An adult daycare center is a non-residential daycare facility that provides support in the area of health, nutrition, social, and daily living needs of adults in a professionally staffed, group setting. Adult daycare is designed to provide adults with transitional care and short-term rehabilitation especially when they are discharged from the hospital or when their family members are not around to take care of them.
Available data shows that currently, there are over 7,500 adult day care programs operating in the United States, up from 4,601 in 2010, and they provide care for more than 282,000 elderly Americans. Of these 4,800 registered daycares, 78 percent operate as not-for-profit while 22 percent of the centers operate as for-profit corporations.
Steps on How to Write an Adult Day Care Business
Table of Content
Lady Annie® Adult Day Care, LLC is an adult day care facility that will be based in Silver Spring, Maryland, and the organization will be committed to providing care and companionship for older adults who need assistance or supervision during the day.
Our programs are designed to offer relief to family members and caregivers, allowing them to handle personal business, or just relax while knowing their relative is well cared for and safe. Lady Annie McKenzie is the founder and CEO of Lady Annie® Adult Day Care, LLC.
a. Our Products and Services
Lady Annie® Adult Day Care, LLC will provide a facility and a wide range of services that revolve around;
- Care-planning services
- Daily living assistance (day only)
- Nursing and health services
- Therapeutic services
- Meal services
- Transportation services
- Social activities.
b. Nature of the Business
Our adult daycare facility will operate as a nonprofit organization, we will source finance from donor organizations, private donations, and relevant government agencies. But in some cases, we will charge residents or their family members for the services rendered, though we are designed not to make profits.
c. The Industry
Lady Annie® Adult Day Care, LLC will operate in the adult day care industry.
d. Mission Statement
Our mission is to provide a safe and secure adult daycare facility that is geared toward taking care of old people.
e. Vision Statement
Our vision of establishing our adult daycare facility is to give elderly people all the support and care they need and to make elderly people not miss their families when they are left in our care.
f. Our Tagline (Slogan)
Lady Annie® Adult Day Care, LLC – Taking Care of The Elderly!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Lady Annie® Adult Day Care, LLC will be formed as a nonprofit corporation at the state level and we will apply for a 501(c)(3) tax exemption at the federal level.
h. Our Organizational Structure
- Head of Daycare (President)
- Daycare Manager (Administrator)
- Nurse’s Aides
- Caregivers/Social Worker
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Lady Annie McKenzie (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Rev Fr. Romanus Marcus (Board Member) 19 Percent Shares
- John Bosco (Board Member) 10 Percent Shares
- Aaron Barosh (Board Member) 10 Percent Shares
- Laura Michael (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for an adult day care facility
- Highly experienced and qualified employees and management
- Access to a pool of donor organizations
- Highly secured and clean facility
- Highly structured programs that are aimed at helping families keep their elderly people within the period they will be away.
- Inability to initially manage the organization without the support of donations and grants
- Financial Limitations
- Operating from a leased facility
- Inability to retain our highly experienced and qualified employees longer than we want
- The aging population in the United States is growing hence providing opportunities for adult daycare facilities
- Government funding for Medicare and Medicaid and private donations are anticipated to increase support for adult daycare facilities.
- The adult daycare industry is projected to reverse its decline trend and increase in the coming years.
- Finance from donor organizations, individuals, and relevant government agencies et al.
i. How Big is the Industry?
The adult daycare industry is a big one. Statistics show that the market size of the adult daycare industry was $5 billion in 2023.
ii. Is the Industry Growing or Declining?
The adult daycare industry is a growing industry. The market size of the industry in the US grew 5.5% per year on average between 2017 and 2022. With more than 7,500 Adult Day centers across the United States, the industry is a growing source of long-term care.
iii. What are the Future Trends in the Industry
The adult daycare industry is changing, and players in the industry are improvising. No doubt, technology, and customized software will change the landscape of the industry going forward.
iv. Are There Existing Niches in the Industry? If YES, List them
No, there are no niche ideas when it comes to the adult daycare facility line of business.
v. Can You Sell a Franchise of your Business in the Future?
Lady Annie® Adult Day Care, LLC has plans to sell franchise in the nearest future and we will target major cities with a growing number of elderly people in the United States of America.
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance (the community may not want such a facility in their community)
- Liability problems
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Senior Care Inc.
- Right at Home
- SarahCare Adult Day Care Center Services
- Greenacres Adult Day Care
- Interim HealthCare
- Home Care Assistance
- HomeWell Senior Care
ii. Is There a Franchise for Adult Day Care Facility? If YES, List them and their cost
Yes, there are franchise opportunities for adult daycares, and here are some of them;
- Right at Home (Total startup costs – $75,000 to $100,000)
- SarahCare Adult Day Care Center Services (Investment $212,427 – $513,427)
- Elder-Well® Franchisee
- Greenacres Adult Day Care Franchise
- Interim HealthCare (Initial Investment – $125,500 to $198,500)
- Home Care Assistance ($77,775 to $245,250)
- HomeWell Senior Care (Investment $75,000 – $120,000)
- BrightStar ($95,000 to $163,000).
iii. Are There Policies, Regulations, or Zoning Laws Affecting Adult Day Care Facility in the United States?
Yes, and zoning laws require adult daycare operators to follow specific rules and regulations, including some that apply only to home daycare. These laws are designed to address the unique circumstances of a business operating in a residential area.
Many laws seek to minimize the negative impact on the community, which can be affected by increased vehicle traffic and neighborhood noise. Other laws regulate how properties are altered, including the addition of business signage and the construction of fencing and playground equipment.
Zoning laws also provide special requirements designed to address special circumstances related to these businesses. Please note that in many communities, zoning laws require adult day care providers to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the home daycare meets the zoning rules for the community. Permits also ensure that all adult daycare centers are properly licensed by county or state agencies.
a. Who is Your Target Audience?
i. Age Range
Our target market is elderly people that are from 65 years and above.
ii. Level of Educational
We don’t have any restrictions on the level of education of those we will accommodate in our adult day care facility.
iii. Income Level
We don’t have any cap on the income level of those we will accommodate in our adult day care facility. Besides, most people who are admitted into adult daycare facilities have no source of income because they are retired.
There are no restrictions when it comes to the ethnicity of the people we will welcome in our adult day care facility.
There is no restriction when it comes to the language spoken by the people we will welcome in our adult day care facility, but we will prefer people that speak English and Spanish.
vi. Geographical Location
Anybody from any geographical location will be welcomed in our adult daycare facility.
Lady Annie® Adult Day Care, LLC will not restrict any elderly person from accessing our facility and services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch The Attention of Elderly People.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Develop Your Business Directory Profiles
- Build Relationships With Other Nonprofits and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Broadcast Marketing -Television & Radio Channels.
- OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (coupon books, billboards), and referral (also known as word-of-mouth marketing).
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Start using chatbots.
- Create a personalized experience for our adults
- Create an efficient content marketing strategy.
- Create a community for our donors and volunteers.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on the relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
When working out our pricing strategy, Lady Annie® Adult Day Care, LLC will make sure it covers upkeep and medications for each elderly person. All our pricing strategies will reflect;
- Cost-Based Pricing
- Value-Based Pricing
- Competition-Based Pricing.
Sales and Distribution Plan
a. Sales Channels
Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, religious organizations, nonprofit organizations, and charities to help refer elderly people to us.
Lady Annie® Adult Day Care, LLC will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced and promoted to our adults, their families, and donors.
b. Inventory Strategy
The fact that we will need toiletries, medications, change of beddings, and foodstuff per time means that Lady Annie® Adult Day Care, LLC will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Lady Annie® Adult Day Care, LLC will make available to her donors and contributors;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Lady Annie® Adult Day Care, LLC, we offer services, and the nature of services we offer does not accommodate a return policy, but we guarantee our clients of the comfort of their aged family members.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our clients. We will work with effective CRM software to be able to achieve this. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants and fundraising strategies that will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at an Adult Daycare Facility?
- The facility is open for the day
- The facility is cleaned and prepared for the day’s activities
- Adults are welcome
- They are provided with programs that will help them to socialize and bond with other adults.
- House chores are carried out at different intervals during the day
- Administrative works are done
- The facility is closed for the day and family members come to pick up their family members.
b. Production Process
There is no production process when it comes to an adult daycare facility business.
c. Service Procedure
There is no service procedure when it comes to an adult daycare facility business.
d. The Supply Chain
Lady Annie® Adult Day Care, LLC will rely on social workers, counselors, religious organizations, and government agencies to refer elderly people to us. So also, we have been able to establish business relationships with wholesale supplies of beddings, toiletries, medications, foodstuff et al.
e. Sources of Income
Lady Annie® Adult Day Care, LLC will make money from;
- Contributions from partners and donors
- Family members of the aged in our daycare
- Grants from government agencies and charity organizations
- Community support.
The cost to live in our adult day care varies and it will range from about $100 to over $2,000 per month.
a. Amount Needed to Start Our Adult Daycare Facility?
Lady Annie® Adult Day Care, LLC would need an estimate of $450,000 to successfully set up our adult day care facility in the United States of America. Please note that this amount includes the salaries of our staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $5,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $200,000.
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- Start-up inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $80,000
- Website: $600
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Lady Annie® Adult Day Care, LLC will not build a new facility for our adult daycare; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running an Adult Day Care Facility?
- Cost of stocking up supplies such as beddings, medications, toiletries, and beddings et al
- Cost of food supplies and ingredients
- Utility bills (gas, internet, phone bills, signage and sewage et al)
- Salaries of employees
e. What is the Average Salary of your Staff?
- Head of Day Care (President) – $45,000 Per Annum
- Day Car Manager (Administrator) – $36,034 Per Annum
- Nurse’s Aides – $29,660 Per Annum
- Caregivers/Rehab Counselors – $32,878 Per Annum
- Fundraiser – $36,500 Per Annum and based on target
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
- Security Guard – $22,000 Per Annum
f. How Do You Get Funding to Start an Adult Daycare Facility?
- Raising money from personal savings and sale of personal stocks and properties
- Applying for a loan from your bank/banks
- Pitching our business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from our family members and friends.
a. How Much Should You Charge for your Service?
At Lady Annie® Adult Day Care, LLC, it is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donor agencies, community, and government support.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $450,000
c. Estimated Profit You Will Make a Year?
Lady Annie® Adult Day Care, LLC will operate as a nonprofit organization.
d. Profit Margin of an Adult daycare facility
Lady Annie® Adult Day Care, LLC is designed not to make profits hence we don’t have a profit margin for our services.
a. How do you intend to grow and expand?
Lady Annie® Adult Day Care, LLC will grow our adult day care facility by first opening other outlets in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Lady Annie® Adult Day Care, LLC plans to expand first to Sumter – Florida, and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, and Catron New Mexico.
The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest number of elderly people in the United States. According to Pew Research, 115,350 elderly people live in Sumter – Florida and that is about 52.9 percent of the population of the county which is the highest in the whole of the United States of America.
The founder of Lady Annie® Adult Day Care, LLC plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the organization can be placed under a trusted hand when the founder retires.
The goal of combining two or more charitable organizations that are into adult daycare or even senior care and group homes on a global scale is to try and achieve synergy – where the whole (the new organization) is greater than the sum of its parts (the former two separate entities) and with a well-structured management team and board of trustees.