A sober living house (SLH), which is also known as a sober home is a facility that provides safe housing and supportive, structured living conditions for people moving out of drug rehabilitation programs. Sober living houses serve as a transitional environment between such programs and mainstream society.
Many sober living facilities also accept people who are in recovery from substance use disorders but have not recently completed a rehabilitation program.
Available statistics show that in the United States of America alone, there are about 5,623 licensed and registered outpatient and inpatient facilities handling drug, alcohol, and substance addicts and they are responsible for employing about 126,263 employees. The industry rakes in a whooping sum of $10 billion annually with an annual growth rate of 4.9 percent.
Steps to Write a Sober Living Business Plan
Table of Content
1. Executive Summary
Crest Haven™ Sober Living Home Facility, Inc. is a sober living home facility that will be based in Elmwood Park, Illinois. The organization will be committed to providing alcohol and drug-free living environments for individuals attempting to maintain abstinence from alcohol and drugs.
Our organization will be structured around the 12-step programs and other recovery methodologies used by sober living facilities. Ellen Franklin is the founder and CEO of Crest Haven™ Sober Living Home Facility, Inc.
a. Our Services
Crest Haven™ Sober Living Home Facility, Inc. will provide safe housing and supportive, structured living conditions for people moving out of drug rehabilitation programs. We will provide a combination of freedom and structure to help our residents begin to readjust to life outside of rehab.
Our products and services are designed to help drug and alcohol addicts overcome drug and alcohol addiction and return to society as healthy, law-abiding, and productive members.
b. Nature of the Business
Our Sober Living facility will operate as a nonprofit organization, we will source our finance from donor organizations, individuals, and relevant government agencies.
c. The Industry
Crest Haven™ Sober Living Home Facility, Inc. will operate under the sober living home industry.
d. Mission Statement
Our mission is to provide safe and secured facilities and services geared towards helping drug and alcohol addicts overcome their addiction and return to society as healthy, law-abiding, and productive members of society.
e. Vision Statement
Our vision of to become the best sober living facility in the whole of Elmwood Park.
f. Our Tagline (Slogan)
Crest Haven™ Sober Living Home Facility, Inc. – Result Driven Sober Living Home!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Crest Haven™ Sober Living Home Facility, Inc. will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.
h. Our Organizational Structure
- Head of Sober Living (President)
- House Manager (Administrator)
- Medication Management Counselors
- Nurse’s Aides
- Caregivers/Rehab Counselors
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Ellen Franklin (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Anthony Martins (Board Member) 14 Percent Shares
- Gerad James (Board Member) 10 Percent Shares
- Hope Randel (Board Member) 10 Percent Shares
- Cynthia Morrison (Board Member and Sectary) 10 Percent Shares.
- Ideal Location for sober living home facility
- Highly Experienced and Qualified Employees and Management
- Access to Pool of Donor Organizations
- Highly Secured and Clean Facility
- Highly structured programs aimed at overcoming addiction in record time.
- Financial Constraints
- A new facility that is just starting out
- Inability to initially run and manage the organization without the support of donations and grants
- Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
- Inability to retain our highly experienced employees longer than we want
- Elmwood Park has loads of drug and alcohol addicts who are eager to get free from their addiction.
- Elmwood Park is an ideal location for sober living homes
- We will be able to pool finance from donor organizations, individuals, and relevant government agencies.
i. How Big is the Industry?
The sober living home industry is indeed a big industry that is worth over $10 billion in the United States.
ii. Is the Industry Growing or Declining?
Available statistics point to the fact that the industry is presently not growing. Earnings in the industry measured as earnings before interest and taxes, significantly decreased in 2020, directly resulting from the COVID-19 (coronavirus) pandemic. However, profit will likely begin to rebound in the coming year after the decline of the COVID-19 (coronavirus) pandemic.
iii. What are the Future Trends in the Industry
The sober living home industry is changing, and players in the industry are improvising. No doubt, specialized treatment, technology, and social media will change the landscape of the sober living industry going forward.
iv. Are There Existing Niches in the Industry?
Yes, there are niche ideas in the sober living home industry, and here are some of them;
- Providing inpatient and outpatient services
- Providing detoxification services
- Providing medication-assisted opioid therapy services
v. Can You Sell a Franchise of your Business in the Future?
Crest Haven™ Sober Living Home Facility, Inc. has plans to sell franchises in the nearest future and we will target major cities with high drug and alcohol abuse rates in the United States of America.
- Increase number of drug and alcohol-free citizens
- Lack of support from stakeholders and the government
- Unfavorable government policy and regulations.
- Community resistance
- Liability problems
- Continuously changing consumer demands
i. Who are the Major Competitors?
- The Doorway to Recovery – Premier Michigan Sober Living
- Sober Orange County
- Men’s transitional housing in Los Angeles County
- Women’s Sober Living Housing Network
- Promises Treatment Center
- Cirque Lodge
- Caron Foundation
- Sierra Tucson
- Hazelden Treatment Centers
- Betty Ford Center
- Pasadena Recovery Center
- Solutions Recovery Center
- Q Health Palm Beach
ii. Is There a Franchise for Sober Living?
- Vanderburgh Communities | Sober House Franchise
- SOBR House
iii. Are There Policies, Regulations, or Zoning Laws Affecting Sober Living Homes?
