Why care franchises make a great investment
Every year the UK’s population gets a little bit older. We’re living longer lives than ever before with many OAPs no longer considering themselves old until they’re well into their 70s or even 80s. At the moment, 18% of Brits are aged over 65, which works out to around 12 million people across the country. By 2035, that figure could rise to 25%, with the number of people aged over 85 also predicted to skyrocket.
A result of this ageing population is an increase in the demand for care services. Older people generally have more complex everyday needs than their younger counterparts, with many requiring on-going medical treatment, home help and other types of occasional support. With the NHS already struggling to cope with increased levels of demand, it looks like it’s increasingly going to fall to private companies to fill the gap and provide the care and support the UK so desperately needs.
This combination of an ageing population and a chronic lack of care provision across the UK means there are plenty of lucrative opportunities for entrepreneurs who want to get involved in the care industry. A large number of care franchises are available in all corners of the country, providing a number of options for those looking for a good investment.
One of the best reasons to invest in a care franchise is that demand is only going to go one way: up. According to the Independent, demand for care home places is set to double in the next 20 years. Quoting from a study published in medical journal The Lancet, they report that, by 2035 around 190,000 more people over the age of 65 will require care. This is an 86% increase on current levels, showing just how much of a demand there is for care services.
The report also found that the amount of time that pensioners required care for had almost doubled between 1991 and 2011. This means that not only are more people now requiring care than ever before, they are also requiring it for longer. With life expectancy continuing to rise, this trend is likely to become even more pronounced in the coming years.
At current levels, and with the existing rate of investment, the NHS and government-funded care homes are not going to be able to cope with the increased level of demand. Investing in a care franchise now could help you to place yourself in the perfect position to take full advantage of the growing care industry and make your franchise a success in the process.
Types of care franchise
For those considering an investment in the industry, there are a number of different types of care franchises available. One of the most popular options is the care home. These residential homes offer round-the-clock care to residents with a variety of health needs and many employ trained medical professionals to ensure their patients are well looked after. Other residential care homes provide just a basic level of care, offering residents support with daily activities and moderate health needs without specialist medical attention.
At the moment, the average cost of a private residential care home is £29,270 per person per year. If nursing is required, this figure can jump to around £39,300. Although set-up costs can be substantial, especially if you’re required to purchase a property and carry out renovations works, the potential financial rewards of opening a franchised care home can be significant.
A number of other franchise opportunities are available with companies offering home help and support. These businesses send trusted workers to individuals’ homes to help them with everyday tasks like cooking, cleaning and doing the shopping. Often, these types of franchises have lower start-up costs as there’s no need to buy or convert premises. However, with more and more people requiring these types of services, franchisees are almost guaranteed to have a steady stream of clients.
As well as providing carers offering general support and help around the home, some franchises also offer patients live in carers to meet their needs. In these cases, franchisees have to ensure they’re hiring trustworthy, reliable and fully trained carers in order to ensure their patients receive the high quality support they need.
The benefits of a care franchise
When it comes to finding care options for their nearest and dearest, people want a name they can trust. As care franchises generally have higher profiles than independent businesses, customers are more likely to have heard of a franchised business and therefore have an increased likelihood of choosing their services. Franchisees looking to invest in the care industry should try to ensure that they work with a brand that has a good reputation and a commitment to providing a high quality service. Care franchises that receive bad publicity will soon find it hard to attract new customers and may even find their client base disappears altogether.
Another benefit of investing in a franchise is that entrepreneurs are able to take advantage of the branding materials and marketing campaigns already undertaken by the business. These will have helped to raise the company’s profile and attract new customers to the business. The franchise will be able to build their client base on the back of these campaigns and potentially use existing marketing materials and contacts to boost awareness of their particular branch.
Older people have the majority of the wealth
Not only are older people the demographic most likely to need the services of residential and non-residential care providers, they are also the age group with the most wealth. According to a report from the Resolution Foundation, although those aged 55-65 make up just 18% of the population, they control 30% of the country’s money. What’s more, an impressive 80% of over 65s own their own home (70% own their property outright) showing that there is still a lot of equity to be released by this wealthy generation. For the first time ever, the over 65s control more money than the under 45s, with rising house prices and protected pensions helping to swell their collective wealth even further.
This means that many older people will have the monetary means necessary to pay for the care they’ll need as they age. For franchisees looking to invest in the care industry, it shows that as well as increased demand for services, there should be an increased ability to afford specialist care providers.
How to invest in a care franchise
If you’re considering investing in a care franchise, start your search by taking a look through the opportunities available on our site. Check how much investment is required by each franchise, if there are any geographical restrictions on opening a franchise and if you need any qualifications in order to become a franchisee. Once you’ve found an opportunity that suits your experience and your budget, contact the franchise to begin the application process.
Find out more about the benefits of franchising and the various opportunities available around the country by exploring our site today.