Most entrepreneurs start in business because they want a lifestyle change. Usually, new business owners fit in similar categories that create a sense of career exhaustion:
- Tired of the hustle,
- Tired of the long hours working for someone else,
- Tired of feeling like they aren’t making enough money, or
- Tired of feeling like their work isn’t making a difference.
Whatever reason you have for wanting to start in business, we get it. Most of us have been where you are now. The challenge that most entrepreneurs encounter is finding an investment opportunity that fits their goals.
Oftentimes, individuals do not have the money to take the next step needed to launch. The reality is that the lack of money isn’t a problem. If you don’t have your own money to use, you can use someone else’s. You have to be prepared to do what it takes to find the best solution for your plans.
There are countless sources of funds from investors looking for their next project. You simply have to know where to look.
There is a ton of money out there and plenty of investors looking to spend their money.
If you want to be part of the senior housing solution and help seniors, we can help you learn how to raise the capital to get started.
5 ELEMENTS OF RAISING CAPITAL
Pitching your business and asking people for money aren’t always the easiest tasks. Have you identified a comfort zone for asking people for funds when an opportunity arises to collaborate on your project?
There are five known traits to generate capital for your business:
- Track Record
- Compelling Opportunity
Just because people have enough wealth to invest, does not mean they want to be misused and taken advantage of – a loss is a loss. As a result, relationships must be built on something other than money.
In order to travel in the circles of wealthy people, you have to do what they do. Most wealthy individuals are involved with philanthropy.
Perhaps it’s time to start volunteering at charitable events. Whether it’s at the country club, fitness center, or a fund-raising event, identify a common interest that has nothing to do with money.
Private investments are essentially long-term relationships. This is why it’s important to focus on the relationship.
It is a great practice to have at least 6 positive interactions prior to asking someone about investing.
- Track record
Creating a track record to encourage someone to invest in your new residential assisted living business requires a strategy.
First, connect with highly productive people that will give you credibility. This concept presents you as a team player.
Experienced investors have no interest in investing in individuals, they are interested in the track record of the business or industry.
Trust is something that is earned over time – it is built through actions, not words. Trust is a culmination of the little things that create a psychological contract.
Think about the following questions when attempting to establish trust in business:
- Do you arrive at meetings when you said you would?
- Do you deliver on information or details you commit to research?
- Do they show respect for your time?
- Do they listen when you’re talking?
If there is no trust, the first component required will go missing, there will be no relationship.
- Compelling opportunity
A compelling opportunity is determined by the individual investor – it’s all in the eye of the beholder.
Whether your business deal attracts many or few, either way a good deal will be a magnet to capital. The better the deal, the quicker it will build large amounts of capital.
Great deals are often created and driven by how investors respond.
What’s the rate of return? What are tax consequences? What is the cap rate? These are questions residential assisted living owners and operators must think about when preparing to raise capital.
Alignment of your goals for the financial investment and the project is one of the most important aspects to consider. Create a straightforward criterion.
The investment opportunity should not only make sense to you, but also the investor. Alignment is critical, the deal has to benefit the investor and the business equally, otherwise investors will walk away.
INVESTORS ARE NOT THE ONLY SOLUTION
Loans for senior housing facilities are available. There is a host of retiring baby boomers seeking assisted living and businesses benefit from this demographic.
Securing a loan for your senior housing is a safe route to take due to four main reasons:
- Housing is a necessity.
- Families want a good place for their loved ones.
- The senior population is increasing.
- Many seniors are very wealthy.
Senior housing development loans allow owners and operators of residential assisted living to profit from these factors.
LIVING LIKE KINGS AND QUEENS
The Silver Tsunami demographics of the aging population are rather clear, with about 10,000 baby boomers turning age 65 every day. Senior communities are growing rapidly, and there is a huge influx of seniors specifically seeking smaller assisted living homes.
Baby boomers are making demands and getting them filled, because the small residential assisted living homes are continuing to grow.
Much of the wealth of the United States is held by the older generation. The nation was booming when baby boomers were young, and they experienced low prices and plentiful jobs.
Seniors are now using this money to pay for the kind of senior housing they demand.
A RAPIDLY GROWING OPPORTUNITY
Residential assisted living makes sense from multiple perspectives, quality care, safe environment, and more economical.
Aging is a fact of life, and investors can tap into this inevitably growing market.
Whether owners and operators secure loans or engage committed investors, there are many options for financing or refinancing for ownership of assisted living homes.
Everybody’s living longer, and seniors will need a safe place to live that provides quality care. So, investors should get ahead of the curve. Currently, there are not enough quality beds for seniors across the entire country.
The Residential Assisted Living Academy trains students to use the private pay concept, instead of government-funded programs. The Academy uses a proven business model that solicits residents that have their own financial resources and prefer paying for great service and a higher quality of senior living.
Residential assisted living homes generate a monthly net income of $5,000, $10,000 and even $15,000 monthly when this model is used correctly.
WHY START A RESIDENTIAL ASSISTED LIVING HOME WITH NO MONEY IN HAND?
If you’re not happy where you are in life, now is the time to make some changes. You’ve got to do something differently.
Why do you want to make a change in your lifestyle? Your “Big Why” could be a combination of many attributes.
- Financial freedom
- Take care of loved ones
- Provide meaningful generational wealth
- Tend to the aging with quality care
- Give peace and comfort to adult children unable to care for their aging parents
What is your “Big Why”?
The answer to this question will determine how and when you proceed in residential assisted living. Above are just a few examples, but you may have other reasons – list them, discuss them, and put them into action.
Experts at Residential Assisted Living Academy can help, click to learn more today. The team of experienced assisted living experts have helped thousands of owners put their big why into action.
Even without the money to get started, don’t allow anything to get in the way of your goals and dreams.