A residential assisted living business is a type of senior care facility that provides housing and support services for seniors who need assistance with their daily living activities.
Residential assisted living is typically smaller-scale homes, with fewer residents than a nursing home or assisted living facility.
In addition to providing basic care services, residential assisted living facilities may also offer social and recreational activities, transportation services, and other amenities to help seniors maintain their independence and quality of life.
In many cases, residential assisted living facilities are operated by private individuals or companies, rather than by larger healthcare organizations.
As a result, residential assisted living may offer a more flexible and personalized approach to senior care than other types of facilities.
Steps on How to Write a Residential Assisted Living Business Plan
-
Executive Summary
St. Lucas® Assisted Living Facility, LLC is a new Residential Assisted Living business that will be located in Oregon, Florida.
Our facility will offer personalized and high-quality care services to seniors who require assistance with daily living, such as bathing, dressing, medication management, and meal preparation.
We will provide a home-like environment that fosters independence, dignity, and socialization, and we will strive to maintain a high quality of life for our residents.
Our management team has extensive experience in the senior care industry, and we have carefully selected and trained our staff to provide the highest quality of care services.
We have also established relationships with healthcare providers and local organizations to ensure that our residents have access to the healthcare services and amenities they need.
St. Lucas® Assisted Living Facility, LLC is well-positioned to become a leading provider of high-quality and personalized senior care services in the Oregon, Florida area.
We are committed to maintaining the highest standards of care, and we look forward to serving our community’s seniors and their families.
-
Company Profile
a. Our Products and Services
St. Lucas® Assisted Living Facility, LLC will offer the following services;
- Personalized Care Plans
- Health and Wellness Services
- Social and Recreational Activities
- Nutritious Meals and Snacks
- 24-Hour Staff Support
- Transportation Services
- Housekeeping and Maintenance Services.
b. Nature of the Business
Our residential assisted living business will operate with a business-to-consumer.
c. The Industry
St. Lucas® Assisted Living Facility, LLC will operate in the assisted living industry.
d. Mission Statement
Our mission at St. Lucas® Assisted Living Facility, LLC is to provide high-quality and personalized care services to seniors in a home-like environment that fosters independence, dignity, and socialization.
e. Vision Statement
At St. Lucas® Assisted Living Facility, LLC, our vision is to be the leading provider of personalized and homelike senior care services in our community.
f. Our Tagline (Slogan)
St. Lucas® Assisted Living Facility, LLC – Home Away from Home for the Elderly!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
St. Lucas® Assisted Living Facility, LLC will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself.
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
- Cleaners
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Paul Peterson (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Henry Johnson (Board Member) 18 Percent Shares
- Emmanuel Linus (Board Member) 10 Percent Shares
- Jael Martins (Board Member) 10 Percent Shares
- James Cornelius (Board Member and Secretary) 10 Percent Shares.
-
SWOT Analysis
a. Strength
- Experienced management team with expertise in the senior care industry
- High staff-to-resident ratio, allowing for personalized care
- Focus on maintaining a strong sense of community and socialization for residents
- Convenient location in a growing senior population area
- Strong relationships with healthcare providers and local organizations
- Specialized training for staff to provide the highest quality of care services.
b. Weakness
- Limited capacity due to physical space limitations
- Dependence on a small team of staff members, making us vulnerable to staff turnover and potential loss of expertise
- High start-up costs for the facility set-up, equipment, and staffing.
c. Opportunities
- Growing demand for personalized and homelike senior care services
- Potential for partnerships with local hospitals and healthcare providers
- Expansion into related senior care services such as hospice care or memory care.
i. How Big is the Industry?
The Residential Assisted Living industry was worth over $19.3 billion in revenue in 2021, and it is expected to continue to grow at an annual rate of 5.2% through 2026.
ii. Is the Industry Growing or Declining?
The residential assisted living industry has been growing steadily in recent years, as the population of seniors in need of long-term care continues to increase. According to a report by IBISWorld, the residential assisted living industry generated $19.3 billion in revenue in 2021, and it is expected to continue to grow at an annual rate of 5.2% through 2026.
The COVID-19 pandemic has also contributed to increased demand for residential assisted living services, as many seniors and their families have sought out safer and more personalized care options. The pandemic has also highlighted the need for improved infection control measures and staffing levels in residential assisted living facilities.
iii. What are the Future Trends in the Industry
Technology is becoming more prevalent in residential assisted living facilities, and this trend is expected to continue. This includes the use of smart home technology, telehealth services, and electronic health records.
Residential assisted living facilities are moving towards more personalized care plans that take into account each resident’s unique needs and preferences. This includes offering individualized meal plans, medication management, and other services tailored to each resident’s needs.
Residential assisted living facilities are increasingly focused on sustainability and reducing their environmental footprint. This includes incorporating energy-efficient appliances, recycling programs, and other green initiatives.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the residential assisted living business.
v. Can You Sell a Franchise of your Business in the Future?
