Why Healthcare Startups Fail: Top 5 Reasons

Learn more about healthcare startups

According to Forbes, 90% of all startups fail. As for those in the healthcare and social assistance field, only about 57% make it past five years. Meanwhile, in the medical technology sector, upwards of 75% of U.S.-based, early-stage medtech companies never find success, according to TTi Health Research & Economics.

Learn the top reasons why healthcare startups fail so you can be prepared for the challenges that lie ahead when running your healthcare business. Get the insights. 

1. Running Out of Cash

Mismanagement of funds or failure to raise enough capital is the most common reason for any business, not just healthcare startups, to fold. A CB Insights study found that 38% of unsuccessful startups ran out of cash or failed to raise new capital. The healthcare industry is especially tough. Managing cash flow is challenging because the sales cycle in healthcare is particularly long.

One area where medical businesses lose funds is putting too much money and effort into pilot programs. Many companies underestimate the amount of effort required to have a successful pilot. You want to put the right amount of resources into the program to gain traction and revenue without going overboard. There’s a fine balance needed.

One way to skip the pilot programs is to invest in a franchise. A Place At Home allows seniors to age safely in their homes. We’ve already gone through the trials and tribulations that come with healthcare startups, so you don’t have to. Instead, you’ll receive our proven blueprint for building your own in-home senior care business.

2. Not Enough Market Demand

In that same CB Insights study, research showed 35% of startups fail because there isn’t enough market demand for their products or services. Although a medical technology company can have multiple potential paths for its product or service, they typically start with the one that the founder or CEO is most experienced in. But, this path might not be where the highest demand is. So, you should perform extensive research and determine which direction provides the best market size, competitive landscape, and highest potential for patient adoption.

3. Product or Service Doesn’t Fit Workflows

All jobs in the healthcare field are essential, making their workflow vital to saving lives and treating patients. You might think your new technology will make their lives easier, lower costs, or improve patient outcomes, but the adoption period might turn them away from using it. Facilities and offices usually have a well-established workflow model; anything that disrupts it could come with pushback.

4. Flawed Business Model

The CB Insights study found that nearly a fifth of all startups failed because of a flawed business model. The most common reasons a business model fails are because their profits and losses don’t add up or its story doesn’t make sense. This basically means that the company built the product or service on incorrect assumptions about the consumer. Or in other words, there’s no real market for the product or service.

5. Regulatory or Legal Issues

The medical field comes with lots of hoops to jump through. Some startups try to skip the regulatory approval process and go directly to the consumer. For some companies, it’s worked. But it leaves you hoping your customers are okay paying out-of-pocket for your health service or product. While the process can seem lengthy and expensive to go through, receiving federal approval, in the end, might help your business thrive.

Healthcare Startups vs. Medical Franchising

Concerned one of these five reasons might be what brings down your new healthcare business? Consider franchising. There are several medical franchising routes, from at-home care to urgent care centers or physical therapy offices. While the initial investment costs are higher than possibly a startup, you know there is already a demand because the brand is thriving in other locations. The franchise provides a proven business model, allowing you to get up and running efficiently. Good franchises will walk you through all the licensing and regulation steps to start a medical business. They already know the ins and outs, so take advantage of it.

Benefits of Homecare Business Vs. Medical Business

Forget the hassle of dealing with insurance companies and stricter regulations of medical businesses. Instead, learn how to start a home health agency like A Place At Home. The overhead costs and startup costs are kept lower for several reasons.

First, you don’t have to hire medical providers like doctors, mid-level practitioners, or nurses. Caregivers provide our clients with exceptional homecare. This factor keeps your staffing costs lower. Then, your professional liability insurance is lower because you’re not providing medical services. Lastly, since you’re not providing physical or occupational therapy to your clients, you’ll need fewer supplies, keeping overhead costs lower. So, you can provide your community with compassionate, senior-focused, and customized in-home services.

Ready to jump into the homecare industry? Submit a franchise form to get started.

