Currently, the senior population is growing at a surprising rate, which offers many benefits to individual franchise owners. However, this trend also offers benefits on a larger scale, impacting the industry as a whole. In this post, we will discuss some of the current and predicted trends for the home care market along with the potential reward that it offers franchises.
As the number of seniors continues to grow, the home care industry experiences unique growth that other industries just don’t offer. While increases in population provide many industries, like food or home services, the opportunity to grow as well, no other industry boasts the same velocity of growth as the senior care market. In fact, some markets are shrinking. In fact, as the birth rate decreases, some industries, like child care, may be facing a decline as well.
Why does the senior population continue to grow? Here are a few factors that result in the unique boom in the home care industry.
- Longer life expectancy
- Better healthcare
- Changes in risk factors
As this population grows, the home care industry as a whole gains more potential business — and at a much faster rate than other industries are gaining potential business. The home care industry offers franchisors and franchisees a chance to truly make a difference in their community and make a name for themselves in the process.
While the number of elderly citizens is rising in the United States, this trend isn’t unique to our country. The entire world’s senior population is continuing to grow at a staggering rate. Across the globe, families are experiencing the same issues of caring for a loved one at home. They struggle to balance work, family, and caregiving. Therefore, the home care industry is rising in many countries to meet this demand of a growing senior population.
But what does that mean for the home care franchises?
Because this growth in senior population isn’t unique to the United States, franchises have the opportunity to grow into additional markets outside of our borders. With the entire world as an available territory, there’s plenty of room for growth in the industry if you’re willing and able to spread your brand abroad.
Preference to Age in Place
Many seniors today would prefer to age in the comfort of their own home rather than move to an assisted living facility or nursing home. However, the option to remain at home may not have always been an option. Perhaps seniors didn’t have access to the necessary funds, lacked availability of a trusted home care provided, or weren’t aware of another option.
As the preference to age in place becomes more common, home care providers will be the first choice for family members and aging seniors. Additionally, a trusted home care provider is often just a fraction of the cost of a live-in facility. It also provides constant one-on-one care and attention, which is not available in most facilities. As the industry grows and gains more visibility, home care will become the preference for many seniors and their family members.
Low Barriers to Entry
In addition to the other trends mentioned, low barriers to entry is another factor that is attractive to home care businesses. A home care business has very low overhead because it only requires a small office and a few computers. Because caregivers perform care in the client’s home, it’s not necessary to have a large space or purchase a lot of equipment or furniture.
A franchisee simply needs to have the proper technology to manage caregiver schedules and keep track of client information. At Caring Senior Service, we make this step even easier by offering our proprietary Tendio software. Tendio is a cloud-based platform that stores digital files, helps franchise owners manage caregiver schedules, and even contains direct communication features.
Long-Term Care Insurance
Long-term care insurance is something that didn’t exist a few decades ago. This type of insurance covers long-term home care costs to help seniors with chronic illnesses maintain their quality of life throughout the later years. The first long-term care insurance policies were created in the 1970s, but it didn’t become a common offering from insurers until the 1990s. Even today, many seniors do not have a long-term care insurance policy.
Many health insurance policies include some coverage for short-term home health costs, which may include visits from nurses. However, these visits only last for a few hours at most, and these healthcare providers aren’t able to provide round-the-clock care. That’s where long-term care comes into play. This type of insurance allows seniors to have access to home care providers for an extended period of time. These professionals can assist with personal care, meal preparation, and other tasks of daily living.
Today, some whole life insurance policies offer long-term care options so seniors can draw from their whole life insurance when they need to. Traditional, stand-alone long-term care policies are also still available, although less popular. With long-term care being covered in more insurance policies, there is a higher potential for home care companies to gain clients with insurance providers.
With these trends shaping the future of the home care industry, we expect home franchises to experience unparalleled growth in the coming years — in the United States and abroad. If you are interested in learning more about the potential rewards in the home care industry, we would love to share our insight with you. Caring Senior Service has 30 years of experience in the industry and a proven franchise model. Reach out to our team today to discover what rewards a home care franchise can offer you.