Starting Non-Medical Home Health Care Business? Here’s Everything You Need to Know

If you love being around people, starting a non-medical home care business can be the way ahead. In the not so distant future, the need for at-home care will rise drastically. Experts predict the aging population of Baby Boomers coupled with increasing preference among elderly individuals to stay at their home rather than moving to an assisted-living facility or nursing home will result in a surge in demand for expert caregivers.

If you love interacting with people and are fueled by the zeal to give back to the society but don’t know how to proceed about setting up a non-medical home health care business, we got you covered. To help, we, in this post, have put together a guide that will answer all your questions related to the cost involved, getting a license, and preparing the business plan for a home care agency. Read on.

Starting a non-medical home health agency: Costs involved

Starting a non-medical home health agency is expensive, you think? Think again! As compared to several other businesses, starting a non-medical home health agency is quite affordable. Because you’ll be providing non-medical services, you won’t need much equipment. To keep a tab on costs, it is advisable that you work alone initially. As your business grows, you can think about hiring employees.

Usually, the biggest component of your set-up cost will be costs related to getting licensed and certified in your state. In some cases, you won’t have to spend more than $1,000 to start your business. The actual cost, however, can shoot up drastically if you need specialized equipment such as a vehicle with a chairlift. You also need to look at getting professional liability insurance, cybersecurity insurance, and general liability insurance.

Home health care business: Earning potential

Wondering how much you can earn once your business takes off? The national average rate for at-home non-medical care is about $27 per hour. On an average, a person with special care needs requires 40 hours of caregiving, which means you could make up to $50,000 per year or more. Your actual income would, of course, depend on your rate.

Once your business is flourishing, you can hire trained caregivers, virtual receptionists from Healthcare Nexa and other employees. You will have to pay your caregivers in the range of $11-$15 per hour. You can pocket the profits. As your business grows, administrative and other expenses will increase, but so will your profits.

Home health agency license certification

To start your non-medical home health agency, you’ll need to get your business registered with the federal and state government. The procedure of applying for a license will vary depending on your state. To learn more, contact your local licensing authority.

The process varies for different states. Most states, however, require that owners of home health care businesses take a specific training course. Your state may also need you to get certified for CPR/AED. In some states, these are the only few requirements; however, in many other states, you may need to opt for additional courses for personal care and caregiver training. Here’s a full list of requirements by state.

A Business plan for a home care agency

To ensure your business’s viability, you need to come up with a business plan. Your business plan must outline:

  • Your service rate
  • Your target audience
  • Licensing and certification costs
  • Your monthly budget and break-even rate
  • Short-term milestones and long-term business objectives and goals
  • Business values
  • Future expansion plans

Need more help with your plan? Take a look at this guide from Bplans.

Sample budget for a home health care agency

Your actual budget will depend on a number of factors. However, you can expect to budget for:

  • Your business website
  • Incorporating costs
  • Software acquisition, maintenance, and replacement costs
  • Marketing costs
  • Licensing and certification materials and test costs
  • Payroll
  • Admin costs (including office supplies)
  • Insurance (liability, automotive, and so on)
  • Equipment
  • Rent (if you’re operating from a rented facility)

In addition to these costs, there may be other expenses involved depending on how you manage your business.

Marketing plan

Your marketing plan must target:

  • Aging people and seniors
  • Adult children of seniors
  • Other relatives of persons living with seniors, disabled people or persons with special care needs

To get started, contact doctors for referrals. Create your business pages and handles on major social media platforms. To create and manage your digital footprint, rope in a digital marketing agency. Register a strong online presence by uploading informative posts to your website and social media accounts. You can also place ads in print media.

To get assistance with designing your marketing plan, consider reaching out to a marketing agency.


Starting a home health care business can be an overwhelming and exciting experience at the same time. You may have to complete loads of paperwork and meet with several people. However, the knowledge that you are contributing to society and driving change is sure to motivate you and keep you going.