Writing a Business Plan for a Halfway House

by Nancy Wagner

Helping people get a new start on life is a worthwhile reason for opening a halfway house. As a private
entity, you also need to create a business out of offering housing that will your company’s bills paid and
provide an income from which you can continue to offer these services. Developing a business plan
helps you figure out potential revenue streams for your halfway house while also identifying the
financial requirements you need to open your doors.

Description

Provide details about the location of your house, such as its proximity to public transportation services
and other agencies or businesses, like medical care facilities, sober living counseling services or
community colleges. Explain how the location you’ve picked out aligns with zoning laws and housing
regulations. Describe the services you provide, such as accommodations, meals, training skills and
counseling. Talk about the eligibility requirements for people who need your services, the length of stay
allowed and how many people your halfway house will hold.

Operations and Management

This section explains how you plan to manage your halfway house and plan for staff to be available 24
hours per day. According to the Small Business Administration, your staff needs to include professional
consultants, such as social workers. You also need a development team with the education and
experience to help the people living in your supportive housing get back on their feet.

Marketing

Identify the target market for your home, such as adults with disabilities, people overcoming substance
abuse or former criminals making a transition out of prison. Go into more detail about your specific
market, such as their age, the assistance they currently receive and who provides those services. Raising
awareness about your halfway house is key to filling it with people who need the services you offer, so
explain how you plan to use publicity to gain community involvement and to encourage participating in
any corporate fundraising efforts you plan. Describe the process of obtaining referrals from health care
businesses, employment firms or counseling practices that serve the same target market.

Finances

Outline the expenses your halfway house must cover, such as staff salaries, furniture to make rooms
comfortable, food, utilities and computer systems to keep track of each resident’s information and
progress. List the ways you plan to bring revenue into the business, such as through grants from private
foundations, corporate fundraising efforts, monthly rental fees or government programs, such as HUD.
Once you subtract the expenses from your revenue, you'll get a clearer picture of how much profit the
business is capable of making.

Executive Summary
Once you finish the plan, write a summary that explains the most important aspects of opening your
halfway house. This summary goes at the beginning of the plan. Talk about the need for a halfway house
in your area, the positive impact it will have and who your facility will serve. Mention how you plan to
help people who live in the area accept the facility. Briefly explain how you plan to fund the business
and why your location is ideal for providing a safe place to stay. Outline any financial needs you have so
potential investors quickly identify how much you need to get started.

References (3)

 SBA.gov: Resources for Starting a Halfway House or Transitional Housing Facility

 University of North Carolina: Business Plan for a Startup Business
 Bplans: Emergency Shelters Business Plan