According to NCHS, more than 800,000 individuals in the country currently reside in assisted living facilities and care homes, and these numbers are only expected to rise with increasing life expectancy. The growing demand for residential care homes has garnered much interest among entrepreneurs. Although starting any business venture is a major undertaking, senior home care demands more time, energy, and attention. That being said, it is also a rather rewarding endeavor when managed well.
Elderly or senior care homes
Elderly or residential care homes provide assisted living facilities to seniors. They generally offer help with activities of daily living, such as dressing, bathing, going to the washroom, cooking, cleaning, doing laundry, housekeeping, certain personal care services, and transportation. Many also organize social events and activities to offer seniors more opportunities to engage with others and establish new relationships.
Starting a senior care home – 10 easy steps
1. Create a business plan
Drawing up a plan highlighting some important details is important to run any successful business. This plan must cover aspects like the target audience, rate-setting processes, start-up and registration costs, break-even points, staffing requirements, profit margins, and standards to follow. This strategic approach will help the business focus on its goals and ensure the best possible services.
2. Select services
Next, it is important to establish a niche for one’s business. Think about other senior care homes in the area and make a list of services they are offering. This is also a good time to talk to potential clients and ask them about the services they are looking for. This step will ensure that entrepreneurs can tap into gaps in the market and attract more business.
3. Find a reliable source of funding
Starting a senior care home requires a significant financial investment. One can turn to larger businesses offering grants and loans to set up a senior care home. Some may also find success when applying for federal and state grants.
4. Establish or register a legal business entity
As with any business, it is important to register with the government and establish an entity formally. Given the sensitive nature of work at a senior care facility, most owners opt for an LLC (Limited Liability Company) structure, as it protects them from personal liability during litigations. The business also needs to be registered for state and federal tax purposes. The EIN can be obtained from the IRS website.
5. Open a bank account
It is also important to separate one’s business expenses from personal income. This separate business account makes it much easier to track income and expenses, making it an important part of establishing a business.
6. Choose a location and builder
A senior care home requires significant space and property modifications, so renting and converting the area isn’t impossible. Instead, business owners need to consider the location of the property, choose a builder, and set up the property from scratch.
To start this process, approach at least three builders and ask them for quotes. Make it a point to add accessibility features all around the facility, such as grab bars and handles, ramps, handrails, and high and low drinking fountains. If the budget allows, add other services that may appeal to residents, such as fitness centers, swimming pools, learning environments such as libraries or community centers, popular restaurant outlets, and shops to keep seniors engaged in their new homes.
7. Secure all permissions and licenses
The business also needs to secure all permits, licenses, and registrations to avoid running into legal hassles and closures in the future. One should note that these requirements can differ significantly from state to state.
8. Buy supplies
Next, the business must stock up on supplies, depending on the type of services they intend to provide. This includes personal care items, mobility aids, eating equipment, emergency kits, shower chairs, adjustable bed rails, sensory blankets, games, arts and crafts, and hobby supplies.
9. Hire employees
It is impossible to run a senior care home by oneself. Businesses must hire in a variety of roles, from volunteers to full-time workers, such as cooking, cleaning, administration, security, and monitoring. The people one hires will take care of the clients and define their experience, so it is important to proceed cautiously. Perform a thorough assessment, including a criminal background and a referral check, to reduce the risk of danger for vulnerable residents.
Hiring some staff members with a background in personal caregiving, alongside other specialties, is a good idea. Regular training and sensitization courses can help employees stay updated with the latest codes and best practices in elderly care.
10. Develop a brand presence
After setting up the business, it is time to get the word out. While traditional print media services are an adept way of doing so, more and more people are now turning to digital media thanks to its convenience and cost-effectiveness. Set up a brand for the care home, including a logo, vision, and mission statement. Be sure to create a website with plenty of photographs, details about the center, and core values. Social media pages can also help get the word out.
