Misperception #1 – There is too much competition in the industry, therefore, it’s too difficult to be successful or to be different.
Competition in the home care industry is weak and fragmented, as most home care providers are smaller, independent companies that generally lack the proven systems, professional support, technology and revenue advantages that a quality senior care franchise offers.
Although there are a number of people “in” the business of providing home care services, only a small percentage have the expertise necessary to truly provide high-quality care and sustain long-term success in this growing and evolving industry.
Misperception #2 – The market is saturated.
Franchised Systems – If you look at the top 37 franchise systems in operation today and their share of the total senior market, here is what you will find:
- Approximately 5,200 Franchised Locations
- Serving Approximately 300,000 Clients
2010 40+ Million (Age 65 & Older) 18.6 (Age 75 & Older)
2015 47 Million (Age 65 & Older) 20 Million (Age 75 & Older)
2020 55 Million (Age 65 & Older) 23 Million (Age 75 & Older)
Franchised Market Share – Available Senior Market
- Only 0.6%! (Age 65 & Older)
- Only 1.4%! (Age 75 & Older)
Over 95% of the senior care market is available to be tapped into by franchised systems!
Consider these facts:
- 10 million family caregivers currently provide care for their aging parents.
- They are providing more medical and/or nursing-related tasks that they are not properly trained to provide.
- They increasingly cannot adequately meet the needs of their loved ones.
- They are increasingly anxious about care and they are getting tired.
Misperception #3 – There are too many employees required to build a successful business.
Let’s take a look at a real-life example* that can help easily address this misperception and clarify some of the basic financials of the home care business model:
- It would take less than 1,000 billable hours per month to reach break-even.
- It would take 2,000 hours per month to generate $480,000 in sales which could be as few as 12 clients and 21 caregivers.
- It would take 4,000 hours per month to generate $960,000 in sales which could be as few as 24 clients and 42 caregivers.
- At $960,000 in sales, the business would have a gross margin of $316,800.
As you can see, it does not require a large number of clients or caregivers to build a Million Dollar home care business.