3 Factors Influencing Senior Care Franchise Revenue and Success
Today’s post spotlights 3 factors that influence senior care franchise revenue and success. Read on to learn how our franchise model sets entrepreneurs up for success, and how to get started with the Executive Advantage.
Senior Care Franchise Start-up Costs
In a classic report by the Journal of Small Business Management, researchers sought to identify the top factors associated with franchise failure. Unsurprisingly, high start-up costs, referred to as “capital intensity,” was foremost on their list (Castrogiovanni et al., 1993). Researchers hypothesized that “capital intensive” start-up costs would be “positively related to failure rate” because they push the break-even point even higher (p. 105).
At Executive Care, we designed our start-up investment in a way that minimizes capital intensity but maximizes franchisee supports. Our opportunity is available for as little as $99,750.
In this same report, researchers highlighted the protective effects of including capital reserves as part of the start-up costs (Castrogiovanni et al., 1993). Keeping liquid capital on-hand not only stops the break-even point from increasing, but also gives you a safety net to fall back on. And that’s why our start-up investment includes between $44,500 and $68,300 of your own working capital.
Breadth of Senior Care Services
Senior care franchises offering limited care services will only ever have access to limited market share. As client needs develop over time, many will be forced to leave limited care companies in search of other options.
At Executive Care, we offer a wide breadth of care services. Many of our clients start with simple housekeeping or companionship support, then move to more intensive services with us as they age. In this way, we maximize our senior care franchise revenue streams and caregiving opportunities.
The Reputation of your Senior Care Franchise
According to a recent article in Forbes, the most valuable business commodity is trust.
Trust is especially important in the senior care industry, where clients entrust the health, safety, and comfort of their loved ones to your business. And with troubling reports of elder abuse and exploitation receiving more attention than ever before over the past decade, clients are naturally more discerning than ever (Laches &Pillemer, 2004, p. 1263; Cooper et al., 2008).
Accordingly, senior care franchises with trusted reputations will get more business than new brands.
Fortunately, Executive Care is one of America’s most trusted senior care franchises. Since 2004, we have offered a whole continuum of care services to improve seniors’ quality of life, independence, and safety. Our commitment to affordable, high-quality care has earned us a strong reputation, both locally and online, which has helped our franchisees generate new leads and convert them to customers faster than the competition.
Of course, your brand reputation also impacts your business’s internal performance and overall senior care franchise revenue–particularly in the franchise industry, where trusted training and support services are fundamental success factors. Sako (2006) published a study in the Organizational Trust archives linking internal trust to lower operational costs, since fewer safeguards are needed in the form of governance structures for organizations that have cultivate a culture of trust. Have a look at what our franchisees are saying about our organization here.
Learn More about our Senior Care Franchise Model
Visit https://executivehomecarefranchise.com to start a free consultation with our team and browse our free informational resources.
Castrogiovanni, G. J., Justis, R. T., & Julian, S. D. (1993). Franchise failure rates: An assessment of magnitude and influencing factors. Journal of Small Business Management, 31(2), 105.
Cooper, C., Selwood, A., & Livingston, G. (2008). The prevalence of elder abuse and neglect: a systematic review. Age and ageing, 37(2), 151-160.
Lachs, M. S., &Pillemer, K. (2004). Elder abuse. The Lancet, 364(9441), 1263-1272.
Sako, M. (2006). Does trust improve business performance?Organizational Trust: A reader, 267-294.