What Are the Start-Up Costs for a Senior Care Business?
The start-up costs for a senior care business vary considerably based on the services provided. In this particular post we’ll focus on facilities that provide non-medical assisted living services.
An average size assisted living facility (with about 80 units) will cost roughly $11 million dollars to start, according to Forbes.com. This is based on an average per-room cost of $130,000 to $140,000. It’s important to note that this estimated cost includes the land purchase, as well as design, construction, equipment, furniture, sales and marketing—in other words, constructing a facility from the ground up.
Since most people don’t have millions on hand to start a business, those interested in running an assisted living facility will have to obtain loans from banks or other lending institutions and/or find equity partners.
A much less expensive option is to start an in-home non-medical senior care business. Since staff works in the homes of clients, many of the expenses of running such a business, including the building itself, equipment and furniture, are drastically reduced or eliminated. Compared with starting an assisted living facility, an in-home care business typically costs in the range of $100,000-$150,000 to launch. Non-medical in-home care focuses on helping seniors with everyday tasks like dressing, bathing, errands, medication management, shopping, transportation, etc., and provides seniors with companionship.
The nation’s senior demographic is growing, with our aging Baby Boomer population. By the year 2040 the number of people age 65 or older is expected to increase to 20 percent of the population, up from 13 percent today. These demographic changes will increase demand for both non-medical and medical in-home care, making senior care one of the most recession-proof industries today. If your goal is to help seniors, owning and operating a senior care business may be right for you.
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