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.
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
- 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
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
After you have learned how to open up a homeless shelter, the next step is to get funding. It is because a business like this cannot stay operational without significant funds. 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 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.
|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|
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.
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
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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.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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.
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
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 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
|Year 1||Year 2||Year 3|
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
|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%|
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.|
- 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
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.