Create a Successful Group Home
Group Home or Assisted Living Business Plan Template
Are you thinking about starting a group home or assisted living business? If YES, here is a complete group home business plan template, checklist and profit plan you can use to get started today.
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Why Start a Group Home for the Elderly?
The increase in demand for group homes for the elderly in the United States comes from the fact that the population of senior citizens is largely growing. A group home for the elderly people business is one where elderly people live independently in a unit but share common areas like the sitting room and the dining room. If you do not want to just help people that are old and vulnerable but are open to ensuring you generate revenue and maximize profit, then this business is for you.
First you might need to decide on the kind of group home for the elderly you wish to open as you can either open an assisted living facility where the elderly can live independently in self contained units or go for a residential board and care facility, where you will have to be more involved in the lives of the elderly by offering personal services such as helping with eating, bathing and even dressing.
Whichever of the businesses you intend running, you will need to ensure you lease or buy a facility that has enough space for the business you intend to open. You might need to still conduct renovations on the facility to bring it up to the standard that would be required to run your business. For instance, you will need grab-bars in all the toilets, showers and bathtubs. You cannot get the necessary permit for your business if your facility doesn’t pass the safety inspection test.
One important step that you must undergo is to obtain the necessary certifications needed to run the business. While some states require ongoing training which might occur every year or two, some stick to 40 hours of classroom training before you are able to obtain the certificate.
You will also need to obtain CPR and First Aid Certifications as well. You will also need to ensure that your employees get the necessary certifications and also have them undergo a background check to weed out those with criminal records. Also, depending on the additional services you might provide, training will be required as well.
After obtaining the necessary licenses and permits and also carrying out the needed renovations on your facility. You will need to check out what competitors in the same area as you are offering and also incorporate your business as a non-profit organization.
So, if you feel that you have conducted the necessary research needed before starting the business, gotten the necessary certifications, acquired a building that you own or leased and that you have the needed finance and human resources, then you can start the group home for the elderly business in the United States of America. However, reading this article further is likely to provide more insight for you.
Starting a Group Home for the Elderly – A Complete Guide
- Industry Overview
According to IBISWorld in this industry, there are no companies with a dominant market share. The industry however is valued at an annual revenue of $132 billion with a growth rate of 2.3% projected between the periods of 2011 to 2016.
There are nearly 23,000 group homes for the elderly businesses in the United States of America, which has offered employment to more than 1.7 million people. The industry, despite the economic downturn experienced in the United States of America has continued to grow and this is mainly due to the necessary nature of the business and equally due to the growing aging population.
The elderly are more prone to illness and injuries in their daily lives when living alone and so require great assistance with their daily activities. Despite the demographic trend that has been quite favorable, the growth in the industry has been hindered chiefly by poor funding from the government, both state and federal. Between 2016 and 2021 however, the industry regardless of all the threats and challenges it faces is expected to continue in its expansion as more people according to analysis are going to age within these five years.
The future growth for this industry is hugely dependent on the fact that in the next two decades, nearly 77 million baby boomers will need a group home for the elderly. The increase in the life expectancy rate here in the United States of America has also caused a boom in this industry, with many people expecting to retire at 65 and therefore needing to decide where they might likely spend the remainder of their lives. This will in turn increase the demand for the group home for the elderly and therefore provide an opportunity for enterprising entrepreneurs.
Close to 1 million senior citizens in America reside in group homes for the elderly and other such facilities like that and that number is expected to not only increase but double by the year 2030. It should however be noted that there are several factors that have caused a hindrance to the growth of this sector and one is the current economic climate which has seen a crash in real estates and also losses in stock prices and 401(k) accounts, this has caused a substantial loss in earnings to those that planned to retire and use their money to fund their stay in group homes for the elderly. This has caused about 25 percent of baby boomers to postpone their retirement due to the poor state of the economy.
More than 70 percent of the financial assets as well as over 50 percent of all the discretionary spending in the United States of America are from baby boomers. Most baby boomers and their families usually require retirement communities that remind them more of home and are quick to turn away from those that resemble institutions.
And so to meet with the taste and demand of the baby boomers, most group homes for the elderly businesses and similar businesses like it have gone upscale in terms of ensuring the environment meets with the desire of the baby boomers and that the services are also top notch. Others go as far as fitting in golf courses, allowing pets and spas in order to be able to cater to the active baby boomers.
However, as much as this looks like everything is okay with the industry; the high costs usually experienced by the baby boomers have forced most of them to seek out group home for the elderly facilities abroad. Mexico for instance has seen a high number of senior United States citizens seek for such facilities in their country. Even though this might look like it is affecting the industry, the high growth demand from the population has made the number of people going abroad to be negligible and not have such an effect on the industry.
