Transitional Housing Business Plan
You’ve come to the right place to create your Transitional Housing business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Transitional Housing companies.
Below is a template to help you create each section of your Transitional Housing business plan.
Executive Summary
Business Overview
Compassionate Housing, located in Portland, Oregon is a new transitional housing organization specializing in providing housing for low-income individuals and families. The company will operate a mix of single-family and multi-family housing units for rent, conveniently located near the city center, in safe and respectable neighborhoods.
Compassionate Housing’s most valuable asset is the expertise and experience of its founder, Bethany Greene. Bethany has been a community organizer for the past 20 years. She has spent much of her career advocating for the underserved population of Portland. She began her career specializing in connecting people with resources before moving to specialize in homeownership counseling for the next 10 years. Her expertise and education make her the perfect leader for this new and essential transitional housing organization.
Product Offering
Compassionate Housing will focus on providing transitional housing and supportive services for its clients. It has a full-time assistant who, among other things, will manage the company website and listings, advertise listings elsewhere, and answer inquiries.
The founder, Bethany Greene, will also focus on meeting her clientele’s needs. In addition to maintaining a network of human services and healthcare providers, Bethany will hold informational meetings for families in need, and seminars on transitional housing concerns for the community.
Compassionate Housing services include listing rentals, assisting tenants in securing rental assistance, and assisting tenants in finding rentals that meet their budgets. It will serve both renters and prospective renters, in the hopes of becoming a partner with each client in accessing available programs and services in a dignified manner.
Customer Focus
Compassionate Housing will primarily serve the low-income and homeless residents of Portland, Oregon. These demographics have a much harder time finding stable housing and will need our services while searching for a permanent home.
Management Team
Compassionate Housing’s most valuable asset is the expertise and experience of its founder, Bethany Greene. Bethany has been a community organizer for the past 20 years. She has spent much of her career advocating for the underserved population of Portland. She began her career specializing in connecting people with resources before moving to specialize in homeownership counseling for the next 10 years. Bethany’s expertise and education make her the perfect leader for this new and essential transitional housing organization. She will also hire an experienced team to make Compassionate Housing’s mission into a reality.
Success Factors
Compassionate Housing will be able to achieve success by offering the following competitive advantages:
- Grant-writing expertise: Since transitional housing agencies are all vying for the same government grants, it is important to employ a skilled grant writer. Bethany Greene will hire an experienced grant writer to help Compassionate Housing get the funds it needs.
- Client-oriented service: Compassionate Housing will have a full-time assistant to keep in contact with clients and answer their everyday questions. Bethany realizes the importance of accessibility to her clients, and will further keep in touch with her clients through monthly seminars on topics of interest.
- Management: Bethany has been extremely successful working in the social assistance sector and will be able to use her previous experience to grant her clients detailed insight into the transitional housing world. Her unique qualifications will serve customers in a much more sophisticated manner than many of Compassionate Housing’s competitors.
- Relationships: Having lived in the community for 25 years, Bethany knows many of the local leaders, newspapers and other influencers.
Download the Transitional Housing business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Compassionate Housing is seeking a total funding of $500,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees and volunteers, and working capital. Specifically, these funds will be used as follows:
- Housing Design/Build: $200,000
- Marketing and Advertising: $50,000
- Inventory and Supplies: $50,000
- Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
- Working Capital: $100,000
The following graph outlines the pro forma financial projections for Compassionate Housing.
Company Overview
Who is Compassionate Housing?
Compassionate Housing, located in Portland, Oregon is a new transitional housing organization specializing in providing housing for low-income individuals and families. The company will operate a mix of single-family and multi-family housing units for rent, conveniently located near the city center, in safe and respectable neighborhoods.
Compassionate Housing’s most valuable asset is the expertise and experience of its founder, Bethany Greene. Bethany has been a community organizer for the past 20 years. She has spent much of her career advocating for the underserved population of Portland. She began her career specializing in connecting people with resources before moving to specialize in homeownership counseling for the next 10 years. Her expertise and education make her the perfect leader for this new and essential transitional housing organization.
Compassionate Housing’s History
Upon surveying the local demographics and finding a potential office, Bethany Greene incorporated Compassionate Housing as a nonprofit on May 1st, 2023.
The business is currently being run out of Bethany home office, but once the lease on Compassionate Housing’s office location is finalized, all operations will be run from there.
Since incorporation, the company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website
- Determined equipment and fixture requirements
- Began recruiting key employees
Compassionate Housing’s Services
Compassionate Housing will focus on providing transitional housing and supportive services for its clients. It has a full-time assistant who, among other things, will manage the company website and listings, advertise listings elsewhere, and answer inquiries.
