Group Home Business Plan [Sample Template]

Are you about starting a group home for elderly people? If YES, here is a complete sample group home business plan template & feasibility study you can use for FREE.

If you have a passion for taking care of those who can’t take care of themselves, then you may want to consider starting a group home business.

This is one trade that is humanitarian based, but yet can put good food on the table. This is also a thriving industry because every day more and more people get incapacitated one way or the other.

Starting this business will to a large extent require that you do all the research that is required to be done. This is so that you are armed with ample information as you set out in the trade.

Also, you will need to write a business plan. Business plans are like road maps, that tell where a business is headed for, based on projections.

A Sample Group Home Business Plan Template

1. Industry Overview

When it comes to caring for people who can’t take care of themselves, there are several options and one of them is to take them to group homes.

In general, a group home is a private residence for the elderly, children or young people who cannot live with their families due to obvious reasons, or people with chronic disabilities who may be adults or seniors and can’t take proper care of themselves if left to live alone.

Basically, the term group home referred to homes from 8 to 16 individuals, which was a state-mandated size during deinstitutionalization.

Before a group home can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day. So also a standard group home is expected to have a house manager, night manager, weekend activity coordinator, and 4 part-time skill teachers were reported.

It is important to state that residents of group homes usually have one form of disability or the other. It could be autism, intellectual disability, chronic or long-term mental/psychiatric disorder, or physical or even multiple disabilities.

Some group homes were funded as transitional homes to prepare for independent living (in an apartment or return to family or marriage and employment), and others were viewed as permanent community homes. Society may prevent people with significant needs from living in local communities with social acceptance key to community development.

The residents of group homes sometimes need continual or supported assistance in order for them to be able to complete daily basic and simple tasks, such as:

Taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.

Going by the data published by the US Census Bureau, the regions that account for the largest share of establishments in the industry are the Southeast (23.9% of total establishments), Great Lakes (17.3%), West (12.9%) and Mid-Atlantic (12.7%) regions.

This data basically reflects the age distribution in the united states. So also the data shows that employment in this industry is also concentrated in the Southeast, the Mid-Atlantic and the Great Lakes regions. The largest states in terms of employment are New York, California, Texas, Ohio and Florida.

The Nursing Care Facility industry of which group home is a subset of is indeed a very large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 24,115 licensed and registered Nursing Home Facilities responsible for employing about 1,775,943 employees and the industry rakes in a whopping sum of $132bn annually with an annual growth rate projected at 2.3% percent. It is important to state that there is no company with dominant market share in this industry.

Over and above, the Nursing Care Facility / Group Home line of businesses in developed countries are still enjoying good patronage particularly if they are well positioned and if they know how to reach out to their target market; the aging population and those who with disabilities.

2. Executive Summary

Grace & Mercy Group Home, LLC is a standard and licensed group home facility that will be located in the heart of Saint Augustine – Florida in a neatly renovated and secured housing facility.

Our group home is specifically designed and equipped with the needed accommodation facilities / gadgets to give comfort and security to all our residence irrespective of the religious affiliations, their race, and health condition. We are set to take care of people with one form of disability or the other whether old or young.

Grace & Mercy Group Home, LLC is a family owned and managed business that believe in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the hospitality industry by establishing our own assisted living facility business.

We are certain that our values will help us drive the business to enviable heights and also help us attract the numbers of clients that will make our facility fully occupied year in year out.

We are going to be a health conscious and customer-centric group home business with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be enables to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners (vendors), and all our employees as well.

Our accommodation facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Grace & Mercy Group Home, LLC will provide a conducive home for our residence.

We will engage in services that will help our residence complete daily basic and simple tasks, such as taking medication or bathing, making dinners, having conversations, making appointments, and getting to work or a day service, budget their personal allowance, select photos for their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.

Grace & Mercy Group Home, LLC will be equipped with everything that will make life comfortable for the disabled and elderly.

We will as build a fitness room and library et al. We will also install a free Wi-Fi that will enable our residence and guests surf the internet with their laptop in the room free of charge, and there will be wireless access in all the public area within the lodging facility.

Grace & Mercy Group Home, LLC is a family business that is owned and managed by Mrs. Grace Smith and her family. Mrs. Grace Smith is a licensed Group Home Administrator, nurse and social health worker with well over 25 years of experience working for leading brand in the industry.

She has a Master’s Degree in Public Health and she is truly passionate when it comes to taking care of people with disabilities.

3. Our Products and Services

Grace & Mercy Group Home, LLC is set to operate a standard Group Home service in Saint Augustine – Florida. The fact that we want to become a force to reckon with in the Nursing Care Facility industry means that we will provide our resident a conducive and highly secured accommodation.

