senior day care business plan

As for an adult day care facility, AdultDaycare.org reports that the national average for adult day care charges is about $1500 per month. This is a deal compared to full-time care in a skilled nursing home, which averages $6700 a month, or an assisted living facility, which averages $3600 a month.

For occasional care, state averages range from $36 to $122 a day depending on the level of care required.

To really figure out your earnings potential, you must first examine all costs and then subtract them from what your rates will be multiplied by how many clients you expect to provide care to.

The National Adult Day Services Association reports that the number of adult day care services has risen by nearly 25 percent since 2010, continuing a previous growth trend in the industry. As of 2014, they counted 5,685 adult day care programs in the United States.

The baby boomer population is one of the largest age groups in the country, and they’re reaching the age where many of them are beginning to need adult day care services for needs such as Alzheimer’s, dementia, and other age-related conditions that necessitate full-time care to ensure their safety.

There’s a growing need for adult day care services, meaning your earnings potential can only go up.

Step 4: Set a Budget

How much does it cost to open an adult day care business?

It’s really tough to nail down exact numbers for the startup of an adult day care, but it’s not cheap.

A lot of it depends on the scope of your operation.

Do you plan to build or remodel an existing stand-alone facility for a lot of residents? Or does a small home setting sound more appealing to you?

If you’re planning on a facility, at minimum, that can be hundreds of thousands of dollars to start. Then you have to fit the structure with ramps, wheelchair- and senior-friendly bathing facilities, adjustable beds, security measures, and adequate kitchen and dining facilities.

You have to pass a health inspection, as well as getting properly licensed both as a facility and a healthcare administrator, and hiring the medical and social service personnel to make sure your visitors receive excellent quality medical care while in your care.

In addition, you need to purchase lift assist and toileting assist devices and liability insurance, as well as providing refrigeration and secure storage for medications and training for staff in med passing, first aid, CPR, lifting, transporting and hygiene.

That doesn’t even include aesthetic measures to make your place comfortable and welcoming for residents and their families, and providing entertainment and stimulation during their stay.

Depending on the needs of your clients and the size of your operation, a startup could easily run up to half a million dollars or more.

Again, that’s the bad news.

The good news is that there are tons of grants out there to start an adult day care center.

Some grants you can explore:

Social Services Block Grant
Administration on Aging Grants
Robert Wood Johnson Foundation Grants
Department of Veterans Affairs Grants

Because starting an adult day care business is expensive, it’s important to keep costs down to save money where you can without cutting corners or sacrificing quality of care.

Some tips to keep costs down include:

Monitor utilities
Staff accordingly (labor is always your #1 cost)
Properly order supplies
Budget food properly so you aren’t wasting food by tossing out leftovers
Invest in re-washable and reusable rags instead of paper towels to clean messes

Examine every single cost, and be as detailed as possible in planning out your budget. The more successful you are in creating a budget, the more efficiently your business will fun.

Step 5: Decide Which Services to Offer

Adult day services are so important because they can delay or even prevent a family from having to institutionalize a loved one in a skilled nursing home.

However, different facilities can offer different specialties.

For example, your facility may choose to specialize in clients with Alzheimer’s, or those with physical disabilities who may be wheelchair bound.

Your specializations can influence your facility.

If your day care focuses on those with wheelchairs, you may want to lower the height of all the counters, shelves, and tables in your facility to make everything in the building more accessible and comfortable to your clients. If you go with Alzheimer’s patients, then you may want to install doors which require a code to open and automatically close and lock so that patients can not simply wander off.

Perhaps, you can focus on a full daily calendar with entertainment for all your attendees. A high quality experience at your facility is sure to earn referrals and new customers. Or maybe yoga for seniors?

One service that you may want to offer is patient pickup/drop off. This requires an additional expense of a modified van to allow wheelchair access, as well as the cost of a driver and additional insurance. But such a service would almost guarantee customer loyalty and referrals.

By focusing on which services you offer or specialize in, you increase customer satisfaction in those areas and build a strong reputation for your service as an authority in the field.

Figure out what you can do better than anyone else, and focus on that. Maybe it’s you, maybe it’s your service, maybe it’s your experience. Figure it out, write it down, and make it your facility’s centerpiece, literally and figuratively.

