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How Much Does it Cost to Start a Home Healthcare Business?

brightstar home healthcare business

Updated October 8, 2020

If you’re starting your own home healthcare business, there are many factors to take into account. One of the most important is the potential costs – from initial investment to site selection and hiring, among others.

Startup costs are one of the first things to consider. In most cases, it’s easy to drastically underestimate the amount of investment – both time and financial – necessary to start your own business.

Here are several factors to take into account when deciding to start your own home healthcare business, which should help you approximate a realistic budget and timeline:

Medical Skilled Home Healthcare Agency vs. Non-Medical Homecare Agency

Many industry newcomers do not realize the distinction between a skilled medical home health agency and a non-medical home care agency. Unsurprisingly, there will be a difference in the amount of money and time you’ll need to start up a non-medical or skilled care agency.


Skilled medical home healthcare agencies administer licensed nursing care and rehabilitation therapy services under a physician’s orders. The startup costs for these types of home care agencies are understandably higher. Typically, the profit margins are higher, too, once the business gets up and running. For example, the combined average revenue for BrightStar Care (first locations only) that operated for all of 2019 is $1,925,681.*

Non-medical home care services include personal care, assistance with daily living activities, meal preparation, housekeeping and transportation. These services are ideal for individuals with developmental disabilities and for seniors who want to remain safe and comfortable at home, but might not need skilled nursing or therapy services.

BrightStar Care franchise owners operate skilled medical home healthcare agencies with a Director of Nursing - a registered nurse - who oversees the standards of care delivered to clients.


Financial Investment

Many of the initial costs incurred will include licensing expenses, administrative work and expenses of the care providers. Additional costs include computer software and hardware, training, consulting and the costs of commercial office space.

Finding the right systems for every facet of your startup business can be challenging as a new entrepreneur. But, a franchise model takes care of these areas for you. Not only does the franchise model provide proven systems and a framework for success, but the expenses of getting your agency up and running are all included in the initial franchise investment. This circumvents any problems you may have from unforeseen costs.


To open a BrightStar Care home care agency, you can expect an initial investment of $101,656 to $169,414.** This includes the:

  • Initial franchise fee
  • Office space, supplies and utilities
  • Furnishings and signage
  • Computer and hardware
  • Marketing materials and advertising
  • Insurance and licensing
  • Training, travel and living expenses

Click here to see a complete list of expenses and the specific cost breakdown of the investment.

Time Investment

Anyone considering starting a home care business from the ground up should develop a working budget for three years. This will provide them ample time and resources to make sure their business is starting off on the right foot, and they have enough time to perfect operations.


During the first year as an owner building their home healthcare agency from the ground up, the most important steps to take for your business are:

  • Name and logo development
  • Policy and procedure development
  • Licensing and regulatory compliance
  • Marketing and business development
  • Computer software and hardware purchasing and set-up
  • Staff recruitment, onboarding, training and retention
  • Office space rental, purchase of supplies, equipment and furniture
  • Direct personnel salaries and expenses calculations

Franchise Model Saves Time

Within a franchise model, all of the above-mentioned systems and processes are in place – cutting your startup time down from three years to roughly three to six months. This provides franchisees a significant competitive advantage, along with allowing them to start doing the work they love much faster than independent operators.


A franchise business model can provide the right guidance along with established systems. You can look forward to owning a successful home healthcare business and enjoying the rewards of doing meaningful work that improves peoples’ lives every day.

Do you want to learn more about BrightStar Care? Download our free franchise report here!


*2019 average unit revenue for all first franchise locations that were open 12+ months as of 12/31/2019, per our 4/1/2020 FDD. - Item 19

**See our 4/1/2020 FDD for more details

Disclaimer: A new franchisee’s results may differ from these represented performances. There is no assurance that you will do as well and you must accept that risk. This offering is made by prospectus only.

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