How to Start a Senior Care Business: A Complete Guide

Introduction

The long-term care market, which includes assisted living facilities, skilled nursing facilities, and home health care, is experiencing significant growth. With 77 million baby boomers in the U.S., 10,000 Americans have been turning 65 every day since 2011. By 2021, the same number of Americans were turning 75 daily. The market is valued at $443 billion in 2019, and projections show that by 2027, it will grow to $751 billion, an increase of $308 billion over eight years.

Demographics

The baby boomer generation, born between the mid-1940s and mid-1960s, has been a defining force in many industries throughout their lives. Now, as they enter their senior years, they are driving the growth of the senior care industry. Many of these individuals prefer to age at home, rather than moving into assisted living facilities, which creates a demand for home health care services.

Distance from Family

On average, family members live 280 miles away from their elderly parents, which can make it challenging to provide care. This is where professional home care services come into play, offering caregivers to help seniors stay in the comfort of their own homes. Many seniors are living longer, but with increased health risks that require assistance with daily activities.

Caregiver Challenges

The “sandwich generation,” adults caring for both their own children and their aging parents, face significant challenges. Many have full-time jobs and are unable to provide the care their elderly parents need, leading them to seek help from professional caregivers.

Professional Experience

1Heart, a non-medical home care service company, does not require franchisees to have healthcare experience. The industry is unregulated, and the services provided are primarily companionship, medical appointment assistance, meal preparation, and light housekeeping. While having a medical background can be helpful, it is not necessary for success in this business. The top-performing franchisees often come from non-healthcare backgrounds but follow the proven systems set up by the franchise.

Healthcare Expertise

1Heart’s leadership team has over 90 years of combined healthcare experience, allowing them to coach franchisees on how to provide the best care, including handling conditions such as dementia or mild cognitive impairments.

Brand Importance

The senior care industry is becoming more professionalized, and brand recognition plays a significant role in gaining trust from families seeking care. Hospitals and senior living communities prefer to work with established, well-known brands, rather than small, independent operators. The 1Heart brand has built credibility and trust, making it easier for franchisees to acquire clients.

Professionalizing the Industry

1Heart has been instrumental in professionalizing the home care industry by training over 3,000 caregivers through its Caregiver University. This focus on education and wellness, including brain health seminars, fall prevention, and cognitive stimulation programs, sets 1Heart apart from other home care companies.

Operations

Franchisees at 1Heart fulfill two key roles: client care management and office operations. As a client care manager, franchisees are responsible for getting referrals, signing contracts, and ensuring the quality of care provided by caregivers. In the office, they handle payroll, billing, and caregiver recruitment.

Flexible and Scalable Business Model

The home care business model is highly flexible and scalable, with low overhead costs. Franchisees do not need a large office or staff, making it easier to grow the business. Success depends on how well the franchisee follows the system and invests time in their business.

Franchise Experience

1Heart’s franchisees come from various backgrounds, with some having experience in other industries. The system’s strength lies in its simplicity and effectiveness. Franchisees who invest time and follow the system have seen significant growth and success in their businesses.

Range of Investment

The total investment to open a 1Heart franchise ranges from $88,000 to $127,000, which includes a $47,500 franchise fee. Franchisees sign a 10-year contract with an option to renew for another five years. By following the system and investing time into the business, franchisees can avoid costly mistakes and benefit from ongoing coaching and support.

Marketing Support

1Heart provides comprehensive marketing support for its franchisees. The corporate office develops and tests marketing campaigns before rolling them out to franchisees, ensuring that they are effective. Franchisees benefit from tried-and-tested strategies without needing to hire marketing professionals.

Economics

Franchisees generate revenue by providing non-medical home care services to seniors. Most clients pay privately, although some states offer Medicaid or Medicare options. Additionally, franchisees can offer staffing services to facilities, such as hospitals and assisted living centers, which provide additional revenue streams.

Client Retention

Many 1Heart clients stay with the franchise for years, with some receiving care 12 to 24 hours a day. This recurring revenue model allows franchisees to build stable, long-term businesses.

Financing Options

1Heart franchisees can finance their investment through SBA loans or third-party funding groups. These options allow franchisees to secure 30% to 60% of the total investment, depending on their qualifications and credit history.

Foreign Nationals and E-2 Visa

1Heart has worked with foreign nationals who have successfully invested in the franchise and obtained E-2 visas to live in the U.S. While visa processing has slowed in some countries, 1Heart continues to see strong interest from foreign investors, particularly those looking for long-term business opportunities.

Hiring and Legal Support

1Heart provides support to franchisees in recruiting and hiring caregivers, ensuring compliance with legal regulations. Franchisees receive ongoing training to minimize liability and provide high-quality care.

Area Marketing

Franchisees receive support in both client recruitment and caregiver recruitment through 1Heart’s area marketing and recruitment programs. The franchise also offers exclusive, protected territories, which allows franchisees to grow their businesses without worrying about competition from other franchisees in the same area.

Exclusive Franchise Territory

1Heart offers larger franchise territories than many other senior care franchises, with territories covering a population of around 450,000 people. This ensures that franchisees have ample opportunity to grow their businesses.

COVID-19 Impact

The COVID-19 pandemic presented challenges for the senior care industry, but 1Heart adapted quickly by ensuring that caregivers were regularly tested and equipped with PPE. Surprisingly, the demand for home care services increased during the pandemic, as many seniors required care while being isolated at home.

Future of Senior Care

The senior care industry is expected to continue growing as the baby boomer generation ages. 1Heart anticipates stricter regulations in the future, which will raise the standards for home care providers. 1Heart is already well-positioned to meet these requirements and continue providing high-quality care.

Conclusion

1Heart offers a comprehensive, supportive franchise system that allows franchisees to succeed in the growing senior care industry. With strong branding, proven systems, and ongoing support, 1Heart is a leading choice for those looking to invest in the home care sector.