St. Lucas® Assisted Living Facility, LLC has plans to sell franchises in the nearest future and we will target major cities with thriving factoring services markets in the United States of America and Canada.
d. Threats
- Competition from other assisted living facilities and senior care providers in the area
- Regulatory and compliance changes that may impact operations and increase costs
- Economic downturns or changes in healthcare policies may affect funding for senior care services.
i. Who are the Major Competitors?
- Other residential assisted living facilities that offer similar services and amenities in the same geographic area
- Skilled nursing facilities
- Home healthcare providers
- Continuing care retirement communities (CCRCs)
- Memory care facilities
- Adult daycare centers
- In-home caregivers.
ii. Is There a Franchise for Residential Assisted Living Business?
No, there is no franchise opportunity for a residential assisted living business.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Residential Assisted Living Business?
Yes, there are policies, regulations, and zoning laws affecting residential assisted living businesses in the United States of America. These regulations vary by state and local jurisdiction, but here are some examples of the types of regulations that may apply to residential assisted living facilities:
- Most states require residential assisted living facilities to be licensed, which involves meeting specific standards for staff training, resident care, safety, and sanitation.
- Local zoning laws may restrict the location of residential assisted living facilities, including the type of residential area where they can be located and the number of residents they can accommodate.
- Residential assisted living facilities must comply with building codes that ensure safety and accessibility for residents, including requirements for fire safety, emergency exits, and accessibility features.
- Residential assisted living facilities must comply with state and federal health and safety regulations, including infection control procedures, medication management, and emergency preparedness plans.
- Residential assisted living facilities must meet staffing requirements for the number and qualifications of staff members, including requirements for licensed nurses and certified nursing assistants.
- Residential assisted living facilities must protect the rights of residents, including the right to privacy, dignity, and autonomy.
- Residential assisted living facilities must carry liability insurance and meet other insurance requirements.
-
Marketing Plan
a. Who is your Target Audience?
i. Age Range
Our target market comprises adults above 65 years old.
ii. Level of Educational
We don’t have any restrictions on the level of education of our clients.
iii. Income Level
There is no cap on the income level of those we will welcome to our facility.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people we will welcome to our facility.
v. Language
There is no restriction when it comes to the language spoken by the people we will welcome to our facility.
vi. Geographical Location
Anybody from any geographical location will be welcome to our facility.
vii. Lifestyle
St. Lucas® Assisted Living Facility, LLC will not restrict any client from accessing our facility because of their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Content marketing
- Deliberately Brand Our Facility
- Email marketing
- Events and sponsorships
- Pay-per-click (PPC) advertising
- Referral marketing
- Search engine optimization (SEO).
i. Traditional Marketing Strategies
- Broadcast Marketing -Television & Radio Channels.
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Affiliate Marketing
- Content Marketing.
- Email Marketing.
- Influencer Marketing.
- Mobile Marketing.
- Social Media Marketing Platforms.
- Search Engine Optimization (SEO) Marketing.
iii. Social Media Marketing Plan
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Create profiles on relevant social media channels.
- Gear up our profiles with a diverse content strategy.
- Start using chatbots.
- Run cross-channel campaigns.
- Use brand advocates.
c. Pricing Strategy
St. Lucas® Assisted Living Facility, LLC’s pricing strategy should take into account factors such as the cost of the value of service offering, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:
- Tiered Pricing
- All-Inclusive Pricing
- Ala Carte Pricing
- Move-In Specials
- Long-Term Contracts
- Medicaid and Medicare Programs
- Private Pay.
-
Sales and Distribution Plan
a. Sales Channels
Our sales channels will include both direct and indirect channels and they are:
- Direct sales: This involves the residential assisted living business’s sales team directly reaching out to potential clients, such as small and medium-sized healthcare-related businesses, through email, phone, or in-person meetings.
- Referral sales: This involves leveraging existing clients, business partners, and other industry contacts to refer potential clients to the residential assisted living business.
- Online sales: This involves using digital channels such as the company’s website, social media, and online advertising to generate leads and attract potential clients.
- Broker or agent channels: This involves working with brokers or agents who act as intermediaries between the residential assisted living business and potential clients, referring clients to the company in exchange for a commission.
- Partner channels: This involves working with strategic partners, such as doctors, hospitals, and other healthcare service providers, to offer factoring services to their clients.
- Industry-specific sales channels: This involves targeting specific industries that may have a higher demand for residential assisted living services
- Trade shows and events: This involves participating in industry trade shows and events to generate leads and build relationships with potential clients.
b. Inventory Strategy
Our inventory strategy will involve managing and tracking the availability of essential supplies such as food, medication, medical equipment, and cleaning products. The strategy will also involve setting levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages.