In all that we do, we will ensure that our customers are satisfied and are willing to recommend our facility to their family members and friends. We are in the group home business to deliver excellent services and to make profits and we are willing to go the extra mile within the law of the United States to achieve our business goals, aims and objectives.

Grace & Mercy Group Home, LLC will provide a conducive home for our residence; we will engage in services that will help our residence complete daily basic and simple tasks, such as:

4. Our Mission and Vision Statement

Our vision is to become the number one choice when it comes to group home service delivery in the whole of Florida and also to be amongst the top 20 group home service provider in the United States of America within the next 10 years.
Grace & Mercy Group Home, LLC is in business to establish a first class group home facility service that will take care of both the elderly and young disable as long as they can afford our services. We want to become one of the leaders in nursing care facility industry in Florida, and in The United States of America.

Our Business Structure

Grace & Mercy Group Home, LLC is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (nurses, nurse’s aides, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers and home caregivers) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the nursing care facility industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our business brand to be well accepted in Florida and the whole of the United States.

When hiring, we will look out for applicants that are not just qualified and experienced, but homely, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Grace & Mercy Group Home, LLC;

Chief Executive Officer
Medication Management Counselors
Assisted Living Administrator (Human Resources and Admin Manager)
Nurse’s Aides
Home Health Caregivers / Home Caregivers /County Aging Workers
Sales and Marketing Executive
Accounting Officer
Cleaners

5. Job Roles and Responsibilities

Chief Executive Officer:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Reports to the board.

Group Home Administrator (Admin and HR Manager)

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Designs job descriptions with KPI to drive performance management for clients
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
Oversees the smooth running of the daily home activities.

Medication Management Counselors

Responsible for providing professional medical services to our residence
Responsible for ensuring that disable and elderly people under our care takes their medication as at when due
Responsible for handling medical emergencies

Nurses / Nurse’s Aides / Mental Health Counselors

Responsible for managing our patients in their various houses
Handles personal injury case management
Responsible for offering home medication management services

Marketing and Sales Executive

Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding increase sales
Documents all customer contact and information
Represents Grace & Mercy Group Home, LLC in strategic meetings
Helps to increase sales and growth for Grace & Mercy Group Home, LLC.

Accountant / Cashier

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for the organization
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for Grace & Mercy Group Home, LLC
Serves as internal auditor for Grace & Mercy Group Home, LLC.

Cleaners:

Responsible for cleaning the facility at all times
Ensures that toiletries and supplies don’t run out of stock
Assists our residence when they need to take their bath and carry out other household tasks
Cleans both the interior and exterior of the facility
Handles any other duty as assigned by the facility manager

6. SWOT Analysis

Grace & Mercy Group Home, LLC is set to become one of the leading group home facility in Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business. We want our group home business to be the number one choice of all residence of Saint Augustine and other cities in Florida.

We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.

Even though our Chief Executive Officer (owner) has a robust experience in social work and taking care of people with disability and the aging population, we still went ahead to hire the services of business consultants who are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the assisted living facility industry.

This is the summary of the SWOT analysis that was conducted for Grace & Mercy Group Home, LLC;

Strength:

Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our organization.

As a matter of fact, they are some of the best hands in the whole of Saint Augustine, Florida. Our location, the Business model we will be operating on, well equipped facility and our excellent customer service culture will definitely count as a strong strength for us.

Weakness:

Grace & Mercy Group Home, LLC is a new business which is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity we want to give our business and also to attract some of the highly experienced hands in the nursing care facility industry.

Opportunities:

The opportunities that are available to group home facilities are unlimited considering the fact that we have growing aging population and people with one form of disability or the other in the United States and we are going to position our business to make the best out of the opportunities that will be available to us in Saint Augustine – Florida.

Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new and bigger / well established group home facility brand in same location where ours is located.

7. MARKET ANALYSIS

Market Trends

Because of the essential nature of services provided by nursing care facilities / group homes, the industry was able to grow even in the face of economic stagnation. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.

Since the aging population is more prone to injury and illness, and therefore requires more assistance with daily activities, the larger share of senior adults has propelled demand for nursing care facilities. Despite favorable demographic trends, unsatisfactory government funding has hindered industry growth.

The trend in the industry is that players in the industry are now flexible enough to adjust their services and facilities to attract more knowledgeable and educated residents by incorporating more technology and adapting to new markets

Another trend in the industry is that, in order to make group home facilities more affordable for low income individuals, many states in the United States of America are enacting changes to the portion of Medicaid which can be applied to Group Home Facilities.

Before now, only individuals living in nursing homes were typically provided Medicaid assistance, but in recent time, there are now a growing number of states that have recognized the importance of offering Medicaid dollars to senior citizens living in Group Home Facilities.

No doubt the Nursing Care Facility industry will continue to grow and become more profitable because the aging baby-boomer generation in United States is expected to drive increasing demand for this specialized services and care.