How to Get Your Home Health Care Business License In 7 Steps

How to Get Your Home Health Care Business License in 7 Steps

Considering joining the growing home care industry? We don’t blame you. Currently, the home care providers market is worth $120 billion in the U.S. That number is only expected to grow as an aging population looks to live in their homes as long as possible.

Federal, state, and local governments heavily regulate the industry. The regulations are to protect you and your patients. So, when starting a home health care business, one of the first things to do is get a home health care license. Here’s a look at the steps involved in how to get a home health care business license.

1. Choose Between Medical vs. Non-Medical

The type of services you provide could change the type of license you need and how you get it. For example, to offer medical services like medication administration, you’ll need to hire medical professionals before you begin the process of licensing. However, this comes with more liability for your business.

You could stick to non-medical services and provide companionship or other daily activity assistance. Some states will still require skilled medical professionals to be hired to meet the requirements for a license for non-medical home care agencies.

2. Find Out Your State Requirements

Whether you’re looking to offer medical services or operate as a non-medical home care provider, there are several steps to take before accepting clients. First, research what your state requires. Not all states require licenses for home care. CareAcademy finds three that don’t: Iowa, Massachusetts, and Michigan You can typically find these requirements on the Secretary of State’s website.

Depending on your state’s requirements, you’ll need to attend training, and state officials or an accrediting body will perform inspections. The process of getting your business license can take three to 18 months, depending on your state. Some states will provide you with a provisional license during the process. States with an increase in applications for home care licenses might take longer.

There are 18 states that require an inspection visit before receiving a provisional license for non-medical home care or home health care companies. Then, after that first inspection, follow-up inspections occur every so many years, again depending on the state.

More than a dozen states require home health care agencies to file a Certificate of Need before applying for a business license. This certificate helps state authorities monitor the supply of providers in the health care market. It evaluates the local demand before allowing a new facility or agency to open. Apply for your certificate of need first, before your license, just in case you need to reconsider your territory.

A benefit to owning an A Place At Home franchise is our market research. We know what areas and territories a home care agency can thrive in. All our base franchise unit territories have 40,000 qualified senior residents.

3. Create a Business Plan

For some license registrations, you’ll include a business plan. Generally, it’s good to have one completed before you finalize your business setup anyway. Your business plan will outline core business activities and how you plan to achieve goals. These documents include an executive summary, products, and services offered, a market analysis, marketing strategy, financial planning, financial projections, and a budget.

4. Register Your Business With the State

Before you move on to getting your license for your non-medical home care agency, register with your state through the Secretary of State and the State Department of Revenue Services. Typically, this step is as easy as filing your business name with the state and local governments.

5. Set Up an Office

Secure an office space for your business. You’ll need locked cabinets to store client and company records. In addition, most license applications will require you to include a copy of your lease.

Only a small executive suite is necessary when you become an A Place At Home franchise owner. It allows you to perform private, professional interviews with your care staff members.

6. Follow State Training Requirements

Study the mandated training for you and your employees. The requirements vary by state. Ensure it’s all completed fully before applying for a home health care license. Most states require everyone have CPR/AED training, even if you’re a non-medical home care agency. Caregivers have specific training requirements to follow.

7. Apply For Your Home Health Care License

Finally! Once you’ve completed all the previous steps, you have made it to the end of our guide on how to get your home health care business license. You can submit your license application. Fill out all the necessary forms and provide the proper materials to your state to receive your licensing.

FAQs on How to Get a Home Health Care Business License

Still have questions after reading through the guide? Here are some frequently asked questions surrounding the licensure process:

  • How much will it cost?
    Like most other things, this varies by state. Fees can either be a flat rate or based on the number of employees. For example, a Texas home and community support services agency license costs $2,625.
  • How often do I have to renew?
    This is another state-by-state regulation, but it can also depend on how much you want to pay to extend your license. States typically require a renewal annually or every two or three years. The more you pay at one time, the longer the license period is.
  • Do I still apply for a license if I buy into a franchise?
    While you’re paying to join a trusted brand, you still have to follow the rules and regulations of your state for home care agencies. So, yes, you still have to go through the steps of how to get a home health care business license and pay for it, even when you’re affiliated with a franchise system.

Let A Place At Home Guide You Through the Process

Instead of worrying about navigating how to get a home health care business license by yourself, let us help you at A Place At Home. By becoming an owner with us, you’ll receive not only licensure guidance but also a step-by-step process on how to start a home health agency. You’ll follow our five-step CARE track to gain the tools you’ll need for success. You can capitalize on multiple revenue streams — all while being backed by a reputable national brand that people recognize. Those opportunities include care coordination, finding senior living alternatives, and staffing services.

Don’t sweat the small steps. Let A Place At Home lead you to open your own home care agency. Submit a franchise form to get started.

4 Home Care Industry Trends In the Post-Pandemic World

The demand for home care has skyrocketed since the pandemic, with no signs of slowing down. See current home care industry trends taking on the post-pandemic world.

1. Growing Demand For Home Health Care

More seniors require some long-term care. The Economic Policy Institute (EPI) finds that 70% of people who reach 65 years of age will need long-term care. Furthermore, the number of people in that age group will be 44% greater, or 25 million people, by 2040.

On top of that, people are looking to stay in their homes for as long as possible. AARP notes that more than 80% of adults prefer to live in their homes instead of nursing homes or other institutional settings. So that’s making families turn to home health care agencies to care for their aging loved ones. Dustin Distefano, CEO of home care franchise A Place At Home, talked with CareAcademy about this issue. He’s seeing assisted living and memory care communities that used to have waiting lists are now at 70% to 80% occupancy, while home care agencies have waiting lists.

2. Caregiver Shortage to Continue

The number of caregivers in the U.S. doesn’t meet the growing demand for home health care services. In June, American Health Care Association (AHCA) and its National Center for Assisted Living (NCAL) found that 73% of nursing homes are concerned they’ll have to close due to staffing issues. That same report shows that more than half of nursing homes are limiting the number of residents due to staffing woes. This is leading families to turn to home health care agencies for help.

Unfortunately, experts say the lack of caregivers will continue as a home care industry trend over the next year. According to EPI, 1 million additional home health care workers are needed by 2029 to meet the growing demand for home health care.

Reports show that pay and training are the primary areas that employers should address to encourage more people to enter the field. In 2021, the Bureau of Labor Statistics reported that the median annual wage for home health aides was $29,430 a year. That comes to $14.14 an hour if the aides work 40-hour weeks. Workers say they want more training opportunities to earn a better wage and perform more specialized skills to help their clients.

It’s essential for business owners in this industry to address this trend and what their employees are asking for if they want to retain staff.

3. Need for Companionship Care Rising

More than one-third of adults at least 45 years or older feel lonely, according to a National Academies of Sciences, Engineering, and Medicine (NASEM) report. Loneliness comes with several health risks, including dementia and an increased risk of heart disease or stroke. It’s also associated with higher depression, anxiety, and suicide rates. Hence, many families are turning to companionship care to ensure their loved ones don’t undergo any of these hardships.

Some home health care franchises, including A Place At Home, have already noticed this trend. Our in-home non-medical services include companion care. That can look like enjoying the senior’s favorite hobbies, having stimulating conversations, socializing, opening and sorting mail, and teaching seniors to use email and social media.

4. Use of Technology to Monitor Patients

Another trend that could keep you competitive in the home care industry is the use of technology. The pandemic showed us we could stay connected without meeting face to face, including through telehealth in the medical world. The downfall with telehealth appointments is that they don’t allow medical providers to collect vital signs like blood pressure and oxygen levels. New technology like remote patient monitoring (RPM) can solve this problem. It works by having patients collect their vital signs and submitting them so medical professionals can analyze the data. They would typically do this throughout the day.

This technology is expected to help lower the costs of medical care for seniors by reducing their hospitalizations. About 85% of older Americans suffer from at least one chronic health issue like diabetes, asthma, heart disease, and COPD. Through monitoring vitals with RPM, medical providers can help manage chronic illnesses from afar and help them avoid any costly downturns. In addition, medical providers will turn to home health caregivers to assist with this monitoring.

