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A Sample Adult Daycare Business Plan Template

An adult daycare center is a non-residential daycare facility that provides support in the area of health, nutrition, social, and daily living needs of adults in a professionally staffed, group setting. Adult daycare is designed to provide adults with transitional care and short-term rehabilitation especially when they are discharged from the hospital or when their family members are not around to take care of them.

Available data shows that currently, there are over 7,500 adult day care programs operating in the United States, up from 4,601 in 2010, and they provide care for more than 282,000 elderly Americans. Of these 4,800 registered daycares, 78 percent operate as not-for-profit while 22 percent of the centers operate as for-profit corporations.

Steps on How to Write an Adult Day Care Business

Executive summary.

Lady Annie® Adult Day Care, LLC is an adult day care facility that will be based in Silver Spring, Maryland, and the organization will be committed to providing care and companionship for older adults who need assistance or supervision during the day.

Our programs are designed to offer relief to family members and caregivers, allowing them to handle personal business, or just relax while knowing their relative is well cared for and safe. Lady Annie McKenzie is the founder and CEO of Lady Annie® Adult Day Care, LLC.

Company Profile

A. our products and services.

Lady Annie® Adult Day Care, LLC will provide a facility and a wide range of services that revolve around;

• Care-planning services
• Daily living assistance (day only)
• Nursing and health services
• Therapeutic services
• Meal services
• Transportation services
• Social activities.

b. Nature of the Business

Our adult daycare facility will operate as a nonprofit organization, we will source finance from donor organizations, private donations, and relevant government agencies. But in some cases, we will charge residents or their family members for the services rendered, though we are designed not to make profits.

c. The Industry

Lady Annie® Adult Day Care, LLC will operate in the adult day care industry.

d. Mission Statement

Our mission is to provide a safe and secure adult daycare facility that is geared toward taking care of old people.

e. Vision Statement

Our vision of establishing our adult daycare facility is to give elderly people all the support and care they need and to make elderly people not miss their families when they are left in our care.

f. Our Tagline (Slogan)

Lady Annie® Adult Day Care, LLC – Taking Care of The Elderly!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Lady Annie® Adult Day Care, LLC will be formed as a nonprofit corporation at the state level and we will apply for a 501(c)(3) tax exemption at the federal level.

h. Our Organizational Structure

• Head of Daycare (President)
• Daycare Manager (Administrator)
• Nurse’s Aides
• Caregivers/Social Worker
• Account Officer
• Front Desk Officer
• Security Guards

i. Ownership/Shareholder Structure and Board Members

• Lady Annie McKenzie (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
• Rev Fr. Romanus Marcus (Board Member) 19 Percent Shares
• John Bosco (Board Member) 10 Percent Shares
• Aaron Barosh (Board Member) 10 Percent Shares
• Laura Michael (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal Location for an adult day care facility
• Highly experienced and qualified employees and management
• Access to a pool of donor organizations
• Highly secured and clean facility
• Highly structured programs that are aimed at helping families keep their elderly people within the period they will be away.

b. Weakness

• Inability to initially manage the organization without the support of donations and grants
• Financial Limitations
• Operating from a leased facility
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• The aging population in the United States is growing hence providing opportunities for adult daycare facilities
• Government funding for Medicare and Medicaid and private donations are anticipated to increase support for adult daycare facilities.
• The adult daycare industry is projected to reverse its decline trend and increase in the coming years.
• Finance from donor organizations, individuals, and relevant government agencies et al.

i. How Big is the Industry?

The adult daycare industry is a big one. Statistics show that the market size of the adult daycare industry was $5 billion in 2023.

ii. Is the Industry Growing or Declining?

The adult daycare industry is a growing industry. The market size of the industry in the US grew 5.5% per year on average between 2017 and 2022. With more than 7,500 Adult Day centers across the United States, the industry is a growing source of long-term care.

iii. What are the Future Trends in the Industry

The adult daycare industry is changing, and players in the industry are improvising. No doubt, technology, and customized software will change the landscape of the industry going forward.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no niche ideas when it comes to the adult daycare facility line of business.

v. Can You Sell a Franchise of your Business in the Future?

Lady Annie® Adult Day Care, LLC has plans to sell franchise in the nearest future and we will target major cities with a growing number of elderly people in the United States of America.

• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance (the community may not want such a facility in their community)
• Liability problems
• The arrival of competitors within our market space.

i. Who are the Major Competitors?

• Senior Care Inc.
• Easterseals
• Right at Home
• SarahCare Adult Day Care Center Services
• Elder-Well®
• Greenacres Adult Day Care
• Interim HealthCare
• Home Care Assistance
• HomeWell Senior Care

ii. Is There a Franchise for Adult Day Care Facility? If YES, List them and their cost

Yes, there are franchise opportunities for adult daycares, and here are some of them;

• Right at Home (Total startup costs – $75,000 to $100,000)
• SarahCare Adult Day Care Center Services (Investment $212,427 – $513,427)
• Elder-Well® Franchisee
• Greenacres Adult Day Care Franchise
• Interim HealthCare (Initial Investment – $125,500 to $198,500)
• Home Care Assistance ($77,775 to $245,250)
• HomeWell Senior Care (Investment $75,000 – $120,000)
• BrightStar ($95,000 to $163,000).

iii. Are There Policies, Regulations, or Zoning Laws Affecting Adult Day Care Facility in the United States?

Yes, and zoning laws require adult daycare operators to follow specific rules and regulations, including some that apply only to home daycare. These laws are designed to address the unique circumstances of a business operating in a residential area.

Many laws seek to minimize the negative impact on the community, which can be affected by increased vehicle traffic and neighborhood noise. Other laws regulate how properties are altered, including the addition of business signage and the construction of fencing and playground equipment.

Zoning laws also provide special requirements designed to address special circumstances related to these businesses. Please note that in many communities, zoning laws require adult day care providers to apply for a permit from the city.

This application process allows the city’s zoning department to determine whether the home daycare meets the zoning rules for the community. Permits also ensure that all adult daycare centers are properly licensed by county or state agencies.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market is elderly people that are from 65 years and above.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will accommodate in our adult day care facility.

iii. Income Level

We don’t have any cap on the income level of those we will accommodate in our adult day care facility. Besides, most people who are admitted into adult daycare facilities have no source of income because they are retired.

iv. Ethnicity

There are no restrictions when it comes to the ethnicity of the people we will welcome in our adult day care facility.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome in our adult day care facility, but we will prefer people that speak English and Spanish.

vi. Geographical Location

Anybody from any geographical location will be welcomed in our adult daycare facility.

vii. Lifestyle

Lady Annie® Adult Day Care, LLC will not restrict any elderly person from accessing our facility and services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch The Attention of Elderly People.
• Use FOMO to Run Photo Promotions.
• Share Your Events in Local Groups and Pages.
• Develop Your Business Directory Profiles
• Build Relationships With Other Nonprofits and related organizations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), and referral (also known as word-of-mouth marketing).

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our adults
• Create an efficient content marketing strategy.
• Create a community for our donors and volunteers.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Lady Annie® Adult Day Care, LLC will make sure it covers upkeep and medications for each elderly person. All our pricing strategies will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charities to help refer elderly people to us.

Lady Annie® Adult Day Care, LLC will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our adults, their families, and donors.

b. Inventory Strategy

The fact that we will need toiletries, medications, change of beddings, and foodstuff per time means that Lady Annie® Adult Day Care, LLC will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.

c. Payment Options for Customers

Here are the payment options that Lady Annie® Adult Day Care, LLC will make available to her donors and contributors;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Lady Annie® Adult Day Care, LLC, we offer services, and the nature of services we offer does not accommodate a return policy, but we guarantee our clients of the comfort of their aged family members.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at an Adult Daycare Facility?

• The facility is open for the day
• The facility is cleaned and prepared for the day’s activities
• Adults are welcome
• They are provided with programs that will help them to socialize and bond with other adults.
• House chores are carried out at different intervals during the day
• Administrative works are done
• The facility is closed for the day and family members come to pick up their family members.

b. Production Process

There is no production process when it comes to an adult daycare facility business.

c. Service Procedure

There is no service procedure when it comes to an adult daycare facility business.

d. The Supply Chain

Lady Annie® Adult Day Care, LLC will rely on social workers, counselors, religious organizations, and government agencies to refer elderly people to us. So also, we have been able to establish business relationships with wholesale supplies of beddings, toiletries, medications, foodstuff et al.

e. Sources of Income

Lady Annie® Adult Day Care, LLC will make money from;

• Contributions from partners and donors
• Family members of the aged in our daycare
• Grants from government agencies and charity organizations
• Community support.

The cost to live in our adult day care varies and it will range from about $100 to over $2,000 per month.

Financial Plan

A. amount needed to start our adult daycare facility.

Lady Annie® Adult Day Care, LLC would need an estimate of $450,000 to successfully set up our adult day care facility in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
• Operational Cost (salaries of employees, payments of bills et al) – $40,000
• Start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $80,000
• Website: $600
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

Lady Annie® Adult Day Care, LLC will not build a new facility for our adult daycare; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running an Adult Day Care Facility?

• Cost of stocking up supplies such as beddings, medications, toiletries, and beddings et al
• Cost of food supplies and ingredients
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Head of Day Care (President) – $45,000 Per Annum
• Day Car Manager (Administrator) – $36,034 Per Annum
• Nurse’s Aides – $29,660 Per Annum
• Caregivers/Rehab Counselors – $32,878 Per Annum
• Fundraiser – $36,500 Per Annum and based on target
• Account Officer – $35,000 Per Annum
• Front Desk Officer – $28,000 Per Annum
• Cleaners – $22,000 Per Annum
• Security Guard – $22,000 Per Annum

f. How Do You Get Funding to Start an Adult Daycare Facility?

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from our family members and friends.

Financial Projection

A. how much should you charge for your service.

At Lady Annie® Adult Day Care, LLC, it is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donor agencies, community, and government support.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $450,000

c. Estimated Profit You Will Make a Year?

Lady Annie® Adult Day Care, LLC will operate as a nonprofit organization.

d. Profit Margin of an Adult daycare facility 

Lady Annie® Adult Day Care, LLC is designed not to make profits hence we don’t have a profit margin for our services.

Growth Plan

A. how do you intend to grow and expand .

Lady Annie® Adult Day Care, LLC will grow our adult day care facility by first opening other outlets in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical locations)

Lady Annie® Adult Day Care, LLC plans to expand first to Sumter – Florida, and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, and Catron New Mexico.

The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest number of elderly people in the United States. According to Pew Research, 115,350 elderly people live in Sumter – Florida and that is about 52.9 percent of the population of the county which is the highest in the whole of the United States of America.

The founder of Lady Annie® Adult Day Care, LLC plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the organization can be placed under a trusted hand when the founder retires.

The goal of combining two or more charitable organizations that are into adult daycare or even senior care and group homes on a global scale is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team and board of trustees.

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How to Start an Adult Day Care Business in 14 Days (In-Depth Guide)

Updated:   January 31, 2024

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The adult day care industry brought in over $16.5 billion in revenue in 2022. With over 4,700 licensed adult day care centers nationwide, the industry continues to grow. The projected compound annual growth rate is 5.10% from 2022 to 2030.

Baby Boomers age into retirement. Demand is ever-increasing for these community-based centers that provide social activities, meals, and health monitoring during daytime hours. For entrepreneurs interested in tapping into this expanding market, an adult day care can offer a rewarding small business opportunity with the chance to make a real difference in the lives of the elderly.

From assisted living activities to monitoring chronic health conditions, adult day cares to fill a vital need for seniors still living at home but requiring some support. This guide will walk you through how to start an adult day care. Topics include market research, competitive analysis, registering an EIN, forming an LLC, and more.

1. Conduct Adult Day Care Market Research

Market research is integral to starting an adult daycare center. It provides insight into needs within the human services industry, trends in products and services, your target market, and local market saturation.

Some details you might learn through market research include:

• With 10,000 baby boomers turning 65 every day, the target demographic is rapidly growing.
• The adult day care sector sees demand from two primary channels.
• First is elderly individuals still living independently or with family.
• Second is caregivers needing daytime supervision for relatives with disabilities or medical conditions.
• Caregiver statistics show over 43 million Americans currently provide unpaid elder care.
• Adult day cares appeal to caregivers struggling to balance jobs and elderly relatives.
• Industry reports show dementia care is the fastest-growing segment.
• Alzheimer’s diagnoses are projected to triple by 2050.
• Recreational activities are a big part of adult day care centers.
• The increasing elderly population, growth of age-related diseases, and rise of long-distance family caregivers provide a supportive environment.
• Entrepreneurs can capitalize on this forecast by providing quality community-based daytime care.

With low barriers to entry, limited licensure requirements, and durable demand drivers, an adult daycare can offer a sustainable small business model. As you conduct market research you’ll learn more about the needs of local senior centers to bolster your business plan and obtain the required documents to get started.

2. Analyze the Competition

For an adult daycare owner, conducting competitive analysis is vital when entering the local market. This involves evaluating nearby facilities in terms of services, quality of care, staff competency, facilities, and reputation.

Some ways to learn about local competitors in the adult day care service industry include:

• The first step is identifying existing brick-and-mortar operators around your targeted location.
• Gather key details on each like capacity, years in business, specific population served, and operating hours.
• Visit their website and social media pages to understand their digital footprint.
• Evaluate their web content, online community engagement efforts, customer reviews, photo galleries, and educational resources for potential visitors and referral sources.
• Identify highly rated competitors with strong community connections.
• Conduct anonymous tours of each facility.
• Gauge firsthand their environment, caregiver interactions, amenities, activities, safety protocols, and transportation offerings.
• Take detailed notes on competitive strengths and weaknesses.
• Talk to locals like geriatric doctors, case workers, and support group leaders to learn about their reputations.
• Scout locations and neighborhoods to spot influential feeder organizations. Identify where competitors get referrals and talent.
• Use insights gathered to shape your positioning.
• Offer niche services like dementia or Alzheimer’s care if lacking locally.
• Improve upon weaknesses like limited hours, qualifications, staff turnover, activities, or dated facilities.
• Leverage relationships and referral channels competitors have not tapped.
• Assign resources to match identified strengths.

