Buying an Existing Care Business vs. Starting an Executive Care Franchise
The senior care industry is looking better than ever, and with record-setting growth on the horizon, entrepreneurs are looking at how they can get involved. Today’s post looks at what’s involved in buying a business versus starting an Executive Care franchise.
Is buying an existing business right for me?
One alternative to starting your own company from scratch is taking over an existing operation. It isn’t hard to find businesses for sale. They’re advertised in trade publications, local newspapers, and are readily available through business brokers. Typically, a buyer will be able to purchase the business in its entirety: brand name, equipment, and existing clients included.
To the uninitiated, this might seem like an attractive shortcut that skips the grind and gets straight to making money, but it’s not always that simple. Though every situation is different, we recommend approaching the idea of buying an existing business cautiously.
There are a number of drawbacks to buying an existing business. While the exact dollar amount will vary in every situation, this option is generally considered to be more expensive than franchising or starting from scratch, since you’re buying an established business instead of the framework for a future one.
When you buy an existing business’s assets, you also take on their liabilities, which can come back to haunt you later on if your research wasn’t diligent. This is especially true in the senior care industry, where trust and quality staffing are so critical.
Moreover, buying somebody else’s business strips away a large part of the gratification gained from bringing your vision to life. At the end of the day, it’s highly unlikely that you’ll find a business that was built exactly the way you’d like it to be.
Finally, buying an existing care business simply isn’t an option for those who lack training and experience in this field. Even if you intend to leave the care taking to your staff, you will need to know the ins and outs of the business, and possess strong marketing, bookkeeping, and managerial skills.
What do I need to know before buying a senior care franchise?
If the inherent risk and liability of buying an existing business isn’t for you, but you still want to be part of the booming senior care industry, consider buying a franchise.
Starting an Executive Care franchise gets you access to a proven business model, ongoing support system, and training curriculum, as well as an established brand name. But unlike buying an existing business, you’re given a fresh start.
Before you buy a franchise, consider the following:
- What type of experience is required? Starting an Executive Care franchise requires no senior care background, though management experience is helpful.
- What are the startup costs?
- How does the business model work? Partnering with Executive Care franchise gives you the option of investing as a single unit owner, multi-unit owner, or implementing the Executive model.
- Is the business profitable? The Executive Care franchise is built on seven potential revenue streams, all of which are projected to see tremendous growth as seniors start outnumbering younger demographics for the first time in history.
- What are the terms and conditions?
- How much time will I be expected to commit each week?