How to Start a Group Home Business
Hi everyone, welcome back to another episode of What’s Your GamePlan. Today, I’m going to give you a quick start guide on how to launch a group home business. Often, when we hear the word "group home", we naturally think of a place for old people.. but that's not always the case.
Currently, around a million Americans, young and old live in group homes and senior living facilities. And that number is expected to double in the next 5 years. The good majority of these residents need a place to stay for at least three years, which means there's an opportunity for you to make a lot of money. If you want to help someone get into a home, and make money doing it, here’s how to get started.
So, the first step to creating a group home business is to decide on your speciality. I'm sure you're not an expert in every area of caregiving and a good place to start is to decide on where you can actually help. Most beginners choose to create a business in an area where they’ve had the most experience, but that's not always required. The most popular kinds of group homes are for seniors, for kids or teens, for mental health patients, or those battling autism.
After you choose the kinds of patients you want to help, you can now proceed to Step 2.
Step 2 - Define Your Services and Prices
Group homes and assisted living facilities aren't one size fits all type of business. Before you approach your potential clients you’ve got a lot of work to do. Your first step towards setting up a group home is to define the level of care your home will offer. Do you want to assist the elderly that require constant medical assistance, or will you be restricted to teens who have serious behavioral challenges? Will you charge one flat fee per month or a daily rate? Also, think about offering short-term and long-term contracts.
Once you've decided on your services and pricing, proceed to step 3.
Step 3 - Register Your Business - Now, it's time to officially register your business. You won't be able to accept payment for services until you complete this step. You'll need to register & apply for a federal EIN Number, and form an LLC or Corporation. I recommend using MyCorporation, as they do have a variety of packages to choose from, but their most basic package will get you started right away.
It’s also very important to find out all the regulations in your state that are required to operate a group home. Before you launch you’ll need to obtain all the necessary licensing to be prepared for a state inspection.
Legally Incorporate Your Business Today
Step 4 - Open a Business Bank Account - After you’ve chosen a name and registered your business, you can officially open a business bank account. It's pretty easy to open, but they won't get you set up without having the legal incorporation paperwork and the EIN number that I just spoke about. You can work with a local bank that you are already using or you can just choose a new one.
Step 5 - Buy Branding - This is one of the most important parts of creating a group home or assisted living facility business, because it's your brand’s identity that will leave a big impression on your clients. I recommend using 99designs because the process is quick and painless and you actually get what you want.
For marketing materials, I like envato, because they literally have tons of graphics for each and every single kind of business, on demand. Group homes will usually need to start with a logo, business cards, and a pdf brochure. 99designs actually has what they call the ‘brand identity’ pack that will get you started right away.
Get Branding for Group Home Company
Step 6 - Setup a Website - So the next step is buy web hosting. I always recommend choosing Bluehost because they are the most reliable for businesses who need to set up their first ever website. You also get a free domain, a free ssl and access to 24/7 tech support. So, you really can't beat it.
Once you pay for a plan with Bluehost, you'll get your login credentials. You'll want to save that information and deliver it to the web designer in the next step.
Get an Incredible Website Hosting Package
Step 7 - Choose a Web Designer
If you don’t know about Fiverr, it’s a company that sells affordable web development services that get done really quick. You just type in what you want in the search bar, and it will reveal tons of people who are willing to help you get a website up in less than 3 days.
Once you choose the person you want to work with, give them the bluehost details and communicate your vision and plans for the website.
Find a Website Designer on Fiverr
Step 8 - Setup a merchant account - While they are working on your new website, you'll need to activate a merchant account for your customers to pay you through. Many businesses use paypal, square or stripe. I personally like Square, they make it super easy for me to accept payments online via my website, email invoice, or even over the phone. The best feature is the fact that you can send on-off payment links to easily get paid by anyone. Once you sign up for square, give these details to the web designer to complete the integration process.
Signup for a Square Merchant Account
Step 9 - Secure a location - So now that your actual brand is established, your website is up and you are able to receive payments, you need to purchase or lease a location for your people to live. Some states in the U.S. request that your home meets specific requirements in order to house residents. It’s important to contact your state’s department of health to ensure you are meeting compliance standards. The more comfortable your group home is, the more residents you’ll attract and the more profits you’ll make.
Step 10 - Secure a vehicle - Many residents will arrive with serious health challenges. So, you’ll need to buy a van that can accommodate walkers and wheelchairs to transport residents to doctor’s appointments and any other outing necessary.
Step 11 - Hire employees
The number of people you’ll need to hire will largely depend on the size of your group home and the services you decide to offer. Someone will need to be in charge of preparing meals for residents, managing medications, housekeeping and transportation. It’s always important to hire registered nurses, lpn's, cna’s or any other certified medical staff before launching your group home.
Step 12: Prepare contracts and forms
Before you can accept residents, you'll also need to make sure your business is protected against any potential lawsuits. It’s important to involve a professional attorney to prepare and review all of your documents and policies, so that you and the residents are informed on what to expect.
Step 8: Start Selling & Marketing
Ok, so now that you’re all set up, How will you actually make money? Here’s what you’ll need to know in order to take a check to the bank.
Now it’s time to start promoting your group home and admit new residents. You can start off by picking up the phone or making a visit to introduce your business to local community centers, senior centers, hospitals and clinics.
It also won’t hurt to start a paid lead generation campaign or list your business in assisted living directories online. On average, you will make anywhere from $3,500+ per person, per month. However, group homes that provide specialized care for state-funded ( Medicaid ) residents can get an upwards of $6,000 per person, per month. So, a small starter group home can generate $20,000 a month easily.
Now, I know you're probably wondering...what's the price tag on this baby? Startup costs for this kind of business usually starts at around $10,000-$15,000 on average, but if you're planning to hire a ton of employees and spend lots of money on marketing the business, be prepared to drop the big bucks.
I'm selling a business plan template for How to Start a Group Home which provides a little more detail than what's in this video. This has been my most popular one and sells for only $5.
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About Adella Pasos
This Entrepreneur and Marketing Expert has shared her passion for growing brands from the ground up. She’s worked with Startups, Small Businesses, Fortune 500 Corporations and Entertainment Talent to help them recognize the value of marketing, and give her clients the ability to access their niche market via online, social media, mobile, merchandising, and events.
She hosts the What's Your Game Plan TV show features: Free Expert Advice, and Growth strategies for Business Owners Across the Globe. Access thousands of FREE Tips, Trends & Tools to Move Your Business Forward!