8. Our Target Market

Grace & Mercy Group Home, LLC is in business to service the aging population and people with disabilities in Saint Augustine – Florida and other cities in Florida. We will ensure that we target both self – pay customers (who do not have Medicaid cover), and those who have Medicaid cover.

Generally, those who need the services of group home facilities are the aging population, people with one form of disabilities or the other and perhaps those who need daily help.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the nursing care facility industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies. Our customers can be categorized into the following;

The aging population
People with one form of disability or the other (Both young and the elderly)
The aged who might suffer from severe joint pains and every other age categories who falls under the conditions listed by the physician.

Our Competitive Advantage

Aside from the competitions that exist amongst players in the nursing care facility industry, they also compete against other home healthcare services providers such as assisted living facilities.

To be highly competitive in the nursing care facility industry means that you should be able to secure a conducive and secured facility, deliver consistent quality patient service and should be able to meet the expectations of the children / family members paying for their loved elderly parents and people with disabilities in your facility.

Grace & Mercy Group Home, LLC is coming into the market well prepared to favorably compete in the industry. Our office facility is well positioned (centrally positioned) and visible, we have good security and the right ambience for elderly and disabled people.

Our staff is well groomed in all aspect of group home facility services and all our employees are trained to provide customized customer service to all our clients.

Our services will be carried out by highly trained professional nurse’s aides, medication management counselors, county aging workers, home health caregivers and home caregivers who know what it takes to give our highly esteemed customers value for their money.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups group home facility business and other related businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Grace & Mercy Group Home, LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry.

We will generate income by providing a conducive home for our residence; we will engage in services that will help our residence complete daily basic and simple tasks, such as:

10. Sales Forecast

One thing is certain; there would always be elderly people and people with disabilities who would need the services of group home facility.

We are well positioned to take on the available market in Saint Augustine – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow our group home facility business and our residences base.

We have been able to critically examine the group home services market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to similar startups in Saint Augustine – Florida.

Below is the sales projection for Grace & Mercy Group Home, LLC, it is based on the location of our business and of course the wide range of related services that we will be offering;

First Year-: $100,000 (From Self – Pay Clients): $250,000 (From Medicaid Covers)
Second Year-: $250,000 (From Self – Pay Clients): $500,000 (From Medicaid Covers)
Third Year-: $500,000 (From Self – Pay Clients): $1,500,000 (From Medicaid Cover)

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

The marketing and sales strategy of Grace & Mercy Group Home, LLC will be based on generating long-term personalized relationships with our residence. In order to achieve that, we will ensure that we offer top notch all – round nursing care facility services at affordable prices compare to what is obtainable in Florida.

All our employees will be well trained and equipped to provide excellent and knowledgeable nursing care facility services and customer service.

We know that if we are consistent with offering high quality nursing care facility service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for Grace & Mercy Group Home, LLC, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Saint Augustine and other cities in Florida.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time. We hired experts who have good understanding of the nursing care facility industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Florida.

In summary, Grace & Mercy Group Home, LLC will adopt the following sales and marketing approach to win customers over;

Introduce our business by sending introductory letters to residence, clubs for elderly and people with disability and other stake holders in Florida
Advertise our business in community based newspapers, local TV and local radio stations
List our business on yellow pages ads (local directories)
Leverage on the internet to promote our business
Engage in direct marketing
Leverage on word of mouth marketing (referrals)
Enter into business partnership with hospitals, government agencies and health insurance companies.
Attend healthcare related exhibitions / expos.

11. Publicity and Advertising Strategy

We are in the group home facility business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote Grace & Mercy Group Home, LLC.

Grace & Mercy Group Home, LLC has a long term plan of building group home facilities in key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Saint Augustine – Florida before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Grace & Mercy Group Home, LLC;

Place adverts on both print (community based newspapers and magazines) and electronic media platforms
Sponsor relevant community health programs that appeals to the aging population
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
Install our BillBoards on strategic locations all around Saint Augustine – Florida.
Engage in road show from time to time in location with growing aging population
Distribute our fliers and handbills in target areas with high concentration of aging population and people with disabilities
Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

12. Our Pricing Strategy

We are aware that for us to gain more grounds, we will need to enter the market with a very competitive price. Grace & Mercy Group Home, LLC will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.

On the average, group home facility service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment.

In view of that, it is easier for group home facility service providers to bill their clients based in their discretions. Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us.

Payment Options

At Grace & Mercy Group Home, LLC, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

Payment by cash
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money
Check (only from loyal customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

If you are looking towards starting a nursing care facility business, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You would need money to secure a standard residential facility big enough to accommodate the number of people you plan accommodating per time, you could need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them.

