example business plan for a home healthcare 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 care 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 in-home 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, home health care 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 market 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

• 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 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.

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.

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 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

Home Care Business Plan Template & PDF Example

• July 24, 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

Fully editable 30+ slides Powerpoint presentation business plan template.

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.

Home Care Business Plan Executive Summary Example

Business Overview

The  business overview  should succinctly define the unique aspects of your home care service, including specialized care offerings and the qualifications of your care team. Emphasizing what sets your business apart in the senior care market is key for drawing interest and investment.

Example: “Compassionate Home Care,” covering a 30-mile radius in Springfield, offers personalized services such as medication management, specialized dementia care, and emergency response. The initial team of 40 skilled caregivers, including CNAs, LPNs, and RNs, are all trained in geriatric care, ensuring a high standard of service for seniors wishing to age comfortably in their homes.

Market Overview

This section should analyze the home care market’s size, growth trends, and  competitive landscape . It positions your business within the industry and highlights its potential to meet the needs of an aging population.

Example: Compassionate Home Care enters a market valued at $102 billion, growing at a 7.1% CAGR. Despite competition from four other local providers, the clinic stands out with its comprehensive, technology-integrated, and holistic approach to home care, meeting the rising preference for aging in place.

Management Team

Detailing the management team’s background and roles is vital. This part of the summary should emphasize their experience in healthcare and senior care, underscoring their ability to lead the business successfully.

Example: The CEO, with extensive experience in healthcare management, leads the business strategy and operations, while the COO, a registered nurse with specialized training in geriatric and palliative care, heads the care services. Their combined expertise ensures a strong foundation for the business and high-quality care for clients.

Financial Plan

Clearly outlining financial goals and projections is key. This section should include revenue targets and profit margins, offering insight into the business’s financial health and growth potential.

Example: Compassionate Home Care aims to achieve $3.4 million in annual revenue with a 15% profit margin by 2028. Supported by a robust business model and strategic marketing efforts, the company is positioned for significant growth in the expanding senior home care market.

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.

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.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your home care business in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your home care’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Competitors in the Home Care Sector

Begin by mapping out local home care service providers, including agencies specializing in elderly care, disability assistance, and in-home nursing care. Don’t limit your assessment to direct competitors alone; consider indirect competitors like assisted living facilities or telehealth services that may offer alternative solutions to potential clients.

Leverage online resources such as industry directories, healthcare platforms, and review sites like Healthgrades or Care.com to identify competitors and assess their service offerings, customer reviews, and ratings. For instance, positive feedback highlighting the compassionate care at “Caring Hands Home Health” signifies a strength you might want to factor into your analysis.

Home Care Competitors’ Strategies

Delve into multiple facets when analyzing competitors in the homecare industry:

• Service Offerings:  Scrutinize the spectrum of services provided by competitors. If “Nurturing Hearts Senior Care” is gaining traction by offering specialized memory care services for seniors with dementia, this reflects an emerging trend or niche within the market.
• Care Approaches:  Consider different caregiving approaches. A home care agency like “Comfort at Home Nursing” that emphasizes holistic care might cater to a different clientele compared to “Rapid Recovery Home Services,” known for its post-surgery rehabilitation programs.
• Pricing and Payment Models:  Compare the pricing structures of competitors. Are they positioning themselves as budget-friendly, like “Economical Care Services,” or do they offer premium services like “Elite Home Health” with concierge-level care?
• Marketing Channels :  Examine competitors’  marketing strategies . Are they leveraging digital platforms effectively, emphasizing community engagement, or relying on partnerships with healthcare providers to expand their reach?
• Client Experience:  Evaluate the overall client experience. For instance, “Warm Embrace Home Care” might be recognized for its compassionate caregivers and personalized attention, fostering a positive client experience.
• Operational Innovations:  Look for technological advancements or operational efficiencies adopted by competitors, such as “TechCare Solutions” utilizing telemedicine or streamlined scheduling systems for enhanced service delivery.

What’s Your Home Care Business’s Value Proposition

Define your home care agency’s  unique value proposition . Perhaps your agency specializes in personalized Alzheimer’s care or provides bilingual caregivers, catering to a specific demographic overlooked by competitors.

Identify untapped market needs through client feedback and industry trends. For instance, the increasing demand for tech-integrated remote monitoring might present an opportunity if competitors haven’t embraced such solutions.

Tailor your services to suit the demographics and preferences of your target area. A home care agency in an urban setting might emphasize on-demand services and tech-enabled communication, while one in a suburban locale may focus on building community connections and personalized care plans.

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.

Marketing Channels

Deploying various marketing channels is pivotal to reaching and engaging with potential clients effectively.

Digital Marketing

• Website and SEO:  Develop a user-friendly website with informative content about services offered, testimonials, and a blog providing caregiving tips. Optimize it for local SEO to enhance visibility in online searches.
• Social Media:  Utilize platforms like Facebook and LinkedIn to share engaging content, client testimonials, and educational resources on home care. Use Instagram to showcase the compassionate side of your caregivers and their impact.

Local Advertising

• Community Engagement : Engage with local communities through sponsorships of senior events, health fairs, or support groups. Host informational sessions or workshops on home care topics at community centers or retirement communities.

Partnerships and Referral Programs

• Healthcare Partnerships:  Forge alliances with hospitals, rehabilitation centers, or medical professionals for referrals. Establish yourself as a trusted partner in providing post-hospitalization or long-term care.
• Referral Programs:  Create incentives for existing clients or healthcare providers who refer new clients to your home care services.

Promotional Activities

• Free Consultations : Offer complimentary consultations to potential clients, allowing them to experience the quality of your services firsthand.
• Special Offers:  Introduce introductory packages or discounts for new clients or seasonal promotions like ‘Holiday Care Packages’ to attract new business.

Sales Channels

Efficient  sales channels  are imperative for maximizing revenue while ensuring customer satisfaction in the home care sector.

Consultative Selling

• Tailored Care Plans:  Customize care plans based on the client’s needs and preferences during initial consultations. Emphasize the personalization and flexibility of your services.
• Transparent Pricing : Clearly outline pricing structures for different care plans, ensuring transparency and clarity for potential clients.

