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How much do home care franchises make?

home care franchise in the uk
If you’ve already determined that you’d like to purchase a franchise, you’ve narrowed down the industry you’d like to operate in and you’re now wondering should I buy a home care franchise, there are a couple of factors for you to consider before getting started. One of the first questions on your mind will be if a home care franchise in the UK is profitable and whether it’s worth exploring this opportunity further.
 
There is no simple answer to this question because it involves several factors that will each depend on the individual case and franchisee. However, we’ve narrowed down the most important criteria to consider as you get started with your home care agency franchise in the UK. Take a look below.
 
 

Factors influencing profit margins

Every franchisee’s experience in the home care franchise industry will be different. This is because several criteria are at play simultaneously and these must be taken into consideration when figuring out if a home care franchise for sale is profitable as well as how much you can expect to earn. These aspects are discussed in a bit more detail here.

Start-up costs: undoubtedly one of the biggest costs involved in a domiciliary care franchise for sale is the cost of the actual home care franchise. Luckily, there are quite affordable options on the market and even if you don’t yet have the capital required to make this investment, the franchisor you choose will be able to help you secure financing, as franchise business models are perceived as being more reliable and steady than business models of start-ups starting from scratch.

Overheads: once you’ve made the biggest investment and purchased the franchise by signing on the dotted line, you’ll have to think about your overheads. Every business knows that expenses are necessary and that they should be kept to a minimum. However, there are some fixed costs that you’ll need to consider such as technology, software, equipment in some cases, vehicles, branding and more.

Territory: another influential factor regarding how much you can make as a home care franchise owner will depend on the territory you will ultimately be operating in. This territory can be home to a high number of clients who fall within your target market or a medium to low number of clients. This is why market research comes into play here and the territory you choose will have an important impact on your bottom line. However, by discussing this with your franchisor, you’ll be able to make a more informed decision and opt for territories that offer more potential for higher profits.

Service types: the home care industry is quite niche but it also offers a lot of diversity. For example, as a home care service provider or franchisee, you’ll be able to provide anything from respite care to home care, dementia care, Alzheimer’s care and more. Each of these services will be priced differently, depending on the franchisor’s pricing structure and will also come into play when determining how much you can earn. In addition to this, you’ll also need to consider how often and at what frequency you will be providing services as well as the total number of clients in your portfolio.

Labour: labour costs are a consistent monthly cost to take into account and this will increase as your operations expand and grow. When you’re scaling your franchise home care business, you will need to recruit new staff, train them and ensure they deliver a service that is consistent with the parent brand’s standards. This will not only take time but is a cost factor that should be taken into consideration, too.

Tax: as a final but by no means least important or only factor to consider is the issue of taxes. Taxes are paid by every business in the UK and you need to make provisions for such deductions from your overall earnings to ensure your books are in good standing.

private home care business

 

Why buy a home care franchise?

With these factors taken into account as you embark on your home care franchise business journey, you’ll be able to make better and more disciplined decisions about your business and its finances. 

Keep in mind, however, that despite these costs (which nearly every business owner needs to consider anyway), a home care franchise is a much safer and robust business model than other start-up businesses. In addition, it offers lower entry costs and the constant and growing demand due to an ageing population means a wider client base to serve. 

Furthermore, the business model is recession-proof and not only that, but you’ll also benefit from ongoing training and receive the support of a wide network of franchisees, which means you’ll always be able to consult with a pro whenever you have a question or need to solve a challenge.

Finally, as a franchisee, you will also be able to take advantage of marketing and advertising assistance from the parent company. This will not only save you countless hours doing essential work you may not understand but it will also save you money.

 

Wondering why to invest in a homecare business?

Purchasing a home care business for sale can certainly be a profitable endeavour. All you have to do to make a success of your new enterprise is factor in your fixed and variable costs and align these with your income. Keeping expenses as low as possible while trying to maximise profits is an age-old adage that can and should be followed in the home care franchise industry, too.

 

 

Get started with your very own franchise business!

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