As at 2009, there were close to 30,000 group homes for the elderly and other assisted living facilities that generate revenue of nearly $37 million. According to the 2007 U.S Census Bureau data, while group homes for the elderly accounted for the 42 percent revenue generated in the industry, continuing care retirement communities accounted for about 58 percent.
As at 2008, occupancy rates for group homes for the elderly fell by 2 percent mostly due to several senior citizen’s reluctance to move to such facilities. However, even though the growth rate in the industry slowed in 2008 and 2009, as at 2014 it bounced back and has continually maintained an annual growth rate of 4.2%.
Starting a Group Home for the Elderly – Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographic composition of those who require the services of a group homes for the elderly are not restricted to the senior citizens who cannot stay alone and need constant supervision due to various reasons. Group homes for the elderly have 69% of females as compared to the 31% of males. According to the U.S Census Bureau, those aged between 65 and 84 have increased by over 38 percent and will continue to between the periods of 2001 and 2020.
There are other people who require the services of the group homes for the elderly as well, such as the government who needs licensed homes where senior citizens can be duly monitored in supervised settings as well as the children of the elderly who stay far away but would need a place for their parents or guardian to stay, where they can be duly supervised. So, one can see that the demography is one that is not just restricted to just a group of people but that it cuts across government agencies and other demographics as well.
List of Niche ideas Within the Elderly Care Industry That You Can Specialize in
If you intend running a home for the vulnerable, you will need to decide on what type of home you intend to run. This will help you when you go around to assess your competition and in writing a business plan. It will also help you know what your target market will be and how best to penetrate and get a huge share of this target market for yourself.
Now, if you have enough financing, you can decide to run several of the niches or stick to just one or two, just as long as you are able to provide quality services and meet with the requirements of the laws in the state where you will be operating from.
Therefore some of the niche areas that exists in this industry are;
- Group home for the elderly
- In-home personal care services
- Disability group support
- Home meal delivery and transportation
- Day care services for the physically disabled
- Assisted living facilities
- Medical assisted living facilities
The Level of Competition in Group Home for the Elderly Industry
The level of competition in this industry is very high even though only very few companies are dominating the market, but their market share is less compared to the remaining which comprises of a variety of profit and non-profit businesses.
The low entry barrier in this industry has made it difficult for many of the businesses in this industry to attain and retain high profit margins. Typically, the barriers into starting a business in this industry include regulations and licensing, economies of scale for businesses that operate on a large scale and the lower costs for organizations that are non-profit oriented in nature.
However, more of the group homes for the elderly thrive well in their region as most senior citizens usually prefer a location that they are familiar with. Smaller group homes for the elderly usually offer more personalized services and other additional services not offered by their competitors in order to be able to compete and remain relevant in the industry.
List of Well Known Brands in the Group Home Industry
No matter how many analysis points to the fact that this industry is one where there are no dominant companies with a high market value, there are still brands that stand out in the industry. Brands that stand out from the others usually have one or two things in their favor such as best customer care services, massive publicity strategies or the fact that they have existed in the industry for a long time.
Therefore, some of the leading well known brands in the group home for the elderly business here in the United States of America are;
- Emeritus Corporation
- Atria Senior Living Group
- Sunrise Senior Living Inc
- Brookdale Senior Living Inc
According to research, the global population doubled in the 20th century and will not double in the current century because of the decline in birth rates. However, the number of people who will reach 65 and above will double in the next 25 years. According to the United Nations, close to 600 million people in the world are aged 65 or older.
According to projections, by 2033, 13 percent of the population which will amount to more than 1.1 billion people globally will be aged 65 and older. America which has a high fertility rate will however see its old age dependency rate rise by 70%.
A larger proportion of old people in the economy means that growth will be slower especially as the old will need to use their savings to live which will result in less savings, even though it has been argued that this will mean that the old people will work longer and no longer retire at 65.
This is evident in the fact that nearly 20% of Americans that are aged over 65 are still in the labour force compared to the year 2000 where only 13% were in the workforce.
Starting Your Group Home for the Elderly business from Scratch versus Buying a Franchise
When it comes to starting a group home for the elderly business, you are faced with two options and that is to buy an existing business or to start the business totally from scratch. There are no franchise options in this industry.
Starting the business from the scratch has many advantages because it allows you to choose the location that would be best for your business and then carry out the research that you would need to enable your business become a success. Also, when starting from scratch, you would be able to build according to the specifications you have in mind for your customers.
