board and care home business plan

How to Start a Successful Board and Care Home

by Anne Kinsey

Published on 16 Dec 2019

Caring for the elderly and other adults who need special care can be challenging, rewarding and meaningful work. While starting a large nursing home facility can be quite expensive and involve a lot of red tape, starting a smaller board and care home is more achievable. Small board and care homes typically house six or fewer residents and provide high-quality care in a homelike setting and environment.

Nursing Homes Vs. Board and Care Homes

One of the ways to ensure your board and care home is successful is to understand the difference between the services you will offer and the services larger nursing homes offer. This empowers you to capitalize on your strengths in meeting the needs of families who seek comfortable residential environments for their loved ones.

Nursing homes typically include the following attributes to their care:

• Hands-on medical care
• Nursing staff and physicians available on-site
• Large residential facility
• Scheduled care and activities of daily living

While board and care homes are also concerned with the health of their residents, medical and nursing care are not available on-site for residents. Board and care homes typically include the following attributes to their care:

• Help with activities of daily living
• Housekeeping
• Nutrition and meals
• Transportation to medical appointments
• Flexible scheduling
• Small homelike environment or residential home

Assisted Living Vs. Board and Care Homes

Like assisted living facilities that offer independent living options for residents, board and care homes give residents the flexibility to retain the power of choice about many of their activities of daily living. Assisted living facilities are typically much larger than small board and care homes and offer on-site medical care, but not to the level of a nursing home. Many assisted living facilities do not afford residents the same flexibility in choosing outside medical providers as board and care homes.

Create a Vision 

Starting and maintaining a board and care home for adults is a large undertaking, one that will likely energize you at times and challenge you at other times. Intentionally set your vision and be clear about why you are doing this so that you have something concrete to help you create clear business plans, prioritize expenses and endure the wait during the licensing process. Your vision can also help you with marketing and finding residents who will be a good fit for your program.

Some things to consider in crafting your vision include:

• Why you want to start a board and care home
• Personal meaning and purpose in starting a board and care home
• Ways your home is different from the competition
• Ways your home is different from nursing homes or assisted living facilities
• Values that undergird what you do
• Mission statements
• Programs you want to include
• Experiences you want to share with the residents

Continuity of Care

Offering continuity of care is one of the things you can do for residents that will help you stand out from the crowd and offer peace of mind to them and their families. This can look different depending on the stage of care each resident needs. For new residents, perhaps they get to keep their existing doctors or home health nurses. As residents require increasing levels of care, it might mean working within regulations in your state to provide home health hospice services or transfer to a skilled nursing facility with a few familiar faces.

Anything you can do to give residents something familiar to hold on to during times of great change will let them know that you truly care and give them a sense of security. This level of care and concern can bring comfort to families who want to know their loved ones are receiving the best care possible.

Funding Plans and Your Success

Just like in any other business, to operate a successful board and care home, you will need a fully fleshed-out business and funding plan. Make sure to include a marketing plan and cash flow plan, as well. If you are a sole proprietor with a good amount of money to invest, you might not need outside capital. On the other hand, if you apply for and receive federal nonprofit status, you might be able to get some funding help through private or government grants.

Funding plans for board and care homes also include considering when and how you will be paid for services. Many homes are private payer only, but you might also consider looking into Medicare, Medicaid and working with managed care organizations.

Staffing Considerations and Plans  

Staffing is vital to operating a successful board and care home, maintaining your facility license and providing exceptional care. Your home will be required to provide staffing around the clock. This means that you cannot have a gap between employee shifts and residents cannot be left home alone.

Ensure that you have a plan for including on-call personnel in your schedule rotation so that you always have backup staffing available. You might also plan to always have two staff members on duty, even if your state only requires one. This way, if someone has a sick kid or needs to leave early, the residents still have the care they are worthy of.

Consider how you will recruit high-quality staff to care for your residents with heart and joy. Contact your local colleges and universities to see if students from medical or psychology programs are interested in full-time, part-time or internship based work at your home. Couple this with some long-term staff with broad experience in the area of elder care in small environments.

Insurance for Board and Care Homes

Board and care homes provide around the clock adult care, which means there is a certain amount of risk assumed in operating the home. Because of this, insurance is key to your success. At the very least, look into obtaining the following forms of insurance:

• Workers' comp
• Liability insurance
• Fidelity bonds
• Surety bonds

If you retain full-time employees, you might also look into the cost of providing medical and dental insurance to your staff.

Meet Local Licensing Authorities

In order to become licensed as a board and care home, you will need to contact your state's department of health or social services. In many states, like North Carolina, your state will require you to meet with a county representative about your application. During this meeting, rules, regulations, zoning requirements and the application process are explained in great detail. This gives you the opportunity to make an informed choice about moving forward with your home, as well as the opportunity to ask questions of those responsible for issuing your home their license to operate.

Receive Zoning Approval

Receiving zoning approval for a board and care home is typically less complicated than for larger skilled nursing or assisted living facilities. You will need to contact your local zoning board for information on how to proceed. Forms and paperwork will likely require you to state your home's name, the activities you plan to conduct in the home, as well as the number of residents you expect to serve at any given time. You may need to submit a fee with your paperwork and attend a zoning hearing for official approval.

Submit an Application 

With zoning approval in hand, contact your local licensing representative, as well as some basic financial and insurance plans in place, you should be ready to begin the official application process. When you submit your application, you will need to pay a fee to apply, plus a certain fee per bed you will offer in your facility.

Be prepared to provide your name, address, the home's name and to answer whether the home is nonprofit or for-profit. You might also need to provide a certified administrator number or proof that you have applied as an administrator of a small family home. If you are not the owner of the home you will be using, be prepared to provide contact information for the owner, as well as a copy of your lease allowing for the board and care home.

Be prepared to answer to the type of services you will be providing to residents. For instance, you will need to share whether all residents will be above the age of 60 or if you plan to provide care to ambulatory or non-ambulatory residents. Some board and care homes provide services to those with dementia or mental health concerns, while others do not.

Hoops in the Application Process

Once your application has been submitted, be prepared to play the waiting game and jump through hoops before you are issued approval. For instance, in the state of Minnesota, you could wait up to 90 days to hear back after your initial application. As part of the approval process, expect the following:

• Meet with construction authorities
• Pass inspections
• Provide detailed floor plans
• Medication management training
• FBI background checks
• Meetings with social services

Even once your board and care home is licensed and approved, be prepared to have additional inspections every several months or once a year. Your license will also need to be renewed at regular periods, so ensure you have solid policies and procedures in place to help make keeping your license and providing high-quality care a breeze.

Comprehensive Residential Care

One of the ways you can stand out from the crowd of other care homes and facilities is by providing a caring environment or opportunities that are not available elsewhere. Some basics to start with include:

• Resident housekeeping services
• Nontoxic cleaning options
• Resident activities and recreation opportunities
• Transportation to services or recreation
• Medication management
• Delicious on-site meals
• Nutrition management

When possible, include residents in things like choosing meals, grocery shopping, decorating their own rooms, holiday preparations and activities in the community. Art classes, concerts, plays and unique dining outings are other things you could offer that might help you stand out from the crowd. Perhaps include a reading room, a special garden with a gazebo or quiet places for meditation to appeal to different types of residents.

Special Situations

Many residents and their families seek out board and care homes in order to avoid an institutionalized feeling of eldercare. They may wish to extend an experience of personalized care when their loved one is non-ambulatory or when they require hospice. Depending on the rules and regulations in your state and county, your home might or might not be allowed to contract with outside providers to come in and provide specialized care. When possible, this would allow your residents to stay in a comfortable and familiar environment.

When non-ambulatory, hospice or memory care extends beyond the scope of your home or rules and regulations do not allow outside care providers to come in, special planning is important. During a resident's enrollment process, consider planning with families for these eventualities. Many areas offer quaint hospice homes, memory care programs set up like residential neighborhoods or temporary housing for non-ambulatory care.

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How to craft a successful home care business plan

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As a home care provider, you run your business with compassion and knowledge of the job and the local community you work with. After you’ve learned more about how to become a caregiver and how to start a home care business , you’re ready to formalize your ideas with a business plan.

How to create a home care business plan

Your business plan is an essential part of the portfolio you’ll present to banks, investors, and partners before launching your company. Every entrepreneur can benefit from a business plan that helps you turn your vision into action and strategize for success. For home care professionals, there are unique additions and considerations for your business plan. From determining your core local clients to developing the marketing plan to reach them, this guide will walk you through nine sections for your home care business plan.

1. The executive summary

The executive summary kicks off your business plan and hooks whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out in your business plan.

A home care business summary should include:

• Your mission and the populations your business will serve 
• A list of your primary services 
• The demand for these services in your community
• What sets your home care business apart from competitors
• Your vision 
• A summary of funding needs

2. The company description

As a home care business working with clients in need, your professional background should be front and center. Your company description offers a snapshot of you and your business, and should include:

• The registered (or intended registered) name of your business
• The location of your company headquarters, and the neighborhoods, area, or city your business will reach
• Management, primary personnel, and their professional backgrounds
• Any licenses or certifications your staff has

Different types of home care services will need different certifications, like medical home care companies compared with senior transportation providers, for example. Make sure to research and include the requirements in your county, city, and state. 

If you’re in the preliminary stages of creating your home care business and haven’t secured the required licenses yet, mention any certifications you’re pursuing in this description.

