Why GoodOaks Homecare is a brand worth investing in
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If you’re an entrepreneur (or even a wannabe entrepreneur) and researching the possibility of entering the market, then you’re part of a growing trend in response to increasing demand for at-homecare services. With an ageing population, the industry is continuing to grow rapidly, making it a very attractive opportunity for those looking to start or expand their business portfolio in a £50bn sector.
However, before investing your time and money into a homecare franchise, there are many things to consider. In this article we are going to explore 5 key things to consider before entering the homecare franchise market. From conducting lengthy research on competition and market demand, through to just some of the legal considerations, we’ll cover some of those essential things you must consider before making a smart investment in homecare.
Investing in a homecare franchise can be a lucrative and extremely rewarding business, but as with all things, it takes careful consideration and planning before choosing the right organisation to partner with.
Franchise versus independent
If you are considering starting a homecare business, the two main options available to you:
To build an independent company from scratch, or invest in a franchise. Each option has advantages and disadvantages to consider before reaching a final decision.
One of the main benefits of opening an independent homecare company is the freedom and flexibility that comes with it. You are able to make your own decisions regarding everything from the name and branding of the services you offer, and the prices charged. This level of control enables you to tailor your business to your own vision and values.
Starting an independent homecare company may appear to be less expensive than investing in a franchise. You won’t pay franchise fees or royalties, and you may have more flexibility in terms of start-up costs and ongoing expenses. You also won’t have to worry about adhering to specific franchise guidelines or meeting certain expectations, which in some organisations can be limiting. However, it will take you a lot longer to set up an independent homecare company, including all the technology and systems that you need, as well as building brand reputation.
There are significant advantages to investing in a homecare franchise. For one, you’ll benefit from an established brand with a proven track record of success. This can make it much easier to attract clients and build a great reputation in your local area. You will also benefit from having access to comprehensive training and support from the franchisor, which can be invaluable when starting out, especially if you are new to the care industry.
Another benefit of investing in a franchise is the marketing and advertising support and ready-made documentation that is often included. Many franchisors provide their franchise partners with marketing materials and strategies to help promote their business and attract clients. This can save you time and money on developing your own marketing campaigns. Often, franchisors have robust systems in place for coordinating care, managing clients and staff, as well as robust internal communication systems, guidelines, ready made policies and more.
Finally, investing in a franchise can give you a sense of support and a community feel. You’ll have access to a network of other franchise partners who will offer advice and support as you navigate the challenges of starting and growing your business. This essential support will help entrepreneurs who may feel isolated or overwhelmed in the early stages of their business.
Ultimately, the decision to invest in a homecare franchise or start an independent company depends on your personal and professional goals, values, and what resources you have available.
With the right preparation and planning approach, either option can lead to a successful and rewarding (both personally and professionally) business in the homecare industry.
5 key factors to consider for a homecare franchise
- Market demand and competition
One of the most important factors to consider is market demand and competition.
While the homecare industry is growing rapidly due to the ageing population and increased demand for at-homecare services, it’s important to research the competitive landscape and market conditions in the specific local area you are considering setting up in.
One way to research demand could be to find out the number of elderly and/or disabled individuals in the area who may need homecare services. According to Age UK, there are currently over 11 million people over the age of 65 in the UK (almost 19% of the population), and this number is expected to increase by more than 40% over the next 20 years. In addition, the number of people living with disabilities is also on the rise. These figures suggest that there will be a growing demand for homecare services in the coming years.
Another factor to consider when assessing market demand is the availability of government funding for homecare services. In the UK, the National Health Service (NHS) provides funding for some types of homecare services, such as care for individuals with complex health needs. In addition, local authorities may provide funding for individuals providing they meet certain eligibility criteria. Understanding the availability of government funding and how it may impact the demand for homecare services in your area is important when developing your business strategy.
It’s also important to consider the competition in your area. The homecare industry is highly competitive and in some areas there may be many homecare providers, making it difficult for new entrants to establish themselves if they start their business without the reputation of a more established brand.
Conducting your own research is important – for example, the number and types of homecare providers in your area, their pricing and service offering, as well as their reputation in the community would be helpful. You may also want to consider the level of demand for specific types of homecare services, such as specialised dementia care or end-of-life care.
By conducting thorough market analysis, you can establish your business well, in a growing and competitive industry.
- Brand reputation and values
When considering a homecare franchise business, another important aspect would be to evaluate the brand reputation and values of the franchise organisation. Brand reputation can be defined as the perception of the public towards the brand. Reputation is built over time, which is a benefit of choosing a franchise business that has many years’ experience, such as that of GoodOaks. Choosing a franchise with a positive reputation helps establish a strong foundation for your new business, as well as attracting potential clients and staff.
Values are the core principles and beliefs that drive a brand’s behaviour and decision-making processes and are an essential element of an organisation. Those values can be a significant factor in the success of the franchise. GoodOaks Homecare values professionalism, respect, integrity, dedication, and empathy and reflects our commitment to providing high-quality care at home. GoodOaks Homecare is on a mission to be the go-to provider of quality care at home by valuing, developing and rewarding the caring people who work with us.
When assessing a franchise to purchase, a brand’s reputation and values can impact the success of the business. Here are some tips to consider:
- Research brand reputation: Conduct thorough research by looking at customer reviews, social media presence, and overall online presence. Check if the brand has any past legal or ethical issues that could affect its reputation.
- Evaluate communication: Evaluate how the organisation communicates with its clients and employees. Do they respond promptly to queries and are they transparent in their communication?
- Assess values: Do they align with your personal values and business goals? Make sure you fully understand and support these values before deciding to purchase the franchise.
- Talk to existing franchise partners: Get their perspective on the brand’s reputation and its values. This will not only give you an idea of how the brand operates but also how supportive it is of its franchise partners.
- Attend discovery calls or meet them: Attend discovery calls or meetings offered by the organisation to get a better understanding of the company culture, values, and operations.
In summary, conduct thorough research, evaluate communication, assess values, talk to existing franchise partners, and attend discovery calls or meetings to make an informed decision about purchasing a franchise.
- Franchise fees and royalties
When considering purchasing a franchise, one of the most critical factors to evaluate is the franchise fees and royalties associated with the business. Franchise fees and royalties are the ongoing costs that franchise partners pay to the franchisor for the right to use the franchise’s brand name, system, training and support. Fees are typically charged as a percentage of gross sales, and the amount can vary depending on the franchise organisation.
There may be a franchise fee which includes an exclusive territory (or more than one territory if that is what you require), initial training and support, the use of the brand name, trademarks, and systems.
Ongoing royalties are typically a percentage of gross sales, which covers ongoing support and access to systems and resources.
When evaluating franchise fees and royalties, it is essential to consider the value that the franchisor provides in return. Here are some tips and perspectives to consider:
- Evaluate what training and support is offered: The franchise fees and royalties should cover the ongoing training and support that the franchisor provides to the franchise partner. Evaluate training, marketing, and operational support to determine if franchise fees are reasonable.
- Assess the franchisor’s record of accomplishment and reviews: Evaluate growth, reputation and longevity in the industry, its reviews and success rates to determine if the franchise fees are reasonable.
- Review the franchise agreement: Review the agreement carefully to understand all costs and requirements involved in operating the franchise, including ongoing fees and royalties. It’s crucial to understand the terms of the agreement before making a decision.
- Consider the franchisor’s marketing and advertising support: Evaluate the marketing and advertising support that the franchisor offers.
- Support and training from franchisor
When purchasing a homecare franchise, it is important to evaluate the support and training provided by the franchisor to ensure it meets your needs and expectations. As a franchise partner, you will initially be relying heavily on the franchisor for support in starting and running your business and the level of support and training provided can have a significant impact on the success of your business, especially in the early days.
GoodOaks offers a comprehensive training package that includes everything you’ll need to know, to prepare you for a successful career in care. We take huge pride in our offering, supporting franchise partners every step of the way from CQC compliance to digital marketing and more.
Specific things to consider when assessing the support and training provided by the franchisor:
- Initial Training: Look for the franchisor to provide comprehensive initial training that covers all aspects of the business, from operations and management to sales, recruitment and marketing. This training should be conducted by experienced professionals that will guide and support you through the process of setting up and running the business, including support to register with the CQC.
- Ongoing Support: The franchisor should provide ongoing support to help you run your business successfully. This support can include assistance with marketing, customer service, and day-to-day operations. The franchisor should have a support team in place to answer any questions or concerns you may have. At GoodOaks, we have a dedicated support team at HQ, each one is an expert in their area and available to support and guide our network of franchise partners in every aspect of their business.
- Marketing Support: Marketing support should be available that helps promote your business and attract new clients. This can include branding materials (for example brochures and templates), marketing plans, and assistance with digital marketing campaigns.
- Operational Support: Operational support and guidance can be a valuable asset to help identify or address any issues or challenges that arise.
- Network of Franchise Partners: Being part of this network can be an invaluable resource in helping you navigate the challenges of running a business. Everyone is in the same boat and can lean on each other, ask for help and support from like minded people.
Look for a franchisor that offers excellent support and training and is continually developing new ideas and you will be setting yourself up for success in the homecare franchise market.
- Legal considerations, including territories and restrictions
It’s essential to understand the legal considerations involved with this type of business. One of the most critical legal considerations is the territory restrictions imposed by the franchisor. The territory restrictions define the area in which the franchise partner can operate the business. It is essential to understand these restrictions before signing the franchise agreement to ensure that they align with your business goals.
Here are some specific legal considerations to keep in mind when evaluating a homecare franchise but you will have to complete your own due diligence:
Franchise Agreement: Before purchasing a franchise, it is essential to review the franchise agreement carefully. The agreement outlines the terms and conditions of the franchise, including the fees, royalties, and territory restrictions.
Territorial Restrictions: The franchisor will typically impose territorial restrictions on the franchise partner, defining the geographic area in which the franchise partner can operate the business. It is essential to understand these restrictions and ensure that they align with your business vision.
Non-Compete Clauses: The franchise agreement may also include non-compete clauses, which prevent the franchise partner from operating a competing business in the same geographic area. It is essential to understand these clauses and ensure that they do not limit your ability to operate and grow your business.
Intellectual Property: The franchise agreement may also include provisions related to the use of the franchisor’s intellectual property, such as trademarks and logos. It is essential to understand these provisions and ensure that you are complying with the franchisor’s guidelines for the use of their intellectual property.
Employment Law: As a homecare franchise partner, it is essential to comply with employment laws and regulations. This includes ensuring that all staff members are appropriately trained, qualified, and screened before providing care services to clients.
Insurance: The franchise agreement may require the franchise partner to maintain specific types and levels of insurance coverage. It is essential to understand these requirements and ensure that you have the necessary insurance coverage to protect your business and your clients.
There are likely a plethora of other legal and regulatory considerations and the above is a non-exhaustive list.
By understanding legal considerations, you can ensure that you are making an informed decision and setting yourself up for success in the homecare franchise market.
In conclusion, starting a homecare business can be lucrative and very rewarding but it is critical that you consider many different factors before investing in a franchise to ensure that the business aligns to your own goals and values.
It is important for you to do your own research and careful planning, but hard work and dedication is also important so that your homecare franchise can be a profitable venture.
We hope this has been helpful. Why not be part of our network? We would love to talk to you. For more information, please give us a call at HQ on: 01202 786415
