The Truth About Running a Residential Assisted Living Business
Aug 28, 2024
This blog will provide the reality of the business side of owning a residential assisted living facility. If you've been looking for information on how to start and manage this type of business, you've come to the perfect spot. Navigating the world of assisted living can be challenging, but with the correct knowledge and resources, you can make your vision a reality.
Operating an assisted living facility is more than just providing care; it is about creating a long-term business that can adapt and grow in a competitive market. Understanding legal standards and mastering financial management are only two of the many key components that contribute to the success of any institution. In this blog, we'll review the essential components you must consider, such as creating a sound business strategy, securing money, finding the ideal location, obtaining necessary permits, and effectively marketing your services to attract residents.
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The Reality of Running an Assisted Living Business
Many people believe that owning an assisted care home is simple and profitable, but the truth is: it is difficult. It's quite difficult, and maintaining an assisted living facility consumes a lot of your time and energy. But don't give up; you can succeed with devotion and hard effort.
I've been through some tough times myself. In one of my films, I discussed my challenges when my administrator unexpectedly departed. Managing such problems remotely is considerably more difficult, as I have facilities in Colorado and Idaho while residing in Utah. While remote management is possible, particularly after establishing your organization, the initial phase requires much time and work.
Challenges You Will Face
Managing a residential assisted living facility has various obligations. You are accountable for the well-being of your residents and staff. It is crucial to ensure that your employees earn a living salary that allows them to support their families. Similarly, you must ensure your residents receive the best care and living circumstances.
Financial and Administrative Duties
Whether you choose private pay or Medicaid, you must handle billing. If you choose private pay, you must establish a dependable mechanism for collecting money from residents. However, if you choose Medicaid, you will need to become a Medicaid provider, master the complexities of Medicaid billing, and possibly manage several Medicaid payers.
Running a business entails dealing with the stress of financial commitments such as keeping the lights on, making payroll, and paying the mortgage. This financial pressure can be mentally demanding, so be prepared.
The Rewarding Aspects
Despite difficulties, owning an assisted living facility is quite gratifying. You get to have a good impact on the lives of your residents, their families, and your staff. Listening to your residents' life experiences and creating a supportive environment may be incredibly rewarding.
This industry has great development potential. The "silver tsunami" is genuine; millions of individuals will require assisted living services as the population ages. This demand presents significant potential for those who are prepared to work hard.
Can You Make Money with Assisted Living?
Absolutely. Assisted living can be very profitable. Even a tiny care home can earn a significant income. In previous videos, I discussed how to earn $40,000 every month. However, you must work hard and manage your time well to achieve that degree of success.
Should You Start an Assisted Living Business?
If you are passionate about senior life, willing to put in the effort, and eager to make a difference, this could be an excellent opportunity for you. The regulatory requirements and early burden can be onerous, but the long-term benefits make it worthwhile. You'll meet your financial objectives while also making a significant difference in the lives of others.
Take Action Today
The ideal moment to start was 20 years ago, and the second-best time is now. Commit to taking action right now. Suppose you're interested in residential assisted living but don't know where to begin. In that situation, Assisted Living Investing is here to guide you through the entire process, from beginning to end.
Ready to dive into the world of assisted living? Head to Assisted Living Investing and download our free underwriting calculator to help you get started.
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
Remember, the journey to a successful assisted living business starts with a single step. Let’s take that step together.
