business plan of a home healthcare

Home Health Care Business Plan Template

Written by Dave Lavinsky

Home Health Care Business Plan

You’ve come to the right place to create your home health care business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their home health care businesses.

Home Care Business Plan Example

Below is a template to help you create each section of your home health care agency business plan.

Executive Summary

Business overview.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our nursing services include physical therapy, skilled nursing care and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care is run by Helen Parker, who has been a nurse for twenty years. She has specialized in working with aging populations and has extensive knowledge of the common conditions and needs of this age group. Her experience and connections have helped her find other medical professionals who want to join our company. Furthermore, she was able to establish an initial client base from the list of patients she has been helping for years.

Services Offered

St. Helen’s Home Care offers a variety of home health care services that serve the aging population of Austin, Texas. These services include but are not limited to:

• Physical therapy
• Occupational therapy
• Speech-language therapy
• Skilled Nursing Services
• Personal care and housekeeping

Customer Focus

St. Helen’s Home Care will serve the aging population of Austin, Texas, primarily residents over the age of 65. This population is susceptible to many conditions that make daily living difficult such as Alzheimer’s, dementia, arthritis, and diabetes. This population needs more health care than other age groups, but not all services require a visit to the hospital or doctor’s office. St. Helen’s will provide any medical service that can easily be conducted in a home setting.

Management Team

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide in-home services while also being affordable for the patient and their families.

Aside from the medical professionals she will have on staff, Helen has also employed an Administrative Assistant, Accountant, and Marketing Specialist to help her operate the company.

Success Factors

St. Helen’s Home Care will be able to achieve success by offering the following competitive advantages:

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, home health care aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert nursing services so that the patients are at the highest comfort level.
• Pricing: Helen’s pricing will be more affordable than other home health care agencies. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Financial Highlights

St. Helen’s Home Care is seeking $340,000 in funding to launch the home healthcare business. The capital will be used for funding equipment and supplies, staffing, marketing expenses, and working capital.

The breakdown of the funding may be seen below:

• Equipment and supplies (such as computers and medical equipment): $150,000
• Marketing costs: $50,000
• Staffing costs: $60,000
• Working capital (to include three months of overhead expenditures): $80,000

The following graph outlines the pro forma financial projections for St. Helens’ Home Care over the next five years:

Company Overview

Who is st. helen’s home care.

St. Helen’s Home Care is a new home healthcare business that serves the aging population of Austin, Texas. As individuals age, they are more susceptible to diseases and other conditions and need extra help to receive health care. However, many individuals wish to receive care in the comfort of their homes instead of going to a nursing home or hospital. St. Helen’s will provide this population with the care they need without them needing to travel. Our services include physical therapy, nursing, and other healthcare services that can be conducted in the home. We also provide warmth, compassion, and companionship to create lasting relationships with our clients.

St. Helen’s Home Care History

Helen Parker has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to travel to a doctor’s office or hospital for their care. Instead, these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide care to local elderly patients in the comfort of their homes. After conducting the market research needed to establish the company, Helen incorporated St. Helen’s Home Care as an S-corporation on May 15th, 2022.

Since incorporation, St. Helen’s has achieved the following milestones:

• Found an office location and signed a Letter of Intent to lease it
• Developed the logo and website for the company
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Created an initial client base from Helen’s pre-existing patient list
• Started creating partnerships with local and national medical insurance companies
• Began recruiting key employees, including medical and administrative staff

St. Helen’s Home Care Services

Industry analysis.

According to Grand View Research, the global home health care industry was valued at $336 billion USD in 2021. It is also expected to grow at a compound annual growth rate of 7.93% from 2022 to 2030 and reach a value of $666.9 billion USD by 2030. This shows that these services will be in great demand, which means it is a great time to start a home healthcare business.

This growth is primarily driven by a growing geriatric population. People are living longer than ever before, and therefore, they will need comfortable healthcare services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for healthcare (whether in the home or doctor’s office) and may create a strain on the current industry. However, this also means there is an enormous opportunity for healthcare businesses to be extremely profitable in the near future.

This is especially true for home healthcare services, which are increasing in demand. Most aging people would rather receive medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.

The only challenge affecting the industry is a lack of properly trained staff who can take on a healthcare career. However, this will only mean that home healthcare services will be even more valued. These industry trends will only help boost the popularity and success of St. Helen’s Home Care.

Customer Analysis

Demographic profile of target market.

St. Helen’s Home Care will primarily target the aging population of Austin, Texas. This includes anyone over the age of 65, especially those who live with diabetes, Alzheimer’s, arthritis, or other conditions that affect their quality of life.