Take On These Trends With A Place At Home

As you can see, the home care industry is trending upward. Get a head start in it by joining a franchise like A Place At Home. You’ll help meet the growing demands of this industry and provide much-needed care to the senior community when you become a franchise owner. We offer multiple revenue stream opportunities, including helping staff agencies in your community solve labor shortages through staffing services. Take the next steps of owning a home care business by submitting a franchise form.

A Place At Home Named 2022 FranServe FRAN-TASTIC 500 Franchise


A Place At Home has been named a FRAN-TASTIC 500 Franchise by the world’s largest franchise consulting and expansion organization, FranServe, Inc.

Alesia Visconti, CEO and President of FranServe Inc. says, “Franchising helps people change their lives and take control of their future. It’s a community that celebrates the Life-Work Balance. A brand that makes our annual “FRAN-TASTIC 500” list shows that it values a fun and rewarding lifestyle and emphasizes people fulfilling their dreams of business ownership through franchising. It’s a brand that deserves recognition for going the extra mile and for being, well, fran-tastic!”

A Place At Home celebrates its 10th Year Anniversary in 2022. According to the organization’s CEO, Dustin Distefano, the recent brand recognition marks extra significance this year.

“We are so honored to recently be recognized by respectable businesses such as FranServe, Franchise Business Review, Franchise Journal, Entrepreneur, Best of Home Care by Home Care Pulse, and others” shares Dustin. “2022 marks a decade of A Place At Home building something special in the senior care industry.”

Jerod Evanich, President and Co-founder of A Place At Home, shared, “This recognition is testament to not only our brand but also the culture we’re building here. The support teams, franchisees, and Caregivers are representing this brand to thousands of stakeholders across the country every day.”

Founded in 2012, A Place At Home’s senior-focused continuum of care model was deemed the ‘next-gen home care franchise opportunity by 1851 Franchise. A Place At Home offers multiple revenue streams including in-home care services, care coordination, senior living alternatives, and staffing solutions. This unique recession-resistant approach in a rapidly growing industry will likely earn A Place At Home many FRAN-TASTIC recognitions in the years to come. 

For more information about our emerging brand, inquire today.

Third Annual Franchise Convention Brought Franchisees Back Together

After hosting the APAH Franchise Convention virtually last year, it was an amazing experience to bring everyone back together. The Third Annual Franchise Convention was held on September 15-17, 2021 in Omaha, Nebraska. With so many businesses facing hiring and retention challenges, this year’s theme and topics surrounded – “Elevate Your Team.” The speakers and roundtable discussions fostered an environment of learning, ideas, and discussion for how A Place At Home can best serve our caregivers as we move toward 2022.

This year’s keynote speaker and Recruiter.com’s “Top 10 Company Culture Experts to Watch”, was Cara Silletto. Silletto brought her expertise as a retention expert. She closed out the first day of the franchise convention with an engaging and inspiring presentation. She discussed the evolution of the workforce, and how leaders can evolve with their employees.

A Time to Connect

The franchise convention provided a wealth of knowledge and resources for franchisees. It also provided time for owners to connect with each other, some for the first time. Dina Jenney of A Place At Home – Philadelphia West, spotted Gary Lafreniere of A Place At Home – Merrimack Valley, across the room of Beacon Hills the first evening. The two opened around the same time during the pandemic and communicated virtually in their first months open. They met in person for the first time, as everyone gathered at the Welcome Reception. Home Care Pulse and KreativElement sponsored the reception. 

The next night the team enjoyed a cocktail hour at Spirit World. There were two custom, APAH-branded drinks created for the event. The evening, sponsored by Bookkeeping Express, CareAcademy, Commercial Interior Solutions, Franchise Resources, LLC, HR Systems, and Paradigm Senior Services, was another opportunity for everyone to discuss their ideas and bond further as business owners. The guests enjoyed a live jam session after dinner. Platinum Sponsor and long-time vendor, Bob Volpe, joined our own Franchise Development Coordinator, Mitch Benson, for a guitar duo. 

