Table of Contents
About the Author…………………………………………………………….2
Introduction……………………………………………………………………3
Research………………………………………………………………………...4
Business Plan…………………………………………………………………..5
Market Analysis……………………………………………………………….6
Capital……………………………………………………………………………7
What is an Adult Day Center………………………………………………8
Entity…………………………………………………………………………….9
Know your State…………………………………………………………….10
Social vs. Medical Model………………………………………………….11
Location………………………………………………………………………..12
Funding………………………………………………………………………..13
Do’s…………………………………………………………………………....14
5 Don’ts……………………………………………………………….……….15
Got It……………………………………………………………………………16
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About the Author
Teberah Alexander (Nurse T); a long- time nurse and entrepreneur renowned for her combination of compassion and inspirational teaching style.
Having graduated from Michigan State University in 2003 with a bachelor’s degree in Nursing, Teberah spent the early part of her career serving patients in Labor and Delivery, Cardiac, ICU and the Long-Term Care Unit. She later established Compassionate Home Care Services (2006); a company dedicated to supporting older people whose health needs were otherwise ignored. Discovering a passion for improving the quality of life for dementia patients, she became a Certified Dementia Practitioner and established Kathelene’s Adult Daycare Center (2013) in memory of her grandmother, Kathelene. Nurse T’s other businesses consist of Excelling Nursing Academy (CNA School 2017), Caregiving Staffing Solutions (2018), and Kathelene’s Senior Village (Independent Senior Apartments; 22,000 sq ft on 6.5 acres 2018).
Teberah has built an impressive career and is widely regarded as an expert in nursing and adult social care. She formed Nurses Who Care to help like-minded people become exceptional nurses and forge successful careers in the healthcare industry.
Teberah is a member of the Michigan State University Alumni & Black Alumni Associations, and has served on the board of Michigan State University College of Nursing Alumni Association. She is also a proud member of professional minority nursing sorority Chi Eta Phi Inc. and the loving mother of Amiya Alexander, a MLK Jr. Scholar majoring in Nursing, Dance, and Spanish at New York University.
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Introduction
Let’s Get Started: After long days and hours you have decided to step up and turn your hobby into your business. I congratulate you for believing in yourself enough to prevent your business from becoming your expensive hobby. Let’s say that your new business is caring for family/friends. You have been taking care of your friends when they were sick: parents, grandparents, patients, neighbors, and many others for a long time, but you never got paid for this service. You do not know if people will pay for your service. You do not know your competition. You do not know how much to charge. You want to start an adult daycare business, but you don’t know where to start. Nurse T has that secret formula to opening your adult daycare!
Lets Go!
My Promise Statement
To help my students who are looking for a business opportunity to open an adult daycare center so they can have a breakthrough, regain confidence, and to “Work from EVERYWHERE” #WFE.
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Research
Students, you must research! You don’t want to start an adult daycare to learn there is an adult daycare next door or within a one-mile radius! To begin researching the adult daycare business the best place to start is GOOGLE, https://www.google.com it’s free. Search by the name of your service. The results will tell you what adult day cares are in the area, what services they provide, how much the services are, and what services your competitors are providing. Now take it a step further, visit Reference USA http://resource.referenceusa.c om where you can learn more about your competition and industry. As a patron of the library, you can access Reference USA through your local library. Your valid library card will grant you access through your library’s website. More than 4 million customers use their products and services via their local library branch. The Kaufman Foundation https://www.kauffman.org is one of the best comprehensive websites for entrepreneurial research. They work with entrepreneurs, empower them with tools and resources, and work to break down barriers that stand in the way of starting and growing your business.
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Business Planning
It’s time to make a plan! Developing your strategy and creating your business plan is essential to the success of your adult daycare. This plan will help you identify the who, the what, the when, and the where and turn your idea or hobby into your legitimate business. Don’t you just wish someone would tell you your business idea will stand the chance to excel? It may not be that easy but there are tools, templates and other resources that can help you create your plan. You may not get the direct answer but Enloop www.enloop.com will give you a performance score. Over 305,800 business owners, accountants, entrepreneurs and students use Enloop to write and manage their business plans. How this works is once you enter your company information Enloop will generate a score with the information you entered and calculate a score to help you improve your plan. Do you really know what a business plan really looks like? At BP www.bplans.com they have over 500 free sample business plans for numerous types of businesses.