Client Retention Strategies

• Quality Service : Ensuring consistent and high-quality service delivery through ongoing caregiver training, quality checks, and client feedback mechanisms to guarantee satisfaction.
• Feedback Mechanisms:  Use membership programs as an avenue to gather feedback from clients. Offer surveys or feedback forms to understand their preferences better and continuously improve services.
• Continued Engagement:  Maintaining regular communication through newsletters, informative resources, health updates, and follow-up calls or visits to strengthen relationships and foster trust and loyalty.

Membership and Loyalty Programs

Incentivizing repeat business through membership and loyalty programs is a powerful strategy to foster long-term client relationships and encourage ongoing engagement.

Membership Options

• Exclusive Service Bundles:  Offer membership programs providing clients with a set number of hours of care or specific services at a discounted rate. For instance, a monthly membership could include a predetermined number of hours for companion care, personal care, or specialized medical assistance.
• Customizable Plans:  Create tiered membership levels with varying benefits to accommodate different client needs. These could range from basic caregiving services to more comprehensive care plans, providing flexibility and value to clients.

Loyalty Rewards

• Point-Based System:  Develop a digital loyalty program where clients earn points for every dollar spent on home care services. These points can be accumulated and redeemed for discounts on future services or additional perks, such as priority scheduling or complimentary consultations.
• Referral Incentives:  Reward clients for referrals by offering bonus points or discounts when they refer friends or family members to the home care services. This not only encourages loyalty but also helps expand the client base through word-of-mouth referrals.

Exclusive Benefits

• Member-Only Offers:  Provide exclusive offers or special benefits to members, such as priority access to caregivers, discounted rates on additional services, or access to educational resources and workshops related to caregiving.
• Anniversary Rewards:  Celebrate client  milestones , such as membership anniversaries, with bonus points, complimentary service upgrades, or personalized gifts to showcase appreciation and reinforce client loyalty.

Strategy Timeline

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.

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.

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

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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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Other Helpful Articles

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

Home Health Care Business Plan Template [2024]

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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Home Healthcare Agency Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Healthcare and Medical » Home Healthcare for Seniors

Are you about starting a home healthcare agency ? If YES, here is a complete sample home healthcare agency business plan template & feasibility report you can use for FREE .

Starting a home healthcare business is one of those businesses that require you to first look at the existing laws in the country or State you reside, before going all out to start the business.

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This is so because there is hardly any country that does not pay serious attention on their health sector. The health industry is usually highly regulated so as to guide against the infiltration of quacks.

If you have interest in starting your own home healthcare business, then you would need to pay a visit to the health and medical regulatory body in your country ( the department of healthcare services ) to get all the needed information that is required before you can legally start your own home healthcare business in your city. Here is a sample home healthcare business that is capable of leading you all the way.

A Sample Home Healthcare Agency Business Plan Template

1. industry overview.

No doubt, the healthcare cum medical industry is perhaps one of the fastest growing and largest industries in the world; this is so because the wealth of any nation depends on the health of the nation. Obviously there is hardly any country where the healthcare industry is not handled with all seriousness.

As a matter of fact, the healthcare industry is known to gulp well over 10 percent of gross domestic product (GDP) of most developed countries.

Basically, a healthcare provider is a health professional such as nurse or doctor et al or an establishment such as a hospital or a medical clinic or a healthcare center / facility that provides preventive, curative, promotional, rehabilitative or palliative healthcare / medical services in a systematic way to individuals, families or communities.

While home healthcare services typically refers to a nursing visit or physician visit to a sick person at home for the purpose of assisting them with daily living cum therapy as regards their health or to provide treatment as required. These services are provided by certified home healthcare agencies.

There is indeed a very large market for home healthcare service providers in the united states and of course in most parts of the world.

For instance, the World Health Organization (W.H.O) estimated that there are about 9.2 million physicians, 19.4 million nurses and midwives, 1.9 million dentists and other dentistry personnel, 2.6 million pharmacists and other pharmaceutical personnel, and over 1.3 million community health workers worldwide. This goes to show that the healthcare industry is indeed one of the largest segments of the workforce.

Statistics has it that in 2011, healthcare costs paid to hospitals, physicians, nursing homes, diagnostic laboratories, pharmacies, medical device manufacturers and other players in the healthcare system business value chain, consumed an estimated value of 17.9 percent of the Gross Domestic Product (GDP) of the United States.

This indeed is the largest of any country in the world. As a matter of fact, experts projected that the healthcare share of the GDP of the United States will continue to grow, reaching 19.6 percent of GDP by 2016.

Those who need the services of home healthcare services providers (nurse’s aides, personal assistance services, mental health counselors, chiropractors, home care agencies, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers or home caregivers) are not restricted to the old and the elderly but also young adults and all those who can afford the services.

Generally, patients usually prefer that their physician or nurse or healthcare giver take care of them in the comfort of their homes when they can afford it especially in cases such a psychiatric cases, spine case and permanent or temporary disability et al.

Over and above, the delivery of healthcare services at all level of the business value chain of the healthcare sector is the most visible part of any country’s healthcare system. When it comes to paying home healthcare service providers, the model that is adopted by the health sector usually hold sway.

For instance, in the United States of America, healthcare service providers are either paid directly by the patient or the insurance company that covers the patient takes responsibility of the payment.

2. Executive Summary

Health Is Wealth™ Home Healthcare Services is a standard and certified healthcare service provider that will be located in will be based in Miami Beach, Florida –United States of America and we will cover other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We chose to operate in these cities because we know that our services will be in high demand due to the growing numbers of the aging population in these areas. Health Is Wealth™ Home Healthcare Services offer healthcare services such as preventive, curative, promotional, rehabilitative or palliative healthcare / medical services in a systematic way to individuals, families or communities.

We are well trained and equipped to service the market segments that require only home-based services. We are in the home healthcare services business to deliver excellent healthcare services to all those who will patronize our services.

We will also ensure that in the line of carrying out our duty, we comply with the laws and health regulations in Florida and The United States of America. Our employees are well trained and qualified to handle the wide range of home healthcare services.

Health Is Wealth™ Home Healthcare Services will operate a 24 hours 7 days a week healthcare service; our office facility will be opened round the clock to attend to clients. We have a standard medical call center that is manned by trained health workers.

Our workforce is going to be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers.

Health Is Wealth™ Home Healthcare Services will ensure that all our patients cum customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows. Health Is Wealth™ Home Healthcare Services is a family business that is owned and managed by Dr. Marvin Clarkson and his wife Mercy Clarkson (Nurse).