Staying abreast of competitors through continued research helps quickly respond to changes after launch. Competitor analysis offers additional information into your potential new business. Monitoring the expertise of other eligible local daycares helps you navigate vital regulations and carve out a place for yourself.

3. Costs to Start an Adult Day Care Business

When starting a successful adult daycare service, substantial upfront investment should be planned for. Knowing what your budget is helps you secure funding options for your own set up. Let’s take a look at the costs your adult daycare may encounter as you operate.

Start-up Costs

• The first major start-up costs in health services involve researching state licensure for adult care facilities. Fees range widely but application and approval expenses often total $2,500+.
• Leasing an appropriately zoned building with adequate space for planned capacity requires a commercial real estate agent and legal fees averaging $3,000+.
• Triple net leases with operating expense responsibilities are common, ranging from $8-20+ per square foot monthly.
• Tenant improvements like handicap access upgrades, kitchen fittings, and durable flooring could require an extra $30,000+.
• Hiring an Administrative Director and Caregiver staff will likely be a new owner’s biggest recurring cost. Competitive wages and benefits packages are vital for attracting trained talent with senior care experience.
• A Director earning $65,000+ and a minimum Caregiver-to-client ratio of at least 1:6 will necessitate a payroll budget of $150,000+ annually.
• Outfitting the care environment is equally important. Transport vehicles, commercial kitchen equipment, and laundry machines carry hefty price tags.
• Key safety gear like lift equipment, secure wandering resident technology, and specialized therapeutic accessories can total $75,000+.
• Comfortable, adaptive furniture is central for participant well-being, averaging $15,000+.

Other key start-up costs include computers/software for intake, health tracking, and family communications ($5,000+), phone systems enabling secure community spaces ($3,000+), marketing collateral to attract referrals ($2,500+), and 6 months of general liability coverage ($6,000+).

Ongoing Costs

• While launch costs are daunting, operating an adult day center involves major recurring overhead. Personnel wages often represent 60%+ of monthly outlays.
• Facility rent/maintenance, food, utilities, supplies, and insurance also strain cash reserves until higher enrollment is achieved.
• Payroll overhead remains most facilities’ largest obligation as specialized staff is required to meet care standards.
• Budgeting $250,000+ yearly enables competitive wages, employer taxes, and performance incentives to retain experienced teams.
• Hiring bonuses and training costs from 25% turnover rates also add expenses.
• Feeding clients breakfast, lunch, and snacks requires an average of $12 per person daily. This nutrition outlay for 30 participants tops $65,000+ annually.
• Medical supplies/prescriptions, activity materials, cleaning products, and office items are similarly all recurring costs.
• State licensure and federal reporting mandate documented policies, regular staff development, and detailed record audits.
• Staying compliant through Admin hours and quality oversight helps ensure safety. Continuing education and professional services engagements to strengthen family trust add $15,000+ in annual expenses.

With revenues from private pay and long-term care insurance driving intake, maintaining consistent quality and community focus is imperative. As reputation strengthens and referrals grow over months and years, profit potential follows. Budgeting realistically for launch and operations costs helps ensure stability.

4. Form a Legal Business Entity

When starting an adult daycare, owners must choose a legal structure. The four main options—sole proprietorship, partnership, corporation, or LLC—impact taxation, liability exposure, and operations. For this hands-on senior service, an LLC balances flexibility with protection.

Sole Proprietorship

A sole proprietorship constitutes the simplest framework. This entails owners using their social security number for tax ID purposes and claiming all profits/losses on personal returns. However, proprietors hold unlimited liability for debts and legal claims, placing personal assets at risk. This exposure makes sole proprietorships ill-advised for adult care centers.

Partnership

Partnerships allow multiple owners to share control and split income via pass-through taxation. But similar to sole proprietors, general partners remain personally liable for obligations like accidents, negligence claims, or lawsuits. For a business with health and safety duties, unchecked liability makes partnerships an insecure option.

Corporation

A corporation protects owners’ assets from institutional debts and judgments. Shareholders risk only their invested capital. Corporations also provide the easiest structure for attracting outside investment, conducting interstate activities, and ultimately offering shares publicly. However extensive recordkeeping, tax filings, and legal compliance make this entity costlier.

Limited Liability Company (LLC)

For most adult daycare owners, an LLC combines liability protections with pass-through taxation and flexible management. LLC status shields personal assets from legal actions and containment risks, unlike sole proprietorships and partnerships. Compared to corporations, compliance demands remain fewer while ownership rules stay negotiable.

Tax-wise, income, and deductions flow through to members’ returns, avoiding double taxation. Overall, the LLC structure strikes an optimal balance of protection, flexibility, and affordability for hands-on elder care businesses.

5. Register Your Business For Taxes

Once your adult day care LLC formation documents are filed, securing federal and state registrations legally enables operating. An Employer Identification Number (EIN) from the IRS and state sales tax ID serve vital functions. Both are free and easily obtainable online.

An EIN essentially functions as a social security number for companies, used for tax purposes and employer-related services. LLCs need an EIN to open business bank accounts, legally pay employees, and report income. Sole proprietors can use SSNs but partnerships/corporations require one.

Applying takes just minutes at IRS.gov . Simply confirm your LLC exists, answer basic identification questions, and provide owner/responsible party details. After submitting, your EIN is immediately issued on screen to save or print.

With EIN in hand, registering with your state taxing authority to collect/remit sales tax is also essential. Failing to charge appropriate sales tax on goods/services sold risks financial penalties.

Each state maintains individual procedures but many let businesses apply online. You’ll submit your EIN, business activities category, ownership structure, and contact information. Sales tax IDs are instantly issued digitally in most areas without delay. Minimal application fees may apply in certain locations.

Displaying both EIN and sales tax ID demonstrates credibility with vendors, partners, and clients. Keeping tax licenses current also complies with IRS requirements to deduct business expenses. Setting up necessary registrations early enables the smooth launching of adult daycare operations.

6. Setup Your Accounting

Managing finances appropriately is critical when launching an adult daycare center. From budgeting adequately to separating expenses to retaining accounting help, fiscal diligence early on enables stability.

Accounting Software

After filing formation documents, one of the first steps should be implementing small business accounting software like QuickBooks . Linking bank/credit card accounts allows transactions to automatically download into pre-configured categories. Income and expenses are seamlessly tracked with minimal manual entry. Payroll, invoicing, and reporting functions are also integrated.

Hire an Accountant

Hiring an accountant remains ideal despite technology assistance. Experienced bookkeeping professionals handle needs like monthly closes, cash flow analysis, reconciliations, depreciation, and sales tax calculations for reasonable hourly fees. Simply gathering year-end tax paperwork for filing annual returns can cost $500-1,500.

Open a Business Bank Account

Maintaining strict separation between business and personal finances remains essential for adult care owners. IRS scrutiny triggers easily from mingling expenses or unclear recordkeeping. Opening dedicated small business checking/savings accounts and utilizing a distinct business credit card simplifies delineation.

Apply for a Business Credit Card

Business cards consider company revenues, not owner credit scores when assigning limits. Building independent commercial credit also enables financing in the company’s name for future needs. Providing EIN, legal documents, and projected financials when applying facilitates approval.

7. Obtain Licenses and Permits

Before welcoming the first participants, adult daycare owners must ensure proper permissions are secured. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

The central clearance needed is state licensing as an adult day services program applicant. Requirements like minimum operating days/hours, facility specs, and staff training levels vary by location but all mandate rigorously vetted health and safety procedures.

Additionally, local municipalities require clearance for new businesses through zoning permits and occupancy certificates. Zoning approval ensures appropriately designated building use and land usage for care facilities within that district. Inspector examinations then confirm on-site compliance with fire, construction, accessibility, and electrical safety measures.

Kitchens serving daily meals mandate meeting health department codes as well. Equipment like commercial refrigerators, dishwashers, and food prep must align with state specifications. Staff servicing food must clearance health screens and food safety training.

Transport vehicles operated by the facility also need validation. Beyond regular maintenance, documented driver background checks, license verifications, and safety protocols must be submitted for review. Annual validation stickers visibly reassure families of diligent oversight.

Facilities offering specialized memory care or medical services often require additional clearances too like managed care certifications. Extra staff training and programming permissions help ensure adequate support resources.

8. Get Business Insurance

Operating an adult day care without proper insurance exposes owners to substantial financial risk. For a business responsible for vulnerable seniors’ well-being, coverage provides vital protection that leaders would be remiss to overlook.

The foremost liability to mitigate is injury claims. Despite close supervision, participant falls or accidents can occur. One lawsuit could quickly bankrupt most small companies without liability coverage. Policies covering up to $2 million in legal judgments and settlements provide prudent shields for owners’ assets.

Equally hazardous are employee claims like harassment allegations or wrongful termination suits. Even unfounded cases rack up tens of thousands in legal costs. Employment practices liability insurance fills this gap to fund legal defenses.

Property risks also loom without policies guarding physical assets. Storm damage, vandalism, or kitchen fires could destroy the facility. Business property insurance covers repair and replacement so operations can resume. Some carriers even pay for temporary relocation if needed during the rebuild.

Guarding the business’ future requires four key steps:

• Inventory assets at risk – building, vehicles, equipment, electronics, data
• Assess risks like regional weather, aging facility, participant mobility issues
• Research specialized coverages that mitigate identified threats
• Compare quotes from highly rated insurers

Protecting years of sweat equity and hard-earned revenue only requires an hour or two upfront selecting tailored policies. Avoiding coverage gaps through a licensed agent’s guidance then lets owners focus on enriching elderly lives rather than worrying over catastrophic liabilities.

9. Create an Office Space

Operating an adult day care center is a hugely involved undertaking. While the prime focus stays on participants and programming, securing office space for administrative needs provides critical infrastructure. Location options balancing convenience, professionalism, and affordability should be thoughtfully weighed.

Home Office

Many new owners initially default to home offices for maximum convenience. However, conducting tours, interviews, and family meetings in personal living spaces risks seeming less established. Prospects may question the seriousness of operations that are fully home-based. Dedicated work areas also simplify separating business and personal worlds to avoid IRS scrutiny.

Since you’re not starting a private home care business , I recommend against making your home your office.

Coworking Office

For under $200 monthly, coworking spaces like WeWork offer professional environments sized for small teams. Accessible conference rooms facilitate meetings and calls without houseguests overhearing. Complimentary amenities like internet, printing, and front desk staffers also elevate credibility when bringing visitors on-site.

Retail Office

Retail space enables customer-facing visibility but can prove costlier. Street access aids marketing efforts to neighborhood seniors but limits privacy for sensitive discussions. Minimum 12-month leases at $25 per square foot also require heavier traffic to justify over shorter-term flex space.

Commercial Office

Once revenue stabilizes, moving into dedicated commercial suites housing all operations in one campus may suit some owners’ quality standards best. Custom buildouts present a polished setting for community events and training too while keeping caregiver teams under one roof. If the budget allows, unified bases inspiring trust and organizational identity prove ideal.

10. Source Your Equipment

Launching an adult day care requires extensive outfitting to serve seniors safely and comfortably. From specialized lift equipment to ergonomic furniture, finding affordable equipment that meets clinical standards takes strategic sourcing across new, used, and rental suppliers.

Purchasing brand-new medical tools like vital signs monitors, blood pressure cuffs, and wound therapy devices ensures peak precision for staff caregivers. Hospital liquidators offer deep discounts on current models while dealer demos carry full warranties at 20-30% savings. Finance programs are also commonly available to ease cash flow impacts for owners.

However, costs can stay manageable through secondhand buys too. Marketplaces like Craigslist , Facebook , and eBay connect local sellers to clear surplus wheelchairs, resident beds, or mobility walkers from facility upgrades. Hands-on inspection before transacting verifies items adequately function while peer sourcing builds community connections.

For short-term needs or replacing aged equipment, renting medical gear also sustains budgets. Online inventory from suppliers like USA Medical Supply enables browsing regional availability of hospital beds, oxygen units, or ambulatory devices by the week/month. Some offer trial periods to assess resident response before long-term leases.

11. Establish Your Brand Assets

Establishing a distinct brand presence elevates an adult daycare’s credibility and memorability within the community. From logo development to web presence, branding signals organizational polish.

Get a Business Phone Number

Claiming a toll-free business line via providers like RingCentral upgrades perceived legitimacy over personal cell numbers. Call routing, voicemail, and built-in texting also systemize communications.

Design a Logo

Creating a visual brand identity starts with a logo evoking organizational spirit. Friendly designs with senior-friendly fonts and accessible color palettes make suitable matches. Sites like Looka offer affordable DIY tools or custom creator connections.

Print Business Cards

Business cards enable effortlessly sharing contact info while reinforcing styling. Cards should display key data like address, phone/email, certifications claimed, and found date. Leading online printer Vistaprint offers durable cardstock options perfect for purse storage.

Buy a Domain Name

Securing a matching domain gives web visibility and email address gravity. Aim for straightforward, professionally relevant URLs purchasable through registrars like Namecheap .

Design a Website

Building out websites fuels digital discovery by families plus organizational transparency. User-friendly site builders like Wix facilitate quick DIY drafting with modern templates. Or specialized developers found on Fiverr affordably create custom, accessibility-focused sites.

