Assisted Living Facility Business Plan
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Assisted Living Facility Business Plan Example
Below is a template to help you create each section of your sample residential care home business plan.
Executive Summary
Business Overview
Portland Village Assisted Living is a startup assisted living facility located in Portland, Oregon. The company is founded by James Martin, an experienced assisted living facility manager who has transformed the struggling PALF Oregon facility into a thriving assisted living business through efficient and strategic management decisions. Now that James has garnered a reputation for being a positive driver for change in the industry, he is ready to venture out with his new facility, Portland Village Assisted Living. James is confident that his experience and expertise in change management, problem solving, and policy implementation will quickly garner support for his new assisted living facility. James plans on recruiting a team of highly qualified professionals including registered nurses, activity directors, and maintenance staff to help manage the day to day complexities of assisted living.
Portland Village Assisted Living will provide a comprehensive array of services that will appeal to its target clientele of seniors living in the Portland area who are looking to get the most out of their assisted living experience. Portland Village Assisted Living will ensure that every need of the residents is being met. Portland Village Assisted Living will be the ultimate choice in Portland for assisted living while being the most reasonably priced facility for the services provided compared to other assisted living facilities in the area.
Product Offering
The following are the services that Portland Village Assisted Living will provide:
- Assistance with everyday living needs
- Dining program
- Emergency call systems and 24-hour onsite security
- Exercise, education, and recreation programs
- Health and wellness programs
- Housekeeping and laundry service
- Social and religious programs
- Transportation accommodations
Customer Focus
Portland Village Assisted Living will target all seniors over the age of 65 who need a little help with one or more daily activities such as bathing, dressing, or managing their medications. No matter the resident, Portland Village Assisted Living will deliver a caring, comfortable environment with a customer-first focus in every aspect of the facility.
Management Team
Portland Village Assisted Living will be owned and operated by James Martin. He recruited a Registered Nurse, Jessica Williams, to be the Nursing Director and help manage the day-to-day nursing needs of the residents.
James Martin is a graduate of the University of Oregon with a Master’s degree in Healthcare Management. He has been working at a local assisted living home for over a decade as an Administrator. James’s leadership and problem solving skills have allowed him to develop a reputation for driving positive change in the industry.
Jessica Williams has been a Registered Nurse and worked with James at the PALF Oregon facility for over ten years. James relies strongly on Jessica’s organization, expertise, and focus when caring for residents. Jessica has worked in the assisted living industry for so long, she understands all aspects required in managing the nursing needs of residents.
Success Factors
Portland Village Assisted Living will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly qualified team of healthcare and management professionals that are able to effectively maintain a welcoming environment for all residents and staff.
- Comprehensive menu of services that allows for a resident to have all of their needs met. Portland Village Assisted Living takes care of everything from daily assistance and medication management to entertainment and dining programs. Portland Village Assisted Living has something for everyone with its extensive list of educational, social, and recreational activities available.
- Portland Village Assisted Living offers the best pricing for a facility with this level of comprehensive services.
Download the assisted living facility business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Portland Village Assisted Living is seeking $1,000,000 in debt financing to launch the assisted living business. The funding will be dedicated towards a down payment to purchase the facility and new furnishings for the facility. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, working capital, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Down payment on facility: $500,000
- Furnishings and improvements for units and common areas: $150,000
- Three months of overhead expenses (payroll, supplies, utilities): $150,000
- Marketing costs: $100,000
- Working capital: $100,000
The following graph below outlines the pro forma financial projections for Portland Village Assisted Living.
Company Overview
Who is Portland Village Assisted Living?
Portland Village Assisted Living is a newly established assisted living facility in Portland, Oregon. Portland Village Assisted Living will be the most welcoming, affordable, and secure assisted living facility in the area. Portland Village Assisted Living will provide a comprehensive menu of assisted living services to suit the needs of any resident over the age of 65. Their customer-focused approach will include a wide range of activities available, 24/7 nursing staff, onsite security, and a customizable dining program.
Portland Village Assisted Living will be able to provide its residents with the best quality care in a friendly, supportive environment. The team of professionals are highly qualified and experienced in healthcare management, resident issues, and activity oversight. Portland Village Assisted Living handles all challenges of the residents and ensures all issues are taken care of expeditiously while delivering the best service.
