GQ Residential Care Home Business Plan

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Executive Summary

GQ Residential Care Home (final name still to be determined) is a standard residential care home facility
that will be located in the heart of Quezon City, neatly renovated and secured spacious housing facility.

Our residential care home, also known as RCFE (residential care facility for the elderly), adult day home,
board-and-care home, or personal care home, is for a small group setting that provide basic services
(usually meals and light assistance) at a much lower cost than large residential care home communities
or nursing homes. Care homes are small, residential communities for seniors who need some assistance
with their day-to-day tasks. RCFEs typically provide a similar care level to residential care home
facilities, but the community is significantly smaller. Most care homes house ten or fewer residents,
compared to dozens or even hundreds of residents in residential care home communities. The small
size can be a welcome feature for seniors who are shy or prefer to keep to themselves. In fact, residents
of care homes receive more personalized attention than residents of larger communities because of its
size. It is designed and equipped with the needed accommodation to give comfort and security to all
residence irrespective of their religious affiliations, race, and health condition. Our care home may be
geared for those who desire companionship but do not need regular assistance, or even to those others
who need help with the activities of daily living (ADLs), such as dressing and bathing. In some cases, if
appropriately staffed, medication administration and limited medical care may also be provided. We are
set to take care of people who can’t take care of themselves be it the elderly, the young, or people with
one form or disability or the other.

This facility is a family owned and managed business that believes in the passionate pursuit of
excellence and financial success with uncompromising services and integrity which is why we have
decided to venture into the hospitability industry by establishing our own residential care home
facility(residential care home facility business).

We are certain that our values will help us drive the business to enviable heights and also help us attract
the numbers of residents that will make our facility fully occupied year in year out.

Despite the fact that we are a non-medical residential care home facility, we are going to be a health
conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our
organizational structure and indeed at all levels of the organization.

Our accommodation facility will be decorated in an exquisite and elegant facade, so much so that it will
be a conspicuous edifice in the city where it is located. We will provide a conducive home for our
residents.

We will be equipped with everything that will make life comfortable for the elderly and disable, if any.
We will also install a free Wi-Fi that will enable our residents and guests surf the internet with their
laptop in the room free of charge, and there will be wireless access in all the public area within the
lodging facility.
Owned and managed by the x family, x and wife, x, are licensed non-medical home care administrator
and social health worker in the Philippines with well over 30 years of experience working for own brand
in the industry. They are truly passionate when it comes to taking care of the aging population and
people with disabilities.

With that, we know that we will enable to consistently achieve our set business goals, increase our
profitability, and reinforce our positive long-term relationships with our clientele, partners (vendors),
and all our employees as well. The financial aspect study of the business presented later will show good
financial ratios beginning on the second year thereby already demonstrating a profit.

The costs of accommodation, income generated from the lease of units, and other start up funds were
used as premise for the financial model and compared with the renovation and operation costs for a
small residential care home facility in the Philippines. The financial model, under the above-mentioned
conditions and the assumption that for 95 percent of the units long term leasing contracts can be
entered within the first two years of operation period, will show an ROI on the basis “earnings before
interests and taxes” of x percent. The invested capital would be paid back after the third operation year.
It can be concluded using this financial model which incorporated the cost and income structures in
Philippines shows that investing in small residential care home facility in the Philippines can be
profitable.

Industry Overview

Thousands of boomers are turning 60 daily, so the demographics are looking favorable on the senior
housing market. Many aging seniors will live in their own home, with family or in someone else’s. But
up to 8% will choose senior living for their housing needs, which creates increased demand. Property
managers, as well as both large and small business owners, may wisely choose to accommodate this
increased need.

When it comes to senior housing, the options are diverse and categorized into the specific level of care
needed, creating the opportunity for seniors to maintain as much independence as possible as they age.
Decades ago, the primary senior housing in the Philippines was simply a government or an NGO run
social welfare nursing home with fully staffed nursing, rehabilitation services, activities staff, a chaplain,
and a large community dining room which provided three hot meals a day and a space for large seasonal
parties.

Today, there are more options:

 Senior Apartments
 Independent Living
 Residential Care Home
 Assisted Living
 Nursing Home
 Continuous Care Retirement Communities

When it comes to caring for people, there are several options and one of them is to take them to a non–
medical Residential Care Home facility. A non–medical Residential Care Home facility is a private
residence for the elderly, children or young people who cannot live with their own families due to some
obvious reasons, or people with chronic disabilities who may be adults or seniors and can’t take proper
care of themselves if left to live alone.

There are no laws in the Philippines that manages and controls any of above options before can
commence operations and even during actual operation. There is also no limit in the number of
residents and the number of staff but there should be at least one trained caregiver there 24 hours a
day and 7 days a week.

However, a standard residential care home facility is expected to have a house manager, designated
night manager, designated weekend activity coordinator, and 2 or more caregivers depending on the
size of the facility. It is important to say that residents of non-medical Residential Care Home facilities
are people who don’t have need for medical care and is designed for elderly people, and people with
one form of disability or the other.

Non-medical Residential Care Home facilities are not expected to accommodate people with medical
conditions such as autism, intellectual disability, chronic or long-term mental/psychiatric disorder, or
physical or even multiple disabilities et al. They can all be well treated and managed by medical clinics
and hospitals, and other medical groups.

As a matter of fact, a non-medical Residential Care Home facilities may also be used as transitional or
temporary homes to prepare for independent living (in an apartment or return to family or marriage and
employment), but mostly were viewed as permanent community homes. Society may prevent people
with significant needs from living in local communities with social acceptance key to community
development.

Unless governed by strict house rules, the residents of non-medical Residential Care Home facilities
sometimes need continual or supported assistance in order for them to be able to complete daily basic
and simple tasks, such as taking medication or bathing, making dinners, having conversations, making
appointments, and getting to work or a day service, budget their personal allowance, select photos for
their room or album, meet neighbors and “carry out civic duties,” go grocery shopping, eat in
restaurants, make emergency calls or inquiries, and exercise regularly amongst other activities.

Because of the absence of controlling government agencies, there is no available data that will show the
regions that account for the largest share of establishments in the industry as well as employment in this
industry. The DOH requires licensing only for regulated health facilities and services such as:

1. Ambulance Service and Ambulance Service Provider

2. Ambulatory Surgical Clinic
3. Blood Center
4. Dialysis Center
5. Hospital
6. Hospital Extension Facility
7. Infirmaries
8. Psychiatric

and Certificate of Accreditation to:

1. Drug Abuse Treatment and Rehabilitation Center

2. Drug Testing Laboratories
 3. Kidney Transplant Unit
4. Medical Facility for Overseas Workers and Seafarers
5. Laboratory for Analysis Water

and Certificate of Registration for Special Clinical Laboratories.

However, worth noting is that residential care home facilityline of businesses will enjoy good patronage
particularly if they are well positioned and if they know how to reach out to their target market, which is
the aging population and those who can’t take care of themselves.

Our Services

This facility is set to operate a standard residential care home facility in Quezon City. The fact that we
want to become a force to reckon with in the Home Care Facility industry means that we will provide
our resident a conducive and highly secured accommodation.

In all that we do, we will ensure that our residents are satisfied and are willing to recommend our facility
to their family members and friends. We are in the non-medical home care business to deliver excellent
services and to make profits and we are willing to go the extra mile within the law of the Philippines to
achieve our business goals, aims and objectives.

Our Mission and Vision Statement

Our vision is to become the number one choice when it comes to residential care home facility in the
whole of Metro Manila and also to be amongst the top 20 non-medical home care facilities in the
Philippines within the next 10 years.

Our mission is to build a profitable and successful residential care home facility that will meet and
surpass the needs of all the residents of our facility.

Our Business Structure

We designed our new Residential Care Home facility vital to include distinctive elements to set us apart
from the competition. Our Residential Care Home facility is well designed at an optimal location and
that our expertise in operations will make us succeed in today’s market. This facility is a business that
will be built on a solid foundation. From the outset, we have decided to recruit only qualified
professionals and dedicated family members (non-medical home care administrator, nurses, caregivers,
nurses’ aides, oldsitters, and kasambahays) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the home care facility industry which is why
we decided to recruit only well experienced and qualified employees as foundational staff of the
organization. We hope to leverage also on their expertise to build our business brand to be well
accepted in National Capital Region and in the whole of Luzon.

When hiring, we will look out for applicants that are not just qualified and experienced, but homely,
honest, customer-centric and are ready to work to help us build a prosperous business that will benefit
all the stake holders (the owners, workforce, and customers).

Initially, these are the positions that will be available at the facility;
Chief Executive Officer
Marketing and Sales Executive (can be outsourced)
Accountant (can be outsourced)
Non-medical Facility Administrator (as Human Resources and Admin Manager)
Home Caregivers
Kasambahay (as cook, cleaner, washer, oldsitter)

Job Roles and Responsibilities

Chief Executive Officer:

 Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching,

counseling, and disciplining managers; communicating values, strategies, and objectives;
assigning accountabilities; planning, monitoring, and appraising job results; developing
incentives; developing a climate for offering information and opinions; providing educational
opportunities.
 Creates, communicates, and implements the organization’s vision, mission, and overall direction
– i.e. leading the development and implementation of the overall organization’s strategy.
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Creates, communicates, and implements the organization’s vision, mission, and overall direction
– i.e., leading the development and implementation of the overall organization’s strategy.
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Reports to the board/partners.

Marketing and Sales Executive:

 Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of projects.
 Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
 Responsible for handling business research, market surveys and feasibility studies for clients
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information
 Represent GQ Residential Care Home in strategic meetings
 Helps to increase sales and growth for GQ Residential Care Home .

