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How To Start a Residential Assisted Living Home

There is a rapid rise in the need for assisted living homes, and that need will only continue to grow. For individuals who are at all interested in starting your own RAL home, this article will be a great guide. At the beginning stages, when your interest is initially sparked, it’s normal to have a lot of questions. We’ve condensed this content in order to give readers a brief introduction to the industry. The reason most seniors go to assisted living facilities is because they can’t completely take care of themselves and need help, especially with activities of daily living. They may need help getting dressed, eating or preparing food, bathing or maybe even using the toilet. Even though they may need help in certain areas, residents who are physically able can still come and go as they please. 

It can be costly staying at an assisted living home, but not as expensive as living in a nursing home. It is not cheap to get started with an assisted living home. 

It requires a large amount of money and reading articles like this to find out the best steps to take. The following pointers and seven steps are highlighted as need-to-know information to get started in the residential assisted living industry.

A Summary Of Steps For Getting Started From Scratch

• Acquire Land and A Home

You will need to acquire land and a house for your RAL home. You will also need to secure the proper financing for such a major project. 

• Contract a Real Estate Agent

Find a real estate agent that knows local zoning laws.

• Hire an Architect and Building Contractors

Hire your own architect that both understands all the rules and regulations pertaining to designing such a home, according to legal code. 

• Apply for Permits 

Make sure to apply for all the state and commercial building permits.

• Hiring the Right People and Using the Right Products 

Only hire experienced personnel and make sure the materials used meet all federal and state standards. 

• Secure the Necessary License 

Get the various licenses you need. All of this can be done while the home is actually being built or remodeled.

• Purchase Furniture

Be sure to get all the furniture you will need throughout your RAL home to make it as comfortable and convenient as possible. 

• Plan for Marketing and Advertising

Word of mouth is the best advertising. Hold an open house to show off your new facility. Even with these suggestions, you’ll have a long way to go to maximize your opportunity in the assisted living industry. These seven steps are only a brief summary of the work and planning involved with starting a residential assisted living home. So much more information and advice is needed in order to be successful. This is why the Residential Assisted Living Academy offers a 3-day accelerated course that has helped hundreds of existing owners and operators gain success, as well as novice entrepreneurs getting started for the first time. Eight of the most frequently questioned first steps for investing, owning and operating a RAL home are as follows: 

• Business Plan 
• Form A Legal Entity 
• Register For Taxes
• Open A Business Bank Account 
• Secure Necessary License And Insurance 
• Define Your Brand 
• Market & Establish An Online Presence 

Seven Steps To Starting An Assisted Living Home 

Do you have a great RAL business idea, you’re ready for the next step, but don’t know how to get started?  There’s a lot of work that goes into starting a business. Here are seven steps that will help you make sure your business is well planned, properly registered and in legal compliance. 

Step 1: Business Plan

Every entrepreneur needs a clear plan for success. Mapping out the specifics in your business plan can expose some unknowns. Four questions to keep in mind are:

• What are the startup expenses and ongoing cost? 
• What will the name of your business be? 
• How long will it take to earn what you spent to launch your business? 
• Who is your target market? 

The Money Involved In Opening An Assisted Living Home

You can always lease an existing home, but keep your options open for a purchase or building from the ground up. Other additional costs may include utilities, wages, internet, security cameras, computer hardware, bedding, medical equipment, food and drinks for the residents. You may also decide to purchase software that is designed to reduce the challenges caregivers face working in assisted living. These expenses will make your operation run more efficiently. 

Ongoing RAL Operational Expenses

Some of the ongoing expenses are employee wages, utilities, internet, insurance, supplies and funds owed for the property itself. A state manager for one of these facilities will likely demand a salary between $35,000 and $75,000. A marketing director will be needed, if you don’t do your own advertising. Marketing directors could cost anywhere from $40,000 to $70,000 per year. Your caregivers and kitchen staff may run you about $10 and $15 per hour, usually caregivers are paid minimum wage plus a few dollars, depending on experience. The cost of food all depends on what quality of food you provide. The size of your facility usually determines your utility cost. Things like medical supplies and bedding must be replaced as needed. You will probably spend close to $500 to $1,000 per month on supplies. Adjust your budget accordingly to better gauge your clientele’s needs and demands. 