3. Your business mission and goals

The mission and goals section of a business plan outlines the primary objectives of your company and how you plan to achieve them.

As more Americans advance into the senior age bracket, demand for credible home care businesses is rising. This need can help position your business for success and give you more opportunities to refine your mission and select specific populations to focus on. 

The need for home care help for senior relatives in particular has grown. As home care professional Christine Friedberg reflects, “I used to get on the phone and talk with clients about home care being an option for them or for their loved one, but it was like a new concept…For a long time, we were trying to educate the community about what home care was. Demand is greater than ever now.”

Medicare’s Triple Aim program may provide general inspiration for your own company goals. Their three pillars are :

• Centering and improving patients’ experience of care
• Improving health outcomes of patients served
• Mitigating the cost of care for individuals

From a business perspective, working with specific demographics may give you a leg up on funding. Based in Alexandria, VA, Griswold Home Care works with the area’s large population of aging veterans. To reach more of them, Griswold joined the cross-regional VA Community Care Network to provide in-home services to veterans needing extra support at home.

Not only was Griswold able to reach a specific community in need, but the program also helped this local home care business secure funding directly from the Department of Veterans Affairs . “We’ll see anywhere from 5 to 20 hours a week that the VA is covering, in terms of actually contracting with us directly. They pay us directly…so it’s very easy for the veteran to get in, take advantage of this program and take advantage of this care.”

In the home care industry, other demographics include:

• LGBTQ senior citizens
• People with Alzheimer’s
• People living with disabilities
• Non-seniors living with disabilities
• Adults whose first language isn’t English

Keep your demographic in mind as you refine your company’s identity and plan for growth. It will determine the steps you’ll take to fund your business and reach the neighbors who need you most.

4. Your services

The services section of your home care business plan sets the vision for what your business will specifically do. There are two main types of home care companies and services:

• Non-medical home care services – This type of home care business is not licensed to administer medical services or healthcare to its clients. Instead, they provide support, companionship, and home assistance. Services may include driving clients to doctor’s appointments, taking them to the park, or preparing meals.
• Medical home care services – Medical home care providers are staffed by nurses or other medical professionals licensed to administer medical care to their clients.

With the growing need for at-home healthcare businesses, some of the most common home care services include:

• Assistance with dressing, bathing, and using the toilet
• Companionship and diversion
• House cleaning and support with daily chores
• Transportation
• Hospice care
• Continued education for older adults
• Physical therapy and rehabilitation
• Prescription fulfillment services
• Administering medication
• Tracking vital physical or psychological health 
• Senior citizen relocation assistance
• Specialty nursing for a long-term illness or disability
• 24-hour emergency services

Get specific about what caregiver duties you’ll provide your clients, narrowing down your list with the most needed services in your local community. With 1 in 3 U.S. households on Nextdoor , you’ll be able to connect with neighbors, and your most important clients, with a free business page.

5. Your management structure

This section of your business plan establishes the legal status of your company, which affects other details, from the extent of your liability as the owner to how you’ll file taxes.

The most common business structures for home care providers are:

• Limited liability company (LLC)
• Sole proprietorship
• Partnership
• Corporation

To choose the right business structure for you, consider:

• Liability – Every business is financially and legally liable to compensate for injuries committed on their watch. Consult with an accountant to take stock of your personal assets to choose a framework that gives you adequate protection.
• Taxes – Your home healthcare business structure will determine how the profits you earn are taxed, whether through your business, on your individual tax returns, or a hybrid of both. As a general rule, the larger your company is, or the more shareholders it has, the more complex the tax process will be.
• Growth expectations – Whether your home care company will focus on your neighborhood or expand nationwide, your business structure should reflect your desired administrative capacity and set the stage for investors who want to scale alongside you. 

While S corporations and C corporations are often better suited for larger-scale companies, it’s possible to change the legal structure of your organization as it grows. Consider hiring experts, like a lawyer and an accountant, to help you with this stage of the process, especially if they have advised other local businesses in your area.

6. Your marketing plan

Show potential funding partners you know the modern home care market and set your local business up for success with marketing goals that cover the following bases:

• Digital marketing - In a job as intimate as home care, any new caregiver business begins on the local level. Sign up for a free business page with Nextdoor to instantly unlock a network of verified neighbors near you. Keep your business page updated with your story, photos, and contact information so local clients can find you and easily get in touch. Introduce yourself, share job listings, and keep neighbors updated on your business with free posts or hyperlocal advertising tools to reach more clients in specific ZIP codes you want to grow your business in.
• Partnerships – Qualified home care providers may be eligible to partner with care networks already plugged into local consumer demand. If properly licensed, apply to enroll as a Medicaid or Medicare partner. 
• Word-of-mouth marketing – Since home care professionals are a part of their clients’ and families’ lives, your local reputation will be important. Build trust in you and your services with testimonials on your website and recommendations on Nextdoor. 72% of neighbors there have been influenced by a business recommendation and 71% have shared one. Consider sharing your website and Nextdoor page with former clients to ask them for a recommendation.

Anything that makes your home care business unique, include in this section of your business plan. With a growing population of aging Americans, entrepreneurs are getting creative about the types of care they offer to suit different lifestyles.

Take Dr. Bill Thomas . He thought there should be a senior care option in place of the traditional nursing home so he created Minka, a company that builds small dwellings tailormade for seniors who want extra assistance, community, and autonomy in their advanced years. Says Thomas, “I think there will continue to be congregate housing, but the more choices people find in front of them, the more they’ll find something that suits them best.”

7. Your core financials

The next two sections cover your financial history with projections for your home care business’s future. This will be important for your business strategy, as well as for potential lenders, investors, or partners. 

The finance section of your home care business plan should include:

• Income statement
• Balance sheet
• Expected revenue
• A list of your assets and debts
• A summary of company expenses
• Desired loans

If you plan to enroll as a provider through a network like Medicare, mention in this section of your business plan.

8. Financial projections

This section of your home care business plan is important if you’re asking for an investment of any kind as it covers the funding you’re requesting, what you’ll use it for, and your plan to pay it back.

Financial projections should cover at least three years. Fortunately, the home care industry is slated for financial growth in the coming years. In the U.S. alone, the compound annual growth rate for home health care is projected to be 14.2% between 2021 and 2027.

However you plan to grow your company, speak with your local bank to discuss the full spectrum of financial options before finalizing your business plan. 

You can also connect with fellow home care professionals through Nextdoor for more information on the local home care industry in and around your neighborhood. This will help you get a realistic sense of your financial plan and the next few years operating your business.

9. Appendix

Your business plan’s appendix is where you’ll include any supporting or miscellaneous information for your business goals that didn’t have a place in the earlier sections.

Consider including:

• The resumes or educational and professional backgrounds of you, the owner, and your core staff
• Medical or non-medical licensing, or the licenses you plan to secure
• Any legal permits your business needs or the ones you plan to secure
• Bank statements, loans, and personal or professional credit history
• Real estate information about your business’ headquarters, if applicable

Make local connections through Nextdoor

As more Americans age, local caregivers are increasingly integral to the health of their communities. An effective home care business plan should tell this compelling narrative, sharing why there’s a need for your services and what you’ll do to fulfill them in your area. 

If you’re just building your local home care business, start close to home with a Nextdoor Business Page. Signing up is free, takes just a few minutes, and will help you spread the word, turning your neighbors into your first clients. 

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How to Start a Board and Care Business

• 27 comments
• 20,033 views

The Board and Care business targets those that are in need of a home with residential care and assistance.

• Google Share

This is favored by the sick and disabled in the local community and would therefore make for a profitable business opportunity to that target audience.

The board and care business involves providing residential care homes which includes a room and general supervisions for the clients. Personal care assistance is also given and these homes usually have around 6 residents maximum.

To start the board and care business, first take into account the requirements needed by your local government. Visit your local government and consult with them with regards to your plans to open the business. Be able to evaluate all the legalities of the business and therefore assess them accordingly. Decide on the location of this home, if you want to convert a portion of your household to the business or if you would rather start from scratch with an independent establishment.

Once you have decided on your location you may now draft your business plan. Make a list of the services you plan on offering at your establishment. Note also your long term and short term goals as you will want to continually develop and improve on your business. From these devise your guidelines, rules and regulations and restrictions that should be followed at your board and care business. To keep things concise and to make sure that you did not leave any information out, it would be wise to consult with a lawyer to evaluate your documentation as well as the business model you are setting up.

After you have made a draft of the business model you may now list down your expense estimates. There you will draft all the necessary expenses you are required and you believe you will make that will benefit your business. You may also consult with an accountant in this regard in order to get a clear view of what you need to pay. From the total breakdown you will be able to determine whether or not you should consider a loan or if your initial investment saved on hand is enough to start your business. Also, with this draft you will be able to determine the ideal suppliers and have a vast selection of choices.

Set up your boarding home with the appropriate furnishings and amenities that will cater to your clients. Make sure to assess the basic needs accordingly and to draft out an easy layout for the boarding house. Initially you need not pay too much attention to detail as these are things you may want to consider once your business has established itself. Once must bear in mind though that this business is also a care business which requires a 24 hour staff to assess to the needs of the clients. Therefore be sure to hire qualified healthcare professionals to staff your business.

