5 Common Mistakes New Home Health Agencies Make — and How to Avoid Them

Starting a home health agency is a big step, and while the opportunity is exciting, many new owners run into preventable roadblocks. Here are five common mistakes we see and how you can avoid them:

1. Skipping the Business Plan
   Jumping straight into paperwork without a clear roadmap can cost you time and money. A solid business plan keeps you focused and fundable.

2. Choosing the Wrong License Type
   Each state offers different licensing options, and picking the wrong one can limit the services you’re allowed to provide. Know your goals before you apply.

3. Underestimating Compliance
   Many entrepreneurs overlook how detailed compliance can be. Policies, procedures, and documentation must align with your state’s requirements from day one.

4. Neglecting Marketing Early On
   Waiting until you’re licensed to market your agency is a missed opportunity. Begin building awareness and relationships early.

5. Doing Everything Alone
   Trying to handle legal, operational, and clinical requirements without help leads to burnout. Get guidance or outsource what you can.

By learning from others’ mistakes, you’ll save time, money, and stress. Avoiding these five pitfalls gives you a stronger, smoother start.