The precise demographics of Austin, Texas, are:

Customer Segmentation

St. Helen’s will primarily target the following customer profiles:

• Aging individuals over the age of 65
• Individuals living with Alzheimer’s and dementia
• Elderly individuals with other health conditions

Competitive Analysis

Direct and indirect competitors.

St. Helen’s Home Care will face competition from other home health care agencies with similar business profiles. A description of each competitor company is below.

Travis County Home Health

Travis County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of their patients’ homes. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, and Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Elara Caring

Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in most regions of the United States. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health

Encompass Health is one of the nation’s leading providers of home health services. They continually set the standard of homecare through their people, their approach, and their outcomes.

The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home. Whether recovering from a surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are.

Competitive Advantage

• Compassionate Staff: Helen’s will employ a compassionate and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Quality Care: Helen’s will provide expert services so that the patients are at the highest comfort level.
• Pricing: Helen’s will provide affordable home health care. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care because the cost is too high. The company is also working to partner with local and national insurance companies so that our patients can have their care partially or fully covered by their insurance plans.

Marketing Plan

Brand & value proposition.

The St. Helen’s brand will focus on the company’s unique value proposition:

• Knowledgeable, friendly, compassionate staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and home aide services at competitive prices.

Promotions Strategy

St Helen’s Home Care will target elderly residents living in the Austin, Texas area. The company’s promotions strategy to reach the most clientele include:

Local Hospitals

Helen Parker already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend the company to its patients and their families upon releasing them from the hospital.

Website/SEO Marketing

St. Helen’s has a website that is well-organized and informative and lists all our available services. The website also lists the company’s contact information and information about the medical professionals who provide our services.  We will utilize SEO marketing tactics so that anytime someone types in the Google or Bing search engine “Austin home health care” or “Austin health care,” St. Helen’s will be listed at the top of the search results.

St. Helen’s Home Care will have a billboard at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors’ offices, rehab facilities, and a hospital nearby.

Insurance Partnerships

St. Helens will partner with local and national insurance companies so that our patients can be partially or fully covered for the services we provide. We will ask the insurance companies to recommend our services to their customers and have our business listed on their websites.

St Helen’s pricing will be moderate so customers feel they receive great value when purchasing its services. Services will either be charged directly to the patient or to their insurance plan.

Operations Plan

The following will be the operations plan for St. Helen’s Home Care.

Operation Functions:

• Helen Parker will be the Chief Executive Officer of the company. She will be in charge of the business operations side of the business and provide home healthcare services until we have a full staff of medical professionals.
• Helen is assisted by her longtime colleague Mary Green. Mary will be the Administrative Assistant and help with all general administration tasks, including taking phone calls and scheduling appointments.
• Keith O’Reilly will serve as the Staff Accountant. He will provide all accounting, tax payments, and monthly financial reporting.
• Betty Lopez will work as the Marketing Specialist. She will run the website, social media, and other marketing efforts.
• Helen will hire a large team of medical professionals to serve our growing client base. So far, some of her former colleagues have agreed to work for her business.

Milestones:

St. Helen’s Home Care will have the following milestones completed in the next six months.

8/1/202X – Finalize lease for the office space.

8/15/202X – Finalize personnel and staff employment contracts.

9/1/202X – Begin refurbishment and furnishing of the office space.

9/15/202X – Begin networking at medical industry events.

9/22/202X – Begin marketing campaign to attract the first clients.

11/1/202X – St. Helen’s Home Care opens for business.

St. Helen’s Home Care is owned and operated by Helen Parker, a local nurse who has worked at local hospitals for over the past twenty years. She has worked with hundreds of elderly patients and their families and has helped them find adequate and affordable home health care upon being released from the hospital. Helen Parker has realized there is a lack of quality and affordable home healthcare agencies in Austin. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Financial Plan

Key revenue & costs.

The revenues for St. Helen’s Home Care will come from the fees it will charge the patients and their insurance for the provided health care services.

The major cost drivers for the company will be the staff payroll, marketing expenses, lease, and office equipment.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials as well as pay off the startup business loan.

• Number of clients per month: 100
• Annual lease: $50,000
• Overhead costs per year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, home health care business plan faqs, what is a home health care business plan.

A home health care business plan is a plan to start and/or grow your home health care business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Home Health Care business plan using our Home Health Care Business Plan Template here .

What are the Steps To Start a Home Health Care Business?

Starting a home health care business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Home Health Care Business Plan – The first step in starting a business is to create a detailed home health care business plan that outlines all aspects of the venture. This should include market research on the home health care industry and potential target market size, information on the home health care services you will offer, marketing strategies, pricing detailed and your financial forecast.  

