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The senior care industry is experiencing massive growth right now. Over the next five years, Technavio predicts the industry will grow by $91.37 billion. Senior care businesses can be highly profitable and are seeing growing demand. Discover the top reasons to start or invest in a senior care business here.

1. Growing Aging Population 

The aging population is increasing at an unprecedented rate. Baby boomers are retiring, and the number of seniors requiring care is steadily rising. In 2034, seniors will outnumber kids under 18 years old for the first time in U.S. history, according to the U.S. Census. Plus, AARP reports that more seniors require additional care due to chronic illness. As a result, what once was 14% of seniors 85 years or older in 2010 will be more than a fifth of seniors in 2050 needing more care services. This demographic shift presents a unique opportunity for senior care businesses, as the demand for quality care services is higher than ever.

2. Long-Term Market Stability

The senior care industry is known for its stability and resilience, even during economic downturns. Regardless of market conditions, people will continue to require care and assistance as they age, making it a recession-resistant business opportunity.

The COVID-19 pandemic highlighted the importance of in-home care providers like A Place At Home. While nursing homes struggled to keep the virus from spreading and their occupancy levels up, in-home care businesses thrived. Because of this, in-home care businesses are more recession-resistant than nursing homes or assisted living facilities.

<h2> 3. Technological Advancements </h2>

Technology advancements are transforming the senior care industry, making it more efficient, accessible, and cost-effective. They’re revolutionizing how care is delivered, from remote monitoring systems to digital health records. Investing in a senior care business now allows you to use these innovations and provide top-notch care services to your clients.

4. Diverse Revenue Streams

Businesses in the senior care industry offer a wide range of services beyond basic caregiving. These may include specialized memory care, rehabilitation services, and staffing assistance. By diversifying your revenue streams, you can cater to various needs within the senior community and enhance your business’s profitability.

For example, the senior care franchise A Place At Home offers not only in-home senior care but also care coordination, senior living alternatives, and staffing solutions. This means owners can walk seniors and their families through the entire aging process, creating consistent care.

In-Home Care Vs. Nursing Home

There are several business opportunities in the senior care industry, with in-home and nursing homes being some of the most popular options. But here’s why in-home care is a better choice.

First, more seniors want to age in place. Many of them have lived in their homes for decades and don’t want to leave, making in-home care their preferred option.

Then, when you compare the expense of paying for in-home care versus a private room in a nursing home, it’s less than half the cost. SeniorLiving.org finds that the national average for the price of a home care aide for five days a week is $53,560 for the entire year. Compare that to what the American Council on Aging notes as the annual cost of a private room in a nursing home, $108,405.

Lastly, an in-home care business or franchise is more affordable to invest in than an entire nursing home facility. Investment costs for a home care franchise stay lower because they don’t require a large facility with several rooms; instead, a small office to hold consultations in will do. With A Place At Home, our startup costs range from $84,185-$148,517. In comparison, a nursing facility or assisted living franchise is a multi-million-dollar investment.

A Place At Home: A Turnkey Solution to Your Next Business Venture

The senior care industry is experiencing unprecedented growth. By investing in A Place At Home now, there’s no chance you’ll ever feel FOMO (fear of missing out). You’ll also gain a competitive advantage over those who try to invest years after you have a stronghold in the market.

Starting a business from scratch is daunting, but franchising with a reputable senior care franchise like A Place At Home eliminates many challenges and uncertainties. The support structure helps mitigate the risks associated with entrepreneurship and increases your chances of success.

We offer a turnkey solution with our proven business model, comprehensive training programs, ongoing support, and access to a network of experienced professionals. Leverage our expertise, best practices, and established systems to navigate the senior care market effectively and efficiently.

Learn more about your opportunity with us by submitting a franchise form.

Learn everything you need to know about franchise royalty fees and where the money goes. Depending on the franchise, sometimes franchise royalty fees can be negotiable.

What Are Franchise Royalty Fees?

Simply put, they’re a percentage of your revenue that you pay to the franchisor in exchange for the right to use their brand name, products, and systems. In other words, it’s the cost of doing business as a franchisee.

