Assisted Living: Start Here

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So you want to open an assisted living facility—but where do you even begin?

This blog walks you through the first steps to get your business off the ground the right way.

Whether you're a nurse, a real estate investor, or someone with a big heart and a big vision, this is where you start. Let’s go! 🚀

Check out this video, too;

Why These First Steps Matter

Most people get stuck because they’re trying to figure everything out all at once.
The truth? You only need to focus on the next right step.

Here’s why going through this process matters:
✅ It saves you time and money
✅ It helps you avoid costly rookie mistakes
✅ It sets the foundation for a facility people actually want to live in

If you're not sure where to start, don’t worry—you’re in the right place.

Step 1: Choose Your Launch Path

There’s more than one way to start an assisted living facility. Your first big decision is which path is right for you.

🏠 Buy an existing facility – Fastest path but requires capital
🔄 Convert a home you already own – Lower cost, great for control
📄 Rent a home to convert – Less risk, great for testing the waters
🏗️ Build from the ground up – Highest cost, but full customization

💡 Need help comparing options? Check out the Profit Path Tool to see which option is best for you.

Step 2: Understand Your Local Requirements

Assisted living rules vary depending on your state. Some are more small-facility-friendly than others.

📍 Here’s what to research:
✅ Licensing requirements
✅ Zoning rules
✅ Staffing ratios and training
✅ Medicaid vs. Private Pay options

Look for areas where small residential homes are supported.

Step 3: Learn the Business Model

Before you invest time or money, you need to understand how assisted living makes money.

💰 Revenue = Residents × Monthly Rent
📉 Expenses = Staffing, food, insurance, mortgage, licensing, etc

Most facilities aim for 20–30% profit margins, and some break even at 5–6 residents.

🧮 PRO TIP: Use our free Underwriting Calculator to plug in your numbers and see what it looks like for you.

Step 4: Know Who You Want to Serve

Your ideal resident shapes everything—your license, location, staffing, and care model.

Ask yourself:
👵 Do I want to serve seniors with memory care needs?
♿ Adults with disabilities?
💸 Medicaid residents or private-pay only?

The clearer your vision, the smoother the process.

Step 5: Get Support Early

Trying to do this alone is the slow and expensive way. Most successful operators get coaching or join a community.

You don’t need to figure it all out solo—you just need a system.

That’s why we created the ALI Basics, which gives you:
✅ Get your questions answered
✅ Templates and tools
✅ Monthly Q&A coaching
✅ A community to lean on

Next Steps: Take Action

You’re not behind—you’re right on time.
Here’s what to do next:

Download the Business Plan Checklist
Join ALI Basics
Take weekly action toward your first facility

Got questions? Drop them in the comments. Let’s build this together 💪

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