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How to Prevent A Homecare Startup Failure

If you’re thinking about starting a homecare agency, you’re likely evaluating the risk-to-reward ratio. It’s natural to be anxious when launching any new business, and you may wonder if you’re making the right decision. In this article, we’ll discuss why now is the time to dive into homecare, as well as the steps to take in order to avoid a homecare startup failure.homecare startup

Why Choose a Homecare Startup

According to Pew Research Center, nearly 10,000 Baby Boomers reach the age of 65 each day. As this population ages, the need for medical care increases. Also contributing to the growing need for healthcare is the rise of chronic illnesses including heart disease and diabetes.

So why home healthcare? We all want to remain independent and live at homes as long as possible. In fact, approximately 80 percent of elderly people receiving long-term care live in private homes. This number, the continual aging of Baby Boomers and the rise of chronic disease, demonstrates the growing need for competent homecare providers.

Steps to a Successful Homecare Startup

Once you’ve made your decision, it’s time to get to work. Just as with any business, there are numerous factors that determine the success or failure of your startup. Here’s a guideline to follow when you’re ready to turn your dream into reality.

Do Your Research

Before any planning begins, comprehensive research should be conducted. Evaluate the demographics and competition in your desired area. Find out what services are already offered and what is lacking. Uncover the average prices charged for like services in the community. Arming yourself with knowledge allows you to make good decisions and more forward with well constructed plans.

Determine How to Best Set Yourself Apart

The research done will reveal ways in which you can make your organization different (dare we say “better?”) than the competition. Study what you’ve discovered and brainstorm which service gaps you can fill.

For instance, do other homecare agencies in your area offer chronic disease care? By providing your aides with access to advanced chronic disease education, you set your care services apart from the competition.

Consult With an Expert

Managing a homecare organization takes a variety of skills. As the owner or leader you’ll wear many hats and need to think like a banker, a lawyer, and an HR manager.

Even with some business experience, you’ll benefit from engaging a professional with in-depth industry knowledge. An expert with homecare experience knows the ins and outs of everything from hiring requirements to Medicare compliance.

Write a Business Plan

After conducting adequate research and seeking out advice from industry experts, you’re prepared to craft a thorough plan. When drafting your business plan, be sure to include ideas for marketing your services. How will you acquire clients, build your brand, and encourage referrals?

Next, come up with a practical budget. You’ll need to include marketing spending, hiring costs, office supplies and equipment, mortgage or rent, and a financial cushion for your first year of business.

Prepare Necessary Resources

Policies and procedures manuals, job descriptions, employee handbooks and staff education are just a few of the tools required to ensure a successful homecare startup. And the numbers of needed resources only increase if you plan on accepting Medicare or private insurance payments. Putting these resources together before you open your doors will save you time and frustration down the road.

Kenyon Consulting Does Homecare Startups

At Kenyon HomeCare Consulting, we know what it takes to succeed in this industry. We can help with the entire process of your startup – research, obtaining a licence and materials preparation. Download our free Home Care Agency Start-up Checklist for more tips on how to avoid a homecare startup failure.

Category: Agency Startups & Diversification

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