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.
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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
- 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:
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
One of the most important aspects of how to open up a homeless shelter is to get funding because a business like this cannot stay operational without significant funding. So Jack and Penny set out to approach as many organizations as they could to obtain funding for Rest&Peace.
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.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$269,200|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$269,200|
|Start-up Assets to Fund||$898,500|
|TOTAL FUNDING REQUIRED||$1,167,700|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$61,400|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,167,700|
|Loss at Start-up (Start-up Expenses)||$136,700|
|TOTAL CAPITAL AND LIABILITIES||$1,384,000|
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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.
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
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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.
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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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.
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
|Unit Sales||Year 1||Year 2||Year 3|
|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|
|Clothes & Cleanup||$250.00||$290.00||$336.40|
|Rehab & Employment||$500.00||$580.00||$672.80|
|Clothes & Cleanup||$375,000.00||$368,880.00||$453,574.85|
|Rehab & Employment||$500,000.00||$461,100.00||$566,968.56|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Clothes & Cleanup||$80.00||$88.00||$92.40|
|Rehab & Employment||$200.00||$220.00||$231.00|
|Direct Cost of Sales|
|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|
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
|Year 1||Year 2||Year 3|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
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8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|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|
|Direct Cost of Sales||$690,000||$643,399||$716,103|
|TOTAL COST OF SALES||$690,000||$643,399||$716,103|
|Gross Margin %||63.97%||66.00%||69.22%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$731,700||$791,200||$862,425|
|Profit Before Interest and Taxes||$493,300||$457,510||$748,009|
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 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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
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.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.