How to Start A Private Home Care Business
*This is a guide to get your private home care business started. For even more Information call Certified Homecare Consulting today!*
With the breakthroughs in modern medicine, elderly people are living and enjoying longer lives past the age of 65. With this comes an increase in personal care services. This great business opportunity for health care industry entrepreneurs.
When it comes to owning a private home care business, you might ask yourself “How do I get started” Before starting the process of owning a private home care business, it’s important to know what a private home care business is.
Defining a Private Home Care Business
A “private home care business” is home care that is delivered on a private-pay basis, which means clients, or their families pay either the home care agency or the caregiver.
Home care is provided by a caregiver who perform basic daily needs such as cooking, cleaning, and transportation. Which is different from home health care which requires a doctor prescription and care is given by trained professional.
This page will teach you “how to start a private home care business” so get ready!
Starting a Private Home Care Business? Follow These Steps:
Step 1: Create a Business Plan.
This is the first and most important step when starting any type of business. You need to make a business plan for your private home care business because it will be the foundation of your business and will be needed for each step. A business plan includes the following:
- Executive summary – Explaining all the basics of your business.
- Company description – Write the mission and goals of your private home care business.
- Services – Describe what services your private home care business will be providing.
- Marketing Plan – How will people hear about your business? Also, decide the pricing of your business.
- Manage and Organize – Describe the ownership structure of your private home care business.
- Operation Plan – What will the facility and staff do, as well as what supplies are needed to operate.
- Financial Plan – This is where you will budget your private home care business, this is a crucial step, how will you pay for your services?
Step 2: Registering with the State.
Certify your business by completing your state’s home care application for a license. Certified Home Care Consulting has nearly 20 years of experience helping clients get their licenses.
You will also need to incorporate your business, get your Tax Identification Number, and register for your NPI (National Provider Identification) Number. These requirements for starting a private home care business depending on a state-to-state basis.
Step 3: Obtain Medicaid and Medicare Certifications.
If you get these certifications, your business would be able to provide health care services such as nursing care, physical therapy, and other services and get paid by Medicare and Medicaid plans.
Keep in mind the process of becoming accredited can be longer than you think, this is where hiring a home care consultant can come in handy. In addition to getting these certifications, some states require business owners of private home care businesses to complete a state inspection. Certified Homecare Consulting runs mock surveys to get you prepared.
Step 4: Hire Staff.
Since your private home care business is providing personal service to patients, you will want your staff to represent and reflect the professionalism your business represents.
An uncommon, but effective way to find qualified caregivers is to utilize social media.
Of course, it’s very important to make sure each potential staff member you consider hiring goes through a background check. Do the work ahead of time to avoid a headache.
Step 5: Find Clients.
Now that you have created a business plan and hired an ideal group of staff, you will need to find clients and start running your private home care business. This is the most difficult part of owning any sort of business, especially a service-based business.
Marketing strategies are important when it comes to finding clients. Some ideas for marketing that you can do and get your business going:
- Having an online presence is crucial. Built a basic website for yourself to get your name and business information out there. There are quite a few free hosts that will help you create a functional website. Websites are great because they can always be changed and improved. To get people interested in your private home care business you will need a website that represents your company.
- Google needs to know you exist. Register your private home care business with Google so your hours, address, and phone number can be easily accessible for new clients. Registering with Google is simple, but you will need to have a website first.
- Know your differentiating factors that your private home care business offers. Clients need to know exactly what makes your business start apart from any other competitor. Make your brand known, so every employee and every potential client knows what your mission is.
- Be active in the community. Show your professionalism and make every local group know who you are, and what your private home care business offers.
Step 6: Run Your Business
Once you start billing Medicare, Medicaid, or third-party insurers, the slow payment periods can cause some stress on you as the business owner. Accounts receivable factoring is used by home healthcare agencies and businesses to bridge the gap between payment periods.
Invoice factoring allows you to be advanced an amount to pay employees and continue growing your healthcare business. Your company will have more money for expenses and take the stress of cash off your mind so you can focus on your business operations.
A business is like a never-ending textbook. There is always something new to learn. Good business owners listen and learn how to improve already successful business.