Dr. Marvin Clarkson is going to be the Chief Executive Officer of the business; He is a qualified and well trained Medical Doctor with well over 15 years of experience working as a medical doctor and medical researcher with the United States’ government.

He will be ably supported by his wife Mercy Clarkson who has grown in her career to become one of the most respected senior nurses in Miami, Florida.

3. Our Products and Services

Health Is Wealth™ Home Healthcare Services is in the business of ensuring that our patient / clients are well treated and taken care of and our services will be carried out by highly trained:

Professional physicians, nurses, nurse’s aides, mental health counselors, chiropractors, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers and home caregivers who know what it takes to give our highly esteemed customers value for their money.

These are the home healthcare services that Health Is Wealth™ Home Healthcare Services will be offering;

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

4. Our Mission and Vision Statement

• Our vision is to become the number one choice when it comes to home healthcare service delivery in the whole of Florida and also to be amongst the top 20home healthcare service provider in the United States of America within the next 10 years.
• Health Is Wealth™ Home Healthcare Services is in business is to establish a first class home healthcare service company that will take care of both highly placed clients and lowly placed clients as long as they can afford our services.
• We want to become one of the leaders in the home healthcare services industry in Florida, and in The United States of America.

Our Business Structure

Health Is Wealth™ Home Healthcare Services is a business that will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals (physicians, nurses, nurse’s aides, mental health counselors, chiropractors, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers and home caregivers) to man various job positions in our organization.

We are quite aware of the rules and regulations governing the healthcare industry which is why we decided to recruit only well experienced and qualified employees as foundational staff of the organization. We hope to leverage on their expertise to build our business brand to be well accepted in Florida and the whole of the United States.

When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. These are the positions that will be available at Health Is Wealth™ Home Healthcare Services;

• Chief Medical Director/Chief Executive Officer

Physicians/Chiropractors/Medication Management Counselors/Physical Therapists

• Nurses/Nurse’s Aides/Mental Health counselors
• Information Technologist (Contract)
• Home Health Caregivers/Home Caregivers/County Aging Workers/Rehabilitation Counselors
• Sales Agent
• Cashier (Counter Agent).

5. Job Roles and Responsibilities

Chief Medical Director/Chief Executive Officer:

• Responsible for providing direction for the business
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Attend to high profile clients and severe medical cases
• Responsible for fixing prices and signing business deals
• Responsible for recruitment
• Responsible for payment of salaries
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for providing professional medical services to our patients
• Responsible for offering occupational, physical, and speech therapy
• Responsible for handling medical emergencies

Pharmacist:

• Responsible for managing the daily activities in the company (dispensary store)
• providing advice about health issues, symptoms and medications in response to customer enquiries
• Responsible for recruiting, training and managing staff
• Responsible for processing prescriptions and dispensing medication
• Responsible for ordering, selling and controlling medicines and other stock
• Responsible for meeting medical representatives
• Responsible for managing the organizations’ budgets
• Responsible for keeping statistical and financial records
• Responsible for preparing publicity materials and displays
• Handle marketing services
• Interfaces with third – party providers (vendors)
• Handle any other duty as assigned by the CEO

Nurses/Nurse’s Aides/Mental Health Counselors

• Responsible for managing our patients in their various houses
• Handles personal injury case management
• Responsible for offering home medication management services

Sales Agents

• Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information as it relates to those who need our services
• Source for clients for the company
• Responsible for promoting the company’s image
• Responsible for creating marketing and sales strategies, etc.
• Represents the organization in some strategic business meetings
• Handle any other duty as assigned by the floor manager (Pharmacist)

Information Technologist

• Manage the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manage logistics and supply chain software , Web servers, e-commerce software and POS (point of sale) systems
• Manage the organization’s CRM software application
• Handles any other technological and IT related duties.

Cashier (Counter Agent):

• Receives payments on behalf of the organization
• Issues receipt to customers
• Prepare financial report at the end of every working week
• Handles financial transaction on behalf of the company
• Interfaces with our bankers
• Responsible for payment of tax, levies and utility bills
• Handles any other duty as assigned by the office
• Responsible for cleaning the store facility at all times
• Ensure that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the office facility
• Handle any other duty as assigned by the office manager

6. SWOT Analysis

Health Is Wealth™ Home Healthcare Services is set to become one of the leading home healthcare service providers in Florida which is why we are willing to take our time to cross every ‘Ts’ and dot every ‘Is’ as it relates to our business.

We want our home healthcare services company to be the number one choice of all residence of Miami and other cities in Florida. We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up the business.

Even though our Chief Medical Director (owner) has a robust experience in health management services, public health and medical research, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the healthcare industry.

This is the summary of the SWOT analysis that was conducted for Health Is Wealth™ Home Healthcare Services;

Our strength lies in the fact that we have a team of well qualified professionals manning various job positions in our organization.

As a matter of fact, they are some of the best hands in the whole of Miami Florida. Our location, the Business model we will be operating on, opening 24 hours daily and 7 days in a week, multiple payment options, well equipped medical call center and our excellent customer service culture will definitely count as a strong strength for us.

Our perceived weakness lies in the point that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business and also the finance needed for the acquiring helicopter to facilitate rapid response in cases of medical emergencies.

• Opportunities:

The opportunities that are available to home healthcare services providers are unlimited considering the fact that we have growing aging population in the United States and we are going to position our business to make the best out of the opportunities that will be available to us in Florida.

Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new and bigger/well established home healthcare brand in same location where our outlet is located.

7. MARKET ANALYSIS

• Market Trends

The health industry is indeed a thriving and dynamic industry; with the aid of technology, it is becoming easier to treat, manage and cure some ailments that before now are not easy to handle. No doubt there are many ways of providing healthcare services in this changing era since the place of delivery may be in the patient home, the community, the workplace, or in health facilities.

Before now is the practice for home healthcare service providers to restrict their services only to face-to-face delivery; a practice where a home healthcare provider and patient see each other physically most especially in the home of the patient.

But in recent time, the trend has changed especially with the advent of improvised/modern telecommunications technology.

It is now easier for home healthcare service providers to leverage on technology to take care of their patients/clients. The achieve this by communicating with their patient over the phone, video conferencing, the internet, email, text messages, and all other medium through which non-face-to-face communication can be achieved.

