A transitional housing facility is a temporary housing for certain segments of the homeless population, including working homeless people who are earning too little money to afford long-term housing. Transitional housing is set up to transition residents into permanent housing.

It is not in an emergency homeless shelter, but usually in a room or apartment in a residence with support services. The transitional time can be short, for example, one or two years, and in that time the person must file for and get permanent housing and usually some gainful employment or income, even if Social Security or assistance.

Sometimes, the transitional housing residence program charges a room and board fee, maybe 30 percent of an individual’s income, which is sometimes partially or fully refunded after the person procures a permanent place to live in. In the USA, federal funding for transitional housing programs was originally allocated in the McKinney–Vento Homeless Assistance Act of 1986.

Steps on How to Write a Transitional Housing Business Plan

  1. Executive Summary

Royal Court® Transitional Housing Facility, Inc. is a transitional housing facility that will be based in Santa Clara County, California and the organization will be committed to providing a variety of community housing services, including short-term emergency shelter for victims of domestic violence, sexual assault or child abuse; temporary residential shelter for the homeless, runaway youths and parents and families caught in medical crises.

Peter Gerald is the founder and CEO of Royal Court® Transitional Housing Facility, Inc.

  1. Company Profile

a. Our Products and Services

Royal Court® Transitional Housing Facility, Inc. will offer the following services;

  • Short-term emergency shelter for victims of domestic violence, sexual assault, or child abuse
  • Temporary residential shelter for homeless, runaway youths, and families caught in medical crises
  • Transitional and assisted housing for low-income individuals and families
  • Volunteer construction or repair of low-cost housing
  • Repair of homes for elderly or disabled homeowners
b. Nature of the Business

Our transitional housing facility will operate as a nonprofit organization, we will source finance from donor organizations, individuals, relevant government agencies et al. But in some cases, we will charge residents or their families for the services rendered.

c. The Industry

Royal Court® Transitional Housing Facility, Inc. will operate under the Community Housing & Homeless Shelters Industry.

d. Mission Statement

Our mission is to provide safe and secure facilities and services geared towards helping a certain segment of the homeless population, including working homeless people who are earning too little money to afford long-term housing. We are set up to transition residents into permanent, transitional housing.

e. Vision Statement

Our vision is to become the best transitional housing facility in Chicago. Royal Court® Transitional Housing Facility, Inc. will continue to set the standard for players in the Community Housing & Homeless Shelters Industry in the United States of America.

f. Our Tagline (Slogan)

Royal Court® Transitional Housing Facility, Inc. – We have You Covered When You Don’t Have a Shelter!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Royal Court® Transitional Housing Facility, Inc. will be formed as a nonprofit corporation at the state level and we will apply for a 501(c)(3) tax exemption at the federal level.

h. Our Organizational Structure
  • Head of Transitional Housing (President)
  • Transitional House Manager (Administrator)
  • Facility Manager
  • Fundraiser
  • Account Officer
  • Front Desk Officer
  • Cleaners
  • Security Guards
i. Ownership/Shareholder Structure and Board Members
  • Peter Gerald (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
  • Denis Jones (Board Member) 19 Percent Shares
  • Napoleon Mills (Board Member) 10 Percent Shares
  • Sandra Joshua (Board Member) 10 Percent Shares
  • Clarissa Wise (Board Member and Sectary) 10 Percent Shares.
  1. SWOT Analysis

a. Strength
  • Ideal Location for the transitional housing facility
  • Highly Experienced and Qualified Employees and Management
  • Access to Pool of Donor Organizations
  • Highly Secured and Clean Facility
  • Easy Access to partnerships with construction companies and key stakeholders.
b. Weakness
  • Budget Limitations
  • 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.
c. Opportunities
  • Santa Clara County California has a lot of homeless population, including working homeless people who are earning too little money to afford long-term housing.
  • A pool of finance from donor organizations, individuals, and relevant government agencies et al.
i. How Big is the Industry?

The Community Housing & Homeless Shelters industry in the United States is the 27th ranked Healthcare and Social Assistance industry by market size and the 436th largest in the United States.