Franchise royalty fees typically range from 4%-8% of your gross sales but can be as high as 12% or more, according to the Small Business Association. The exact percentage will vary depending on the franchisor and the industry. For instance, a food franchise is typically a high-volume business, which means a lot of customers purchase a lot of individual items. Because their revenues tend to be higher than other industries, they typically have a lower royalty fee percentage.

In contrast, another type of business, like a consulting franchise, doesn’t experience as high of a revenue volume, so their royalty fee percentage may be 10%. Then others fall in the middle, such as senior in-home care franchises such as A Place At Home.

Depending on the agreement, you’ll report your gross sales to the franchisor every month or quarter. They’ll then deduct the agreed-upon percentage from your revenue, leaving you with your net sales. Some franchises may charge a flat fee instead of a percentage, while others may have various rates for different types of products or services. In some cases, the franchisor may also require you to pay additional fees, such as marketing or technology, on top of the royalty fee.

It’s important to note that royalty fees are not the same as the franchise fee. Franchise fees are a one-time payment you make to the franchisor when you first sign on, whereas royalty fees are an ongoing cost.

Why Do I Have to Pay Royalty Fees?

As a franchisee, you’re essentially buying into a proven business model. The franchisor has already worked hard to develop a successful brand, create effective systems and processes, and build a customer base. You’ll get the right to use the franchisor’s brand name and logo, which can be a considerable advantage in a crowded marketplace. Perhaps most importantly, you get ongoing support and training from the franchisor, which can help you succeed in the long run. You’re essentially paying for the right to use all that hard work and leverage it will better position yourself for success than starting from scratch.

Are Franchise Royalty Fees Negotiable?

Franchisors are typically reluctant to negotiate their royalty fees, as they’ve already set them at a level they believe is fair for both parties. However, if you have a strong case for why you should pay less, it’s worth bringing it up with the franchisor and seeing if they’re open to negotiation. For example, if you believe you’re opening a less profitable location, they may lower the royalty expenses.

It’s also worth noting that some franchisors may offer discounts on royalty fees for specific situations, such as if you open multiple locations or are a veteran. Other franchisors, like A Place At Home, offer a sliding royalty fee structure. So, the more revenue you earn in one year, the lower your royalty percentage is. Their current royalty structure is as follows:

• 5% – up to $999.99
• 0% – $1 million to $1.5 million
• 5% – + $1.5 million in sales

If you’re looking to try to get out of paying royalty fees altogether, don’t bother. These fees are a crucial part of the franchise business model and are typically a percentage of your gross sales. They provide the franchisor with ongoing revenue and help to cover the costs of continuing support services, such as marketing, training, and operations. While some franchisors may be willing to negotiate their royalty fees, it’s unlikely that you’ll be able to avoid paying them entirely. So, when considering a franchise opportunity, be sure to factor in the cost of royalty fees to ensure that it fits within your budget.

Red Flags to Watch for With Royalties

While lower royalty fee rates are great, experts at Forbes warn that if a franchisor is pushing for higher up-front costs with significantly lower royalty rates, that’s a red flag. This can be a sign that the franchisor is just looking for short-term cash flow and that they might not provide the best ongoing support.

You should also be suspicious if the franchisor is too eager to offer discounted royalty fees. Forbes says there are some sufficient reasons why they might offer reduced royalty fees, such as being a new franchise or trying to get a specific market to sell. But otherwise, if an established brand is overly willing to offer you a discount on their royalties, experts say it could be a sign they’re in financial trouble and need to sell territories.

Affordable Senior Care Franchise Opportunity: A Place At Home

Our senior-focused franchise offers various services for seniors who want to age in place, find a living facility when it comes time for extra assistance, and help facilities keep their staff numbers at the required amount. Along with our other home care franchise costs, we keep our royalty fees lower because we believe in supporting our franchisees and helping them grow their businesses. As mentioned above, we lower the rate as you earn more revenue. Experts cite the industry average for royalty fees as 5%, so our top performers are actually paying lower than the industry average.

A Place at Home is committed to helping our franchisees succeed by providing affordable and flexible royalty fees and ongoing support and training. By doing so, we believe we can build a strong network of franchisees passionate about providing quality care to seniors in their communities.

