home health care services business plan

Home Health Care Business Plan Template

Written by Dave Lavinsky

Home Health Care Business Plan

You’ve come to the right place to create your Home Health Care business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their home health care businesses.

Home Care Business Plan Example

Below is a template to help you create each section of your home health agency business plan.

Executive Summary

Business overview.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our nursing services include physical therapy, skilled nursing care and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care is run by Helen Parker, who has been a nurse for twenty years. She has specialized in working with aging populations and has extensive knowledge of the common conditions and needs of this age group. Her experience and connections have helped her find other medical professionals who want to join our company. Furthermore, she was able to establish an initial client base from the list of patients she has been helping for years.

Services Offered

St. Helen’s Home Care offers a variety of home health care services that serve the aging population of Austin, Texas. These services include but are not limited to:

• Physical therapy
• Occupational therapy
• Speech-language therapy
• Skilled Nursing Services
• Personal care and housekeeping

Customer Focus

St. Helen’s Home Care will serve the aging population of Austin, Texas, primarily residents over the age of 65. This population is susceptible to many conditions that make daily living difficult such as Alzheimer’s, dementia, arthritis, and diabetes. This population needs more health care than other age groups, but not all services require a visit to the hospital or doctor’s office. St. Helen’s will provide any medical service that can easily be conducted in a home setting.

Management Team

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Aside from the medical professionals she will have on staff, Helen has also employed an Administrative Assistant, Accountant, and Marketing Specialist to help her operate the company.

Success Factors

St. Helen’s Home Care will be able to achieve success by offering the following competitive advantages:

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert nursing services so that the patients are at the highest comfort level.
• Pricing: Helen’s pricing will be more affordable than other home health care agencies. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Financial Highlights

St. Helen’s Home Care is seeking $340,000 in funding to launch the home healthcare business. The capital will be used for funding equipment and supplies, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Equipment and supplies (such as computers and medical equipment): $150,000
• Marketing costs: $50,000
• Staffing costs: $60,000
• Working capital (to include three months of overhead expenditures): $80,000

The following graph outlines the pro forma financial projections for St. Helens’ Home Care over the next five years:

Company Overview

Who is St. Helen’s Home Care?

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our services include physical therapy, nursing, and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care History

Helen Parker has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to travel to a doctor’s office or hospital for their care. Instead, these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide care to local elderly patients in the comfort of their homes. After conducting the research needed to establish the company, Helen incorporated St. Helen’s Home Care as an S-corporation on May 15th, 2022.

Since incorporation, St. Helen’s has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the logo and website for the company
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Created an initial client base from Helen’s pre-existing patient list
• Started creating partnerships with local and national medical insurance companies
• Began recruiting key employees, including medical and administrative staff

St. Helen’s Home Care Services

Industry Analysis

According to Grand View Research, the global home health care industry was valued at $336 billion USD in 2021. It is also expected to grow at a compound annual growth rate of 7.93% from 2022 to 2030 and reach a value of $666.9 billion USD by 2030. This shows that these services will be in great demand, which means it is a great time to start a home healthcare business.

This growth is primarily driven by a growing geriatric population. People are living longer than ever before, and therefore, they will need comfortable healthcare services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for healthcare (whether in the home or doctor’s office) and may create a strain on the current industry. However, this also means there is an enormous opportunity for healthcare businesses to be extremely profitable in the near future.

This is especially true for home healthcare services, which are increasing in demand. Most aging people would rather receive medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.

The only challenge affecting the industry is a lack of properly trained staff who can take on a healthcare career. However, this will only mean that home healthcare services will be even more valued. These industry trends will only help boost the popularity and success of St. Helen’s Home Care.

Customer Analysis

Demographic profile of target market.

St. Helen’s Home Care will primarily target the aging population of Austin, Texas. This includes anyone over the age of 65, especially those who live with diabetes, Alzheimer’s, arthritis, or other conditions that affect their quality of life.

The precise demographics of Austin, Texas, are:

Customer Segmentation

St. Helen’s will primarily target the following customer profiles:

• Aging individuals over the age of 65
• Individuals living with Alzheimer’s and dementia
• Elderly individuals with other health conditions

Competitive Analysis

Direct and indirect competitors.

St. Helen’s Home Care will face competition from other home health care agencies with similar business profiles. A description of each competitor company is below.

Travis County Home Health

Travis County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of their patients’ homes. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, and Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Elara Caring

Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in most regions of the United States. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health

Encompass Health is one of the nation’s leading providers of home health services. They continually set the standard of homecare through their people, their approach, and their outcomes.

The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home. Whether recovering from a surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are.

Competitive Advantage

• Quality Care: Helen’s will provide expert services so that the patients are at the highest comfort level.
• Pricing: Helen’s will provide affordable home health care. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Marketing Plan

Brand & value proposition.

The St. Helen’s brand will focus on the company’s unique value proposition:

• Knowledgeable, friendly, compassionate staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and home aide services at competitive prices.

Promotions Strategy

St Helen’s Home Care will target elderly residents living in the Austin, Texas area. The company’s promotions strategy to reach the most clientele include:

Local Hospitals

Helen Parker already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend the company to its patients and their families upon releasing them from the hospital.

Website/SEO Marketing

St. Helen’s has a website that is well-organized and informative and lists all our available services. The website also lists the company’s contact information and information about the medical professionals who provide our services.  We will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Austin home health care” or “Austin health care,” St. Helen’s will be listed at the top of the search results.

St. Helen’s Home Care will have a billboard at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Insurance Partnerships

St. Helens will partner with local and national insurance companies so that our patients can be partially or fully covered for the services we provide. We will ask the insurance companies to recommend our services to their customers and have our business listed on their websites.

St Helen’s pricing will be moderate so customers feel they receive great value when purchasing its services. Services will either be charged directly to the patient or to their insurance plan.

Operations Plan

The following will be the operations plan for St. Helen’s Home Care.

Operation Functions:

• Helen Parker will be the Chief Executive Officer of the company. She will be in charge of the business operations side of the business and provide home healthcare services until we have a full staff of medical professionals.
• Helen is assisted by her longtime colleague Mary Green. Mary will be the Administrative Assistant and help with all general administration tasks, including taking phone calls and scheduling appointments.
• Keith O’Reilly will serve as the Staff Accountant. He will provide all accounting, tax payments, and monthly financial reporting.
• Betty Lopez will work as the Marketing Specialist. She will run the website, social media, and other marketing efforts.
• Helen will hire a large team of medical professionals to serve our growing client base. So far, some of her former colleagues have agreed to work for her business.

Milestones:

St. Helen’s Home Care will have the following milestones completed in the next six months.

8/1/202X – Finalize lease for the office space.

8/15/202X – Finalize personnel and staff employment contracts.

9/1/202X – Begin refurbishment and furnishing of the office space.

9/15/202X – Begin networking at medical industry events.

9/22/202X – Begin marketing campaign to attract the first clients.

11/1/202X – St. Helen’s Home Care opens for business.

Financial Plan

Key revenue & costs.

The revenues for St. Helen’s Home Care will come from the fees it will charge the patients and their insurance for the provided health care services.

The major cost drivers for the company will be the staff payroll, marketing expenses, lease, and office equipment.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials as well as pay off the startup business loan.

• Number of clients per month: 100
• Annual lease: $50,000
• Overhead costs per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, home health care business plan faqs, what is a home health care business plan.

A home health care business plan is a plan to start and/or grow your home health care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Home Health Care business plan using our Home Health Care Business Plan Template here .

What are the Main Types of Home Health Care businesses?

There are a number of different kinds of Home Health Care businesses , some examples include: Nursing care business, Physical home health care business, and Home health care aides.

How Do You Get Funding for Your Home Health Care Company?

Home Health Care businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Home Health Care Business?

Starting a home health care business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Home Health Care Business Plan - The first step in starting a business is to create a detailed home health care business plan that outlines all aspects of the venture. This should include market research on the home health care industry and potential target market size, information on the home health care services you will offer, marketing strategies, pricing detailed and your financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your home health care business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home health care business is in compliance with local laws.

3. Register Your Home Health Care Business - Once you have chosen a legal structure, the next step is to register your home health care business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your home health care business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Home Health Care Equipment & Supplies - In order to start your home health care business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home health care business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful home health care business:

• How to Start a Home Health Care Business

How To Write a Winning Home Health Care Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for home health care agency businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every home health care agency business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Home Health Care Agency Business Plan?

A home health care agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Home Health Care Agency Business Plan?

A home health care agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Home Health Care Agency Business Plan

The following are the key components of a successful home health care agency business plan:

Executive Summary

The executive summary of a home health care agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your home health care agency  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your home health care agency business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your home health care agency firm, mention this.

You will also include information about your chosen home health care agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a home health care agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the home health care agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a home health care agency may include:

• The elderly
• People with disabilities
• New mothers
• Patients recovering from surgery or illness

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or home health care agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your home health care agency business via public relations or partner with another organization to sponsor an event.  

Operations Plan

This part of your home health care agency business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a home health care agency business include reaching $X in sales. Other examples include hiring a certain number of employees, signing on a certain number of clients, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific home health care agency industry. Include brief biography sketches for each team member.

Particularly, if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Home Health Care Agency  

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Home Health Care Agency  

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup home health care agency business.

Sample Cash Flow Statement for a Startup Home Health Care Agency  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your home health care agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any home health care agency. The tips we’ve provided in this article should help you write a winning business plan for your home health care agency.  