27 Comments

• [patricia cadet   said on September 22, 2010 201 hazelwood terrace, rochester, ny, 14609 very interested in starting a companion care business. please send more info about this business, rules and guidelines
• Minh Ngo   said on December 11, 2010 City:Torrance County:Los Angeles State:California. What type of License and Course do I need? How much do I need to open the facilities care. where can I get the client? Thank you
• Angela   said on June 3, 2012 I Live in Los Angeles, CA. I worked as an L.V.N. for many years. My experience is as a visiting nurse. I treated patients in several board and care facilities and I was fascinated with the living situation and the way these beautiful places operated. I am very interested in opening a board and care of my own. Any insight or information about starting and operating a good comfy place for seniors would be greatly appreciated.
• Patricia Mullikin   said on September 17, 2012 Torrance, California. County of Los Angeles I am interested in starting a board and care in Torrance. Could you please send me city and county rules and regulations that apply to Board and care facilities or where I can attain this information. I will appreciate any help and information you can forward to me, Thank you Patricia
• Ani   said on October 8, 2012 Came across your info about board and care/personal care home, as I was doing my research. What info do you have for Florida? Thanks
• Mayra   said on November 4, 2012 I am very interested in opening a board and care, but i need some help on how to get started. Can you please send me any info that might help me get the ball rolling. I live in the city of Los Angeles, CA
• frank aquino   said on December 18, 2012 I live in hayward Ca, I'm very interested in opening a board and care for elderly, but I need some help on how to get started, Pls send me insight or info about how to start to operate.
• michelle   said on January 29, 2013 Would appreciate any insight on starting up a board and care business. What are the different types of people you can have at the home? I met someone that put up a halfway house and one that put up one for dementia patients. Any information will help. thanks.
• Kristine   said on April 8, 2013 Hello, I am planning to start a board and care here in san jose ca... Can you please give me information on how to start it. Thank you so much.
• Id   said on August 9, 2013 I would like to know how to start a board and care in Sacramento ca, and i need information on how to get clients. Any information will be helpful. Thanks
• Mimi   said on September 10, 2013 Try to open Torrance CA, is any one tell me where to start, licensing, permit, housing, food. anything will help. Thanks
• Madlen   said on December 2, 2013 I live in North Hollywood Ca, I'm very interested in opening a board and care for elderly, but I need some help on how to get started, Pls send me insight or info about how to start to operate. Thank you very much.
• Ludy   said on February 22, 2014 I am interested to start a board and care business in Midtown Manhattan. I would like to request info on where to start. I aim to have only 2-4 clients. Thank you for your attention
• suzanna   said on April 17, 2014 I live in Orange County CA I am an LVN I use to visit patients in the board and care and now I want to have one on my own. but I don't know how to start and what I need and how to operate . Please can you send me the insight of info how to start thank you so much
• VERNON L JOHNSON   said on September 29, 2014 NEED SOLID BUSINESS PLAN PITCH AND START UP COST. NEEDS FIXED EYE ON COMPETITION IN BOARD AND CARE INDUSTRY. IS INNER CITY,RURAL, OR SPECIALIZED PEOPLE LIKE EX-CONS,AND DEVELOPMENTALLY ILL,OR ELDERY THE BEST WAY TO GO?
• Geri   said on January 9, 2015 i Live In Las Vegas, Nevada i'm very much interested in starting my own Board And Care Business i'm looking for some help in how to get started and how to get the ball rolling. Aloha!!
• Alina   said on March 12, 2015 Hi my name is Alina and I want to open board and care but i dont know how to start please I want some information how to open one thank you.
• Star Brown   said on May 21, 2015 I am a RN in Los Angeles and my mother was a board and care operator for over 20 years before she died. I would like information to continue her work. I need information for classes and setting up framework in the Los Angeles area.
• Sandy   said on May 15, 2016 I am Interested in starting a boarding care Business in San Francisco. Please send me information on how to start a board and care, regulatory and class information.
• Nancy mejia   said on May 15, 2016 How can i start renting rooms.
• Tania dolman   said on September 14, 2016 I am interested in stating open a boarding care in reseda california, I need some information, how to start please
• Rodney Byrd   said on December 3, 2017 I would start my own boarding business, how to get customer and do I get started.
• ovsanna   said on September 23, 2019 I want to open board and care. How do I get information for class?
• lance chapman   said on October 26, 2019 I am looking to start a board and care and would like to know what are the California requirements are and do they vary by county? What schooling I would need and can it be done while in business or is it a prerequisite?
• Jpsephine Beltran   said on November 25, 2019 I would like to start a board and care but I don't know where to start, I need some guidance on how to do it. Thank you. Maybe a checklist to follow.
• Brenda   said on January 14, 2020 I would like Info on how to start and approximately how much do I need. Please if I can get some help. Much appreciated. Thanks
• Alfonso Corrales   said on September 13, 2022 Hello, Can I attend any seminars near California for more information/training?
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Home Health Care Business Plan Template

Written by Dave Lavinsky

Home Health Care Business Plan

You’ve come to the right place to create your Home Health Care business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their home health care businesses.

Home Care Business Plan Example

Below is a template to help you create each section of your home health agency business plan.

Executive Summary

Business overview.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our nursing services include physical therapy, skilled nursing care and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care is run by Helen Parker, who has been a nurse for twenty years. She has specialized in working with aging populations and has extensive knowledge of the common conditions and needs of this age group. Her experience and connections have helped her find other medical professionals who want to join our company. Furthermore, she was able to establish an initial client base from the list of patients she has been helping for years.

Services Offered

St. Helen’s Home Care offers a variety of home health care services that serve the aging population of Austin, Texas. These services include but are not limited to:

• Physical therapy
• Occupational therapy
• Speech-language therapy
• Skilled Nursing Services
• Personal care and housekeeping

Customer Focus

St. Helen’s Home Care will serve the aging population of Austin, Texas, primarily residents over the age of 65. This population is susceptible to many conditions that make daily living difficult such as Alzheimer’s, dementia, arthritis, and diabetes. This population needs more health care than other age groups, but not all services require a visit to the hospital or doctor’s office. St. Helen’s will provide any medical service that can easily be conducted in a home setting.

Management Team

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Aside from the medical professionals she will have on staff, Helen has also employed an Administrative Assistant, Accountant, and Marketing Specialist to help her operate the company.

Success Factors

St. Helen’s Home Care will be able to achieve success by offering the following competitive advantages:

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert nursing services so that the patients are at the highest comfort level.
• Pricing: Helen’s pricing will be more affordable than other home health care agencies. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Financial Highlights

St. Helen’s Home Care is seeking $340,000 in funding to launch the home healthcare business. The capital will be used for funding equipment and supplies, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Equipment and supplies (such as computers and medical equipment): $150,000
• Marketing costs: $50,000
• Staffing costs: $60,000
• Working capital (to include three months of overhead expenditures): $80,000

The following graph outlines the pro forma financial projections for St. Helens’ Home Care over the next five years:

Company Overview

Who is St. Helen’s Home Care?

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our services include physical therapy, nursing, and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care History

Helen Parker has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to travel to a doctor’s office or hospital for their care. Instead, these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide care to local elderly patients in the comfort of their homes. After conducting the research needed to establish the company, Helen incorporated St. Helen’s Home Care as an S-corporation on May 15th, 2022.

Since incorporation, St. Helen’s has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the logo and website for the company
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Created an initial client base from Helen’s pre-existing patient list
• Started creating partnerships with local and national medical insurance companies
• Began recruiting key employees, including medical and administrative staff

St. Helen’s Home Care Services

Industry Analysis

According to Grand View Research, the global home health care industry was valued at $336 billion USD in 2021. It is also expected to grow at a compound annual growth rate of 7.93% from 2022 to 2030 and reach a value of $666.9 billion USD by 2030. This shows that these services will be in great demand, which means it is a great time to start a home healthcare business.

This growth is primarily driven by a growing geriatric population. People are living longer than ever before, and therefore, they will need comfortable healthcare services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for healthcare (whether in the home or doctor’s office) and may create a strain on the current industry. However, this also means there is an enormous opportunity for healthcare businesses to be extremely profitable in the near future.

This is especially true for home healthcare services, which are increasing in demand. Most aging people would rather receive medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.

The only challenge affecting the industry is a lack of properly trained staff who can take on a healthcare career. However, this will only mean that home healthcare services will be even more valued. These industry trends will only help boost the popularity and success of St. Helen’s Home Care.

Customer Analysis

Demographic profile of target market.

St. Helen’s Home Care will primarily target the aging population of Austin, Texas. This includes anyone over the age of 65, especially those who live with diabetes, Alzheimer’s, arthritis, or other conditions that affect their quality of life.

The precise demographics of Austin, Texas, are:

Customer Segmentation

St. Helen’s will primarily target the following customer profiles:

• Aging individuals over the age of 65
• Individuals living with Alzheimer’s and dementia
• Elderly individuals with other health conditions

Competitive Analysis

Direct and indirect competitors.

St. Helen’s Home Care will face competition from other home health care agencies with similar business profiles. A description of each competitor company is below.

Travis County Home Health

Travis County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of their patients’ homes. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, and Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Elara Caring

Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in most regions of the United States. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health

Encompass Health is one of the nation’s leading providers of home health services. They continually set the standard of homecare through their people, their approach, and their outcomes.

The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home. Whether recovering from a surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are.