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your home health care business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your home health care business is in compliance with local laws.

3. Register Your Home Health Care Business – Once you have chosen a legal structure, the next step is to register your home health care business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options – It’s likely that you’ll need some capital to start your home health care business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Home Health Care Equipment & Supplies – In order to start your home health care business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your home health care business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful home health care business:

How to Start a Home Health Care Business

Home Health Care Business Plan Template [2024]

Home Health Care Business Plan Template

If you want to start a Home Health Care business or expand your current Home Health Care business, you need a business plan.

The following Home Health Care business plan template gives you the key elements to include in a winning Home Health Care Agency business plan.

Below is a sample home health care plan, outlining each of the key sections of a successful home care business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary

Business overview.

[Company Name] was founded by [Founder’s Name]. [Founder’s Name] is a nurse that has worked in local hospitals for over a decade. Her years of experience has taught her how to care for aging adults in a safe and supportive manner. [Founder’s Name] realizes the need for a quality and affordable home health care company as she has a difficult time placing her patients that are being discharged from the hospital with an agency that is reliable and within the patient’s budget. [Company Name] is a high-quality home health care agency that treats elderly patients with a wide array of illnesses and issues with a friendly and supportive staff that is also affordable and works within the patients budget.

Services Offered

[Company Name] will provide nursing, physical therapy, occupational therapy, home health aides, and social work services to its patient clients. In addition, their team of healthcare specialists will also be able to provide specialized services for Alzheimer’s, dementia, arthritis, and diabetic patients.

Customer Focus

[Company Name] will serve the aging community of [company location]. Many of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and would prefer to receive their care in the comfort of their own home rather than the hospital or assisted living facility. The demographics of the target customer profile is as follows:

• 106,727 residents
• Average income of $65,000
• 63.4% married
• 43.2% retired and/or over the age of 55
• Median age: 42 years

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Management Team

[Company Name] is owned and operated by [Founder’s Name], a local nurse who has worked at local hospitals for over the past ten years. She has dealt with hundreds of elderly patients and their families finding adequate and affordable home health care upon being released from the hospital. [Founder’s Name] has realized there is a lack of quality and affordable home health care agencies in [company location]. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

Aside from the nurses, therapists, aides, and social worker she will have on staff, [Founder’s Name] will also employ a receptionist and Office Manager to help with the administration and operation of the home health care agency.

Success Factors

[Company Name] has several advantages over its competition. Those advantages include:

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are highly knowledgeable and experienced in their field.
• Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.
• Quality Care: [Company Name] will provide expert services so that the patients are at the highest comfort level.
• Pricing: [Company Name]’s pricing will be more affordable than its competition. They will also work on payment arrangements with the patient and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high.

Financial Highlights

[Company Name] is seeking $150,000 in funding to launch its home health care business. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.

The breakout of the funding may be seen below:

• Capital expenditures (computers, equipment, etc.): $20,000
• Marketing and advertising: $10,000
• Staffing costs: $60,000
• Working capital: $10,000

The following graph outlines the pro forma financial projections for [Company Name] over the next five years:

II. Company Overview

Who is [company name].

[Company Name], is located at [insert location here] is a new home health care agency that provides skilled nursing services and occupational therapy to aging adults.

[Company Name] was founded by [Founder’s Name]. [Founder’s Name] is a nurse that has worked in the local hospital for over a decade. Her years of experience has taught her how to care for aging adults in a safe and supportive manner. [Founder’s Name] realizes the need for a quality and affordable home health care company as she has a difficult time placing her patients that are being discharged from the hospital with an agency that is reliable and within the patient’s budget. Many of her patients frequently use family members or friends that are inadequately trained or knowledgeable about what it takes to care for an elderly person. They have to rely on whomever is available because they can not afford a home health care agency. Most times, the caretaker’s schedule is inconsistent and the elderly person ends up back in the hospital because they are not receiving adequate nursing or therapy care.

A large segment of [Company Location]’s population is retired and/or elderly adults. There are not enough home health care agencies to support the aging population of this community.

[Company Name]’s History

[Founder’s Name] has been consulting with an attorney and CPA over the last few months to understand the business and financial obligations that go with owning their own business. Her lawyer has advised [Founder’s Name] that [Company Name] should be incorporated as an S-Corporation on [date of incorporation].

[Company Name] has identified the home health care office it will use as its headquarters. [Founder’s Name] has begun lease negotiations and began pricing out construction build-out for the facility.