The items listed below are the basics that we would need when starting our assisted living facility business in the United States;

The Total Fee for Registering the Business in the United States – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses for the grand opening of Grace & Mercy Group Home, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
Cost for hiring Consultant – $2,500.
Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
Cost for leasing a standard and secured facility in Saint Augustine – Florida for 2 years – $500,000
Cost for facility remodeling – $20,000.
Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
The cost for Start-up inventory (stocking with a wide range of products such as toiletries, food stuffs and drugs et al) – $50,000
Storage hardware (bins, rack, shelves,) – $3,720
The cost for the purchase of furniture and gadgets (Beds, Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
The cost of Launching a Website: $700
Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our group home facility in Saint Augustine – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Grace & Mercy Group Home, LLC

Grace & Mercy Group Home, LLC is a family business that is solely owned and financed by Mrs. Grace Smith and her family. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Grace & Mercy Group Home, LLC intends to generate our start – up capital;

Generate part of the start – up capital from personal savings
Source for soft loans from family members and friends
Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Grace & Mercy Group Home, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our group home services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Grace & Mercy Group Home, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of facility and remodeling the facility: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of Medical Equipment and vans et al: In Progress
Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress

Frequently Asked Questions

Are You Qualified To Run A Group Home?

To qualify to run and manage a group home, you need a master’s or bachelor’s degree in social work, public health, or a similar field. In addition, you will need certain skills like excellent communication, time management, and leadership skills.

2. What Is A Youth Group Home?

Youth group home is a group home that provides therapy, 24-hour supervision and support to troubled teens in a home-like setting. Unlike large residential treatment facilities or psychiatric hospitals, youth group homes serve a small number of teens.

They reside in a family-like setting with trained staff. These group homes may house youths with physical disabilities, mental disabilities, emotional problems or those in transition between foster homes.

3. Who Qualifies You To Live In A Group Home?

Residents of group homes tend to have some type of chronic mental disorder that impairs their ability to live independently. Note that many group home residents also have physical disabilities such as impairments of vision or ambulation.

These individuals require continual assistance to complete daily living and self-care tasks. Some also require supervision due to behaviour that may be dangerous to self or others, such as aggression or a tendency to run away.

4. What Certifications Are Needed To Open A Group Home?

CPR certification
Group Home Administrator 40 hour ICTP
Certified Occupational Health Nurse (COHN)
Informatics Nursing Certification (RN-BC)
Board-Certified Case Manager (CCM)
Certified Addictions Registered Nurse (CARN)
Local fire marshal’s certificate

5. What Is A Group Home For QRTP?

QRTP is a specific category of non-foster family home setting, for which public child welfare agencies are expected to meet detailed assessment, case planning, documentation, judicial determinations and ongoing review and permanency hearing requirements for a child to be placed in and continue to receive federal Title IV-E funding for the placement. QRTPs are a subset of licensed group care facilities; they do not wholly replace them.

6. How Do You Get Funding To Start A Group Home?

Group homes are licensed and monitored by state departments of human services, licensing offices or bureaus, and funding for their operations may come from different sources.

Microfinancing
Peer-to-Peer Lending
State and Federal Government Grants and Loans
Private Foundations

7. What Is Needed To Start A Home Day-Care?

Adequate funding
A suitable location
Furniture and supplies
Child care safety equipment such as fire extinguishers, disaster supplies, etc
Licensing
Child care software
Insurance
Qualified staff
Policies and procedures

8. What Do You Need To Work In A Group Home?

To become a group home worker, you need a high school diploma or equivalent. However, some employers may require post-secondary education, such as an associate or bachelor’s degree in social work.

You will also need to acquire an internship at a group home to gain hands-on experience working with residents. Nonetheless, to be a good group home worker, you need lots of patience and empathy, and the perseverance to handle different physical, emotional, and behavioural issues.

9. How Do You Start A Group Home At Risk Youth?

Opening a group home at risk youth requires adhering to all licensing requirements and passing the inspection and application process. Nonetheless, the steps involved in opening a group home at risk youth include;

Research the current availability of group homes for teens in your community
Write a mission statement and a business plan
Appoint a board of directors
Find funding for your teen sanctuary
Apply for licensing, non-profit tax exemption, incorporation and other legal protections and sanctions your board recommends.
Buy an existing building and hire a contractor to refurbish the structure, or purchase property on which your group home will be built.
Solicit community help to build your teen group home so you can save money on construction.
Get occupancy permits and submit to inspections from village, city, township and/or county authorities.
Hire staff and conduct criminal background checks.
Keep a wait-list of clients to fill beds as residents’ age out, move out or leave.

10. What Qualifications Do You Need To Open A Care Home?

All 50 states require these professionals hold licensure, although requirements for receiving this requirement vary by state. Nonetheless, to qualify to open as a care home in the United States, you must:

be at least 21 years of age;
be of good moral character and suitability;
hold a Bachelor’s (or higher level) Degree from an accredited educational institution, including (or supplemented by) 15 credit hours of specific education;
complete an Administrator-In-Training (AIT) Program (Internship) OR qualifying field experience;
complete a course in nursing home administration;
Receive a passing score on the Nursing Home Administrator Licensing Examination.