12. Join Associations and Groups

Beyond state regulators, a wealth of local networks and peer groups can provide invaluable wisdom for adult daycare entrepreneurs. Tapping this village accelerates success through shared knowledge.

Local Associations

Regionally, longevity-focused business alliances like LeadingAge offer intersections between elder care owners, universities, and affiliated services. Access to trend insights, training discounts, and referral pipelines results from joining.

Local Meetups

Event clearinghouses like Meetup also list lectures, mixers, and conferences relevant to senior services. Building community connections and continuing education there keeps best practices fresh. Exchanging war stories and bouncing ideas off fellow owners creates welcome support too.

Facebook Groups

Industry-specific Facebook Groups open more crowdsourced growth channels. For example, the Adult Daycare Providers Resource Group shares hundreds of peers facing similar opportunities. Getting granular with local offshoot groups around care specialties or regional subtopics produces niche exchanges.

13. How to Market an Adult Day Care Business

Growing an adult daycare relies heavily on effective community outreach. With compassionate service as the core product, spreading awareness of organizational competency and values becomes marketing’s central charge.

Personal Networking and Referrals

Satisfied families and hospital partners serve as the most resonant advocates. Offering referral bonuses, exclusive participant events or public recognitions for big contributors turbocharges word-of-mouth channel development early on.

Digital Marketing

Digital platforms should also be leveraged to cast wider nets for caregiver attention. Dedicated Google/Facebook ads invite targeted trial sign-ups from local zip code searches for terms like “dementia care options near me”. Promoted social posts boost caregiver testimonials.

Additional digital channels such as:

• Optimizing Google Business Profile with photos, offerings details, and prominent website linkage
• Launching an email newsletter with care tips, new programming highlights, and upcoming community seminars
• Posting weekly programming recap videos to TikTok and Instagram Reels noting recent activities
• Guest blog pitching to senior-focused outlets detailing specialty service offerings
• Partnering with multi-center review sites like Caring to share family endorsements

Traditional Marketing

Traditional opportunities to connect with referral sources persist as well:

• Hospital, clinic, and skilled nursing reps visit marketing with brochures
• Local community center, church, and library talks invite prospective tour sign-ups
• Care manager association meeting exhibits attach care team faces to services
• Chamber of Commerce sponsored mixers to meet business neighbors

With touchpoints spanning both digital and tangible channels, conveying care quality and trustworthiness fuels stabilizing enrollment and revenue.

14. Focus on the Customer

For adult day cares, delivering compassionate customer service represents the core product families are purchasing. Caregivers entrust owners to enrich loved ones’ physical health, cognitive activity, and social connections when they cannot. Some ways to improve customer focus in health services include:

• Staff should exude genuine warmth while assisting attendees.
• Remembering personal details about grandchildren or nostalgic songs builds bonds bolstering engagement.
• Care teams can further customize festivities to individual interests and mobility levels so no one feels excluded.
• Even simple assistance like timely toileting helps maintain dignity.
• Extending heartfelt support to caregivers also earns loyalty.
• Listening empathetically as elders transition from independent living builds trust in an owner’s guidance.
• Checking in consistently with usage feedback makes families feel heard.
• Little customer experience touches like sending handwritten birthday cards to registered seniors nourish community ties.

When personnel exude selfless care rooted in understanding people’s often difficult journey, positive word-of-mouth spreads. Local hospitals instinctively know where to guide new dementia diagnoses. Caseworker appreciation drives recurring contract renewals.

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Adult Day Care Business Plan Template

Written by Dave Lavinsky

Adult Day Care Business Plan

Below is our adult day care business plan template and sample plan created using what we consider the best free AI business plan generator.

I. Executive Summary

Company overview.

Welcome to Golden Years Haven, an Adult Day Care pioneer based in the heart of Ankeny, IA. Established to bridge the community gap in high-quality adult day care services, our dedication to exceptional care and support sets us apart. We offer a wide range of personalized services including health monitoring, medical care, personal care, social and recreational activities, nutritious meals, and therapeutic services. Our aim is to create a nurturing, engaging environment for adults in their golden years, ensuring their well-being and satisfaction. Golden Years Haven is strategically located in Ankeny, IA, offering accessibility and convenience to our local community, making us the premier choice for adult day care services.

Success Factors

Golden Years Haven’s foundation is built on the extensive experience and vision of our founder, aiming to establish a superior adult day care service. Our commitment to excellence in personal care, advanced health monitoring, and a broad range of services sets us apart from competitors and drives our success. Since our inception on January 4th, 2024, significant milestones have been achieved, including the development of a unique logo and company name, and securing a prime, accessible location. These accomplishments mark the beginning of our journey to becoming the leading adult day care provider in Ankeny, IA.

Industry Analysis

The Adult Day Care industry in the United States, with an estimated market size of $9.2 billion in 2021, is on a growth trajectory due to an aging population and increased demand for long-term care services. Golden Years Haven is well-positioned within this growing sector by offering person-centered care and holistic wellness approaches, catering to the evolving needs of our clients. We focus on promoting independence, health, and overall well-being, distinguishing us in the market. Additionally, the rising need for respite care for family caregivers presents a significant opportunity for growth, as we provide flexible and tailored care programs in Ankeny, IA.

Customer Analysis

Our target clients are elderly individuals residing with their families who require daytime supervision and activities to enhance their quality of life. This includes those with cognitive impairments, chronic conditions, or physical limitations. We also cater to seniors seeking social interaction and mental stimulation, as well as veterans requiring specialized care and support. Our services offer respite for family caregivers, allowing them to work or attend to personal matters with peace of mind. By addressing the needs of both seniors and their families, we aim to foster a holistic support system within the community.

Competitive Analysis

Golden Years Haven competes with Independence Village of Ankeny, Walnut Ridge, and Kennybrook Village, each offering a range of services from assisted living to memory care. Our personalized care and comprehensive service range, including advanced health monitoring and medical care, set us apart. Our highly trained staff ensure individualized attention, enhancing client well-being and providing peace of mind to their families. This dedication to quality and extensive service offerings positions Golden Years Haven as a leader in the adult day care industry in Ankeny, IA.

Marketing Plan

Golden Years Haven offers a comprehensive range of services at competitive prices, from health monitoring and personal care to social activities and therapeutic services. Our marketing strategy includes a robust online presence, social media engagement, targeted advertising, email campaigns, community engagement, and traditional marketing methods. We aim to build awareness, attract new clients, and establish a strong community presence, ensuring Golden Years Haven remains a trusted and well-known provider of adult day care services in Ankeny, IA.

Operations Plan

Golden Years Haven’s operational processes include client care, staff management, client and family communication, health and safety compliance, financial management, and facility maintenance. Key milestones include securing funding, obtaining necessary licenses, preparing the facility, hiring and training staff, launching targeted marketing campaigns, and reaching initial client enrollment goals. These steps are crucial for ensuring a smooth launch and the long-term success and profitability of Golden Years Haven.

Management Team

Under the leadership of CEO Adeline Rodriguez, Golden Years Haven benefits from a wealth of experience in adult day care management. Adeline’s proven track record and operational skills ensure the strategic direction and day-to-day success of our facility. Her dedication to creating a nurturing environment for elderly care makes her an invaluable asset to Golden Years Haven and positions us for future growth and success.

Financial Plan

To achieve our growth goals, Golden Years Haven requires $635,000 in funding. This investment will be allocated to capital and non-capital expenditures such as location buildout, equipment, initial rent, staff salaries, marketing, and insurance. These funds are essential for establishing the facility, ensuring a successful launch, and maintaining operational viability as we work towards becoming the leading adult day care provider in Ankeny, IA.

Below is an overview of our expected financial performance over the next five years:

II. Company Overview

Golden Years Haven is a pioneering Adult Day Care situated in the heart of Ankeny, IA. As a fresh addition to the community, we pride ourselves on being a local establishment dedicated to enriching the lives of adults during their golden years. Recognizing the lack of high-quality adult day care options in the area, we’ve stepped in to fill this vital gap with a comprehensive range of services designed to cater to the diverse needs of our clientele.

At Golden Years Haven, we offer an extensive array of products and services aimed at ensuring the holistic well-being of our guests. Key among these services is Health Monitoring and Medical Care, designed to provide peace of mind to our guests and their families by ensuring that health concerns are promptly and professionally addressed. Personal Care Services are another cornerstone of our offerings, ensuring that individual needs are met with dignity and respect. Additionally, we believe in the importance of Social and Recreational Activities in fostering a vibrant community atmosphere where guests can form meaningful connections and engage in stimulating activities. Nutrition and Meals are also a critical part of our services, with a focus on providing balanced and nutritious meals that cater to the dietary needs and preferences of our guests. Lastly, our Therapeutic Services are tailored to support the physical and mental well-being of our guests, offering everything from physical therapy to cognitive stimulation exercises.

Located in Ankeny, IA, Golden Years Haven is perfectly positioned to serve the local community, providing a much-needed service in a welcoming and comfortable environment. Our commitment to excellence is driven by a deep understanding of the needs of our guests and a dedication to exceeding their expectations.

Our confidence in the success of Golden Years Haven is rooted in several key factors. Firstly, our founder brings invaluable experience from previously running a successful adult day care, ensuring that we have the knowledge and expertise to offer a superior service. Moreover, our commitment to offering better personal care services than our competitors, combined with our comprehensive range of services, sets us apart in the marketplace. Health monitoring and medical care, in particular, highlight our dedication to the well-being of our guests.

Since our inception on January 4th, 2024, as a Sole Proprietorship, we have achieved several significant milestones. We’ve developed a unique and recognizable company name and logo, reflecting our mission and values. Furthermore, we’ve secured a prime location that not only meets our operational needs but also makes our services easily accessible to our target clientele. These accomplishments to date lay a solid foundation for our future growth and success.

In conclusion, Golden Years Have is not just an Adult Day Care; it is a haven where the golden years of our guests are celebrated and cherished. Through our comprehensive range of services, experienced leadership, and commitment to excellence, we are poised to become a cornerstone of the community in Ankeny, IA.

III. Industry Analysis

The Adult Day Care industry in the United States is currently estimated to be worth around $7.5 billion annually. This figure is expected to grow steadily over the next few years as the population continues to age and the demand for these services increases. With more and more families looking for quality care options for their elderly loved ones, the market for Adult Day Care is projected to see significant growth in the coming years.

One of the key trends in the Adult Day Care industry is the shift towards more personalized and specialized care services. Providers are increasingly offering tailored programs to meet the unique needs and preferences of their clients, including specialized programs for individuals with Alzheimer’s or dementia. This trend bodes well for Golden Years Haven, as a new Adult Day Care facility in Ankeny, IA, that prides itself on providing individualized care and attention to each of its clients.

Another trend in the Adult Day Care industry is the emphasis on creating a welcoming and engaging environment for clients. Many facilities are now offering a wide range of activities and amenities to keep clients active and stimulated throughout the day. Golden Years Haven is well positioned to capitalize on this trend with its spacious facility, beautiful outdoor gardens, and diverse activity programs designed to cater to the interests and abilities of each client.

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target senior citizens in Ankeny, IA, particularly those who require daytime supervision and engagement while their primary caregivers are at work. These customers will benefit from our professional care services, recreational activities, and social interaction opportunities offered in a safe environment. Our services will provide peace of mind to families knowing their loved ones are in capable hands.

We will also focus on adults with disabilities who need structured programs during the day. These individuals will find our activities and care routines beneficial for maintaining their daily life skills and enhancing their overall well-being. By providing specialized care, we will improve their quality of life and support their families.

Caregivers who need temporary relief or respite will be another target segment. We will offer flexible scheduling options to accommodate those who require short-term care solutions for their loved ones. This will allow caregivers to maintain a balanced life while ensuring their family members receive the attention and care they need.

Local residents seeking community engagement for their elderly relatives will find our services valuable. By integrating social and recreational activities into our care programs, we will foster a sense of belonging and community for our participants. This will be particularly beneficial for seniors who may otherwise experience isolation and loneliness.

Customer Needs

Golden Years Haven provides high quality personal care services to clients who desire this. Clients can expect assistance with daily activities, such as bathing, grooming, and medication management. This ensures that their physical health needs are met in a dignified and respectful manner.

Beyond personal care, clients benefit from social interaction and community engagement. Activities and events are designed to stimulate mental and emotional well-being, reducing feelings of isolation. This social aspect fosters a sense of belonging and enhances overall quality of life.

Clients also have access to nutritious meals tailored to their dietary needs and preferences. This addresses the need for balanced nutrition, which is crucial for maintaining energy levels and overall health. Meal planning and preparation are handled by trained staff, ensuring safety and quality.

Safety and security are paramount, with the facility being equipped with modern safety features and staffed by trained professionals. This reassures clients and their families that they are in a secure environment. Additionally, transportation services are available, making it easier for clients to attend the day care and participate in external activities.

V. Competitive Analysis

Direct competitors.

Golden Years Haven’s competitors include the following companies:

Independence Village of Ankeny

Independence Village of Ankeny offers a variety of senior living options including independent living, assisted living, and memory care. Their price points vary based on the level of care and type of accommodation, generally ranging from $3,000 to $6,000 per month.

They generate substantial revenue, primarily from long-term residents and a range of supplemental services. Located in Ankeny, IA, they serve primarily the local community and nearby regions.

Their key customer segments include seniors who require varying levels of care, from minimal assistance to intensive memory care. Key strengths include a comprehensive range of services and a strong reputation in the local community.

However, their high price points and large facility size may be considered weaknesses, limiting accessibility for some potential clients.

Walnut Ridge

Walnut Ridge provides independent living, assisted living, memory care, and skilled nursing services. Pricing can range from $2,500 to $5,500 per month depending on the specific services and accommodations.

