When choosing to start a business (any business) it is always a good thing to not only understand the industry as it is today, but to also look to the future. Below you will find stats and information that will prove why health care is not only the safest option, but that it is the hottest franchise to buy.
Low Capital Investment Needed. Starting a home care agency can cost $150,000 or less to start. Compare that to fast food franchises ($500,000 or more) or retail franchises ($300,000 or more), there are significant savings starting a home care agency.
Incredible Revenue Opportunities: Considering the low investment capital needed, the opportunity can be endless. With Talem Home Care’s industry leading territory size, being able to capture a larger portion of the market is easier than ever. According to the National Association of Home Care and Hospice, the average home care franchise averages between $1.5 to $2 million in revenues with an average of 13% net profit. Independently owned agency revenues tend to be 20% to 30% less than franchised agencies. By having larger than average territory sizes, our franchisees could see larger than average revenues and net profit.
Can Still Maintain “Mom & Pop” Feeling: Many non-franchised “mom & pop” independently owned agencies feel the pressure and stress of trying to do in all on their own. Buying a Talem Home Care franchise allows owners to run, operate, and promote that “mom and pop” feeling. However, having access to other owners or franchise consultants only increases an owners’ success by having a team of people who can share best practices info, regulatory info, and potential buying power or cost sharing options when it comes to supply costs or other costs of running a business.
“Booming” Market: Starting in January of 2011, the Baby Boomer population started turning 65 at a rate of 10,000 people a day. It is estimated that over the next several decades the number of people 65 years and older are expected to double. According to the US Census Bureau, as of 2010, there were 40.2 million people over the age of 65. That number is expected to grow to over 80 million people by 2050.
- Someone turning 65 has a 70% chance of needing long term care and support
- Caregivers spend an average of 20 hours a week giving care
- Among the senior population, hospital usage is going up, yet average length of hospital stay is going down by 1% a year. Resulting in patients going home from hospital needing more help
- Desire to stay home and “age in place” is increasing
- Today’s seniors have fewer disabilities and are healthier than in the past. However, that leads to dealing with chronic issues more.
- Today, seniors are living longer. In 1900, life expectancy was 47 years old. In 2007, life expectancy for men was 76 and for women was 81 and gains expected to continue
- Seniors have been and will continue to be the heaviest users of the health care industry
Personal care worker (PCW) jobs will have the fastest growth among all occupations. Over the next 10 years, the number of PCW jobs will grow by over 70%.
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