Low-cost Home Caring model fires for franchisees
While working in the health care industry is intrinsically rewarding, the profession rarely offers an opportunity for financial return. Nursing wages are historically low and the cost of going out on your own is astronomical, but Aussie success story Home Caring is flipping the switch.
Through an innovative joint venture partnership model, Home Caring is providing aspiring entrepreneurs with an avenue to launch their own business in the booming aged care and health sector.
The franchise has significantly reduced the barrier to entry for franchisees, implementing a low-cost 50-50 initial investment model. When a prospective franchisee signs on to the Home Caring business, they are only required to pay half of the initial investment, with the franchisor committing the remaining 50 per cent.
Once the business reaches profitability, the franchisee then shares 50 per cent of the profits with the franchisor, completing a full-scale partnership.
Bill Lockett, Home Caring franchise manager said the model was introduced to help prospective franchisees get into business for less, without compromising on support or structure.
“In a number of cases, we were looking at health professionals and registered nurses working within the health system who perhaps wouldn’t have been able to save the capital needed to purchase a franchise,” he said.
“As a direct response, we set up a partnership arrangement, whereby both the franchisor and franchisee would provide 50 per cent investment. This immediately reduced investment, which was crucial, because in a lot of cases your income does not grow quickly, a large majority of your investment in the first year is actually working capital.”
The response has been outstanding. Since the model launched 18 months ago, Home Caring has secured over 15 franchisees across the country.
Home Caring franchisee success
Campbelltown-based partner and registered nurse Claire Zhang was inspired to join the Home Caring business after measuring the opportunity against others in the sector.
“I was comparing Home Caring’s advertisement with other companies that offered a similar business opportunity but I found Home Caring had a far more reasonable and detailed plan,” she said.
In addition to the lower investment model, Zhang was surprised to note the company also offered a guaranteed $80,000 salary for franchisees, but she still had questions. An in-depth meeting with Lockett and Home Caring founder Jon Kontopos helped to confirm that this was indeed the opportunity she had been waiting for.
“I was always interested in business and wanted to be a business owner. However, I never thought my nursing career would help with owning a business,” she said.
“I really felt Jon has a level of confidence in this business to offer a stable income for all the franchisees, and once I started running Home Caring Campbelltown, I realised my past experience actually helped a lot. Not only my clinical knowledge and skill, but also skills in leadership and management.”
In the months that passed, Zhang has built her Home Caring franchise to become one of the network’s most diverse and popular, but she isn’t alone in her success.
Australia’s aged care boom
Australia’s ageing population is continuing to drive demand for in-home and aged care service providers. Couple that with an increase in funding to the National Disability Insurance Scheme, and the care industry has emerged as a highly profitable avenue for success.
Lockett said the trend is seeing more health care professionals look to transition out of the public sector, which is ideal for the Home Caring business.
“We’re looking for health professionals who may be fed up with shift work, who want a five-day week, with a passion for helping people in their local community,” he said.
“It’s a role that suits someone who has the ability to relate to people and is particularly comfortable in their language. The industry is growing so rapidly, the number of ageing people is multiplying with Australians living longer and the amount of disabled people still yet to receive their packages is extremely high.”
If you are looking to break into business for yourself, join the team at the forefront of the booming health care sector. Home Caring provides ongoing support, training and mentorship throughout the life of your franchise. Visit franchisebusiness.com.au/brands/home-caring/ and make an enquiry today!