How Home Care Franchise Opportunities Stack Up Against Common Risk Factors
As an aspiring business owner interested in taking advantage of the benefits franchising offers, you’ll need to assess the risks associated with your top franchise options. Every business opportunity, including home care franchise opportunities, lay somewhere along the risk axis. This position isn’t determined by a single factor, but rather a combination of risk factors that could keep your investment from paying off.
Exploring some of the most common risk factors that franchises face, as well as how Visiting Angels® home care franchise opportunities stack up against them, can give you confidence selecting which business venture to pursue.
4 Risk Factors You can Avoid with a Home Care Franchise Opportunity
Below are four risk factors that can be particularly high for certain franchise types and the ways in which choosing to work with Visiting Angels can help you avoid them.
Risk Factor #1: Choosing a Franchise that is a Short-Term Fad
Franchise fads come and go, often taking the investments of entrepreneurs with them when they eventually die out. It’s always good to be wary of a franchise model or industry that is new to the market. Untested methods, strategies, and franchise concepts can bring additional risk. Some even go as far as considering “new” as a synonym for “high risk.”
Of course, many entrepreneurs find they can make money on franchise fads. But those that do rely on timing, knowing when to jump on the bandwagon and when to exit. This approach doesn’t offer the long-term satisfaction of building a business and watching it thrive over many years. It is also inherently more risky than a long-term investment.
Is home care a fad? Definitely not! In fact, Visiting Angels has been serving families across the country for more than 20 years. The U.S. population is growing older. After having had to make care decisions for their own parents and grandparents, many Baby Boomers are realizing that aging in place is the one choice they feel good about.
The market for home care is growing and will continue to grow for some time. Joining now will give you the opportunity to provide compassionate care for elderly adults for decades to come.
Risk Factor #2: Businesses Affected By Regional and Seasonal Differences
Some franchise businesses will only work in specific regions or during certain seasons. Take mosquito abatement, for example. While this could be a year-long business in warmer areas of the country, locations in colder climates often shut down for several months a year.
Choosing a regional or seasonal business requires owners to live off previous earnings or savings for a portion of the year. It can also mean having to pay employees during slow months when revenue decreases. While some entrepreneurs find ways around these obstacles, or are comfortable with the variable earnings, many new business owners prefer to draw a profit year-round.
With a Visiting Angels home care franchise, you won’t have to worry about climate or regional differences. Seniors require care no matter where they live. Furthermore, once they get started with a home care provider, they often continue to rely upon their support throughout their years of aging in place. Successful home care franchise owners providing a superior level of care will enjoy referrals from existing customers, building their customer base.
Risk Factor #3: Understanding and Working with Government Regulations
Government regulations are something to consider for every business type. Depending on the industry you choose, the range and severity of regulations will vary. Regardless of the regulations in place, it will be up to you to understand and ensure you are operating in accordance with those regulations.
As a Visiting Angels franchise, you won’t have to navigate government regulations on your own. Instead, you’ll have an experienced guide in acquiring licensing for your home care franchise. Although licensing differs from state to state, we already have locations in all 50 states. As a result, we can ensure you take all the steps necessary to remain compliant with all government regulations - both state and federal.
Risk Factor #4: Decreased Business During Economic Recessions
Another issue to address is whether your chosen franchise will survive as the economy ebbs and flows. In challenging economic times, some business types do better than others.
Business concepts that revolve around a discretionary purchase often tend to suffer during economic recessions. As consumers tighten their belts, their priorities change and more luxurious purchases become wants rather than needs.
Other business types are highly recession resistant, and our home care franchise opportunities fall into this category. No matter what the economy looks like, care for seniors will continue to be a necessity. Moreover, home care is often less costly than residence in a senior care facility or nursing home, making it a more obvious choice during hard times.
We encourage you to find out more about what makes a Visiting Angels home care franchise opportunity an ideal choice for aspiring business owners. Call 800-365-4189 today, or contact us online for details!