Non-medical home care is a business that is involved in providing non-medical care to elderly or disabled persons. They cater to activities of daily living (ADLs) and instrumental activities of daily living (IADLs). This care is provided by people who don’t have formal training as medical personal but are exposed to basic health care and first aid tips.
Non-medical home care is a powerful way to help elderly adults stay healthy. In 2008, home care services helped the U.S. save more than $25 billion in hospital costs. Data made available by IbisWorld shows that there are 429,045 Home Care businesses in the United States as of 2022, an increase of 3.7 percent from 2020.
Steps on How to Start a Non-Medical Home Care Business
Table of Content
1. Conduct Market Research
If you intend to start a non-medical home care business, then you must make sure you conduct thorough market research. Your aim of conducting market research for your non-medical home care business should be to get an in-depth analysis of the industry, so you can understand the market space and what you are going to be up against. With successful market research, you will be able to explore the unknown and unlock new possibilities in the industry.
a. Who is the Target Market for Non-medical home care?
The target markets for non-medical home care are;
- Elderly people
- People suffering from cerebral palsy
- People with down syndrome
- People suffering from epilepsy
- Spina bifida patients
- Traumatic brain injury patients
- Visual impairments patients
- Injured Sports Men and Women
- People with mental/psychiatric challenges
b. Is Non-Medical Home Care a Profitable Business?
Yes, non-medical home care is a profitable business. Statistics show that the market size of the industry is $9.9 billion in 2022. Demand for non-medical home care centers is increasing with the need for assistance in old age. A new report lists home health care as one of the top five most profitable franchises in the United States, even as the industry fights new Department of Labor rules calling for mandatory overtime and minimum wage requirements for home health employees.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to non-medical home care services.
d. Who are the Major Competitors?
- Nightingale Homecare
- Home Helpers Home Care
- Synergy HomeCare
- BrightStar Care
- Right at Home
- Comfort Keepers
- Visiting Angels
- Interim HealthCare
- Home Instead Senior Care
- Senior Care Inc.
- SarahCare Non-medical home care Center Services.
e. Are There County or State Regulations or Zoning Laws for Non-Medical Home Care Business?
Yes. Zoning laws require non-medical home care operators to follow specific rules and regulations. These laws are designed to address the unique circumstances of a business operating in a residential area. Please note that in many communities, zoning laws require non-medical home care providers to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the home daycare meets the zoning rules of the community. Permits also ensure that all non-medical home care is properly licensed with the county or state agencies.
f. Is There a Franchise for Non-Medical Home Care Business?
Yes, there are franchise opportunities for non-medical home care, and here are some of them;
- Right at Home (Total startup costs – $75,000 to $100,000)
- SarahCare Non-medical home care Center Services (Investment $212,427 – $513,427)
- Elder-Well® Franchise
- Greenacres Non-medical home care Franchise
- Interim HealthCare (Initial Investment – $125,500 to $198,500)
- Home Care Assistance ($77,775 to $245,250)
- HomeWell Senior Care (Investment $75,000 – $120,000)
- BrightStar ($95,000 to $163,000)
- Comfort Keepers
- Visiting Angels
- Synergy HomeCare
g. What Do You Need to Start a Non-Medical Home Care Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Startup and Working Capital
Memorable Name ideas for Non-Medical Home Care Business
- Ryde Care® Non-Medical Home Care, LLC
- Mary® Non-Medical Home Care, LLC
- ICare™ Non-Medical Home Care, Inc.
- Blessed Hands™ Non-Medical Home Care, LLC
- Doris Greenish® Non-Medical Home Care, Inc.
- Pro Care® Non-Medical Home Care, LLC
- Destiny Helpers® Non-Medical Home Care, LLC
- Becky Bandars® Non-Medical Home Care, Inc.
- Comfort Care® Non-Medical Home Care, Inc.
- Synergy Care® Non-Medical Home Care, LLC
- Maria De La Rosa® Non-Medical Home Care, LLC
- Pauline George™ Non-Medical Home Care, Inc.
- Bridget Decoster™ Non-medical home care
- Inner City® Non-Medical Home Care, LLC
- Madam Comfort® Non-Medical Home Care, Inc.
- Universal Care® Non-Medical Home Care, Inc.
- Love and Care© Non-Medical Home Care, Inc.