The founder, Bethany Greene, will also focus on meeting her clientele’s needs. In addition to maintaining a network of human services and healthcare providers, Bethany will hold informational meetings for families in need, and seminars on transitional housing concerns for the community.
Compassionate Housing services include listing rentals, assisting tenants in securing rental assistance, and assisting tenants in finding rentals that meet their budgets. It will serve both renters and prospective renters, in the hopes of becoming a partner with each client in accessing available programs and services in a dignified manner.
Industry Analysis
According to The Business Research Company, the Temporary Shelters Global Market was valued at $43 bn (USD) in 2022. The industry is expected to continue to grow at a CAGR of 5.3%. This growth is primarily due to the increase in funds for these services including funding from national and local governments as well as individuals.
As the American housing industry and its health is considered a driver for the American economy, key statistics such as new home sales, homes on the market, and average home prices are tracked constantly by news and reporting agencies. This housing industry data is the basis for determining the need for Transitional Housing.
Major revenue streams of the industry include: funding from federal, state, and local government grants, and private donations.
A recent study by the US Department of Housing and Urban Development (HUD) found:
- Participants in smaller transitional housing assistance programs were more likely to have their own place when they moved out of transitional housing.
- Longer stays in transitional housing are associated with higher levels of educational attainment and employment at moveout, and greater likelihood of continued employment.
This bodes well for a small firm starting out with experienced leadership. Studies like this show that transitional housing services are essential for local communities looking to fix their homelessness crisis. With continued funding and support, transitional housing services like Compassionate Housing have a great chance of turning their mission into a reality.
Download the Transitional Housing business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Compassionate Housing will serve the low income and homeless residents of Portland, Oregon.
The area we serve is economically diverse and has a significant population of low-wage workers who would benefit from transitional housing services.
The precise demographics Portland, Oregon are as follows:
| Total | Percent | |
|---|---|---|
| Â Â Â Â Total population | 1,680,988 | 100% |
| Â Â Â Â Â Â Â Â Male | 838,675 | 49.9% |
| Â Â Â Â Â Â Â Â Female | 842,313 | 50.1% |
| Â Â Â Â Â Â Â Â 20 to 24 years | 114,872 | 6.8% |
| Â Â Â Â Â Â Â Â 25 to 34 years | 273,588 | 16.3% |
| Â Â Â Â Â Â Â Â 35 to 44 years | 235,946 | 14.0% |
| Â Â Â Â Â Â Â Â 45 to 54 years | 210,256 | 12.5% |
| Â Â Â Â Â Â Â Â 55 to 59 years | 105,057 | 6.2% |
| Â Â Â Â Â Â Â Â 60 to 64 years | 87,484 | 5.2% |
| Â Â Â Â Â Â Â Â 65 to 74 years | 116,878 | 7.0% |
| Â Â Â Â Â Â Â Â 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Compassionate Housing will primarily target the following customer profile:
- Low income individuals
- Homeless individuals
- Landlords
Competitive Analysis
Direct and Indirect Competitors
Compassionate Housing will face competition from other companies with similar business profiles. A description of each competitor company is below.
Aid for Families
Established in 1984, Aid For Families is a volunteer organization on a mission to find or provide housing for the homeless in Portland. Since its inception, the agency has expanded its service area to include the surrounding counties. It continues to work toward ending homelessness, providing services and opportunities to overcome or prevent homelessness. It provides Emergency Shelter, case management services, a transitional housing program, among other community services.
Community Transitional Housing
Established in 1988, Community Transitional Housing is a nonprofit agency providing housing and services to Portland and the surrounding area. It offers rental properties for low-income households, as well as other critical housing services necessary for homelessness prevention.
The services offered by CTH include permanent housing, rental services for its sixteen Section 8 rental properties and four low-income rental properties, as well as socialization opportunities and free lunch three times weekly.
Portland Rescue Mission
Established in 1964, the Portland Rescue Mission provides assistance for economically challenged, abused, and/or addicted individuals struggling with personal, physical or emotional issues or just trying to make ends meet. The nonprofit organization is on a mission to end homelessness by providing services such as counseling, medical care, housing assistance, food, clothing, and vocational training.
Download the Transitional Housing business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Compassionate Housing offers several advantages over its competition. Those advantages are:
- Grant-writing expertise: Since transitional housing agencies are all vying for the same government grants, it is important to employ a skilled grant writer. Bethany Greene will hire an experienced grant writer to help Compassionate Housing get the funds it needs.
- Client-oriented service: Compassionate Housing will have a full-time assistant to keep in contact with clients and answer their everyday questions. Bethany realizes the importance of accessibility to her clients, and will further keep in touch with her clients through monthly seminars on topics of interest.
