Lucrative senior/elder care niche

[awesom-o]

This got me thinking here are two pretty well complementary problems: there are too many young people who haven't got jobs, and too many old people who have problems they can't solve. With, for example, their computers; with their piles of junk; with their ceiling light bulbs , jammed doors, incomprehensible forms and TV sets that have refused to go digital.

As I looked further into this market it quickly became apparent there really is a need here. With the elder demographic constantly expanding,and being wealthier, the elder care market seems to be a niche I haven't seen discussed on here - I guess this is because its not internet/app related! There are loads of care homes and carers already but for those who want to retain their independence and just want help with technology,lawn care,shopping etc on an occasional basis around the house there isn't as much market saturation here.

There is an interesting article on entrepreneur.com about the senior care market and the ways you could approach it.
The business concept which interested me the most out of the ones listed is the concierge service. You could start it locally build it up with peoples trust (major factor for success) and create something of real value. Sure you won't make much in the first couple of years perhaps but once the successful system is in place franchise it around the country and collect the £££/$$$!
An aging population this isn't an issue which is going away in fact its the largest growing demographic of all in the western world. In the UK there doesn't seem to be a national elder concierge service leader not sure if this is the case in the US? Aside from the concierge service you could also build up a trusted business directory of companies who don't take advantage of seniors and monetize it using a BBB type model once your brand has value.

Obviously you would have to do due diligence on people you employ but I'm sure there are plenty of young unemployed who could be interested in being either employed or contracted in on a freelance/casual basis to carry out tasks. This would leave you to get on with the logistical side of the business.
Just some thoughts but the more I think about the idea it's growing on me for possible execution :fastlane:

Would be interested to hear other peoples thoughts on this

 

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[Amail]

Services for the elderly has been projected as a major growth industry for years. It isn't sexy, but there are huge needs there, and a lot of money to service it.

The business I'm working on at the moment addresses this need as well, but not in your niche. I recognize the opportunity there, and I'm going after it.

Want to start a lucrative business in elderly services? Gain their trust and they will tell you what to do.

It's really easy to uncover needs. Go to your local retirement village and run, say, a computer class - "How to use the Internet", or "How to email photos to your family". Many of these people are barely computer literate, but know they're not using them efficiently or correctly. Do some good, and you will establish yourself as an authority and an enabler (in the good sense). You will quickly build trust, and the word will spread like wildfire, especially if you're easily accessible. You probably won't make much, if any, money teaching the computer classes. However, if you think of it as the price of admission, you will find yourself with a trusting, willing audience with money who are keen to tell you what they need.

You should jump in with both feet.

 

[Yussef]

This got me thinking here are two pretty well complementary problems: there are too many young people who haven't got jobs, and too many old people who have problems they can't solve. With, for example, their computers; with their piles of junk; with their ceiling light bulbs and jammed doors and incomprehensible forms and TV sets that have refused to go digital.

As I looked further into this market it quickly became apparent there really is a need here. With the elder demographic constantly expanding,and being wealthier, the elder care market seems to be a niche I haven't seen discussed on here - I guess this is because its not internet/app related! There are loads of care homes and carers already but for those who want to retain their independence and just want help with technology,lawn care,shopping etc on an occasional basis around the house there isn't as much market saturation here.

There is an interesting article on entrepreneur.com about the senior care market and the ways you could approach it.
The business concept which interested me the most out of the ones listed is the concierge service. You could start it locally build it up with peoples trust (major factor for success) and create something of real value. Sure you won't make much in the first couple of years perhaps but once the successful system is in place franchise it around the country and collect the £££/$$$!
An aging population this isn't an issue which is going away in fact its the largest growing demographic of all in the western world. In the UK there doesn't seem to be a national elder concierge service leader not sure if this is the case in the US? Aside from the concierge service you could also build up a trusted business directory of companies who don't take advantage of seniors and monetize it using a BBB type model once your brand has value.

