Recessions are almost impossible to predict with perfect accuracy. While there is no such thing as a truly recession-proof business, there are recession resistant industries positioned to maintain and even grow their business during challenging times.
Within franchising, businesses focused on healthcare and senior related services are some of top recession-resistant choice, according to Franchise Business Review.
Signs of a Recession-Resistant Business
Recession-resistant businesses in franchising provide essential goods and services people need even when budgets shrink. Consider whether their services provided by the franchise have been in high demand despite business closures. It’s also important to see how the business adapted during that last economic downturn. Do research to make sure the business you are considering thrived and provided innovative solutions to support its franchises in 2020 – the height of the global pandemic.
Here is a list of reasons why the senior home care industry is considered recession resistant.
Essential Services
The services provided by an in-home care franchise such as CareBuilders at Home fall in the essential category. This gives the franchise the economic endurance needed to stay the course through fiscally challenging times.
In-home care franchises play a special role in providing essential services to not only seniors, but to people with both physical and mental disabilities, and those recovering from illness or surgery as well.
Caregivers assist clients with activities of daily living such as chores, errands, medication reminders, transportation of appointments or social outings, meal preparation, light housekeeping, bathing and more.
Rising Demand
Americans will continue to get older and need help regardless of the strength of the economy. By 2030, the U.S. Census Bureau estimates there will be 57.8 million Americans aged 65 and older. The news from the US Administration on Aging is even more encouraging. The agency reports the senior population is expected to nearly double in the next 20 years. According to AARP, most seniors want to age in their own homes for as long as possible. This will increase demand in-home care services by a forecasted 70 percent.
The assistance provided by CareBuilders at Home and other similar in-home care franchises eases the stress families and their loved ones feel every day, from managing daily tasks to providing palliative care.
Pandemic Precedence
The events of the COVID-19 crisis have made seniors hesitant to reside in nursing homes and long-term care facilities. During the first 12 months of the pandemic, at least 34% of those killed by the virus were residents of nursing homes and other long-term care facilities, even though they make up fewer than 1% of the American population.
Troubling statistics such as this have heightened older Americans’ desire to age in place. Thanks to the services offered by an in-home care franchise like CareBuilders at Home, seniors can be exactly where they want to be, living comfortably in the home they love.
Additionally, the cost of non-medical home care is considerably less than traditional institutional care, meaning more people will choose home care when possible.
E-Commerce Proof
The U.S. home healthcare services market is projected to grow from $94.17 billion in 2022 to $153.19 billion by 2029, at a compound annual growth rate of 7.2%, according to Ibis World forecasts.
This is a strong suggestion that a non-commodity focused franchise like CareBuilders at Home does not have to compete with the likes of rising e-commerce giants. Franchises that provide a service that cannot be bought and shipped to one’s home overnight, or at all for that matter. An in-home care business can also grow and scale easier than a product-based business which are constantly threatened by the rise in popularity of online retail.
Multiple Revenue Streams
The CareBuilders at Home business model offers franchise owners the opportunity to tap into multiple revenue streams. The company’s innovative Virtual Caregiver program is one example. It is a subscription-based virtual system exclusive to CareBuilders at Home and is an effective alternative for seniors who may be resistant to traditional hourly home care services. This approach presents franchise owners within the CareBuilders at Home system a unique competitive business advantage.
Choose the Right Partner
Home care is a rapidly growing industry – in good economic times and bad. Choosing the right franchise partner can set you up with a strong foundation so you are better prepared to weather whatever business challenges arise – even a recession.
CareBuilders at Home offers the highest level of support and care for our franchise owners – and we go one step further to ensure success. We are the only home care franchise in the industry that provides complete back-office assistance to franchise owners. This includes handling payroll and taxes as well as billing and collections from clients which allows franchise owners to concentrate on the core business.
If you think CareBuilders at Home might be the recession-resistant partner you’ve been searching for, contact us today to learn more about our franchise opportunities.