Starting a Personal Care Home for Seniors
This guide examines possible steps to take and issues to consider when starting a personal care home for seniors in Canada. Prepared by Canada Business, this document describes licence, permit and registration requirements that apply to the seniors' care industry. The extent to which the information will apply to you will depend on the details of your project.
Because this document is only meant as a guide, Canada Business service centres will not accept responsibility for business decisions made based on the information provided.
For more information on individual topics identified herein, contact your local Canada Business service centre.
BASICS TO GETTING STARTED
You should also consult the Business Start-up Info-Guide for your region which offers information on the steps involved in establishing any type of new business.
Alberta - Business Start-up (Alberta) Info-Guide
Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Canada, it is wise to do your research. You should also make sure that you are suited for entrepreneurship, and that you understand the significant effort required. As such, you should thoroughly enjoy the field you are getting into, and you must believe in your product or service as it may consume much of your time, especially during the start-up phase. There are many issues to consider such as regulations, financing, taxation, managing your business, advertising, and much more. Complete the Feasibility Checklist for Starting a Small Business to assess your level of readiness.
The following is additional information to consider.
INDUSTRY OVERVIEW
Since eldercare is a very demanding multi-disciplinary activity, there are many questions you should ask yourself and others before making your decision to enter into this business. Such questions might include:
- Can your house be adapted for this business?
- Is there competition in your area, if so, are your services distinct?
- How many older people live in your area? How many live alone?
- Is there a need to have a market study done?
- Do you understand the needs of elderly people?
- How many clients do you want at one time?
- Do you have the time, money and abilities for such a business?
- Should you consult with professionals? Which ones?
- What is covered by the health care system?
- How do you deal with the client's relatives?
- What happens when a person living under you care dies?
- What regulations are involved?
With regards to housing, seniors have to face numerous challenges. More and more seniors share a vast range of interests and needs. They may also have variable physical limitations and health conditions. Partnerships between the public, non-profit and private sectors are being organized to offer housing services adapted to seniors' specific needs. Some concerned citizens are looking for means to offer a service in their own community that would allow long-time residents to continue living there. Private houses are a convenient way for autonomous persons or those in light loss of autonomy to stay in their community.
Personal care homes for seniors provide a supportive and nurturing environment. Services in those homes often include:
- meal preparation
- administration of medication
- surveillance
- environment that is secure
- assistance with activities of daily living (ambulatory care, bathing, grooming, feeding)
- laundry
- entertainment
Seniors are one of the fastest growing population groups in Canada. The senior population has grown about twice as fast as the overall population since the early 1980s. The growth is expected to continue into 2020 when baby boomers turn 65. Seniors aged 85 is the fastest growing segment of the overall senior population. Consequently, the demand for eldercare services is also growing.
Providing eldercare services is:
- rewarding, but can be a negative experience if you are not comfortable working with the elderly - especially as their mental and physical health deteriorate
- demanding physically - expect long working days, including some part of the nights
- demanding emotionally - you have to deal with lonely and sick people most of the time
- challenging - you must excel in many areas such as food preparation, management, marketing, meeting people, purchasing, inventory control and personnel administration
- multi-disciplinary - you need skills in areas of finance, accounting, social work, medicine, psychology, law, fitness, nutrition, recreation, restoration and nursing
Classification of the Levels of Care
There is no uniform designation for the levels of care for seniors. Most of the time, the levels are divided in the following three categories:
- independent
- semi-independent
- dependent
LICENCES, PERMITS AND REGULATIONS
All new businesses must comply with regulations and obtain the appropriate licences and permits. When creating a business, you must contact the municipality involved, along with the provincial/territorial and federal governments.
Each municipal government has the authority to issue its own business licences within its jurisdiction. Since there is no uniformity throughout the country regarding municipal licences for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses (including home-based businesses) must also meet the zoning by-laws that control property uses in their municipalities. Consult the government listings of your telephone directory or on the
Eldercare services are governed by federal, provincial and municipal laws. Six provinces have legislation related to home care: British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick and Nova Scotia.
The
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Insured Health Services, which include hospital care and services provided by physicians.
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Extended Health Care Services, which are not insured and include nursing homes or long-term residential care, home care, adult residential care and ambulatory health care services, and are not insured services.
Examples of licences, permits and regulations:
Licences
- municipal business licence
- food service establishment licence
Permits
- building or renovation permit
- health department permit
Regulations
- health regulations and requirements
- fire safety standards and regulations
- zoning by-laws
Food and Drugs Act - Controlled Substances and Precursors
- smoking regulations
- hazardous waste/air quality regulations
- security regulations/emergency plan
- Protection of Personal Information - Your Responsibilities
- infection control regulations
- room and board regulations
BizPaL
BizPaL - Business Permits & Licences provides Canadian businesses with one-stop access to permit and licence information from all levels of government. This online service is offered by Industry Canada in partnership with provincial, territorial, and municipal governments. Please note that BizPaL is not available for all provinces and all cities.
FINANCING
Canada Mortgage and Housing Corporation
MANAGING YOUR OPERATION
Insurance
Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, try asking other business owners in your area to recommend one. Your local seniors' associations or clubs may also have information about insurance packages specifically tailored for eldercare services.
Examples of insurance:
Basic insurance
- fire insurance (extended coverage on buildings and contents)
- liability insurance (depending on the type of business)
- burglary protection (theft coverage)
- dishonesty insurance (covers thefts by employees)
Marketing/Advertising
Word-of-mouth advertising and good public relations are often the best tools for promoting your personal care home. Networking, including an open-house day for interveners in the health field of your region such as employees from hospitals, clinics, pharmacies and community services, is a good way to promote your establishment. These interveners should afterwards be able to answer questions from seniors looking for a home. Also bear in mind that a happy customer and his or her family provide good advertising and that referrals are a valuable way of making potential clients aware of your services.
