Finding the Money to Start
Any new company needs to find some capital to get started. Home care startups, though, need a little more than others. By some consultants’ measures, it can be as much as $40,000 to $80,000 for a non-skilled and private-pay startup.
This cost increases when other factors are considered. For example, a licensed but non-Medicare company would need an estimated $60,000 to $100,000. For a Medicare-certified company, the starting cost jumps to $150,000 to $350,000.
Where do these costs come from? Mostly, they are centered on licensing costs and payments or software and technology. Office space also makes up a large chunk of startup expenses. Consultants also suggest that new owners take a detailed look at not only the initial costs but the probable budget for their first year of business.
There are a few ways that new startups can make these funds. For one, many business owners tap into their own savings. Additionally, many turn towards loan programs or utilize assets such as borrowing against their own home.
Finding New Customers
New companies do have the initial disadvantage of not having a large customer base to draw upon. This means that you’ll need to compete with veteran companies who have an existing customer base. To do this effectively, you’ll need to put an emphasis on marketing.
Many new companies do this by offering incentives to new customers such as discounts or free items. These have to be balanced to make sure that this cost is making a profit that will cover it. This may not be a profit made immediately, but a profit made over the course of offering a client your services. If your promotions cost more than they’ll make, you won’t benefit from doing them. If a loss is incurred by any business in marketing, the goal is to earn that back in profit.