No doubt the home healthcare industry will continue to grow and become more profitable because the aging baby-boomer generation in United States is expected to drive increasing demand for this specialized service.

8. Our Target Market

Health Is Wealth™ Home Healthcare Services is in business to service a wide range of customers in Miami Beach, Florida – United States of America and other cities such as Green – Acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.

We will ensure that we target but self – pay customers (who do not have health insurance cover), and those who have health insurance cover.

Generally, those who need home healthcare services ranges from those with the elderly people, to those who are bedridden to those who have mental/psychiatric challenges and any other ailment that the physician deems that the use of therapy, regular medical counseling and health management .

The fact that we are going to open our doors to a wide range of customers does not in any way stop us from abiding by the rules and regulations governing the home healthcare industry in the United States. Our staff is well – trained to effectively service our customers and give them value for their monies. Our customers can be categorized into the following;

• Elderly people
• Expectant Mothers
• Injured Sports Men and Women
• Disable/Physically Challenged People
• People why mental/psychiatric challenges
• The aged who might suffer from severe joint pains and every other age categories who falls under the conditions listed by the physician.

Our competitive advantage

Aside from the competitions that exist amongst various home healthcare service providers, they also compete against other healthcare services providers such as hospitals, health centers and community clinics et al. To be highly competitive in the home healthcare industry means that you should be able to deliver consistent quality patient service and should be able to meet the expectations of the physicians that referred patients to you.

Health Is Wealth™ Home Healthcare Services is coming into the market well prepared to favorably compete in the industry. Our office facility is well positioned (centrally positioned) and visible, we have enough parking space with good security.

Our staff is well groomed in all aspect of home healthcare service delivery and all our employees are trained to provide customized customer service to all our clients. our services will be carried out by highly trained professional physicians, nurses, nurse’s aides, mental health counselors, chiropractors, medication management counselors, physical therapists, county aging workers, and rehabilitation counselors, home health caregivers and home caregivers who know what it takes to give our highly esteemed customers value for their money.

We are going to be one of the few home healthcare service providers in the whole of Florida that will run a standard medical call center for 24 hours a day and 7 days a week. We have enough trained health workers that are ready to run a shift system.

Health Is Wealth™ Home Healthcare Services we will ensure that we offer a wide range of home healthcare services such as Skilled Nursing, Nursing Aide, Social Work, Occupational, Physical, and Speech Therapy, Personal Injury Case Management, Home Medication Management, and Personal Assistance Services. We will also ensuring that all our patient/clients are well treated and taken care of.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Health Is Wealth™ Home Healthcare Services will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the sources we intend exploring to generate income for Health Is Wealth™ Home Healthcare Services;

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

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies, market survey and also some of the assumptions readily available on the field. Below are the sales projections that we were able to come up with for the first three years of operations;

• First Year-: $100,000 ( From Self – Pay Clients / Patients ): $250,000 ( From Health Insurance Companies )
• Second Year-: $250,000 ( From Self – Pay Clients / Patients ): $500,000 ( From Health Insurance Companies )
• Third Year-: $500,000 ( From Self – Pay Clients / Patients ): $1,500,000 ( From Health Insurance Companies )

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

The marketing and sales strategy of Health Is Wealth™ Home Healthcare Services Store will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer top notch all – round home healthcare services at affordable prices compare to what is obtainable in Florida.

All our employees will be well trained and equipped to provide excellent and knowledgeable home healthcare services and customer service.

We know that if we are consistent with offering high quality home healthcare service delivery and excellent customer service, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.

Before choosing a location for our home healthcare services, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Miami Beach, Florida – United States of America and other cities such as Green – acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al where our services will be available.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the home healthcare industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Florida.

In summary, Health Is Wealth™ Home Healthcare Services will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters to residence, business owners and corporate organizations
• Advertise our business in community based newspapers, local TV and local radio stations
• List our business on yellow pages ads (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing
• Leverage on word of mouth marketing (referrals)
• Enter into business partnership with hospitals, government agencies and health insurance companies.
• Attend healthcare related exhibitions/expos.

11. Publicity and Advertising Strategy

We in the home healthcare services business -to become one of the market leaders and also to maximize profits hence we are going to explore all available conventional and non – conventional means to promote our home healthcare services business.

Health Is Wealth™ Home Healthcare Services has a long term plan of offering home healthcare services in various locations all around Florida which is why we will deliberately build our brand to be well accepted in Miami Beach before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise Health Is Wealth™ Home Healthcare Services;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community health programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
• Install our Bill Boards on strategic locations all around Miami Beach Florida.
• Engage in road show from time to time
• Distribute our fliers and handbills in target areas
• Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Health Is Wealth™ Home Healthcare Services will work towards ensuring that all our services are offered at highly competitive prices compare to what is obtainable in The United States of America.

On the average, home healthcare service providers usually leverage on the fact that a good number of their clients do not pay the service charge from their pockets; private insurance companies, Medicare and Medicaid are responsible for the payment. In view of that, it is easier for home healthcare service providers to bill their clients based on their discretion.

However, in some cases home healthcare service providers also adopt the hourly billing cum per visit billing method. For example, it is easier and preferable for home healthcare services providers to bill personal injury case management services by the hour as against a fixed price.

• Payment Options

At Health Is Wealth™ Home Healthcare Services, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Check (only from loyal customers)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

If you are looking towards starting a home healthcare services company, then you should be ready to go all out to ensure that you raise enough capital to cover some of the basic expenditure that you are going to incur. The truth is that starting this type of business does not come cheap.

You would need money to secure a standard office facility, you could need money to acquire medical equipment and supply and you would need money to pay your workforce and pay bills for a while until the revenue you generate from the business becomes enough to pay them. Besides it is expensive to acquire a standard well – equipped ambulance.

