How to Plan Financially for Your Assisted Living Startup

assisted living expenses assisted living financial planning assisted living funding grants for assisted living profit first assisted living sba loans for assisted living start an assisted living business underwriting calculator Aug 06, 2025

Getting your assisted living business off the ground takes a lot of financial planning. You don’t need an MBA, but you do need to know where your money’s going, how to get funding, and how to understand your numbers.

Let’s break down the key things you need to know before you open your doors.

Check out this video, too:

Why This Matters 🧠

If you want to open an assisted living business, you’ve got to make sure the numbers work. Most beginners get overwhelmed by funding, expenses, and whether their deal is profitable.

That’s why financial planning is part of your foundation for launching your assisted living business. When you know your numbers, you can move forward with confidence.

Step 1: Understand Traditional Funding Options 💼

There are a few main ways to get funding for your assisted living business:

SBA Loans – Great for small business startups. They’ll look at your personal credit, tax returns, and bank statements.
Conventional Loans – Similar to SBA but may have different terms or less paperwork.
Hard Money Loans – These are based more on the property than your credit. But, you are still on the hook to repay the loan.
Unsecured Lines of Credit – Based on your creditworthiness, not backed by property.

👉 Tip: Lenders will evaluate you. So if your credit score isn’t great, start working on it now..

Step 2: Consider Partnerships 🤝

If you have a low credit score or don't have the funds yourself for a down payment, don't let that stop you. You can team up with a partner who has better credit, available funds, or more experience in the industry that a lender might be looking for.

This is how many beginners get started—with a strong partner to help with funding and credibility.

Step 3: Know the Reality About Grants 🏛️

Grants can be amazing, but they’re not a quick fix for new startups.

Here’s the truth:

Most grants go to businesses that are already established (3+ years in many cases).
You need to be consistent at looking for grant opportunities—new grants are released almost daily.
Grants work best for upgrades like technology, renovations, or expanding services, not necessarily for getting started
They’re not a magic wand, but they can help offset costs later.

✅ Real example: I have secured over $1.2M in grants, but those grants came after establishing my business.

Step 4: Know Your Top 5 Expenses 📊

Once you're funded, you need to know where your money is going. These are the 5 biggest expenses in assisted living:

Wages – This eats up 50–80% of your budget. Pay your caregivers well!
Food – Groceries, meals, snacks.
Utilities – Water, electricity, gas, internet, and TV.
Insurance – Liability, property, and workers’ comp.
Debt Service – Loan payments.

These five expenses will make up 80–90% of your total expenses. If your income covers these plus a little extra, you’re likely looking at a profitable opportunity.

📌 Pro tip: Use our free Underwriting Calculator to run the numbers and make sure your deal works.

Step 5: Choose the Right Size Facility 🏠

Your margins will depend a lot on your facility size.

I suggest looking at opportunities with 10+ beds because:

It allows you to be more hands-off.
Larger homes support more staff and have better margins.

But each opportunity should be analyzed on it's own! Smaller facilities (like 6 beds) can still work if you’re more hands-on or in a high-income area.

💡 Evaluate deals based on your market and your lifestyle goals.

Step 6: Get a Financial Management System 📚

Don’t just wing it. Get organized with your money from day one.

I recommend the book Profit First by Mike Michalowicz. It’s a fun, simple system that helps you:

Pay yourself first
Budget for expenses
Create a sustainable business

We use a modified version of Profit First and even work with a certified Profit First professional for our facilities.

What to Do Next ✅

Ready to take control of your numbers? Start with these simple steps:

Download the Underwriting Calculator – It’s free and helps you evaluate your deal.
Apply to the Assisted Living Investing Mastermind
Comment below – What type of funding option are you considering?

Final Thoughts 💬

Financial planning isn’t scary—it’s smart. The more you know your numbers, the faster you can launch and grow your assisted living business.

Download Your FREE Calculator

Send Me My Calculator

Stay connected with news and updates!

Join our mailing list to receive the latest news and updates from our team.
Don't worry, your information will not be shared.

We hate SPAM. We will never sell your information, for any reason.