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    3 Replies Latest reply on Aug 3, 2011 3:10 PM by LCSG

    Starting a Residential Home for Elderly (4-6 bed)

    LCSG Newbie

      I'll preface this post by excusing myself: this is an extremely naive question!

       

      I am very knowledgeable about group homes for the elderly (any old house in any old neighborhood, but it serves the elderly population with 24-hour care).  I work in these homes everyday as a clinical social worker.  I am extremely interested in starting up my own home.  I have done a lot of research so far - I'm truly not going into this blindly.  In fact, I work closely with a colleague who just finished going through the licensure process, so she's been an excellent source of information for me.

       

      Anyway, I am ready to dig in.  I will most definitely need a small business loan to buy the property and make any necessary changes to it.  I can get a 4-bedroom, 2-bath, single-level home in my area for slightly more than $100k.  I will also have a quite expensive installation of an indoor sprinkler system (mandated for these homes).  These are the MAJOR expenses I foresee, and obviously there will be a million smaller expenses.  I know the figures for expected revenue, approximately how long it will take to be up and running; etc.

       

      Basically, I realize I will have lots of research to do along the way, but HOW DO I START?  I need a business plan, HOW DO I DO A BUSINESS PLAN?  Just write down all my figures?  WHAT IS THE BANK GOING TO WANT TO SEE FROM ME?

       

      Thanks for any and all help/advice!

       

      Leslie Gamble

        • Re: Starting a Residential Home for Elderly (4-6 bed)
          Barky Dog Tracker

          Hi LCSG,

           

          Creating a business plan can be a daunting prospect.  I’m glad you came here for some help and support.

           

          You may want to consider using business planning software to walk you step-by-step through creating a business plan.  I have used one called “Business Plan Pro” several times and it really saves a lot of time.  And, no, I am not affiliated in any way with the company that makes it.  The software is simply the best-selling, most professional software out there right now.

           

          The software also has hundreds of sample business plans built in, so you can “borrow” ideas and concepts that work for your business.  Anyway, you might want to check it out.

           

          You can also contact SCORE, a nonprofit association dedicated to helping small businesses get started.  They may be able to help you with your business plan for free.

           

          Good luck!

           

          - Barky 

          • Re: Starting a Residential Home for Elderly (4-6 bed)
            LCSG Newbie

            Thanks for the tips - those sound like good ones!  I assume a bank or any lending institution would want a VERY DETAILED business plan before considering lending to you. 

              • Re: Starting a Residential Home for Elderly (4-6 bed)
                Barky Dog Tracker

                Very true!  In this economy, it's tough to get a small business loan.  Though, the Small Business Administration may be able to help you.

                 

                Here's the thing- even though creating a detailed business plan seems like a giant PAIN, just going through the process can really help you in the long run.  The business plan will force you to think about challenges you may not have considered.  It can also help you realize opportunities you may have missed.

                 

                A good business plan will help you start your business on a firm foundation, and keep you focused as you move down the road toward success.

                 

                -Barky