Detailed Cost Analysis for Starting a Home Health Care Service Business

The items listed below are the basics that we would need when starting our home healthcare services business in the United States, although costs might vary slightly;

• The Total Fee for Registering the Business in Maryland – $750.
• Legal expenses for obtaining licenses and permits – $1,500.
• Marketing promotion expenses for the grand opening of People’s Choice Retail Store in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Consultant – $2,500.
• Cost for Computer Software (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $3,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for office remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (stocking with a wide range of products) – $150,000
• Storage hardware (bins, rack, shelves,) – $3,720
• Cost for Nurse and Drugs Supplies (Injections, Bandages, Scissors, et al)- $3,000
• Cost for medical equipment – $50,750
• Cost of purchase of ambulance and other vehicles : $100,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al): $4,000.
• The cost of Launching a Website: $700
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our home healthcare services company in Miami Beach – Florida. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding/Startup Capital for Health Is Wealth™ Home Healthcare Services

Health Is Wealth™ Home Healthcare Services is a private business that is solely owned and financed by Dr. Marvin Clarkson and his wife Mercy Clarkson (Nurse). We do not intend to welcome any external business partner which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas Health Is Wealth™ Home Healthcare Services intends to generate our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 ( Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $550,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure . If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Health Is Wealth™ Home Healthcare Services is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our home healthcare services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Health Is Wealth™ Home Healthcare Services will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of Medical Equipment and Ambulances et al: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our pharmacy store: Completed
• Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress

Non-Medical Home care Business Plan Guide + Example

July 6, 2023

Adam Hoeksema

The in-home healthcare industry has been experiencing remarkable growth over the past few years, propelled by an aging population, increased life expectancy, and a growing preference for care within the comfort of one's own home. The Global In-Home Health Care market size was valued at around USD 305.9 billion in 2021 and is expected to reach approximately USD 629.3 billion by 2028, according to data from Fortune Business Insights. Key driving factors include the prevalence of chronic diseases, increased need for cost-effective healthcare delivery systems, technological advancements, and government initiatives promoting home healthcare. Moreover, the recent COVID-19 pandemic has put a spotlight on the importance and feasibility of home healthcare, further catalyzing its growth. The industry's trajectory suggests a promising future for businesses aiming to provide high-quality, personalized care services within a patient's home.

Read more: 9 Home Healthcare Industry Financial Stats

Based on the industry growth, there is no surprise that many are starting new businesses or considering starting a new home healthcare business.  

There are two basic types of businesses that you could start:

• In Home Healthcare Business
• In Home Non-Medical Care Business

In this blog post I am going to guide you through the process of creating a business plan for a non medical home care business.  You can also download our free non-medical home care business plan template and start creating your custom plan as you follow along.  I plan to cover the following:

• Why Write a Business Plan for a Non-Medical Home Care Business?

What Should be Included in a Non-Medical Home Care Business Plan?

• Non-Medical Home Care Business Plan Outline

How to Analyze the Market Demand for a Non-Medical Home Care Business?

How to find and retain employees for a non-medical home care business, how to find customers for a non-medical home care business.

• How Much Working Capital is Needed for a Non-Medical Home Care Business?
• How to create financial projections for your non-medical home care business
• Non-Medical Home Care Example Business Plan

Non-Medical Home Care Business Plan FAQs

With that as the guide, let’s dive in! 

Why Write a Business Plan for a Non-Medical Home Care Business? 

I could say something like “if you fail to plan you plan to fail” or give you a long list of reasons why the business planning exercise could be beneficial for you, but at the end of the day, most people write a business plan because the people with the money ask for it.  Your potential investors or lenders probably are asking for your business plan, so you just have to roll up your sleeves and get it done. 

A non-medical home care business plan should include a Company Description, Market Analysis, Service Offerings, Marketing and Sales Strategy and Financial Projections.  Our business plan template has the following outline. 

Non-Medical Home Business Plan Outline

I. executive summary.

II. Business Concept

III. Market Analysis

IV. Competition Analysis

V. Marketing Strategy

VI. Menu and Kitchen Operations

VII. Service and Hospitality

VIII. Financial Plan

• Startup Costs:

Projected Financial Summary:

Annual sales, gross profit and net profit:, key financial ratios:, income statement:, balance sheet:, cash flow statement:.

IX. Organizational Structure

X. Conclusion

In order to analyze the market demand for a non-medical home care business, you first need to determine what services you might provide.  

Non-Medical Home Care Services

Non-medical home care services focus on helping individuals with their daily activities and needs, improving their quality of life without necessarily providing healthcare-specific treatments. Here are some examples:

Personal Care: This includes assistance with activities of daily living (ADLs) such as bathing, dressing, grooming, toileting, and feeding.

Companionship: This involves providing social interaction to prevent loneliness and depression. Companions may engage the individual in conversations, read books, play games, or accompany them to social events.

Meal Preparation: Some non-medical care services involve preparing meals for individuals who may have difficulty cooking for themselves. They may also assist with grocery shopping.

Light Housekeeping: This can include help with tasks like doing laundry, dishes, taking out the trash, and general tidying up around the home.

Transportation Services: Non-medical home care providers can offer non-emergency medical transportation to and from appointments, social engagements, shopping trips, or other errands.

Medication Reminders: While non-medical home care providers do not administer medication, they can remind individuals to take their medication at the appropriate times to ensure adherence to their regimen.

Respite Care: These services provide temporary relief to primary caregivers, allowing them time off for rest, personal errands, or vacations.

Mobility Assistance: Helping individuals move around, whether it's transferring from the bed to a chair or assisting with ambulation around the house or outdoors.

Once you decide what services you might want to provide, you can use Google Keyword Planner Tool to search for keyword phrases related to those services in your area and get an estimate of the number of people searching for those services each month.  This can really help analyze which services might be the most popular.  For example, I did a search for home care in Chicago and found that there are roughly 320 monthly searches for that keyword phrase.  There are roughly 90 monthly search for non-emergency medical transportation in Chicago and only 10 searches per month for companionship services in Chicago.   

This should help you get a feel for the most in demand services in your area. 

One of the biggest challenges for most non-medical home care businesses is finding and retaining employees.  You will likely need some unique plans to recruit and retain good employees.  Here are some ideas: 

Recruitment:

Clear Job Descriptions: Ensure that the roles and responsibilities are clearly stated in your job advertisements. This way, potential employees will understand exactly what is expected of them.

Strong Online Presence: A well-designed website and active social media accounts can enhance your business's credibility and reach. Post job vacancies on your website, LinkedIn, job boards, and social media platforms to attract potential employees.

Partnerships with Local Institutions: Build relationships with vocational schools, nursing schools, and community colleges. They can provide a steady stream of potential candidates.

Employee Referral Program: Your current employees might know others who would be a good fit for your business. Offering incentives for successful referrals can be a productive recruitment tool.

Competitive Pay and Benefits: Offering competitive salaries and benefits, such as health insurance, retirement plans, paid time off, can significantly increase employee retention.