Ready to get started and join our franchising team? Submit a franchise form

Planning to start a non-medical home care business? Learn the steps here and see what it takes to open up your own non-medical home care business here.

Non-Medical vs. Medical Home Care

Before learning how to start a non-medical home care business, let’s understand how it differs from in-home medical services. Medical home care is skilled nursing care and medical services for patients who need medical attention at home. These providers may administer medications and perform wound care, physical therapy, and other medical services. Licensed healthcare professionals such as registered nurses or physical therapists typically perform this care.

On the other hand, non-medical home care assists with activities of daily living such as bathing, dressing, and meal preparation, as well as companionship and transportation services. Trained caregivers don’t need a medical background for this.

Senior in-home care franchise A Place At Home is a lower-investment franchise with high-profit potential. In-home care isn’t your only revenue stream either. You can offer professional care planning, assist clients in finding a senior living alternative, and help assisted living residences, memory care centers, rehabs, and other long-term care communities maintain staffing.

Why Choose Non-Medical Over Medical?

Non-medical home care is one of the fastest-growing sectors because of the aging population in the U.S. According to the U.S. Census Bureau, the number of Americans aged 65 and older is expected to double by 2060, reaching 98.2 million. This aging population prefers to age in place, meaning they want to remain in their homes rather than move to a nursing home or assisted living facility. Non-medical home care allows seniors to receive help with daily activities while still in the comfort of their homes.

Non-medical home care does not require a medical background, which lowers labor costs. In addition, while there are state or local licensing requirements for non-medical home care businesses, they’re typically not subjected to the same strict regulatory requirements as medical home care businesses. Both factors lower the barrier of entry for franchise investors.

Non-medical home care businesses have a broader potential client base than medical home care. Non-medical home care providers can serve not only seniors and individuals with disabilities but also individuals recovering from surgery or illness who may not require skilled medical care.

As a non-medical home care business owner, you can scale and grow your business easily. You can expand services to serve more clients without needing additional medical staff or equipment.

6 Steps on How to Start a Non-Medical Home Care Business

Starting a non-medical home care business requires careful planning and attention to detail, but it can be a rewarding and successful venture with the right approach. By following these steps on how to start a non-medical home care business, you can build a thriving business that provides essential services to those in need.

1. Develop a Business Plan
   Before starting your business, you need to develop a comprehensive business plan. This plan should describe your services, target market, financial projections, marketing strategy, and staffing plan. In addition, a business plan will help you receive funding.
2. Obtain Necessary Licenses and Permits
   Non-medical home care businesses may be subject to licensing requirements at the state or local level. Check with your state’s licensing board to determine what licenses and permits you need to obtain to start your business.
3. Hire and Train Staff
   You must hire and train competent and compassionate staff to deliver high-quality care for your clients. Develop a thorough hiring process and offer ongoing training to your team to ensure they have the skills and knowledge necessary to provide the best possible care.
4. Develop Policies and Procedures
   Developing policies and procedures for your business is essential to ensure consistency and quality of care. Your policies and procedures should cover areas such as client assessment, care planning, record keeping, and employee conduct.
5. Establish Relationships with Referral Sources
   Establishing relationships with referral sources such as hospitals, rehabilitation centers, and doctor’s offices is essential to build your business. It’s key to network and build relationships with them.
6. Market Your Services
   Marketing is essential to building a successful non-medical home care business. Develop a marketing strategy that includes online advertising, direct mail, and networking events to promote your services and build brand awareness.

Let A Place At Home Help You

Don’t let yourself become overwhelmed with those steps on how to start a home health agency. Instead, let A Place At Home help you build a successful business.

By investing in our lower-cost franchise, you’ll receive our proven business model that’s already been successful in other markets. You’ll undergo initial training on all aspects of the business, from marketing to operations, and have access to ongoing support from the A Place At Home team. A Place At Home franchisees benefit from the brand recognition and reputation we’ve established in the industry. This can help you attract clients and build your business more quickly than if you were starting from scratch. We provide you with a suite of technology tools. From a customized website to a client management system, these resources can help you streamline your operations and reach more potential clients. You’ll save money without group purchasing power for supplies and equipment.