Portland Village Assisted Living History
Portland Village Assisted Living is owned and operated by James Martin, an experienced assisted living facility manager who has transformed the struggling PALF Oregon facility into a thriving business through efficient and strategic management decisions. James is confident that his experience and expertise in change management, problem solving, and policy implementation will quickly garner support for his new assisted living facility. James plans on recruiting a team of highly qualified professionals including registered nurses, activity directors, and maintenance staff to help manage the day to day complexities of assisted living.
Since incorporation, Portland Village Assisted Living has achieved the following milestones:
- Registered Portland Village Assisted Living, LLC to transact business in the state of Oregon.
- Has negotiated the purchase of a 20 unit facility in a centrally located area that is close to multiple hospitals and healthcare facilities.
- Began recruiting a staff of activity directors, nurses, maintenance managers, and housekeepers to work at the facility.
Portland Village Assisted Living Services
The following are the services that Portland Village Assisted Living will provide:
- Assistance with everyday living needs
- Dining program
- Emergency call systems and 24-hour onsite security
- Exercise, education, and recreation programs
- Health and wellness programs
- Housekeeping and laundry service
- Social and religious programs
- Transportation accommodations
Industry Analysis
The United States Assisted Living industry is currently valued at $87.4B and is expected to grow as much as 5.48% over the next eight years. The primary driver for market growth is the increasing number of senior citizens seeking assistance, companionship, and security that can be provided by assisted living facilities. The rise in the senior population due to a rise in life expectancy is forecast to grow rapidly in the coming years. Approximately 8.5% of the global population is 65 years old or above. The number of Americans ages 65 and older is projected to reach 95M by 2060.
Some of the key factors driving the U.S. assisted living facility market growth include a growing awareness and desire of seniors to age in home-based services and the lower cost of assisted living facilities versus nursing homes. There are currently around 30,000 facilities in the U.S. Approximately 800,000 seniors live in these assisted living facilities across the country. The average assisted living facility resident is between 76-82 years old with an average income of $50,000-$70,000.
Download the assisted living facility business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Portland Village Assisted Living will target all seniors over the age of 65 living in the Portland area who are looking to get the most out of their assisted living experience. Specifically, Portland Village Assisted Living will target seniors who need a little help with one or more daily activities such as bathing, dressing, or managing their medications. No matter the resident, Portland Village Assisted Living will deliver a caring, comfortable environment with a customer-first focus in every aspect of the facility.
The precise demographics for Portland, Oregon are:
| Total | Percent | |
|---|---|---|
| Total population | 590,157 | 100% |
| Male | 284,873 | 48.30% |
| Female | 305,284 | 51.70% |
| Under 5 years | 41,749 | 7.10% |
| 5 to 9 years | 43,509 | 7.40% |
| 10 to 14 years | 41,324 | 7.00% |
| 15 to 19 years | 43,301 | 7.30% |
| 20 to 24 years | 48,119 | 8.20% |
| 25 to 34 years | 106,407 | 18.00% |
| 35 to 44 years | 73,788 | 12.50% |
| 45 to 54 years | 64,669 | 11.00% |
| 55 to 59 years | 35,109 | 5.90% |
| 60 to 64 years | 27,995 | 4.70% |
| 65 to 74 years | 39,539 | 6.70% |
| 75 to 84 years | 17,394 | 2.90% |
| 85 years and over | 7,254 | 1.20% |
| Total housing units | 260,024 | 100% |
Customer Segmentation
Portland Village Assisted Living will primarily target the following customer profiles:
- Men and women at least 65 years old who need help with only a few activities of daily living such as bathing or walking.
- Men and women at least 65 years old with high blood pressure.
- Men and women at least 65 years old with Alzheimer’s disease or other dementias.
Competitive Analysis
Direct and Indirect Competitors
Portland Village Assisted Living will face competition from other assisted living facilities with similar business profiles. A description of each competitor facility is below.