11. What Is Your First Step?

The very step when looking to start a care home in the United States is to create a well detailed business plan that identifies the type of group home you would like to open. You need to make a business plan for your care agency because it is the base of your home and will be needed for each step you follow. A business plan includes the following:

Executive summary – Explain the basics of your care home.
Company description – Write the mission and goals of your care home.
Services – Describe what services you will be providing.
Marketing plan – How will people learn about your business? Decide the pricing of your business as well.
Management and organization – Describe the ownership structure of you care home business.
Operational plan – Explain the facility and staff, as well as supplies you will need to operate.
Financial plan – This is where you will write a cash flow projection, balance sheet snapshot and break-even analysis.

12. What Qualifications Must The Program Administrator Of The Group Home Possess?

Group home program administrators are responsible for planning, directing, and coordinating their group home program or service. Howbeit, the qualifications they are expected to posses include;

A Group Home Administrator Certificate
A Bachelor’s Degree in Behavioural or Social Sciences from an accredited school is required.
A Master’s Degree in Behavioural or Social Sciences is preferred.
One year experience in a residential setting
One year experience as a supervisor

13. How Much Does It Cost To Start A Group Home?

The amount you need will depend on many factors, but on the average, it will cost between $115,000 — $155,000.

14. How Profitable Is A Group Home?

A group home in the United States is quite profitable especially since demand from individuals aged 15 and under is expected to remain high because the majority of orphanages and group homes cater to children in this age bracket. Note that a properly retrofitted group home can reap $7,000, or more, per bed in revenue. And with 8 to 12 beds in a mansion setting, the rewards can be stunning.

15. How Do Group Homes Work?

The treatment provided in a group home tend to primarily focus on improving self-esteem, teaching new skills and holding residents accountable for their behaviour. Some group homes offer specialized treatment for specific issues, like autism, substance abuse, or inappropriate sexual behaviour. Most group home programs include:

Anger management
Drug education
Family therapy
Group therapy
Individual therapy
Individualized behaviour programs

16. What Does A Group Home Manager Do?

A group Home Manager directs operations in care facilities for the elderly or the disabled. Duties of a group home manager include overseeing daily operations, developing budgets, hiring and training staff, scheduling employees, and implementing programs for residents.

17. How Do You Start A Senior Living Home?

The following steps are how you can get started in the senior living industry.

Acquire Land or a Home
Contract a Real Estate Agent and Check Zoning Laws
Hire an Architect and Building Contractors
Apply for Permits
Hire the Right People
Secure the Necessary License
Purchase Furniture
Plan for Marketing and Advertising

18. Can You Turn Your Home Into An Assisted Living Facility?

Yes, you can convert your home into an assisted living facility. However, you need to see the regulations in your state or city and apply them to the structure you are considering for conversion to an Assisted Living Facility.

19. How to Start a Group Home In California?

There are several agencies involved in the oversight of group homes in California. The processes to start a group home in California include;

Contact your local Regional Centre.
Attend a “Residential Services Training” through your Regional Centre
Develop a “program design” that shows how you can meet and fill the current needs of your local Regional Centre.
Attend an orientation at Community Care Licensing (CCL) for Adult Care, Child Care or Elderly Care.
Apply for a license
Apply for “Vendorization” through your local Regional Centre
Accept your first client from the placement packets and proudly open your Group Home.

20. How Do You Convert Your Home Into An Assisted Living Home?

Depending on your house, neighbourhood and state, it may not be possible to convert your house into an assisted living facility. If it is, the process and steps will include;

Check the zoning of your property with your city or county. Assisted living facilities are businesses and are typically not allowed in residential zones.
Research your state laws and regulations on assisted living facility licensing.
Understand the regulations on facility space, structural and safety requirements and compare them to your home.
Seek adequate financing to make physical changes to your home as well as to hire the clinical and support staff required under state law.
Hire a contractor with experience in assisted living facilities, skilled nursing facilities or other healthcare structures.
Apply to your state for licensure as an assisted living facility.
Hire or contract required staff which usually includes a nurse who visits a certain number of hours per week.

