How to Start a Home Care Business

Starting an at-home care business empowers individuals to offer essential services to those in need right from the comfort of their homes. Read our guide to discover how you can transform your passion for caregiving into a thriving venture.

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The home care business is a growing industry thanks to increased life expectancy and the popularity of aging in place at home. According to IBISWorld, the industry has been growing at a rate of 3.7% a year, and revenues for the US are expected to reach $99 billion in 2019. In addition to being a good business opportunity, the caregiving profession can be extremely rewarding for people who have the dedication, compassion, and patience to deal with both the people they provide services to and their family members or other caretakers. Also, home care business owners will need to know and comply with various regulations.

1. Do Complete Research

Before you venture into starting your own business, you want to do your own research. It may be a great idea, but is there a market for it? Who is going to be your target market? What services are you going to offer? Other actions to take include checking the census to ensure that the area you’re targeting is conducive to your business. This Home Care Franchise Sector Report contains detailed information about the home care industry. While the information is targeted at potential franchisees, the sector information applies to any home care industry business.

In addition to looking for general industry information, you can search your locations for areas with residents who are aged 60 and over and retirement communities. Find out what home care services are already in your area. Will you be able to successfully compete with them? What will differentiate your services from theirs? Stay open and flexible as you develop your plan as you are sure to be exposed to other elements that can prove beneficial to the success of your business.

2. Comply with State Licensing

Dependent on the state in which you reside, you’ll be required to obtain the proper state and city licensing for your home care business. The proper guidelines and restrictions should all be in place, so you can legally run and operate your new enterprise without any restrictions, fines or penalties. You can hire an experienced company to complete the application and associated documentation, or take the time to wade through the requirements alone. Just make a note that doing things right from the start can save you future time and headaches.

Did you know that you can save time and stay organized by hiring a top LLC company to handle legal tasks like business formation and registered agent requirements? ZenBusiness (the #1 alternative to services like Inc Authority and Legal Zoom) is a fantastic example of this.

3. Compare Buying a Franchise to Staring on Your Own Agency

Buying a home care franchise could shorten your learning curve, and provide you with benefits such as name recognition, training, and marketing materials. However, you should weigh those benefits against the initial cost, ongoing royalty fees and need to follow the franchise’s rules for running your business.

To help make your decision, estimate your costs and potential profitability both as a franchisee and as an independent agency.  If you decide on franchising, be sure to compare franchises and learn all you can about buying a franchise.

4. Create a Business Plan

You can improve your chances for success by creating a solid, detailed business plan. The plan should describe the market, what sector of it you’ll target and what services you’ll provide, how you’ll organize and manage the business. It will also detail all the financial aspect of the business, so you can predict what your startup funding needs will be and when you’ll break even. Down the line, it can be used as a point of reference if you need a reminder of your original goals and keep you on a straight path toward meeting your future goals and objectives. Starting out on your own can be cost-effective. However, adding staff to the equation as you expand can be expensive, so make your projections as robust and thorough as you can. You can always revise it later as your business growth dictates.

5. Creating the Business Structure

There is quite a bit of information that goes into the set-up of your business. This includes determining the business entity such as S Corporation, Sole proprietor, Limited Liability Company, Partnership, etc. Many online legal sites can walk you through the incorporating procedure or an attorney or CPA can prove beneficial if you have any questions or concerns. You’ll also need to obtain a Federal Employer Identification number, business checking account and a company credit card.

👨‍🦳 Need more information about business entity types? Check out this guide that compares the pros and cons of different business structures →

6. Have Appropriate Training

Starting and running a home care business can prove successful with the appropriate training and education – even if it’s on the job. You’ll also need patience, strong communication skills, and attention to detail. If you’ve been employed in this line of work before, and you’re venturing out on your own, you’ll know exactly what it takes to survive. You’ll also know what’s expected and how to treat your clientele.

7. Don’t Cut Corners When Hiring Caregivers

Since your reputation will be dependent on the care you give, you want to hire only the best caregivers. This should include performing background checks and then providing employees with extensive training. Your staff goes out to the world as your personal representative, so spending time thoroughly interviewing candidates and checking references can allow you to find the most compassionate and hardworking individuals.


You’ll find understanding and compassion toward your clients, and treating your employees with respect and thoughtfulness will be key to the success and advancement of your home care business. Keeping an eye for detail, a willingness to be receptive to new ideas and an ability to adapt to trends, you’re sure to stand out and above the competition.

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