Business Plan: Business Plan Assisted Living Facilities

Pages: 14 (3843 words)  ·  Bibliography Sources: 12  ·  Level: Doctorate  ·  Topic: Business - Advertising  ·  Buy This Paper


[. . .] Cedar Springs Brookdale Senior Living, 2505 Spring Ave SW, Decatur, AL

3. Morning Glory Meadows Assisted Living, 2055 Main St., Fyffe, AL

4. Morningside Of Cullman, 2021 Dahlke Dr., Cullman, AL

5. Morningside Of Decatur, 2115 Point Mallard Dr. SE, Decatur, AL

6. Morningside Of Madison, 49 Hughes Rd, Madison, AL

7. Morningside Of Sheffield, 413 Cox Blvd, Sheffield, AL

8. Redstone Village, 12000 Turnmeyer Dr., Huntsville, AL

9. Regency Retirement Village, 2004 Max Luther Dr. NW, Huntsville, AL

10. The Terrace at Priceville, 200 Terrace Ln, Decatur, AL

11. Wills Creek Village Assisted Living, 1050 Airport RD W, Fort Payne, AL

12. Windsor House, Inc., 4411 McAllister Dr. SW, Huntsville, AL

Competitive Advantages

Residay's competitive advantage is reliant on the experience of care, which Carol Green has already established. Through her care for senior adults, she has established a detailed activity list which many assisted care facilities do not have. The amenities of the residential home which includes a wading pool allows for recreation during warm weather benefiting seniors who are not able to endure resistance training or workouts of a difficult nature.

Market Share

There are only a few assisted living centers in North Alabama with the primary limitation for these facilities being the number of residents they are able to accommodate. Residay will have only twenty beds although it has the goal of opening a new facilities in the future to fulfill demand.

Barriers to Entry

Due to the various Alabama state laws, regulations, and depending upon the type of facility that must be met in order to be a legitimate institution, barriers to entry in the state of Alabama are plentiful.

Alabama Laws on Assisted Living Facilities

The law governing assisted living facilities in Alabama is the Alabama State Board of Health, Alabama Department of Public Health, Division of Licensure, and Certification Administrative Code Chapter 420-5-4 on Assisted Living Facilities.

Sales and Marketing Plan

Sales Goals

During its first year Residay Residential and Day Treatment plans to have 20 long-term care residents and in its second year Residay plans to bring in five more residents bring the total to twenty-five long-term care residents at the care and treatment center.

Marketing Goals

Residay's marketing goals will be modest, due to the long-term relationship, Residay expects to have with its clients, and the present limited capacity a need does not exist for an intensive and ongoing marketing plan. The first year marketing goal is to build a waiting list of 30 prospective new residents, which will be accomplished at the beginning of Residay's second year of business with five prospective new residents being pre-screened and selected from the waiting list that has been constructed. In the event that an unexpected vacancy level occurs at any given time during operations, a more active marketing plan may at that time be instituted.

Target Market

Residay's Target Market includes senior citizens who are over the age of 60 years of age residing in the North Alabama area. These customers need basic assistance with their daily activities and routine. These customers are not critically ill although many of these customers are on medication, which will need to be administered on a daily and time-based routine. The targeted customers are such that enjoys the company of others and is presently in a living situation that has them living alone or living with their family and are such that would prefer to be part of an elderly adult community. Residay's target market will also be inclusive of more needy residents who may be suffering from Alzheimer's disease or Dementia.

Residay Residential Home and Day Treatment Facility -- Development Costs

Expense Category Estimated Amount

Land Costs

Purchase $100,000

Utilities, Site Work and Landscaping $25,000

Land Survey $2,500

Soil Tests $2,500

Environmental Survey $5,000

Title Insurance -- Owner's Policy $5,000

Subtotal -- Land Costs $140,000

Professional Fees

Planning/Consultants $60,000

Accounting $49,800

Legal $5,000

Subtotal -- Professional Fees $59,500

Construction Costs

Facility construction $2,260,000

Architect/Engineering/Design Fees $200,000

Construction Contingency $225,000

Inflation factor $120,000

Permits/Tap fees $15,000

Private Utility Deposits $1,000

Subtotal -- Construction Costs $2,281,000

Amount needed for Construction to Proceed $2,900,000 Land, Prof. Fees & Const.


Financing Cost

Construction loan:

Origination fee $19,150

Interest $100,000

'As built' appraisal $8,000

Lender Inspections $7,500

Permanent Loan:

Origination fee $20,000

Appraisal update $1,000

Title Insurance -- Lender's Policy $2,000

Recording Fees $250

Operating Reserve Needed at Startup $550,000

Subtotal Financing Cost $775,400

Furniture, Fixtures & Equipment

Kitchen/residential ranges & fridges/Washers & Dryers $75,000

Computers/LAN & Other Technology $10,000

Security/Fire/Communication Systems $5,000

Subtotal -- Furniture, Fixtures & Equipment $90,000

Total Development Costs $4,740,300

Based on these costs, just over $3 million or approximately 65% of the total cost will need to be borrowed to fully fund the construction of the Residay facility. The revenue sources and the net amount of loan needed to complete all financing are shown in the table below:

Residay Residential Home and Day Treatment Facility -- Funding Sources

North Alabama Council/BBC Grant $1,000,000 Application Submitted

Land Donation (In-Kind Match) $100,000

Cash Expended to Date $49,500

Cash that must be raised $500,000

Total Funds $1,649,500

Net Permanent Loan or Bond Needed $3,090,800


According to Alabama regulations on Assisted Living Facilities Section 420-5-2-.04 newly employed personnel "shall have a physical examination certifying that the employee is free of signs and symptoms of infectious skin lesions and diseases that are capable of transmission to residents through normal staff to resident contact newly employed personnel shall have a physical examination certifying that the employee is free of signs and symptoms of infectious skin lesions and diseases that are capable of transmission to resident through normal staff to resident contact. Employees have to be tested for tuberculosis. Employees must be vaccinated according to recommended CDC guidelines. Personnel records must be maintained on all employees. All assisted living facility administrators are required to have at least six hours of continuing education each year. All staff who are in contact with residents including administrators are required to have initial and refresher training each year. The assisted living facility is required to be staff at all times "by at least one individual who has a current certification from the American Heart Association or the American Red Cross in cardiopulmonary resuscitation (CPR). The living facility must be equipped with an automated external defibrillator and shall be at all times by at least one individual who has a current certification from the American Heart Association or the American Red Cross in AED utilization. Substitute training approved by the Department of Public Health as acceptable for EMS personnel may be utilized in lieu of those courses or certifications offered by the American Heart Association or American Red Cross in CPR or AED utilization." ( ) The assisted living facility is required to document all training that employees and staff received. (Code of Alabama 1975,, §22-21-20, et seq.)

Regulations for Care Of Residents.

The medical care of residents is required to be "under the direction and supervision of a physician. Each resident will be asked to designate an attending physician of their choice. In the event the resident is unable to designate an attending physician of his or her choice or does not desire to designate an attending physician, the facility will assist the resident in the identification of an attending physician to serve the resident. (Code of Alabama 1975,, §22-21-20, et seq.)

Back-up Physician Support

Each assisted living is required to have an agreement with one or more licensed physicians to serve in the event that the resident's chosen attending physician is unavailable and for the provision of temporary medical attention to any resident whose attending physician is not available. (Code of Alabama 1975,, §22-21-20, et seq.)


It is required that each assisted living facility will provide general observation and health supervision of the residents sufficient to develop awareness of changes in all residents' health conditions and physical abilities and awareness of the need for medical attention or nursing services. When a resident requires medical attention, or nursing services, or changes in personal care and assistance with activities of daily living provided by the facility is required to arrange or assist the residents in their receipt of the necessary services.( Code of Alabama 1975,, §22-21-20, et seq.)

Services Beyond Capability of Assisted Living Facility

When a resident is in need of hospitalization, medical, nursing or other care that is beyond the capacity of the assisted living center to provide, the assisted living facility is required to make arrangements to discharge the resident to the appropriate setting or to transfer the resident immediately to a hospital or other health care facility that is capable of providing the appropriate level of care. (Code of Alabama 1975,, §22-21-20, et seq.)

Mechanical Restraint and Seclusion

No type of restraint or seclusion should be used for residents of an assisted living facility except in what are deemed as "extreme emergency situations" and that being when the resident "presents a danger of harm to self or… [END OF PREVIEW]

Four Different Ordering Options:

Which Option Should I Choose?

1.  Buy the full, 14-page paper:  $28.88


2.  Buy + remove from all search engines
(Google, Yahoo, Bing) for 30 days:  $38.88


3.  Access all 175,000+ papers:  $41.97/mo

(Already a member?  Click to download the paper!)


4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

Business Plan for Traditional Chinese Medicine Practitioner Business Plan

Business Plan for Sleep Lab Business Plan

Feasibility Plan for the Youth Sports Development Center Business Proposal

Marketing Plan for a Hospital-Associated Assisted Living Marketing Plan

Assisted Living Term Paper

View 281 other related papers  >>

Cite This Business Plan:

APA Format

Business Plan Assisted Living Facilities.  (2012, October 31).  Retrieved May 19, 2019, from

MLA Format

"Business Plan Assisted Living Facilities."  31 October 2012.  Web.  19 May 2019. <>.

Chicago Format

"Business Plan Assisted Living Facilities."  October 31, 2012.  Accessed May 19, 2019.