This is not to say that buying an existing business does not have its advantages as well because it would allow you spend less than you would have if you are buying or leasing a property. Also, in buying an already existing business, you would not need to worry about zoning permits and regulations as the previous business would have taken care of such issues. Whatever route you choose to go is okay, as long as you have a good plan in mind as regarding the business you intend starting up.
Possible Threats and Challenges You Will Face When Starting a Group Home for the Elderly Business
Every business whether starting up or already existing usually faces challenges or threats and this is because there are circumstances that cannot be controlled despite how well planned a business is. One of the major challenges that you would be facing would be from competing with already established businesses offering same services in the area where you are located.
Other threats and challenges that you are likely to face are the downturn of the economy where fewer senior citizens will be able to afford the services of a group home for the elderly, stringent government regulations, poor source of funding on the state and federal level and other such challenges. You should however put strategies in place that would ensure that you are able to overcome any threat and challenge that your business might encounter.
- Best legal entity to use for a group home business
When intending to start or run a group home for the elderly, the legal entity you choose will help determine how big your business will grow. In creating a legal entity for your group home for the elderly business, you can select from a number of options such as sole proprietorship, partnership, a limited liability company or a corporation for your new business.
While the sole proprietorship and partnership kind of legal entity are simple to start up and doesn’t require much paperwork, they also do not offer strong legal protections. The good thing about these kind of legal structures is that you can convert it to a limited liability company or a corporation as your business grows and its needs changes.
However, it would be best if you seek the services of a law attorney or any one that can offer legal assistance so that the advantages and disadvantages of each legal structure would be enumerated for you and also leave you informed enough to pick the best for your business.
On the other hand the limited liability company and corporation form of legal entities are more difficult to set up but would provide the necessary protection for your business and is also regarded as a separate entity from you in case anything goes wrong or your business is sued.
Making the right choice however depends on the type of business you intend to run, how you intend to run the business, how many owners the business has and how much capital is needed to start the business. Even though not one legal structure can fit all the needs of your business, there are several criteria that you would need to use to find out that which best works for you.
The various criteria that you can use to determine which business structure best suits your business include; the different types of liabilities that each business structure brings, the investment needs of the business, the income tax that would accompany the legal entity, and the expenses and procedures needed to establish and continue running the business structure conveniently.
Why the Limited Liability Company (LLC) and Corporation is chosen by those who run the group home for the elderly business is mainly due to the fact that the business offers some sort of risks and any business that has a huge risk inherent in its activities would need more impersonal liability. This means that once anything goes wrong during the normal operational activities in your business, you would not be personally held liable as opposed to if it happened when you are under a legal entity such as a sole proprietor and a partnership structure.
Catchy Business Name Ideas Suitable for a Group Home for the Elderly business
Choosing the right name for your business is very important as the name you choose goes a long way in impressing upon your target market, the kind of brand you are and intend to be. The name you would need to choose for your business shouldn’t be one that will not be memorable or distinct. It is usually the norm for people to follow a particular trend in the industry when picking names for their businesses.
If you intend starting your group home for the elderly business and are stuck on names to choose from, consider some of the names below;
- Quaint Group Homes for the Elderly Inc
- Serendipity Home for the Elderly LLC
- Akwaint Home for the Elderly Inc
- Triple services home for the elderly
- Brooks Community Homes Inc
- Running stream home for the elderly
Having insurance either as an individual or a business is very important in the United States of America. It is imperative therefore that you choose an insurance policy that that will cover the business you intend going into. If you are confused as regards the insurance policy you would need for your business, it is best you approach an insurance agent or broker to guide you in choosing what would be best for your business.
Also, this would help you to draw a budget that would reflect on the insurance policy you intend to purchase for your group home for the elderly business. There are however basic insurance policies that you would need to get regardless of what business you might be starting up.
Therefore, some of the basic insurance policy covers that you should consider purchasing if you intend to start your own group home for the elderly business here in the United States of America are;
- General Insurance
- Health Insurance
- Fire Insurance
- Theft Insurance
- Liability Insurance
- Workers Compensation
- Overhead expense disability insurance
Intellectual Property Protection/Trademark
The group home for the elderly business and other such businesses in the industry is not the kind that requires one to secure an intellectual property protection because this is in essence a service based industry. Nothing is produced or invented in this industry that would require an intellectual property sort of protection.
This is not to however say that certain innovations haven’t been made in this industry where products were invented to help better take care for the elderly and should this occur, you would need to approach a lawyer to help you file for intellectual property protection.
