Nursing Home Business Plan Template [Updated 2024]

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I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is founded by [Founder’s Name], a Registered Nurse who has worked for the past twenty years in various nursing homes around [company location]. He specializes in providing skilled nursing care 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 rooms, meals, social activities, personal care, 24-hour nursing supervision and access to medical services when needed. In addition, the facility will offer interim medical care (after a hospital stay) and respite care.

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], a Registered Nurse who has worked for the past twenty years in various nursing homes around [company location]. At each nursing home 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 segment of the population deserved a better quality of care and he set out to find a building where he could lead a team in providing the best level of nursing and rehab 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 nursing home.

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 patients will receive quality treatment and care so that the resident is as comfortable as possible.
  • Facility: [Company Name]’s facility will be constructed ADA-compliant, spacious, clean, and comfortable to ensure each resident enjoys maximum comfort.
  • 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 nursing home. 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 SummaryYear 1Year 2Year 3Year 4Year 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 Margin38%43%42%43%43%

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