PALF Oregon
PALF Oregon is an established assisted living facility in Portland, Oregon. This company operates an expansive assisted living facility with 24/7 nursing staff, an abundance of education and social activities provided throughout the day, and resort-style living accomodations. Their list of services includes health and wellness programs, educational workshops, supervised recreation activities, and a full menu of nutritious foods served from 6AM-9PM. PALF Oregon is also able to provide transportation accommodations, medication administration, and one-on-one fitness coaching.
PALF Oregon’s promise is to deliver quality care with honesty and integrity, and 24/7 availability of the nursing team. PALF Oregon’s team of experienced healthcare and management professionals ensures activities run smoothly, property maintenance is proactive, and residents get the care they need, when they need it.
OR Home Assisted Living
OR Home Assisted Living is a Portland, Oregon-based assisted living facility that provides outstanding senior care for individuals over the age of 75. OR Home Assisted Living takes the risk out of finding quality assisted living care. They provide comprehensive assisted living services for qualified tenants, and maintain stringent standards for their nursing and activity staff. The owners of OR Home Assisted Living are former healthcare professionals so they understand how an assisted living facility should be managed. Residents can depend on their unique screening processes to hire only highly qualified staff. Amenities offered include a full-service restaurant, rec center, and health club.
Oregon’s Best Assisted Living
Oregon’s Best Assisted Living is a trusted Portland assisted living facility that provides superior service to residents 65 years old and over. They are able to provide a comprehensive health and wellness regimen, highly qualified nursing staff, and superior security. Oregon’s Best Assisted Living is a condominium style environment for seniors who need minimal assistance with just a few daily activities such as dressing or walking. This facility provides a packed schedule of activities that seniors can enjoy throughout their tenure in the facility including clubs, classes, and social events.
Download the assisted living facility business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Portland Village Assisted Living will be able to offer the following advantages over their competition:
- Highly qualified team of healthcare, management, and security professionals that are able to effectively maintain a welcoming environment while ensuring safety and security for all residents and staff.
- Comprehensive menu of services that allows for a resident to have all of their needs met. Portland Village Assisted Living takes care of everything from daily assistance and medication management to entertainment and dining programs.
- Portland Village Assisted Living offers competitive pricing for a facility with this level of services compared to other facilities in the area.
Marketing Plan
Brand & Value Proposition
Portland Village Assisted Living will offer the unique value proposition to its clientele:
- Friendly, knowledgeable, and highly qualified team of professionals that are able to cater to each individual resident’s needs.
- Portland Village Assisted Living has something for everyone with its extensive list of educational, social, and recreational activities available.
- Portland Village Assisted Living offers the best pricing for a facility with this level of comprehensive services.
Promotions Strategy
The promotions strategy for Portland Village Assisted Living is as follows:
Word of Mouth/Referrals
James Martin has built up an extensive list of contacts over the years by providing exceptional service to his residents. Many of these contacts have communicated to James that they intend to help spread the word of Portland Village Assisted Living to their friends and families.
Professional Associations and Networking
Portland Village Assisted Living will become a member of professional associations such as the International Council on Active Aging (ICAA), American Seniors Housing Association (ASHA), and the National Investment Center for Seniors Housing & Care (NIC). The company will attend industry conferences and events to network with other professionals and promote Portland Village Assisted Living.
Print Advertising
Portland Village Assisted Living will invest in professionally designed print ads to display in programs or flyers at industry networking events.
Website/SEO Marketing
Portland Village Assisted Living will develop and maintain an attractive website that will be well organized, informative, and list all their services that Portland Village Assisted Living is able to provide. The website will also list their contact information and list their available units and pricing.
The company’s in-house marketing director will manage Portland Village Assisted Living’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Portland assisted living facility” or “assisted living near me”, Portland Village Assisted Living will be listed at the top of the search results.
Social Media Marketing
The company’s marketing director will create and maintain an active presence on multiple social media platforms including LinkedIn, Twitter, Facebook, Instagram, and YouTube to promote the facility.
Pricing
The pricing of Portland Village Assisted Living will be moderate, so residents feel they receive real value when choosing this facility over higher-priced competitors.
Operations Plan
The following will be the operations plan for Portland Village Assisted Living.
