While the past year has brought serious challenges to the senior care industry, several factors have also created a surge in demand for home care services. Population numbers certainly work in favor of this business, with more and more baby boomers turning 65 and older every day and increased numbers of people living with chronic illnesses. The health impacts of the pandemic continue to be far-reaching, leaving more families considering at-home care for themselves and loved ones.
In addition to growth in the industry, there is an increasing number of people pursuing the dream of owning their own business. Many who lost jobs during the economic uncertainty of 2020 are now finding hope in a possible career pivot. Home care is an attractive option; an opportunity to provide an important service to others at a time when they need it more than ever.
Franchises offer invaluable tools for owning your own business
As 2021 and our post-vaccine economy ramps up, franchising offers a way for entrepreneurs to open their own business, build sustainable income, and follow a path to tried and true success. In the case of home care operators, who face an ever-changing regulations landscape, continuous labor struggles and many COVID-related challenges, franchising means they don’t have to go it alone.
One of the reasons entrepreneurs choose to invest in a franchise rather than open an independent business is because franchise brands offer corporate support, training and branding. Leading franchisors in this space like Senior Helpers and BrightStar Care provide experienced teams that can walk a franchisee through everything from location selection to caregiver training, marketing and sales support.
Franchise corporations also understand the risks and have a clear picture of how much funding is needed to cover expenses such as franchise fees, equipment purchases and build-out costs. Depending on the franchise, individual owners may be eligible for franchise financing solutions designed for them through partnerships with financing support services or direct lenders.
Lending was an issue that came to the forefront this past year for many small business owners and was a point of advantage for those in a franchise system. Let’s look at Paycheck Protection Program (PPP) loans as an example. Small business owners were faced with a complicated, confusing process, but franchisees were at a distinct advantage because they had the backing of corporate offices to provide clear direction on accessing PPP funds and pre-existing partnerships in place to help obtain them. When a business owner has trusted resources at the ready they are able to quickly navigate those unexpected twists. This fact was fully illuminated during the race for PPP loans. Many franchise business owners rapidly secured PPP loans they could use for payroll and rent, keeping their business running and providing a foundation for recovery.
Franchisors have several avenues they can take to increase a franchisee’s access to lending and capital, such as providing working capital to franchisees in a tight spot or providing credit enhancements to lenders. These can make all the difference in sustained growth and maintained operations.
Access to third-party tech platforms often consolidates financing solutions and offers a whole new world of finance not previously explored. BoeFly, for example, connects borrowers to a wide array of banks and specialty finance companies. By exploring outsourced avenues, business owners are bridged to a set of lenders across the network that they would not typically have access to, including smaller banks or lenders in an entirely different region of the country.
Streamlining the process
Business owners need a simple way to tap into financing for new business ventures or to grow existing ones. Formulating a business plan, understanding your financial strengths and weaknesses, and connecting with the right lenders are just a few of the steps toward getting the necessary funding. In this COVID-19 environment, it has become more competitive for an entrepreneur to gain access to a loan as lenders are more risk averse as many address their wounded loan portfolios.
Miles Mulman is a great example of someone in the home care industry who benefitted from outsourced solutions to get the funding he needed. Mulman previously worked at Senior Helpers as an employee of both the local franchise and the franchisor, and his passion for the brand fueled his interest in owning a franchise location of his own. Through assistance, Mulman was able to navigate the financial requirements of opening a franchise and secure a loan quickly. He acquired the franchise location he previously worked for and is now the proud owner.
Those dreaming of owning or growing a business in home care have many tools and opportunities at their disposal. Whether you choose to chart your own course or join a proven franchise system, build a network of outsourced partners who can help you achieve your goals effectively and efficiently.
Mike Rozman is the CEO and co-founder of, BoeFly, a marketplace for franchise growth solutions. Since 2009 BoeFly has connected businesses with the resources they need to succeed, utilizing data-driven systems and a robust online marketplace. BoeFly’s extensive suite of services and innovative technology is able to bridge borrowers to a wide array of banks and specialty finance companies while pioneering products, such as bVerify, serve businesses at all stages of development. For more information, visit www.boefly.com.
This article originally appeared on McKnight's Senior Living