Competitive Advantage

• Quality Care: Helen’s will provide expert services so that the patients are at the highest comfort level.
• Pricing: Helen’s will provide affordable home health care. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Marketing Plan

Brand & value proposition.

The St. Helen’s brand will focus on the company’s unique value proposition:

• Knowledgeable, friendly, compassionate staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and home aide services at competitive prices.

Promotions Strategy

St Helen’s Home Care will target elderly residents living in the Austin, Texas area. The company’s promotions strategy to reach the most clientele include:

Local Hospitals

Helen Parker already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend the company to its patients and their families upon releasing them from the hospital.

Website/SEO Marketing

St. Helen’s has a website that is well-organized and informative and lists all our available services. The website also lists the company’s contact information and information about the medical professionals who provide our services.  We will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Austin home health care” or “Austin health care,” St. Helen’s will be listed at the top of the search results.

St. Helen’s Home Care will have a billboard at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Insurance Partnerships

St. Helens will partner with local and national insurance companies so that our patients can be partially or fully covered for the services we provide. We will ask the insurance companies to recommend our services to their customers and have our business listed on their websites.

St Helen’s pricing will be moderate so customers feel they receive great value when purchasing its services. Services will either be charged directly to the patient or to their insurance plan.

Operations Plan

The following will be the operations plan for St. Helen’s Home Care.

Operation Functions:

• Helen Parker will be the Chief Executive Officer of the company. She will be in charge of the business operations side of the business and provide home healthcare services until we have a full staff of medical professionals.
• Helen is assisted by her longtime colleague Mary Green. Mary will be the Administrative Assistant and help with all general administration tasks, including taking phone calls and scheduling appointments.
• Keith O’Reilly will serve as the Staff Accountant. He will provide all accounting, tax payments, and monthly financial reporting.
• Betty Lopez will work as the Marketing Specialist. She will run the website, social media, and other marketing efforts.
• Helen will hire a large team of medical professionals to serve our growing client base. So far, some of her former colleagues have agreed to work for her business.

Milestones:

St. Helen’s Home Care will have the following milestones completed in the next six months.

8/1/202X – Finalize lease for the office space.

8/15/202X – Finalize personnel and staff employment contracts.

9/1/202X – Begin refurbishment and furnishing of the office space.

9/15/202X – Begin networking at medical industry events.

9/22/202X – Begin marketing campaign to attract the first clients.

11/1/202X – St. Helen’s Home Care opens for business.

Financial Plan

Key revenue & costs.

The revenues for St. Helen’s Home Care will come from the fees it will charge the patients and their insurance for the provided health care services.

The major cost drivers for the company will be the staff payroll, marketing expenses, lease, and office equipment.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials as well as pay off the startup business loan.

• Number of clients per month: 100
• Annual lease: $50,000
• Overhead costs per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, home health care business plan faqs, what is a home health care business plan.

A home health care business plan is a plan to start and/or grow your home health care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Home Health Care business plan using our Home Health Care Business Plan Template here .

What are the Main Types of Home Health Care businesses?

There are a number of different kinds of Home Health Care businesses , some examples include: Nursing care business, Physical home health care business, and Home health care aides.

How Do You Get Funding for Your Home Health Care Company?

Home Health Care 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 Home Health Care Business?

Starting a home health care 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 Home Health Care Business Plan - The first step in starting a business is to create a detailed home health care business plan that outlines all aspects of the venture. This should include market research on the home health care industry and potential target market size, information on the home health care services you will offer, marketing strategies, pricing detailed and your financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your home health care 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 home health care business is in compliance with local laws.

3. Register Your Home Health Care Business - Once you have chosen a legal structure, the next step is to register your home health care 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 home health care 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 Home Health Care Equipment & Supplies - In order to start your home health care 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 home health care 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 home health care business:

• How to Start a Home Health Care Business

What’s a Board & Care Home for Seniors?

Updated 02/1/2021

Published 12/4/2020

Amanda Lambert, MS, CMC, ALCP

Certified Care Manager, Aging Life Care Professional, and National Master Guardian Emeritus

Cake values integrity and transparency. We follow a strict editorial process to provide you with the best content possible. We also may earn commission from purchases made through affiliate links. As an Amazon Associate, we earn from qualifying purchases. Learn more in our affiliate disclosure .

As time goes on, more and more senior housing options are becoming available, thanks to the growing demographic of aging adults and the diversity of choice desired. Along with all of those choices comes decisions.

Jump ahead to these sections:

What’s a board and care home, how do you know if someone’s ready for board and care, pros and cons of board and care, how to find a board and care facility.

Most seniors say that they want to age at home, but that might not be possible or the safest. What initially seemed manageable becomes more difficult as care needs increase or family caregivers can no longer provide assistance.

That is where board and care homes come in. Board and care homes are a unique alternative to assisted living in that they are smaller, more affordable, and have a home-like atmosphere that many people prefer. The large anonymous feel of some assisted living communities is not for everyone. A board and care home could be the answer.

A board and care home is for seniors who are usually more able, independent and want a home-like atmosphere. Keep in mind that board and care go by different terms in different states. Some are called group homes, and others are called residential care homes, or adult foster care homes, but they all fall under the concept of cohousing for seniors .

Aging adults may recognize that they need more care down the road, but choose board and care in the interim. People who own board and care homes typically adapt their homes or other residential houses to comply with local and state licensing requirements. 

For the owner, a board and care home offers the opportunity to care for and be with a smaller, more intimate group of seniors. Houses usually have no more than three to ten residents.

Some of the other defining characteristics of board and care homes include the following:

• Three meals a day along with snacks
• Some personal care including assistance with bathing, grooming, and dressing
• Medication management if supervised by licensed personnel
• 24-hour supervision
• A more homelike atmosphere where meals are shared, but with a private bedroom
• Many board and care homes are in residential neighborhoods.
• Transportation might be provided to other healthcare appointments.

Difference between assisted living and board and care

A lot of the characteristics and features of a board and care home can sound like an assisted living facility, but they are not the same. The main differences between assisted living and board and care have to do with size and services. Let’s break it down.

Assisted living

Assisted living communities can be large and institutional, with hundreds of rooms. Some are high rises with memory care and independent living as part of their communities. Certain floors might be designated as independent, assisted, or memory care.

A key thing to remember is that assisted living is all about the services that accommodate the growing medical needs of seniors over time. Although assisted living communities are licensed and regulated by the states, they continue to push the boundaries of care. It is not unusual in assisted living to see seniors on walkers or in motorized chairs.

Although it is rare for assisted living to offer 24-hour nursing, they may have a nurse available during regular business hours. Care staff can help residents with most of their personal care needs. This includes bathing, grooming, dressing, medication management, ambulating, and accompaniment to meals.

All of these additional services in assisted living come with a cost. A base price is a monthly fee for renting the apartment and includes amenities such as meals, activities, cleaning, and transportation. Once you need help in assisted living, you will pay extra. Some places have tiers of care, depending on how many hours of help you need each month. Each level will add to your base monthly rate.

Board and care

Board and care homes will be much smaller and average between two and ten residents. Amenities are variable and depend on the community. In most cases, a nurse will not be available. However, some of these homes may provide limited personal care, making it very important to find out exactly what you can expect before making a decision.

If you need additional help as a resident of board and care, you can hire private caregivers or nurses, but of course, that adds to the cost. Transportation might also be limited to specific times and days, and activities will not be as robust or diverse. Someone is on-site 24-hours a day, but the residence may not have the level of security that a larger assisted living has.

Deciding to move from home is an emotional decision, and one that you might make on your own or with your family’s input. Long-term care planning should be at the forefront of any decision you make as you age. As part of that process, try and anticipate what you might need in the future while acknowledging the importance of staying flexible.

Board and care is a transition for many people between home and assisted living, hoping that someone can stay there for the long term.  Knowing whether someone is ready for board and care will probably hinge on these factors, such as managing care, your own home, and mitigating loneliness.

As you age, it is challenging to manage care at home. As a family caregiver, you might have reached your limit in terms of energy, time, and ability. Or hiring caregivers is impractical due to cost and management. 

It is also challenging to manage the home. Care of someone doesn’t just involve the person. It also applies to the household. Cleaning, maintenance, and yard care can get to be too difficult, unsafe, or expensive. While independence is important, at a certain point it can be unsafe to climb up a ladder to fix something or head downstairs to do laundry.

Finally, social isolation can adversely affect you or your loved one’s mental health. Social isolation and loneliness have serious effects on an aging adult’s physical and psychological health. This is especially true for someone who has stopped driving or has lost longtime friends.

Weigh the pros and cons of board and care carefully with your long term plan in mind. Every senior housing option has pros and cons, and it is important to remember that there is no perfect place.

Pros of board and care

It may be a potentially less traumatic move since your loved one is moving from one home to another, so the adjustment may not be as intense. In most cases, board and care will be less expensive than assisted living.

Also, with a smaller home, you will still have a smaller staff to resident ratio. Having fewer people to keep track of and monitor can be a benefit. Staff can notice changes or problems and act on them, whereas in assisted living, someone can get lost in the crowd.

With a board and care home, you will have the opportunity to build closer relationships with staff and other residents thanks to the homelike and less institutional environment. In addition, if the board and care is in a residential neighborhood, it can feel more like home and provide a sense of belonging.

Cons of board and care

The biggest detractor to a board and care home is that it may not offer enough care for what your loved one requires. Board and care doesn’t have the flexibility to augment care beyond a certain point. You can hire care, but you might have to move if needs start to exceed what can safely be provided by the home you are in. 