21. How To Start A Group Home In Michigan?

Here is how you can start a group home in Michigan;

Consult with a licensed group home institution and take notes on its current operating setup.
Meet the state requirements for group homes.
Hire competent staff
Create a building plan review and submit it to the Department of Energy, Labour and Economic Growth (DELEG) and the Bureau of Fire Services (BFS).
Apply for a local zoning approval to start a group home that fits seven or more clients
Apply for a group home license in Michigan

22. How To Start A Group Home In Ohio?

The Ohio Department of Job and Family Services (ODJFS) is responsible for providing guidelines for group homes, which must be licensed by ODJFS or an approved local entity. Here is how you can start a group home in Ohio;

Review your financial situation and determine if you can afford to purchase a house
Determine the location and house
Purchase the house
Develop a written emergency plan that outlines procedures for fires, evacuations, missing persons and severe weather
Sign and submit the application to the Ohio Department of Job and Family Services
Attend the onsite inspection
Hire the home staff

23. What Are The Steps To Start A Group Home In Kansas?

Here is how you can start a group home in Kansas;

Decide which kind of group home you would like to have in Kansas.
Choose the programs your group home is going to offer.
Decide on the exact location of your group home.
Decide on the number of occupants you’d like to have in your group home.
Make sure that you know the type of employees and the manpower you need to operate your group home.
Obtain a group home license from the Kansas Department of Health and Environment.
Research grants that would match your choice of business.

24. How Many Group Homes Can You Open?

As a new entity, licensing agencies will be eager to see how you succeed with one program. Howbeit, when licensed, if the program is successful in its initial operation (a period of approximately 15-18 months), you may apply for a license for another facility.

25. How To Start A Group Home In Texas?

Here is how you can start a group home in Texas;

Register the type of group home you want based on the type of people you wish to help in your community.
Write a business plan that summarizes your vision, mission, business goals, start-up and operating costs, marketing plan and expenses, financial projections and competitor analysis.
Buy, rent or lease a home or facility that is sufficient to house the number of people you want
Comply with local fire building codes and zoning regulations.
Contact the Texas Department of Aging and Disability Services (DADS) and Texas attorney general’s office.
Obtain the license to open the group home in Texas from DADS.
Register your business legal structure and business name with the Texas Secretary of State.
Obtain general liability insurance and business insurance
Hire employees who have a clean criminal background and a driver’s license.

26. Where Can You Get Information And Financial Help To Open A Foster Or Group Home?

Group homes are licensed and monitored by state departments of human services, licensing offices or bureaus, and funding for their operations may come from different sources. Note that contacting the local county child welfare agency is a first good step to learn about requirements and financing options concerning Foster or group homes.

Child Welfare Information Gateway, a service of the Children’s Bureau, Administration for Children and Families, also provides contact information for State Foster Care Program Managers and State Licensing Specialists on its website.

27. What Does A Residential Care Worker Do?

Residential care refers to personal care services given to children and adults unable to live independently. Responsible for providing these services are residential care workers, professionals who focus on improving the physical and mental well-being of their clients. The primary role of residential care workers is to provide physical care to patients who cannot perform day-to-day living tasks.

29. How Do You Start A Group Home For Special Needs Adults?

The necessary steps to take include;

Contact a Social Service agency such as the Department of Human Services (DHS) or a private charity such as Catholic Social Services or Lutheran Social Services.
Find housing that meets licensing and inspection requirements
Attend the workshop or other licensing sessions required for licensure.
Apply for grants and seek funding for your group home.
Evaluate your budget regularly, and make changes as needed.
Renew your license.

30. What Is The Difference Between A Group Home And A Residential Treatment Centre?

The key differences between a group home and residential treatment centre are the intensity of the treatment and environment where treatment is carried out in. Group homes consist of 24/7 monitoring, while residential treatment centres consist of monitoring, but not quite on a 24/7 intensity.

Another key difference between the two is the length of treatment. Note that most people that seek treatment for mental health issues are treated on an outpatient basis, in which they attend regular meetings – usually 2-3 times per week.

While group home treatment is usually short-term. Residential treatment has the potential to be ongoing – it all depends on how an individual responds to treatment.

31. What Is The Single Point Of Entry?

Single point of entry simply refers to a program from which a current or potential long-term care consumer can get long-term care information, screening, assessment of need, care planning, supports coordination, and referral to appropriate long-term care supports and services.

GOC is responsible for the coordination and oversight of the Single Point of Entry process. GOC staff conducts the Single Point of Entry Training and provides technical support to prospective residential child care program providers.

32. How Do You Start A Non-Medical Home Care Business?

To start a non-medical home care business, here are steps to consider;

Determine the Structure of Your Business.
Create a Business Entity and Meet Licensing Requirements.
Develop Your Policies and Procedures.
Set Up Your Financial Systems.
Recruit and Hire Office Staff.
Develop a Recruitment and Retention Plan for Caregivers.
Scheduling, Billing, and Time Keeping Systems.
Set Up Your Office.
Develop Your Sales and Marketing Plan
Measuring the Success of Your Business

33. What Do I Need To Ask Myself Before Starting The SPE Process?

The process of becoming licensed to operate a group home for children is not easy and will take a lot of time and energy on your part. You need to ask yourself:

Am I qualified to run a group home?
What experience do I have with the population I intend to serve?
What data/information do I have that indicates a program is needed in the area where I plan to locate?
Do I have the six months of financial resources the State recommends to start a new business? If I am dependent upon loans, will I have the resources to pay them back?
What is special about my program that will make it attractive to placement workers?
Do I have the business skills needed to run a small business? If not, whom can I depend upon to help me with the business side?
Do I have the management skills needed to run a program? If not, whom can I depend upon to help me with the program side of the business?

