Retirement Community Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Retirement Community Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Retirement Community business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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As the Baby Boomer population enters their later years, the demand for housing within a retirement community is expected to grow substantially. In fact, the industry has already experienced 10% year on year growth as more and more people look to acquire housing in preparation for them turning 65 and older. One of the nice things about retirement communities is that they are able to generate a substantial amount of revenue from a number of different sources among their residents. Foremost, many retirement communities allow their residents to actually purchase the unit that they live within. This allows for a significant sum of money to made at the onset of operations once the initial sales are made. Additionally, these retirement communities if they do not sell their units directly to their residence will generate a significant sum of money on a monthly basis from ongoing rental fees. These fees can be significant if they are tied in with specialized on-site healthcare services that are offered as part of the companies menu. Finally, many retirement communities will also produce income by offering on-site food, laundry service, transportation, and other ancillary services that are normally associated with this type of business. On average, among retirement communities that rent their rooms to individuals while concurrently providing support services – the monthly fees can range anywhere from $2,500 per month to over $6,000 per month depending on the location. As such, these specialized wheels the businesses can be highly lucrative. The barriers to entry for new retirement community are considered moderately high given that a large-scale facility needs to be developed. Typically, a retirement community can have a startup costs as low as $2 million only up to $100 million depending on the type of facilities being developed and whether or not the housing units are considered to be standalone detached houses.
Given their highly economically secure nature, almost all financial institutions and private investors have an interest in placing money with retirement community businesses. This is primarily due to the fact that these businesses will produce income from their residence in any economic climate given that most people that enter retirement community have plan to do so and have the capital on hand to either purchase units or rent one on a monthly basis. Of course, a retirement community business plan is going to be required if the entrepreneur is looking to raise capital for these projects. This business plan should include a three-year to five-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page it follows industry standards that are in line with similar real estate businesses. Most importantly, within the business plan a thorough demographic analysis discussing the percentage of people over the age of 65, percentage of people that will be entering the age of 65 within the next 10 years, median household income, median family income, competing businesses, and other pertinent demographic information should be thoroughly discussed and examined. Given the extremely high demand for retirement community housing, competition within this market is growing steadily. This trend is expected to continue over the next 20 years.
Once the business plan is complete, it is time to develop the retirement community marketing plan. One of the key aspects to ensuring that sales and rentals are made quickly once the facilities are complete – is to develop relationships with qualified real brokerages and real estate agents. As this is a real estate focus business that offers specialized services, a real estate broker should be hired in order to assist the retirement community with making sales. One of the nice things about working with a real estate brokerages that they only receive their feet once a sale is made or rent is placed within the facility. Also, they incur the marketing risk associated with promoting the units to the general public. Beyond retaining a proper real estate brokerage, it is imperative that the retirement community also maintain an expansive online website. This website should feature interactive tours of the facility, a list of services offered, the pricing, hours of operation, contact information, and how a potential resident can enroll in the company services. One of the things that is frequently done as well is to develop relationships with social workers that manage cases among older people who rely heavily on their families for ongoing care. These social workers can provide referrals to family members that are looking to move an elderly family member to a retirement community so that they can be cared for properly on a day-to-day basis. While many retirement communities operate strictly as independent living facilities – most of these businesses do maintain a operating segment that does assist people with their certain day-to-day needs. As it relates to maintaining a presence on social media, this can be done solely to boost the brand-name visibility of the business but is not really a necessity in order to produce a significant amount of sales or rental income.
Finally, a retirement community SWOT analysis should be developed as well. As it relates the strengths, there is a huge demand among people who are just about to enter senior citizen age or have already received a 65 for quality retirement community living. The gross margins generated from of sales and rentals are very hard. The barriers entry are also very high. For weaknesses, there is going to be significant amount of competition moving forward. However, demand currently outpaces supply substantially and this will only be an issue 10 to 20 years in the future. The ongoing expenses of retirement community can also be considered relatively high provided that the companies can offer specialized day-to-day living services to its residents. For threats, is really nothing that is going to impact the way these companies do business on a regulatory level. However, a substantial decline in the quality of the economy may impact the number of people that can afford to purchase these units. This is primarily due to the fact that most senior citizens have saved for the retirements and if there is a market crash than there are going to there going have less income and less capital to purchase or rent these units.