Demand for home care has been creeping upwards for years, with no sign of slowing down. According to the U.S. Census Bureau, the number of adults ages 65 and up is projected to hit 82 million by 2050 compared to just 58 million in 2022 – a 47% jump in just a couple of decades. Combined with the fact that 77% of older adults have expressed a preference to age in place, agencies have a major opportunity ahead to harness this demand and drive significant growth.
To make the most of it, you’ll need to position yourself for success, adequately planning for future expansion while knowing exactly where to look for the most promising leads. Here’s where we think you should start.
Why is a Home Care Business Plan Important?
Creating a business plan for your home care agency is essential—without one, you’re flying blind. To scale a business intelligently and accommodate growing demand, you’ll need a strategy that incorporates plenty of research and future-forward thinking.
Market Analysis
Whether you are expanding into new geographic areas or simply broadening the breadth of your services within your current footprint, you’ll need to understand the demographic groups at hand.
Which needs are most prevalent among the populations you’re serving? Is demand the most pressing for medical needs, non-medical needs, or an even mix of both? How many competitors are operating in the same spaces, and how closely do their offerings align with your own? If their offerings don’t align fully, are you in a position to plug gaps in the market?
Expansion Strategy
While demand for home care is increasing nationwide, your agency may only choose to expand the reach of certain services – i.e., specializations or technology-driven solutions – especially in the early days.
A tiered expansion plan that rolls out over months or years will avoid overwhelming, carving out time for each step to be executed methodically. As you plan your expansion, see if you can identify potential healthcare providers, insurers, or local organizations that can act as outreach partners, getting the word out to potential clients within your community.
Operational Plan
A comprehensive business plan for home care agency operations must include detailed processes for recruitment, onboarding, and training. To meet growing demand, agencies must build out their employee roster. Detailed processes for recruitment, home care onboarding, and new caregiver training are a must, especially against a backdrop of high turnover industry-wide; starting off on the right foot is one of the best ways to mitigate attrition on the back end.
Home care software can help underpin these strategies by standardizing, streamlining, and simplifying each step of the hiring process, from training new talent to ensuring every shift is assigned to the most qualified caregiver.
Financial Plan
As businesses grow, their financial landscape shifts along with them. Develop a cost analysis for your expansion that considers everything from marketing your new locations or services, hiring the appropriate staff, incorporating or upgrading your technology stack, and adapting your office space.
Next, update your revenue projections based on your expanded operations, and be sure to incorporate any funding requirements (e.g., loans, investors, etc.) that may be necessary to sustain your operations.
What are the Greatest Growth Opportunities for Home Care Agencies?
A recent study commissioned by AxisCare and conducted by Leading Home Care … a Tweed Jeffries company, identified some of the most prominent trends for 2025 and beyond. Here’s where the top industry players see the greatest growth opportunities and how those opportunities can help usher in an era of financial wellness for agencies.
How can Agencies Enhance Their Current Business & Attract More Clients?
Not every agency needs to hit the ground running with a massive expansion – sometimes, the most fruitful opportunities are right under our noses. Most agencies have plenty of space to optimize their operations, trimming waste and saving countless hours every week by choosing home care software. These platforms are tailor-made to improve service delivery and client engagement through digitization.
For starters, mobile apps make it easier for caregivers to complete their everyday tasks, from verifying visits to recording client information in a centralized and standardized way. Home care platforms are also a boon for client and caregiver scheduling, identified by 51% of survey respondents as the most important system for operating a successful agency. Algorithms intelligently pair caregivers to open slots based on availability, specializations, and preferences, with the ability to quickly fill vacant appointments should any changes occur on the fly.
In fact, 69% of agencies see doing a much better job with current business and attracting more clients as a very high to extremely high growth opportunity – this was rated the #1 growth opportunity.
What Specialized Services can be Offered to Senior Living Communities?
As discussed above, expansion can also mean broadening the breadth of services your agency offers. This can be done without adding a single location or geographic area to your existing footprint. Partnering with senior living communities is a great way to address unmet needs via mutually beneficial partnerships, from chronic disease management to companionship services.
From a growth perspective, this approach is very effective at building referral networks and generating recurring revenue. Agencies can also typically charge more for specialized services.
What are the Benefits of Expanding Into New Geographic Markets?
Many areas still have limited access to home care services, presenting a golden opportunity for agencies that are able and willing to expand their physical presence. By identifying and addressing these gaps, agencies can cement themselves as essential providers, increasing its client base and enhancing its reputation in one fell swoop. With 64% of survey respondents viewing expansion into new markets as a high to extremely high growth opportunity, the potential for growth in underserved areas is clear.
As the first movers in a given area, an agency can leverage its strategy for business expansion to build ironclad relationships—and, therefore, a strong referral network—with local partners, including healthcare providers, senior living facilities, and community organizations.
How can Agencies Add Additional Payer Sources?
Fifty-seven percent of survey respondents viewed payer source diversification as a key driver of future growth, with private pay offering the greatest potential. Agencies can attract new clients to this stream by offering accessible options like tiered pricing, bundled service packages, or payment plans.
Home care organizations can also enroll in state-level Medicaid programs that cater to low-income individuals. These programs are eligible to fund non-medical services, which makes them a valuable asset for agencies in qualifying states. They can also collaborate with the Department of Veterans Affairs, which offers multiple programs that fund home care for retired service members.
Finally, long-term care insurance (LTCI) frequently subsidizes non-medical care services like grooming, household maintenance, and companionship. Forging relationships with LTCI providers will unlock access to this payer source and make it easy for onboarded clients to navigate the claims process.
How can AxisCare Support Your Agency’s Growth?
AxisCare is the ideal partner for agencies looking to streamline operations and expand their business. Whether enhancing current services or moving into new markets, AxisCare provides the tools to boost efficiency and streamline business operations.
Want to see how AxisCare can transform your caregiver onboarding process? Request a demo today and discover how we can help take your agency to the next level.
