Starting a Home Healthcare Business – 8 Questions and Answers

Starting a Home Healthcare Business – 8 Questions and Answers

Starting a Home Healthcare Business – 8 Questions and Answers!

Let us answer your most urgent questions about starting your home healthcare business. Learn how to launch your startup and the benefits of doing so now.

Why start a home healthcare business? 

You should start a home healthcare business because it’s the fastest-growing market.

As more and more baby boomers reach senior age, the number of people needing home health care services is increasing. 

Sources say that the demand for home health services could double by 2050. That means the risk of starting a home health business is very low right now!

Who should start a home healthcare business?

Anyone can start a home care business. However, people who have a background in healthcare have the upper hand. 

That’s because these people have the knowledge and understanding of what goes into this type of care. Intimately understanding the ins and outs of healthcare makes a business owner appear more trustworthy and intelligent. 

These people are more likely to land employees and clients. However, if this is not you, go above and beyond in showing people you have the empathy to stand out among the competition.

If you can demonstrate your understanding of the trade and that you care about people, you will have business success.

What are the different services and types of home healthcare businesses?

There are several different types of services that you can provide in your home healthcare business. Which services you offer to people will depend on the employees you hire and the type of home health business you are creating.

Services

The following services can be offered to your potential clients.

  • Doctor care – A doctor will visit the patient at home to diagnose, treat, or perform check-ups.
  • Nurse care – Nursing care is the most common form of medical home care services. Nursing care varies depending on the patient’s needs. They can help with wound care, IV therapy, pain management, and overall monitor the patient’s health.
  • Physical, occupational, and/or speech therapy – Physical therapists help patients gain strength and mobility. Occupational therapists help patients be able to complete their everyday tasks on their own. Speech therapists help patients communicate with others more effectively. 
  • Medical social services – Social services provide patients with counseling and support in recovery. They also provide patients with resources so that they have access to everything they need to recover. 
  • Nurse Aides – Personal assistance usually comes from health aides. They help the person get out of bed, walk, bathe, and get dressed. Some may perform more than basic needs, based on instructions from the resident’s medical team. 
  • Homemaker – A homemaker comes out to a person’s house to help them with their household while being medically cared for. They help with meal preparation, housekeeping, laundry, and basic household chores. 
  • Companionship – Human beings are social creatures. As we age, we start to lose people we love. This can be hard. Providing companionship to senior citizens that need comfort is another great service to offer in your home health agency.
  • Medication services – Medical equipment and medication can be delivered at home. 
  • Transportation – You may or may not offer transportation services for patients to and from their appointments, or even for social gatherings at senior centers.
  • Nutritional support – A dietician comes out to a person’s house to assess their nutritional habits. They will come up with a plan to help the person meet their health goals through the foods they choose. 
  • Lab & imaging – Urine and blood tests can be easily taken from the home. X-rays can also be taken from the comfort of home with the help of portable x-ray machines. 
  • Home-delivered meals – Meals made and delivered to patients or the elderly. Churches normally provide this service, but it is something you can add to your business. 

Types of Business 

Now that you understand what services home health care agencies can offer, it’s time to understand the types of businesses you can have with those services. 

  • Non-medical – A non-medical business would be ideal for those who don’t have a background in healthcare, at least as a starting point. As a non-medical business, you can offer homemaking, companionship, transportation, and/or home-delivered meals. 
  • Medical – A medical home care business can offer services their employee is certified in. Let’s say you hire a dietician. That dietician can do what they are certified to do. This is sometimes also referred to as skilled home care.
  • Short-term – You offer short-term services to your clients (less than 60 days).
  • Long-term – You offer long-term services to your clients (more than 60 days).

You will need to double-check your state requirements for how long you can service your clients. Some states require you to be certified for long-term home health. 

What are the benefits of starting a home healthcare business?

There are a lot of benefits to starting a home healthcare business. 

One is that you will truly make a difference in the lives of others. 

Allowing patients to receive healthcare from home truly makes their lives a whole lot easier. People heal faster in the comfort of their homes. Plus, it’s a lot more cost-effective for the patient because they aren’t paying to rent out a hospital bed. 

This business changes lives. Not just the lives of your clients, but also the lives of your employees. 

You’re creating more opportunities for health professionals to continue doing what they love.

How it affects you…

If you have an entrepreneurial spirit, building and sustaining a business will change how you think and problem solve. 

But, I know what you’re looking for is how much you can make from starting a business in this market. Home health care is one of the most profitable businesses. While most home health care businesses profit over $100,000 per year, many have annual profits in the millions!

How much to start up a home healthcare business?

The average start-up costs for a non-medical home healthcare business total about $80k. The average cost of a medical-based healthcare facility is around $350k. The difference is in the types of employees and the equipment needed.

How do I start my home healthcare business?

Starting a home health business has steps like any business. The steps are…

Step 1. Create a business plan. Plan for at least the next 5 years. What do you need to do to grow your business? Take external forces into consideration where you can.

Step 2. Create a business entity. An LLC is recommended for small business owners. 

Step 3. Get an employer ID from the IRS. It’s like a social security number, but for your business.

Step 4. Register with your state. States need a record of businesses that are established in their state.

Step 5. Get any licenses needed. Check with your state licensing requirements for operating a home health business.

Step 6. Prepare finances. Creating a home health business is an investment!

Step 7. Create or outsource your procedures manual. Your patients are going to need a handout about what they expect when using your services. 

Step 8. Hire employees & fill up the schedule. As long as your business meets the proper requirements and you have the employee help, you can start taking clients. 

Step 9. Build a website & market online. Registering with local and online business directories is very helpful in getting discovered via the web. Create a blog about your services! 

Step 10. Buy or lease an office. An office isn’t necessarily the top priority in a traveling business like this. However, you’ll eventually want a space to go to work on different aspects of the business and dispute anything going on. 

Step 11. Do what you can to grow! It won’t be long before your business is earning a substantial profit.

When should you start a home healthcare business?

Home health trends are up. The sooner you start your business or agency the better. The senior population is rapidly growing, which means the sooner you can take advantage of the demand, the better for you and your business! 

Where is the best place for home health startups?

The best place to start your home health business is near senior housing, 55+ communities or age-restricted apartments. You can even start up near hospitals and try to market yourself in the area.

Starting up your business near one of these communities allows you to easily market your services to people who could benefit from your services. 

Conclusion

Starting a home healthcare business can be extremely profitable and fulfilling, regardless of whether you’re starting a medical or non-medical agency. 

Hopefully, this post helped you find what you need. If you have another question, please comment below. Feel free to help others out with their home health care questions. 

5 Secrets About Investing in Senior Housing in 2020

5 Secrets About Investing in Senior Housing in 2020

5 Secrets About Investing in Senior Housing in 2020

 

The senior housing market is a service market that provides appropriate housing options for the elderly. Investing in senior housing, a service everyone will eventually need, is a great way to build your portfolio as an investor. (Invest like a pro, even if you’re an amateur.) Here are the 5 secrets I’ve learned about investing in senior housing in 2020. I’m sharing these secrets with you so that you can build your portfolio and wealth like a pro.

 


 

Secret #1 – People aren’t paying enough attention to this hot market

 

The baby boomer generation has reached their senior years. Which means right now there are more people who need senior housing than houses currently available. 

 

The demand for senior housing is high and the risk involved is low, making senior housing investments a great way for you to build your portfolio as an investor. Despite rumors that the senior housing supply could become oversaturated, not enough people are actively investing in senior housing. 

People aren’t taking action on the opportunity to provide this incredible source of passive income when there’s no reason not to. The demand for senior housing will continue to grow, which makes it a great opportunity for you!

Secret #2 – The ROI for senior housing can be mind  blowing!

Investing in senior housing is a gold-mine opportunity! Although senior housing investments take time to grow, investing in senior housing can bring you home a lot of money in due time.

