Read about the Senior Care Franchise Industry and Franchise Business News
Franchise Hiring Up 20%
by Don Sniegowski of Blue MauMau
ROSELAND, NJ— Private-sector jobs in American franchised establishments increased by 20,000 in January of 2016, according to the ADP National Franchise Report. Those figures show January as being somewhat weaker in franchise hiring compared to December of last year. However, over the past twelve months franchise establishments have hired at double the pace of small businesses, and over double the rate compared to all U.S. nonfarm private employment. Total U.S. nonfarm private sector employment was up a robust 205,000 for the month.
Despite snowstorms pushing auto sales down by 0.4 percent in January compared to a year before, auto and parts dealers’ employment numbers were up for the month.
“Franchise employment growth, though not as strong as the previous month, remained at double the pace of the labor market overall for the past twelve months,” said Ahu Yildirmaz, vice president and head of the ADP Research Institute. “Auto Parts and Dealers and Restaurants, two segments that help signal consumer spending trends, added the most jobs.”
As far as total year-over-year growth rate, personal service is the fastest growing sector for hiring, growing 10 percent. At the bottom of the list are leisure franchises, such as fitness centers, bowling alleys and other recreational centers, which shrank by 4 percent in employees hired over the past twelve months. For the month of January, business services and education, which includes learning centers, dropped the most at -0.6 and -0.4 percent compared to the month before.
“Job growth remains strong despite the turmoil in the global economy and financial markets,” said Mark Zandi, chief economist of Moody’s Analytics, about the overall economy. “Manufacturers and energy companies are reducing payrolls, but job gains across all other industries remain robust. The U.S. economy remains on track to return to full employment by mid-year.”Read More
Home Care Is … Or Is It Home Health?
There is a lot of jargon out there when it comes to health and well-being. Until someone is giving or receiving a particular service, they may not know the subtle ways in which similar-sounding services actually differ.
Home care and home health care are often mistaken for one another, but are in fact distinctly different in the types of services provided and how they are paid for by clients or patients. To make things a little more complicated, these services can overlap and complement one another so they are not mutually exclusive.
What Is Home Care?
The need for home care often arises when an individual struggles with completing Activities of Daily Living (ADLs) such as daily hygiene, light housekeeping, meal preparation and more or Instrumental Activities of Daily Living (IADLs) such as grocery shopping, paying bills, transportation and more. This care is categorized as custodial care or personal care or companion care.
Home care is typically delivered by caregivers, who ideally have received training so that they are able to deliver meaningful, safe and quality care to their clients. Home care is sometimes referred to as “unskilled” care because an advanced, clinical degree is not needed in order to provide companion care and personal care.
Who Needs Home Care?
A person living with a chronic condition or degenerative disorder such as MS, Parkinson’s or COPD may need help with ADLs or IADLs, or someone who, due to age, may need additional help at home. People living with developmental disabilities may also need assistance in the home. These groups of people may also benefit from the companionship of an in home caregiver who visits on a regular basis to go for a walk, play a game, or help run an errand.
Home care services can be delivered in a private single-family home or in an assisted-living facility which may not have enough staff to provide optimal one-on-one care.
Who or What Pays for Home Care?
You may have heard that home care costs are not covered by insurance, but this is only partly true. Home care is covered by some long-term care insurance policies, but is not covered by health insurance. Low-income seniors on Medicaid may qualify for home care services too. The majority of people pay for home care costs out of pocket, or what is called “private pay.”
What is Home Health Care?
A health care provider prescribes home health care services to be delivered by a registered nurse (RN), occupational therapist (OT) or physical therapist (PT) in order to extend services in the home after a hospitalization.
A PT, OT or RN may come to the home of a patient to do medical tests, wound care, manage medication prescriptions, physical therapy exercises and more. There are times when these appointments take place at a medical office and that is when an in home caregiver can assist with transportation. Other times, an in home caregiver may be needed to help a client bathe and dress to be ready for their home health care appointment as those services are not included with a PT, OT or RN.
Who Needs Home Health Care?
After a surgery or hospitalization, a patient may be discharged and allowed to return home but may not be ready to live independently again. Physical therapy or occupational therapy may help them get back on their feet, so to speak.
Who or What Pays for Home Health Care?
Home health care is covered by medical insurance, including Medicare and Medicaid. It is an option to pay privately for these services, but that is rare since they are generally covered through insurance. Note that like any prescription there are limits to how frequent and how long care can be provided, and a doctor will need to review current progress and condition of a patient to determine if additional home health care is necessary.
In many instances families will create a long-term care plan that includes a variety of services including family caregivers, home health care, and private pay home care so that their loved ones get the most complete care possible.
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3 Ways to Pinpoint a Successful Franchise Model
With the franchise market growing by the day, the options for franchisees and franchisors are numerous, and industries from fast food to beauty to childcare are taking advantage of the franchise model. In order for a franchisee to choose the best franchise for them, the brand’s success and profitability should most certainly be considered. Here are a few tips to keep in mind to help you pinpoint an effective model.
A franchise that takes the time to invest in its franchisees is going to be much more successful than one that does not. The training period is a perfect opportunity for the franchisor to impart knowledge that’s been hard-won over years of business ownership. This is, of course, the beauty of franchising: there is no need for the franchisee to go through years of trial and error, because the franchisor already has. The fact that the business owner is now franchising eludes to a certain amount of success in this area. Taking advantage of this invaluable experience during the education period is a sure-fire step in the direction of success.
Franchises, by definition, are multiple locations and branches of the same business. Sometimes these are spread across the country, or even the world. It can be difficult to maintain a focused brand across such geographic and cultural distance, but it’s possible. Think of McDonald’s famous golden arches. They are completely recognizable, and identical, regardless of the country or continent. This kind of brand power leads to success in marketing, as well as showing a strong, unified front to consumers.
Quality Business Model
A successful franchise is dependent on a quality business model. It must take the success of the original business and find ways to replicate it in a different market with different owners. The model should be scalable, able to fit ten franchise locations or a thousand. Additionally, a strong business model will have guidelines in place for determining the number of franchisee locations a particular geographic area can support. Subway is a fantastic example of a franchise that has found and maintains the perfect market saturation rate
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It’s no surprise that the home health care industry is expected to grow through 2020 and beyond, especially given the fact that the Baby Boomer generation has started reaching retirement age. However, there are a number of different aspects to the industry that will contribute to continued strong growth, helping it become the leading job creator through 2020.
Technology is a major component of the in home care industry, even though it’s only recently being taken advantage of. More tech companies have been focused on researching the various needs of doctors, visiting nurses, home care aides, and even seniors and disabled adults who require some type of support at home. These tech companies are employing the benefits of mobile technology in creating apps and other devices that help keep people safe in the comfort of their homes while at the same time improving communication and quality of care overall.
These emerging technologies are contributing to this current and expected continued growth for an industry that will see a record number of seniors relying on these services in the future.
According to the press release, Home Healthcare Market Will Reach $355.3 Billion, Growing At An Estimated CAGR Of 11.7% Till 2020: Grand View Research, Inc. published by MedGadget:
“Increasing adoption of telehealth and other emerging healthcare technologies are expected to drive market growth over the forecast period. Home healthcare is rapidly getting adopted as a cost effective alternative to healthcare establishment based therapy and therefore, growing geriatric population base and prevalence of chronic conditions requiring long term care is also expected to have a positive impact on growth. Presence of untapped potential in emerging markets such as India, Brazil and China and increasing health awareness are expected to serve this market as future growth opportunities.”
Increasing numbers of seniors are preferring to remain within the comfort of their own homes as opposed to moving into another living environment, which can include family members, assisted living communities, and nursing homes.
Increased demands for proper health care at home and patient monitoring for doctors has been driving this technological innovation and as the cost of these devices and apps drops, the demand is expected to rise, thus driving an even stronger industry. On top of these factors, as hospital face increased pressure to reduce readmission rates, having access to better communicative devices and information for patients will help achieve those goals.
The global home health care marketplace continues to increase, with North America accounting for more than 40 percent of all revenue generated.
Handyman Franchises Expecting A Great 2016
Hiring Care Givers in the Senior Care Industry
Ask any Senior Care Franchise owner what the secret to the business is and you will get one answer…..the caregivers!