Obviously you would have to do due diligence on people you employ but I'm sure there are plenty of young unemployed who could be interested in being either employed or contracted in on a freelance/casual basis to carry out tasks. This would leave you to get on with the logistical side of the business.
Just some thoughts but the more I think about the idea it's growing on me for possible execution :fastlane:

Would be interested to hear other peoples thoughts on this

Ok finally a topic that I have quite a bit of experience in:icon_super:. I own and operate a Home Care agency that has 2 licensed sites and serves a total of 15 counties between the 2. Yes there is a need being the baby boomer population is probably the largest segment of society now (don't quote me on this) but there are a lot of potential customers for this niche but also some unique issues that one would not think of that differ from state to state I am sure. Ironically I am heading to the office in a sec but will jump back on this thread to share a bit more of my experience and some mistakes I have watched some of my associates make that may help you out. I will also give you a couple of resources where you can get some good info that I wish I would have had when I started in 2010. BTW this is how I make my living and pay my bills so I do have first hand knowledge. Talk to you soon.

 

[Yussef]

Bro I have been trying to think of a short way to respond without making this a long drawn out reply. When I think over all of the important lessons I have learned through trial and error it's hard to decide which ones I should highlight. Let me start by just saying that there are some good resources that are essential to you running a compliant agency, like your states Department of Health and Human Service website which is where your going to go to get the licensure application and requirements. Usually this is found under the section for Home Health services on that site.

Payer sources for Home Care services include but are not limited to Medicaid, the VA, some long term disability policies and of course out of pocket. There are pros and cons with each but I will just touch on the largest which is Medicaid. After you get your company licensed there is usually a separate application and enrollment (some states even require you to take a class as well) to become an approved medicaid provider which simply means you can be reimbursed by medicaid for serving clients with medicaid.

Although the medicaid market is easy to tap into please don't make the mistake, as so many do, of allowing your entire business to become dependent solely on medicaid clients. One major reason is that the second your state has a budget deficit guess whose rates get decreased? And if your company has a 100% medicaid based clientele guess what a 2% rate cut does to your profit margin of 30%? Also as a medicaid provider you will be audited eventually by privately contracted companies whose sole mission is to find a way to recoup money from something you have documented incorrectly...And everyone makes a mistake eventually so you will need to keep a rainy day fund on hand because they usually want it in 30 days.

Hospital and rehabilitation discharge coordinators and case managers are worth their weight in gold if you can build a trusted relationship with one that will send you refferrels. I am fostering a relationship with one now that discharges an average of 15-20 per month. If you can get in good with a field coordinator from a Home Health Agency like Gentiva, Advance Home Health, Amedysis etc. that provide home therapies for many patients discharged from facilities your business will grow very fast.

Some challenges in this industry you will face that may be discouraging if you are not fully committed and tenacious as hell are 1. Discovering that the behind the scenes business of healthcare (when dealing with large institutions) is really not about what's best for the patient all the time. But your service can be the one that makes a difference in someone's life once you convince the facility to refer them to you upon discharge. 2. I don't care how educated they are many people that work 9 to 5 are creatures of habit that want to keep doing things the way they have done them and convincing them to add another step in is like pulling teeth. That goes for doctors, nurses, social workers, case-managers, hell even EDs and administrators. That will be the biggest part of your job, educating them on how utilizing your service adds to the independence and quality of life that you help enhance.

Private pay is the holy grail. We generally receive about $20 per hour per client with a minimum weekly requirement of 20 hours per week before we accept a case. CNA's and PCA are usually paid anywhere from $7.50 up to $10 per hour. Medicaid pays nowhere near that much which limits what you can pay the aides. Private pay is highly competitive and you will be competing with the franchises for that business. Right at Home and Home Instead are 2 national chains that spend kazzillions of dollars on google, caring.com, local newspapers, carrier pigeon or whatever source they can utilize to get those dollars. So you will have to get creative going after that market.

I could go on for days but a good resource to go and get some good info is the site Consulting Services | Bookstore. He sends out a great newsletter and has some good resources to help your biz grow. Hope this helped

 

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[The-J]

Yeah, there is a definite need for due diligence. My late great-grandmother (died some 10 or so years ago) had a in-home caretaker because she couldn't do a lot of her daily activities. The caretaker was a broke immigrant (which worked in her favor because both my great-grandmother and the caretaker only spoke Spanish, the caretaker having a slightly better command of the language) and after her death, it was found that the caretaker used to hit her, beat her, and take her money for herself. She even went as far as to steal her identity on occasions, as well as the identity of my other family members. We have no idea what happened to the caretaker or where she is now.