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How To Write a Winning Non-Medical Home Care Business Plan + Template

Home Health Care Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their home health care businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a home health care business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Home Health Care Business Plan?

A business plan provides a snapshot of your home health care business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Home Health Care Agency

If you’re looking to start a home health care business, or grow your existing home health care business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your home health care business in order to improve your chances of success. Your home health care business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Home Health Care Businesses

With regards to funding, the main sources of funding for a home health care business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a home health care business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan. Venture capitalists will not fund a home health care business. They might consider funding a home health care business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.

Finish Your Business Plan Today!

Home health care business plan template.

If you want to start a home health care business or expand your current one, you need a business plan. Below are links to each section of your home health care business plan template:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of home health care business you are operating and the status. For example, are you a startup, do you have a home health care business that you would like to grow, or are you operating a chain of home health care businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the home health care industry. Discuss the type of home health care business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of home health care business you are operating.

For example, you might operate one of the following types of home health care businesses:

• Nursing care business : this type of home health care business is the most common, where the patient is given a doctor-approved plan of care specific to the patient’s clinical needs and delivered within the comfort of their home.  
• Physical home health care business : this type of home health care business provides physical therapy to patients who need help regaining their muscle and joint strength. 
• Home health care aides : this type of home health care business provides patients with home health care aides who assist them with basic daily tasks, such as bathing, cooking, and dressing.  

In addition to explaining the type of home health care business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of home health care patients, growth year over year, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the home health care business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the home health care industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your home health care business plan:

• How big is the home health care industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your home health care business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your home care agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: parents of elderly individuals, retired seniors, senior community program managers, etc.  

As you can imagine, the customer segment(s) you choose will have a great impact on the type of home health care business you operate. Clearly, parents of elderly individuals would want different service options and would respond to different marketing promotions than senior community program managers, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most home health care businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other home health care businesses. 

Indirect competitors are other care options that people have that aren’t direct competitors. This includes hospitals, nursing homes, and people who help relatives with home health care needs. You need to mention such competition to show you understand that not everyone who needs healthcare assistance will utilize a home health care company.

With regards to direct competition, you want to describe the other home health care businesses with which you compete. Most likely, your direct competitors will be home health care businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of patients do they help?
• What types of services do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior services?
• Will you provide services that your competitors don’t offer?
• Will you make it easier or faster for customers to use your services?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a home health care business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of home health care business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to home health care, will you provide superior customer service, 24/7 call centers, or emergency services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your home health care business office. Document your location and mention how the location will impact your success. For example, is your home health care business office operated remotely, located near a main highway, near public transportation, etc. Discuss how your location might provide a steady stream of customers. 

Promotions : The final part of your home health care marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites 
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your home health agency business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your home health care business, including hiring quality home care professionals, training employees, and administrative tasks.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 100th patient, or when you hope to reach $X in revenue. It could also be when you expect to expand your facility or launch in a new location.  

Management Team

To demonstrate your home health care business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing home health care businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing home health care companies or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you assist 50 patients per month or 100? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $100,000 on building out your home health care business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a local senior living community approached you with a $50,000 partnership contract to provide home health care services for their occupants. Let’s further assume the contract would cost you $50,000 to fulfill in terms of increased staffing costs. Well, in most cases, you would have to pay that $50,000 now for employee salaries, utilities, etc. But let’s say the company didn’t pay you for 180 days. During that 180-day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a home health care business:

• Cost of equipment like standard nursing supplies, sanitary products, and emergency medications
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your Medicaid and Medicare certifications.  

Putting together a business plan for your home health care business is a worthwhile endeavor. If you follow the example template above, by the time you are done, you will have an expert home health care business plan; download it to PDF to show banks and investors. You will really understand the home health care industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful home health care business.

Home Health Business Plan FAQs

What is the easiest way to complete my home health care business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Home Health Care Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of home health care business you are operating and the status; for example, are you a startup, do you have a home health care business that you would like to grow, or are you operating a chain of home health care businesses?

Don’t you wish there was a faster, easier way to finish your Home Health Care business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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Start » business ideas, how to start a home care business.

Starting a home care business can be a lucrative opportunity for anyone with health care experience. Learn the seven steps you’ll need to take to get started.

Home care businesses provide a valuable service to the community, which is why the industry is expected to double in size over the next 15 years. But the job is demanding, and it’s essential to perform your due diligence before getting started.

What is a home care business?

Home care businesses offer home health and medical services to aging or sick individuals. It’s an umbrella term used to refer to multiple types of services.

A home care business could provide the following services:

• Companionship to seniors.
• Assisting clients with daily activities like housekeeping and cooking.
• Home therapy services, like physical and occupational therapy.
• Hospice care.

7 tips to starting a home care business

Find out what certifications you need.

Before starting a home care business, you must certify your business through the state and obtain a license. It’s also a good idea to check your local health department to find out if you need any additional licenses. This is not an overnight process and could take as long as a year to complete.

Decide what services you’ll offer

Home care businesses can cover a wide variety of services. You want to decide which type of services you will provide based on your experience and your staff.

If you’re not sure what service you want to offer, spend some time researching the top growing trends in the health care field. This can be an excellent way to match your skills with the current market demand.

As a home care worker, you cannot discuss health records with family or friends.

Identify your target market

Next, you’ll want to spend some time thinking about your target market. This is not necessarily the clients you’ll be serving, but the individuals who will be hiring you. For instance, if you offer hospice services, your target market is the adult children who will hire you to care for their parents.

Create a business plan

The best way to set yourself up for success is by coming up with a detailed business plan. A business plan will outline your target market, your financial plan and how you plan to market your business.

Having a business plan can make it easier to qualify for a small business loan. A loan can help you get your business off the ground faster and let you avoid having to dip into your savings.

[ Read more: How to Write a One-Page Business Plan in a Hurry ]

Make sure you understand HIPAA laws

HIPAA compliance can be one of the most challenging aspects of starting a home care business. HIPAA laws protect the patient's privacy and ensure that third parties can’t access their records without their consent.

As a home care worker, you cannot discuss health records with family or friends. This could frustrate some family members and friends and make it harder for you to do your job. Make sure you have a thorough understanding of HIPAA laws before starting your business.

Come up with a marketing plan

Once you have your business set up and have applied for the appropriate licenses, you should begin marketing your business. You can promote your business on social media and invest in local advertising.

And don’t forget to ask current clients for referrals. Referrals are an excellent―and free―way to grow your business.

[ Read more: The Difference Between Sales and Marketing ]

Hire your staff

If you want to grow your home care business, then at some point you’ll have to bring on staff. You should choose your employees carefully since they directly represent the quality care you will provide.

Conduct a thorough interview process and run background checks on all employees. You can find potential employees through a staffing agency or through personal recommendations.

[ Read more: The Best Interview Questions to Ask, According to Franchise Owners ]

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How to craft a successful home care business plan

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As a home care provider, you run your business with compassion and knowledge of the job and the local community you work with. After you’ve learned more about how to become a caregiver and how to start a home care business , you’re ready to formalize your ideas with a business plan.

How to create a home care business plan

Your business plan is an essential part of the portfolio you’ll present to banks, investors, and partners before launching your company. Every entrepreneur can benefit from a business plan that helps you turn your vision into action and strategize for success. For home care professionals, there are unique additions and considerations for your business plan. From determining your core local clients to developing the marketing plan to reach them, this guide will walk you through nine sections for your home care business plan.

1. The executive summary

The executive summary kicks off your business plan and hooks whoever’s reading it to learn more about your company and your proposal. Think of it a little like a sales pitch for your business and a preview of everything you lay out in your business plan.

A home care business summary should include:

• Your mission and the populations your business will serve 
• A list of your primary services 
• The demand for these services in your community
• What sets your home care business apart from competitors
• Your vision 
• A summary of funding needs

2. The company description

As a home care business working with clients in need, your professional background should be front and center. Your company description offers a snapshot of you and your business, and should include:

• The registered (or intended registered) name of your business
• The location of your company headquarters, and the neighborhoods, area, or city your business will reach
• Management, primary personnel, and their professional backgrounds
• Any licenses or certifications your staff has

Different types of home care services will need different certifications, like medical home care companies compared with senior transportation providers, for example. Make sure to research and include the requirements in your county, city, and state. 

If you’re in the preliminary stages of creating your home care business and haven’t secured the required licenses yet, mention any certifications you’re pursuing in this description.

3. Your business mission and goals

The mission and goals section of a business plan outlines the primary objectives of your company and how you plan to achieve them.

As more Americans advance into the senior age bracket, demand for credible home care businesses is rising. This need can help position your business for success and give you more opportunities to refine your mission and select specific populations to focus on. 

The need for home care help for senior relatives in particular has grown. As home care professional Christine Friedberg reflects, “I used to get on the phone and talk with clients about home care being an option for them or for their loved one, but it was like a new concept…For a long time, we were trying to educate the community about what home care was. Demand is greater than ever now.”

Medicare’s Triple Aim program may provide general inspiration for your own company goals. Their three pillars are :

• Centering and improving patients’ experience of care
• Improving health outcomes of patients served
• Mitigating the cost of care for individuals

From a business perspective, working with specific demographics may give you a leg up on funding. Based in Alexandria, VA, Griswold Home Care works with the area’s large population of aging veterans. To reach more of them, Griswold joined the cross-regional VA Community Care Network to provide in-home services to veterans needing extra support at home.

Not only was Griswold able to reach a specific community in need, but the program also helped this local home care business secure funding directly from the Department of Veterans Affairs . “We’ll see anywhere from 5 to 20 hours a week that the VA is covering, in terms of actually contracting with us directly. They pay us directly…so it’s very easy for the veteran to get in, take advantage of this program and take advantage of this care.”