Employee Recognition and Rewards: Regularly acknowledge and reward the hard work and dedication of your employees. This could be through an "Employee of the Month" program, performance bonuses, or simply a thank you note.

Professional Development: Offer ongoing training and development opportunities. This will not only improve the quality of your services but will also show your employees that you value their personal and professional growth.

Supportive Work Environment: Create a culture that supports work-life balance. This could include flexible scheduling, mental health resources, and supportive management.

Open Communication: Foster a culture of open communication where employees feel comfortable voicing their ideas and concerns. Regularly ask for feedback and be responsive to it.

Career Advancement Opportunities: Provide clear pathways for career progression within your company. This gives employees something to work towards and helps them see a future with your organization.

By combining these effective recruitment and retention strategies, your non-medical home care business can build and maintain a reliable, motivated, and highly-skilled team.

Finding customers for your non-medical home care business is all about understanding your target audience, building awareness, and establishing trust in your services. Here are several strategies to help attract clients:

Referral Networks: Build strong relationships with healthcare professionals, such as doctors, nurses, physical therapists, social workers, and hospital discharge planners. They can refer patients to your service. Also, consider forming partnerships with senior centers, retirement communities, and organizations that cater to your target demographic.

Online Marketing: Ensure your business has a robust online presence. Create a professional website detailing your services, customer testimonials, pricing, and contact information. Utilize SEO strategies to ensure your site ranks highly in search results related to home care in your area. Also, leverage social media platforms to connect with potential clients and their families.

Community Outreach: Participate in local events and sponsor activities that resonate with your target audience. Giving talks on elder care topics or offering free workshops can help establish your business as an authority in the field.

Content Marketing: Write blogs or create videos on topics that your potential clients might search for online, such as "How to choose a home care provider" or "Benefits of non-medical home care." This helps position your business as a trusted resource.

Direct Mail and Brochures: Despite the digital age, direct mail campaigns can still be effective, particularly as many seniors may not be as internet-savvy. Distribute brochures or flyers in areas frequented by your target demographic.

Customer Testimonials and Reviews: Encourage satisfied customers to share their experiences online. Positive testimonials and reviews can be powerful tools for attracting new clients.

Networking: Attend industry-related events and join professional organizations to meet others in the field who might refer clients to you.

Paid Advertising: Consider paid advertising options like Google Ads or Facebook Ads targeting your local area and specific demographics.

Follow-up Services: If a client discontinues your service (e.g., because of hospitalization), ensure to follow up. They might need your service again when they are discharged.

Remember, trust and reliability are key in this industry. By delivering high-quality service, maintaining professional standards, and putting your clients' needs first, you can build a strong reputation that will attract and retain customers.

How Much Working Capital is Needed for a Non-Medical Home Care Business? 

As we soon move into the financial projections section, one of the key questions for a non-medical home care business is how much working capital will be needed.  I spent over 10 years leading an SBA Microloan Program and we funded many loans for home care services that needed working capital.  The basic challenge was that companies often got paid through Medicare or Medicaid which could potentially have a significant delay between the time the service is provided and when you get paid.  In the meantime you have to pay your employees.  So the more clients you get the more working capital you actually need to float.  I would expect that you should have at least 45 days worth of payroll available as working capital.  So if your employees cost $50,000 per month, you should have access to a line of credit for at least $75,000 and you should be careful about how fast you grow.  

Watch: How growing too fast can lead to bankruptcy even if you are profitable

How to Create Financial Projections for a Home Healthcare Business Plan

Just like in any industry, the in-home healthcare business has its unique factors that influence financial projections, such as client acquisition, reimbursement rates, and regulatory compliance. Utilizing an in-home healthcare financial projection template can simplify the process and increase your confidence. Creating accurate financial projections goes beyond showcasing your ability to provide in-home healthcare services; it's about illustrating the financial path to profitability and the realization of your mission to deliver quality care. To develop precise projections, consider the following key steps:

• Estimate startup costs for your in-home healthcare business, including licensing and certifications, insurance, office space or administrative setup, equipment, and initial marketing efforts.
• Forecast revenue based on projected client volume, reimbursement rates, and potential growth in service offerings or specialty areas.
• Project costs related to employee wages, training and development, supplies and equipment, transportation, and administrative expenses.
• Estimate operating expenses like rent, utilities, insurance premiums, software subscriptions, and marketing costs.
• Calculate the capital needed to launch and sustain your in-home healthcare business, covering initial expenses and providing working capital for continued growth and operations.

While financial projections are a vital component of your in-home healthcare business plan, seek guidance from experienced professionals in the industry. Adapt your projections based on real-world insights, leverage industry resources, and stay informed about regulatory changes, industry standards, and evolving healthcare models to ensure your financial plan aligns with your goals and positions your business for long-term success in providing exceptional in-home care.

Example Non-Medical Care Business Plan

Explore our comprehensive Non-Medical Home Care Business Plan Guide below, complete with an example template to jumpstart your planning process. Download the editable Google Doc version and follow our video walkthrough to tailor the plan to your unique business concept.

Table of Contents

Ii. company description, iv. service offerings, v. marketing and sales strategy, vi. financial projections, use of startup funds:, vii. conclusion.

Our non-medical home care business, named "Compassionate Care", aims to provide high-quality and affordable in-home care services to seniors and people with disabilities in the Dallas-Fort Worth area. Our mission is to help people live with dignity and independence in the comfort of their own homes, by providing compassionate and trustworthy care to meet their physical, emotional, and social needs.

The home care industry has experienced significant growth in recent years, driven by the aging of the population and the increasing demand for alternatives to institutional care. Compassionate Care will differentiate itself from competitors by offering a comprehensive suite of services, including personal care, homemaking, transportation, and companionship, tailored to the individual needs and preferences of each client. Our services will be delivered by a team of experienced and qualified caregivers, who will undergo rigorous background checks and training, and be bonded and insured.

Based on market research and financial projections, we expect Compassionate Care to generate $1 million in revenue in its first year of operations, and to achieve a net profit margin of 22% by the end of year three. To finance the business, we will seek a combination of debt and equity financing, from banks, angel investors, and family and friends.

Compassionate Care was founded by two friends, Jane Doe and John Doe, who have a combined 20 years of experience in the health care and social services industries. Jane has a Bachelor's degree in Nursing and has worked as a registered nurse for 10 years, while John has a Master's degree in Social Work and has been a social worker for 10 years. Both have a passion for helping people and a vision to create a company that provides compassionate and high-quality care to seniors and people with disabilities.

