business plan for home health care agency

Home Health Care Business Plan Template

Written by Dave Lavinsky

Home Health Care Business Plan

You’ve come to the right place to create your Home Health Care business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their home health care businesses.

Home Care Business Plan Example

Below is a template to help you create each section of your home health agency business plan.

Executive Summary

Business overview.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our nursing services include physical therapy, skilled nursing care and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care is run by Helen Parker, who has been a nurse for twenty years. She has specialized in working with aging populations and has extensive knowledge of the common conditions and needs of this age group. Her experience and connections have helped her find other medical professionals who want to join our company. Furthermore, she was able to establish an initial client base from the list of patients she has been helping for years.

Services Offered

St. Helen’s Home Care offers a variety of home health care services that serve the aging population of Austin, Texas. These services include but are not limited to:

• Physical therapy
• Occupational therapy
• Speech-language therapy
• Skilled Nursing Services
• Personal care and housekeeping

Customer Focus

St. Helen’s Home Care will serve the aging population of Austin, Texas, primarily residents over the age of 65. This population is susceptible to many conditions that make daily living difficult such as Alzheimer’s, dementia, arthritis, and diabetes. This population needs more health care than other age groups, but not all services require a visit to the hospital or doctor’s office. St. Helen’s will provide any medical service that can easily be conducted in a home setting.

Management Team

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Aside from the medical professionals she will have on staff, Helen has also employed an Administrative Assistant, Accountant, and Marketing Specialist to help her operate the company.

Success Factors

St. Helen’s Home Care will be able to achieve success by offering the following competitive advantages:

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert nursing services so that the patients are at the highest comfort level.
• Pricing: Helen’s pricing will be more affordable than other home health care agencies. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Financial Highlights

St. Helen’s Home Care is seeking $340,000 in funding to launch the home healthcare business. The capital will be used for funding equipment and supplies, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Equipment and supplies (such as computers and medical equipment): $150,000
• Marketing costs: $50,000
• Staffing costs: $60,000
• Working capital (to include three months of overhead expenditures): $80,000

The following graph outlines the pro forma financial projections for St. Helens’ Home Care over the next five years:

Company Overview

Who is St. Helen’s Home Care?

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our services include physical therapy, nursing, and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care History

Helen Parker has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to travel to a doctor’s office or hospital for their care. Instead, these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide care to local elderly patients in the comfort of their homes. After conducting the research needed to establish the company, Helen incorporated St. Helen’s Home Care as an S-corporation on May 15th, 2022.

Since incorporation, St. Helen’s has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the logo and website for the company
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Created an initial client base from Helen’s pre-existing patient list
• Started creating partnerships with local and national medical insurance companies
• Began recruiting key employees, including medical and administrative staff

St. Helen’s Home Care Services

Industry Analysis

According to Grand View Research, the global home health care industry was valued at $336 billion USD in 2021. It is also expected to grow at a compound annual growth rate of 7.93% from 2022 to 2030 and reach a value of $666.9 billion USD by 2030. This shows that these services will be in great demand, which means it is a great time to start a home healthcare business.

This growth is primarily driven by a growing geriatric population. People are living longer than ever before, and therefore, they will need comfortable healthcare services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for healthcare (whether in the home or doctor’s office) and may create a strain on the current industry. However, this also means there is an enormous opportunity for healthcare businesses to be extremely profitable in the near future.

This is especially true for home healthcare services, which are increasing in demand. Most aging people would rather receive medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.

The only challenge affecting the industry is a lack of properly trained staff who can take on a healthcare career. However, this will only mean that home healthcare services will be even more valued. These industry trends will only help boost the popularity and success of St. Helen’s Home Care.

Customer Analysis

Demographic profile of target market.

St. Helen’s Home Care will primarily target the aging population of Austin, Texas. This includes anyone over the age of 65, especially those who live with diabetes, Alzheimer’s, arthritis, or other conditions that affect their quality of life.

The precise demographics of Austin, Texas, are:

Customer Segmentation

St. Helen’s will primarily target the following customer profiles:

• Aging individuals over the age of 65
• Individuals living with Alzheimer’s and dementia
• Elderly individuals with other health conditions

Competitive Analysis

Direct and indirect competitors.

St. Helen’s Home Care will face competition from other home health care agencies with similar business profiles. A description of each competitor company is below.

Travis County Home Health

Travis County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of their patients’ homes. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, and Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Elara Caring

Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in most regions of the United States. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health

Encompass Health is one of the nation’s leading providers of home health services. They continually set the standard of homecare through their people, their approach, and their outcomes.

The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home. Whether recovering from a surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are.

Competitive Advantage

• Quality Care: Helen’s will provide expert services so that the patients are at the highest comfort level.
• Pricing: Helen’s will provide affordable home health care. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Marketing Plan

Brand & value proposition.

The St. Helen’s brand will focus on the company’s unique value proposition:

• Knowledgeable, friendly, compassionate staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and home aide services at competitive prices.

Promotions Strategy

St Helen’s Home Care will target elderly residents living in the Austin, Texas area. The company’s promotions strategy to reach the most clientele include:

Local Hospitals

Helen Parker already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend the company to its patients and their families upon releasing them from the hospital.

Website/SEO Marketing

St. Helen’s has a website that is well-organized and informative and lists all our available services. The website also lists the company’s contact information and information about the medical professionals who provide our services.  We will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Austin home health care” or “Austin health care,” St. Helen’s will be listed at the top of the search results.

St. Helen’s Home Care will have a billboard at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Insurance Partnerships

St. Helens will partner with local and national insurance companies so that our patients can be partially or fully covered for the services we provide. We will ask the insurance companies to recommend our services to their customers and have our business listed on their websites.

St Helen’s pricing will be moderate so customers feel they receive great value when purchasing its services. Services will either be charged directly to the patient or to their insurance plan.

Operations Plan

The following will be the operations plan for St. Helen’s Home Care.

Operation Functions:

• Helen Parker will be the Chief Executive Officer of the company. She will be in charge of the business operations side of the business and provide home healthcare services until we have a full staff of medical professionals.
• Helen is assisted by her longtime colleague Mary Green. Mary will be the Administrative Assistant and help with all general administration tasks, including taking phone calls and scheduling appointments.
• Keith O’Reilly will serve as the Staff Accountant. He will provide all accounting, tax payments, and monthly financial reporting.
• Betty Lopez will work as the Marketing Specialist. She will run the website, social media, and other marketing efforts.
• Helen will hire a large team of medical professionals to serve our growing client base. So far, some of her former colleagues have agreed to work for her business.

Milestones:

St. Helen’s Home Care will have the following milestones completed in the next six months.

8/1/202X – Finalize lease for the office space.

8/15/202X – Finalize personnel and staff employment contracts.

9/1/202X – Begin refurbishment and furnishing of the office space.

9/15/202X – Begin networking at medical industry events.

9/22/202X – Begin marketing campaign to attract the first clients.

11/1/202X – St. Helen’s Home Care opens for business.

Financial Plan

Key revenue & costs.

The revenues for St. Helen’s Home Care will come from the fees it will charge the patients and their insurance for the provided health care services.

The major cost drivers for the company will be the staff payroll, marketing expenses, lease, and office equipment.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials as well as pay off the startup business loan.

• Number of clients per month: 100
• Annual lease: $50,000
• Overhead costs per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, home health care business plan faqs, what is a home health care business plan.

A home health care business plan is a plan to start and/or grow your home health care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Home Health Care business plan using our Home Health Care Business Plan Template here .

What are the Main Types of Home Health Care businesses?

There are a number of different kinds of Home Health Care businesses , some examples include: Nursing care business, Physical home health care business, and Home health care aides.

How Do You Get Funding for Your Home Health Care Company?

Home Health Care businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Home Health Care Business?

Starting a home health care business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Home Health Care Business Plan - The first step in starting a business is to create a detailed home health care business plan that outlines all aspects of the venture. This should include market research on the home health care industry and potential target market size, information on the home health care services you will offer, marketing strategies, pricing detailed and your financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your home health care business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home health care business is in compliance with local laws.

3. Register Your Home Health Care Business - Once you have chosen a legal structure, the next step is to register your home health care business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your home health care business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Home Health Care Equipment & Supplies - In order to start your home health care business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home health care business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful home health care business:

• How to Start a Home Health Care Business

How To Write a Winning Home Health Care Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for home health care agency businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every home health care agency business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Home Health Care Agency Business Plan?

A home health care agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Home Health Care Agency Business Plan?

A home health care agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Home Health Care Agency Business Plan

The following are the key components of a successful home health care agency business plan:

Executive Summary

The executive summary of a home health care agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your home health care agency  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your home health care agency business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your home health care agency firm, mention this.

You will also include information about your chosen home health care agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a home health care agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the home health care agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a home health care agency may include:

• The elderly
• People with disabilities
• New mothers
• Patients recovering from surgery or illness

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or home health care agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your home health care agency business via public relations or partner with another organization to sponsor an event.  

Operations Plan

This part of your home health care agency business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a home health care agency business include reaching $X in sales. Other examples include hiring a certain number of employees, signing on a certain number of clients, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific home health care agency industry. Include brief biography sketches for each team member.

Particularly, if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Home Health Care Agency  

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Home Health Care Agency  

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup home health care agency business.

Sample Cash Flow Statement for a Startup Home Health Care Agency  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your home health care agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any home health care agency. The tips we’ve provided in this article should help you write a winning business plan for your home health care agency.  

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How To Write a Winning Non-Medical Home Care Business Plan + Template

Home Care Business Plan PDF Example

• February 28, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful home care business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your home care business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a home care business business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the healthcare industry, this guide, complete with a business plan example, lays the groundwork for turning your home care business concept into reality. Let’s dive in!

Our Home Care business plan is designed to address all vital elements necessary for a detailed and effective operational strategy. This plan encompasses the scope of our home care services, marketing approaches, the environment in which we operate, an analysis of our competitors, the structure of our management team, and financial projections. 

• Executive Summary : Offers a succinct overview of the Home Care business’s unique proposition, highlighting personalized and professional in-home care services tailored for seniors, market analysis showcasing the sector’s growth and demand, management’s expertise in senior care, and a financial strategy that outlines investment opportunities and revenue expectations.
• Services & Area Coverage: Describes the array of in-home care services, including personal care, medication management, specialized care for dementia, and emergency response, all delivered within a specified service radius to meet the unique needs of each senior.
• Pricing: Details the pricing strategy , designed to be transparent and competitive, offering flexible options to cater to various financial situations of clients, including hourly and flat-rate packages tailored to different care needs.
• Key Stats: Presents data underscoring the market size , growth trends, and demographics that illustrate the potential and necessity of home care services.
• Key Trends: Highlights significant trends such as the increasing preference for aging in place, the integration of technology in care, and a shift towards personalized care.
• Key Competitors : Analyzes the main competitors within the service area, their offerings, and how the business’s unique approach and technology set it apart.
• SWOT Analysis : Conducts a comprehensive analysis of Strengths, Weaknesses, Opportunities, and Threats to strategically position the business.
• Marketing Plan : Outlines marketing strategies aimed at building brand awareness, attracting new clients, and retaining them through superior service, patient satisfaction programs, and targeted marketing efforts.
• Timeline : Sets forth key milestones and objectives from the business setup to its launch and key growth phases.
• Management: Highlights the experienced team leading the business, from caregiving professionals to administrative management, emphasizing their roles in ensuring high-quality care and operational success.
• Financial Plan: Projects the financial outlook for the business over the next five years, detailing revenue models from various services, cost management strategies, profit margins, and expected return on investment, ensuring a clear route to financial sustainability and growth.

Home Care Business Plan

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your home care business plan, offering a concise overview of your agency and its services. It should detail your market positioning, the range of home care services you offer, including personal care, nursing care, and companion services, its service area, and an outline of day-to-day operations. 

This section should also explore how your home care agency will integrate into the local community, including the number of direct competitors within the area, identifying who they are, along with your agency’s unique selling points that differentiate it from these competitors. 

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the agency’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your agency’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Home Care Business, the Business Overview section can be effectively divided into 2 main slides:

Services & Area Coverage

Briefly describe the range of home care services your agency offers, emphasizing the personalized and compassionate care provided to clients in the comfort of their own homes. This can include personal care services like bathing and dressing, skilled nursing care, physical therapy, and companion services such as meal preparation and light housekeeping.

Then, mention the geographic area your agency covers, highlighting the convenience and accessibility of your services to clients within this area. Explain why your service area is strategically chosen to meet the needs of your target clientele, considering factors like population demographics and the presence of community resources.

Pricing & Payment Options

Detail your pricing structure for the various home care services offered, ensuring it reflects the quality of care provided and is competitive within the market you’re targeting. Your pricing strategy should be transparent, making it easy for clients and their families to understand the cost of care.

Also,highlight any flexible payment options, insurance partnerships, or programs that can help offset the cost for clients, such as Medicaid, Medicare, or private insurance coverage. Emphasize any packages or special programs that provide added value to your clients, such as customized care plans or discounted rates for long-term services, encouraging long-term relationships and client loyalty.

Make sure to cover here _ Services & Area Coverage _ Pricing & Payment Options

Market Overview

Industry size & growth.

In the Market Overview of your home care business plan, start by examining the size of the home care industry and its growth potential.

This analysis is crucial for understanding the market’s scope and identifying expansion opportunities, particularly in the context of an aging population and increasing preference for aging in place.

Key market trends

Proceed to discuss recent market trends , such as the growing consumer interest in personalized home care services, the use of technology to improve service delivery, and the emphasis on holistic care that encompasses physical, emotional, and social well-being.

For example, highlight the demand for services tailored to specific health conditions or preferences, alongside the rising popularity of integrated care models that coordinate across different healthcare providers.

Key competitors

Then, consider the competitive landscape, which includes a range of providers from large national chains to local independent agencies, as well as emerging tech-based care solutions.

Emphasize what makes your agency distinctive, whether it’s through exceptional caregiver training, a comprehensive range of services, or specialization in certain types of care (e.g., dementia care, post-operative care).

