Is the name recognition, training and ongoing support worth the upfront license fee and ongoing franchise fees you’ll pay over 10 years? The level of care is comparable to an assisted living facility. Same thing with assisted living but probably even more so. Include all start-up costs, insurance premiums and marketing expenses in the business plan. Please consult with your attorney, CPA or other professional advisor before making business decisions. It really depends on your market and what is expected. I am interested in this business because of my 93-year-old Aunt and what our experience has been with her with these facilities both board and care and small assisted living. We have an idea of the income potential, but we’d like help understand the expected costs per client. It’s only half joking that many small businesses are non-profits anyhow. Just click that link. It is far easier, less costly, and safer, to start a smaller business with less equipment, fewer employees, smaller retail space – which all cost less. Likewise, staffing and other costs can be spread over a larger source of revenue in larger facilities. Well, actually, a lot is confusing for me. Great article Mike. Your question about the wisdom of having a smaller facility or a larger facility is a good one. And some of the more successful facilities that I’ve seen have similar stories. The term group home and residential facility are generic terms for a wide variety of facilities. Some people out there simply set up one little group home to make an extra $2,000 – $3,000 per month to help pay bills, daycare costs, or simply save money for the future. They often have opinions that could be very revealing about the direction you should go. Rob from Little House On The Road lives in a pop-up camper with his wife. Second,  since the facility is already operating and comes with furnishings, she only plans to make about $50,000 in improvements to the furnishings and equipment. That’s how our company started in 1988 and I always love to see others taking action to bring a better solution to the market and all we serve. The best that I can offer you for now is a range based on your budget — you have a budget, right? Those are some unconventional sources but they might just work…they have for others. Please help with this & any other suggestions. There is no question that there is a labor shortage in senior care today. There are many smaller assisted living facilities for sale – with a $75k down payment you should be able to find one. Number of patients 2. I do not know if I will have any down payment. But we aren’t currently working on anything in the Tampa area. IF I was able to show them a very accurate budget sheet that showed the profit margins of , lets say, one average month, and I was able to prove that with that budget I would be able to make the payments, how do you think a bank would go forward with that? Any help or guidance is appreciated. How much money will it take to start your small business? Larger facilities have an advantage in the economies of scale – a few vacancies may not cause concern in a 30 bed facility but they can sink a small facility if not filled soon. She resides in a small facility with 13 current residents. What happens in 3-5 years when you’re ready to expand market territory? Another good question. I just heard today that Paypal is even getting into lending for small businesses. I lived in a group home for a few years, and it’s good and bad. Education There are no specific educational requirements for starting a recovery house. Yes, our company sells assisted living facilities across the US. Inspiration may keep you motivated. Learn how to start a group home business in this article. Mike, Mike Good Afternoon, Opening a drug and alcohol recovery center (rehab center to most) requires two pieces that most people forget about. Hope this helps. We offer Independent and Assisted Living in surroundings that are elegant, comfortable, and affordable. I need help to find a patience And how do I get paid? How Much Money Do I Need To Start and Assisted Living Facility? Others use this additional income stream to spend, go on vacations, or simply use to enjoy their lives. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000; The cost for Start-up inventory – $16,027 Even though you may have always wanted to open a home for the elderly, your local Regional Center may only need homes for children. I need an investor who can help me with funding do you know where i can start the search. I did some research and it appears that a good source for the required education is the LifeSpan Network, the trade association for senior care providers in Maryland. Would I be better off to acquire a loan and use my capital for managing the facility or pay for the facility and operate on income? Research Methodology – how the data you need will be collected (existing research, in person, phone, online, focus group, etc. First, your question about which state has the fewest hoops. I like to be debt free but I like to be liquid, too. Have you finished the article for Maryland licensing? Mike, Hey Mike, I live n Arkansas. Be conservative and make sure you’re not banking on the best case scenario – keep a contingency line or miscellaneous expense in your budget to have some cushion for the things you miss when you’re starting out. Susan – Thanks for connecting with us. What are the going pay rates for staff? Mike good morning very grateful for your suggestions. i live in maryland and my passion is opening a 6 bed assisting living in waldorf md. Mike. If so, that also depends on the cost of your property, the cost of staff you plan to hire, payroll taxes and benefits, utilities, property taxes, insurance, food, supplies, license, training, activities, etc, etc. I am an RN of 30 yrs and have a piece of property that I want to construct a 15 bed facility as that is what my zoning will allowed. Well, that depends. But I have found that in New Jersey we seem to have many large scale facilities in our surrounding area. Send me an email at mike@seniorcarerealty.com with more details about the size, type and location of property you’re seeking and we will get back to you asap. Hiring a good management team is essential and picking a good one depends on where you’re located and what they’ll be managing. We’d like help understanding what licensing we personally need to obtain. Brenda – Yes, I’ve been involved with ground up development many times. For small assisted livings or residential care home facilities, what is required from a medical staff perspective? Group homes for mentally or emotionally challenged individuals, as well as for senior citizens, provide economically-sound solutions to this dilemma. but I have a few questions I am a registered CNA I’ve been taking care of seniors for 25 years I need some advice I want to buy a 4 bedroom house. Hi, I live in South Florida and have been doing countless research into opening an Assisted Living Facility. This post is not intended to provide legal or tax advice, and the information provided is only a limited discussion of the issue. If not, start there. Two of my dear friends & I are looking to start an ALF n our area. Again, if there are several good providers and they’re all suffering from high vacancies already, then the last thing you want to do is join their misery. Projects like this video highlighting caregiver careers are one way they’re trying to attract more to this field. The cost for leasing a standard facility in a good and centralized location – $350,000; The cost for remodeling the facility and construction of a gym and Olympic size swimming pool – $300,000. Melissa – It’s been a long time coming but it just went up on the website. As I mentioned, I’ll follow up with an email to learn more about your project and location so that I can give you tips on managers and lenders in your area. A properly staged home can increase the value of property for sale. , options to getting started with a home care business. The term "group home" is used to describe a model of care in which children or adults are provided with 24-hour residential care in a small group facility. How Much Does It Cost to Create Website Content? A social worker, an LPN & a CNA. I have been doing quite a bit of research and will be taking a class in a couple of weeks to obtain my ALF Administrator Certification in New Jersey. 2) You mentioned in another article that you can hire a consultant. Your home office will fall into one of three size categories. Thanks for reading. Good luck and check back with updates on your progress. Find a location that will suit your group home needs. Your next question is probably how do I raise that much money? Cost largely depends on the mortgage for the home and the average rent in the area. Another option would be investors but I want to run this operation the way I want to run it… im sure youd like to include your response in your blog. But its a very scary idea attending AALNA classes to get a lead in the facility $. With on an everyday basis Texas neighborhood, this property will rent for anywhere from $ 1000 – $ per! A typical Texas neighborhood, this property will rent for anywhere from $ 5,000 to $ 10 bale. 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