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How to Start a Home Healthcare Business

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Free Home Health Care Business Plan Template

April 16, 2024

10 Min Read

how to start a home healthcare business
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Writing a business plan?

Ever dream of a job where you make a real difference, have the freedom you crave, and earn good money? Starting a home care business could be your golden ticket!

The best part about the home health care industry is that there are quick startup options, so there’s no need to reinvent the wheel.

But why join the home care revolution? Because:

  • As our population ages and the demand for in-home care is growing, you can address a growing societal need with real impact.
  • Home care is often more affordable than traditional facilities.
  • Over 1.4 million jobs already exist, demonstrating stability.

So, if you’re ready to claim your piece of the pie, then this comprehensive guide will break down the journey in 8 simple steps, guiding you to launch your own successful home healthcare business. Let’s get started!

Why start a home healthcare business?

Starting a home care business isn’t just about helping others – it’s about helping yourself, too!

Here’s why it might be the perfect fit:

Demand will increase

Millions of older adults want to stay home, not in a hospital. In fact, by 2060, the number of senior citizens will increase to 94.7 million.

So, for that reason, families will be looking for someone to help their loved ones live happy, independent lives. You’d be their hero!


Be your own boss and set your own schedule. This opportunity offers the flexibility to create a work-life balance that suits you.  Plus, with services charging $30-$60 per hour, the income potential is significant.

More Than a Job, A Mission

But it’s not just money. Helping seniors stay home is incredibly rewarding.

You’re not just providing care but giving them the gift of independence, laughter, and familiar surroundings. It’s a special kind of magic.

Build Your Business, Strengthen Your Community

And the best part? As your business grows, you’ll create jobs in your community. More happy people, more opportunities – that’s a win-win for everyone!

You’ll be in the driver’s seat

Choose the services you want to offer and how hands-on you want to be.

Don’t want to provide care yourself? No problem! Hire a skilled registered manager and excellent care staff.

They’ll handle the day-to-day care while you focus on building your successful business.

1. Conduct market research

The need is HUGE! With millions of people already caring for senior citizens at home and 10,000 adults turning 65 daily, there’s a real opportunity to help.

It’s a growing industry, spending tons of money ($123 billion!), so there’s room for your business to thrive.

But before you jump, do some research!

Here are some tips:

Conduct Market Analysis

  • Ask around: Talk to potential clients, families, and professional caregivers to understand their needs.
  • Check online maps: See how many other home care businesses are in your area.
  • Specialize or go broad: Do they offer medical care, wound care, personal care, or all of them?

Gain Practical Insights

Have you ever wondered what a day in a caregiver’s life is like? Shadow one! This firsthand experience will help you:

  • Decide if this business is right for you.
  • Figure out what services to offer.
  • Empathize with your future employees and clients.

Talk to the pros

Connect with people who already run home care businesses. Ask about their experiences, challenges, and successes.

Remember, this is just a starting point. Do your research and tailor the services to your community’s specific needs.

2. Create a business plan

Having a solid business plan is like having a GPS for your company. Starting a home health care agency is even more important – whether you’re fine-tuning your idea or looking for extra support.

If you don’t know where to begin, a good home health care business plan template can give you a great head start!

Your business plan is the master layout of your business operations – how it’ll be built and managed and how you’ll make it successful.

But here’s the best part: a great business plan doesn’t just help you. It’s your secret weapon for getting investors or partners excited about joining your mission.

Right now, your focus should be on the heart of your agency – deciding exactly what kind of care you’ll offer and the specific services that make you unique.

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3. Prepare a budget and figure out financing

Let’s be honest, most new businesses don’t start making money right away. It can take a couple of years, so you must be smart about your money while building your own home care business.

That means budgeting for your business needs and your own life. Costs like office space, hiring great people, and getting the right equipment add up fast.

Depending on the kind of agency you want to build, here’s a rough idea of the startup costs:

Non-skilled Private Pay: Think around $40,000 to $80,000

Licensed Home Health (non-Medicare): Closer to $60,000 to $100,000

Medicare Certified: This can range from $150,000 to $350,000 (depending on your state)

Okay, so how do you make this happen? Here are a few ideas:

Your Savings: Tempting, but remember – life throws curveballs! It’s best not to risk going totally broke.

Friends & Family: Sometimes a great option, but it can get awkward if things don’t go perfectly.

Outside Funding

  • SBA Loans
  • Government Grants
  • Crowdfunding
Many home care healthcare businesses like the SBA 7(a) loan because of its flexibility in repayment options.

Before you start helping your first client, you’ve got to get the official side of your home care business sorted.

It may seem dry, but these steps ensure you run a strong, legal operation.

Step #1: Choose your business structure

Should you go solo as a sole proprietor? Partner up? Form an LLC? Each option has its own quirks, so take a little time to see what’s best for you.

Step #2: Get your EIN

This is basically your home health care agency identification number. You’ll need it for taxes, hiring people – all the official stuff. Luckily, the Internal Revenue Service (IRS) website makes getting one pretty simple.

Step #3: Register with your state

This mostly means claiming your unique business name and ensuring it’s all official locally. You can do this through your state’s website and even check if your dream website name is free!

Once you’re set, you can get your letterheads and business cards printed.

Step #4: Licenses & certifications

This is where it gets super specific to your location. Healthcare rules change from state to state, so it’s all about figuring out precisely what you need where you are.

Contact your state and local health departments; they’ll guide you through everything. Also, remember the 21st Century Cures Act – you might need a special system called EVV, depending on your services.

5. Determine your service offerings

It’s time to get into the nitty-gritty of how your home care agency will work! This is where you figure out the specific services you’ll shine at, how you’ll manage your excellent staff and the practical stuff like scheduling and payments.

To get those wheels turning, ask yourself:

  • What kind of care is your focus? Where will you specialize, and are there types of services you won’t offer?
  • How will you find and keep your dream team? What’s your plan for hiring professional caregivers, training them, and making them feel appreciated?
  • What are the basic ground rules for clients? Will there be a minimum number of hours needed each week?
  • What happens when schedules need to change? How flexible will you be when things don’t go exactly to plan?
  • How will you get new clients started? What will make them feel comfortable and informed?

Now for those less exciting but super-important policies. They protect you, your staff, and your clients! Think about stuff like:

  • What’s the plan if someone’s payment is late?
  • How will you find and train those perfect new caregivers?
  • Do you provide equipment, or do clients need their own?
  • How far are you willing to travel to see clients? Will you go further for an extra fee?
  • What do clients need to understand and agree to upfront?

6. Get business insurance

Working with people is rewarding, but things can get messy (accidents, equipment breaks, even lawsuits!). That’s why having the right insurance for your home health care agency is like having a superpower – it protects your business from unexpected costs that could knock you down.

But how do you know which insurance to choose? Here are a few options:

Professional Liability Insurance: Covers you if someone claims you made a mistake that caused harm.

General Liability: Got a client who trips on your shoelace? This covers injuries and property damage your business might cause (accidents happen!).

Cybersecurity: Protects you if hackers steal client data. Imagine a shield against online bad guys.

In addition, it’s important to consider insurance that’s often required by law, like:

  • Unemployment insurance
  • Workers’ Compensation
  • Disability Insurance.

These policies can protect your employees if they get hurt on the job.

Choosing the right insurance is crucial. Talk to an expert to find the perfect shield for your business!

7. Hire the right employees

As a business owner, your staff is your greatest asset. To succeed, you need skilled medical professionals who provide excellent medical care and build genuine client relationships.

So, Who are the key players?

Clinical Supervisor

This position is usually filled by a doctor or experienced nurse and is required by most states and Medicare. They act as a resource and guide for your front-line care team.

Some states also require a certified administrator, which can be combined with the supervisor role if they have the qualifications.

Front-line Caregivers

Front-line caregivers often include certified nursing assistants (CNAs) and home health aides (HHAs). You can either hire medical professionals directly or partner with outside agencies for specialized services. Consider a mix of core staff and contracted specialists as needed.

No matter what, make those background checks a priority. You’re ultimately responsible for your team’s actions; hiring someone with a malpractice history could lead to serious legal issues.

8. Outline a marketing plan

Okay, you’ve built an excellent business plan, jumped through all the licensing hoops, and have a fantastic team. Now, it’s the fascinating part – finding those first clients!

This is where things get a bit more familiar – you need solid marketing and a lot of determination to make it happen.

So, how do you make this happen?

Here are some of the best ways to get your first clients:

A Simple Website: Your patients might not be browsing the web, but their kids and grandkids sure are! A website is how they’ll find you and check you out.

Get Out There & Network: Connect with doctors, senior centers, hospitals – anyone who might have folks needing your help. Building those relationships early is key.

Find your niche: What Makes You Special? Do you specialize in certain conditions or care? Shout it from the rooftops! This sets you apart from the competition.

Join the Community: Groups like your local Chamber of Commerce or national organizations for home care are great ways to connect with potential clients and other helpful businesses.

Hit those Trade Shows: These events are perfect for networking with doctors, nurses, and folks who might know someone who could use your help.


Running a home health care business is challenging, but the rewards are incredible. You’re not just making a living; you’re helping people live better lives. Think of the connections you’ll make with your clients and their families! And as you provide excellent care, those good reviews and referrals will naturally lead to more success.

You’ve got the knowledge – now it’s time to take action! Start building that business plan, and prepare to provide the best home health care services in your area.

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About the Author


Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more


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