Contributed by Lisa Ferber, a New York City-based journalist who has written for outlets including CNBC, Crain’s New York Business and Dow Jones Mansion Global.
From a business perspective, the time is ripe.
Buying a home care franchise is a chance to establish a foothold in a booming industry while serving a genuine need.
With federal spending on home health rising (the Congressional Budget Office estimates an increase of $1.4 billion per year for the next 10 years) and most of the aging population hoping to live out their final years at home, purchasing a home care franchise makes good business sense.
Here are six reasons to grab the opportunity now:
- A “tsunami of seniors” is coming. By the year 2030, all baby boomers will be over 65. In fact, one-fifth of the population will be 65 or older. And among that senior population, the percentage of people 85 and older is projected to rise from about 14 in 2010 to 21 percent in 2050. Translation: Far more people will need care.
- Home health spending is growing. Home health is the fastest-growing segment of the healthcare industry, says Tom Threlkeld, deputy director for policy and communications at the National Association for Homecare & Hospice. According to Threlkeld, the growth will be driven by a 7.8 average increase in Medicare spending from 2020 through 2025. “This is an industry that is growing and will continue to grow as America’s population continues to age,” he says.
- The industry is in tune with what the public wants. Surveys clearly indicate that most people — close to 90 percent — want to age in place, at home. And for many of them, home care, both skilled nursing and private duty, can help make that happen.
- It’s a low investment that can yield high returns. Home care franchises offer a lower initial investment and can provide higher returns compared with many other types of franchises. A home care franchise can start with an initial investment as low as the $100,000s and potentially generate more than $1 million in annual revenue, and many show positive 5-year growth rates.
- You’ll work with unusually dedicated professionals. The people who commit to serving home care clients are special. They go the extra mile to help others and often become like family members to their clients. Threlkeld says he thinks that in 2016, 7.6 billion miles were traveled in the United States by home care providers. “They take sea planes in Alaska or fishing boats in Maine. It’s about seeing people’s lives improved.”
- You won’t have to go it alone. When you purchase a franchise, you’re not an unknown entity building a shop from the ground up. You’re buying a trusted brand name, as well as marketing, advertising, training and operational support, which you don’t get when you start your own business from scratch. Plus, you can enjoy the independence of running your own franchise while profiting from the guidance of executives in the organization.
For entrepreneurs hoping to make good money while helping their fellow citizens —without breaking the bank on startup costs — a home care franchise may be just the place to look.