How to Operate a Profitable Assisted Living Facility: 6 Keys to Success

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There's a lot that goes into running a successful assisted living business. In this blog, we’ll break down exactly how to operate a profitable assisted living facility from the ground up.

 Let’s dive in.👇

Check out this video, too: 

Why This Matters

Many beginners think running a facility is all about having a home and hiring staff.

But if you don’t know how to:

  • Plan meals 🍽️

  • Control your top 5 expenses 💸

  • Lead your team effectively 💬

  • Set up strong financial systems 📊

  • Build key vendor relationships 🤝

…you’re setting yourself up for burnout (and a failing business).

Let’s fix that.

🥦 1. Feed Residents the Right Way

Feeding your residents is important, but you can make your life a lot easier if you:

  • Plan for the groceries you need to buy – Don't just guess, get organized.

  • Plan meals in advance – Use a tool like Grove Menus. This type of tool can help you:

    • Meet state nutrition requirements

    • Get automated grocery lists

    • Save money and time

💡Pro Tip: Meal planning software is one of the easiest ways to stay compliant and control costs.

💰 2. Manage the 5 Biggest Expenses

These five categories make up 80–90% of your total expenses:

  1. Wages – Your biggest expense by far (often 50%+)

  2. Insurance – Shop around! Use an insurance broker to get better rates and the correct coverage.

  3. Food – Use software like Grove Menus to control this cost, and services like Walmart+ to get your groceries delivered

  4. Utilities – Set up balanced pay plans or negotiate better rates for savings.

  5. Debt service – The amount you pay for your mortgage or loan

👉 If you want to be profitable, get a handle on these five first.

👥 3. Lead Your Team (Even If You’re Out of State)

You don’t have to live near your facility to be a strong leader.

Here’s how I do it:

  • Hire well – Build trust with your on-site team.

  • Be present (remotely) – Set up regular calls or check-ins.

  • Visit when you can – Physical presence still matters.

Leadership = Presence + Process
Even if you’re managing from a different state, consistency builds culture.

💳 4. Use a Financial Management System

Most beginners skip this step.

Try one of these systems:

You need to know:

  • Where your money comes from

  • Where it’s going

  • How to track and improve it

Then you can operate profitably.

🧾 5. Collect Payments with a System

Money is the lifeblood of your business. Here’s how to set up collection:

  • Choose a method: ACH, check, etc.

  • Tell residents and families during intake what they will owe and how you will collect from them

  • Collect banking info upfront

  • Be consistent every month

If you don’t have a system, you’ll lose money.

💡Reminder: You're running a business. Collecting money isn’t optional.

💊 6. Build a Relationship with a Pharmacy

 You’ll need a pharmacy that:

  • Understands assisted living

  • Interfaces with your EHR system

  • Helps you stay compliant with med management

Most residents will be on medications, so this is essential.

🖥️ Bonus: Use an EHR System

If you want to:

  • Track medication

  • Document care

  • Stay organized with resident records

...you need an EHR (Electronic Health Record) system.

It’s how you scale without chaos.

Ready to Launch Your Facility?

If you're serious about launching your assisted living business in the next 12 months, start with the right tools and training.

🎁 Grab our FREE Business Plan Checklist
See if your facility will be profitable before you invest.

🔥 Apply to the ALI Mastermind
Get direct coaching, training, and support to launch your facility.

Got questions? Comment below or DM us anytime. We love hearing from you and helping you move forward.

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