Please note that there are about 12,323 registered and licensed community housing and homeless shelter companies scattered all across the United States responsible for directly employing about 132,874 people and the industry rakes in a whooping sum of $12 billion annually.

ii. Is the Industry Growing or Declining?

Available statistics point to the fact that the industry is presently not growing and earnings in the industry significantly decreased in 2020, directly resulting from the COVID-19 pandemic. However, profit will likely begin to rebound in the coming years after the decline of the pandemic.

iii. What are the Future Trends in the Industry

The Community Housing & Homeless Shelters Industry is changing, and players in the industry are improvising. No doubt, smart facilities, technology, and social media will change the landscape of the Community Housing & Homeless Shelters Industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

Yes, there are niche ideas in the Community Housing & Homeless Shelters Industry. Here are some of them;

  • Transitional housing facilities for everyone
  • Transitional housing facility for veterans.
v. Can You Sell a Franchise of your Business in the Future?

Royal Court® Transitional Housing Facility, Inc. has plans to sell franchises in the nearest future and we will target major cities with high homeless rates in the United States of America.

c. Threats
  • Increase number of well-paid citizens and improvement in the economy
  • 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?
  • Re-Entry inc.
  • Hope Help Healing
  • Isaiah’s Recovery Services
  • Human Potential Consultants, LLC
  • Crossroads, Inc.
  • Seventh Step Foundation
  • Victory Outreach
  • Holy Spirit Investments
  • Union Rescue Mission
  • A New Way of Life Re-Entry Project
  • The Francisco Homes
  • Women In Transition Re-Entry Project Inc.
  • Love Lifted Me Recovery
  • Homeless Veteran’s Emergency Housing Facility
  • Shirley Lamarr/The Centre
  • Restoration House
  • Men’s Overcomers Discipleship Ministry
  • Delancey St.
  • Catholic Rainbow Outreach
  • Recovery Zone.
ii. Is There a Franchise for Transitional Housing? If YES, List at least 20 of them and their cost

No, there are no franchise opportunities for the transitional housing business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Transitional Housings in the United States?

Yes, there are county or state regulations or zoning laws for transitional Housing. The law gives municipalities broad discretion in zoning, and zoning can restrict the location of transitional housing, particularly programs that operate group quarters. On the other hand, zoning law is less relevant to programs that house the homeless in apartments.

In addition, state law limits the ability of municipalities to restrict the location of certain group homes for the mentally ill, and federal law requires local governments to make reasonable accommodations for people with disabilities in their zoning laws.

Please note that zoning is less relevant for other types of transitional housing. Most zoning regulations will allow two or three unrelated individuals to share housing, including apartment buildings owned by social service agencies, in residentially-zoned areas.

  1. Marketing Plan

a. Who is your target audience?

i. Age range

Our target market falls from 18 to 55 years

ii. Level of Educational

We don’t have any restrictions on the level of education of those we are ready to accommodate in our transitional housing facility.

iii. Income Level

We don’t have any cap on the income level of those we are looking to accommodate in our transitional Housing. Besides, most people who are admitted to transitional housing facilities have very little or no source of income.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we are looking forward to accommodating in our transitional housing facility.

v. Language

There is no restriction when it comes to the language spoken by the people we are looking forward to accommodating in our transitional housing facility.

vi. Geographical Location

Anybody from any geographical location will be accommodated in our transitional housing facility.

vii. Lifestyle

Royal Court® Transitional Housing Facility, Inc. will not restrict any inmate from accessing our transitional housing facility based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies
  • Host Themed Events That Catch Attention.
  • Tap Into Text Marketing.
  • Use FOMO to Run Photo Promotions.
  • Share Your Events in Local Groups and Pages.
  • Turn Your Social Media Channels Into a Resource
  • Develop Your 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 (coupon books, billboards), and referral (also known as word-of-mouth marketing).
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 customers.
  • Create an efficient content marketing strategy.
  • Create a community for our audience.
  • 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, Royal Court® Transitional Housing Facility, Inc. will make sure it covers upkeep, premium, economy or value, and full package for each resident. All our pricing strategies will reflect;

  • Cost-Based Pricing
  • Value-Based Pricing
  • Competition-Based Pricing.
  1. 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 charities to help refer homeless people to us.

