The number of Americans aged 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, and research suggests that 88% of adults over the age of 50 want to age in place. This means that in the coming decades there will be a tidal wave of older adults who will need homecare services in order to safely age in their homes as they desire. For those who are seeking their next business venture, those statistics make starting a homecare agency look like a great investment opportunity. But starting any new business can be overwhelming, as it’s a big undertaking. That’s why we have compiled a list of the steps homecare provider hopefuls can follow to get their new business up and running.
Before starting a business, it is important to conduct market research. This process involves gathering important information about your competitors and customers in order to create a winning business strategy. The Small Business Association (which has many wonderful resources businesses can use to get their new venture off the ground) recommends answering the following questions as you begin your market research:
The use of surveys, focus groups, and interviews can help you answer these questions, and prepare you to create your business plan.
As with any business, there are steps you must take for it to be a legal entity and, in this situation, a certified homecare business. Every state has different procedures and licensing requirements for non-medical homecare businesses, so it’s best to check with your state’s department of health to see what will be required when it comes to licensing, insurance, and registration. Beyond licensure, you will need to incorporate your business, and obtain your tax ID number (also called an E.I.N number).
Creating a business plan will help you think through the different steps involved in starting and growing your business, but potentially even more important, it’s what you will leverage to get funding or bring on partners. Check out the SBA business plan templates to get started.
Consider how much funding you’ll need based on the structure of your business. Will you need to pay caregivers right away? How many office staff will you have? Where will your office be located? Do some research around available grants for people opening a homecare business. There might be some surprising funding avenues you can utilize to get your new business up and running.
A sales and marketing plan is critical to the success of a new homecare business, as this is how you will build your census. Consider taking the following steps to get started:
With the caregiver turnover rate sitting at 64%, and a caregiver shortage making recruitment difficult, it’s no surprise that 65% of agencies said the shortage has had a negative impact on their business. This is why if you are planning on opening a homecare agency, you must have a recruitment and caregiver retention plan in mind. Consider implementing the following strategies:
Achieving compliance is a vital part of starting and maintaining a homecare agency. If providers aren’t compliant, then they will not be able to get paid for the services they deliver. Ensure awareness of the following compliance requirements:
You’ve got your business set up, and now it’s time to hire your first staff members. Consider hiring for the following positions:
As mentioned above, in order to be complaint, homecare providers need to utilize an EVV software. The HHAeXchange software meets these compliance requirements, and with flexible EVV methods including our GPS mobile app, telephony, and FOB devices, providers can make it easy for their caregivers to remain EVV compliant.
But homecare providers need software for more than just EVV compliance. Homecare software also improves overall efficiency, compliance, and decreases administrative time and costs.
HHAeXchange offers the only homecare management software that connects providers, state Medicaid programs, managed care organizations (MCOs), and caregivers through one platform. Additionally, within the HHAexchange platform, providers can manage clients and caregivers, and automate time-consuming duties like scheduling, billing, and payroll.
For new providers who are just starting their business, having the ability to manage their day-to-day responsibilities by logging into one platform can save them precious time, and prevent costly errors caused by doing work manually or housing data in multiple locations.
Starting a homecare business takes work, but it is also a rewarding and exciting endeavor. Not only will you be helping people live fuller, happier lives, but you will be surrounded by like-minded people who believe in your mission. To learn more about how a homecare agency just starting out can get up and running quickly and smoothly, schedule a demo today.
See More Blog