Purchasing a home care business involves identifying a business listing online or though an independent business broker, financing the purchase with a loan or personal resources, evaluating the potential earnings, and signing the sales contract or franchise agreement. Home care businesses generally cost between $200,000 and $2 million with a possibility for larger values when multiple properties are sold.
The Federal Trade Commission offers a step-by-step guide for purchasing a franchise, including a strong suggestion to obtain a copy of the franchise disclosure document. This explains the franchise background, the business background, litigation and bankruptcy history, and the initial and ongoing costs of the franchise. For independent home care businesses, this information must be collected independently. Sellers are not always forthright about the primary reason for the sale, and buyers must take responsibility for this.
In general, purchasing a home care business requires industry experience, especially if a loan is necessary. Often it may be a better idea to start an independent business or set up a new franchise. HomeCareHowTo.com estimates that a $20,000 to $90,000 investment is needed to start a new franchise with a long-term commitment to pay between 5 and 7 percent of revenues to the franchise corporation. Setting up an independent operation is also a possibility. This involves incorporating a company, setting up an office, recruiting and training workers, and marketing extensively to build a customer base.