Residential assisted living facilities are created for people who are independent but require day-to-day assistance to be able to carry out basic tasks such as taking their medications, bathing, feeding themselves amongst others. It is important to state that people in licensed residential care may require more assistance daily as they usually have complex health care needs.
Available statistics made available by the NCAL show that today there are over 30,000 assisted living communities with one million licensed beds. The average number of licensed beds within these communities is 33, but the largest facilities can have upwards of 100 beds, while the smallest have as little as four to ten.
The average age of assisted living residents is 84. Though most facilities allow patients as young as 65, 52 percent of residents are over 85 and 30 percent are between 75 and 84.
Steps on How to Write a Residential Assisted Living Business Plan
Table of Content
1. Executive Summary
Golden Care® Residential Assisted Living, Inc. is a standard residential assisted living facility that will be based in San Diego, California. The organization will be committed to providing a senior housing option in which residents will receive assistance with activities of daily life in a comfortable, home-like environment.
Our residents will be encouraged to maintain the highest level of independence possible and they will be trained not to need the level of care provided by a skilled nursing facility. Sis. Mary Alphonsus is the founder and CEO of Golden Care® Residential Assisted Living, Inc.
a. Our Services
Golden Care® Residential Assisted Living, Inc. will provide a range of assistance to our residents so that they will be able to carry out basic everyday tasks such as taking their medications, bathing, feeding themselves amongst others.
Our services are designed to help our residents live their normal life despite their sickness or the condition of their health.
b. Nature of the Business
Our Residential Assisted Living facility will operate as a nonprofit organization, we will source finance from donor organizations, individuals, and relevant government agencies. In some cases, we will charge residents or their families for the services rendered, but we are designed not to make profits.
c. The Industry
Golden Care® Residential Assisted Living, Inc. will operate under the Assisted Living Facility industry.
d. Mission Statement
Our mission is to provide comfortable, safe, and secure facilities that will help adults and people with disabilities to live and enjoy an independent life in a safe environment.
e. Vision Statement
Our vision is to become the best residential assisted living facility in the whole of California. We will continue to set the standard for players in the Assisted Living Facility industry in the United States of America.
f. Our Tagline (Slogan)
Golden Care® Residential Assisted Living, Inc. – A Family and Home You Can Trust!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Golden Care® Residential Assisted Living, Inc. will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.
h. Our Organizational Structure
- Head of Residential Assisted Living (President)
- Assisted Living Administrator
- Medication Management Counselors
- Nurse’s Aides
- Home Health Caregivers/Home Caregivers/County Aging Workers Fundraiser
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Mary Alphonsus (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
- Rhoda James (Board Member) 13 Percent Shares
- Fr. Philips Linus (Board Member) 10 Percent Shares
- Fr. Peter Shadrack (Board Member) 10 Percent Shares
- Bridgette Roderick (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for a residential assisted living facility
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Donor Organizations
- Highly Secured, Clean and Well-structured Facility
- Easy Access to Critical Medications, Drugs, and Other Supplies
- Budget Limitations
- Lack of Customized Software
- Inability to initially run and manage the organization without the support of donations and grants
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced and qualified employees longer than we want
- San Diego, California has loads of aging population.
- The government of California gives support to organizations like ours
- Finance from donor organizations, individuals, and relevant government agencies et al.
i. How Big is the Industry?
The Assisted Living Facility industry is worth over $33 billion in the United States and there are about 20,855 licensed and registered residential assisted livings with a workforce of about 506,551 scattered all across the United States. Please note that currently, around one million Americans live in some type of senior living community, and that number is expected to double by the year 2030.
ii. Is the Industry Growing or Declining?
The assisted living facility industry is growing. As the baby boomer generation continues to enter retirement age, demand for senior care services has surged. Available data shows that by the year 2040, the 85+ population is expected to triple from the 5.7 million there were in 2011 to 14.1 million.
iii. What are the Future Trends in the Industry
The Assisted Living Facility industry is changing, and players in the industry are improvising. No doubt, robotic technology, and specialized software will change the landscape of the Assisted Living Facility industry going forward.
iv. Are There Existing Niches in the Industry? If YES, List them
Yes, there are niche ideas in the Assisted Living Facility industry, and here are some of them;
- Continuing care retirement communities
- Assisted living facilities and homes for the elderly
- Independent-living facilities
v. Can You Sell a Franchise of your Business in the Future?
