Figure out which aspects of the business are covered by these programs in your area. This will help you tailor your services such that they are entirely or mostly free to your customers.
For instance, if you wanted to establish a caregiving business in Florida, you’d see that it has the highest percentage of 65 and older individuals in the nation, and the second highest population of elderly in the country. Check the census data closely for projections about the number of seniors in a given area. Is it going up, down, or staying level? If it is holding steady or increasing, an in-home caregiving business would do well in that area.
Non-medical in-home caregiving, by contrast, consists of making and serving meals, housekeeping, transportation, and other daily life activities. [3] X Research source
Starting your own home-care business will require more time, energy, and start-up monies. You’ll have to register the business, come up with a business plan, and set your own prices. You’ll also need to engage in intensive marketing and develop your network to get your name out. However, as an independent outfit, you’ll have more freedom in how you run your business and won’t be constrained in the way you would be if you were operating as a franchise. For instance, if you want to expand your business later as a franchise, you will have to first check with the parent company to ensure that the area you want to expand into does not already have a franchise in that area. Start-up costs for an independent business include staff uniforms and licensing costs. Ongoing costs for either an independent or a franchised caregiving business include office space, insurance, and staff training. Make sure to investigate new wage laws that could affect your ability to pay your employees. For example, many states have passed laws to increase minimum wage, with California and New York both planning to jump up to $15 over time. [5] X Trustworthy Source National Conference of State Legislatures Bipartisan, nongovernment organization serving the members of state legislatures and their constituents Go to source In addition, workers that make less than $47,476 per year are now to be paid overtime pay if they work more than 40 hours per week. [6] X Research source There are also various state laws that differentiate between the treatments of independent contractors and employees. Check with your state’s own regulations to make sure you are adhering to them when hiring and paying employees.
Your business plan must include data on your financial projections. How much have you spent on materials, marketing, and other expenses? How much have you earned? Do you expect earnings to go up, down, or stay steady? Include a mission statement. The mission statement is the brief description of what your business does on a day-to-day scale. For instance, your mission statement might be to “Provide comprehensive medical in-home care for those in need in (your area). ” Your mission statement should be specific in the type of care you intend to provide, where you will provide it, and the specific level of performance or quality you intend to provide (“100 percent customer satisfaction” or something similar). Include a vision statement as well. Your vision statement should be a long-term, expansive statement of specific goals for your business in the near future. A vision statement might be, “To continue building our reputation as the top in-home care provider in the region. ” A related component is the goals statement. This lists specific, actionable goals that your business will adopt to meet its mission and vision. “Reach 97 customer satisfaction and gain control of 20 percent of the in-home medical care market over the next five years,” is a solid goals statement.
A sole proprietorship is a business in which someone owns an unincorporated business entirely alone. As the sole proprietor of a caregiving business, you control the business and make quick business decisions to respond to a changing market. However, you open yourself up to legal liabilities from both your employees and your clients. If an employee is in a car wreck or a client is given the wrong medication, they or their family might sue you. As the sole proprietor of the business, you may have to pay those damages out of pocket. A sole proprietor should buy liability insurance for such events. [8] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source A partnership is a business formed between two or more persons’ businesses, or organizations who each contribute in some way to the business and share the profits and losses equally. [9] X Trustworthy Source Internal Revenue Service U. S. government agency in charge of managing the Federal Tax Code Go to source In the context of an in-home caregiving business, it would be beneficial to partner with someone who has experience in the field, especially if you do not. Alternately, you might enlist partners who bring different strengths to the company – perhaps one has connections with local hospitals, perhaps one has experience in medical training, and so on. Unfortunately, partnerships entail the same disadvantage as sole proprietorships, personal liability, as well as sharing control over operations and business decisions. A corporation is a type of business structure that eliminates double taxation and personal liability for its owners, and is led by a board of directors. While you can still be held accountable for criminal wrongdoing, business losses, fines, or legal settlements won’t come out of your own account. Corporations also tend to have easier access to capital and often enjoy significant tax breaks, which could be important considerations as you start up your own caregiving business. If you plan on investing in medical equipment, especially, incorporating may be your best bet. [10] X Research source One type of corporation you can form is a Subchapter S corporation, which eliminates double taxation while limiting personal liability. A variation on the corporation is the limited-liability company (LLC), a business run by members, who can be either corporations, individuals, or other LLCs. These businesses are highly variable in form, and must conform to state regulations concerning their makeup. If you are worried that the other members who you start the business with might bail, you should forgo this type of business in favor of a corporation. Like corporations, LLCs provide limited liability, so if your business is sued, you will not be personally responsible. [11] X Research source
Medical caregiving agencies will require additional certifications from Medicare and Medicaid. These certifications will be granted after a Medicare/Medicaid surveying agent recommends that your business receive one. Medicare or Medicaid dispatches a surveying agent to verify one or several of your clients qualify for Medicaid or Medicare, conducts an investigation, and ensures your caregiving agency meets Medicare/Medicaid care standards. Only after this investigation is certification granted. [13] X Research source To begin the process of getting certified, your business must have at least 10 active patients on your client roster, and must have patients actively receiving every type of care service your business offers. Apply for a National Provider Identifier number at https://nppes. cms. hhs. gov/NPPES/Welcome. do and use the application to notify your state’s Department of Public Health that you are interested in receiving a state Medicare/Medicaid surveyor or private accreditor. The process can take six to eight weeks. Businesses which are Medicare-certified require higher start-up costs to cover the certification fees. They also require that employees are officially on staff as part of the company, and not acting as independent contractors. Non-medical caregiving agencies, by definition, will generally not require medical licensing. Check your state’s guidelines for specific rules. Requirements for specific licenses and registration processes vary by state. Check with your state’s Department of Health for specifics about your business. Register your business with either your county clerk or your state’s Department of Treasury if your business is a corporation or a limited-liability company (LLC) or limited-liability partnership. [14] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Sole proprietorships and partnerships will need to register a “doing business as” (DBA) name, but can generally avoid much of the paperwork required of the other types of businesses.
You may also want to encourage your employees to obtain Professional Liability insurance coverage themselves.
You also need to be cognizant of Medicare and Medicaid reimbursement limits, as well as major insurers in your area. Factor in the strength of your local economy, the number of clients you have, and the distance to and from a given client when setting your prices. Since you’re a new business, set your rates lower than those of more well-established caregiving services and the big brands that you refused to franchise for. The average rate for home care is $20 per hour. You might need to adjust what your rates are depending on your clientele’s finances. For instance, it might be better to take on a financially-challenged client for a lower pay rate than to turn them down entirely, assuming there is still profit to be made. (Plus, that customer might be a good ambassador for your business and suggest you to others in need of home care. )
Remember to check up on changing wage and employment laws. Medical professionals commonly employed in home care include certified nursing assistants (CNAs) and home health aides (HHAs). One of the more common non-medical certification programs is the online course offered by the American Caregiver Association (ACA). Decide if you want your non-medical professionals to obtain this or other certifications. The ACA offers both a general caregiver certification and an assisted living manager certification. Both certifications consist of an online course and an online exam. The courses can usually be done in two days, though there is no time restriction on how long you can take to work through your course. Each costs $80 and can be taken through the ACA site at http://www. americancaregiverassociation. org. Check https://www. caregiverlist. com/Caregiver-Training-Requirements-By-State. aspx to see what your state’s licensing or certification requirements are for non-medical caregiving personnel. Ensure you bond all your employees. Bonding is a process by which you provide a guarantee that any client who successfully charges one of your employees with theft in court will be repaid up to $5,000. For this reason, conduct rigorous background checks on all employees. [16] X Research source
Introduce yourself to hospital discharge planners at local or regional medical conferences. Hand them your business card and a brochure with information about your business. Explain that your business is expanding and looking for more clients. You could also call them on the phone or send them an email to the effect of: “We are a growing in-home caregiving business that puts the needs of our patients first. We would like the opportunity to partner with your institution to better fulfill our patient-driven mission. ” Propose a tour of your offices. Inquire as to what certifications or services the hospital expects the in-home caregiving agencies it works with to have.
Depending on what services you offer, syringes, sterile needles, stethoscopes, dialysis machines and other medical tools and technology might be necessary As technology improves and you make more types of medical care available, you will need to update and improve your medical equipment.
Enlist the aid of a web designer to help you develop a professional website. Your site should include contact information, a list of services your business provides, testimonials from satisfied customers, and images of the happy customers you’ve provided care for. Maintain a blog about the joys and challenges of in-home care to demonstrate that your business is serious and passionate about caregiving. Get some brochures printed advertising your business and the services it provides. Keep several brochures in the main office of your business. This way, when potential clients inquire about your business, they can leave with the information in your brochure and consult it later. Inquire at local hospitals, doctors offices, and VFW halls about leaving some there for potential clients. Obtain business cards with your name, your company logo, and position. Distribute them when meeting with someone interested in your business.
On average, a new home care business will need $50,000 – $75,000 to get started.
The SBA has a number of attractive loan-guarantee programs. These programs require another lender to provide the loan, which is then guaranteed by the SBA. The most logical one for a new in-home caregiving business is the 7(a) Loan Program, which is available to new businesses. For loans of less than $150,000 (an amount your in-home caregiving business is unlikely to surpass), interest is set at zero percent. You can start working on an SBA 7(a) loan application at https://www. sba. gov/loans-grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a/7a-loan-application-checklist.
Look for local, private, and state grants in addition to the big federal grants. Community development corporations are a great option for funding. [21] X Research source Always apply early, follow all the directions in the application, and ask lots of questions of the grantor.
Carefully research the company or companies you’re considering opening a franchise under. Request and review the Franchise Disclosure Document. Look at current market trends and the company’s history. Is the franchise facing stiff competition from a new up-and-coming brand? Is the brand in good standing locally and nationally?
If you can procure your own office supplies, software, and marketing budget, you’ll be able to save money on the contract by accepting a lower level of assistance.
