Feasibility and Market Studies for Senior Living Communities
Making Informed Decisions for Successful Senior Living Projects
The Importance of Feasibility Studies in Senior Living
Before investing in a new senior living community or expanding an existing one, it’s critical to conduct thorough research and assess market viability. Bobby Sumner Consulting (BSC) specializes in feasibility studies designed to help senior living communities, investors, and leadership teams determine whether their project is positioned for success.
Launching or expanding a senior living community involves significant financial risk, and understanding the local market is key to mitigating that risk. A feasibility study helps answer crucial questions like:
Unmet Demand
Is there unmet demand for your services in the target market?
Competitive pricing
What services and pricing will resonate most with your ideal residents? What competitive threats exist, and how can your community stand out?
Drive revenue and reach goals
What are the financial requirements to meet occupancy and revenue goals?
The Benefits of a Feasibility Study
A well-conducted feasibility study provides leadership and potential lenders with clear insights into whether to proceed with a project. Benefits include:
Informed Decision Making
Determining if the project is a "go" or "no-go."
Risk Mitigation
Understanding potential risks and resource requirements before making large investments.
Fine Tuning
Adjusting project parameters (such as pricing, services, or amenities) based on market data to better align with demand.
Market and feasibility studies make a difference
50%
Higher likelihood of project success
Communities that conduct thorough feasibility studies with BSC experience a 50% higher likelihood of project success compared to those who proceed without one, by avoiding costly mistakes and aligning their strategy with real market demand.
Market Research
Assessing demand, analyzing trends, and identifying market gaps.
Competitive Analysis
Reviewing the offerings and positioning of your competitors.
Financial viability
Estimating the required revenue to meet project goals and analyzing pricing structures.
Risk analysis
Providing insights on the potential risks and investment needs based on market conditions.
Frequently Asked Questions
A: Depending on the scope, a typical feasibility study takes 6–8 weeks, including data analysis, site visits, and the final report.
A: The penetration ratio shows how much of the target market you need to capture to meet your goals. A higher ratio may indicate slower occupancy growth and increased costs.
A: Yes, we can assess the market conditions for expanding an existing senior living community, identifying potential challenges or opportunities.
Geographic Analysis
Evaluating the location and surrounding area to assess demand.
Demographic Review
Analyzing age- and income-qualified households in the market area.
Competitive Landscape
Identifying local competitors and their offerings.
Risk Assesment
Determining the potential risk and investment required for success.
Saturation and Penetration Ratios
Measuring market demand and how much of the market you need to capture to guarantee project viability.
Financial viability
Estimating the required revenue to meet project goals and analyzing pricing structures.
What We Analyze in a Feasibility Study
Our research takes an in-depth look at all the factors that could impact the success of your senior living project. BSC’s market studies consider: