group home business plan sample

Group Home Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their group home companies.

If you’re unfamiliar with creating a group home business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a group home business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Group Home Business Plan?

A business plan provides a snapshot of your group home business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Group Home

If you’re looking to start a group home business or grow your existing group home company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your group home business to improve your chances of success. Your group home business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Group Home Businesses

With regard to funding, the main sources of funding for a group home business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for group home companies.

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How to Write a Business Plan for a Group Home Business

If you want to start a group home business or expand your current group home business, you need a business plan. The guide below details the necessary information for how to write each essential component of your group home business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of group home business you are running and the status. For example, are you a startup, do you have a group home business that you would like to grow, or are you operating a chain of group homes in your business?

Next, provide an overview of each of the subsequent sections of your plan.

Give a brief overview of the group home industry.
Discuss the type of group home business you are operating.
Detail your direct competitors. Give an overview of your target customers.
Provide a snapshot of your marketing strategy. Identify the key members of your team.
Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of group home business you are operating.

For example, you might specialize in one of the following types of group home businesses:

Faith-based Group Home: In this type of group home business, you may specialize in adding spiritual support courses and counsel to the residence group home experience.
Boutique Group Home: If you are opening a boutique group home, you will want to offer distinctive, personalized services that appeal to your target audience. Offerings may include massage treatments, herbal wraps, nutritional supplements and counseling for the small group of guests in your boutique group home.
Senior Group Home: This type of group home business is focused on guests who are aged 65 years and older. Guests may attend classes on health and safety for seniors, as well as receive medical treatment and recovery options. Classes are small and residences are typically small in size. On-call medical care may also be offered.
Teen & Young Adult Group Home: Offering select group homes to teens and young adults offers a marketing advantage, as most teens will opt for this environment. Guests are engaged in physical activities, including dances and outdoor activities, as well as circle therapy groups, medical oversight and rooms that sleep up to four teens or adults.

In addition to explaining the type of group home business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

When and why did you start the business?
What milestones have you achieved to date? Milestones could include the number of guests served, the amount of revenue during the past six months, opening a second group home location, etc.
Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the group home industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the group home industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your group home business plan:

How big is the group home industry (in dollars)?
Is the market declining or increasing?
Who are the key competitors in the market?
Who are the key suppliers in the market?
What trends are affecting the industry?
What is the industry’s growth forecast over the next 5 – 10 years?
What is the relevant market size? That is, how big is the potential target market for your group home business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your group home business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, physicians, hospital placement staff.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of group home business you operate. Clearly, individuals would respond to different marketing promotions than hospital staff, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other group home businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes on-site church programs, welfare housing assistance and drug treatment centers. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

What types of customers do they serve?
What type of group home business are they?
What is their pricing (premium, low, etc.)?
What sets their business apart from others?
What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

Will you provide options for group home visitors on a daily or weekly basis?
Will you offer products or services that your competition doesn’t?
Will you provide better customer service?
Will you offer value-based pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a group home business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of group home company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide a six-month extended stay group home experience?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your group home company. Document where your company is situated and mention how the site will impact your success. For example, is your group home business located in a quiet neighborhood, a rural farming district, or an inner-city boarding house? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your group home marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

Advertise in regional medical periodicals and/or magazines
Reach out to physician websites
Distribute direct mail pieces to your target audience
Engage in email marketing
Advertise on social media platforms
Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your group home business, including answering calls, planning and stocking group home items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to admit your 100th guest, or when you hope to reach $X in revenue. It could also be when you expect to expand your group home business to a second or third location.

Management Team

To demonstrate your group home business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing group home businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a group home business or successfully running a small motel.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 10 guests per day, and/or offer group home experiences with amenities? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your group home business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a group home business:

Cost of medical care, medical supplies, and administrative staff
Cost of furnishings or accessories
Payroll or salaries paid to staff
Business insurance
Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your group home location lease or a list of associates who are already lined up to refer guests to your business.

Group Home Business Plan Template PDF

You can download our group home business plan PDF to help you get started on your own business plan.

Writing a business plan for your group home business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the group home industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful group home business.

Don’t you wish there was a faster, easier way to finish your Group Home business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. See how Growthink’s business plan advisors can give you a winning business plan.

Other Helpful Business Plan Articles & Templates

Group Home Business Plan Template

If you want to start a Group Home business or expand your current Group Home business, you need a business plan.

The following Group Home business plan template gives you the key elements to include in a winning business plan. It can be used to create an elderly group home business plan, a disabled group home business plan or a youth group home plan.

You can download our group home business plan template (including a full, customizable financial model) to your computer here.

Sample Group Home Business Plan Template

Below is a group home business plan example with each of the key sections to help you write a group home business plan for your own company.

I. Executive Summary

Business overview.

[Company Name] is a licensed group home facility located in [insert location here] that is specifically designed and equipped with the necessary accommodations to provide comfort and security to all residents. [Company Name] provides a clean, comfortable, nurturing and safe environment for the elderly and disabled.

Products Served

[Company Name] will provide a supportive home that includes services that assist its residents with completing daily basic and simple tasks, such as taking medication, personal hygiene, making dinner, transportation, budgeting their personal allowance, socializing and grocery shopping.

Customer Focus

[Company Name] will serve the aging and disabled community of [company location]. Many of the aging and disabled community has special and severe conditions that prevent them from living independently and require constant oversight and 24-hour care in a comfortable facility.

Management Team

[Company Name] is led by [Founder’s name], who has worked for [xx] years for various living facilities around [company location]. [Founder] is a licensed Group Home Administrator, nurse, and social health worker with over [xx] years of experience. He has a Master’s Degree in Public Health and is truly passionate when it comes to taking care of people with disabilities. He knew in his heart that this disadvantaged and deserving segment of the population deserved a better quality of care.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

There is currently a high demand for group home services in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
The Company’s location is in a high-volume traffic area and will thus be highly convenient for a significant number of aging and disabled residing nearby.
The management team has a track record of success in the group home business.
The group home business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $460,000 to launch a group home. Specifically, these funds will be used as follows:

Facility design/build-out: $340,000
Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

II. Company Overview

Who is [company name].

[Company Name] is a new group home in [insert location here] that offers expert nursing and personal care services to aging individuals and those with disabilities, all under one roof. [Founder’s name]’s years of expertise have taught him how to provide safe and supportive care for the elderly and disabled. [Founder’s name] recognizes the need for a high-quality, low-cost group home after his previous employment failed to maintain the facility to the level of cleanliness and care demanded.

[Company Name] is located in the [Company Location]’s metroplex. There is a large population of aging and disabled persons within the community and there are not enough group homes to support this segment of the population.

[Company Name]’s History

[Founder’s Name] is a group home administrator with a passion for providing care for aging and disabled people. [Company Name] will become a renowned group home known for its exceptional care and services.

[Founder’s Name] has identified the neighborhood and building where [Company Name] will be located. He has begun lease negotiations and pricing out of construction to transform the building into a comfortable and capable home for those who will be residing at the group home.

Since incorporation, the company has achieved the following milestones:

Developed the company’s name, logo, and website
Found location and signed Letter of Intent to lease it
Determined the list of services to be offered
Began recruiting key employees for the group home

[Company Name]’s Services

Below is [Company Name]’s list of services. All services will be provided by a trained and licensed staff.

Three meals a day
Monitoring of medication
Personal care, including dressing and bathing
Housekeeping and laundry
24-hour emergency care
Skilled nursing services
Social and recreational activities
Light exercise program

III. Industry Analysis

The group home industry is expected to grow robustly over the next five years. There are 9,623 group homes in the US with a market size of $8 billion. The group homes industry in the US is the 31st highest ranked Healthcare and Social Assistance industry by market size.

The primary positive factors affecting this industry are low competition and low revenue volatility. Federal funding for Medicare and Medicaid is expected to increase, representing a potential opportunity for this industry. Medicaid is a significant source of funding for children and adults with disabilities who live in long-term residential care facilities. When federal funding for these programs rises, industry revenue is positively affected. In addition, the continued growth of the aging population and people with one form of disability or the other has stimulated demand for industry services.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will provide services to the elderly and individuals with disabilities in [company location] and the neighboring regions.

There are thousands of retired, elderly adults in the [business location] neighborhood who need more attention and round-the-clock care. There is also a sizable population of disabled persons who have impairments that make a living independently with challenges.