Step 6: Decide on a Location

Where should you open an adult day care business?

That all depends on who your clients are.

Because you’re dealing with the elderly, you want a location which will be gentle to their bodies, so you’ll want to avoid areas that require a lot of walking or stairs.

All your decisions should cater to your clients. And because your clients’ bodies are not as strong as they once were, make it a point to locate your facility next to their homes. That doesn’t mean set up shop next door to your grandmother, but it does mean do some research on where there are aging baby boomer populations, and set up your adult day care service within those areas.

By making your location easy to get to from their homes, you are removing a major objection from your buyers (the children of the seniors), in that they may say “I don’t have time to get them there every day.”

Things to consider for an adult day care service include:

Local, state, and federal regulations – especially the Americans with Disabilities Act
Ability to evacuate everyone within easily
State of repair of the facility
Ease of finding the facility
Ease of pickup/dropoff
Cost – renting or buying

Running an adult day care service is a lot of work, but by selecting a great location, you make your job a little bit easier.

Step 7: Find Suppliers

What equipment do you need to open an adult day care business?

Once again, the answer to that question depends on your business’s specialization.

Other than a proper facility, there are many things you will need when starting an adult day care service.

Some of these include:

Medical equipment and devices
Lift-assist equipment
Safety gear
Entertainment options
Therapeutic devices
Lift chairs
Tables and chairs
Commercial kitchen
Commercial laundry
Bio-hazardous waste disposal
Sheets and Blankets

These are the basic needs you’ll have when starting your facility. Make sure to do a thorough inventory of what you need by consulting your local state agency.

Once you know what you need, you need to know where to get your supplies.

A couple options to get you started are:

http://www.alimed.com/clinic-hospital-supplies-equipment/
http://www.quickmedical.com/medical-supplies.html

Step 8: Promote Your Adult Day Care Business

How do you promote an adult day care service?

This is a tricky question. It’s not as simple as promoting many common everyday businesses. However, the principle is the same – get in front of people who need your service.

For marketing and promotions, take advantage of Google Adwords to be featured in searches. Facebook is another powerful tool. Create a subtle ad directed at men and women over age 45 within a certain distance of your business.

But the most important marketing and promotion for your adult day care service is through networking. There is a strong and engaged support network for seniors. They need to know you exist.

Get involved with local groups such as:

Veterans Administration
Senior center providers
Meals on Wheels programs
Head trauma groups
State and local provider and consumer agencies, such as AAHSA, NADSA, and NADSA affiliates,
Local YMCAs and YWCAs
Friends, family members, and other service providers
Postal carriers and clergy are excellent networking people since they know so many others

Step 9: Create a Staffing Plan

Who works in an adult day care center?

It’s impossible for you to do everything on your own in this business. So it’s important to have a proper staffing plan.

You must understand how many employees you need, where you will find them, and what certifications they must possess in order to work in your facility.

Different positions will have different specifications. For example, an arts and crafts teacher may have different requirements than whoever oversees medications. When in doubt, always contact your local state agency for requirements and recommendations as to how many employees you need and what roles are required.

Once you’re clear on that, then you have to plan how and where to find them. Reach out to local agencies for suggestions, but hospitals and volunteer centers are a great starting point.

Also, look around at local colleges and universities with medical programs for help. You can find young, eager medical students who can help at a discounted rate for school credit. This is a great way to find qualified help and save money all in one move.

Your business can not survive without help, and to save time and money, you need to have a staffing plan for that help.

Step 10: Decide on a Style/Design

Deciding on a style is so important in the adult day care business because that style can either make customers feel welcome or scare them away.

Businesses which take seniors’ needs into account when designing their facilities are far better equipped to attract them as clients.. You want your facility to be warm and inviting, and make your guests feel at home.

Some suggestions for designing a style that appeals to seniors are:

Positive language (remember to take your medicine instead of don’t forget to take your medicine)
Big, clear font and text for any writing in the facility
Use bright colors
Give clear instructions where needed, using numbered lists
Avoid slang or acronyms

The best tool at your disposal for figuring out your design is the senior community in your area. Go talk to them and figure out what they like and do not like. After all, who knows what your clients will love better than your potential future clients?

If you need help with designs, visit 99designs . For as little as $99 you will have a collection of designers submitting their work and competing for you to select a winner who will receive your money as a prize.

