Group Home Business Plan Template
If you want to start a Group Home business or expand your current Group Home business, you need a business plan.
The following Group Home business plan template gives you the key elements to include in a winning business plan. It can be used to create an elderly group home business plan, a disabled group home business plan or a youth group home plan.
Sample Group Home Business Plan Template
Below is a group home business plan example with each of the key sections to help you write a group home business plan for your own company.
I. Executive Summary
Business Overview
[Company Name] is a licensed group home facility located in [insert location here] that is specifically designed and equipped with the necessary accommodations to provide comfort and security to all residents. [Company Name] provides a clean, comfortable, nurturing and safe environment for the elderly and disabled.
Products Served
[Company Name] will provide a supportive home that includes services that assist its residents with completing daily basic and simple tasks, such as taking medication, personal hygiene, making dinner, transportation, budgeting their personal allowance, socializing and grocery shopping.
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.
Management Team
[Company Name] is led by [Founder’s name], who has worked for [xx] years for various living facilities around [company location]. [Founder] is a licensed Group Home Administrator, nurse, and social health worker with over [xx] years of experience. He has a Master’s Degree in Public Health and is truly passionate when it comes to taking care of people with disabilities. He knew in his heart that this disadvantaged and deserving segment of the population deserved a better quality of care.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for group home services in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of aging and disabled residing nearby.
- The management team has a track record of success in the group home business.
- The group home business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $460,000 to launch a group home. Specifically, these funds will be used as follows:
- Facility design/build-out: $340,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
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 |
| Pre-Tax 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% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new group home in [insert location here] that offers expert nursing and personal care services to aging individuals and those with disabilities, all under one roof. [Founder’s name]’s years of expertise have taught him how to provide safe and supportive care for the elderly and disabled. [Founder’s name] recognizes the need for a high-quality, low-cost group home after his previous employment failed to maintain the facility to the level of cleanliness and care demanded.
[Company Name] is located in the [Company Location]’s metroplex. There is a large population of aging and disabled persons within the community and there are not enough group homes to support this segment of the population.
[Company Name]’s History
[Founder’s Name] is a group home administrator with a passion for providing care for aging and disabled people. [Company Name] will become a renowned group home known for its exceptional care and services.
[Founder’s Name] has identified the neighborhood and building where [Company Name] will be located. He has begun lease negotiations and pricing out of construction to transform the building into a comfortable and capable home for those who will be residing at the group home.
Since incorporation, the company has achieved the following milestones:
- Developed the company’s name, logo, and website
- Found location and signed Letter of Intent to lease it
- Determined the list of services to be offered
- Began recruiting key employees for the group home
[Company Name]’s Services
Below is [Company Name]’s list of services. All services will be provided by a trained and licensed staff.
- Three meals a day
- Monitoring of medication
- Personal care, including dressing and bathing
- Housekeeping and laundry
- 24-hour emergency care
- Skilled nursing services
- Social and recreational activities
- Light exercise program
III. Industry Analysis
The group home industry is expected to grow robustly over the next five years. There are 9,623 group homes in the US with a market size of $8 billion. The group homes industry in the US is the 31st highest ranked Healthcare and Social Assistance industry by market size.
The primary positive factors affecting this industry are low competition and low revenue volatility. Federal funding for Medicare and Medicaid is expected to increase, representing a potential opportunity for this industry. Medicaid is a significant source of funding for children and adults with disabilities who live in long-term residential care facilities. When federal funding for these programs rises, industry revenue is positively affected. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will provide services to the elderly and individuals with disabilities in [company location] and the neighboring regions.
There are thousands of retired, elderly adults in the [business location] neighborhood who need more attention and round-the-clock care. There is also a sizable population of disabled persons who have impairments that make a living independently with challenges.
The precise demographics of the town in which the Company resides is as follows:
| Riverdale | Santa Cruz | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 54-60 | 3.68% | 3.52% |
| Age 60-69 | 5.22% | 4.50% |
| Age 70-80 | 13.80% | 13.91% |
| Age 81 and older | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Aging Population: Elderly individuals that require additional assistance and supervision.
