We suppose all businesses require some form of start-up funding, even the kitchen table ones and adult day care is no exception. We also believe that a significant part of the process of securing financing is being able to articulate exactly how you will earn. Those special dynamics associated with your various income sources including what variables might apply cannot be ignored.
This requires research that is location specific. After all public reimbursement for adult day health is not going to be the same in Florida as it is in Delaware. As a result there is a need to educate funding sources with great specificity which also demonstrates the entrepreneur’s grasp of the business.
Having assisted so many to locate compatible lenders and applicable financial products as project managers, we know the ride well and we know it is a real science. Preparing a loan package might be the biggest challenge for some. It involves positioning yourself to qualify which means you need to know the market as well as your own creditworthiness and credit challenges and be prepared to explain them in advance.
There is also a need to begin networking early in the community as a new adult day services provider which demonstrates you know how to seek the business your center will need to survive. Develop relationships that are meaningful and referral oriented so your brand becomes well known. All of this is a part of the science of start-up funding.
Consultants can be helpful as long as their advice is experienced based. It should also be multi-faceted considering you need both the clinical and entrepreneurial direction required to succeed. There is also a need to be on top of any and all regulatory requirements.
Being able to explain how you will use funds to assist you in overcoming certain challenges associated with regulatory items is important. Will municipalities ask you to modify the water supply, add special food handling equipment or widen the barrier free shower you propose? Your fund allocation in the final Business Plan should speak to this and with accuracy and specificity.
The science of start-up funding further extends to ensuring no partners have been banned from participating in federal funding mechanisms due to past criminal or similar activity. Again we are back to the science of things, which is much more than submitting a loan application.
Its important to get your checklist made well in advance. Know the requirements of individual lenders including community investment organizations. Approach each one having met all published requirements in advance. Request a pre-application consultation to put the wheels in place for a meaningful relationship.
Be sure and involve the appropriate professionals including your accountant in the finalization of all financial packages and fund pursuit strategies. The math needs to be real and pragmatic!
Surely you will take this process super-seriously and approach it as prepared as possible. In the end lenders will take you seriously and life is easier because you’ve done the homework.
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