10 Steps to Start a Successful Private Caregiver Agency Business
By: Rosemarie Tamunday Casanova
The caregiver providers industry is becoming one of the fastest growing healthcare industries in the United States. Market expansion is fueled by the more than 76 million baby boomers, who represent nearly 25% of the U.S. Population. This is one of the reason why now is the time for you to start a private caregiver agency business.
Aging baby boomers are placing greater demands on the healthcare market to provide care in the home. As life expectancy increases, seniors who need long-term care are choosing to stay in their homes with in home senior care that you can provide as a caregiver agency franchise owner.
Here are more reasons to believe demand for caregivers in the U.S. will continue to grow:
- 12 million people in the U.S. need home health care services today
- Home health care revenue in the U.S. has grown to $93 billion
- 90 percent of seniors plan to remain in their homes as they age
- More than 10,000 baby boomers turn 65 every day
- 61 million baby boomers will be aged 66 to 84 in 2030
By building your own caregiver business now, you can lead the way toward meaningful delivery of services as older generations retire. You can meet their needs by bringing affordable, personalized, non medical services to your community with a caregiver agency.
What Services Do Caregiver Agency Provides?
Care is customized according to individualized care needs ranging from personal care such as bathing, dressing, grooming, toileting, etc. The caregiver also provides companionship and light housekeeping allowing seniors to live independently at the comfort of their own homes as long as possible. Care is rendered from a few hours to twenty-four hours of care.
For home health aide services, caregiver agency provides bathing, dressing, toileting, assistance with transferring, cooking, meal preparation, grocery shopping, medication assistance, companionship to doctors' appointments, hair appointments, theaters, social engagements, churches, etc. The caregiver provides light housekeeping, such as dusting, vacuuming, making the bed, take the trash out, pick up mails. They can play cards, board games, and help seniors cognitively engaged.
Differences Between Caregiver Agencies & Independent Caregivers
Caregiver Agencies are licensed, insured and bonded. Clients and families are rest assured that caregivers are vetted, criminal background checked, drug tested, and certifications verified. That's a huge peace of mind knowing we have done the big part of screening the caregivers and family/client can focus on the care.
Families and seniors can also hire an independent caregivers privately if they wish to do so but such an approach can cause undue stress to the client and or family if they are acting as the agency and or employers themselves. The cost may be lower than the agency and for what seems to be a small cost-saving but can turn into a huge financial liability. Caregivers are part of the health care system and such professions are high on physical injuries. Caregivers without workers' compensation coverage can turn to the client or family for recuperation when they are hurt on the job.
How Do I Start A Private Caregiver Agency Business?
If you believe yourself well suited to own and manage a caregiver business, then here are the important steps to follow:
Create a Business Entity
Set up the business entity that will best fit your needs. There are different types of businesses available, Sole Proprietorship, Partnership, Corporation, and limited-liability company (LLC). The type of business you choose to form determines how much you pay in taxes, what type of organizational structure your business will have, and the personal liabilities that you assume as the result of that structure.
Obtain Employer ID Number
The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification.
Register with Secretary of State
In order to search business entities, you must go to your the Secretary of State's Website in your area. Once on the page, you have the option to lookup an entity (Corporation, LLC, Limited Partnership) by; Name, Officer, Registered Agent, Tax (EIN) Number, or Document Number. Decide on a business name and check availability in your state including consideration for domain name for website. When approved have letterhead, business cards, brochures printed.
Set Up your Financial Systems
On average, a new home care business will need $50,000 – $75,000 to get started. You can fund your business by obtaining a personal loan, applying a personal grant or fund yourself to get started. Make sure that you have set up your accounting system in place.
Set Up your Office
Find a location where care is affordable to population and without excessive competition. Save your money on costly high traffic commercial office space and instead find a cheaper accessible location for your employees. If your in-home caregiving business is non-medical, you will only need uniforms and a strong marketing budget. If you’re a medically licensed caregiving business, however, you will need to invest in relevant medical equipment.
Develop your Policies and Procedures
Write or purchase a policy and procedures manual to address new client admissions, plan of care, scheduling, employee and payroll records, orientation, in-service training, client billing.
Recruit and Hire your Staff
Find and hire the best caregivers available as the reputation of your business weighs heavily upon the quality of care delivered. Medical professionals commonly employed in home care include certified nursing assistants (CNAs) and home health aides (HHAs). Ensure that you bond all your employees.
Develop a Recruitment and Retention Plan for Caregivers
There are many methods to help retain caregivers, but the two most popular are recognition and training. To retain your caregivers, you need to understand them and then use that information to train new caregivers.
Market your Business
Marketing is an important part of promoting your business. Your marketing strategy should encompass not only traditional modes of advertising on radio, local TV, and the web, but take advantage of social media to attract attention to the work you’re doing. Use updates on Facebook and similar sites to talk about how your business is growing and contributing to the community.
Setting Up a Franchised Business
Franchise ownership will give you the flexibility and freedom to build a business you will be proud to call your own. If you believe yourself well suited to own and manage a caregiving business, contact a Home Care Agency Franchising sectors near you.
You can check out RIGHT ACCORD Private Duty-Home Health Care Franchise website for a more comprehensive step-by-step guide to franchising a business.
Call RIGHT ACCORD Senior Care Franchise at 1.877.754.5847
If you have a heart for caring, now is the time to make a difference in how people live. Invest with purpose in an established business model that your community will welcome. This is your chance to learn more about home care franchise ownership – and set yourself on the right path for your future.