By Jeff Salter
As Baby Boomers continue to retire, it comes as no surprise to anyone in the home care industry that owning a senior care franchise can be one of the more profitable and fulfilling business opportunities an entrepreneur can pursue.
With a relatively small initial investment compared to other franchising opportunities, a home care franchise that is run well can post an impressive return on investment. While you may need to rent an office as the home base for your operations, the capital investment is low since your team goes out to a client’s home rather than needing a storefront.
And there is no shortage of clients. According to Forbes, more than 90% of seniors surveyed preferred to age in place rather than be placed in an assisted living facility. This requires some careful planning that includes a social support system and the need for a full- or part-time caregiver.
As our population continues to age, this means that home or senior care businesses will be in demand and can provide owners with a great investment, an alternative retirement plan or as a means to build generational wealth.
Our Aging Population
Every day, more than 10,000 Americans turn 65 years old. But it’s those citizens who are more than 85 years old that make up the bulk of senior care’s clientele.
The U.S. Department of Commerce and the U.S. Census Bureau have estimated that the United States will see explosive growth in the number of citizens who will turn 85 over the next two decades. For years, this number was fairly stagnant and hovered around 5 million people.
In 2020, there were about 6 million people turning 85, and that is expected to rise to 9 million by the end of this decade. It will increase to 14.6 million by 2040.
Coupled with the fact that most people want to age in place at home, that means that a startling number of Americans will need a full- or part-time caregiver over the next several years.
A Recession-Proof Industry
Since the onset of the COVID-19 pandemic and problems with the supply chain, inflation and the cost of living have created an economic slowdown. This has resulted in layoffs and some devaluation of the dollar.
But, in the senior care industry, the factors that create clientele aren’t as reliant on a booming economy. People who are retired, by default, are no longer earning an income and, instead, are spending their savings, using their investments or are relying upon their Social Security income. They are spending down their assets.
We are all also subject to aging. So, as we get older, we have no choice but to either stay at home or go into assisted living or a nursing home, depending on our health and financial situation.
As a member of this industry for the past 33 years, I have seen recessions come and go, but I can attest that economic downturns rarely affect the bottom line in the senior care industry. Demand remains no matter what the dollar does.
Because of the low overhead, the structure of a senior care business is more streamlined and cost-effective than that of many other franchised businesses. While running a senior care business is about so much more than turning a profit, these businesses are still in demand despite changes in economic forecasts.
Built-in Processes
Another reason owning a senior care franchise is so attractive is because the model has already been tested.
When an entrepreneur buys into a senior or home care franchise, they are also buying into a set of operational processes that have already been developed and proven successful.
Instead of having to worry about a name, a logo, a brand and the steps needed to comply with local, state and national regulations and licensure, a franchisee is trained by their parent company’s leadership on the right processes and marketing tips to get a business up and running.
An effective franchising organization already has its processes developed and written down. They know what your market is and who you should target in your community to make your location a success. A senior care franchise owner has instant access to clients, staffing, branding, market data, office infrastructure and a list of vendors who have already inked deals with headquarters.
But the positives aren’t limited to economics and branding.
As a senior care provider, you change lives in your community. You help families solve the problems they have in caring for an aging parent by providing them with trained caregivers who have been properly vetted.
And, speaking of the caregivers, you also make a difference in their lives by providing them with a stable career that can be rewarding. Caring Senior Service’s franchise owners, for example, find great joy in getting to know their clients and caregivers.
Most senior care franchisees think of their work as rewarding, even as they enjoy the benefits of owning their own company.
The Right Stuff
That’s not to say that there aren’t challenges in owning and operating a home care establishment.
It’s a very people-focused career that isn’t for everyone. The most successful franchise owners have a desire to help others, have strong leadership skills and have a passion for business ownership.
While you don’t have to have been in the healthcare or home care industry to be a successful home care franchisee, it does help to have empathy. If you’ve struggled with providing care, finding the right caregiver for your own family members or live in a community where there are limited senior care options, you can put your savvy business sense to good use in building up your clientele.
The home care industry can be rewarding, but it can also be tough because you’re dealing with end-of-life issues on a daily basis.
But, if you have the right grit and determination, are willing to follow the successful processes a senior care franchise has developed over the years, and are prepared to take on the challenge of running your franchised company, an investment in a senior care franchise is worth considering.
Your leadership skills can make a positive difference in the lives of the aging population, the caregiving community that serves them and in your local community.
Caring Senior Service founder & CEO Jeff Salter began his career in senior care in 1991 working for a home health care agency in Odessa, Texas. Four months later, he started his own senior care service to provide seniors with the non-medical care they need to stay at home. In 2003, Caring Senior Service began offering franchises and today has locations in more than 50 markets nationwide. For more information about owning a Caring Senior Service franchise, please visit https://caringfranchise.com/.