10 Steps to Start a Successful Home Healthcare Agency

It may sound pessimistic, but people won’t stop getting sick. So, they’ll always need home healthcare in some capacity. According to Precedence Research, experts expect the home healthcare market to surpass $662.67 billion by 2027. It’s a lucrative market on so many levels for an entrepreneurial mind.

No new business comes with 0% risk, and risk will always exist. Competent entrepreneurs know that the higher the risk, the bigger the reward. However, only take calculated risks. Never jump into a seductive business idea without calculating the risks, and rewards, first.

This article gives the reader 10 steps to start a successful home healthcare agency.

1. Plan Your Operation Budget

The first thing you need to worry about is funding. How will you raise money to fund your dream home healthcare agency? Will you get a loan, borrow from friends and family, or use your savings? You’ll be at a considerable disadvantage when you don’t have enough capital to launch your agency. If you can’t generate enough cash flow, forget about asking investors for money. Always think ahead by focusing on scaling your agency as soon as possible.

2. Study Your Local Market

Success goes hand in hand with analyzing the available data. Try to dig up some demographic and psychographic data in your local market to gauge demand. Do people in your area need home healthcare services? Is there a market to serve that justifies the existence of your agency? Perhaps there is a shortage of disability support workers in your area and you want to look at diversifying your agency offering and becoming an ndis provider. Either way, contact your local health department, visit hospitals, and talk to doctors in your state. In short, study the market to discover gaps you could fill that give you a competitive advantage.

3. Register Your Business as an LLC

Contact with your local health department will also show you what licenses, permits, and policies you need to meet to start your home healthcare agency. There’s so much paperwork to do. Furthermore, running a healthcare business comes with the risk of getting sued. Patients and their families are quick to point fingers, especially when they’re emotional.

So, you may want to set up your home healthcare agency as an LLC. David Reed, the Co-Founder of LLCStars.com, says, “An LLC could protect you simply by separating your business and personal assets.” So, if someone decides to sue your agency, they can’t take your personal belongings from you. An LLC could also help you manage your business finances like a professional.

4. Build Your Team

Investors don’t invest in companies; they invest in the people behind the company. So, hiring and staffing should be your top priority even if you’re not looking for investors. Select the best employees at all levels: executives, managers, and healthcare workers. Key roles in a home healthcare agency are nurse administrators, human resources managers, and marketing specialists. It is worth seeking out a practical nursing agency for fully qualified experienced nurses, let the agency do the selection process for you.

5. Write Your Business Plan

Steps two and five complement each other. The market research you did should help you write your business plan. Usually, it should answer questions like what your business does, whom you serve, and why you are different. It should also contain things like:

  • Company goals, mission, and vision
  • Competitive advantage
  • Marketing plan
  • Hiring process
  • Organizational chart

6. Apply for an Employer Identification Number

One of the crucial tasks in the 10 steps to start a successful home health care agency is applying for an EIN, aka a Federal Tax ID Number. It’s like a Social Security Number, but for your agency. It’ll let you:

  • Separate your business finances from your personal finances
  • Open a business checking account
  • Establish business credit and get loans in your agency’s name

7. Get Insured

As your agency grows and you upgrade to an S Corp, you may need more malpractice insurance. It’ll help protect your agency and workers from malpractice lawsuits. Furthermore, it provides a legal defense that protects your agency’s reputation and stability. So, look into different healthcare insurance programs based on your situation.

8. Register Your Business With Your State

You’ll need to register your agency with your state at some point. So, it’s best to do it while your agency is young. When you take this step, you can be sure to limit your liabilities to your agency so that you may avoid future lawsuits. It can also help you manage your taxes more efficiently.

9. Marketing

Have a marketing plan in place from the get-go. Luckily, we live in an age where you can measure and track your marketing efforts. Many home healthcare agencies learn the importance of marketing when it’s too late. Don’t be one of them. Know how you’ll attract and retain customers to your budding agency.

10. Don’t Stop Learning

The last step of the 10 steps to start a successful home healthcare agency is being a perpetual learner. Building a business will develop you as a person. Plus, you’ll need to develop new skills and mindsets. Take leadership and business courses and find specialized knowledge to help you overcome the unique challenges you’ll face.


Rome wasn’t built in a day. You’ll avoid 90% of the risk by following these 10 steps to start a successful home healthcare agency. However, your journey will have different challenges, lessons, and problems. If you keep at it, you’ll have a thriving home healthcare agency before you know it. You’ll help people heal, stimulate the local economy, and run a meaningful business. It’s the dream of every entrepreneur.