Thinking about starting a homecare agency? It’s a lucrative idea.
The U.S. senior population is growing every day—along with their overwhelming desire to age at home. Homecare agencies are in high demand, and that demand will only grow in the coming years. In fact, the elderly care market is currently valued at $53.29 billion. Projected to expand at a compound annual growth rate of 9% between now and 2032, the industry will be worth an impressive $98.19 billion by the end of the forecast period.
With market growth on the horizon, now is the ideal time to consider joining this booming industry. Curious about how to start a homecare agency? Our guide will walk you through every step—from licensure to hiring to growth.
Steps to Opening a Homecare Agency
As you research how to open a homecare business, you’ll likely come across the following tasks:
Step 1: Determine What Services You’ll Offer
In homecare, there are two main types of services: medical and non-medical homecare.
- Medical homecare requires clinical licensure, skilled nurses, and licensed physical therapists to deliver care.
- Non-medical homecare focuses on providing seniors with companionship and assistance with daily living activities by highly trained, compassionate caregivers.
Step 2: Choose a Business Model
There are multiple avenues you can choose from when starting a homecare business:
- Independent agency: Starting your homecare agency independently will give you more control over your operations, but this path does not come with any additional support. Everything from operational processes to marketing tactics will need to be curated on your own.
- Franchise model: Rather than starting your business completely from scratch, partnering with a franchisor gives you a bit of a head start. With built-in brand recognition, branding, franchise training and support, and proven systems, you’ll have all the tools you need to launch a thriving homecare business.
Step 3: Register Your Business
After you have named your business and have registered with your state’s business division, apply for an Employer Identification Number (EIN) through the IRS. Then establish a legal business structure such as a Limited Liability Company (LLC) or corporation, depending on your tax and liability preferences. Finally, open a dedicated business bank account to manage incoming payments, payroll, and other expenses.
Step 4: Obtain the Right Licensing and Certifications
Home care agencies must comply with local, state, and federal regulations. Requirements will vary depending on where you’re operating and the type of care you’ll provide. Always consult your state’s Department of Health for up-to-date requirements. If you’ve chosen to work with a reputable franchise brand, their development team can help you through the process and ensure nothing is overlooked.
Step 5: Secure Insurance Coverage
You will need multiple types of insurance coverage to fully protect your business. This includes:
- General liability insurance
- Professional liability insurance
- Workers’ compensation
- Auto insurance (should you offer transportation services)
Skimping on any of the above not only leaves your business vulnerable but can also lead to costly mishaps.
Step 6: Recruit and Train Your Team
As the heart of your homecare agency, it’s important to hire compassionate, reliable people who not only have the right credentials, but also align with your mission and values. After hiring your team, establish a structured onboarding and training process. Include information on your agency’s policies, culture, and expectations. Be sure to review state-specific protocols and documentation requirements. Lastly, provide ongoing professional development opportunities to support career growth and retention.
Step 7: Market Your Services Locally
Consider establishing referral relationships with hospitals, rehab centers, and senior living communities. Go beyond just word-of-mouth and create a multi-faceted marketing strategy that utilizes search engine optimization (SEO), local Google Business listings, social media ads, email campaigns, and print collateral to get the word out about your homecare agency.
Step 8: Launch Your Homecare Business
The crowning moment in your how to start a homecare agency research journey, it’s time for launch. In this step, the work is only beginning. You’ll want to monitor KPIs such as client satisfaction, caregiver retention, and revenue. Consider collecting feedback from customers and employees so you can adjust your operations where needed. You’ll also need to stay compliant with regulatory requirements to ensure everyone’s safety.
Franchise with A Place At Home
If handling all the above on your own sounds overwhelming, there’s always the option of partnering with an established franchise like A Place At Home. Whether you’re looking to leave corporate life, exploring a career change as a nurse, or considering an investment in a mission-driven business, in-home senior care offers both impact and income potential.
Offering brand recognition, training and support, proven operational systems, marketing guidance, and even multiple revenue streams, A Place At Home is a great opportunity for new and seasoned entrepreneurs looking for their next venture.
To qualify for an A Place At Home franchise, interested candidates must have a net worth of $250,000 and at least $50,000 in liquid assets. Franchisees can expect to spend between $91,195 and $166,012 in startup costs, which includes our initial franchise fee of $49,500.
To learn more about our franchise opportunity, fill out our franchise inquiry form, and a member of our team will be in touch with you to discuss your next steps.
