Starting or owning a non-medical home care business is a lucrative opportunity with massive growth potential. Learn what makes it profitable here.
What’s the Average Income for a Home Care Agency?
In 2021, Franchise Business Review found that senior care was the top franchise industry for income, outranking real estate, medical, personal, and business services. In addition, the franchise magazine found that the average income for senior care franchises is $155,132.
But what about the home care industry specifically? Home Care Pulse reported in 2021 that the median revenue for the home care industry was $2.02 million, compared to $1.95 million the year before and $1.81 million in 2019. Meanwhile, Home Care Answers finds that home health businesses experience an average gross profit margin of more than 35%.
What Increases Non-Medical Home Care Business Profits?
Thousands of people are turning 65 every day. We’re living longer, and people want to stay in their homes for as long as possible. All of this and more is increasing the need for in-home senior care, expanding the potential of your non-medical home care business profits. So much so that the U.S. Census Bureau reports a 50.5% growth in revenue for the home health care services industry.
Another reason non-medical home care business profits are increasing is that there’s a rise in chronic conditions. The Centers for Disease Control and Prevention says that 6 in 20 adults have a chronic disease. These adults can require help from caregivers to perform daily tasks and housework.
One-fifth of American households are multigenerational, according to Pew Research Center. This number has steadily increased over the last two decades. Contrary to what many people think, this is increasing the demand for home care providers. Parents need help taking care of their elders because they’re also taking care of their kids. Making non-medical home care the perfect option to assist them during the workday and help their loved ones with daily tasks.
On top of that, AARP reports a decline in family caregivers. The interest group says that in 2010 the family caregiver support ratio was seven potential caregivers to every high-risk person 80 years or older. By 2030, that ratio is expected to be four to one, and then it’s going fall even more to three to one in 2050.
Not only is the ratio declining, but AARP also finds that more than 60% of family caregivers are also working, leaving gaps in care. As a result, families are increasingly seeking help from companies like A Place At Home, which in turn can increase their non-medical home care business profits.
Non-Medical Vs. Medical Franchises: Which One’s a Safer Investment?
Non-medical franchises have fewer hoops to jump through. Even if your state requires a license for your business, there are far fewer regulations to follow compared to a medical franchise. You don’t have to deal with insurance companies trying to pay you. Instead, your customers pay you out of pocket. Additionally, neither you nor your employees need specific medical credentialing, making it easier to find qualified care staff members.
On the flip side, medical franchises require registered and licensed practical nurses, physical therapists, clinical supervisors, and other skilled medical professionals.
Non-Medical vs. Medical Franchises: Overhead Costs
The overhead costs for a medical franchise are higher than those of a non-medical business. The professional staffing required for medical care is more expensive than non-medical. Furthermore, an employee is typically required for at least eight hours a day, seven days a week, for medical customers. Compared to non-medical, where companionship services are only a couple hours a day, several days a week.
Your professional liability insurance premiums are lower for a non-medical business than for a medical one. Plus, you require fewer supplies for non-medical home care.
Invest in Potential with A Place At Home
Skip all the obstacles of a medical franchise and become one of A Place At Home’s top performers. Our proven business model will teach you everything you need to know about how to start a non-medical home care business. We’re more than just a home care business; we’re senior-focused. You can profit from multiple revenue streams, including in-home care services, professional care planning and coordination, senior living alternatives, and staffing solution services.
Ready to jump into this thriving industry? Submit a franchise information form.
