Homeless Shelter Business Plan Sample

Do you want to start Homeless Shelter business plan?

Every business needs a sample of strategic plan to get started. Whatever the scope or domain of the business, good planning in the initial stages is a must. So, if you want to learn how to write a business plan for a homeless shelter, you must look through all the necessary details. Here, we will be showing a business plan for Rest&Peace, a homeless shelter business.

You can develop a business plan for homeless shelter by reading through relevant examples and collecting as much information about your target market as you can. For a homeless shelter business, plans like property management business plan can come in handy. Starting a non-profit business like a homeless shelter is no easy feat. However, if you spend significant attention and time in the initial planning phase then it will make it much easier for you to lay down roots for your business.

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 come to rest and seek out jobs to sustain themselves. It will offer many services such as free resting places, meals, and cleaning supplies along with 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. There are a lot of avenues that are necessary to ensure a successful working of a non-profit. Therefore, Penny and Jack looked through whatever sample homeless shelter business plan they could find.

A homeless shelter business plan needs to include all logistic, technical, and human resource planning. So, for opening a franchise business that is focused on the rehabilitation of homeless people, Jack and Penny developed this homeless shelter business plan sample.

2.3 Customers of Homeless Shelter Company

Instead of having traditional customers, Rest&Peace will 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 due to one reason or another lack opportunities. The achievement metrics that we want to achieve will include getting at least 60% of the people who pass through the system rehabilitated.

The financial targets we want to achieve within first 5 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 is self-sustainable instead of taking money directly from the people it was helping. And this, Rest&Peace came into being.

3.2 Company History

Penny noticed that most non-profits were only helping people in certain situations and that model was not sustainable for most people who needed help. Jack, by virtue of working a lot of pro bono cases, realized that most people were willing to work for making their life better and what they were missing were people who would give them the opportunity. Therefore, they partnered up to create Rest&Peace to 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 or any other business for that matter is to look into the market and find what the current businesses are lacking. This can be done through a sample business plan for homeless shelter just as Jack and Penny did. So, if you are wondering how to start a homeless shelter business, a business plan is a great place to start. Jack and Penny saw that there was a need for practical rehabilitation programs in the market.

Step2: Plan Your Solution

Once you have identified the gaps in the market, your next step in learning how to open homeless shelter should be to provide adequate solutions to all the problems you identified. Jack and Penny saw that there was a need for dynamic recovery programs and asked themselves how can I start a homeless shelter that will train people to sustain themselves? For identifying the solution, they looked into hotel business plan and as many other related options as they could find.

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 opening and hire social media managers.

Step5: Find a Location

As a final step, Penny and Jack started looking for a base of operations. They decided on a three-story building as a start 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

Starting a homeless shelter is not just about the idea but about execution. It is necessary to figure out what you will be offering to your customer base. This will not only help you present a good homeless shelter business plan to your investors but also organize all 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 then go through related plans like a home inspection business plan or something that resonates with your services.

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 on the journey to gain an education or a skill to get employed or are in the process of getting a job. The supplies will be obtained from businesses to whom we will provide interested candidates as employees.

• Meals

We will also provide three meals a day for people who come in looking for a place to stay for a few days as well as folks who are committed to working with us to sustain themselves. The roomers will help in the preparation of at least one meal a day while they stay there.

• 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 to make the setup. However, these companies will be vetted by us first 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 means constant vigilance and marketing so that you can raise awareness about your services. Penny and Jack knew that starting 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 homeless shelter.

They learned as much as they could about 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 below:

5.1 Market Trends

According to IBISWorld, the homeless shelter business was increasing 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, focus on 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

The people we will primarily be serving will be the homeless folks looking to improve their lives and looking for opportunities like jobs and living.

5.2.2 Government Fund Institutions

We will target government funding for our business as it will be a great benefit for the government to fund a project that is helping in the rehabilitation of its homeless citizens.

5.2.3 Philanthropists

We will also approach the network of philanthropists to fund the operations of our business.

5.2.4 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 want to learn. These efforts will be funded by government funds and philanthropist contributions.

5.2.5 Employment Agencies

We will also have contracts with employment agencies who will not only provide a way of earning for our customers but also pay us for providing them with skilled people trained for jobs.

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, Penny and Jack had the following business target in mind:

• To become an all-rounded community service and rehab center for struggling or homeless people
• To expand its 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 unlike a mortgage lender business plan. 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, learned 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 how to start a shelter home.

6.1 Competitive Analysis

• We are a self-sustainable 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 opportunities for employment
• Our goal is to help people get on their feet instead of being dependent on us.

6.2 Sales Strategy

• We will start marketing our plan a month before opening 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 depends on all of its details to provide a stable picture for a business. So, whether you are starting a homeless shelter for women or any other business, you need to include employee details in it as well.

If you want to learn how to get a homeless shelter started, you can look at the following list of employees who can help you get there.

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 does it cost to start a homeless shelter. the best way to figure out the finances of a business is to develop a financial plan. Jack and Penny decided to develop a plan to deal with the financial aspect of how to open a homeless shelter.

A financial plan doesn’t only help with increasing the profits of the business but also with sustaining a business. Therefore, a business like a home shelter must have a financial plan to deal with all the costs, revenues, and profits of the business.

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

1. 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.

2. How to write a business plan for a homeless shelter?

You can learn how much to build a homeless shelter or other details by developing a homeless shelter business plan which you can learn through the above sample plan.

 

Download Homeless Shelter Business Plan Sample in pdf