Non-medical Home Care Administrator (Admin and HR Manager):

 Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
 Designs job descriptions with KPI to drive performance management for clients
 Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies,
Procedures and Processes
  Maintains office supplies by checking stocks; placing and expediting orders; evaluating new
products.
 Ensures operation of equipment by completing preventive maintenance requirements, calling
for repairs.
 Designs and implements resident activities on scheduled basis
 Defines job positions for recruitment and managing interviewing process
 Carries out staff induction for new team members
 Responsible for training, evaluation, and assessment of employees
 Responsible for arranging travel, meetings, and appointments
 Updates job knowledge by participating in educational opportunities; reading professional
publications; maintaining personal networks; participating in professional organizations.
 Oversees the smooth running of the daily home activities.
 Acts as Cashier, manages cash funds, issues transaction receipts, and reports sales and cash
disbursements to Accountant (submits necessary docs).

Caregivers/Nurse’s Aides:

 Responsible for managing our residents in their various houses

 Handles personal injury case management
 Responsible for offering home medication management services
 Implements approved activities for residents

Accountant

 Responsible for preparing financial reports, budgets, and financial statements for the
organization
 Provides managements with financial analyses, development budgets, and accounting reports;
analyzes financial feasibility for the most complex proposed projects; conducts market research
to forecast trends and business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting for the
organization
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensuring compliance with taxation legislation
 Handles all financial transactions for the Company
 Serves as internal auditor for the Company

Kasambahay:

 Responsible for cleaning the facility at all times

 Ensure that toiletries and supplies don’t run out of stock
 Assist our residents when they need to take their bath and carry out other household tasks
 Cleans both the interior and exterior of the facility
 Markets and cooks daily regular meals
 Wash clothes and linens used by residents
  Handle any other duty as assigned by the facility manager

Preliminary Research

We gathered data with online surveys and individual interviews from different facilities in Metro Manila
and suburbs to help us gain insight on the needs and desires for the residential care home of potential
residents (see attached Excel Report).

Many surveyed institutions will not allow ocular visits to their premises due to covid and are adamant to
provide exacting data and full disclosure to questions being asked for confidentiality reasons. Many are
afraid information sought may be used for personal consumption or be used by government entities or
private individuals conducting discreet investigations for court litigations and other legal purposes as
such data may also be used to facilitate further inquiry and site inspection for violation of government
standards most specially against labor and the Data Privacy and Protection Act. However, some are
friendly and generous enough to provide very useful information.

The following are our observations and conclusions from the conducted research and interviews:

Management

 Maintaining higher occupancy is very essential to staying profitable for Residential Care Home
homeowners. Unlike larger purpose-built assisted living facilities, a Residential Care Home
normally has 10 or fewer residents.  They’re typically single-family homes converted to use for
assisted living. In a smaller Residential Care Home, let’s say for up to 10 residents, you are 90%
occupied if you have just one vacancy, two is 80%, three is 70%.  And if four you are more likely
already losing money if you weren’t still.  In a larger facility, two or three vacancies are just
normal turnover and the cost of the lost revenue can be absorbed more easily.  Not so in a
smaller Residential Care Home. 

 Many assisted living facilities homeowners are doctors, nurses, or nursing assistants. They have
a deep reverence for the elderly and take excellent care of them. However, these same
compassionate people sometimes are selective, feel dirty or unethical trying to close customers
(feedbacks from residents).

 Many small Residential Care Home and assisted living facilities are family-run businesses. This
means mother, father, adult children, and extended family members alternate as caretakers. So
even if labor is cheap in Philippines, this type of arrangement still helps to minimize wages paid
(including overtime).

 Most surveyed have progressed and expanded their business through the years. One institution
started as a foundation (NGO), to shelter and a provide health care for abandoned persons with
disabilities (PWD) until it progressed as a profit organization into a home for the elderly after 14
years from when it started. This goes only to show that the business concept is profitable.

 Statistics show that eighty percent (80%) of small Residential Care Home facilities close within
five years. That sounds awful, but that’s about the same failure rate for small businesses in any
industry. The advantage of having your property and structure owned and renovated is that you
can sell the property at a much higher market price in the eventuality.
  Some homes make use of volunteer labor. Volunteers don’t do the caretaking, but they do
provide other services for the residents (e.g., entertainment) that make caretaking easier. In
some cases, high school and college students can earn course credit by volunteering at a
residential care home as part of their socio-civic school program activities like Youth Civic Action
Program (YCAP), Mapua-NSTP, and the likes.

 The procedure of Camillus Medhaven Nursing Home is worth emulating. Other than getting an
all risk General Liability Insurance, a well written MOA or some form of a release of liability and
waiver of all claims that protects your business from possible legal implications and
consequences from any injury incurred or sustained by the resident while inside the facility most
specially from sickness or illnesses the resident may already have but were concealed from you
prior admission.

 Consequentially, the owner-employer should also protect himself against claims for personal
liability committed by employees due to negligence and misconducts. As an employer and want
to make sure you’re protected in the event your employees make harmful mistakes, it is
recommended that you talk to an employment lawyer to draft a very well written employment
contract to include statements relating to release of liability, even if having it is not a fool proof
assurance.

 To keep their pipeline full, Residential Care Home homeowners often rely on the referral from
individuals or agencies. These people charge a fee for every resident who moves in (normally
equivalent to 1 month's brokering fee). However, residential turnover is very unpredictable and
often high, regardless of client's satisfaction level (for example, instances such as death or
illness). Which means an owner may pay multiple fees for the same bedroom in one year. Not
surprisingly, owners come to resent these agencies. However, to remedy this predicament,
arrange with individuals or agencies to accept a pro-rated monthly payment of referral fees
equivalent to 1/12 of total fees every month for the duration of the year.

 You can offer available Personal Kits, bed mattress, comforters, memory toppers, pillows, etc.
for sale to residents or other small tools and appliances like radio, cellphone, TV, etc. for those
who wish to avail at cost for additional income.

 To mitigate risks and liabilities in providing more care to seniors in administration of medicines,
many Residential Care Home facilities are getting with the times and digitizing their medication
management systems and resident health files. Tracking medication management electronically
helps to reduce incidences of adverse drug reactions, keeps records up-to-date, and makes it
easier to access a resident’s health file, including installing in the facility a smart-home health
monitoring systems and wearables that wirelessly track a resident’s medications and vital signs
and call for help when it senses something could be wrong. 

Location

 Most elderly generation are attracted by cities as medical facilities and convenience goods are
more accessible. This is why in planning and creating Residential Care Home and assisted living
destinations, the accessibility of these goods needs to be considered.
  Seniors don’t normally travel very far when searching for a Residential Care Home home. In
most cases, it’s close to where they last resided, or where one of their children lives. The
location is best where the community is large and overly populated.
 Family members prefer home care facilities near their homes to visit their loved ones more
often as possible. While for others, it is the resident's preference to decide where to stay
specially after personally seeing the place.
 Location, a good name, and aesthetics (beauty, usability and enhance functionalities with
attractive design and layouts) of the place may play an important determining factor by some
potential client to decide where to place their elderlies. For some, cost is only secondary.
 Large scale developers assisted living and retirement communities for elderlies are tied up with
retirees wanting to retire in the Philippines though most retirees prefer high-end living and with
tour-in activities to places where are conducive to nature and with clean air and environment.

Accommodations and Services

 Residential Care Home range in size from up to 10 beds on four bedrooms to large scale
developments containing hundreds of multiple-occupancy bedrooms, referred to as
communities. It is critical that you pull only data for the type of facility you plan to open,
otherwise you will draw the wrong conclusions which could lead to a financial disaster.
However, the divide between a small home and a massive building is about more than the size.
Some small Residential Care Home homeowners offer premium services (e.g., organic food,
luxury bedding, guided tours, etc.), which is better than those who don’t for the simple reason
that the profit margin on premium service provides a cushion to increase the price. Premium
service may be a way to differentiate the home.
 Having 10 beds and fully occupied is the ideal number of residents if facility is located in NCR
and metro suburbs to be profitable due to high cost of living with higher average minimum wage
compared to other regions in the country.
 Most surveyed facilities (except for one) invest in providing more shared rooms than a single
room. The difference in rates between them is not wide but the cost to maintain shared rooms
(with CR and/or Airconditioning) and single room is the same not to mention the savings that
may also be derived from space compression.
 Except for the affluent and the very rich, a lot more clients would prefer to put their elderlies in
rooms shared with another person, cost-wise (cost saving) and companion-wise (some buddy to
converse with).
 It is always worthy and advantageous to attract clients that have additional inclusions than mere
basics. However, the cost to implement more has an impact on the expense. If that is a major
consideration, we can tell ahead our potential clients of our future plans. Having good visions
like for example expanding your facility vertically, if horizontally is not feasible, to increase
planned social activities. This is better than not having any as this could improve sales
 Selling something as expensive as assisted living and Residential Care Home means
understanding the customer journey. Knowledgeable and experienced owners structure their
marketing efforts in a series of steps, all of which provide the prospect incentive to keep going.
Selling, of course, starts with little things like a cheerful voice answering the phone (good
customer service).
 New trend in Residential Care Home in Philippines is renting units in Condominium Properties to
accommodate clients getting more rooms as they grow in numbers. The lease payments from
 clients will cover condominium rent and dues, caregiver wages, and meals. What remains are
the profit.
 Care homes facilities are beginning to embrace the new norm of ghost kitchens and food
delivery services as arising solution to the dilemma senior care home providers face in hiring
chefs, cooks, and nutritionists in the preparation of and maintenance of a well-balanced, healthy
and therapeutic meals for seniors. This ghost kitchens with delivery service, like Eat’s Life
Manila, Ketos of Manila, Feel Good Food Group, etc., costs only Php550-650 per day (complete
meal package of breakfast, lunch, dinner, and 1 snack) is beloved by patrons because of their
freshly cooked and always delish  calorie-counted meals, which are also surprisingly filling. The
meal plans come with different varieties to choose from specially catered for seniors with
dietary restrictions suffering from diabetis, renal problem, cardiovascular disease, and
hypertensive, and to others who are vegetarian, on slimming diet, gaining muscles, or on
balanced meal. Care homes may even cut down expenses from wages of hired cooks,
nutritionists, and cleaners while at the same time providing a pleasurable dining experience for
residents.  There are numerous ghost kitchen providers in Metro Manila.
 Small residential care home who availed of ghost kitchens will only worry about laundry and
housekeeping. This can be remedied by simply hiring a Kasambahay. A kasambahay is
governed by Kasambahay Law. They are not considered as employee for purposes of registering
at the Department of Labor and Employment (DOLE) and paid only P5K monthly, if to reside in
Metro Manila.
 Seniors with OSCA IDs accompanied by a caretaker can now watch free movies in all movie
houses in respective cities where they reside at certain days in a week. This has become a
benefit by the government for seniors and a look forward interesting activity for seniors in
Residential Care Home.

