The Ultimate Guide to Starting an Assisted Living Facility

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Starting an assisted living facility can feel overwhelming, but with the right approach, it becomes a rewarding opportunity to make a positive impact. Whether you're completely new to this industry or have some experience, knowing the steps required will help you get started confidently. In this guide, we’ll cover the essentials for launching a successful assisted living business and provide valuable insights to support you along the way.

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1. Conduct Thorough Market Research

Before anything else, dive into thorough market research. The location you choose can make a world of difference to your success. Start by asking these questions:

Who is your target population? Is the area attracting retirees, or is there an existing elderly population that could benefit from assisted living?
What’s the economic and political environment like? Consider taxes, local politics, and regulations, as these factors will impact your long-term profitability and operations.

In hindsight, I would have invested more time in understanding each area before expanding. By researching your market well, you can avoid common mistakes and give your business a solid foundation.

2. Get Licensed with Your State’s Health Department

Once you’ve picked a location, reach out to your state’s health department to understand licensing requirements. Every state has its own set of regulations, so familiarize yourself with what’s needed where you plan to operate. Generally, this involves gathering documentation on safety, staffing, and facility standards.

If you’re considering purchasing an existing facility, be sure to pay close attention to the change of ownership requirements in your state. Often, the paperwork differs for this, so being prepared from the beginning can help you avoid costly delays.

3. Obtain Zoning Approval from Your Municipality

Zoning can be a crucial yet overlooked step in starting an assisted living business. After finding a property, check with the local zoning and planning department to ensure the area is zoned for assisted living. Some residential properties may not meet local requirements and could need rezoning, which can be time-consuming and costly.

For those purchasing an existing facility, confirm that the property zoning matches your goals. By addressing zoning early, you can avoid roadblocks and ensure a smooth path forward.

4. Build Your Team of Professionals

Establishing a successful assisted living facility is a team effort. Having the right professionals on board will save you time, money, and stress. Here are some experts you’ll likely need:

Real Estate Broker: to help you find the right property.
Lender: to secure financing for your project.
Attorney: to structure your business correctly, especially if you’ll be managing both real estate and operations.

Starting these conversations early will ensure you’re prepared as each step unfolds.

Final Thoughts: Getting Started Is Simpler Than You Think

By breaking down the process into manageable steps—market research, licensing, zoning, and building a strong team—you can confidently move forward with your assisted living business. While it may seem complex, tackling each part systematically will help you achieve your goals efficiently.

If you’re ready to take the next step, download our Business Plan Checklist to ensure you have everything you need to write a solid business plan. In addition, consider participating in the Assisted Living Investing Mastermind program. This 12-month program will take you step by step through the process of owning and operating your own assisted living home. The program includes customized coaching support, ensuring you have the resources and knowledge you need to thrive in this exciting field.

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