Begin your journey to owning a home care franchise by connecting with us and submitting a franchise form. We’ll then be in touch with you shortly.

According to Forbes, 90% of all startups fail. As for those in the healthcare and social assistance field, only about 57% make it past five years. Meanwhile, in the medical technology sector, upwards of 75% of U.S.-based, early-stage medtech companies never find success, according to TTi Health Research & Economics.

Learn the top reasons why healthcare startups fail so you can be prepared for the challenges that lie ahead when running your healthcare business. Get the insights. 

1. Running Out of Cash

Mismanagement of funds or failure to raise enough capital is the most common reason for any business, not just healthcare startups, to fold. A CB Insights study found that 38% of unsuccessful startups ran out of cash or failed to raise new capital. The healthcare industry is especially tough. Managing cash flow is challenging because the sales cycle in healthcare is particularly long.

One area where medical businesses lose funds is putting too much money and effort into pilot programs. Many companies underestimate the amount of effort required to have a successful pilot. You want to put the right amount of resources into the program to gain traction and revenue without going overboard. There’s a fine balance needed.

One way to skip the pilot programs is to invest in a franchise. A Place At Home allows seniors to age safely in their homes. We’ve already gone through the trials and tribulations that come with healthcare startups, so you don’t have to. Instead, you’ll receive our proven blueprint for building your own in-home senior care business.

2. Not Enough Market Demand

In that same CB Insights study, research showed 35% of startups fail because there isn’t enough market demand for their products or services. Although a medical technology company can have multiple potential paths for its product or service, they typically start with the one that the founder or CEO is most experienced in. But, this path might not be where the highest demand is. So, you should perform extensive research and determine which direction provides the best market size, competitive landscape, and highest potential for patient adoption.

3. Product or Service Doesn’t Fit Workflows

All jobs in the healthcare field are essential, making their workflow vital to saving lives and treating patients. You might think your new technology will make their lives easier, lower costs, or improve patient outcomes, but the adoption period might turn them away from using it. Facilities and offices usually have a well-established workflow model; anything that disrupts it could come with pushback.

4. Flawed Business Model

The CB Insights study found that nearly a fifth of all startups failed because of a flawed business model. The most common reasons a business model fails are because their profits and losses don’t add up or its story doesn’t make sense. This basically means that the company built the product or service on incorrect assumptions about the consumer. Or in other words, there’s no real market for the product or service.

5. Regulatory or Legal Issues

The medical field comes with lots of hoops to jump through. Some startups try to skip the regulatory approval process and go directly to the consumer. For some companies, it’s worked. But it leaves you hoping your customers are okay paying out-of-pocket for your health service or product. While the process can seem lengthy and expensive to go through, receiving federal approval, in the end, might help your business thrive.

Healthcare Startups vs. Medical Franchising

Concerned one of these five reasons might be what brings down your new healthcare business? Consider franchising. There are several medical franchising routes, from at-home care to urgent care centers or physical therapy offices. While the initial investment costs are higher than possibly a startup, you know there is already a demand because the brand is thriving in other locations. The franchise provides a proven business model, allowing you to get up and running efficiently. Good franchises will walk you through all the licensing and regulation steps to start a medical business. They already know the ins and outs, so take advantage of it.

Benefits of Homecare Business Vs. Medical Business

Forget the hassle of dealing with insurance companies and stricter regulations of medical businesses. Instead, learn how to start a home health agency like A Place At Home. The overhead costs and startup costs are kept lower for several reasons.

First, you don’t have to hire medical providers like doctors, mid-level practitioners, or nurses. Caregivers provide our clients with exceptional homecare. This factor keeps your staffing costs lower. Then, your professional liability insurance is lower because you’re not providing medical services. Lastly, since you’re not providing physical or occupational therapy to your clients, you’ll need fewer supplies, keeping overhead costs lower. So, you can provide your community with compassionate, senior-focused, and customized in-home services.

Ready to jump into the homecare industry? Submit a franchise form to get started.

Considering joining the growing home care industry? We don’t blame you. Currently, the home care providers market is worth $120 billion in the U.S. That number is only expected to grow as an aging population looks to live in their homes as long as possible.

