What are the real costs of starting a home health care business?
If you’re wondering “could a home care franchise be right for me”, you’ve come to the right place. ‘Get to know Nurse Next Door’ is a three-part article series to set you up with information that should make your decision easier. In Part 2, we defined our three business models and outlined ideal candidates for each. In Part 3, we’ll break down some of the numbers for starting up a Nurse Next Door home health care franchise.
If you go to most franchisors’ websites, you’ll find approximate costs of starting a home health care business, but you may not get all the details right off the bat. Our website is no different–we tell you how much it usually costs to start up (on both the low end and high end), but we don’t give you exactly how everything breaks down.
It’s not because we (or other franchisors) are hiding something from you–it’s because costs can vary from region to region, cost more or less depending on the territories you want or the model you choose–and because, well, that’s a lot to read in one place.
But you’re here, and it’s likely because you want to know how much it costs to start a health care business. We’re going to tell you how much a franchise costs under our traditional franchise concept model!
How much does a Nurse Next Door franchise cost?
Before we explain each line item, you should know that only two fees go directly to Nurse Next Door: the franchise fee, and the technology start-up fee. Everything else supports third-party vendors, suppliers, and other partners necessary to ensure your health care business is safe, legal, and operationally efficient.
To see the individual fees of starting a home health care business, take a look at our start-up costs table.
Initial franchise fee
This fee gets you access to the Nurse Next Door name and brand, systems, training, onboarding, and protected territory you’ll need for your franchise. It gives us the bandwidth to provide you with the initial support and training you’ll need to get set up for success, as well as the proven business systems we use across the board.
Technology start-up fee
You’ll get access to Nurse Next Door’s centralized, world-class Care Services Center (one of the best investments you’ll make), as well as the software and technology infrastructure and licenses to launch and operate your business.
Pre-opening branding and promotion
Establish the brand in your community! This fee includes initial marketing materials, plus the estimated cost to wrap your first Nurse Next Door vehicle.
Initial training program
While access to Nurse Next Door’s training is included in your initial franchise fee, this investment covers travel, meals, and accommodations for your 5-day onboarding program in Vancouver.
Office equipment and supplies
This fee leaves room for you to make sure you have the right equipment for your office, whether it’s desks, chairs, or printing supplies.
Legal & accounting
To operate a health care business properly, you’ll need professional legal and accounting services. This fee will pay for an exceptional franchise lawyer and for setting up your corporate documents.
If you’d like to rent office space (or if your state requires you to have a physical office), this is included in the start-up budget.
You’ll need to turn on the lights!
After starting your new home health care business, you’ll need to invest in local branding. From online PPC (Pay-Per-Click) campaigns to offline materials like signage or decals, this covers it. You’ll need the budget for marketing and community engagement activities – basically, anything you need to be more visible in your area.
Insurance (excluding Worker’s Compensation)
This includes liability and other critical coverage. We have a world-class policy and supplier to protect you and your business.
Worker’s Compensation Insurance
This includes worker’s compensation coverage. We have a world-class policy and supplier to protect you and your business.
This is to invest in a new vehicle (to wrap in the Nurse Next Door brand, of course) if you don’t already have one.
Computers and related peripherals
You’ll likely need a laptop, a printer, and possibly a second cell phone. This fee accounts for all of those.
License & permits
To operate a home care business, you’ll need certain licenses (which varies by state or province). You’ll also need a business license. That’s what this is for.
Consultant and/or Director of Nursing
You’ll likely to hire a consultant and/or Director of Nursing to help with aspects of your business such as care.
We’ll help you get your business certified with the proper credentials.
$0-100 (for first 3 months) 12¢ per call
This is the system used to monitor caregiver attendance in real time.
Additional branding collateral
If you need to replenish marketing materials (pro tip: you will), or you’d like additional marketing pieces, this fee should cover it all.
Additional Funds – 3 to 6 Months/Working Collateral
You’ll need enough capital to pay caregivers and suppliers as you grow. If your expenses outweigh your revenue at the very beginning, you will want to budget for working.
Can you afford a health care business?
Whether you’re making the investment alone, want to go in on it with a partner, or want to get approved for a loan before jumping in, buying a health care business is more affordable than you think. Considering the benefits you get at start-up, it’s a rewarding venture!