Venturing into the Assisted-living Business
Careful, thorough, and detailed planning is necessary in order to draft a business plan that incorporates all the components of a successful venture. The feasibility of the project is contingent on a number of factors, viz., trends in the birth and the death rate, the income distribution, and the existence of competing facilities that may result in driving down the prices.
The distribution of the population in terms of age and income will help in predicting the demand for such facilities. The extent of competition will also have an impact on the prices that can be charged by the assisted-living facility.
A greater demand for facilities can help the business plan in the necessary living arrangements and benefit from the economies of scale that result in the cost per unit of service rendered being less as a consequence of sheer volume. This is especially important if the venture is catering to cost conscious consumers and is operating in a region that has businesses modeled along similar lines.
In case the business is operating in an area where a large number of baby boomers are concentrated, the focus of the assisted-living facility can be on providing a vast array of conveniences that can help people live a luxurious life. Accordingly, a higher price can be charged for special facilities that are provided in addition to the basic amenities.
The availability of employees who are well versed in cleaning, cooking, and providing personal-care duties and the cost of hiring the same, needs to be worked out in detail. Moreover, the employee turnover rate should not be high. High turnover rates are characteristic of markets where there are a number of different job opportunities. The management of an assisted-living facility must have the requisite industry experience to be able to handle the staff and the inmates and maintain good guest relations.
Finally, the entrepreneur needs to be able to arrange for the necessary finances and draft a plan for marketing the facility as a home for people who want to live a life of relative autonomy without having to compromise on the desire for privacy. An assisted-living business can be a wonderfully rewarding venture for an entrepreneur who assesses the market conditions and plans accordingly.