Prices

 Differentiation in Prices vary depending on the following conditions: care type, accommodation,
environment, and cost of living. Better shelter conditions and difficult tasks administered to
residents certainly demand a higher price. Dormitories offer the least price starts at Php25K per
month for residents.
 Day care service prices depend on condition of patient and the kind of care to be given.
Currently, most surveyed do not accept day care due to the pandemic except when resident is
fully vaccinated and can present an RTPCR test (taken within the last 2 days). All staff and
residents of surveyed have all been fully inoculated.
 The monthly cost of a Residential Care Home home Php50k and above rules out the vast
majority of the senior population as prospects. Most seniors or relatives of seniors pay cash
from their savings and cannot afford anything more than a short stay in a Residential Care
Home.
 Large scale developers do not offer discounts to Foreigners. Even without discount prices are
still cheap compared to prices in US and European countries.
 Benefits derived from Residential Care Home covers only the administration of basic care
provisions. However, there are cheap health insurance plans for seniors you can suggest they
can avail from different insurance providers that allows comprehensive plans or prepaid health
cards for as low as Php2,550 annual premium payment (includes daily ICU benefits and surgical
cash benefits for up to 80 years old). Some insurance companies even allow coverage of up to
 100 years old. (https://www.finder.com/ph/best-health-insurance-plans-for-senior-citizens-in-
the-philippines)

SWOT Analysis

Even though our Chief Executive Officer (homeowner) has the knowledge, the skill and the robust
experience in business management, social work and taking care of people with disability and the aging
population, we still went ahead to hire the services of a business consultant that are specialized in
setting up new businesses to help the organization conduct detailed SWOT analysis and to also provide
professional support in helping us structure the business to indeed become a leader in the home care
facility industry.

Below is the summary of the SWOT analysis that was conducted for the Company:

Strengths

Our strength lies in the fact that we have a team of well qualified and experienced owners and
professionals manning various job positions in the same industry. Since we are hiring family members,
family firms tend to have a greater sense of commitment and accountability at their heart as it is not just
the needs of the business at stake, but the needs of the family too. Our location is prime and largely
populated, the Business model we will be operating on is not new to everyone, business operates
continuously, facility is newly renovated and well equipped and with our excellent customer service
culture Filipino style will definitely count as a strong strength for us.

The place where the Residential Care Home is the ancestral house of the owner and situated on a quiet
residential neighborhood community in the crowded district of Anonas in Cubao. The home is
completely furnished and renovated in eloquent modern design to suit the needs of the elderlies. More
than just being the most populous city I Metro Manila, Quezon City is one of the most progressive
localities in Metro Manila and one of the largest economies in the region. This is a place where you can
get You can get excellent medical assistance where leading medical institutions on different specialties
are found here. This is a good place to raise a family or retire, a haven for shopaholics and bargain
hunters.

Owned properties (house, lot, and vehicle) used in running the business must still be rented out and
proceeds derived must be declared as rental income in your tax return. The income gained from rent
can be used to spend for maintenance that you can claim income tax deductions as property expenses
from use of such properties.

Based on the above, continuous business operation gives client the assurance and peace of mind that
they are fully and well secured even in their sleep most specially in providing immediate attention
during emergency situations.

Weaknesses

This is a new Family Partnership business. The high cost of start-up operation specially on the leasehold
improvement will definitely put a financial strain in the operation of the business. It is imperative that
new clients need to come-in within the first 3 months of operation so partners may have the financial
muscle to sustain continuous operation and the kind of publicity they want to give their business the
much needed lift to attract more clients and the highly experienced hands in the home care facility
industry. Bearing also in mind the long wait to achieve at least the breakeven point. While having family
is an advantage it could also offer disadvantages in the long run.

The family members must always be aware to maintain good relationships among themselves as the
dynamic between different family members, family (and business) history may cause a blurred boundary
between family life and work life causing conflicts within any family-run business. The family
connections can often make such issues difficult to resolve. Ensure too that all partners in the family
business have real interest in running the business. This can result in a workforce - or worse, a
management - consisting of family members who are apathetic, unenthusiastic and disengaged. Install a
clearly defined succession plan in place to avoid nepotism and ensure that only interested and qualified
family member who achieved the required level of skills and confidence will be promoted to avoid
causing friction with the family.

Working long hours is tiring and stressful so a workable work schedule is necessary to maintain on a
weekly basis considering identifying temporary replacement personnel. Outsourcing from service
contractors may be a good option.

Opportunities

The opportunities that are available to non-medical home care facilities are unlimited considering the
fact that we have growing aging population and people with one form of disability or the other in the
Philippines. The number of older people is increasing rapidly, faster than growth in the total
population. In 2000, there were 4.6 million senior citizens (60 years or older), representing about 6% of
the total population. In 2019, this has grown to 10 million older people or about 10% of the total
population. Based on the 2020 Office of the Senior Citizens Affairs statistics, there are about at least
375,000 senior citizens living in Quezon City alone, but the vice mayor believes many more have not
been documented properly. The World Population Prospects 2019 projects that by 2050, older people
will make up around 16.5% of the total population. Of 9.4 million older people, only 1.3 million older
people were living in poverty. 6.1 million older people are living in the Urban areas. Below are the key
statistics on the Philippine’s population of older people (https://ageingasia.org/ageing-population-
philippines/):

2019 By 2050
Population aged 60 and above (total) 9,433,000 23,863,000
Population aged 60 and above (% of total population) 8.6 16.5
Older women aged 60+ (% of total population) 4.83 9.40
Life expectancy (males) 67.08 71.88
Life expectancy (females) 75.31 79.5
Old-Age Dependency Ratio (Age 65+ / Age 15-64) 8.6 17.7
Rural older people (% of total population) 6.48
Urban older people (% of total population) 6.54
Older persons living alone aged 60 and above (% of total population 5.4
aged 60+)
 
The fair market value of your property in QC where you plan to establish your Residential Care Home
have gone up by as high as 300% in 2017, such that a decision to sell your property in the event of
business failure and closure is a much welcome opportunity.
(https://businessmirror.com.ph/2017/09/18/quezon-city-residents-reckon-with-overdue-land-
valuation/)

Given that Home Care Facilities are so uncommon in the Philippines, prospective customers may just be
simply unaware of its existence and the industry as a whole. There are also not sufficient regulations in
place to govern them. Instead, we rely on providing the utmost care in most personal and
compassionate way to our residents. Government policies related to older people are focused on the
poor sector of the society governed by the Department of Social Welfare and Development (DSWD).
Nothing constricts or restraints private entities from establishing home care services to older people.

Philippines is also among countries with lowest average wage in the world as of August 2020, data
compiled by e-commerce platform Picodi revealed. It ranked 95 th out of 106 countries in terms of
average wage, recorded at $308 or PhP15,200. Inflation averaged 5.2% in 2018, 2.5% in 2019 and 4.2%
in 2021, while in 2022 has so far averaged 2.5% the lowest so far, a breather for the economy and the
businessmen.

Threat

The Filipino family is tight-knit. The tradition of caring for the old still lingers in Filipino families.Children
do not move out of the house until they decide to get marry and start their own family. Some children
do not move out of the house at all; they stay with their parents until they grow old and take the
responsibility of caring for their aging parents. For others, it has become a norm that the elderlies live
with the daughter, single or married with own family, since most Filipino daughters ceased to work at
some point in their lives to tend for her children hence the old parents. You will notice that Filipinos
tend to have large and extended families – it often includes the grandmother (lola) and the grandfather
(lolo), cousins, and the aunt (tita) and the uncle (tito) while some others get services of a kasambahay to
look after their elders for a menial fee.

Just like any other business, one of the major threats that we are currently facing is economic downturn
affecting purchasing/spending power. Marketing senior residential care homes have become
challenging in our current economic climate because of the covid pandemic. Adult children are usually
keeping themselves and their parents at home longer than usual to be safe and at the same time save
money. Adult children now have ample time to take care of their parents. Businesses slowed down and
some have temporarily closed due to lockdowns. Many Residential Care Home homes at present are
experiencing higher levels of vacancy albeit only temporary.