They have a steady revenue stream from their diverse service offerings and long-term care options. Walnut Ridge is located in Clive, IA, and primarily serves residents of Clive and surrounding areas.

Their customer segments include elderly individuals and families seeking comprehensive senior care services. Key strengths are their wide array of care options and established presence in the community.

Weaknesses include high costs and the potential for a more institutional feel, which might deter some seniors looking for a more intimate setting.

Kennybrook Village

Kennybrook Village offers independent living, assisted living, memory care, and rehabilitation services. Their price points are competitive, ranging from $2,800 to $5,800 per month based on services and room types.

Revenue is driven by a mix of residential fees and additional care services. Located in Grimes, IA, Kennybrook Village serves Grimes and the broader regional community.

Customer segments include seniors needing various levels of care and rehabilitation services. Key strengths include a strong focus on rehabilitation services and a well-rounded care program.

Weaknesses may involve the facility’s location, which could be less convenient for some Ankeny residents, and potentially higher costs for specialized services.

Competitive Advantages

At Golden Years Haven, our commitment to offering superior personal care services sets us apart from our competition. With a team of highly trained and compassionate staff, we ensure that each of our clients receives individualized attention tailored to their specific needs. This personalized approach not only enhances the well-being of our clients but also provides peace of mind to their families, knowing that their loved ones are in capable and caring hands. Our dedication to maintaining high standards of care helps us build trust and a strong reputation within the community.

In addition to our exceptional personal care services, Golden Years Haven stands out by offering a comprehensive range of services that include health monitoring and medical care. These additional services are designed to address the holistic needs of our clients, ensuring that they receive not just social and recreational support but also essential medical attention. Our state-of-the-art facilities and advanced health monitoring systems allow us to promptly identify and address any health concerns, thereby preventing potential complications. This multifaceted approach to adult day care ensures that our clients lead healthier, happier lives, making us the preferred choice for adult day care services in the area. Our focus on quality, combined with our extensive service offerings, positions Golden Years Haven as a leader in the industry.

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

Golden Years Haven offers a comprehensive suite of products and services designed to cater to the diverse needs of its clientele. Health Monitoring and Medical Care is one of the primary services provided. This includes regular health check-ups, medication management, and coordination with healthcare providers. The average price for this service is approximately $75 per day.

Personal Care Services are another essential offering. These services encompass assistance with activities of daily living such as bathing, grooming, and dressing. The skilled staff ensures that clients receive dignified and respectful care. The average cost for personal care services is about $60 per day.

Social and Recreational Activities are integral to the well-being of the clients. Golden Years Haven organizes various activities such as arts and crafts, music therapy, and group outings. These activities aim to foster social interaction and mental stimulation, enhancing the overall quality of life. The average price for participating in these activities is $40 per day.

Nutrition and Meals are crucial for maintaining the health of the clients. The facility provides balanced and nutritious meals tailored to the dietary needs of each individual. This service ensures that clients receive meals that are not only healthy but also enjoyable. The average cost for nutrition and meals is around $30 per day.

Therapeutic Services are also available to address specific health concerns. These services include physical therapy, occupational therapy, and speech therapy. Licensed therapists work closely with clients to develop personalized treatment plans aimed at improving mobility, functionality, and communication skills. The average price for therapeutic services is $85 per session.

By offering these diverse services, Golden Years Haven aims to provide a supportive and enriching environment for its clients, ensuring their physical, mental, and emotional well-being.

Promotions Plan

At Golden Years Haven, our goal is to attract and retain customers through a variety of effective promotional methods. We employ a robust online marketing strategy that includes a user-friendly website optimized for search engines to ensure potential clients can easily find us when searching for adult day care services in Ankeny, IA. Our website features detailed information about our services, client testimonials, and a blog that provides valuable insights and tips on senior care.

In addition to our website, we actively engage with our audience through social media platforms such as Facebook, Instagram, and LinkedIn. These platforms allow us to share updates, success stories, and upcoming events, while also providing a space for our community to interact with us and each other. We also utilize targeted online advertising through Google Ads and social media ads to reach potential clients who may not yet be aware of our services.

Our email marketing campaigns help us stay connected with both current clients and prospects. We regularly send out newsletters that highlight our programs, share client success stories, and provide educational content on topics relevant to adult day care. This helps to keep our audience informed and engaged, ensuring that we remain top-of-mind.

We also believe in the power of community engagement and networking. We regularly participate in local events, health fairs, and senior expos to increase our visibility and connect with potential clients and their families. By building relationships with local healthcare providers, senior centers, and community organizations, we create a network of referrals that help drive new clients to our services.

Word-of-mouth marketing is another critical component of our promotional strategy. We encourage satisfied clients and their families to share their positive experiences with friends, family, and their broader community. To facilitate this, we provide referral incentives to clients who bring in new customers.

Lastly, we understand the importance of traditional marketing methods. We distribute brochures and flyers in strategic locations such as doctor’s offices, libraries, and community centers. We also place advertisements in local newspapers and magazines that cater to our target audience.

By combining these various promotional methods, we ensure that Golden Years Haven remains a trusted and well-known provider of adult day care services in Ankeny, IA, attracting and retaining a loyal customer base.

VII. Operations Plan

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of Golden Years Haven, there are several key day-to-day operational processes that we will perform:

• Provide personalized care plans tailored to the individual needs of each client.
• Offer nutritious meals and snacks, ensuring dietary needs and preferences are met.
• Conduct daily health and wellness checks to monitor clients’ physical and mental conditions.
• Organize engaging activities and social events to promote socialization and mental stimulation.
• Maintain a clean and safe environment by performing regular cleaning and sanitation tasks.
• Ensure staff are properly trained and provide ongoing professional development opportunities.
• Communicate regularly with clients’ families to update them on their loved ones’ well-being and progress.
• Manage scheduling and transportation for clients, ensuring timely pickups and drop-offs.
• Handle administrative tasks such as billing, payroll, and record-keeping accurately and efficiently.
• Monitor and manage inventory of supplies and equipment to ensure the facility is well-stocked.
• Implement and uphold all regulatory and compliance requirements to maintain licensing and accreditation.
• Foster a supportive and positive work environment to retain high-quality staff and encourage team cohesion.
• Engage with the local community to build relationships and promote the services offered by Golden Years Haven.
• Gather and analyze client feedback to continuously improve service offerings and customer satisfaction.
• Develop and execute marketing strategies to attract new clients and grow the business.

Golden Years Haven expects to complete the following milestones in the coming months in order to ensure its success:

• Secure Location:  Identify and lease a suitable facility that meets state regulations and is accessible to the target demographic.
• Obtain Permits and Licenses:  Acquire all necessary state and local permits and licenses required to operate an adult day care center.
• Facility Renovation and Setup:  Complete any necessary renovations to meet health and safety standards, and furnish the facility with appropriate equipment and amenities.
• Hire and Train Staff:  Recruit qualified staff including caregivers, nurses, and administrative personnel, and provide comprehensive training to ensure high-quality care and compliance with regulations.
• Launch Adult Day Care:  Officially open Golden Years Haven to clients, ensuring all systems and processes are operational from day one.
• Achieve Initial Enrollment Goal:  Enroll a minimum of 20 clients within the first three months of operation to establish a steady client base.
• Develop Community Partnerships:  Establish relationships with local healthcare providers, senior living communities, and other relevant organizations to build referral networks.
• Implement Marketing Campaign:  Launch a targeted marketing campaign to raise awareness and attract new clients, utilizing both online and offline channels.
• Reach $15,000/Month in Revenue:  Achieve and sustain a monthly revenue of $15,000 within the first 12 months of operation to ensure financial stability.
• Client Satisfaction and Feedback Loop:  Regularly collect and analyze feedback from clients and their families to continuously improve services and maintain high satisfaction levels.

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

Golden Years Haven management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Adeline Rodriguez, CEO

Adeline Rodriguez  has a proven track record of success, having previously run a highly successful adult day care facility. Her extensive experience in managing day-to-day operations, combined with her deep understanding of the needs of elderly populations, positions her ideally to lead Golden Years Haven. Adeline’s strategic vision and leadership skills ensure that the organization will continue to thrive and provide exceptional care for its residents.

IX. Financial Plan

Funding requirements/use of funds.

To accomplish our growth goals, Golden Years Haven needs $635,000 in funding. Key uses of this funding will be as follows:

Financial Projections

5 Year Annual Income Statement

5 year annual balance sheet, 5 year annual cash flow statement.

Our work is reader-supported, meaning that we may earn a commission from the products and services mentioned.

How To Start An Adult Day Care Center In 2023

• Last Updated: January 16, 2024
• By: StartUp 101

Advertising Disclosure

If you’ve ever cared for a loved one with a physical or mental health condition, you know how demanding the job can be. Caregiving can alter their lives and be emotionally draining for families with adult family members who need continuous care or supervision. That’s where adult day care centers come in. These businesses are gaining in popularity. By opening a daycare of your own, you can help relieve families of their caregiving duties while also improving adult clients’ quality of life. It’s a rewarding business venture to explore and, with the increased need for senior care, it could be a profitable venture, too.

Business Overview

Adult day cares serve multiple purposes, and with the increasing senior population in the United States, these businesses are growing in popularity. Day care centers provide adults with a safe place to go during the day. These centers may offer a variety of services, but generally, a day’s activities will include some sort of exercise, a chance for participants to interact socially, physical or speech therapy, and mental interaction, too. Centers may assist adults with personal care as needed, and they may provide nutritious meals or snacks tailored to each attendee’s dietary needs. Transportation can be a challenge for adults, so many day cares offer transportation services, too.

Adult day cares may also specialize in a certain field. Some have a health basis, focusing on therapeutic services. Others may specialize in providing care to adults with specific conditions, like those who are deaf or hard of hearing or those with Alzheimer’s or dementia.

Day cares provide their participants with many benefits, and they can help combat some of the isolation and loneliness that adults may feel when living at home. At the same time, day cares give their attendees’ caregivers a much-needed break, helping to transfer some of the caregiving burdens off of family members during the day.

Industry Summary

According to IBIS World, from 2018 through 2023, the  adult day care industry  experienced a .9 percent annual growth, with a 2.8 percent jump for 2023. There are currently 36,362 businesses and in 2023, the industry is expected to bring in $7 billion in total revenue.

Industry Trends

Future growth of the adult daycare center industry will be based on the growing number of people who are getting older and will require community-based solutions such as those offered by daycare centers. The aging population means more adult care services are needed. Also, since many adults cannot afford the expensive cost of nursing homes and assisted living centers, driving them to seek alternative options like an adult day care center.

Additionally, according to Home Health Care News, as  more seniors wish to remain in their homes  as they age, there’s an increased demand for these day care services. The number of day care businesses has increased, but the industry is still largely fragmented.

Traditionally, adult day care facilities were largely non-profit operations, but that is now shifting more toward the for-profit model; you’ll find both models in operation today.

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Checklist To Start An Adult Day Care Center

Starting an adult day care service can be an incredibly rewarding experience, but it’s important to make sure you’re prepared for the challenges ahead. Use this checklist to help get your business off on the right foot.

Step 1:  Assess the Market

Starting an adult day care business requires a thoughtful assessment of market potential and customer base. Here are some ways you can research whether there’s a market for an adult day care business:

Census Data : Look at the demographics in your desired area. An older population might mean there is a higher demand for adult day care services. U.S. Census Bureau’s American FactFinder is a valuable resource for demographic data.

Local Government and Community Resources : Reach out to local government agencies or social service departments. They may be able to provide you with statistics about the local population’s needs. Similarly, community centers and hospitals may have data or at least anecdotal evidence about the need for adult day care.

Competitor Analysis : Identify the number and type of existing adult day care centers in your desired area. Look at the services they offer, their pricing, and their occupancy levels if available. This will help you gauge the saturation of the market.

Community Surveys : Conduct a community survey. This will give you firsthand information about the demand and need for an adult day care center. The survey can ask questions about potential users’ needs and wants, preferred pricing, and ideal location.

Professional Organizations : Join professional organizations such as the National Adult Day Services Association (NADSA) or the American Association of Caregiving Youth . They often provide research, networking opportunities, and other resources that can help you understand the market.

Healthcare Providers : Connect with local physicians, nurses, social workers, and other healthcare professionals who work with the elderly or disabled adults. They can provide insights into the potential need for such services in your area.

Area Agencies on Aging (AAA) : Reach out to your local AAA. They can provide useful data on the aging population in your area, as well as any existing services that cater to this demographic.

Online Research : Use online tools like Google Trends to analyze the search volume for terms related to adult day care in your area. This can give you an idea of how many people are actively looking for such services.

Real Estate Agents : Local real estate agents may have insights into areas with a higher concentration of senior citizens, which could indicate a potential market for your services.

Remember, market research is only the first step. It’s also important to develop a detailed business plan, secure necessary licenses and certifications, and build a strong team.

Step 2:  Write a Business Plan

After coming up with the idea, the next step in starting your business should be to write a business plan. A business plan is useful because it forces you to explain the types of services that will be offered and to think through all aspects of your operations, including staffing, licensing, marketing, and facility needs. In addition, if you are looking for funding, lenders and investors typically require you to have a business plan.

Related: How to write a business plan

Step 3: Search for a Location

Now that we have a good idea that a market exists and the business plan is underway, it’s time to find a suitable adult day care facility.

Adult day cares need very specific types of spaces, and finding or modifying an appropriate space can take both time and money. Handicap accessibility, multiple bathrooms, and the presence of a kitchen space are all necessary. The facility needs to be large enough to accommodate the number of clients you hope to serve, with room for different activities and services. A location that is already compliant with the Americans with Disabilities Act (ADA) can save you a lot of time and money in renovations.

Also, it’s important to verify your finalize is zoned right. Not all areas are zoned for adult day care businesses, so before committing to a location, ensure it is zoned appropriately and understand any restrictions.

