I. Executive Summary
This Section's Contents
You can download our Assisted Living Business Plan Template (including a full, customizable financial model) to your computer here.
Business Overview
[Company Name] is founded by [Founder’s Name], an LVN who has worked for the past twenty years in various assisted living facilities around [company location]. He specializes in providing skilled nursing services and light therapy for elderly and disabled patients. [Company Name] will be a clean, comfortable, and highly capable facility that will be able to provide the highest quality of care for this special segment of the population. It will be moderately priced and will work with all types of insurance.
Services Offered
[Company Name] will provide nursing, physical therapy, occupational therapy, fitness, meals, social activities, and social work services to its residents. In addition, their team of healthcare specialists will also be able to provide specialized services for Alzheimer’s, dementia, arthritis, diabetic patients, Parkinson’s, autistic, and severely disabled residents.
Customer Focus
[Company Name] will serve the aging and disabled community of [company location]. Many of the aging and disabled community has special and severe conditions that prevent them from living independently and require constant oversight and 24-hour care in a comfortable facility.
The demographics of the target customer profile is as follows:
- 900,652 residents
- Average income of $60,000
- 75.4% married
- 45.7% retired and/or over the age of 55
- Median age: 39 years
Management Team
[Company Name] is owned and operated by [Founder’s Name], an LVN who has worked for the past twenty years in various assisted living facilities around [company location]. At each assisted living facility he worked at, he was never satisfied with the level of care, compassion, and cleanliness of each facility. He knew in his heart that this disadvantaged and deserving segment of the population deserved a better quality of care and he set out to find a building worthy of becoming an esteemed assisted living facility that will provide the best level of nursing, rehab, and assisted living services in the area.
Aside from the nurses, therapists, kitchen staff, janitorial, and social worker he will have on staff, [Founder’s Name] will also employ a receptionist and Office Manager to help with the administration and operation of the assisted living facility.
Success Factors
[Company Name] has several advantages over its competition. Those advantages include:
- Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field, but place a special emphasis on compassion.
- Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.
- Quality Care: [Company Name] will provide expert services and their patients will receive quality treatment and care so that the resident is as comfortable as they can be.
- Facility: [Company Name]’s facility will be constructed ADA-compliant, spacious, clean, and comfortable to ensure the resident is at their maximum satisfaction.
- Pricing: [Company Name]’s pricing will be more affordable than its competition. The company will also work on payment arrangements with the resident and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high. The company will also accept most types of insurance, as well as Medicare and Medicaid.
Financial Highlights
[Company Name] is seeking $250,000 in funding to launch its assisted living facility. The capital will be used for funding capital expenditures, construction build-out, staffing, training, marketing and advertising expenses, and working capital.
The breakout of the funding may be seen below:
- Facility design/build-out: $100,000
- Capital expenditures: $20,000
- Furniture, fixture, and equipment: $35,000
- Marketing and advertising: $10,000
- Staffing costs: $75,000
- Working capital: $10,000
The following graph outlines the pro forma financial projections for [Company Name] over the next five years:
| Financial Summary | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Revenue | $965,742 | $1,878,611 | $2,718,300 | $3,477,900 | $4,285,228 |
| Total Expenses | $390,241 | $630,018 | $931,935 | $1,171,906 | $1,429,992 |
| EBITDA | $575,501 | $1,248,593 | $1,786,365 | $2,305,994 | $2,855,237 |
| Depreciation | $8,720 | $8,720 | $8,720 | $8,720 | $8,720 |
| EBIT | $566,781 | $1,239,873 | $1,777,645 | $2,297,274 | $2,846,517 |
| Interest | $5,077 | $4,442 | $3,807 | $3,173 | $2,538 |
| PreTax Income | $561,705 | $1,235,431 | $1,773,838 | $2,294,101 | $2,843,978 |
| Income Tax Expense | $196,597 | $432,401 | $620,843 | $802,935 | $995,392 |
| Net Income | $365,108 | $803,030 | $1,152,995 | $1,491,166 | $1,848,586 |
| Net Profit Margin | 38% | 43% | 42% | 43% | 43% |
