Homeless Shelter Business Plan Sample

Do you want to start a Homeless Shelter business plan?

Do you want to establish a homeless shelter business? Well, whatever the scope or domain of the business, good planning in the initial stages is a must. Starting a non-profit business like a homeless shelter is no easy feat. However, if you spend significant time in the initial planning phase then it can be much easier for you.

Every business needs a sample of a strategic plan to get started. So, if you want to learn how to write a business plan for a homeless shelter, you must look through all the necessary details. To help you, we will be showing a business plan for Rest&Peace, a homeless shelter startup.

You can develop a business plan for a homeless shelter by reading relevant examples and collecting information about your target market. For developing a homeless shelter business, guides like property management business plan can also be helpful.

Executive Summary

2.1 About the Business 

Rest&Peace will be a homeless shelter started by Penny Holmes and Jack Dawson. The business aims to provide a safe space for homeless people where they can rest to sustain themselves. It will offer many services such as free resting places, meals, and cleaning supplies along with guidance and connections to get jobs and deal with legal issues. 

2.2 Management of Homeless Shelter Company

A non profit homeless shelter business plan will be different than any other business plan. Many approaches are necessary to be taken to ensure the successful working of a non-profit. Therefore, Penny and Jack went through every single sample homeless shelter business plan they could find. 

A homeless shelter business plan needs to include logistic, technical, and human resource planning. Opening a franchise business that is focused on the rehabilitation of homeless people, the planning can be a bit different. However, for general info and market trends, you can refer to this homeless shelter business plan sample. 

2.3 Customers of Homeless Shelter Company

In addition to boarding traditional homeless, Rest&Peace will also cater to people who need a place to stay for a while to get back into health and take care of themselves. For this purpose, the company will be partnering with many investors to sustain itself. Some categories of these customers will include:

• Homeless People
• Government Fund Institutions 
• Philanthropists 
• Educational Facilities
• Employment Agencies

2.4 Business Target

The target of the business is to provide a dynamic recovery program for people who have the talent and determination but not opportunities. The achievement metrics that we want to attain will include getting at least 60% of the people who pass through the system rehabilitated. 

The financial targets we want to achieve within the first 3 years are demonstrated below

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Ownership & Management of Company

Penny Holmes and Jack Dawson will be the owners and managers of Rest&Peace. Both of them worked together as partners in a law firm and both had aspirations to create an organization that would help people and that is self-sustainable.

3.2 Company History 

Penny noticed that most non-profits were only helping people in certain situations and many people who needed help stood ignored. Jack realized that most people were willing to work for making their life better but they could not afford residence within their salaries. Therefore, Jack partnered with potential investors to establish Rest&Peace and fill the gaps in the market. 

3.3 How the Homeless Shelter company will be started

Step1: Identify Gaps

The primary step in setting up a homeless shelter is to look into the market and find what the current businesses are lacking. This can better be done by developing a sample business plan for a homeless shelter that outlines the comparison. So, if you are wondering how to start a homeless shelter business, going through a business plan and developing your one is the way to go.

Step2: Plan Your Solution 

Once you have identified the gaps in the market and have learned how to open a homeless shelter, you should move to the next step. The next step is to create a strategy to provide adequate solutions to the problems you identified. 

Jack saw that there was a need for dynamic recovery programs and asked himself how can I start a homeless shelter that will train people to sustain themselves? In this business plan, you can see how Jack developed his marketing, financial, and personnel plan to execute the business. You can also study hotel business plan for more understanding.

Step3: Get Funding

Step4: Develop Awareness 

A non-profit organization looking to help people is of no use if its target customers don’t know about it. Therefore, Penny and Jack will start awareness campaigns at least two months before the opening. Social media managers will be hired and other sales strategy ideas will be implemented. 

Step5: Find a Location

Your homeless shelter should be located in a place where homeless people could easily approach it. Penny and Jack decided on a three-story building to offer as much space as possible.

Start-up Expenses
Legal	$144,400
Consultants	$0
Insurance	$25,100
Rent	$34,100
Research and Development	$10,000
Expensed Equipment	$52,200
Signs	$3,400
TOTAL START-UP EXPENSES	$269,200
Start-up Assets	$251,400
Cash Required	$144,000
Start-up Inventory	$35,100
Other Current Assets	$251,000
Long-term Assets	$217,000
TOTAL ASSETS	$898,500
Total Requirements	$1,167,700
START-UP FUNDING
Start-up Expenses to Fund	$269,200
Start-up Assets to Fund	$898,500
TOTAL FUNDING REQUIRED	$1,167,700
Assets
Non-cash Assets from Start-up	$1,185,000
Cash Requirements from Start-up	$114,000
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,384,000
Liabilities and Capital
Liabilities	$18,200
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$61,400
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$79,600
Capital
Planned Investment	$1,167,700
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,167,700
Loss at Start-up (Start-up Expenses)	$136,700
TOTAL CAPITAL	$1,304,400
TOTAL CAPITAL AND LIABILITIES	$1,384,000
Total Funding	$1,167,700

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Services

Before starting a homeless shelter, it is necessary to figure out what you will be offering to your customer. This will not only help you present a good homeless shelter business plan to your investors but also organize the resources you need. 

