Sally, a 34-year-old entrepreneur from California, currently manages two successful residential care homes for the elderly, providing personal care to twelve residents. Her mission? To create a warm environment that feels like family.
When asked about her decision to enter the long-term care industry, Sally explained that she recognized a significant demand. In 2015, she left her stable job as a financial analyst to embark on her entrepreneurial journey, initially operating a traditional Chinese medicine clinic and investing in Airbnb properties. However, it was in 2019 that she spotted the opportunities in long-term care and invested in a property, transforming it into a licensed residential care home to meet the personal needs of various elderly individuals.
According to a 2020 report from the Administration for Community Living, 70% of seniors over 65 require some form of long-term care. Yet, census data from the same year revealed that out of 73 million Baby Boomers, only 1.6 million beds were available.
“We’re facing a looming aging crisis,” Sally remarked. “Not only is there a shortage of beds, but there’s also a significant gap in staffing for caregivers and nurses. I want to help address this issue.”
Beyond the scarcity of beds and services, Sally aims to distinguish her facilities from others by addressing common shortcomings in the industry, such as outdated management and inconsistent care quality. For instance, she hosts annual birthday parties for residents to celebrate in a loving environment. She also acknowledges the unique needs of her residents, like accommodating a veteran who prefers to drink milk at 3 AM, ensuring they can maintain their habits. Moreover, Sally integrates the latest technology to accurately track residents’ healthcare needs and monitor caregiver performance.
“My goal is to make the aging process and facing death less daunting,” she shared. “Through quality care and a supportive environment, I want our elderly to live their final years cleanly and with dignity.”
Sally’s small-scale facilities enable her to provide comprehensive personal care for each resident, keeping her initial investments manageable. She reports achieving stable profitability just months after opening, with profit margins ranging between 25% and 30%, with the largest costs going toward staffing. Caregivers or nurses starting their own facilities could see even higher margins of 40% to 50%.
As more people recognize opportunities in the long-term care sector, Sally is seeing an uptick in inquiries about her success. She notes that this industry is recession-proof and offers valuable contributions to society. With more individuals getting involved, there is a potential to enhance both the quality and quantity of long-term care in the U.S. She has also observed that governments are increasingly motivated to tackle aging issues, offering favorable small business loans and subsidies for eligible seniors seeking care.
Reflecting on her early entry into the elder care industry, Sally notes how her personal experiences shaped her path—having witnessed the illness of her own family members and being influenced by her mother, a nurse. She recognizes that many operators in the field are older individuals caring for even older seniors, which has propelled her commitment. Currently pursuing an MBA at Harvard, she aims to connect with industry leaders and acquire deeper business knowledge to position herself as a pioneer in the field. Sally is also preparing to launch two additional care homes in California, aspiring to establish more facilities that align with her high standards of care.
“Although it may seem that the elder care industry is focused on life and death, my journey in this sector is incredibly fulfilling because I’m creating substantial value,” she concluded.