- Ready Care™ Non-Medical Home Care, LLC
- iCare™ Non-Medical Home Care, Inc.
- Good Times® Non-Medical Home Care, Inc.
Register Your Business
a. What Type of Business Structure is Best for Non-Medical Home Care?
Even though there are several options when it comes to the business structure for non-medical home care, the one that most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below. Most new single-member LLCs classified as disregarded entities will need to obtain an EIN.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Non-Medical Home Care?
- General Business License
- Care Giver or County Worker License
- Health and Safety Permit
- Zonal Permits
- Director’s License
d. What Type of Certification is Needed to Open a Non-Medical Home Care?
You don’t need any certification to be able to open a non-medical home care business.
e. What Documents are Needed to Open a Non-Medical Home Care?
These are some of the basic legal documents you are expected to have to legally run your non-medical home care business in the United States of America;
- Business and Liability Insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (for your office)
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLC
- Insurance Policy
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting non-medical home care, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Non-Medical Home Care?
When it comes to starting a non-medical home care business, the startup costs vary and it could range from $80,000 (if you are opting for a franchise) to over $100,000.
b. What are the Costs Involved in Starting a Non-Medical Home Care?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Marketing, Branding and Promotions – $3,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,400.
- Rent/Lease – $50,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up inventory – $5,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping – $10,000
- Website: $600
- Miscellaneous: $5,000
c. What Factors Determine the Cost of Opening a Non-Medical Home Care?
- The choice of the location you intend covering
- The required licenses and permits
- The type of office facility
- Additional service offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing the business
- The cost for furnishing and equipping the non-medical home care facility
- The cost for insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your non-medical home care because you are expected to work in the homes of your clients.
e. What are the Ongoing Expenses of a Non-Medical Home Care Business?
- Rent and lease of your office
- Cost of transportation for your caregivers
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Head of Non-Medical Home Care (President) – $45,000 Per Annum
- Administrator – $36,034 Per Annum
- Home Caregivers/County Aging Workers – $32,878 Per Annum
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
g. How Do You Get Funding to Start a Non-Medical Home Care?
- Raise money from personal savings and sale of personal stocks and properties
- Raise money from investors and business partners
- Sell shares to interested investors
- Source for soft loans from your family members and your friends.
Write a Business Plan
a. Executive Summary
iCare™ Non-Medical Home Care, Inc. is a registered non-medical home care business that will be based in Santa Barbara, California, USA. Our non-medical home care center is designed to provide care and companionship for older adults who need assistance or supervision during the day. Our non-medical home care will focus on providing companionship, giving adults the social support they need to live an active, enriching life.
b. Products and Service
- Care-planning services
- Using the bathroom and bathing.
- Dressing and grooming.
- Walking, sitting, standing, and transferring in and out of bed.
- Shopping, preparing, and serving nutritious meals.
- Light housekeeping
- Providing driving services to help run errands
- Companionship — including playing games, sharing meals, doing art projects, and enjoying pleasant conversation
- Social activities.
c. Mission Statement
Our mission is to build a highly successful non-medical home care center that provides dependable, convenient, and accommodating ways to empower seniors to live healthfully, connect with their community, and nurture meaningful relationships.
Our vision is to create an international model for the non-medical home care center industry, we want to project home care as a way to give seniors, and disabled people the support, companionship, and personal assistance they need.
d. Goals and Objectives
The goals and objectives of a non-medical home care center are to provide flexible and reliable options for seniors so that they can live life to the fullest – while also giving time back to family caregivers who deserve the chance to rest and recharge.
e. Organizational Structure
- Head of Non-medical home care (President)
- Home Caregivers
- Account Officer
- Front Desk Officer
a. SWOT Analysis
The strength of the non-medical home care facility lies in the fact that they have a team of qualified professionals manning various job positions in the organization. So also, the location, the business model they will be operating on, and their excellent customer service culture will count as a strong strength for the facility.
Our non-medical home care is a new business that is owned by an individual (family). They may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility and also attract some of the experienced hands in the industry.
The opportunities that are available to non-medical home care facilities are unlimited because we have loads of old people who need the care of non-medical home care providers in the United States.