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Market Analysis
Students know your market! What is a market analysis? A market analysis provides information about industries, customers, competitors, and other market variables. You can also determine the relationship between supply and demand for a specific product or service. Based on these insights, you can make more informed decisions about possible marketing strategies.
Free business statistics and financial ratios. BizStats www.bizstats.com is the home of free, accurate business statistics which are well organized and easy to access. These are two other sites that can be a resource for gathering data www.qualtrics.com and www.tableau.com
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Capital
Students: Do you need help? There are mentors, counseling at no cost to you, and loans supported by the U.S. Small Business Administration (SBA) https://www.sba.gov. What is SCORE? SCORE https://www.score.org has served as America’s premier source of free business mentoring and education for over 50 years. As a resource partner of the SBA, SCORE has helped more than 11 million entrepreneurs through mentoring, workshops and educational resources since 1964. These are a few investment companies who provide capital to small businesses. You must look on the SBA website to see who has funding available. I cannot guarantee you will receive funding.
Aldine Capital Fund III, L.P. Albert L. Brahm 444 West Lake Street, Suite 4550 312-346-1004 Chicago, IL 60606
Anagenesis Capital Partners SBIC Fund, L.P. Melanie Brensinger 575 Fifth Avenue, 14th Floor 646-661-2343 New York, NY 10017
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What is an Adult Daycare?
Our goal at Kathelene’s Adult Daycare is to prevent social isolation and to provide respect in a safe and fun environment. No Senior
Left Inside, No Veteran Left Behind.
An Adult daycare is a non-residential facility that supports the health, social, nutritional, and activities of daily living in a professional group setting. This is a planned program of daily activities for adults who require supervision. An adult daycare offers families and caregivers a break from their caregiving duties while knowing their loved one is in a safe place.
Adult day care centers open during daytime hours, Monday through
Friday. Activities include bingo, fitness, yoga, crafts, movies, karaoke, field trips, and much and more. Other services that are offered are personal care, health services, and transportation.
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Do You Have your Entity Set Up?
Be sure you have your entity set up prior to opening your business.
Decide with your team if your business should be a corporation or a
LLC. Know what the difference is.
Employment Identification Number (EIN), also known as a Federal
Tax Identification Number, and is used to identify a business entity.
For more information, our course “Nurse T’s Business Basics” can guide you through this process.
Always keep your business banking separate from your personal accounts.
Once you receive your entity and EIN, you want to be sure to apply for your NPI number https://nppes.cms.hhs.gov/#/. A National
Provider Identifier (NPI), which is a unique 10-digit identification number issued to health care providers in the U.S. by the center for
Medicare and Medicaid Services (CMS). HIPPA covers entities such as providers completing electronic transactions, health care clearing house, and health plans are required by regulation to use NPI to identify covered healthcare providers.
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License/Certification
Students know your State! Identify if your state is a regulated state. This website aspe.hhs.gov will allow you to identify if your state will need a license and/or certifications, to operate an adult daycare. Each state is different.
Michigan is not a regulated state therefore, I do not need a license to operate my adult daycare.
Some states require both a license and certificates, other states require only one or another, whereas other states may not require either. If your state is regulated you will have to print off the regulations to be sure your policies, procedures, and operation is compliant with state regulations.
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Identify Your Model
Social Model: is a structured program that provides functionally impaired older adults with socialization, supervision, personal care, and nutrition in a protective setting.
Medical Model: is a Daycare that offers nursing care, including medication administration, occupational and physical therapy, routine dental care, podiatry, social work, nutritional counseling, and a hot meal.
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Location
What is the right location? This will be initiated in your research.
Do not sign your lease to fast without knowing what your payors expect your building to include to be an approved vendor. You want to check with the city business planning department to learn what the city will expect in order to give you an occupancy permit.
An occupancy permit is a permit issued under the Building Act 2011 which specifies the authorized use and classifications for a building such as “office” or
“retail”. The legislation requires that the owner and occupants of all buildings to obtain occupancy permits before building spaces can be occupied and used.
Once you have clarified the items above you can sign your lease but ask the landlord if they would honor your first 1-3 months free which will give you time to receive your occupancy permit and to start being paid.
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Funding
Medicare does NOT pay for adult daycare!
You MUST have multiple ways of receiving payments from a variety of funders.
They will be discussed in detail in our online course.
Be sure to have your assistant organize a spreadsheet to include columns for the following, Payors Name, contact name, address, phone, email, fee schedule, survey, inspection requirements along with the length of time it will take to be approved.
Medicare will cover therapy services at an adult daycare which means you
MUST have a MSW providing therapy in order to bill Medicare.
Private Pay: you need clients who have disposable income who can afford $65-
$100/day.
Area on Aging: this will vary by state. You will have to identify if they have the
Medicaid Fee Waiver to cover adult day care services.
Auto Insurance (All State, AAA, Farmers): will pay for their victims who receive attendant care and community reintegration services.
Medicaid will pay for adult daycare in certain states, you have to do your research to identify if your state qualifies.
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10 DOS AND DON’TS WHEN OPENING AN ADULT DAY CARE
5 Dos 1. Knowledge: Please be sure to do your research and homework before you invest. You do not want to make unnecessary expenses to early. Know if you want to offer a medical and/or social model at your center. 2. Identify if you need a License for adult daycare in your state. Each state is different. In Michigan we do not need a license. If you need a license see what the criteria is. 3. Know who your funding sources are. Which agencies will pay you for Adult Daycare? Medicare, BCBS does not cover adult daycare. 4. Identify an area for your location where the community has disposable income. Be sure your facility will not need major construction and that it will pass inspection for an occupancy permit for your operation. There is no need to lease a building that cannot pass inspection. 5. Have your team of CPAs, Bookkeeper, your coach, an attorney, insurance agent, billing software, payroll, qualified staff and payroll company interviewed in advance. They will help you with your planning and budget.
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5 Don’ts 1. Do not lease or buy a location until you have done your research first! You need to know what your payors and licensing agents will require as far as construction. You want to be sure the building can pass inspection for an occupancy permit for adult daycare. A market analysis should be done to be sure there is a need for an adult daycare. 2. Please do not allow coaches or consultants to teach you if they do not own their own successful center. You need to see that they have an operating adult daycare. There are numerous coaches and consultants who are not qualified to educate you on adult daycare so be very cautious. Do not allow the consultants to tell you which contracts they can get for you. Please be sure you understand who and how you will get real contracts that will pay. 3. Do not open an adult daycare for money only, be sure you have a passion for seniors. For families this is just like dropping your children off at their first day of school. The families must build your trust and if they feel that you are only in it for the money, they will probably leave. 4. Know your Numbers: Do not rely on one payment source. If that source is interrupted how will your business survive? You have to identify funding sources for adult daycare which are identified in my online course. You have to have multiple streams of funding sources. 5. Do not hire unqualified/incompetent staff just because it’s cheaper. Do not take cheap or easy ways out for things that are as important such as this. Hire staff who are competent and who has some type of certifications. They need to have compassion for your clients and treat them as though they are their own family members.
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Got It!
Do You Know What You Can Do It?
So, let’s see what you have accomplished…
You have identified ways/tools to research your industry
You have identified what a business plan is and resources to create one
You have identified what the SBA is and resources that are offered
You have identified what an adult day care is and the services offered
You have discussed what an entity and EIN is
You have learned what it means to be state regulated
You can identify the difference between the social and medical model
You know how to identify a good location for your operation
You have identified funding sources for adult day care
You have identified the “Dos and Don’ts” when opening an adult daycare
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For More Information
Add the Author on Facebook: Teberah Alexander
Follow her on Instagram: @excelwithnurset
Follow us on Instagram: @fhadultdaycare
Like us on Facebook: Kathelene’s Adult Day Center
Please visit our website: www.farmingtonhillsadultdaycare.com
Thank You,
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