Franchisee Awards Ceremony

Our headquarters had an extra surprise for those attending. We flew Molina Schebell, National Caregiver of the Year, in from Florida. She spent the day at the spa before her surprise arrival at the awards ceremony. There she accepted her plaque and check for her outstanding care and devotion to her clients. Orange Park franchisees said, “Molina makes you feel like home.” It was obvious upon meeting her why she was such a strong candidate for the award.

Franchisees grew together through two days of meetings. They had fun together at the social events. Then it all concluded with a team event and awards ceremony at TopGolf. Volpe Consulting, Ideal Payroll Service, ClearCare, AgingCare, and INSPRO sponsored the ceremony. 

In our short 4 years as a franchise family, we have navigated major historical moments with determination and fortitude. The obstacles over the last year inspired us to innovate, adapt, and grow. Witnessing the franchisees continue to protect our nation’s seniors is a source of pride for us and them. The franchisor team was honored to recognize them with the following awards: 

And the Winner is…

Rookie of the Year: A Place At Home – Orange Park: In recognition of the top-performing franchisee in their first full year with A Place at Home.

Most Improved of the Year: A Place At Home – Little Rock: In recognition of the highest YTD growth rate from the previous year. 

Top Caregiver Satisfaction Retention of the Year: A Place At Home – South Portland: In recognition of the franchisee with the top caregiver satisfaction scores and retention.

Top Client Satisfaction of the Year: A Place At Home – South Portland: In recognition of the franchisee with the top client satisfaction scores in Home Care Pulse.

Brand Ambassador of the Year: A Place At Home – Little Rock: In recognition of the franchisee who consistently represents the A Place at Home brand, generating positive social reviews and engagement and fields validation calls.

Innovator of the Year: A Place At Home – Orlando: Recognizing excellence in proven creative strategies to collaborate with partners in order to support the overall A Place at Home strategic business objectives.

Top Performer of the Year: A Place At Home – Omaha: In recognition of the franchisee with the highest revenue in the past year.

Top Producer of the Year: Alex Caudill: In recognition of the owner with the highest revenue in the system.

Founders Cup Award: A Place At Home – Little Rock: One distinguished franchisee who has made major contributions to the brand. They play a significant role in the organization’s success receives this highly prestigious award.

Thank You to Our Sponsors

We want to recognize the many great sponsors who continue to partner with us to support our convention. Your attendance was a testament to your commitment to our APAH Franchise system. We all worked together through this challenging time. We’ll continue to use it as an opportunity to build an even stronger brand. We look forward to seeing you all in 2022. Not only for the our 4th Annual Franchise Convention, but also for the 10-year anniversary of A Place At Home.

Senior Care Franchise Opportunity in Tampa Bay Area

Tampa Bay Area Franchise

Headquartered in Omaha, NE – A Place at Home is looking to expand into the Tampa Bay Area.

Growing from 1 to 10 locations since 2017, A Place at Home is quickly becoming the fastest growing emerging Senior Care Franchise in the United States. As an award-winning in-home senior focused care company, franchise owners immediately gain access to a credible and trusted brand.

Territory with High Growth Potential

There are over 624,000 seniors age 65 and older within the Tampa Bay area including Hillsborough, Pasco, Hernando, and Pinellas counties. The number of seniors is projected to increase by 18.8% in the next five years. Seniors age 85 and older are set to increase by 36%.

Additionally, being with the A Place at Home franchise system will allow mass expansion opportunities. Once this territory is developed, the owner will understand the staffing model of the location and could potentially expand and become an area owner.

Proven Business Model With Multiple Streams of Revenue

One of the key advantages of being a franchise partner with A Place at Home is that we offer a tested method of success. We have already done the work and developed a proven and effective business strategy.

By providing a continuum of care throughout the aging process, we are there for seniors every step of the way. Not only does our senior-focused model offer solutions to clients, but it also supports diverse revenue streams for the business.

