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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Halfway House SWOT Analysis

 

Strengths

 

With more than two million people in the United States in prison and several million more within the criminal justice system - the need for halfway houses has never been higher. After an individual is released from custody, they are often assigned to a halfway house until they can find employment or find a place to stay. As such, the demand for privately owned halfway houses is substantial among municipal, state, and federal government agencies. The barriers to entry for these businesses is moderate. Halfway houses generate substantial gross margins from their services rendered. The demand for halfway houses is not expected to wane for at least ten years.

 

Weaknesses

 

The security and regulations regarding the operations of halfway houses is substantial. As many halfway houses are operated as government contracted facilities, they must adhere to a myriad of laws. There are also substantial reporting obligations regarding the individual well being of people housed in these facilities. Given the strong demand among government agencies for contracted rehabilitation centers - many new competitors are entering the market.

 

Opportunities

 

Typically, most operators of privately owned halfway houses expand their businesses by increasing the number of facilities. This is generally, the only methodology for increasing revenues.

 

Threats

 

The primary threat faced by halfway houses are cuts in state and federal budgets that can impact how these companies receive their fees. This will be a continued concern for any business that is seeking to enter the market. However, given the large number of people that are currently incarcerated, the demand for these services is not expected to wane anytime soon. It is expected that the market for halfway house services will increase as sentencing reform bills are passed, and more people are paroled. As such, the threats facing this industry are limited.


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