How Much Does it Cost to Start an Adult Day Care Center? | Adult Day Care Entrepreneur
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- เผยแพร่เมื่อ 5 ก.พ. 2025
- If you are thinking about opening your own adult day care center then you need to know what your startup costs are going to be.
How do you figure out how much it will cost though? The easiest way to start is by determining if you are going to lease or own.
Once you determine if you are leasing or owning, then you can figure out how much it will cost to open the space you choose.
If you are looking at opening your own adult day care there are 3 different sizes that you can use as a guide to determine roughly how much it will cost to start your business.
Stage 1: 4,000 square feet
This will roughly cost you anywhere from $150,000 to $300,000 depending on the size and age of the building, licensing, staffing, furniture, fixtures, etc.
Stage 2: 6,000 - 8,000 square feet
This will roughly cost you anywhere from $300,000 to $600,000 depending on the size and age of the building, licensing, staffing, furniture, fixtures, etc.
Stage 3: 8,000 - 12,000 square feet
This will roughly cost you anywhere from $600,000 to $1,200,000 depending on the size and age of the building, licensing, staffing, furniture, fixtures, etc.
Your largest cost for starting an adult day care will be construction.
*** A helpful tip to consider is to ask your landlord if they would be willing to offer rent abatement or are willing to contribute tenant improvments to help cover construction costs.
Another important initial startup cost is furniture and fixtures. This will help bring your business to life and act as a visual way to identify your businesses "personality"
Permitting and Licensing delays can be an overlooked aspect of startup costs. Waiting on your permits and licensing to be approved can push back your projected opening date, which could lead to lost revenue that you might depend on when first opening.
Take the precaution to include this in your initial startup costs to avoid this from happening.
Your marketing efforts should also be included when creating your initial startup costs.
You want people to show up on your grand opening, but how will they know you exist if you don't market your business?!
#seniorcare #adultdaycare #startup
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Thanks Kris. You're amazing! I appreciate all you've done for this industry and educating us all/ sharing your knowledge as you acquire it. I / we learn so much from you. Keep up the good work. Because of you alone I am considering opening up one here in MA and/or in FL as I get into my own retirement project of a shared housing startup business I've just started. I believe I will start with an adult day care center ahead of my first residential assisted living home. Your energy and attitude and evident passion for this business is inspiring.
Hi Steve!!! Well, thank you very much for your kind words!!! I really appreciate your support and encouragement!! I don’t want to give off the impression that adult day is the only option going forward. It may be for me but I also feel that residential assisted living will play an important role in the future of senior care as well. Many new options will come to market as more and more people seek various options based on their own needs and desires!!! Keep striving to make a difference!!! Together we can change the world!!! Thank you for all the work you have done!!!
Thank you for sharing, this was very helpful.
Thank you for your feedback!!!!
Does it actually have to be a building or can it be a single family home that’s zoned commercial?
Great content! It’s my understanding that you have to show at least one year of business revenue prior to getting approved for an SBA loan. Has that been your experience as well?
Great question. It depends. If you are opening a new business, the SBA will lend to you based on the projections of the new business, however, they may look back a year or two on your personal tax returns and may require you to include personal assets as collateral. If you are getting an SBA loan for an existing business then they will look at the last years P&L.
They dont tell tha
@@KrisChana correct response
I already found a building that was previously used for an adult daycare and everything is in place . I’m sure it will pass inspection because the previous owners told me they know it will pass. I am scared of losing this opportunity to get a building like this. I already purchased furniture. The lease rent is affordable for me for 5 months . I have to start making revenue by the 6th month. . Do you think I can get it done. I also have 7 people that are ready to come on board approved for ADC through the state. Do you think I can do it ?
Thanks for the video...great content. I have adjacent vacant lots and planning to use the land to start a facility with new construction. I can get 2 two level homes with 4-5 bed rooms on the land, or 1 ranch style home with 4-5 rooms. Any suggestions on what type of home(s) to build? I'm assume stairs in a two level home would be more of a challenge and less marketable. Thoughts?
Hi! Are you referring to opening/building a residential style assisted living facility?
@@KrisChana Hello Kris...thanks for the reply. Yes...building a residential facility.
Can you have patients coming to the adult day care while it’s getting approved for licensing?
No. It’s important that you are properly licensed before accepting participants into your adult day program. Make sure to understand the licensing requirements first in your state.
Thank you for sharing
Thank you so much Lisa for your feedback!!
can u speak to a rule of thumb with the number of people licensed # sq ft and population?
Great question. In the state of Florida you need 45 sq ft net floor space for every 1 participant (member). The definition of Net Floor Area is - The actual occupied area not including unoccupied accessory areas such as corridors, stairways, ramps, toilet rooms, mechanical rooms and closets. Each state, county and city may be different and may all have different requirements. There is typically a state licensing requirement and then there will be zoning requirements defined by the county or city.
thanks for the input. that helps.
I was wondering about the population of the city. If i am trying to get a 4000 sq ft what city size supports this?
It’s not just the size of the city. You’ll want to know how many people over the age of 65 within 1, 3 & 5 miles. What is the average income? Whats the Auto Traffic Counts from the road near that location? How much is the rent at the location? How big of a loan do you plan to get? What amount do you plan to charge? What percentage of people are on Medicaid? Do you plan to accept Medicaid? There is not an exact science and a lot of it depends on what you plan to do?
@@KrisChana very helpful.
I'm with you on these points.