How to Start a Group Home Business: Plan and Steps for Starting a Group Home

A group home is defined as an alternative to traditional in-home foster care for children and others who need help becoming independent. These individuals are housed in a home-like setting in which a single set of house parents or rotating staff of trained caregivers are looking after them.

A group home doesn’t simply mean a foster home.

It also doesn’t connote that it cannot be run like a business. In fact, managing a group home is already a form of business. The requirements for starting a group home are also the same as that of starting a regular home business.

How to Start a Group Home Business

  • Before starting a group home, the household and its hired staff should promote a giving attitude. This type of attitude is essential for the people who will be housed in the home. The household and the staff should run the business not for profit, but for the interest of seeing these challenged individuals become capable of being independent over a period of time.
  • Procuring a license is necessary when starting a group home business. This license can be acquired from the Health and Human Services and the license is often called a Community Care license.
  • Determine the population the home should serve. There are many groups of people out there who need help, but a group home should only cater to one group of individuals. These can include the mentally challenged, troubled teens, and so on.
  • Hire the appropriate staff to work in the group home. The staff should not just possess a helping attitude; they must also be trained in handling specific types of people.
  • Manage the budget of the group home. In order for this type of business to run profitably, the home owner should be able to allocate budget to meet the needs of the people the group home is housing.
  • Lastly, ensure that the staff receives ongoing training. This makes sure that the staff is kept up to date with the latest in dealing with different group home population.

Plan and Steps to Starting a Group Home Business

  • Like any business, the process should always begin with a good group home business plan. The plan should include the business strategy, the service and impact of the business, the targeted market, as well as financial resources.
  • Select a location or home. The home should have ready equipment, accessories, and space needed for a group home.
  • Secure financial assistance from grants, loans, capital investments.
  • Register the business and obtain the necessary licenses and permits.
  • Hire trained help. Social workers are the most recommended when opening a group home.
  • Market and advertise the group home to targeted groups or individuals.
  • Keep the door open figuratively for individuals seeking help.

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