Federal, state, and local governments heavily regulate the industry. The regulations are to protect you and your patients. So, when starting a home health care business, one of the first things to do is get a home health care license. Here’s a look at the steps involved in how to get a home health care business license.

1. Choose Between Medical vs. Non-Medical

The type of services you provide could change the type of license you need and how you get it. For example, to offer medical services like medication administration, you’ll need to hire medical professionals before you begin the process of licensing. However, this comes with more liability for your business.

You could stick to non-medical services and provide companionship or other daily activity assistance. Some states will still require skilled medical professionals to be hired to meet the requirements for a license for non-medical home care agencies.

2. Find Out Your State Requirements

Whether you’re looking to offer medical services or operate as a non-medical home care provider, there are several steps to take before accepting clients. First, research what your state requires. Not all states require licenses for home care. CareAcademy finds three that don’t: Iowa, Massachusetts, and Michigan You can typically find these requirements on the Secretary of State’s website.

Depending on your state’s requirements, you’ll need to attend training, and state officials or an accrediting body will perform inspections. The process of getting your business license can take three to 18 months, depending on your state. Some states will provide you with a provisional license during the process. States with an increase in applications for home care licenses might take longer.

There are 18 states that require an inspection visit before receiving a provisional license for non-medical home care or home health care companies. Then, after that first inspection, follow-up inspections occur every so many years, again depending on the state.

More than a dozen states require home health care agencies to file a Certificate of Need before applying for a business license. This certificate helps state authorities monitor the supply of providers in the health care market. It evaluates the local demand before allowing a new facility or agency to open. Apply for your certificate of need first, before your license, just in case you need to reconsider your territory.

A benefit to owning an A Place At Home franchise is our market research. We know what areas and territories a home care agency can thrive in. All our base franchise unit territories have 40,000 qualified senior residents.

3. Create a Business Plan

For some license registrations, you’ll include a business plan. Generally, it’s good to have one completed before you finalize your business setup anyway. Your business plan will outline core business activities and how you plan to achieve goals. These documents include an executive summary, products, and services offered, a market analysis, marketing strategy, financial planning, financial projections, and a budget.

4. Register Your Business With the State

Before you move on to getting your license for your non-medical home care agency, register with your state through the Secretary of State and the State Department of Revenue Services. Typically, this step is as easy as filing your business name with the state and local governments.

5. Set Up an Office

Secure an office space for your business. You’ll need locked cabinets to store client and company records. In addition, most license applications will require you to include a copy of your lease.

Only a small executive suite is necessary when you become an A Place At Home franchise owner. It allows you to perform private, professional interviews with your care staff members.

6. Follow State Training Requirements

Study the mandated training for you and your employees. The requirements vary by state. Ensure it’s all completed fully before applying for a home health care license. Most states require everyone have CPR/AED training, even if you’re a non-medical home care agency. Caregivers have specific training requirements to follow.

7. Apply For Your Home Health Care License

Finally! Once you’ve completed all the previous steps, you have made it to the end of our guide on how to get your home health care business license. You can submit your license application. Fill out all the necessary forms and provide the proper materials to your state to receive your licensing.

FAQs on How to Get a Home Health Care Business License

Still have questions after reading through the guide? Here are some frequently asked questions surrounding the licensure process:

• How much will it cost?
  Like most other things, this varies by state. Fees can either be a flat rate or based on the number of employees. For example, a Texas home and community support services agency license costs $2,625.

• How often do I have to renew?
  This is another state-by-state regulation, but it can also depend on how much you want to pay to extend your license. States typically require a renewal annually or every two or three years. The more you pay at one time, the longer the license period is.

• Do I still apply for a license if I buy into a franchise?
  While you’re paying to join a trusted brand, you still have to follow the rules and regulations of your state for home care agencies. So, yes, you still have to go through the steps of how to get a home health care business license and pay for it, even when you’re affiliated with a franchise system.

