A group home is a long-term, community-based facility for a particular set of people (young people) who cannot live with their family due to behavioral concerns, for residents who suffer from substance misuse, or for residents who need care and therapy.

It is important to note that some group homes provide care for people with disabilities and mental illnesses. According to data revealed from the U.S government, there were about 7,629 group homes in the country as of 2021, a rise of 1 percent over the previous year. The data also reveals that Florida has 296 group homes.

Steps on How to Start a Group Home in Florida

  1. Conduct Market Research

Research is essential because it will enable you to carry out a rigorous and in-depth analysis of a certain issue you aim to address with a group home, using scientific approaches. Market research for a group home helps you to get a thorough analysis of the data, and also opens a dialogue for the development of fresh ideas, concepts, and perceptions of the competitive landscape.

With proper market analysis, you will be able to go into uncharted territory and discover good opportunities in the sector where you wish to establish your business.

a. Who is the Target Market for Group Home?

The target market for a group home is a group of people, under the age of 21 who have been removed from their home due to abuse or neglect by a parent or guardian.

b. Is Group Home a Profitable Business in Florida?

Yes, group homes are a profitable venture. According to statistics, the orphanages and group home sector is worth over $8 billion in the United States. There are currently 9,623 licensed correctional facilities and group homes with a combined workforce of about 124,872 located all over the country.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches in the group home industry, and they are;

  • Group home for foster children and teenagers
  • Group home for adults with disabilities
  • Maternity group home.
d. Who are the Major Competitors in Florida?
  • Central Florida Group Homes
  • St Augustine Group Home
  • Big Heart Group Home
  • Reyna Group Home
  • Central Florida Group Homes
  • Purestart Group Homes
  • J J’s Group Home
  • Sunset Meadow Group Home
  • Wilkins Group Home
  • Devereux Palm Bay Group Home
  • Ridgeland Group Home Inc.
  • Duku Group Home
  • Heaven’s Doorway of Central Florida, LLC
  • Duvall Homes
  • Noel’s Residence Group Home
  • Hickson Group Home.
e. Are There County or State Regulations or Zoning Laws for Group Homes in Florida?

Yes, there is zoning laws mandate that group homes adhere to, some of which are exclusive to it. These regulations are made to deal with the conditions that arise from a business operating in a residential area. Numerous laws aim to lessen the adverse effects the neighborhood noise and increased automobile traffic might be in the community.

f. Is There a Franchise for Group Homes in Florida?

No, there are franchise opportunities for group homes.

g. What Do You Need to Start a Group Home in Florida?
  • A feasibility report
  • Business and marketing plans
  • Business licenses and permits
  • EIN (Employer Identification Number)/Federal Tax ID Number
  • A corporate bank account
  • Employees
  • An equipped facility.
  1. Choose a Memorable Group Home Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.

Some of the catchy business name ideas suitable for a group home are;

Creative Group Home Business Name ideas
  • Superb Teens® Group Home, LLC
  • Orlando King® Group Home, LLC
  • Augustine™ Group Home, Inc.
  • Consecrated Cohort™ Group Home, LLC
  • Wholly Care® Group Home, Inc.
  • Town ‘N’ Country® Group Home, LLC
  • Destiny Helpers® Group Home, LLC
  • Port St. Lucie® Group Home, Inc.
  • Titusville Community® Group Home, Inc.
  • Church Street® Group Home, LLC
  • Lutz Hopewell® Group Home, LLC
  • Bartow Care™ Group Home, Inc.
  • Palm Bay™ Group Home, Inc.
  • Central City® Group Home, LLC
  • Brandon Community® Group Home, Inc.
  • DeLand Johnson® Group Home, Inc.
  • Jacksonville Community© Group Home, Inc.
  • Cheerful Creation™ Group Home, LLC
  • John Mclean® Group Home, Inc.
  • All Smiles® Group Home, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for a Group Home in Florida?

There are several options when it comes to a group home in Florida, but the one most organizations in the industry considered best is LLC, this because LLC protects them against any kind of lawsuits.

b. Steps to Form an LLC
  • Choose a name for your LLC
  • File articles of organization
  • Choose a registered agent
  • Decide on member vs. manager management
  • Create an LLC operating agreement
  • Comply with other tax and regulatory requirements
  • File annual reports.
c. What Type of License is Needed to Open a Group Home in Florida?
  • General Business License
  • Care Giver or County Worker License
  • Health and Safety Permit
  • Zonal Permits
  • Director’s License
d. What Type of Certification is Needed to Open a Group Home in Florida?

You don’t need any certification to open a group home in Florida.

e. What Documents are Needed to Open a Group Home in Florida?