In the home care industry, other demographics include:

• LGBTQ senior citizens
• People with Alzheimer’s
• People living with disabilities
• Non-seniors living with disabilities
• Adults whose first language isn’t English

Keep your demographic in mind as you refine your company’s identity and plan for growth. It will determine the steps you’ll take to fund your business and reach the neighbors who need you most.

4. Your services

The services section of your home care business plan sets the vision for what your business will specifically do. There are two main types of home care companies and services:

• Non-medical home care services – This type of home care business is not licensed to administer medical services or healthcare to its clients. Instead, they provide support, companionship, and home assistance. Services may include driving clients to doctor’s appointments, taking them to the park, or preparing meals.
• Medical home care services – Medical home care providers are staffed by nurses or other medical professionals licensed to administer medical care to their clients.

With the growing need for at-home healthcare businesses, some of the most common home care services include:

• Assistance with dressing, bathing, and using the toilet
• Companionship and diversion
• House cleaning and support with daily chores
• Transportation
• Hospice care
• Continued education for older adults
• Physical therapy and rehabilitation
• Prescription fulfillment services
• Administering medication
• Tracking vital physical or psychological health 
• Senior citizen relocation assistance
• Specialty nursing for a long-term illness or disability
• 24-hour emergency services

Get specific about what caregiver duties you’ll provide your clients, narrowing down your list with the most needed services in your local community. With 1 in 3 U.S. households on Nextdoor , you’ll be able to connect with neighbors, and your most important clients, with a free business page.

5. Your management structure

This section of your business plan establishes the legal status of your company, which affects other details, from the extent of your liability as the owner to how you’ll file taxes.

The most common business structures for home care providers are:

• Limited liability company (LLC)
• Sole proprietorship
• Partnership
• Corporation

To choose the right business structure for you, consider:

• Liability – Every business is financially and legally liable to compensate for injuries committed on their watch. Consult with an accountant to take stock of your personal assets to choose a framework that gives you adequate protection.
• Taxes – Your home healthcare business structure will determine how the profits you earn are taxed, whether through your business, on your individual tax returns, or a hybrid of both. As a general rule, the larger your company is, or the more shareholders it has, the more complex the tax process will be.
• Growth expectations – Whether your home care company will focus on your neighborhood or expand nationwide, your business structure should reflect your desired administrative capacity and set the stage for investors who want to scale alongside you. 

While S corporations and C corporations are often better suited for larger-scale companies, it’s possible to change the legal structure of your organization as it grows. Consider hiring experts, like a lawyer and an accountant, to help you with this stage of the process, especially if they have advised other local businesses in your area.

6. Your marketing plan

Show potential funding partners you know the modern home care market and set your local business up for success with marketing goals that cover the following bases:

• Digital marketing - In a job as intimate as home care, any new caregiver business begins on the local level. Sign up for a free business page with Nextdoor to instantly unlock a network of verified neighbors near you. Keep your business page updated with your story, photos, and contact information so local clients can find you and easily get in touch. Introduce yourself, share job listings, and keep neighbors updated on your business with free posts or hyperlocal advertising tools to reach more clients in specific ZIP codes you want to grow your business in.
• Partnerships – Qualified home care providers may be eligible to partner with care networks already plugged into local consumer demand. If properly licensed, apply to enroll as a Medicaid or Medicare partner. 
• Word-of-mouth marketing – Since home care professionals are a part of their clients’ and families’ lives, your local reputation will be important. Build trust in you and your services with testimonials on your website and recommendations on Nextdoor. 72% of neighbors there have been influenced by a business recommendation and 71% have shared one. Consider sharing your website and Nextdoor page with former clients to ask them for a recommendation.

Anything that makes your home care business unique, include in this section of your business plan. With a growing population of aging Americans, entrepreneurs are getting creative about the types of care they offer to suit different lifestyles.

Take Dr. Bill Thomas . He thought there should be a senior care option in place of the traditional nursing home so he created Minka, a company that builds small dwellings tailormade for seniors who want extra assistance, community, and autonomy in their advanced years. Says Thomas, “I think there will continue to be congregate housing, but the more choices people find in front of them, the more they’ll find something that suits them best.”

7. Your core financials

The next two sections cover your financial history with projections for your home care business’s future. This will be important for your business strategy, as well as for potential lenders, investors, or partners. 

The finance section of your home care business plan should include:

• Income statement
• Balance sheet
• Expected revenue
• A list of your assets and debts
• A summary of company expenses
• Desired loans

If you plan to enroll as a provider through a network like Medicare, mention in this section of your business plan.

8. Financial projections

This section of your home care business plan is important if you’re asking for an investment of any kind as it covers the funding you’re requesting, what you’ll use it for, and your plan to pay it back.

Financial projections should cover at least three years. Fortunately, the home care industry is slated for financial growth in the coming years. In the U.S. alone, the compound annual growth rate for home health care is projected to be 14.2% between 2021 and 2027.

However you plan to grow your company, speak with your local bank to discuss the full spectrum of financial options before finalizing your business plan. 

You can also connect with fellow home care professionals through Nextdoor for more information on the local home care industry in and around your neighborhood. This will help you get a realistic sense of your financial plan and the next few years operating your business.

9. Appendix

Your business plan’s appendix is where you’ll include any supporting or miscellaneous information for your business goals that didn’t have a place in the earlier sections.

Consider including:

• The resumes or educational and professional backgrounds of you, the owner, and your core staff
• Medical or non-medical licensing, or the licenses you plan to secure
• Any legal permits your business needs or the ones you plan to secure
• Bank statements, loans, and personal or professional credit history
• Real estate information about your business’ headquarters, if applicable

Make local connections through Nextdoor

As more Americans age, local caregivers are increasingly integral to the health of their communities. An effective home care business plan should tell this compelling narrative, sharing why there’s a need for your services and what you’ll do to fulfill them in your area. 

If you’re just building your local home care business, start close to home with a Nextdoor Business Page. Signing up is free, takes just a few minutes, and will help you spread the word, turning your neighbors into your first clients. 

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Business Plan Template for Home Health Care

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Starting and running a home health care business requires careful planning and a well-structured strategy. ClickUp's Business Plan Template for Home Health Care is the ultimate tool to help entrepreneurs in this industry outline their goals, strategies, and financial projections. Whether you're a seasoned entrepreneur or just starting out, this template will guide you through the process of creating a comprehensive business plan that covers every aspect of your home health care business. From defining your target market and outlining your services to projecting your financials, ClickUp's template has got you covered. Get started today and pave the way for a successful home health care business!

Business Plan Template for Home Health Care Benefits

When using the Business Plan Template for Home Health Care, entrepreneurs in the industry can experience a multitude of benefits, such as:

• Clearly defining business goals and objectives
• Outlining detailed strategies and tactics for success
• Identifying target market and competitive analysis
• Developing financial projections and budgeting plans
• Creating a roadmap for growth and expansion in the industry
• Presenting a professional and comprehensive plan to potential investors and lenders
• Ensuring compliance with industry regulations and standards
• Establishing a solid foundation for operational efficiency and profitability

Main Elements of Home Health Care Business Plan Template

When starting a home health care business, it's crucial to have a well-structured business plan in place. ClickUp's Business Plan Template for Home Health Care includes:

• Custom Statuses: Track progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that each section of your business plan is accounted for and easily manageable.
• Custom Fields: Utilize custom fields such as Reference, Approved, and Section to add specific details to your business plan, making it easy to reference, track approvals, and organize sections.
• Different Views: Access five different views, including Topics, Status, Timeline, Business Plan, and Getting Started Guide, to visualize different aspects of your business plan, from tracking progress and managing sections to creating a timeline and getting started with your plan.
• Collaboration: Collaborate with your team by assigning tasks, setting due dates, and using comments to discuss and make revisions to your business plan in real-time.
• Integrations: Seamlessly integrate with other tools, such as financial software or project management tools, to enhance the functionality and accuracy of your business plan.

How To Use Business Plan Template for Home Health Care

Creating a business plan for a home health care company can be a daunting task, but with the help of ClickUp's Business Plan Template and the following steps, you'll be well on your way to success:

1. Define your business

Start by clearly defining your home health care business. Outline your mission, vision, and values, and identify your target market and the specific services you plan to offer. This step will help you establish a strong foundation for your business.

Use the Docs feature in ClickUp to create a comprehensive overview of your business, including your mission statement, target market analysis, and service offerings.

2. Conduct market research

To ensure the success of your home health care business, it's crucial to conduct thorough market research. Identify your competitors, analyze their strengths and weaknesses, and determine the demand for home health care services in your area. This information will help you develop a competitive advantage and identify potential growth opportunities.

Utilize the Table view in ClickUp to organize and analyze your market research data, including competitor analysis, market trends, and target market demographics.

3. Develop a marketing strategy

A solid marketing strategy is essential for attracting clients and growing your home health care business. Identify the most effective channels to reach your target audience, such as online advertising, social media, and local partnerships. Determine your unique selling points and craft compelling messaging that showcases the benefits of choosing your services.

Create tasks in ClickUp to outline your marketing plan, including specific actions and timelines for each marketing initiative. Use the Calendar view to visualize your marketing schedule and ensure timely execution.

4. Plan your financials

The financial aspect of your business plan is crucial for securing funding and ensuring the long-term sustainability of your home health care company. Estimate your startup costs, including licensing, equipment, staffing, and marketing expenses. Project your revenue and expenses for the first few years, and develop a realistic pricing strategy.

