Do you have these questions in your mind?
- How to start an elderly care business?
- How much does it cost to start an elderly care business?
- What kind of elderly care businesses can I look into?
- What are the types of services I can provide in the elderly care business?
In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.
Table of Contents
What is an Elderly Care Business?
An elderly care business is a type of business that provides various types of care and support services to elderly individuals. Elderly care businesses may be privately owned, non-profit organizations or government agencies may operate for-profit organizations or them.
An Elderly Care Agency can provide medical care and non-medical care professionals:
- Skilled care (medical care)
- Custodial care (non-medical care)
Elderly Care can include a wide range of services, which we will talk about later in the article:
- In-home Care
- Assisted Living
- Nursing Home Care
- Hospice Care
Here are a few things you should consider before jumping into starting your elderly daycare business:
- Setting up, and recruiting careers, can take up to 6-9 months!
- Register with your regulator (CMS if you are in the US; CQC if you are in the UK) as they ensure your home care business is safe, caring, responsive, and well-led.
- You will be responsible for people’s health and well-being.
- Be in an area with enough population density to support your business.
- Hire the right care manager, for driving the quality, safety, and effectiveness of your company responsibly.
- Have the right marketing strategy for your agency.
Market Insight: More than 12 million people in the US need home healthcare services today, and the revenue has grown to $93 billion in the US alone.
While in the UK, home healthcare services are needed by more than 1.5 million people, with the revenue believed to be around £50 billion.
One of the most in-demand services is personal care - like assistance with day-to-day activities ranging from movement support to daily care.
Is the Elderly Care business right for me?
Here are some facts to consider when deciding to do this business:
The Pros:
- You do not need specialization
- You can start an elderly care business from home
- It has fewer startup costs than most businesses
- You have the choice to select the clients
- If you are compassionate, caring, and loving, it can be a gratifying job
- It incurs high gross margins of around 80%
- You have the liberty to choose your workload
- You are your boss when starting any business
The Cons:
- High competition
- Building trust takes time
- You will have a heavy workload
- Staffing is a constant challenge
- Your work can be inconsistent
- You always have employees working on the basis 24/7
- You have to hire correct and professional employees
- You need to commit a significant amount of time
- Every day there’s a new challenge
How to Hire Staff in your agency?
- While hiring a staff, always interview and complete a formal background check
- It is essential to do thorough interviewing - You need to hire the staff according to the services you will provide.
- You should always train your employees and prepare them for new or intense situations and cases of emergency.
How much investment is needed to start an Elderly Care Agency?
The costs for an Elderly Care Agency depend upon various factors.
Initial costs will include state licensing, funding, marketing collateral, and staffing. On average, start-up costs for this business range from $20K – $50K.
Ongoing expenses involves:
- Food for the residents
- Salaries for the staff
- Building maintenance
- The required licenses or certifications
Add ons in Elderly Care services you can offer:
- Household maintenance such as laundry, cleaning, etc.
- Set up activities such as dressing, bathing, or meal preparation for elders.
- You can provide transportation services for elders.
- Setting up day programs to keep the elderly busy
- Provide home meal services to seniors
How much does Elderly Care Business charge its clients?
The average cost range is from $1,200 to $3,000 per month, covering medications, food, bathing, 24/7 medical care, and other personal needs.
Franchises are one route to take and especially suitable if you want to develop a more significant business and have enough capital.
Senior care franchises available as per your budget and preference:
- In-home care franchise
- Senior housing placement franchise
- Assisted living facility franchise
- Senior mobility product franchise
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Ways to Market Elderly Care Agency
After setting up your business, you need to start looking for customers:
- Directly promote to the customer through online advertising
- Local senior service providers are a good source of referrals
- Develop strong partnerships with hospitals, rehabilitation centers, and independent and assisted living facilities in your area
- Target primary referral sources who will help you find clients
- Build trust and credibility by providing excellent services
- Ask your existing customers to recommend you further to their acquaintances.
Types of Elderly Daycare Businesses you can start?
While some choose to take the route of an Independent Caregiver, being a private caregiver agency with all the required certificates and licenses has always been profitable in the long run.
As a Private Caregiver Agency, you can also provide medical assistance to your clients (if needed) by getting a license and appointing certified nurses.
Some of the other services you can provide are:
1. Homecare
The caretaker visits the person regularly to fulfill the person’s daily needs in the person’s home.
In-home care services may include help with activities of daily living, such as bathing, dressing, and grooming, as well as help with household tasks, such as cooking, cleaning, and laundry.
2. Live-in care
Live-in senior home care is when a caregiver lives in a senior’s home and works full time. This type of care is best suited for seniors who need constant care and help with all their personal and domestic tasks.
3. Residential elderly care home
The elderly are looked after in a residential home according to their needs, such as helping with washing, toileting, dressing, and administering medication.
4. Elderly Medical Nurse Care
Registered nurses will oversee this care, which is similar to a care home. This type of care is usually expensive.