These are basic legal documents that are required if you want to run a group home in the United States of America;

  • DBA
  • EIN
  • Business and Liability Insurance
  • Federal Tax Payer’s ID
  • State Permit and Building Approval (for your facility)
  • Certificate of Incorporation
  • Care Giver or County Worker License
  • Health and Safety Permit
  • Zonal Permits
  • Director’s License
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLC
  • Insurance Policy
  • Online Terms of Use (if you have a website)
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

Registering a brand or for intellectual property, protection is not necessary if you are starting a group home business. The nature of the business allows you to manage the business without having any reason to sue anyone for using your intellectual property unlawfully.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Group Home in Florida?

The startup costs could range from $250,000 to over $500,000.

b. What are the Costs Involved in Starting a Group Home in Florida?
  • Business registration fees – $750
  • Legal expenses for obtaining licenses and permits – $7,300
  • Business consultant fee – $2,500
  • Insurance – $2,400
  • Rent/Lease – $150,000
  • Other start-up expenses include stationery $500, and phone and utility deposits $2,800.
  • Operational cost (salaries of employees, payments of bills et al) – $30,000
  • Start-up inventory – $5,000
  • Store equipment (cash register, security, ventilation, signage) – $4,750
  • Equipment – $30,000
  • Website $600
  • Opening party $3,000
  • Miscellaneous $5,000.
c. What Factors Determine the Costs of Opening a Group Home in Florida?
  • The choice of the location you intend covering
  • The required licenses and permits
  • The type of facility
  • Additional services offerings
  • The cost of hiring and paying a business consultant
  • The cost of branding, promotion, and marketing of the group home
  • The cost of equipping the group home
  • The cost insurance policy covers
  • The cost of registering the business
  • Source of your supplies and ongoing expenses
  • Cost of recruiting and training employees
  • The cost of the purchase and customizing of uniforms, shoes, and caps for the employees
  • The cost of the grand opening of the group home.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

You don’t need to build a facility for your group home because you can rent a facility to get the business started. When you have gained ground in the industry by attracting grants and donations, then you can consider building your own facility, which will cost less than $550,000.

e. What are the Ongoing Expenses of a Group Home?
  • Cost of stocking up supplies such as learning materials, medications, toiletries and bedding et al
  • Cost of food supplies and ingredients
  • Utility bills (gas, internet, phone bills, signage and sewage et al)
  • Salaries of employees,
f. What is the Average Salary of your Staff?
  • Head of Group home (President) – $45,000
  • House Manager (Administrator) – $38,034
  • Home Caregivers (County Aging Workers) – $35,878
  • Account Officer – $35,000
  • Front Desk Officer – $28,000
  • Cleaners – $22,000
  • Security Guards – $21,600 Per Annum.
g. How Do You Get Funding to Start a Group Home?
  • Raising money from personal savings
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Port St. Lucie® Group Home Facility, LLC is a group home facility that will be based in Port St. Lucie, Florida. The organization is dedicated to serving a small number of adolescents, and the youth in our group home will live in a setting that feels like a family with trained staff and successful programs.

We will shelter 4 to 12 children at a time in a family environment where they can take advantage of community resources like jobs, health care, education, and leisure activities.

b. Products/Service

We will offer a facility and different kinds of services aimed at offering counseling, round-the-clock oversight, and support to problematic teens in a setting that feels like home. We will also offer psychiatric services to youngsters who are emotionally disturbed.

Our products and services are made to support short-term residential therapy for children and teens before assisting their return to a family context (until foster families can be located for them) or reintegration into the community if they are old enough to live independently.

c. Mission Statement

Our mission is to create an effective group home that offers foster children and teenagers several possibilities for continued family contact and interaction while also being dependable, practical, and flexible.

Vision Statement

Our vision is to support the community in accommodating, empowering, and equipping disadvantaged and homeless children in our community and city.

d. Goals and Objectives

The goals and objectives for a group home are for them to be protected, and cared for and then place in a family or establish a career path that can make them self-sufficient if they are old enough to live independently.

e. Organizational Structure
  • Head of Group Home (President)
  • House Manager (Administrator)
  • Home Caregivers/County Aging Workers Fundraiser
  • Account Officer
  • Front Desk Officer
  • Cleaners
  • Security Guards.

Marketing Plan

a. SWOT Analysis


  • Ideal location for group home facility
  • Experienced and qualified employees and management
  • Access to a pool of donor organizations
  • Well-secured and clean facility
  • Well-structured programs are aimed at helping teens live comfortably as though they are with their families.


  • Budget limitations
  • Lack of standard educational structure
  • Inability to initially run and manage the organization without the support of donations and grants
  • Operating from a leased facility (restriction to modify the facility to suit our style and taste)
  • Inability to retain our experienced and qualified employees longer than desired.


