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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.

business plan for adult day care

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.

business plan for adult day care

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.

business plan for adult day care

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.

business plan for adult day care

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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business plan for adult day care

Home » Healthcare » Adult Daycare

How to Start an Adult Daycare [Business Plan]

An adult daycare center is a non-residential daycare facility that provides support in the areas 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 this 4,800 registered daycare, 78 percent operate as not-for-profit while 22 percent of centers operate as for-profit corporations.

Steps on How to Start an Adult Day Care Business

1. conduct market research.

If you intend to start an adult daycare business, then you must make sure you conduct thorough market research. It is important to conduct research because it will help you carry out a careful and detailed study of the problem you intend to solve with your adult daycare, using scientific methods. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry in which you want to start your business.

a. Who is the Target Market for Adult Day Care?

The target market for an adult day care are adults who are suffering from;

  • Cerebral palsy
  • Down syndrome
  • Emotional disturbance
  • Reading and learning disabilities
  • Intellectual disabilities
  • Demographics should be included
  • Pervasive developmental disorder
  • Speech and language impairments
  • Spina bifida
  • Traumatic brain injury
  • Visual impairments

b. Is Adult Day Care a Profitable Business?

Yes, the adult daycare business is profitable. Statistics show that the market size, measured by revenue of the adult daycares industry sits at $5 billion. Demand for adult day care centers is increasing with the need for assistance in old age.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to adult day care services and they are;

  • Social services adult day care model
  • Medical services adult day care model
  • Social and medical services adult day care model

d. Who are the Major Competitors?

  • Senior Care Inc.
  • Easterseals

e. Are There County or State Regulations or Zoning Laws for Adult Day Care Business?

Yes, and zoning laws require adult daycare operators to follow specific rules and regulations. 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.

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 day care meets the zoning rules for the community. Permits also ensure that all adult day cares are properly licensed with the county or state agencies.

f. Is There a Franchise for Adult Day Care Business?

Yes, there are franchise opportunities for adult day care. 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)

g. What Do You Need to Start an Adult Day Care Business?

  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • A Well-Equipped Day-Care Facility
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • Supplies (Detergents, Toiletries, Disinfectant, Hand Gloves and more)
  • Startup and Working Capital

Memorable Business Name ideas for Adult Day Care

  • Arit Tim® Adult Day Care, LLC
  • Martins® Adult Day Care, LLC
  • We Care® Adult Day Care, LLC
  • Princess Diana™ Adult Day Care, LLC
  • Esther Lane® Adult Day Care.
  • Baroness Elizabeth® Adult Day Care, LLC
  • Lady Annie® Adult Day Care, LLC
  • Peter Nelson® Adult Day Care
  • Comfort Care® Adult Day Care
  • Ronald Magdalene® Adult Day Care, LLC
  • Maria De La Rosa® Adult Day Care, LLC
  • Anne George™ Adult Day Care
  • Bridget Decoster™ Adult Day Care
  • Inner City® Adult Day Care, LLC
  • Well Palm® Adult Day Care
  • Jacinta Borrow® Adult Day Care
  • Green Bay© Adult Day Care
  • Georgina Paulson™ Adult Day Care, LLC
  • Jill Noel™ Adult Day Care.
  • Madonna Whyte® Adult Day Care

Register Your Business

A. what type of business structure is best for adult day care.

Even though there are several options when it comes to the business structure of an adult day care, most players in this line of business consider an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.

b. Steps to Form an LLC

  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.

c. What Type of License is Needed to Open an Adult Day Care?

  • General Business License
  • Group Family Child Care License
  • Health and Safety Permit
  • Zonal Permits
  • Director’s License
  • State Facility Inspections
  • Operational State Facility Inspections (Building Permits)

d. What Type of Certification is Needed to Open an Adult Day Care?

Social Adult Day Care Certification.

e. What Documents are Needed to Open an Adult Day Care?

These are some of the basic legal documents you need to legally run an adult daycare in the United States of America;

  • Business and Liability Insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval
  • Certificate of Incorporation
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLC
  • Insurance Policy
  • Online Terms of Use (if you have a website)
  • Online Privacy Policy Document (for online payment portal)
  • Company Bylaws
  • Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting an adult day care, usually you may not need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start an adult day care.

When it comes to starting an adult daycare business, the startup costs vary. It could range from $80,000 (if you are opting for a franchise) to over $500,000. This is because the startup inventory is on the high side.

b. What are the Costs Involved in Starting an Adult Day Care

  • 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 – $250,000.
  • Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
  • Operational Cost (salaries of employees, payments of bills et al) – $60,000
  • start-up inventory – $15,000
  • Store Equipment (cash register, security, ventilation, signage) – $4,750
  • Furnishing and Equipping – $80,000
  • Website: $600
  • Miscellaneous: $5,000

c. What Factors Determine the Cost of Opening an Adult Day Care?

  • The type of adult day care business
  • The choice of location
  • The required licenses and permits
  • The type of facility
  • Additional services offerings
  • The number of residents they want to admit
  • The cost of hiring and paying a business consultant and attorney
  • The cost for branding, promotion, and marketing the adult daycare business
  • The cost for furnishing and equipping the adult daycare
  • The cost for insurance policy covers
  • The cost for registering the business
  • Source of your supplies and ongoing expenses
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms

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

It is not compulsory to build a new facility for your adult day care, but if you have the finance, it will pay you to build your facility. The truth is that building a facility for your adult day care will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of an Adult Day Care?

  • Rent and lease
  • Cost of stocking up supplies such as medications, toiletries, disinfectants, hand gloves, beddings et al
  • Utility bills (phone bills, signage and software renewal fees et al)
  • Salaries of employees

f. What is the Average Salary of your Staff?

  • Head of Adult Day Care (President) – $45,000 Per Annum
  • Day Care Administrator – $36,034 Per Annum
  • Medication Management Counselors – $35,600 Per Annum
  • Nurse’s Aides – $30,660 Per Annum
  • Home Health Caregivers/Home Caregivers/County Aging Workers – $32,878 Per Annum
  • Account Officer – $35,000 Per Annum
  • Front Desk Officer – $28,000 Per Annum
  • Cleaners – $22,000 Per Annum
  • Security Guard – $22,000 Per Annum

g. How Do You Get Funding to Start an Adult Day Care

  • Raise money from personal savings and sale of personal stocks and properties
  • Raise money from investors and business partners
  • Sell shares to interested investors
  • Apply for a loan from your bank/banks
  • Pitch your business idea and apply for business grants and seed funding from, government, donor organizations, and angel investors
  • Source for soft loans from your family members and your friends.

Write a Business Plan

A. executive summary.

We Care® Adult Day Care, LLC is a registered for-profit adult day care that will be based in Tallahassee – Florida, USA. Our adult daycare center is designed to provide 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 go to work, handle personal business, or just relax while knowing their relatives are well cared for and safe.

b. Products and Service

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

c. Mission Statement

Our mission is to build a highly successful, adult daycare center that provides community-based day health services for the elderly and disabled. We are going to provide services that include living assistance, nursing, therapy, meals, and social activities. We will also provide quality supervised care at affordable costs.

Vision Statement

Our vision is to create an international model for the adult daycare industry.

d. Goals and Objectives

The goals and objectives of an adult day care center are to provide quality care and enriching services where adults who need care can be taken care of during the day.

e. Organizational Structure

  • Head of Adult Day Care (President)
  • Adult Day Care Administrator
  • Medication Management Counselors
  • Nurse’s Aides
  • Home Health Caregivers/Home Caregivers/County Aging Workers Fundraiser
  • Account Officer
  • Front Desk Officer
  • Security Guards

Marketing Plan

A. swot analysis.

The strength of the adult daycare facility lies in the fact that they have a team of qualified professionals manning various job positions in the organization. Also, the location, the business model they will be operating on, well-equipped facility and their excellent customer service culture will definitely count as a strong strength for the facility.

Our Adult Daycare is a new business that is owned by a family, and they may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility.

Opportunities:

The opportunities that are available to adult day care facilities are unlimited because we have loads of adults over 60 who would one day need the services of an adult daycare in the United States.

Just like any other business, one of the major threats you are likely going to face is an economic downturn and unfavorable government policies. It is a fact that an economic downturn affects purchasing/spending power. Another threat that may likely confront an adult daycare business is the arrival of a new and bigger adult daycare in the same location where your facility is located.

b. How Do Adult Day Care Centers Make Money?

Adult daycare centers makes money by charging their clients (for-profits) or from support for donor agencies and charities (not-for-profit).

