Group homes are an incredible enterprise to operate. They offer recurring streams of revenue as well as capital appreciation on the property. They are relatively straightforward businesses and demand remains strong at all times.
What do I receive with this service?
Right away, let’s talk about what you will get with our service. First, you will receive a business plan that includes a five-year financial model. You can view a sample of the look and feel of our work here:
Please note that this business plan was written as a sample only. Our work includes doing all of the necessary market research and financial modeling specific for your market and the property that you intend to acquire.
Second, you will receive an interactive pitch deck. Below is a video overview of a sample pitch deck (45 seconds):
In addition to the interactive version, we also provide a PDF version which can be seen here:
Third, you will receive a dashboard driven financial model. This will allow you to take a look at different scenarios for your business in regards to property size, number of residents, and monthly resident fees. Please note that even once the business plan is completed, we are more than happy to make any adjustments in the event that you find a different property or are operating in a different city or town. Below is an overview of the financial model:
Now onto some questions you probably have right now.
How long does it take to complete and how much does it cost?
It takes us five to six business days to do the work, and we charge a flat fee of $525.
The way we handle payment is 50% upfront and 50% upon completion.
Do you use any AI in your work?
We do not. We have been in business for the past 20 years, and we have never used any AI content in any business plan or pitch deck.
How do I get in contact with you?
You can reach us at any time via phone at 646-216-9844 (weekend calls are perfectly fine). You can also email us at [email protected] or fill out our Contact Us form.
What will you need from me to do the work?
Generally, we need the following information:
1) Name of the business and how many residents you intend to have in the group home.
2) How much capital you anticipate that you will need. This can be adjusted at any time based on the property (either for purchase or lease)
3) Your name and the names of any business partners that you may have.
4) Location (if you have not yet determined the exact property location, we can do the plan based on the city until the exact property is determined).
5) Whether or not you intend to purchase or lease the property.
6) If you have already developed any documentation regarding your business, please feel free to send that as well.
How do you do the financial modeling?
We take a market-research approach. First, we take a look at the size of your target market. We then apply statistics regarding the number of people that require group home services within your market radius. This provides us with the estimation of total demand. From there, we then review the competition to see how many spaces are available for people that need group home residency in your market. This allows us to understand how quickly you can reach 100% occupancy for your location.
Please note that we do this specifically for the needs of each client. For instance, if you intend to operate a group home that is specific for senior citizens then we focus on these demographics based on the number of people over the age of 65 that require a supervised environment.
If the group home is geared towards individuals with developmental disabilities, then we focus on applying a different set of market statistics based on the adult population and the percentage of people that require a dedicated living facility.
The market analysis report that we complete for each client is as follows:
What if I need some adjustments made to the business plan or pitch deck?
We are always more than happy to make any adjustments once you review the initial drafts. In most cases, we are usually 95% on the mark with a few tweaks needed here and there.
We provide unlimited adjustments. As noted above, let’s say you find a better property once we complete the plan, we can easily go back to update the market and the financial model. This is done at no addition cost.
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Now onto other discussions regarding group homes and their operation.
What do you like about group home businesses?
Most importantly, group homes, sober living facilities, halfway homes, and transitional housing enterprises have extensive access to capital. The primary asset that is purchased is real estate, which all lenders love to finance.
As it relates to economic stability, once a group home reaches 100% capacity – the recurring income covers all operating expenses and provides a significant and reliable profit for the owner.
Furthermore, these businesses remain in demand even during an economic recession. For residents that required ongoing supervision, this is an absolute necessity.
What are the downsides of operating a group home business?
As with any business, there are always certain downsides. In the case of a group home, sober home, or transitional housing facility – this is a 24/7 business. The residents require ongoing care and supervision which requires significant coordination on behalf of the owner as well as staff members.
Additionally, given the nature of the business – there is the potential that certain emergency situations could occur. In order to address these matters, staff needs to undergo substantial training regarding emergency health matters and deescalation.
What is the outlook for the group home industry?
Overall, the outlook for group homes (across all segments) is very positive. As individuals from the Baby Boomer population continue to enter their later years, the demand for home-styled living facilities will continue to expand. Additionally, many families that have members with intellectual or developmental disabilities seek to provide as much independence as possible. These homes are considered an important alternative to larger-scale facilities that often have an institutional feel.
For senior focused group homes, the compounded annual growth rate of the industry is expected to range from 5.5% to 8.5% per annum over the next five years. For other group homes (transitional housing and sober living), the growth rate is expected to remain between 5% to 6%). The growth rate of both industry segments is expanding faster than the economy as a whole.
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In closing, we have worked diligently with our clients for the past twenty years to provide exceptional business plans and pitch decks. Please feel free to reach us at any time at 646-216-9844 to discuss your needs.