😣 “I’m Working Like Crazy... So Why Am I Still Broke?”

Written by Katharina Villanueva, CEO/COO/Founder of Olivia Professional Solutions and Nest & Care

A Financial Wake-Up Call for Home Care Agency Owners

If you’re in this industry, chances are you’re juggling more than most people could imagine. 

You’re hiring caregivers, managing last-minute call-outs, talking with families, and still trying to be present for your family at home. You’re pouring your heart into this business. 

You’re not alone. I’ve been there too. 

And yet… with all the hard work, the late nights, the payroll runs—sometimes the bank account still doesn’t reflect the effort. 

If you don’t know your numbers—your real numbers—then what you’ve built isn’t a business. It’s a very expensive, very exhausting hobby. 

🚨 The Pain We Don’t Talk About Enough 

Let me ask you a few hard questions—questions I had to ask myself too:

● Do you know your gross margin? 

● Can you say exactly what percentage of your revenue goes to COGS?

● When was the last time you sat down and reviewed your P&L with a home-care-savvy bookkeeper? 

● Do you even have one? 

Most of us didn’t come into this as financial experts. We’re clinicians, caregivers, and helpers at heart. But that doesn’t change the reality: 

No one is coming to fix this for us. 

We have to lead with clarity—and that starts with understanding our numbers.

💥 The Shift That Changed Everything

In 2021, I started working with Jennifer Ramos—a former home care agency owner turned business exit strategist. Her focus was helping business owners build companies that are sellable at top dollar, anytime, because life doesn’t always give us a warning. 

She asked me a question that rocked me: 

“If something happened to you tomorrow, could someone step in and buy your business—without chaos?” 

It was a wake-up call. I had to get serious about our margins, our financial systems, and the true health of our business. 

That moment planted a seed. 

Fast forward to two weeks ago, I was sitting at The Home Care Event for Home Care Owners in Cleveland, TN, and Jeff Wiberg walked us through COGS (Cost of Goods Sold) in a way that brought everything full circle. 

And now, with two businesses under my belt, I didn’t just hear it—I felt it.

“Do you really know what it costs to send a caregiver into a client’s home?” 

Not just wages, but taxes, PTO, uniforms, caregiver parties, job ads, training, gift cards—the whole picture. 

The truth? I thought I had a solid handle on our numbers. 

But as Jeff began breaking down what actually belongs in our COGS, I had to pause.

Line by line, it became clear—I wasn’t tracking everything. 

Some of it was buried in admin. Some was never categorized at all. 

We were estimating. Rounding. Hoping it balanced out. 

But in business? Hope doesn’t pay the bills. And it certainly isn’t a strategy. 

💡The Real Cost of Providing Care 

If you’re running a private pay agency, your COGS should include:

● Caregiver wages 

● Payroll taxes (FICA, FUTA, SUTA) 

● Workers’ comp 

● PTO, sick leave, uniforms, meals

● Bonuses, gift cards, shift incentives 

● Caregiver events, appreciation weeks, support groups 

● Job ads, referral bonuses, ATS, recruiter pay 

● Orientation and ongoing training 

● Other direct caregiver related expenses 

All of it adds up. 

And when you calculate it properly, the goal is to keep COGS at 60–65% of revenue. According to the 2024 Activated Insights Benchmarking Report, best-in-class agencies that know and manage these metrics consistently hit a 36–40% gross margin. 

👩🏻‍💻 But That’s Just the Beginning 

COGS is only what it takes to send a caregiver to the home. It’s your above-the-line cost.

But what about what it takes to run your business? 

Your office rent, scheduler salaries, care coordination, sales and marketing, systems, and most importantly—your own salary. 

These are your operating expenses—and they’re what determine whether you survive seasonal dips, hiring challenges, or economic downturns. 

If you’re not tracking both your COGS and operating expenses with intention, your business may not be built to last. 

🤝 Why I Created Olivia Professional Solutions 

I realized that most bookkeepers don’t understand the home care model. And that’s a huge problem for agency owners trying to lead well. 

That’s part of the reason why I launched Olivia Professional Solutions—to provide virtual bookkeeping and financial support built specifically for home care. 

We connect agency owners with vetted professionals who: 

● Clean up and categorize financials correctly 

● Create a home-care-specific chart of accounts 

● Review your P&L and margins monthly 

● Help you make strategic decisions based on real numbers

Whether you work with someone locally or choose Olivia’s team, here’s the takeaway:

You can’t scale chaos. You can’t build wealth without clarity.

 We’re not just running a care agency. We’re building something bigger—for our families, for our teams, for our futures. 

🧠 Your Business Deserves a CEO 

You don’t need a finance degree. You need a mindset shift. 

You need a plan. 

You need to stop guessing—and start owning your numbers. 

Get a bookkeeper who understands this business. 

Review your margins. Know your COGS. Build your profit on purpose.

You’ve come too far to settle for stress and survival. 

👉 Ready to work with someone who gets home care? 

Get matched with a reliable virtual bookkeeper through Olivia Professional Solutions — so you can save time, reduce stress, and focus on what you do best.

📅 Book your FREE meeting: www.oliviapros.com/booking-page

🌐 Visit us: www.oliviapros.com

📞 Call: 240-690-9882

We built this business with our heart. 

Now it’s time to lead it with our head