Group homes for adults with disabilities are designed to provide personalized and individualized care that promotes independence for such adults. Many people with disabilities choose to live in supportive group homes with several other people with special needs. Depending on the program, these homes can be staffed with counselors and other workers who help the residents live on their own, and in some cases, the residents live without live-in assistance.

Group homes come in many varieties and can be paid for in many ways, including private payments or grants. Available statistics show that there are now about 7,629 group homes (group homes for adults with disabilities inclusive) in the United States in 2023, an increase of 1 percent from 2020.

The data also shows that California has 754 group homes (group homes for adults with disabilities inclusive), Florida has 296 group homes and New York has 284 group homes. These are the States with the greatest number of group homes in the United States of America.

Steps to Start a Group Home for Adults With Disabilities in 2023

1. Conduct Market Research

If you intend to start a group home for adults with disabilities, then you must make sure you conduct thorough market research. Your aim of conducting market research for your group home is to get an in-depth analysis of the industry, generate new questions, concepts, and understand the market space better. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry.

a. Who is the Target Market for Group Home for Adults With Disabilities?

The target market for a group home for adults with disabilities are adults who are suffering from;

  • Cerebral palsy
  • Down syndrome
  • Epilepsy
  • Spina bifida
  • Traumatic brain injury
  • Visual impairments
  • Mental/psychiatric challenges
b. Is Group Home for Adults With Disabilities a Profitable Business?

Yes, Group home for adults with disabilities is a profitable business and statistics show that the market size of the group home was $9.9 billion in 2023.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to group homes for adults with disabilities because this line of business is a niche idea in the group homes industry.

d. Who are the Major Competitors?
  • CHAI Dallas
  • Griswold Home Care
  • Right at Home
  • New England Village
  • HCS
  • Oak Hill Homepage
  • Camp Bloomfield.
e. Are There County or State Regulations or Zoning Laws for Group Home for Adults With Disabilities?

Yes, and zoning laws require group homes for adults with disabilities to follow specific rules and regulations, including some that apply only to group homes. Please note that in many communities, zoning laws require group homes for adults with disabilities to apply for a permit from the city.

This application process allows the city’s zoning department to determine whether the group home meets the zoning rules of the community. Permits also ensure that all group homes are properly licensed with the county or state agencies.

f. Is There a Franchise for Group Home for Adults with Disabilities?

Yes, there are franchise opportunities for a group home for adults with disabilities. Here are some of them;

  • Griswold Home Care
  • Right at Home.
g. What Do You Need to Start a Group Home for Adults with Disabilities?
  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • Employees
  • Startup and Working Capital
  1. Memorable Business Name ideas for Group Home for Adults With Disabilities 

  • More Care® Group Home For Adults With Disabilities, LLC
  • Edna Cole® Group Home For Adults With Disabilities, LLC
  • Able Care™ Group Home For Adults With Disabilities, Inc.
  • Blessed Hands™ Group Home For Adults With Disabilities, LLC
  • All Care® Group Home For Adults With Disabilities, Inc.
  • Pro Care® Group Home For Adults With Disabilities, LLC
  • Destiny Helpers® Group Home For Adults With Disabilities, LLC
  • Becky Zion® Group Home For Adults With Disabilities, Inc.
  • Comfort Care® Group Home For Adults With Disabilities, Inc.
  • Synergy Care® Group Home For Adults With Disabilities, LLC
  • Louisa Mendez® Group Home For Adults With Disabilities, LLC
  • Axel Care™ Group Home For Adults With Disabilities, Inc.
  • Golden Care™ Group Home For Adults With Disabilities Inc.
  • Inner City® Group Home For Adults With Disabilities, LLC
  • Covenant Care® Group Home For Adults With Disabilities, Inc.
  • Universal Care® Group Home For Adults With Disabilities, Inc.
  • Landers Smith© Group Home For Adults With Disabilities, Inc.
  • Ready Care™ Group Home For Adults With Disabilities, LLC
  • Rose® Group Home For Adults With Disabilities, Inc.
  • Green Tree® Group Home For Adults With Disabilities, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Group Home for Adults with Disabilities?

Even though there are several options when it comes to the business structure for a group home for adults with disabilities, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open a Group Home for Adults with Disabilities?
  • General Business License
  • Care Giver or County Worker License
  • Health and Safety Permit
  • Zonal Permits
  • Director’s License
d. What Type of Certification is Needed to Open a Group Home for Adults with Disabilities?

You don’t need any certification to open a group home for adults with disabilities.

e. What Documents are Needed to Open a Group Home for Adults with Disabilities?

