GUARANTEED DEMAND

One of President Obama’s former senior advisors was famously quoted as saying, “A crisis is a terrible thing to waste.”  While it may not yet qualify as a crisis, the tidal wave of aging baby boomers now moving into their senior years will create a huge surge in the need for assisted living.  From a business standpoint, the assisted living business is shaping up to be another California gold rush.  There will be lots of people making lots of money.

What business plan doesn’t sparkle when the phrase, “Guaranteed Demand” is central and foremost?  We have more people than ever before moving into old age.  When they are no longer able to live on their own, more facilities are going to be needed to take care of them.

ASSISTED LIVING BUSINESS AS JOBS MACHINE

There are many aspects to the assisted living business, but let’s consider facilities themselves.  Dozens of jobs are created whenever one is built–ranging from design and planning, real estate, land development, construction, supply of goods and equipment to operations.

REAL ESTATE AND FRANCHISE OPPORTUNITIES IN ASSISTED LIVING BUSINESS

From a real estate investment standpoint, bought right, investment in land and/or facilities should provide a great return.   Some operators offer franchising to qualified individuals.  This structure provides the entire framework necessary to achieve financial success in providing these services, as well as an established brand and advertising support.

OUTSOURCED OPERATIONS

It is possible to outsource the entire operation of the facility to a firm already in the business.  Most all of us are aware of hotels that may have changed names over the years.  The sign, decorating, and level of services offered may have changed, but the land and building remain the same.

UNIQUE REGULATORY REQUIREMENTS OF ASSISTED LIVING BUSINESS

Assisted living businesses are subject to licensing, inspection and many other standards not applicable to other businesses.  Make sure you have proper advice to ensure compliance with local, state and federal requirements.

FINANCIAL AND DEVELOPMENT SUPPORT AVAILABLE

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The rules of obtaining outside financing have dramatically changed over the past three years.  Any loans will have to be well collateralized through subordinated participant investment or leveraging equity from other properties or holdings.

Almost all communities have centers for aging or a main resource for issues associated with caring for the elderly.  Visit them along with existing facilities to gain information and insight.  Check with your local Chambers of Commerce and economic development commissions.  Most cities provide incentives and assistance in commercial development than will result in jobs growth and eventual higher tax revenues.