Assisted living facilities serve an important part in the care of the elderly and handicapped. These institutions shelter older persons and those who need assistance due to mental or physical issues. Patients may reside and enjoy a community setting in assisted living facilities. In many cases, such patients are unable to care for themselves at home, so they opt to live in an assisted living facility where they may get round-the-clock support from trained caretakers.
Follow these ten steps to establish an assisted living facility:
Make a plan for your Assisted Living Facility.
Create a legal entity for your assisted living facility.
Tax registration for your Assisted Living Facility
Create a Business Bank Account and a Credit Card
Establish Accounting for your Assisted Living Facility
Obtain the Required Permits and Licenses for your Assisted Living Facility
Purchase Assisted Living Facility Insurance.
Create a brand for your assisted living facility.
Create a website for your assisted living facility.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to opening your assisted care facility has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of establishing an assisted living facility?
The facility must be built. While certain facilities might be hired, the vast majority are acquired or created by the entrepreneur. Employee salary, utilities, internet, nurse call buttons, security cameras, computer hardware, patient food and drink, bedding, and medical equipment are all extra expenditures. You may also decide that purchasing software developed to help senior care facility companies is a good idea.
What are the continuing costs associated with an assisted living facility?
Ongoing expenditures include staff compensation, utilities, high-speed Internet, insurance, medical supplies, and rent/payments toward property debt. A state-licensed assisted care facility manager may expect to earn between $35,000 and $75,000 per year or more. If you do not wish to conduct your own advertising, you will need to hire a marketing director. A professional in this field may expect to earn between $40,000 and $70,000 per year. Nursing personnel will most likely expect a pay of $30,000 to $50,000. Administrative personnel will be paid between $10 and $15 per hour. The cost of kitchen/food prep employees will range between $10 and $12 per hour. The price of food and drinks is determined by their quality. You should expect to spend several thousand dollars each month on food for your tenants. The cost of utilities varies according on the size of the facility. Utilities often cost a few hundred dollars each month. As time passes, medical supplies and bedding must be replenished/replaced. Budget at least $500-$1,000 per month for these goods, and change your budget as you have a better understanding of your clientele’s requirements and wants.
Who is the intended audience?
Most assisted living facilities shelter as many people in need as they can. However, younger patients might be great since they are more likely to stay in the institution for years. The death of a patient may be highly upsetting emotionally, and a lengthy stay at the institution provides a steady stream of money.
How does an assisted living home generate revenue?
Residents in assisted living facilities pay a charge to stay in the facility, which generates revenue for the facility. This fee is charged on a monthly or annual basis.
How much money may you charge your customers?
In average, assisted living facilities might charge anywhere from $2,000 and $4,000 per month per person. The actual cost, however, is determined on the location and the quality of the facility.
How much can an assisted living facility profit?
Profitability is determined by the size of the facility as well as its amenities. Profits might reach six figures or greater if you have a big facility with top-notch facilities and maintain full occupancy. It is feasible to gain millions of dollars in profit by developing a real brand and opening other assisted living facilities in different places.
How can you increase the profitability of your company?
Profitability may be increased by providing ancillary services on-site. Residents might be charged extra fees for extraneous amenities like as cable TV packages, fine dining alternatives, on-site entertainment events, specialist care, and so on. If your facility is at capacity, you may be able to earn money by recommending potential residents to other institutions that have vacant space.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal corporate organisation, such as an LLC or corporation, shields you from personal liability if your assisted living facility is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run an assisted living facility, several state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Occupancy Certificate
A big, hotel-like facility is frequently used to manage an assisted living residence. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can receive a valid CO for an assisted care facility.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you want to buy or construct a space:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building regulations and zoning standards for the area of your company to verify that your assisted living facility will be in compliance and able to receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote an Assisted Living Facility
The most effective strategy to grow our company is to gratify present residents. They will spread the information to other elders and disadvantaged people. It also aids in the marketing of the assisted care facility in local newspapers, periodicals, radio spots, and television commercials. Customers will seek out additional information if the facility’s name is prominently displayed. A solid online presence will also be beneficial. While many seniors may not use the internet often, their family members most certainly do. Improve your website’s search engine optimization (SEO), and potential clients and their family members will be able to locate your company on the first page or two of search engine results.
How to Keep Customers Returning
Offering a cheap price for a room at the facility is one of the finest strategies to attract consumers. Matching or beating rivals’ pricing can ensure a continual supply of clients. If you satisfy your clients, they will definitely refer your facility to other elderly and handicapped people seeking for an assisted living home. Employ genuine medical personnel who would never mistreat or neglect residents, and your customer retention rate will be more than satisfactory.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.