We all know someone who’s always coming up with ideas for the next big business venture, product line or creative endeavor, and they’re all good ideas. The thing is, your idea guy may be incredibly successful, with all those ideas coming to fruition in big ways, or he may be one who rushes off unprepared and is only successful part of the time … if at all. So what’s the difference between the two types? What makes one guy successful and the other guy not so much?
Consider the importance of “listening to our gut.” Or in other words, paying attention to our natural intuition when it comes to doing something. This is actually based in biological roots, harking back to the days when it was our “gut instinct” (the culmination of our experiences and knowledge giving our subconscious a jolt in the right direction) that kept us from getting eaten by lions.
“Gut instinct” certainly has its place in the business world, which is often how great ideas come to life. But, unlike escaping from a lion, staking your business success on gut instinct alone is rarely a good thing. Seriously. If you were looking to build a new senior living community, or expand the services in an existing facility, would you break ground simply based on what you think will work?
“The difference between a great idea and a great idea that actually works lies in thoroughly understanding the true potential of your market,” says Malissa Illiano, Vice President of Market Research at Sage Age Strategies. “Doing the legwork to really dig in and understand what the market can support and what your audience really needs is crucial to making business decisions that will allow you to optimize your project’s potential. At Sage Age, our market feasibility and demand analysis services enable our clients to see the opportunity costs of a project and make informed, data-based decisions on business enterprises.”
Analyze the Demand for Optimum ROI
Think of your great idea as a house. Would you simply grab a hammer and nails and start pounding away? No, you’d sit down with an architect, tell them what your thoughts are and have them draw a blueprint that turns your desires into feasible results. In the senior living space, this blueprint can be aided by a demand analysis, which allows us to view the competitive landscape, dig deep into consumer needs and put together detailed project recommendations of what will work in the marketplace.
While other companies provide demand analysis services, say Malissa, what makes Sage Age’s approach different is the deep-dive our experienced staff does to get to the nuts and bolts of a project’s potential success.
“We don't just provide a feasibility study that says that the market can support 200 units,” she says. “Instead, our approach breaks down demand by price points at $500 increments. So, for example, we can tell you what the demand will be if you want to/plan to charge $2,500 per month versus $3,000 per month for independent living. Or $5,000 versus $6,000 per month for memory care, and so on.”
It’s all about taking the guesswork out of high-stakes market investment decisions so you can take action confidently. Here’s how we approach it.
First, we start with a market area definition, which defines the physical landscape and layout of where your potential residents would come from. Next, we put together a competitive overview, detailing the communities in the immediate vicinity who are competition for the same leads as you. We also take a look at planned competition, which encompasses new communities that are being built, plus any expansion or renovation schedule for existing communities.
After determining the area and what your competition has to offer, we dive into a market demand analysis, using our very own “secret sauce” of census data and our years of experience to determine how much demand the market can hold for different levels of care. And we don’t break it down simply by X amount of IL, AL and MC units, either. We go even further, providing you with a comprehensive unit mix for different types of apartment layouts as well as price points for each unit type and size.
“Our detailed and intricate approach has saved a lot of our clients from making poor business decisions,” says Malissa. “For example, we’ve helped clients from pricing a new offering too high for what the market will support, and we’ve also helped others from building the wrong mix of units and having empty, "unsellable" units sitting for a long time. We’ve also been able to tell some clients there is room to increase their pricing, which always makes them happy.”
Sage Age Strategies: Backing Up Your Gut Instinct with Data That Delivers
Whether you’re a new startup or an established community, Sage Age Strategies provides market feasibility and demand analysis for everything from breaking new ground, expanding existing campus offerings and more. Using data and our years of professional know-how, we create a competitive analysis that allows you to know exactly where your proposed project will “fit” in relation to the established landscape. In other words, we’ll back up your gut instinct and help you build a blueprint for success before you ever put shovel to ground. We can also assist with predicting your resident’s needs through surveys and focus groups, provide consulting services to help you achieve even better results and use market research to back up our findings. And when it’s time to market and attract your new residents, we can help with that, too. As a full-service marketing and advertising agency, we can put together a comprehensive lead generation plan that includes social media, advertising, creative work and so much more. We’ll even analyze the performance of your campaigns and make tweaks real-time in order to ensure you’re getting the most bang for your buck.
If you need assistance in any areas of senior living development to improve your business results, we invite you to contact us today to learn more about our proven strategies that have transformed other senior living communities like yours.
Sage Age Strategies is a multiple-award-winning, strategic growth, marketing and consulting organization that operates exclusively in the unique senior living marketplace. For more information, please call or email Jason McCloud at 614.795.7373 / firstname.lastname@example.org. You can also visit us on our website at www.sageagestrategies.com/.
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