What each section of a home care business plan is for
By Scott McKenzie, founder of Home Care Agency Blueprint · Updated
Each section of a business plan answers one question a reader has about your agency. The SBA describes the common sections of a traditional plan; a home care plan adds licensing, payers and caregiver operations. You can rename, merge or reorder sections, as long as each question gets a clear answer.
Traditional or lean?
The SBA describes two common formats. A traditional plan is detailed, uses a standard structure and can run dozens of pages; the SBA says lenders and investors commonly request it. A lean startup plan summarizes only the key points, typically on one page, and some lenders and investors may ask for more. If you plan to borrow, write the traditional plan; a lean version can still help you think.
The sections, one by one
| Section | What it is for | The reader’s question |
|---|---|---|
| Executive summary | Tells the reader what your agency is and why it will succeed: mission, services, leadership, location, and, if you are asking for financing, the request and high-level growth plans. | Can I understand this business in one read? |
| Company description | Explains the need your agency meets, who it serves, and the strengths that will make it competitive. | Why this agency, here? |
| Market analysis | Shows your target clients, your service area, the competitors already serving them and what they charge, from your own research. | Are there enough clients, and can you reach them? |
| Organization and management | States your legal structure, who owns the agency, and who runs each part, with an organization chart and resumes if you have them. | Who is responsible for what? |
| Services and licensing | Lists the services you will provide, any license your state requires for them, and who will pay: private pay, long-term care insurance, Medicaid or other programs. | Is the agency allowed to do this, and who pays for it? |
| Marketing and sales | Describes how clients and referral sources will find you and how an inquiry becomes a client. Your financial projections build on this section. | How do clients actually arrive? |
| Operations | Covers hiring, training and supervising caregivers, scheduling and visit records, and how you will meet your state’s record-keeping rules. | Can the agency deliver care safely and consistently? |
| Funding request | States how much funding you need, whether it is debt or equity, the terms you want, and exactly what the money will pay for. | What are you asking for, and why that amount? |
| Financial projections | Supports the funding request with forecasted income statements, balance sheets and cash flow statements, with more detail for the first year. | Do the numbers hold together? |
| Appendix | Holds the documents that back up the plan: resumes, license documents, quotes, leases, credit reports. | Can you show it? |
Section descriptions follow the SBA’s guide to writing a business plan; the home-care additions are our own.
What makes a home care plan different
- Licensing comes first. Many states license home care agencies, and the license type limits which services you may offer. Check with your state licensing agency; homecarelicenseguide.com, also published by Home Care Agency Blueprint, collects state licensing items with sources.
- Payers shape the numbers. Private pay, long-term care insurance and Medicaid pay differently and on different schedules. If you are weighing Medicaid, becomemedicaidprovider.com, also published by Home Care Agency Blueprint, covers what becoming a provider involves.
- Caregivers are the operation. Hiring, training, scheduling and supervising caregivers belong in the plan, not in an afterthought.
Your lender sets the details. Each lender and loan program decides what it asks for and how it decides. The SBA says the lender will give you the full list of eligibility requirements for your loan. Ask each lender for its list before you finalize your plan, and confirm licensing questions with your state agency.
What to do next
Frequently asked questions
How long should a home care business plan be?
Long enough to answer each section’s question. The SBA says traditional plans can be dozens of pages and lean plans are typically one page. Ask your lender if it has a preferred format.
Which section should I write first?
Any. Many writers start with the market analysis and the numbers, and write the executive summary last.
Want to talk through your options?
A free 15-minute clarity call with Home Care Agency Blueprint. It helps people start home care agencies, so expect that perspective. You do not need a finished plan first.
Book a free 15-minute clarity call