Also, board and care communities can’t handle severe forms of dementia. Board and care homes are more informal and flexible by nature, but they don’t have the staff or security to manage wandering or other unsafe behaviors.

While it’s a smaller community, you might have to share a room. Some board and care will offer private rooms, but one might not be available when you are ready to move. 

And finally, while they may be licensed by the state, a board and care home can fly under the radar in terms of oversight. They are more likely to have unreported complaints and problems depending on ownership. 

The first thing to remember is that when looking for a board and care home in your particular state, this type of home might go by a different name. If you can’t find what you are looking for under the term board and care, try residential care homes or group homes. Talk with your loved one’s healthcare providers to get some recommendations. 

You will also want to check with your local Aging and Adult Services office to see what they recommend. Board and care homes are more likely to change hands or go out of business than larger corporately owned assisted living. It might take more effort to find what you are looking for.

Once you have identified a possible place, ask these questions and do a little detective work:

• How long have you been in business, and who is the owner?
• What is the staff to resident ratio?
• Are there licensed staff, and if so, what specifically can they do?
• What is the cost, and is a certain amount of care included in the price?
• Are there specific criteria to meet when seeking a higher level of community care?
• Ask about special diets. Can the home accommodate a diabetic or vegetarian diet?

You will also want to call the state Ombudsman office to ask about any complaints the residence has received. Before making any decision, visit the home and pay close attention to safety features like handrails, emergency response systems, and protocols. Also, check out cleanliness and the kitchen set up.

Board and Care Homes for Seniors

As you or your family members become older, staying at home might not be the safest option. Depending upon where you live, you may have many choices for senior housing.

The direction you go depends on your long term plan and personal preference, but board and care homes can be a viable and economic alternative to assisted living. By doing your homework, you increase the chances of being happier with the decision you make over time.

Categories:

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How to Write a Home Health Care Business Plan

Elon Glucklich

8 min. read

Updated February 7, 2024

Free Download:  Sample Home Health Care Business Plan Template

The world’s population is aging. One in six people worldwide will be 60 years old or older by 2030, and the share of the overall population over 60 will double over the next quarter century, according to World Health Organization estimates .

This demographic shift has driven a surge in demand for custom senior and disability care options. So, if you’re an experienced health care worker with an entrepreneurial streak this presents an opportunity to start your own home health care business.

But the home health care industry is complex and layered—with issues ranging from licensing and staffing to liability concerns. Even with your industry-specific experience, you’ll need to write a business plan to navigate these challenges and focus your time on providing the best care possible.

In this guide, we’ll show you how to tailor your business plan to tackle the complexities of the home health care industry. And you can even download our free home health care business plan template to help get you started.

• Why You Need a Business Plan for Your Home Health Care Business

Do you have a service and staffing plan? Do you know which agency or agencies have regulatory authority over your business? How much funding do you need to pay for equipment?

You’ll need to have answers to these questions and more before launching your business. 

That’s why writing a business plan is necessary when starting any sort of health care business. It ensures that you are thinking beyond your expertise as a health care professional and able to easily manage day-to-day operations, insurance and billing snafus, and extensive startup costs.

You can enter this industry with extensive knowledge and the best of intentions. But without a plan in place, you won’t be prepared to run a successful business. 

• How to write a home health care business plan

For this guide, we’ll be highlighting specific areas that you should focus on when creating a home health care business plan. You can check out or full step-by-step walkthrough on how to write a business plan for additional guidance for creating a detailed plan.

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1. Define your vision

What does your business offer that other health care services in the area don’t?

Answering this question is your first step to lay out a roadmap for your business. And it goes beyond just describing the type of home health care business you will open. This is an opportunity to state your core values , long-term goals and the impact you hope to have on the lives of your clients.

Then, discuss what niche it will fill in the market. For instance, will you open your business to fill a need in an area with few health care options? Or will you round out the offerings in a city with a wide range of services? 

Remember to keep this relatively short. This opportunity section can introduce lenders or investors to the unique services you plan to provide, like specialized care offerings, tailored care plans, or uses of advanced medical technology. But you don’t want them to get bored with an overly lengthy statement. 

You can always go into greater detail about your services in the products and services section of your business plan. 

2. Be specific about your service offering

As a home health care business, you will likely provide a variety of services. But will you have a specific focus—such as elder care or post-surgery care? Or will you offer a wider range of general services like medication management?

Additionally, it’s worth stating if your home health care business will be able to manage requests for specialized services based on individual client needs. 

Whatever you choose, the important thing is to make your service offerings clear and to back them up with market and customer data. Make sure you describe why these services are essential and how they will benefit your clients. And remember to make a clear connection between your services and your target market , which we will go over next.

3. Define who your customers are

Not everyone with a medical condition will be interested in home health care services—so it’s essential that you focus on a specific set of people.

A home health care service specializing in senior or disability care will cater to that specific customer base. But a home health care business that provides post-operative or palliative care would likely appeal to an entirely different market. 

To start your research, try and get an estimate of the population of residents aged 65 and older in the area you plan to serve—which can be found from sources like the U.S. Census Bureau . You may also be able to find the approximate number of nursing and elderly care beds in your area from sources like state licensing records. 

This kind of information will give you a broad sense of how many people you could serve in your area. From there, begin to refine your target audience by taking into account competitors, your services, and what you believe you’ll be able to reasonably handle. 

4. Understand pricing and insurance

When pricing your services, it’s helpful to research the prices of other home health care providers in your area. This provides you with a benchmark and allows you to position your business based on the value and/or quality of your services.  

Now, another factor to consider before solidifying prices is insurance expenses for both your business and patient coverage.

From Medicare and Medicaid to private insurers, you’ll want to document all relevant insurance providers in your business plan. Then, research their reimbursement policies and rates for home health care services to better understand your potential revenue sources.

Different insurance plans may also cover varying degrees of home health care services—with some offering comprehensive coverage and others only covering specific treatments or services. Identify the limitations and requirements of each plan, such as the need for prior authorization or a physician’s referral, to ensure your services are eligible for reimbursement.

Then, make sure you understand the reimbursement rates offered by insurance providers for the services your business will offer. These rates will directly affect your revenue and should be factored into your pricing strategy. 

Just keep in mind that these reimbursement rates may change periodically, so it’s essential to stay up-to-date on the latest information.

5. Identify your staffing and licensing needs

Worker shortages are especially prevalent in the health care industry. Without the right number of employees in the necessary roles, you can expect to see fewer customer visits, worse service quality, and potentially increasing employee expenses. This is why you need to have a well-documented personnel plan that takes into account the roles of your employees, how many you’ll need, and forecast potential expenses.

To start this section, carefully consider the services you plan to offer and the number of clients you expect to serve. That will help determine the number of staff members you’ll need and the qualifications necessary for them to do their jobs well. Additionally, be sure to document any training programs and processes your staff members will receive on topics like client care, safety procedures, and documentation.

Home health care businesses also require a variety of licenses and permits. What’s required may vary depending on your location and the services you plan to offer. So, it’s crucial that you understand the specific requirements in your area to avoid any legal issues down the road. And for your own internal management, it may be useful to detail the local, state, and federal regulations and agencies that will be responsible for regulating your business.

You will need to demonstrate knowledge of the operating requirements in your area to receive a license anyway. So take the extra step of detailing the full range of legal and regulatory issues in your business plan. Otherwise, you raise the risk of facing legal consequences, fines, or even the risk of being shut down.

6. Develop a risk management plan

In such a regulation-heavy industry it’s important to think about–and document–internal and external risks. These can be anything from negligence to malpractice claims and even elder abuse. 

Consider conducting a risk assessment that takes into account your location, services offered, and employee qualifications. Once you’ve identified potential risks, outline what you’ll do to minimize or avoid them altogether. For example, you can implement employee training programs to prevent theft or malpractice, or you can invest in insurance to protect your business from liability claims.

By protecting your business from potential risks, you can increase your chances of success and longevity. And you can show lenders, investors, and regulators that you have considered the risks and developed the right strategies if they arise.

7. Marketing and PR

As home health care demand rises competion is bound to rise with it—especially if you plan to operate in an urban area where consumers are more likely to have multiple options. As part of your plan you need to not only take your competitors into account but outline how you will raise awareness and attract customers.

Some strategies to consider include:

• Creating a website or online portfolio that showcases your services and provides potential clients with your contact information.
• Using social media platforms to communicate directly with clients, and keep them informed about your services and any special offers.
• Investing in advertising by targeting your ideal clients through print or digital media.
• Partnering with other businesses, such as senior centers, to expand your reach and offer added value.
• You can also consider hiring a PR consultant, but make sure they have experience with home health care businesses or similar industries.
• Download a free home health care business plan template and example

To help get you started on your home health care business, check out our free home health care business plan template . You can download this document in Word form and use it as a foundation for your own business plan.

In addition to these resources, you may want to brush up on how to write specific sections of a traditional business plan. If so, take a look at our step-by-step guide on how to write a business plan .

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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A Sample Residential Assisted Living Business Plan Template

Residential assisted living facilities are created for people who are independent but require day-to-day assistance to be able to carry out basic tasks such as taking their medications, bathing, feeding themselves amongst others. It is important to state that people in licensed residential care may require more assistance daily as they usually have complex health care needs.