Golden Care® Residential Assisted Living, Inc. has plans of selling franchises in the nearest future and we will target major cities that have fast-growing aging populations in the United States of America.
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance
- Liability problems
- Continuously changing consumer demands
i. Who are the Major Competitors?
- Harbor House Assisted Living
- Golden Living Assisting Hands
- Assisted Living Concepts Inc
- Assisting Hands Home Care
- HCR ManorCare
- Brookdale Senior Living, Inc
- Brotoloc Health Care Systems Inc
- Tutera Senior Living & Health Care
- Keystone Senior Management Services
- Volunteers of America National Services
- Evangelical Lutheran Good Samaritan Society
- Life Care Centers of America
- Capitol Senior Living
- National Healthcare Corp.
- 5 Star Quality Care
- Benedictine Health System
- Hospice care
- Genesis HealthCare Corp
- Senior Lifestyle Corporation
- Sunrise Senior Living, Inc.
ii. Is There a Franchise for Residential Assisted Living? If YES, List them and their cost
- Assisting Hands Home Care (Initial Investment – $77,050 – $149,000)
- BeeHive Homes Assisted Living (Investment Range – $250,000 – $1,000,000)
- Accessible Home Health Care (Minimum Cash Required – $100,000)
- Acti-Kare Responsive In-Home Care (Minimum Cash Required – $30,000)
- BrightStar Care® (Initial Investment – $93,048 – $154,307)
- Golden Heart Senior Care (Minimum Cash Required – $45,000)
- Amada Senior Care (Initial Investment – Low – $85,010 / High – $178,154)
- Always Best Care (Minimum Cash Required – $60,000)
- Options For Senior America (Minimum Cash Required – $50,000)
- A Place at Home (Minimum Cash Required – $100,000)
iii. Are There Policies, Regulations, or Zoning Laws Affecting Residential Assisted Living facilities?
Yes, there are county or state regulations or zoning laws for Residential Assisted Living facilities. The law in the United States states that before a non-medical home care facility such as Residential Assisted Living can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week.
So also, a standard Residential Assisted Living is expected to have a qualified assisted living administrator, night manager, and 2 or more caregivers depending on the size of the facility.
a. Who is your target audience?
i. Age range
Our target market falls within 65 years and older.
ii. Level of Educational
We don’t have any restriction on the level of education of those we will accommodate in our residential assisted living.
iii. Income Level
We don’t have any cap on the income level of those we will accommodate in our residential assisted living. Besides, most people who are admitted to residential assisted living have no source of income.
There is no restriction when it comes to the ethnicity of the people we will welcome to our residential assisted living.
There is no restriction when it comes to the language spoken by the people we will welcome into our residential assisted living.
vi. Geographical Location
Residents from any geographical location will be welcomed in our residential assisted living.
Golden Care® Residential Assisted Living, Inc. will not restrict anyone from accessing our services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Build a Referral Network.
- Tap Into Text Marketing.
- Create a call to action that rocks.
- Create landing pages that convert.
- Turn our Social Media Channels Into a Resource
- Develop our Business Directory Profiles
- Promote our residential assisted living through multiple channels
- Build Relationships with Other Nonprofits and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for customers.
- Create an efficient content marketing strategy.
- Create a community for our audience (people age 65 and older).
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Golden Care® Residential Assisted Living, Inc. will make sure it covers upkeep, medications, premium, economy or value, and full care package for each resident in our facility, In all our pricing strategy will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charity to help refer residents to us.
Golden Care® Residential Assisted Living, Inc. will also leverage the 4 Ps of marketing which are the place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need toiletries, disinfectants, sanitizers, hand gloves, medications, and foodstuffs means that Golden Care® Residential Assisted Living, Inc. will operate an inventory strategy for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
Golden Care® Residential Assisted Living, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)
c. Payment Options for Customers
Here are the payment options that Golden Care® Residential Assisted Living, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Golden Care® Residential Assisted Living, Inc., we offer services, and the nature of the services we offer does not accommodate return policy and incentives, but we guarantee our residents that they will get maximum assistants that will help them carry out their daily activities without any hindrance.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to our residents, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to achieve this.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and using fundraising strategies that will help the firm to boost our service offerings and to support revenue growth.
a. What Happens During a Typical Day at a Residential Assisted Living?
