ALF

Business Plan-Assisted Living Facility

Table of Contents

Name, location, and legal form of business1

Nature of the business1

Mission of business2

Products and/or services2

Development and Construction3

Pre Development Efforts3

ALF Development Budget3

Loan/Financing Costs5

Other Development6

Marketing6

Market research and analysis6

Market size and growth trends7

Company goals and targets7

Analysis of Competition8

Market Strategies9

Sales Approach10

Pricing policy10

Risk factors11

Operations12

Facility12

Employees12

Wages14

Wage Inflation16

Labor related Expenses16

Other Operating Expenses17

Inflation on Other Operating Expenses18

Distribution and service policies19

Management information systems19

Quality Control strategy19

Inventory control20

Equipment20

Management and Ownership20

Management20

Principal/key employees21

Financial Data21

Current and Projected Balance Sheets21

Breakeven Analysis23

Financial Assumptions23

References25

Appendix26

Business Plan - Assisted Living Facility

Name, location, and legal form of business

The proposed ALF could be built, owned, and operated by some nonprofit organization, or even by a private firm. If the county (or a special district) owns and operates the facility, then a bond issue will be needed; if a private or nonprofit entity is involved, then a bank loan is possible.

Nature of the business

For this purpose this ALF will be built on a small home at start with 5 single occupancy units along with supporting common areas to meet the needs of area residents and will try to increase it to 22 units. The proposed facility will be approximately 14,791 square feet in size, and will be built upon a site that has not yet been identified.

The estimated cost to construct the ALF facility is $2.7 million, plus other development costs and pre opening costs, totaling approximately $3.7 million. Of this figure, this plan proposes that the business seek a $1 million Business Committed Grant from business community, and raise $500,000 cash locally. The business will also need to use existing land or solicit a donation of land for the construction site. The balance needed for construction (just over $2 million) will be sought from private lenders or community banks, or perhaps paid through a bond issue. (See the tables below for a complete breakdown of costs and source of funds).

The ALF project is consistent with an overall economic development strategy in Clayton County to add good paying, non seasonal jobs; strengthen its health industry cluster to diversify and stabilize the local economy; and build upon the natural strengths of the community (demographic trends, climate, and retiree friendly atmosphere). Once fully operationally, the ALF will add 11 full time equivalent jobs and more than $400,000 in annual wages and compensation to the local economy (Jackson, 1990).

Mission of business

The community desires to create an assisted living facility (the ALF) that becomes the long term care operator of choice for elderly residents of Clayton County. The ALF will provide exceptional care at an affordable price, implementing industry “best practices” to enhance the quality of life for residents.

Products and/or services

The Clayton County ALF will focus on developing and providing assisted living services in compliance with Georgia Department of Health licensing for Assisted Living Facilities, services will include:

Twenty four (24) hours a day access to medical personnel. A registered nurse and/or other medically trained staff will be on site 24 hours a day in case of emergency, to provide medication management, and to supervise daily living ...