Residential Care Facility Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Residential Care Facility Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Residential Care Facility business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Residential care facilities are often developed as alternatives to traditional nursing homes as well as assisted living facilities. These entities allow individuals that are either elderly or have disabilities to live a very normal life all being able to have access to medical professionals and assistance from time to time. The revenues generated by a residential care facility are completely immune from negative changes in the economy. This is due to the fact that people are to continue to grow old, have disabilities, and require ongoing care and assistance as they progress to their lives. As such, the access to capital for a new residential care facility is substantial.
Almost all financial institutions as well as investors and lenders are willing to provide a significant amount of capital support for the development of these types of businesses. The startup cost associated with the new residential care facility typically ranges anywhere from $1 million-$20 million depending on the number of units that will be developed in conjunction with the businesses operations. The revenues generated from these companies typically comes not only from clients themselves but also from private insurers and publicly funded health systems when applicable. The gross margins from revenues typically range anywhere from 80% to 90% depending what is considered part of the cost of goods sold.
A residential care facility business plan is almost always developed especially if the individual is going to be seeking capital to launch a type of business. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. As it relates to the industry research, there are approximately 200,000 companies that own or operate one or more residential care facilities. Each year these companies generate about $150 billion in revenue and provide jobs to one million people. Most importantly, a thorough demographic analysis should be developed in order to ensure that there are enough people within the target market to have 100% occupancy within the facility. This includes taking a look at population size, population density, annual household income, percentage of people over the age of 65, and the percentage of people that have disabilities. A competitive analysis should also be included so that there can be a complete understanding of what capacity the market is in regards to not being oversaturated with residential care facilities.
A residential care facility SWOT analysis should be developed as well. As it relates to strengths, residential care facilities are always able to generate substantial revenues from rentals as well as ancillary services rendered to residents. The startup costs are high and the barriers to entry are high. These businesses are profitable at all times.
For weaknesses, these businesses do have very high operating expenses given the large-scale facility is often needed. Additionally, there are a number of people that are on staff that can assist residents with their day-to-day living. However, these risks are ameliorated by the high-margin revenue services.
For opportunities, these businesses can readily expand by simply establishing new locations. Additionally, some residential care facilities take to hiring medical professionals can provide care on-site. This can be a substantial secondary revenue stream for the owner of a residential care facility.
For threats, the biggest challenge faced by these businesses revolves around the fact that there can be reductions in reimbursements from insurance companies as well as publicly funded health systems. However, there is always going to be a demand for independent living facilities.
A residential care facility marketing plan also needs to be developed. Foremost, many of these facilities will often maintain ongoing referral relationships with assisted-living facilities, nursing homes, as well as organizations that cater to the needs of elderly people and those with disabilities. By having these referrals in place, the residential care facility can quickly reach near 100% occupancy. Many entrepreneurs and start these types of businesses will also have referrals from physicians in place so that when the time comes appropriate referrals can be made when a patient needs independent living.
A presence on the Internet is warranted for these types of businesses as well in most residential care facilities do maintain a proprietary website that showcases the operations, monthly cost of service, amenities included, and any other piece of applicable information specific for residential care facility. This website should be listed among all major search engines. In some cases, an entrepreneur will also develop a social media presence for residential care facility. However, this can be done so on the lighter side given that referrals from third-party professionals and physicians are typically the way that these businesses generate their initial customer base.
The demand for residential care is going continue to remain strong as most people do not want to live any full-scale assisted-living facility or nursing home. As such, this demand will ensure that these businesses are able to generate revenues not only from services rendered but also from a capital appreciation standpoint as it relates to the real estate that has been acquired in conjunction with this business. There is nothing about this industry that is expected to change over the next 20 years.