This publication is designed to help individuals or families determine whether their interests, resources, and skills are adequate to establish a small home-based business in residential care services. It discusses first the need for residential care. A discussion of setting up a business considers the following: common characteristics of entrepreneurs, evaluation of suitability of present residence for use as a residential care facility, suggestions for providing care, meeting standards, licensing and certification, cost of care in a residential home, and funding. Some home-based business basics are then addressed--financial planning, food service, business organization, and personnel. A section on finding clients addresses establishing what the business will furnish, selecting clients, and setting policies. Some resources for additional information are suggested. (YLB)