Age might be more than just a number, but when it comes to understanding the potential of the senior-care industry, the numbers say it all. According to the National Institute on Aging, an organization whose mission is to understand the nature of aging and extend the active years of life, approximately 35 million Americans are age 65 or older, and that number is expected to double in the next 25 years. In addition, people age 85 and older constitute the fastest-growing segment of the U.S. population: About 4 million people are currently in this age group, and that number is expected to grow to 19 million by 2050.
With the average life expectancy longer than ever and more Americans expressing the desire to age at home, the need for in-home assistance is thriving. "This is about demographics, and we can only take credit for being at the right place at the right time," says Leo Landaverde, 37, a former vice president at a staffing company who opened a ComForcare Senior Services franchise with his wife, Sandra, 38, in North Hills, California. Since opening in 2003, they have already built their system up to more than 250 employees, serving about 500 clients. They were also the recipients of ComForcare's 2007 Franchise of the Year Award and currently operate the largest ComForcare franchise in the country. Sales are growing, too, with a 2008 projected increase of 15 percent over last year's $3 million.
The franchise gave the Landaverdes a helping hand and the freedom to implement new ideas, which has helped them grow their business exponentially. Always looking to expand their services, Leo and Sandra regularly research and introduce new services, such as giving veterans the resources to take advantage of the Veterans Administration Aid and Attendance Benefits program, as well as offering care for children with disabilities.
If senior care appeals to you, keep your finger on the pulse of the industry. The sector has already begun to evolve with wider use of technology, specifically for monitoring and communication purposes, says Merrily Orsini, founder of senior-care management company ElderCare Solutions and managing director at Corecubed, an integrated marketing communications agency that tailors many of its products to helping private-duty agencies succeed.
A lack of adequate staff members has many looking to technology to supplement care, says Orsini, whether it's developing web-based programs (Lotsa Helping Hands helps family and friends schedule care) or specializing in in-home adaptations to reduce the hours of care required. (National Association of Home Builders recently introduced a Certified Aging-In-Place Specialist designation program.) "Pay attention to what the customer is requesting, and look for niche needs that currently aren't being met," says Orsini, who also sees opportunities in creating planned retirement communities. "It's important to understand that this burgeoning demographic bulge just now beginning will change the landscape of the industry incredibly, and solutions that haven't yet been imagined will be in place in the next 10 years."
Children's Services
The economy can plummet and gas prices can skyrocket, but one thing remains constant: Kid-focused businesses are continuing to grow. Even as purse strings tighten, spending on kids—from their tutoring to their art classes—remains generous. "Parents will scrimp on items for themselves to get the best for their children," says Jennifer Ferguson, consumer insights and research director at Creative Consumer Concepts, an integrated, kid-focused brand marketing agency. Ferguson also notes that the market is being fueled by doting grandparents who have become increasingly involved in their grandchildren's lives.
Child enrichment and child fitness businesses in particular are enjoying healthy bottom lines. Having tapped into both segments, Albert Diaz, 49, and his wife, Maria Fernanda Diaz, 40, are perfectly positioned to ride the wave. In 2003, they opened a FasTracKids franchise, which offers a specialized curriculum in 12 subjects. They were so encouraged by the success they experienced with educational enrichment that they shifted their focus to physical enrichment. Two years ago, they introduced their Rye Brook, New York, community to JW Tumbles, a children's gym specializing in physical development. Because of the well-tested programs already put in place by the franchisor, the couple has been able to open two additional JW Tumbles locations and expects sales for the three locations to reach $1.5 million this year.