These are some of the basic legal documents you need to legally open a group home for adults with disabilities in the United States of America;

  • DBA
  • EIN
  • Business and Liability Insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (for your office)
  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLC
  • Insurance Policy
  • Online Privacy Policy Document (basically for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting a group home for adults with disabilities, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Group Home for Adults with Disabilities?

When it comes to starting a group home for adults with disabilities, startup costs can range from $150,000 (if you are opting for a franchise) to over $500,000.

b. What are the Cost Involved in Starting a Group Home for Adults with Disabilities?
  • Business Registration Fees – $750.
  • Legal expenses for obtaining licenses and permits – $7,300.
  • Marketing, Branding and Promotions – $3,000.
  • Business Consultant Fee – $2,500.
  • Insurance – $2,400.
  • Rent/Lease – $50,000.
  • Other start-up expenses including, satellite TV subscriptions, stationery ($500), phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $30,000
  • Start-up inventory – $5,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $10,000
  • Website: $600
  • Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Group Home for Adults with Disabilities?
  • The location you intend covering
  • The required licenses and permits
  • The type of office facility
  • Additional service offerings
  • The cost of hiring and paying a business consultant and attorney
  • The cost for branding, promotion, and marketing the group home
  • The cost for furnishing and equipping the group home
  • The cost of insurance policy covers
  • The cost of registering the business
  • Sourcing of your supplies and ongoing expenses
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

You don’t need to build a facility for your group home because you can rent a decent facility to get the business started.

e. What are the Ongoing Expenses of a Group Home for Adults with Disabilities?
  • Cost of stocking up supplies such as medications, toiletries, beddings et al
  • Cost of food supplies and ingredients
  • Utility bills (gas, internet, phone bills, signage and sewage et al)
  • Salaries of employees
f. What is the Average Salary of your Staff?
  • Head of Group home for adults with disabilities (President) – $45,000 Per Annum
  • Administrator – $36,034 Per Annum
  • Home Caregivers/County Aging Workers – $32,878 Per Annum
  • Account Officer – $35,000 Per Annum
  • Front Desk Officer – $28,000 Per Annum
  • Cleaners – $22,000 Per Annum
g. How Do You Get Funding to Start a Group Home for Adults with Disabilities?
  • Raise money from personal savings and sale of personal stocks and properties
  • Raise money from investors and business partners
  • Sell shares to interested investors
  • Apply for a loan from your bank/banks
  • Applying for business grants and seed funding from the government and donor organizations
  • Source for soft loans from family members and friends.
  1. Write a Business Plan

a. Executive Summary

Axel Care™ Group Home for Adults with Disabilities, Inc. is a registered home for adults with disabilities that will be based in Dallas, Texas, USA. Our Group home will focus on providing companionship, giving adults the social support they need to live an active, enriching lifestyle. Our Group home for adults with disabilities will also focus on providing help with routine activities of daily living, like sitting, standing, or moving around.

b. Our Service
  • Care-planning services
  • Using the bathroom and bathing.
  • Dressing and grooming.
  • Walking, sitting, standing, and transferring in and out of bed.
  • Shopping, preparing, and serving nutritious meals.
  • Laundry
  • Light housekeeping
  • Providing driving services to help run errands, attend appointments, or enjoy social outings
  • Companionship — including playing games, sharing meals, doing art projects, and enjoying pleasant conversation
  • Social activities.
c. Mission Statement

Our mission is to build a highly successful group home for adults with disabilities that provides dependable and convenient accommodation, and multiple opportunities for ongoing family interaction for adults with disabilities.

Vision Statement

Our vision is to better the lives of individuals and families with unique developmental needs by guiding and supporting them every step of the way.

d. Goals and Objectives

The goals and objective for a group home for adults with disabilities are for them to learn from others with different abilities as they interact regularly. For these reasons, group homes offer a variety of activities for adult residents.

e. Organizational Structure
  • Head of Group home for adults with disabilities (President)
  • Administrator
  • Home Caregivers/County Aging Workers Fundraiser
  • Account Officer
  • Front Desk Officer
  • Cleaners
  • Security Guards

Marketing Plan

a. SWOT Analysis
Strength:

The strength of a group home for adults with disabilities lies in the fact that they have a team of qualified professionals manning various job positions in the organization. So also, the location, the business model they will be operating on, and their excellent customer service culture will count as a strong strength for the group home.

Weakness:

The group home for adults with disabilities is a new business that is owned by an individual (family), and they may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility.

Opportunities:

The opportunities that are available to a group home for adults with disabilities are unlimited because we have loads of adults with disabilities who need the care of Group homes in the United States.