Another thing that some owners usually want to protect are their unique company logos, media production concepts, jingles and slogans. However, except it is mighty important to you, if you haven’t produced any new invention, then getting an intellectual property protection for your logo or slogan shouldn’t be a priority for you.
Is Professional Certification Needed to Run a Group Home?
One of the key and necessary requirements for running a standard and successful group home for the elderly is the possession of professional certifications. There are certain certifications that the law requires from you and that you should work toward getting not just for yourself but for your employees as well. This will show that you are taking the group home for the elderly business you intend to run seriously.
Some of the certifications that you will be required to get when starting your own group home for the elderly business include;
- First Aid certification
- Cardiopulmonary Resuscitation (CPR) Certificate
- Fire marshal certification
- Food handler certification
List of Legal Documents You Need to Run a Group Home for the Elderly
Every business no matter the category requires certain documentations if it intends to operate legally in the United States of America and the group home for the elderly is no different. Therefore it is very important that documentations are in place before starting your group home for the elderly business so that you do not put your clients – the senior citizens and your employees at risk.
Therefore some of the basic legal documents that you would be required to possess in order to legally run your group home for the elderly business in the United States of America are;
- Certificate of incorporation
- Business license and permit
- Business plan
- Employee daily operation schedule
- Food handler’s license
- Employee Identification Number (EIN)
- Insurance Policy
- Contract documents
- Employment agreement
- Surety bond
Financing Your Group Home for the Elderly business
Getting the necessary finance for your group home for the elderly business is very important because it would be unwise of you to start a business and then run out of funds midway because you didn’t make the right plans. This is why it is very important to write a comprehensive business plan because, not only will it point out how much you need, it will also help in pointing out where you would need to get your of finance from.
Therefore, some of the financing options that you would need to explore when sourcing for start-up capital for your group home for the elderly business are;
- Generating start-up capital from personal savings and sale of personal stocks and properties
- Borrowing from friends and family members
- Renting out part of your residence in order to generate funds
- Going on crowdfunding sites to generate funds
- Applying for grants from local and state government agencies
- Applying for loan from the bank
Choosing a Suitable Location for your Group Home
Before starting your group home for the elderly business, you would need to conduct a research on the location where you intend to operate your business from. This will help you find out how many similar group homes for the elderly businesses already exist there and if the area will be able to accommodate more businesses like yours.
When selecting the appropriate location for your group home for the elderly business, you need to put several factors into consideration such as the zoning requirements of the city where your business will be located and who your neighbors would be.
If for instance you locate your group home for the elderly business in a community that appreciates your kind of business, you are less likely to have problems than if you locate your business in an area where most of the residents in the community are opposed to your kind of business.
Another thing you would need to know is if you can convert your private residence into a group home for the elderly. Also, while it is important that your group home for the elderly business isn’t located in areas that are too busy and have a lot of noise and traffic, it doesn’t mean that you choose a location that is so far back or not close to major roads. This is likely to be a major disadvantage during emergency cases where immediate experienced care is needed for the residents.
There are certain requirements that the place you choose for your business must meet. If you intend to have a large number of residents, then you must ensure that you buy a property or space that is huge enough, and ensure that the key requirements needed by the authorities for your kind of business are made available.
The comfort and convenience your group home for the elderly would bring will go a long way to attract more residents and thereby generating more profit for your business. Also, when choosing a location for your group home for the elderly, ensure that it is close to places where your residents would often like to visit like churches, senior centers, drug stores and a hospital.
In ensuring that you have chosen a perfect location for your group home business, you will then need to contact architects, builders and interior designers who have an experience in the kind of industry you intend starting up and will therefore be able to meet with your requirements. You would need to ensure that certain guidelines such as the Americans with Disabilities Act (ADA) are strictly adhered to during the location, planning and construction of the home in order to accommodate intending residents with physical challenges.
Starting a Group Home for the Elderly – Technical & Manpower Details
A group home for the elderly is where senior citizens are allowed to live together under the supervision of those called the caregivers.
Group homes for the elderly usually require daily living aids, safety equipment for the bathroom, skin care items, walking aids, diabetic supplies, incontinence, wheelchairs, mobility scooters and supplies to care for wounds and other light ailments.
When it comes to starting a group home for the elderly business, the size of your land and the type of building you intend to build will give you an inclination of how large your business would be and how much you would need to run such business.
The number of employees you would need to help kick start your business will depend on the size of the business and also the services you intend to render. You will need a chief executive officer, personal aids, accountant, marketing team, human resources and admin manager, medical aids, practical nurses, front desk officer, kitchen employees, serving employees, security guard, cleaner and driver.
This shows that you might likely need a minimum of 19 people to be able to run your group home for the elderly business to the standard it requires.