Operation Functions:
- James Martin will be the Owner and Administrator of the company. He will oversee all staff and manage client relations. James has spent the past year recruiting the following staff:
- Jessica Williams – Director of Nursing who will manage the nursing staff and services.
- Kim Smith – Admissions Coordinator who will manage all resident admissions and acclimation processes.
- Ben Davis – Marketing Director who will provide all marketing materials, campaigns, and PR initiatives for Portland Village Assisted Living.
- John Anderson – Maintenance Director who will oversee all maintenance staff and projects at the facility.
- Anna Rodriguez – Housekeeping Coordinator who will oversee all housekeeping staff for the facility.
Download the assisted living facility business plan template (including a customizable financial model) to your computer here <–
Milestones:
Portland Village Assisted Living will have the following milestones complete in the next six months.
8/1/2022 – Finalize contract for purchase of the facility.
8/15/2022 – Finalize personnel and staff employment contracts for the management team.
9/1/2022 – Begin refurbishment and furnishing of the facility.
9/15/2022 – Begin networking at industry events.
9/22/2022 – Begin marketing campaign to attract the first residents.
11/1/2022 – Portland Village Assisted Living opens for business.
Management Team
Portland Village Assisted Living will be owned and operated by James Martin. He recruited a Registered Nurse, Jessica Williams, to be the Nursing Director and help manage the day-to-day nursing needs of the residents.
James Martin is a graduate of the University of Oregon with a Master’s degree in Healthcare Management. He has been working at a local assisted living home for over a decade as an Administrator. James’s leadership and problem solving skills have allowed him to develop a reputation for driving positive change in the industry.
Jessica Williams has been a Registered Nurse and worked with James at the PALF Oregon facility for over ten years. James relies strongly on Jessica’s organization, expertise, and focus when caring for residents. Jessica has worked in the assisted living industry for so long, she understands all aspects required in managing the nursing needs of residents.
Financial Plan
Key Revenue & Costs
The revenue drivers for Portland Village Assisted Living are the assisted living fees they will charge to the residents for staying at their facility. Residents pay monthly fees for their stay and have the option of month-to-month or annual leases.
The cost drivers will be the overhead costs required in order to staff an assisted living facility. The expenses will be the payroll cost, utilities, supplies, and marketing materials.
Funding Requirements and Use of Funds
Portland Village Assisted Living is seeking $1,000,000 in debt financing to launch the assisted living business. The funding will be dedicated towards a down payment to purchase the facility and new furnishings for the facility. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, working capital, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Down payment on facility: $500,000
- Furnishings and improvements for units and common areas: $150,000
- Three months of overhead expenses (payroll, supplies, utilities): $150,000
- Marketing costs: $100,000
- Working capital: $100,000
Download the assisted living facility business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Occupied Units: 15
- Average Fees per Month: $60,000
- Payments on Facility Purchase per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Assisted Living Business Plan FAQs
What Is an Assisted Living Facility Business Plan?
An assisted living facility plan is a plan to start and/or grow your assisted living facility. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Assisted Living Facilities?
There are a number of different kinds of assisted living facilities, some examples include: Residential Living, Memory Care, and Rehabilitation Facility.
How Do You Get Funding for Your Assisted Living Facility Business Plan?
Assisted Living Facilities are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding. Potential investors will need your assisted living business plan PDF or in Word format.
A well crafted assisted living business plan is essential to securing funding from any type of potential investor.
What are the Steps To Start an Assisted Living Facility Business?
Starting an assisted living facility business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Write An Assisted Living Facility Business Plan - The first step in starting a business is to create a detailed assisted living business plan that outlines all aspects of the venture. This should include market research on the assisted living industry and potential target market size, information on the services you will offer, marketing strategies, pricing details and a solid financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your assisted living facility business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your assisted living facility business is in compliance with local laws.
3. Register Your Assisted Living Facility Business - Once you have chosen a legal structure, the next step is to register your assisted living facility business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your assisted living facility business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Assisted Living Facility Equipment & Supplies - In order to start your assisted living facility business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your assisted living facility business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful assisted living facility business and how to write a residential assisted living business plan: