Creating a retirement home can be very expensive in investment (walls, works, furniture …). Also, it is an activity that requires a lot of workforces.
The most profitable establishments are the autonomous residences or the Ehpad which propose around 80 places. With an average daily rate of between € 80 and € 100, these establishments generate more than € 2.5 million in annual turnover.
What resources to create a retirement home?
Creating a retirement home, a residence services or a residence autonomy requires to mobilize a network, to communicate, to federate, and to manage. But it also requires other qualities: besides the passion of the job, active management and organizational skills will be needed.
It will be necessary to identify well-placed premises that meet residents’ expectations and to adapt them to their specific needs. It will be necessary to respect the norms relating to the LES (establishments receiving the public).
It is often difficult to obtain funding for this type of project. Often a source of stress, the financial question is essential. It requires a lot of composure and rigor, especially in the development of the business model and the business plan.
Go into project mode.
Creating a retirement home is a long project, which can be divided into three main phases:
the reflection and design phase,
the creation phase itself,
and the launch phase.
It will be necessary to establish accurate retro planning of the project to keep the commitment of openness, without risk of disappointing future residents. It will be necessary to anticipate the big stages, the risks of delay, and the possible points of blocking. Know how to work in project mode: mobilize around you, manage priorities, plan B, get ahead, ask for advice.
Create a retirement home in 7 steps.
1) Train yourself and find out.
There are many pieces of training and books on the topic of creating a retirement home.
2) Determine your school plan.
The welcome project will be the foundation of your establishment, the framework around which you can mobilize.
You define this framework: commercial positioning, services offered, workshops, travel assistance, specific support, well-being …
3) Conduct a market study.
The market study or “needs study” is at the heart of the project. If done well, the project will have a chance of success.
The objective of the market study is first to identify a sufficient number of residents who may wish to enter the establishment, given the proposed rates. The market study also makes it possible to take stock of the expectations of the families, and introduces a reflection on the future “offer”: which tariffs? What social mix? Which geographic location?
4) Locate the premises.
Creating a retirement home, of course, involves finding suitable premises and requiring the least amount of work possible … Start by asking the town halls around you. Get architects and artisans to get professional advice and estimate the amount of work.
5) Write your retirement home business plan.
The business plan, or business plan, is an estimate of the project to assess its viability.
Two types of the budget will need to be established:
the start-up budget, which lists the needs and resources needed to finance the creation:
Needs: works, improvements, purchase of equipment and furniture, starting cash …
resources: donations, sponsorship, personal contribution, loan …
the operating budget, which lists the daily expenses and revenues, once the establishment operates:
Expenses: water, gas, electricity, maintenance, wages, insurance, external services, supplies …
recipes: rents, subsidies, and recurring subsidies …
Feel free to ask for several quotes, to consider different hypotheses. It will also be necessary to determine your break-even point, which is the number of residents from which your structure will be profitable, given the rates you want to apply.