Ideal Partners for Your Residential Assisted Living Business
Aug 29, 2024
Starting a residential assisted living business is an exciting experience, but one of the most important decisions you'll have to make is selecting the correct partner. Partnerships can provide numerous benefits, ranging from shared responsibility to increased financing prospects. The right partner can strengthen your abilities, give you new resources, and assist you in navigating the industry's intricacies.
In this blog, we'll look at who you should consider working with to increase your chances of success. We'll discuss the various types of partners, such as industry experts, investors, and healthcare professionals, and how each can bring something unique to your enterprise. We'll also explore establishing clear legal structures to protect both parties and facilitate easy collaboration. Understanding the advantages and disadvantages of partnerships can enable you to make more educated decisions consistent with your company's goals and vision.
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Importance of Legal Structures
Building a strong legal foundation is crucial before considering potential partners. Consult an attorney to ensure you have the proper legal structure in place. Forming an LLC is generally recommended for residential assisted living enterprises. This structure protects against liability and is easier to maintain than a sole proprietorship.
Make sure you have an operational agreement that specifies each partner's obligations. This agreement will clarify expectations and avoid misunderstandings. Remember, precise legal documentation is crucial for a successful relationship.
Who to Consider as Partners
Family Members
Family members can make terrific companions. They bring a sense of trust and familiarity that can be really beneficial. For example, I have partnered with my father, so the family-owned model has worked well for me. On the other hand, working with family necessitates clear boundaries and well-defined roles to avoid personal concerns interfering with company operations.
Friends
Close friends or new acquaintances from industry meet-ups can also be potential partners. The key here is trust. Ensure you trust their capabilities and their commitment to the business. Friends who understand your goals and share your vision can be great allies.
Business Associates
Consider who you've worked with professionally. Business companions with complementary abilities can provide great benefits. If you have a colleague whose abilities match the requirements of your assisted living business, they could be an ideal partner. The current professional relationship can be a solid basis for your business cooperation.
Benefits of Partnerships
Shared Responsibilities
Sharing responsibility is one of the main benefits of partnerships. For example, my parents handle our company's finances and bookkeeping, and I concentrate on regulatory compliance and administrative duties. This division of work allows each partner to focus on their skills, resulting in increased operational efficiency.
Enhanced Funding Opportunities
Partnerships can also improve your chances of securing funding. Banks and lenders are likelier to extend credit to a team with diverse skills and shared responsibilities. Having multiple partners can demonstrate stability and commitment to potential financiers.
Risks of Partnerships
Shared Liability
While partnerships have numerous advantages, they also have risks. All partners share liability for any legal or financial difficulties. If one partner participates in unethical behavior or fails to comply with regulations, all partners may face consequences. This shared liability emphasizes the value of trust and proper vetting of potential partners.
Potential for Conflict
Even with clear agreements, conflicts can arise. Differences in vision, work ethic, or management style can lead to disputes. Mechanisms are essential to resolve conflicts and maintain a healthy working relationship.
Choosing the right partner for your residential assisted living business is a critical decision. Whether it's a family member, friend, or business associate, ensure you trust them and have a clear legal structure in place. Partnerships can provide significant benefits, from shared responsibilities to enhanced funding opportunities. However, be aware of the risks and take steps to mitigate them through clear agreements and open communication.
If you want more detailed guidance on starting your residential assisted living business, visit Assisted Living Investing. Download our free underwriting calculator and explore our resources.
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
Show full transcript 👇
Transcript
00:00:00
hey friend it's Brandon Gustafson with Assisted Living investing welcome to the channel and today's video we're going to be talking about who you should be partnering with to start your residential Assisted Living business if you're interested in learning about that make sure you stick around for today's [Music] video hey friend I'm Brandon Guston I own and operate two assisted living facilities and I created this channel to help people like you learn the ins and outs of investing in Assisted Living
00:00:30
Well welcome to Assisted Living investing before I get started on the topic for today which is who should you be partnering with to start your residential Assisted Living business I want to remind you to get over to the website Assisted Living investing. net you can get access to our free underwriting calculator a bunch of other free stuff there as well and if you scroll down you can see some of the other things that I have available on the website now let's get into the topic for today's video which is who should we
00:00:54
be partnering with to start your residential Assisted Living business great question for you if if you are trying to figure that out right now but before I talk about who you should be doing I want to tell you give you a little bit of advice with the caveat I'm not an attorney um but here's where I would give give you some advice talk to an attorney make sure you have the structure in place first make sure you talk to an attorney uh have things set up appropriately in the correct legal structure make sure you are creating and
00:01:22
operating an agreement between you and whoever your partners are so everybody knows exactly what work they're going to be doing and also you're going to probably want to consider creating an LLC I created a video on this topic of should you do a sole proprietorship or an LLC in residential Assisted Living uh so make sure you go watch that it's going to give you a little bit of clarification on which of those is best for you I would recommend an LLC though for the reasons why go watch that video
00:01:48
though the next thing you're going to want to do is start considering who is a good person who do you trust really and this is going to come down to a few different things I mean you could get into business with family I've talked about this before I own my facilities with my dad and so we have it you know it's a family-owned business and we operate it together which is great you'll be looking at friends uh as well and those could be close friends that you grew up with you you hear all kinds
00:02:15
of stories about people that do that with their their businesses it could be that person or it could be a new friend that you met at a Meetup um as you are going through and trying to figure out who you should be partnering with friends and family are great options for you to be doing it but you want to make sure that you trust that person that you trust their ability to kind of work with you and and help you reach your goals you also might consider business associates people that you've worked
00:02:41
with for a long time and you have a good working relationship you already know how you're going to work together and they're a friend of yours as well but that's a really great opportunity for you to leverage some of those experiences that you have if you've got somebody at your work who you feel confident in and your your skill sets complement each other and you feel like like you could go into business together doing this uh that's another great person think to yourself who do I trust
00:03:07
and then start having those conversations with those people start building that relationship and see if it's something that you really want to move forward with it's going to benefit you a lot rather than just taking old some old schmuck off the street uh getting in business with somebody you know and trust is going to be huge now I want to talk to you a little bit about why a partnership is such a great idea um partnersh are a really good idea because you can spread out that workload a little bit so in our business with our
00:03:36
facilities my dad and and my mom actually helps out with this they take care of the finances they do the bookkeeping um they take care of all the financial stuff they bill for our residents and things like that which is great it's something I could very easily do I have the skill set for it but it's something I would prefer to not do um and it takes so much time so they work on that and I work a little bit more closely with with our administrators and do a little bit of coaching with them
00:04:03
and make sure the licenses are in place and a lot more of the regulatory stuff are the things that I do and part of that is I have the education and the background for it I work in the healthcare industry so I've got a lot of experience with it so that helps out a lot as we get started on our journey of investing so it's just something that you might want to consider there what are the skill sets that you have and then it's with your partners you can spread that out a little bit as well
00:04:29
which is going to just save you a little bit of time and heartache and headaches as you go through this you don't have to do this all by yourself reason would be you're probably able to qualify for better loans if you have multiple people one of you might have better credit than the other or it's also showing to a bank that hey these are a group of people this person is not trying to just do this by themselves I feel a lot more comfortable working with them and lending them the money that they need to
00:04:54
get started on this business so they can be successful so that's another really key part there uh with that one is just you're probably going to be able to open up a few extra funding opportunities for you and just make it a little bit easier for you to get the funding you need to get started with your Assisted Living business now I'm going to tell you a few reasons why you may not want due to a partnership or why you really need to be careful before you jump into a partnership with somebody and the big
00:05:23
reason for that is you're both liable if one of you or somebody in the partnership does something they shouldn't be doing so if you have somebody that is embezzling funds or you have somebody that is letting it go as far as the license and not getting that in place or you're just not being compliant with the way that you need to be compliant in Assisted Living um with different regulations and things like that then you as a group are all going to be liable for that those issues and those shortcomings so that's another
00:05:55
reason why you have to trust the people that you're getting into a partnership with if you don't have that level of trust TR it's going to give you a little bit of pause I think you might want to consider not moving forward with a partnership uh I think it's better for you to avoid a partnership that you're not comfortable with and don't have complete trust in as opposed to just jumping into it because you want to get it done um because you don't want to put yourself in a bad situation that's why I
00:06:20
suggested that you create the proper legal entity and you take a lot of time building out that operating agreement with your attorney to make sure everybody's rules are specific specific and you know who's doing what those types of precautions are going to allow you to just have a level of confidence in your ability to operate and and run the the business the way that you would like to do it so with all of that said Partnerships a great way for you to get started on your investment Journey
00:06:49
especially here with residential Assisted Living uh it's a great way for you to help get funding and spread that work around it's going to make your life a whole lot easier and just going to make it a a better experience for you overall as you get started on your investment Journey here with residential Assisted Living does residential Assisted Living sound interesting to you but you don't know how to get started at Assisted Living investing. net we're here to help you through the process
00:07:13
start to finish I want to thank you for watching want to remind you to get over to the website as well uh Assisted Living investing. net have our free underwriting calculator to help you on your investment journey and if you scroll down on the website you're going to see our accelerator course which is going to help you get to your path to ownership and just 12 weeks uh it's everything that I learned to close my facilities from starting in May of 2020 to September in 20120 shows you can do
00:07:39
this in that amount of time uh coaching you through that process and those videos so excited to share that with you want to remind you to like the video subscribe and ring the bell as well so you get notified every time we go live and do this content for you to help you out on your investment journey I want to thank you for watching and have a great day [Music]
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