Careswitch | Home Care Industry FAQs

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

Short answer: 36-50% gross profit margin and 10-15% owner's cut—if you're at the stage where you're reliant on your business to support you financially and the business has gotten off the ground.Let's give a little context for that since it varies from business to business.During a forum on this year's Home Care Growth Summit I asked this question to two veteran home care leaders: Jeff Wiberg, CEO of Family Resource Home Care and a member of the Home Care Association of America board, and Tim Murray, Co-founder of Aware Senior Care.Here are some key points from what they told me:According to Tim, a good target to aim for is 50% gross profit margin and 15% owner's cut (depending on how you calculate your finances and allocate profits, this may be near-synonymou... Click to view the full answer from our home care industry expert.

Question 1

How much do home care agency owners earn?

Connor Kunz · Accepted Answer

While the amount a home care agency owner varies based on size of agency, how they&#x27;re compensated, and a variety of other factors, we have good data to help answer this question.The short answer: the average home care agency owner earns a salary of $101,400.By the way: we have this data thanks to our Home Care Compensation Report, which you can check out free here.Back to the question of how much home care owners earn. To start with, here&#x27;s a graph showing our current data on average salary for home care agency owners, split up by agency size (as measured by weekly billable hour ranges).Unknown block type "image", specify a component for it in the `components.types` optionIt&#x27;s also important to recognize there are various ways home care owners are paid, and not all are even ... Click to view the full answer from our home care industry expert.

Question 2

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

Brett Ringold · Accepted Answer

I could give the cop-out answer by saying it depends on the circumstances of every agency and I’d be right, but we’re not here for cop-out answers. :)While it does depend on the circumstances of every agency, we interviewed Brett Ringold, an experienced agency administrator in Pennsylvania, to get the dirty details on exactly when and why he hired for each role, and what he’d do differently if he went back.Brett is the VP at A Long Term Companion, an agency he runs alongside Michele Kilstein, his mother. They’ve been in business since 2010 and are handling over 6000 weekly billable hours.Here’s how we’ll break this down:Eight key roles in a home care agencyWhat division of roles might look like with only two administrative staffWhen A Long Term Companion hired each role and what prompted t... Click to view the full answer from our home care industry expert.

Question 3

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

Connor Kunz · Accepted Answer

Short answer: 36-50% gross profit margin and 10-15% owner&#x27;s cut—if you&#x27;re at the stage where you&#x27;re reliant on your business to support you financially and the business has gotten off the ground.Let&#x27;s give a little context for that since it varies from business to business.During a forum on this year&#x27;s Home Care Growth Summit I asked this question to two veteran home care leaders: Jeff Wiberg, CEO of Family Resource Home Care and a member of the Home Care Association of America board, and Tim Murray, Co-founder of Aware Senior Care.Here are some key points from what they told me:According to Tim, a good target to aim for is 50% gross profit margin and 15% owner&#x27;s cut (depending on how you calculate your finances and allocate profits, this may be near-synonymou... Click to view the full answer from our home care industry expert.

Home Care Owner FAQs