Either Step up Your Game or Get Pushed Out of It


Entrepreneurs in the business of care, as a result of strong personal relationships developed, can find themselves getting pretty comfortable.  This is especially true in the adult foster care arena where long-term residents may dwell for decades.

While every business has a need to keep reinventing itself,  this process of reinvention is now more than ever important for those rendering group living services.  Recently I met with several entrepreneurs who are busy buying up property along East Grand Blvd. in Detroit, Michigan (USA).  East Grand Blvd. has long been known as a hub for adult foster care homes, including the larger twenty, (20) bed models.  Many have fallen into disrepair as aging owners find it more and more difficult to keep up while others may have deemed a higher focus on improved standards to be non-essential, due to the area.

One of the many beautiful, well-built homes along E. Grand Blvd. in Detroit, Michigan

This is indeed flawed reasoning.  Gino Pappas, one of those searching for properties to buy has a commitment to profitability as well as a higher quality of life for those he plans to serve in his new residential empire.  For this Blog Post he added:  “These properties are all below what you would pay in the suburbs for what is often a 10-15 bedroom home.  With 16-20 residents paying you $1000.00 to $1200.00 monthly, I can still show a profit in the home, develop and take care of a combination of live-in and shift working staff while also having a nice, functional facility for those who do not have wealth.  For some its a new model for the Boulevard, for me its expanding on what we have so we can offer better services in better maintained real estate.”

Mr. Pappas sees promise without pricing out certain residents who are low to moderate income and cannot live in the suburban, upscale facilities.  Where the real challenge comes in for existing providers who for generations have maintained the very basics of services and poorly maintained real estate, is that Mr. Pappas is not alone.  A new generation of entrepreneurs is seriously eyeing domination of community based, residential care.  And they are eyeing East Grand Blvd.

Entrepreneurs like these will shame others out of the market as the public calls for better in every category.  This makes the general advice pretty clear:  “Step up your game, or get pushed out of it!”

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