Why 2018 Is the Right Time to Start A Home Health Agency
Why 2018 Is the Right Time to Start A Home Health Agency–If you’ve been thinking about starting a home health agency, 2018 may be the perfect year to do so. it can be a really stressful decision to leave the security of a “paycheck” and dive into your own business, but the home healthcare franchise is the safest this inspector in franchising. although it is not a widely published statistic, the home health agency franchise sector has a 95% success rate. So what makes 2018 a good year to start a home healthcare agency franchise?
let’s take a look at notable trends that will benefit aspiring entrepreneurs looking to start a business in 2018:
Reason number one, The Impact of the 2018 Tax Reform on Small Businesses
In December, President Trump signed into effect the largest tax reform in 30 years. While the new bill offers modest relief to most individual taxpayers, it also reduces the tax burden on small businesses across the board, saving them a significant chunk of change. Most notably, the new tax legislation reduces the corporate tax rate from 35 percent down to 21 percent. C corporations are the only business entity that will benefit from this reduction since they are required to pay corporate taxes. However, pass-through entities (which make up the majority of small businesses in the U.S. and include sole proprietors, partnerships and S corporations) will also see a 20 percent deduction in taxes for pass-through income.
In years’ past, many small businesses have been wary to choose C corporations due to the high corporate tax rate, opting instead for a pass-through entity that is not required to pay taxes at the corporate level. However, with the reduced corporate rate, the difference between pass-through and non-pass-through entities has become negligible, which will allow Home Health Agency owners to choose the entity that makes the most sense for them, regardless of taxation.
reason number two, A Strengthening Economy
Economists are also predicting growth in 2018 of up to 3 percent, a potential 43 percent increase since recovery from the last recession in 2010. The International Monetary Fund said it projects the U.S. economy to grow 2.7 percent in 2018, while Wells Fargo economists were even more optimistic at 3 percent. This beats 2017’s 2.3 percent growth pace and the modest 2.1 percent growth seen during the recovery from the recession. Both groups noted the reduction in 2018 corporate tax rates should stimulate business investments and growth, create more jobs and spur more purchases of U.S. products.
Consumer confidence was also at record highs at the end of the 2017, and experts predict that confidence to remain strong in 2018, citing the solid job market, stock market increases and tax reform as the main reasons behind the spike. What’s more, the unemployment rate in America is at its lowest level since 2000, and job openings are plentiful. Combined, it’s a business owners dream come true as they can take advantage of these strong trends to jumpstart their growth.
Reason number 3, Business Owners’ Confidence Levels Remain High
According to the 2018 State of Small Business survey, which reports on current and future business trends, current Home Health Agency owners are not only confident in the state of small business, but they’re also happy with their lives as entrepreneurs. Sixty-three percent of small business owners ranked their confidence in the state of small business in today’s political climate at a seven or above on a scale of 1-10. Meanwhile, their level of happiness was an average of eight out of 10, an increase from 2017’s average of 7.52. Furthermore, almost 40 percent of respondents in 2018 rated their happiness as a 10 out of 10. While business ownership can certainly have its challenges, the independence and financial freedom it offers are proving worth it.
So in conclusion, investing and a home healthcare agency franchise has a 95% success rate, compared to only 50% for non-franchise agency startup. there is a perfect storm of tax reform strengthening the economy and small business owner confidence providing a climate making 2018 most perfect year in the last decade the start a business.