With a growing aging population and a shift toward in-home care, now is the perfect time to start a home care business in Iowa. Whether you’re an aspiring entrepreneur or a healthcare professional looking to transition into business ownership, Iowa offers a promising landscape for launching a home care agency. This guide walks you through the complete steps to start your agency in 2025—covering licensing, staffing, marketing, and compliance—so you can start strong and grow fast.

Why Iowa Is a Great Place to Start a Home Care Business

Key Benefits:

  • Over 17% of Iowa’s population is 65 or older—an aging market with growing needs.
  • High demand for non-medical care services like personal assistance, companionship, and homemaking.
  • Lower competition in rural areas creates expansion opportunities.

Iowa families are seeking affordable, local care solutions that allow their loved ones to age comfortably at home. This rising demand means consistent revenue potential for those entering the market.

Step 1: Research the Market

Know Your Audience

  • Senior citizens living independently
  • People with disabilities who require daily support
  • Post-hospitalization patients in need of temporary care
  • Family caregivers looking for respite support

Use local data to identify underserved areas—especially small towns outside Des Moines, Cedar Rapids, or Davenport. Fewer competitors in rural regions often mean more accessible entry points for your home care startup.

Step 2: Define Your Services

Popular Services in Iowa:

  • Companionship and personal care (bathing, grooming, dressing)
  • Meal preparation and grocery shopping
  • Medication reminders and basic mobility support
  • Transportation to medical appointments

Choose services based on local demand and the availability of qualified caregivers. Non-medical home care is a great place to start—it’s easier to license and typically doesn’t require hiring RNs or LPNs.

Step 3: Choose a Business Structure

Recommended Entities:

  • LLC (Limited Liability Company): Easy to form, provides legal protection, and is common for home care startups.
  • S Corporation: Good for tax planning when the business scales.

Register your business through the Iowa Secretary of State’s website. Once approved, get your EIN (Employer Identification Number) from the IRS to set up your business legally for taxes and hiring.

Step 4: Obtain the Required Licenses in Iowa

Licensing Process:

  • Apply for an In-Home Health-Related Care Agency license through the Iowa Department of Inspections, Appeals, and Licensing (DIAL).
  • Submit background checks, care plans, service descriptions, and organizational documents.
  • Demonstrate compliance with state rules and complete any required inspections.

Non-medical home care providers must still comply with state and federal regulations related to caregiver qualifications, privacy (HIPAA), and safety standards. Review licensing forms at dia.iowa.gov.

Step 5: Set Up Your Office and Tools

What You’ll Need:

  • Dedicated phone line and email
  • HIPAA-compliant filing system or cloud-based records
  • Caregiver scheduling and payroll software
  • Simple website with contact form and services overview

You can start small—many home care owners work from a home office during the first year. Invest in automation early so you’re prepared to scale smoothly as clients grow.

Step 6: Recruit and Train Caregivers

Hiring Tips:

  • Recruit CNAs, PCAs, and caregivers with experience in elder care or disability support.
  • Run background checks and verify credentials through the Iowa CNA registry.
  • Offer in-house training for consistency in care and compliance.

Quality caregivers are the heart of your business. A happy, well-trained team means better client satisfaction and lower turnover. Provide mentorship, bonus programs, and flexible scheduling to attract top talent.

Step 7: Create a Pricing Strategy

Common Rates in Iowa:

  • Non-medical home care: $25–$30/hour (urban areas)
  • Live-in care: $200–$250/day
  • Specialized Alzheimer’s or dementia care may justify premium pricing

Offer value packages, such as weekly care plans or bundled hours, to make pricing attractive while preserving margins. Always align pricing with caregiver pay to ensure profitability.

Step 8: Get Business Insurance

Essential Coverage:

  • General Liability Insurance
  • Professional Liability Insurance
  • Workers’ Compensation (required if you hire employees)
  • Commercial auto insurance if offering transportation services

Insurance protects your business from lawsuits, injuries, and other risks. Work with a local agent who understands healthcare-related businesses in Iowa.

Step 9: Launch Your Website and Marketing

Digital Presence Essentials:

  • Local SEO targeting cities like Des Moines, Ames, and Cedar Falls
  • Claim and optimize your Google Business Profile
  • Add testimonials, blog posts, and service pages
  • Use Facebook and Instagram to reach family decision-makers

Home care is a trust-based business. Your online presence should be professional, transparent, and emotionally engaging. Consider blog topics like “When to Hire a Caregiver in Iowa” or “Home Care for Veterans in Des Moines.”

Step 10: Network for Referrals

Referral Partners to Target:

  • Hospitals and rehabilitation centers
  • Assisted living facilities
  • Churches and senior centers
  • Veterans service organizations

Referrals are one of the best ways to grow. Start with local outreach, in-person visits, or even hosting free workshops for family caregivers. Word-of-mouth in Iowa communities spreads fast!

Step 11: Track Your Progress and Grow

Monitor Key Metrics:

  • New client inquiries per month
  • Client retention rate
  • Caregiver turnover rate
  • Profit margin per hour of service

Use these KPIs to make informed decisions. As your agency grows, consider hiring a care coordinator, marketing assistant, or billing manager to streamline operations.

Step 12: Explore Medicaid and VA Programs

Funding Opportunities:

  • Apply to be a Medicaid provider through Iowa’s Department of Health and Human Services (HHS)
  • Offer VA Aid & Attendance support for eligible veterans
  • Connect with local Area Agencies on Aging for contract opportunities

These partnerships can provide stable revenue sources while also serving low-income or underserved populations in your area.

Final Thoughts: Launch Strong in 2025

If you’re ready to start a home care business in Iowa, 2025 is your year to do it. With thoughtful planning, a strong marketing strategy, and a passion for service, you can build a trusted agency that provides essential care and creates lasting impact. Follow this guide, stay compliant, treat your caregivers well—and success will follow.

Need more guidance? Stay tuned for our upcoming articles on how to scale, hire, and market your home care agency in Iowa!