It’s also important for the perceived safety of the clients to choose an area that’s safe and quiet, away from heavy traffic or other hazards. Factors like walkability, lighting, and general neighborhood safety can be important when someone is deciding on a facility.

When deciding on your facility, there will be renovation costs to consider. Renovations can significantly add to your start-up costs. If you’re considering a location that requires a lot of renovation, it’s crucial to get an accurate estimate of these costs before making a decision.

Initially, you may do a rough assessment of the property to identify any structural issues, electrical problems, plumbing concerns, etc. Once you are down to the final choice, be sure to have a commercial contractor or a builder with experience in renovating for accessibility and other specific needs of an adult day care center can provide an accurate estimate of renovation costs.

When estimating renovations, remember to factor in the following:

ADA Compliance: If the property isn’t already ADA compliant, modifications may need to be made for accessibility, including ramps, wider doorways, accessible restrooms, etc.

Safety Improvements: You may need to install emergency exits, safety rails, non-slip flooring, fire safety systems, etc.

Space Modifications: You might need to create specific areas like a quiet rest area, activity rooms, dining area, or therapy rooms.

Outdoor Areas: If you plan to have outdoor activities, you may need to factor in landscaping, fencing, and outdoor safety improvements.

Decor and Furnishings: The cost of paint, carpet, furniture, and other decor should also be included in your renovation costs.

Remember, a more expensive location that needs little renovation could end up costing less than a cheaper location that needs extensive work. Always consider the total cost – purchase/lease plus renovations – when comparing potential locations.

Step 4:  Secure Funding

Coming up with a good business idea and having the skills to run it are one thing, but getting the funding to start an adult day care is another. Funding to start an adult day care can be difficult as many start-up expenses go towards remodeling and working capital for wages, which don’t have collateral value. In order to get a loan, the borrower(s) will need to have good credit and be able to personally invest 15-25% towards the total start-up costs.

Some common ways to obtain funding for a business include personal savings, loans from friends or family, bank loans, Small Business Administration (SBA) loan guarantees, and investors.

It’s normally rare to find grants for a business, but there may be federal, state, and private grants available for businesses serving the elderly or disabled. For instance, the Administration for Community Living (ACL) offers grants that might be applicable. In some cases, setting up your adult day care as a nonprofit organization may open up additional funding opportunities, including more grants and donations.

Related:  Finding the money to start a business

Step 5: Register for Business Licenses and Permits

The next step in starting your adult day care business is to make sure it’s properly registered and legal to operate. It’s important to note, however, that the exact process can vary from state to state, so you’ll need to check the specific requirements for your location. Here’s a general guide to the key registrations:

Form a Business Structure: The first thing you’ll need to decide is what business structure is best for your business. This could be a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. Each of these structures has different implications for liability, taxes, and administrative complexity. Many small business owners opt for an LLC because it provides personal liability protection and has fewer administrative requirements than a corporation.

Related: Comparison of business structures

Register Your Business Name: After registering the business structure, you may need to register your business name. This process will vary depending on what business structure you pick. Sole proprietors and partnerships will often be required to register a “Doing Business As” (DBA), while corporations and LLCs register with the state.

Related: Tips and ideas for naming an adult day care

During this time, it’s also a good idea to check if the name you want is available as a web domain, even if you’re not ready to set up a website yet.

Related: Finding a domain name for your business

Obtain Business Licenses and Permits: Because there isn’t an official federal definition of what adult day care consists of, different states regulate this industry differently. Some states have no licensure, while others have licensure and certification requirements. Some states also require a day care have a certain number of caretakers for every day care participant; 1:6 and 1:8 ratios are common requirements.

To start researching requirements in your state, check with your state’s Department of Human Services to learn about the specific state requirements. The U.S. Department of Health and Human Services has compiled a helpful document entitled  Regulatory Review of Adult Day Services . In general, you’ll typically need to pass health and safety inspections, have a certain amount of space per client, and maintain certain staff-client ratios. Staff may also need to pass background checks and have specific training or certifications.

Also, if you plan to provide any health-related services, you may need to comply with additional regulations, such as the Health Insurance Portability and Accountability Act (HIPAA).

In addition, there are general business registrations that an adult day care might need, such as a business license, Employer Identification Number (EIN), and Occupancy Permit, among others.

Related: State guides for business licensing

Step 6:  Acquire the Property

After securing funding and acquiring a location for an adult day care center, the next step to prepare the location for opening:

Renovations and Setup : The facility will need to be renovated and set up to accommodate the specific needs of an adult day care. This might include installing wheelchair ramps and handrails, setting up a kitchen and dining area, creating rest and activity spaces, and ensuring there are ample restroom facilities.

Safety Measures : Safety is paramount in an adult day care setting. All areas of the facility should be free of hazards. This includes securing rugs and carpets to prevent trips and falls, removing any potential choking hazards, and ensuring the facility is well lit. Emergency exits should be clearly marked, and fire extinguishers and first aid kits should be readily accessible.

Regulatory Compliance : Once renovations are complete, the facility will need to pass health and safety inspections. Your local health department or relevant regulatory body will provide you with a list of requirements.

Furnishing : Furnish the facility with comfortable and functional furniture. Ensure there are enough seats, tables, and rest areas for all clients.

Equipment : Depending on the services you offer, you may need to acquire certain equipment. This could include medical equipment, kitchen appliances, entertainment devices, etc.

Signage : Install clear signage, both inside and outside the facility. This can help make the environment more navigable and welcoming for your clients and their families.

Step 7:  Get your Marketing Plan in Place

Marketing an adult day care business effectively requires a diverse and multi-pronged approach that emphasizes the unique value proposition of your services while reaching out directly to your target audience.

To start, establish a strong online presence through a professional website that clearly communicates the services you offer, your qualifications, and your commitment to caring for your clients. Including testimonials and success stories can greatly enhance your credibility.

Also, utilize social media platforms to share useful content, interact with your community, and highlight positive aspects of your day care. Platforms like Facebook are particularly effective due to the demographic they cater to.

Next, consider traditional marketing strategies like print and local media advertisements, brochures, and flyers. Host open houses and community events at your facility to allow potential clients and their families to experience your services firsthand.

Partnerships are also vital. Collaborate with local hospitals, clinics, senior centers, churches, and community organizations that can refer potential clients to your center.

Last, remember the power of word-of-mouth marketing. Provide excellent service and encourage satisfied clients and their families to recommend your facility to others. Offering a referral program can incentivize this process.

There’s still a lot of confusion and lack of awareness around adult day center availability and benefits, so business owners need to be prepared to market the business and educate local medical service providers, assisted living centers, senior centers, and family caregivers. While adult day cares are gaining in popularity, they’re still somewhat limited in their availability. While this means that businesses will need to work harder to establish themselves, it also works as an advantage. A new adult day care could be the first in the area, establishing itself as a reputable, quality facility before others develop in the area.

Each of these strategies can contribute significantly to building your client base and positioning your adult day care center as a trusted and respected resource within your community.

Related:  Low-cost ideas to market a new business

Step 8: Hire & Train Employees

Hiring the right staff is crucial for the success of an adult day care business, as they play a significant role in ensuring the health, safety, and overall well-being of the clients. They’re also the ones who create a warm and nurturing environment, making the facility a ‘home away from home’ for many adults.

Your team will likely be composed of various roles, including adult day care directors, nurses or nursing assistants, program coordinators, activity leaders, and administrative staff.

The salary of your staff will depend on their role, experience, and location. On average, adult day care directors may earn between $40,000 and $60,000 per year, while registered nurses can earn from $50,000 to $80,000 annually. Nursing assistants may earn around $20,000 to $30,000 annually. Activity leaders and administrative staff may also fall within a similar range, depending on their responsibilities and experience. Please note these are broad averages and actual salaries can vary.

When hiring for an adult day care center, consider these specific tips:

Skills and Qualifications : Different roles require different qualifications. For example, any medical staff should have appropriate licensure, while activity leaders should ideally have experience in recreation or social work. Ensure all employees meet the state’s training requirements for their role.

Experience in Elder Care : Experience working with seniors or disabled adults is crucial, as this population has unique needs and challenges.

Background Checks : Given the vulnerable population you’re serving, thorough background checks are essential to ensure the safety and trustworthiness of your staff.

Personality Traits : Look for individuals who are patient, empathetic, and have excellent communication skills. Working in an adult day care center can be challenging, and these traits are key to providing high-quality care.

Training : Once you’ve hired your staff, it’s important to provide them with thorough training. This should cover your policies and procedures, emergency protocols, client handling, and any specific care techniques they’ll need to know.

Continuing Education : Encourage and facilitate continuing education for your staff. This could be through workshops, courses, or attending relevant conferences. Keeping up to date with the latest best practices in adult care is crucial for providing the best possible care.

Remember, your staff is the face of your adult day care business, and their skills and demeanor will significantly impact your reputation and the quality of care you provide.

Related:  Hiring your first employee

Step 9: Prepare to Launch

Starting an adult day care business is a fulfilling venture that requires thorough preparation and attention to detail. Beyond all the previously discussed steps, there are a few other critical aspects you must consider to ensure smooth operations and financial management.

Insurance : Insurance is essential in this business. You’ll need to secure general liability insurance, worker’s compensation, and property insurance at the least. Consider professional liability insurance too, especially if your center will be providing medical or therapeutic services.

Bookkeeping : Proper bookkeeping is vital for financial management and tax purposes. You can use software like Wave Accounting (FREE) or Quickbooks , or hire a professional bookkeeper or accountant. Keep track of all income and expenses to understand your financial health and simplify tax filing.

Related:  Setting up the accounting for your business

Bank account and credit cards: Open a business bank account to separate your personal and business finances. This makes bookkeeping easier and can protect your personal assets. Also, consider getting a business credit card to help manage expenses and potentially earn rewards.

Payment processing : You’ll need a reliable way to accept payments. Many businesses today accept credit cards, which require a merchant services account. Companies like Square or Stripe make it relatively simple to accept card payments, even from mobile devices.

Management software: To keep up with patient care and industry regulations, using adult day care software can help with the management of your center.

Policies and procedures: Draft clear policies and procedures for all aspects of your business, from client intake to handling medical emergencies. This ensures consistency and can protect you legally.

Network: Building relationships with other businesses, community organizations, and healthcare providers can help increase your referrals and make it easier to coordinate care for your clients.

While these are some general guidelines, the needs of every adult day care center will be different based on factors like location, size, and the specific services provided. Therefore, it’s always a good idea to consult with professionals in the field, like a business advisor or lawyer, to ensure all bases are covered. Starting an adult day care business is a significant undertaking, but with careful planning and a commitment to providing quality care, it can be a deeply rewarding endeavor.

Adult Day Care Startup FAQs

How much does it cost to start an adult day care.

Starting an adult day care business requires a significant initial investment. However, the exact cost can vary significantly depending on the size of the center, its location, the range of services provided, and other factors. Here are some of the primary costs you’ll need to consider:

Property Acquisition/Lease : Whether you buy or lease a property, this will likely be one of your largest expenses. The cost can vary greatly depending on your location and the size and condition of the property.

Renovations and Setup : The property will need to be renovated and furnished to serve as an adult day care center. This could include installing ramps and handrails, setting up a kitchen and dining area, creating rest and activity spaces, and ensuring there are ample restroom facilities. The cost of renovations will depend on the current state of the property and the specific modifications needed.

Equipment : You’ll need to purchase various equipment, including medical equipment (if providing health-related services), kitchen appliances, furniture, office equipment, etc.

Insurance : The cost of insurance can vary greatly, but expect to pay several thousand dollars per year for comprehensive coverage. This includes general liability insurance, property insurance, workers’ compensation, and potentially professional liability insurance. The cost will depend on factors like the size of your center, the number of employees, and the types of services provided.

Licenses and Permits : The cost of obtaining the necessary licenses and permits can vary depending on your location, but could be in the range of several hundred to several thousand dollars.

Staff Salaries : You’ll need to pay your staff competitive wages to attract and retain quality employees. The total cost will depend on the number of employees and their respective roles.

Marketing and Advertising : Budget for marketing and advertising expenses to attract clients to your new center. This could include costs for website development, brochures, local advertising, and more.

Operating Expenses : Don’t forget to budget for recurring expenses like utilities, food and supplies for clients, maintenance, etc. It’s generally recommended to keep three to six months of operating expenses on hand as a buffer.

Given the variables involved, it’s difficult to provide an exact estimate without specific details. However, you could expect the start-up costs for an adult day care business to be in the range of $100,000 to $500,000 or even more, especially if purchasing a property. It’s essential to create a detailed business plan with a comprehensive budget to understand your funding needs and ensure the financial viability of your venture.

How much can an adult day care owner make?

The profitability of an adult day care business can vary widely based on factors such as the size of the facility, the number of clients, the fees charged, the services offered, and the operational costs. Generally, the revenue of an adult day care center is calculated by multiplying the number of clients by the daily rate and the number of days the center operates per year.

According to Genworth Financial’s most recent Cost of Care Survey,  adult day health care costs  an average of $72 per day. Most days range between 8 and 10 hours of care. So, for this example, let’s say an adult day care center charges an average daily fee of $70 per client and has an average daily attendance of 20 clients. If the center operates 5 days a week for 50 weeks a year (allowing for holidays), the annual gross revenue would be:

$70 (daily rate) * 20 (clients) * 250 (days) = $350,000.

From this gross revenue, you’ll need to subtract your operational costs, including staff salaries, rent or mortgage payments, utilities, insurance, food and supplies, marketing, maintenance, and more. If your total operating costs are $250,000, for instance, your net income before taxes would be:

$350,000 (gross revenue) – $250,000 (operating costs) = $100,000 .

