As with any business, the process for assessing home care business opportunities must start with in-depth research about local market demand and the viability of the business model. Because home care businesses tend to serve a specific demographic, they can only thrive in areas with plenty of elderly residents who are in the financial position to afford in-home support.
To give your business the best chance at success, you’ll want to conduct a comprehensive analysis of your planned service area to better understand what kind of impact you could have on the community there.
Steps for Analyzing the Viability of a Home Care Business Opportunity
Whether you’re uncertain as to how to move forward with your analysis or you want to ensure you’re following a detailed road map that will keep you from missing any important details, we have you covered. Below, we’re offering a step-by-step account of the variables you will want to look into as you evaluate the potential of a specific market for a home care business opportunity:
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Conduct a demographic assessment.
A thorough demographic assessment will provide you with an up-close look at exactly who lives in the projected service area. This assessment should consider factors such as age distribution, income levels, and common health care needs within the local community.
The higher the population of seniors in the area, the better poised you will be to meet the enrollment needs of your business model. That being said, the financial background of these seniors will also affect the demand for your services, meaning population numbers aren’t the magic key to assessing a home care business opportunity.
When you choose a Senior Helpers franchise, you’ll be able to tap into our extensive territory analysis. We provide candidates with demographic information for their territory including the number of seniors residing there and their income level. This is included in the discovery process as you are evaluating territories for purchase.
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Evaluate the aging trends of the local population.
You’ll also want to look at the population count of those in the 50-65 age bracket to determine if there is a growing need for care. Taking a look at the number of individuals who will be aging into the care market is essential to the long-term viability of your franchise. At Senior Helpers, we include all this information in your territory assessment.
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Consider the competition.
Taking a look at the competitive landscape is a must to ensure you’re not trying to tap into a market that is already over-served by a variety of existing home care agencies. Of course, the simple presence of competitors does not make the area itself a poor choice for opening your business. Rather, what’s important is to evaluate the strengths and weaknesses of the competitors to better inform your decision.
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Identify potential service gaps.
As you analyze the competitive landscape, you may find that there are substantial gaps in the existing service offerings that have left certain segments of the population underserved. For example, you may find that there are plenty of home health services available, but few solutions for seniors interested in non-medical home care. This will then reflect on whether the home care business opportunity you are interested in is the right choice for this area.
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Investigate referral sources.
Many home care businesses rely on leads from referral sources such as retirement communities, senior living facilities, hospitals, and health care clinics for a significant portion of their enrollment. Take a look to gauge the number of these types of institutions in your service area and assess the likelihood that you would be able to establish a lasting partnership with them.
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Research economic indicators.
An investigation of economic indicators ranging from projections of uncertainty in the market to the standard of living in the community can give you a better idea of how affordable your services will be for local families. This research can also help you assess pay expectations in the caregiver labor market, which will play a crucial role in your business model and pricing structure.
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Explore the forecast for population growth.
Finally, do a deep dive into how the community is projected to change over time, and how these changes could impact the demand for home care services in the future. Are younger families moving into the area, or has it become a hotspot for retirees? Taking a step back to see the bigger picture of demographic change in the region as a whole will give you the opportunity to determine whether your business could play a lasting role in the community.
Get Expert Support with Analyzing Local Market Demand
At Senior Helpers®, we have become one of the country’s most trusted and recognized brands in senior home care through years of hard work and diligence. Our experience has shown us the specific factors that can lead to the success of a home care business. We have evaluated a number of investor-friendly markets to select the territories we believe offer an optimal fit for our home care business opportunities.
When you choose to become a Senior Helpers franchise owner, you won’t have to take all of the steps above alone. You’ll have a partner who has been down this road before and who can provide you with detailed demographic information on the territories you are interested in, competitor evaluations, referral sources, and so much more. Take a look at our franchise territory map to start getting inspired!
Are you ready to learn more about our home care business opportunities? Simply contact us online or feel free to schedule a call with our team today!