The first steps in planning an assisted living home is to conduct a market study, review regulatory rules and laws, and develop a business plan. These steps are crucial in understanding the feasibility of developing an assisted living home. The pool of potential residents has to be large enough to make the business potentially successful before any financing can be sought.
The assisted living market study is a comprehensive look at all aspects of the proposed assisted living home. It will determine how many units will be built, how much rent will be charged per unit and how long it will take to bring the home to full occupancy. During the study the competition will also be examined. This is also the time the level of service provided by the home will be determined.
There are numerous regulatory rules and regulations surrounding assisted living facilities. These homes have to follow federal and state law in order to be licensed. The oversight and granting of a license is done at the state level. Contact your state licensing bureau for information on the particular requirements in your state.
The business plan is a comprehensive plan for the business. It gives a future forecast for important business milestones including yearly projected income and expenses, expansion plans and how debt will be serviced. The plan will help your lenders understand your financing needs and help guide you in decision making.
After these elements have been carefully determined a location for the assisted living home can be found and lenders can be approached for financing. Only then can any work begin on the numerous items involved in construction and ultimately populating the assisted living home.