Home Healthcare Agency Business Plan and SWOT Analysis

Home Healthcare Agency Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Home Healthcare Agency Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Home Healthcare Agency business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PDF Format
  • Meets SBA Requirements

As more and more American citizens get older, the demand for home healthcare services is expected to increase substantially. Already over the past 15 years the industry has experienced 100% growth. Additionally, as more people have access to larger amounts of capital – the demand for quality in-home care and in-home assistance services has equally increased. The barriers to entry for a new home healthcare agency are usually considered moderate. Most in most states, someone that holds the designation of being a registered nurse can own and operate these businesses with certified living assistants working under that individual. The startup costs are considered moderate given that usually an investment of $100,000 is needed to get these businesses off the ground. Should be noted that special attention should be paid to the front starting cost especially as it relates to holding accounts receivables. Usually, a new home healthcare agency can expect that it will take 90 days to 120 days to receive any payment from any services rendered outside of a patient co-pay.

A home healthcare agency business plan, like any other capital raising document, should have a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and a business ratio page. Most banks and financial situations love to place capital with established home healthcare agencies. Usually, there is a two year wait for a established home healthcare agency to receive funding from a financial institution. However, given the strong demand for the services many financial institutions now allow for startup loans through the small business administration (SBA) to fund these for-profit entities. It should be noted that if your home healthcare agency is going to operate in a not-for-profit capacity, you may need to work with private investors or private funding sources to get the capital needed in order to start this business.

The marketing plan for a new home healthcare agency needs to be expansive. Given the relatively moderate to low barriers to entry for this business, competition within this industry is substantial. Anyone with a nursing license can register a corporation and begin to render services to the general public once the necessary business licenses are in place. As such, it is important to have a well-developed marketing plan that shows how an entrepreneur is going to differentiate their home healthcare agency from others in the market. Most importantly, most successful home healthcare agencies have a number of specialists on staff to render services above and beyond the standard in-home care. These additional specialists may include physical therapist, occupational therapist, pharmacologist, as well as a physician who can render medical services when needed. However, most new home healthcare agency sees simply start with having certified nursing assistants and registered nurses providing the services.

A home healthcare agency SWOT analysis is usually done and is important prior to starting operations. Force trends, home healthcare agencies are generally able to maintain their profitability despite negative changes in the economy. Additionally, the gross margins generated from a home healthcare agency usually range from 85% to 95% depending on the type of reimbursement that is being generated for services rendered. For opportunities, this is generally involves simply hiring additional nurses and related staff that can render a greater number of services to the general public. Pertaining to threats, there are continued and ongoing uncertainties relating to reimbursement, government policy, and regulations pertaining to how these companies operate.

In short, a home healthcare agency can be a great business to operate on a day-to-day basis given their economic stability and continually increasing demand for services. It is important for any entrepreneur to have a complete understanding of the be legal and constantly changing regulatory environment that guides the operations of home healthcare agency businesses.