34. What Are The Benefits Of Transitional Housing?

Transitional housing more or less describes a community project or program that provides temporary housing and support services for homeless people until they can find permanent solutions. Its benefits include;

Reduced Crime
Disease Prevention
Substance Abuse
Employment Assistance
Self Esteem

35. How To Start A Group Home In Florida?

The Steps to take include;

Decide what type of group home you would like to open and create a business plan
Find a location that will suit your group home needs
Consult with local agencies and become a certified group home
Pass a safety inspection and take classes to become a foster parent if you would like a group home for children.
Apply with the local Florida area agencies if you wish to start a group home for disabled individuals.
Contact the Florida Department of Elder Affairs if you would like to run a group home for the elderly.

36. How Much Does It Cost To Build A Custom Home?

Custom homes cost anywhere from $350,000 to $1.5 million or more. Expect to pay $300 to $500 per square foot for custom and luxury builds. Custom homes come in almost any shape and size.

37. What Happens After I Attend A Single Point Of Entry Training?

After attending the SPE Training, you will be issued the SCYFIS (State Children, Youth and Families Information System) logon and a password needed to submit your proposal online.

38. How Much Does A Group Home Owner Make A Year?

Most group home owners really do not profit off of their group homes because it is about helping the residents or whoever occupies the group home. However, if you are running a group home to make money, you could get about 400 dollars a week per child from the state.

A lot of people do get the money but most of it is put back into the group home to pay the expenses of the occupants and the home itself. The expenses of the group home are mandatory if you want to keep your home from getting shut down or closed. But in a year a group home owner makes about $20,800 per child.

39. How Much Do Group Home Workers Get Paid?

According to the BLS, the median salary of a group home worker was $25,280 per year as of 2019, or $12.15 per hour. Also, job website PayScale notes that supervisory positions in group home jobs pay an average of $14.30 per hour, with salaries typically ranging from $11.13 to $18.75 per hour. Annualized, the average full time salary is $36,498, with a typical range between $28,000 and $50,000.

40. How Much Money Do You Need To Start An Assisted Living Facility?

An article by Forbes on assisted living facilities estimates the cost of an 80-bed facility at $11 million (or $130,000 to $145,000 per bed). Howbeit, ensure to add three to six months’ operating expenses to the budgeted start-up costs. The level of operating costs will depend on the type and size of the facility to be created.

41. What Happens After You Submit A Proposal To GOC?

Within 90 days of receiving it, GOC will put your proposal through rigorous examination. Note that after the review, you will either be required to submit additional information, or your proposal will be forwarded to the appropriate licensing agency.

If you are asked to submit additional information, you will be asked to submit it within 60 days of receipt of the letter or the State will consider your proposal withdrawn. The entire process – including the review of the proposal and any proposal revisions requested by GOC, and the process for acquiring a license by one of the licensing agencies – can take up to one year or longer. The length of time for the entire process will depend on the quality of your proposal submission.

42. What Experience Do You Need To Have For The Population You Intend To Serve?

Crisis Intervention
Data Entry
Independent Living
Meal Prep
Personal Care
Other Skills like CPR and patient care

43. How Do You Start A Non-Profit Assisted Living Facility?

While all assisted living communities charge a fee to residents, non-profit facilities are different because any profit the facility makes after all expenses are paid goes back into that facility. No profits are taken by shareholders or anyone else. To start a non-profit assisted living facility, here are steps to consider;

Choose a name
Build, purchase or convert an existing facility for your new assisted living business.
File articles of incorporation
Apply for your IRS tax exemption
Apply for a state tax exemption
Draft bylaws
Appoint directors
Hold a meeting of the board
Obtain a specialized license as an assisted living business.
Obtain an operator’s license required by your state.

44. What Are Some Good Rules To Follow In Developing Your Proposed Program?

It is pertinent you consider your proposal as a business plan. Take time to think about your vision for your program. Your completed proposal should be a picture of what your program will look like and what it will take to operate it.

It should encompass every aspect of your business such as: description of your program, operational plan, description of staff and their duties and responsibilities, services offered, start-up budget and operational budget. Please be sure to read through your proposal thoroughly before submission.