The Service Delivery Process Involved a Group Home for the Elderly
In order to be able to deliver the right service to your residents, several things must be in place such as knowing the requirements as regards the feeding and health of your residents and other such requirements. The group home for the elderly is where retired senior citizens live in groups and share common areas like the sitting room and dining area.
The daily affairs of the facility are usually handled by the admin manager who ensures that all other employees are aware of their duties and ensure that all functions are smoothly performed. However, if the facility is a medical one, then someone who is more medically inclined will be in charge of the affairs so as to ensure that everything is done according to industry standard practice.
Starting a Group Home for the Elderly – The Marketing Plan
- Marketing ideas and strategies
If your business is one that depends on revenue generation, then marketing your business is very important as it will allow individuals and even government agencies to be aware of your business and send the necessary contacts your way.
First of all, it is mighty important that you conduct a market survey on the business you intend to start as well as on your target market, if you intend to get a huge portion of the market share in the area where you will be operating from. The market survey will help you understand the psyche of your intending customers and how best to get their attention.
It is after you have conducted a thorough market survey that you can then draft the necessary marketing strategies that will be very effective for your business. Also, you can then decide on which strategies would most likely be worth your money before creating a marketing budget.
If you intend to network with government agencies and hospitals in your state, you must make sure that all is in order so that they will confidently refer the needed residents to your group home for the elderly. Therefore below are some of the platforms you will need to market your group home for the elderly business;
- Ensure that you formally introduce your group home for the elderly business to government agencies and community organizations such as religious, educational and charitable organizations.
- Ensure that your group home for the elderly business is listed in yellow pages and in online directories.
- Place adverts in local newspapers as well as on radio and television stations.
- Ensure that you advertise your business in popular websites and blogs.
- Attend and participate in community events in order to network and market your business.
- Pass out handbills and fliers in strategic locations.
Strategies to Boost Your Group Home Brand Awareness and Create Your Corporate Identity
Every business either new or existing requires constant promotion in order to boost the awareness of their brand and positively communicate their corporate identity to the target market as well as the industry at large. The reason why publicity is so important for businesses is that it helps businesses to always be in the eye of the target market, thereby causing an increase in patronage that would result to a boost in revenue for the company.
No business starts with the intention of remaining stagnant and not growing to become a brand to be reckoned with. However to achieve this, you must be ready to set aside a budget and spend money as well.
There are several medium that can be used to boost the brand awareness for a company and several businesses have keyed into this sort of strategy which is participating in, and sponsoring local events in the community so as to allow people know and identify their brands.
Another strategy is to make massive use of the internet and social media platforms such as Facebook, as this is not only a cheap source of boosting brand awareness but also ensuring that a larger audience is reached. Below therefore are some of the platforms that you can leverage on to boost your brand and also promote your business;
- Distribute handbills and paste fliers in certain strategic locations all around the city
- Make use of your website as well as social media platforms such as Facebook, Twitter, Linkedin and Instagram to increase awareness and promote your business vigorously
- Place billboards in strategic locations all around the area where your group home for the elderly will be located
- Place adverts in local and national newspapers and magazines as well as on radio and television stations
- Participate in local community programs in order to generate awareness for your group home for the elderly business
- Provide tours of the new facility to the press as well as interested parties
A Sample Group Home for Elderly Business Plan Template
Group Home Business Overview
When it comes to caring for people who can’t take care of themselves, there are several options and one of them is to take them to group homes. In general, a group home is a private residence for the elderly, children or young people who cannot live with their families due to obvious reasons, or people with chronic disabilities who may be adults or seniors and can’t take proper care of themselves if left to live alone. Basically, the term group home referred to homes from 8 to 16 individuals, which was a state-mandated size during deinstitutionalization.
Before a group home can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day. So also a standard group home is expected to have a house manager, night manager, weekend activity coordinator, and 4 part-time skill teachers were reported.
It is important to state that residents of group homes usually have one form of disability or the other. It could be autism, intellectual disability, chronic or long-term mental/psychiatric disorder, or physical or even multiple disabilities.
Some group homes were funded as transitional homes to prepare for independent living (in an apartment or return to family or marriage and employment), and others were viewed as permanent community homes. Society may prevent people with significant needs from living in local communities with social acceptance key to community development.
The residents of group homes sometimes need continual or supported assistance in order for them to be able to complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.