Make sure to cover here _ Industry size & growth _ Key market trends _ Key competitors

Dive deeper into Key competitors

First, conduct a SWOT analysis for the home care business, highlighting Strengths (such as compassionate and well-trained caregivers, a comprehensive range of services), Weaknesses (including potential regulatory challenges or staffing issues), Opportunities (for example, an aging population and increasing preference for home-based care), and Threats (such as changes in healthcare policies that may affect funding or reimbursement).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted outreach, informative and empathetic communication, engaging online presence, and community partnerships. Emphasize the importance of building trust with clients and their families, showcasing testimonials, and highlighting the qualifications and dedication of your caregiving team.

Finally, create a detailed timeline that outlines critical milestones for the home care agency’s launch, client acquisition efforts, service expansion, and strategic objectives, ensuring the business advances with clear direction and purpose. Include key benchmarks for assessing the quality of care, client satisfaction, and operational efficiency to continually improve and grow your agency.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the home care business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the home care business towards its financial and operational goals.

For your home care business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your home care business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your home care business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

How to Start a Home Health Care Business

13 Steps For Starting a Home Health Care Agency

Tips for a running a successful home health agency, how big is the home care provider industry, what are the key segments of the home care provider industry, what external factors affect the home care industry, who are the key competitors in the home care industry, what are the key customer segments in the home care market, what are the estimated start-up costs for a new home health care business, is a home health care business profitable, what are the keys to launching a new home care business, how to start a home health care business faqs, other helpful business plan articles & templates.

A home health care agency provides medical, nursing, and personal care to residents at their houses. For those who cannot afford to go to a nursing home, this is the next best option. But starting one takes more than having good intentions. It requires a lot of planning and patience.

However, before you begin your company, it is critical to conduct thorough market research to make certain that your company should indeed be in demand.

In this article, we share some tips on how to successfully start a home health care business.

Importantly, a critical step in starting a home care business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

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1. Determine Your Business Name

Choose the name of your home health care agency carefully. This may be among the most important decisions you have to make about your business. Make certain that any name you select is available in all 50 states so you can do business and register your company in each state if you choose so in the future.

Consider using a name that contains words like “home care” or “nursing.” This will help anyone searching online for those terms to find you quickly.

Also, choose a website domain name that is very relevant to the home health care services you provide. This way, people will be able to see your website’s URL quickly and easily.

2. Write a Home Care Business Plan

The next step in starting a home health care agency is to draft a business plan. Your business plan must be very detailed and contain all the information needed to successfully start and run your company.

Be certain to include details on how you will be able to deliver high-quality home health care for a reasonable cost, why consumers should choose your agency over others, and the benefits of going with a smaller company instead of a national or other local company.

3. Get Your Business License

File with the Secretary of State’s office for a license to function as a home health care provider in your state or city. If you are planning to start a home health care agency, find out about the rules and regulations in your area for home healthcare workers.

4. Obtain Any Other Necessary Certifications

Most states require that you have CPR, First Aid, and other types of training for your employees before they may work with clients. If you do not have these qualifications yourself, take them before beginning to recruit staff members so all home health care professionals will be adequately trained.

The Medicare and Medicaid certifications are also necessary if you want to accept payments from those government programs.

5. Register for a Tax ID

Register for a federal Employer Identification Number (EIN) or apply for an exemption from taxes if your business is considered a non-profit organization.

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6. open a business checking account.

Open up a business bank account so you can deposit money from home care services rendered and withdraw funds as necessary to pay for company expenses or taxes. All transactions related to your home healthcare agency should be done through this account, not your personal account.

7. Obtain Business Insurance

Obtain commercial liability insurance, workers’ compensation, and professional liability insurance.

8. Hire Nurses, Home Health Aides, and Other Medical Professionals

Interview and hire experienced nurses, professional caregivers, personal assistants, and other home care and medical professionals to work for your company. Ensure that they are adequately trained in their respective fields and have a clean background check.

9. Market Your Services

Advertise your services by placing ads in newspapers and posting flyers around the neighborhood where you will provide home health care services. Also, create a professional website with an online presence that will attract customers looking for home care services.

10. Train Your Employees

Train your employees on the proper techniques to safely and successfully provide services to elderly people in their homes. Schedule regular meetings with your employees to discuss any problems they are having providing services and ensure that each client’s needs and interests are being met.

11. Buy Home Health Care Supplies

The things you will need in order to conduct business are only limited by your imagination. Before starting any home health care services, make sure that you have what is necessary to run your business at any given time; this includes items like paper towels, sponges, rags, brooms, and dustpans, bleach products (such as disinfectants), hand soap for cleaning these areas after using the restroom or before preparing food or drinks for patients or guests, etc.

12. Outreach to the Local Community

Contact local nursing homes, retirement centers, and churches in your area that may have elderly people who need assistance with bathing or housekeeping chores. Schedule appointments with these potential clients so you can give them a home assessment of their needs.

13. Deliver Quality Care at Reasonable Rates

Home health care services are typically delivered on an agreed-upon basis for a fixed sum of money, which is less than conventional medical insurance rates in most cases. Check with your state’s Department of Health in order to find out how much you can charge for home care in your area without running into legal trouble. Remember that the goal is to deliver quality service while ensuring that you can charge customers what they are willing to pay while still making a profit.

Attend Continuing Education Classes

Attend seminars, workshops, conferences, and trade shows to learn about the latest trends and developments in home health care so you can incorporate them into your company as needed or desired.

Perform Regulatory Compliance Updates

Make sure you keep up with updates regarding regulatory compliance such as changes in privacy laws, medication administration rules/restrictions, home safety recommendations/measures, etc.

Document Everything

Keep good records for every patient seen by your agency including date of visit, problem treated, supplies used (even if it’s just gauze pads), medications given (including dosage and time administered; also include whether they were swallowed or injected if applicable) personal observations made about patient symptoms, symptoms exhibited, personal observations made about patient hygiene/personality/attitude, etc.

Build a Strong Team

A home care agency is only as good as its team of caregivers. When hiring caregivers, be sure to screen candidates thoroughly and look for people who are compassionate, patient, and reliable. Implement a clear and detailed hiring process that all employees must go through to ensure that the people you bring on board are qualified for the job.

Work in Close Collaboration with Patients and Their Families

Make sure that when working with patients, you keep everyone close by involved in making decisions about care. Keep them informed of any changes in their health status so they feel included in all aspects of treatment. Ensure they understand why specific things are done during treatment so there is no confusion or misconception regarding whether or not something was necessary or if it even happened at all.

Meet with family members to create a good rapport with them early on so they will be more likely to approve of your services if they believe you are competent enough to handle their loved one’s care needs. Additionally, this may help discourage family members from switching providers if they are dissatisfied with your services since there is already a good relationship between you.

Be Assertive but Not Aggressive About Office Finances

You should never be afraid to ask for payment from patients, but do not be too pushy about it either.

If someone is on a fixed income or has had an unexpected financial hardship, let them know that you are willing to work something out instead of demanding full payment or refusing service if they cannot afford to pay in full at that time. You can offer discounts or provide alternative arrangements such as allowing the patient to assist with office upkeep and cleaning in exchange for reduced fees.

Make sure to set firm boundaries ahead of time so your patients know what will and will not happen when they cannot pay their bills in full.

Train Your Employees Thoroughly

Create training manuals for each new hire so that they know exactly what procedures are to be followed when providing home care services to elderly patients. Take time every day to have employees practice what is taught in their training sessions so that it becomes second nature and they begin to feel comfortable providing home care services unsupervised. Also, use the manuals as a guide for regular meetings so that employees know what they should be covering and can refer back to them when needed.

Remember This Is People’s Lives You’re Handling

It may seem like just another day at work, but you are dealing with people’s lives here. Always ensure that you are treating patients with the utmost respect, showing empathy towards their situations, and being patient with them even during rough times. It is important to remember why you are doing this job in the first place — because you want to help others.

The home health care industry accounts for $109.6 billion in yearly revenue and is projected to grow to $134 billion in the next five years.

Home care currently employs over 1.9 million workers nationwide. The home care providers industry, according to the U.S. Bureau of Labor Statistics, is expected to grow by over 20 percent in the next ten years, adding about 300,000 new jobs.

The home care industry has 4 main sectors including:

• Home Support Services: These are non-medical support services that are provided in the homes of patients or clients rather than hospitals, nursing homes, or other medical facilities. Home support services include assistance with Activities for Daily Living (ADLs) such as eating, bathing, dressing, grooming, personal hygiene activities like toileting, positioning or transferring from bed to chair, etc., Instrumental Activities of Daily Living (IADLs) such as meal preparation, transportation, phone services, light housekeeping, etc.
• Home Nursing Services: Home nursing care is provided by registered nurses and certified nursing assistants who are licensed to provide all types of health care. Home health care companies are the ones that provide these services to patients upon referral from a doctor or medical professional. These services can be extended to include administering medications, supporting mobility issues, teaching families about the special needs of the patient and providing emotional support for family members. Home nursing services are typically more expensive than home support services because of the expertise involved with their provision. 
• Home Therapy Services: Home therapy is physical or occupational therapy conducted in a patient’s home instead of a clinical setting. Home therapy services are provided by home health care agencies that employ physical or occupational therapists for patients who would benefit from such therapy. 
• Home Relief Services: Home relief services is an umbrella term for home-based services including counseling, personal care, homemaking, and minor medical services as prescribed by a physician. Home relief services may be provided under this category not only to elderly people but also to those with disabilities, mental health or chronic conditions.

A home health care agency is an industry that is regulated by many different external factors. There are three external factors that affect the home care provider industry:

Increased regulations and certifications: The federal and state governments require that home care agencies comply with laws and regulations to ensure that both patients and employees receive quality services. Agencies must follow strict HIPAA (Health Insurance Portability and Accountability Act) guidelines for patient confidentiality protection, maintain detailed records of patient treatment plans, provide detailed training for employees such as initial and ongoing training on safety protocol, etc. These rules need to be followed whether the agency is a large one or a small one because it provides clarity about acceptable standards of inpatient care.

Economic slowdown: A global economic slowdown has an effect on healthcare service providers who rely on companies to reimburse their expenses for providing care to their employees. When companies are in financial trouble or revenues drop, home care providers could see a decrease in the number of services requested by these same companies because they do not want to pay for costly therapy services that are not required when layoffs occur.

Statutory changes: Since legislative rules can change with each election, home care agencies must be aware of possible statutory changes that affect how they conduct business. For example, if state laws require agencies to hire at least one nurse per five patient visits, but the law is reversed after an election and now states one nurse is required for every ten patient visits, this will affect all home care agencies who do not comply with this new requirement. Larger home care agencies may be able to absorb these types of changes but smaller providers may not be able to do so.

When starting a home care agency, it is important to know who the key competitors are in the industry. Some of the major competitors in the home care provider industry include:

Amedisys is a home health care company founded in 1995. Amedisys operates by providing comprehensive health care for patients for up to 90 days after they are discharged from the hospital. The Home Health Center is equipped with state-of-the-art technology and medical equipment, including oxygen concentrators, nebulizers, infusion pumps, suction machines, CPAP/BiPAP supplies, and Telemetry monitors.

Gentiva Health Services provides services at home that range from medication management to personal hygiene assistance. It also includes skilled nursing support if necessary. Their mission statement states that their goal is to provide quality care to those who need it most.  

Home Instead Senior Care franchise provides home health care services to senior citizens who want to maintain their independence while living at home. Home Instead offers non-medical in-home help with a variety of tasks including medication reminders, bathing assistance, meal preparation/feeding assistance, grocery shopping, and transportation.

Kindred Home is one of the largest home care companies in America, with nearly 100 locations. Their services include home health care, hospice care, and palliative care. They aim to provide medical care in a compassionate environment that promotes independence and wellness for clients. 

It is important to research these if these businesses are in your target area and understand their strategies in order to stay ahead of the competition.

Home care providers need to know who their customers are in order to serve their needs. Some of the key customer segments that home care agencies target include:

Aged/Elderly Population – Home health agencies typically provide patient services for this demographic because they are less mobile, have chronic illnesses, and sometimes need assistance with activities of daily living.

Children – Children may require home health care services due to conditions such as autism, cerebral palsy, spina bifida, muscular dystrophy, and cystic fibrosis. They often have extensive therapies that need to be performed in the home under the supervision of a qualified therapist.

Workers’ Compensation Patients – These are typically short-term patients who are injured/disabled due to an incident at work and are unable to perform their job duties for an extended period. If they are not allowed to return back to work after recovering from injuries or disabilities, they could potentially be eligible for permanent disability benefits through workers comp claims.

Patients with Disabilities – Those with disabilities may seek out home health care services if they cannot access transportation or cannot afford transportation, take advantage of community resources, or require help with activities of daily living.

Veterans – Military veterans may receive in-home care services if they are unable to perform their regular household duties due to mental/physical disabilities. They could also use this service if they do not have an in-home caregiver (partner, family member) available to provide them with aid in the home during recovery/treatment.

These are some key customer segments that home care agencies typically target in order to serve the needs in the market.

Some of the biggest startup expenses for home health care businesses include:

Office Furniture – If you decide that an office is necessary for your business (to act as a central location where all employees report to work), it may be necessary to rent/buy furniture such as desks, chairs, filing cabinets, etc. The cost of renting or buying office furniture will depend on what kind of furniture you require and the terms in your lease/purchase agreement.

Office Equipment – Office equipment may include PCs, laptops, printers, copiers, etc. The cost of purchasing these items will depend on what type of equipment is needed for your business and how much money you have to spend.

Medical Equipment – If you plan to service clients in their homes using medical equipment such as wheelchairs, walkers, etc., you will need to purchase this equipment upfront or finance it through a vendor (in which case there would be additional fees associated with the financing). It’s important to consider costs like insurance and costs related to shipping when evaluating financial options (if applicable).

Licenses/Permits – Home care businesses typically need to be licensed in the state where they operate. There may also be additional permits/certifications required by your city, county, etc., which will require a one-time fee paid to the appropriate agency.

Insurance – Depending on what kind of insurance coverage you decide to offer, there may be additional costs associated with buying the necessary general liability insurance policy(ies). One-time premiums may be paid by the homeowners directly to you, or paid to an insurance agency (in which case there may also be additional fees associated with the service).

Staff Training – Staff training doesn’t usually cost anything upfront, but it’s something that should be considered in terms of lost productivity if employees aren’t properly trained before starting to service clients. It may also be important to consider how long it takes for employees to complete training programs and what the total cost of this time is.

Networking/Commission Fees – Some home health care agencies choose to pay their employees a commission or bonus for contacting potential clients, which can help generate revenue faster. The cost of this type of compensation structure is typically included in the client’s fees (as opposed to an outwardly visible cost to customers).

Marketing – Marketing is often seen as one of the start-up costs because it requires money before you make any revenue for your business. Marketing costs can vary significantly depending on what type of marketing activities are done (online vs. print vs. radio).

Marketing materials – Marketing materials include brochures, business cards, etc., which you may utilize when marketing your services if they are not provided by third-party vendors. These items will require upfront costs that must be accounted for when looking at start-up costs.

For home health agencies, the profit margin is estimated to be between five and seven percent of total revenue. This number changes depending on how many patients you are able to serve per visit, as well as how much it costs you to provide each service. The best way for home health care professionals to increase their agency’s profitability is by building strong relationships with their clients and providing high-quality care in a cost-effective manner.

1. Continuing Education

Home health care nurses and therapists make a commitment to our patients’ well-being, but they also need to be committed to their own continuing education. New home care providers are encouraged to visit local continuing education workshops that are offered throughout the year.

2. Good Communication Skills

The demands of the job require that home care providers have good communication skills with patients and families or caregivers. Providers must be able to get on the same page quickly when it comes to establishing roles, routines, guidelines, and parameters for treatment.

3. Employee Training & Leadership

Home care business owners often start out as employees in their own businesses before they begin to grow beyond two or three people on staff. As a result, there is a need to develop strong leadership, delegation, and coaching skills along with understanding how to monitor progress while still allowing team members some level of autonomy.

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4. Strong Ethics & Values

Home care providers are responsible for providing appropriate, high-quality medical treatment. As a result, it’s important for business owners to have strong ethics and values so that their patients receive the best possible care.

5. Talent Acquisition

Good home health care nurses work well with others, but they often need to hire other people who can do the same thing in order to grow their businesses. Providers must be able to attract talent that reflects company culture, mission, vision, and brand standards – all of which play into talent acquisition strategies.

6. Business Acumen

Home care business owners need to have knowledge of how to manage administrative tasks, such as billing and financing, in addition to overseeing the business operations of the business. As a result, they need to develop broad business acumen, which can be accomplished by taking courses at local colleges or universities where continuing education opportunities are available.

7. Solid Marketing Plan

Successful home care business owners work with marketing experts to develop strategies that will help grow their businesses and increase awareness about the services they provide.

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What is a home health care business?

A home health business provides in-home medical care for patients who are unable to visit the hospital due to an illness or injury. These businesses typically specialize in certain areas such as nursing, physical therapy, occupational therapy, social work, etc., and offer services such as medication monitoring and support, treatments such as wound care and IVs, and life assistance such as mobility support.

The main goal of home health care is to provide short-term nursing care in order to help maintain independence within the patient's own home or community for as long as possible. They are generally not intended to cure illness but rather help improve a patient's quality of life and ability to function in a home environment.

What are the requirements to start a home care business?

The requirements to start a private home care business can vary depending on the state or country in which you reside. Typically, you will need to have a business license and insurance. You will also need to have a list of qualified caregivers who can provide home care services. You can learn more about the requirements in your area by visiting the website of the Department of Health and Human Services.

How do health care agencies get clients?

Home care agencies get clients by marketing their services. The best way for home health care professionals to get their agency's name out there is through networking with other business owners and attending events that are related to the industry. Other strategies include advertising through social media, online directories, in-home flyers, and direct mail campaigns.

What kind of training do I need when starting a home health care business?

When starting a home health care business, it's important to have strong leadership, delegation, and coaching skills along with understanding how to monitor patient progress while still allowing team members some level of autonomy. In addition to these things, home health care providers also need strong ethics and values so that patients can receive proper treatment. Lastly, talent acquisition is important, so it may be useful to have knowledge regarding how to properly train new hires.

Home health care professionals can gain the skills they need by taking courses at local colleges or universities where continuing education opportunities are available. It's also important for them to keep an open mind and take advantage of on-the-job training opportunities that allow them to develop their leadership, coaching, and monitoring abilities.

When starting a home health care business, it's important not only to learn about all of the necessary skills required but also how strategy fits into building a sustainable business model. There are many different aspects of running a company; however, developing marketing strategies will help increase awareness about the services you provide which can lead to more clients in the long term.

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Home Health Care Business Plan Sample

OCT.12, 2016

Home health care business plan for starting your own agency

Home healthcare is an $84 billion industry in the US alone and it is not going to slow down anytime soon. It covers both non-medical healthcare and skilled home health care, teams. Currently, the US has over 386,000 home health care businesses and employed more than 1.7 million people approx. But this home care agency business plan is not for everyone. It involves high stress and peer pressure in its environment.

If you have a strong desire and passion for helping others, this industry is very rewarding and you can earn a lot with compassion. If you are eager in starting a home health care business and you are raising funds, it is highly recommended to come up with a well-detailed home health care agency business plan .

Executive Summary

In this section, you need to explain all the basics of your homecare business model. Explain how much amount you want to raise for the growth of your home care agency business plan while presenting the expected operations and financials over the upcoming 3 years. For Example,

Wheatland Home Healthcare Agency (Your Company Name) is a Kansas-based home healthcare agency aimed to provide home health care agency business plan services to the targeted market.

The business

If you are wondering how to start a home care agency business plan , you first need to start with arranging for sophisticated medical equipment. Make a detailed list of all the business equipment you will have to arrange.

In addition, your company should also be licensed by your respective state and who will be your partners.

When making a homecare business model, you should also include who will be the owner and main operator of the home care agency business plan . For example, Wheatland Home Health Care Agency will be based in Wilson County (the area) and owned by its operators and investors. The office will be managed in a lavish office space in Kansas.

Your customers are basically the families and individuals looking for social services and/or home health care. If you are asking how to get clients for non-medical home care business, you can generally ask attorneys, physicians, healthcare facilities and insurance companies who can refer those patients to you.

Business Target

Consider this example when writing a business plan for home health care.

Company Summary

When setting up a care company, you need to explain how you are going to make a presence in the market. For example, “Our agency will be based on a central location of Kansas and provide different services to clients and patients coming from Wilson, Neodesha, and Labette Counties, within the radius of 90 miles of our corporate offices.”

Here, you need to define your company and goals when you start a home health agency. You may want to promote and market your business and make an online presence by starting a website.

Company Owner

As a limited liability company, Wheatland Home Healthcare Agency is going to be operated and owned by Ethan J. Peter (name of company owner).

Along with years of experience in healthcare industry, explain the specialization and qualification of the owner.

Why the home health care business is being started?

When making a non-medical home care business plan, explain what the inspiration behind starting a home health care business is. Do you have a strong desire to help people in need which drives you to make it your profession? Do you have years of experience working with a healthcare organization and want to start your own home care agency business ?

How the home health care business will be started?

Since your company is being started, you will definitely need to address your funding matters and startup costs. In this sample business plan for home health care agency, we have listed the assets required for start-up, a breakdown of start-up expenses, total cash required, total funding, investment, capital, and other liabilities along with the startup cost diagram to illustrate the expected expenses, investment, assets, bank loans for the business plan , etc.

Services for Customers

The home health care agency’s business plan  should be aimed to help people with special needs as well as elderly in their daily activities and providing all the living help at the home. The company should also retain a skilled team of healthcare professionals, in case any specific treatment is required or in an emergency.

Along with at-home facilities, your company should also provide facilities to take them out if they are not able to drive their car. In this section of a home care business plan , you need to describe the services you have planned to offer.

As a home care agency business plan , you should ensure that all your clients/patients have been treated well. The following services should be provided by specialized health care nurses, physicians, mental health counselors, physical therapists, chiropractors, rehab counselors, and other professionals who are well versed in providing valuable services. Your non-medical home care agency business plan should include the following services –

• Nursing Aide
• Skilled Nursing
• Social Work
• Personal Injury Case Management
• Physical, Occupational, and Speech Therapy
• Personal Assistance Services
• Home Medication Management

When creating a business plan for home health care agency , you may also want to provide resource linkage, assessment, planning, and reporting services for injury case management.

Marketing Analysis of Home Health Care Business

When raising funds, the best thing you can have is a foolproof business plan for home care agency to stand out in the competition and market your home care agency business . It goes without saying that home health care is a growing industry on both the national and international levels. If your community has become an over-saturated market with a lot of home health care services out there, you must have a lot of competition to face.

However, a strong marketing analysis on home care services business plan can save you and drive you to penetrate the market in the short term. You need to figure out the weak point of your competitors and make proper marketing strategies.

For better insight, consider the following home health care business plan example in this segment.

The Wheatland Home Health Care Agency’s customer base would generally consist of patients who are referred by health care facilities, physicians, and other professionals in the industry. Only a small percentage of patients will be covered by any private insurance company because most of them will be insured by Medicare.

For the Personal Injury Case Management part of our business plan for domiciliary care agency , the customer base generally includes the patients who have been injured in any kind of accident or in the job. These patients will usually get referred from lawyers looking for case management services for them or insurance providers seeking help to mitigate the loss of their clients and injuries.

Market Trends

The target customers of personal injury case management, as well as home health care agency business plans , usually don’t do comparison shopping directly. They usually prefer the health care providers who are referred by their physicians.

When it comes to assessing competition in the field of home health care, the most vital aspect here is consulting with other professionals and asking them to refer their clients to your agency. For doing this, your agency should provide the best patient care and showcase professional business management and organization, and pertinent and current qualifications. It will help you to capture most of the personal injury case management and home healthcare market in your respective area.

Marketing Segmentation

The target market for home health care business should be an aging population who prefer to stay in their homes most of the time and go out mostly for seeing doctors instead of being admitted to a nursing home. Your target market should cover especially the patients who are aging and need proper health care services from a well-trained nursing team. They may also call for other home care services like social work, to gather important resources from the community.

Next up, you may want to target the people who need personal injury case management solutions. You can help them in dealing with financial, medical, and work-related issues.

Since you are specialized in community-oriented services and home health care services, your target should be the segments where your services are needed the most. By working for those market segments, which need home care services only, you can save overhead expenses significantly, as you will not have to set up another office space.

Product Pricing

When acquiring home health care services, trust is the major aspect for both referring professionals and customers. They should have faith in your home care service for reliability, professionalism, and quality.

The customer’s choices do not get affected with the pricing of your services. A lot of those services are covered under Medicaid, Medicare, and private insurance providers and the rates are set by them.

Pricing is a very determining factor for personal injury case management. It varies from case to case and is paid on an hourly basis, which is subject to negotiation. When it comes to providing personal injury case management, the pricing would be estimated on the total time required for the client.

Absolutely great experience I am really …

Absolutely great experience I am really impressed thanks Alex

Home Health Care Marketing Strategy

So you have developed a full-fledged domiciliary care agency business plan and go through all the complex processes of Medicare and state certificate. You have also recruited experienced professionals.

The next thing to consider in a free business plan for home health care agency is the way to attract clients. This is where you need proper marketing strategies to ensure success.

Competitive Analysis

In this free home health care agency business plan , we will start with your competitive edge. If you have learned a lot of daily administrative duties and have experience in home care agency business plan , you can make it successful. Your reputation can help you build a solid client base even before starting your home care agency business plan .

Sales Strategy

Here, you need to provide the best patient service and ensure complete satisfaction from referring to healthcare facilities and physicians.

Sales Monthly

This part should contain your projected monthly sales in home  care agency business .

Sales Yearly

Define annual projected sales from your home care agency business  for three years in this section.

Sales Forecast

It reflects the conservative average of your patients during the first year along with modest year-by-year rise. It should be based on the total patients you are seeing currently in your home health care business.

Personnel plan

In this sample business plan for home care agency, the following points should explain your staff requirements, benefits, and costs needed to hire them. You should also consider the cost of living of employees without affecting your administration. Project the growth of the client base without any impact on payroll because of increased working hours.

Company Staff

In this part of home health care agency business plan free, explain the number of employees as well as who will be hired for what services and for how many hours.

Average Salary of Employees

This part should contain the breakdown of an average salary of each employee in your organization for the next three years.

Financial Plan

As discussed, you may want to use your cash flow to finance your growth. It will ensure slow but steady growth. The collection of dues plays a very vital role in non-medical home care business profits. The services will be mainly reimbursed by insurance providers.

Important Assumptions

The assumptions table showcases major annual assumptions based on tax rates, interest rates as well as staff requirements. For example, we assume no major recession and strong economy, as well as no major and unexpected change in federal policy.

Brake-even Analysis

In a home health care agency business plan , the brake-even analysis is based on Average Variable cost (per unit) and fixed monthly costs.

Projected Profit and Loss

You need to project the overall profit and loss, with sales, rise over the next three years and profits should be notable in the beginning. Also, project your expenses and primary costs in providing services on a monthly and annual basis.

Profit Monthly

In this section, you need to show the detailed overview of your monthly profits for the 12 months in the next 3 years.

Profit Yearly

Your investors may also want to know the annual profits your business can make. It will also help you determine the estimate annual profits for the next 3 years

Gross Margin Monthly

Gross Margin Yearly

Projected Cash Flow

Projected Balance Sheet

The projected balance sheet of your home care business should show sufficient net worth growth and healthy financial state.

Business Ratios

The projected business ratios should be based in comparison with home health care standards. Expect to have healthy ratios for risk, profitability, and returns.

Download Home Health Care Business Plan Sample in pdf

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Creating a Home Care Agency Business Plan

Starting a home care agency can be a fulfilling and profitable venture, especially with the growing demand for quality home healthcare services. However, before you dive into this industry, it’s crucial to create a well-thought-out business plan that outlines your mission, vision, strategies, and financial projections. A carefully prepared business plan is your roadmap to success in the home care industry.

• Executive Summary The first section of your business plan should be an executive summary. This is a concise overview of your agency, including its purpose, target market, unique selling points, and financial expectations. While it appears at the beginning, it’s often written last, as it summarizes the key points of your plan.
• Company Description Provide a detailed description of your home care agency. Discuss the services you intend to offer, the population you’ll serve, and your agency’s mission and values. Explain why you’re passionate about this industry and what sets your agency apart from the competition.
• Market Research Conduct thorough market research to understand the demand for home care services in your area. Identify your target demographic and competitors, and showcase your competitive advantage. Knowing your market will help you tailor your services and marketing strategies effectively.
• Services and Pricing Outline the range of services you’ll provide, such as personal care, companionship, or specialized care. Define your pricing strategy, considering factors like market rates and the cost of service delivery.
• Marketing and Sales Strategy Describe how you’ll reach your target audience, convert leads into clients, and retain them. This section should cover your branding, marketing channels, pricing strategy, and sales tactics. This may include online and offline marketing efforts, partnerships with healthcare providers, and strategies for word-of-mouth referrals.
• Staffing and Training Describe your hiring process, including qualifications and certifications required for caregivers. Discuss training programs and how you’ll ensure your staff is well-prepared.
• Operations and Management Detail your day-to-day operations, from scheduling client visits to managing administrative tasks. Highlight key personnel, their roles, and responsibilities.
• Financial Projections & Funding Provide detailed financial projections, including startup costs, revenue forecasts, and cash flow estimates. If you require external funding, specify the amount and how you’ll use it. Potential investors or lenders will want to see a clear plan for allocating capital.
• Regulatory Compliance Explain how you’ll navigate the complex web of healthcare regulations and licensing requirements. Compliance is crucial in the home care industry.
• Risk Analysis and Contingency Plans Acknowledge potential risks and outline contingency plans to mitigate them. This demonstrates your preparedness for unexpected challenges.
• Appendix: Include any supplementary materials, such as resumes of key team members, market research data, legal documents, and other relevant information.

A well-prepared business plan is a crucial tool for any aspiring home care agency owner. It not only helps you secure financing but also provides a roadmap for success. Review and update your plan regularly to ensure your agency remains competitive and evolves with the market. With a comprehensive plan in hand, you’ll be better equipped to navigate the challenges and seize the opportunities in the dynamic field of home healthcare.

Home Health Care Business Plan Template [2023]

Home Health Care Business Plan Template

If you want to start a Home Health Care business or expand your current Home Health Care business, you need a business plan.

The following Home Health Care business plan template gives you the key elements to include in a winning Home Health Care Agency business plan.

Below is a sample home health care plan, outlining each of the key sections of a successful home care business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary

Business overview.

[Company Name] was founded by [Founder’s Name]. [Founder’s Name] is a nurse that has worked in local hospitals for over a decade. Her years of experience has taught her how to care for aging adults in a safe and supportive manner. [Founder’s Name] realizes the need for a quality and affordable home health care company as she has a difficult time placing her patients that are being discharged from the hospital with an agency that is reliable and within the patient’s budget. [Company Name] is a high-quality home health care agency that treats elderly patients with a wide array of illnesses and issues with a friendly and supportive staff that is also affordable and works within the patients budget.

Services Offered

[Company Name] will provide nursing, physical therapy, occupational therapy, home health aides, and social work services to its patient clients. In addition, their team of healthcare specialists will also be able to provide specialized services for Alzheimer’s, dementia, arthritis, and diabetic patients.

Customer Focus

[Company Name] will serve the aging community of [company location]. Many of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and would prefer to receive their care in the comfort of their own home rather than the hospital or assisted living facility. The demographics of the target customer profile is as follows:

• 106,727 residents
• Average income of $65,000
• 63.4% married
• 43.2% retired and/or over the age of 55
• Median age: 42 years

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team

[Company Name] is owned and operated by [Founder’s Name], a local nurse who has worked at local hospitals for over the past ten years. She has dealt with hundreds of elderly patients and their families finding adequate and affordable home health care upon being released from the hospital. [Founder’s Name] has realized there is a lack of quality and affordable home health care agencies in [company location]. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Aside from the nurses, therapists, aides, and social worker she will have on staff, [Founder’s Name] will also employ a receptionist and Office Manager to help with the administration and operation of the home health care agency.

Success Factors

[Company Name] has several advantages over its competition. Those advantages include:

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.
• Quality Care: [Company Name] will provide expert services so that the patients are at the highest comfort level.
• Pricing: [Company Name]’s pricing will be more affordable than its competition. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high.

Financial Highlights

[Company Name] is seeking $150,000 in funding to launch its home health care business. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.

The breakout of the funding may be seen below:

• Capital expenditures (computers, equipment, etc.): $20,000
• Marketing and advertising: $10,000
• Staffing costs: $60,000
• Working capital: $10,000

II. Company Overview

Who is [company name].

[Company Name], is located at [insert location here] is a new home health care agency that provides skilled nursing services and occupational therapy to aging adults.

[Company Name] was founded by [Founder’s Name]. [Founder’s Name] is a nurse that has worked in the local hospital for over a decade. Her years of experience has taught her how to care for aging adults in a safe and supportive manner. [Founder’s Name] realizes the need for a quality and affordable home health care company as she has a difficult time placing her patients that are being discharged from the hospital with an agency that is reliable and within the patient’s budget. Many of her patients frequently use family members or friends that are inadequately trained or knowledgeable about what it takes to care for an elderly person. They have to rely on whomever is available because they can not afford a home health care agency. Most times, the caretaker’s schedule is inconsistent and the elderly person ends up back in the hospital because they are not receiving adequate nursing or therapy care.

A large segment of [Company Location]’s population is retired and/or elderly adults. There are not enough home health care agencies to support the aging population of this community.

[Company Name]’s History

[Founder’s Name] has been consulting with an attorney and CPA over the last few months to understand the business and financial obligations that go with owning their own business. Her lawyer has advised [Founder’s Name] that [Company Name] should be incorporated as an S-Corporation on [date of incorporation].

[Company Name] has identified the home health care office it will use as its headquarters. [Founder’s Name] has begun lease negotiations and began pricing out construction build-out for the facility.

Since incorporation, the company has achieved the following milestones:

• Found office location and signed Letter of Intent to lease it
• Decided on the company name, and developed the logo and website located at www…
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Began recruiting key employees for the home health care operation

[Company Name]’s Services

Below is [Company Name]’s list of services. All services will be provided by a trained and licensed staff.

• Skilled Nursing Services
• Therapy and Rehabilitation
• Alzheimer’s & Dementia Care
• Diabetes Care
• Arthritis Care
• Home Health Aide
• Medical Social Worker

[Company Name] will be able to provide daily services as well as accommodate on-call services and emergency response.

III. Industry Analysis

Strong and steady revenue growth is expected for the Home Care Providers industry over the five years to 2026 as a result of an aging population, increasing interest in home healthcare and expanded access to Medicare and Medicaid under the Patient Protection and Affordable Care Act (PPACA). The aging population will likely continue to foster revenue growth because this demographic not only requires more healthcare services compared with other age groups, but it also increasingly prefers home care. Payers will progressively shift to home care because it is more affordable than inpatient hospital and nursing home care.

Large companies will grow even larger through mergers and acquisitions. Moreover, home healthcare will evolve to include more chronic disease-management services, and consolidation will help the industry unite to influence policy change and benefit from larger-scale operations. Considering these projections, revenue is forecast to increase to $138 billion in the next five years.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The community of [company location] has thousands of retired, elderly adults who require a greater need of attention. Many of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and would prefer to receive their care in the comfort of their own home rather than the hospital or assisted living facility.

Below is a demographic breakdown of this area:

Customer Segmentation

We will primarily target the following four customer segments:

• Elderly patients who are being released from the hospital and their doctors highly recommended daily nursing services and/or therapy.
• Elderly patients who had a recent fall and require physical and/or occupational therapy to heal from their injury.
• Elderly patients who are suffering from Alzheimers or dementia and would prefer to remain in their home rather than an assisted living facility.
• Elderly patients who are diabetic and/or suffer from severe arthritis and need daily assistance with medication, etc.

V. Competitive Analysis

Direct & indirect competitors.

Comanche County Home Health Comanche County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is comprised of dedicated professionals who are committed to providing quality care in the comfort and convenience of the patients’ home. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Registered nurses, licensed practical nurses, nutritionists, speech therapists, physical therapists, occupational therapists, home health aides, and medical social workers all work with the patient and their family to develop an individual plan of treatment.

Elara Caring Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in the Northeast, Midwest, and South. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of the patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Elara Caring leads patients through the post-acute care journey by providing the appropriate level of care, delivered wherever our patients call home. The company’s intimate understanding of its patients’ needs allows it to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health Serving the Lawton, Oklahoma area, they are one of the nation’s leading providers of home health services and continually set the standard of homecare through their people, their approach and their outcomes. The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech language pathologists, medical social workers and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home.

Whether recovering from a surgery, recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patient’s where they are. They offer cutting-edge specialty programs that focus on patient education, self-management and reducing hospital readmission, resulting in better care and better outcomes for their patients.

Competitive Advantage

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field, but place a special emphasis on compassion.
• Quality Care: [Company Name] will provide expert services and their patients will receive quality treatment and care so that the patient is as comfortable as they can be.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Knowledgeable, friendly, expert staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and aide services at competitive prices.

Promotions Strategy

[Company Name] will target all residents of [company location] within a 20-30 mile radius. The Company’s promotions strategy to reach the most clientele include:

Local Hospitals [Company Name] already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend [company name] to its patients and their families upon releasing them from the hospital.

Nursing Homes and Assisted Living Facilities Oftentimes, an elderly patient will be placed in a nursing home or assisted living facility right away. Sometimes they are not happy and would rather go back home. [Company Name] will work with these facilities so that they recommend their agency for when a patient highly desires to receive the care in the comfort of their own home.

Website [Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.

SEO [Company Name] will invest in a high SEO presence so that the agency is listed at the top of the Google or Bing search engine when a family member is researching home health care agencies in [company location].

Billboard [Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors offices, rehab facilities, and a hospital nearby.

Advertising [Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters that focus on the retired and aging population.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing its services.

VII. Operations Plan

Functional roles.

[Company Name] will need to fulfill the following functional roles in order to execute their business plan and ensure the company’s success:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, tax, etc.
• Staff management and scheduling
• Hiring and training staff

Health Care Functions

• Physical Therapist
• Occupational Therapist
• Home Health Aides
• Social Worker

[Company Name] will achieve the following milestones in the following [] months:

• Secure 2,000 square foot office space
• Develop website, logo, and company website
• Secure small business loan bank financing
• Develop and finalize list of home health care services
• Hire and train staff
• Begin advertising campaign with hospitals, nursing homes, billboard, and print publications
• Grand Opening of [Company Name]

VIII. Management Team

Management team members.

[Company Name] is owned and operated by [Founder’s Name], a local nurse who has worked at local hospitals for over the past ten years. She has worked in the Occupational department where there are numerous elderly patients being treated daily. She has dealt with hundreds of elderly patients and their families finding adequate and affordable home health care upon being released from the hospital. [Founder’s Name] has realized there is a lack of quality and affordable home health care agencies in [company location]. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

[Founder’s Name] graduated from the University of ABC with a Bachelor’s Degree in Nursing.

Hiring Plan

[Founder’s Name] will serve as the agency Founder and Chief Executive Officer. She will hire the following personnel in order to maintain an effective and profitable home health care business:

• Office Manager will assist [Founder’s Name] run the administrative tasks to operate the agency. This person will handle bookkeeping, tax payments, payroll, and office inventory.
• Receptionist will handle all phone calls and web inquiries. This person will also manage the scheduling of the home health care staff.
• Nurses – 2-3 nurses will be on staff to provide the nursing services.
• Occupational Therapist – 1 OT will be on staff to provide occupational therapy services.
• Physical Therapist – 1 PT will be on staff to provide physical therapy services.
• Home Health Aides – 3-4 aides will be on staff to provide basic care to the patients.
• Social Worker – 1 social worker will be on staff to oversee the welfare and care of each patient.

IX. Financial Plan

Revenue and cost drivers.

The revenues for [Company Name] will come from the fees it will charge the patients and their insurance for the health care services it provides.

The cost drivers for the company will be the payroll of the staff, lease on the office building, office supplies and equipment, and marketing and advertising costs.

Capital Requirements and Use of Funds

Key assumptions.

  5 Year Annual Income Statement

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How to craft a successful home care business plan

Claim your free Nextdoor business page

Claim your business page to get discovered by customers and manage your recommendations

As a home care provider, you run your business with compassion and knowledge of the job and the local community you work with. After you’ve learned more about how to become a caregiver and how to start a home care business , you’re ready to formalize your ideas with a business plan.

How to create a home care business plan

Your business plan is an essential part of the portfolio you’ll present to banks, investors, and partners before launching your company. Every entrepreneur can benefit from a business plan that helps you turn your vision into action and strategize for success. For home care professionals, there are unique additions and considerations for your business plan. From determining your core local clients to developing the marketing plan to reach them, this guide will walk you through nine sections for your home care business plan.

1. The executive summary

The executive summary kicks off your business plan and hooks whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out in your business plan.

A home care business summary should include:

• Your mission and the populations your business will serve 
• A list of your primary services 
• The demand for these services in your community
• What sets your home care business apart from competitors
• Your vision 
• A summary of funding needs

2. The company description

As a home care business working with clients in need, your professional background should be front and center. Your company description offers a snapshot of you and your business, and should include:

• The registered (or intended registered) name of your business
• The location of your company headquarters, and the neighborhoods, area, or city your business will reach
• Management, primary personnel, and their professional backgrounds
• Any licenses or certifications your staff has

Different types of home care services will need different certifications, like medical home care companies compared with senior transportation providers, for example. Make sure to research and include the requirements in your county, city, and state. 

If you’re in the preliminary stages of creating your home care business and haven’t secured the required licenses yet, mention any certifications you’re pursuing in this description.

3. Your business mission and goals

The mission and goals section of a business plan outlines the primary objectives of your company and how you plan to achieve them.

As more Americans advance into the senior age bracket, demand for credible home care businesses is rising. This need can help position your business for success and give you more opportunities to refine your mission and select specific populations to focus on. 

The need for home care help for senior relatives in particular has grown. As home care professional Christine Friedberg reflects, “I used to get on the phone and talk with clients about home care being an option for them or for their loved one, but it was like a new concept…For a long time, we were trying to educate the community about what home care was. Demand is greater than ever now.”

Medicare’s Triple Aim program may provide general inspiration for your own company goals. Their three pillars are :

• Centering and improving patients’ experience of care
• Improving health outcomes of patients served
• Mitigating the cost of care for individuals

From a business perspective, working with specific demographics may give you a leg up on funding. Based in Alexandria, VA, Griswold Home Care works with the area’s large population of aging veterans. To reach more of them, Griswold joined the cross-regional VA Community Care Network to provide in-home services to veterans needing extra support at home.

Not only was Griswold able to reach a specific community in need, but the program also helped this local home care business secure funding directly from the Department of Veterans Affairs . “We’ll see anywhere from 5 to 20 hours a week that the VA is covering, in terms of actually contracting with us directly. They pay us directly…so it’s very easy for the veteran to get in, take advantage of this program and take advantage of this care.”

In the home care industry, other demographics include:

• LGBTQ senior citizens
• People with Alzheimer’s
• People living with disabilities
• Non-seniors living with disabilities
• Adults whose first language isn’t English

Keep your demographic in mind as you refine your company’s identity and plan for growth. It will determine the steps you’ll take to fund your business and reach the neighbors who need you most.

4. Your services

The services section of your home care business plan sets the vision for what your business will specifically do. There are two main types of home care companies and services:

• Non-medical home care services – This type of home care business is not licensed to administer medical services or healthcare to its clients. Instead, they provide support, companionship, and home assistance. Services may include driving clients to doctor’s appointments, taking them to the park, or preparing meals.
• Medical home care services – Medical home care providers are staffed by nurses or other medical professionals licensed to administer medical care to their clients.

With the growing need for at-home healthcare businesses, some of the most common home care services include:

• Assistance with dressing, bathing, and using the toilet
• Companionship and diversion
• House cleaning and support with daily chores
• Transportation
• Hospice care
• Continued education for older adults
• Physical therapy and rehabilitation
• Prescription fulfillment services
• Administering medication
• Tracking vital physical or psychological health 
• Senior citizen relocation assistance
• Specialty nursing for a long-term illness or disability
• 24-hour emergency services

Get specific about what caregiver duties you’ll provide your clients, narrowing down your list with the most needed services in your local community. With 1 in 3 U.S. households on Nextdoor , you’ll be able to connect with neighbors, and your most important clients, with a free business page.

5. Your management structure

This section of your business plan establishes the legal status of your company, which affects other details, from the extent of your liability as the owner to how you’ll file taxes.

The most common business structures for home care providers are:

• Limited liability company (LLC)
• Sole proprietorship
• Partnership
• Corporation

To choose the right business structure for you, consider:

• Liability – Every business is financially and legally liable to compensate for injuries committed on their watch. Consult with an accountant to take stock of your personal assets to choose a framework that gives you adequate protection.
• Taxes – Your home healthcare business structure will determine how the profits you earn are taxed, whether through your business, on your individual tax returns, or a hybrid of both. As a general rule, the larger your company is, or the more shareholders it has, the more complex the tax process will be.
• Growth expectations – Whether your home care company will focus on your neighborhood or expand nationwide, your business structure should reflect your desired administrative capacity and set the stage for investors who want to scale alongside you. 

While S corporations and C corporations are often better suited for larger-scale companies, it’s possible to change the legal structure of your organization as it grows. Consider hiring experts, like a lawyer and an accountant, to help you with this stage of the process, especially if they have advised other local businesses in your area.

6. Your marketing plan

Show potential funding partners you know the modern home care market and set your local business up for success with marketing goals that cover the following bases:

• Digital marketing - In a job as intimate as home care, any new caregiver business begins on the local level. Sign up for a free business page with Nextdoor to instantly unlock a network of verified neighbors near you. Keep your business page updated with your story, photos, and contact information so local clients can find you and easily get in touch. Introduce yourself, share job listings, and keep neighbors updated on your business with free posts or hyperlocal advertising tools to reach more clients in specific ZIP codes you want to grow your business in.
• Partnerships – Qualified home care providers may be eligible to partner with care networks already plugged into local consumer demand. If properly licensed, apply to enroll as a Medicaid or Medicare partner. 
• Word-of-mouth marketing – Since home care professionals are a part of their clients’ and families’ lives, your local reputation will be important. Build trust in you and your services with testimonials on your website and recommendations on Nextdoor. 72% of neighbors there have been influenced by a business recommendation and 71% have shared one. Consider sharing your website and Nextdoor page with former clients to ask them for a recommendation.

Anything that makes your home care business unique, include in this section of your business plan. With a growing population of aging Americans, entrepreneurs are getting creative about the types of care they offer to suit different lifestyles.

Take Dr. Bill Thomas . He thought there should be a senior care option in place of the traditional nursing home so he created Minka, a company that builds small dwellings tailormade for seniors who want extra assistance, community, and autonomy in their advanced years. Says Thomas, “I think there will continue to be congregate housing, but the more choices people find in front of them, the more they’ll find something that suits them best.”

7. Your core financials

The next two sections cover your financial history with projections for your home care business’s future. This will be important for your business strategy, as well as for potential lenders, investors, or partners. 

The finance section of your home care business plan should include:

• Income statement
• Balance sheet
• Expected revenue
• A list of your assets and debts
• A summary of company expenses
• Desired loans

If you plan to enroll as a provider through a network like Medicare, mention in this section of your business plan.

8. Financial projections

This section of your home care business plan is important if you’re asking for an investment of any kind as it covers the funding you’re requesting, what you’ll use it for, and your plan to pay it back.

Financial projections should cover at least three years. Fortunately, the home care industry is slated for financial growth in the coming years. In the U.S. alone, the compound annual growth rate for home health care is projected to be 14.2% between 2021 and 2027.

However you plan to grow your company, speak with your local bank to discuss the full spectrum of financial options before finalizing your business plan. 

You can also connect with fellow home care professionals through Nextdoor for more information on the local home care industry in and around your neighborhood. This will help you get a realistic sense of your financial plan and the next few years operating your business.

9. Appendix

Your business plan’s appendix is where you’ll include any supporting or miscellaneous information for your business goals that didn’t have a place in the earlier sections.

Consider including:

• The resumes or educational and professional backgrounds of you, the owner, and your core staff
• Medical or non-medical licensing, or the licenses you plan to secure
• Any legal permits your business needs or the ones you plan to secure
• Bank statements, loans, and personal or professional credit history
• Real estate information about your business’ headquarters, if applicable

Make local connections through Nextdoor

As more Americans age, local caregivers are increasingly integral to the health of their communities. An effective home care business plan should tell this compelling narrative, sharing why there’s a need for your services and what you’ll do to fulfill them in your area. 

If you’re just building your local home care business, start close to home with a Nextdoor Business Page. Signing up is free, takes just a few minutes, and will help you spread the word, turning your neighbors into your first clients. 

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Home Health Agency

Back to All Business Ideas

How to Start a Home Health Agency

Written by: Stojan Trajkovikj

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on November 18, 2021 Updated on April 16, 2024

Investment range

$2,250 - $11,500

Revenue potential

$52,000 - $260,000 p.a.

Time to build

0 – 3 Months

Profit potential

$47,000 - $78,000 p.a.

Industry trend

If you’re a nurse or professional caregiver, you know how rewarding it can be to care for people and possibly nurture them back to health. As the Baby Boomer generation ages into retirement and beyond, the number of elderly Americans is growing fast, increasing demand for home health care services. Starting your own home health care agency will give you the opportunity to care for people on a daily basis — and potentially make a comfortable living.

Starting your own agency won’t be easy, but the rewards will likely be worth all the work you put in. This step-by-step guide will educate you on the steps involved in starting your own agency and beginning your entrepreneurial journey in health care!

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a home health agency, just like starting any business, has its pros and cons. You’ll need to evaluate these to decide if a home health agency is the right path for you.

• Fulfilling work – Few jobs are more rewarding than helping people feel better
• Flexibility – Choose your clients and set your own schedule
• Steady work – Aging Boomer generation means sustained demand
• Travel time – Visiting multiple clients daily can mean a lot of driving
• Fatigue – Caregiving is often demanding, high-stress work
• Isolation – Solitary work, mostly one-on-one with clients

Home health care industry trends

The home health care industry refers to both medical care provided in the patient’s home, and the more simple home care of helping people with daily tasks, like washing and getting dressed. The latter is the most common type of home health care.

Industry size and growth

• Industry size and past growth – In 2021, the home health care industry was worth $126 billion in the US and $320 billion globally.(( https://www.grandviewresearch.com/industry-analysis/home-healthcare-industry )) Data firm IBISWorld says the US home care providers industry has expanded at least 3% per year since 2017.(( https://www.ibisworld.com/industry-statistics/market-size/home-care-providers-united-states/ ))
• Growth forecast – The global market is predicted to grow around 8% annually through 2030.
• Number of businesses – The US is home to more than 450,000 home care providers.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/home-care-providers-united-states/ ))
• Number of people employed – The industry employs more than 2 million people in the US.(( https://www.ibisworld.com/industry-statistics/employment/home-care-providers-united-states/ ))

Trends and challenges

Trends in the home health care industry include:

• An aging population and rising cases of chronic diseases in the US are driving demand for home health care services
• Growing preference for telehealth services also boosts demand 
• High cost of health care makes home care a less expensive alternative

Challenges in the home health care industry include:

• High level of competition due to low barriers to entry
• Lack of qualified workers

What kind of people work in home health care?

• Gender – 85% of home health providers in the US are female, while 15% are male.(( https://www.zippia.com/home-health-provider-jobs/demographics/#gender-statistics ))
• Average level of education – 29% of home health providers have a high school diploma and 24% have an associate degree.(( https://www.zippia.com/home-health-provider-jobs/demographics/#degree-level-types ))
• Average age – The average age of a home health provider is 48 years old.(( https://www.zippia.com/home-health-provider-jobs/demographics/#age-statistics ))

How much does it cost to start a home health care agency?

Startup costs can range from just $2,000 to more than $11,000, with the average cost around $7,000. The high end is for a Medicare-licensed health care agency, due to the expensive licensing process.

You’ll need a handful of different items to successfully launch your home health care agency. Here’s a list to help you get started:

• Medical equipment: blood pressure monitor, thermometer, latex gloves
• First aid kit
• Cleaning supplies

How much can you earn from a home health care agency?

If you’re a registered nurse or licensed caregiver, you could start your agency on your own and potentially have a profit margin as high as 90%.

Home health care services cost about $25 per hour. Thus, if you’re able to work 8 daily hours 260 workdays per year, you’ll bring in $52,000 in revenue and around $47,000 in profit, assuming a 90% margin. As you grow and hire more workers, sales could climb to 40 billable hours per day, but due to increased costs your margin might drop to 30%. This would give you annual revenue of $260,000 and a nifty $78,000 in profit.

What barriers to entry are there?

There are a few barriers to entry for a home health care agency. Your biggest challenges will be:

• Licensing – Your agency may need licenses depending on state and services
• Client acquisition – It takes time to build a track record and client base

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Step 2: hone your idea.

Now that you know what’s involved in starting a home health agency, it’s a good idea to hone your idea in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

First, you should look at the home health care agencies in your area to see what they are offering and what areas they cover. Is there an area that is not being serviced or are there particular services that are missing? Look for market gaps that you can fill.

What? Determine your products or services

Determine what services you may be able to offer your clients, particularly ones that may differentiate you from the competition. In addition to medical services (if you will be a medical agency) and daily tasks, you could offer:

• Prepared meals
• Grocery delivery
• Companionship
• Cleaning and laundry

How much should you charge for home health care services?

The average rate for home health care services is around $25 per hour. If you are a nurse offering medical services, you could charge several times that. Your agency might offer different levels of care at different rates. For example, you could offer a package of full-day services and charge a daily rate.

Once you know your costs, you can use our profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will generally be an older population, but it may be their children or other younger relatives who engage you for services.

It’s a good idea to ask yourself, based on your service offerings, who is most likely to be the relevant decision-maker?

If your clients are over 70, the decision-maker will likely be the client’s child, so you should target your marketing accordingly. For example, when choosing a social media site for marketing, Facebook might be a good bet for the 30-50 demographic.

Where? Choose your business premises

In the early stages, you may want to operate your business from home to keep expenses low. But as your business grows and operations intensify, you will likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “home health” or “home care”, boosts SEO
• Choose a name that allows for expansion: “Continuum Care” or “Serenity Home Health” over “Rehab at Home”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step business name generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a home health care business plan:

• Executive Summary: A brief summary outlining the core elements of the home health agency business plan, including its mission, key objectives, and potential for success.
• Business Overview: A concise description of the home health agency, detailing its mission, vision, values, and the problem it aims to solve in the healthcare sector.
• Product and Services: Clearly defined offerings provided by the home health agency, such as in-home nursing care, rehabilitation services, and assistance with daily activities for patients.
• Market Analysis: An examination of the home health market, including demographic trends, target customer profiles, and an assessment of the demand for home health services in the specified region.
• Competitive Analysis: A thorough evaluation of other home health agencies operating in the same market, identifying strengths, weaknesses, opportunities, and threats to the business.
• Sales and Marketing: Strategies and tactics for promoting the home health agency’s services, reaching potential clients, and establishing a competitive presence in the market.
• Management Team: An overview of the key individuals responsible for running the home health agency, including their qualifications, roles, and relevant experience.
• Operations Plan: Detailed information on the day-to-day operations of the home health agency, covering staffing, scheduling, quality control, and other operational processes.
• Financial Plan: Projections of the home health agency’s financial performance, including revenue forecasts, expense estimates, and a break-even analysis.
• Appendix: Supplementary materials, such as additional financial data, legal documents, or supporting research, providing further detail and context to support the business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to home health care services. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your home health care agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a home health care business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Licenses/Permits

Starting a home health care agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you will need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your home health care agency as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet is vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto : Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. We examine several of them below.

You may want to use industry-specific software, such as Alora , WellSky , and AxisCare , to manage schedules, billing, regulations, and more.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey trustworthiness, care, and professionalism. This includes your logo, staff uniforms, brochures, and website design.
• Direct Outreach : Establish connections with healthcare providers, local clinics, hospitals, and senior centers to generate referrals. Offer informational sessions or workshops in community centers about home health services.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a website that clearly outlines your services, staff qualifications, testimonials, and contact information. Optimize your site for local and specialized searches related to home health services, elder care, and in-home medical care.
• Social Media Engagement : Use platforms like Facebook and LinkedIn to share information about your services, patient success stories (with consent), and health care tips. This can help build community trust and recognition.

Content Marketing and Engagement

• Healthcare Blog : Share informative articles on topics related to home health care, elder care tips, and managing chronic illnesses at home. This can position your agency as a knowledgeable leader in the field.
• Email Newsletters : Regular newsletters can keep your clients and their families informed about changes in healthcare regulations, new services, and health tips.
• Online Webinars or Q&A Sessions : Host webinars addressing common concerns about home health care, featuring your staff to showcase their expertise.

Experiential and In-Person Engagements

• Health Fairs and Local Events : Participate in local health fairs and community events to promote your services and engage directly with potential clients and their families.
• Free Health Screenings or Consultations : Offer free screenings or consultations at community centers or during events to introduce your services and provide value to the community.

Collaborations and Community

• Partnerships with Local Healthcare Providers : Forge relationships with physicians, nurses, and healthcare facilities to create a referral network.
• Community Involvement : Engage in community activities and sponsor local events, showing your investment in the community’s well-being.

Customer Relationship and Loyalty Programs

• Family Education and Support Programs : Offer educational programs for families of clients to help them understand and manage their loved one’s care.
• Feedback and Improvement Initiatives : Regularly seek feedback from clients and their families to improve your services and demonstrate your commitment to their needs.

Promotions and Advertising

• Targeted Local Advertising : Use local newspapers, radio, and community bulletin boards. Online platforms like Google Ads can also be effective for reaching a local audience.
• Collaboration with Senior-focused Organizations : Partner with organizations and groups focused on senior care to broaden your reach within this demographic.

Focus on USPs

Unique selling propositions, or USPs, are the unique characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your home health care meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your home health care business could be:

• Caring for clients like they’re family
• The most experienced professionals
• 24-hour on call availability

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a home health care business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in home care for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in home health care. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home-based office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a home health care agency would include:

• Home Health Care Workers – Basic home health tasks
• Nurses – Provide home medical care
• Office Manager – Scheduling, billing, staff management
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn or Facebook. You can also use free classified sites like Jobs and AngelList. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Home Health Agency – Start Making Money!

Caring for others is one of the most rewarding jobs, and home health care is a service most people will need at some point. Today it’s a growing industry due to the aging US population, high cost of hospital care, and increasing chronic illnesses, such as dementia, diabetes, and cardiovascular disease. 

You could create a niche market for yourself by specializing in certain services to jumpstart your word-of-mouth marketing. Now that you have the knowledge to start a business, you can start your agency for a relatively small investment and be on your way to helping others and making a good living! 

• Home Health Care Agency FAQs

As a one-person agency, you can expect to charge $25 and make around $45,000 each of the first few years. If you add care workers, your business has the potential to grow into a highly profitable company.

Most states require a license even if you don’t offer medical services. You may also be required to have your facilities inspected periodically to keep your license active. Certification of the home health care workers is not required but would add to your agency’s credibility.

If you are a medical home health care agency, in some cases you may be paid by insurance companies. Otherwise, you will be paid directly by the client. You can charge an hourly, daily, or even weekly rate and bill clients weekly, bi-weekly, or monthly.

Market yourself online on leading social media platforms like Facebook and LinkedIn, and visit nearby hospitals, nursing homes, and doctors’ offices to let them know about your services and encourage referrals.

Home health services benefit a variety of clients, including seniors, individuals with chronic illnesses, those recovering from surgeries or injuries, individuals with disabilities, individuals with terminal illnesses, and individuals with mental health conditions.

To develop care plans and ensure quality care for clients:

• Conduct comprehensive assessments to evaluate the client’s medical history, abilities, living environment, and support network.
• Collaborate with healthcare professionals to create coordinated care plans.
• Customize care plans to address individual needs and goals.
• Regularly evaluate and reassess the client’s condition and modify care plans accordingly.
• Train and educate caregivers on care protocols and procedures.
• Monitor and supervise care to ensure adherence to care plans and quality standards.
• Foster open communication with clients, their families, and caregivers.
• Stay informed and updated on best practices and industry standards in home health care.
• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Business Name
• Create a Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Licenses/Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Home Health Agency - Start Making Money!

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How to Start a Home Health Agency: A Complete Guide

If you’re about to embark on a new business venture and looking for in-depth guides and tips on how to start a home health agency - you’re at the right place. 

Starting something new can be daunting, and a little support can make a big difference.

To give you a helping hand and ease the process of starting a home health agency, we’ve researched for you and gathered all the essential information in one place.

We’ve also included a handy “how to start a home healthcare business checklist” at the end of this article so that you can visualize all the steps to your goal without much hassle.

Track your caregivers’ time, location, and mileage with Timeero.

Stay HIPAA and EVV-compliant while managing your caregivers with ease

First Things First: How Much Does It Cost to Run a Home Health Care Business?

Before digging deeper into starting a home health agency, you must get one crucial thing sorted: the finances. The cost structure consists of the necessary up-front investment, start-up expenses, and project costs in the business’s first three years.

The costs of starting a homecare business can differ depending on the state you’ll operate in and the type of home care agency you want to launch. Generally speaking, the non-medical home care agency will cost you the least, while the Medicare/Medicaid Home Health and Hospice start-ups are the most expensive.

Starting a home healthcare business can range anywhere from $40,000 to $350,000, depending on the type of service and the state where it will be provided.  

Take a look at the estimated costs of different types of start-ups:

• Private Pay Home Care agency : $40,000 - $80,000
• Licensed Home Health non-MediCare agency : $60,000 - $100,000
• Medicare Certified Agency: $100,000 - $350,000

PRO TIP: Developing working capital for the first year should be your priority. Not having a working budget for the start-up costs is one of the main reasons new home care businesses fail.

This Industry Is Growing at a Fast Pace

The demand for private caregiver services is rising, and there are several causes for such a trend. For starters, the aging baby boomers are changing the landscape - they account for around 25% of the U.S. population. And by the year 2030, this demographic group will be 65 or older . 

The longevity of life is yet another factor at play here: with modern-day medicine, life expectancy has increased. This also means some U.S. citizens, especially those with chronic illnesses, require longer care. Chronic disease prevalence has also increased, placing more demand on the healthcare market.

But now, it seems we have gone the full circle: more and more seniors nowadays don’t like the idea of nursing homes and care facilities. They would prefer to stay in their own homes as they age - 90% of them, to be exact . This preference greatly impacts the growth of the home health and care industry. 

All of this means that there is a need for more private caregivers and more home health agencies to provide appropriate services to aging citizens. 

Home Health Care Business: What Services Does It Provide?

Home health care is a term used to describe the medical treatment or assisted care provided by trained professionals - either a health care professional or a caregiver/nurse. 

This type of care is tailored for individuals who don’t need hospitalization or facility care but still can’t live safely and independently. 

They need support from medical treatment to assist with daily activities like eating, dressing, or just companionship. Mostly, health care boils down to basic assistance in the comfort of the patient’s home. 

Medical vs Non-Medical Home Health Care Business: The Differences

There are two types of home care agencies, and opting for one is the first step when starting a home health care business. 

Choosing the kind of services you want to offer will impact many things, from the laws and regulations you need to abide by to the qualifications of employees you’ll need. 

Let’s explore what medical and non-medical home care businesses encompass.

Medical Home Health Care Business

As the name implies, medical professionals and home health aides (HHA) provide medical health care services. This type of care goes beyond just supporting normal aging and independence in older adults.

It includes general nursing services (for example, monitoring blood pressure and blood sugar levels), wound care, physical therapy, and palliative care. 

As such, these businesses undergo stricter regulations and may require Medicare certifications. 

Non-Medical Home Health Care Business

Non-medical home care services focus on in-home care: supporting aging and essential daily living. Typically, they include assisting with personal care and hygiene needs, helping in meal preparation, medication reminders, or transportation to and from doctor’s appointments. 

Non-medical home health also encompasses companionship care and keeping elderly individuals sharp and cognitively engaged by playing cards and board games. Professional caregivers, home care aides, or certified nursing assistants provide them. 

How to Start a Home Health Care Business: The Roadmap

Now that we’ve covered the budgeting and the types of services available, it’s time to take an in-depth look into the steps to starting a home health agency.

How to Create a Business Plan for a Home Health Care Agency?

Formulating a business plan is critical for every enterprise. Starting a home health care agency is especially advantageous when improving the strategy or seeking funding. 

Think of it as a blueprint or a roadmap to structuring, running, and growing your business. 

And there’s more to this plan - it can also help you secure funding or get a new business partner on board. A well-thought-out business plan can convince investors to work with you.

In this phase, you’ll need to decide on the type of care you’ll provide and your services. 

Key elements that every home health care agency business owner to incorporate into their plan are:

• Executive Summary. 
• Company Overview. 
• Services Portfolio. 
• Target Audience.
• Leadership Structure. 

Writing a good business plan is the foundation that will guide you when starting your business and later on - when you need to manage it.

Draft a Budget & Secure Funding 

We’ve already emphasized the importance of securing a solid financial plan and a working budget for a year. This is because it takes six months and a year before your business starts making a profit. 

To set yourself and your new enterprise for success, have a budget for your personal and business needs. Overhead costs, hiring staff, and business equipment - to mention a few expenses, tend to add up quickly.  

Also, you’ll need a business checking account and accounting software. 

Create a Business Entity

This term refers to different types of business structures . For example, one can establish a corporation, partnership, sole proprietorship, or LLC - Limited-Liability Company. 

Each of these types will impact your business in the future - the personal obligations you’ll have, the amount of taxes you’ll be required to pay, and the organizational structure of your enterprise.

So, research well and check which of the available business entities ticks the most boxes for you.

Get Your Employee ID Number (EIN)

The Internal Revenue Service (IRS) issues a unique 9-digit number to every business entity operating within the borders of the U.S. The EIN is used for identification, also known as FEIN or, the Federal Employer Identification Number or the Federal Tax Identification Number.

Whatever the name, you need to apply for an EIN . Note that it’s a free service, and you can apply via multiple channels: online, by mail, by fax, or by phone (for international applicants).

Register With the Secretary of State

This step may sound intimidating, but it’s not! In most cases, you must file your business name with state and local governments, and you are good to go to the next step. 

But before you get to the filing part, check whether the name you’ve chosen for your business is available. 

Also, don’t forget to browse the web and check the availability of the domain name for your website, too!

Obtain Required Licenses and Certifications 

Your business needs to be in line with state and federal health departments. You’ll need licensure and certificates required by your state, city, and/or locality. 

For example, in some states, it’s required for home health agencies to undergo a certain number of hours of approved training from local licensing bodies and Medicare/Medicaid certifications. 

Only after they meet these licensing requirements can they provide appropriate services. Different states have different legislation, so it’s best to contact your local and state health departments and learn about the license application procedure. 

Also, something to be aware of is that according to the 21st Century Cures Act , all Medicaid personal care services (PCS) and home health services (HHCS; by January 1, 2023) that require an in-home visit by a provider need to implement EVV system (Electronic Visit Verification) .  

How Long Will It Take to Get a Home Health Care License?

The wait time will depend on your state, but generally speaking, it can range anywhere from less than three months to 12 or even 18 months.

Contact the state regulatory authorities to confirm how long the licensing process takes.

Get Proper Insurance

We can’t stress enough how important it is to obtain the right insurance, as this is a risky industry. After all, you’ll be working with vulnerable individuals. 

Accidents and unpredictable events happen no matter how careful you are, so make sure to get this step right and protect your business and assets. You’ll need the following insurance policies:

• Professional liability insurance (also known as “errors and omissions” insurance) - This policy will cover you if malpractice, negligence, or incompetence claims arise. 

Depending on the services your agency will provide, you may also need:

• General liability insurance protects your business from claims that it caused bodily injuries and property damage.
• Cybersecurity insurance  - In today’s tech world, this type of insurance has become indispensable. If your business happens to be under a malicious online attack and you experience a breach or a hack, this insurance will protect you against some HIPAA penalties related to exposing PII (Personal Identifiable Information)

Aside from that, unemployment insurance, workers’ compensation, and disability insurance are usually required by the law (it varies from state to state, though). 

Hire the Right People & Develop a Plan to Retain Them

Now that you’ve tackled the paperwork and all the legal requirements, your business name, and your entity are approved, it’s time to focus on finding qualified people for your business.

Your employees are the face of your business, so hire people who reflect your company’s values and can provide the best care possible. 

To achieve this, it will help develop a caregiver recruitment plan and a retention one. After all, you want to have competent professionals interacting with the patients, and you’ll want to keep the top talent in your company. You can employ various tactics to reduce nurse turnover , but for the most part, providing training and recognition will keep your clients satisfied with the service. 

Performing background checks before hiring is just one of the safeguards to avoid problems with care from employees.

Get the Clients: Have a Sales & Marketing Plan in Place

This may be the most challenging step in setting up a home health agency until you build a trusted brand. To obtain clients, you’ll need to adopt effective marketing strategies. Here are some of the best ways to do so.

Connect with Reputable Referral Sources In Your Community

Partner with hospitals, rehab centers, and community organizations in your area. Such partnerships can help you expand your reach, gain referrals, and increase your client base.

Build an Online Presence

Growing your business without a website is impossible in today’s business world. To get more exposure, you’ll need a professional-looking site with content catering to older adults and seniors, adult children of seniors, as well as other relatives of older citizens and individuals with disabilities. 

Set up a Google Business Profile (Formerly Known as “Google My Business”)

This is a really important step in boosting your online visibility and acquiring clients. Once you get listed in Google Business, your business address, hours, phone number, and ratings will be available for potential clients and anyone searching for a home health agency within local searches.

Take Advantage of Established Elder Care Websites 

Post your agency listing on prominent elder care websites to get even more online visibility at the right place.

Run Google Ads and Engage in Social Media

You can get immediate exposure for your most relevant searches by using Google ads. It’s a great way to get noticed quickly, especially when you’re still establishing your brand. For instance, you’ll want your website to show at the top of Google when someone types in search terms like “[your location] home health agencies.” 

You can also engage with your target audience on relevant social media channels and provide them with helpful content related to home health services. 

To learn more about strategies you can use, read our guide on How to get private home healthcare clients .

Define Formal Policies and Procedures

You’ll need to have many formal policies and procedures in place. You can either write them yourself (make sure to consult a legal advisor) or purchase them. They should address essential parts of your business operations like: 

• New client admissions
• Hiring Process
• Employee and payroll records
• Client billing
• Client rights and responsibilities 

Prepare for Operations: Scheduling, Accounting, Time & Mileage Tracking

You’ll also need to set up certain office operations to ensure your day-to-day operations run smoothly. 

Most importantly, you will need home health care workforce management software for scheduling, time and mileage tracking on one side, and finance-related tools for accounting, billing, and payroll.

You’ll be glad to know that some of these apps provide multiple solutions and third-party integrations. For instance, Timeero integrates with the accounting software QuickBooks, meaning you can save payroll time by simply exporting your timesheets and mileage to it. 

How to Start a Home Health Care Business: The Checklist

We’ve created a checklist to help you get around and start a home health care business as efficiently as possible. We’ve recapped everything we’ve already explained in this article and listed all the necessary steps you need to take in chronological order.

DOWNLOAD YOUR COPY OF HOW TO START A HOME HEALTH AGENCY CHECKLIST

Starting a home health agency: ‍ chose timeero as your trusted partner .

Timeero app is designed to serve the home health care business and is a reliable partner to many home health agencies.

Here are some of the crucial reasons why you should consider partnering up with Timeero when starting your home healthcare business:

• GPS time and attendance tracking. Timeero app will let your nurses and caregivers track their hours, breaks, and attendance with ease using their mobile apps. As soon as they clock in, their time cards are created automatically, so they don’t need to log their hours manually.

• Mileage tracking. Timeero automatically tracks caregivers’ mileage driving from one in-home visit to another. Again, there is no need for manual data entry, and as mileage records are accurate, so will their reimbursement.

• HIPAA & EVV compliance. Timeero has taken the necessary steps to meet the standards set by the Health Insurance Portability and Accountability Act (HIPAA) for protecting sensitive patient data. And, if some of your services are Medicare-funded, your agency must be compliant and have an electronic visit verification system. Timeero ensures that compliance, too.
• Who’s Working. Real-time GPS tracking lets you see the locations of all your available field staff on a single dashboard. With such insight, you can easily find the nearest nurse or caregiver to react to a potential emergency.

• Scheduling and PTO tracking. Timeero’s robust scheduling technology lets you easily assign jobs and create caregiver shifts. Not only will your staff be notified immediately, but you can also allow them to accept or deny shifts and prevent possible problems. Timeero also simplifies and centralizes the PTO request and approval process, so you can completely forget the hassle surrounding it.

• Notifications, alerts, reminders. You can set up the app to send notifications and alerts to what you find essential. For example, managers can receive an alert when a caregiver hasn’t logged in for their shift or when they clocked in off-site.
• Easy integrations with payroll and accounting solutions. The accurate and reliable data from Timeero can be easily shared with the most popular payroll solutions using integrations with software such as QuickBooks, ADP, Viventium, etc.

To learn more about how Timeero can help your home business grow, read our comprehensive Timeero review . Or, subscribe for the free trial and see the benefits yourself.

Whether you have a few caregivers or hundreds, Timeero will help you improve your efficiency and quality of care.

Natasa is a writer specializing in the IT and software industry with 6+ years of experience in content writing and online marketing. During that period, she wrote more than 1,000 articles and several ebooks. She majored in English language and literature and loves cats, sneakers, and candy. When she's not working, she's probably binge-watching Netflix.

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How to Start a Home Care Business: The Ultimate Guide

The demand for home care services is surging as more people opt for care within the comfort and familiarity of their own homes, valuing the autonomy and personalized attention this option provides. This trend offers a burgeoning opportunity for entrepreneurs eager to fulfill the need for compassionate home health care. Yet, embarking on the journey of launching a home health care agency introduces a variety of challenges, from navigating regulatory landscapes and establishing operational infrastructures to grasping the market dynamics unique to each state.

This guide aims to provide you with the necessary knowledge and tools to know how to start a home care business that not only is profitable but also makes a significant impact on the community. We will delve into crucial topics such as crafting a detailed business plan, acquiring the required licenses, marketing your services effectively, building a competent team, and ensuring the delivery of top-notch care.

Prepare to discover how you can create a home care business that not only flourishes financially but also profoundly benefits your community.

In This Guide:

• Discover Home Care Industry Trends and Insights
• Develop Your Home Care Business Plan
• Certifications, Licensing, and Regulations in Home Care
• Personalizing Care: Tailoring Your Services
• Assembling Your Dream Team

Financial Planning for Your Home Care Business

• Maximizing Revenue in Home Care

Ready, Set, Launch & Expand: Launching Your Home Care Business

Building a strong brand and marketing strategy in home care, fast-track your home care business with nurse next door.

Each section is packed with in-depth insights and practical advice, guiding you toward establishing a home care business that genuinely enriches your community. Let’s embark on this journey together, paving the way for a successful and impactful venture in the realm of home care.

Home Care Industry Trend and Insights

The home healthcare sector is rapidly growing due to an aging population and seniors’ preference for aging at home, where they can have more autonomy and personalized care.

Currently, North America faces a notable shortage of home care agencies amid rising demand from a growing senior population and the overstretched medical system. This situation is further complicated by the ‘sandwich generation’ —adults juggling the care of both their children and elderly parents while working full-time.

Home care services are crucial for supporting seniors, their families, and others needing home assistance. Entering this field not only helps relieve family caregivers but also offers significant opportunities for making a meaningful impact. The increasing interest in starting home care businesses highlights the market’s appeal and the desire to contribute positively in this area.

Exploring the Home Care Market:

🌼 Aging Baby Boomers : The baby boomer generation, consisting of approximately 73 million Americans , is aging, significantly impacting the demand for home care services. This demographic’s preference for aging in place supports the home care industry’s potential for substantial growth.

🌼 Custom Care Demands : Today’s seniors are increasingly seeking care tailored to their unique needs and circumstances. This trend towards personalized services opens new avenues for home care businesses and underscores the myriad advantages of individualized healthcare at home.

🌼 Tech Innovations : The adoption of telehealth and remote monitoring technologies is broadening the scope of services that home care businesses can offer. These innovations enable greater efficiency and improved care quality, significantly enhancing client outcomes and representing a major advancement in the healthcare industry.

🌼 Industry Growth : The home care sector, serving over 12 million individuals , showcases a substantial market opportunity, particularly in contrast to the 2 million people living in nursing or assisted living facilities. This disparity highlights the vast potential and increasing significance of home healthcare services.

Key Benefits of Starting a Home Care Business:

• Transform Lives with Compassion : Make a significant impact by helping seniors and their families feel empowered, joyous, and respected. This uplifts individuals and enhances community well-being.
• Become a Community Beacon : Strengthen your community by providing essential support to families and reducing the strain on public health services, thereby improving local health outcomes.
• Empower and Lead : Beyond creating jobs, your business empowers compassionate individuals to make a difference, supporting the elderly population’s needs.
• Embark on a Rewarding Career Path : Experience personal and professional growth by navigating the healthcare system, developing leadership skills, and building meaningful connections.
• Achieve Financial and Time Freedom : With the home healthcare sector’s significant revenue and growth potential, enjoy financial stability and the flexibility to balance work and life.

Discover if you possess the attributes needed to make a meaningful impact in the lives of others while achieving financial prosperity: 4 Traits of Successful Home Care Franchise Owners .

Crafting Your Path to Success: Developing Your Home Care Business Plan

Creating a comprehensive business and financial plan is crucial for any home care business’s success. This plan serves as your guide, navigating the complexities of healthcare and ensuring sustainable growth.

Key Components of a Successful Home Care Business Plan:

Your business plan is a blueprint for success in the home care industry, covering:

• Business Description : Outline your unique services and value proposition.
• Market Analysis : Assess your target market, competition, and the needs your services fulfill.
• Organizational Structure and Financials : Describe your team and operations, including startup costs, funding strategies, and revenue forecasts.
• Service Offerings and Revenue Growth : Explain your services and how they meet market demands, linking this to revenue growth strategies.
• Marketing and Client Acquisition : Detail strategies for attracting and retaining clients.
• Financial Projections : Provide a detailed financial outlook, including income, expenses, and profit margins.
• Funding Request : If seeking external financing, specify your needs, fund usage, and proposed terms.

This framework lays the groundwork for a detailed home care business plan, from market analysis to financial projections. For more insights, visit our blog on crafting your plan .

Navigating Compliance: Certifications, Licensing, and Regulations in Home Care

Starting a home care business entails a deep dive into the regulatory landscape, encompassing certifications, insurance, and standards required by various government levels. Compliance is crucial for legal operations, client safety, and maintaining credibility.

Guide to Compliance and Protection:

🌼 Licensing Essentials : Begin by securing the necessary licenses, which vary based on location and service type. A Home Health Agency License is often needed for medical services, while a Business License is fundamental for legal recognition. For specific licensing guidance, see our blog post: How to Get Licensed for a Home Care Franchise .

🌼 Federal Employer Identification Number (EIN) : Obtaining an EIN is essential for tax purposes and hiring employees.

🌼 Choosing the Right Insurance : Essential insurance coverages include Professional Liability Insurance for service-related claims, General Liability Insurance for broader business risks, and Cybersecurity Insurance against data breaches. The right insurance mix is key to thorough protection.

🌼 Deciding on a Business Structure : Choose a legal structure, like an LLC or corporation, to manage liabilities, taxes, and flexibility effectively. An LLC is often favored for its protective benefits and adaptability.

🌼 State Licensing Requirements : These vary significantly and may involve specific certifications and training. Understanding and complying with these standards is vital for legal and recognized service provision.

This streamlined approach to compliance aims to demystify the process, preparing you to deliver safe, reliable, and compliant home care services. Proper compliance establishes trust, safety for clients, and a solid foundation for your business in the home care industry.

Discover ideal locations for your home care venture across the U.S. by visiting our blog. Learn about the best states to launch your business and begin your successful journey today!

Resources and State-Specific Information

Access to accurate, state-specific regulatory information is crucial for compliance. Our state guides provide state-specific resources and insights into the regulatory landscapes across states, including licensing, compliance best practices, insurance needs, and connections with community organizations.

Personalizing Care: Tailoring Your Services to Seniors and Beyond

Selecting the right mix of services is key in the dynamic home care industry. Combining medical services from healthcare professionals, like certified nursing assistants and home health aides, with non-medical support from private caregivers allows you to address community needs and utilize your team’s strengths. This strategic approach differentiates your business and significantly impacts your clients, making your service a cornerstone of care for seniors and others needing assistance.

Understanding the Types of Home Care Services:

Home care is categorized into medical and non-medical services:

• Medical Home Health Care Services: Delivered by licensed professionals, these services include skilled nursing, physical therapy, wound care, and vital signs monitoring. They cater to clients needing medical attention at home, such as seniors or those recently discharged from hospitals, offering both general and specialized healthcare.
• Non-Medical Home Care Services: These focus on daily living assistance, such as bathing, dressing, meal preparation, and companionship, provided by professional caregivers. These services enhance individuals’ independence and safety at home, promoting a higher quality of life.

Distinguishing between medical and non-medical care is vital for serving the varied needs of your community, especially focusing on seniors.

Choosing Non-Medical vs. Medical Home Care:

Your decision to offer non-medical or medical home care should consider:

• Community Demographics : Assess the age distribution and health needs to identify service gaps, particularly for seniors.
• Competition : Review local providers to find unaddressed needs.
• Regulatory Considerations : Be aware of licensing, certification, and insurance requirements for medical and non-medical services.

This strategic analysis will help your business meet critical community needs, align with your vision and resources, and ensure all staff are comprehensively trained.

Explore the distinctions between Non-Medical and Medical Home Care Businesses on our blog to unlock your venture’s potential.

Assembling Your Dream Team: The Heart of Home Care

At the heart of exceptional home care lies a dedicated, skilled team encompassing healthcare professionals, certified nursing assistants, home health aides, and private caregivers. Enhancing their capabilities with training and technology, like electronic health records and telemedicine, can boost both service quality and efficiency.

Strategies for Assembling a Compassionate Team:

• Competitive Compensation : Offer fair wages and benefits to attract and keep the best talent.
• Professional Development : Support skill enhancement through training and certification.
• Culture of Kindness : Promote a workplace characterized by respect, empathy, and teamwork.

Focusing on service quality and team development, including hiring qualified medical professionals and offering comprehensive training for private caregivers, your business can become a trusted pillar of care and compassion in your community.

Franchises like Nurse Next Door equip Franchise Owners with thorough training and resources , ensuring standards of care are met and your team embodies the values of your service.

Discover comprehensive strategies for forming and nurturing a team aligned with your home care service’s principles in our guide: How to Find the Best Caregivers for Your Home Care Business .

Launching a home care business involves detailed financial planning, from accurately estimating startup costs to finding funding and predicting financial outcomes. This groundwork is crucial for navigating economic hurdles and avoiding common traps that threaten many home care startups. A well-devised strategy can unlock opportunities and steer your business toward success.

For comprehensive insights on financial planning and funding, see: How to Finance a Home Care Franchise .

Financial Planning Steps:

• Estimate Startup Costs : Understand the initial investment needed, which varies by agency type covering costs of licensing, leasing, equipment, initial payroll, and other startup costs .
• Open a Business Bank Account : Maintain a separate account for managing finances, tracking expenses, and simplifying tax processes.
• Forecast Financial Performance : Use market research and data to inform your financial projections and understand potential revenue and expenses.
• Develop a Financial Plan : Craft a plan that details revenue streams, expenditures, cash flow projections, and working capital maintenance strategies for startup and growth.
• Secure Funding : Explore financing options like loans, grants, venture capital, and franchise financing to support early operations and facilitate growth.

These financial planning steps are designed to guide you through the complexities of starting and running a successful home care business, from the initial phase of estimating start-up costs to the ongoing management of business operations and attracting clients.

Maximizing Revenue in Home Care: Diverse Strategies

Diversifying revenue streams is critical for the financial stability and growth of your home care agency. Expanding your client base and exploring new markets are key strategies.

Learn how to boost your home care business’s financial health at: Home Health Care Business Income Ideas .