As we are about to start our own Residential Care Home facility today, another major challenges we face
is the presence of well-established Residential Care Home, assisted living, and nursing homes in Quezon
City and of course other players in the Home Care Providers industry in our target market location. As
much as we are also a threat to them, there is already increased competition in the market. Quezon City
has a registry of 14 home care provider websites and FB accounts in the social media platforms and
much more in neighboring cities and suburbs. There may be unaccounted others hence expect a stiff
competition.

The only way to avoid these challenges is to create your own market; concentrate on the aging
population and individuals in your immediate community. There is hardly anything you can do as
regards these threats and challenges other than to be optimistic that things will continue to work for
your good.

MARKET ANALYSIS

Market Trends

Because of the essential nature of services provided by non-medical Residential Care Home facilities, the
industry was able to grow even in the face of economic stagnation. 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.

Residential Care Home homes provide excellent care to seniors who want to remain independent while
still receiving some form of assistance with daily activities. Based on above key statistics projection on
the Philippine’s population of older people, a whopping 56% or 14 million Baby Boomers are going to be
retiring over the next three decades, which will fuel the industry growth.

Based also on the 2020 Office of the Senior Citizens Affairs statistics, there are about at least 375,000
senior citizens living in Quezon City alone, but the vice mayor believes many more have not been
documented properly. Since the aging population are more prone to injury and illness, and therefore
require more assistance with daily activities, the larger share of senior adults has propelled demand for
non-medical home care facilities and of course nursing care facilities.

The trend in the industry is that players in the industry are now flexible enough to adjust their services
and facilities to attract more knowledgeable and educated residents by incorporating more technology
and adapting to new markets.
Another trend in the industry is that, in other to make non-medical care home more affordable for low-
income individuals, some homeowners allow payments for accommodation only like bed and breakfast
or simply bed and the family members take care of the rest.

The older population is the fastest growing population sector with the trend expected to hold in the
future. Statistics show that the older population is the fastest growing population sector with the trend
expected to hold in the future due to the changing age structure resulting fertility decline. It also said
that older Filipinos now are living longer and getting healthier. The increasing life expectancy at age 60
suggests the improving longevity of older Filipinos. Female old persons live longer but spend greater of
remaining life in inactive state relative to the males. The functional health is also said to be improving
over time where 19% of older Filipinos have at least 1 ADL difficulty while younger cohorts of old people
have better health status. (EGM_26Feb2019_S8_PleneeGraceJCastillo.pdf (un.org)).

Moreover, life expectancy at birth consistently improved, where on the average, a Filipino born in 2006
is expected to live up to 71.5 years compared to only 54.8 years in the 1960s. Along with the
improvement in life expectancy is a significant decrease in infant, child and maternal mortality rates as
well as control of communicable diseases. These developments were brought about mainly by advances
in technology and delivery of health services. (https://www.ipl.org/essay/Essay-About-Health-Care-In-
The-Philippines-PKZXWJ2NFJEDR)

No doubt the Home Care Facility industry will continue to grow and become more profitable because
the millennials and aging baby-boomer generation in the country is expected to drive increasing demand
for this specialized services and care in the future.

Target Market

GQ Residential Care Home is in business to service the aging population and people with some form of
disabilities or the other and those who need daily help of people of any age in Quezon City and other
cities in Metro Manila or from anywhere in the world who would agree to live with us.

The fact that we are going to open our doors to a wide range of customers does not in any way stop us
from abiding by our set rules and regulations or that in any way govern the care home facility industry in
the Philippines. Our staff is well – trained to effectively service our customers and give them value for
their monies.

Our customers can be categorized into the following;

 The aging population

 People with one form of disability or the other (Both young and the elderly)
 The aged who might suffer from joint pains and every other age categories that fall under the
conditions listed by the physician as people who do not necessarily need the services of health
workers to survive or carry out their daily task.

Our competitive advantage

Aside from the competitions that exist amongst players in the non-medical home care line of business,
we also compete against each other’s home healthcare services as a Residential Care Home, assisted
living or a nursing home.

To be highly competitive in the home care industry means that we are able to secure a conducive and
secured facility, deliver consistent quality service and meet the expectations of the children/family
members paying for their loved elderly parents and people with disabilities in our facility.

The facility is coming into the market well prepared to favorably compete in the industry. Our facility is
well positioned within the center of the city, visible and a short ride to the Historic center of Cubao, QC’s
latest tourism district where you can find the oldest shops at the Cubao Expo in Farmer’s Plaza, Araneta
Center and the famous Araneta Coliseum where important sports and social events were being held
regularly, good security and the right ambience for elderly people who wants to move around. The
development plan for the area would boost cultural and economic tourism not only for malls and big
businesses, but for small enterprises as well just like ours. As a tourism district, the Growth Center in
the area will also host educational guided tours for the public. A visitor information center and souvenir
shop, meanwhile, will be set up by Araneta Center management where guests or visitors could get
maps, brochures, and other educational materials about the area.

The owners and managers of the business are experts in the field who operates the same institution in
California, USA, already for decades. Following the same principles and work procedures applied in the
facility abroad, the staff are well groomed in all aspect of Residential Care Home services and all our
employees are trained to provide customized customer service to all our residents. Our services will be
carried out by highly trained professional nurse’s aides and home caregivers who know what it takes to
give our highly esteemed residents value for their money.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best
within our category (startup Residential Care Home facility business in the Philippines) in the industry. It
will enable them to be more than willing to build the business with us and help deliver our set goals and
achieve all our business aims and objectives.

Sales And Marketing

Sources of Income

GQ Residential Care Home will ensure that we do all we can to maximize the business by generating
income from every legal means possible within the scope of our industry.

Sources of income may come in different forms. Different Residential Care Home facilities charge for
rent and additional services in various ways.  Depending on the homeowners, residents will either pay
for:

 An all-inclusive living arrangement - With all-inclusive pricing, residents pay one fee that
includes their rent, their meals, and services such as medicine administration, access to a gym or
fitness center, transportation (emergency and scheduled outdoor activities), housekeeping, and
any other amenities the facility offers; or
 Pay rent plus fees for individual services on an a la carte basis. With a la carte pricing, residents
only pay additional for the services they will use. As to which option is more cost-efficient
 depends on the resident. For those who intend to use the majority of services that a community
provides, it’s usually cheaper to pay all-inclusive. But if residents intend to cook their own meals
and do their own housekeeping, it may be cheaper to pay per service each month. This option is
only made available upon request of resident or the family who’s on low level income and only if
approved by the homeowners.

Other sources of income from business may include:

 Rent income from residents on Day Care Service (8 hours minimum to overnight)
 Rent income from residents on Short Stay Service (less than 1 month)
 Income from other services on top of basic services administered upon request by resident
 Income from residents on sales of personal kits items and the likes
 Others

Marketing Strategy and Sales Strategy

First and foremost, the marketing and sales strategy of GQ Residential Care Home will be based on
generating long-term personalized relationships with our residents. In order to achieve that, we will
ensure that we offer top notch all–round Residential Care Home facility services at affordable but
reasonable prices compared to what is obtainable in similar facilities in Quezon City and the rest of
Metro Manila.

All our employees will be well trained and equipped to provide excellent and knowledgeable services as
it relates to our business.

Other than the traditional marketing methods, we will leverage the Internet to build brand recognition
and generate leads. Having a strong digital marketing program is a must for any Residential Care Home
facility today. The following are some effective marketing ideas that will help us market our Residential
Care Home facility in the digital era.

In summary, GQ Residential Care Home will adopt the following sales and marketing approach to win
customers over;

