FAQs on How to Start a Private Home Care Business
This helpful guide should give you some information on how to start a private home care business, but you may still have questions. Check out the FAQs below for answers!
What Is a Private Home Health Care Business?
A home health care business often takes care of disabled individuals, the elderly, and those with special needs, though it does so in a non-medical capacity. It's different than home nursing care because no one is responsible for administering medication or drugs. You're focused on their personal care.
While personal care is the most common option, you can hire medical home health providers who offer at-home health care.
Do You Need Medical Professionals or Professional Caregivers?
You must decide what services to offer before starting your in-home caregiving business. This is a big decision that influences the laws you follow and the qualifications of the employees hired. The two main types include medical or personal care, and the structure you choose depends on what you hope to accomplish.
• Non-medical Care - Personal care agencies support a person's right to age in place. Clients can include senior citizens who require assistance around the home but are healthy otherwise. You may take them to see their preferred medical professionals, but you don't administer medical treatment. Likewise, you might prepare meals, fold laundry, offer companionship, remind them to take medication, assist with hygiene, and other needs.
• Medical Options - Medical home health care businesses also focus on independence and aging in place, but they go beyond traditional services. Medical care is given by medical professionals and often includes wound care, physical therapy, occupational therapy, blood pressure checks, and nursing care.
Do You Require Professional Liability Insurance?
To operate legally and safely, your own home care business requires insurance, which includes professional liability. This protects you from any claims of malpractice, incompetence, and negligence and is often called "errors and omissions" coverage.
What Types of Business Insurance Do You Require?
While professional liability insurance is crucial, there are other business insurance options you may want, such as:
• General Liability Insurance - This protects you from any claims that involve third-party property damage and bodily injuries that result from the business operations or product. It's very common and a great place to start.
• Cyber Security Insurance - This protects you from certain HIPAA penalties that result from a breach or hack of your computer system if it reveals your client's personal identifiable information (PII).
What Services Does a Private Home Care Business Provide?
Generally, home health care services focus on offering assisted or supportive care by a nurse or professional caregiver in the comfort of the customer's home or dwelling. They can set up appointments and do whatever is necessary.
Typically, private home care businesses provide health care services that include reminding the patient about medications, offering companionship, grocery shopping, personal care needs, and more. Medical care includes more benefits, but you need to hire employees who have the right credentials and licensure to do the job.
What Costs Are Involved When Opening Your Private Home Care Business?
Starting your home health care business and the costs associated with opening it are essential questions.
Individuals often start their businesses with little hassle or capital. The startup costs include licensing fees your region requires, a reliable vehicle, and a mobile phone. Most business owners tend to use their personal cars and phones initially. You may also need a computer, but you might already have one.
Often, private home care businesses keep costs lower by offering non-medical services and working from home. That reduces the need for office space and working capital to pay for classes.
Those who have no prior experience may find that costs are lower because you don't need special initial equipment and don't have to hire employees right away. You can do all the work yourself while you build your home health business and create a financial plan.
Who Is Your Target Audience?
Home care businesses are excellent for those who wish to live independently and need help with basic tasks (shopping and cleaning). Clients might not have medical insurance, but they might pay with their savings or assistance through social security.
It's your job to research your target market, which could include:
• Elderly seniors who want to stay in their homes and live an independent lifestyle - They may need assistance with dressing, bathing, and moving around.
• Patients who have undergone surgery and want to recover at home - They likely need someone to help them until they get on their feet after treatment.
• Someone with a medical condition - They may need help with laundry or cooking if they can't stand up.
How Much Income Might a Private Home Care Business Make?
If you want to start a home health care agency, the average rate for a non-medical home care position is $20.29 per hour. An established provider can earn quite a lot if they've got employees. Plus, you can charge more for add-on services.
Assuming that you start operations with a small budget and hire one worker, you might earn about $27,000 in your first year, depending on how many clients you have. There are minimal costs involved in starting out and can continue to grow year over year as you hire more employees and provide private home care for more clients. Overall, it's a great part-time business that helps people!
Do You Need a Business Plan? What Should It Include?
Everyone requires a business plan, and it should include a company description and executive summary. Consider these tips for creating a business plan for your brand:
• Choose an appropriate business name and write your company description.
• Have enough capital and your business plan to stay ahead in the first year.
• Write out an executive summary that details the ownership structure of the business.
• Request a tax ID number (similar to a federal employer identification number in the US.)
• Find out what licenses you might need.
• Open a business bank account that's separate from your personal one.
• Create your operational plan, marketing plan, financial plan, and build an online presence. This could wait until you've got an established business model.
Is It a Good Idea to Start a Private Home Care Business?
The home health care industry is actually one of the top and fastest-growing healthcare industries in Canada and the United States. Market expansion is set to be high because of the many baby boomers. In fact, it's never been a better time to start your private home care business.
What Legal Formalities Are there in Forming a Private Home Care Business?
To start a home healthcare business, here are a few things you must do to keep it legal:
• Create your business entity - Determine which business entity works well for you (corporation, co-operative, partnership, or sole proprietorship).
• Get a tax ID number - This is a 15-character number assigned to you by the CRA, which is similar to the Internal Revenue Service of the US. Overall, it's given to business entities operating in Canada for identification purposes.
• Register with the government - You must know your business name, the territories/provinces you will operate in, and the main office location.
• , Generally, you need to get the certified nursing assistants approved before operating your business. They must be certified to handle bathing and helping with medication. Home health aides have different licensure needs, and it's up to you to know what they are and ensure your employees have it.
Do You Need a Marketing Plan?
Word of mouth is an excellent way to get more clientele, but it might not be enough, especially if you're just beginning.
It's best to tap into local resources to get recognized. Start by dropping marketing materials at gyms, senior centers, churches, rehabilitation centers, and with your local physicians.
Create a website and put ads on other websites so people can find you online. Your site should include information about your services, business, and rates. Consider hiring a professional SEO expert and web designer to get started or do it yourself to save money.
What Should Your Marketing Plan Include?
When promoting your home health care agency, it's best to focus on these segments:
• Adult children of seniors
• Older adults/seniors
• Relatives of people with disabilities, handicaps, and senior citizens
Other tips include:
• Make sure you're on social media (Facebook, Twitter, Instagram, etc.)
• Have a strong online presence with a website optimized for SEO.
• Focus on content creation and blogging to educate customers.
• Place ads in newspapers, list your business in publications, and update your GMB profile.
Should You Have a Growth Plan? What Must It Include?
Yes, your home health care agency requires a growth plan because that can help you stay on top of things. You've got the business set up, built a clientele, and should now define how to compete with the competition.
What Should You Include in Your Budget for Your Home Health Care Business?
Home health care agencies require a budget to ensure that they aren't overspending. Expect to include:
• A professionally designed website
• Cost of incorporating the business
• Cost of software
• Licensure and certification testing
• Nursing supplies
• Office costs
• Office equipment/supplies
What Are Some Home Health Care Business Ideas?
Here are some ideas for your home health care business:
• Senior needs for senior citizens
• 24-hour home care
• Transportation services from professional caregivers
• In-home care