StartupHomeCare Blog

3 Important Things To Consider When Starting A Home Care Business

by Editor

Posted in Senior Care | No Comments

For many, starting a new year means a new list of goals. Is starting and growing a successful home care business part of your goal list this year? If so, you need to determine what model in the home care industry will work best for your specific situation, goals for your business, etc. Here are 3 ways that AHI Group, Inc sets itself apart from others in the home care industry.

1. No Royalties – but we still have mutual financial motivation

Paying 4-8% of your gross revenue back to your franchise system for the rest of the time you own your franchise territory means giving up 25-50% of your take home profit (on average). Most home care agencies run a take home profit of 16-18% of their gross revenue – so 4-8% of gross revenue means 25-50% of your take home profit is given back to your “owner” – the franchise system.

At AHI Group, Inc, we don’t take any money out of your bank account each week (like a franchise system). However, we do understand the need for mutual financial motivation in any business relationship and that is why we have three optional programs that help our members drive revenue and also save money on expenses (so they can put more in their pockets at the end of each month). Instead of just not offering these three programs – or outsourcing them to other companies (like most franchises), AHI Group brought them in-house so we can keep that revenue instead of giving it to a 3rd party vendor.

One of the three programs is cloud based state of the art software to run your business. Another is our unique and proprietary Veterans Program. Contact us to learn more about all three optional AHI Group Programs.

2. No Revenue Restricting Small Territories

Most franchises offer a territory with around 250,000 people in it. Most area’s have 5% of their population who are over age 75. On average, 20 percent of these people will need care at any given time. That means a total population of 2,500 people who want in home care. Now figure out how many existing home care agencies are in your territory. How many more could be added each month ongoing by other franchise systems or independent home care agencies starting up in your area? What if your territory turns out to not be a great place to get referrals due to the existing competition? What will you offer that is clearly different to your embedded competitors to beat them out? Will you be able to buy a nearby territory that is better than the one you originally purchased? How much will that cost? These are real situations that happen every day to new franchise offices that open their doors.

Alternatively, AHI Group allows its “Member Agencies” to locate wherever they want and to market wherever they “get in”. That could be close to their office starting out or in a neighboring community – depending on the existing competition. One thing to keep in mind is that a franchise cannot protect you from the other 20, 30, 40 franchises or home care agencies in your area. The franchise can only protect you from someone in their own organization from opening an office in your territory. So, what are they really “protecting” you from when it comes to your territory?… one out of 30+ home care agencies?

3. Lifetime Coaching From Former Successful Home Care Agency Owners

AHI Group, Inc offers 10 days of initial training (named our Boot Camp) to get our members immersed into our tools/programs, and what they need to be doing each day to be successful. This training is provided by people who have actually owned their own successful home care business and grown it into a large organization. You learn from those who have actually done what they are claiming to help you do!

However, we realize that just because someone has received 10 days of training – it doesn’t make them an expert in a field. This is why we provide ongoing lifetime coaching for our AHI Group Members by people who have owned their own successful home care agency and know exactly what it is like to be in your shoes every day.

Our coaches are financially motivated via our three optional programs to help our members grow their business. We believe it is important that our coaches make more money when our members make more money – but not through taking money out of our Member’s bank accounts each week like a franchise does. Our business development team can provide more information on our three AHI Group optional programs that help drive revenue and save on monthly office staff expenses.

Wishing each of you success and happiness in whatever path you decide to take with your business goals in 2022!

AHI Group Team.

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