Royal Court® Transitional Housing Facility, Inc. will also leverage the 4 Ps of marketing which are 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, and foodstuffs per time mean that Royal Court® Transitional Housing Facility, Inc. will operate an inventory strategy that is based on a day-to-day methodology 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.

Royal Court® Transitional Housing Facility, 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 Royal Court® Transitional Housing Facility, Inc. will make available to her clients and donors;

  • 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 Royal Court® Transitional Housing Facility, Inc., we offer services, and the nature of services we offer does not accommodate return policy, but we guarantee to carry out exceptional services.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our patrons. We will work with an effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

  1. Operational Plan

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 a Transitional Housing Facility?
  • The facility is open for the day
  • The facility is cleaned and prepared for the day’s activities
  • Services are carried out
  • The facility is closed for the day
b. Production Process

There is no production process when it comes to Transitional Housing.

c. Service Procedure

The service procedure of a Transitional Housing facility starts with screening and proper documentation of residents. Once that is done, the residents are taken through different rehabilitation and reintegration programs. The task is assigned and monitored.

Transitional housing is temporary housing for certain segments of the homeless population, including working homeless people who are earning too little money to afford long-term housing. Transitional housing is set up to transition residents into permanent, transitional housing.

d. The Supply Chain

Royal Court® Transitional Housing Facility, Inc. will rely on charities, religious organizations, and government agencies in our city to refer homeless people to us.

e. Sources of Income

Royal Court® Transitional Housing Facility, Inc. will make money from;

  • Fees paid by residents
  • Contributions from our partners and donors
  • Grants from government agencies and charity organizations
  • Community support.

The cost to live in our transitional Housing varies and it will range from about $450 to over $750 per month.

  1. Financial Plan

a. Amount Needed to Start your Transitional Housing?

Royal Court® Transitional Housing Facility, Inc. would need an estimate of $1.6 million to successfully set up our transitional housing facility in the United States of America. Please note that this amount includes the salaries of our 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 – $5500,000.
  • Other start-up expenses include 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 – $280,000
  • Website: $600
  • Opening party: $3,000
  • Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?

Royal Court® Transitional Housing Facility, Inc. will not build a new facility for our transitional housing; 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 Transitional Housing?
  • Cost of stocking up supplies such as toiletries and beddings et al
  • Facility remodeling
  • Utility bills (gas, internet, phone bills, signage and sewage et al)
  • Salaries of employees
e. What is the Average Salary of your Staff?
  • Head of Transitional Housing (President) – $45,000 Per Annum
  • Transitional House Manager (Administrator) – $36,034 Per Annum
  • Facility Manager – $29,660 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 Transitional Housing?
  • 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 the government, donor organizations, and angel investors
  • Source for soft loans from your family members and friends.
  1. Financial Projection

a. How Much Should You Charge for your Service?

At Royal Court® Transitional Housing Facility, Inc. our rental fee will be between $450 and $750 per month, depending on the type of room. But it is important to note that we will make our facility free of charge especially when we can attract enough grants and funds from donors.

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?

Royal Court® Transitional Housing Facility, Inc. will operate as a nonprofit organization.

d. Profit Margin of a Transitional Housing Product/Service

Royal Court® Transitional Housing Facility, Inc. is designed not to make profits hence we don’t have a profit margin for our services.

  1. Growth Plan

a. How do you intend to grow and expand? 

Royal Court® Transitional Housing Facility, Inc. will grow our Transitional Housing by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why?

Royal Court® Transitional Housing Facility, Inc. plans to expand to;

  • New York City, New York
  • Los Angeles, California
  • San Jose California
  • Santa Clara County, California
  • San Diego California
  • San Franisco, California
  • King County, Washington
  • Seatle, Washington
  • Tacoma, Seatle
  • Chicago, Illinois.

The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have the highest number of homeless people in the United States. California has over 161,548 homeless people.

  1. Exit Plan

The founder of Royal Court® Transitional Housing Facility, 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.

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