Going by the data published by the US Census Bureau, the regions that account for the largest share of establishments in the industry are the Southeast (23.9% of total establishments), Great Lakes (17.3%), West (12.9%) and Mid-Atlantic (12.7%) regions. This data basically reflects the age distribution in the United States. So also the data shows that employment in this industry is also concentrated in the Southeast, the Mid-Atlantic and the Great Lakes regions. The largest states in terms of employment are New York, California, Texas, Ohio and Florida.
The Nursing Care Facility industry of which group home is a subset of is indeed a very large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.
Statistics has it that in the United States of America alone, there are about 24,115 licensed and registered Nursing Home Facilities responsible for employing about 1,775,943employees and the industry rakes in a whooping sum of $132bn annually with an annual growth rate projected at 2.3% percent. It is important to state that there is no company with dominant market share in this industry.
Over and above, the Nursing Care Facility / Group Home line of businesses in developed countries are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market; the aging population and those who with disabilities.
Group Home for Elderly Business Plan – Executive Summary
Grace & Mercy Group Home, LLC is a standard and licensed group home facility that will be located in the heart of Saint Augustine – Florida in a neatly renovated and secured housing facility. Our group home is specifically designed and equipped with the needed accommodation facilities / gadgets to give comfort and security to all our residence irrespective of the religious affiliations, their race, and health condition. We are set to take care of people with one form of disability or the other whether old or young.
Grace & Mercy Group Home, LLC is a family owned and managed business that believe in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the hospitability industry by establishing our own assisted living facility business. We are certain that our values will help us drive the business to enviable heights and also help us attract the numbers of clients that will make our facility fully occupied year in year out.
We are going to be a health conscious and customer-centric group home business with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be enables to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners (vendors), and all our employees as well.
Our accommodation facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Grace & Mercy Group Home, LLC will provide a conducive home for our residence.
We will engage in services that will help our residence complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.
Grace & Mercy Group Home, LLC will be equipped with everything that will make life comfortable for the disable and elderly. We will as build a fitness room and library et al. We will also install a free Wi-Fi that will enable our residence and guests surf the internet with their laptop in the room free of charge, and there will be wireless access in all the public area within the lodging facility.
Grace & Mercy Group Home, LLC is a family business that is owned and managed by Mrs. Grace Smith and her family. Mrs. Grace Smith is a licensed Group Home Administrator, nurse and social health worker with well over 25 years of experience working for leading brand in the industry. She has a Master’s Degree in Public Health and she is truly passionate when it comes to taking care of people with disabilities.
Grace & Mercy Group Home, LLC is set to operate a standard Group Home service in Saint Augustine – Florida. The fact that we want to become a force to reckon with in the Nursing Care Facility industry means that we will provide our resident a conducive and highly secured accommodation.
In all that we do, we will ensure that our customers are satisfied and are willing to recommend our facility to their family members and friends. We are in the group home business to deliver excellent services and to make profits and we are willing to go the extra mile within the law of the United States to achieve our business goals, aims and objectives.
Grace & Mercy Group Home, LLC will provide a conducive home for our residence; we will engage in services that will help our residence complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.
Our Vision Statement
Our vision is to become the number one choice when it comes to group home service delivery in the whole of Florida and also to be amongst the top 20 group home service provider in the United States of America within the next 10 years.
Our Mission Statement
Grace & Mercy Group Home, LLC is in business to establish a first class group home facility service that will take care of both the elderly and young disable as long as they can afford our services. We want to become one of the leaders in nursing care facility industry in Florida, and in The United States of America.
Our Business Structure
Grace & Mercy Group Home, LLC is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (nurses, nurse’s aides, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers and home caregivers) to man various job positions in our organization.
We are quite aware of the rules and regulations governing the nursing care facility industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our business brand to be well accepted in Florida and the whole of the United States.
When hiring, we will look out for applicants that are not just qualified and experienced, but homely, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more.
These are the positions that will be available at Grace & Mercy Group Home, LLC;
- Chief Executive Officer
- Medication Management Counselors
- Assisted Living Administrator (Human Resources and Admin Manager)
- Nurse’s Aides
- Home Health Caregivers / Home Caregivers /County Aging Workers
- Sales and Marketing Executive
- Accounting Officer
Roles and Responsibilities
Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board.
Group Home Administrator (Admin and HR Manager)
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Designs job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Oversees the smooth running of the daily home activities.
Medication Management Counselors
- Responsible for providing professional medical services to our residence
- Responsible for ensuring that disable and elderly people under our care takes their medication as at when due
- Responsible for handling medical emergencies
Nurses / Nurse’s Aides / Mental Health Counselors
- Responsible for managing our patients in their various houses
- Handles personal injury case management
- Responsible for offering home medication management services
Marketing and Sales Executive
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents Grace & Mercy Group Home, LLC in strategic meetings
- Helps to increase sales and growth for Grace & Mercy Group Home, LLC.
