Welcome!

Considering Running a Home Care Business?

Starting & operating a home care business is an exciting and challenging experience. As a potential home care business owner, you should possess entrepreneurial flair, be willing to take a calculated risk, be willing to put in a lot of hard work to get your business off the ground and running and have a genuine interest in serving the needs of the senior population.

 

Before making a hasty decision, conduct an honest personal assessment. Take into consideration your likes, dislikes, habits, work ethics, skill sets, and suitability for this line of work. Also consider your goals, expectations, and commitment; all of which will largely contribute to the success or failure of your venture.

 

Know Your "Why"

We always ask our clients the reason “why” they started their home care business and here’s some of what we heard:

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“I was a full-time nurse and wanted to use my skills helping older adults to remain at home while being my own boss.”

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“My husband and I had to look after our own parents. When we saw the inconsistent care they were getting from the various home care agencies, we decided to start our own home care business so no one would have to go through what my parents did.”

 

“I worked for a home care company that was all about making money and not really caring for clients and employees in a humane way.”

 

“I’ve been a caregiver for over 20 years and realized that I loved taking care of elderly clients. I wanted to share my knowledge and experience with other caregivers so they could have a career working with an agency that valued their compassion and heart.”

 

In addition to the individual stories above, there are also big businesses entering and expanding in the home care industry because of its growth rates and their perceived ability to achieve efficiencies and economies of scale. But owners and agencies who know their communities and can recruit great caregivers are positioned to thrive.

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Starting a Home Care Agency

Starting a home care agency can be an extremely rewarding enterprise. Before embarking on this journey, it is critical to consider the requirements and guidelines for the state in which you want to register.  We have compiled a resource guide for you the get basic information and contacts to take the first leap into this wonderful journey!

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Key Steps to Think About

• Business planning: A business plan is vital to a successful business not only because it will help you keep on top of things but also because it is essential if you plan to seek financial backing.  

• Financing your business: Advise your banker about your business plans as early in the process as possible and continue to keep them informed of developments.  They can provide services, which are both essential and helpful to you, primarily: Financing for start-up and operating expenses, disbursement of financial advice; and, once you have your organizational structure in place, setting up a business account.

• Organizational structure: A decision has to be made about the legal form of business you will set up (i.e., Proprietorship, Partnership, Corporation, Limited Liability Company, other).

• Business name: Choose, search and register your business name.

• Apply for your Employer Identification Number (EIN): An Employer Identification Number is a federal identification number issued by the IRS to identify a business entity. It is also known as a Federal Tax ID number.

• Logo: Select or design a logo for your business.

• Office space and lease: If your decision is to operate a business at a location other than your home, then a site needs to be chosen. Some states do not allow home-based home care businesses.

• Obtain a local business license: Most cities require all businesses (including home businesses) to register and obtain a business license for which a small fee is charged.

• Insurance requirements: Before deciding what insurances, you will obtain, you should consult with a home care experienced Insurance Agent knowledgeable for input, particularly in respect to General and Professional Liability, Workers’ Compensation, Fidelity, Bonding and Disability insurances. 

• Obtain zoning permit: Zoning may impact such things as whether or not Home Care Businesses are permissible in your chosen area, what types of buildings can be used, etc.  Usually, there are defined criteria, which must be checked out early in the process.

• Personnel requirements: States vary on their requirement of which employee positions must be filled prior to submitting your application for licensure.

• Obtain a state home care agency license: Non-medical Home Care agencies’ licensing requirements vary from state to state and consequently there are no uniform licensing standards for non-medical Home Care Businesses.   Each state has its own requirements for doing business as a non-medical Home Care agency and has the authority to license and regulate its Home Care system.

• Business operations which include accounting, comprehensive policies and procedures (that need to be compliant with your state rules).

• Caregiver training: Many states have regulations about the training hours and courses required for caregivers. Options for training include live-class and online courses.

• Marketing strategy: An effective marketing strategy should be an essential part of your business operations. The success or failure of your home care business will depend on your marketing efforts.

• Back office: You will need to have your back office ready to go. These details should be covered in your Policies and Procedures manual and include:

  • Organization & Administration

  • Scope of Services

  • Service Delivery & Client Care

  • Human Resources

  • Health & Safety

  • Financial Management

  • Quality & Risk Management

  • Forms

• Software: Most home care agencies use 3 key pieces of software

  • Website

  • Social media

  • Agency management: tracks your client demographics, care plans, schedules, caregiver demographics, skills, availability, education, and enables timekeeping, plus completion of care plan tasks, creates billing, receivables, and payroll, and allows family members to stay engaged in the care of their loved one.

 

How much does it cost to start a non-medical home care agency?

Depending upon the state, entrepreneurs should have a budget of $20,000 to $125,000 in order to start a non-medical in-home care agency.

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Want more information or to start or grow your Home Care business?

Contact a TrustedADVISER today!​