Tips to Grow Your Home Care Business
31. Make sure you understand the costs and are prepared to cover them. The average amount that owners spent to start a non-medical, private duty home care agency through its first six months in 2019 was $60,000, though some reported spending as little as $9,000 and as much as $260,000. (Home Care Benchmarking Study data)
32. Remember that there are three ways to bring in more revenue: 1) getting more clients, 2) increasing per-client revenue, and 3) retaining clients longer. While the first is a necessity when you’re starting out, your ability to manage the second and third will play a huge role in your profitability and growth as you scale the business. Don’t neglect any of these pillars.
33. Invest in getting good online reviews from the start. 90% of consumers read online reviews before making a purchase, and this number is probably even higher for a major decision like in-home care.
34. Unless you come from a background in digital marketing, consider hiring a marketing agency to manage your website, SEO, and Google Ads. It’ll take a lot of strain off you and your online presence is worth the cost of doing right.
35. Develop something that differentiates your agency, both to potential clients and to referral sources. Saying how great your caregivers are or are much you care isn’t enough; anybody can say that. You need something specific, easily communicated, and concrete. For instance, you might train your caregivers to focus on helping clients get enough socialization and make that a key talking point in your marketing. Quality of caregivers can be a great differentiator, but you would need to go truly above and beyond with multiple other sources (client reviews, third-party awards, testimonials) to validate your claim.
36. Understand that establishing relationships with referral partners takes time. According to marketing consultant Steve “The Hurricane” Weiss, it takes 8-12 visits with the average referral source before you receive a single referral from them. (The article linked above also has some suggestions on what to do in those visits.)
37. Use client referral programs and employee referral programs. When executed properly, they typically yield the most loyal clients and the longest-tenured caregivers. Volume of referrals will be tiny as you’re starting, but the more quickly you can put these programs in place the more rapidly you can scale.
38. In general, plan on hiring a sales rep at around 1,000 weekly billable hours. Until then, you’ll need to be thinking about how to make your referral partnerships dependent on a process, not on you as a person, so that you’ll be able to successfully hand them off when the time comes.
39. It’s almost always better to have a few solid referral relationships than many weak ones. As you start to get online reviews, respond to every review regardless of whether it’s positive or negative. If it’s positive, thank them. If it’s negative, give them your number and invite them to reach out to you directly. Whether or not they take you up on it, this sends a great message to other people looking at your reviews.