There has never been a better time to launch your own home healthcare business.
The population is aging. Demand for healthcare is on the rise. Plus, there is a distinct lack of qualified professionals across many key fields of healthcare.
That being said, if you are going to start up your own home healthcare business, you have to go about it the right way.
Fortunately, if you have the entrepreneurial spirit in abundance but you are lacking in a few important details, then the below guide to starting your own home healthcare business is exactly what you need to get the ball rolling.
What is home healthcare?
Let’s start right at the beginning. Home healthcare is a broad term that is used to describe both skilled home care and non-medical home care.
The former involves providing medical care to patients in the comfort of their own homes. Whereas the latter refers to help with daily activities such as preparing meals, general cleaning, and helping with errands.
The main purpose of a home healthcare facility is to provide care to individuals who do not want to visit a health facility to receive specialized care.
In the United States alone, the home healthcare business is worth a whopping $84 billion and shows no signs of slowing down. People want to be cared for in their homes and keep their independence rather than be moved into a nursing home or other elderly care facility.
How to start a home healthcare business
While you can choose to specialize in any field of healthcare that you have an interest or experience in, some of the most in-demand services include nursing, therapy (physical and speech), social work, and elderly care.
Step 1: Create a business plan
Every business needs a business plan, and a home healthcare business is no exception. To create the ultimate business plan, you need to consider all the logistics needed to get your business off the ground.
Although it is highly beneficial if you have a clinical background or experience in the healthcare sector, you still need to think like a business owner and plan for every eventuality.
You can find several free business plan templates online if you are not sure where to start with this key task.
Step 2: Budget your capital expenses
You need to know exactly how much it is going to cost you to get your business up and running. Otherwise you may just as well admit defeat before you even begin.
If you want to provide high-quality home care (which, of course, you do), you need to invest in quality equipment and supplies. You also need to factor in rental expenses and the cost of staff.
If you are not skilled in budgeting and financing, you may want to think about pursuing an advanced degree like an Executive Masters of Health Administration, which will arm you with all the leadership skills you need to run a successful healthcare business.
Step 3: Raise the funds
Now that you know how much you need, the next step is to come up with the capital. If you don’t have any savings put aside for this or you are coming up a little short, then there are several avenues available to you:
- A business loan from your bank
- A business loan from a credit financing company
- Government grant
- A loan from family or friends
It is thought that around 20% of new businesses fail within the first year, mostly down to issues with cash flow, so you need to make sure you have sufficient funds to get you through the first tough year of business.
Step 4: Apply for a license
Before you can start trading, you need to apply for a home health care license in your state. While the exact licensing laws will vary from one state to the next, typically, you will have to:
- Incorporate your business
- Obtain a TAX ID
- Obtain a National Provider Identifier (NPI)
If you don’t know if you have completed all the necessary licensing requirements, get in touch with your State Department of Health to double-check everything before you open for business. It could give you peace of mind.
You will also need to take out insurance policies such as public liability insurance, professional indemnity insurance, and medical malpractice cover. Do not overlook these. Taking out insurance can ensure you won’t take a detrimental financial hit if something was to go wrong.
Step 5: Find staff
When it comes to home healthcare, or in fact any healthcare service, finding experienced and compassionate staff is a must.
If you have previously worked in a healthcare facility, you may already have connections within the field who may want to come and work for you. If not, you will need to spend some time recruiting the right staff, or you could choose to use a recruitment agency.
Make sure that you conduct full background checks on anyone that you hire, and do not be tempted to take on too many employees too soon as this can cause cash flow problems that could force you to shut down.
Step 6: Promote your business
You have staff. Now you need clients.
The easiest and probably quickest way to start building up your client base is to build a website. While the patients themselves may not be searching for home healthcare online, their family members probably are. You should also promote your business on social media.
You may also want to try and spread the word in your local community. Reach out to senior centers, long-term healthcare facilities, and rehab clinics and tell them about your new business. Post leaflets through local letterboxes. Put an advert in the local paper.
It can also be highly beneficial to join local business associations, as remember it’s not just what you know but who you know that’s important.
Conclusion
And there you have it. In just six straightforward steps, you have built your own home healthcare business. Now all that’s left to do is provide the best possible care to your clients and their families.
Good luck!