If there is one thing that is certain, it is that America is getting older. The Federal Government predicts that around one-fifth of the population will be aged 65 or older by 2050, something that will cause demand for specialist senior care to soar. That’s why now is the time for future-focused entrepreneurs to learn how to open a nursing home.
Not only will you be anticipating a growing market need, but you will also be providing an essential service that could improve the quality of life for countless families. But the important question remains: how much does it cost to start a nursing home? Read our two-minute explainer to find out.
1. How Much Does it Cost to Start a Nursing Home: The Basics
To open a nursing home, you will need cash and lots of it. According to this business expert estimate, your all-in costs for setting up a mid-level nursing home in America will run up to about $750,000. For larger facilities with specialist expertise, your budget could easily exceed $2 million. These estimates are inclusive of equipment, licenses, insurance, staff, premises, and inventory. Of course, your overall costs will differ significantly depending on the cost of living in your state and the type of nursing home you wish to own and operate.
2. Staffing Costs
When learning how to start a nursing home, it is important to know that staffing costs are probably the most important to keep in mind. This is because the type of staff you hire and the size of your staff will play the largest role in your overall costs. For example, a small team of basic care staff can easily be hired for under $10,000 per month. However, a large team of staff that includes specialist senior care experts and doctors will quickly run over $100,000 a month.
3. Franchising Costs
Much like any other type of business in America, you can opt to purchase a franchise in a larger chain of elder care facilities. The amount you will pay for the franchise will vary depending on a lot of factors. A smaller franchise could charge $75,000 in startup costs, while a larger one could charge you more than $500,000. However, opting for the franchise route allows you to leverage the expertise and reputation of a more experienced provider.
4. Growth Costs
As with all small business startup costs, your growth strategy should be sufficiently financed. This means putting aside the required funds for essential growth costs such as marketing and R&D. It is important to strike the right balance here, spending money on, say, a marketing agency that delivers results without breaking the bank. You can consult this dedicated senior living marketing platform for more information on financing and budgeting.
Start a Business That America Actually Wants
When you know how much does it cost to start a nursing home, you can take steps towards making it a reality. If you want to start a business that Americans actually want and need, we have the insights and inspiration for you. Make sure to consult our expert Company guides to learn more.