Yes, there are county or state regulations or zoning laws for sober living homes. The law in the United States states that before a non-medical home care facility such as a sober living 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 sober Living 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?
Men and women who are going through substance addictions.
i. Age range
Our target market falls within 18 to 55 years
ii. Level of Educational
We don’t have any restriction on the level of education of those we will accommodate in our sober living home.
iii. Income Level
We don’t have any cap on the income level of those we will accommodate in our Sober Living home. Besides, most people who are admitted to sober living homes have no source of income.
There is no restriction when it comes to the ethnicity of the people we will welcome into our sober living home.
There is no restriction when it comes to the language spoken by the people we will welcome to our sober living home.
vi. Geographical Location
People from any geographical location will be welcomed in our sober living home.
Crest Haven™ Sober Living Home Facility, Inc. will not restrict any inmate from accessing our services based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Make Use of Bill Boards.
- 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 that work with drug and alcohol addicts.
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), tradeshows, 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 customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- 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, Crest Haven™ Sober Living Home Facility, Inc. will make sure it covers upkeep, medications, premium, economy or value, and full rehab package for each inmate, 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 drug and alcohol addicts to us.
Crest Haven™ Sober Living Home Facility, Inc. will also leverage on the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we will have a visible, in-demand service that is competitively priced and promoted to our customers.
b. Inventory Strategy
The fact that we will need toiletries, medications, and foodstuffs means that Crest Haven™ Sober Living 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 Crest Haven™ Sober Living Home Facility, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Return Policy, Incentives, and Guarantees
At Crest Haven™ Sober Living Home Facility, Inc., we offer services, and the services we offer do not accommodate return policy and incentives, but we will guarantee that our inmates will see great transformations in their lives if they follow our rehabilitation program.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our residents, it will help us to first understand their needs, experiences, and pain points. We will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of 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 operational 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 a Sober Living Home?
- The facility is open for the day
- The facility is cleaned and prepared for the day’s activities
- Inmates are welcomed and prepped for the day
- Inmates are provided educational programs that will help them to properly integrate back into society, learn new skills and morals.
- The facility is closed for the day and inmates go back to their rooms.
b. Production Process (If Any)
There is no production process when it comes to sober living homes.
c. Service Procedure (If Any)
The service procedure of a sober living home starts by screening and proper documentation of drug and alcohol addicts seeking to overcome their addictions. Once all that is done, the inmates are taken through different rehabilitation and reintegration programs. Tasks are assigned and monitored.
d. The Supply Chain
Crest Haven™ Sober Living Home Facility, Inc. will rely on charity organizations, religious organizations, and government agencies to refer drug and alcohol addicts to us. So also, we have been able to establish business relationships with wholesale supplies of toiletries, medications, foodstuffs et al.
e. Sources of Income
Crest Haven™ Sober Living Home Facility, Inc. will make money from;
- Fees paid by residents
- Contributions from partners and donors
- Grants from government agencies and charity organizations
- Community support.
a. Amount Needed to Start your Sober Living Home?
Crest Haven™ Sober Living Home Facility, Inc. would need an estimate of $450,000 to successfully set up our sober living 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 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 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?
Crest Haven™ Sober Living Home Facility, Inc. will not build a new facility for our sober living home; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our facility.
d. What are the Ongoing Expenses for Running a Sober Living 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 Sober Living (President) – $45,000 Per Annum
- House Manager (Administrator) – $36,034 Per Annum
- Medication Management Counselors – $35,500 Per Annum
- Nurse’s Aides – $29,660 Per Annum
- Caregivers/Rehab Counselors – $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
f. How Do You Get Funding to Start a Sober Living Home
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Pitching your business idea and applying for business grants and seed funding from, government, and donor organizations
- Source for soft loans from your family members and your friends.
a. How Much Should You Charge for your Service?
At Crest Haven™ Sober Living Home Facility, Inc. our fee will be between $450 and $750 per month, depending on some factors. But it is important to note that we will make our facility free of charge especially when we attract enough grants and funds from donors.
b. Sales Forecast?
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $400,000
- Third Fiscal Year (FY3): $600,000
c. Estimated Profit You Will Make a Year?
Crest Haven™ Sober Living Home Facility, Inc. will operate as a nonprofit organization.
d. Profit Margin of a Sober Living Home
Crest Haven™ Sober Living 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?
Crest Haven™ Sober Living Home Facility, Inc. will grow by first opening other outlets in key cities in the United States of America within the first five years of establishing the business, then will start selling franchises from the sixth year.
b. Where do you intend to expand to and why? (Geographical locations)
Crest Haven™ Sober Living Home, Inc. plans to expand first to Phoenix, Arizona and then to Cincinnati, Ohio, Wilmington, North Carolina, Louisville, Kentucky, Detroit, Michigan, Dayton, Ohio, Missoula, Montana, Espanola, New Mexico, Washington, D.C, Chicago, Illinois and Baltimore, Maryland.
The reason we intend to expand to these geographical locations is that available statistics show that the cities listed above have the highest drug and alcohol abuse rates in the United States. Phoenix, Arizona had the highest cocaine usage percentage in the country, with over 20 percent of citizens having tried the drug before.
The founder of Crest Haven™ Sober Living Home Facility, Inc. plans to exit the business via family succession. We have put structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another.