Let A Place At Home Guide You Through the Process

Instead of worrying about navigating how to get a home health care business license by yourself, let us help you at A Place At Home. By becoming an owner with us, you’ll receive not only licensure guidance but also a step-by-step process on how to start a home health agency. You’ll follow our five-step CARE track to gain the tools you’ll need for success. You can capitalize on multiple revenue streams — all while being backed by a reputable national brand that people recognize. Those opportunities include care coordination, finding senior living alternatives, and staffing services.

Don’t sweat the small steps. Let A Place At Home lead you to open your own home care agency. Submit a franchise form to get started.

The demand for home care has skyrocketed since the pandemic, with no signs of slowing down. See current home care industry trends taking on the post-pandemic world.

1. Growing Demand For Home Health Care

More seniors require some long-term care. The Economic Policy Institute (EPI) finds that 70% of people who reach 65 years of age will need long-term care. Furthermore, the number of people in that age group will be 44% greater, or 25 million people, by 2040.

On top of that, people are looking to stay in their homes for as long as possible. AARP notes that more than 80% of adults prefer to live in their homes instead of nursing homes or other institutional settings. So that’s making families turn to home health care agencies to care for their aging loved ones. Dustin Distefano, CEO of home care franchise A Place At Home, talked with CareAcademy about this issue. He’s seeing assisted living and memory care communities that used to have waiting lists are now at 70% to 80% occupancy, while home care agencies have waiting lists.

2. Caregiver Shortage to Continue

The number of caregivers in the U.S. doesn’t meet the growing demand for home health care services. In June, American Health Care Association (AHCA) and its National Center for Assisted Living (NCAL) found that 73% of nursing homes are concerned they’ll have to close due to staffing issues. That same report shows that more than half of nursing homes are limiting the number of residents due to staffing woes. This is leading families to turn to home health care agencies for help.

Unfortunately, experts say the lack of caregivers will continue as a home care industry trend over the next year. According to EPI, 1 million additional home health care workers are needed by 2029 to meet the growing demand for home health care.

Reports show that pay and training are the primary areas that employers should address to encourage more people to enter the field. In 2021, the Bureau of Labor Statistics reported that the median annual wage for home health aides was $29,430 a year. That comes to $14.14 an hour if the aides work 40-hour weeks. Workers say they want more training opportunities to earn a better wage and perform more specialized skills to help their clients.

It’s essential for business owners in this industry to address this trend and what their employees are asking for if they want to retain staff.

3. Need for Companionship Care Rising

More than one-third of adults at least 45 years or older feel lonely, according to a National Academies of Sciences, Engineering, and Medicine (NASEM) report. Loneliness comes with several health risks, including dementia and an increased risk of heart disease or stroke. It’s also associated with higher depression, anxiety, and suicide rates. Hence, many families are turning to companionship care to ensure their loved ones don’t undergo any of these hardships.

Some home health care franchises, including A Place At Home, have already noticed this trend. Our in-home non-medical services include companion care. That can look like enjoying the senior’s favorite hobbies, having stimulating conversations, socializing, opening and sorting mail, and teaching seniors to use email and social media.

4. Use of Technology to Monitor Patients

Another trend that could keep you competitive in the home care industry is the use of technology. The pandemic showed us we could stay connected without meeting face to face, including through telehealth in the medical world. The downfall with telehealth appointments is that they don’t allow medical providers to collect vital signs like blood pressure and oxygen levels. New technology like remote patient monitoring (RPM) can solve this problem. It works by having patients collect their vital signs and submitting them so medical professionals can analyze the data. They would typically do this throughout the day.

This technology is expected to help lower the costs of medical care for seniors by reducing their hospitalizations. About 85% of older Americans suffer from at least one chronic health issue like diabetes, asthma, heart disease, and COPD. Through monitoring vitals with RPM, medical providers can help manage chronic illnesses from afar and help them avoid any costly downturns. In addition, medical providers will turn to home health caregivers to assist with this monitoring.

Take On These Trends With A Place At Home

As you can see, the home care industry is trending upward. Get a head start in it by joining a franchise like A Place At Home. You’ll help meet the growing demands of this industry and provide much-needed care to the senior community when you become a franchise owner. We offer multiple revenue stream opportunities, including helping staff agencies in your community solve labor shortages through staffing services. Take the next steps of owning a home care business by submitting a franchise form.