Thinking about starting an assisted living business? Get insights on profitability and what to expect when running a business in the assisted living space. Read more.
What Can I Expect?
An assisted living facility can be a massive undertaking. Consumer Affairs notes that, on average, assisted living facilities accommodate 27 to 33 patients. As an owner, you provide caregivers for those patients to help with daily activities like going to the bathroom and getting dressed, medication management, house cleaning, laundry, meals, and social programs and activities.
You’ll need an assisted living certification to get started. This requires you have at least one staff member for every six residents. In addition, state and federal regulators require multiple types of insurance to operate, including workers’ compensation insurance, general liability insurance, property/casualty insurance, and umbrella insurance.
You’ll need to find and acquire a property that meets specific standards. That includes accessibility for all residents to reach essential parts of the facility, green space on the premises, ample parking, and safety and security features.
Then, you’ll need to perform extensive marketing to fill the rooms at your assisted living business. Finally, employees are essential to running the property. You’ll need to hire and retain quality certified nurse assistants, nurses, and other staff members to keep the place running. Don’t forget those employees will need training.
Assisted Living Center Services
You’re caring for dozens of seniors 24 hours a day, seven days a week when you own an assisted living business. That means you’ll need to provide a variety of services. These include providing clinical assistance and documenting it. You’ll create a comfortable, home-like environment for your residents. Organize social activities. Make and serve at least three meals a day. All of these factors must be done while following strict state and federal guidelines for senior living properties.
Are Assisted Living Facilities Profitable?
Senior services are growing in demand as the U.S. population is aging. The U.S. Department of Health and Human Services reports that someone turning 65 has a nearly 70% chance of needing some long-term care services and supports in their remaining years. The assisted living home market size was estimated at $73.6 billion in 2018, with a compound annual growth rate of 6.4% over the forecast period.
While the market is a significant size, the costs of running an assisted living facility are high, leaving many facilities to operate at a negative net profit margin. Two of the biggest problems facing assisted living businesses are inflation and hiring. Inflation is increasing all costs of running the facility, forcing owners to pass along the increase to their residents. In addition, many businesses are struggling to hire and retain workers. The battle is an even bigger deal for senior living companies because they have to decrease their occupancy if they don’t have enough people to work.
Why is an In-Home Care Business a Better Idea?
Leave behind the stressors of running an entire assisted living facility by opening an in-home care business, like A Place At Home. You’ll face less liability and cheaper upfront investment costs. In addition, an in-home care business is easily scalable as you hire employees as your client list grows.
The demand is growing for senior home care. It’s projected by International Franchise Association (IFA) that by 2050, more than 27 million Americans will use senior care services. Plus, not only is the age of Americans rising, but so is the percentage of seniors who want to age in their homes. These two factors combined will send the demand for in-home senior care services skyrocketing. For a near future projection, an estimate quoted by IFA predicts a 29% increase for in-home assistance aides through 2024.
When opening an in-home care business, you don’t need many supplies. You’ll need a reliable vehicle, cell phone, and computer. But you won’t have to worry about building or renting a massive facility to hold dozens of residents and activities.
According to Profitable Venture, you only need one caregiver per four clients, although regulations may vary by state. So, you can quickly work to hire employees as you increase your client list.
No medical services are needed for in-home care businesses, just compassionate care and assistance for seniors like a companion, lifestyle, or personal care. This means you don’t have to undergo the extensive process of getting permits and licenses or dealing with health insurance companies.
Invest in Senior Care With A Place At Home
Don’t wonder how to start a home health agency. Become a franchise owner with A Place At Home instead. We provide in-depth training and a proven business model to follow for a low initial investment cost of $84,185 to $148,517. As a result, our franchisees are finding success with our multiple revenue streams. According to our latest franchise disclosure document, franchisees reported an average sale amount of more than $1 million in 2021, leaving lots of room to profit from your initial investment.
Are you ready to be our next top performer? Get started by submitting a franchise form today.