Use custom fields in ClickUp to track your financial projections and key performance indicators, such as revenue, expenses, and profit margins. The Dashboards feature in ClickUp can help you visualize your financial data and monitor your business's financial health.

By following these steps and utilizing ClickUp's Business Plan Template, you'll be well-prepared to launch and grow your home health care business. Remember to regularly review and update your business plan as your business evolves and new opportunities arise.

Get Started with ClickUp’s Business Plan Template for Home Health Care

Entrepreneurs in the home health care industry can use the ClickUp Business Plan Template to create a comprehensive plan for starting and operating a successful home health care business.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
• The Status View will help you track the progress of each section, whether it's complete, in progress, needs revision, or still to do
• The Timeline View will give you a visual representation of your business plan's milestones and deadlines
• The Business Plan View will provide a comprehensive overview of your entire business plan, allowing you to easily navigate and review each section
• The Getting Started Guide View will offer step-by-step instructions and tips on how to use the template effectively
• Utilize the custom fields, such as Reference, Approved, and Section, to add additional information and track important details
• Update statuses and custom fields as you work on each section to keep track of progress and ensure everything is on track.
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How to Start a Home Care Business: The Ultimate Guide

The demand for home care services is surging as more people opt for care within the comfort and familiarity of their own homes, valuing the autonomy and personalized attention this option provides. This trend offers a burgeoning opportunity for entrepreneurs eager to fulfill the need for compassionate home health care. Yet, embarking on the journey of launching a home health care agency introduces a variety of challenges, from navigating regulatory landscapes and establishing operational infrastructures to grasping the market dynamics unique to each state.

This guide aims to provide you with the necessary knowledge and tools to know how to start a home care business that not only is profitable but also makes a significant impact on the community. We will delve into crucial topics such as crafting a detailed business plan, acquiring the required licenses, marketing your services effectively, building a competent team, and ensuring the delivery of top-notch care.

Prepare to discover how you can create a home care business that not only flourishes financially but also profoundly benefits your community.

In This Guide:

• Discover Home Care Industry Trends and Insights
• Develop Your Home Care Business Plan
• Certifications, Licensing, and Regulations in Home Care
• Personalizing Care: Tailoring Your Services
• Assembling Your Dream Team

Financial Planning for Your Home Care Business

• Maximizing Revenue in Home Care

Ready, Set, Launch & Expand: Launching Your Home Care Business

Building a strong brand and marketing strategy in home care, fast-track your home care business with nurse next door.

Each section is packed with in-depth insights and practical advice, guiding you toward establishing a home care business that genuinely enriches your community. Let’s embark on this journey together, paving the way for a successful and impactful venture in the realm of home care.

Home Care Industry Trend and Insights

The home healthcare sector is rapidly growing due to an aging population and seniors’ preference for aging at home, where they can have more autonomy and personalized care.

Currently, North America faces a notable shortage of home care agencies amid rising demand from a growing senior population and the overstretched medical system. This situation is further complicated by the ‘sandwich generation’ —adults juggling the care of both their children and elderly parents while working full-time.

Home care services are crucial for supporting seniors, their families, and others needing home assistance. Entering this field not only helps relieve family caregivers but also offers significant opportunities for making a meaningful impact. The increasing interest in starting home care businesses highlights the market’s appeal and the desire to contribute positively in this area.

Exploring the Home Care Market:

🌼 Aging Baby Boomers : The baby boomer generation, consisting of approximately 73 million Americans , is aging, significantly impacting the demand for home care services. This demographic’s preference for aging in place supports the home care industry’s potential for substantial growth.

🌼 Custom Care Demands : Today’s seniors are increasingly seeking care tailored to their unique needs and circumstances. This trend towards personalized services opens new avenues for home care businesses and underscores the myriad advantages of individualized healthcare at home.

🌼 Tech Innovations : The adoption of telehealth and remote monitoring technologies is broadening the scope of services that home care businesses can offer. These innovations enable greater efficiency and improved care quality, significantly enhancing client outcomes and representing a major advancement in the healthcare industry.

🌼 Industry Growth : The home care sector, serving over 12 million individuals , showcases a substantial market opportunity, particularly in contrast to the 2 million people living in nursing or assisted living facilities. This disparity highlights the vast potential and increasing significance of home healthcare services.

Key Benefits of Starting a Home Care Business:

• Transform Lives with Compassion : Make a significant impact by helping seniors and their families feel empowered, joyous, and respected. This uplifts individuals and enhances community well-being.
• Become a Community Beacon : Strengthen your community by providing essential support to families and reducing the strain on public health services, thereby improving local health outcomes.
• Empower and Lead : Beyond creating jobs, your business empowers compassionate individuals to make a difference, supporting the elderly population’s needs.
• Embark on a Rewarding Career Path : Experience personal and professional growth by navigating the healthcare system, developing leadership skills, and building meaningful connections.
• Achieve Financial and Time Freedom : With the home healthcare sector’s significant revenue and growth potential, enjoy financial stability and the flexibility to balance work and life.

Discover if you possess the attributes needed to make a meaningful impact in the lives of others while achieving financial prosperity: 4 Traits of Successful Home Care Franchise Owners .

Crafting Your Path to Success: Developing Your Home Care Business Plan

Creating a comprehensive business and financial plan is crucial for any home care business’s success. This plan serves as your guide, navigating the complexities of healthcare and ensuring sustainable growth.

Key Components of a Successful Home Care Business Plan:

Your business plan is a blueprint for success in the home care industry, covering:

• Business Description : Outline your unique services and value proposition.
• Market Analysis : Assess your target market, competition, and the needs your services fulfill.
• Organizational Structure and Financials : Describe your team and operations, including startup costs, funding strategies, and revenue forecasts.
• Service Offerings and Revenue Growth : Explain your services and how they meet market demands, linking this to revenue growth strategies.
• Marketing and Client Acquisition : Detail strategies for attracting and retaining clients.
• Financial Projections : Provide a detailed financial outlook, including income, expenses, and profit margins.
• Funding Request : If seeking external financing, specify your needs, fund usage, and proposed terms.

This framework lays the groundwork for a detailed home care business plan, from market analysis to financial projections. For more insights, visit our blog on crafting your plan .

Navigating Compliance: Certifications, Licensing, and Regulations in Home Care

Starting a home care business entails a deep dive into the regulatory landscape, encompassing certifications, insurance, and standards required by various government levels. Compliance is crucial for legal operations, client safety, and maintaining credibility.

Guide to Compliance and Protection:

🌼 Licensing Essentials : Begin by securing the necessary licenses, which vary based on location and service type. A Home Health Agency License is often needed for medical services, while a Business License is fundamental for legal recognition. For specific licensing guidance, see our blog post: How to Get Licensed for a Home Care Franchise .

🌼 Federal Employer Identification Number (EIN) : Obtaining an EIN is essential for tax purposes and hiring employees.

🌼 Choosing the Right Insurance : Essential insurance coverages include Professional Liability Insurance for service-related claims, General Liability Insurance for broader business risks, and Cybersecurity Insurance against data breaches. The right insurance mix is key to thorough protection.

🌼 Deciding on a Business Structure : Choose a legal structure, like an LLC or corporation, to manage liabilities, taxes, and flexibility effectively. An LLC is often favored for its protective benefits and adaptability.

🌼 State Licensing Requirements : These vary significantly and may involve specific certifications and training. Understanding and complying with these standards is vital for legal and recognized service provision.

This streamlined approach to compliance aims to demystify the process, preparing you to deliver safe, reliable, and compliant home care services. Proper compliance establishes trust, safety for clients, and a solid foundation for your business in the home care industry.

Discover ideal locations for your home care venture across the U.S. by visiting our blog. Learn about the best states to launch your business and begin your successful journey today!

Resources and State-Specific Information

Access to accurate, state-specific regulatory information is crucial for compliance. Our state guides provide state-specific resources and insights into the regulatory landscapes across states, including licensing, compliance best practices, insurance needs, and connections with community organizations.

Personalizing Care: Tailoring Your Services to Seniors and Beyond

Selecting the right mix of services is key in the dynamic home care industry. Combining medical services from healthcare professionals, like certified nursing assistants and home health aides, with non-medical support from private caregivers allows you to address community needs and utilize your team’s strengths. This strategic approach differentiates your business and significantly impacts your clients, making your service a cornerstone of care for seniors and others needing assistance.

Understanding the Types of Home Care Services:

Home care is categorized into medical and non-medical services:

• Medical Home Health Care Services: Delivered by licensed professionals, these services include skilled nursing, physical therapy, wound care, and vital signs monitoring. They cater to clients needing medical attention at home, such as seniors or those recently discharged from hospitals, offering both general and specialized healthcare.
• Non-Medical Home Care Services: These focus on daily living assistance, such as bathing, dressing, meal preparation, and companionship, provided by professional caregivers. These services enhance individuals’ independence and safety at home, promoting a higher quality of life.

Distinguishing between medical and non-medical care is vital for serving the varied needs of your community, especially focusing on seniors.

Choosing Non-Medical vs. Medical Home Care:

Your decision to offer non-medical or medical home care should consider:

• Community Demographics : Assess the age distribution and health needs to identify service gaps, particularly for seniors.
• Competition : Review local providers to find unaddressed needs.
• Regulatory Considerations : Be aware of licensing, certification, and insurance requirements for medical and non-medical services.

This strategic analysis will help your business meet critical community needs, align with your vision and resources, and ensure all staff are comprehensively trained.