The precise demographics of the town in which the Company resides is as follows:

Customer Segmentation

The Company will primarily target the following customer segments:

Aging Population: Elderly individuals that require additional assistance and supervision.
Disabled individuals: People with disabilities who are unable to live independently and require 24-hour care and attention.

V. Competitive Analysis

Direct & indirect competitors.

TGS Group Homes TGS Group Homes is the town’s most well-known group home and has been in business since 1971. They have cared for more than 12,000 children. TGS Group Homes is a non-profit 501(c)(3) organization that cares for children who are facing abuse, neglect, emotional trauma, and substance abuse problems. TGS Group Homes offer care, guidance, and treatment.

A Loving Home A Loving Home is a group home that was established in 1980. A Loving Home focuses on providing continuous, compassionate care in an environment where residents’ emotional needs are met. A Loving Home offers all-Inclusive group home care in an upscale neighborhood setting. Its residential care homes are built specifically and exclusively for adults and children who need assistance with activities of daily living.

Just like Home Just like Home was established in 2000 and has since built its reputation on the quality of care in the United States. It is a 94-bed certified and licensed group home facility. Just like Home’s philosophy is to improve quality of life, prohibit discrimination based on race, color, religion, sex, age, handicap, national origin, and diagnosis, and ensure equality in all aspects of care.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

Compassionate Staff: Knowledgeable and friendly staff of nurses, counselor therapists, aides, and social workers who are not only knowledgeable in their field but place a special emphasis on compassion.
Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.
Quality Care: [Company Name] will provide expert services to the residents, who will receive quality care so that they feel as comfortable as they can be.
Facility: [Company Name]’s facility will be spacious, clean, and comfortable to ensure the resident is at their maximum satisfaction.
Pricing: [Company Name]’s pricing will be affordable than its competition. The Company will also accept most types of insurance, as well as Medicare and Medicaid.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as a respectable and known quality care company in the group home market. The residents will receive premium quality and resident-focused care in the facility.

The [Company Name] brand will focus on the Company’s unique value proposition:

Knowledgeable, friendly, expert staff.
Quality level of service and care.
Cleanest and most comfortable group home in the metroplex.
Most competitive pricing for the area’s group home.

Promotions Strategy

[Company Name] expects its target market to be the aging people, elderly patients, youth and disabled individuals. The Company’s promotions strategy to reach the audience includes:

Local Hospitals [Company Name] will partner with local hospitals and make sure they send referrals and highly recommend [company name] to its patients and their families upon the patient’s release from the hospital and into a group home.

Website [Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied residents and their families. The website will be highly informative and be designed in a way that is friendly and eye-catching.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like podcasts, television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content and post customer reviews that will increase audience awareness and loyalty.

Social Workers [Company Name] will work with social workers who deal with individuals who have severe disabilities and are not able to live independently.

Billboard [Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the group home services. The customer can expect to receive quality care and services at a more affordable price.

VII. Operations Plan

Functional roles.

To execute on [Company Name]’s business model, the company needs to perform many functions, including the following:

Healthcare Functions

Social worker
Medical management counselor

Administrative Functions

General & administrative functions including legal, marketing, bookkeeping, etc.
Home Director
Staff management and scheduling

Miscellaneous

Kitchen staff/cook
Maintenance personnel

VIII. Management Team

Management team members.

[Company Name] is led by [Founder’s name], who has worked for [xx] years for various living facilities around [company location]. [Founder] is a licensed Group Home Administrator, nurse, and social health worker with over [xx] years of experience. He is truly passionate when it comes to taking care of people with disabilities. He knew in his heart that this disadvantaged and deserving segment of the population deserved a better quality of care.

[Founder] graduated from the University of ABC, where he majored in Public Health.

Hiring Plan

[Founder] will serve as the CEO. In order to launch and maintain a high-quality group home, the company will need to hire the following personnel:

Medical Director
Group Home Director
Nurses [Number]
Accountant [Number]
Maintenance Personnel [Number]

IX. Financial Plan

Revenue and cost drivers.

The revenues for [Company Name] will come from the income it will charge the residents and their insurance providers for the health care services it provides.

The major costs for the company will be the cost of facility remodeling, furnishings, equipment, food and beverages, and salaries of the staff. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].

Capital Requirements and Use of Funds

[Company Name] is currently seeking $460,000 to launch a group home. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows: