How to Start an Elder Care Business

Tuesday, May 28, 2013

How to Start an Elder Care Business

In the past, seniors who lacked the mobility necessary to be completely self-sufficient often turned to nursing homes. Today, seniors have a number of options for obtaining various levels of care, such as home care, assisted living and medical and nonmedical transportation services. Many seniors who wish to retain their independence require minimal assistance, which can include transportation services, cleaning services, companionship, diet monitoring, bill payment, grooming assistance and light chores. An elder care business can meet these needs.

Step 1

Conduct market research to identify those areas of elder care that are lacking in your area. The U.S. census is a great place to start. There are many options within the elder care industry. Start with areas that interest you or that you have experience in. You may find that transportation services are lacking. If you don’t mind spending your days behind the wheel, starting a nonmedical transportation business could do well. If you enjoy cooking or shopping, consider starting a companionship service. Likewise, if you are a nurse or physical therapist, focus on utilizing your skill set with a nursing care or rehabilitation business.

Step 2

Contact your state’s department of health services to learn the rules and regulations governing your business model and insurance requirements. For example, if you plan to provide medical assistance or medical transportation services, you will be required to obtain additional training or certifications.

Step 3

Obtain CPR and first aid training in addition to any state-required training or specialty training. Study your state's patient’s bill of rights, if it has one. The American Red Cross, the National Association for Home Care and Hospice and the National Board for Certification of Hospice and Palliative Nurses provide various levels of training and certifications for elder care professionals.

Step 4

Consult with an accountant and lawyer to determine whether to set up a limited liability company or other entity, and find out about tax implications for hiring contract workers.

Step 5

Invest in home care accounting software designed for your business model. Relevant features may include patient intake, a medication database, scheduling, billing and invoicing.

Step 6

Develop written policies for your business that detail how you handle emergencies and complaints, payments, employee training oversight and your commitment to patient confidentiality.

Step 7

Develop hiring criteria for your employees. Hire a background company to conduct background checks on all applicants. Create a detailed interview process that establishes your policies, expectations for your employees, information on the patient’s bill of rights and the nature of the work. Your employees should be of the highest caliber: compassionate, loyal, discreet, outgoing and good-natured.

Step 8

Establish procedures so potential clients can know what to expect and understand their responsibilities, such as disclosing relevant information or reporting unsatisfactory care.

Step 9

Develop brochures that detail the nature of your services, your background and experience, your written policies, annual training requirements for your staff and your commitment to compassionate and discreet care.

Step 10

Market your business to local physicians, outpatient centers, clinics, community centers and senior centers.

Things Needed

Business plan
Business permit
Insurance
Written policies
Background investigation company
Brochures
Trained employees

References (4)

Resources (2)

About the Author

Shanika Chapman has been writing business-related articles since 2009. She holds a Bachelor of Science in social science from the University of Maryland University College. Chapman also served for four years in the Air Force and has run a successful business since 2008.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Tuesday, May 28, 2013