How to Start a Group Home Business

Owners of Group Home Standing Outside BuildingThis page focuses on starting a senior care home or nursing home. However, there are different types of group homes you can start in addition to elderly group homes, such as teen group homes, homes for children, mental health group homes and homes for those with disabilities. Many of the concepts and ideas can be used in most businesses.

In most cases, these are private residences which may have been converted for the purpose of providing living space and assistance to small groups (usually under 20) of people. These people share common living spaces, and there is staff or a resident manager on the premises.

Start by selecting a location for your residence. Each city has its own zoning requirements, but you also want to consider the neighbors. Ideally, you want to locate in a community that appreciates having your group home in the neighborhood. By the way, you might find it helpful to check out this example nursing home business plan.

To open a nursing home or group care facility, check with your city/county to get a business license and any necessary permits. Each state has its own requirements, so start by going to your state’s website and looking for “assisted living licensing”.

You can also contact the Department of Health in your state. You will also need to get a tax ID number from the IRS. Most likely, you’ll need CPR and First Aid certification as well. You can get information on this online through In addition, there are several types of insurance that you may need, liability for one. Use the box on the right to find out what you need.


If you want to start your own care home, you’ll find this resource helpful, especially if you are a beginner in this field. This guide is especially useful in answering questions and providing instructions on how to get started.

You get a sample business plan and program designs, by-laws, tips on how to obtain financing, how to acquire property and more. Topics discussed relate to group home businesses, foster family homes and other care facilities as well.

Educator Romwell Sabeniano has extensive experience in health care management – this is a great opportunity to learn from from his years of knowledge.

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Home Care Supplies & Equipment

Group homes and and care facilities can get daily living aids, equipment for bathroom safety, walking aids, skin care items, incontinence, diabetic supplies, mobility scooters, wheelchairs, wound care supplies and more.

Assisted living and care facilities can get medical supplies online for their businesses through the Medical Supply Depot. Here’s a short list of items available:

  • Daily living aids
  • Bathroom safety equipment
  • Products for incontinence
  • Diabetic supplies
  • Walking aid
  • Mobility scooters
  • Skin care aids
  • Wheel chairs
  • Wound care supplies and more

Home Care Forms and Templates provides custom forms for home care businesses. They have business manuals, medication profile forms, nursing evaluation, plan of care forms, consent for care, rights and responsibility templates, Oasis forms and more – downloadable individually.

More Group Home Resources:


An Easy Guide On How to Establish Your First Residential Care Facility
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