Caring for the elders is a noble job, as well as a profitable business idea. Considering the rising elderly population, you will find many eldercare business ideas.
If you have decided to start a business related to eldercare you are on the right track. However, before investing your money and time in the business you must prepare a well-drafted and well-thought eldercare business plan.
Consider all the pros and cons while preparing the eldercare business plan. Collect relevant and necessary data diligently and then move forward.
Calculate the funds required for your senior care business carefully and also make a realistic projection of profits. Decide on the source of funds. A marketing plan is also very important for your business. These points need to be mentioned clearly in your eldercare business plan.
Here are the 14 Steps to Start an Eldercare Business
1. Demographic and Economic Research
The first step towards starting an eldercare business plan is in-depth market research. Find out the number of elder people in the area where you want to start your business. This is a decisive point in your business plan as more elderly people in the area will ensure a better prospect for your business.
Along with demography, find out the economic profile of the elderly people of the area. More affordability will be more helpful for your business. Moreover, you can plan the nature of your business according to the economic profile of your clients.
2. Select the Nature of Your Eldercare Business
After completing the research work, you have to decide on the nature of your business. The eldercare business includes several business ideas like independent or assisted living facilities, home care, nursing home, and assistance services like cleaning, gardening, handyman, etc. You have to find your ideal business idea according to the research output and your capability and funds.
If you have access to a big investment, you can open a living facility for elderly people. On the other hand, if you want to start on your capacity or with moderate or low investment, you can think of providing various services to the elders. Mention the nature and scale of your business in the eldercare business plan along with plans to expand the business.
3. Create an Eldercare Business Plan
Now that you have decided on the nature of the eldercare business you want to start, it is time to make the business plan. Drafting a proper business plan is extremely important for any business.
You have to explain the different aspects of your eldercare business in this business plan. It will have the details of your aims and objectives behind the business, nature, and scale of the business, funds required for the business, sources of funds, expense heads, fixed and variable costs, profit percentage, etc.
4. Cost of Starting an Eldercare Business
Cost depends on the nature of the business you choose. If you intend to start an independent living facility for 50 elders, you will need a fund of approximately $ 3-4 Million. For an assisted living facility for 50 residents, you will need approximately $6-7 Million. If you choose to provide in-home services you will need a fund of approximately $100, 000.
The source of funds may be your savings, soft loan from family members or friends, bank loans, etc.
5. List the Expense Heads
The expense depends on the nature of your business. If you want to start a living facility or nursing home, your expense heads will include construction or lease/rent, the salary of staff like doctors, nurses, caregivers, maintenance staff, office staff, accounting, gardener, chef, license, taxes, insurance, etc. In the case of smaller business ideas like caregiving or other kinds of service or consultancy, your expense heads will include the salary of staff, a small office, conveyance, car, license fee, taxes, etc.
Along with expense heads also mention the amount of investment you need to start the business and the source of funds. It may be your savings, a soft loan from family members or friends, a bank loan, etc.
6. Name Your Senior Care Business
The next step of your elder care business plan is naming your business. Find a suitable name for your business. It should be thoughtful, meaningful, and relevant to the nature of your business. Many online portals suggest names for eldercare businesses. You can take their help. Along with choosing the name, design a logo for your business. That will help you in creating an identity.
7. Register & Book Domain for Your Eldercare Business
After you choose the name, you have to complete the formalities of registration of the name. Along with registration, you have to get the domain in the name of your business. If the domain is not available, you may have to change the name. That is why it is wise to keep a shortlist of a few chosen names so that you can change them instantly.
Online portals that suggest names also have the option of finding the domain availability in that name. So consult those portals to check the availability of a domain.
8. Create an Eldercare Business Identity
The next step of your elder care business plan is to legalize your business. Every country and state offers a wide range of business structures under which you can operate a business.
For example, in the United States, many kinds of business identities are there that include Sole Proprietorship, Partnership, LLC, Corporation, etc. You have to choose the identity that is most convenient and suitable for you. Consult your legal expert regarding this matter.
9. License and Permits
Eldercare businesses, especially living facilities or nursing homes require several licenses and permits for operating. Obtain the license and permits according to the nature of your business. Otherwise, you may have to face a lot of difficulties in running your business.
10. Apply for Taxes
Register your eldercare business for the necessary taxes both at the federal as well as state levels. Timely payment of taxes will increase the credibility of your business. If you want, you can consult a tax expert. Employer Identification Number or EIN is also necessary.
11. Buy Insurance for Your Senior Care Business
Insurance is another important factor for your business. Get General Liability Insurance and Workers’ Compensation Insurance and pay the due premiums in time.
12. Open a Business Bank Account
Open a bank account in the name of your business at the beginning of your business operations. This will help you immensely in financial management. Get a business credit card for interest-free credit for a limited period.
13. Calculate the Profit Margin
Profit percentage depends on the nature of your business and the scale of operation. In the case of the living facility for elders, you may expect 30-40% profit. While for a service-related business like caregiver or handyman service or cleaning, catering, gardening, or pet sitting services, you can have a profit of 15-20%. However, if you can scale up the business and get more clients, your profit percentage will increase with time.
14. Make a Marketing Plan to Get More Clients
Whatever your nature of business, you have to follow a rigorous marketing policy to expand your business and get more income. Some of the effective strategies are the following:
a) Create a Website
Website is an important marketing and publicity tool. Design a simple but informative website for your eldercare business mentioning your services properly and clearly. Keep the contact section with details like the name of persons, their contact numbers, etc. You can check our guide to creating a website to learn more.
b) Personal Visits
Visit your prospective clients and explain the nature of the care and services you are offering. Bring out the special features or USPs of your business and try to convince them.
c) Printed Publicity
Printed publicity materials like brochures, posters, flyers, pamphlets, hoardings, banners, etc help a lot in spreading the name of your business. Attractively design printed publicity materials to grab the attention of your prospective clients or their family.
Advertisements in newspapers, magazines, radio, TV, and digital media will help to spread the name of your business.
e) Personal Networking
Personal networking will help you immensely to grow your eldercare business. Hence try to develop personal networking to the best of your abilities. Personal networking will also provide you with referral clients.
f) Explore Social Media
Use the platform of social media to market and publicize your business. Create a page on social media in the name of your business and keep it updated. Share the link to your website there. Use your social media account for this purpose also.
g) Personal Touch
Whatever your marketing strategy, the personal touch is an important factor in the eldercare business of any kind. Try to be very caring and personal with the elders ensuring them all kinds of co-operation and a comfortable and hassle-free life with your co-operation. This personal touch will help to convince your prospective clients more than anything else.
h) Promotional Activities
Organize some kind of promotional activities for the elders. This may be a visit to a flower show, a special concert or a movie show, or a small outing nearby. These promotional activities will cheer up the elders and make them feel happy which in turn will help you in growing your business.
The eldercare business is profitable and prospective. You have to find the right kind of business and prepare a suitable eldercare business plan to create a solid foundation for your business.
Frequently Asked Questions
What services do elderly need most?
- Personal Care
- Nutrition and Meal Service
- Medication Management
- Transportation Services
- Financial Management
- Safety and Security Services
What business can be done after retirement?
It is without saying, retired people gain huge experience and expertise in their related working fields. Hence, they are the among the best people advising younger ones. Retired individuals can provide consulting, teaching, and mentoring services. These type of activities not only are rewarding but also fetches good money.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.