As we all know, Assisted Living is increasingly becoming popular due to improved medical care. The population of baby boomers, and in general, people above 65 years have increased. A good number of people in this population require some level of specialized care.
According to the National Center for health statistics, there were 1.3 million people residents in AL and nursing home facilities by 2015 while in 2016 the total number of licensed homes stood at 15,600. It is worth noting that 69.3% of this belonged to private-with-profit ownership. This means that there is an already existing opportunity for one to venture into the Assisted Living Business.
From the above statistics, it is evident that people can, and are indeed, making a living by offering assisted living services. Today, the number has continued to grow. This has been necessitated by the ever-rising cost of living, which makes people work for longer hours, meaning that they have less time to take care of their loved ones.
In the event that you are in a population that has a need for assisted living facilities, and are interested in having one, it would be a good idea to start. With diligence, quality services and care for your clients, your facility will be profitable in no time at all.
Just like with any other business, you will need to take a number of measures to ensure that your facility is profitable. Below are a number of ways through which you can ensure profitability:
One of the greatest determinants of the profitability of your facility is the pricing. How you price your services will contribute greatly to how much you make. One of the common mistakes that most Assisted Living Facility owners make is that they rush to price their services without carrying out enough market research. You will first need to carry out enough research on the average pricing in the market.
Currently, the prices are ranging between $3,500-$4,000+, depending on the location and the services that are offered.
Knowing the price on the market will give you a rough idea of what to charge. You may also use clever tactics like offering some extra services at an extra cost. For instance, with a premium rate, you may offer care at an extra cost. In such an instance, you would be able to earn more on extra services.
This is just an example of what you can do to earn more money.
No matter the tactics you employ, the most important thing to ensure is that they are ethical and customer-centered. They should, however, ultimately make you money. Correct pricing ensures that you do not overcharge, which may make your services less desirable and, at the same time, you do not undercharge, which may lead to losses.
Cost is another aspect that will directly impact your profitability. Managing costs can greatly assist you in pricing your services lower and still making a profit. A quality cost analysis will be necessary if you are to effectively regulate cost. To do this, you will need to first list all the recurrent costs like rent and wages. Know the average incidental costs and make allocations for them. From this, formulate a workable budget and stick to it.
It might be necessary to make certain adjustments along the way, but they should be justifiable. On reducing cost, always be on the lookout for cheaper options. For instance, rental rates are usually lower if there are less dense populations.
When it comes to the service industry, always go for quality over quantity. The service industry is all about the quality of the services that you offer as opposed to the number of services you have. When setting up an assisted living facility, be clear about what you want to do so that you can perfect it.
It is better to choose from the population, the kind of residents that you will be admitting. That way, you are able to specialize in how well to take care of them. Wherever possible, choose a clientele carefully and do your best to offer the best services in the market. Since old age and special conditions are sensitive conditions, most people will not mind paying more provided they are assured that their loved ones will have the best care available.
The points above are just a few ideas through which you can ensure that your Assisted Living Facility is profitable. When starting, it is always advisable to start small and pick the lessons as you go along. That way, you will avoid making expensive mistakes that could run you out of business.