We’ve all heard the continued praise for senior care and the market segment that seems to grow with no limit to it’s potential. It makes sense after all with the explosive baby boomer population entering their late 60’s and 70’s who will all be needing some form of care in the next 10 years. With longer lifespans, that means a customer for 10,20 or 30 years and an infrastructure that is racing to keep up with the coming demand.
What does the market look like today?
To put simply, the market is big and getting bigger. Over $13 billion in annual revenues to be exact with a significant growth percentage in excess of 6% per year. (http://www.ibisworld.com/industry/in-home-senior-care-franchises.html) The Franchise industry, as it typically does, is a great litmus test for where an industry segment is headed and what is happening in that particular market category. One not need look any further than the in-home senior care market segment to realize that there are a large number of businesses that have spawned out of this growing market segment:
The market shifted in the last ten years to a significant focus on in-home care versus care provided in a licensed facility. This shift was caused by several factors, one that the typical customer who could still be at home, typically was choosing to stay at home and receive care that came to their house as opposed to going to a facility. Another factor driving this transition was the low capital barrier required to open an in-home senior care business as opposed to a fully licensed senior care facility operated from a fixed location. This lower cost of entry gave rise to hundreds and thousands of “mom and pop” in home senior care service providers across the country in addition to successful franchise networks.
Some favorites in the space:
In the past several years there has been a renewed growth in the market to fixed location care facilities which has been driven by several factors. First, the labor market is tight, it is difficult to find good caregivers and fixed location facilities can typically get more from their staff than an in-home care business model. Second, the senior home concept has changed drastically. Large fixed location facilities now have lavish, high-end décor and amenities that would make the Ritz Carlton proud. There also is a segment in senior care franchising that has come to rise with this return to fixed location facilities, a smaller, more cozy senior facility. The Haven Franchise is a good example of this:
Regardless of your choice, the senior market continues to be filled with opportunity and seems to be full of growth opportunities for the coming years. Choose the model that makes the most sense for you and your financial scenario and make sure you are comfortable and driven to take care of people.
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