How to Write a Sober Living Business Plan

A business plan isn't just paperwork. It's how you figure out if your sober living home will actually work before you spend money. It forces you to answer hard questions: How many beds do you need to break even? Who are your competitors? How will you fill the house?

Whether you need a plan for a bank loan, an investor pitch, or just your own clarity, here's what to include.

Write this last. It's a one-page overview of the whole plan.

Include: - What you're building (a sober living home in [city] with [X] beds) - The problem you're solving (gap in recovery housing in your area) - Your target market (men/women in early recovery, stepping down from treatment) - Revenue model (self-pay, weekly/monthly rent) - How much money you need to start and when you expect to break even

Keep it under 500 words. If someone reads only this page, they should understand the business.

This section proves there's demand in your area.

Local treatment landscape — How many rehabs, detox centers, and IOPs are within 30 miles? Each one is a potential referral source. More treatment centers = more people stepping down to sober living.

Existing sober living homes — How many are already operating? What do they charge? Are they full? If every home in your area has a waitlist, demand is strong. If they have empty beds, you need to understand why.

Demographics — What's the population? What's the substance use rate? The Substance Abuse and Mental Health Services Administration (SAMHSA) publishes county-level data you can use.

Gaps — Maybe there's no sober living for women. Maybe every home is low-end and there's demand for a well-run, mid-range option. Find the gap and build for it.

This is the section that makes or breaks your plan. Be realistic, not optimistic.

Startup costs: - Property (lease deposit or down payment): $3,000-$15,000 - Furnishing: $3,000-$8,000 - Insurance: $2,000-$5,000/year - Licensing/certification: $200-$1,000 - Repairs and safety equipment: $1,000-$3,000 - Working capital (3 months of expenses): $9,000-$21,000

Monthly revenue: - Calculate beds x rent x expected occupancy - Example: 8 beds x $650/month x 85% = $4,420/month

Monthly expenses: - Mortgage/rent, utilities, insurance, maintenance, supplies, software, house manager - See our full breakdown at How Much Does It Cost to Run a Sober Living Home?

Break-even timeline: - Most homes break even in 3-6 months once occupancy stabilizes - Plan for 6 months of negative cash flow to be safe

Project month by month for the first year. Show conservative, moderate, and optimistic scenarios.

How will you actually run the house day to day?

Staffing — Will you manage it yourself? Hire a house manager? Live on-site? Most single-home operators start by doing everything themselves.

Intake process — How will you find and screen residents? What's your application process? Read our guide on screening applicants.

House rules — Cover sobriety policy, drug testing, rent, chores, curfew, meetings. Use our house rules template as a starting point.

Rent collection — Automate from day one. Don't start with cash and spreadsheets. See our guide on collecting rent in sober living.

Technology — List the tools you'll use for management, payments, and communication.

You don't need a big marketing budget. You need relationships.

Read our full guide on how to market a sober living home.

Your business plan should show that you're running a real operation, not guessing your way through it. Including sober living management software in your plan signals that you're serious about systems, not just intentions.

RecoveryOS starts at $29/month. Your first month is $1. It handles applicant screening, rent collection, house rules, chore schedules, and documentation. That's cheaper than a bookkeeper and more reliable than a spreadsheet.

A well-run sober living home starts with a well-built plan. And a well-built plan starts with knowing your numbers.