Compassionate Care will be incorporated as a Limited Liability Company (LLC) and will be headquartered in Dallas, Texas. The company will be owned and operated by Jane and John, who will act as the CEO and COO, respectively. The company will employ a team of 15 caregivers, who will be supervised by a director of nursing and a director of operations. The company will also have an office manager and a marketing and sales coordinator, who will handle administrative and marketing tasks.

The home care industry is a growing and dynamic market, with an estimated value of $100 billion in the United States. The demand for home care services is driven by the aging of the population, the increasing prevalence of chronic conditions, and the preference for home-based care over institutional care. According to the U.S. Census Bureau, the number of people aged 65 and older is projected to increase from 56 million in 2020 to 84 million in 2050, representing a 50% increase. Moreover, the number of people with disabilities who require assistance with daily activities is also expected to grow, as a result of improved medical care and increased longevity.

Compassionate Care's target market will be seniors and people with disabilities in the Dallas-Fort Worth area, who need assistance with activities of daily living and desire to maintain their independence and quality of life at home. The target market will include individuals who live alone, as well as those who live with family or friends, who need additional support and companionship. The target market will also include those who are transitioning from hospital to home, who need short-term or intermittent care.

Compassionate Care will face competition from other home care agencies, as well as from informal care providers, such as family members, friends, and neighbors. However, Compassionate Care will differentiate itself from competitors by offering a comprehensive and customized approach to care, by involving clients and their families in the care planning process, and by ensuring that the caregivers are well-trained and compassionate. Our services will also be priced competitively, while maintaining high quality standards.

Compassionate Care will offer a range of in-home care services to meet the diverse needs and preferences of its clients. Our services will include the following:

• Personal Care: Assistance with activities of daily living, such as bathing, dressing, grooming, toileting, and transferring.
• Homemaking: Assistance with household tasks, such as light housekeeping, laundry, meal preparation, and shopping.
• Transportation: Assistance with errands, appointments, and recreational activities, using the client's or the company's vehicle.
• Companionship: Socialization and emotional support, through conversation, games, reading, and other activities of interest.

All of our services will be tailored to the individual needs and preferences of each client, and will be provided in accordance with a care plan that is developed in collaboration with the client and the caregiver. The care plan will be reviewed and updated regularly, based on the client's changing needs and preferences.

Compassionate Care will employ a multi-channel marketing strategy, to reach its target audience and generate leads. Our marketing and sales efforts will include the following:

• Website: A professional and user-friendly website, which will provide information about the company and its services, testimonials, and a contact form.
• Referral Network: Collaboration with hospitals, rehabilitation centers, senior centers, and other organizations that serve seniors and people with disabilities, to promote our services and receive referrals.
• Direct Mail: A targeted direct mail campaign, using mailing lists of seniors and people with disabilities in the Dallas-Fort Worth area, to introduce our services and offer a special promotion.
• Social Media: Active presence on social media platforms, such as Facebook, Twitter, and Instagram, to engage with our target audience and promote our services.
• Referral Program: A referral program, which will offer incentives to clients, caregivers, and referral sources who refer new clients to the company.

Compassionate Care expects to generate $1 million in revenue in its first year of operations, and to grow its revenue by 100% in each subsequent year. The revenue will come from the sale of home care services, which will be priced competitively, based on the number and type of services provided. 

Compassionate Care expects to achieve a profit margin of 10% by the end of year three, and to reinvest a portion of the profits into the business to support its growth and expansion.

All of the unique financial projections you see below were generated using ProjectionHub’s Home Healthcare  financial projection template . Use PH20BP to enjoy a 20% discount on the template. 

Watch how to create financial projections for your very own home care business:

Compassionate Care is poised to capture a significant share of the home care market in the Dallas-Fort Worth area, by providing high-quality and customized care services to seniors and people with disabilities. The company's experienced and dedicated management team, its commitment to excellence, and its focus on client satisfaction, will set it apart from competitors and ensure its success. We look forward to serving the needs of our clients and their families, and to making a positive impact on their lives.

Compassionate Care will also be committed to giving back to the community, by participating in volunteer and fundraising activities, and by supporting organizations that serve seniors and people with disabilities. Our goal is to be not only a trusted and respected provider of home care services, but also a responsible and engaged member of the community.

With this comprehensive business plan, we are confident that Compassionate Care will become a leading provider of non-medical home care services in the Dallas-Fort Worth area. We are eager to launch this business and to make a positive difference in the lives of our clients and the community.

How do I start a non-medical home care business?

To start an non-medical home care business, obtain the necessary licenses and certifications, establish legal and regulatory compliance, develop policies and procedures, hire qualified caregivers or nurses, establish relationships with healthcare providers, and create a marketing strategy to reach potential clients.

What types of non-medical home care services can I offer?

Non-medical home care services can include personal care assistance, medication management, medical monitoring, wound care, physical therapy, occupational therapy, speech therapy, respite care, and end-of-life care, among others.

How can I attract clients to my non-medical home care business?

To attract clients, establish relationships with hospitals, nursing homes, churches, and healthcare professionals for referrals, create a professional website with informative content, participate in local healthcare events or fairs, network with community organizations, and provide exceptional and compassionate care.

What legal and regulatory requirements do I need to comply with in the non-medical home care industry?

Legal and regulatory requirements in the non-medical home care industry can include obtaining proper licensing, complying with privacy regulations (such as HIPAA in the United States), following state and federal guidelines for caregiver qualifications, and adhering to safety and health regulations.

About the Author

Adam is the Co-founder of ProjectionHub which helps entrepreneurs create financial projections for potential investors, lenders and internal business planning. Since 2012, over 50,000 entrepreneurs from around the world have used ProjectionHub to help create financial projections.

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Home Health Care Business Plan Sample

Published Oct.12, 2016

Updated Apr.23, 2024

By: Jakub Babkins

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Table of Content

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.

“The company is expecting a home care agency business plan loan for five years from its investors. Later on, we will manage the cash flow to finance the growth without requiring additional debt. We are planning to have full sales on credit. Hence, we need proper cash in hand in the beginning to avoid any problems related to the cash flow.“

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.

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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

You need to show up your gross margin on monthly basis in your home health care agency business plan .