Please note that funding for adult day care comes from a variety of public and private sources. At the Federal and State levels, funds are available from Medicaid, Social Services Block Grants, and Older Americans Act monies.

c. Payment Options

  • 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. Sales & Advertising Strategies

  • Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
  • Sponsor relevant community-based events/programs for the elderly
  • Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your facility
  • Install your Bill Boards in strategic locations all around your city or state
  • Distribute your fliers and handbills in target areas
  • Contact households, businesses, and every adult in the neighborhood where your adult daycare will be located informing them about your business
  • List your adult day care in local directories / yellow pages
  • Advertise your adult daycare on your official website and employ strategies that will help you pull traffic to the site.
  • Position your Flexi Banners at strategic positions in the location where your adult daycare is located.
  • Ensure that all your staff members wear your branded shirts and all your vehicles and trucks/vans are well branded with your company logo.

Financial Projection

A. how much should you charge for your service.

Our average daily cost of adult day services will be $70.

b. How Much Profit Do Adult Day Care Owners Make a Year?

It depends, but available reports show that owners of adult daycare centers profit an average of $37,000 per year. While some owners of special daycare centers report earning over $60,000 profit per year, the other side of the report shows that an adult day care can make well over $50,000.

c. What Factors Determine the Amount of Profit to Be Made?

  • The capacity of the adult daycare
  • The location the adult daycare is covering
  • The management style of the adult daycare
  • The business approach of the adult daycare
  • The advertising and marketing strategies adopted by the adult daycare
  • The number of years the adult daycare is in business

d. What is the Profit Margin of an Adult Day Care?

The profit margin of an adult day care is not fixed; to a large extent, it will depend on some factors that are unique to your location if you are operating as a for-profit organization. Please note that most adult daycares operate as nonprofits hence they are not expected to make profits.

e. What is the Sales Forecast?

Below is the sales forecast of an adult daycare. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year: $240,000

Second Fiscal Year:  $350,000

Third Fiscal Year: $480,000

Set Up your Office

A. how do you choose a perfect location for adult day care.

  • The demography of the location especially as it relates to the aging population
  • The demand for adult day care services in the location
  • The purchasing power of residents of the location
  • Accessibility of the location
  • The number of adult daycares and other facilities like senior care, nursing homes and sober living et al in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al

b. What State and City are Best to Open an Adult Day Care?

  • Las Vegas, Nevada
  • Los Angeles, California
  • Chicago, Illinois
  • Boston, Massachusetts
  • Silver Spring, Maryland
  • Rowland Heights, California
  • Portland, Oregon
  • New York City, New York
  • Atlanta, Georgia
  • Dallas, Texas

c. What Equipment is Needed to Operate an Adult Day Care?

When starting an adult daycare, you will not need any technical gadgets except office and nursing equipment, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, an emergency plan, among other things.

But in setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, scanner, and fax machine. These machines, equipment, and tools can be purchased as fairly used especially if you have limited finance to meet your budget.

Hire Employees

As regards the number of employees you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard adult daycare business on a large scale, you would need the services of the following professionals; the head of daycare (you can occupy this position), adult daycare administrator, medication management counselors, nursing aides, home health caregivers, front desk officer, security guards, and cleaners.

Launch the Business Proper

You can decide to throw an opening party to officially launch your business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party. The bottom line is that with a proper launching of the adult daycare, you will be able to officially inform people in your city that your adult daycare is open for business.

a. What Makes an Adult Daycare Business Successful?

  • Ability to attract grants and funding from the government of your city or state or even the federal government
  • Disciplined and dedicated workforce
  • The heart to serve
  • Good facility and ambiance
  • A good relationship with stakeholders
  • Good care techniques and programs.

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

  • The adult daycare is open for the day
  • The facility is cleaned and prepared to welcome students
  • Students are welcomed
  • Students are provided with special care, nursing and other assistance in daily living and feeding
  • The school is closed for the day and family members come in to pick their wards

c. What Skills and Experience Do You Need to Build an Adult Daycare Business?

Here are some of the skills and experiences you would need to build an adult daycare business;

  • Good managerial and human development skills
  • Visionary Leadership
  • Strategy & Development
  • Team-building & Interpersonal Skills.
  • Excellent communication and negotiation skills.
  • Organizational skills.
  • Problem-solving ability.
  • Experience working as a social worker
  • Experience in the adult daycare industry
  • Experience in adult daycare administration.

More on Adult Daycare

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

By Nick Cotter Updated Feb 05, 2024

image of a adult day care business

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.

image of a adult day care business

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!

image of ZenBusiness logo

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.

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Senior Day Care Business Plan Template

Written by Dave Lavinsky

elderly daycare business plan template

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.   Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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7 Steps to Start an Adult Day Care

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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How To Start An Adult Day Care Center In 2023

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

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business plan for adult day care

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)

105 Great Adult Day Care Name Ideas

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Expertly Crafted Adult Day Care Center Business Plan Templates

Expertly Crafted Adult Day Care Center Business Plan Templates

Launching an adult day care center can be both rewarding and complex, with data indicating that nearly 60% of such businesses fail without a solid plan. Offering a well-crafted, professional business plan is key to navigating this challenging terrain. But how do you ensure the plan addresses core industry needs while attracting potential investors?

Expertly crafted adult day care center business plan templates serve as essential tools for success. These templates not only provide a structural roadmap but also incorporate industry standards and best practices. With a professional layout and detailed 5-year financial projections , these templates help streamline the startup process and secure crucial funding.

Significance of a Well-crafted Business Plan in Adult Day Care

A well-crafted business plan is crucial for an adult day care center . Without it, gaining investor confidence and securing funding can be challenging. A detailed business plan lays out a clear path forward and helps in setting achievable goals. Business plans help outline the mission and vision of the center, keeping teams aligned. A good plan includes detailed financial projections, showing potential profits and costs. This makes it easier to understand the financial viability of the business. Additionally, a business plan highlights market analysis and competitive landscape. Understanding the competition is vital to position your services uniquely. This helps in attracting more clients and providing better care. Another significant aspect is risk management. A well-thought-out plan identifies possible risks and offers strategies to mitigate them. Being prepared for challenges ensures the long-term success of the adult day care center.

Key Components of an Expertly Crafted Adult Day Care Center Business Plan

A well-structured business plan for an adult day care center is essential for success. It needs to include several key components that outline every aspect of the business. These components ensure the plan is comprehensive and effective.

Executive Summary

The executive summary gives a brief overview of the entire business plan. It should include the mission statement, the specific goals, and the key highlights of the financial projections. Investors often read this section first, so it needs to be compelling and clear. It typically includes information about the target market and the unique selling proposition. Highlight the services you will offer and what sets you apart from other day care centers. This section is crucial for grabbing the reader’s attention. Also, outline the ownership and management structure briefly. Identify the key members of the team and their roles. A well-written executive summary sets the tone for the rest of the business plan.

Market Analysis

Market analysis is vital for understanding the industry and your place in it. This section should include information about the target market, such as age groups and demographics. Understanding your audience is key to offering the right services. Also, analyze the competition. Look at their strengths and weaknesses to find gaps in the market you can exploit. This will help in positioning your services effectively. Include statistics and facts to back up your analysis. Use charts and tables where relevant to make the data more digestible. Solid market analysis can convince investors of the viability of your business.

Financial Projections

Financial projections provide a roadmap for the financial future of the business. This section should include revenue forecasts , expense estimates, and profit margins . Accurate financial projections are essential for attracting investors. Break down the start-up costs and ongoing expenses. This can include staffing, equipment, and facility maintenance. Clear and detailed financial plans help in managing the budget efficiently. Include a break-even analysis to show when the business will become profitable. This gives investors a timeline to understand the potential return on investment. Detailed financial projections are crucial for long-term planning.

Unveiling the Power of Templates for Adult Day Care Center Business Plan

Using a financial model template for your adult day care center business plan can save you significant time and effort. Templates provide a structured format, ensuring you don’t miss any crucial elements. This allows you to focus on the specific details of your business. Additionally, templates often come with pre-filled sections that guide you on what to include. This makes the process less overwhelming, especially for first-time business owners. Having a clear framework helps streamline the planning phase.

Templates can also improve the professionalism of your business plan. With standardized formatting and design, your plan looks polished and well-organized. This can make a better impression on investors and stakeholders. Many templates offer industry-specific statistics and relevant data. This can help in making more accurate market analyses and financial projections. Access to relevant information can enhance the overall quality of your business plan.

Checklist for Creating an Effective Adult Day Care Center Business Plan

Creating a comprehensive business plan requires attention to detail. Use this checklist to ensure all important elements are included. Following a checklist can make the process more manageable and organized.

  • Executive Summary – Start with a compelling summary that captures the essence of your business.
  • Market Analysis – Include detailed research about your target market, competitors, and industry trends.
  • Services Offered – Clearly outline the services your center will provide and how they meet client needs.
  • Marketing Strategy – Plan how you will attract and retain clients through various marketing channels.
  • Financial Projections – Provide projections for revenue, expenses, and profitability over the next few years.
  • Risk Management – Identify potential risks and strategies to mitigate them effectively.

