The world of franchising has been slowly growing over the past 70 years to encompass nearly every category of business. From accounting and yard work, to business skills and car maintenance, as well as dog walking and fast-food restaurants. Whatever you’re interested in, franchises have you covered.
Most people have heard of the big ones like McDonalds and Burger King (or others slightly more obscure like Barnes and Nobles and Dale Carnegie Training), but there’s a different category of franchise that is growing at a very quick rate.
The franchise sector you want to get involved in
The sector you want to get involved in is the home-healthcare or in-home senior care niche. In Forbes’ 2014 Best Franchises for up to $150,000, three of the top ten where home-healthcare brands.
To illustrate how popular home-healthcare has become: in 2000 there were just 13 home-health care brands across America. Now there are 56 home-healthcare brands nationwide.
To add to these numbers, in 2001 franchises had around 300 locations each. Currently, 45 of the 56 in-home senior care franchises have roughly 6,000 locations each.
What’s responsible for the rise in healthcare franchising?
As baby boomers get older and start to reach retirement age, there is more demand for in-home care. Especially as a fairly new trend is emerging. This trend is known as aging in place, and it is the name given for the desire to age at home. Or, at least, in a place that is not an aged care facility or retirement village.
Typically, this means finding a one-storey house or an apartment to live in and have a carer come to the house. Many seniors and soon-to-be-retirees see this as a freedom and not a luxury. They want to live at home for as long as possible—to many baby boomers they see retirement homes, or aged care facilities, as places to go when you’ve got no one to look after you at home.
The increasing popularity of retirees wanting to age in place has increased demand for more carers able to visit homes, or sometimes live with a retiree.
What investing in a home-healthcare franchise looks like
Want to open a fast-food franchise? That investment will cost $500,000: bare minimum. Here are five reasons home-healthcare is a great investment opportunity:
1. Lower cost of entry
Unlike a fast-food franchise, a home-healthcare franchise generally costs about $150,000 (sometimes less) to start up. Investing in home-healthcare is usually for the hiring marketing, recruiting and training staff as well as office space.
2. Higher revenue
Considering how low an investment a home-healthcare franchise is, one of these franchises can drive a lot of volume after the first year. This is typically because the first year involves networking and making connections with referrers: these are professions such as elder-law attorneys and social workers.
Industry research from 2014 showed that the “median franchise home-healthcare revenue was nearly $2 million.” Add to this it’s been noted franchise owners make a lot more than independent operators. Which is helpful because the extra revenue gives franchise owners more capital to invest and grow their business compared to their independent operator competition.
3. Demand isn’t slowing down
All signs are showing there’s no slowing down for the growth of home-healthcare—largely due (as already mentioned) to the aging baby boomer population. What this means is more and more Americans of retired age are going to be looking for ways to continue to live at home, and still receive the care they need from medical professionals. It’s also about ensuring their house is taken care of as well as themselves.
Globally, the UN estimates by 2050, 2 billion people will be over the age of sixty—that number will have tripled from 2014. If nothing else, this number should explain how the demand for home-healthcare facilities is continually growing, and why it’s such a safe franchise category to invest in.
4. Opportunity to take the franchise overseas
One American home-healthcare franchise has already started to expand in China. And since America has been one of the first to franchise, invest and grow this sector, the opportunities to help aging populations around the world with American franchised home-health facilities is an ever-growing probability.
5. Helping the community
One of the way home-healthcare facilities measure their success is one of the simplest. And it’s not money.
Helping seniors stay in their own homes, and do it affordably is driving factor of most current home-healthcare franchises. They view it as a vital community service that is needed and valued by their community.
After all, why get into healthcare if not to help people?
Is the home-healthcare business right for you?
In 2014 the home-health care franchise business started to get the attention of various media outlets. Arguably, home-healthcare businesses have been around since the 70s with business like nursing agencies and locum tenens agencies. However, what we’re seeing now is more strategic businesses franchising out across the country helping senior members of communities receive the home-healthcare they need.
If you are looking for an industry that involves helping America’s aging population lead a fulfilling life after retirement, this could be the franchise for you.
Also, it’s not just the retirees you’re helping. Knowing loved ones are being cared for is a source of comfort and security to their families.
Exciting business opportunity
The demand for this business isn’t going anywhere except up, the opportunities for expansion are endless, and unlike fast-food franchises, home-healthcare won’t fall out of favour when the latest fad diets and exercise programs come around.
If you are looking for an exciting new challenge in an ever-growing market with a guaranteed base of clients from now until you no longer care to do business, home-healthcare franchising is you.
You get to help the community by providing an invaluable service while making a comfortable profit for yourself.
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