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How to Open a Homecare Business: Franchises vs. Independently Owned



With Baby Boomers turning 65 at a rate of 10,000 per day, home health care is one of the best industries to start a business. The expanding senior population and need for support during the golden years is opening up countless promising business opportunities. Yet, as with most businesses, the most challenging part is actually starting it.

One of the many decision entrepreneurs interested in this venture face is whether to go with a franchise or an independent business. Being aware of the advantages and potential downsides can increase your chances of continued success. Keep in mind; whether you are operating independently or under a franchise, with ClearCare’s innovative care manager software, your agency will easily rise above the competition.

Pros and Cons of Independence

Many experts agree the major advantage of being independent is that you control every aspect of your business from beginning to end. If you’re an entrepreneur who wants the final say, opening your business independently may be the way to go. Some people are naturally uncomfortable with franchise operations because the franchisor is similar to a partner, often with ideas that differ from yours.

Those who start an independent homecare agency will not be restricted by territory, traditional marketing programs, high costs, or threats of policy and procedure changes – the main drawbacks of franchising. With an independently owned homecare business, you won’t be limited in pricing or promotion either.

For those who are interested in taking advantage of the pressing need for homecare businesses but don’t have the necessary experience or skill, franchising may be the better course of action. Most franchise packages offer training classes and resources to build your skills, while independent owners are left to their own devices.

Pros and Cons of Franchising

According to the U.S. Chamber of Commerce, success rates for franchises are greater than 90 percent, making franchise ownership the lowest failure rate of any type of business. In addition, you can get things with a franchise that are unavailable with an independent business, such as

• Financing. Many franchises have relationships with lenders already familiar with their business model. Even if the franchise does not have a preferred lender, lenders are generally more willing to work with proven franchises.

• Suppliers. Most franchises have a network of suppliers so you may be able to get special pricing and deals. This means less time negotiating with other suppliers and more money in your pocket.

• Training. Independent businesses are often on their own when it comes to training. However, when you buy into a franchise, you typically get a significant amount of training from the franchisor.

On the flip side, homecare agencies started with the franchise method can be expensive. Initial costs are high, and according to Kluwer Academic Publishers, independent business startups are generally found to be more profitable than those of franchises.

With a franchise, you may have a limited territory and restricted marketing. As the market demographics in your territory change, you may find that your client base is drastically reduced.

Whichever route you choose, ClearCare’s homecare solutions will help you navigate the road to success. To compete with the other homecare businesses, your agency will need a solid reputation. Achieving this goal is much easier when you offer your clients ClearCare’s cutting-edge home care software. Our company can get you started with no set-up costs in less than thirty minutes, and will provide you with all the instructions and details you’ll need to seamlessly implement our programs into your business.


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