There is a definite need here, but don't brush off the due diligence portion. Do complete background checks and make sure someone is checking on them often. The elderly tend to dislike nursing homes (my great-grandmother lived till 84 or so, unable to walk or do daily activities, without ever being in a home and preferred her abusive caretaker over a nursing home), so this could blow up due to the rising age of the boomers. Best of luck to you!

 

[Yussef]

Yeah, there is a definite need for due diligence. My late great-grandmother (died some 10 or so years ago) had a in-home caretaker because she couldn't do a lot of her daily activities. The caretaker was a broke immigrant (which worked in her favor because both my great-grandmother and the caretaker only spoke Spanish, the caretaker having a slightly better command of the language) and after her death, it was found that the caretaker used to hit her, beat her, and take her money for herself. She even went as far as to steal her identity on occasions, as well as the identity of my other family members. We have no idea what happened to the caretaker or where she is now.

There is a definite need here, but don't brush off the due diligence portion. Do complete background checks and make sure someone is checking on them often. The elderly tend to dislike nursing homes (my great-grandmother lived till 84 or so, unable to walk or do daily activities, without ever being in a home and preferred her abusive caretaker over a nursing home), so this could blow up due to the rising age of the boomers. Best of luck to you!

Wow. Sorry to hear about what your great-gran went through. Agency owners like myself hate to hear stories like that which is why we try to encourage those seeking services to hire through a licensed agency. We must meet certain regulations and state guidelines to keep our license which require us to provide over-site, a set number of annual hours of training per aide, and quarterly in home site supervision by our BS/RN. Quarterly quality assurance and annual evaluations are also required. That doesn't mean you won't get a company every now and then that still bend the rules it just means you stand a better chance of avoiding rouge independent folk doing god knows what in your loved one's home.

 

[Amail]

My ex-DIL worked for an unlicensed elderly care provider. She ended up in the pokey for stealing their credit cards and identity theft. Proper oversight would likely have helped these victims. I'm a firm believer in the benefit of real accreditation for these businesses.

 

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[Yussef]

My ex-DIL worked for an unlicensed elderly care provider. She ended up in the pokey for stealing their credit cards and identity theft. Proper oversight would likely have helped these victims. I'm a firm believer in the benefit of real accreditation for these businesses.

Whatever the pokey is, it doesn't sound like a place that offers a nice continental breakfast and room service.

 

[Amail]

Depends what you mean by "Nice", "Breakfast", and "Room Service".

Seriously, Yussef, thanks for what you do.

 

[InMotion]

Find the seniors with some spending ability. In the states, if you cant pay your way in this regard you get to lie in a puddle of shit until someone notices and then cares.

 

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[awesom-o]

Services for the elderly has been projected as a major growth industry for years. It isn't sexy, but there are huge needs there, and a lot of money to service it.

The business I'm working on at the moment addresses this need as well, but not in your niche. I recognize the opportunity there, and I'm going after it.

Want to start a lucrative business in elderly services? Gain their trust and they will tell you what to do.

It's really easy to uncover needs. Go to your local retirement village and run, say, a computer class - "How to use the Internet", or "How to email photos to your family". Many of these people are barely computer literate, but know they're not using them efficiently or correctly. Do some good, and you will establish yourself as an authority and an enabler (in the good sense). You will quickly build trust, and the word will spread like wildfire, especially if you're easily accessible. You probably won't make much, if any, money teaching the computer classes. However, if you think of it as the price of admission, you will find yourself with a trusting, willing audience with money who are keen to tell you what they need.

You should jump in with both feet.

Thanks for the tips. I like idea of perhaps giving up a couple of hours a week to teach computer classes and get my name out in the community and gain trust. Interestingly I went to the Apple store the other day to pick something up and noticed they have free classes specifically for beginners - everyone around the table was 60+ comfortably. It looked like it was fully booked and guess what every single one of them had their own brand new iPads. A very clever move by Apple to my knowledge no other technology company offer this sort of thing and they are reaping the rewards because of it. I would be interested to find out more about what you're working on?

