There is no doubt about the fact that the aging population is all set to create an exceptional and remarkable surge in demand for senior care industry in the decades to come, thereby opening up profitable opportunities for the agents and brokers to expand their business into this sector.
But what the insurance experts suggest is that it is crucial enough to understand this industry if you have to get a serious grip on the altering landscape in terms of long-term senior home caring and the senior living market.
Bruce Dmytrow, the vice president at CNA believes from the perspective of specialization that knowledge is certainly the most effective tool through which you can obtain all the success that you wish to accomplish in the senior care market.
When you move on to converse with the senior care facilities and with the board of directors, it is definitely important to have knowledge as it can add value by identifying segments, recognizing risks and setting a firm grip on the challenges of insurance underwriting. It is only by being aware of the present trends that you can gain credibility.
A detailed overview on the senior care sector and the aging population
For the global health care sector and the senior care industry, there is a staggering change that is waiting. When the stakeholders, providers, payers and the government strive hard to deliver the most effective and equitable care, they are actually performing within an ecosystem which is going through a drastic shift in business, clinical and operating models. If you think of the factors that are driving the senior home care industry, it is mainly the soaring aging population.
Now that there is an entire population that is aging together, all this is giving a hike to costs and a boost in level of expenditure for care, infrastructural improvements and technological innovations. If you take a look at the bigger picture, you will see that the aging population is progressing at a really fast rate all throughout the world. From 72.4 years of life expectancy seen in 2014, it has risen to 73.5 years in 2019. The total number of people in the world who will be at the age of 65 at the same time will rise to more than 608 million and this will account for 12% of the global population.
In a nutshell, the aging population is certainly the key driving factor for a soaring business market and there are constant reports which say that this senior population is expanding with time. So, if you’re planning to start off with a senior care business, you will have enough potential in the years to come.
Few startling statistics that prove the rapid growth of senior home care industry
There is no doubt in the fact that the senior care industry is an expanding one and to prove this, we have enlisted few indicators which are evidence to the growing industry. Check them out.
- Currently, 8,987,100 people receive support from the main facilities in the senior care industry like home health agencies, nursing homes, adult day care centers, hospices and other residential care units.
- By the time it is 2050, the number of people who utilize paid senior care service in any place will double from 15 million to 28 million. The aging population and their ever-increasing needs of senior care will drive this huge rise.
- If you take into account the senior population with long-term support, nearly 45% have in-home care services for the long term. Among them, 30% are more than 85 years and 75% report that they’re currently in better health conditions than what they were before.
- Amidst the population that is within 65 years of age, 75% of them will have developed some sort of disabilities before they expire and 45% of them will also be later on admitted in a nursing home.
- More than 10 million personal caregivers that provide care to seniors who are more than 50-55 years of age and all those who are suffering from dementia or Alzheimer’s disease.
Senior care industry and a spur in health tourism industry – Deducing the reasons
By now you must be wondering about the various reasons behind the massive growth and the boost received by the health and tourism industry. Let’s check out the few reasons.
- Exorbitantly high costs of treatment in the home country and effective yet low cost treatment offered by the tourism department.
- Highly efficient, modern and advanced equipments which are usually offered by the tourism department.
- Waiting lists in the home country are too long and hence whenever there is an immediate concern for medical assistant, suppose within a week’s time, you get such treatment from the health tourism department.
- There are more and more tourists who are eager to seek help of tourism while they get themselves treated. Patients will most probably tend to forget about their illness as they get an opportunity to unwind themselves in the lap of nature provided by the tourism department.
- There are times when you want to rejuvenate your body, mind and soul and eliminate the stress of daily life by using different medicine forms which don’t have any side effect.
- The healthy and tourism industry also offer better and more effective hospitality services.
- People often go out of their country to reap the benefits of high-skilled and more experienced medical professionals.
- The health and tourism industry also makes the patients feel like they’re in their own homes during the treatment of chronic and fatal illnesses like cancer.
The exponential growth in the senior home care industry – The driving forces
If you take into account the home care industry, you will see that there is a staggering growth in the total number of senior care facilities. What might be the driving forces behind this growth? Here are few reasons to keep in mind:
- There is a surge in need. In fact, there are millions of people who are growing in age and hence are becoming dependent on home care facilities. Due to the fact that there are too many who are in dire need of such case, the industry will certainly increase their supply of home care facilities in response to the rise in demand.
- Rather than having to carry the elderly and sick people out of their homes in order to be able to set an appointment with the doctors, the senior care industry is capable of bringing down such efficient services at home. There will definitely be a pre-planned route for the patient to get the assistance which is needed.
- There are too many who think that senior home care is a reasonable and more affordable route which can be opted for the people who need help. As compared with whatever that is offered in living facilities and nursing homes, senior home care is certainly much better.
Starting off with a senior care business – Steps to get you started
After knowing the gaining momentum of eldercare business, you might be someone who is thinking of cashing in on such an opportunity. Do you want to start off with your own eldercare business? If answered yes, the procedure can be both quick and easy if you follow the right steps. Here are few steps that will make the process speedy and effortless.
Decide what kind of services you want to cover
The foremost step that you need to take is to make a list of all the services that you plan to offer to your customers. For that, you need to have knowledge on what can be needed and what sorts of services are in high demand in your locality. While there are some facilities which specialize in respite care, some other prefer running errands and some love housekeeping. You can chat with other providers of senior care to get an idea of what services are required in your area. As the list is done, design a brochure or a flyer or create a website of your own to promote your services.
Give a suitable to your home care business
Once you’re sure about the services that you wish to offer, the next step is to give a suitable name to your home care business. Make sure the name is memorable and catchy at the same time. You may even choose to add your town’s name to your business’ name as this will increase its search ability online when people search online. Also ensure that there’s noone else who is using the same name as yours.
Don’t be impulsive about spending too much money
Whenever you’re starting off with your own business, don’t give in to the urge of spending too much of your dollars. For everything that you wish to spend on, ask yourself ‘Do I need this or can I do without it now?’ If you’ve got a smartphone and a vehicle, you have two of the basic essentials that you may need. Try to open your office at some unused room of your home so that you don’t have to pay too much on rent or other costs. Unless your business income gets steady enough, act like a miser.
Decide on the legal entity of the business
Whenever you begin with an eldercare business, you require choosing the most appropriate legal structure for your business. The senior home care businesses usually run as an LLC or a sole proprietor and in case you find yourself confused, you may get in touch with a financial advisor who can advise you on this. No matter what you decide, pin it first even before you apply for a business license or before you receive your tax number.
Decide on the insurance coverage
In the instance of a lawsuit, you would require adequate amount of coverage which can protect you against a claim. Hence, you need to get in touch with an insurance agent who can tell you about whatever you need and everything that is needed within your state.
Decide on the rates that you will charge
There are many novice senior care businesses which make the error of not being able to charge enough an amount to cover all sorts of costs that they’ve incurred. Since they’re not in business for a long time, they don’t remain aware of the different small expenses like bookkeeping fees, licenses, social security taxes, insurance or vehicle maintenance. All these expenses can add up and become a bigger sum of money. You can add 30-35% of the wages that you will pay yourself as this is the only way in which you can come to a reasonable rate which makes both you and your clients happy.
Start looking for customers
Once you’re done with setting up your senior care business and you are sure about the services that you will offer, begin to look for customers. Remember that you may just need few of them and given the rising demand of caregivers, you can easily be allowed to choose and pick your clients. The senior service providers are usually a good source for referring and you can also put up a free ad at Craigslist.
Try to offer exceptional and unique services
When you take proper care of your senior clients, they will spread the word about you to other seniors whom they know and if ‘word-of-mouth’ marketing takes off for your business, you won’t ever have to promote your business again. Try to follow the Golden Rule and give utmost priority to the comfort and health of your clients. Give them the care that you would exactly want from someone else if you were in their state.
Therefore, given the present state of the senior care industry, anyone can gain a handsome amount of ROI by starting off this business. Follow the steps mentioned above to start your elder care business and make it reach the zenith of success.