It’s an inexpensive way to get a large selection of high quality work.

Struggling with what to name your adult day care business? Here are a few ideas:

Step 11: create an accounting plan.

An accounting pan is critical for an adult day care business for several reasons.

As a service for a vulnerable demographic, you’ll be eligible for several grants. But to renew those grants, you’ll have to submit documentation proving your facility is running efficiently. You have to track all expenses down to the penny.

In addition, an accounting plan ensures you know exactly how much money is available for payroll, supplies, marketing, and improving your facility. Plus, you’ll be able to make sure nothing is missing from your facility.

And of course, when tax season rolls around, your business may come under a microscope because of your grants.

Make sure you’re prepared for all of that by having an accounting plan to ensure you stick to your budget.

Some options are:

A local accountant

Step 12: Get Into the Adult Day Care Services Community

The adult day care services community is engaged and active. Seniors are vulnerable, and as such need a big support network. Your goal is to be as supportive as possible and learn as much as you can regarding new policies and procedures which can benefit your business and your clients.

And the best way to do that is to be active in the adult day care service community.

Focus on the same organizations mentioned within the marketing and promotions step, including:

Most importantly, make sure you’re a member of the National Adult Day Services Association .

Here’s a great infographic about starting an adult day care business:

The bottom line.

Opening (and running) an adult day care service is a lot of work.

But if you do it right, it’s not only rewarding, it’s a lot of fun.

You get to meet amazing people who’ve lived amazing lives and can teach you so much!

On top of that, you are literally saving lives and helping countless people.

Hopefully, you put this guide to use.

If this was helpful for you and you want to learn more about opening an adult day care business, StartupJungle.com has a 21 point checklist for starting your new business . Make sure you download this if you’re serious about getting started.

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9+ Editable Daycare Business Plan Templates

Infants and toddlers are fragile, little saplings who need the utmost care and affection. Being able to take care of them well positively affects their holistic growth and even their well-being when they grow up. Unfortunately, not all parents can give their children the attention they need. Some kids are left with nannies who may not have any genuine concern for them. You may also see Daycare Business Plans .

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Starting a Daycare Center

M ake a needs analysis. Identify which children in your area particularly needs.
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Name and place. Come up with a name and decide on the ideal location.
Secure all paperwork. Acquire the needed requirements mandated by the government.
Secure equipment and staff. Set up your childcare center and purcha s e all the equipment and furniture you need. Hire employees and conduct an orientation.
Comply with basic rules and regulation. Make sure the entire premises is well-monitored and ready for inspection.
Advertise. Promote your new business using your planned marketing strategy .
Start enrollment or registration.
Open your business with flare. You can offer goodies for both children and parents.
Check on different aspects of the business regularly.

Free Family Day Care Business Marketing Plan

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Free Senior Day Care Center Business Plan Template

Build and Maintain a Thriving Business

Be creative. You are establishing a center for kids. Every day should be exciting for them.
Be socially active. Engage in conversations with your employees, kids in their sessions, and even the parents. The more you build rapport, the more comfortable they are in your center.
Ask for feedback . The best way for the business to develop better is to ask for feedback survey and evaluate your business’s performance.
Keep focused on the goal. Set your drive geared towards the purpose you built the center in the first place.
Great service for every client. Treat every kid and parent with great compassion. Give them more than they expected. You can also see more on Hotel Business Plans .

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UnitedHealth Founder Plans $300M SPAC to Acquire Businesses Serving Seniors

The founder and former CEO of a major insurer is launching a new “blank check” company with ambitions to acquire businesses that serve the vast market of services for older adults.

The new company, Senior Connect Acquisition Corp., is led by Richard Burke, the founder and former CEO of U.S. insurance giant UnitedHealth Group (NYSE: UNH). With Burke at the helm, Senior Connect Acquisition Corp. will seek to raise up to $300 million to acquire and combine companies that serve the growing “senior market,” according to a Nov. 24 filing with the U.S. Securities and Exchange Commission (SEC).

Burke and the other leaders at the new venture see an opportunity to create a better option for the older adult market than what is currently available, by bringing their expertise to bear and potentially combining innovative enterprises.