Just like any other business, one of the major threats we are likely going to face is an economic downturn and unfavorable government policies. It is a fact that an economic downturn affects purchasing/spending power. Another threat that may likely confront a non-medical home care business is the arrival of a bigger/well-established non-medical home care facility in the same location where your facility is located.
b. How Do Non-Medical Home Care Businesses Make Money?
Non-medical home care makes money by charging their clients for services rendered.
c. Payment Options
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
- Sponsor relevant community-based events/programs for the elderly
- Leverage on the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your non-medical home care business
- Install Bill Boards in strategic locations all around your city or state
- Distribute your fliers and handbills in target areas
- Contact households, businesses, and every adult in the neighborhood where your non-medical home care will be located informing them about your business and the services you render
- List your non-medical home care in local directories/yellow pages
- Advertise your non-medical home care on your official website and employ strategies that will help you pull traffic to the site.
- Position your Flexi Banners at strategic positions
- Ensure that all your staff members wear your branded shirts and all your vans are well branded with your company logo et al.
a. How Much Should You Charge for your Service?
Our average daily cost of non-medical home care services will be $30 per hour.
b. How Much Profit Do Non-Medical Home Care Owners Make a Year?
It depends, but the available report shows that owners of non-medical home care centers profit an average of $54,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the non-medical home care (number of clients they are servicing per time)
- The location the business is covering
- The management style of the non-medical home care business
- The business approach and model of the non-medical home care
- The advertising and marketing strategies adopted by the non-medical home care
- The number of years the non-medical home care is in business
d. What is the Profit Margin of a Non-Medical Home Care?
The profit margin of a non-medical home care business is not fixed. To a large extent, after subtracting your overhead, you could make close to 20 percent as profit.
e. What is the Sales Forecast?
Below is the sales forecast for a non-medical home care business. It is based on the location of the business and other factors relating to such startups in the United States;
- First Fiscal Year: $240,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $480,000
Set Up your Office
a. How Do You Choose a Perfect Location for Non-Medical Home Care?
- The demography of the location especially as it relates to the aging population
- The demand for non-medical home care services in the location
- The purchasing power of residents of the location
- Accessibility of the location
- The number of non-medical home care and other facilities like senior care, nursing homes and sober living et al in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Non-Medical Home Care Business?
- Las Vegas, Nevada
- Los Angeles, California
- Chicago, Illinois
- Boston, Massachusetts
- Silver Spring, Maryland
- Rowland Heights, California
- Portland, Oregon
- New York City, New York
- Atlanta, Georgia
- Dallas, Texas
c. What Equipment is Needed to Operate a Non-Medical Home Care?
If you want to open a non-medical home care business, you will not need any technical gadgets except office and nursing equipment, first aid kits, smoke detectors, carbon monoxide detectors, fire extinguishers, an emergency preparedness kit, and an emergency plan, among other things. In setting up a small office, you will need a computer, printer, software apps, telephones, pager, photocopier, and scanner.
As regards the number of employees you are expected to kick start the business with, you need to consider your finance before making the decision. You would need the services of the following professionals; the head of business (you can occupy this position), administrator, non-medical home health caregivers, front desk officer, and cleaners.
Launch the Business Proper
You can choose to open your business with a party but know that this is not compulsory. You can choose to do a soft opening party if you are operating on a low budget or you can go for a grand opening party. The bottom line is that with a proper launching of the non-medical home care business, you would have officially informed people in your city that your non-medical home care is open for business.
a. What Makes a Non-Medical Home Care Business Successful?
- Ability to attract clients regularly
- Disciplined and dedicated workforce
- The heart to serve
- Good relationship with stakeholders
- Good care techniques and programs.
b. What Happens During a Typical Day at a Non-Medical Home Care Business?
- The non-medical home care is open for the day
- Caregivers are briefed in the office (in some cases though)
- Caregivers are sent to homes where they provide non-medical home care services
- Marketing/website upkeep
- Administrative duties are carried out
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Non-Medical Home Care Business?
- Good managerial and human development skills
- An interest in helping people regardless of their condition.
- The ability to communicate clearly and sensitively when talking to people and their families.
- Good listening skills.
- Great problem-solving skills and the ability to adapt to situations.
- Organizational skills.
- Experience working as a caregiver or social worker
- Experience in the non-medical home care industry
- Experience in non-medical home care administration.