Do you want to know how much money homeless shelter businesses make yearly? If YES, here are 7 factors that determine the income & profit margin for homeless shelters. In order to have an idea of the amount a Homeless Shelter owner is expected to make daily, weekly, monthly or yearly, you should clearly define the services that Homeless Shelters offer.
Homeless shelters are a type of homeless service agency which provide temporary residence for homeless individuals and families. Shelters exist to provide residents with safety and protection from the weather while simultaneously reducing the environmental impact on the community.
They are similar to, but distinguishable from various types of emergency shelters, which are typically operated for specific circumstances and populations—fleeing natural disasters or abusive social circumstances. Extreme weather conditions create problems similar to disaster management scenarios, and are handled with warming centers, which typically operate for short durations.
So, with that in mind, we can estimate what a homeless shelter that offers the services listed above is expected to make. But it is important to point that there is no one mold-fits -all when it comes to how much a Homeless Shelter owner is expected to make. There are some factors that we are going to look into before giving an estimate of how much a Homeless Shelter owner make yearly and these factors are;
7 Factors That Determine How Much Homeless Shelters Make Yearly?
Table of Content
- 1. The Size of the Homeless Shelter and the Service Offering
- 2. The Location of the Homeless Shelter Facility
- 3. The Type of Facility and Complimentary Services that is Available in the Homeless Shelter
- 4. The Management Style of the Homeless Shelter Business
- 5. The Business Approach of the Homeless Shelter
- 6. The Advertising and Marketing Strategies Adopted by the Homeless Shelter
- 7. The Number of Years the Homeless Shelter is in Existence
1. The Size of the Homeless Shelter and the Service Offering
You will agree that no one can conveniently state the amount a Homeless Shelter owner is expected to make yearly if you do not know the size of the facility and the number of visitors and residents the facility can accommodate per time.
As expected, a Homeless Shelter business that operates from a small facility is expected to make far less than a Shelter that operates from a standard and well – equipped facilities. If your Homeless Shelter facility is large enough, it can accommodate more people and that will mean increased revenue.
We must not rule out the fact that the location of a Homeless Shelter is a major factor that will determine the amount the facility owner earns monthly.
3. The Type of Facility and Complimentary Services that is Available in the Homeless Shelter
Another important factor that will determine how much a Homeless Shelter facility owner is expected to make yearly is the type of services offered by the Homeless Shelter. Some shelters propose “empowerment models,” where instead of serving “clients,” they empower “participants.” The goal is to become agents in their own futures and destinies.
Such models tend to focus on assisting participants to access their rights and to fulfill their responsibilities as citizens. Sometimes this includes contributing financially towards the provision of the shelters they are residing in.
In Australia, legislation requires those residing in Government funded shelters to contribute a figure similar to 25% of their own income, in return for support and accommodation. Consequently, many shelters in Australia rely on participant contributions for as much as 20% of their budgets.
Homeless shelters often provide other services to the community at large. The classic example is the soup kitchen for persons who are not staying at the shelter. Others include support groups, and/or substance abuse treatment. If they do not offer any of these services, they can usually refer their clients to agencies that do.
Supportive housing integrates services in a more assertive fashion. The typical pathway through the interlocking system is that a person may start in a shelter and move through transitional housing into supportive housing and finally independent housing.
4. The Management Style of the Homeless Shelter Business
Another key factor that will determine the amount a Homeless Shelter facility owner is expected to make yearly is the management style of the Homeless Shelter. Trust me, the results you will get when you are a good manager with eyes for top – notch customer service will be far different from a Homeless Shelter facility with poor management style and customers service.
The idea is that a good Homeless Shelter manager will not just retain their old customers (members), they will also keep getting new customers (members) enrolling in the Homeless Shelter and that no doubt will greatly influence the amount the Homeless Shelter facility is expected to make annually.
5. The Business Approach of the Homeless Shelter
There are different business approaches that a Homeless Shelter facility owner can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly.
A Homeless Shelter owner may decide that they want to operate only from one location and do their marketing alone, and they can also decide to go into franchising and also partner with other charity organizations and even the government that can help them with grants. In essence, a well – organized Homeless Shelter owner who works with others will surely make more money than a Homeless Shelter owner that only operates from one location.
Another key factor that will determine the amount a Homeless Shelter owner can make yearly is the advertising and marketing strategies adopted by the Homeless Shelter. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more. But the results you will make will far outweigh the amount you spent on advertising and marketing.
7. The Number of Years the Homeless Shelter is in Existence
Lastly, another key factor that will determine the amount a Homeless Shelter facility owner is expected to make on a yearly basis is the number of years the Homeless Shelter is in existence. In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed.
This is so because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.
For example, in your first fiscal year (FY1) you might make one hundred and fifty dollars ($150,000), in your second fiscal year (FY2) you might make two hundred and fifty dollars ($250,000) and in your third fiscal year (FY3) you might make four hundred and fifty dollars ($450,000).
Please note that Homeless shelters are usually operated by a non-profit agency or a municipal agency, or are associated with a church. They almost always have Section 501(c)3 corporate organization with a Board of Directors pulled from various sectors of the community.
Often, such Boards include clergy, elected officials, and even shelter residents and people from the surrounding community. Centers in the United States are also often coordinated with outside programs both for their mission-specific operations and for ancillary services.
For communication of their availability, most coordinate with the Federally mandated 2-1-1 or the 3-1-1 phone information system which allows needy persons to find out where shelters are located. For transportation to shelters, some offer free transportation, particularly in cases of persons being released from jail. Some jails have specific staff assigned to placement of persons being released.