Home Care Owner FAQs

We've brought together a team of educators and home care experts to answer the burning questions that you and every home care owner will ask at some point.

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How much do home care agency owners earn?

Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years

LeadershipFinances

What roles should I hire for in my home care agency's office staff and when should I hire them?

Brett Ringold Vice President of A Long-Term Companion & HCAOA board member

Leadership

What's a good profit margin for a home care agency and how big a cut should I take as the owner?

Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years

FinancesLeadership

While a business owner may never know when a personal crisis will strike, they should always be ready to exit. The biggest mistake we see home care owners make is they begin the selling process when it’s too late to really prepare.

Here are four suggestions that any business owner can start today, regardless of when they are looking to exit, whether 5, 10, or 20 years from now. You might want to take an annual day of reflection to consider the following:

1. Consider Your Next Chapter

Take some time to figure out the next phase of your life. For example, if you want some time to travel and relax before starting a new chapter, you may want to have a project always lined up. This can help remind you that the current business is only a chapter in your life.

Here are some questions to get you started:

What will your professional life entail? Will it include starting another business, consulting, investing, retiring, or something else?
What will you do in your next chapter to give your life a sense of purpose?
What kind of lifestyle do you aspire to have?
What relationships will you invest more in?
What hobbies and interests will you indulge in?

2. Know Your Minimum Number

While you may not know the value of your business today, you should consider having a minimum number. This is the minimum amount of money you want to garner from selling your business to be able to look back on your exit without regret. Knowing this number alone can help you realize a more lucrative exit. When you get a valuation early on (3 years before your exit), you will have a better understanding of your target and have a number to reach for and even surpass.

3. Imagine Your Exit

It’s fun to imagine the day you ultimately exit as dropping off the keys and riding into the sunset. Realistically, however, that may not happen. Contemplate what possible roles you would be happy to continue working in within the business, in what capacity and for how long.

Are you willing to stay on as a consultant?
Will you assume a minority ownership role?
Do you prefer to stay on as an operator with a majority role?

If you answering these questions on an annual basis you can maximize the number of options to exit and the amount you garner.