How Much Does it Cost to Start a Home Healthcare Business?
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 some things to factor into your decision 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 healthcare 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 medical 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 healthcare agencies is understandably higher. Typically, the profit margins are higher, too, once the business gets up and running.
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.
Many of the initial costs incurred will include licensing expenses, administrative work and expenses of the care providers. Additional costs that can be difficult to estimate include computer software and hardware, training, consulting and the costs of a 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 estimated expenses of getting your agency up and running are all included in the initial investment range of the franchise disclosure document of the franchise model. This circumvents any problems you may have from unforeseen costs.
Anyone considering starting a home healthcare 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 independent operator, the most important steps to take for your business are:
- Name and logo development
- Policy and procedure development
- Licensing and regulatory compliance
- 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
- Start-up funds to show financial viability for state and Medicare
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.