Hands-on Training & Support From the Founders

You will receive 40 hours of initial, hands-on training, and ongoing support. To support your achievement, we’re committed to providing the best possible interactive senior care training for your business growth. You will learn from insiders in the senior care industry; skilled professionals in the business and caring aspects of senior services. With A Place at Home franchises, you’re an independent business owner, but you don’t go it alone.

Interested In Becoming A Franchise Partner?

When you join our group of dynamic business owners, as franchisees of A Place at Home, you’ll have strong support, thorough training and valuable business resources to help you succeed. Contact us to learn more.

New Franchise to Open in Scottsdale, Phoenix

Innovative senior care model to be made available to residents this fall.

SCOTTSDALE, AZ, August 28, 2018 – Former Marine Alex Caudill is no stranger to the healthcare industry, nor to senior care. But he saw gaps in the local senior care scene, leading him to become the latest franchisee for A Place At Home, an innovative Senior-Focused care model. The new branch, located at 10601 N. Hayden Road, Suite 108 in Scottsdale, is scheduled to open later this fall.

Caudill has cared for seniors both personally and professionally, and has seen multiple family members and friends through assisted living, homecare, and hospice.

“Every person deserves high quality care, regardless of their circumstances. I believe every company that serves seniors should go above and beyond to make sure every person has a top-notch experience while they’re being cared for by others,” says Caudill. “Every person’s needs are a little different, and I appreciate the APAH model, which allows caring professionals to tailor the experience to every person.”

Caudill goes on to say he was impressed by the company’s accessibility and dedication.  “I aligned with A Place At Home’s core values, ‘We are CARE,’ because it stands for the core values I live by personally. Being compassionate, accountable, respectful, and ethical are core values I teach my kids and try to emulate on a daily basis. They help care for people who can no longer care for themselves. That is the epitome of selflessness and compassion. I can honestly say every time we’ll be caring for a senior we’ll be caring for them as if they were our own family.”

Caudill spent 10 years serving in the Marine Corps, both on active duty and on the reserves. He spent the next seven years holding multiple leadership positions in the healthcare industry, including operations, sales, marketing, and business development. This has given him an extensive education in leadership, sales, and the operational success of a healthcare company.

A Place At Home launched in 2012 in Omaha, NE. After experiencing explosive growth, co-founders Jerod Evanich and Dustin Distefano continued fulfilling their mission: to be Passionate Professionals Providing the Compassionate Care Solutions You Need, Where and When You Need Us. To that end, they began awarding new franchises across the nation. A Place At Home offers a unique “Senior-Focused care” model which provides a continuum of  in-home care, care coordination, community placement, and staffing services.

Distefano was especially impressed with Caudill. “Alex’s positive energy, military background and his personal experience caring for others—his father in particular—was a perfect fit for our CARE values. I am extremely excited to work with him and to get him up and going in the Phoenix market.”

“We are excited to bring on another franchisee with ambitions to help people and to grow their own A Place At Home business in their community,” adds Evanich.

Considering a Senior Care Franchise?

When you join our group of dynamic business owners, as franchisees of A Place at Home, you’ll have strong support, thorough training and valuable business resources to help you succeed. Contact us to learn more.

“It starts with a conversation,” stresses Distefano. “We are looking for people who align with our values. If your personal foundation is built on those values then we are happy to help you parlay your professional background and acumen into becoming a successful A Place At Home owner.”


Dustin Distefano, CFE
Co-Founder and Head of Franchise Development

O: 888-502-6310
F: 402-281-0736
E: dustin.distefano@aplaceathome.com
W: aplaceathomefranchise.com


A Place at Home (a NorEast Franchise Group) offers a range of customized in-home care services, care coordination and assistance in identifying and transitioning to senior living alternatives. The company is dedicated to preserving the quality of life for seniors by giving them the support they need to stay as independent as possible for as long as possible. Those who would like to explore franchising should contact the owners to start a conversation. Visit  aplaceathomefranchise.com or aplaceathome.com for more information.