In-home care is an alternative for seniors for getting care instead of going to a nursing home or another related facility. It is an option to keep seniors within home premises while being cared for by professionals and their families. With many senior care facilities being built, it can be said that an aging population is fueling this growth. Whether investors put up a senior living facility or buy an in-home care franchise, the chance of surviving in the market is high.
A Growing Need for In-home Carers
The U.S. home health care industry is currently valued at $84 billion. With the population of those 65 years and older rising by nearly 20 percent in 2030 (from 12 percent in 2000), the demand for in-home care is expected to even rise. Actually, according to the American Association of Retired Persons (AARP) and a hose of researchers, nine in ten seniors prefer to stay at home as they age. The home health care industry is sure to benefit from this demographic surge.
Going along with this growth is the increased acceptance among doctors to do home care practice. Another factor that will support the growth in demand is the alleviation of growing pressures on hospitals. Also, most seniors in this age are baby boomers, and they want alternatives to senior care. Baby boomers are more financially able and wiser in terms of health options compared to older generations.
Currently, there are over 386,000 home healthcare businesses across the U.S. Employing 1.7 million, these businesses are able to enter the market due largely to low barriers to entry. It is not that difficult to put up shop as costs of capital and manpower are not prohibitive. The U.S. is not the only one experiencing this growth. The Canadian Nurses Association (CNA) is expecting about two-thirds of its nurses to serve the home health care industry by 2020. All in all, North America accounts for nearly half of the world’s revenue in-home health care.
Investing in a Franchise
It is important to take advantage of these massive growth estimates with a good plan. Understanding the nature of the business and knowing what type of business you will put up are key. You can start your own business or buy a franchise.
If you start your own business, you have to start from scratch, essentially. You bother doing the business plan formulation. You file for Medicare or Medicaid certification. You worry about staffing, marketing, and medical capital acquisition. If you opt for a franchise, you do away with most of these.
Senior care franchisees earn an average of $123,000 annually, only second to real estate franchisees ($136,000). This is only an average as many franchises with smaller capital outlay, like in-home care, may earn more. As per Franchise Grade, the cost of running a senior care franchise, which includes start-up costs, begin at a low of $92,000 to a high of $315,000. In-home care franchise’s costs are at the low end.
Starting your own business in the in-home care industry is an exciting opportunity these days. In-home care service is a low-capital business. With growth surging in the next decade, running a profitable business is highly likely.