However, these numbers are purely hypothetical and actual earnings can vary significantly. Factors like local market conditions, the reputation of the center, and the quality of care provided can greatly influence profitability. Therefore, it’s critical for potential business owners to create a detailed business plan and financial forecast before starting an adult day care center.

Another profit generator for your facility can be through hosting events while the facility is closed. If you aren’t open on the weekends, consider renting out your space to be used by participant families for baby showers, birthday parties, holiday gatherings, etc

What skills are needed to run an adult day care?

Starting and running an adult day care doesn’t require a business degree, but certain skills and experiences can increase the chances of success.

Caregiving experience.  Experience in caring for adults with mental or physical conditions is highly valuable in this industry. A day care owner who has this caregiving experience will have a better understanding of the challenges and nuances that come with this type of business.

Medical knowledge.  A day care owner doesn’t necessarily need a medical degree, but experience working in or knowledge of the medical industry will be helpful.

Management experience.  Experience in hiring, training, and managing staff is important in this industry since any day care will need multiple employees.

Interpersonal skills.  Strong customer service and interpersonal skills are a must, and they’ll allow a business owner to establish relationships with both clients and their families.

Attention to detail.  Small details can make big differences in this industry regarding caregiving, scheduling, monitoring clients’ health, and more. A business owner needs to be focused on details to be successful.

Marketing skills.  While adult day cares are growing in popularity, many people are still unaware that they exist and need to be informed of their benefits. Marketing will be an ongoing activity, so a business owner will need to be involved in marketing efforts.

What is the NAICS code for an adult day care?

The NAICS code for an adult day care is 624120.

The NAICS code (North American Industry Classification System) is a federal system to classify different types of businesses for the collection and reporting of statistical data.

Related: What is a NAICS code?

Resources: Aging Life Care Association American Health Care Association National Adult Day Services Association  (NADSA)

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How to Start a Profitable Adult Day Care Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a adult day care business plan., 3. develop a adult day care brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for adult day care., 6. open a business bank account and secure funding as needed., 7. set pricing for adult day care services., 8. acquire adult day care equipment and supplies., 9. obtain business insurance for adult day care, if required., 10. begin marketing your adult day care services., 11. expand your adult day care business..

Performing a market analysis is an important first step when launching an adult day care business. This process involves a detailed examination of the market, to understand trends, competition, and potential customers, thus guiding the development of a successful business strategy.

• Identify your target customers: Understand who your potential customers are by researching the demographics and psychographics of the senior population in your intended area. Look at age, income, health status, etc. Understand their needs, preferences, and daily routines.
• Analyze your competition: Research about other adult day care centers in your target area. Look at what services they offer, their pricing, their strengths and weaknesses. This can help you differentiate your business and find potential gaps in the market.
• Understand the Industry Trends: Stay updated with current trends and changes in the adult day care industry. This could include changes in regulations, new technologies or services, etc. This will help you stay competitive and innovate.
• Evaluate the Market Size and Growth: Determine the size of your potential market and its growth rate. This can give you an idea of the potential demand for your services and help you plan your business accordingly.

Note that market analysis is an ongoing process and should be updated regularly as market conditions change.

Are adult day care businesses profitable?

Yes, adult day care businesses can be profitable. It is important to carefully manage the business, including marketing to potential clients, providing a high quality of care, and having an efficient operating system in place. Additionally, many facilities accept subsidies and other forms of reimbursement from insurance companies or government programs to increase profits.

Embarking on the journey to start an adult day care business requires meticulous planning and a comprehensive understanding of your goals, target market, and operational strategies. A well-crafted business plan is an essential roadmap that will help you navigate through the complexities of establishing and managing your adult day care center effectively. Here are the crucial components to include in your business plan draft:

• Executive Summary: Summarize your adult day care's mission, services, and basic information about the management team and business structure.
• Market Analysis: Detail your research on local demographics, demand for adult day care services, and an examination of competitors in the area.
• Services Offered: Outline the types of services and activities your center will provide, focusing on the unique aspects that set you apart.
• Marketing Plan: Describe how you will attract and retain clients, including pricing strategies, promotional efforts, and partnerships.
• Operational Plan: Explain the day-to-day operations, staffing requirements, facility layout, and any transportation services offered.
• Financial Projections: Present realistic financial forecasts, including startup costs, operating budget, revenue projections, and a break-even analysis.
• Risk Management: Identify potential risks and describe the measures you will take to mitigate them.
• Funding Requests: If you're seeking financing, specify the amount needed, intended uses, and proposed repayment plans.

How does a adult day care business make money?

An adult day care business typically makes money by charging a daily fee for services such as assistance with meals, activities like crafts and games, assistance with medications, and companionship. To increase profit potential, day care owners may also offer additional services such as transportation or outings to local attractions. For example, an 11 Steps To Starting a Successful Spice Business might target seniors who need assistance cooking meals with certain ingredients or spices, who are looking for a convenient and safe way to do their grocery shopping.Retiring Baby Boomers who want to stay active in the community and maintain their independence are also a potential target market for this type of business.

Beginning with a comprehensive business plan is crucial when establishing an adult day care center, as it serves as a roadmap for your business's future. It outlines your business goals, strategies for achieving them, and the financial projections to support your vision. A well-crafted business plan will also be indispensable when seeking funding or partnerships. Here's how to approach drafting your business plan:

• Executive Summary: Start with an executive summary that encapsulates the essence of your adult day care business. Briefly describe your mission, the services you will offer, and the market need you're addressing. Highlight your unique selling points and your vision for the business's growth.
• Company Description: Provide a detailed description of your business, including the legal structure, location, and the background that led to its inception. Explain how your adult day care will improve the quality of life for your clients and address a specific need in the community.
• Market Analysis: Present a thorough analysis of the adult day care industry, including trends, demographics, and competitor evaluations. Identify your target market and explain how your services meet their needs better than existing options.
• Organization and Management: Outline your business's organizational structure, detailing the roles and responsibilities of your management team. Include biographies that highlight the experience and expertise that each team member brings to the business.
• Services Offered: Describe the range of services you plan to offer. Explain how these services will be provided and how they will meet the diverse needs of your clients, such as social activities, health services, and transportation.
• Marketing Plan: Develop a marketing strategy that details how you will attract and retain clients. Include your branding, promotional strategies, and a sales plan that outlines how you will build relationships in the community.
• Funding Request: If you are seeking financing, clearly state the amount needed and how it will be used. Include a detailed explanation of how you plan to repay any loans or provide returns on investments.
• Financial Projections: Offer clear financial projections for the next three to five years. Include forecasted income statements, cash flow statements, and balance sheets. Provide a break-even analysis to show when you expect the business to become profitable.
• Appendix: Attach any additional documentation that supports your business plan or might be of interest to stakeholders, such as resumes, permits, lease agreements, and legal documentation.

How to come up with a name for your adult day care business?

Coming up with a name for an adult day care business is an important step in launching a successful venture. First and foremost, you should pick a name that is catchy, memorable, and easy to spell. Additionally, it should reflect the values and goals of your business, such as promoting trust, companionship, and security. Brainstorm potential words that could be combined with the words “adult day care” to create a unique and creative name. Consider seeking feedback from family members, friends, and colleagues on which names stand out most. With some research and creative thinking, you can come up with the perfect name for your adult day care business!

Formalizing an adult day care business is crucial due to the sensitive nature of client care and the regulatory environment. Proper registration and compliance ensure the safety and well-being of your clients. Follow these steps:

• Choose a Legal Structure: Consider an LLC or corporation for liability protection.
• Obtain Licenses and Permits: Check state and local requirements for operating an adult day care, including health and safety certifications.
• Register Your Business: File the necessary paperwork with your state to officially establish your business entity.

Resources to help get you started:

Explore crucial resources designed for adult day care entrepreneurs featuring insights on market trends, operational best practices, and strategic guidance for business expansion:

• Genworth Financial's Cost of Care Survey : Provides detailed regional cost data for adult day care services, helping entrepreneurs assess competitive pricing strategies. Link .
• National Adult Day Services Association (NADSA) : Offers industry reports, regulatory updates, and networking opportunities for adult day care providers. Link .
• Entrepreneur Magazine's Health Care Center : Features articles and advice on running a successful health care business, including adult day care. Link .
• Adult Day Care Group's Startup Guide : A comprehensive manual for new adult day care business owners on operational setup, licensing, and marketing. Link Not Provided.
• Small Business Administration (SBA) : Provides access to business planning, financing, and training resources tailored to the health services sector. Link .

Starting an adult day care business requires careful attention to the legal requirements which vary by location. Acquiring the necessary licenses and permits is crucial to operate legally and provide a safe environment for your clients. Below are the general steps you should follow:

• Research local regulations: Contact your state's Department of Health and Human Services to understand specific licensing requirements for adult day care centers in your area.
• Complete training and certification: Some states require operators to complete specific training programs or certifications related to adult day care management and first aid.
• Apply for a business license: Obtain a general business license from your city or county business licensing office.
• Obtain specialized permits: Depending on the services you plan to offer, you might need additional permits related to food service, medication distribution, or transportation.
• Pass health and safety inspections: Your facility will likely need to pass health and safety inspections to ensure it meets all the necessary codes and regulations.
• Get insurance: Secure liability and property insurance to protect your business and ensure compliance with local regulations.

What licenses and permits are needed to run a adult day care business?

Depending on the state and city, the types of licenses and permits needed to run an adult day care business may vary. Generally, the requirements involve obtaining both a business license and a day care license from the city or county in which the business is located. In addition, a state license from the Department of Social Services is often required. Depending on where the facility is located, additional licensing or permits may also be necessary.

Opening a business bank account and securing funding are crucial steps in establishing the financial foundation for your adult day care business. These actions not only help to separate personal finances from business transactions but also ensure you have the necessary capital to cover startup costs and operational expenses. Here’s a guide to help you through this process:

• Research banks and credit unions that offer business banking services. Consider their fees, services, and convenience before choosing the right institution for your adult day care business.
• Prepare the required documents—such as your business plan, EIN, incorporation papers, and personal identification—to open a business bank account.
• Understand the types of funding available, including loans, grants, and investor capital. Assess which type aligns best with your business needs and financial situation.
• Contact local government agencies or non-profit organizations that may offer funding opportunities specifically for health care or elder care services.
• Build a presentation or pitch if you plan to seek out investors. Be prepared to clearly articulate your business model, market analysis, and financial projections.
• Consider crowdfunding platforms if your business model appeals to community support and if you have a compelling story to share about your adult day care initiative.

Starting an adult day care business requires careful financial planning. You need to set up a separate business bank account to manage your business finances effectively and secure funding for your operations.

• Opening a Business Bank Account: It's essential to separate your personal finances from your business expenses. Start by choosing a bank that offers services tailored to business needs such as online banking, payroll services, and merchant services. Make sure to check the fees related to the account before you make a decision. You will need your business name, EIN (Employer Identification Number), and legal documents to open the account.
• Secure Funding: Determine how much money you will need to start and operate your adult day care center. You may need to take out a loan, apply for grants, or find investors. Research the different types of loans available and the requirements for each. It's also a good idea to create a solid business plan to present to potential investors or lenders.

Remember, financial management is key to the success of your business. Make sure to keep accurate records of all transactions and regularly review your business's financial performance.

What does it cost to start a adult day care business?

Initiating a adult day care business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $$32,000/month for launching such an business. Please note, not all of these costs may be necessary to start up your adult day care business.

Starting an adult day care requires careful selection of equipment and supplies to ensure a safe, comfortable, and engaging environment for your clients. It's important to invest in high-quality, durable items that meet the specific needs of the elderly or adults with disabilities. Below is a guide to help you acquire the necessary equipment and supplies for your adult day care business:

• Furniture: Purchase comfortable seating options like armchairs and sofas, adjustable tables, and sturdy dining furniture. Ensure all furniture is easily accessible and supportive.
• Safety Equipment: Install grab bars, railings, non-slip flooring, and emergency call systems. Also, provide wheelchairs, walkers, and canes as needed.
• Medical Supplies: Have basic first aid kits, blood pressure monitors, diabetic testing equipment, and medication storage with secure access.
• Recreational Materials: Offer books, magazines, games, puzzles, and art supplies to promote cognitive stimulation and social interaction.
• Exercise Equipment: Include low-impact exercise gear like resistance bands, light weights, and balance balls to encourage physical activity.
• Technology: Set up computers or tablets with internet access, hearing aids, and large-screen televisions for entertainment and education.
• Sanitation Supplies: Stock up on cleaning agents, hand sanitizers, disposable gloves, and personal hygiene products to maintain cleanliness and prevent infection.
• Kitchenware: Ensure you have adequate kitchen equipment and utensils for meal preparation and service, including dietary-specific items if necessary.

List of software, tools and supplies needed to start a adult day care business:

• Business Licensing - $50 - $3,000 (varies by state)
• Insurance Policy - $300 - $1,200
• Computer Software - $50-200/month
• Web Design and Hosting - Up to $100/month
• Furniture and Supplies - $200+
• Telephone/WiFi Connectivity - $60-$100/month
• Office Supplies - Pens, Paper, Post-Its, etc. - Up to $50/month
• Marketing Materials & Services - Up to $150/month
• Staff Training Programs - Up to $250/program
• Cleaning Supplies and Services- Up to $100+/month

Starting an adult day care business requires careful consideration of potential risks and liabilities. Business insurance is a crucial component that provides financial protection against unforeseen events. Here’s a step-by-step guide to help you obtain the right business insurance:

• Research the types of insurance required in your state or region, as regulations may vary. Common types include general liability, professional liability, and property insurance.
• Contact multiple insurance providers to compare coverage options and premiums. Consider insurers with experience in the health care sector or those specializing in adult day care businesses.
• Discuss your specific business needs with insurance agents, including the number of clients, types of services offered, and any special risks associated with your adult day care.
• Ensure that your policy covers both the facility and transportation if your services include picking up and dropping off clients.
• Review the proposed policies carefully, paying close attention to coverage limits, deductibles, and exclusions.
• Choose a policy that balances comprehensive coverage with an affordable premium, and finalize the purchase to protect your business from day one.

