A maternity group home or preferably the Maternity Group Home Program (MGH) is a niche-group home facility that supports community-based, adult-supervised, transitional living arrangements for homeless pregnant or parenting young women who are between the ages of 16 and 22, as well as their dependent children.
The maternity group home business is designed to provide an environment where young mothers can function independently in the community. Available statistics show that there are over 400 maternity homes in the United States as of 2022.
Steps on How to Write a Maternity Group Home Business Plan
Table of Content
1. Executive Summary
Safe Hands® Maternity Group Home Facility, Inc. is a maternity group home that will be based in Charleston, West Virginia. The organization will provide an apartment for ladies and their children. The resident under our care will be under the supervision of a live-in Resident Advisor. Our program will provide individualized instruction in life skills and appropriate child development and parenting.
We will also operate an on-site clinic that provides health education and preventative services for the girls and their children. We will house between 5 to 15 pregnant girls (excluding their children) per time in a family setting that will enable them to enjoy full use of community resources, including health care, social, and recreational opportunities.
Mrs. Florence John is the founder and CEO of Safe Hands® Maternity Group Home Facility, Inc.
a. Our Products and Services
Safe Hands® Maternity Group Home Facility, Inc. will provide a facility and a wide range of services that revolve around;
- Supervised housing for pregnant young girls and their kids
- Life skills training
- Mental health counseling
- Medical screening and referrals
- Case management
- Pregnancy and parenting instruction
b. Nature of the Business
Our Group Home facility will operate as a nonprofit organization. We will source finance from donor organizations, individuals, and relevant government agencies.
But in some cases, we will charge residents or their family members for the services rendered howbeit, we are designed not to make profits.
c. The Industry
Safe Hands® Maternity Group Home Facility, Inc. will operate under the group homes industry.
d. Mission Statement
Our mission is to provide safe and secured maternity housing programs that support young girls in need of a stable home environment to reach their goals in education, employment, financial stability, prenatal care, health, and more.
e. Vision Statement
We envision a world where homeless pregnant girls live in a family-style residence for a maximum of 18 months and work closely with case managers to accomplish several goals.
f. Our Tagline (Slogan)
Safe Hands® Maternity Group Home Facility, Inc. – Every Homeless Pregnant Girl Deserves Care!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Safe Hands® Maternity Group Home Facility, Inc. will be formed as a nonprofit corporation at the state level and will apply for 501(c)(3) tax exemption at the federal level.
h. Our Organizational Structure
- Head of Group Home (President)
- Matron/House Manager (Administrator)
- Nurse’s Aides
- Caregivers/Social Worker
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Florence John (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Lovelyn Wade (Board Member) 19 Percent Shares
- Annable Humprey (Board Member) 10 Percent Shares
- Sharon Greene (Board Member) 10 Percent Shares
- Tessy Rohr (Board Member and Sectary) 10 Percent Shares.
- Ideal location for a maternity group home facility
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Donor Organizations
- Highly Secured and Clean Facility
- Well structured programs
- 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 staff longer than we want
- The population of homeless pregnant girls in the United States is growing
- Government funding and private donations are anticipated to increase for group homes.
- The group homes industry is projected to reverse its decline trend and increase in the coming years.
- A pool of finance from donor organizations, individuals, and relevant government agencies.
i. How Big is the Industry?
The group homes industry that maternity group home is a subset of is worth over $8 billion in the United States and there are about 9,623 licensed and registered Group Homes with a workforce of about 124,872 scattered all across the United States.
ii. Is the Industry Growing or Declining?
Available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline of 8.1 percent in 2020 due to declining federal funding and donations. Since many operators are nonprofit, maternity group homes rely on federal funding and private donations. Since unemployment and consumer spending are anticipated to decline in 2020, leading to fewer donations, profit is set to decline.
Please note that in the coming year (2022), the revenue for the industry is anticipated to decline slightly, but as the economy recovers and COVID-19 cases subsequently drop in line with the nationwide vaccination rollout, industry revenue will likely increase.
iii. What are the Future Trends in the Industry
The group homes industry is changing, and players in the industry are improvising. No doubt, technology and customized software, and of course national campaigns against teen pregnancy will change the landscape of the maternity group homes industry going forward.
iv. Are There Existing Niches in the Industry?
No, there are no niche ideas when it comes to the maternity group home line of business. This is so because maternity group home is a niche idea in the group homes industry.
v. Can You Sell a Franchise of your Business in the Future?
Safe Hands® Maternity Group Home Facility, Inc. has plans to sell franchises in the nearest future and we will target major cities with growing numbers of homeless pregnant young girls in the United States of America.
- Lack of support from stakeholders and the government
- Drop in the number of teen pregnancies
- Unfavorable government policy and regulations.
- Community resistance (May not want such facility to be located in their community)
- Liability problems
- The arrival of competitors within our market space.
i. Who are the Major Competitors?
- Yes Youth Emergency Services
- Valley Youth House
- Viola’s House
- The Children’s Village
- Miryam’s House
- Mother Child
- Good Counsel Homes
- Alexandria’s House
- Hope House Colorado.
ii. Is There a Franchise for Maternity Group Home?
There is no known maternity group home franchise currently.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Maternity Group Homes?
Yes, there are county and state regulations or zoning laws for group homes (maternity group home facility inclusive). The law in the United States states that before a non-medical home care facility such as a maternity group home can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week.
So also, a standard maternity group home is expected to have a house manager, night manager, weekend activity coordinator, and 2 or more caregivers depending on the size of the facility.
a. Who is Your Target Audience?
i. Age Range
Our target market is for young pregnant homeless girls between the age of 16 and 22
ii. Level of Educational
We don’t have any restriction on the level of education of those we will accommodate in our maternity group home.
iii. Income Level
We don’t have any cap on the income level of those who we will accommodate in our maternity group home. Besides, most people who are admitted to a maternity group home have no source of income because they are homeless in the first place.
There is no restriction when it comes to the ethnicity of the people we will welcome to our maternity group home.
There is no restriction when it comes to the language spoken by the people we will welcome to our group home, but we will prefer people that speak English and Spanish.
vi. Geographical Location
Any young girl from any geographical location will be welcomed in our maternity group home.
Safe Hands® Maternity Group Home Facility, Inc. will not restrict any homeless pregnant girl 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 Pregnant homeless girls.
- Tap Into Text Marketing.
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels Into a Resource
- Develop Your Business Directory Profiles
- Build Relationships With Other Nonprofits and related organizations in our Area
i. Traditional Marketing Strategies
- Marketing through Direct Mail.
- 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 (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
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 teens (housemates).
- 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, Safe Hands® Maternity Group Home Facility, Inc. will make sure it covers upkeep, medications, premium, economy or value, and full rehab package for each homeless pregnant girl and their child. In all our pricing strategy 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 charity to help refer pregnant homeless girls to us.
b. Inventory Strategy
The fact that we will need toiletries, medications, beddings, and foodstuffs means that Safe Hands® Maternity Group Home Facility, Inc. 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 Safe Hands® Maternity Group Home Facility, Inc. 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 Safe Hands® Maternity Group Home Facility, Inc., we offer services, and the nature of services we offer does not accommodate return policy, but we will guarantee our housemates that they will have a comfortable time with us.
e. Customer Support Strategy
Our customer support strategy will involve seeking customers’ feedback. This will help us provide excellent customer service to all our housemates and donors, it will help us to first understand their needs, experiences, and pain points. We will also work with an effective CRM software to be able to achieve our customer support strategy.
Our operational plan will cover capacity planning, location planning, layout planning, quality planning, and methods planning.
Overall, 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 boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Maternity Group Home?
- The facility is open for the day
- The facility is cleaned and prepared to receive any pregnant young girl experiencing housing crisis or homelessness
- Housemates are welcomed and prepped for the day
- Housemates are provided with programs that will help them go through the process of safe delivery and effectively care for their babies.
- House chores are carried out at different intervals during the day
- Administrative works are done
- The facility is closed for the day and housemates go back to their rooms to get it arranged and then go to bed.
b. Production Process (If Any)
There is no production process when it comes to a maternity group home business.
c. Service Procedure (If Any)
There is no service procedure when it comes to a maternity group home business.
d. The Supply Chain
Safe Hands® Maternity Group Home Facility, Inc. will rely on trained social workers, counselors, religious organizations, and government agencies in our city to refer pregnant homeless girls to us. So also, we have been able to establish business relationships with wholesale suppliers of beddings, toiletries, medications, and foodstuffs et al.
e. Sources of Income
Safe Hands® Maternity Group Home Facility, Inc. will make money from;
- Contributions for partners and donors
- Grants from government agencies and charity organizations
- Community support.
a. Amount Needed to Start Our Maternity group home?
Safe Hands® Maternity Group Home Facility, Inc. would need an estimate of $650,000 to successfully set up our maternity group home in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Cost 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 including, 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?
Safe Hands® Maternity Group Home Facility, Inc. will not build a new facility; we intend to start with a long-term lease and after 10 years, we will start the process of acquiring our own facility.
d. What are the Ongoing Expenses for Running a Maternity Group Home?
- Cost of stocking up supplies such as 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? List the Job Position and their proposed salary based on industry rate and your startup capital
- Head of Group Home (President) – $45,000 Per Annum
- Matron/House 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 a Maternity Group Home
- Raise money from personal savings and sale of personal stocks and properties
- Apply for a loan from your bank/banks
- Pitch business ideas and apply for business grants and seed funding from the government, and donor organizations
- Source for soft loans from family members and friends.
a. How Much Should You Charge for your Service?
At Safe Hands® Maternity Group Home Facility, Inc. we will make our facility free of charge since we hope to attract enough grants and funds from donors.
- First Fiscal Year (FY1): $500,000
- Second Fiscal Year (FY2): $620,000
- Third Fiscal Year (FY3): $750,000
b. Estimated Profit You Will Make a Year?
Safe Hands® Maternity Group Home Facility, Inc. will operate as a nonprofit organization.
c. Profit Margin of a Maternity Group Home
Safe Hands® Maternity Group Home Facility, Inc. 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?
Safe Hands® Maternity Group Home Facility, Inc. will grow our maternity group home 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)
Safe Hands® Maternity Group Home Facility, Inc. plans to expand first to Denver, Colorado, and then to Washington, D.C., Tulsa, Oklahoma, Oklahoma City, Oklahoma, Baltimore, Maryland, Kansas City, Missouri, and Fayetteville, North Carolina.
The reason why we intend to expand to these geographical locations is that available statistics show that the cities listed above have the highest number of pregnant homeless girls in the United States.
The founder of Safe Hands® Maternity Group Home Facility, Inc. plans to exit the business via family succession. We have placed structure and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another without hitches.