 

[awesom-o]

Bro I have been trying to think of a short way to respond without making this a long drawn out reply. When I think over all of the important lessons I have learned through trial and error it's hard to decide which ones I should highlight. Let me start by just saying that there are some good resources that are essential to you running a compliant agency, like your states Department of Health and Human Service website which is where your going to go to get the licensure application and requirements. Usually this is found under the section for Home Health services on that site.

Payer sources for Home Care services include but are not limited to Medicaid, the VA, some long term disability policies and of course out of pocket. There are pros and cons with each but I will just touch on the largest which is Medicaid. After you get your company licensed there is usually a separate application and enrollment (some states even require you to take a class as well) to become an approved medicaid provider which simply means you can be reimbursed by medicaid for serving clients with medicaid.

Although the medicaid market is easy to tap into please don't make the mistake, as so many do, of allowing your entire business to become dependent solely on medicaid clients. One major reason is that the second your state has a budget deficit guess whose rates get decreased? And if your company has a 100% medicaid based clientele guess what a 2% rate cut does to your profit margin of 30%? Also as a medicaid provider you will be audited eventually by privately contracted companies whose sole mission is to find a way to recoup money from something you have documented incorrectly...And everyone makes a mistake eventually so you will need to keep a rainy day fund on hand because they usually want it in 30 days.

Hospital and rehabilitation discharge coordinators and case managers are worth their weight in gold if you can build a trusted relationship with one that will send you refferrels. I am fostering a relationship with one now that discharges an average of 15-20 per month. If you can get in good with a field coordinator from a Home Health Agency like Gentiva, Advance Home Health, Amedysis etc. that provide home therapies for many patients discharged from facilities your business will grow very fast.

Some challenges in this industry you will face that may be discouraging if you are not fully committed and tenacious as hell are 1. Discovering that the behind the scenes business of healthcare (when dealing with large institutions) is really not about what's best for the patient all the time. But your service can be the one that makes a difference in someone's life once you convince the facility to refer them to you upon discharge. 2. I don't care how educated they are many people that work 9 to 5 are creatures of habit that want to keep doing things the way they have done them and convincing them to add another step in is like pulling teeth. That goes for doctors, nurses, social workers, case-managers, hell even EDs and administrators. That will be the biggest part of your job, educating them on how utilizing your service adds to the independence and quality of life that you help enhance.

Private pay is the holy grail. We generally receive about $20 per hour per client with a minimum weekly requirement of 20 hours per week before we accept a case. CNA's and PCA are usually paid anywhere from $7.50 up to $10 per hour. Medicaid pays nowhere near that much which limits what you can pay the aides. Private pay is highly competitive and you will be competing with the franchises for that business. Right at Home and Home Instead are 2 national chains that spend kazzillions of dollars on google, caring.com, local newspapers, carrier pigeon or whatever source they can utilize to get those dollars. So you will have to get creative going after that market.

I could go on for days but a good resource to go and get some good info is the site Consulting Services | Bookstore. He sends out a great newsletter and has some good resources to help your biz grow. Hope this helped

Wow thank you for taking the time to write this!
I'm located in the UK we don't have medicare as such but there is our national health service who do refer patients so once we have have a name for ourselves we could definitely take on this kind of work - this isn't something I had thought of previously. Some really useful information and advice from your experience also I've bookmarked this thread.

Private work was going be the focus I'm aware its going to be a tough market to get into but if you can it's highly rewarding on many levels. I see a couple of ways to run this I was wondering if you had any feedback on them? They all have pros and cons.

1) Run the service with your own employees (more control) however a this doesn't lend its self well to starting this on a bootstrap
2) Build up a database of freelance/independent carers/ services who you contract in and deploy them accordingly. This enables you to offer a wide range of service from day one however you have less control.
3) In reflection similar to 2 but contract in vetted small businesses/individuals to carry out tasks. For example if a lawn needs cutting you get a young person to carry this out for you and have a database of others who can carry out similar tasks like in home PC lessons, personal shopping, DIY (eg assemble new flat packed furniture) For larger jobs eg window cleaning,plumbers you have a list of approved companies who you get in to help and take a percentage from that.

or is there a combination of these which would work best?

 

[awesom-o]

Yeah, there is a definite need for due diligence. My late great-grandmother (died some 10 or so years ago) had a in-home caretaker because she couldn't do a lot of her daily activities. The caretaker was a broke immigrant (which worked in her favor because both my great-grandmother and the caretaker only spoke Spanish, the caretaker having a slightly better command of the language) and after her death, it was found that the caretaker used to hit her, beat her, and take her money for herself. She even went as far as to steal her identity on occasions, as well as the identity of my other family members. We have no idea what happened to the caretaker or where she is now.

There is a definite need here, but don't brush off the due diligence portion. Do complete background checks and make sure someone is checking on them often. The elderly tend to dislike nursing homes (my great-grandmother lived till 84 or so, unable to walk or do daily activities, without ever being in a home and preferred her abusive caretaker over a nursing home), so this could blow up due to the rising age of the boomers. Best of luck to you!

I'm also sorry to hear about the bad experience your great grandmother went though. It really shows the need for due diligence and to carry out extensive checks on workers.
I agree with the baby boomer generation not far off the age of requiring care this is market which will blow up in the near future.
Thanks for the encouragement also

 

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[Yussef]

Sorry I didn't pay attention to where you were from. MJ mentioned in his book that Human Resource systems have a passivity grade of C. I have to say he nailed that on the head. Having a bunch of employees is not always a good thing. But your other ideas 2 and 3 sound like good ones as well. I don't really know much about those business models but I do know of businesses that provide independent contractors with assignments and I think they do pretty decent financially. You will have to spend a little getting the word out though. Get creative. I wish you the best.

 

[awesom-o]

Sorry I didn't pay attention to where you were from. MJ mentioned in his book that Human Resource systems have a passivity grade of C. I have to say he nailed that on the head. Having a bunch of employees is not always a good thing. But your other ideas 2 and 3 sound like good ones as well. I don't really know much about those business models but I do know of businesses that provide independent contractors with assignments and I think they do pretty decent financially. You will have to spend a little getting the word out though. Get creative. I wish you the best.

Thanks Yussef :hl:

I was wondering do you know how they charge clients? Is it on a call out charge then $x per hour for the work carried out? or do you agree a set price on a retainer contract? I guess its a mixture of both?
I know it isn't all about money but when you say 'pretty decent' do you have a ballpark figure?
Thanks for your help very useful and informative

 

[Yussef]

Thanks Yussef :hl:

I was wondering do you know how they charge clients? Is it on a call out charge then $x per hour for the work carried out? or do you agree a set price on a retainer contract? I guess its a mixture of both?
I know it isn't all about money but when you say 'pretty decent' do you have a ballpark figure?
Thanks for your help very useful and informative

I really have no idea how they charge for connecting independent contractors with assignments. But if your going to use that model don't try to be all things to all people. Focus on a select group of services so that you are not spreading yourself out all over the place and you can manage customer complaints and have enough knowledge about what you do to address the problem professionally.

Plus I would imagine trying to manage cost and payouts for a laundry list of services handled by other people that you really have no control over seem like it could be a nightmare. I would advise starting with maybe 3 good services or so and learn them well so you will no who is capable of getting the job done and who is just blowing smoke up your...

Good luck and keep in mind seniors can be very finicky. They like what they like. But when they don't like something you will know.

 

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[CommonCents]

aging in place is going to booming for years, there is even a certification for it. As RE tanks people are staying in their homes longer, retrofitting it with various gadgets/aids to help. A buddy works for a walk-in tub company and they are jamming.

 

[Kak]

There are tons of people jumping on the elder care bandwagon in the last 10 years or so. I personally think that the market will be saturated when the majority of baby boomers begin having problems.

 

[fasten]

I think, it needs to provide some necessary and luxuries facilities to our elders as they really need to live independently at their stage of life. Just like some of elder care homes are providing at some reasonable prices. Along with nursing faculties according to their needs with complete privacy.

 

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[fasten]

I think, it needs to provide some necessary and luxuries facilities to our elders as they really need to live independently at their stage of life. Just like some of elder care homes are providing at some reasonable prices. Along with nursing faculties according to their needs with complete privacy.

That,s what i think about the topic, what you think? Please do give your ideas and suggestions