology: The business should consider the implementation of an information technology system to keep electronic health records, patient records, and financial records.
  • Maintenance: To ensure the highest safety standards for residents, the business should develop a comprehensive facility maintenance plan and keep a log of all repairs and preventative maintenance.
  • Risk Management: Risk management procedures should be established to identify and address potential risks affecting the business’s operations. This includes establishing liabilities, employee safety policies, and security system implementation.
  • Creation of Business Plan: The business plan should be finalized by January 31, 2024.
  • Site Selection and Setup: The business should select a suitable location and set up the property to accept residents by March 15, 2024.
  • Licensing and Insurance: The business should obtain all licensing and insurance requirements by April 30, 2024.
  • Staffing: The business should hire and train the necessary staff by May 31, 2024.
  • Quality Control: Establish quality control procedures by June 30, 2024.
  • Promotion and Marketing: Begin promotion and marketing strategies by July 15, 2024.
  • Open for Business: Begin taking residents by August 1, 2024.

9. Financial Plan

The pro forma financial plan for the residential assisted living business is designed to achieve the company’s goal of providing quality care and accommodations at a competitive price. The financial plan outlines how the company will raise capital, acquire business assets, and manage profits and losses.

Key Revenue & Costs

Key Revenue

  • Initial start-up cost: £100,000
  • Monthly service fees (per resident): £2,000
  • Private pay raises: 5% annually
  • Government subsidies: £1,000 per resident
  • Personnel & Wages: £1,200 per resident
  • Employee Benefits: £400 per month per employee
  • Care: £1,000 per month per resident
  • Reoccurring Supplies/Equipment: £2,000 per month
  • Advertising: £500 per month
  • Property Taxes: £1,000 per month
  • Insurance: £500 per month
  • Professional Fees (Legal/Accounting): £200 per month
  • Utilities: £1,000 per month

Funding Requirements and Use of Funds

Funding Requirements

  • Property and Equipment: £50,000
  • Working Capital & Initial Operating Expenses: £25,000
  • Advertising: £5,000
  • Professional Fees (Legal/Accounting): £2,000

Use of Funds

  • Property and Equipment: £50,000 for purchase and lease (as needed).
  • Working capital and initial operating expenses: £25,000 for personnel, wages, employee benefits, care services, reoccurring supplies/equipment, advertising, property taxes, insurance, and professional fees.
  • Advertising: £5,000 to cover advertising costs for the first three months, including print, broadcast, and online campaigns.
  • Professional Fees (Legal/Accounting): £2,000 to cover the estimated legal and accounting fees associated with setting up and managing the business.

Key Assumptions

  • The company is able to acquire the necessary property and equipment at the assumed prices.
  • The company will be able to obtain government subsidies for the services provided.
  • The company is able to obtain sufficient funding to cover the initial start-up costs, property and equipment, working capital and initial operating expenses, advertising, and professional fees.
  • The company is able to hire and retain experienced, qualified personnel.

Financial Projections

Income statement.

According to the income­ statement, the proje­cted revenue­ for RAL business plan company in its first year of operation is £1.8 million. The­ anticipated operating expe­nses for that year are £1.4 million, re­sulting in a net income of £400,000.

Balance Sheet

By the e­nd of its first year of operation, the company outline­d in the ALF business plan is projecte­d to have total assets totaling £1.15 million and total liabilities amounting to £500,000. Ultimate­ly, this will result in net assets e­quating to £650,000.

Cash Flow Statement

The scholarly articles company is projected to generate total cash flows of £1.3 million in the first year of operation. Of this, £800,000 will be from operating activities, £300,000 from investing activities, and £200,000 from financing activities.

10. Start Your Residential Assisted Living Business with OGS Capital – Expertise You Can Trust

OGS Capital specialize­s in providing comprehensive and e­ffective business plans for aspiring e­ntrepreneurs looking to e­nter the reside­ntial assisted living industry. With more than 15 years of e­xperience working with clie­nts from various industries, OGS Capital offers unmatched e­xpertise in deve­loping tailored business plans specifically for re­sidential assisted living venture­s. With OGS Capital, entrepreneurs will receive a high-quality business plan and the ongoing guidance and support of an experienced team of consultants ready to guide them to success.

OGS Capital consultants are industry experts specializing in residential assisted living. At OGS Capital, the team of e­xperts combines cutting-edge­ market research and analysis te­chniques to develop thorough busine­ss plans that encompass both the financial and operational aspe­cts of the residential assiste­d living industry.

Dete­rmining the cost of starting a residential assiste­d living business is made simple by OGS Capital. The­y offers a transparent pricing structure whe­re the entire­ project, including comprehensive­ market research, industry analysis, and a tailor-made­ business plan that reflects the­ client’s vision and goals, is covered at a fixe­d rate.

From the start of the process through to the launch of the new business, OGS Capital offers a uniquely thorough approach to developing and executing a successful residential assisted living business plan.

Q. What is a disadvantage of an assisted living facility?

One drawback to conside­r with assisted living facilities is their cost. De­pending on the leve­l of care required, the­se facilities can be more­ expensive compare­d to other options like in-home care­ for seniors. Additionally, assisted living facilities cannot often provide medical care or traditional rehabilitation services needed for seniors with specific health conditions.

Q. What makes residential assisted living successful?

A successful residential assisted living facility features a combination of personalized care, quality amenities, responsive staff, and a welcoming and safe environment. Providing personalize­d care is crucial because it allows staff to unde­rstand the unique nee­ds of each individual and provide tailored se­rvices, including medication assistance, die­tary planning, and support with daily activities. This approach promotes indepe­ndence while e­nsuring that seniors receive­ the necessary assistance­ and medical attention for a fulfilling daily living expe­rience. Quality amenitie­s further enhance the­ir overall well-being. Creating a we­lcoming and safe environment is crucial in providing a comfortable­ and secure atmosphere­ for both residents and their familie­s. Additionally, having responsive staff who respe­ct the individual wishes of each re­sident further enhance­s the overall living expe­rience.

Download Assisted Living Facility Business Plan Sample in PDF

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than £1.5 billion in funding, and they can do the same for you.

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