Marketing your adult day care services is crucial for attracting clients and establishing a presence in your community. A well-crafted marketing plan should highlight the unique benefits of your services, instill trust in potential clients, and build relationships with local healthcare providers. Here are some strategies to kickstart your marketing efforts:

• Develop a strong brand identity: Create a logo, slogan, and marketing materials that reflect the compassionate and professional nature of your services.
• Build a user-friendly website: Ensure your website is informative, easy to navigate, and includes contact information, services offered, and testimonials from satisfied clients or their families.
• Utilize social media: Regularly post engaging content on platforms like Facebook and Instagram to reach a wider audience and keep your day care top of mind.
• Network with healthcare providers: Establish relationships with local doctors, hospitals, and clinics who can refer clients to your facility.
• Host community events: Organize open houses, workshops, or seminars on topics related to adult care to draw attention to your facility.
• Offer trial days or discounts: Encourage new clients to experience your services firsthand with special introductory offers.
• Invest in local advertising: Consider advertising in local newspapers, radio stations, or community bulletin boards to reach your target audience.

Marketing your adult day care services is the most effective way to attract potential clients and grow your business. It starts with understanding who your target audience is, what they need, and how your services can meet those needs. Below are some steps you can take to effectively market your adult day care services.

• Identify your target audience: Your primary target audience will be the adult children or caregivers of elderly individuals who need day care. Focus on reaching out to them through various marketing channels.
• Create an engaging website: A user-friendly, informative, and appealing website is crucial. Ensure it provides all necessary information about your services, staff qualifications, facility, and contact details.
• Use social media: Platforms like Facebook, Instagram, and LinkedIn can be used to reach potential clients. Share posts about your services, testimonials from satisfied clients, and any events or activities at your center.
• Network: Attend community events, join local business organizations, and engage with healthcare professionals to spread the word about your services.
• Offer promotions or discounts: To attract more clients, consider offering special discounts for new members or referral incentives for existing clients.
• Quality customer service: Ensure your staff provides excellent customer service. Word-of-mouth referrals are powerful marketing tools and happy clients are more likely to recommend your services to others.

7 Steps to Start an Adult Day Care

How to open an adult day care center: the 7 c's checklist.

Now is a great time to open an Adult Day Care service. It is a growing market due to the aging population in the U.S. The cost of assisted living and skilled home care is simply not affordable for many Americans. Therefore, Adult Day services give families the option to care for and support their loved ones at home while also working full-time jobs, raising children, and caring for their own well-being too.

Adult Day Care facilities provide an important and ever-increasing need in aging and disabled communities. They offer family caregivers respite in addition to providing aging and disabled populations with social interaction, health services and advocacy, meals, transportation and a safe environment.

If you want to open an Adult Day Care service, here are steps you should take:

1. Consider Your Options

Acquire an existing adult day care center.

This is a fairly common option. There are obvious benefits to buying up an established business rather than starting from scratch. However, you will want to make sure you thoroughly research the center's business history and develop a promotion plan going forward. If it is the right choice for you, ensure work with a trusted business broker. Their expertise will help make the acquisition go smoothly. 

Open an Adult Day Care center franchise 

If you are a business rookie, franchising is an opportunity for you to consider. There are far fewer risks involved due to the stable foundation of an already established and successful brand. Furthermore, it is beneficial to have guidance and help from business owners when you’re a new entrepreneur.

There are multiple Adult Day Franchises on the market. We advise you to explore your different options - Our current recommendation is ActivAge who are rapidly expanding across the US.

Different Types of Adult Day Services

Adult day services is a system of professionally delivered, integrated, home- and community-based, therapeutic, social and health-related services provided to individuals to sustain living within the community.

It is important to distinguish the various types of Adult Day Care provision. Keep in mind, a facility may offer more than one of the following:

Adult Day Social Care : Provides meals, recreational activities, day trips, and social interaction. Clients do not have significant health issues or impairments. 

Adult Day Medical Care : In addition to social care offerings, Adult Day Healthcare providers usually have RNs and other therapeutic health practitioners on staff. They may offer physical, occupational and speech therapy. Clients are generally those requiring more medical care and would not be safely left at home alone.

Adult Day Skilled Care : This model provides specialized care to specific client populations. For instance, this could include adults living with developmental disabilities or those with dementia. 

2. Conduct Market Research ‍

Take a look at the US Census Data to see if there is a need in your community. For instance, look at how many people over the age of 65 are living in your area in addition to other key demographics.

Then, find out how many Adult Day Services are in your area . Next, visit or call them. This will help you determine what programs or areas of service are missing from what your community currently offers. It is important to set yourself apart from the competition and attempt to fill an unmet need.

3. Contact Your State Association Partner ‍

Each state has its own set of rules and regulations you will need to be aware of. Most states have Adult Day Service Associations you can contact to find out about state-specific licensures, accreditations and mandatory regulations. 

Additionally, the U.S. Department of Health & Human Services gives you access to state-specific rules and regulations in this document: Regulatory Review of Adult Day Services . From here, you should be able to...

4. Create a Checklist of What You Need to Do to Start Your Adult Day Service ‍

Once you know the rules and requirements for opening an Adult Day Care, you can start making a to-do list of action items. For example, some items might be to write a medication policy, apply for accreditation and license, apply for grants, purchase insurance, find a financial consultant, etc. This will help keep you organized and ensure you acquire everything you need to be set up for success.

5. Check Out Funding Options ‍

You may be wondering, “Where can I find investors to start an Adult Day Care?” 

See if your Adult Day Care business is eligible for Small Business Grants (SBA) or funding programs. Some other adult day care service funding opportunities to consider are: 

Social Services Block Grant (SSB)

This is a significant source of federal funding that states use to support adult day care communities. Contact your local state agency to find out if they allocate SSBC funding for adult day care.

Older Americans Act Funding (OAA)

OAA resources are available for senior centers and other community organizations to deliver services such as meals, transportation, information and referral, health promotion and disease prevention, and caregiver support.

Robert Wood Johnson Foundation Grants

These grants focus on expanding public policies, community-based programs, system changes and other interventions that are having a meaningful impact on health.

Alzheimer’s Foundation for America (AFA)

AFA provides various grants to member organizations offering support, services and education to individuals, families and caregivers affected by Alzheimer’s and dementia.

6. Communicate with Support Networks

If you’re starting an Adult Day Care, speak to someone who owns an Adult Day Care service outside of your area and ask them for advice. They won’t consider you to be a competitor. Consequently, they’ll be more open to answering industry-related questions and potentially mentoring you through the first steps. Also, become a member of the National Adult Day Services Association . NADSA is there to help you develop professionally. They host educational events, promote public policy, publish research and support providers with all kinds of resources and networking opportunities. You may also have a local state association which can help with state specific matters.

7. Compose an Adult Day Care Business Plan

Writing an effective business plan for your Adult Day Care service is crucial to success. You can find examples of Adult Day Care Business plans online to refer to for structure and content. This is where those support networks mentioned above can offer helpful guidance, too. 

Consult StoriiCare - FREE Digital Assessment & Cost Estimate

If you are writing a business plan or grant proposal for a new Adult Day Care, take advantage of StoriiCare. StoriiCare is a leading Adult Day Care Software provider. Their system is modern and easy-to-use. It enables care providers to digitally schedule clients and transport, create custom calendars, track service user participation, connect with families, run billing reports and so much more! 

StoriiCare offers a free digital assessment and cost estimate to include in your business proposal. Why include this or consider care management software? It shows investors that you:

• Are forward-thinking . Digital care management is already on its way to being an industry standard. Including digital care management plans and costs in your business plans indicates that you’re future-proofing your care provision. 
• Understand the market . Service users and their families are increasingly expecting a means of digital communication. Family caregivers are tech-savvy and StoriiCare enables you to keep caregivers up to date with digital signage, media, community announcements, private messaging, calendar sharing and more. Read about how care management software becomes a powerful communication tool during a pandemic .
• Value the importance of data-driven decisions, measuring results and program evaluation . StoriiCare gathers robust data as you use it, generating in-depth trends and analytics reports. These reports can be used when applying for grants or other funding sources. 
• Have a powerful marketing tool. StoriiCare is progressive and appealing to potential service users and their families. It can be used strategically in marketing efforts to differentiate yourself from other providers. 

Click here to book a call with a member of the StoriiCare team.

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Senior Day Care Business Plan Template

Written by Dave Lavinsky

Senior / Adult Day Care Center Business Plan Template

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their adult day care businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a senior day care business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Senior Day Care Business Plan?

A business plan provides a snapshot of your adult daycare business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for an Adult Day Care Center

If you’re looking to start an elderly day care business or grow your existing elderly day care business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your adult daycare business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Senior Day Care Businesses

With regards to funding, the main sources of funding for an senior day care business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the lender will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for elderly daycare businesses.

Finish Your Business Plan Today!

How to Write a Business Plan for a Senior / Adult Day Care Center

If you want to start an adult day care business or expand your current one, you need a business plan. Below we detail what you should include in each section of your business plan for a senior day care center:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of adult / senior day care business you are operating and its status. For example, are you a startup, do you have an elderly daycare business that you would like to grow, or are you operating a chain of elderly daycare businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the elderly daycare industry. Discuss the type of elderly daycare business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of senior day care business you are operating.

For example, you might operate one of the following types of adult day care businesses:

• Social model : this type of business provides supervision and socialization through activities such as discussion groups, arts and crafts, games and dancing, or memory stimulation exercises.
• Medical model: this type of business serves individuals with medical problems (including dementia) who may require monitoring, nursing care, social work, occupational therapy, physical therapy, nutritional counseling or recreational therapy.
• Combination model: this type of daycare uses a combination of the social and medical model to provide supervision and socialization through therapeutic group activities, as well as medical services such as monitoring, nursing care, social work, and a range of therapies.

In addition to explaining the type of adult day care business you will operate, the Company Analysis section needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the elderly daycare industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the elderly daycare industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your adult day care business plan:

• How big is the elderly daycare industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your adult day care business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: adults with self-care difficulties, adults with Alzheimer’s or other forms of dementia, adults with hearing and/or vision difficulties, and adults with ambulatory difficulties.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of elderly daycare business you operate. Clearly, families of adults with Alzheimer’s would respond to different marketing promotions than families of adults with ambulatory difficulties, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most elderly daycare businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other senior / adult day care centers.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes senior living providers, home healthcare agencies, retirement communities, and convalescent centers.

With regards to direct competition, you want to describe the other elderly daycare businesses with which you compete. Most likely, your direct competitors will be elderly daycare businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• Do they specialize in caring for individuals with specific disabilities / diseases?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider variety of activities?
• Will your daycare offer extra services, such as transportation?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an adult day care business, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of elderly daycare company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to supervision and group activities, will your daycare offer occupational and speech therapy, or other rehabilitation therapies?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the adult day care service you offer and the prices.

Place : Place refers to the location of your elderly daycare company. Document your location and mention how the location will impact your success. For example, is your elderly daycare business located near a hospital, or in a residential district? Will you also provide transportation to your daycare? In this section, discuss how your location will provide easy accessibility to your clients.

Promotions : The final part of your elderly daycare marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Signs and billboards
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your elderly daycare business, including marketing, planning and executing activities, overseeing therapies, maintaining licensing requirements, and providing care for customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th family, or when you hope to reach $X in revenue. It could also be when you expect to open an elderly daycare business in a new location.  

Management Team

To demonstrate your elderly daycare business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing elderly daycare businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in nursing care or rehabilitation, or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you provide care for 10 individuals per day, or 20? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your elderly daycare business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing an elderly daycare business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your location lease, or an overview of all therapies offered at your facility.  

Putting together a business plan for your elderly daycare business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert senior daycare business plan; download it to PDF to show banks and investors. You will really understand the elderly daycare industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful elderly daycare business.

Don’t you wish there was a faster, easier way to finish your Elderly Daycare business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   See how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Step-by-Step Guide on How to Open Elderly Day Care Center

If you’re passionate about providing care for elderly individuals, opening an elderly day care center could be the perfect business venture for you. However, starting any business can be daunting, so we’ve compiled a step-by-step guide to help make the process as smooth as possible.

In this section, we will cover everything you need to know about how to open an elderly day care center, from understanding the elder care industry and conducting market research to designing the facility, hiring and training staff, and marketing and promoting your center. We will also provide insights into obtaining the necessary licenses and permits, securing financing, and managing finances and administration.

• Opening an elderly day care center can be a fulfilling business venture for those passionate about providing care for elderly individuals.
• A well-crafted business plan is essential for any successful venture.
• Obtaining the necessary licenses and permits is crucial for opening an elderly day care center.
• Designing a functional and welcoming facility and hiring and training a qualified staff are crucial for providing excellent care to elderly clients.
• Effective marketing strategies are essential for attracting clients to your elderly day care center.

Understanding the Elder Care Industry

If you’re planning to open an elderly day care center, it’s important to have a good understanding of the senior care industry. The elder care industry is multifaceted and includes various types of facilities and services such as nursing homes, assisted living facilities, and day care centers specifically designed for seniors.

When it comes to day care planning for the elderly, there are unique considerations that need to be taken into account. For example, elderly individuals may have different medical needs and mobility limitations that need to be accommodated. Understanding these factors can help you design a senior care facility that meets the needs of your clients.