Since incorporation, the company has achieved the following milestones:

• Found office location and signed Letter of Intent to lease it
• Decided on the company name, and developed the logo and website located at www…
• Finalized list of services the company will be able to provide
• Determined the office equipment and inventory requirements
• Began recruiting key employees for the home health care operation

[Company Name]’s Services

Below is [Company Name]’s list of services. All services will be provided by a trained and licensed staff.

• Skilled Nursing Services
• Therapy and Rehabilitation
• Alzheimer’s & Dementia Care
• Diabetes Care
• Arthritis Care
• Home Health Aide
• Medical Social Worker

[Company Name] will be able to provide daily services as well as accommodate on-call services and emergency response.

III. Industry Analysis

Strong and steady revenue growth is expected for the Home Care Providers industry over the five years to 2026 as a result of an aging population, increasing interest in home healthcare and expanded access to Medicare and Medicaid under the Patient Protection and Affordable Care Act (PPACA). The aging population will likely continue to foster revenue growth because this demographic not only requires more healthcare services compared with other age groups, but it also increasingly prefers home care. Payers will progressively shift to home care because it is more affordable than inpatient hospital and nursing home care.

Large companies will grow even larger through mergers and acquisitions. Moreover, home healthcare will evolve to include more chronic disease-management services, and consolidation will help the industry unite to influence policy change and benefit from larger-scale operations. Considering these projections, revenue is forecast to increase to $138 billion in the next five years.

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The community of [company location] has thousands of retired, elderly adults who require a greater need of attention. Many of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and would prefer to receive their care in the comfort of their own home rather than the hospital or assisted living facility.

Below is a demographic breakdown of this area:

Customer Segmentation

We will primarily target the following four customer segments:

• Elderly patients who are being released from the hospital and their doctors highly recommended daily nursing services and/or therapy.
• Elderly patients who had a recent fall and require physical and/or occupational therapy to heal from their injury.
• Elderly patients who are suffering from Alzheimers or dementia and would prefer to remain in their home rather than an assisted living facility.
• Elderly patients who are diabetic and/or suffer from severe arthritis and need daily assistance with medication, etc.

V. Competitive Analysis

Direct & indirect competitors.

Comanche County Home Health Comanche County Memorial Hospital’s Home Health & Hospice has provided home health services for over a decade. Their staff is comprised of dedicated professionals who are committed to providing quality care in the comfort and convenience of the patients’ home. Their home health aides can assist the patient with grooming and light chores around their home. Home health care will verify if home health aide services are covered by their insurance policy. They accept Medicare, Insurance/HMO/PPO, Medicaid, Private Pay. The home health care team works closely with the physician to plan the care and monitor the patients’ progress. The nurse will contact the physician with any laboratory results, medication changes, or alterations in their health status.

Registered nurses, licensed practical nurses, nutritionists, speech therapists, physical therapists, occupational therapists, home health aides, and medical social workers all work with the patient and their family to develop an individual plan of treatment.

Elara Caring Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in the Northeast, Midwest, and South. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of the patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Elara Caring leads patients through the post-acute care journey by providing the appropriate level of care, delivered wherever our patients call home. The company’s intimate understanding of its patients’ needs allows it to apply proprietary platforms to deliver proactive, customized care that improves quality of life and keeps patients in their homes.

Encompass Health Serving the Lawton, Oklahoma area, they are one of the nation’s leading providers of home health services and continually set the standard of homecare through their people, their approach and their outcomes. The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech language pathologists, medical social workers and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home.

Whether recovering from a surgery, recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patient’s where they are. They offer cutting-edge specialty programs that focus on patient education, self-management and reducing hospital readmission, resulting in better care and better outcomes for their patients.

Competitive Advantage

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field, but place a special emphasis on compassion.
• Quality Care: [Company Name] will provide expert services and their patients will receive quality treatment and care so that the patient is as comfortable as they can be.

VI. Marketing Plan

The [company name] brand.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Knowledgeable, friendly, expert staff of healthcare professionals.
• Quality level of service and care.
• Offering the best nursing, therapy, social worker, and aide services at competitive prices.

Promotions Strategy

[Company Name] will target all residents of [company location] within a 20-30 mile radius. The Company’s promotions strategy to reach the most clientele include:

Local Hospitals [Company Name] already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend [company name] to its patients and their families upon releasing them from the hospital.

Nursing Homes and Assisted Living Facilities Oftentimes, an elderly patient will be placed in a nursing home or assisted living facility right away. Sometimes they are not happy and would rather go back home. [Company Name] will work with these facilities so that they recommend their agency for when a patient highly desires to receive the care in the comfort of their own home.