You can learn a lot about how to run a homeless shelter once you know what you will be offering to your customers. You can go through related plans like a home inspection business plan or something that resonates with your services and business ideas. 

Penny and Jack decided that as they were still learning how to start a homeless shelter, they would provide a few basic services in the beginning. So, if you are looking at how to start a homeless foundation, you can get help from the following list of services offered by Rest&Peace:

• Rooming Service

We will provide basic living and rest spaces for homeless individuals who are still gaining education or learning a skill to get employment. The supplies will be obtained from businesses as well as investors.

• Meals 

We will also provide three meals a day for people who come in looking for a place to stay for a few days. Meals will be provided to those as well who are committed to working with us to help in the preparation of at least one meal a day. 

• Employment Opportunities

Rest&Peace will also provide employment opportunities to homeless folks. These opportunities will come from our investors and the companies who will invest in the setup for getting labor. However, these companies will be vetted by us to ensure good working conditions. 

• Rental Clothes and Clean-Up Areas

We will also provide rental clothes and clean-up areas where people can come and make themselves presentable for interviews. 

• Rehab Services

We will help people find a living space suitable to their income and requirements so that they can be rehabilitated back into society.

Marketing Analysis of Homeless Shelter Company

Running a homeless shelter requires constant vigilance and marketing so that you can raise awareness about your services. Penny and Jack knew that starting a homeless shelter would require a very focused marketing strategy to gain investors. So, they decided to invest a good amount of time in developing the business plan for a homeless shelter. 

They learned as much as they could on how to create a homeless shelter. And then they set out to open a homeless shelter named Rest&Peace. So, if you want to know how to build a homeless shelter and market it efficiently, you can look into the marketing plan for Rest&Peace.

5.1 Market Trends

According to IBISWorld, the homeless shelter business was growing at a rate of 0.9% in the past 5 years before it took a hit due to COVID. There are about 11000 community houses, but the number is declining because these places don’t have a source to sustain themselves. Therefore, if you’re wondering how do I start a homeless shelter, you should also focus on figuring out ways to sustain your business. 

5.2 Marketing Segmentation

The customers and investors of Rest&Peace are divided into the following groups:

Business Plan for Investors

5.2.1 Homeless People

We will be serving homeless folks who are looking to improve their lives and looking for jobs. 

5.2.2 Government Institutions & Philanthropists

Organizations and people that fund rehabilitation projects are expected to be a target group. They would not be availing of our services, but they would be referring the roofless to us and providing funding. 

5.2.3 Educational Facilities 

We will have contracts with educational facilities to provide vocational training and courses to individuals who don’t have a marketable skill but who want to learn. These efforts will be funded by government funds and philanthropist contributions. 

5.2.4 Employment Agencies  

We will have contracts with employment agencies that will be interested in employing homeless people and funding our ventures.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Government Fund	40%	51,800	62,160	74,592	89,510	107,412	10.00%
Philantropists	27%	41,800	50,160	60,192	72,230	86,676	10.00%
Educational Facilities	18%	21,800	26,160	31,392	37,670	45,204	10.00%
Employment Agencies	15%	21,100	25,320	30,384	36,461	43,753	11.00%
Total	100%	136,500	163,800	196,560	235,872	283,046	10%

5.3 Business Target

While building a homeless shelter, Jack had the following business targets in mind:

• To establish an all-rounded community service and rehab center for struggling or homeless people.
• To expand the services to other states across America.
• To help with the rehabilitation of at least 30% homeless community of New Orleans.
• To help at least 80% of people passing through the system with rehabilitation.

5.4 Product Pricing

Our customers will not have to pay for our services in any shape or form. Therefore, the pricing strategy as given in mortgage lender business plan cannot help us. All the costs will be covered by investors and collected funds, along with our commissions for contracts.

Marketing Strategy

Starting a homeless shelter home needs consistent contributions and investments. And investments to start a homeless shelter are not so simple to come by. Jack and Penny, while learning how to open a shelter for homeless, realized that constantly approaching new investors was key. So, along with keeping their current investors up to date, they also approached other investors such as those who provided funds for home inventory business plan and other opportunities. 

If you want to learn how to open a shelter home, you can look into the marketing analysis below. It will guide you in developing a sales strategy for your own business. In this blog on how to start a shelter home, we will also list the sales forecast for three years.

6.1 Competitive Analysis

• We are a self-sustained business and do not require any financial contribution from the people we’re helping.
• We not only provide short-term care but also guide long-term rehabilitation efforts.
• We will provide employment opportunities.
• We will provide better facilities than our competitors. 