Available statistics made available by the NCAL show that today there are over 30,000 assisted living communities with one million licensed beds. The average number of licensed beds within these communities is 33, but the largest facilities can have upwards of 100 beds, while the smallest have as little as four to ten.

The average age of assisted living residents is 84. Though most facilities allow patients as young as 65, 52 percent of residents are over 85 and 30 percent are between 75 and 84.

Steps on How to Write a Residential Assisted Living Business Plan

1. executive summary.

Golden Care® Residential Assisted Living, Inc. is a standard residential assisted living facility that will be based in San Diego, California. The organization will be committed to providing a senior housing option in which residents will receive assistance with activities of daily life in a comfortable, home-like environment.

Our residents will be encouraged to maintain the highest level of independence possible and they will be trained not to need the level of care provided by a skilled nursing facility. Sis. Mary Alphonsus is the founder and CEO of Golden Care® Residential Assisted Living, Inc.

Company Profile

A. our services.

Golden Care® Residential Assisted Living, Inc. will provide a range of assistance to our residents so that they will be able to carry out basic everyday tasks such as taking their medications, bathing, feeding themselves amongst others.

Our services are designed to help our residents live their normal life despite their sickness or the condition of their health.

b. Nature of the Business

Our Residential Assisted Living facility will operate as a nonprofit organization, we will source finance from donor organizations, individuals, and relevant government agencies. In some cases, we will charge residents or their families for the services rendered, but we are designed not to make profits.

c. The Industry

Golden Care® Residential Assisted Living, Inc. will operate under the Assisted Living Facility industry.

d. Mission Statement

Our mission is to provide comfortable, safe, and secure facilities that will help adults and people with disabilities to live and enjoy an independent life in a safe environment.

e. Vision Statement

Our vision is to become the best residential assisted living facility in the whole of California. We will continue to set the standard for players in the Assisted Living Facility industry in the United States of America.

f. Our Tagline (Slogan)

Golden Care® Residential Assisted Living, Inc. – A Family and Home You Can Trust!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Golden Care® Residential Assisted Living, Inc. will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.

h. Our Organizational Structure

• Head of Residential Assisted Living (President)
• Assisted Living Administrator
• Medication Management Counselors
• Nurse’s Aides
• Home Health Caregivers/Home Caregivers/County Aging Workers Fundraiser
• Account Officer
• Front Desk Officer
• Security Guards

i. Ownership/Shareholder Structure and Board Members

• Mary Alphonsus (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Rhoda James (Board Member) 13 Percent Shares
• Fr. Philips Linus (Board Member) 10 Percent Shares
• Fr. Peter Shadrack (Board Member) 10 Percent Shares
• Bridgette Roderick (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for a residential assisted living facility
• Highly Experienced and Qualified Employees and Management
• Access to Pool of Donor Organizations
• Highly Secured, Clean and Well-structured Facility
• Easy Access to Critical Medications, Drugs, and Other Supplies

b. Weakness

• Budget Limitations
• Lack of Customized Software
• Inability to initially run and manage the organization without the support of donations and grants
• Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• San Diego, California has loads of aging population.
• The government of California gives support to organizations like ours
• Finance from donor organizations, individuals, and relevant government agencies et al.

i. How Big is the Industry?

The Assisted Living Facility industry is worth over $33 billion in the United States and there are about 20,855 licensed and registered residential assisted livings with a workforce of about 506,551 scattered all across the United States. Please note that currently, around one million Americans live in some type of senior living community, and that number is expected to double by the year 2030.

ii. Is the Industry Growing or Declining?

The assisted living facility industry is growing. As the baby boomer generation continues to enter retirement age, demand for senior care services has surged. Available data shows that by the year 2040, the 85+ population is expected to triple from the 5.7 million there were in 2011 to 14.1 million.

iii. What are the Future Trends in the Industry

The Assisted Living Facility industry is changing, and players in the industry are improvising. No doubt, robotic technology, and specialized software will change the landscape of the Assisted Living Facility industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

Yes, there are niche ideas in the Assisted Living Facility industry, and here are some of them;

• Continuing care retirement communities
• Assisted living facilities and homes for the elderly
• Independent-living facilities

v. Can You Sell a Franchise of your Business in the Future?

Golden Care® Residential Assisted Living, Inc. has plans of selling franchises in the nearest future and we will target major cities that have fast-growing aging populations in the United States of America.

• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance
• Liability problems
• Continuously changing consumer demands

i. Who are the Major Competitors?

• Harbor House Assisted Living
• Golden Living Assisting Hands
• Assisted Living Concepts Inc
• Assisting Hands Home Care
• HCR ManorCare
• Brookdale Senior Living, Inc
• Brotoloc Health Care Systems Inc
• Tutera Senior Living & Health Care
• Keystone Senior Management Services
• Volunteers of America National Services
• Evangelical Lutheran Good Samaritan Society
• Life Care Centers of America
• Capitol Senior Living
• National Healthcare Corp.
• 5 Star Quality Care
• Benedictine Health System
• Hospice care
• Genesis HealthCare Corp
• Senior Lifestyle Corporation
• Sunrise Senior Living, Inc.

ii. Is There a Franchise for Residential Assisted Living? If YES, List them and their cost

• Assisting Hands Home Care (Initial Investment – $77,050 – $149,000)
• BeeHive Homes Assisted Living (Investment Range – $250,000 – $1,000,000)
• Accessible Home Health Care (Minimum Cash Required – $100,000)
• Acti-Kare Responsive In-Home Care (Minimum Cash Required – $30,000)
• BrightStar Care® (Initial Investment – $93,048 – $154,307)
• Golden Heart Senior Care (Minimum Cash Required – $45,000)
• Amada Senior Care (Initial Investment – Low – $85,010 / High – $178,154)
• Always Best Care (Minimum Cash Required – $60,000)
• Options For Senior America (Minimum Cash Required – $50,000)
• A Place at Home (Minimum Cash Required – $100,000)

iii. Are There Policies, Regulations, or Zoning Laws Affecting Residential Assisted Living facilities?

Yes, there are county or state regulations or zoning laws for Residential Assisted Living facilities. The law in the United States states that before a non-medical home care facility such as Residential Assisted Living can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week.

So also, a standard Residential Assisted Living is expected to have a qualified assisted living administrator, night manager, and 2 or more caregivers depending on the size of the facility.

Marketing Plan

A. who is your target audience.

i. Age range

Our target market falls within 65 years and older.

ii. Level of Educational

We don’t have any restriction on the level of education of those we will accommodate in our residential assisted living.

iii. Income Level

We don’t have any cap on the income level of those we will accommodate in our residential assisted living. Besides, most people who are admitted to residential assisted living have no source of income.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome to our residential assisted living.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome into our residential assisted living.

vi. Geographical Location

Residents from any geographical location will be welcomed in our residential assisted living.

vii. Lifestyle

Golden Care® Residential Assisted Living, Inc. will not restrict anyone from accessing our services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Build a Referral Network.
• Tap Into Text Marketing.
• Create a call to action that rocks.
• Create landing pages that convert.
• Turn our Social Media Channels Into a Resource
• Develop our Business Directory Profiles
• Promote our residential assisted living through multiple channels
• Build Relationships with Other Nonprofits and related organizations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for customers.
• Create an efficient content marketing strategy.
• Create a community for our audience (people age 65 and older).
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Golden Care® Residential Assisted Living, Inc. will make sure it covers upkeep, medications, premium, economy or value, and full care package for each resident in our facility, In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charity to help refer residents to us.

Golden Care® Residential Assisted Living, Inc. will also leverage the 4 Ps of marketing which are the place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our customers.

b. Inventory Strategy

The fact that we will need toiletries, disinfectants, sanitizers, hand gloves, medications, and foodstuffs means that Golden Care® Residential Assisted Living, Inc. will operate an inventory strategy for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

Golden Care® Residential Assisted Living, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Golden Care® Residential Assisted Living, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Golden Care® Residential Assisted Living, Inc., we offer services, and the nature of the services we offer does not accommodate return policy and incentives, but we guarantee our residents that they will get maximum assistants that will help them carry out their daily activities without any hindrance.

e. Customer Support Strategy

Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to our residents, it will help us to first understand their needs, experiences, and pain points. We will work with an effective CRM software to achieve this.

Operational Plan

Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.

Overall, we plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and using fundraising strategies that will help the firm to boost our service offerings and to support revenue growth.

a. What Happens During a Typical Day at a Residential Assisted Living?

Residential assisted living means that the workers are supposed to reside in the facility and their typical day-to-day activities revolve around the facility. Our day starts by;

• Helping residents get into/out of bed or chair.
• Helping residents with toilet hygiene.
• Helping residents with Bathing or Showering.
• Helping residents with Getting Dressed.
• Helping residents with Personal hygiene.
• Helping residents with feeding and taking medications.
• Assist residents in Walking/Climbing Stairs.
• Be available to carry out safety and emergency responses when required.

b. Production Process (If Any)

There is no production process when it comes to Residential Assisted Living.

c. Service Procedure (If Any)

The services procedure for a residential assisted living facility is geared towards assisting and teaching skills required to manage one’s basic physical needs, including personal hygiene or grooming, dressing, toileting, transferring or ambulating, bladder control, toilet use, transfers (bed to chair and back), mobility on level surfaces, feeding, and bathing.

d. The Supply Chain

Golden Care® Residential Assisted Living, Inc. will rely on hospitals, religious organizations, and government agencies in our city to refer residents to us. So also, we have been able to establish business relationships with wholesale supplies of toiletries, disinfectants, sanitizer, hand gloves, medications, and foodstuffs et al.

e. Sources of Income

Golden Care® Residential Assisted Living, Inc. will make money from;

• Fees paid by residents or from Medicare
• Contributions for partners and donors
• Grants from government agencies and charity organizations
• Community support.

