How to Start a Home Health Care Business: Resources Included


Starting a Home Health Care Business

A home health care business is an important service that can make a difference in people’s lives. Your service helps those who can’t care for themselves and families struggling to care for their loved ones.

As a health care service provider, you must provide the highest level of care for your clients. Excellent care is a key factor in building a reputation in the home health care industry.

1. Let’s Have a Look at the Steps Needed To Start a Home Health Care Service.

Define the type of Home Health Care Business You Want To Start.

There are medical and non-medical home health care businesses. You will want to decide which type you want to start before proceeding with the other steps.

A non-medical type of care focuses on helping people with their day-to-day tasks, like attending appointments, running errands, housework, getting dressed, etc.

A medical home care business is more complex and requires a higher level of certification for the caregivers. For example, they will be dealing with medications and a higher level of health care.

It’s important to determine the level of care you are planning on before you continue with the steps to start your home health care business.

See the latest Google search results for the difference between medical and non-medical home healthcare for more information.

2. Home Health Care Business Permits, Licenses, and Registration

The Permit section is usually further down the list when starting a business. Because there are regulations and restrictions related to a home healthcare business, you will want to check this out before proceeding with the other steps. The requirements depend on the country, state/province, and your local municipality. Again, you’ll want to determine the requirements before you open your doors to the public.

See the latest Google search results for Home Health Care Business Permits to get an idea of the permits you’ll need for your area.

3. Research the Home Health Care Industry

It’s a good idea to research the industry for trends, statistics, challenges, and other issues that can help you become an expert in the field. The more information you know, the better your decision-making will be.

For example, during your research, you may find the demand for healthcare services is shifting, increasing, or decreasing in demand. With this knowledge, you can plan better to cater to the needs of your local market.

See the latest Google search results for Home Health Care Trends and Statistics.

4. Write a Home Health Care Business Plan

One of the most important steps to starting a business is writing a business plan. A business plan will force you to think about some of the issues you haven’t considered.

Some of the issues to include in your business plan include; your staff’s expertise, mission statement, target market, specialties, etc. A business plan covers all aspects of how you intend to operate your business.

A lender will not allow you to apply for a loan without a business plan, and that’s something you need to have before approaching a lender. You can write it yourself or have a professional write your business plan for you. For more, see our page on How To Write A Business Plan, containing tips, insights, and resources.

5. Plan for Startup Capital

You will need to get funding for your business, which can be challenging when starting. New businesses are considered high risk in the eyes of a lender. In addition, you need to secure the loan with collateral; otherwise, you will have a hard time obtaining a loan.

Even if you have the right amount of collateral and your plan is considered high risk, the lender may decline your loan because they are in the business of making money from the interest; they are not interested in the repossession business.

Your business plan is an important document a lender will need during the loan application process. Therefore, make sure your business plan is polished and accurate.

For more on small business funding, see our article on Getting a Small Business Loan.

6. Choose the Location of your Home Health Care Business

The location you choose for your home health care business is an important step. Ensure that there is enough demand for home health care in the area while avoiding locations with too many healthcare agencies because it will be hard for you to compete.

An ideal area would be somewhere where there is a lot of retirees. Areas with an older population will require home healthcare services to continue to live in their homes with the help of your services.

You could perform an internet search for the top places to retire in your area. You may find it’s better to locate in an area that’s not far from you than operating in your town or city.

Identify the area you plan to target. For example, you may plan to service a large city and surrounding areas or spread your services to cover a few towns or a certain county.

The location you choose is an important factor and will affect the success of your operation. Take some time to choose wisely.

For more, see Choosing the Best Location for Your Business.

7. Choose a Name For Your Home Health Care Business

Choosing a name for your health care business is an important step. Your business name must complement the service you provide. A name that doesn’t make sense will drive people away.

For example, if you called your business “Last Stop Home Health Care,” you can see the name could drive people away. But, on the other hand, something like “Personal Home Health Care” would be more appealing.

Take the time to create an appropriate name and something you like because you’ll be hearing and saying the name for as long as you own the business.


When choosing your business name, you’ll also want to consider a domain name that matches. For more details, see Choosing a Good Name for Your Business.

8. Define the Type of Company to Form

There are a few different options available to structure your business legally. The easiest is a sole proprietorship, and the more complex is a corporation. With a sole proprietorship, you can start with very little cost and setup. You and the business are considered one entity, but whatever happens to the business affects you personally. You are liable for everything. When you register as an LLC or corporation, your liability is limited.

As a home health care provider, your business is more susceptible to lawsuits; therefore, you must set up your business that limits your liability. Consulting with a competent lawyer can provide you with the best route to take for your home health care setup.

9. Get your Tax ID

If you plan to hire employees or set up a business beyond a sole proprietorship, then a Tax Id is another necessary part of setting up your business. The process isn’t difficult, and once you have your company information, the process is quick.

For more, see Here’s How To Get A Business Tax Id For Your Business.

10. Create Your Corporate ID

A corporate ID consists of your business’s marketing material, including your log, business cards, websites, letterhead, etc. The design you choose is important because it leaves an impression on your customers, and it’s one of the first things a potential customer sees, so you want to give a good impression.

For More See:

Here’s A List of Sites That Specialize in Corporate Identity Packages

How To Design A Business Logo – Make it Good It Might Last Years.

How to Design Business Cards That People Will Pay Attention To

11. Choose Your Business Sign

The business sign you use should match your corporate ID. In addition, it must be something that matches your service and is designed professionally. A poor design results in a bad first impression, while a well-designed sign offers a good first impression.

For more, see our page on business signs.

12. Choose a Bank

The bank you choose can hamper your success or boost it. On the other hand, a good relationship with your banker can be a crutch during hard times and help you get by when times are slow or you’re in a financial bind. For example, you may have clients behind on their payments which could put you behind. With a good relationship with your banker, you could let them know that you have a payment coming through and you need them to cover it for a week or two.

Consider building a good working relationship before you need their help. Then, your banker can offer you a line of credit, overdraft protection, business loans, better deals on bank fees while helping you manage your money.

For More See:

How To Choose A Business Bank

Opening A Small Business Bank Account – Here’s What You Need To Know

13. Acquiring a Merchant Account

A merchant account is something that allows you to accept payments from your clients. Of course, you could accept cash or check, but these days the use of cash and checks is limited. Most people pay using a credit card, a debit card, or direct deposit.

See, How To Open A Merchant Account for more information and companies that offer merchant services.

14. Office Setup

Your office setup is important for a home health care business because a lot of the work as a business owner is administrative. Therefore, you want your office organized, tidy, and set up in a way that works best for you. For example, one of your caregivers calls in to get their schedule. You want to locate the information without going through many steps or a pile of cluttered paperwork.

Your office is your command center, and you set it up in a way that allows you to streamline operations.

See The Setup of Your Office for more.

15. Accounting System Considerations

The accounting system you choose for your home healthcare business is where you want to take some time to research. You want to choose software that is compatible with your accountant.

For example, talk with your accountant and work out a way to complete the data entry, and they can take care of filing your taxes and consult with you on managing your finances. If you complete the data entry, you are always aware of how your business is doing financially, and you have the expertise of an accountant for a fraction of the price.

Have a look at home health care accounting software on the market and What Small Business Owners Need To Know About Accounting.

16. Create a Team for Your Startup

You are only as strong as your team. With a strong team, you’ll have a greater chance to succeed with a weak team or no team; it can be a struggle.

Your team can consist of people on your payroll and those that aren’t. For example, your team can consist of lawyers, bankers, accountants, consultants, etc. These are people that you work with but are not on your payroll.

Consider the people you will need to help you run your business. Then, start making contacts to build a team. This type of team may take a few months or years to build, and that’s okay. For example, you may not need a consultant now, but when you do, take some time to find one that works well with you and understands your business.

17. Hiring Employees

You may start doing everything yourself or almost everything, which is a route many small business owners take. However, once the business is up and running, you will need to hire people to fill the positions needed to grow.

As a new business, it’s important to only hire for the necessary positions. The last thing you want is a large staff where you’ll have difficulty making payroll.

A home health care business needs caregivers; they are the backbone of the business. In addition, as your business grows, you may need a scheduler, a manager, and a secretary.

Once your business is up and running, it will be easier to identify the positions you’ll need. For more on hiring, see How and When to Hire a New Employee.

18. Setting Up Your Online Presence

Your online presence may consist of a website, Facebook page, LinkedIn company profile, etc. It’s a good idea to have them set up before you start. That way, when you’re talking to people about your business, they can get more information from going online.

You want your designs to match your corporate ID. Depending on who creates yours, they most likely can create your website and social media presence. After all, you want the designs of your pages to match the look and feel of your corporate ID.

Having a presence online today is an essential part of your marketing campaign. These days you rarely see a business without an online presence. Running a business without one gives the impression that you’re not serious about your business.

See How to Build a Website Using These Unique Resources for more.

19. Having a Grand Opening

Once you have everything complete and ready to open your doors to the public, a grand opening is a great way to introduce your business to the area you’re servicing.

Your grand opening should be a memorable event, and you want to make sure you’re targeting the right people. You will want to introduce your service to the senior residents in the area and, more importantly, their families. Many people have family members that are seniors who need care, and that’s something they may not be able to provide at this point in their lives. Your service may be what they’re looking for to have peace of mind.

For more see, How To Have A Grand Opening That People Will Talk About

20. Make Sure You Haven’t Missed Anything

There are many details when it comes to starting a business. You want to make sure you haven’t missed anything that can put you behind. I have a page that offers resources providing checklists for starting a business. It’s worth spending a couple of minutes downloading a checklist to ensure you have all the important details covered. See, A Collection of Checklists You Need to Start a New Business

21. Ideas for marketing your home healthcare business

In this section, there are a few considerations regarding marketing your home health care business.

Joint ventures

Whenever marketing a business, your target market must be precise. For example, you want to target people who want to stay in their homes but need help to live a normal life.

One of the best ways to reach your target market is to target businesses or services that already deal with seniors. For example, you could speak with local hospitals, tell them more about your service and give them a tour so that they may be able to recommend your service to those people that would benefit from it. In return, you could recommend the hospital when your clients need it. You could also donate a portion of the referral revenue to their hospital fund. You could also do the same with doctors, chiropractors, and others in the medical field.

Long-Term Retirement Homes

You could set up a joint venture with long-term retirement homes that may receive applicants looking for long-term care but would rather live at home.

You may view this as direct competition, but you’re only interested in people who want to live at home and people they can’t help. In return, when your patients get to the point where they need 24-hour care, you could refer them to their long-term care facility.

See our collection of posts that offer tips and insights for marketing your business for more marketing tips.

A Collection of Resources Related to Starting  Home Health Care Business

Getting Inside Information

An Inside Look Into The Business You’re Considering

How To Register a Business

How to Register Your Business Using These Resources

How To Get License For A Home Health Care Business [Full Guide]

Home Health Care License | 1st Accreditation

Home Healthcare Agency Business License | LicenseLogix

Home Health Care Licensing | 21st Century Home Health Care Licensing

Home Health Care License

Home Health Care Business Name Ideas

Selecting a Good Name for Your Business

Home Care Business Name Generator + (Instant Availability Check)

Home Health Care Business Name Generator – How to Name a Home Health Care Business