Show full transcript 👇
Transcript
00:00:00
hey friend it's Brandon Gustafson with Assisted Living investing excited to have you here on the Channel with me today and our topic for today's video we're going to be getting into the truth about the business side of running a residential Assisted Living business if you've been trying to figure out how to do this this video is for you make sure you stick [Music] around hey friend it's Brandon Guston with Assisted Living investing I own and operate two Assisted Living facil ities
00:00:30
and I created this channel to help people like you learn the ins and outs of investing in assisted living welcome to Assisted Living investing before we get into the topic of today's video which is the truth about running an assisted living business I want to remind you to get over to the website Assisted Living investing. net I've got my free underwriting calculator there to help you out through the process help you under understand how to underwrite and get really comfortable with your
00:00:54
financials and make sure you're ready to go down that path of investment now let's get into the the topic of today's video the truth about the business side of running a residential Assisted Living business a lot of people probably are just telling you oh it's great don't worry about you're going to make billions of dollars and everything's going to be fine it's not hard everything's going to be okay I'm here to tell you the truth okay let's get into it the
00:01:21
truth is it's hard it's really hard it it takes a lot if you've watched any of my videos I'll link one up above where my administrator quit uh it was really hard to go through that process and it's hard to run that business it takes a lot of your time it takes a lot of your energy and you can do this remotely my facilities one is in Colorado one is in Idaho I live in Utah I'm remote I am able to work a full-time job while I do this so it doesn't take up so much time that I can't do other things but it's
00:01:53
probably going to take a little bit more time especially in the beginning than you are thinking your right now when you think about it you're just like oh you're thinking about that in product where you've got multiple facilities and uh everything is great you've got the people in place and I think you can get there I really do um but it's going to take some time it's going to take some work up front so I want to be clear upfront and honest with you about that so you know what you're getting into as
00:02:19
you get started on your journey here so what makes it hard it's a great question the things that make it hard is you are in charge of the livelihood of a lot of people you have your residents and your staff you've got to make sure that you are providing a living wage to your staff so that they can have the things that they need to provide for their family housing food clothing all those Necessities you are in charge of doing that for them and you're in charge of doing the exact same thing for your
00:02:46
residents and making sure that they have things inside of your house and so there's a lot that goes into that you're going to have to be doing things like billing unless you hire that out to somebody and so figuring out that out are are you a private pay then you've got to build a collection system to collect the money from your residents are you Medicaid then you got to figure out the way to get certified as a Medicaid provider and then do the billing for it and learn the intricacies
00:03:12
of that and are there multiple Medicaid payers and are you getting certified with all of them what does that process look like how do you build for them and and just learning everything there there's this just the stress of owning a business that you have that you've got to deal with as well that you know you've got to keep the lights on you got to pay your bills you got to make payroll you've got to pay your house payment all of those things there's a lot of stress that comes into it as well
00:03:36
so to be honest with you there's a lot that goes into it it's hard work and it's mentally taxing and that's something you need to know as you get into this because it's not just going to be a quick walk in the park and it's not going to be a simple process nothing is if you want to be successful you got to put in the work that's just how it is but you can be successful I promise you that I say this a lot at the end of my videos if you keep making progress step by step by step I promise you're going
00:04:05
to be successful and that is the case here in assisted living as well can you make a lot of money yes I'll link up a video up above where it talks about how you can make $440,000 a month and income with assisted living now there's a lot that goes into that um and the expenses so make sure you watch that video to learn a little bit more about that but you can make a lot of money here in Assisted Living even in a small care home you can make a lot of money with with your residents and have a very
00:04:31
successful and thriving business it's it's very possible it's easy for you to do that uh it just going to take a lot of work it's relatively easy it's just going to take a lot of work for you to get to that point so that you can be successful so the next question I've told you all the all the things and been real with you that this is hard should you do it and I think you should if you are willing to put in the work then it's a great opportunity for you if you're
00:04:58
passionate about senior living and helping those that are in need and providing for residents and providing jobs to people if you're excited about those things and you're excited to make a difference and you have the patience to work through just some of the regulatory things that are going to come up and you're okay putting in the hard work this is such a rewarding option for you it really is I promise you're going to make a lot of money you're going to be able to achieve your financial goals
00:05:29
and and get to that point I really think you can but you're also going to be able to have an impact on the lives of dozens of people a lot of people as they come in and you're impacting their life you're impacting their family's life you're impacting your staff's life and you get to to do this it's so rewarding to be able to go in to to your home and go and and talk to your residents and and learn about them and what they experienced as they were growing up it it it's so rewarding it makes it so so
00:06:00
worth the amount of stress that comes into running these types of businesses I wouldn't be doing this channel I wouldn't be having my own facilities if I didn't believe in what you're doing there's also just incredible amount of of growth opportunities here the silver tsunami is real there's going to be a there's going to be thousands millions of people that are coming into this there's a housing crisis there's going to be such a huge need for these services and getting in and now is the
00:06:28
best time to do it as the proverb says I think it's a Chinese proverb it says uh the best time to start on something was 20 years ago the second best time is today today is the time for you to do it make sure you are taking action make sure you get committed to it and if it aligns with what you want to do then you're in the right spot this is going to be a successful and rewarding opportunity for you and I'm so excited to help you along the journey make sure you like the video subscribe and ring
00:06:52
the bell as well so you get notified every time we go live or put out some more of this content what I'm doing here is trying to build everything so that you can start your own Assisted Living business does residential Assisted Living sound interesting to you but you don't know how to get started at Assisted Living investing we are here to help you through the process start to finish I want to thank you for watching reminder to get over to the website Assisted Living investing. net have our
00:07:17
free underwriting calculator there you can scroll down and get our accelerator course as well and that will help you alonger your journey it gets you on a 12we path to ownership and starting your own Assisted Living business excited to share all of these things with you thanks for watching and have a great [Music] day
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