Gross Margin Yearly

For this section, you can mentkon the annual gross margin you are expecting for the next 3 years.

Projected Cash Flow

It should show annual amounts, which are important to your home care agency business plan success. The following table represents cash flow on monthly basis.

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

OGS capital writers specialize in business plan themes such as cannabis producer business plan , business plan for a medical clinic , healthcare business plan , medical waste management business plan , medical marijuana dispensary business plan , business plan for Herbalife and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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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 .

Download our Ultimate Business Plan Template here

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.

How to craft a successful home care business plan

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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 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.

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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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.

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Thank you for your interest in SimiTree. Contact us or call 800.949.0388  if you need assistance.

By SimiTree

Growing a home health or hospice requires strategic planning

Every success story begins with an ambitious goal and a business plan. It's what doesn’t make it into the business plan that can often prove troublesome to home health and hospice organizations as they attempt to grow.     A host of issues can crop up to thwart the best-laid business plans, derailing all the strategic planning that went into crafting the plan, and making it hard to grow the home health, home care, or hospice organization. A few common examples of how a business plan for growth can miss the mark:

• Unforeseen staffing and utilization issues.
• Unexpected costs associated with a service line expansion.
• A competitor’s unanticipated move in the market.

The list goes on…. Unless the strategic plan proactively addresses scalability, sustainability, resources and utilization, competitor footprint, market activity, and a handful of other essential components, any number of issues can get in the way of an attempt to grow a home health agency or hospice.   Building an effective strategic plan  SimiTree Growth Solutions Consulting Director Melynda Lee uses the term “strategic synergy” to describe certain essential ingredients that are must-haves for a home health, home care, or hospice strategic plan. By using them, an organization creates a solid framework for long-term profitability and ongoing value. Without them, there may be gaping holes in the business plan. “An effective strategy takes some time to develop and involves input from every key aspect of the organization,” Lee said.  “Research, analysis, buy-in are all part of the synergy needed for efficient and long-term company growth, achievement of the goals and objectives, and overall employee satisfaction.” In her consulting role, Lee frequently encounters agency leaders with worthwhile objectives but lackluster plans for bringing those objectives to fruition. She helps agencies see what they’re missing and fill in the gaps with action plans.   How does a strategic consultant help? “Some clients know exactly what they want to do, and others don’t have that clear focus. We help either kind of client identify objectives, create goals and measurable objectives with a timeline, develop the action items that need to take place to achieve those goals, and avoid pitfalls along the way,” Lee said. Much of Lee’s work with agencies is in making certain they understand the full picture. She redirects clients to avoid costly and time-consuming missteps and connects them with resources as needed. “Let’s say an agency wants to increase revenue by 15 percent this year,” she said. “That’s a great objective. But there are some misassumptions that can go along with that, and one of them is that increasing revenue is solely a sales matter. They may want to restructure sales, provide some sales training to the sales team, and expect that to do the trick. But there’s much more involved, some things that have to happen upstream before it ever gets to sales. Sales training is just a small part of the planning and development. ” Lee said understanding the market is an essential starting point for pinpointing high-value referrals and developing agency sales messaging. Understanding market share, and how competitors are interacting with referral sources, is essential for increasing sales, but Lee said most clients lack the resources to use market intel to answer important questions about market activity or identify and track trends.  Lee also encourages agencies to look at pre-acute care market opportunities as well as post-acute care, educating referral sources about the value of home care in preventing hospitalization. To help an agency grow its total revenue by 15 percent, Lee said, she would also make certain the agency considered and made contingency plans for the impact of growth on clinical operations. “They’d need to identify the resources needed to accommodate a 15 percent growth, determine whether they have the clinical capacity to in place to accommodate it. Do they have the right operational infrastructure, the right technology, the right staffing and scheduling, and intake workflow? “What good does it do for a sales team to knock it out of the park if the admissions staff has to turn away patients because there’s no field staff available to send to the home?” In some cases, Lee said, agencies may look to increase revenue through acquisition, or a service line expansion. “But there’s a lot that needs to be figured out before making that leap. We’ll help the organization figure it all out and determine whether to move forward with an acquisition. If they do, we’ll help with the targeted acquisition, the due diligence, and the integration afterward,” Lee said. Lee shares a detailed plan with the client to achieve the strategic objective, then the client determines which parts of the plan to tackle on their own and which parts may require professional services from SimiTree. “We do as much of it or as little of it as the client wants – what makes sense,” Lee said. “After all, the clients are running an operation, so SimiTree leading the implementation accelerates results.”      Agencies generally spend the equivalent of one mid-level FTE for strategic consulting services, Lee said, an investment that is quickly returned on increased revenue. “It takes time, effort and money for effective strategic planning, but the pay-off for agencies is enormous,” Lee said. “It doesn’t just generate the desired growth and circumvent potential problems; it provides the foundation for ongoing, long-term success.”   Webinars offer strategic planning tips   Want to learn more about strategic planning for home health and hospice? Two upcoming webinars from SimiTree in February and March will offer an in-depth look at how organizations can use data to improve strategic planning and outline the essential steps for a robust growth plan.   Thursday, Feb. 9: Learn more about the role of data in strategic planning when Lee teams up with Data Analytics Director Christine Lang to present a complimentary 60-minute webinar explaining how to gain access to the most intuitive and powerful market intelligence in the industry. Read more and register for “A Deep Dive into the Power of Data” here . Thursday, March 9: Join Lee for a detailed look at effective growth planning in a 60-minute complimentary webinar step by step considerations. Read more and register for “Strategic Synergy: Essential Steps for a Robust Growth Strategy” here.   SimiTree can help No matter the size, budget or unique needs of a home health agency or hospice, SimiTree’s growth strategists deliver effective strategies and market approaches for performance, profitability, and growth. As the industry leader in data analytics and benchmarking, SimiTree pinpoints specific market opportunities, targeting areas for best use of resources and providing actionable recommendations from a knowledgeable team of experts to enable clients to do more with less.

Strategic growth recommendations consider an agency’s staffing and budgeting concerns, focusing on steady and sustainable growth.  Use the form below to reach out to us and let’s begin the conversation about helping your agency grow.

Let's work together to improve the health of your organization. At SimiTree, we balance financial expertise and clinical excellence to help our clients grow. How can we help you? Call us at 800.949.0388 or complete the form below.

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