Why
should a potential franchise buyer consider Right at Home
as the franchise to buy?
We all
like to talk about the opportunity of being in the right
place at the right time.
If you had the foresight to see the development of a major industry like the early days of fast food franchise development, would you have wanted to be a part of that? Of course you would. Because those that get in early on the ground floor of these industries following fast developing trends tend to do very well. They take some risk, but are certainly rewarded if the risk bears out.
Many of us think that the enormous boom in the numbers of seniors in the population will create just those kinds of opportunities in senior care and staffing over the next 20-30 years. Think of it. We are about to see a demographic change the likes of which have never been experienced before. Between now and the year 2030 we will see the population category "over age 65" increase from 13% to nearly 20%. When you consider that the current age 65 plus population in the state of Florida is 18% the conclusion is clear. Our entire country's population will soon be older on average than Florida's is right now.
Well, that is a huge change. But how does that translate to opportunity for Right at Home franchisees?
The
key is to create a business that delivers services that
respond to this growing "age wave" as it has been coined
by Ken Dyctwald, a leading psychologist and best selling
author on aging issues. And that is what Right at Home is all about.
We feel we have created a system which effectively delivers
services in two areas which are now developing: non-medical
senior home care and supplemental staffing for the healthcare
industry.
Start
with non-medical senior home care, what is that and why
is that need developing with the senior boom?
Several
years ago, as a health administrator, I began to see the
enormous boom in Medicare Home Health care as it was developing.
I was ultimately involved in creating a very busy Medicare
Home Health business. During that time period I noticed
a disturbing trend. We had many patients who still needed
support, but did not know where to look for help.
Medicare
Home health took care of the post-acute care hospital stay:
it was there long enough to pay for some basic rehab, bandage
changes, checking vitals or other medical needs. But what
were the consequences after Medicare Home health left? You
had all these folks who could not deal with their needs
of everyday living: getting up and getting dressed, fixing
a nutritious meal, remembering to take their medications.
Others had forms of memory loss or other dementia and were
unsafe to be alone. They didn't need a nursing home, but
they could not fully meet their own care needs either. I
could see a care gap that needed to be filled, and long-term
at-home supportive care appeared to be the solution.
I did
a lot of research, including some Bureau of the Census research.
It definitely confirmed what I had suspected. Their data
showed that after age 65, about 17% of the population needed
help with these everyday activities of living. By age 85,
45% of us need this help. These facts, together with the
sheer increase in numbers of seniors, indicate a huge growing
need for help.
What
about the medical staffing side of the business?
There
is another area with great growth potential. I first noticed
this as a health care administrator involved in hospital
operations. We had increasing difficulty getting enough
qualified workers. The senior boom and technology was driving
unprecedented growth in the health care delivery system
and the need for available staff. But staff had become more
and more difficult for us (editors note: hospitals, nursing
homes, clinics, doctors' offices, etc.) to find and keep.
Several
factors were causing this. One, nursing has been a traditionally
female dominated profession. And cultural changes have opened
up many other rewarding career fields for women.
Two,
the work environment of hospitals and other care settings
have become more and more demanding. One factor is the increasing
acuity level of patients. When you combine this with the
cost cutting pressures that drive administrators to have
fewer nurses seeing more patients, you see the problem:
fewer staff caring for more, and sicker, patients.
Many
health professionals prefer working for a staffing firm
like RAH which can meet their needs for flexibility, variety
and the avoidance of the politics of a big organization.
This is projected to grow even more as the demand for health
workers is out-paced by the availability of qualified candidates.
I
understand. You have growth and opportunity in the two areas.
But why combine the both the senior home care and the health
staffing in one franchise system?
These
businesses fit together so well, and you significantly increase your available market with very little increase
in the overhead.
Think
of it, the basic structures of the businesses are the same.
You establish a marketing and sales system that brings to
your attention the need for good, reliable care workers.
You recruit workers, carefully checking their background,
training, and licensures etc. Then you operate an efficient
scheduling and staffing system, which places those workers
in assignments which matches their backgrounds, qualifications
and talents.
Some
differences are there, but these are easily dealt with using
our proprietary operating system which we have developed
over the past several years.
What
advantages do you have over your competition?
There
are several I would point out. One is what we discussed
already: two great markets for business under one franchise
system. Other important features include our training, support
and use of technology in our system. In training, most only
offer one week in our industry. We feel that two-weeks are
needed to get the information and feel for how the business
is run. Another strength is that support is provided by solid staff members who have
direct experience in the industry and can understand what
the business owner is facing.. Finally,
we are proud of our use of technology for our industry.
From our use of the award winning Maximizer database software
to our Right at Home e-net online communications service
network, we work hard to keeping technology that gives us
a differential advantage.
What
is the profile you are looking for in a franchise owner?
We are
looking for men and women with integrity and ambition. People
who have thought that running their own business would be
right for them, but who want to avoid the risks associated
with a completely new start-up.
This
could be folks from many different backgrounds. The nurse,
or other healthcare worker who loves her or his profession
but wants more control and potential. The manager or executive
who has proven ability and desire, but wants to have his
or her own business. No medical experience is necessary
for our business, but the will and desire to succeed is.
What
advice do you have for someone considering going into business
for him or herself?
Follow
your brain, and your heart.
First,
do your homework on the industry and the franchisor. Is
there a strong market? Is it a good long-term business or
a passing fad? Who are the people I will work with? Do they
have direct experience in the business and know what I will
be facing? Can I afford the start-up costs with this business?
Have I visited the franchisor to see the business personally?
Next,
decide if this is a business that fits you. Life is too
short to be working in something you don't like. Homecare
and staffing, for example, is a people driven business.
If you don't enjoy a lot of contact with people, it wouldn't
be the business for you.
What
are the important differences between joining a franchise
system like Right at Home and starting your own business?
There
are many advantages you get with a good system verses
having your own independent business:
Franchise
proven business format
- Brand
name
- Step
by step guide
- Technical
and mgmt. training provided
- Information
sharing among franchisees
- Marketing
and sales support
- Research
and development by franchisor
- Consulting
support from franchisor
- Continuing
education provided
Independent
- Must
develop format
- Little
name recognition
- Must
research to begin
- Must
find your own training
- Competition
won't share
- Must
hire firms
- No
time for R&D
- Must
find your own consultants
- Must
find on your own
What
is the total investment needed to open a Right at Home franchise?
A new
franchise license for a single territory costs $24,800.
Additional operating capital can vary greatly depending
upon individual factors, but generally runs between approximately
$10,000 to $30,000.
What
should someone do that is interested in a Right at Home
franchise?
First,
they should do their homework.
They
should review the pertinent information available on Right
at Home's web site and in the offering circular. Next, a
visit to the headquarters to meet the staff and see the
business operating is very important. This can let both
parties see each other and evaluate the fit between the
candidate and the opportunity. If that review is positive,
the next steps are deciding on a territory, getting a date
for training, and getting started in the business.