Explore the distinctions between Non-Medical and Medical Home Care Businesses on our blog to unlock your venture’s potential.

Assembling Your Dream Team: The Heart of Home Care

At the heart of exceptional home care lies a dedicated, skilled team encompassing healthcare professionals, certified nursing assistants, home health aides, and private caregivers. Enhancing their capabilities with training and technology, like electronic health records and telemedicine, can boost both service quality and efficiency.

Strategies for Assembling a Compassionate Team:

• Competitive Compensation : Offer fair wages and benefits to attract and keep the best talent.
• Professional Development : Support skill enhancement through training and certification.
• Culture of Kindness : Promote a workplace characterized by respect, empathy, and teamwork.

Focusing on service quality and team development, including hiring qualified medical professionals and offering comprehensive training for private caregivers, your business can become a trusted pillar of care and compassion in your community.

Franchises like Nurse Next Door equip Franchise Owners with thorough training and resources , ensuring standards of care are met and your team embodies the values of your service.

Discover comprehensive strategies for forming and nurturing a team aligned with your home care service’s principles in our guide: How to Find the Best Caregivers for Your Home Care Business .

Launching a home care business involves detailed financial planning, from accurately estimating startup costs to finding funding and predicting financial outcomes. This groundwork is crucial for navigating economic hurdles and avoiding common traps that threaten many home care startups. A well-devised strategy can unlock opportunities and steer your business toward success.

For comprehensive insights on financial planning and funding, see: How to Finance a Home Care Franchise .

Financial Planning Steps:

• Estimate Startup Costs : Understand the initial investment needed, which varies by agency type covering costs of licensing, leasing, equipment, initial payroll, and other startup costs .
• Open a Business Bank Account : Maintain a separate account for managing finances, tracking expenses, and simplifying tax processes.
• Forecast Financial Performance : Use market research and data to inform your financial projections and understand potential revenue and expenses.
• Develop a Financial Plan : Craft a plan that details revenue streams, expenditures, cash flow projections, and working capital maintenance strategies for startup and growth.
• Secure Funding : Explore financing options like loans, grants, venture capital, and franchise financing to support early operations and facilitate growth.

These financial planning steps are designed to guide you through the complexities of starting and running a successful home care business, from the initial phase of estimating start-up costs to the ongoing management of business operations and attracting clients.

Maximizing Revenue in Home Care: Diverse Strategies

Diversifying revenue streams is critical for the financial stability and growth of your home care agency. Expanding your client base and exploring new markets are key strategies.

Learn how to boost your home care business’s financial health at: Home Health Care Business Income Ideas .

Revenue Expansion Strategies:

• Broaden Service Offerings : Include a mix of medical and non-medical services to widen your market and revenue opportunities.
• Specialize in Niche Services : Cater to specific needs with services like dementia care or post-operative rehabilitation.
• Implement a Referral Program : Use incentives to encourage referrals from existing clients and healthcare professionals, boosting client acquisition.
• Utilize Digital Marketing : Increase online presence and attract clients through social media, SEO, and content marketing.

Adopting these financial and revenue expansion strategies provides a solid foundation for sustainable growth and stability in your home care business.

Launching a home care business transcends planning and market analysis—it demands the establishment of efficient operations and a solid policy framework to steer daily operations and uphold business ethics.

Key steps for your launch plan include:

• Develop a Comprehensive Marketing Plan : Employ digital marketing, community outreach, and healthcare partnerships to gain market traction.
• Set Up Operations : Implement software solutions for finance, billing, payroll, scheduling, and timekeeping to enhance efficiency and accuracy.
• Draft Formal Policies and Procedures : Establish guidelines covering client admissions, care plans, scheduling, employment, training, billing, and client rights to ensure service quality and compliance.
• Host a Launch Event : Present your services to the community, fostering potential client relationships and networking with healthcare professionals.
• Utilize Social Media : Produce compelling content across platforms to boost brand awareness and engage with the community.
• Offer Promotions : Attract initial clients with special offers to encourage referrals and grow your client base.
• Engage in Local PR : Increase your visibility through local media to build brand credibility.

Nurse Next Door guides you through the launching phase, from market entry to client engagement and establishing operational and procedural foundations, ensuring a successful start.

Establishing a strong brand and online presence is vital for industry leadership. Effective branding communicates your values and care excellence, while targeted marketing strategies enhance visibility and engagement.

• Craft a Unique Value Proposition (UVP) : Highlight what differentiates your services.
• Digital Marketing : Utilize SEO, content marketing, and social media to engage your audience.
• Community Engagement : Boost brand visibility and trust by participating in local events.
• Educational Content : Establish your business as a thought leader with valuable home care information.

Explore comprehensive marketing strategies in our guide: How to Market Your Home Care Business .

Expanding Your Reach: Growth Strategies for Home Care

For sustained growth of your home health care business, focus on broadening your services while maintaining quality:

• Client-Centric Care : Always prioritize personalized care plans and feedback mechanisms to ensure client satisfaction.
• Forge Strategic Partnerships : Collaborate with healthcare providers, personal care agencies, and rehab centers to diversify your services and referral sources.
• Continuous Improvement : Commit to regular staff training and adopting industry best practices to enhance service quality.
• Market Analysis : Stay ahead by analyzing market trends and adjusting your business strategies accordingly.
• Attend Industry Conferences : Stay updated with the latest trends, technologies, and regulations.
• Join Professional Networks : Connect with other home care providers to share insights and best practices.

Quality focus and adaptability are key to long-term success.

Consider joining the Nurse Next Door franchise for additional support, including networking, mentorship, and access to an online learning portal.

Embarking on a home care business journey involves challenges, yet each one opens doors to growth and innovation. Nurse Next Door’s franchise model offers a solid foundation to navigate these challenges, providing a comprehensive suite of tools and support for building a thriving home healthcare enterprise. Key advantages of partnering with us include:

🌼 Embracing the Happier Aging™ Philosophy : Beyond starting a business, it’s about committing to a mission that focuses on enhancing the joy and fulfillment of our clients’ lives , aligning with a purpose-driven venture for significant impact.

🌼 Attracting and Retaining Qualified Staff : We emphasize strategic hiring, competitive compensation, and in-depth training to ensure our care quality remains unparalleled.

🌼 Building a Client Base : Our established brand and marketing prowess streamline the process of client acquisition, leveraging effective strategies and community networking.

🌼 Managing Operational Costs: Our franchisees receive practical advice on managing expenses and fostering operational efficiency without compromising on service quality.

🌼 Comprehensive Support System : Enjoy the benefits of our proven business model, including market research, an industry-specific business plan template, and expert guidance on regulatory compliance, setting a solid foundation from the start.

🌼 Operational Excellence : With extensive training for owners and staff, ongoing support, proprietary technology, and access to our centralized call center, we ensure the delivery of exceptional care and service.

🌼 Marketing and Growth : Our well-known brand and targeted marketing strategies offer a significant edge in attracting clients and expanding your business potential.

Joining Nurse Next Door means integrating into a community that values quality, compassion, and the well-being of every individual we serve. Our comprehensive support covers operational efficiencies, marketing, and recruitment, positioning you for success and enabling you to make a positive community impact through the Happier Aging™ philosophy .

Testimonial from Franchise Owner Iris: “Nurse Next Door has provided us with the tools to build a successful business. The passion for starting a full home health care business for seniors has always been ours.”

Start Making Lives Better: Launch Your Home Care Business

Embarking on a home healthcare business journey involves strategic planning and overcoming industry hurdles. Nurse Next Door’s franchise model offers unique access to the home care sector, blending support with innovation for community impact.

We encourage exploring state-specific resources and our personalized support to navigate this rewarding venture confidently. Begin your impactful journey in the home care industry.

Connect with a Franchise Development Business Manager at Nurse Next Door to explore our support for your aspirations. Contact us today at 1-855-737-6803.

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How to Start a Home Health Care Business

Many people will, at some point in their life, need help with basic daily tasks. Simple things, like cooking, shopping, cleaning and going to appointments, can be challenging for elderly seniors, people with chronic medical conditions and patients recovering from surgery. A home care business helps people who need living assistance. In many cases, the services that a business provides are crucial to keeping clients in their homes.

While home care businesses help people of all ages, many of their clients are seniors. As the Baby Boomer generation ages, the industry is expected to grow significantly. The Bureau of Labor Statistics predicts 17 percent job growth for nursing assistants and 38 percent growth for home health aides through 2024, both of which are “much faster than average.” (Not all home care business owners have these certifications, but many people with these certifications work within the industry.)

Learn how to start your own Home Health Care Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a home health care business by following these 10 steps:

• Plan your Home Health Care Business
• Form your Home Health Care Business into a Legal Entity
• Register your Home Health Care Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Home Health Care Business
• Get the Necessary Permits & Licenses for your Home Health Care Business
• Get Home Health Care Business Insurance
• Define your Home Health Care Business Brand
• Create your Home Health Care Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your home health care business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Home Health Care Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your home health care business?

Business name generator, what are the costs involved in opening a home health care business.

A home care business can be started with very little capital and hassle. Other than any licensing fees that a state requires, there are few startup costs. The two essential elements are a reliable vehicle and a cell phone, but most business owners use their personal vehicle and phone. Many business owners also use a computer, which they usually already have as well. According to Senior Service Business , these startup costs can be kept under $900.

To keep startup costs low, many business owners begin by offering only non-medical assistance. This helps ensure they don’t have to pay for classes and reduces how much red tape they must go through.

Businesses are typically run from a home office, so there aren’t any startup costs for office space.

