“How do I start an Assisted Living Home in Today’s Economy?”

With so many layoffs, and so many cutbacks, more and more people are deciding to become entrepreneurs to gain more control over their futures. Starting or buying an existing business has probably been, up to this point just a dream. In the letters I have received from my subscribers the number one question has been “How do I start an Assisted Living Home in today’s economy?” This is a dilemma that many including myself have been forced to deal with

Let’s face it; if the current economic situation has not caused you at least a little discomfort, I would be amazed. It has caused many seasoned and would-be entrepreneurs to be hesitant to enter into the market, with many choosing to sit on the sidelines and wait to see how it sorts out. After all you can’t take out a loan on your home, and you might have to come up with money to dip into your mutual funds. Sitting on the sidelines seems perfectly reasonable, right?

Wrong! Opportunities are great right now!

Here is why I think you should start an Assisted Living Home now.

1. Prices are low

Believe it or not now is the time to buy real estate. There are more distressed sellers in the market than there has been since the 80’s. This allows you to be picky; you choose the location, floor plan, and amenities that you want. All at the prices you want to pay.

If you wait until the economy improves and credit eases, you will miss this window of opportunity. Prices will rise during economic recovery and more buyers enter the market.

 

2. Seller financing is available.

Historically, seller financing typically comes into play when a buyer is unable to secure financing at the owner’s asking price. The owner then has two options: he can either lower the asking price, or work with the buyer and provide seller financing to overcome a potential deal-breaker.

These days, many sellers are offering seller financing before they even meet a buyer. Sellers know that banks are not lending, so many are willing to finance the deal themselves. This means you can buy an Assisted Living Home right now even if you cannot get bank financing. So why wait until the economy turns around?

Believe it or not, you can usually get a better rate from a seller than you can from a bank. You have considerably more leeway to negotiate the right down payment, the length of the loan, monthly payments and interest rates. Plus, if you pay the loan off early, many sellers also often accept a discounted balance.

3.Carpe Diem!

Finally, I recommend that buyers not wait for the economy to turn around simply because the best entrepreneurs don’t wait for perfect market timing. Firms like Microsoft and Apple were started in the midst of the recession in the 1970s.

In fact, there are many reasons that businesses that start in a down economy do better than those that don’t. Market share is up for grabs because buyers of products and services are scrutinizing expenses. That gives new business owners a big opportunity. Furthermore, suppliers may be willing to offer great prices because, in this downturn, they are hungry for business. It’s also a great time to bring on employees. There are many talented individuals looking for work now, and they may be available at more reasonable rates. That’s not going to be the case after the economy turns around. Buyers who learn how to focus on revenue growth and to closely manage expenses during tough economic times can leverage those skills for greater business success as conditions improve.

 

Is Entrepreneurship For You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business – but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:

1. Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.
2. How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?
3. How good are you at making decisions? Small business owners are required to make decisions constantly – often quickly, independently, and under pressure.
4. Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it’s also a lot of work. Can you face six or seven 12-­hour workdays every week?
5. How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization ­ of financials, inventory, schedules, and production ­can help you avoid many pitfalls.
6. Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.
7. How will the business affect your family? The first few years of business start­up can be hard on family life. It’s important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

Why Small Businesses Fail
Success in business is never automatic. It isn’t strictly based on luck – although a little never hurts. It depends primarily on the owner’s foresight and organization. Even then, of course, there are no guarantees.

Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years.In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

• Lack of experience
• Insufficient capital (money)
• Poor location
• Poor inventory management
• Over-investment in fixed assets
• Poor credit arrangements
• Personal use of business funds
• Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

• Competition
• Low sales

More Reasons Why Small Businesses Fail
These figures aren’t meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the upside
It’s true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

• You will be your own boss.
• Hard work and long hours directly benefit you, rather than increasing profits for someone else.
• Earning and growth potential are far greater.
• A new venture is as exciting as it is risky.
• Running a business provides endless challenge and opportunities for learning

Till next time

How to Start an Assisted Living Home

If you are looking for an investment or a business with a guaranteed demand, look no further! The outlook for assisted living is booming. Tens of millions of baby boomers are approaching retirement age. Many of them will need medical or personal care. You could own the Real Estate or be the company that provides the service. Or combine them and get the best of both worlds.

Assisted Living for seniors combines the best of Real Estate Investments. You can operate a business needed in every city and have the security of owning Real Estate.

The increasing need for assisted living is driven by more than 55 million older Americans needing care over the next twelve years. Is that the type of demand you want for your new business?

Investing in Assisted Living is not just about real estate. When starting any new venture you need solid business data backed by extensive research, you need a solid operational manuals that help you avoid costly mistakes. We offer what you need.

Investing in Assisted Living also demands a decision about how involved you want to be in a business that requires some knowledge of both the Health Care and Hospitality Industries.

Whether you want to run an Assisted Living Business or buy one and hire a professional to operate, this kind of investment requires you to have a solid grasp of the industry.

But here’s the problem. People wanting to start their own Assisted Living Business have so many barriers to overcome. First, there are many rules and regulations when working in Senior Care. It can all be so confusing. Do you register with the state or with your local government? Do you have to become certified? Is your home inspected? And, if so, who does this? It all seems so complicated and overwhelming.

So stick with me and I will help make your dreams a reality!