- Disabled individuals: People with disabilities who are unable to live independently and require 24-hour care and attention.
V. Competitive Analysis
Direct & Indirect Competitors
TGS Group Homes
TGS Group Homes is the town’s most well-known group home and has been in business since 1971. They have cared for more than 12,000 children. TGS Group Homes is a non-profit 501(c)(3) organization that cares for children who are facing abuse, neglect, emotional trauma, and substance abuse problems. TGS Group Homes offer care, guidance, and treatment.
A Loving Home
A Loving Home is a group home that was established in 1980. A Loving Home focuses on providing continuous, compassionate care in an environment where residents’ emotional needs are met. A Loving Home offers all-Inclusive group home care in an upscale neighborhood setting. Its residential care homes are built specifically and exclusively for adults and children who need assistance with activities of daily living.
Just like Home
Just like Home was established in 2000 and has since built its reputation on the quality of care in the United States. It is a 94-bed certified and licensed group home facility. Just like Home’s philosophy is to improve quality of life, prohibit discrimination based on race, color, religion, sex, age, handicap, national origin, and diagnosis, and ensure equality in all aspects of care.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Compassionate Staff: Knowledgeable and friendly staff of nurses, counselor 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 to the residents, who will receive quality care so that they feel as comfortable as they can be.
- Facility: [Company Name]’s facility will be spacious, clean, and comfortable to ensure the resident is at their maximum satisfaction.
- Pricing: [Company Name]’s pricing will be affordable than its competition. The Company will also accept most types of insurance, as well as Medicare and Medicaid.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respectable and known quality care company in the group home market. The residents will receive premium quality and resident-focused care in the facility.
The [Company Name] brand will focus on the Company’s unique value proposition:
- Knowledgeable, friendly, expert staff.
- Quality level of service and care.
- Cleanest and most comfortable group home in the metroplex.
- Most competitive pricing for the area’s group home.
Promotions Strategy
[Company Name] expects its target market to be the aging people, elderly patients, youth and disabled individuals. The Company’s promotions strategy to reach the audience includes:
Local Hospitals
[Company Name] will partner with local hospitals and make sure they send referrals and highly recommend [company name] to its patients and their families upon the patient’s release from the hospital and into a group home.
Website
[Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied residents and their families. The website will be highly informative and be designed in a way that is friendly and eye-catching.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like podcasts, television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content and post customer reviews that will increase audience awareness and loyalty.
Social Workers
[Company Name] will work with social workers who deal with individuals who have severe disabilities and are not able to live independently.
Billboard
[Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the group home services. The customer can expect to receive quality care and services at a more affordable price.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:
Healthcare Functions
- Nurse
- Social worker
- Medical management counselor
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Home Director
- Staff management and scheduling
Miscellaneous
- Kitchen staff/cook
- Maintenance personnel
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s name], who has worked for [xx] years for various living facilities around [company location]. [Founder] is a licensed Group Home Administrator, nurse, and social health worker with over [xx] years of experience. He is truly passionate when it comes to taking care of people with disabilities. He knew in his heart that this disadvantaged and deserving segment of the population deserved a better quality of care.
[Founder] graduated from the University of ABC, where he majored in Public Health.
Hiring Plan
[Founder] will serve as the CEO. In order to launch and maintain a high-quality group home, the company will need to hire the following personnel:
- Medical Director
- Group Home Director
- Nurses [Number]
- Accountant [Number]
- Maintenance Personnel [Number]
IX. Financial Plan
Revenue and Cost Drivers
The revenues for [Company Name] will come from the income it will charge the residents and their insurance providers for the health care services it provides.
The major costs for the company will be the cost of facility remodeling, furnishings, equipment, food and beverages, and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $460,000 to launch a group home. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Facility design/build-out: $340,000
- Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of residents per year | Per location |
|---|---|
| Year 1 | 100 |
| Year 2 | 150 |
| Year 3 | 200 |
| Year 4 | 250 |
| Year 5 | 300 |
| Annual Lease | $40,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
