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Looking to Expand: What You Need to Know

By Heather Brown
October 21, 2016

There is a significant need for quality adult residential care facilities. That need won’t be decreasing with the vast baby boomer population needing care options. Many adult residential care facility owners recognize this need. They look for ways to expand their services and provide quality care for more members of their community through adding locations, increasing their existing building size or adding adult day care programs. Expanding any business requires planning, time, and research. Adult residential care facilities have some important caveats to consider before taking the steps to expand.
Things to Remember
As an owner or administrator of an adult residential care facility, it is important for you to consider the impact your expansion will have on employees, residents, yourself, and your community. Answer these questions before launching an expansion plan.

  1. Are you able to manage the expansion once complete? Do you need to hire/promote additional management?
  2. How will this impact the residents’ quality of life?
  3. What steps can you take to minimize negative impacts?
  4. How does this impact the employees’ daily responsibilities?
  5. Are there steps you can take to prepare them?
  6. If construction is necessary, will that impact neighboring businesses or community members?

Answering these questions helps you better prepare for the potential negatives associated with expanding your services. It also gives you a list of parties you need to communicate with to maintain positive relationships.
Steps to Take

  1. Create a business plan. A business is a necessary tool in your expansion process. It identifies your goal, mission, and vision. It also addresses how you plan to finance and market the finished product for success.
  2. Contact your licensing department. Call or make an appointment with your licensing department. Use this meeting to get a list of all the service requirements, new license fees, and time involved in updating a license.
  3. Contact local municipality. Your local municipality will issue the necessary building permits and determine if your plan meets their building requirements.
  4. Determine funding source. Some businesses finance expansions with business loans while others utilize private funding options. Review all possibilities and the decision best suited to your long-term needs.
  5. Notify current residents and families. Notify the current residents and their families of the plans.
  6. Create a timeline. When do you want to begin the project? When do you want it completed?
  7. Hire a general contractor. Hire a contractor to oversee the process and keep things running smoothly.
  8. Stay involved. Connect with the contractor daily to stay involved and updated on the process.
  9. Make marketing a priority. Promote your new services! Opening your doors with no new residents is costly.

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