  • The demand from individuals aged 15 and under, is expected to remain high because the majority of orphanages and group homes cater to children in this age bracket regardless of external circumstances.
  • Government funding for Medicare and Medicaid and private donations are anticipated to increase for support for group homes.
  • The orphanages and group homes industry is projected to reverse its decline trend and increase in the coming years.
  • The pool of finance from donor organizations, individuals, and relevant government agencies et al.


  • Lack of support from stakeholders and the government
  • Unfavorable government policy and regulations
  • Community resistance
  • Liability issues
  • Reduction in abusive homes and teenage pregnancies.
b. How Do Group Home Make Money?

Group homes make money via grants and donations from donor agencies and individuals, if they operate as nonprofits.

c. Payment Options
  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer.
d. Sales and Advertising Strategies
  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community-based events/programs for the abusive teens
  • Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your business
  • Install your Bill Boards on strategic locations around the city
  • Engage in roadshows from time to time in targeted neighborhoods to create awareness of your group home business
  • Distribute your fliers and handbills in target areas
  • List your group home in local directories/yellow pages
  • Advertise your group home on your website and employ strategies that will help you pull traffic to the site.
  • Position our Flexi Banners at strategic positions in the location where your group home is located
  • Ensure that all your staff wears your branded shirts and the vehicles are well branded with your company logo et al.
Financial Projection
a. How Much Should You Charge for your Product/Service?

The average cost of living in a group home will be between $35,000 and $65,000 per year.

b. How Much Profit Do Group Home Owners Make a Year?

Operating the group home as a non-profit organization requires that no profits be pocketed by the owners or board of directors. Any profits must be re-invested into the organization.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the group home (number of teens accommodated per time)
  • The location group home is covering
  • The management style of the group home
  • The business approach and model of the group home
  • The advertising and marketing strategies adopted by the group home
  • The number of years the group home is in business.
d. What is the Profit Margin of a Group Home Product/Service?

Group homes are not designed to make profits.

e. What is the Sales Forecast?
  • First Fiscal Year: $240,000
  • Second Fiscal Year: $380,000
  • Third Fiscal Year: $520,000
  1. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Group Home?
  • The demography of the location as it relates to the population of foster children and abusive teenagers
  • The demand for services offered by group homes in the location
  • The purchasing power of businesses and the residents of the location
  • Accessibility of the location
  • The number of group homes and other facilities like orphanages et al, in the location
  • The local laws and regulations in the community/state
  • Traffic, parking, and security et al.
b. What City is Best to Open a Group Home in Florida?
  • Titusville, Florida
  • Jacksonville, Florida
  • DeLand, Florida
  • Brandon, Florida
  • Palm Bay, Florida
  • Bartow, Florida
  • Orlando, Florida
  • Port St. Lucie, Florida
  • Town ‘N’ Country, Florida
  • Augustine, Florida.
c. What Equipment is Needed to Operate a Group Home?

Other than office and nursing supplies, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency readiness kit, and an emergency plan, you won’t need any technical equipment while starting a group home. However, you will need a computer, printer, software programs, telephone, pager, photocopier, scanner, and fax machine to set up a small office.

  1. Hire Employees

You should think about your finances before deciding on the quantity of staff you should hire when initially starting the business. On average, you would require the services of the following specialists to launch a typical group home on a large scale: the head of business (you can fill this role), house manager (administration), caretakers, front desk agent, cleaners, and security guard.

  1. Launch the Business Proper

No group home opens for business without first organizing an opening party to officially launch the business. You can do a soft opening party if you are operating on a low budget, or you go for a grand opening party for all and sundry in the location where your group home will be located.

The bottom line is that with a proper launching, you will officially inform people in your city that your group home is open for services.

a. What Makes a Group Home in Florida Successful?
  • Ability to attract grants and donations
  • Disciplined and dedicated workforce
  • The heart to serve and care for children and teens
  • A good relationship with stakeholders
  • Good care techniques and programs.
b. What Happens During a Typical Day at a Group Home in Florida?
  • The group home is open for the day
  • Caregivers are briefed in the office (in some cases though)
  • Caregivers provide all the needed support and care to foster children and teenagers
  • Marketing/website upkeep
  • Administrative duties are carried out
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Group Home in Florida?
  • Good managerial and human development skills
  • An interest in helping and caring for other children, regardless of their condition
  • The ability to communicate clearly and sensitively when talking to people and their families
  • Good listening skills
  • Problem-solving skills and the ability to adapt, and act accordingly to situations
  • Organizational skills
  • Experience working as a caregiver or social worker
  • Experience in working for a group home.