“The senior market offers compelling growth trends, controls a disproportionate share of financial wealth, and presents significant opportunities and unmet needs in a broad range of areas, from lifestyle to healthcare,” the company’s S-1 filing reads.

As a special purpose acquisition company (SPAC), also known as a “blank check” company, Senior Connect Acquisition is interested in growing its holdings in a wide range of products and services geared toward older adults, including those relating to social determinants of health, such as housing, transportation and safety; lifestyle-focused offerings for seniors; home-based care; health platforms; and financial services.

The company’s leaders have told the SEC they plan to raise up to $300 million as part of an initial public offering, with a primary strategy of acquiring one or more companies that touch some or all of those market sectors. Its acquisition criteria include senior market companies that are industry-leading or particularly innovative, scaleable and have significant opportunity for growth.

The company’s leadership also believes that “continued technological innovation will be a successful contributor to the senior sector in the near and long term, as broader adoption of new health technology platforms will further increase access to care, lower costs, and improve quality.”

While it’s not clear whether the firm will ultimately invest in the senior living industry by acquiring any communities or operators, and while the company is not formally affiliated with UnitedHealth, it is notable that Burke — the founder, former CEO and current lead independent director for UnitedHealth — is eyeing the senior market with ambitions to grow in it.

Some in the senior living industry — such as Eclipse Senior Living CEO Kai Hsiao — have predicted that a major health insurance company one day will acquire a senior living operating company, in a bid for more control over health outcomes for beneficiaries.

Recommended SHN+ Exclusives

“I think in 10 years, the biggest owner of senior living will be UnitedHealth or Aetna,” Hsiao said in 2019 . “Senior housing will argue that we deliver better outcomes and they should use us instead of hospitals, and insurance companies definitely want that side, but until they get better data from us, I think it’s going to be tough, and I think they’re going to get frustrated and say, look, why don’t I just do this myself?”

Reached Monday, Hsiao said that while it’s not clear Senior Connect Acquisition Corp. plans to acquire any senior living companies, it would not surprise him if it did. He added that insurers are now the driving force behind value-based care, particularly in hospitals and skilled nursing facilities.

“More and more people recognize senior living as part of the overall healthcare continuum — especially during Covid — and it would make sense to see if they could do the same,” Hsiao told Senior Housing News. “It could also provide an insurance company a competitive advantage to say if someone chooses them, they’d have access to quality senior living at a better cost.”

Meanwhile, senior living providers are increasingly offering Medicare Advantage (MA) plans in their communities to help residents shoulder the cost of care and, in the process, gain leverage within the broader health care ecosystem.

Perhaps the most notable example of that trend is The Perennial Consortium , a group of senior living companies that includes founding members Juniper Communities, Christian Living Communities, Ohio Living and AllyAlign. The Covid-19 pandemic could make MA-coordinated care models even more attractive to consumers, and more beneficial to senior living provider companies in the process, according to Juniper CEO Lynne Katzmann.

“Linking the payer to the provider makes sense particularly if you address both health and social needs and build the new company on a data platform that can assist in integration of services, customer satisfaction and transparency and provide data for planning, guiding service development and profitability,” Katzmann told SHN Monday. “An integrated platform for serving older adults so that they remain healthy makes sense—lots of sense that will likely yield many ‘cents.'”

In addition to his role as an independent director with UnitedHealth, Burke is currently a managing partner at investment fund Rainy Partners. Joining Burke at Senior Connect Acquisition Corp. is President Isaac “Yitz” Applbaum, who is the co-founder and partner of Israeli investment firm MizMaa Ventures; CFO Ryan Burke, who is the CIO for Rainy Partners and partner at Prime Macaya Capital Management, a New York hedge fund; and M&A Executive Vice President Steven Schwartz, who was the senior vice president of business and corporate development at Livongo.

The company will initially offer 30 million public shares for $10 per “unit,” which consists of one share of common stock and one-half of a warrant, which is exercisable at $11.50 according to Renaissance Capital . Citigroup is the sole bookrunner for the IPO, and plans call for the new company to list on the Nasdaq index under the ticker symbol SNRHU.

Companies featured in this article:

Senior Connect Acquisition Corp. , UnitedHealth Group

Tim is a lover of bad jokes and board games. When he's not hunched over his work computer, Tim can usually be found hunched over his personal computer.