 Develop an Effective Website. Our Residential Care Home center’s website will be the focal
point of our online marketing, so its importance cannot be overstated. It’s not only our main
informational hub but also one of our most important salespeople. First, make sure it is
informative and you have a clean, modern design that is mobile responsive.
 Create a brand identity, independent of the size of your business. Your logo, slogan, and
business card are an important part of your brand identity that helps you to create an
impression among your customer and generate trust.
 Engage the services of individual agents or agencies who will generate clients for a fee. Broker’s
fee is usually 1 month’s lease rate for every successful engagement.
 Introduce our business by sending introductory letters to residents, clubs for elderly and people
with disability, Group and Business Organizations, and other stake holders in Quezon City and
adjoining cities.
 Advertise our business in community-based newspapers, local TV and local radio stations
 List our business on online and offline yellow pages ads (local directories). Make sure you cover
all the places where your target customers are likely to search for your services.
 Make an account and leverage on the internet and social media platforms like; Instagram,
Facebook , twitter, YouTube, Google + et al to promote our brand. Post problems related to old
age, their solution, about your organization, etc.
 Educate your online audience with informative and engaging blogs and vlogs about healthcare
issues. You will receive a lot of leads from this channel as people begin to trust your business.
 Spend On Online Advertising as a lot of people are searching for services online, and a local
business like yours should definitely advertise online.  Most people search on Google first.
Ensure the content is catchy and communicates the message correctly.
 Start A Newsletter. A great way to capture new leads is by starting a newsletter. You can have a
link for a subscription to your newsletter through your website as well send a copy to your
existing clients. Make sure the newsletter not only has exciting offers but is also information
packed, attractive and use a lot of infographics. Your infographic should have eye catching
design, is power packed with information and does not seems too cluttered.
 Engage in direct marketing among common friends, business associates, neighbors, and others
 Leverage on word-of-mouth marketing (referrals) offering referral fees. To reduce your costs,
you can have a different referral program for existing clients which will focus on free services.
This will only use your resources instead of additional expenses (e.g., free 1 month rental for
every successful referral).
 Develop relationships with physicians, hospitals, nursing homes, and other relevant healthcare
facilities specially those who treat your potential clients may help you drive more home care
referrals. You can have a special referral program with financial incentives for doctors and other
specialists.  Ensure that you connect and partner with all the hospitals and other emergency and
care organizations in the localities you provide your services.
 Hire persons to distribute flyers and handbills in target areas with high concentration of aging
population and people with disabilities like in malls, train and LRT stations, outside churches,
theaters, hospitals, tourist spots, mass gatherings and events, memorial parks and cemeteries
on holidays, etc.
 Enter into business partnership or apply accreditation with hospitals, government agencies and
health insurance companies during emergencies. Ensure that you connect and partner with all
the hospitals and other emergency and care organizations in the localities you provide your
services.
 Hold an open house or sponsor or host a relevant community event and programs that appeals
to the aging population and people with disability like free health drives. To minimize your costs
conduct this event in a local community town hall or clubhouse. Don’t push your services too
much but make sure your branding is visible on the banners placed. Let your logo design be
seen prominently so that people know the brand conducting the event.
 Install your Bill Boards on strategic locations all around
 Engage in road show from time to time in location with growing aging population and people
with disability
 Associate With Senior Issues. A lot of issues plague seniors’ right from insurance coverage to
veteran support. Associate your business with these causes and become an advocate. This will
give you coverage in the media and create a favorable brand image. It is important for seniors
that they partner with services that adhere to their values. This is bound to get you a lot of leads
because of positive PR.
  Conduct Seminars and Talks. If you do not have in-house experts tie up with professionals in
associated domains like insurance, nutrition, and health care to conduct talks for seniors. You
can approach hospitals and communities to conduct these talks in their facilities. You can get a
lot of footfalls and generate new leads for your home care services business. You can give away
brochures and other personalized merchandise like T-shirts, Badges or even stickers for cars
with your logo on them.
 Ride on another’s sponsorship. Conducting your own events can be cumbersome and time
consuming especially if you are a single owner with a small team. The easiest way to engage
with the target audience is to piggyback on other events for them.
 Ensure that all our workers wear our branded shirts and all our vehicles are well branded with
our company’s logo with contact information, et al.
 Advert on personalized give aways (mugs, shirts, etc.) and give as gifts on special occasions, road
shows, etc.
 Attend health care related exhibitions/expos.

Our Pricing Strategy

GQ Residential Care Home will work towards ensuring that all our services are offered at highly
competitive prices compare to what is obtainable in Philippines. Competitive pricing consists of setting
the price at the same level as one’s competitors. Specially for similar and identical products or services,
this method is simple and low risk because competitors’ prices are proven and tested and most often
publicly displayed and it is therefore easy to copy them. This method relies on the idea that competitors
have already thoroughly worked on their pricing and found it to be the best market price. In any
market, many firms sell the same or very similar products or services, and according to classical
economics, the price for these products or services should, in theory, already be at an equilibrium (or at
least steady locally). Therefore, by setting the same price as its competitors, a newly launched firm like
ours can avoid the trial-and-error costs of the price-setting process.

However, every company is different and so are its costs. Considering this, the main limit of the
competitive pricing method is that it fails to account for the differences in costs (production, purchasing,
sales, etc.) of individual companies. As a result, this pricing method can potentially be inefficient and
lead to reduced profits. However, this study focused on that so that all costs and price setting have
been duly accounted (see attached financial workbook). The set assumptions in the financial
worksheets were inclusively thought of and thoroughly defined such that with the set competitive prices
we shall attain favorable margins which will make us highly competitive in the industry.

Because of the limitations in the existing structure we made renovations and initially will construct a
total of x single rooms and x doubly occupancy rooms that will fit in maximum 10 residents. The set
lease prices for each room are the following:

Single room for solo resident – Php55K/month

Double occupancy room for dual resident – Php40K/month

All rooms are equipped with single beds with beddings and air-conditioning units while toilets and bath
are shared outside the rooms but gender sensitive.
We know that if we are consistent with offering high quality service delivery and excellent customer
service and we believed so, we will expect more patronage thus we shall increase the lease rates 3%
annually and the number of our residents by 20% on the 2 nd year and another 20% percent on the 3 rd
year and subsequent years, if space permits.

Medicare coverage in the Philippines is limited. On the average, non-medical home care facilities and
group home facility service providers usually leverage on the fact that clients only pay the rent and other
service charges out from their pockets. No private insurance companies and government funds
(PhilHealth) will cover policies that will pay for this service.

In view of that, it is easier for non-medical care home service providers to bill their clients based in their
discretions. Be that as it may, we have put plans in place to offer discount services once in a while and
also to reward our loyal residents especially when they refer clients to us.

Payment Options

At GQ Residential Care Home, our payment policy is all inclusive because we are quite aware that
different people prefer different payment options as it suits them. Here are the payment options that
will be available in our outlet:

 Payment by cash
 Payment via Credit Card
 Payment via online bank transfer (online payment portal)
 Payment via Mobile money (GCash)
 Checks

In view of the above, we have chosen banking platforms that will help us achieve our payment plans
without any itches.

Sales Forecast

One thing is certain; there would always be elderly people and people with disabilities who would need
the services of non-medical home care facility.

We are well positioned to take on the available market in Metro Manila and any point in the Philippines
and we are quite optimistic that we will meet our set target of generating enough income / profits on
the 3rd year of operations and grow our residential care home business and our residents’ base.

We have been able to critically examine the residential care home services market and we have
analyzed our chances in the industry and we have been able to come up with the following sales
forecast. The sales projection is based on information gathered on the field and some assumptions that
are peculiar to similar startups in Quezon City.

Below is the sales projection for GQ Residential Care Home, it is based on the location of our business
and of course the wide range of related services that we will be offering;

 First Year-: Php5.5M

 Second Year-: Php7.6M
  Third Year-: Php9.2M

N.B: This projection is done based on what is obtainable in the industry and with the assumption that
there won’t be any major economic meltdown and natural disasters within the period stated above.
Please note that the above projection might be lower or higher.

Startup Expenditure (Budget)

If you are looking towards starting a non-medical home care business, then you should be ready to go all
out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to
incur. The truth is that starting this type of business does not come cheap.

Since you have already secured a standard residential facility big enough to accommodate the number
of people you plan accommodating per time, you could need money to construct and renovate the
structure, acquire supplies, money to pay your workforce, and pay bills for a while until the revenue you
generate from the business becomes enough to pay them.

The items listed below are the basics that we would need when starting our residential care home
business in the Philippines:

 Start-up Expenses
o Cost for hiring Consultant –
o Cost of Website launching – Php75K
o Cost for purchase of Equipment - P356K
o Cost of purchase of Furnitures and Fixtures – Php210.5K
o Cost of purchase of Service Inventory (stocking with a wide range of products such as
toiletries, food stuffs and drugs et al) – Php30K
o Cost for the purchase of Service Vehicle – Php50K
o Cost for the purchase of insurance (general liability, workers’ compensation and
property casualty) coverage:
 Prepaid Fire Insurance Premium – Php8K
 Prepaid General Liability Insurance Premium – Php50K
o Cost for facility renovation/remodeling (leasehold improvements) – Php2.5M
 Other Start-up Operational cost for the first 3 months (salaries of employees, payments of bills
et al):
o Pre-Opening Salaries and Wages – Php210.8K
o Legal & Accounting Fees – Php24K
o Rent Deposit – Php180K
o Stationary & Supplies – Php15K
o Advertising and Promotion – Php60K
o Business Registration – Php44.2K
o Marketing Promotion (Grand Opening) – Php75K
o Working Capital (Cash on Hand) – Php3.5M
 Fixed Annual Cost:
o Insurance – Php58K
o Vehicle Registration – Php8K
 o Vehicle Maintenance – Php20K
 Monthly Operating Expenses:
o Rent (building) – Php45K
o Rent Vehicle – Php15K
o Utilities – Php12K
o Communication Service (Mobile+Landline Globe Plan Phone) – Php1.2K
o Communication Service (Internet/WIFI Globe Plan) – Php1.9K
o Gasoline Allowance – Php5K
o Building Repair and Maintenance – Php2.5K
o Salaries and Wages – Php51K
o Government Premium (Employer cost) – Php19.2K
o Advertising and Promotion (Marketing) – Php20K
o Accounting Fees – Php8K
o Stationery and Supplies – Php5K
o Miscellaneous: Php10K

We would need an estimate of Php7.6M to successfully set up our residential care home facility in your
residential house in Quezon City. Please note that this amount includes the salaries of all the staff for
the first 3 months of operation.

Generating Funding/Startup Capital for GQ Residential Care Home

GQ Residential Care Home is a family business that is solely owned and financed by Mrs. Abigail
Washington and her family. We do not intend to welcome any external business partner, which is why
he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas GQ Residential Care Home intends to generate our start – up capital;

Generate part of the start – up capital from personal savings

Source for soft loans from family members and friends

Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from
family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from our
bank. All the papers and document have been signed and submitted, the loan has been approved and
any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and
competence of the employees, their investment strategy and the business structure. If all of these
factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting GQ Residential Care Home is to build a business that will survive off
its own cash flow without the need for injecting finance from external sources once the business is
officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our non-
medical home care services a little bit cheaper than what is obtainable in the market and we are well
prepared to survive on lower profit margin for a while.