We will also implement software systems to automate inventory management and improve efficiency. Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.
c. Payment Options for Customers
Here are the payment options that St. Lucas® Assisted Living Facility, LLC will make available to her clients;
- Apple Pay and Google Wallet
- Gift cards and store credit
- Credit and debit cards
- PayPal
- Installment payments
- Cash on service delivery.
d. Return Policy, Incentives, and Guarantees
As a residential assisted living services provider, we may not offer a traditional return policy, incentives, or guarantees.
e. Customer Support Strategy
Providing exceptional customer support is crucial for the success of our residential assisted living business. Here are some customer support strategies that we will adopt:
- Provide multiple communication channels for residents and their families
- Offer personalized attention
- Set clear expectations.
- Maintain transparency.
- Offer value-added services.
By implementing these strategies, our residential assisted living business can provide excellent customer support and build long-term relationships with all our clients (residents).
-
Operational Plan
The operational plan for our residential assisted living business is a detailed document that outlines the day-to-day operations of the business, including staff responsibilities, resident care plans, facility maintenance, and financial management.
The plan typically includes specific goals and objectives, as well as strategies for achieving those goals. It will also address risk management, emergency preparedness, and compliance with regulations and policies.
a. What Happens During a Typical Day at a Residential Assisted Living Business?
A typical day at a residential assisted living business involves providing care and support for residents with a variety of needs.
The day may begin with breakfast and medication administration, followed by activities such as exercise classes, social events, and games. Staff members provide assistance with activities of daily living (ADLs) as needed, such as bathing, dressing, and grooming.
Medical care may include regular check-ins with healthcare providers, medication management, and assistance with medical equipment. Meals are typically provided throughout the day, with snacks and beverages available as needed. Residential assisted living businesses may also offer specialized therapies or services, such as physical therapy or salon services.
Staff members are available around the clock to provide care and support for residents, and emergency procedures are in place to ensure the safety and well-being of all residents.
b. Production Process
There is no production process when it comes to residential assisted living businesses.
c. Service Procedure
Not applicable.
d. The Supply Chain
A supply chain is not applicable to a residential assisted living business.
e. Sources of Income
At St. Lucas® Assisted Living Facility, LLC we will make money from resident fees, government programs such as Medicaid or Veterans Affairs, and private pay options such as long-term care insurance or personal funds.
-
Financial Plan
a. Amount Needed to Start your Residential Assisted Living Business?
St. Lucas® Assisted Living Facility, LLC would need an estimate of $350,000 to successfully set up our residential assisted living business in the United States of America. Please note that this amount includes the salaries of all 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 – $1,300.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $150,000.
- 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) – $30,000
- Start-up Inventory – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $35,000
- Website: $600
- Opening party: $4,000
- Miscellaneous: $5,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
St. Lucas® Assisted Living Facility, LLC will not build a new facility for our residential assisted living business; 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 Business?
- Staffing costs (salaries, benefits, and training for caregivers, nurses, and administrative staff)
- Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
- Food and supplies (groceries, medications, medical supplies, personal care items, and cleaning supplies)
- Marketing and advertising
- Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
- Resident care expenses (medical equipment, therapy services, and other specialized care needs)
- Taxes
- Compliance expenses.
e. What is the Average Salary of your Staff?
- 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
- 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 Business?
- 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.
-
Financial Projection
a. How Much Should You Charge for your Product/Service?
St. Lucas® Assisted Living Facility, LLC will charge based on what is obtainable in the United States. Our average monthly cost for a one-bedroom unit is $4,000. Please note that we will offer various pricing options and also accept government programs or private pay options, such as long-term care insurance,.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $520,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $150,000
- Second Fiscal Year (FY2) (Profit After Tax): $200,000
- Third Fiscal Year (FY3) (Profit After Tax): $300,000
d. Profit Margin of a Residential Assisted Living Business Product/Service
The ideal profit margin we hope to make at St. Lucas® Assisted Living Facility, LLC will be between 10 and 20 percent on each job carried out irrespective of the distance covered.
-
Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
St. Lucas® Assisted Living Facility, LLC will grow our residential assisted living business by first opening other offices in key cities in the United States of America within the first five years of establishing the business and then start franchising in the nearest future.
b. Where do you intend to expand to and why?
St. Lucas® Assisted Living Facility, LLC plan to expand to;
- Phoenix, Arizona
- Dallas, Texas
- Atlanta, Georgia
- Denver, Colorado
- Tampa, Florida
- Nashville, Tennessee
- Charlotte, North Carolina
- Portland, Oregon
- Minneapolis, Minnesota
- San Diego, California.
The reason we intend to expand to this geographic location is the fact that available statistics show that the cities listed above have a growing elderly population and a high demand for senior care services, making them potentially attractive markets for residential assisted living businesses.
-
Exit Plan
St. Lucas® Assisted Living Facility, LLC’s founder intends to exit the business through a merger and acquisition. We want to merge with a global residential assisted living company so that the company’s management can be placed in trusted hands when the founder retires.
The goal of combining two or more international residential assisted living businesses on a global scale is to achieve synergy, in which 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 trustees.