Accountant / Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Grace & Mercy Group Home, LLC
- Serves as internal auditor for Grace & Mercy Group Home, LLC.
- Responsible for cleaning the facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Assists our residence when they need to take their bath and carry out other household tasks
- Cleans both the interior and exterior of the facility
- Handles any other duty as assigned by the facility manager
Group Home for Elderly Business Plan – SWOT Analysis
Grace & Mercy Group Home, LLC is set to become one of the leading group home facility in Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our group home business to be the number one choice of all residence of Saint Augustine and other cities in Florida. We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.
Even though our Chief Executive Officer (owner) has a robust experience in social work and taking care of people with disability and the aging population, we still went ahead to hire the services of business consultants who are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the assisted living facility industry.
This is the summary of the SWOT analysis that was conducted for Grace & Mercy Group Home, LLC;
Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our organization. As a matter of fact, they are some of the best hands in the whole of Saint Augustine, Florida. Our location, the business model we will be operating on, well equipped facility and our excellent customer service culture will definitely count as a strong strength for us.
Grace & Mercy Group Home, LLC is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the highly experienced hands in the nursing care facility industry.
The opportunities that are available to group home facilities are unlimited considering the fact that we have growing aging population and people with one form of disability or the other in the United States and we are going to position our business to make the best out of the opportunities that will be available to us in Saint Augustine – Florida.
Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new and bigger / well established group home facility brand in same location where ours is located.
Group Home for Elderly Business Plan – MARKET ANALYSIS
- Market Trends
Because of the essential nature of services provided by nursing care facilities / group homes, the industry was able to grow even in the face of economic stagnation. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.
Since the aging population is more prone to injury and illness, and therefore requires more assistance with daily activities, the larger share of senior adults has propelled demand for nursing care facilities. Despite favorable demographic trends, unsatisfactory government funding has hindered industry growth.
The trend in the industry is that players in the industry are now flexible enough to adjust their services and facilities to attract more knowledgeable and educated residents by incorporating more technology and adapting to new markets
Another trend in the industry is that, in order to make group home facilities more affordable for low income individuals, many states in the United States of America are enacting changes to the portion of Medicaid which can be applied to Group Home Facilities.
Before now, only individuals living in nursing homes were typically provided Medicaid assistance, but in recent time, there are now a growing number of states that have recognized the importance of offering Medicaid dollars to senior citizens living in Group Home Facilities.
No doubt the Nursing Care Facility industry will continue to grow and become more profitable because the aging baby-boomer generation in Unites States is expected to drive increasing demand for this specialized services and care.
- Our Target Market
Grace & Mercy Group Home, LLC is in business to service the aging population and people with disabilities in Saint Augustine – Florida and other cities in Florida. We will ensure that we target both self – pay customers (who do not have Medicaid cover), and those who have Medicaid cover.
Generally, those who need the services of group home facilities are the aging population, people with one form of disabilities or the other and perhaps those who need daily help.
The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the nursing care facility industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies.
Our customers can be categorized into the following;
- The aging population
- People with one form of disability or the other (Both young and the elderly)
- The aged who might suffer from severe joint pains and every other age categories who falls under the conditions listed by the physician.
Our Competitive Advantage
Aside from the competitions that exist amongst players in the nursing care facility industry, they also compete against other home healthcare services providers such as assisted living facilities.
To be highly competitive in the nursing care facility industry means that you should be able to secure a conducive and secured facility, deliver consistent quality patient service and should be able to meet the expectations of the children / family members paying for their loved elderly parents and people with disabilities in your facility.
Grace & Mercy Group Home, LLC is coming into the market well prepared to favorably compete in the industry. Our office facility is well positioned (centrally positioned) and visible, we have good security and the right ambience for elderly and disable people.
Our staff is well groomed in all aspect of group home facility services and all our employees are trained to provide customized customer service to all our clients. Our services will be carried out by highly trained professional nurse’s aides, medication management counselors, county aging workers, home health caregivers and home caregivers who know what it takes to give our highly esteemed customers value for their money.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups group home facility business and other related businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
Group Home for Elderly Business Plan – SALES AND MARKETING STRATEGY
Sources of Income
Grace & Mercy Group Home, LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry.
We will generate income by providing a conducive home for our residence; we will engage in services that will help our residence complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.
One thing is certain; there would always be elderly people and people with disabilities who would need the services of group home facility.
We are well positioned to take on the available market in Saint Augustine – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our group home facility business and our residences base.
