RETIREMENT HOME BUSINESS PLAN

I. Executive Summary

Company Description

Hearthstone Senior Living—named to evoke warmth, home, and stability—launches in 2026 in the U.S. senior living industry to deliver a full continuum of care from independent living to assisted suites. We are opening a modern community built around a $1.35M investment in high-end amenities and resident-facing technology. Core offerings include private residences, flexible dining plans, on-site wellness and social programming, and licensed care services delivered via a proprietary "Lifestyle Tiers" model that lets residents choose and change housing, dining, and care intensity without relocating. One-liner: We let active older adults stay independent while scaling support as needs change.

Operations begin with a multidisciplinary management team of 15.0 FTEs in Year 1, expanding to 40.0 FTEs by Year 5, covering clinical, hospitality, maintenance, and sales functions. Short-term goals are to achieve stabilized occupancy of our target demographic—active retirees and older adults seeking flexible care—within 18 months and prove tier-up conversion metrics. Long-term goals are to reach 90% occupancy, maintain gross margins that support reinvestment, and replicate the Lifestyle Tiers model at one additional site by Year 5. One-liner: We compete on flexible care, premium amenities, and operational scale.

Problem

Aging adults in the U.S. face rising home-maintenance burdens and growing social isolation that harm mental and physical health, while families carry constant worry about the safety and well-being of elderly relatives who live alone. Existing retirement options are often rigid and one-size-fits-all and fail to adapt as residents’ health and support needs change.

The result is higher daily living risk, increased caregiver stress and family financial burden, and decreased resident social contact and mental well-being. There is a clear gap: a lack of flexible residential models that scale support to changing needs, creating the necessity for a new, adaptive senior living solution launching in 2026.

Solution

Many seniors face large, aging homes and social isolation while traditional retirement options force bundled services and inflexible moves. We operate a vibrant residential community in Scottsdale, Arizona, offering independent apartments through assisted-care suites on a secure campus that enables aging in place. Services include chef-prepared dining, comprehensive wellness programs, and personalized 24/7 clinical support, backed by a $250,000 commercial kitchen and $180,000 in medical equipment.

Modern campus supports resident autonomy with on-site clinical support.

Mission Statement

We empower active older adults with a flexible, transparent living environment that respects independence while ensuring safety and well-being. Our community lets residents design their ideal lifestyle through the innovative Lifestyle Tiers model. We deliver professional care, open communication, and consistent excellence to give residents and families peace of mind.

Key Success Factors

Success depends on pricing transparency, high occupancy, skilled staff, modern systems, and steady referrals.

• Offer Flexible Lifestyle Tiers pricing.
• Maintain 90 independent and 45 assisted occupancy by 2030.
• Hire and retain leaders: $150,000 Exec Director; $90,000 Care Manager.
• Deploy $120,000 IT and safety systems to differentiate operations.
• Secure referral partnerships with local healthcare providers.

Financial Summary

Financial snapshot: breakeven in Feb 2026, Year 1 EBITDA $414,000 and steady growth to Year 5 EBITDA $7,829,000.

Financial requirements: initial CAPEX $1,355,000; projected minimum cash -$180k in Aug 2026; anticipated returns include IRR 9%, ROE 23.85% and 20-month payback.

Conclusion: strong occupancy-driven revenue growth supports a positive cash return profile.

Funding Requirements

We seek funding to cover $1,355,000 in initial capital expenditures plus a minimum cash reserve of $180,000 for the 2026 ramp, for a total required: $1,535,000.

Breakeven: February 2026; Year 1 EBITDA: $414,000; Year 5 EBITDA: $7,829,000; IRR: 9%; ROE: 23.85%; Payback: 20 months; 2026 food COGS: 8%; Total initial CAPEX: $1,355,000.