Please note that a report released by Genworth Financial shows that the average cost of assisted living in 2020 was $4,300 per month. So also, a report published by the National Center for Assisted Living shows that the median cost for assisted living in the United States is about $4,300 per month or $51,600 annually.

Financial Plan

A. amount needed to start your residential assisted living.

Golden Care® Residential Assisted Living, Inc. would need an estimate of $450,000 to successfully set up our residential assisted living in the United States of America. Please note that this amount includes the salaries of all staff for the first month of operation.

b. What are the Cost Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $250,000.
• Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $40,000
• start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Website: $600
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much will it cost?

Golden Care® Residential Assisted Living, Inc. will not build a new facility for our residential assisted living; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Residential Assisted Living?

• Cost of stocking up supplies such as medications, toiletries, disinfectants, sanitizer, hand gloves and beddings et al
• Cost of food supplies and ingredients
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff? List the Job Position and their proposed salary based on industry rate and your startup capital

• Head of Residential Assisted Living (President) – $45,000 Per Annum
• Assisted Living Administrator – $36,034 Per Annum
• Medication Management Counselors – $35,600 Per Annum
• Nurse’s Aides – $30,660 Per Annum
• Home Health Caregivers/Home Caregivers / County Aging Workers – $32,878 Per Annum
• Fundraiser – $36,500 Per Annum and based on target
• Account Officer – $35,000 Per Annum
• Front Desk Officer – $28,000 Per Annum
• Cleaners – $22,000 Per Annum
• Security Guard – $22,000 Per Annum

f. How Do You Get Funding to Start a Residential Assisted Living

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
• Source for soft loans from your family members and your friends.

Financial Projection

A. how much should you charge for your service.

At Golden Care® Residential Assisted Living, Inc., our monthly fees for independent living will be $4,315 for assisted living and $5,779 for memory care.

But it is important to note that at Golden Care® Residential Assisted Living, Inc., most of the fees charged our residents are paid by our donors, participating providers, and communities, so we will offer our residents a completely cost-free service with no hidden fees.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $450,000
• Third Fiscal Year (FY3): $550,000

c. Estimated Profit You Will Make a Year?

Golden Care® Residential Assisted Living, Inc. will operate as a nonprofit organization.

d. Profit Margin of a Residential Assisted Living 

Golden Care® Residential Assisted Living, Inc. is designed not to make profits hence we don’t have a profit margin for our services.

Growth Plan

Golden Care® Residential Assisted Living, Inc. will grow by first opening other outlets in key cities in the United States of America within the first five years of establishing the business. We will start selling franchises from the sixth year.

Golden Care® Residential Assisted Living, Inc. plans to expand first to other cities in California, and then to Florida and Texas.

The reason we intend to expand to these geographic locations is that available statistics show that the cities listed above have the highest number of aging people. About 52 million Americans are age 65 or older, according to the Census Bureau’s 2018 population estimates. One-quarter of these older Americans live in one of three states: California, Florida, and Texas.

The founder of Golden Care® Residential Assisted Living, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the management of the company can be placed under a trusted hand when the founder retires.

The goal of combining two or more charitable organizations that are into assisted living on a global scale is to try and achieve synergy – where the whole (the new company) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team and board of trustee.

More on Assisted Living

Nursing Home Business Plan Template

Written by Dave Lavinsky

Nursing Home Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their nursing homes. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a nursing home business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your nursing homes as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a nursing homes, or grow your existing nursing homes, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your nursing facilities in order to improve your chances of success. Your nursing home business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Nursing Home Businesses

With regards to funding, the main sources of funding for a nursing homes are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for nursing homes.

Finish Your Business Plan Today!

How to write a business plan for a nursing home.

If you want to start a nursing home or expand your current one, you need a business plan. Below we detail a sample of what should be included in each section of a business plan for a nursing home.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of nursing homes you are operating and the status. For example, are you a startup, do you have nursing homes that you would like to grow, or are you operating nursing facilities in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the senior care industry. Discuss the type of nursing homes you are operating. Detail your direct competitors. Give an overview of your target market. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of nursing homes you are operating.

For example, you might operate one of the following types of nursing homes:

• Skilled Nursing Care Facilities : this type of nursing home provides skilled nursing care, rehabilitation, activities, meals, supervision, etc.
• Assisted Living Facilities: this type of nursing home provides 24-hour supervision, including meals, assistance with daily activities, healthcare service, and common services that include assistance with eating, bathing, dressing, using the bathroom, taking medication, transportation, and housekeeping.
• Independent Living Facilities: this type of nursing home are communities that offer fully equipped homes or apartments to residents. They are ideal for seniors who can maintain their independence with few medical issues impeding them.
• Alzheimer’s & Specialty Care Facilities : this type of nursing home offers 24-hour support for residents suffering from Alzheimer’s or dementia.

In addition to explaining the type of nursing facility you will operate, the Company Analysis section needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of patients in care, number of positive reviews, reaching X amount of patients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the nursing home industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the senior care industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the senior care industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your nursing homes? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: elderly and aging adults, retirees, those suffering from Alzheimer’s or dementia, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of business you operate. Clearly, Alzheimer’s or dementia patients would respond to different marketing promotions than recent retirees, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other nursing homes.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes rehabilitation facilities, adult daycare programs, family of the aging adult, etc. You need to mention such competition as well.

With regards to direct competition, you want to describe the other nursing homes with which you compete. Most likely, your direct competitors will be nursing homes located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of elderly care do they provide?
• What type of nursing home are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide exercise and activities for the elderly?
• Will you provide services that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a residential care home business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of nursing home company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to a nursing home, will you provide nutritional advice and meal preparation, daily activities, rehabilitation, and any other services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your nursing home company. Document your location and mention how the location will impact your success. For example, is your nursing homes located in a busy retail district, a residential neighborhood, near a hospital, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your nursing home marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to websites
• Partnering with hospitals and rehab facilities
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your nursing homes, including coordinating nurses’ patient schedules, coordinating with doctors, communicating with family and loved ones of the elderly, managing staff duties, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your nursing homes to a new city.  

Management Team

To demonstrate your nursing homes’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing nursing homes. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a nursing home or successfully running a hospital or rehabilitation facility .  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.  

Income Statement

: an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you take on one new patient at a time or multiple new patients ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.  

Balance Sheets

: Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your nursing homes, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.  

Cash Flow Statement

: Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a nursing homes:

• Cost of licensing and training
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your nursing home location lease or list of nursing, assisted living, and rehab services you are working on.  

Putting together a business plan for your nursing home is a worthwhile endeavor. If you follow the sample template above, by the time you are done, you will truly be an expert. You will really understand the senior care industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful nursing homes.  

Nursing Home Business Plan FAQs

What is the easiest way to complete my nursing home business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Nursing Home Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of nursing home you are operating and the status; for example, are you a startup, do you have a nursing home that you would like to grow, or are you operating a chain of nursing homes?

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Nursing Home Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful nursing home. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your nursing home’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a nursing home business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your nursing home concept into reality. Let’s dive in!

Our nursing home business plan is crafted to include all vital elements necessary for a detailed strategy. It outlines the home’s operations, marketing tactics, market dynamics, competitors, management team, and financial outlook.

• Executive Summary : Offers an overview of the Nursing Home’s business concept, highlighting its commitment to providing comprehensive care for the elderly, market analysis underscoring the growing demand for eldercare services, a skilled management team, and a financial strategy aimed at ensuring sustainability and growth.
• Facility & Location: Describes the Nursing Home’s design, amenities for resident comfort and well-being, and the strategic location chosen for accessibility and its appeal to potential residents and their families.
• Rooms, Medical Care & Recreational Activities: Lists the variety of accommodations and medical care services available, along with recreational activities designed to enrich the lives of residents.
• Key Stats: Discusses the industry’s size, growth trends, and the significant demand for nursing home facilities, emphasizing the aging population and their care needs.
• Key Trends: Highlights the technological advancements in eldercare, shifts towards personalized care plans, and the importance of holistic wellness programs.
• Key Competitors : Analyzes the main competitors in the vicinity, noting how the Nursing Home distinguishes itself through its comprehensive care approach, modern facilities, and focus on creating a vibrant community for residents.
• SWOT: A detailed Strengths, Weaknesses, Opportunities, and Threats analysis, tailored to the Nursing Home’s context, to inform strategic planning.
• Marketing Plan : A comprehensive strategy for promoting the Nursing Home’s services, including community outreach, partnerships with healthcare providers, and engagement strategies to build trust and reputation.
• Timeline : Sets key milestones and objectives from the planning stage through the first year of operation, including facility construction, staff recruitment, and service launch.
• Management: Provides information on the Nursing Home’s management team, detailing the roles, qualifications, and expertise of key personnel, emphasizing their ability to lead the facility toward achieving its care and service goals.
• Financial Plan: Projects the Nursing Home’s 5-year financial performance, including detailed forecasts of revenue from accommodation and care services, projected expenses, and profitability analysis to demonstrate the facility’s potential for financial success and operational sustainability.