Website [Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.

SEO [Company Name] will invest in a high SEO presence so that the agency is listed at the top of the Google or Bing search engine when a family member is researching home health care agencies in [company location].

Billboard [Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of doctors offices, rehab facilities, and a hospital nearby.

Advertising [Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters that focus on the retired and aging population.

Pricing Strategy

[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing its services.

VII. Operations Plan

Functional roles.

[Company Name] will need to fulfill the following functional roles in order to execute their business plan and ensure the company’s success:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, tax, etc.
• Staff management and scheduling
• Hiring and training staff

Health Care Functions

• Physical Therapist
• Occupational Therapist
• Home Health Aides
• Social Worker

[Company Name] will achieve the following milestones in the following [] months:

• Secure 2,000 square foot office space
• Develop website, logo, and company website
• Secure small business loan bank financing
• Develop and finalize list of home health care services
• Hire and train staff
• Begin advertising campaign with hospitals, nursing homes, billboard, and print publications
• Grand Opening of [Company Name]

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

VIII. Management Team

Management team members.

[Company Name] is owned and operated by [Founder’s Name], a local nurse who has worked at local hospitals for over the past ten years. She has worked in the Occupational department where there are numerous elderly patients being treated daily. She has dealt with hundreds of elderly patients and their families finding adequate and affordable home health care upon being released from the hospital. [Founder’s Name] has realized there is a lack of quality and affordable home health care agencies in [company location]. She aims to provide the best in-home health care services while also being affordable for the patient and their families.

[Founder’s Name] graduated from the University of ABC with a Bachelor’s Degree in Nursing.

Hiring Plan

[Founder’s Name] will serve as the agency Founder and Chief Executive Officer. She will hire the following personnel in order to maintain an effective and profitable home health care business:

• Office Manager will assist [Founder’s Name] run the administrative tasks to operate the agency. This person will handle bookkeeping, tax payments, payroll, and office inventory.
• Receptionist will handle all phone calls and web inquiries. This person will also manage the scheduling of the home health care staff.
• Nurses – 2-3 nurses will be on staff to provide the nursing services.
• Occupational Therapist – 1 OT will be on staff to provide occupational therapy services.
• Physical Therapist – 1 PT will be on staff to provide physical therapy services.
• Home Health Aides – 3-4 aides will be on staff to provide basic care to the patients.
• Social Worker – 1 social worker will be on staff to oversee the welfare and care of each patient.

IX. Financial Plan

Revenue and cost drivers.

The revenues for [Company Name] will come from the fees it will charge the patients and their insurance for the health care services it provides.

The cost drivers for the company will be the payroll of the staff, lease on the office building, office supplies and equipment, and marketing and advertising costs.

Capital Requirements and Use of Funds

Key assumptions.

The following table reflects the key revenue and cost assumptions made in the financial model:

  5 Year Annual Income Statement

  5 Year Annual Balance Sheet

  5 Year Annual Cash Flow Statement

Comments are closed.

How To Write a Winning Home Health Care Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for home health care agency businesses who want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every home health care agency business owner should include in their business plan.

Download the Ultimate Business Plan Template

What is a Home Health Care Agency Business Plan?

A home health care agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Home Health Care Agency Business Plan?

A home health care agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Home Health Care Agency Business Plan

The following are the key components of a successful home health care agency business plan:

Executive Summary

The executive summary of a home health care agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your home health care agency  
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your home health care agency business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your home health care agency firm, mention this.

You will also include information about your chosen home health care agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a home health care agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the home health care agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a home health care agency may include:

• The elderly
• People with disabilities
• New mothers
• Patients recovering from surgery or illness

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or home health care agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your home health care agency business via public relations or partner with another organization to sponsor an event.  

Operations Plan

This part of your home health care agency business plan should include the following information:

• How will you deliver your service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a home health care agency business include reaching $X in sales. Other examples include hiring a certain number of employees, signing on a certain number of clients, and so on.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific home health care agency industry. Include brief biography sketches for each team member.

Particularly, if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Home Health Care Agency  

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Home Health Care Agency  

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup home health care agency business.

Sample Cash Flow Statement for a Startup Home Health Care Agency  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your home health care agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written business plan is an essential tool for any home health care agency. The tips we’ve provided in this article should help you write a winning business plan for your home health care agency.  

Finish Your Business Plan in 1 Day!

Wish there was a faster, easier way to finish your business plan?

With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Articles

How To Write a Winning Non-Medical Home Care Business Plan + Template