GQ Residential Care Home will make sure that the right foundation, structures and processes are put in
place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to
drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it
will be based on their performance for a period of three years or more. We know that if that is put in
place, we will be able to successfully hire and retain the best hands we can get in the industry; they will
be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed

Business Registration: Completed

Opening of Corporate Bank Accounts: Completed

Securing Point of Sales (POS) Machines: Completed

Opening Mobile Money Accounts: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payer’s ID: In Progress

Application for business license and permit: Completed

Purchase of Insurance for the Business: Completed

Leasing of facility and remodeling the facility: In Progress

Conducting Feasibility Studies: Completed

Generating capital from family members: Completed

Applications for Loan from the bank: In Progress

Writing of Business Plan: Completed

Drafting of Employee’s Handbook: Completed

Drafting of Contract Documents and other relevant Legal Documents: In Progress

Design of The Company’s Logo: Completed

Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress

Recruitment of employees: In Progress

Purchase of Medical Equipment and vans et al: In Progress

Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances
and CCTV: In Progress

Creating Official Website for the Company: In Progress

Creating Awareness for the business both online and around the community: In Progress

Health and Safety and Fire Safety Arrangement (License): Secured

Opening party / launching party planning: In Progress

entering into an residential care home development project, it may be helpful for you to understand
what an residential care home home is and why it is more important than you might think. There are a
wide variety of residential care home facilities available in the Philippines and around the world. Most
facilities are designed to meet the needs of the elderly, disabled, and physically challenged. However,
there are also some residential care home homes that are specially designed for those who do not have
disabilities.

A Look Into The Residential care home Industry

An residential home care home or residential facility is actually a temporary housing facility intended
for those with special needs or for senior citizens who either cannot or do not wish to live on their own.
The term residential care home refers to housing that is specifically designed to meet the individual
needs of older adults who are in need of assistance in maintaining a comfortable lifestyle. This is
particularly important when it comes to seniors who seek to maintain independence over placing
unnecessary burdens on their loved ones. Then again, senior citizens are at an increased risk for
developing physical and/or mental health problems, and this can have adverse effects on their ability to
live a life independent of others. Additionally, they tend to develop Alzheimer’s or other memory-
related diseases as a result of living on their own. This can make it extremely difficult for them to retain
information for any length of time.

The Difference Between Residential care home and Nursing Homes

While nursing homes provide 24/7 nursing care and monitoring for their residents, residents in
residential care home communities generally promote only custodial care with outsourced medical
services. The residential care home lifestyle is ideal for active seniors who seek to escape the worries of
everyday problems, making most of life, and tending to their hobbies or leisure while finding
opportunities for social interaction of similar mature audiences.

Designing Residential Units For Residential care home

Residential care home homes often consist of an apartment or other type of residential unit that has all
the basic utilities such as a refrigerator, stove, toilet, and sink, but it may also include other services that
assist the senior in his or her everyday tasks. Many residential care home facilities also provide some
type of assistance with transportation to and from the residence, if required, as well as with meals.
Corridors may be furnished with handrails to aid in mobility, doors, ramps, and toilets may be designed
in accordance with the disability act, residential units would be equipped with medical emergency
response systems, floor finishes may be retrofitted with a higher coefficient of friction tiles, and the
likes.

Benefits of Residential care home

The benefits to the elderly residents of residential care home homes are two-fold. First, while the senior
resides in his or her own apartment, he or she can still maintain independent living skills without the
added stress of having to worry about their personal care and support. Second, residential care home
homes are a safe environment for seniors, because the residents are able to safely control access to
their personal belongings and other resources. They are able to choose which residents they want to
help with their personal care duties.

Type of Residential care home Projects

The type of residential care home residential facilities that are available vary widely from region to
region. In most cases, senior citizens can find residential care home units within a specific area. Some
city zones will allow residents to live in residential centers while others allow residents to live in
apartments. If you live in a relatively large city, you may be limited to one center, but in smaller cities,
you may be able to find a center that has multiple areas.

Multiple levels can also be found within some residential care home facilities, allowing residents to
maintain independence while also being able to take advantage of the medical care and assistance they
need. Some developers invest in multiple floors of condominium towers as bulk discounts and retrofit
these floors for the residential care home operations. Just like club shares, they offer transferrable
membership privileges. Senior members can actually opt to move from one building to another
operating under one brand at any time in various city locations across the country.

Required Services For Senior Residents

Another important factor that may help determine the cost of residential care home is if the senior
communities provide a mix of services. This can include activities that are geared towards fitness,
personal development, mental stimulation, and other activities that the individual may enjoy doing in
the community.

There are several types of services offered by residential facilities, including geriatric activity centers,
laundry, shopping, housekeeping services, meals, medical services, and others. While some residential
care home centers offer more services than others, these services can vary greatly. For instance, in
larger cities, the senior center may have any or all of the services that an apartment does. In fact, many
of these residential facilities, especially larger residential care home centers, offer large open parks,
function halls for senior community events like dances and art programs, physical therapy for seniors,
nursing care clinics, entertainment studios, a fully integrated commercial kitchen, full-service laundry,
and similar amenities. While some of these apartment homes do offer personalized neighborhood
services like housekeeping, laundry, grooming, and therapy, it is possible to obtain them at a cost.
Depending on the type of business model, the services may be included in a monthly or weekly rate, or
even offered at no charge for members or shareholders.

Lifestyle Residences vs Service Facilities

There are many reasons why people choose assisted lifestyle residences integrated with various
amenities and services over mere residential care home facilities. While it is true that residential care
home facilities can provide many things for senior citizens, there are also numerous challenges in their
upkeep and operational funds. Many consumers and facilities have had to tighten up their budgets and
become creative in converting to value-oriented senior lifestyle options.

However, those that do choose for more traditional senior living facilities may find a wider variety of
innovations in new locations such as green and smart homes, eco-friendly living, and expanded
amenities in residential care home facilities. These new locations are great places to live because they
offer a higher quality of life as compared to the usual practices of compartmentalizing services. In
addition to the makeover of new facilities, some consumers may find that traditional residential care
home options are being discontinued, which makes the choice of expanded assisted lifestyle facilities or
community residences even more attractive.

Seniors can choose from assisted apartments or assisted homes depending on their needs. If they are
unable to do some of the activities at home, they will find that they are able to enjoy activities that do
not require leaving their house. Some residential care home facilities even offer activities such as
swimming, walking, hiking, gardening, golfing, playing games, visiting museums, libraries, and visiting art
museums.

The Type of Activities Establish The Design Direction

If you are interested in planning the services that a particular center offers, you may want to check with
some of the senior residents in an area or with the administrator to determine what amenities they
offer. It would be also wise to collect brochures and contracts with the facility for future references. It is
important that prospecting families are assured of the safety, variety, and welcoming environment while
being able to provide their loved ones with the services they need.

In choosing a senior community development project, the first step is to find out the level of service that
is unique to the project. It is best to decide on a community that provides an array of activities, whether
it is physical activities that may not involve going outside their apartment or residential units very often.
When looking into designing and planning spaces, proximities, and orientation in residential care home
projects, make sure that the services are accessible and efficient. Vital features may include
housekeeping, transportation, food preparation, and cooking, laundry, housekeeping, shopping,
laundry, meals, personal care, errands, medical services, and a variety of other tasks.

Residential care home Outlook In The Philippines

Residential care home is a great option for those who want to stay independent, while still receiving the
support and care they need to maintain their health and dignity. While there are a few differences
between residential care home centers and traditional retirement homes, most centers are designed to
offer the same level of care and services that traditional retirement homes provide.

The number of senior communities is constantly growing as more people find that they are in need of
residential care home . There are thousands of senior communities and apartment complexes that are
available to meet the needs of the aging population. Senior homes are now located in cities throughout
the country and are often located close to major employers. This allows seniors to live in a safe, stable
environment while still being able to work or relax while they get the treatment and care they need.

Why Residential care home in the Philippines?

Starting an residential care home business in the Philippines to cater to local and foreign seniors would
be an ideal investment. Similar to medical tourism, Filipinos are sought after for their warm smiles and
hospitality from around the world. Respect for elders is strongly engrained in the culture. Filipinos are
familiar with various foreign settings due to their number of overseas workers. They can also adapt
easily to most languages. As a matter of fact, English as a language is taught in school.

The country is composed of thousands of islands as well as surrounded by waters. Almost all urban and
provincial development in the country is still on the rise. If you know where to look, most property gems
are oriented towards some scenic view, natural landscapes, or integrated with the perfect island
experience of greeneries, water, sunlight, and fresh air.

Despite deep traditions, the next generations are gradually adapting to a lot of modern lifestyles. The
number of senior communities is constantly growing as more people find that they are in need of
residential care home . There are thousands of senior communities and apartment complexes that may
be developed and are available to meet the needs of the aging population.

How well do you think the Philippines will adopt residential care home and senior care services away
from home? What will be the benefits and conditions of senior citizens in the Philippines? Please drop
your questions or comments below. Looking forward to hearing from you!

Your 10-Step Guide on How to Start an Residential care home Facility

Residential care home facilities come with their challenges. Check out this 10-step guide on how to start
an residential care home facility and mitigate risks!

There are more than 15,000 residential care home facilities in the U.S.

That number is expected to grow substantially over the course of the next 30 years.

By 2050, the elderly population is likely going to top 83 million, which means there is going to be a real
need for even more residential care home facilities in different parts of the country.

Are you interested in opening one up? If so, take the time to learn how to start an residential care home
facility first. It’ll help you bring in more business right away and, more importantly, it’ll set up your
facility for long-term success.
Here is a 10-step guide on how to start an residential care home facility.