The ROI for senior housing has steadily been around 13% each year, despite economic changes. The ROI on senior housing can drastically change your life.

 

Secret #3 – The best time to invest in senior housing is NOW!

In order to maximize your potential ROI, you need to start investing now! As an early investor in this growing niche, you’re taking the lead. That means you have time to scale your senior housing business.

The investment has amazing ROI and keeps getting better.

 

**Life expectancy continues to increase with the help of modern medicine.**

 

This means the residents in senior housing will occupy the home for longer than 4 years.

This means the market is more profitable and less risky than a college housing investment.

 

Secret #4 – Investing in senior housing will make you look like a pro investor!

Expert investors know when the risk is worth it. They actively educate themselves on what to expect during the process, and most importantly, they know how to budget. If you invest in senior housing, you will show other investors that you are an expert in all those things yourself. 

After all, you can recognize a good investment opportunity when you see one. You know how to educate yourself in your market and you will demonstrate your budgeting skills.

 

Secret #5 – There’s a lot of growth potential

There’s a lot of potential in the senior housing market — more than the average investor realizes. Since the population continues to grow, there will always be older people who need housing. The senior housing market will continue to grow in the coming years, and investing in it is a wise move.

Plus, there are a lot of growth opportunities with this market. You can build your business in one area, then branch off and build your business in another location. You’ll be able to invest more into your growing business and be able to scale it to however big you can manage.

Investing in senior housing is an unpopular trend you want to be in on. It’s much more fruitful than the typical single- and multi-family investments.

 

Bonus Secret #6 – Senior living real estate investment trust (also known as REIT) is a great alternative

Investing in senior housing can consume time, money and energy. But that’s not a bad thing for the right person. Investment costs that prevent people from investing include start-up costs, regular monthly costs, staff payroll, and the potential for economic changes. But, maybe you’re like me and you don’t want to go all-in to physically invest in senior housing.

A great alternative is senior housing real estate investment trust (REIT). A REIT is a publicly traded asset, like a stock. While the dividends earned from a REIT are attached to the net income from the properties the REIT owns, the value of shares in a REIT fluctuate with the stock market.

What types of senior housing are available to invest in?

There are 4 main types of senior housing you can invest in…

•Senior Cohousing

•Senior Group Home

•Active Living

•Assisted Living

What is Senior Cohousing?

Senior cohousing is an age-restricted, 55+ community with multiple houses or condos for senior residents to live together as neighbors.

What is a Senior Group Home?

A senior group home is a home where seniors are roommates. The home provides housekeeping, meals, and medication reminders. In a senior group home, there is no staff except for meals and cleaning.

What is Active Living?

Active living homes are the new age-restricted apartments for seniors 55+. Additional services such as laundry and housekeeping are available for residents.

What is Assisted Living?

Assisted living homes provide 24/7 care to residents. Care includes providing nursing, medication administration, meals, and housekeeping for residents.

What type of senior housing should I invest in?

To discover what type of senior housing will be the best investment for you, research them all. The type you choose will depend on a few factors, like the goals you have for your investment and ultimately how much you can invest.

Someone who has more money to put forward may invest in cohousing, while someone with a lower budget may prefer to do a REIT. Both are great options for the right people.

 

Conclusion

Senior housing is a much-needed service for people 55+, and amateur investors aren’t taking advantage of the ROI opportunity senior housing offers.

The ROI on senior housing can be much more and last much longer than student housing. This is why the best time to start your senior housing investment is now because the demand for senior housing is on the rise. Investing in this hot market will make you look like a pro investor while building your wealth and nest egg.

There’s a lot of growth potential in each of the 5 senior housing sectors. Whatever senior housing investment is the best option for you, it will provide you with great benefits and make you look like a pro investor.

 

There you have it — 5 secrets about investing in senior housing in 2020.

What secret was most shocking to you? 

If you liked this post, please share it with a fellow investor, and best of luck with your investments!