Additionally, it’s important to stay up to date on industry standards and regulations to ensure that your day care center is operating in compliance with legal requirements. This can also help you provide the highest quality care to your elderly clients.

Overall, a good understanding of the elder care industry is crucial for running a successful day care center for the elderly. In the next section, we’ll dive into the process of conducting market research to determine the feasibility of opening an elderly day care center in your area.

Before you jump into the process of opening an elderly day care center, it’s important to conduct thorough market research. This step will help you understand the demand for senior day care centers in your area and give you valuable insights into your competition. Here are some steps to follow when conducting market research for your elder care business :

• Identify your target market: Determine the age range and care requirements of the elderly population you want to cater to. This information will help you create a more tailored service that meets their needs.
• Assess the demand: Research the current demand for senior day care centers in your area. Consider factors such as population density, local demographics, and the availability of similar services in the area.
• Analyze your competition: Research other senior care facilities in your area and study their strengths and weaknesses. This will help you identify gaps in the market that you can fill with your own center.
• Survey potential clients: Surveying potential clients can help you gather valuable feedback that can inform your service offering. You can also use this information to tailor your pricing and marketing strategies.

By conducting thorough market research, you can gain a better understanding of the needs of the elderly population in your area and create a service that meets those needs. Opening an elderly care center or setting up a senior day care depends on a solid understanding of your market, so it’s important not to skip this step.

As with any business venture, a well-crafted business plan is crucial for success in the elder care industry. It serves as a roadmap for your senior care business and helps you stay focused on your goals. Here are the key components of a business plan for an elderly day care center:

Executive Summary

This section provides a brief overview of your elderly day care center. It should include details about the services you offer, your target market, and your mission statement.

Market Analysis

Conducting market research is vital in understanding the demand for your senior care business. You need to analyze the competition, identify opportunities, and determine potential challenges.

Services and Pricing

Outline the specific services you plan to offer at your elderly day care center and set prices for each service. Consider the market demand and your target audience when setting prices.

Marketing and Sales Strategies

A well-thought-out marketing plan is necessary to attract potential clients to your senior care business. Detail your marketing strategies, including advertising, promotions, and outreach efforts.

Staffing Plan

Building a qualified team is crucial for the success of your elderly day care center. Develop a staffing plan that includes job descriptions, qualification requirements, and training programs.

Financial Projections

Provide a detailed financial plan that includes startup costs, operating expenses, and projected revenue. Break down the numbers by month for the first year and annually for the next few years.

Operating Plan

Describe the day-to-day operations of your senior care business. Include details about the facility, equipment, and supplies needed to run the day care center.

By creating a thorough and thoughtful business plan for your elderly day care center, you will be well-prepared to run a successful senior care business. With a strong foundation in place, you can focus on providing excellent care to the elderly in your community.

Opening an elderly day care center requires specific licenses and permits, which vary by state and locality. It’s important to research the requirements in your area to ensure compliance with all regulations.

Some common licenses and permits needed for a day care center include a business license, fire and safety inspection, health department permit, and zoning permit.

Before applying for licenses and permits, make sure your day care center meets all the necessary requirements. This may include having adequate staff-to-client ratios, providing proper nutrition and medication management, and ensuring a safe and secure facility.

It’s important to note that obtaining licenses and permits can be a lengthy process, so plan accordingly. Make sure to check for any specific requirements or deadlines to ensure a smooth application process.

One of the most crucial aspects of starting an elderly day care center is securing financing. There are several options available for funding your senior care business startup . Here are some tips on how to secure financing for your day care center:

• Personal Savings: If you have personal savings, this can be a great way to fund your day care center. However, it’s important to ensure that you have enough savings to cover the initial startup costs, as well as ongoing expenses.
• Traditional Bank Loans: Traditional bank loans are a popular option for financing a senior care business. Make sure to prepare a strong business plan and financial projections to increase your chances of being approved for a loan.
• Small Business Administration (SBA) Loans: The SBA offers loans specifically for small businesses, including senior care facilities. These loans typically have lower interest rates and longer repayment terms than traditional bank loans.
• Grants and Funding Programs: Many organizations offer grants and funding programs for those looking to start a senior care business. Research and apply for any relevant programs in your area.
• Investors: Consider seeking out investors who are interested in supporting a senior care business. Make sure to develop a clear and compelling pitch to attract potential investors.

Securing financing can be a challenging aspect of opening an elderly day care center, but with the right preparation and strategy, it is possible to obtain the funds you need to start your business.

Designing the facility for your adult day care center is an essential aspect of creating a welcoming and functional space for your elderly clients. The goal is to create a space that is safe, comfortable, and provides a sense of community for the clients.

When designing the facility, keep in mind the unique needs of elderly clients. Make sure the space is easily accessible for those with mobility issues. Consider installing handrails and ramps to make it easier for them to move around.

The furniture and decor should be chosen with care. Opt for comfortable seating options and make sure there is plenty of natural light and fresh air. Use soft and warm colors to create a soothing and calming atmosphere.

It’s also vital to have separate areas for various activities such as meal times, socialization, and relaxation. Consider creating outdoor spaces like gardens or patios where clients can enjoy the fresh air and sunshine.

Invest in high-quality equipment and technology, such as wheelchairs and medical devices, to ensure the safety and comfort of your clients.

Designing the facility for your elderly care center requires careful planning and attention to detail. By creating a welcoming and warm environment, you will be providing your clients with a safe and comfortable space that enhances their quality of life.

Building a team of qualified and compassionate staff members is crucial for providing excellent care to your elderly clients. Your staff will be responsible for creating a safe and engaging environment for the elderly adults in your care.

When hiring staff members, consider the following:

• Experience working with the elderly
• A compassionate and patient demeanor
• The ability to work well in a team
• Effective communication skills

When training your staff, provide them with:

• Training on providing personal care, such as feeding, bathing, and dressing
• Training on providing mental and emotional support to elderly adults
• Guidelines on responding to emergencies or unexpected events
• Information on your facility’s policies and procedures

Consider requiring your staff to go through a background check and drug testing before hiring them for your elderly day care center. Additionally, provide ongoing training and support to help your staff continue to improve their skills and care for your elderly clients effectively.

Ensuring that you have a qualified and compassionate team is essential for the success of your elderly day care center. Take the time to carefully select and train your staff to provide the highest quality of care to your elderly clients.

One of the most important aspects of running an elderly day care center is creating a daily activity program that engages and stimulates your clients. Elderly individuals may have varying abilities and interests, so it’s important to tailor your activities to their individual needs. Here are some tips for creating a daily activity program:

• Include activities that promote social interaction and engagement, such as group games and discussions.
• Incorporate physical exercise and movement activities that are appropriate for the elderly, such as chair exercises or walks around the facility.
• Offer creative activities such as art, music, and crafts that promote mental stimulation and relaxation.
• Include activities that provide a sense of purpose and accomplishment, such as gardening, cooking, or volunteer work.
• Consider offering specialized programs for individuals with memory impairments or other specific needs.

Remember that your daily activity program should be flexible and adaptable based on the changing needs and abilities of your clients. Regularly check in with your clients and solicit their feedback on the activities they enjoy most and any suggestions they may have.

Incorporating a variety of activities into your daily program can help keep your clients engaged and excited to attend your senior care center . By offering programs that cater to the unique needs and interests of the elderly, you can create a welcoming and nurturing environment that promotes overall well-being.

Managing Finances and Administration

Efficient financial and administrative management is crucial for the smooth operation of an elderly day care center. To ensure that your center remains profitable and sustainable, it’s important to have a solid business plan in place that includes financial projections, staffing plans, marketing strategies, and more. Your business plan should also outline the elder care center requirements , such as licensing, insurance, and safety regulations.

It’s also essential to keep track of your finances and maintain accurate records of income and expenses. This will help you analyze your cash flow, identify areas where you can cut costs, and make informed decisions about investments and expansion.

In addition, proper administration is key to providing high-quality care to your elderly clients. This includes creating policies and procedures for staff members to follow, implementing safety protocols, and maintaining open communication with clients and their families.

By prioritizing financial and administrative management, you can ensure that your elderly day care center runs smoothly and provides top-notch care to your clients.

Now that you’ve successfully launched your elderly day care center, it’s time to focus on marketing and promoting your business to attract potential clients and their families. Here are some steps to start promoting your elderly day care center:

• Get listed on senior care directories: List your center on senior care directories like Caring.com, ElderCare.gov, and AgingCare.com. This will help potential clients find your center when they search for senior care facilities in their area.
• Use social media: Create social media accounts for your center and post regular updates about events, activities, and testimonials from satisfied clients and their families. Encourage your followers to like and share your posts to reach a wider audience.
• Host an open house: Plan an open house event and invite potential clients and their families to tour your facility. Offer refreshments and provide information about your center’s services and benefits.
• Partner with local healthcare providers: Build relationships with local healthcare providers like hospitals, clinics, and physician offices. They can refer clients to your center and help spread the word about your services.
• Print marketing materials: Create brochures, flyers, and business cards that highlight your center’s services and benefits. Distribute them at local events and community centers.
• Create a website: Develop a website for your center that includes information about services, staff, testimonials, and contact information. Make sure your website is optimized for search engines so potential clients can find you online.

Remember to focus on the unique benefits your center offers, such as personalized care, engaging activities, and a welcoming environment. Highlight the experience and qualifications of your staff and provide testimonials from satisfied clients and their families.

By following these steps, you can successfully market and promote your elderly day care center and attract potential clients and their families. Consistency is key, so make sure to regularly update your marketing materials and continue building relationships with local healthcare providers and community organizations.

Ensuring Compliance with Regulations

When starting a senior daycare, it’s essential to ensure compliance with regulations to maintain the safety and quality of your elder care center. The regulations and requirements can vary depending on your state, so it’s crucial to research and understand them thoroughly.

One of the essential regulations for elder care centers is obtaining the necessary licensing and permits. You will need to follow specific procedures and meet state requirements to receive a license. The licensing process can take several months, so it’s essential to start early.

Additionally, you will need to develop and implement policies and procedures that meet the standards set by your state. The policies and procedures should include guidelines for client care, staff training, and medication management.

Another important regulation is maintaining proper staffing levels and staff qualifications. Your staff should have the necessary qualifications and certifications to provide quality care to your elderly clients.

Finally, you will need to follow strict guidelines for health and safety, including building requirements, infection control, and emergency preparedness. These guidelines are in place to protect both clients and staff members.

By understanding and adhering to these regulations, you can ensure the safety and health of your elderly clients and staff members while maintaining compliance with state requirements.

Opening an elderly day care center can be an incredibly fulfilling experience, both personally and professionally. By following this step-by-step guide, you will be well-equipped to start your own senior day care center and make a positive impact in the lives of the elderly in your community.

Remember to conduct thorough market research, create a comprehensive business plan, obtain the necessary licenses and permits, secure financing, design a functional facility, hire and train qualified staff, create engaging daily activities, manage finances and administration efficiently, market your center effectively, and ensure compliance with regulations.

Starting a senior day care center can be challenging, but with dedication and hard work, it can also be an incredibly rewarding opportunity to make a difference in the lives of others. We wish you all the best in your journey to start a senior day care center and support the elderly in your community.

How do I determine the demand for an elderly day care center in my area?

Conducting thorough market research is crucial to determine the demand for an elderly day care center in your area. This involves analyzing the demographics, competition, and potential client base.

What should be included in a comprehensive business plan for an elderly day care center?

A comprehensive business plan for an elderly day care center should include financial projections, marketing strategies, staffing plans, facility design, daily activity programs, and an overview of your target market.

What licenses and permits do I need to open an elderly day care center?

Opening an elderly day care center requires specific licenses and permits, which vary depending on your location. It’s important to research and adhere to the licensing requirements set by your local or state government.

What funding options are available for opening an elderly day care center?

There are various funding options available for opening an elderly day care center, including personal savings, loans from banks or credit unions, grants, and partnerships with investors or organizations that support senior care initiatives.

How can I design a facility that meets the unique needs of the elderly?

Designing a facility for an elderly day care center involves creating a welcoming and functional space. Consider factors such as accessibility, safety measures, comfortable seating areas, appropriate lighting, and amenities that cater to the needs of the elderly.

What should I look for when hiring staff for an elderly day care center?

When hiring staff for an elderly day care center, it’s important to look for individuals who are qualified, compassionate, and have experience working with the elderly. Conduct thorough background checks and consider their ability to handle the unique needs and challenges of elderly care.

How can I create a daily activity program that caters to the needs of the elderly?

To create a daily activity program for an elderly day care center, consider the interests, abilities, and limitations of the elderly individuals in your care. Plan activities that promote social interaction, cognitive stimulation, physical exercise, and emotional well-being.

What are some best practices for managing finances and the overall administration of an elderly day care center?

Managing finances and administration in an elderly day care center involves implementing efficient systems for billing, invoicing, record-keeping, and budgeting. It’s important to have clear policies and procedures in place and regularly review and update them as needed.

How can I effectively market and promote my elderly day care center?

To effectively market and promote an elderly day care center, utilize various marketing strategies such as creating a professional website, utilizing social media platforms, networking with healthcare professionals, organizing community events, and showcasing positive testimonials from satisfied clients and their families.

What regulations do I need to adhere to in order to ensure compliance for my elderly day care center?

Ensuring compliance with regulations is crucial to maintain the quality and safety of your elderly day care center. Familiarize yourself with the regulations set by your local or state government for operating an elderly day care center and implement the necessary protocols and procedures to adhere to them.

How can I make a positive impact in the lives of the elderly in my community through an elderly day care center?

By opening an elderly day care center, you have the opportunity to make a positive impact in the lives of the elderly in your community. Provide a safe and nurturing environment, offer engaging activities, promote social interaction, and deliver compassionate care to enhance their overall well-being and quality of life.

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