For more information regarding advertising and marketing, see the following documents:
- Signs and your Business
- Plan your Advertising Budget
- Advertising Do's and Don'ts
- Ways to Promote Your Product or Service
- Marketing Plan Outline
- E-Commerce - Exploring Your Options
- E-Business Info-Guide
The
The federal Competition Act governs misleading advertising and deceptive marketing practices for most businesses in Canada. The Act defines which marketing practices are illegal and the process of complaint investigation.
For more information, consult the Competition Act - Misleading Advertising and Deceptive Marketing Practices, or visit the
Guide to Market Research and Analysis
Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your potential clients and competitors is a critical first step in market investigation and development of a marketing plan.
In developing a marketing plan, your primary functions are to understand the needs and desires of your clients; you should select or develop a service that will meet their needs and develop promotional material that will make them aware and ensure service delivery.
Basic Bookkeeping
A good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.
The legal requirement concerning financial records specifies only that they be a permanent, accurate and complete record of your daily income and expenses. There are many types of record books available. For example:
- double entry bookkeeping
- commercial bookkeeping systems
- one-write systems
- computerized systems
- single entry bookkeeping
Choosing Your Location (see Store Location - "Little Things" Mean a Lot)
Choosing the right location for your business is important. Considerations include the needs of your services, the location of your potential clients and competitors, and such things as:
- taxes
- zoning restrictions
- accessibility to hospital, transit system, recreational activities and church services
- noise
- secure environment
Layout and Design
It is very important to choose a layout and a design that is appropriate for your clients as well as for yourself and your employees. Convenience and security are two main issues to consider. To be adapted for seniors, your preferably stair-free home might need some of the following:
- bath, toilet and other grab bars
- doorways which are accessible
- air conditioning
- shower without steps
- good lighting
- lever handle on doors
- non-slip, heavy doormats and runners
Selecting Your Equipment
Your house might need to be equipped with bathing equipment, toilet seats, walkers, and wheelchairs. These may be purchased, or may be loaned from the
Leasing Equipment - Another alternative is to lease equipment to help keep start-up costs down.
Selecting Your Menus
Have a dietitian prepare a list of meals for your clientele according to their specific needs or as recommended by their doctor. The Web site of
Selecting Professional Services
The use of professional services is essential to the success of a small business. Since eldercare service comprises many disciplines, professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently. Under no circumstances should you attempt to render professional services that you are not qualified for, such as nursing, social work and legal advice.
As an entrepreneur, there are professionals whom you might want to consult or might need to consult on a regular basis. Have a personal contacts list ready in case of emergency. The list may include a:
- lawyer
- social worker
- dietitian
- doctor
- nurse
- physiotherapist
- occupational therapist
- pharmacist
- ambulance driver
- insurance broker
- accountant
- banker (see the document Dealing With Your Banker & Other Lenders)
Staff Training
Provide ongoing training and maintain a library of resource materials. You might want to consider having all staff, including non-professional, trained for:
- First Aid
- CPR
- injury prevention
- nurturing care
- security
- dieting and meal preparation
The Canadian Red Cross and St. John Ambulance offer courses which might be very useful for you and your personnel.
Clients' Record
Keep a good record on each client; some establishments use a binder for this information. The type of information could be anything pertaining, but not limited, to:
- medication intakes
- name of physician and hospital preference
- infection control and oxygen therapy information
- incidence reporting
- smoking and alcohol consumption
- resuscitation
- family contact information
- allergies, injuries and diseases
- weaknesses, strengths and preferences
An additional type of reporting is to record comments of staff on each client at the end of each shift.
Incidence reporting/Emergency situations
You will need to find out to whom in your area you have to report to in case of an accident. You will also need to create your own emergency plan and will have to ensure that all your employees know all the procedures in case of emergency. Information is available at
Setting Up a Pay System
Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce workforce turnover.
Checklist for Profit Watching
Making a profit is important. Profit can be defined simply: revenues - expenses = profit. So, to increase profits, you must raise revenues, lower expenses, or both. To make improvements, you must know what's really going on financially at all times.
You can find additional information on managing your operations, by viewing our index of
ASSOCIATIONS
There are associations that may be of use to home care business owners. Although it is not necessary to join an association, there can be advantages in becoming a member because they:
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exchange marketing and promotional ideas among members
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establish and encourage high standards of quality and professionalism
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represent and advocate on behalf of members
Examples of associations include, but are not limited to:
RESOURCES
Additional resources which may help eldercare business owners include, but are not limited to:
Publications
You may find books, magazines and other relevant print material at the Canada Business service centre and business service organizations in your community that provide Canada Business information. Contact your Canada Business
Statistics
Related Web Sites
ADDITIONAL INFORMATION
When seeking business information, feel free to visit the Web sites for the
For general business information, you may contact your
Telephone: Call 1-800-272-9675 and speak to a business information officer who will direct you to the best sources of information or refer you to programs and services relevant to your business situation. Some Centres have optional recorded answers to frequently asked questions to speed up service. E-mail: You can also send your questions via e-mail from the Web site. In-Person: The Canada Business service centres offer an extensive collection of business-related publications, directories, leading-edge business products (e.g., videos, CD-ROMs) and access to external databases. Business clients can use these materials on their own or with the help of a business information officer. The Canada Business service centres have arrangements with existing business service organizations in communities across Canada to provide Canada Business information. Contact the service centre in your region for the location nearest you.
*To download publications in PDF format,
DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