Nursing Home Business Plan

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Executive Summary

The Executive Summary introduces your nursing home’s business plan, offering a concise overview of your facility and its services. It should detail your market positioning, the range of care and support services you offer, its location, size, and an outline of day-to-day operations.

This section should also explore how your nursing home will integrate into the local community, including the number of direct competitors within the area, identifying who they are, along with your nursing home’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the nursing home’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your nursing home’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a nursing home, the Business Overview section can be concisely divided into 2 main slides:

Facility & Location

Briefly describe the nursing home’s physical environment, emphasizing its design, safety, comfort, and the overall atmosphere that welcomes residents and their families.

Mention the nursing home’s location, highlighting its accessibility and the convenience it offers to residents and their visitors, such as proximity to medical facilities or ease of access for family visits. Explain why this location is advantageous in providing a serene and supportive environment for your target residents.

Rooms, Medical Care & Recreational Activities

Detail the range of care and support services offered, from basic assistance with daily activities to specialized medical and therapeutic services like rehabilitation, dementia care, or palliative support.

Outline your pricing strategy , ensuring it reflects the quality of care provided and matches the needs of the market you’re targeting. Highlight any inclusive services, membership deals, or programs that provide added value to your residents, promoting long-term stays and enhancing resident and family satisfaction.

Make sure to cover here _ Facility & Location _ Rooms, Medical Care & Recreational Activities

Market Overview

Industry size & growth.

In the Market Overview of your nursing home business plan, start by examining the size of the elder care industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Proceed to discuss recent market trends , such as the increasing consumer interest in personalized elder care services, wellness programs, and the integration of technology in resident care. For example, highlight the demand for services that cater to specific health needs and preferences, alongside the rising popularity of facilities that offer a more homelike environment.

Key competitors

Then, consider the competitive landscape, which includes a range of nursing homes from luxury facilities to budget-friendly options, as well as alternative senior living solutions like assisted living communities and home care services. For example, emphasize what makes your nursing home distinctive, whether it’s through exceptional resident care, a comprehensive range of healthcare services, or specialization in certain areas like memory care or rehabilitation. This section will help articulate the demand for nursing home services, the competitive environment, and how your facility is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for the nursing home, highlighting Strengths (such as comprehensive care services and dedicated healthcare staff), Weaknesses (including potential regulatory challenges or the high costs of specialized care equipment), Opportunities (for example, an aging population increasing demand for elder care services), and Threats (such as changes in healthcare policies that may affect funding or operational costs).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract residents and reassure their families through targeted advertising, informational open houses, a reassuring and professional web presence, and community involvement to build trust and recognition.

Finally, create a detailed timeline that outlines critical milestones for the nursing home’s opening, marketing efforts, resident recruitment, staff training, and quality assurance measures, ensuring the business moves forward with clear direction and purpose.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the nursing home’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the nursing home towards its financial and operational goals.

For your nursing home business plan, list the core team members, their specific responsibilities, and how their expertise supports the nursing home’s mission.

Financial Plan

The Financial Plan section is a comprehensive analysis of the nursing home’s financial strategy, including projections for revenue, expenses, and profitability. It lays out the nursing home’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs , and capital expenditures.

For your nursing home business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. pricing strategies for memberships and services, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Board and Care Homes – Learn How To Select The Best

Board and care homes are smaller facilities, accommodating between 3 and 40 residences. They are called by various names, including care homes, residential care homes, and personal care homes. But they all provide a very basic and needed service: care for seniors in a home-like setting.

Most Board And Care Facilities Are In Residential Neighborhoods

Most board and care homes are located in residential neighborhoods and are converted single-family homes. The conversion involves retrofitting and remodeling to create multi-unit facilities. Some of these may only have the ability to care for three or four residents, whereas others can care for 20-30. Some facilities are more like hotels or apartment buildings and can accommodate 30+ residents. But overall, board and care facilities are smaller, more residential like and house fewer residents than ALRs. It is uncommon for a care home to offer services for more than 10 seniors, which helps create a more personal, home-style living environment.

Regulatory Requirements

Regulatory requirements differ by state. For example, in some states, residential care facilities may be regulated like assisted living facilities. In other states, they may be unregulated. Regardless, you should always get a facility’s state license and contact your state’s licensing authority for clarification on the license type, level of care, and the services provided by the facility you are investigating.

What Makes Board And Care Homes Popular

Board and care facilities are small, usually under ten residents. The small size allows them to target niche groups or provide a special level of care for one or two of the home’s residents. For example, residents who don’t meet the criteria for nursing home placement and lack funds for assisted living may find they can afford a board and care home. It can also be a good choice for residents who have mental health disorders. Assisted living facilities often reject residents with mental health issues because they consider them dangerous to the rest of the community. A board and care home may better be able to address this concern.

How To Find Board And Care Homes

Board and care homes are small. Some only house four or five residents. They don’t make a lot of money and often don’t have advertising budgets. Yet the best ones are always full. They operate by word of mouth and waiting lists. If this type of living arrangement interests you, the best way to identify these homes is to find one and seek advice.

Carmen and I also recommend you create two profiles or two people with different needs. This will allow you to see how the board and care address’s your inquiry. I like to describe two seniors, so I get a thorough idea of how the owner deals with residents of very different abilities. For example, I might describe a sixty-eight senior who likes socializing with roommates and needs help with cleaning, laundry, and meals. And a second senior that’s eighty that has some dementia and needs help with cleaning, laundry, meals, showers, medication reminders, and wander monitoring. This was the description we used for a parent. The two differing capabilities reflected the current state and what we believed might be the state fifteen years down the road.

From a care perspective, these are very different seniors. A board and care facility is not likely to cater to both. But an experienced owner whose been in the neighborhood for a long time will know other facilities that address care levels they don’t.

How To Evaluate Board And Care Homes

The small size and number of housed residents in a board and care facility mean the residents often shape the care scope and feel of the house. The only way to discover a facility’s current feel and capabilities is to visit. If you have a little money, another technique is to hire a small (one or two-person), local (to the area you’re considering) that’s been in business for five or more years, senior assessment and placement firm. These small, local firms know the area, often deal with board and care facilities, and know their track record and current owners.

Pay Attention To Resident Composition

Many seniors are attracted to board and care facilities because they offer similar services to larger assisted living facilities at lower prices. However, because they are largely unregulated, what they promise to deliver and what they actually deliver can be very different. They don’t face derogatory ratings from government regulators. They also tend to align their residents with their services. That means they may provide great services to a group of residents that share similar care needs but would have trouble addressing the need of a different class of residents. The best ones have the same staff year after year. The worst ones often have high staff turnover. If your facility is small and uses only a few caregivers, losing one key employee can immediately affect the quality and continuity of service.

In general, 24/7 caregiver support is not provided. It is usually too expensive. Instead, some board and care facilities maintain a person on premises 24/7, but whether that person can sufficiently attend to all the residents’ needs can only be assessed on a case by case basis.

States, faith-based organizations, and private donors are becoming increasingly aware of these facilities and occasionally provide grants and financial support.

Common Services And Amenities

Services generally include:

• Medication management
• 1-to-3 daily, home-cooked meals
• Housekeeping and laundry service
• Private or semi-private rooms
• Social programs and activities
• Transportation to doctor’s appointments

Care homes offer food services and assistance with daily living but do not typically have a medical professional on-site. It’s not a primary focus of this type of community.

Deciding On What Board And Care Home Is Right For You

Do the following once you’ve identified a few board and care facilities that meet your general criteria (location, services, price).

Visit The Facility

Visit the facility a couple of times (i.e., weekday, weekend, day, night). This allows you to see the facility staffed by different people. We don’t recommend spending a few nights at the facility unless the owners encourage you to do so. When a senior moves, it can be very traumatic. Most seniors that move, especially from a location where they’ve lived for a few years, will not like the new facility. So a two or three-day trial period usually results in a disaster. The better alternative is to build a two or three-month out clause into the lease. This is when you put a clause into a lease allowing the new resident to leave with minimal penalties after a few months. Seniors can adjust to a new home, but it usually takes a couple of months.

Get And Review The Rental or Lease Agreement

Get a copy of the rental agreement and read it closely. Pay close attention to the following paragraphs (issues).

• See our premium content section here for detailed senior facility evaluation guides.
• Term (How long is the lease. Does the lease, or can it be, automatically renewed? What are renewal terms? Often the lease can renew but only at the then-current rates. Can the initial term be extended or modified?)
• Termination (How can the lease be terminated? Can a resident’s decline in physical or cognitive capabilities result in termination?)
• Price (What is the rent? Are there additional or other fees? How are additional or other fees handled? Can they be changed anytime? Are they outside the lease?)
• Liability (What is the resident liable for? Does the resident need renters insurance? Is the facility liable for anything?)
• Safety (Is the facility obligated in the lease to maintain any safety protocols?)
• Pets (What are the pet rules?)
• Use of premises (How can the room be used? Can a guest spend the night? How many nights?)

Build A Pro/Con Comparative Worksheet

It’s important to build a comparison chart for deciding among alternatives. You can get ours here. Making a serious mistake in selecting a board and care facility can result in a loss of thousands of dollars, bad move experiences, and unnecessary disagreements with home owners and managers.

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