Revenue Expansion Strategies:

• Broaden Service Offerings : Include a mix of medical and non-medical services to widen your market and revenue opportunities.
• Specialize in Niche Services : Cater to specific needs with services like dementia care or post-operative rehabilitation.
• Implement a Referral Program : Use incentives to encourage referrals from existing clients and healthcare professionals, boosting client acquisition.
• Utilize Digital Marketing : Increase online presence and attract clients through social media, SEO, and content marketing.

Adopting these financial and revenue expansion strategies provides a solid foundation for sustainable growth and stability in your home care business.

Launching a home care business transcends planning and market analysis—it demands the establishment of efficient operations and a solid policy framework to steer daily operations and uphold business ethics.

Key steps for your launch plan include:

• Develop a Comprehensive Marketing Plan : Employ digital marketing, community outreach, and healthcare partnerships to gain market traction.
• Set Up Operations : Implement software solutions for finance, billing, payroll, scheduling, and timekeeping to enhance efficiency and accuracy.
• Draft Formal Policies and Procedures : Establish guidelines covering client admissions, care plans, scheduling, employment, training, billing, and client rights to ensure service quality and compliance.
• Host a Launch Event : Present your services to the community, fostering potential client relationships and networking with healthcare professionals.
• Utilize Social Media : Produce compelling content across platforms to boost brand awareness and engage with the community.
• Offer Promotions : Attract initial clients with special offers to encourage referrals and grow your client base.
• Engage in Local PR : Increase your visibility through local media to build brand credibility.

Nurse Next Door guides you through the launching phase, from market entry to client engagement and establishing operational and procedural foundations, ensuring a successful start.

Establishing a strong brand and online presence is vital for industry leadership. Effective branding communicates your values and care excellence, while targeted marketing strategies enhance visibility and engagement.

• Craft a Unique Value Proposition (UVP) : Highlight what differentiates your services.
• Digital Marketing : Utilize SEO, content marketing, and social media to engage your audience.
• Community Engagement : Boost brand visibility and trust by participating in local events.
• Educational Content : Establish your business as a thought leader with valuable home care information.

Explore comprehensive marketing strategies in our guide: How to Market Your Home Care Business .

Expanding Your Reach: Growth Strategies for Home Care

For sustained growth of your home health care business, focus on broadening your services while maintaining quality:

• Client-Centric Care : Always prioritize personalized care plans and feedback mechanisms to ensure client satisfaction.
• Forge Strategic Partnerships : Collaborate with healthcare providers, personal care agencies, and rehab centers to diversify your services and referral sources.
• Continuous Improvement : Commit to regular staff training and adopting industry best practices to enhance service quality.
• Market Analysis : Stay ahead by analyzing market trends and adjusting your business strategies accordingly.
• Attend Industry Conferences : Stay updated with the latest trends, technologies, and regulations.
• Join Professional Networks : Connect with other home care providers to share insights and best practices.

Quality focus and adaptability are key to long-term success.

Consider joining the Nurse Next Door franchise for additional support, including networking, mentorship, and access to an online learning portal.

Embarking on a home care business journey involves challenges, yet each one opens doors to growth and innovation. Nurse Next Door’s franchise model offers a solid foundation to navigate these challenges, providing a comprehensive suite of tools and support for building a thriving home healthcare enterprise. Key advantages of partnering with us include:

🌼 Embracing the Happier Aging™ Philosophy : Beyond starting a business, it’s about committing to a mission that focuses on enhancing the joy and fulfillment of our clients’ lives , aligning with a purpose-driven venture for significant impact.

🌼 Attracting and Retaining Qualified Staff : We emphasize strategic hiring, competitive compensation, and in-depth training to ensure our care quality remains unparalleled.

🌼 Building a Client Base : Our established brand and marketing prowess streamline the process of client acquisition, leveraging effective strategies and community networking.

🌼 Managing Operational Costs: Our franchisees receive practical advice on managing expenses and fostering operational efficiency without compromising on service quality.

🌼 Comprehensive Support System : Enjoy the benefits of our proven business model, including market research, an industry-specific business plan template, and expert guidance on regulatory compliance, setting a solid foundation from the start.

🌼 Operational Excellence : With extensive training for owners and staff, ongoing support, proprietary technology, and access to our centralized call center, we ensure the delivery of exceptional care and service.

🌼 Marketing and Growth : Our well-known brand and targeted marketing strategies offer a significant edge in attracting clients and expanding your business potential.

Joining Nurse Next Door means integrating into a community that values quality, compassion, and the well-being of every individual we serve. Our comprehensive support covers operational efficiencies, marketing, and recruitment, positioning you for success and enabling you to make a positive community impact through the Happier Aging™ philosophy .

Testimonial from Franchise Owner Iris: “Nurse Next Door has provided us with the tools to build a successful business. The passion for starting a full home health care business for seniors has always been ours.”

Start Making Lives Better: Launch Your Home Care Business

Embarking on a home healthcare business journey involves strategic planning and overcoming industry hurdles. Nurse Next Door’s franchise model offers unique access to the home care sector, blending support with innovation for community impact.

We encourage exploring state-specific resources and our personalized support to navigate this rewarding venture confidently. Begin your impactful journey in the home care industry.

Connect with a Franchise Development Business Manager at Nurse Next Door to explore our support for your aspirations. Contact us today at 1-855-737-6803.

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HomeHealthcareBusinessPlan.com

A complete business plan for an in home care business.

Home Healthcare Business Plan

You are purchasing the Home Healthcare Agency Business Planning Package. It includes:

• Home Healthcare Agency Business Plan (Word) – Updated for 2021 (including Covid-19 economic issues)
• 3 Year Excel Model (Easy-to-Use Question and Answer model)
• Home Healthcare Agency Pitch Deck
• How to Start a Home Healthcare Agency Guide (with 425+ page funding sources directory)
• Home Healthcare Agency Marketing Plan
• Three SWOT Analysis Templates

Terms of Purchase and Use

You can also order this package via Amazon. Please note that if you place your order through Amazon, it will be sent to you via US Mail on a USB stick. If you would like an advance copy sent to you via email, please contact us through the Contact Us page. We will happily send you the files while the USB drive is in transit. The button to purchase from Amazon can be found on the right-hand side of this page.

If you order through our website, the download will be made available to you immediately once you place your order.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Home Health Care Services Business Plan

Start your own home health care services business plan

Wheatland Health Services

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

There is a significant need for quality home health care and social services within this region and we believe that by employing competent and well-educated staff and providing them with organized and responsive management, we can become the home health care/social service agency of choice in Southeastern Kansas.

Wheatland Health Services offers a unique combination of premier home health care and community-based social services to Southeastern Kansas.

The consumer base for Wheatland Health Services (Home Health Care Services) will be patients referred by physicians, health care facilities and other health care professionals. The majority of these patients will be covered by Medicare with a smaller portion being insured by Kansas Medicaid or other private insurance carriers.

Competition

The key factor considered by both consumers and referring professionals when purchasing home health care is trust in the professional reputation, reliability and quality of services provided by the home health Agency.

Wheatland Health Services strives to offer excellent and affordable home health care and community-based social services to individuals and families of Southeastern Kansas.

Expectations

We are projecting growth and total annual sales very conservatively, with high projected expenses. Our cost of sales is relatively low, as this is a service agency and the primary costs involved in providing the services are those related to payroll. The costs of sales reflects the cost of mileage reimbursement to employees, because the services we provide are home- and community-based and require travel to and from service locations.

Financial Highlights by Year

Financing needed.

We will use $70,000: $50,000 five year loan and $20,000 cash from Elizabeth Patzer

Problem & Solution

Problem worth solving, our solution.

It is our goal to employ competent, caring, and well-trained individuals who are responsive to the needs of our patients, their families, and the communities we serve. Each staff member will meet the State of Kansas educational and training requirements for the services they provide. We encourage and support continued education of each service provider. In turn, our agency will provide staff with competitive compensation, an inviting work environment, and knowledgeable, trustworthy management and direction.

Target Market

Market size & segments.

Market Segments 

The population base in Southeastern Kansas is aging, and more individuals are opting to stay in their own homes longer and return home following hospitalization, rather than proceeding to a nursing home. Our primary market segment includes those patients — typically in an older age bracket — who require health care services by home health nursing staff. These patients may also require other home health services, such as social work, in order to access needed community resources.

Our secondary market will be those individuals who have suffered a personal injury and require case management services to assist them in addressing medical, financial, and employment issues.

Target Market 

Because our agency specializes in home health care and community-based social services, we will focus on those market segments where we know our services are most needed. Focusing on those market segments that require only home-based services will greatly decrease overhead, since additional office space will not be required.

Current Alternatives

Pricing of home health services does not usually influence consumers’ choices, as most home health services are reimbursed by Medicare, Medicaid, and private insurance companies, and reimbursement rates are set by those entities. Pricing of personal injury case management services is a more important factor, as these services are paid for as negotiated on a case-by-case basis at an hourly rate. When pricing personal injury case management services, we will explain to the client that we estimate the total number of hours needed to complete services liberally, rather than bidding low and then exceeding the anticipated total bid price for services.

Consumers of both home health care services and personal injury case management services rarely compare service providers directly. Usually they follow word-of-mouth recommendations, especially when those recommendations come from their physicians.

Perhaps the most important element for assessing competition in the Home Health and Social Service fields is how to persuade other professionals to repeatedly refer their clients to our agency for services. As our agency demonstrates outstanding patient care, current and pertinent qualification of service providers, and professional organization and business management, we believe that we will be able to capture the majority of the home health care and personal injury case management market in our designated region.

Our Advantages

We start with a competitive edge:  There are currently only three home health care agencies serving southeastern Kansas; Kellene Walker, our Clinical Director, has been employed with one of them for three years and has learned many of the day-to-day administrative functions that make a home health care agency successful. Ms. Walker has built a reputation for outstanding customer service, and it is our belief that her reputation will help to build a strong client base even before our start-up date.

Wheatland Health Services will also stand out in integrating community-based social services, such as Personal Injury Case Management, with our more traditional home health care. This broader base will allow us to access additional clientele and payor bases, adding to our financial stability. This integration also leaves room in the long-term for the addition of other social services, such as Family Counseling, Psycho-Educational Services, and Mental Health Case Management.

Keys to Success

Our keys to success: 

• Professional quality of services offered
• Reliability — being available through on-call, and adequate staffing
• Effective collaboration with other community professionals (physicians, hospitals, and other organizations)

Marketing & Sales

Marketing plan.

Marketing our service-oriented business requires establishing a reputation for expertise and excellence. It starts with our known contacts who are in positions to recommend us and make referrals to us, and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields.

We will develop and maintain a database of our contacts in the field. Ms. Walker is already well-known to physicians, other nurses and hospital facilities in our market area, and will work to maintain those relationships throughout our start-up process. Ms. Patzer will make initial contacts in the community as she establishes the business entity and provider status with Medicare, Medicaid, private insurance companies and local attorneys. She will then join Ms. Walker in an effort to introduce Wheatland Health Services to area professionals who are potential referral sources. Our communications will be professional, as will our marketing tools such as brochures, business cards, and advertisements.

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In a service industry, growth can mean loss of quality control, which in turn leads to client dissatisfaction. The services we provide should always reflect the mission and oversight of management. We want our clients to know that the quality of service they receive will be excellent, regardless of the individual service provider performing the service.

We will therefore avoid the temptation to broaden the scope of our services too quickly. Rather, we will focus our immediate attentions on making the services we offer of the highest possible quality. Only when those services are well-established and grounded in excellence will we consider expanding our service base.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• 125 Home Health Care patients served by the end of first year.
• 12 Personal Injury Case Management Clients served by the end of first year.
• Respectable gross sales by the end of first year.
• 80% of Customer Satisfaction Surveys returned indicating satisfaction with services.
• # of facebook page views and website links 

Ownership & Structure

Wheatland Health Services is a limited liability company owned and operated by Elizabeth G. Patzer, MSW/MPA and Marlon B. Patzer, M.S./M.Ed.

Management Team

Wheatland Health Services’ initial team will consist of one Administrative Director, one Clinical Director, three employees and a contracted agency to fulfill the need for Physical Therapists,  Occupational Therapists, and Speech Therapists. Initially, both managers will also provide direct service. Elizabeth Patzer is a licensed social worker and will provide all social work services during the start-up stage of the business. She will also provide all administrative direction and will perform most of the administrative functions with assistance from an Administrative Assistant. Kellene Walker is a registered nurse and has experience as a Skilled Nurse and Director of Nursing for a Home Health Agency. She will also provide direct nursing services during the initial stages of the business, as well as supervising the nursing staff. As the need for service providers grows, both managers will assume primary roles in management and will delegate direct service to employees.

Wheatland Health Services has no current management or personnel gaps; our plan provides for hiring service providers only as growth demands. Job descriptions have been written for each position and we will develop an employee handbook prior to our Start Date. 

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

The General Assumptions table, below, shows our important (and conservative) annual assumptions concerning interest rates, tax rates, and personnel burden. In addition:

• We assume a strong economy, without major recession.
• We assume, of course, that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Startup Expenses: 

Attorney Fees – Setting Up Limited Liability Company $875

State of Kansas Home Health Agency License $100

Medisoft Billing Program plus Support $5,000

Professional Liability Insurance $3,000 (Assuming 25% down of $12,000.00)

Workman’s Comp Insurance Deposit $500

Premises and Content Insurance Deposit $300 (Assuming 25% down of $1,200.00)

Contract Retainer with PT/OT/ST $500

Office Upgrades (Carpet and Paint) $3,000

Deposit plus First $400

Phone Set Up (Excluding Phones) $250

Utilities Deposit $150

Post Office Box $26

OFFICE EQUIPMENT

2 Computers (Fully Loaded) $3,000

4-in-1 Printer/Fax/Copier/Scanner $750

QuickBooks Pro $300

Phones $200

OFFICE SUPPLIES

Stationary $200

Business Cards $150

Brochures $200

Other Misc. Office Supplies $450

NURSING SUPPLIES $2,500

TOTAL START-UP EXPENSES 21,901 

Sources of Funds

$20,000 investment from Elizabeth Patzer and a 5-year $50,000 loan, total of $70,000. 

Projected Profit & Loss`

Projected balance sheet, projected cash flow statement.

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