Your Target Market

Your goal should be to house as many residents as your RAL home can reasonably, safely and comfortably accommodate. The younger the patient the more ideal, because they are more likely to live longer and stay in your home longer. An extended stay in a RAL home is a consistent source of income. 

How Will You Make Money? 

Residential assisted Living homes make money by charging all residents a monthly fee to live there, usually starting at $3,650 for a quality care home, and depending on service, location and amenities could be as high as $7,000 to $8,000.

How Much Profit Can Be Made?

It depends on the size, what it offers and occupancy. If you have a huge home with top notch service and amenities, profits have the potential to sky rocket. If you build a brand and decide to open other homes, you could very well make millions in profit. It is all down to the planning, execution and management of your RAL business . There are a few things you could consider when thinking of ways to see more profit at your facility. Try offering auxiliary services on site. Charge residents additional fees for optional services like cable TV packages, dining options, on site entertainment, specialized care, and other unique services. If your facility reaches full capacity, it’s possible to get financial kickbacks by referring people to other available facilities. 

What Name Will You Choose For Your Business?

It is a good idea to check to see if the name you are considering is available as a web domain. If so, secure it before the name is taken. After getting your domain name established, you should definitely consider creating a professional online presence. 

Step 2: Form A Legal Entity

Creating a LLC helps to prevent you from being personally held responsible for lawsuits. There are a few business structure options to choose from, such as, corporations, LLC’s, and DBA’s. A registered agent service could also help protect your privacy and ability to stay compliant. LLC’s are easy to register yourself. This is the route most small businesses go. 

Step 3: Register For Taxes

There are a variety of both federal and state taxes that  need to be registered before you can open a business. In order for you to properly register for tax purposes, you first need to apply for an EIN. This is a simple and easy process – it is also free. Just go to the IRS website. 

Step 4: Open A Business Bank Account

A business banking and credit account is essential for personal asset protection. When you mix your business accounts with your personal accounts, you put yourself at risk, especially if your business is ever in a lawsuit. This is for your personal protection, and it also helps businesses to stay organized, which makes accounting and tax filing much easier. Keep an accurate and detailed account of all your expenses. Understanding the financial workings of your business is critical. Always record your various expenses and sources of income. This also simplifies filing your taxes. 

Step 5: Secure Necessary License and Insurance 

Without the proper permits and licenses, you are subject to hefty fines, or even getting your business shut down. A good source to learn more about licenses requirements in your state is by visiting SBA’s reference to state licenses and permits. Assisted living homes usually operate based on zoning laws, building codes, and government regulations. It’s usually the landlord’s responsibility to obtain a certificate of occupancy. After completing major renovations, a new certificate of occupancy is usually needed. Also, all business owners and operators should have insurance – it is imperative. Workers compensation insurance may be a legal requirement in your state when you hire employees.

Step 6: Define Your Brand

Your brand is what your company stands for and how you want the public to perceive you. A strong brand can help set your business apart from your competitors. Your current residents may be your biggest asset, so use word of mouth wisely to promote your RAL home. Advertising your facility in local newspapers, magazines, radio spots, and TV ads can also prove useful, depending on your demographic. Having an online presence will accelerate the success of your business. Although a lot of seniors are not familiar with the internet, it is likely that their families will be. Bolster your search engine optimization to make it easier for your business to be found online.

Step 7: Market & Establish An Online Presence

A detailed and professional business website allows customers to learn more about your RAL business at the convenience of their fingertips. Social media is also a great tool to use to attract more residents and their family members.