Step 1: Create a Business Plan

The first thing to do when starting an residential care home facility is to come up with a business plan.
Without a clear business plan in place, you’re going to be doomed as you move forward with the rest of
the steps.

In your business plan, lay out where you want to open your residential care home facility, who you want
to target with it, and how you’re going to make your residential care home facility successful.

If you plan on keeping your residential care home facility small and catering to a small community on
your own with a few staff members, note that. If you plan to bring a property management company
like Paradigm Senior Living on board to do most of the dirty work after opening your facility, note that,
too.

Your business plan is what you’re going to use to obtain the proper funding for your facility. So don’t
leave any details out, no matter how big or small they might be.

Your business plan should be rooted in research you’ve done and provide a blueprint for how you plan
to operate once you get everything up and running.

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Step 2: Establish a Legal Business Entity

Once you have a business plan in place, make time to establish your business as a legal business entity.
This will protect you in the event that your residential care home facility ever faces a lawsuit.

If you don’t establish a legal business entity prior to opening an residential care home facility, you could
be personally liable for any legal issues involving your business. It could bankrupt you and force you to
shut down your business, even if things are going well with it.

Step 3: Register Your Business for Tax Purposes

Before you can open up an residential care home facility, you’ll need to register your business so that
you can pay state and federal taxes tied to it.

This is obviously another very important step in the process. The absolute last thing you want to do is
put off paying your taxes and get yourself into hot water with the IRS.

Registering your business for tax purposes is simple. But many business owners forget to get around to
doing it and pay the price later.

Even if, for whatever reason, your business doesn’t start generating money right away, it’s still good to
have your affairs in order when it comes to taxes.

Step 4: Visit a Bank and Open a Business Account

When you’re first trying to jumpstart an residential care home facility, you might be tempted to mix
your personal and business finances. Don’t do this.
Although it might be more convenient to use your personal bank account to conduct business on behalf
of your residential care home facility, split the two up as soon as possible. Go down to your bank and
open a business account for your residential care home facility.

A business bank account will help you keep all of your business finances in good order. It’ll also look a lot
more professional when you’re paying for services using business checks as opposed to using personal
ones.

Step 5: Find a Location for Your Residential care home Facility

At this point, you’ve laid down a solid foundation for your residential care home facility.

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You have a business plan in place and have established a legal business entity. You’ve also registered
your business for tax purposes and opened up a business bank account. Now, the fun part begins.

Start looking around for possible locations for your residential care home facility. That might mean
moving into an existing building that has everything you need for your facility, or it might mean building
a new facility from scratch.

Your finances and any funding you’ve received will dictate what you can buy or build. Whatever the
case, choose a property that will allow your residential care home facility to grow over time.

You also want a property that’s conveniently located and that will attract business from a surrounding
community. Picking out the perfect location is an important part of giving your business a great chance
to survive.

Step 6: Get Your Hands On the Right Permits and Licenses

To run an residential care home facility, you need to have the proper permits and licenses in place.
These permits and licenses are often different in each state and, furthermore, in each city or town.

Check with your local city or town to see what kinds of permits and licenses you need to have. If you fail
to obtain these permits and licenses, you could potentially face large fines and even risk a shutdown
later.

Step 7: Obtain a Business Insurance Policy

If you’re going to open any kind of business, it’s a good idea to obtain business insurance. Business
insurance will protect you and your company if an accident ever takes place on your property.

Business insurance is especially important for someone opening an residential care home facility since
there’s an increased risk associated with starting one. If someone slips and falls in your facility or is
injured in an accident, business insurance will protect you.

You will, at the very least, be required by law to obtain workers compensation insurance if you plan to
hire employees. Do your homework and find out what kind of insurance you’ll need before you open
your facility.

Step 8: Set Up a Website for Your Facility

How are people going to find out about your residential care home facility? More often than not,
they’re going to learn about it on the internet.

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If you don’t have a website set up for your facility, now is the time to get one. Your website should
include everything from your location and your contact information to your services and the benefits
that come along with sending someone to live at your facility.

Consider starting a blog on your website as well that contains useful information on residential care
home facilities. Use the latest search engine optimization techniques throughout your site to generate
more traffic and keep people coming back.

Step 9: Market Your Services to the Community

In addition to setting up a website to generate business, find other ways to market your services to the
local community, too.

You can do this by:

 Starting social media accounts for your residential care home facility

 Advertising your residential care home facility on local TV and radio

 Sponsoring local events, like 5K runs and community picnics, on behalf of your residential care
home facility

Commit to doing whatever you can do to get the name of your residential care home facility out there
into the world. People will begin to take notice when you find different ways to appeal to them.

Step 10: Hire Staff for Your Facility

You can follow all the other steps listed here and open up an residential care home facility in your
community to much fanfare. But if you don’t have the best staff in the business working at your facility,
it might not even matter.

People want to know their loved ones will be taken care of at your facility. So you need to hire the best
staff to work at it and keep your staff happy once your facility opens.

Registered nurses and certified nursing assistants will obviously be some of your first hires.
These employees will be in charge of providing care to the people who move into your residential care
home facility.

But they’re just some of the employees you’ll need to hire for your facility. You will also need to hire:

 An executive director

 Activities directors

 Physical, occupational, and speech therapists

 Marketing director

 Head chef and a team of cooks

  Maintenance workers and groundskeepers

 Drivers

 And more

Without the right employees, your residential care home facility might not stick around for very long.
Don’t underestimate the importance of hiring the right people to work for you.

Use This Guide on How to Start an Residential care home Facility to Your Benefit

Now that you know how to start an residential care home facility, it’s time for you to get to work.

From coming up with a foolproof business plan to hiring experienced employees to work in your facility,
you can open a successful residential care home facility if you take the right steps. Stay patient and
avoid getting ahead of yourself, and your facility will be up and running in no time.

Benefits of Residential Care Homes

Residential care homes offer some unique benefits thanks to their small size and care models. We
explain some of the most prominent benefits in more detail below.

 Personal Attention: Because care homes are significantly smaller than residential care home
facilities, residents get more one-on-one attention. Though care homes employ fewer staff, they
have more time to dedicate to each individual resident. It also reduces the chance of a health
change or illness slipping through the cracks.

 Independence and Autonomy: Like residential care home facilities, care homes allow seniors to
receive the care they need while maintaining independence in other areas of their lives. Care
homes also typically offer less activity programming than different types of senior living. This
gives residents more freedom to pursue their interests on their own terms and not be limited to
the day’s activity schedule.

 Family Involvement: Because of the smaller staff size and number of residents, residents’
families will have more direct access to the home’s director or managers. Having a direct
relationship and access to the home’s upper managers can provide families with peace-of-mind
and make it easier for them to stay involved with their loved one’s care.

 Location: Care homes are typically converted single-family residences, so they tend to be

located in residential neighborhoods. Seniors who have always lived in rural and suburban areas
may prefer this environment over the area in which one would find a large apartment complex-
style community.

 Safety: Many residential care homes are outfitted with emergency alert systems and/or provide
personal emergency alert devices for all residents. Having these extra measures in place can
help seniors stay much safer compared to aging in place independently.

Potential Drawbacks of Residential Care Homes

Paradoxically, the features of care homes that some may view as a benefit can be seen as a drawback
for others. While care homes’ small size means more personal attention for residents, it also typically
means fewer options. For example, care homes almost always have fewer amenities than residential
care home facilities. Because care homes are usually single-family homes rather than a large complex,
there simply isn’t space for extra amenities like an on-site barbershop, tennis courts, and a high-quality
fitness center. Additionally, extra services like transportation may be limited at a care home due to the
smaller staff.

For seniors hoping to make friends with other residents and participate in many activities, care homes
may have limited social opportunities compared to residential care home . With fewer residents, care
homes tend to have more relaxed activity schedules. While this can benefit seniors who prefer to keep
to themselves or socialize in unstructured ways, it can be a downside for those desiring the social aspect
of residential care.

Residential Care Homes Services and Amenities

Residential care homes are a good fit for seniors who need assistance with their day-to-day activities but
don’t require regular medical care. The services and amenities provided in care homes help residents
stay safe while giving them the autonomy to retain as much independence as they see fit. The exact
services offered in care homes can vary, but some of the most common include:

 Assistance with the activities of daily living such as bathing and dressing

 Care coordination between the care home and residents’ families

 Prepared meals, typically cooked in-house and adjustable for those with dietary limitations

 Housekeeping services and laundry

 Companion care

 Some planned activities and group outings

 24-hour supervision and emergency assistance

Because of their small size and resemblance to single-family homes, care homes typically do not have
many extra amenities. Residents can still socialize and relax in a common area, and some care homes
may even have a backyard where residents can enjoy the outdoors. Because care homes are all
different, it’s important to understand the amenities and general structure of any care home you’re
considering for yourself or a loved one.

Who Is a Good Fit for Residential Care Homes?

Thousands of seniors across the country call an RCFE home, but it isn’t the right senior living choice for
everyone. Below, we explain some examples of who may be a good fit for a residential care home.

You need some assistance with your ADLs, but not regular medical care

Care homes provide personal care assistance, including assistance with ADLs. This may include bathing,
dressing, grooming, and general hygienic practices. Care home aides are available to assist residents
with their ADLs and personal care needs, but they cannot provide medical care other than basic first-aid.

You’re no longer able to keep up with household chores and maintenance 

Maintaining a home is a lot of work at any age, and it becomes increasingly burdensome for seniors,
especially if they experience mobility challenges. Care home staff takes care of all household chores for
residents, including cleaning and laundry, so that they can enjoy a maintenance-free lifestyle.

