How to Start a Private Home Care Business: A Step-by-Step Guide

It’s no secret that the home healthcare sector has skyrocketed in recent years. The global home care market is projected to reach a value of over 662.67 billion USD by 2027. Employment in the industry is also slated to increase by an additional 33% by 2030. In other words, the market is ripe for those looking to establish their home care agency.

Over time, patients have developed a preference for home care providers over nursing homes. Home care allows for a more personable, comfortable, and affordable care option. And with a rapidly growing senior population has come an increased demand for senior care home care services that can cater to specific conditions. Now, the industry is searching for providers to fulfill that market demand.

With continued growth for home care agencies on the horizon, you may be wondering how you can get involved, too. If you’re curious about how to start a private home care business, you’ve come to the right place. In this post, we’ll provide eight actionable steps business owners can take to establish a new private home health care agency, from creating a business plan to recruiting staff.

Step 1: Define The Home Health Care Services You Intend to Provide

When determining how to start a home health agency, defining the type of business you want to establish, and the potential services you will offer is the best place to begin. Many home health care services are available, ranging in specialties from nursing services to companionship, and these services are typically grouped into medical or non-medical focuses.

Medical home care businesses undertake clinical patient needs from the comfort of a patient’s home. Medical-based home care businesses incorporate the use of licensed medical professionals, including registered nurses and physicians, who administer medical and rehabilitative treatment.

Non-medical home care businesses perform only non-clinical patient care tasks. Non-medical home care services are often required by senior citizens, permanently disabled, or terminally ill patients who can no longer complete daily tasks independently.

Step 2: Create a Business Plan

The next step in creating a home healthcare business is to write a thorough business plan. Remember that a business plan serves as the roadmap to inform every aspect of your operations. That implies that it will guide your daily activities from the onset to the future.

Key elements to include in your business plan:

  • Target market identification, including patient demographics and condition specifics
  • Care type definition and specification of medical or non-medical services
  • Outline how services will be delivered
  • Financial projections and goals
  • Competitor research
  • Marketing strategies
  • Team structure

You need a strong business plan to support your ideas when venturing into the home care industry. For comprehensive guides on caregiver management and operational efficiency, visit and empower your home care agency.

Step 3: Budget for Start-Up Costs

If you plan to enter your business venture without counting the cost, you may set yourself up for disaster. Cost is an aspect you simply cannot afford to overlook when starting a home care agency. It dictates how you will start the business and how you expect to grow.

Expenses to budget for:

  • Commercial Office Space
  • Regulations and Licensure
  • Equipment and Software
  • Recruitment & Hiring Costs
  • Ongoing Staffing Costs

Step 4: Create Your Business Entity & Define Business Structure

Those starting a home health care business will be required to establish their business entity in their state of operation legally. A good first step here is to brainstorm a business name that can be used when filing the appropriate forms with the state and Internal Revenue Service (IRS) to establish your business entity.

With the name of your home health care operation in hand, you’re ready to select your business structure. Depending on your business’s specific ownership and layout, you may choose from a Sole Proprietorship, Partnership, Corporation, or Limited-Liability Company (LLC) structure.

A home care business can request an Employer Identification Number (EIN) from the IRS.

Step 5: Develop Operational Procedures

Operational procedures are the key to an effective private home health care business and act like a rulebook for you and your staff to follow. Failure to establish operating procedures before taking your first patient can result in numerous concerns, from reduced patient satisfaction and poor employee productivity to costly compliance issues.

Key areas to address in operational procedures:

  • Caregiver management requirements
  • Financial procedures for income and expenses
  • Security measures for managing patient records securely

Step 6: Recruit, Hire, and Train Qualified Staff

Hiring capable and qualified professional caregivers is critical. Your staff directly impacts the success of your home care agency. So, over and above skill and experience, you also need to find out why particular applicants believe they are the best fit for the position you are hiring for.

Vet freshly recruited candidates with solid interview questions. Consider offering training and certification opportunities to new and existing employees to help elevate patient skills and support continuous operational improvement.

Step 7: Market Your Home Care Services

A strong marketing strategy is arguably the best way to get clients for a home care agency. Draft an initial marketing plan that includes a mix of traditional and digital marketing strategies. Traditional methods help capture the attention of potential clients in your local area, while digital marketing solutions incorporate an expansive internet reach to better target specific age groups, patient types, and treatable conditions.

Digital marketing solutions to consider:

  • Search engine optimization (SEO)
  • Email marketing (newsletters, promotions, etc.)
  • Mobile marketing (text messaging, mobile applications)
  • Social media advertising (Facebook, Instagram, Twitter)
  • Affiliate marketing (a collaboration of local health professionals)

Step 8: Launch and Learn

Once everything is set, you’re ready to launch your home care agency. After you’ve begun serving patients, focus on improving the delivery of your home health care services. Identify inconsistencies, inefficiencies, and weak areas that require improvement. Patient feedback is highly beneficial in this stage, as these direct and honest opinions can guide continuous improvement.

Keep learning by attending seminars, engaging with mentors in the home health care industry, or conducting online research. Continuous education is necessary for the growth and long-term success of every home health care agency operator.

Looking for customizable care plan templates and organizational tools? Explore the free resources provided in the Home Care Printables Free Template Selection for streamlined operations.

Final Thoughts

As you navigate through the process of starting your private home care business, remember that continuous learning and adaptation are key to long-term success. Home Care Today is here to support you every step of the way, offering resources, insights, and a community of like-minded individuals dedicated to providing exceptional care.

For additional tools and resources to enhance your home care services, be sure to explore Whether you’re seeking organizational templates, care plans, or educational materials, is your go-to source. Boost your agency’s efficiency and quality of care with the valuable resources available at your fingertips.


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