Threat:

Just like any other business, one of the major threats that you are likely going to face is an economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront a group home for adults with disabilities is the arrival of a bigger/well-established group home for adults with disabilities in the same location where your facility is located.

b. How Does Group Home for Adults with Disabilities Make Money?

A group home for adults with disabilities makes money by charging their clients for services rendered or via grants and donations from donor agencies and individuals.

c. Payment Options
  • 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. Sales & Advertising Strategies
  • Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
  • Sponsor relevant community-based events/programs for the elderly
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your group home for adults with disabilities
  • Install your Bill Boards in strategic locations all around your city or state
  • Distribute your fliers and handbills in target areas
  • Contact households, businesses, and every adult in the neighborhood where your group home will be located informing them of your business and the services you render
  • List your group home for adults with disabilities in local directories / yellow pages
  • Advertise your Group home for adults with disabilities on your official website and employ strategies that will help you pull traffic to the site.
  • Position your Flexi Banners at strategic positions in the location where your Group home for adults with disabilities is located.
  • Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo et al.

Financial Projection

a. How Much Should You Charge for your Service?

Our average service cost will be between $35,000-$65,000 annually; this covers the entire cost of the individual living in the facility, including food, utilities, and the payment to the caregivers who help the residence daily.

b. How Much Profit Do Group Home for Adults with Disabilities Make a Year?

It depends, but available reports show that owners of a group home for adults with disabilities profit an average of $54,000 per year.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the group home (number of clients they are servicing per time)
  • The location the group home is covering
  • The management style of the group home for adults with disabilities
  • The business approach and model of the group home
  • The advertising and marketing strategies adopted by the group home
  • The number of years the group home is in business
d. What is the Profit Margin of a Group Home for Adults with Disabilities?

The profit margin of a group home for adults with disabilities is not fixed. To a large extent, after subtracting your overhead, you could make close to 20 percent as profit.

e. What is the Sales Forecast?

Below is the sales forecast for a group home for adults with disabilities. It is based on the location of the business and other factors as it relates to such startups in the United States;

  • First Fiscal Year: $340,000
  • Second Fiscal Year:  $450,000
  • Third Fiscal Year: $580,000
  1. Set Up your Office

a. How Do You Choose a Perfect Location for Group Home for Adults with Disabilities?
  • The demography of the location especially as it relates to the population of adults with disabilities
  • The demand for group homes for adults with disabilities in the location
  • The purchasing power of residents of the location
  • Accessibility of the location
  • The number of group homes for adults with disabilities and other facilities like senior care, and nursing homes in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What State and City are Best to Open a Group Home for Adults with Disabilities?
  • Las Vegas, Nevada
  • Los Angeles, California
  • Chicago, Illinois
  • Boston, Massachusetts
  • Silver Spring, Maryland
  • Rowland Heights, California
  • Portland, Oregon
  • New York City, New York
  • Atlanta, Georgia
  • Dallas, Texas
c. What Equipment is Needed to Operate a Group Home for Adults with Disabilities?

When starting opening a Group home for adults with disabilities, you will not need any technical gadgets except office and nursing equipment, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, an emergency plan, among others.

In setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, and scanner. This equipment, tools, and instruments can be purchased as fairly used especially if you have limited finance to meet your budget.

  1. Hire Employees

As regards the number of employees you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard group home for adults with disabilities on a large scale, you would need the services of the following professionals; the head of business (you can occupy this position), administrator, caregivers, front desk officer, cleaners, and security guard.

  1. Launch the Business Proper

You can decide to start your group home for adults with liabilities by organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the group home for adults with disabilities, you will be able to officially inform people in your city that your group home is open for business.

a. What Makes a Group Home for Adults with Disabilities Successful?
  • Ability to attract clients regularly
  • Disciplined and dedicated workforce
  • The heart to serve and care for people with disabilities
  • A good relationship with stakeholders
  • Good care techniques and programs.
b. What Happens During a Typical Day at a Group Home for Adults with Disabilities?
  • The group home for adults with disabilities is open for the day
  • Caregivers are briefed in the office (in some cases though)
  • Caregivers provide all the needed support and care to adults with disabilities
  • Marketing/website upkeep
  • Administrative duties are carried out
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Group Home for Adults with Disabilities?
  • Good managerial and human development skills.
  • An interest in helping and caring for other people, regardless of their condition.
  • The ability to communicate clearly and sensitively when talking to people and their families.
  • Good listening skills.
  • Great problem-solving skills and the ability to adapt and act accordingly.
  • Organizational skills.
  • Experience working as a caregiver or social worker
  • Experience working for a group home for adults with disabilities.
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