The Ral Academy Makes The Process Easier

There are so many more details that owners and operators need to learn beyond this introduction and 7 steps. The Residential Assisted Living Academy is an assisted living education company that teaches everything from A-Z about meeting the rising demand for senior housing. Gene Guarino, founder of the Residential Assisted Living Academy (RALA), is an American businessman and author. He operates through a number of companies that he owns, which includes Family Legacy Homes, Residential Assisted Living (RAL) National Association, and Pitch Masters. Guarino’s 3-day accelerated RAL course empowers students to achieve true financial independence. He owns and operates his own RAL homes and has students across the country that are also benefiting from this lucrative niche. The RAL Academy’s motto is “ Do Good and Do Well. ”Register today to attend the next 3-day course by clicking here, www.RALAcademy.com .

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Assisted Living Facility Business Plan Template

Written by Dave Lavinsky

Assisted Living Business Plan

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their assisted living facilities. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an assisted living business plan template step-by-step so you can create your plan today.

Download our Ultimate Assisted Living Business Plan Template here >

What Is an Assisted Living Business Plan?

A business plan provides a snapshot of your residential assisted living facility 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 for Your Assisted Living Facility

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

Sources of Funding for Assisted Living Facilities

With regards to funding, the main sources of funding for an assisted living facility 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 want to confirm that your financials are reasonable and see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for an assisted living facility is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a residential assisted living business. They might consider funding an assisted living facility with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

How to Write a Business Plan for a Residential Assisted Living Facility

If you want to start an assisted living facility or expand your current one, you need a business plan. Below we detail what should be included in each section of your residential assisted living business plan template:

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 facility you are operating and the status; for example, are you a new business, do you have an assisted living facility that you would like to grow, or are you operating a network of assisted living facilities?

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

Company Overview

In your company analysis, you will detail the type of assisted living facility you are operating.

For example, you might operate one of the following types of assisted living facilities:

• Residential living : this type of facility caters to seniors who need minimal assistance and can manage their daily routines without complex medical monitoring.
• Memory care : this type of facility specializes in helping seniors who live with Alzheimer’s disease or dementia.
• Rehabilitation : this type of facility caters to seniors who need physical, speech, or occupational therapy.

In addition to explaining the type of assisted living facility you will operate, the Company Analysis section of your business plan 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 occupancy goals you’ve reached, awards you’ve won, new buildings you’ve opened, 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 assisted living facility.

While this may seem unnecessary, it serves multiple purposes.

First, researching the assisted living facility 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 of your business plan:

• How big is the assisted living facility 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 assisted living facility. 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 of your assisted living business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: families of seniors requiring minimal to no care, families of seniors needing assistance with activities of daily living, and families of seniors needing memory care.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of assisted living facility you operate. Clearly, families of seniors requiring minimal care would want different services and would respond to different marketing promotions than families of seniors requiring memory care, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. Because most assisted living facilities primarily serve individuals living in the same city or town, such demographic information is easy to find on government websites.

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 assisted living facilities.

Indirect competitors are other options that seniors have to choose from that aren’t direct competitors. This includes 55+ retirement communities, residential home care services, or adult daycares. You need to mention such competition to show you understand that not every senior that needs assistance will choose an assisted living facility.

With regards to direct competition, you want to detail the other assisted living facilities with which you compete. Most likely, your direct competitors will be assisted living facilities 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 seniors do they target?
• What services do they offer?
• What types of living arrangements do they offer?
• What is their pricing?
• 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 the families of your competitors’ occupants 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 superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for people to join your facility?
• Will you offer more physical and social activities?
• 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 an assisted living business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of assisted living facility that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to standard services offered at an assisted living facility, will you provide exercise classes and equipment, on-site activities and events, transportation services, or pet accommodations?

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 assisted living facility. Document your location and mention how the location will impact your success. For example, is your assisted living facility located in a neighborhood, or near a hospital, etc. Discuss how your location might be beneficial for attracting customers.

