Question by MELANIE A: Does anyone know about how much capital is required to start a home health care agency?
Wanting to start an independently owned health care agency. Does anyone have any info that they can share including capital needed and or free resources?

Best answer:

Answer by lightningnstars
It’s not that simple…. You need to figure that out. Start by doing a business plan and then your on your way to answering your own question.
First…Contact your states dept of health, to find out what type of certificates & licsences you will need, and if your qualified by their standards.
If you are than you need to sit down & think of all the things that will cost you money such as, ID badges, business cards, advertising, beepers, cell phones, creating & duplicating paperwork for daily report forms etc., gas tolls & other travel expenses,banking fees and loans (such as repaying your capital), business insurance. How many employees you will have, what their wages will be, how many hours they will work, and all the payroll costs & taxes associated with that. The best way to compile all of this is on a per month basis. Once you establish what its going to cost on a per month basis then you can assume it will take 2 months to establish some cash flow, so multiply your monthly expenses by 2 and add 30% to that to be safe. So for example if all your costs of operating totals 15,000 per month : 15,000 x 2 = 30,000 x 30% (9,000) =39,000. and that 39,000 is what you have to operate with until you start receivg steady income from your clients. Be sure to do your research and use realistic costs & scenarios to prepare your business plan. If you intend to get a loan for capital, you will probably need a good business plan. Also, if your a female or minority contact your local business development agency, you can get alot of help and become certified DMWBE (Disabled,Minority or Women owned business enterprise)
I’m editing my earlier answer……
I said you will need 2 months worth of capital, but after a little more thought i am revising that. You should first analize how long it will take you to build your customer base & clients to establish the income level you need to operate your business on a monthly basis. So if your monthly espenses are 15,000 than you need to figure out how many clients/customers do you need to make that much. If it will take you 5 months to establish that customer base than use the 5 as your multiplier, still add 30%.

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