What are the ongoing expenses for a home health care business?

The ongoing expenses for a home care business are maintenance and fuel for a vehicle, a phone bill and any internet access costs. These expenses should be considered when determining a business’ hourly rate.

Who is the target market?

A home care business’ ideal client is someone who wants to continue living on their own but needs help with basic tasks. This may be:

• An elderly senior who wants to remain in their home rather than assisted living
• A patient who recently had surgery and would like to recover in their own house
• Someone who has a medical condition and needs someone who can help with basic tasks (possibly while another service provides medical assistance)

Additionally, clients sometimes also need some savings, because home care isn’t always covered by medical insurance.

How does a home health care business make money?

A home care business makes money by charging clients an hourly rate on a fixed weekly schedule. Some businesses also offer clients a live-in service for a fixed monthly fee.

How much home care businesses charge varies a lot depending on where they’re located. Businesses in rural areas typically charge around $18 per hour, while those in major cities may charge as much as $40 per hour. The national average, Senior Service Business says, is $24 per hour.

How much profit can a home health care business make?

According to a report cited by USA Today , home health care franchises are among the five most profitable franchises. In the report that USA Today noted, some franchises grossed over $1 million -- and had gross margins between 30 and 40 percent. New businesses make an average of $248,000 in their first year, with 12 to 15 percent of that being net profit.

How can you make your business more profitable?

Home care businesses can charge more by offering medical services. Getting set up to provide medical services takes work, though, as aides must be certified and the business must be set up to accept health insurance (especially Medicare). Additionally, in order to accept Medicare, all of the medical services a business provides must be overseen by a physician -- which requires establishing relationships with physicians. For these reasons, many business owners don’t pursue these opportunities until they’re ready to purchase a franchise.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your home health care business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate Home Care Business:

• Home Health Aid Licensing (HHA) :
• Certified Nurse Assistant (CNA) :

In addition to these state requirements, certain local licensing or regulatory requirements may apply. For more information about local licenses and permits:

• Check with your town, city or county clerk’s office
• Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Services Contract

Home care businesses should require clients to sign a services agreement before taking on a new client. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Home Health Care Business needs and how much it will cost you by reading our guide Business Insurance for Home Health Care Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a home health care business

Just as a home care business can often be started through word of mouth, this is also the most effective way to promote and market a business. Most clients know other people in similar situations who may also want assistance. A referral from a current client will often be more effective than a traditional advertisement.

How to keep customers coming back

To set itself apart from similar businesses, a home care business must establish its reliability. Being flexible enough to adjust to a client’s change in schedule can go a long way in establishing trust. For instance, taking a client to an unscheduled medical appointment if a health-related issue arises will make life much easier for family and friends, and they’ll be more likely to continue requesting help and more willing to provide recommendations.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Anyone who is interested in helping others may be well-suited for starting a home care business. Business owners often spend a lot of time with their clients, and being able to build relationships is important. Patience and compassion are also vital, as some clients may be difficult to work with at times.

Additionally, business owners should be self-disciplined and organized. They’re often expected to help with multiple tasks that have to be prioritized.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a home health care business?

Home care business owners spend much of their time with clients. A single visit may entail any of the following:

• Preparing meals
• Basic cleaning
• Running errands
• Taking your client to appointments and social engagements

Some business owners also help with basic hygiene and/or provide simple medical services. Doing this type of work usually requires specialized certifications.

As a home care business grows, the owner’s responsibilities typically transition to more administrative tasks. They’ll spend more time finding and managing assistants and aides, and less time working directly with clients.

What are some skills and experiences that will help you build a successful home health care business?

Home care business owners typically don’t need specialized training unless they offer medical services. In some states, non-medical home care businesses need a license, but this is more of a legal process than a training program. Good people, communication and business skills are usually all that’s required to get started in this industry. Business owners that are lacking in any of these areas may want to take a class at a local community college or attend a seminar on the area they’re weak in.

Business owners that want to offer medical services will need specific training. There are two licenses that aides can get: certified nursing assistant (CNA) certification, which is a basic certification, and home health aide (HHA) certification, which is more advanced. The American Red Cross offers CNA classes in several states, and All Nursing Schools lists classes throughout the country. Learn.org lists several schools that provide HHA training.

What is the growth potential for a home health care business?

A home care business may be a small, one-person operation, or it can have several aides serving a city or geographic region.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a home health care business?

Home care business owners are sometimes able to secure their first client or two without any marketing campaign. Simply letting friends and family know you’re going to start a home care business could lead to a client. Many people know at least one person who could use assistance, and they’d gladly recommend a business owner they know and trust.

How and when to build a team

Many home care business owners hire their first employees after they personally aren’t able to take on any additional clients. At this point, it often makes sense to purchase a franchise. Franchises usually have hiring processes in place and pre-existing relationships with medical providers, which makes it easier to take on both new employees and new clients. A strong franchise brand can also provide a business with credibility.

Franchise Direct lists a number of home care business franchises. The franchises’ minimum startup costs range from $975 to $250,000, with most falling between $20,000 and $100,000.

Useful Links

Industry opportunities.

• Franchise opportunities for a home care system
• Franchise possibilities for a home care system

Real World Examples

• Tips to succeed in real world success within a home care system
• Home Health care is one of the most profitable businesses

Further Reading

• Starting a Home care business
• Step by step for starting a Home Health Care business

Entrepreneur Interviews

Read Interview

Have a Question? Leave a Comment!

When care comes home

If your physician decides that home health care is right for you, after an injury or illness, NHC Home Care is here for you. Our experienced team of nurses and therapists are dedicated to provide our patients with the knowledge, skills and care they need to recover, take charge of their own health and be able to remain safely at home.

Most people who require these services are recovering from an illness, injury, surgery or are living with chronic medical conditions with acute changes requiring frequent changes in medication or other treatment. Nurses are available on-call to patients 24 hours a day, 7 days a week.

Home Health Care Services, provided by Registered Nurses and Licensed Practical Nurses, include:

• Patient assessment
• Medication monitoring
• Intravenous infusions
• Ostomy care
• Catheter care
• Pain management
• Palliative care
• Patient Education
• Care giver education

Physical Therapy, Occupational Therapy, Speech Therapy

• Home exercise program
• Therapeutic exercises
• Fall prevention programs
• Strengthening and balance exercises
• Post-surgical care to improve mobility
• Heart and Lung deficit exercises

Home Care is available, with a physician’s order, to patients who meet the qualifying criteria of the following payers:

• Medicare / Medicaid
• Managed Care
• Private Insurance

National HealthCare Corporation 100 East Vine Street Murfreesboro, TN 37130 P: (615) 890-2020

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The 3 Best Home Care Agencies for Seniors in Moscow, ID for 2024

Caring.com offers a free service to help families find senior care. To help you with your search, browse the 12 reviews below for homecare agencies in Moscow. On average, consumers rate home care in Moscow 3.5 out of 5 stars.

To speak with one of our Family Advisors about senior care options and costs in Moscow, call (855) 948-3865 .

Home Care Agencies in Moscow, ID

Opportunities Unlimited Inc

325 Snake River Avenue,, Lewiston, ID, 83501

"The caregivers at CHOICES have proven that they respect my father's choices and has really given us as caregivers a chance to focus on our family time and not have to worry about our father. They accept Idaho medicaid now which has been a blessing. ..."

Family Resource Home Care - Palouse

220 East 5th Street Suite 209, Moscow, ID, 83843

( 2 reviews )

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AAging Better In-Home Care

601 East Seltice Way, Suite 101, Post Falls, ID, 83854

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Medicaid: CMS Final Rules Aim to Expand Access, Provide Parity with Commercial Markets

The Centers for Medicare & Medicaid Services (CMS) published two significant updates to its Medicaid regulations on May 10, 2024. The two Final Rules, a Medicaid Access Rule and a Medicaid Managed Care Rule , impose new requirements on states and Medicaid managed care plans that will enhance and standardize reporting, monitoring, and evaluation of Medicaid access to services. This summary highlights the key provisions of the two Final Rules that are likely to impact Medicaid reimbursement.

1. New Medicaid Access Reporting and Enforcement May Put Upward Pressure on Medicaid Reimbursement

Federal law requires Medicaid programs to assure that payments are sufficient to enlist enough providers so that care and services are at least as available under other programs. In the Medicaid Managed Care Rule, CMS emphasized the connection between reimbursement and access, stating that payment rates are “inextricably linked with provider network sufficiency and capacity.” In the new Final Rules, CMS requires both states and Medicaid managed care plans to report and analyze payment rates as well as access to services. If access issues are identified, the state and Medicaid managed care plans will be required to make timely changes to address the issues, such as by enrolling new providers, increasing rates to providers, expanding telehealth, or addressing other barriers.

• Corrective Action Plans for Access Deficiencies . When access deficiencies are identified in the state fee-for-service delivery system or in a Medicaid managed care plan network, CMS will require the State to submit for federal approval a corrective action plan (CAP) within 90 days of identification. Fee-for-service CAPs must be completed within 12 months, such as through increases to payment rates, improving outreach to providers, reducing barriers to enrollment, additional transportation to services, providing for telehealth, or improving care coordination. Similarly, a “remedy plan” for a Medicaid managed care access issue must identify specific steps the managed care plan will take to address the identified issues within 12 months. Implementation and enforcement of these remediation requirements will be an important area for Medicaid plans and providers to monitor in forthcoming years, as the Rules create new access standards and expand areas where Medicaid access deficiencies can be identified. For example, states are required to establish new mechanisms for beneficiary and provider feedback to ensure access to care, using tools like hotlines, surveys, ombudsmen, or reviews of grievance and appeals data. In addition, states are required to take data on proposals to modify Medicaid reimbursement rates and must establish interested parties advisory groups for provider rates and access to care issues. It remains to be seen what CMS, states, and plans will require in areas with persistent Medicaid access shortages.
• Managed Care Appointment Wait Time Standards and Secret Shoppers . The Medicaid Managed Care Rule also imposes specific new requirements for measuring access in the form of new federal “appointment wait time” standards. CMS promulgated these requirements in response to data indicating that enrollees in Medicaid plans are significantly less likely to successfully schedule a primary care or specialty appointment when compared to private insurance. Beginning with plan rating periods that begin on or after July 9, 2027, Medicaid managed care plans will be expected to meet the following minimum federal standards: for primary care and obstetrical and gynecological (OB/GYN) services, routine appointments must be held within 15 business days of a requests, and routine appointments for mental health or substance use disorder services must be within 10 business days. Compliance with these standards will be established if the plan achieves a rate of appointment availability of at least 90%, as determined by a survey conducted by “secret shoppers.” Meeting the federal appointment wait time standards are likely to pose a challenge. In finalizing its proposal, CMS acknowledged that longer time frames, such as 30 to 45 calendar days, “may be a realistic timeframe currently for some specialist appointments,” but finalized the 10- or 15-day requirements for the identified categories of service. These services were selected because they are “indicators of core population health” and may prevent urgent or emergent issues. CMS declined to define what is included as a “routine” appointment subject to the wait time standards, leaving some flexibility for states. States may also establish an exception process, such as for plans operating in areas with a health provider shortage, if the process is specified in the plan contract and includes evaluation of payment rates offered to providers of the identified service types. Appointments offered via telehealth will only count toward compliance with the appointment wait standards if the provider also offers in-person appointments to the plan’s enrollees.
• Fee-for-Service Rates . In the Medicaid Access Rule, CMS for the first time establishes a numerical floor for fee-for-service Medicaid rates, requiring them (in the aggregate, including base and supplemental payments) to equal at least 80% of the comparable Medicare rate. In addition, fee-for-service payments for a benefit category may not be reduced by more than 4% per year. Proposals to change fee-for-service rates must also be accompanied by documentation analyzing the impact of the rate change on access to providers, including ways the state will reasonably respond to or mitigate concerns raised by providers or patients.
• Comparative Rate Analyses for Certain Services (Managed Care and Fee-for-Service) . Both states and Medicaid plans will be required to conduct and report comparative rate analyses for certain core services. For primary care services, OB/GYN services, and outpatient mental health and substance use disorder services, rates for evaluation and management (E/M) codes must be compared to Medicare physician fee schedule payments for the same services. In addition, states will need to publish the “average hourly Medicaid fee-for-service schedule payment rates” for certain unique Medicaid services, namely personal care, home health aide, homemaker and habilitative services, and the number of Medicaid claims and beneficiaries served. Medicaid plans must publish their rates for these same services as a comparison to the state fee-for-service rate. State comparative rate analyses must be reported no later than July 1, 2026, and plan analyses are required for plan rating years beginning on or after July 9, 2026.

2. CMS Permits States to Increase Medicaid Managed Care Reimbursement to Achieve Parity with Commercial Plans

The Medicaid Managed Care Rule includes groundbreaking new authority that codifies the ability of states to direct payments to Medicaid providers to enhance payment rates to equal the “average commercial rate” for the same services. This authority is specific to services reimbursed through Medicaid managed care plans, and marks a significant policy change, as fee-for-service payments for many categories of services are capped at Medicare rates, which are typically lower than commercial rates. CMS introduced this authority by emphasizing the need for Medicaid managed care plans to compete with commercial plans for providers to participate in their network, so that they can furnish comparable access to care. Payment parity between Medicaid and commercial plans would represent an enormous shift in the industry and would undermine the long-standing narrative of Medicaid as a poor payer. However, the ability of states to take up this new authority will depend on state and federal determinations related to the identification of a permissible sources of the non-federal share of the enhanced payments.

• State Directed Payments based on Average Commercial Rates . Many Medicaid managed care delivery systems include significant “directed payment” programs where the state enhances reimbursement to a class of providers for services furnished through a Medicaid managed care plan. In the preamble to the Managed Care Final Rule, CMS estimates that nearly $52 billion in directed payments are paid each year. Directed payments are unique to the Medicaid program and have been used to enhance rates (often with a different source of non-federal share) for providers beyond the base rates that otherwise would be paid by Medicaid managed care plans. Providers receiving directed payments may be subject to additional requirements, including participation in delivery system reform of value-based payment initiatives. The new rule codifies CMS’ practice of approving state proposals to direct payments so that total reimbursement to a provider equals the average commercial rate for inpatient and outpatient hospital services, nursing facility services, and qualified practitioner services at academic medical centers. Directed payments for other categories of services may also potentially be paid at rates that increase reimbursement to equal to the average commercial rate, if those rates are approved as “reasonable, appropriate, and attainable.” While CMS had considered developing an aggregate cap on state reliance on directed payments, no such limitation was finalized.
• Some State Directed Payments will Need to be Restructured . While the Medicaid Managed Care Rule cements the role of state directed payments as a critical component of Medicaid managed care, it made some changes to how directed payments can be distributed that will require many states to revise their programs. Effective for rating periods beginning on or after July 9, 2027, states will no longer have flexibility to distribute funding to Medicaid plans through “separate payment terms” that are paid outside of Medicaid capitation rate processes. Instead, funding for the directed payments will need to be paid as an adjustment to monthly capitation rates that are based on plan enrollment that is reviewed and certified as part of the state actuarial process. Distribution of funding in this manner may introduce new uncertainty for plans, provider classes receiving funds, and for state budgets.
•   Attestation Requirements for Directed Payments Funded by Health-Care Related Taxes . While the new Medicaid rules do not modify the law with regard to permissible sources of the non-federal share of Medicaid payments, CMS has finalized its proposal to require recipients of a state directed payment to submit an attestation that they do not participate in an impermissible “hold harmless arrangement” for any health care related tax, starting January 1, 2028. This requirement is part of an ongoing legal dispute between CMS and multiple states that operate health care related tax programs that fund provider taxes, based on CMS’ concerns that the states had failed to demonstrate to its satisfaction that the tax programs meet applicable legal requirements, due to the existence of arrangements among private entities to redistribute Medicaid funding. The new attestation requirement would provide CMS greater information about the existence of these private arrangements. To submit the attestation, Medicaid providers would need to evaluate and attest to whether they participate in an arrangement that constitutes a “hold harmless,” notwithstanding the ongoing disputes between CMS and states. An informational bulletin issued contemporaneously with the Managed Care Rule announces that CMS will not enforce the hold-harmless provisions against states with respect to arrangements that were in place as of April 2024 until January 1, 2028; CMS expects states to use the time to transition the existing arrangements.
• Inclusion of Out-of-Network Providers . Historically, CMS has not allowed state directed payment arrangements to benefit providers that did not have a network provider contract with a Medicaid managed care plan, even if they furnish services to plan enrollees. The revised rules remove this restriction, allowing states to expand their programs so that funding is distributed to all providers of a service.

3. CMS Continues Authority for Medicaid plans to Cover Alternative Services and Settings to Address Health-Related Social Needs

In prior rulemaking, CMS authorized states to work with Medicaid plans to cover “in-lieu of services” (ILOS), which are alternative services and settings that are not covered by the State plan, but which may be covered by plans. These alternative services and settings include items such as payment for sobering centers, medically tailored meals (less than three meals per day), supportive housing assistance, or personal care services. The provision of ILOS can help address health-related social needs of individuals, provide greater “whole person care,” and reduce the incidence of traditional covered services such as inpatient or emergency room utilization. The Medicaid Managed Care Rule builds on this authority, further establishing ILOS as part of the Medicaid program and establishing new fiscal and programmatic requirements.

• Aggregate Cap on ILOS . Beginning with rate years starting on or after July 9, 2024, states will be required to calculate an ILOS cost percentage and ensure that no more than 5% of total plan capitation payments are associated with ILOS. While this caps total investment in ILOS, 5% would represent a significant expansion of the current incidence of ILOS in most states, and CMS encourages states approaching this limit to transition some ILOS to services it covers as benefits.
• Enhanced Reporting, Evaluation and Oversight . The new rule would significantly expand state responsibility for reporting and evaluating the use of ILOS. States whose ILOS cost percentage exceeds 1.5% must submit cost information and conduct retrospective evaluations of the ILOS, including its impact on utilization of State plan approved services or settings and associated cost savings, and its impact on health equity efforts.

4. Minimum Reimbursement for Home-and-Community-Based Service (HCBS) Direct Care Workers

In addition to services furnished by home health agencies, most Medicaid programs cover home and community-based services for Medicaid beneficiaries, which include various service components, such as homemaker services, personal care services, and home health aide services, intended to allow individuals with medical needs to remain in the community and out of institutional settings. In the Medicaid Access Rule, CMS’ updated requirements applicable to HCBS programs.

• Sharing of Medicaid Rates with Direct Care Workers . The Medicaid Access Rule will require states to ensure that Medicaid HCBS providers spend at least 80% of the Medicaid payments they receive on total compensation for the direct care workers who furnish the services. This requirement is the first time CMS has distinguished the adequacy of rates paid to a provider agency from those which are passed on to employees or contractors who perform the services. States have the authority to exempt small providers from the 80% requirement and subject them to alternate minimum performance levels. States can also exempt some providers facing extraordinary circumstances from the requirement through a hardship exemption request. These requirements do not take effect until July 9, 2030.

The compliance date for the changes made by the Medicaid Access Rule and the Medicaid Managed Care Rule are staggered and will take effect over the next several years. Health care providers, health plans, states, and other entities involved in the financing of the Medicaid program should begin planning for these changes, which will shake up the Medicaid landscape in ways designed to expand access to services for Medicaid patients.

Foley is here to help you address the short- and long-term impacts in the wake of regulatory changes. We have the resources to help you navigate these and other important legal considerations related to business operations and industry-specific issues. Please reach out to the authors, your Foley relationship partner, our  Health Care & Life Science Sector , or to our  Health Care Practice Group  with any questions.

Anil Shankar

Related insights, ldts: fda rolls out a phased implementation for new regulatory requirements, keeping track of your data — what you need to know about fda’s draft guidance on data integrity for in vivo bioavailability and bioequivalence studies, 50-state survey of telehealth insurance laws.

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• How we review life insurance companies

Best Life Insurance of May 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Best life insurance companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

Best life insurance for customer satisfaction

State farm life insurance.

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review here.

Best life insurance for older adults

Prudential vul protector life insurance.

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review here.

Best life insurance for long-term care

Columbus life insurance.

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Best life insurance for high returns on income

Allianz life insurance.

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Best life insurance for agents

New york life insurance.

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Best life insurance for term life

North american life insurance.

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Summary of the best life insurance companies

• Best for customer satisfaction:   State Farm Life Insurance
• Best for older adults:   Prudential Life Insurance
• Best for agent support:   New York Life Insurance
• Best for long-term care:   Columbus Life
• Best for high returns:   Allianz Life
• Best for term life:   North American Company

How to pick the best life insurance policy for you

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

Methodology: How we review life insurance companies

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best life insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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• Main content

Ukraine-Russia war: Latest updates

Scroll down to catch up on all the main developments and analysis of the war in Ukraine.

Friday 24 May 2024 14:44, UK

• Big picture: What you need to know this week

While we are not running our usual updates, here is a rundown of the main events:

Vladimir Putin is ready to halt the war in Ukraine with a ceasefire that recognises current battlefield lines, four Russian sources have told the Reuters news agency.

Three of those sources claimed the Russian leader had expressed frustration about what he views as Western-backed attempts to hinder ceasefire negotiations.

"Putin can fight for as long as it takes, but Putin is also ready for a ceasefire - to freeze the war," a senior Russian source who has reportedly worked with Mr Putin and has knowledge of top-level conversations in the Kremlin, told Reuters.

Read more here...

Zelenskyy visits Kharkiv

Volodymyr Zelenskyy has travelled to the northeastern Ukrainian city of Kharkiv, which has been facing intensive Russian air attacks. 

The Ukrainian president met senior military leaders and travelled to the site of a major printing house - a day after it was destroyed in a Russian missile attack that killed at least seven people. 

Further developments :

• Russian forces have had partial success near the village of Ivanivka in the east of Kharkiv region, the Ukrainian military said. Ukraine's general staff said 10 battles took place, with one successfully repelled and more ongoing near the villages of Petropavlivka, Ivanivka, Stelmakhivka, Nevske and Druzhelyubivka;
• Volodymyr Zelenskyy will travel to Spain on Sunday, Spanish radio station Cadena SER reported. The Ukrainian president postponed visits to Madrid and Lisbon earlier this month because of intense fighting in Kharkiv;
• Vladimir Putin is planning to visit North Korea, Russian state news agency RIA said.

Our live coverage will remain paused today, but let's catch you up on where things stand and on any updates overnight.

• Russia said 35 rockets and three drones were fired into Belgorod and overnight, claiming to have destroyed all of them;
• Blasts were heard in Kherson as Russia shelled the city, said its regional governor Roman Mrochko;
• The leader of Russia's Chechnya region, Ramzan Kadyrov, met  Vladimir Putin and offered to send more fighters to the frontline;
• Volodymyr Zelenskyy issued a fresh plea for upgraded defence systems to protect Ukraine's cities against guided bombs, which he described as the "the main instrument" now used by Moscow';
• A Russian airstrike on Ukraine's northeastern city of Kharkiv yesterday destroyed a cafe, damaged a nearby residential building and set a petrol station ablaze, with local officials saying ten people were wounded.

As we've not been providing rolling coverage of the war in Ukraine today, here is a quick update on what's been happening since this morning. 

One of the most significant new stories is the UK accusing China of providing or preparing to provide lethal aid to Russia for use in the war against Ukraine. 

Defence Secretary Grant Shapps told a news conference this morning that US and British defence intelligence had evidence "lethal aid is now, or will be, flowing from China to Russia and into Ukraine".

He called this a "significant development".

We also heard from the Kremlin this morning, which said "in-depth dialogue" was needed to reduce rising tensions between Russia and the West - particularly with regards to nuclear issues. 

Kremlin spokesperson Dmitry Peskov accused the "collective West" of refusing to engage with Russia despite the potential dangers. 

Here are more of the top stories: 

• Russian forces have taken over the village of Klishchiivka in Ukraine's eastern Donetsk region, close to the city of Bakhmut, according to Russian news agencies 
• At least nine people have been injured in a Russian air attack on the Ukrainian city of Kharkiv
• Russia accused Ukraine of using a drone to attack a non-nuclear facility at the Zaporizhzhia nuclear plant, causing no critical damage
• Moscow said it is bolstering its efforts to protect its energy infrastructure from drone attacks
• Six children were handed over to Ukraine by Russia and reunited with their families, after a deal was brokered by Qatar. 

We're pausing our coverage of the Ukraine war for the moment.

Scroll through the blog below to catch up on today's developments.

Vladimir Putin has praised the late president of Iran, Ebrahim Raisi, and said he was a "reliable partner".

Raisi was killed in a helicopter crash near the Azerbaijan border over the weekend along with his foreign minister and seven others.

Speaking on the leader, Mr Putin said he was "a man of his word" who carried out any agreements the pair made.

"He was truly a reliable partner, a man sure of himself, who acted in the national interest," Russian news agencies quoted Mr Putin as telling Vyacheslav Volodin, chairman of Russia's lower house of parliament.

"He was, of course, a man of his word and it was always good to work with him. What I mean is if we came to an agreement on something, you could be sure the agreement was carried out."

The Kremlin leader asked Mr Volodin, who will be attending memorial events in Iran, to pass on "words of our sincere condolences in connection with this tragedy".

Since the start of the war in Ukraine, Russia has strengthened political, trade and military ties with Iran in a deepening relationship that the US and Israel view with concern.

Heavy fighting in the Pokrovsk area in eastern Ukraine has forced Ukrainian troops to engage in "manoeuvres," the Ukrainian military's general staff have said.

Their report said Pokrovsk, northwest of the Russian-held city of Donetsk, remains the front's "hottest" sector.

"In some areas, the situation requires our troops to engage in manoeuvres," the general staff report reads.

Volodymyr Zelenskyy has referred to the region and adjacent areas as "extraordinarily difficult" in his nightly video address.

Volodymyr Zelenskyy has said allies are taking too long when it comes to decisions on military support for Ukraine.

In an interview with Reuters, the Ukrainian leader said every decision which everyone came to was "late by around one year".

"But it is what it is: one big step forward, but before that two steps back. So we need to change the paradigm a little bit," he said.

"When we're quick, they fall behind. And then there's a gap - six, eight months of unpassed (aid) packages, and then two-three months of supplies - and a year goes by. We would like not to lose the advantage."

Mr Zelenskyy also said Ukraine had never used Western weapons on Russian territory.

A senior Russian diplomat has said that the EU plan to channel profits from frozen Russian assets to Ukraine would have "unpredictable" consequences, according to the TASS news agency.

According to TASS, Kirill Logvinov, Russia's acting permanent representative to the EU in Brussels, told Russia journalists: "The only predictable thing is that those in the EU will be obliged sooner or later to return to our country what has been stolen."

For context : In March the European Commission proposed transferring to Ukraine profits generated by Russian central bank assets frozen in Europe.

The plan would see 90% channeled through the European Peace Facility fund to buy weapons for Ukraine. 

The rest would be used for recovery and reconstruction.

Russia's defence ministry has said it has begun a round of drills involving tactical nuclear weapons. 

The exercises were announced by Russian authorities this month in response to remarks by senior Western officials about the possibility of deeper involvement in the war in Ukraine.

It was the first time Russia has publicly announced drills involving tactical nuclear weapons, although its strategic nuclear forces regularly hold exercises.

According to the ministry's statement, the first stage of the new drills include nuclear-capable Kinzhal and Iskander missiles.

The maneuvers are taking place in the southern military district, which consists of Russian regions in the south.

A Moscow court has ordered a Russian journalist who covered the trials of the late Russian opposition politician Alexei Navalny and other dissidents must  remain in custody pending an investigation and trial on charges of extremism.

Antonina Favorskaya was arrested in March. 

She is accused of collecting material, producing and editing videos and publications for Navalny's Foundation for Fighting Corruption, which had been outlawed as extremist by Russian authorities, according to court officials.

Today, Moscow's Basmanny district court ordered that she remain in custody until at least 3 August.

Kira Yarmysh, Navalny's spokeswoman, said earlier that Ms Favorskaya did not publish anything on the foundation's platforms and suggested that Russian authorities have targeted her because she was doing her job as a journalist.

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