Promotions : the final part of your assisted living facility 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 local websites
• Listing the business in targeted online directories
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan 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 assisted living facility, including housekeeping, medical care assistance, and meal services.

Long-term goals are the milestones you hope to achieve. These could include the dates when you reach an occupancy of 100, or when you hope to reach $X in revenue. It could also be when you expect to launch an assisted living facility in a new location.  

Management Team

To demonstrate your assisted living facility’s ability to succeed as a business, 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 working with seniors. 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 as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing assisted living facilities or successfully running small businesses.  

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.

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 have 10 residents or 60? 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 $100,000 on building out your assisted living facility, 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 $100,000, 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 residential assisted living business:

• Location build-out including design fees, construction, etc.
• Cost of equipment like assistive devices, security/surveillance, and medical 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 facility blueprint or location lease.  

Putting together a business plan for your assisted living facility is a worthwhile endeavor. If you follow the free template above, by the time you are done, you will have an expert business plan; download it to PDF to show banks and investors. You will really understand the assisted living facility 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 assisted living business.

Assisted Living Business Plan Template Download

You can download our assisted living business plan PDF to help you get started on your own business plan.

If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Assisted Living Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates all of your financial projections including income statements, balance sheets, and cash flow statements.

Don’t you wish there was a faster, easier way to finish your Assisted Living business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   See how a Growthink business planning advisor can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Assisted Living Facility Business Plan Template

Written by Dave Lavinsky

Assisted Living Facility Business Plan

You’ve come to the right place to create your assisted living facility 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 assisted living facilities.

Assisted Living Facility Business Plan Example

Below is a template to help you create each section of your sample residential care home business plan.

Executive Summary

Business overview.

Portland Village Assisted Living is a startup assisted living facility located in Portland, Oregon. The company is founded by James Martin, an experienced assisted living facility manager who has transformed the struggling PALF Oregon facility into a thriving assisted living business through efficient and strategic management decisions. Now that James has garnered a reputation for being a positive driver for change in the industry, he is ready to venture out with his new facility, Portland Village Assisted Living. James is confident that his experience and expertise in change management, problem solving, and policy implementation will quickly garner support for his new assisted living facility. James plans on recruiting a team of highly qualified professionals including registered nurses, activity directors, and maintenance staff to help manage the day to day complexities of assisted living.

Portland Village Assisted Living will provide a comprehensive array of services that will appeal to its target clientele of seniors living in the Portland area who are looking to get the most out of their assisted living experience. Portland Village Assisted Living will ensure that every need of the residents is being met. Portland Village Assisted Living will be the ultimate choice in Portland for assisted living while being the most reasonably priced facility for the services provided compared to other assisted living facilities in the area.

Product Offering

The following are the services that Portland Village Assisted Living will provide:

• Assistance with everyday living needs
• Dining program
• Emergency call systems and 24-hour onsite security
• Exercise, education, and recreation programs
• Health and wellness programs
• Housekeeping and laundry service
• Social and religious programs
• Transportation accommodations

Customer Focus

Portland Village Assisted Living will target all seniors over the age of 65 who need a little help with one or more daily activities such as bathing, dressing, or managing their medications. No matter the resident, Portland Village Assisted Living will deliver a caring, comfortable environment with a customer-first focus in every aspect of the facility.

Management Team

Portland Village Assisted Living will be owned and operated by James Martin. He recruited a Registered Nurse, Jessica Williams, to be the Nursing Director and help manage the day-to-day nursing needs of the residents.

James Martin is a graduate of the University of Oregon with a Master’s degree in Healthcare Management. He has been working at a local assisted living home for over a decade as an Administrator. James’s leadership and problem solving skills have allowed him to develop a reputation for driving positive change in the industry.

Jessica Williams has been a Registered Nurse and worked with James at the PALF Oregon facility for over ten years. James relies strongly on Jessica’s organization, expertise, and focus when caring for residents. Jessica has worked in the assisted living industry for so long, she understands all aspects required in managing the nursing needs of residents.

Success Factors

Portland Village Assisted Living will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of healthcare and management professionals that are able to effectively maintain a welcoming environment for all residents and staff.
• Comprehensive menu of services that allows for a resident to have all of their needs met. Portland Village Assisted Living takes care of everything from daily assistance and medication management to entertainment and dining programs. Portland Village Assisted Living has something for everyone with its extensive list of educational, social, and recreational activities available.
• Portland Village Assisted Living offers the best pricing for a facility with this level of comprehensive services.

Financial Highlights

Portland Village Assisted Living is seeking $1,000,000 in debt financing to launch the assisted living business. The funding will be dedicated towards a down payment to purchase the facility and new furnishings for the facility. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, working capital, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

• Down payment on facility: $500,000
• Furnishings and improvements for units and common areas: $150,000
• Three months of overhead expenses (payroll, supplies, utilities): $150,000
• Marketing costs: $100,000
• Working capital: $100,000

The following graph below outlines the pro forma financial projections for Portland Village Assisted Living.

Company Overview

Who is portland village assisted living.

Portland Village Assisted Living is a newly established assisted living facility in Portland, Oregon. Portland Village Assisted Living will be the most welcoming, affordable, and secure assisted living facility in the area. Portland Village Assisted Living will provide a comprehensive menu of assisted living services to suit the needs of any resident over the age of 65. Their customer-focused approach will include a wide range of activities available, 24/7 nursing staff, onsite security, and a customizable dining program.

Portland Village Assisted Living will be able to provide its residents with the best quality care in a friendly, supportive environment. The team of professionals are highly qualified and experienced in healthcare management, resident issues, and activity oversight. Portland Village Assisted Living handles all challenges of the residents and ensures all issues are taken care of expeditiously while delivering the best service.

Portland Village Assisted Living History

Portland Village Assisted Living is owned and operated by James Martin, an experienced assisted living facility manager who has transformed the struggling PALF Oregon facility into a thriving business through efficient and strategic management decisions. James is confident that his experience and expertise in change management, problem solving, and policy implementation will quickly garner support for his new assisted living facility. James plans on recruiting a team of highly qualified professionals including registered nurses, activity directors, and maintenance staff to help manage the day to day complexities of assisted living.

Since incorporation, Portland Village Assisted Living has achieved the following milestones:

• Registered Portland Village Assisted Living, LLC to transact business in the state of Oregon.
• Has negotiated the purchase of a 20 unit facility in a centrally located area that is close to multiple hospitals and healthcare facilities.
• Began recruiting a staff of activity directors, nurses, maintenance managers, and housekeepers to work at the facility.

Portland Village Assisted Living Services

Industry analysis.

The United States Assisted Living industry is currently valued at $87.4B and is expected to grow as much as 5.48% over the next eight years. The primary driver for market growth is the increasing number of senior citizens seeking assistance, companionship, and security that can be provided by assisted living facilities. The rise in the senior population due to a rise in life expectancy is forecast to grow rapidly in the coming years. Approximately 8.5% of the global population is 65 years old or above. The number of Americans ages 65 and older is projected to reach 95M by 2060.

Some of the key factors driving the U.S. assisted living facility market growth include a growing awareness and desire of seniors to age in home-based services and the lower cost of assisted living facilities versus nursing homes. There are currently around 30,000 facilities in the U.S. Approximately 800,000 seniors live in these assisted living facilities across the country. The average assisted living facility resident is between 76-82 years old with an average income of $50,000-$70,000.

Customer Analysis

Demographic profile of target market.

Portland Village Assisted Living will target all seniors over the age of 65 living in the Portland area who are looking to get the most out of their assisted living experience. Specifically, Portland Village Assisted Living will target seniors who need a little help with one or more daily activities such as bathing, dressing, or managing their medications. No matter the resident, Portland Village Assisted Living will deliver a caring, comfortable environment with a customer-first focus in every aspect of the facility.

The precise demographics for Portland, Oregon are:

Customer Segmentation

Portland Village Assisted Living will primarily target the following customer profiles:

• Men and women at least 65 years old who need help with only a few activities of daily living such as bathing or walking.
• Men and women at least 65 years old with high blood pressure.
• Men and women at least 65 years old with Alzheimer’s disease or other dementias.

Competitive Analysis

Direct and indirect competitors.

Portland Village Assisted Living will face competition from other assisted living facilities with similar business profiles. A description of each competitor facility is below.

PALF Oregon

PALF Oregon is an established assisted living facility in Portland, Oregon. This company operates an expansive assisted living facility with 24/7 nursing staff, an abundance of education and social activities provided throughout the day, and resort-style living accomodations. Their list of services includes health and wellness programs, educational workshops, supervised recreation activities, and a full menu of nutritious foods served from 6AM-9PM. PALF Oregon is also able to provide transportation accommodations, medication administration, and one-on-one fitness coaching.

PALF Oregon’s promise is to deliver quality care with honesty and integrity, and 24/7 availability of the nursing team. PALF Oregon’s team of experienced healthcare and management professionals ensures activities run smoothly, property maintenance is proactive, and residents get the care they need, when they need it.

OR Home Assisted Living

OR Home Assisted Living is a Portland, Oregon-based assisted living facility that provides outstanding senior care for individuals over the age of 75. OR Home Assisted Living takes the risk out of finding quality assisted living care. They provide comprehensive assisted living services for qualified tenants, and maintain stringent standards for their nursing and activity staff. The owners of OR Home Assisted Living are former healthcare professionals so they understand how an assisted living facility should be managed. Residents can depend on their unique screening processes to hire only highly qualified staff. Amenities offered include a full-service restaurant, rec center, and health club.

Oregon’s Best Assisted Living

Oregon’s Best Assisted Living is a trusted Portland assisted living facility that provides superior service to residents 65 years old and over. They are able to provide a comprehensive health and wellness regimen, highly qualified nursing staff, and superior security. Oregon’s Best Assisted Living is a condominium style environment for seniors who need minimal assistance with just a few daily activities such as dressing or walking. This facility provides a packed schedule of activities that seniors can enjoy throughout their tenure in the facility including clubs, classes, and social events.

Competitive Advantage

Portland Village Assisted Living will be able to offer the following advantages over their competition:

• Highly qualified team of healthcare, management, and security professionals that are able to effectively maintain a welcoming environment while ensuring safety and security for all residents and staff.
• Comprehensive menu of services that allows for a resident to have all of their needs met. Portland Village Assisted Living takes care of everything from daily assistance and medication management to entertainment and dining programs.
• Portland Village Assisted Living offers competitive pricing for a facility with this level of services compared to other facilities in the area.

Marketing Plan

Brand & value proposition.

Portland Village Assisted Living will offer the unique value proposition to its clientele:

• Friendly, knowledgeable, and highly qualified team of professionals that are able to cater to each individual resident’s needs.
• Portland Village Assisted Living has something for everyone with its extensive list of educational, social, and recreational activities available.

Promotions Strategy

The promotions strategy for Portland Village Assisted Living is as follows:

Word of Mouth/Referrals

James Martin has built up an extensive list of contacts over the years by providing exceptional service to his residents. Many of these contacts have communicated to James that they intend to help spread the word of Portland Village Assisted Living to their friends and families.

Professional Associations and Networking

Portland Village Assisted Living will become a member of professional associations such as the International Council on Active Aging (ICAA), American Seniors Housing Association (ASHA), and the National Investment Center for Seniors Housing & Care (NIC). The company will attend industry conferences and events to network with other professionals and promote Portland Village Assisted Living.

Print Advertising

Portland Village Assisted Living will invest in professionally designed print ads to display in programs or flyers at industry networking events.

Website/SEO Marketing

Portland Village Assisted Living will develop and maintain an attractive website that will be well organized, informative, and list all their services that Portland Village Assisted Living is able to provide. The website will also list their contact information and list their available units and pricing.

The company’s in-house marketing director will manage Portland Village Assisted Living’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Portland assisted living facility” or “assisted living near me”, Portland Village Assisted Living will be listed at the top of the search results.

Social Media Marketing

The company’s marketing director will create and maintain an active presence on multiple social media platforms including LinkedIn, Twitter, Facebook, Instagram, and YouTube to promote the facility.

The pricing of Portland Village Assisted Living will be moderate, so residents feel they receive real value when choosing this facility over higher-priced competitors.

Operations Plan

The following will be the operations plan for Portland Village Assisted Living.

Operation Functions:

• James Martin will be the Owner and Administrator of the company. He will oversee all staff and manage client relations. James has spent the past year recruiting the following staff:
• Jessica Williams – Director of Nursing who will manage the nursing staff and services.
• Kim Smith – Admissions Coordinator who will manage all resident admissions and acclimation processes.
• Ben Davis – Marketing Director who will provide all marketing materials, campaigns, and PR initiatives for Portland Village Assisted Living.
• John Anderson – Maintenance Director who will oversee all maintenance staff and projects at the facility.
• Anna Rodriguez – Housekeeping Coordinator who will oversee all housekeeping staff for the facility.

Milestones:

Portland Village Assisted Living will have the following milestones complete in the next six months.

8/1/2022 – Finalize contract for purchase of the facility.

8/15/2022 – Finalize personnel and staff employment contracts for the management team.

9/1/2022 – Begin refurbishment and furnishing of the facility.

9/15/2022 – Begin networking at industry events.

9/22/2022 – Begin marketing campaign to attract the first residents.

11/1/2022 – Portland Village Assisted Living opens for business.

Financial Plan

Key revenue & costs.

The revenue drivers for Portland Village Assisted Living are the assisted living fees they will charge to the residents for staying at their facility. Residents pay monthly fees for their stay and have the option of month-to-month or annual leases.

The cost drivers will be the overhead costs required in order to staff an assisted living facility. The expenses will be the payroll cost, utilities, supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

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

• Number of Occupied Units: 15
• Average Fees per Month: $60,000
• Payments on Facility Purchase per Year: $100,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Assisted Living Business Plan FAQs

What is an assisted living facility business plan.

An assisted living facility plan is a plan to start and/or grow your assisted living facility. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your assisted living facility business plan using our Assisted Living Facility Business Plan Template here .

What are the Main Types of Assisted Living Facilities?

There are a number of different kinds of assisted living facilities, some examples include: Residential Living, Memory Care, and Rehabilitation Facility.

How Do You Get Funding for Your Assisted Living Facility Business Plan?

Assisted Living Facilities are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.  Potential investors will need your assisted living business plan PDF or in Word format.

A well crafted assisted living business plan is essential to securing funding from any type of potential investor.

What are the Steps To Start an Assisted Living Facility Business?

Starting an assisted living facility business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write An Assisted Living Facility Business Plan - The first step in starting a business is to create a detailed assisted living business plan that outlines all aspects of the venture. This should include market research on the assisted living industry and potential target market size, information on the services you will offer, marketing strategies, pricing details and a solid financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your assisted living facility business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your assisted living facility business is in compliance with local laws.

3. Register Your Assisted Living Facility Business - Once you have chosen a legal structure, the next step is to register your assisted living facility business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your assisted living facility business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Assisted Living Facility Equipment & Supplies - In order to start your assisted living facility business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your assisted living facility business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful assisted living facility business and how to write a residential assisted living business plan:

• How to Start an Assisted Living Facility Business