6.2 Sales Strategy

• We will start marketing via Google Ads and social media sites a month before the launch to get contributions.
• We will constantly approach investors for funds.
• We will provide quarter-year updates to all of our investors.

6.3 Sales Monthly

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6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Room Service	1,600	1,537	1,629
Meals Service	1,750	1,420	1,506
Clothes & Cleanup	1,500	1,272	1,348
Rehab & Employment	1,000	795	843
TOTAL UNIT SALES	5,850	5,024	5,326
Unit Prices	Year 1	Year 2	Year 3
Room Service	$300.00	$348.00	$403.68
Meals Service	$320.00	$371.20	$430.59
Clothes & Cleanup	$250.00	$290.00	$336.40
Rehab & Employment	$500.00	$580.00	$672.80
Sales
Room Service	$480,000.00	$534,876.00	$657,683.53
Meals Service	$560,000.00	$527,252.48	$648,309.65
Clothes & Cleanup	$375,000.00	$368,880.00	$453,574.85
Rehab & Employment	$500,000.00	$461,100.00	$566,968.56
TOTAL SALES	$1,915,000.00	$1,892,108.48	$2,326,536.59
Direct Unit Costs	Year 1	Year 2	Year 3
Room Service	$100.00	$110.00	$115.50
Meals Service	$120.00	$132.00	$138.60
Clothes & Cleanup	$80.00	$88.00	$92.40
Rehab & Employment	$200.00	$220.00	$231.00
Direct Cost of Sales
Room Service	$160,000.00	$169,070.00	$188,174.91
Meals Service	$210,000.00	$187,492.80	$208,679.49
Clothes & Cleanup	$120,000.00	$111,936.00	$124,584.77
Rehab & Employment	$200,000.00	$174,900.00	$194,663.70
Subtotal Direct Cost of Sales	$690,000.00	$643,398.80	$716,102.86

Personnel plan

A homeless shelter business plan must also include the details of employees and salary structure. If you are starting a homeless shelter for women, you should focus on hiring more females than males. Besides, you must ensure that you hire compassionate and friendly people. 

If you want to learn how to get a homeless shelter started, you can take guidance from here. Here we are providing the list of employees made for Rest&Peace. 

7.1 Company Staff

• 1 Manager
• 2 Professional Cooks
• 6 General Cleaners
• 1 Web Developer/ Mobile App Developer to manage online sites
• 2 Sales Managers to manage advertisements 
• 1 Accountant
• 2 Drivers
• 1 Receptionist

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Manager	$30,000	$33,000	$36,300
Cooks	$245,000	$269,500	$296,450
Cleaners	$125,000	$137,500	$151,250
Web Developer	$22,500	$24,750	$27,225
Sales Manager	$42,500	$46,750	$51,425
Accountant	$22,500	$24,750	$27,225
Drivers	$42,500	$46,750	$51,425
Receptionist	$22,500	$24,750	$27,225
Total Salaries	$552,500	$607,750	$668,525

 

Financial Plan

You might be wondering how much it costs to start a homeless shelter. The best way to figure out the financial requirements of the business is to develop a financial plan. 

A financial plan helps sustain a business and identify ways to increase profits. Developing a financial plan for a home shelter business is going to be an entirely different process than making one for the usual businesses. Since investments are unpredictable and non-recurring, the planning for cash flows and profit projections can be complicated.

After Jack had learned how to open a homeless shelter, he decided to hire a financial analyst to get an accurate financial plan. Here we’re providing the detailed financial plan made for Rest&Peace that you can follow to create a financial plan for your business. 

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

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8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

 

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$1,915,000	$1,892,108	$2,326,537
Direct Cost of Sales	$690,000	$643,399	$716,103
Other	$0	$0	$0
TOTAL COST OF SALES	$690,000	$643,399	$716,103
Gross Margin	$1,225,000	$1,248,710	$1,610,434
Gross Margin %	63.97%	66.00%	69.22%
Expenses
Payroll	$552,500	$607,750	$668,525
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$731,700	$791,200	$862,425
Profit Before Interest and Taxes	$493,300	$457,510	$748,009
EBITDA	$493,300	$457,510	$748,009
Interest Expense	$0	$0	$0
Taxes Incurred	$98,660	$91,502	$149,602
Net Profit	$394,640	$366,008	$598,407
Net Profit/Sales	20.61%	19.34%	25.72%

 

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

 

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

 

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

 

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

 

FAQ

• How do I start a homeless shelter business plan?

Opening a homeless shelter requires you to go through not only business plan for homeless shelter but also other plans like a property preservation business plan for guidance and planning. After studying these business plans thoroughly, you will be able to start writing one for your startup.

• How to write a business plan for a homeless shelter?

You can learn how much is needed to build a homeless shelter and other details by developing a homeless shelter business plan. To create a business plan, you can follow the steps mentioned in this sample

Download Homeless Shelter Business Plan Sample in pdf