When you own and operate a home care agency, you must be financially savvy. You need to know how to generate money and how to tell that money where to go in order to make it work best for you. Your home care budget is the one item you need to establish prior to taking your first client and to continue to review as your business grows.
While you might be great at keeping a budget, do you know how to create one that is realistic and will work for your agency for years to come? Here are a few tips to help you know which departments to prioritize in the different stages of your home care agency’s lifespan.
During the Start Up Phase
Your home care budget during your initial start up phase is going to look much different than your home care budget after 5 or 10 years. When you are first beginning your home care agency, you might not need to set aside the money for extensive office staff. Instead, you will have to wear many hats as you build the reputation of your agency and establish partnerships that will last for years to come.
Shuffle money from extra office staff and push it to your marketing budget line. You’ll need the extra cash here to purchase business cards and brochures, as well as to design your website and establish a relationship with an experienced SEO writer.
After 1 Year of Business
Now that your agency has one year of business under its belt, it is time to tweak your home care budget to support more growth. Continue to prioritize marketing but shift some money into supplies for building long-lasting professional referral partnerships. Now is also the time to consider hiring a manager to assist with new client assessments and family communications. Your client roster is growing, and you don’t want anything important to slip through the cracks; this position can ensure your family communication policies don’t slip.
After 5 Years of Business
Over the past years, you will likely have added new positions to your budget and gained enough clients to begin planning for more capital expenses. If you don’t already have an office that is large enough for your staff, family education sessions, and team training, prioritize making this happen for your agency over the next few years. Your larger office will give you the opportunity to host more open house and educational events for your current team, prospective clients, and even potential new caregivers. You can also become a more permanent fixture and resource for your local community.
After 10 Years of Business
Every home care owner wants to make it to the 10th year of business. It’s a milestone that indicates your agency is here to stay and continue to make a positive impact on your local community. Chances are, your budget looks drastically different from the first one you drew up when a successful agency was just a dream. Now, you have evolved and grown into a home care leader in your area with a diverse budget to show for it.
As you continue to lead your team, ensure your budget allows for fair caregiver wages and the opportunity for your team to take time off and to enjoy benefits like ongoing education. Your team will appreciate it and you will benefit with increased caregiver retention.
Article written by Haley Burress.
Hi, my name is Wendell Scott and I help Home Care Agencies who are experiencing high caregiver turnover rates, have trouble coordinating client care and feel frustrated with their team to easily increase efficiency and scale their Home Care business.
I’d like to share with you my free Caregiver Recruitment Engine™ framework. In it, are the tools to help you develop a system to easily attract & hire caregivers (aka a repeatable system for recruiting quality staff), so you can organize your process, reliably recruit staff and efficiently scale your home care team.
The end result:
Faster than ever.