Written by: Julia Akinyooye RN MSN, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
The healthcare industry has been booming whether you are in the healthcare provider services space, healthcare technology, or healthcare service-based industry. Starting your own home care agency is a essential service-based business that has consistently been in demand, can be very lucrative, and gives great satisfaction.
Home care is a service provided to the ill at home. It can be provided short-term or long-term. It can consist of medical or non-medical care. You do not need to be a healthcare professional to start this type of business.
According to Forbes, "the industry with the highest projected job growth is a home health and personal care, the home health and personal care industry is expected to see the highest growth". Furthermore, "Over the next decade, it is estimated to see an increase at the astronomical rate of 924%. ² This reveals projected growth within the home health and personal care industries, which is slated to increase in demand given the fact that the aging population is growing disproportionately larger ⁴ than the younger generations".
The average gross profit margin in this type of business is a whopping 35% percent with the lowest at 30% and the highest at 40% making it profitable and scalable.
Let's take this example of a 100-patient agency’s revenue by year 1 (slow and steady/about 8-9 patients a month) can equal 1 million in Revenue; no wonder why home care business owners and entrepreneurs are saying it's one of the best businesses to start in 2023!
What does operating a home care agency/senior care business look like? Let's dive in, shall we?
Home care Entrepreneurs and or the team they hire offer and coordinate services to the public which can include personal care, dressing, bathing, toileting, transferring, feeding, preparing meals, shopping, and attending doctors' appointments to wound care, medication management, footcare and so forth.
Why is home care deemed an essential business, and why is it needed?
Home care is becoming more popular as seniors that are aging prefer to age at home and require care, and individuals recovering from short-term surgery, rehab, or chronic illnesses prefer to recover at home and sometimes discretely.
It's needed because of
The rise in baby boomers which makes this a feasible business
The Increase in chronic disease alternatives in health care
Who are potential customers for my home care agency?
Not only the sick and fragile but children, motor vehicle accident victims, chronic and short-term disabled, post-surgery, adults, pediatric, mother/ baby.
Who will provide the care in my home care agency?
Depending on your state and which type of agency you would like to start, it ranges from Nurses & Home Health Aides/Caregivers to skilled services like Skilled Nurses, Physical Therapists, Speech Therapists, and Occupational Therapists.
Who are possible referral sources for my home care business?
Doctors
Social Workers/ Case Managers
Nurses
Hospitals/ Nursing Homes/ Rehabilitation Centers
Government Agencies
Certified Home Health Agencies
Corporations/ Community/Friends
Advertising agencies
Online
Who pays for home care services?
Insurances example Medicaid/ Medicare
Supplemental Insurance
Workers Compensation
Long-Term Care Insurance
Patient self-pay/Family/Trusts
Charity Care
Who may be on staff at my home care agency?
Owner/ Administrator
Nurses
Home Health Aide
Billing/Bookkeeper
Human Resources
Administrative Assistant Scheduler/On-Call Coordinator
Marketers
Who will be my competitors?
Home Care is greatly fragmented with large and small operators; few barriers to entry and increase demand makes it a viable business.
How can I differentiate my home care business?
Provide high-quality service/reputation/responsiveness, fast service
Star ratings quality control/customer experience and satisfaction
Satisfaction rate 90% employee and patients
Niche-based care
Preferred connected partners and insurance companies
Technology-savvy agency
New healthcare innovations
Target location, language-specific
Strong training, recruitment, and retention
Obtain Accreditation
Who can I market my home care business to?
Physician networks
Healthcare Facilities
Doctors' offices
Senior Center/Social/Medical Day Programs
Senior Services and Social Service Agencies
Elder Care Attorneys
Newspaper
TV/Radio ads
Word of Mouth/ Networking
Articles/Blogs/Newsletter/Mailers/Social Presence
Hosting Community Events/Support groups
Eldercare Resources and Consulting Services
Key influencers (community & social media)
Things to consider about starting your home care agency
Expandable business model
Rapidly growing industry according to the census bureau in 2015 percentage of the elder over 65 was 12% will increase to 16% in 2020 and 20%by 2050
10,000 baby boomers a day turn 65 By 2030 there will be over 70 million over the age of 65
Financial implications/pricing and bottom line of starting your home care agency
Example, Home Care Services Caregiver rate is billed at $30 per hour x 40 hours a week= $1200/week x 52 weeks= $63,400k annual Revenue for 1 patient.
Caregiver paid on average $20/hour- company profit $10/hour- $20,800 estimated at the low end of the profit margin
What exactly do I need to start a home care business?
An experienced home care business consultant and startup capital
Startup funds
Office space and office supplies (computers, fax, phone, internet, supplies, filing cabinets) (some states allow you to operate as a home-based business-like, Pennsylvania and New Jersey)
Workers' compensation
General/Professional Liability
Unemployment tax
How can I help you start up your home care business?
I provide a premium full-service startup package - Everything you need to turn-key on your new business! I make the process seamless!
I provide a full business startup. I will file your business with the proper documentation and take care of all your business essentials, including the initial home care licensure application from your state.
I provide you with customized home care agency policies and procedures, home care agency forms you will need to operate your business
I will apply for your home care license
I will provide custom home care executive administrative training and office setup for a smooth transition from entrepreneur to home care business CEO and help you further understand home care fundamentals which are essential for running and operating your home care business
You’ll receive guidance from an expert home care business consultant
You’ll get a cost-effective startup bundle deal and I am always here for any continued needs.
Why is starting a home care business the best business to start in 2023?
It is a multi-billion-dollar industry with great profit margins
You will have a booming business to hand down to generations
Home care businesses provide a well-needed service-based business
To find more information about running your own home care business and eliminate confusion in the process of building a home care agency contact Emmanuel Consulting Agency Inc at www.emmanuelconsultingteam.com
Follow me on Facebook, Instagram, LinkedIn, Twitter, and Youtube, or visit my website for more info!
Julia Akinyooye RN MSN, Executive Contributor Brainz Magazine
Julia Akinyooye is the Chief Operating Officer at Emmanuel Consulting Agency Inc, a premium home care business consulting firm based in New York. Julia is a masters prepared professional Registered Nurse with over 15 years of experience serving the home care community as an operational consultant, former homecare business owner, & serial entrepreneur. Her mission is to provide homecare entrepreneurs, start-ups, & established businesses with premium training & education to ensure compliance with state regulations. She has developed & implemented frameworks & strategies to set owners up for success through hands-on execution of all necessary business tools to ensure a seamless & efficient run of business.
References:
