Investing in a Care Franchise: 5 Questions to Ask

Introduction

More and more people are looking to start their own businesses and work for themselves. Running your own business is a challenging prospect, but also offers the tremendous reward of flexibility, not to mention income potential.

Franchising a Home Care business can be a great opportunity, particularly as the care sector continues to grow and many older people choose to remain in their own homes.

In addition to the financial opportunities a home care business can afford, working in the care sector can be profoundly satisfying; knowing that you’re helping people to live more independently every day.

Here are what think are the 5 most important questions to ask so you can make the most informed decision about your potential investment:

1 - How many potential clients are in my area?

A key aspect of investing in a franchise is your territory - this is the area within which you’ll provide care services to local customers.

A good care franchise will have already completed the background work to explain what the potential size of the market is for your area. Typically, territories are divided in a way that ensures you’re able to secure a wide area that can serve a high volume of clients.

The care market has never had more demand and choosing to have a live-in carer is an increasingly popular alternative to residential care. Interestingly, the office of National Statistics predicts that the number of people aged from 85 will grow from 1.6 to 3.2 million within the next twenty years.

With that in mind, you should expect a territory that will allow you to scale your business according to your business goals.

2 - How much will I need to invest?

Home care franchises require a good level of investment in order to hit the ground running and be able to scale their services accordingly.

While the investment amount may be higher than other types of franchises – the potential revenue of a successful care franchise is also much higher, not to mention incredibly rewarding to be a central part of.

This is usually made up of three elements:

• The franchise fee
• Initial working capital
• On-going royalty fees

It’s important to take a measured approach to investing in a franchise, and not to consider the suitability or quality of a care franchise on its cost alone.

The key here is to gain a full understanding of the franchise fee, so you understand where each element of your investment is spent.

Some care franchises can also provide assistance with producing a business plan and if required raising finance, so it’s always worth discussing.

3 – How much can I make?

This can vary depending on both the size of the territory you’re operating in, as well as how saturated the market is in your area.

A good home care franchise can provide you with details from established care businesses, so you can gain a better understanding of what a realistic return looks like.

At CareYourWay, we work heavily with our franchisees to ensure that their financial projections are met. As our brand grows your business grows with it and we can significantly increase revenue.

4 - What Kind of Support is Provided?

The main benefit of owning a franchise is the level of training, support and knowledge provided by the company.

When you opt to invest in a care franchise, you’re relying on the experience that the company has gained over the years they’ve been in business. This is a huge factor when compared with going it alone, and allows you to proactively learn and respond to challenges before they happen!

As a prudent potential franchisee and business owner, you should enquire as to what kind of support you’ll receive, not just in the start-up phase but also once you become established and delivering services in your area.

A great franchise support package should include comprehensive training, recruitment support and marketing collateral to help advertise the business in your local area.

5 – What kind of skills do I need to be a successful franchisee?

A common misconception of investing in a home care business is that you need to have previously worked within the care sector.

While that experience would no doubt be beneficial, it’s not a pre-requisite, as you have the option of recruiting a home care manager who can oversee the day-to-day delivery of your care services.

We founded CareYourWay after our own experiences of providing care for a terminally ill loved one. Your motivation may be similar, you may already have a background in care or be completely new to the industry.

We see the following factors as the vital elements for any potential franchisee:

• A Passion for Care
  Owning a home care business means you’re providing life-changing support to local people every day, giving you a real sense of fulfilment.
• Drive, Ambition & A Business Mind
  As a franchisee, your core role will be to develop and drive your business, focusing on its financial performance and managing your team.
• People and Communication Skills
  As the face of your business, you’ll be communicating with a variety of stakeholders on a regular basis.

No matter your background, so long as you share the same passion for providing the best care possible and the drive to succeed then you have what it takes.

Running a Home Care business in your area

As one of England’s top 2% of care providers, we are at the forefront of defining what quality home-care should look like.

We’ve received recognition from leading bodies from around the country and continue to work towards our vision of providing the best live-in care service available.

If you’d like learn more about the CareYourWay franchise, we’d encourage you to request our franchising prospectus which offers a wealth of information about the opportunity.

Alternatively, our friendly teams are here to answer any questions or queries you might have. You can contact us on 01548 521 789, or send us an e-mail.