Non Medical Home Care Business Plan Template
If you want to start a successful non medical home care business or expand your current non medical home care business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of non-medical home care business plans.
The following non medical home care business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.
Non Medical Home Care Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new non-medical home care business that serves the residents of [Location]. Our caregivers are fully licensed and trained to provide aging residents with essential day-to-day care that does not require medical assistance. Some of our services include preparing meals, cleaning, dressing and washing our customers, or running their errands. As individuals get older, it gets much harder to do these things without extra help. However, living in a nursing home is not an option for many people. Therefore, our caregivers can help these individuals with these tasks without them leaving their homes or losing their independence.
Services Offered
[Company Name] will provide essential non-medical care and day-to-day assistance. Our licensed practitioners can help with basic care tasks, chores, and errands, or even just provide companionship. Below are some example tasks that our practitioners can help with:
- Cooking food
- Driving to appointments
- Cleaning
- Dressing and washing
- Playing board games
Customer Focus
[Company Name] will serve the aging community of [Location]. The demographics of this area are as follows:
- 103,169 residents
- Average income of $65,000
- 57.4% married
- 38.2% retired and/or over the age of 55
- Median age: 42 years
Management Team
[Company Name] is owned and operated by [Founder’s Name], a nurse who has worked at local assisted care facilities for over ten years. Throughout her career, she noticed that many of her patients didn’t need extensive medical care or supervision and would have been better suited to having a care professional at home. However, there are few companies in [Location] that provide non-medical home care services for this demographic. Therefore, [Founder’s Name] aims to provide the best in-home non-medical care that helps elderly individuals maintain their quality of life without moving out of their homes.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- [Company Name] will have a team of compassionate and knowledgeable staff that are experienced in this field. This staff includes nurses, home aides, and other general administrative staff.
- [Company Name] will be able to service the entire metropolitan area of [Location] and its surrounding areas.
- There is a great demand for non-medical home care services, as many local residents do not want to live in an assisted care facility just to get help with basic tasks.
- The non-medical home care business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking $150,000 in funding to launch its non-medical home care business. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.
The breakout of the funding may be seen below:
- Capital expenditures (computers, equipment, etc.): $20,000
- Marketing and advertising: $30,000
- Staffing costs: $80,000
- Working capital: $20,000
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new non-medical home care business that serves the residents of [Location]. Our caregivers are fully licensed and trained to provide aging residents with essential day-to-day care that does not require medical assistance. Some of our services include preparing meals, cleaning, dressing and washing our customers, or running their errands. As individuals get older, it gets much harder to do these things without extra help. However, living in a nursing home is not an option for many people. Therefore, our caregivers can help these individuals with these tasks without them leaving their homes or losing their independence.
[Company Name]’s History
[Founder’s Name] has worked with thousands of elderly patients during her career as a nurse. She often found that many people did not need to live in an assisted care facility when they only needed help with basic day-to-day tasks. Instead, she found that these patients often enjoyed a higher quality of life when they received care from their homes. This revelation inspired her to start a business where she and other professionals could provide non-medical care to local elderly patients in the comfort of their homes. After conducting the research needed to establish the company, [Founder’s Name] incorporated [Company Name] as an S-corporation on [date of incorporation].
Since incorporation, [Company Name] has achieved the following milestones:
- Found an office location and signed a Letter of Intent to lease it
- Developed the logo and website for the company
- Finalized list of services the company will be able to provide
- Determined the office equipment and inventory requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide essential non-medical care and day-to-day assistance. Our licensed practitioners can help with basic care tasks, chores, and errands, or even just provide companionship. Below are some example tasks that our practitioners can help with:
- Cooking food
- Driving to appointments
- Cleaning
- Dressing and washing
- Playing board games
III. Industry Analysis
You can download our Business Plan Template (including a full, customizable financial model) to your computer here.
According to IBIS World, the global home care industry was valued at $136 billion USD and is expected to grow 4.8% in 2023 alone. The past five years saw a nearly 10% compound annual growth rate for the industry and there is no indication that this growth will slow down anytime soon. This shows that home care services will be in great demand, which means it is a great time to start a non-medical home care business.
This growth is primarily driven by a quickly aging population. People are living longer than ever before and they will need comfortable medical and non-medical care services for much longer. Furthermore, baby boomers comprise a large population and are now entering their retirement years. It is expected that this enormous population will have a significant need for both healthcare and non-medical care and may create a strain on the current industry. However, this also means there is an enormous opportunity for these industries to be extremely profitable in the near future.
This is especially true for home care services, which are increasing in demand. Most aging people would rather receive medical or non-medical care at home than go to a nursing home or hospital. Therefore, there is an incredible demand for these particular services.
The only challenge affecting the industry is a lack of properly trained staff. However, this will only mean that home care services and their staff will be even more valued. These industry trends will ensure the popularity and success of [Company Name] in the near future.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas.
The community of [Location] has thousands of retired, elderly adults who require a greater need of attention. Many of the aging community would prefer to receive their non-medical care in the comfort of their own home rather than in an assisted living facility.
A demographic profile of this market is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following customer segments:
- Elderly individuals: We will primarily market to elderly individuals who are struggling to complete basic tasks but don’t want to move to a nursing home or assisted care facility.
- Families of elderly individuals: Sometimes our customers don’t realize how much they are struggling or that they need some extra care. However, this is usually evident to their family members. Therefore, we will also market to families with aging relatives.
