In 2011, the Baby Boom generation, people born from 1946 to 1964, began to turn age 65. As the large Baby Boom cohort ages, the United States will experience rapid growth in both the number aged 65 and older and their share of the total population. The social and economic implications of the aging of the U.S. population will be of significant interest to policy makers, the private sector, and individuals. According to the 2013 Census, there are currently 45 million Americans over age 65 and another person turns 65 every seven seconds in the United States. In 2030, when all Baby Boomers will have already passed age 65, the older dependency ratio is expected to be 37, which translates into fewer than 3 people of working age (20 to 64) to support every older person!
United States is not the only country experiencing population aging. By the end of this decade (2020), the world will experience a shift in population demographics that has never occurred in human history. Adults over 65 will outnumber children under the age of five. And life expectancy will continue to climb to record highs for both men and women. Everyone will be impacted by this phenomenon in some way, with implications being greater than we can possibly imagine. This “aging of America” will also have an impact on our communities, our state resources, our healthcare system, and our national economy.
In such a circumstance, senior care is a hot niche, with relatively low investment and high revenue. The number of competitors is rising, with many new brands founded in the past few years. But as the market is growing, there is still enough space for these competitors to enter and grab their share from this booming market.
- Lower investment. While it can cost $500,000 or more to open a fast-food franchise, most home-healthcare franchises cost $150,000 or less to start up, a feature that attracted many current franchisees to invest in multiple territories. The investment is primarily for hiring marketing, recruiting and training staff, and for office space (if any).
- High revenue. From that relatively low investment, home-health franchises can drive a lot of volume, especially after the first year’s ramp-up making connections with key referrers such as elder-law attorneys and social workers. Territories are usually large. Industry research firm Home Care Pulse found median franchise home-health revenue was nearly $2 million. What’s more, franchise owners brought in substantially more than independent operators, Home Care found, giving their businesses a resource advantage over the competition.
- Growing demand. Demand is forecast to grow sharply, thanks to the aging of baby boomers. The number of people 65 and over is estimated to be close to 85 million in the U.S. and around 2 billion in the world by 2050, the UN estimates.
If you want to enter senior service franchise industry, the type of service that you want to provide your customers also is a key in selecting a franchise. Some of the franchisors provide one or a mixture of services to expand on their franchisees revenue streams. This services are namely medical and non-medical home care, staffing, concierge services, placement services, transportation and relocation services. Here is a short description for each of these service:
Home care and home health-care services
By 2020, nearly 14 million people in the United States will be over the age of 85, and 84 percent of them will want to continue living at home. To do that, more than half will need assistance with daily living activities.
Seniors and family members of older relatives are looking at alternatives to assisted living and nursing homes. The best option for most is home care or home health care, where a professional caregiver goes to the home to personally look after a loved one. This may include doing laundry, picking up around the house, reading the newspaper out loud and preparing meals. Most important, this service includes companionship–someone who adds conversation and friendship to the life of an elderly person who is homebound, physically impaired, has difficulty getting around or just may be lonely.
Depending on the level of care the client needs, a licensed medical professional may be required to administer medications, offer rehabilitative therapy or provide other skilled nursing care.
Senior day-care center
Today’s baby boomers and older Gen Xers face a dual challenge: They’re caring for their own children, and sometimes grandchildren, as well as caring for parents. Many people in this sandwich generation desperately need the break a senior adult day-care business provides. The burden of caring for older family members can be overwhelming, and a place where these seniors can socialize and participate in activities in a safe, supervised environment is a welcome option for stressed caregivers.
Adult day-care centers range from small, individually owned operations that offer all the comforts of a close-knit family home to commercially based businesses that include a wide range of services.
There are two types of senior adult day-care centers: social and medical. Currently, informal social centers are more prevalent. They usually cater to seniors who have a higher level of functioning, although some clients may be wheelchair-bound, incontinent or need limited assistance with daily activities. The focus in this type of setting is more on activities, social interaction and meals. A medical day-care facility provides a more complex level of care and has a registered nurse on staff who can perform tube feedings, administer medications and oxygen, and provide other related care.
Typically, these programs operate during the same standard business hours of a traditional child day-care center, which is usually from 8 a.m. to 6 p.m.
Concierge service
In the corporate world, concierges are often referred to as personal assistance. They perform a wide range of services for clients. A concierge who targets seniors performs many similar functions with a twist: Their mission is to enrich the lives of their elderly clients by delivering services that allow those clients to maintain an independent, dignified lifestyle as long as possible.
Seniors turn to concierges for things they can’t or don’t want to do for themselves. Some of the concierge services you may provide include:
- Companion/support
- Administrative assistance
- Organization of closets, cabinets, basement, attic, garage or filing system
- Errand and courier service
- Mail delivery and pickup (if mailbox isn’t at residence)
- Grocery shopping
- Personal shopping
- Fitness training
- Computer training and support
- Daily checkups
- Reminder services
- Cleaning services
- Pet care services
- Meal preparation
- Placement services
Transportation and Relocation service
Nondriving seniors often rely on family members or neighbors for transportation, but these resources aren’t always available. Many community transportation systems, such as public and paratransit (specialized transportation service for persons who are unable to use regular public transportation due to a disability or health-related condition), are not considered senior friendly because many seniors can’t walk to a bus stop, can’t easily get into or out of a van, or can’t afford a taxi. Seniors need reliable, comfortable transportation with sensitive, responsible drivers who will wait for them at the doctor’s office, escort them when shopping and running errands, and most important, be where they’re supposed to be on time so the client is not left waiting.
Many people in the rapidly growing 70-and-over population segment are selling their homes in favor of smaller houses or condos, either in traditional neighborhoods or retirement communities. This is a perfect time to cater to the relocation needs market. Moving is always stressful, and it can be especially traumatic for someone who is leaving a home they’ve been in for decades that is full of precious memories. Adding to the challenge is the fact that families are more spread out geographically and not always available to help with the moving process. Not only is the packing and cleaning process physically demanding, it also takes an emotional toll. A senior relocation consultant can provide an element of compassionate objectivity as decisions are made about what to keep, give away, sell or toss.
As a senior relocation specialist, you can offer a wide range of services. It’s typical to provide a total turnkey package, which means you’ll orchestrate every aspect of the move, including:
- Assistance with selling the current home
- Assistance with finding a new residence
- Assistance with selecting a moving company
- Sorting and downsizing
- Estate sales
- Coordinating movers, utilities, cleaning and other tasks
- Packing and unpacking
Please take a look at different senior care franchises here. Contact us at (949) 228-6639 for free consultation or to get more information about senior care franchises.
