how to start your private home care agency

The number of senior citizens who are over age 65 increases every year. The increase is directly attributable to the baby boomer generation entering the retirement phase of life. As people age, they naturally need more personal and medical care and assistance. Home care has never been more in demand. If you’re doing your research on how to start a private home care business, we’ll help you understand what it entails, outline how to come up with a business plan, and provide some tips on marketing a private home care business.

Why Starting a Home Care Business Is a Good Idea

The baby boomer generation is the second-largest population which is only surpassed by the millennials. While baby boomers take better care of their health than previous generations, they are at the age where they are starting to seek out assistance at home for medical needs or to help them personally. According to the World Health Organization, life expectancy increased by six years from 2000-2019. 


With so many people needing help at home, the home care industry is now in its prime, and starting a home care business is a lucrative opportunity. Today’s seniors increasingly choose to remain at home. It’s common for seniors to hire an in-home caregiver to fill the gaps in what they cannot do for themselves. 


There’s no reason to be hesitant about starting a home care business. We’ll review everything you need to know to get your agency up and running successfully. 

Statistics That Demonstrate the Need for More Home Care Agencies

If you need more convincing, the following statistics will demonstrate why now is the best time for starting a home care business:


  • Around 12 million people currently receive home care services (NAHC)
  •  Revenue in the home health care industry was slightly over $94 million in 2022 (Fortune Business Insights)
  • About 77% of seniors prefer to remain in their homes as they age (AARP)
  • Over 10,000 baby boomers reach age 65 every day (U.S. Census Bureau)
  • By 2030, 61 million baby boomers will be between the ages of 66-84 (U.S. Census Bureau)


In starting a home care business now, you will be ahead of the curve in providing meaningful home care services as seniors enter the retirement phase of life. Your agency has an opportunity to bring seniors services that are personalized, compassionate, and affordable so they can achieve their dream of living at home. 

What Is a Private Home Care Business? 

Before taking the next steps in starting a home care business, you will need to make a decision about which type of home care business you want to establish. There are two types of home care businesses to consider:


  • Medical home health providers. These agencies provide licensed caregivers offering nursing and rehabilitation services. They fulfill physicians’ orders and follow strict guidelines in providing care. 

  • Non-medical home care services. These agencies provide caregivers who assist with preparing meals, running errands, and assisting with personal care needs. Caregivers typically help with activities of daily living such as bathing, housekeeping, and providing transportation. 

Starting Up a Home Care Business

The following information gives you a step-by-step plan for starting a private home care business.   

Create a Business Plan for Your Own Home Care Agency

Every successful business begins with a business plan. A business plan outlines your goals and describes a plan for achieving them. It’s common for entrepreneurs to skip this step, but you’ll have better and earlier success if you take the time to do it. 


With your business plan in hand, you will be able to stay focused as you build your home care agency. Your business plan will also help you identify any gaps or problems in your business model. Investors or funders usually ask to see your business plan before they decide to invest in your business. 


Here’s what to include in your business plan when starting a home care business:


  • An executive summary which is a high-level description of your home care agency. 
  • A description of your company where you state your mission, vision, and values. 
  • A description of the services your home care agency’s provides.
  • A marketing plan that describes your strategy for building your brand. 
  • The management structure of your business including owners, members, and shareholders. 
  • An operational plan that outlines your staffing needs and supplies. 
  • Business procedures and policies including your policies for hiring caregivers, onboarding them, hiring practices, and a copy of the clients’ rights and responsibilities. 
  • A financial plan that encompasses your cash flow projections, a balance sheet, and a break-even analysis. 

Form Your Home Care Business


Put the legal wheels in motion to form your home care business. To begin with, choose a legal name for your home care agency. 


Once you have a name, decide which business structure to operate under and pay your taxes. You may consider choosing a sole proprietorship, a limited liability company (LLC), or one of several forms of a corporation. A popular business structure for home care agencies is an LLC. This is because it limits the liability you have as the owner of the business and it gives you certain tax advantages. 


It’s wise to consult with a business attorney before making your final decision about the structure of your private home care business. 


The following checklist will serve as your guide in starting a home care business:


  • Select a business structure
  • Acquire an Employer Identification Number (EIN) from the IRS
  • Register your business in the state where the home care agency is located. In most states, you will register with the Secretary of State. 
  • Acquire any business permits or licenses that your state requires to operate a home care agency in the state. 

Obtain Certificates

It can take some time to get accredited with Medicare and Medicaid plans, so if your agency will be operating as a medical home health provider, you should start the accreditation process early. It may take up to a year to complete the process. 


Accreditation will allow your agency to provide services such as nursing care, physical therapy, and other services that are covered by the federal government. Find out more at the Centers for Medicare and Medicaid Services.

Hire Staff for Your Private Pay Home Care Business 

You will need to decide if you will hire employees directly or use independent contractors. You will also need to interview caregiver candidates carefully and obtain background checks. 


You may want to start with one employee until you can refine your hiring process to ensure the safety of your clients. 

How Much Can You Charge for Home Care Services?

The biggest factor in how much you can charge for your services correlates to your geographical area. Rates for home care services start at around $18 per hour in small towns and rural areas. If you are operating your home care agency in a large city, you may be able to charge as much as $40 per hour. The average rate of pay for a non-medical caregiver is $24 per hour. 

Recommended Skills and Training

As an owner of a private home care business, you do not need formal education or any medical training. What you do need is compassion for your clientele, honesty and integrity, organizational skills, and a good dose of common sense. Earning the trust of your valued clients is the best way to build a reputable brand. 

Income Potential

If you consider the national rate of $24 per hour, your home care agency could net $900-$1000 per week which equates to about $45,000-$50,000 in a year. As you add employees or additional services, your revenue will increase accordingly.  

Marketing: Acquire Home Care Clients


home care marketing started kit (1)

Visit our Page to Get Started with  THE HOME CARE STARTER KIT 


Once you have taken care of all the administrative issues, you will need to get started on your marketing plan to bring in clients. The need is there, you just need to start building your client base. 


Senior centers, churches, gyms, doctor’s offices, and rehabilitation centers are good places to drop off flyers and brochures. 


Don’t overlook the necessity of creating a website. Much of your business will come from online searchers. A professional website is attractive, informational, and has a clear call to action. 


With Senior Care Clicks you get a home Care Marketing Starter Kit for $999 which comes with the following:


  • A professional website (content, images, hosting)
  • A professional business card
  • A flyer to hand out to promote your services


Our package includes everything you need to establish a reputable brand from the first day in business. Ready to start your home care agency? Contact Senior Care Clicks at 954-401-9058 today!