Residential assisted living means that the workers are supposed to reside in the facility and their typical day-to-day activities revolve around the facility. Our day starts by;
- Helping residents get into/out of bed or chair.
- Helping residents with toilet hygiene.
- Helping residents with Bathing or Showering.
- Helping residents with Getting Dressed.
- Helping residents with Personal hygiene.
- Helping residents with feeding and taking medications.
- Assist residents in Walking/Climbing Stairs.
- Be available to carry out safety and emergency responses when required.
b. Production Process (If Any)
There is no production process when it comes to Residential Assisted Living.
c. Service Procedure (If Any)
The services procedure for a residential assisted living facility is geared towards assisting and teaching skills required to manage one’s basic physical needs, including personal hygiene or grooming, dressing, toileting, transferring or ambulating, bladder control, toilet use, transfers (bed to chair and back), mobility on level surfaces, feeding, and bathing.
d. The Supply Chain
Golden Care® Residential Assisted Living, Inc. will rely on hospitals, religious organizations, and government agencies in our city to refer residents to us. So also, we have been able to establish business relationships with wholesale supplies of toiletries, disinfectants, sanitizer, hand gloves, medications, and foodstuffs et al.
e. Sources of Income
Golden Care® Residential Assisted Living, Inc. will make money from;
- Fees paid by residents or from Medicare
- Contributions for partners and donors
- Grants from government agencies and charity organizations
- Community support.
Please note that a report released by Genworth Financial shows that the average cost of assisted living in 2020 was $4,300 per month. So also, a report published by the National Center for Assisted Living shows that the median cost for assisted living in the United States is about $4,300 per month or $51,600 annually.
a. Amount Needed to Start your Residential Assisted Living?
Golden Care® Residential Assisted Living, Inc. would need an estimate of $450,000 to successfully set up our residential assisted living in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $250,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $80,000
- Website: $600
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Golden Care® Residential Assisted Living, Inc. will not build a new facility for our residential assisted living; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Residential Assisted Living?
- Cost of stocking up supplies such as medications, toiletries, disinfectants, sanitizer, hand gloves and beddings et al
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital
- Head of Residential Assisted Living (President) – $45,000 Per Annum
- Assisted Living Administrator – $36,034 Per Annum
- Medication Management Counselors – $35,600 Per Annum
- Nurse’s Aides – $30,660 Per Annum
- Home Health Caregivers/Home Caregivers / County Aging Workers – $32,878 Per Annum
- Fundraiser – $36,500 Per Annum and based on target
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
- Security Guard – $22,000 Per Annum
f. How Do You Get Funding to Start a Residential Assisted Living
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
- Source for soft loans from your family members and your friends.
a. How Much Should You Charge for your Service?
At Golden Care® Residential Assisted Living, Inc., our monthly fees for independent living will be $4,315 for assisted living and $5,779 for memory care.
But it is important to note that at Golden Care® Residential Assisted Living, Inc., most of the fees charged our residents are paid by our donors, participating providers, and communities, so we will offer our residents a completely cost-free service with no hidden fees.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $550,000
c. Estimated Profit You Will Make a Year?
Golden Care® Residential Assisted Living, Inc. will operate as a nonprofit organization.
d. Profit Margin of a Residential Assisted Living
Golden Care® Residential Assisted Living, Inc. is designed not to make profits hence we don’t have a profit margin for our services.
Golden Care® Residential Assisted Living, Inc. will grow by first opening other outlets in key cities in the United States of America within the first five years of establishing the business. We will start selling franchises from the sixth year.
Golden Care® Residential Assisted Living, Inc. plans to expand first to other cities in California, and then to Florida and Texas.
The reason we intend to expand to these geographic locations is that available statistics show that the cities listed above have the highest number of aging people. About 52 million Americans are age 65 or older, according to the Census Bureau’s 2018 population estimates. One-quarter of these older Americans live in one of three states: California, Florida, and Texas.
The founder of Golden Care® Residential Assisted Living, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.
The goal of combining two or more charitable organizations that are into assisted living on a global scale is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team and board of trustee.