- Management: Bethany has been extremely successful working in the social assistance sector and will be able to use her previous experience to grant her clients detailed insight into the transitional housing world. Her unique qualifications will serve customers in a much more sophisticated manner than many of Compassionate Housing’s competitors.
- Relationships: Having lived in the community for 25 years, Bethany knows many of the local leaders, newspapers and other influencers.
Marketing Plan
Brand & Value Proposition
Compassionate Housing will offer the unique value proposition to its clientele:
- Client-focused transitional housing services, where the company’s interests are aligned with the customer
- Service built on long-term relationships and personal attention
Promotions Strategy
The promotions strategy for Compassionate Housing is as follows:
Website/SEO
Compassionate Housing will develop a professional website that showcases pictures of the housing we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
Bethany Greene will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Referrals
Compassionate Housing will aggressively network with sources such as social services agencies, and religious organizations. This network will generate qualified referral leads.
Seminars
By offering seminars on topics of interest in the office or other locations, Bethany will encourage residents in the community to become comfortable with the expertise and character of Compassionate Housing. These seminars will generally be offered free of charge as general promotion and for direct networking.
Pricing
Compassionate Housing will not charge residents for using our transitional housing services. All revenues will come from donations and fundraising events.
Operations Plan
The following will be the operations plan for Compassionate Housing.
Operation Functions:
- Bethany Greene will be the President of Compassionate Housing. She will oversee the general operations of the organization. Over the next year, Bethany will focus on hiring the following staff:
- A Grant Writer who will write grants to raise funds for Compassionate Housing’s services and events.
- A full time Administrative Assistant who will manage the company website and listings, advertise listings elsewhere, and answer inquiries.
- A Director of Fundraising who will oversee and run all the fundraising events and efforts of the organization.
Download the Transitional Housing business plan template (including a customizable financial model) to your computer here <–
Milestones:
Compassionate Housing aims to achieve the following goals in the next six months.
- 6/202X – Finalize lease agreement
- 7/202X – Design and build out Compassionate Housing office
- 8/202X – Hire and train initial staff
- 9/202X – Kickoff of promotional campaign
- 10/202X – Reach break-even
- 11/202X – Reach 20 ongoing clients
Management Team
Compassionate Housing’s most valuable asset is the expertise and experience of its founder, Bethany Greene. Bethany has been a community organizer for the past 20 years. She has spent much of her career advocating for the underserved population of Portland. She began her career specializing in connecting people with resources before moving to specialize in homeownership counseling for the next 10 years. Bethany’s expertise and education make her the perfect leader for this new and essential transitional housing organization. She will also hire an experienced team to make Compassionate Housing’s mission into a reality.
Financial Plan
Key Revenue & Costs
Compassionate Housing’s revenues will come primarily from government grants and private donations.
As with most services, labor expenses will be key cost drivers. Bethany Greene and future staff will earn a competitive base salary. Furthermore, the costs of doing business will vary depending upon the service provided by the organization but are expected to include food and medical supplies. Moreover, ongoing marketing expenditures for sourcing private contributions are also notable cost drivers for Compassionate Housing.
Funding Requirements and Use of Funds
Compassionate Housing is seeking a total funding of $500,000 of debt capital to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees and volunteers, and working capital. Specifically, these funds will be used as follows:
- Housing Design/Build: $200,000
- Marketing and Advertising: $50,000
- Inventory and Supplies: $50,000
- Three Months Of Overhead Expenses (Rent, Salaries, Utilities): $100,000
- Working Capital: $100,000
Download the Transitional Housing business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following table outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the business loan.
- Number of residents per month
- Year 1: 20
- Year 2: 30
- Year 3: 40
- Year 4: 55
- Year 5: 75
- Average monthly donations: $5,000
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 |
Transitional Housing Business Plan FAQs
What Is a Transitional Housing Business Plan?
A transitional housing business plan is a plan to start and/or grow your transitional housing business. 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 Transitional Housing Businesses?
There are a number of different kinds of transitional housing businesses, some examples include: Housing for Teens, Housing for Women, and Housing for Addiction Recovery.
How Do You Get Funding for Your Transitional Housing Business Plan?
Transitional Housing businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Transitional Housing Business?
Starting a transitional housing 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. Develop A Transitional Housing Business Plan - The first step in starting a business is to create a detailed transitional housing business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.Â
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your transitional housing 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 transitional housing business is in compliance with local laws.
3. Register Your Transitional Housing Business - Once you have chosen a legal structure, the next step is to register your transitional housing 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 transitional housing 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 Transitional Housing Equipment & Supplies - In order to start your transitional housing 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 transitional housing 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.Â
Learn more about how to start a successful transitional housing business: