In 2020, the federal government’s budget to address the country’s growing drug abuse crisis was $35 billion.

Drug and alcohol addiction recovery is a challenging endeavor. Locating the right support system is hindered by the lack of funding for programs. Sober living homes provide a supportive transitional environment for individuals preparing to face the world.

Many people inquire about how to start a sober living home. However, being able to open one requires a lot of commitment. You need to provide a consistent and compassionate support system for physically and emotionally vulnerable individuals.

Peer group recovery is used in sober living homes to help people gain strength and coping skills in a safe environment. Sober living networks provide support and quality control for sober living facilities.

If you’ve considered opening a sober living facility and wondered what steps to take, we have you covered. Keep reading to learn how to write a business plan for starting a sober living home.

How to Start a Sober Living Home

There are several steps you must take when starting a business. The first is to create a business plan.

The business plan starts with key features. It’s essential to include the following categories.

Provide examples of the type of housing for the program. Explain if your goal is to rent or buy.

Determine how many people you intend to accommodate at once. Research the number of existing sober living homes in your area. Detail how long they’ve been in operation and what services they offer in comparison to your plan.

Next, explain the services you plan to offer. Services can include:

  • Substance Abuse Counseling
  • Job Counseling
  • Financial Counseling

Outline how you intend to attract residents. It’s important to your success to have immediate access to the clients you plan to serve. A good source includes developing a relationship with the Department of Veteran Affairs.

Once you’ve completed your business plan, contact your state’s business affairs division to apply for an LLC to incorporate the business. Next, obtain an IRS Employer Identification Number. Gather funds for operations.

Make a list of the operating expenses of a sober living home. Include costs for staff, utilities, internet, cable, groceries, and rent or mortgage.

Next, create a list of everything you need to furnish and equip the house for multiple people. Choose a home based on your monthly expenses.

Determine how much you must charge residents and how long they will stay in your home. Sober living facilities typically don’t cost much. They also help residents get back on their feet financially more quickly and easier.

Learn About Zoning

Investors for sober living homes will need to know if pushback or anything is hindering the project. For example, when starting a sober living home, you might run into problems. Make sure you research and understand your local zoning regulations.

Purchase or rent a home in a peaceful neighborhood, such as a duplex or single-family home. Neighbors are sometimes skeptical because of negative connotations. They might protest having a sober living facility next door or in the community.

Fair housing laws and the support of the Americans with Disabilities ACT could come into play. We have laws and organizations that assist individuals in starting a sober living home.

Opening a sober living home does not necessitate a certification or license. However, there are voluntary certification procedures in some states.

Choose a House Manager

Choose whether your sober living home is for men, women, or both genders. To assist with house management, invite a person of the appropriate gender. Consider selecting a person sober for six to twelve months and signing a contract with them for a set amount of time.

As long as they stay in their recovery programs, people in recovery can run dependable sober living homes.

Set a reasonable salary, which may include free meals and lodging. Future house managers can come from residents who exhibit supportive and responsible traits.

Consider how you will decide whether someone should live in your home. Create a list of the information applicants must provide, including:

  • identification
  • evidence of US residency
  • character references

The information you obtain will help with the process. Knowing more about the applicant will help you determine if they are suited for the role.

One crucial thing about running a sober living home is keeping track of all employees, residents, expenses, income, and receipts. Although the house manager can assist with recording this information, it’s best to use a tax service or hire an accountant.

Policies and Requirements

Create a residency policy handbook outlining the responsibilities and rights of residents. Include a zero-tolerance policy to address alcohol and drugs. The handbook should be distributed to each resident.

Require residents to sign confirming they have received the policy and accept the terms. Look for recovery resources in your area, like Alcoholics Anonymous and Narcotics Anonymous. Make it a requirement for residents to attend meetings.

Finding Investors

Finding investors for sober living homes is no different than finding investors for starting a business in any other industry. You need a strong business plan and an implementation strategy.

Investors first want to know their return on investment (ROI). Next, they want to know if you have a plan in place to guarantee profitability within a set timeframe.

Your business plan is there to help guide you through the process of raising capital. Ensure that you’re prepared to answer questions about the following items:

  • startup costs
  • number of residents
  • cost per resident
    • food
    • utilities
    • insurance
    • staff
  • licenses and fees

Potential investors for sober living homes may also inquire about other funding options. Other options can include grants, donations, and bank loans.

Are You Ready to Open a Facility?

Understanding how to start a sober living home is a small part of the process. The reward comes in the lives you’ll impact. To be successful, you’ll need a well-thought-out business plan

If you’d like more information, read more on how to maintain your sober living facility.