An elderly group home is a facility or business that provides a comfortable living environment that is restricted in the kind of care they provide. This means that an elderly group home does not provide the high level of care provided at nursing homes, but they give elderly people the option to live among peers.
It is also important to state that personal care is not done at an elderly group home, as residents are expected to manage their personal care. Available statistics show that there are now about 7,629 group homes (elderly group homes inclusive) in the United States as of 2022, an increase of 1 percent from 2020.
The data also shows that California has 754 group homes (elderly group homes inclusive), Florida has 296 group homes (elderly group homes inclusive) and New York has 284 group homes (elderly group homes inclusive). These are the States with the greatest number of group homes (elderly group homes inclusive) in the United States of America.
Steps on How to Write an Elderly Group Home Business Plan
1. Executive Summary
Age Gracefully® Elderly Group Home, Inc. is an elderly group home that will be based in La Paz, Arizona. The elderly people in our group home will reside in a family-like setting with trained staff and effective social and bonding programs.
We will house between 10 to 20 elderly people per time and they will enjoy full use of our community resources, including health care, social, and recreational opportunities. Rev. Sis. Dorothy Linus is the founder and CEO of Age Gracefully® Elderly Group Home, Inc.
a. Our Services
Age Gracefully® Elderly Group Home, Inc. will provide a wide range of services that revolves around providing therapy, 24-hour supervision, and support to elderly people in a home-like setting. The facility will allow our residents to bond with other old people and live the rest of their lives happy and fulfilled.
b. Nature of the Business
Our Group Home facility will operate as a nonprofit organization. We will source finance from donor organizations, private individuals, and relevant government agencies. But in some cases, we will charge residents or their family members for the services rendered howbeit, we are designed not to make profits but to keep the organization going.
c. The Industry
Age Gracefully® Elderly Group Home, Inc. will operate under the senior care and group homes industry.
d. Mission Statement
Our mission is to provide safe and secured elderly group home facilities and services geared towards taking care of old people and making them live as though they are still living with their family members.
e. Vision Statement
Our vision of establishing our elderly group home is to give elderly people all the support and care they need so as not to miss their families.
f. Our Tagline (Slogan)
Age Gracefully® Elderly Group Home, Inc. – Maximizing Life for The Elderly!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Age Gracefully® Elderly Group Home, 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 Group Home (President)
- House Manager (Administrator)
- Nurse’s Aides
- Caregivers/Social Worker
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Sis. Dorothy Linus (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Rev Fr. Romanus Marcus (Board Member) 19 Percent Shares
- John Bosco (Board Member) 10 Percent Shares
- Aaron Barosh (Board Member) 10 Percent Shares
- Anne Mayfield (Board Member and Secretary) 10 Percent Shares.
- Ideal Location for an elderly group home facility
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Donor Organizations
- Highly Secured and Clean Facility
- Highly structured programs
- Inability to initially manage the organization without the support of donations and grants
- Financial Limitations
- Operating from a leased facility
- Inability to retain our highly experienced and qualified employees longer than we want
- The aging population in the United States is growing hence providing opportunities for elderly group home
- Government funding for Medicare and Medicaid is anticipated to increase
- The group homes industry is projected to reverse its decline trend and increase in the coming years.
- A pool of finance from donor organizations, individuals, and relevant government agencies et al.
i. How Big is the Industry?
The senior care and group homes industry that elderly group home is a subset of is worth over $8 billion in the United States and there are about 9,623 licensed and registered senior care and Group Homes with a workforce of about 124,872 scattered all across the United States.
ii. Is the Industry Growing or Declining?
Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline of 8.1 percent in 2020 due to declining federal funding and donations. Since many operators are nonprofit, elderly group homes rely on federal funding and private donations. Since unemployment and consumer spending is anticipated to decline in 2020, leading to fewer donations, profit is set to decline.
Please note that in the coming year (2022), revenue for the industry is anticipated to decline slightly, but as the economy recovers and COVID-19 cases drop in line with the nationwide vaccination rollout, industry revenue will likely increase.
iii. What are the Future Trends in the Industry
The senior care and group homes industry is changing, and players in the industry are improvising. No doubt, technology, and customized software will change the landscape of the industry going forward.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no niche ideas when it comes to the elderly group home business. This is because elderly care group home is a niche idea in the senior care and group homes industry.
v. Can You Sell a Franchise of your Business in the Future?
Age Gracefully® Elderly Group Home Facility, Inc. has plans to sell franchise in the nearest future and we will target major cities with growing numbers of elderly people in the United States of America.
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance (may not want such facility to be located in their community)
- Liability problems
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Brookdale Senior Living
- Life Care Services
- Holiday Retirement
- Five Star Senior Living
- Sunrise Senior Living
- Erickson Living
- Atria Senior Living
- Senior Lifestyle
- Emerald City Senior Living
- Luxury Assisted Living
- Cloverland Park Senior Living
- Harbour Pointe Senior Living
ii. Is There a Franchise for Group Home?
No, there is no known elderly group home franchise currently.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Group Homes?
