7 Rookie Mistakes That Could Sink Your Home Care Startup

Starting a home care agency is a beautiful mission—but it’s also a minefield if you don’t know where to step. I’ve worked with hundreds of aspiring agency owners, and almost every one of them—no matter how smart, passionate, or well-funded—stumbles over at least a few of these pitfalls.

Let me take you into the story of “Tanya,” one of my coaching clients, who had the heart, the hustle, and a dream—but still found herself on the edge of closing her doors just six months in.

Mistake #1: Rushing Into Licensing Without a Game Plan

Tanya got her LLC, paid her fees, and submitted paperwork fast. But she didn’t understand what came next—policies, inspections, admin staff, compliance timelines. The process stalled.

Avoid it: Treat licensing like a business launch, not a formality. Create a timeline and checklist—or better yet, get a coach who’s been through it.

Mistake #2: Hiring Out of Desperation

She hired caregivers off Craigslist within days of getting approved—no background checks, weak references, and zero onboarding. Within a month, one caregiver ghosted, and another upset a client’s family.

Avoid it: Hire slowly. Screen hard. Train thoroughly. Your staff are your brand.

Mistake #3: Relying Solely on Medicaid

She built her budget assuming Medicaid reimbursements would cover all costs. But delays and low rates nearly wiped her out.

Avoid it: Diversify with private pay, long-term care insurance, and VA benefits. Build your cash flow before Medicaid catches up.

Mistake #4: Weak Branding & No Online Presence

Her website was an afterthought, and she had no logo or online reviews. When families Googled her agency, crickets.

Avoid it: People buy from brands they trust. Get a clean website, Google profile, and begin collecting testimonials early.

Mistake #5: No Referral Strategy

She assumed doctors and discharge planners would send her clients. They didn’t—because she never asked.

Avoid it: Referrals are built, not given. Visit facilities, follow up, show up to events, and bring value—not just brochures.

Mistake #6: Pricing Without a Plan

Tanya underpriced her services trying to compete. But she wasn’t making enough to pay her team well or reinvest.

Avoid it: Know your worth. Set your rates based on value and service—not fear.

Mistake #7: Doing It All Herself

She was the admin, the recruiter, the scheduler, the marketer… and it broke her down.

Avoid it: Build systems, delegate, and ask for help. The goal is to build a business, not a job that burns you out.

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The Turning Point

Tanya reached out when she was ready to give up. But with coaching, we restructured her team, revamped her marketing, and implemented systems that gave her time and confidence back.

Today, she’s not just surviving—she’s thriving.

If you’re launching your home care agency, avoid these mistakes and build your foundation right the first time. Better yet, don’t do it alone.

Want my personal guidance as you build your agency?

Let’s talk. 443.906.3603