Business Plan

How to Write a Business Plan Using This Unique Collection of Resources

How to Write a Marketing Plan Using These Select Resources

Home Health Care Services Business Plan – Executive Summary

Trends and Statistics

Home Care Providers in the US – Industry Data, Trends, Stats | IBISWorld

Home Healthcare Market Information and Home Care Industry Stats


Learn 4 Intriguing Facts Regarding Home Health Care

5 Facts Every Home Care Agency Owner Should Be Grateful For

Profitability and Revenue

Estimating the Profitability and Revenue for a New Business

Breaking Down the Profitability Of Home Care Franchise Business Model

Startup and Operating Costs

Starting a Home Care Agency can cost $80K and Home Health $350K

How Much Does it Cost to Start a Home Healthcare Business? | BrightStar

Equipment and Supplies

Essential Office Equipment You May Need to Run Your Business

Home health care, home health products, home health care supplies-supply

Wholesale Home Medical Equipment and Supplies | McKesson

How to Start a Home Health Medical Supply Store Business


Here’s Everything You Need To Know About Business Insurance

Home Health Care Insurance – Liability Insurance for Home Health Care | Hiscox

Insurance for Home Health Care Providers and Businesses | Bizinsure

Employee Considerations

Hiring an Employee VS Subcontracting

More Home Care Agencies May Become Employee-Owned as Aging Owners Exit – Home Health Care News

Business Cards

Health Care Business Cards (Standard Horizontal) – Customizable Design Templates –

Latest Image Search Results Related to Home Health Care Business Cards


Free Home Care Logo Designs | DesignEvo Logo Maker

Latest Image Search Results Related to Home Health Care Business Logos


Best Home Health Care Software| Reviews of the Most Popular Tools & Systems

Best Home Health Software – 2020 Reviews, Pricing & Demos

Best Home Health Care Software| G2

Business For Sale

Buy A Business or Build one From Scratch?

An Inside Look Into The Business You’re Considering

Home Health Care Businesses For Sale – BizBuySell

Latest Search Results Related to Home Health Care Business For Sale

Franchise Opportunities

5 Things You Need To Know Before Buying A Home Care Franchise

The 12 Best-Liked Home Care Franchises – Home Health Care News

15 Senior Care Franchise Businesses – Small Business Trends

Established Home Health Care Business

Best Home Care Companies |

The Top 10 Largest Home Health Providers – Home Health Care News

Marketing Tips

How to Market for Home Care Agencies | Home Care Marketing – InHomeCare

6 Marketing Tips To Generate More Revenue For A Home Care Business

15 Home Care Marketing Ideas

Home Care & Home Health Marketing Strategies | Home Care Sales

10 Effective Ways To Market Your Home Health Care Business – How to Market

16 Marketing Ideas For Home Care & Service Business

Creative Marketing Ideas for a Home Care Agency

Article Mix

Grow Your Home Care Agency with These 4 Simple Tips | Honor

5 Ways to Grow Your Home Care Business

Your Home Care Agency Needs Clients… but How?

Home Care Business Tips Archives – Home Care How To – Start & Grow Your Home Care Business

Rosemark System | Where to Find Clients for Your Home Care Agency

27 Smart Tips on How to Grow your Home Health Care Business | ProfitableVenture

How to Run a Home Care Business That Doesn’t Run You

12 Things to Know Before You Start a Home Care Business -21st Century Home Health Consultants

Starting A Home Health Care Agency: What You Need To Know – Biz2Credit

5 Biggest Challenges for Home Health Care Agencies – PointClickCare


Home Care Magazine

Top 15 Healthcare Magazine & Publications To Follow in 2020

HealthCare Publications: American Healthcare Capital – HealthCare M&A Advisors

Top 20 Home Care Blogs & Websites To Follow in 2020


Glossary of Health Care Business Terms

Home Care Terminology: A Glossary for Caregivers


Books from Amazon Related to Starting a Home Health Care Business

Google Book Search Related to Starting a Home Health Care Business

The Latest about Starting a Home Health Care Business

Google Searches

Latest Search Results Related to Starting a Home Health Care Business

Latest Scholar Search Results Related to Starting a Home Health Care Business

Latest Image Search Results Related to Starting a Home Health Care Business


Latest News Related to Starting a Home Health Care Business


Tweets Related to Starting a Home Health Care Business


Videos Related to Starting a Home Health Care Business