Each section serves a distinct purpose in crafting a solid business plan. The executive summary sets the tone and provides a quick overview. A well-written summary can capture the reader’s attention immediately. Market analysis is crucial for understanding your position in the industry. Use data to back up your findings and include charts if necessary. This section helps in making informed decisions and strategic plans.

Detailing the services offered ensures that stakeholders know what to expect. Be specific about the types of care and activities your center will provide. This clarity can build trust and confidence among potential clients and investors. Marketing strategies are vital for attracting clients and keeping them engaged. Plan out your campaigns and the platforms you’ll use. This will guide your promotional efforts to be more effective.

Avoiding Common Mistakes When Using a Business Plan Template

Using a business plan template can simplify the process, but it’s easy to make mistakes. One common error is not tailoring the template to your specific business. Every business is unique, and your plan should reflect that. Another mistake is overlooking the importance of detailed financial projections. Templates often provide a basic outline, but you need to dig deeper. Ensure your financial data is accurate and thoroughly researched.

Failing to update the template regularly can also be a problem. As your business evolves, your plan should too. An outdated plan can mislead investors and stakeholders. Many people forget to proofread their completed template. Errors in spelling and grammar can make your plan seem unprofessional. Always review your work to catch any mistakes.

Finally, don’t ignore the importance of a strong executive summary. This is often the first section that potential investors read. A weak summary can turn them off before they even get to the details.

Case Studies of Successful Adult Day Care Center Business Plans

Studying successful business plans can provide valuable insights and inspiration. One such case is the “Golden Years Adult Day Care.” They emphasized community engagement and personalized care services. This focus helped them attract a dedicated clientele and secure funding.

Another example is “Bright Days Senior Centers.” They implemented comprehensive market analysis and realistic financial projections in their plan. As a result, they gained investor confidence and scaled their operations quickly.

“Comfort Haven Day Care” focused on offering specialized services for memory care patients. Their business plan detailed unique programs and staff training. This niche focus allowed them to stand out in the competitive market.

Lastly, “Happy Horizons Care Center” prioritized transparency in their business plan. They included detailed information on funding allocation and operational costs. This transparency helped build trust with stakeholders and clients alike.

Frequently Asked Questions

This section addresses common questions related to crafting business plans for adult day care centers. The Q&A format provides clear, concise answers to help you understand the essentials.

1. How detailed should an adult day care center business plan be?

A detailed business plan is crucial for success, covering everything from market analysis to financial projections. It should include specific details about services, staffing, and daily operations.

The more comprehensive your plan, the easier it is to manage risks and seize opportunities. Investors are more likely to fund a well-documented plan that covers all aspects of the business.

2. What role do financial projections play in a business plan?

Financial projections provide an estimate of future earnings and expenses, helping you plan ahead. They are important for securing investments and loans since they show potential profitability.

Accurate financial forecasts can guide decisions on budgeting, staffing, and growth strategies. These projections offer insights into when the business will break even or become profitable.

3. Why is market analysis essential for a business plan?

Market analysis helps you understand your target audience and competition. It provides data on demographics, customer needs, and industry trends.

This information enables you to tailor services to meet client demands effectively. A thorough market analysis also helps identify gaps in the market that your center can fill.

4. How often should a business plan be updated?

A business plan should be updated regularly to reflect current conditions and new goals. Changes in market trends or finances may require tweaks in your strategy.

Regular updates keep the plan relevant and useful for decision-making. Reviewing it at least annually ensures alignment with your long-term objectives.

5. Can using templates improve the quality of a business plan?

Templates provide structured formats that ensure all critical elements are included in your business plan. They save time by offering pre-defined sections for easy customization.

Using a template can help maintain professional formatting and organization throughout the document. This makes your business plan clearer and more appealing to stakeholders.

Creating a comprehensive business plan for an adult day care center is essential for success. From market analysis to financial projections, every aspect needs meticulous attention. Utilizing expertly crafted templates can streamline this process, ensuring no detail is overlooked.

A well-thought-out plan not only attracts investors but also provides a clear roadmap for your business. Regular updates keep the plan relevant and aligned with your goals. With the right approach, your adult day care center can thrive and serve the community effectively.

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VIDEO

  1. Adult day care center is fastest growing business in New York

  2. A Day at The Strong House Adult Day Center

  3. Caregivers Corner 6

  4. Social Adult Day Care (SADC) Training Video

  5. Paying Your Social Adult Day Care (SADC) Fees by Credit Card

  6. Registering Your Social Adult Day Care (SADC)