You value independence and thrive in smaller groups

Like residential care home facilities, care homes allow residents to retain their independence as much
as possible. Unlike residential care home facilities, care homes are very small communities. Most care
homes have ten or fewer residents, which can be ideal for those who are introverted or simply thrive in
smaller groups. The small size also means there’s likely to be fewer planned activities and
entertainment, giving residents more independence in their day-to-day activities.

You desire the peace-of-mind of 24-hour aides, but want to stay in a homelike setting 

Many seniors and their families decide it’s time for residential care because they want the security and
peace of mind of living in a facility with caregivers on-site around-the-clock. However, seniors may be
hesitant to move to senior living because they don’t want to live in a large, apartment complex-style
community. Care homes provide an appealing solution for people who find themselves in this situation.
In some cases, care homes may be a less difficult transition compared to residential care home facilities
because the residences more closely resemble a “normal” home.

How Residential Care Homes Compare to Other Senior Living Options

Residential Care Homes vs. Residential care home

Care homes and residential care home offer a similar level of care. The main difference is the size of the
communities. Care homes typically have 4-10 residents, while residential care home communities can
be home to hundreds of people, though size varies. Whether one of these types of senior living is better
for you comes down to personal preference, as the level of care is comparable. A large residential care
home facility with a robust social calendar will likely be a good fit for seniors who want to remain active
and busy. For those who are shyer or prefer to spend time independently or in small groups, a care
home may feel more comfortable.

Residential Care Homes vs. Nursing Homes

Nursing homes provide the highest level of care of any senior living option. While care homes provide
personal care services but not medical care, nursing homes focus on providing medical care and caring
for patients with both chronic and acute conditions. Nursing homes have more nurses and physicians on
staff, compared to caregivers and aides in care homes, to provide this medical care. Seniors who need
regular care from a nurse or physician, such as those who need regular injections or infusions and
seniors recovering from a significant illness or injury, are better suited for nursing homes.

Residential Care Homes vs. Memory Care

Memory care communities are unique because they’re the only type of senior living specifically
dedicated to caring for seniors with cognitive impairments like Alzheimer’s or dementia. While some
care homes may offer extra services to help meet the needs of seniors with Alzheimer’s and dementia,
the focus is more on personal care. Seniors living with memory impairment will be best cared for in one
of these dedicated memory care communities.

Residential Care Homes Cost

Care homes are similar in cost to residential care home because they typically offer a comparable level
of care. According to Genworth Financial, residential care home facilities cost an average of $4,300 per
month. Those looking at care homes can expect to pay a similar amount, though costs vary dramatically
depending on the area. Prices can also fluctuate depending on how many amenities and extra services
are offered, the number of staff, and other factors.

Financial Assistance for Residential Care Homes

It’s important to note that Medicare does not cover the cost of residential care homes– the only
residential senior care covered by Medicare is nursing homes, and only in certain circumstances.
However, there are other options for seniors in need of help paying for their long-term care. Some of
the most common sources of financial assistance are explained below.

 Medicaid: Standard Medicaid does not cover care homes. But, in states with an HCBS waiver,
residential care homes are typically covered. These waiver programs enable seniors to choose
their preferred type of long-term care, giving them more autonomy in their care. The availability
of Medicaid waivers and what they cover can vary between different states, so be sure to
explore your state’s Medicaid guidelines.

 Aid and Attendance:This Veterans benefit program provides eligible Veterans and their spouses
with a monthly payment that can be used towards paying for long-term care. Paid in addition to
one’s monthly VA pension, the Aid and Attendance benefit award can be spent however the
Veteran sees fit for their care, so it can be used to pay for care homes. More information about
eligibility can be found on the official VA website.

 Life Insurance: Some seniors choose to access their life insurance benefits early to cover long-
term care costs. Some life insurance policies allow you to choose an “accelerated death
benefit,” or cash out your policy early for a portion of the full benefit value. Other policyholders
may choose to sell their policy to a third-party settlement company for a cash payment.
Regardless of which option you choose, be sure to consider the long-term impacts of accessing
your benefit early.

 Long-Term Care Insurance: Long-term care insurance is a type of insurance that covers one’s
long-term care expenses, typically including care homes. The details and benefits of each policy
can vary, so be sure to check with the insurance provider to find out what types of residential
care is or is not covered. Seniors are typically not eligible to sign up for long-term care insurance,
so this option is only available to those who have an existing policy.

 Reverse Mortgages: Reverse mortgages are loans that homeowners can take out against the
value of their home. Converting some of one’s home equity into cash can be a convenient way
for seniors to pay for residential care without feeling rushed to sell their home. Borrowers do
need to repay the loans with interest within a specified time frame.

How to Select a Residential Care Home

As with any senior-living setting, it is important to tour each prospective care home before making a
move-in decision. Ideally, family members can visit the home at various times, even unannounced, to
ensure you get a good sense of what living there is like. When visiting in-person isn’t possible, live virtual
tours are a good option. Both virtual and in-person tours allow prospective residents and their families
to pick up on lifestyle elements that may not be detectable via photos or a phone conversation. While
touring, whether in-person or virtually, take note of:

 Cleanliness: Does the facility appear clean? Do the residents appear clean and well-groomed?

 Staff Interaction: Does the staff treat residents with respect and courtesy? Do they appear to
enjoy their jobs?

 Room Accommodations: Are the rooms private, semi-private, or group rooms? Will your loved
one be comfortable sharing his/her bedroom with others?

 Bathrooms: Are there ample bathrooms for the number of residents in the home? Are there
private showers?

 Resident Interaction: Does it appear as if the residents get along and enjoy one another’s
company?

 Safety: Are hallways and stairwells free of obstacles and fall hazards? Are exits well lit and easily
accessible? Are there security systems in place to prevent unwanted visitors? Does the home
use a medical emergency alert system?

 Surroundings: Does the home offer good lighting, clean furnishings, and well-kept grounds? Are
there outdoor areas that can be used? By appearance alone, is this a place where you would be
comfortable living?

Keep in mind that you’ll likely have to visit more than one home to find the right fit, especially if this is
your first time exploring senior living options. To start the process and see what residential senior care
options are available in your area, visit our Residential care home Near Me page.

Frequently Asked Questions

What is a residential care home for the elderly? 

A residential care home for the elderly is a type of senior living. Care homes provide a similar level of
care to residential care home facilities, but are much smaller, typically housing ten or fewer residents.
Residents receive personal care assistance, meal preparation, and more services.

Are residential care homes the same as residential care home ?

Residential care homes are not the same as residential care home . While both types of communities
offer a similar level of care, including personal care assistance and assistance with daily living activities,
care homes are much smaller. Care homes typically have fewer than ten residents, while residential care
home communities can have hundreds. Due to their larger size, residential care home facilities also
tend to have more amenities.

What do residential care homes provide?

Residential care homes provide assistance with the activities of daily living in an intimate, home-like
setting. The level of care is similar to residential care home facilities, but care homes are home to 10 or
fewer residents. The homes themselves are often single-family homes in residential neighborhoods,
providing a home-like environment for seniors.
How much does residential care for the elderly cost? 

Residential care for the elderly in a care home costs an average of $4,300 per month, though costs can
vary dramatically depending on amenities offered and location. The monthly fee is the same as that for
residential care home , according to Genworth Financial. Care homes and residential care home
facilities are similar in price because they offer a similar level of care.

When is it time for residential care? 

In general, it is time for residential care when the senior can no longer independently complete their
activities of daily living. The decision may also come after an injury, or another incident that occurs
which could have been prevented in a residential setting. Ultimately, only the individual and their family
will know when it is truly time for residential care.

Are Assisted Living Homes Profitable?

posted on  OCTOBER 19, 2021

I’ve received this same question in many forms over the years. But here is what a reader, a nurse in
Florida, recently sent me:

Is there profitability in small residential ALFs?

As I’ve said before, my answer is sometimes yes and sometimes no.

I’ve seen some assisted living homes that are profitable, not extremely so, but they produce a solid
income and good lifestyle for the owner-operator.  And I’ve seen others that produce less net income
than one could make as an employee at the same home. 

Here’s why.

Unlike larger purpose-built assisted living facilities, assisted living homes normally have 10 or fewer
residents.  They’re typically single-family homes converted to use for assisted living.

In a smaller assisted living home, let’s say for up to 10 residents, you’re 10% vacant if you have just one
vacancy.  Two is 20%.  Three is 30%.  And four you’re losing money if you weren’t already. 

In a larger facility, two or three vacancies are just normal turnover and the cost of the lost revenue can
be absorbed more easily.  Not so in a smaller assisted living home. 

Maintaining occupancy is essential to staying profitable.

Another reason assisted living homes might not be profitable is because they become too dependent on
a single payor source. 

Having a house full of private pay residents who each pay you directly is optimal but it’s not common. 
Residents of assisted living homes often rely on some type of public support. 

If you have just one or two sources of that public support, you’re in a very challenging situation when
that source tells you they need to drop your rates – it happens.
One other reason that I find assisted living homes unprofitable is that the owner hasn’t given their own
work and effort enough credit – some don’t even take a paycheck but rely on (and hope for) a check at
the end of a profitable month, which isn’t always guaranteed.

When you start your assisted living home budget realistically for payroll and make sure you get paid
too!

I did a presentation on this subject a few years ago at an assisted living conference.  The presentation
notes have more ideas that you might want to consider. If you’d like a copy of that presentation, just fill
out the form below.