We have been able to critically examine the group home services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Saint Augustine – Florida.
Below is the sales projection for Grace & Mercy Group Home, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Year-: $100,000 (From Self – Pay Clients): $250,000 (From Medicaid Covers)
- Second Year-: $250,000 (From Self – Pay Clients): $500,000 (From Medicaid Covers)
- Third Year-: $500,000 (From Self – Pay Clients): $1,500,000 (From Medicaid Cover)
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
Marketing Strategy and Sales Strategy
The marketing and sales strategy of Grace & Mercy Group Home, LLC will be based on generating long-term personalized relationships with our residence. In order to achieve that, we will ensure that we offer top notch all – round nursing care facility services at affordable prices compare to what is obtainable in Florida.
All our employees will be well trained and equipped to provide excellent and knowledgeable nursing care facility services and customer service. We know that if we are consistent with offering high quality nursing care facility service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.
Before choosing a location for Grace & Mercy Group Home, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Saint Augustine and other cities in Florida. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the nursing care facility industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Florida.
In summary, Grace & Mercy Group Home, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to residence, clubs for elderly and people with disability and other stake holders in Florida
- Advertise our business in community based newspapers, local TV and local radio stations
- List our business on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing
- Leverage on word of mouth marketing (referrals)
- Enter into business partnership with hospitals, government agencies and health insurance companies.
- Attend health care related exhibitions / expos.
Group Home for Elderly Business Plan – Publicity and Advertising Strategy
We are in the group home facility business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote Grace & Mercy Group Home, LLC.
Grace & Mercy Group Home, LLC has a long term plan of building group home facilities in key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Saint Augustine – Florida before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public.
Here are the platforms we intend leveraging on to promote and advertise Grace & Mercy Group Home, LLC;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community health programs that appeals to the aging population
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
- Install our Bill Boards on strategic locations all around Saint Augustine – Florida.
- Engage in road show from time to time in location with growing aging population
- Distribute our fliers and handbills in target areas with high concentration of aging population and people with disabilities
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
Our Pricing Strategy
We are aware that for us to gain more grounds, we will need to enter the market with a very competitive price. Grace & Mercy Group Home, LLC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.
On the average, group home facility service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment. In view of that, it is easier for group home facility service providers to bill their clients based in their discretions.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.
At Grace & Mercy Group Home, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
- Check (only from loyal customers)
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
Start – Up Expenditure (Budget)
If you are looking towards starting a nursing care facility business, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.
You would need money to secure a standard residential facility big enough to accommodate the number of people you plan accommodating per time, you could need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.
The items listed below are the basics that we would need when starting our assisted living facility business in the United States;
- The Total Fee for Registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses for the grand opening of Grace & Mercy Group Home, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Consultant – $2,500.
- Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
- Cost for leasing a standard and secured facility in Saint Augustine – Florida for 2 years – $500,000
- Cost for facility remodeling – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (stocking with a wide range of products such as toiletries, food stuffs and drugs et al) – $50,000
- Storage hardware (bins, rack, shelves,) – $3,720
- The cost for the purchase of furniture and gadgets (Beds, Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
- The cost of Launching a Website: $700
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully set up our group home facility in Saint Augustine – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funding / Startup Capital for Grace & Mercy Group Home, LLC
Grace & Mercy Group Home, LLC is a family business that is solely owned and financed by Mrs. Grace Smith and her family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas Grace & Mercy Group Home, LLC intends to generate our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
Group Home for Elderly Business Plan – Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Grace & Mercy Group Home, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our group home services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Grace & Mercy Group Home, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
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- Application for business license and permit: Incomplete
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- Applications for Loan from our Bankers: Incomplete
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DO THESE THIRD:
- Drafting of Employee’s Handbook: Incomplete
- Drafting of : Incomplete
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- Writing of Business Plan: Incomplete
- Drafting of Employee’s Handbook: Incomplete
- Recruitment of employees: Incomplete
- Creating Awareness for the business both online and around the community: Incomplete
- Health and Safety and Fire Safety Arrangement (License): Incomplete
- Opening party / launching party planning: Incomplete
- Purchase of the Needed software applications, furniture, office equipment, electronic appliances and facility facelift: Incomplete
- Health and Safety and Fire Safety Arrangement: Incomplete
- Establishing business relationship with vendors and key players in the industry: Incomplete
- Purchase of Medical Equipment and vans et al: Incomplete
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: Incomplete
- Creating Awareness for the business both online and around the community: Incomplete
- Health and Safety and Fire Safety Arrangement (License): Incomplete
- Opening party / launching party planning: Incomplete
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