recovery residence

One thing as important as receiving treatment for drug addiction is what people do after they leave treatment. If you’re looking to give people a place to continue their recovery while transitioning back into daily life, a recovery residence business plan is what you need to do first.

Still wondering what we’re trying to say?

There’s no need to wonder any longer because we’ve created a comprehensive guide that will help make writing a business plan easy to do. After you’ve finished creating your business plan, you’ll be ready to present it to potential sober living home investors.

Are you ready because we are!

Provide an overview of the Industry

Currently, the addiction industry is worth more than $42 billion, and it’s going to continue to grow as the world deals with the addiction crisis. With that being said, in this portion of your business plan, it’s best to provide investors with a glimpse of the future growth that is expected in this industry.

By 2025 the industry will have increased by a whopping %5.2, adding up to a valuation of $53 billion. Your investors will take an interest in knowing that the money they’re providing for your sober living home will grow and make them more money than their initial investment.

Ensure you include statistics and other figures that can be used to support the rest of your business plan and the funds you’re asking each investor to provide.

Mission Statement of the Home

What is the main focus of your sober living home, and what values do you strive to achieve every day? There are several reasons you need to create a mission statement for your sober living home, including:

  • Helps attract the right staff members
  • Enhances the company culture
  • Helps business procedures align with the company vision

You should also detail the staff positions you’ll have in your sober living homes. Again, the type of sober living home you have will determine the type of staff you have.

If it’s a higher-level sober living home, you’ll have staff available at all times to aid the residents.

Detail the Roles

If you thought investors didn’t want to know about the roles of your staff before you move forward with a business, you thought wrong. They want information about the different staff positions that will be filled and want to know the daily responsibilities of these staff members.

For example, if you’re hiring a rehabilitation specialist, your description of their daily roles might include:

  • Create treatment plans for post-treatment sobriety
  • Providing therapy services to residents
  • Track the progress of each resident and make necessary changes to treatment plans

If the job isn’t serving a purchase, it will be seen as an unnecessary expense in your marketing plan, and investors don’t want their money to be wasted on things that won’t improve their ROI.

Detail the Findings of Your SWOT Analysis

In this section, it’s time to provide information gathered when you perform a SWOT analysis of your competitors. It’s essential to detail the strengths of your company as well as your weaknesses.

From there, you can list the opportunities you’ll have to make your mark on the industry and any threats to your business. You also need to provide a complete description of your target audience.

These are the people you’ll direct all marketing efforts to attract residents to your sober living home. Are you prepared to come into the addiction industry and provide quality services to those that need post-treatment living options?

Craft a Knockout Executive Summary

After providing an overview of the industry, the next step is to create a section that offers an executive summary. Your executive summary is a short introduction about what else will come as investors continue to read through your business plan.

In this section, we recommend you detail your plans to open a sober living home and where the home’s location will be. From there, detail why you’re opening the sober living home and the main goals you and your staff hope to achieve.

What type of culture will your home have? How will the sober living home be decorated? These answers and more should be included in the executive summary, but ensure the summary is concise and to the point.

You want to paint a picture for investors that leave them understanding that they don’t want to pass on this opportunity. At the end of the summary, add in some information about why you’re the perfect person to open a sober living home and why you have a passion for providing people in recovery with a place to continue their sobriety journey.

Detail Your Services

When people are investing in a sober living home, they understand the point of the home, but that doesn’t mean you shouldn’t include a section about the services you’ll offer. Some services that your home may consider offering include:

  • Providing detox services
  • Outpatient services
  • MAT or medication-assisted treatment
  • Ongoing therapy services

Before you write this section of the business plan, you must know what type of sober living home you plan to operate. The type of home you’re going to run will determine the types of services you provide to those seeking housing.

For example, if you plan to provide therapy services for those in recovery, who will lead the groups? Is it someone that’s licensed to provide therapy to the residents?

Is it led by another resident that’s got a significant amount of sober time under their belt? If you’re going to provide detoxification services to people, what procedures will take place after detox?

All these things need to be written so that investors have an idea of your daily operations.

Marketing Strategy Explained

Now that you’ve got everything else listed, it’s time to think about how you’re going to get people to choose your sober living home above the others. This is where your marketing team comes into play.

For example, one strategy your sober living home should have is to create relationships with your residents. Why does this matter, you may be wondering?

Nurturing these relationships increases the chances that they will refer your home to others who need a place to go after treatment. Another key marketing strategy to have is to attend addiction seminars.

When you attend these seminars, you’ll come in contact with business owners that have addiction treatment facilities. As you’re working through the workshop, take time to interact with different treatment facilities and tell them about your business.

This helps create a relationship that you can rely on overtime as another means of referral. When people finish treatment because of your relationship with the treatment facility, they will be directed towards your home.

There are several other means of marketing that need to be detailed for investors, including:

  • Direct marketing
  • Television or newspaper advertising
  • Word-of-mouth marketing tactics
  • Internet marketing

It’s essential to track your marketing KPIs to understand better which forms of marketing are working the best for your business.


While you’d love to provide people with a free place to continue their treatment, it’s simply not going to work if you’re trying to run a business. It’s important to detail how you intend to collect payment and the different payment options you’ll provide to residents.

If you accept credit and debit card payments, is there a system online and in the home that will allow residents to make payments when the time comes? If you’re going to accept funds in cash, it’s essential to have a place to securely store the money until it’s time to deposit it into the bank.

Startup Expenses

The burning question that investors will have is, ‘how much is it going to cost to start the business?’ They want to know what’s needed upfront before you can begin bringing in revenue.

In this section, you need to include figures for things like:

  • Marketing
  • Facility licensing and business registration
  • Insurance
  • Website launch cost
  • Furniture for the sober living home

You should also detail how you intend to make back the money spent on the initial startup.

Creating a Recovery Residence Business Plan

A recovery residence business plan is the first step in securing the funds you need before you can open the doors of your business. Sober living is about providing a safe place for people to continue their journeys before stepping back into the world independently.

If you’re ready to provide that place to people, let us help get the word out there and list your sober living home on Taste Recovery today.