V. Competitive Analysis
Direct & Indirect Competitors
The following companies are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Washington County Home Care
Washington County Home Care has provided both medical and non-medical home care services for over a decade. Their staff is composed of dedicated professionals who are committed to providing quality care in the comfort and convenience of the patients’ homes. Registered nurses, licensed practical nurses, nutritionists, speech therapists, physical therapists, occupational therapists, and medical social workers all work with the patient and their family to develop an individual plan of treatment. In addition to medical care, Washington County Home Care also has a team of home care aides who provide non-medical services as well.
Elara Caring
Elara Caring is one of the nation’s largest providers of home-based care, with a footprint in the Northeast, Midwest, and South. Elara Caring brings together three award-winning organizations – Great Lakes Caring, National Home Health Care, and Jordan Health Services, into one transformational company. They provide the highest-quality comprehensive care continuum of personal care, skilled home health, hospice care, and behavioral health. Their intimate understanding of their patients’ needs allows them to apply proprietary platforms to deliver proactive, customized care that improves the quality of life and keeps patients in their homes.
Encompass Health
Serving the [Location] area, they are one of the nation’s leading providers of home health services and continually set the standard of homecare through their people, their approach, and their outcomes.
The patient experience is at the core of everything they do. That’s why they work collaboratively with the patient’s team of experts to craft a plan of care that meets their specific needs. Their skilled nurses, physical therapists, occupational therapists, speech-language pathologists, medical social workers, and home health aides use a coordinated, interprofessional approach to deliver compassionate, specialized care in the comfort of home.
Whether recovering from surgery, a recent hospital stay, or managing a disease or injury, Encompass Health’s services are designed to meet patients where they are. They offer cutting-edge specialty programs that focus on patient education, self-management, and reducing hospital readmission, resulting in better care and better outcomes for their patients.
Competitive Advantage
[Company Name] has several advantages over its competition. Those advantages include:
- Compassionate Staff: Knowledgeable and friendly staff of home aids and nurses who are highly knowledgeable and experienced in their field.
- Location: [Company Name] will be able to service the entire metropolitan area of [Location] and its surrounding areas.
- Quality Care: [Company Name] will provide expert services so that the patients are at the highest comfort level.
- Pricing: [Company Name]’s pricing will be more affordable than its competition. We will also provide payment plans and flexible payment policies so that the patient won’t have to sacrifice any type of care they might require because the cost is too high.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Knowledgeable, friendly, expert staff of home care professionals.
- Quality level of service and care.
- Offering the best non-medical home care at competitive prices.
Promotions Strategy
[Company Name] will target all residents of [Location] within a 20-30 mile radius. The company’s promotions strategy to reach the most clientele include:
Local Hospitals
[Founder’s Name] already has great relationships with the local hospitals. She will work to make sure the hospitals send referrals and highly recommend [Company Name] to its patients and their families upon releasing them from the hospital.
Nursing Homes and Assisted Living Facilities
Oftentimes, an elderly patient will be placed in a nursing home or assisted living facility right away. Sometimes they are not happy and would rather go back home. [Company Name] will work with these facilities so that they recommend their agency when a patient highly desires to receive care in the comfort of their own home.
Website
[Company Name] will have an informative and attractive website that will feature all of its services and referrals from other satisfied patients. The website will be highly informative and be designed in a way that is friendly and eye-catching.
SEO
[Company Name] will invest in a high SEO presence so that the agency is listed at the top of the Google or Bing search engine when a family member is researching home care agencies in [Location].
Billboard
[Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are a lot of assisted care facilities, doctors’ offices, rehab facilities, and a hospital nearby.
Advertising
[Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters that focus on the retired and aging population.
Pricing Strategy
[Company Name]’s pricing will be moderate so customers feel they receive great value when purchasing its services.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles in order to execute its business plan and ensure the company’s success:
Administrative Functions
- Marketing functions
- Bookkeeping functions
- Hiring and training staff
- Website and social media management
Care Functions
- Drive customers to errands and appointments
- Help with cooking and cleaning
- Dress and wash customers
- Provide companionship
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is owned and operated by [Founder’s Name], a nurse who has worked at local assisted care facilities for over ten years. Throughout her career, she noticed that many of her patients didn’t need extensive medical care or supervision and would have been better suited to having a care professional at home. However, there are few companies in [Location] that provide non-medical home care services for this demographic. Therefore, [Founder’s Name] aims to provide the best in-home non-medical care that helps elderly individuals maintain their quality of life without moving out of their homes.
Hiring Plan
[Founder’s Name] will serve as the company’s Founder and Chief Executive Officer. She will hire the following personnel in order to maintain an effective and profitable non-medical home care business:
- Administrative Assistant (2 to start)
- Office Manager (1 to start)
- Home Care Aides (3 to start)
IX. Financial Plan
Revenue and Cost Drivers
The revenues for [Company Name] will come from the fees it will charge for its services.
The cost drivers for the company will be the payroll of the staff, lease on the office building, office supplies and equipment, and marketing and advertising costs.
Capital Requirements and Use of Funds
[Company Name] is seeking $150,000 in funding to launch its non-medical home care business. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.
The breakout of the funding may be seen below:
- Capital expenditures (computers, equipment, etc.): $20,000
- Marketing and advertising: $30,000
- Staffing costs: $80,000
- Working capital: $20,000
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of Clients | Average |
|---|---|
| FY 1 | 120 |
| FY 2 | 150 |
| FY 3 | 180 |
| FY 4 | 200 |
| FY 5 | 220 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
