Starting a Non-Health Home Care Business

Written by angela stringfellow
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Non-health home care is in high demand as more people prefer to stay at home instead of reside in an assisted living facility or nursing home during their elder years. A non-health home care business can be quite profitable once it is set up and running, and many people find personal satisfaction from providing a service that helps others.

Skill level:

Things you need

  • Accounting software, such as QuickBooks

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  1. 1

    Determine what services your business will offer. Home care businesses offer a variety of services to individuals, including transportation, companionship, meal preparation, cleaning, errands, laundry, personal care and many more.

  2. 2

    Develop a tentative pricing schedule. Prices for in-home non-medical care vary widely across the country. Average prices in Central Pennsylvania range from £9 to £16 per hour. You can base your prices on the different services offered, the time of day services are provided or the number of hours services are needed. For example, some organisations charge a higher hourly rate for more complex services, for overnight and holiday services, or for shifts lasting less than four hours.

  3. 3

    Create a cash flow projection statement. If you do decide to take out a business loan, the bank will want to see your cash flow projections. Using a template that you can obtain online, insert values for each item that will apply to your business. Estimate how many clients you will be serving, for how many hours, and at what rate to determine your income. Estimate each applicable expense, including employee payroll, payroll taxes, worker's compensation insurance, and office expenses. The template will allow you to see how much money you would have left or need to supply to keep your business running each month.

  4. 4

    Set up a formal business entity. Since your business will be entering people's homes, you'll need a business that offers added legal protection of your personal assets. In this case, a sole proprietorship or partnership is not advisable, because your personal assets are at risk if a client sues you. Choose from a limited liability company or a corporation.

  5. 5

    Obtain business liability insurance. Since your business will be dealing with people with special needs in their homes, you are subject to liability. There is potential for your staff or your clients to become injured during the time your services are being offered, as well as other potential liability issues. Liability insurance will help cover damages and legal fees in the event that you are sued. You can obtain business liability insurance through most general insurance carriers.

  6. 6

    Obtain workers compensation insurance if you will be hiring employees. The requirements for this vary by state, but in Pennsylvania, for example, any business that employs others is required to carry worker's compensation insurance. In the state of Pennsylvania, you can obtain this insurance by contacting the State Workers Compensation Fund with an estimate of the total payroll you will be paying out for the year.

  7. 7

    Set up a payroll and accounting system, such as QuickBooks, that will help you pay your employees, submit appropriate payroll taxes, and keep track of your income and expenses for tax time.

  8. 8

    Develop policies and procedures, and a training program for new employees if you will be hiring others to work for you. Your policies and procedures should outline safety issues, define the scope of services that you offer, and explain procedures for reporting injuries or other problems.

  9. 9

    Hire employees if you have chosen to do so, train them using your newly developed training program and begin to advertise your business and provide services to clients.

Tips and warnings

  • Seeking the advice of an attorney when choosing a legal structure for your business is wise. An attorney will be able to assist you with filling out all the forms, filing your business name, and in choosing the legal business structure that is best suited to your needs.
  • Taking the extra time to set up your business the right way will save you many headaches down the road. Ensuring that you have proper insurance and have set up your payroll correctly will keep you out of trouble with the government.

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