45. How Many Youths May You Have In Your Program?

Have it in mind that several factors determine the maximum number of youths you may have in your program. These factors include the Fair Housing Act as amended in 1988; COMAR regulations, fire authority, and health and safety.

46. How Much Do Resident Managers Make?

As of Mar 17, 2022, the average annual pay for a Resident Manager in the United States is $40,250 a year. This equates to approximately $19.35 an hour, $774/week, and $3,354/month.

47. What Types Of Group Homes Are Licensed By DHR, DJS, And DHMH?

DHR Licenses the following types of group homes:

Independent Living Programs
Shelter Care
Regular Group Homes
Respite Care
Teen Mother Baby Programs
Treatment Foster Care

DJS Licenses the following types of group homes:

Regular Group Homes
Secure Group Homes
Shelter Care

DHMH Licenses the following types of group homes:

Residential facilities for children with developmental disabilities
Therapeutic Group Homes

48. Is Owning An Assisted Living Facility Profitable?

Yes, the senior care industry in the US has never looked more promising than it does now. Thanks to the mass retirement of baby boomers and massive leaps in healthcare technology, we are experiencing the largest population of older adults than ever before.

The US assisted living home market size was estimated at $73.6 billion in 2018, with a CAGR of 6.4% over the forecast period. Stable assisted living communities have a profit operating profit margin between 28 and 38% – though the margin decreases in facilities with a memory care component.

Note that a single-family home can generate $36,000 of gross profits and $10,000 of monthly cash flow. This value varies based on a range of aspects, like its size, location, and amenities.

49. Where Can You Find A List Of Homes That Are Designated As Residential Homes For Developmentally Disabled Individuals?

Group homes that serve persons with disabilities are regulated by the Agency for Persons with Disabilities. Group homes that serve children will be regulated by the Department of Children and Families. Meanwhile, certain group homes for the elderly may be licensed by the Agency for Health Care Administration. These agencies provide detailed lists of homes designated as residential homes for the population they cover.

50. Are Group Homes Non-Profit?

Group homes can be run either as a non-profit or a for-profit venture.

51. Can A Non-Profit Organization Own A Long-Term Care Facility?

No, nonprofit organizations cannot own long- term care facilities

52. How Much Profit Do Care Homes Make?

Non-medical home care rates currently range from $20 an hour to $40 per hour, depending on the location. Small towns and rural areas, where living costs are lower, are less, and big cities, where living costs are high, tend to be on the high side. Nonetheless, the national average is $27 per hour, which works out to $54,000 a year with a 40 hour work week.

53. How Long Does Your Proposal Have To Be?

Note that there is no limit on the length of your proposal. You will only have to follow the Proposal Outline and the COMAR regulations (14.31.06) when developing your proposal.

54. How Do You Start A Private Care Business?

Due to the aging of baby boomers and increased life expectancy, the number of senior citizens over the age of 65 is increasing every year. With that comes the increasing need for medical and personal care as well. This offers great business opportunities for entrepreneurs in the healthcare industry to start your own private care business, here are steps to consider.

Create a business plan.
Register with the state
Obtain Medicare and Medicaid certifications.
Hire great staff.
Get your clients.

55. Where Can You Find Classes For Assisted Living Training?

CareAcademy
American Caregivers Association
Family Caregiver Videos and Webinars
Video Experiences of Fellow Caregivers
Interactive Caregiver Courses and Videos

56. How Do AFC Homes Get Paid?

Medicare
Medicaid
Social Security
State Based, Non-Medicaid Assistance Programs
Veterans’ Programs
Reverse Mortgages & Home Equity Options
Loans
Life Insurance Policies
Long Term Care Insurance

57. What Are Tips For Writing A Good Proposal?

Be clear, concise and logical.
Make it reader friendly.
Leave plenty of time to research the type of program you want to develop and whether that type of program is needed in the area you are considering.
Familiarize yourself with State regulations, policies and procedures that will govern your program.
Use the SPE Proposal Outline as it will help you structure the information that is needed in the proposal.
Do not use jargon and contractions.
Do not rely heavily on acronyms.
Proofread, proofread, proofread.

58. How Does A Homeless Shelter Work?

A homeless shelter more or less starts with a group of individuals who intend to develop a plan to help people in the community who need shelter. It eventually grows into a plan to put up a homeless shelter. Most homeless shelters are funded by sponsors such as hospitals, companies, professionals, and individuals. Among the programs provided by homeless shelters are:

Feeding
Providing shelter
Distribution of basic necessities
Education
Employment
Rehabilitation

59. What Is The HUD Septic System Distance Requirement?

According to HUD, a domestic well is expected to be located a minimum of 100 feet from the septic tanks drain field, where the waste is disposed, and a minimum of 10 feet from any property line. In some cases, state or local regulations have greater distance requirements which must be met.

60. How Much Does The Government Pay For Group Homes?

$400 a week per child from the state