The Supported Living Business Opportunity

For the small business entrepreneur, the supported living needs of adults with developmental disabilities spells opportunity.

The state of California spends over $200 million per year providing supported living services to developmentally disabled adults. According to California Department of Developmental Services, this number is expected to grow significantly as the population of people diagnosed with mental retardation, epilepsy, and other forms of developmental disabilities rises. Of particular concern is a spike in the number of children diagnosed with autism. As these children become adults, they will require supported living services.

Currently about 6 million adults in California require some level of assisted living. Claritas, Inc., a direct marketing and demographic analysis company, believes this number will double by 2020. While this article discusses the assisted living business opportunity in California, similar programs are available in every state.

Serving The Supported Living Market

California provides supported living services to adults with disabilities that live in their own homes or apartments. They need help with things like shopping, doctor appointments, medication administration, and job coaching, among others. While each SLS provider must negotiate a billing rate with the state, agencies are typically paid about twice the rate of prevailing wages for their area. This translates to approximately 45% gross margin rates.

The licensing requirements for SLS providers are very minimal, but you do have to work with a Regional Center to get vendored and receive client referrals. There is no advertising allowed in this business--and frankly you won't need it. All your business comes from Regional Center referrals.

Growing Pains

Assisting adults with developmental disabilities can be a rewarding line of work. But as a small business owner, it also comes with a few headaches.

The number one problem you will encounter is hiring, training, and retaining reliable employees to work with your clients. Typical state requirements demand your employees have clean criminal backgrounds, are drug-free, and are able to safely transport clients to appointments in their own vehicle. Business owners are expected to reimburse employees for gas and vehicle expenses incurred on the job.

As an employer, you will of course be required to carry worker's compensation insurance and significant levels of liability coverage. This is all doable however, and is just a cost of doing business.

Your role of supported living provider will also require assisting some of your clients with housing issues. This can be a difficult and frustrating experience, as the majority of your clients all live on SSI and have minimal support or contact with family members.

Getting Started

California provides help to its clients through its 21 Regional Centers scattered throughout the state. To start your own supported living agency, you must first get a vendor number from your local Regional Center.

Visit: http://www.dds.cahwnet.gov to find the Regional Center for your area. All you have to do is ask for assistance in getting vendored to provide supported living services.

At that point, you will be advised of upcoming training sessions you may attend.