Staffing is a big concern in any business, and it is certainly one in home care. As new home care franchise owners go out into the community to let people know they are open for business and hoping to sign on new clients, they also need to have trained caregivers on hand to work with those clients.
From one perspective, it’s exciting to read the statistics on the number of people who are aging in place and living longer, but who still need some degree of assistance with daily activities.
The United States Department of Health and Human Services’ Administration on Aging found that in 2013, there were 44.7 million people age 65 or older in the country, making up 14.1% of the population; by 2060 they project that figure to more than double to 98 million or 21.7% of the U.S. population. However, it’s like a bar graph with that demographic heading straight up and a question mark below it for the number of capable caregivers to meet the demand.
In addition to the elderly, many people of all ages require assistance to remain at home, including people recovering from surgery, living with a chronic condition such as MS or Parkinson’s, and those who are physically or developmentally disabled. The future demand for in home caregivers is evident in the Bureau of Labor Statistics estimation that they are one of the fastest growing professions in the U.S.
Learning more about people who choose to work in the caregiving profession including their training, professional and personal backgrounds, and why they do what they do, can go a long way toward relieving concerns about staffing a home care business.
Donna Barr, 59, got her degree in early childhood education before becoming the owner of a preschool in Connecticut.
“I just adore helping people and helping children,” she says. Ms. Barr has been a caregiver with Senior Care Franchise serving Western Washington state for the past three years of her whole 25-year caregiving career.
“I’ve also worked with a few elderly clients,” she says. “I like to make things easier for them, to get to know them and understand them.”
When it comes to working with young children, Ms. Barr is passionate. “I like it when I win over the parents’ confidence,” she explains. “At the end of the day, I can share cute stories about what their child did.”
Yes, caregivers can and need to be trained, but for many there is an innate desire to help others that enhances their skills. Jeannet Gutierrez, 58, is the mother of two grown children and a full-time caregiver for Senior Care Franchise in Washington.
“When I came to America from Peru, being a caregiver made me feel like I was helping my Mom again,” Ms. Gutierrez says. “People are so lonely sometimes.” In Peru, Ms. Gutierrez worked in her mother’s restaurant and as a secretary for a computer business, but when she came to the United States, she went to school and got a nursing assistant certificate. Now she takes pride in hearing that the families of her clients are happy with her care.
“I have worked with many hospice patients,” she says. “I feel very helpful when I talk to the family and explain how they need to still show their love.”
Ms. Gutierrez is about to celebrate nine years as a professional caregiver. These two women are just a small sample of the many people who seek out work to serve others—children, elders, or infirm—in the home care industry.
Visit the Top 10 Senior Care Franchises website for the latest information on the most profitable senior care franchises in the industry.
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The New Senior Care Franchise Owner
But many of them will not be retired in the traditional sense. They’ll be working, according to a 2014 Merrill Lynch Retirement Study that spotlights the “new retirement workscape.” The report concludes that “in the near future, it will become increasingly unusual for retirees not to work.” Driving forces cited in the study include increasing life expectancy, elimination of pensions, economic uncertainy and re-visioning of later life towards purpose and social engagement.
Couple this with the stark reality that 22 percent of boomers have less than $100,000 of retirement savings — and half of those have less than $50,000. It’s no wonder that 62 percent of younger boomers (ages 51 to 65) expect employment to be a source of income in their retirement years.
Boomers are responding to the challenge by starting their own businesses in record numbers. According to the Kauffman Index of Entrepreneurial Activity, 23.4 percent of new entrepreneurs in 2013 were aged 55 to 64. Why the interest in entrepreneurship? When older workers are downsized, it can take nearly twice as long for them to find new jobs, so it makes sense to many boomers to start their own companies. Other boomers choose entrepreneurship as an encore career in order to pursue a passion, work on their own terms and continue to create wealth for themselves and their families.
Bohnne Jones of Nashville, Tennessee, fits both categories. After 31 years in health care, she was downsized five times between 2002 and 2007 — until she turned to something completely different. “I was looking to own my own business and work pursuing my passion for design, fabrics and color.” Jones found her answer in the Decorating Den Interiors franchise that she has owned in Nashville for the last eight years.
She’s not alone. Many baby boomers have embraced franchising as the chance to start a business without having to build it from scratch. The U.S. Small Business Administration, “Franchising can be a great alternative if you want to have some guidance in the startup phase of the business.” Jones agrees. “For me, it was an ideal situation. I chose to move into an industry that was not at all where my experience lay. I interviewed existing franchise owners, as well as people who had left Decorating Den. They all said the same thing: Follow the system and you will do well.”
The advantages of buying a franchise include built-in name recognition, proven business models and operational procedures and a wealth of support from the franchisor in locating, supplying and marketing the business. Jones used her own retirement assets to buy her franchise just before the onset of the Great Recession, and the educational materials and low-cost marketing ideas provided by Decorating Den helped her weather the storm. She also values the community that franchising creates. “You can get support from other owners who have experienced the same things you have, and you can get some great advice,” she says.
Although all franchises require an initial investment, those worried about lack of sufficient savings can still find franchises that don’t necessarily require large upfront payments or high net worth. Low-cost franchise options include commercial and residential cleaning services, printing and promotional products, tax preparation and a variety of services for children or seniors.
Small Business Administration loans may also offer a source of financing. And buying an existing franchise from a current owner, as opposed to building a new franchise location from the ground up, can give an entrepreneur more certainty when making a business investment. As with any undertaking, do your research and consult a trusted financial advisor to see if franchising makes sense for you.
Franchising can help baby boomers match their interests, their entrepreneurial spirit and their specific financial situation to a business they can build on — with help and guidance from the franchisor, franchise associations and their fellow franchisees. Says Bohnne Jones, “I’ve had eight years of employment without the worry of yet another round of downsizing. My business is strong, and I feel that I could, in a few years, step back and allow the business to take care of me. Then I can downsize myself!”Read More
Doug Dix is the owner of Homewatch CareGivers serving Cedar Rapids, Iowa. He opened his business in 2005 and shared his thoughts on how the business has changed in that time, what he has learned since opening his doors, and what has made it all worthwhile.
Q: How is a day in your business different today than it was in your first year in business? Well, my first day I walked into this office—I still have the same office—and I had zero clients and zero employees and I sat down in a chair and leaned back and thought, “Now what do I do?” Fast forward 10 years and there isn’t time to sit back in the chair and wonder. Just this past Sunday, I got a call from a caregiver at 9 p.m. who said she had fallen on the ice and was going to the hospital. To avoid any delays in this clients’ care, I ended up caring for the client myself. In my first year, I built my business to a healthy monthly run rate—but in a matter of a couple of weeks I lost about half of it. Then, I was able to add more clients and climb back up. Today I have about 55 clients and 40 employees. I have two caregivers that have been with me the whole 10 years and a few more who have been with me for seven or eight years. Probably the biggest thing I’ve done for my employees, my caregivers, is to pay them overtime and I’ve always done that. I also give them a week’s paid vacation and just treat them as honestly and fairly as I can.
Q: What would you do differently in your business knowing what you know after 10 years? This business is more competitive than it was 10 years ago. I’ve made probably every mistake you can, but I’ve gotten more relaxed over time and my staff has gained experience too so that makes it easier to move the chess board pieces around, so to speak. It can be tempting to pay people to do everything for you, but this is my livelihood too so I stay involved.
Q: Can you share the biggest highlight of your last 10 years in business? There isn’t just one highlight. This is a people business and you get rich in many ways that aren’t necessarily about money. Twice, at two different funerals, someone stood up to personally and publicly thank me and my staff for helping them and that’s really better than any paycheck. It just confirms why you get in this business. I used to be in the financial business and worked for banks and those are good, honest businesses and people, but it’s nice to be in a business where it’s about more than money. Another highlight is that I’ve got caregivers who I know giving them a job made a difference in their lives. They are good caregivers. Caregivers tend to be people who are great at taking care of others but not always great at taking care of themselves. If what they put on my tombstone is, “He treated his caregivers too well,” then I’m happy I did this. Finally, interacting with the clients is often a real highlight. I took one client catfishing a couple of times. We caught two buckets of fish! He can’t go out to do that anymore, but he’s still talking about it. I have heard stories from people who were POWs during World War II and learned so much from them.
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