Yes, there are county and state regulations or zoning laws for Group Homes. The law in the United States states that before a non-medical home care facility such as an elderly group home 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 elderly group home is expected to have a house manager, night manager, weekend activity coordinator, and 2 or more caregivers depending on the size of the facility.
a. Who is Your Target Audience?
i. Age Range
Our target market is the elderly people from age 65 and above.
ii. Level of Educational
We don’t have any restriction on the level of education of those we will accommodate in our elderly group home.
iii. Income Level
We don’t have any cap on the income level of those we will accommodate in our elderly group home. Besides, most people who are admitted to group homes have no source of income.
There is no restriction when it comes to the ethnicity of the people we will welcome to our elderly group home.
There is no restriction when it comes to the language spoken by the people we will welcome to our group home, but we will prefer people that speak English or Spanish.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our elderly group home.
Age Gracefully® Elderly Group Home, Inc. will not restrict any elderly person from accessing our facility based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch The Attention of Elderly People.
- Tap Into Text Marketing.
- Share Events in Local Groups and Pages.
- Turn Social Media Channels Into a Resource
- Develop Business Directory Profiles
- 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.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral, 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 our housemates.
- Create an efficient content marketing strategy.
- Create a community for our donors and volunteers.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Age Gracefully® Elderly Group Home, Inc. will make sure it covers upkeep, medications, and full rehab package for each elderly person. 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 elderly people to us.
Age Gracefully® Elderly Group Home, 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.
b. Inventory Strategy
The fact that we will need toiletries, medications, beddings, and foodstuffs means that Age Gracefully® Elderly Group Home Facility, 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.
c. Payment Options for Customers
Here are the payment options that Age Gracefully® Elderly Group Home, Inc. will make available to her donors and contributors;
- 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 Age Gracefully® Elderly Group Home, Inc., we offer services, and the nature of services we offer does not accommodate return policy, but we will guarantee our housemates that they will be comfortable if they follow our program.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our housemates and donors, it will help us to first understand their needs, experiences, and pain points.
We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
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 fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at an Elderly Group Home?
- The facility is open for the day
- The facility is cleaned and prepared for the day’s activities
- Housemates are welcomed and prepped for the day
- Housemates are provided with programs that will help them to socialize and bond with other housemates.
- House chores are carried out at different intervals during the day
- Administrative works are done
- The facility is closed for the day and housemates go back to their rooms to get it arranged and then go to bed.
b. Production Process (If Any)
There is no production process when it comes to an elderly group home business.
c. Service Procedure (If Any)
There is no service procedure when it comes to an elderly group home business.
d. The Supply Chain
Age Gracefully® Elderly Group Home Facility, Inc. will rely on social workers, counselors, religious organizations, and government agencies in our city to refer elderly people to us. So also, we have been able to establish business relationships with wholesale suppliers of beddings, toiletries, medications, and foodstuffs et al.
e. Sources of Income
Age Gracefully® Elderly Group Home, Inc. make money from;
- Contributions for partners and donors
- Grants from government agencies and charity organizations
- Community support.
The cost to live in our group home varies and it will range from about $100 to over $2,000 per month.
a. Amount Needed to Start Our Elderly Group Home?
Age Gracefully® Elderly Group Home, Inc. would need an estimate of $450,000 to successfully set up our elderly group home 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 Costs 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 – $200,000.
- 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?
Age Gracefully® Elderly Group Home, Inc. will not build a new facility for our elderly group home; 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 Group Home?
- Cost of stocking up supplies such as medications, toiletries, beddings et al
- Cost of food supplies
- 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 Group Home (President) – $45,000 Per Annum
- House Manager (Administrator) – $36,034 Per Annum
- Nurse’s Aides – $29,660 Per Annum
- Caregivers/Rehab Counselors – $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 an Elderly Group Home
- Raise money from personal savings and sale of personal stocks and properties
- Apply for a loan from your bank/banks
- Apply for business grants and seed funding from, government and donor organizations
- Source for soft loans from family members and friends.
a. How Much Should You Charge for your Service?
At Age Gracefully® Elderly Group Home Inc. it is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donors.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?
Age Gracefully® Elderly Group Home, Inc. will operate as a nonprofit organization.
d. Profit Margin of an Elderly Group Home
Age Gracefully® Elderly Group Home, Inc. is designed not to make profits hence we don’t have a profit margin for our services.
a. How do you intend to grow and expand?
Age Gracefully® Elderly Group Home Facility, 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 organization and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Age Gracefully® Elderly Group Home, Inc. plans to expand to first to Sumter – Florida and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, and Catron – New Mexico.
The reason we intend to expand to these geographic locations is that available statistics show that they have the highest number of elderly people in the United States. According to Pew Research, 115,350 elderly people live in Sumter – Florida and that is about 52.9 percent of the population of the county.
The founder of Age Gracefully® Elderly Group Home 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 organization can be placed under a trusted hand when the founder retires.
The goal of combining two or more charitable organizations that are into senior care is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities).