Amie
Hello and welcome. My name is Amie Larter and this is the Buying a Franchise podcast, vital listening for anyone interested in buying or that’s in the process of buying a franchise. I’m here with franchise business editor Sarah Stowe to discuss the at-home caring market, what’s involved in being a franchisee and whether or not this is going to suit you. Sarah, welcome again.

Amie
Can you set the scene for us? What is the at-home care market and how much potential is there for a small business in this space?

Sarah
Hi Amie and sure let’s get into this. Home care service firms deliver services to elderly citizens and those with a disability. People who need assistance around the home or they need help to continue enjoying their lifestyle and their activities. The services can be diverse as diverse as lighthouse work, meal prep or perhaps driving a client to an appointment. So the more intense and complex services such as dementia care, respite care and palliative care.

And home care is a fast growing business. Almost 17% of Aussies are over 65 and we are an ageing population. So that number is only going to keep climbing. More and more people want to stay independent in their own homes as they get older, rather than go into residential care. We’re also seeing an increase in the number of Australians with disabilities. 5.5 million Australians in 2022, up from 4.4 million in 2018. So that means there’s a huge demand for care services.

And another thing, the government’s been pumping money into home care packages and the NDIS National Disability Insurance Scheme, making it easier for businesses to grow.

Amie
Okay, excellent. actually worked on an aged care magazine many, moons ago, Sarah, and it was a growing space then it continues to be spoken about in terms of it being a growing space now. So I feel like that’s a really good sign. And it makes sense. something that everyone needs and is always really going to be there. Keen to understand what does this growth and what does, you know, what you’ve spoken about so far, what does it mean for someone who wants to start their own business in this space?

Sarah
Well, it’s traditionally been a big corporate game, Amy, but now you’ve got franchise chains making a big splash. They’re focused on serving local communities and with the government pouring more money into home care, they’ve got a real advantage. Most of these businesses work with a mix of private clients, people who get government funding and NDIS participants.

And this opens up the market to individuals who have a passion for care and want to their own business.

Amie
Okay and so in this I’m keen to unpack and sort of you’re the expert in this Sarah why choose a franchise model here and why not just start your own business?

Sarah
Well, it’s like in many ways, it’s like having a safety net. Franchises offer support, they offer training and a proven business model, which can be a huge help in a very competitive industry. A franchise can be a real benefit to in such a highly regulated sector. Franchiseurs will keep franchisees ahead of regulatory changes. They’ll communicate any training requirements and they’re obviously very keen to ensure that their standards are maintained.

So when franchisees don’t have to put the time and resources into keeping ahead of legislation changes, they don’t have to worry about developing training programs or start marketing their own brand from scratch, they can then concentrate on building up those all important relationships with local communities and they can focus on delivering a high standard of care and that’s a great start to a business and it’s a great way to be able to operate your business.

Amie
Yeah, for sure. And tapping into that delivering a high standard of care that you’ve just mentioned. Are franchisees responsible usually for delivering the care themselves or do they have a team of carers? How does that work?

Sarah
Well, essentially they have a team of carers. mean, occasionally franchisees might step up and fulfill a caring role. It might be that they need to fill a staffing gap or they want to stay in touch with what’s happening on the front line of their business. But overall, a franchisee’s role is to build and drive their business. So franchisees will be hiring and coordinating a team of carers to provide that premium service. It’s a franchisee’s job to source new clients, to manage client satisfaction.

to liaise with the local organisations and obviously to promote the business.

Amie
Right, so there’s no need to be a qualified carer to run the business.

Sarah
Yeah, that’s right. In general, franchisees can come from any background and successfully operate an at-home care business. The home caring franchise is an exception. It does require its franchisees to have a nursing or similar career background. But overall, what franchises are looking for above all else is a passion, a passion for providing premium care and working within the community.

Amie
Yeah. And I think, I think a passion for what you do is particularly important. You know, it’s important in any, you know, business and space, but, it’s particularly relevant when your business is operating as a care provider. I assume there are other qualities that franchisers seek when recruiting franchisees. What are some of the, you know, what are some of them? What, what are some of those and are there any that are, know, particular to this space?

Sarah
Well, I mean, absolutely true that there are some quality, there are particular qualities that franchises or franchises will seek. As I’ve mentioned, franchisees in the home sector, home care sector, they’re running their businesses and there’s a lot of moving parts as with any franchise, know, building client base, retaining the clients, hiring and coordinating carers, keeping the business compliant, promoting the business through marketing and within the community, liasing with health and community organisations and look for new markets to develop. So they need to be able to manage all of those elements. They need to be able to kind of multitask and have their eyes on over all of those things. As this is such a regulated area, it’s important that business owners stick to the rules. Compliance is important in every franchise, but in aged care and disability sectors, there’s absolutely no room for shortcuts and regulatory avoidance.

That doesn’t mean that franchisees in this sector aren’t creative. mean, part of the business development process is looking for new revenue streams and smarter ways to do business. It does mean that franchisees need to be willing and disciplined enough to comply with the brand standards and the national regulations. So the role requires good organizational skills to manage all of these elements. And excellent communication skills are important too. mean, the franchisee needs to be able to express themselves well when they’re talking with clients, obviously, with their families, but also with the carers and the external agencies. Communication is vital.

Amie
Yeah, I think some of those skills are things that you can take, some that you develop anywhere and can apply. Are there any particular attributes, I suppose, or personalities that prove successful in the home care franchisees more so?

Sarah
We’ve mentioned a passion for caring and that caring attitude can’t be overstated. mean, you all franchises will reference that first up this

Amie
It is also the at home care market. So you would hope that caring is.

Sarah
Yes, exactly. And this is a business that’s all about people, It’s the carers of delivering the service, the client who needs assistance, the families who are supporting their loved ones in their bid to retain independence at home. So empathy has to be a key trait for any franchisee in this job. But franchisees need to be able to create a nurturing environment for their staff and their carers as well. And integrity and respect for others is absolutely essential.

I’ve spoken to quite a few franchisees working in this field and they all come from very different backgrounds. They’ve all got very different personalities, but they share a real commitment to bettering their community. And they will understand that this is not a Monday to Friday nine to five job, even if those are the office hours, right? It might be that a franchisee gets an after hours call from someone doing an overnight shift or a client has a problem at the weekend that needs to be dealt with.

And I’ve spoken to franchisees who choose to use the weekend to touch base with their clients. That might be a quick phone call to check if they’re happy with the service or they might even do a shift at a supported independent living home as part of the service to an NDIS participant. So as it is for any business owner, know, a franchisee in at-home care needs to be going that extra mile, needs to be tenacious and willing to work hard.

And committed franchisees will find plenty of opportunities to go above and beyond the basic requirements of their business to ensure client satisfaction and to drive the growth of their business. And that’s really important.

Amie
Okay, so if we shift gears to driving the growth that you just mentioned, Sarah, how do franchisees sort of scale up a business in this space?

Sarah
Well, the service franchises are territory based. So when someone signs up to a franchise, they have a limited area within which they can operate and they build up the client base and they add carers as they grow, as demand builds, you know, they add carers to ensure that they can service those clients. If they want to scale the business further, a franchisee may be able to purchase a second or a third territory. And that’s usually dependent on their particular performance and the franchisors agreement.

So adding a territory can provide benefits of scale in terms of operations. Of course, it does require strong organizational skills and franchisees typically find themselves moving further away from the day-to-day delivery of service and more into managing a business as they expand into multiple territories. So there are plenty of opportunities to scale. It isn’t, however, something that suits everybody.

Amie
Okay, so Sarah, can you sum up the key skills someone requires to be a successful franchisee in at home care?

Sarah
Well, let’s start with the obvious one, the caring and empathetic nature. Franchisees also need a brilliant organisational skills, attention to detail, willingness to follow rules, excellent communication skills and the ability to lead a team. That’s very important. We can add in drive and ambition, actually, the drive to excel and the ambition to achieve positive outcomes in the local community. It’s really a balance between caring and coordinating. You need both elements to thrive and to ensure clients are receiving exemplary care and service.

Amie
Fantastic, okay, thank you Sarah. And Franchise Business and yourself Sarah has produced a market report that highlights key statistics, trends and brands in the sector. It’s an easy guide to the business potential and features key brands. A little bit more of a deep dive from what we’ve discussed here today Sarah. So we’ll put this link to this download in the show notes. And if you’re some way into your franchise search, you might be ready to check out the franchise handbook that’s available on our website, practical tips that can help you navigate the journey smoothly. Visit franchisebusiness.com.au for more information. We hope you can join us on another Buying a Franchise podcast. Thank you for listening.