5. Services for the Elderly and People with Disabilities
This service improves the quality of life of the elderly diagnosed with physical, mental, and developmental disabilities.
6. Nursing Homes Staff
Nursing homes provide around-the-clock medical Care and supervision for seniors who need more Comprehensive Medical Care and support.
7. Assisted Living Facility
Assisted living facilities provide a more structured living environment for seniors who need help with daily activities but do not require the level of Care supplied in a nursing home.
8. Hospice Care
Hospice care is specialized Care for individuals in the end stages of a terminal illness and no longer seeking curative treatment.
What are the locations suitable for your Elderly care Business?
A residential senior care facility business cannot be started in any location. Approval from your local council and other regulating authorities is mandatory before launching the business.
The location should consist of an ageing population, high demand for senior care services, easy accessibility of the location, other residential senior care facilities in the area, traffic, parking, and security.
What are the types of services you can provide as an agency?
Types of home care you can provide:
- Nursing and Healthcare
- Personal care – such as dressing or washing
- Emergency care
- Housekeeping or domestic work
- Help with cooking and preparing meals
- Companionship
Types of home care as per time slots:
- Regular 30-minute visits
- Day-long care
- Round-the-clock 24-hour care
- Anything in between
Who is your target market?
The target market for the elderly care business includes families of senior citizens and medical care providers.
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Legal Requirements you need for your business?
Licensing:
There are own regulations in each state which govern the licensing and operation of senior living facilities. In addition, you can search state-level regulations that ensure coordinated, comprehensive licensure on this website.
Certifications:
Individuals providing medical or other professional services without the appropriate certification or license will face criminal charges.
Some of the certifications you need are:
- A registered nurse and Licensed practical nurse Certificate
- Senior Care Administrators License/Assisted Living Administrator Certification
- Caregiver Certification
- Director of Nursing Services–Certified (DNS-CT)
- AADNS Certification
- QAPI Certified Professional (QCP)
How do I get my first client?
The idea of business is abstract without customers, the real deal is to bring clients. …. Right?
So, here are some pointers to help you get your first client.
- Use your social circle
- Reach out to local small business – cold call & email
- Run Google, Facebook & Instagram Ads
- Network in Linkedin
- Organic SEO and Blogging
- Quora Answers, Reditt Network
Conclusion
If you have empathy, compassion, and love, now is the time to make a difference in people’s lives. You can start either by taking a franchise or starting from scratch; you will be able to choose the services you can provide. Your customer consists of seniors with the exact needs, and you’ll be the one to fulfill them.
You may also offer additional services, such as transportation, medication management, and social and recreational activities, to help seniors maintain a high quality of life.
The goal of elderly care businesses is to provide a safe and supportive environment for seniors, helping them age in place and maintain their independence as much as possible.
Now If you think you are ready to enter this business, it’s your turn.
Want to Save Time in your Business Launch?
- How to Create a Business Plan
- What is Market Research, USP, Niche & Positioning
- How to find a suitable name for your business
- How to create your brand image (Logo + Branding)
- How to Register Your Business
- How to Register for Taxes
- How to get Licenses / Permits
- How to Open a Business Bank Account
- How to Get Business Insurance
- Which Payment Processing Terminal (POS) to buy
- How to get Funds for your Business
- How to do Sales & Marketing – Offline & Online
- Why have a Website / Blog / Social Media
- How to build & train your Dream Team
- How to provide Excellent Customer Service
- Buying an Old Business Vs Franchisee Vs Own Brand from Scratch
Handpicked inspirational Youtube videos for you
Davidson House – A Salvation Army Elderly Care Home – YT Channel ‘The Salvation Army UK & Ireland Territory’
A Day in the Life of a Home Care worker – YT Channel ‘Redwood Films’
A day in the life of a Care Home Assistant – YT Channel ‘Agincare’
A. Running a non-medical home care business can be very profitable, as the market expands with 10,000 seniors every day.
Long-term expenses such as Medical equipment, land, and real estate are paid off faster, allowing the business to make more profit annually.
A. Profit are expected to be 25% to 40% of annual revenue as some of the revenue will go towards food and staffing costs. Another 10% to 25% percent can go to recurring medical equipment costs and other expenses.
A. Money for the services is paid by the clients on a monthly or annually basis according to the payment policies.
Payments are also collected through insurance companies such as Medicare, which is the federal government’s health insurance program for people of age 65 and older.
A. In 2020, U.S. health care spending grew 9.7 percent, reaching $12,530 per person.
A. Yes, senior home care franchisees can be very profitable. In the US, average profit annually on senior-care franchises is $98,723.
A. To start your elderly care business, current qualification needed is the QCF Level 5 Diploma in Leadership for Health and Social Care.
A. The cost of home care services varies depending on the location. On an average hourly cost of care at home is between £20 to £30. Home care is often cheaper than residential care.
