Home Care vs. Other Industries

Commercial and residential cleaning companies serve a range of industries. These companies may clean office buildings, medical facilities, warehouses, schools, hospitals, restaurants and residential homes. According to IBISWorld, the janitorial services industry has grown at an average annual rate of 2.1% from 2015 to 2020. The market size is currently $64 billion.

Though the cleaning industry has experienced growth over the past few years, demand is currently declining. Today, more people are working and studying at home, reducing the need for commercial cleaning services. Whenever the economy declines, homeowners may be less willing to pay for cleaning services or forgo it entirely. 

The home care providers industry grew at an average annual rate of 2.2% from 2015 to 2020. Its market size is much larger than the cleaning industry at $97 billion. It’s also considered one of the fastest-growing health care industries in the country and will continue to expand as the population ages.

Neither the cleaning nor home care industry requires special skills or prior experience. You should consider what each job entails. As a cleaning franchise owner, you won’t have much variety regarding the services you offer. You’ll also be competing against over a million janitorial service businesses. With home care, you’ll be competing against fewer than 500,000.

Lastly, consider the impact of your business and whether it will be rewarding. Buying a franchise requires time and money, so it’s worth choosing an industry that’s meaningful to you. Although cleaning is important, consider if you want to work with people directly. If so, you may find home care more fulfilling.

If you’ve always dreamed of owning a gym and helping people get fit, you might be thinking about buying a gym franchise. However, even if you have a passion for health and fitness, you’ll want to pause before investing in a gym franchise.

Presently, the gym and fitness franchise industry is not looking too bright. As IBISWorld reports, the industry is currently declining, and many establishments had to close their doors. The market size is significantly smaller than the home care industry, at $3 billion. Although experts predict the gym and fitness industry will grow in the future, you’ll want to consider if it’s worth the risk.

Home care isn’t as strongly impacted by the economy or other external factors. For many older adults and their families, home care is necessary no matter what’s going on in the world.

There are other critical aspects to consider if you’re thinking about buying a gym franchise. First, some gym franchises require a substantial investment due to the cost of equipment and a large retail space. A home care franchise costs a fraction of that amount. At HomeWell Care Services, for instance, the average upfront investment ranges from $96,400 to $221,800.*

Regardless of the costs, a gym franchisor will want you to be consistent with their brand and offer services their customers expect. Therefore, you’ll need to make sure your facility is up to par and your employees are trained accordingly.

A home care business involves much lower entry and overhead costs. You won’t need to rent thousands of square feet or fill the space with expensive equipment. Since your staff will provide services to clients in their homes, you won’t have the expenses associated with a large brick-and-mortar business.

Deciding whether to buy a home care franchise or a health care franchise looks tricky at first glance. Both involve providing care and compassion to other people. If you’ve always wanted to help people and also want to make a profit, it’s understandable if you feel drawn to both options.

However, there’s a big difference between home care and health care franchises, which you’ll want to consider carefully. Health care franchises may include eye care, urgent care centers and hospice services. These businesses require licensed medical staff, such as nurses and physicians, to deliver services to patients. To start a health care franchise, significant industry with the medical industry may be required.

Meanwhile, you do not need a medical background to be successful in home care. Home care does not involve medical services, like changing wound dressings or drawing blood. Instead, home care employees focus on assisting their clients with daily living activities. The goal of home care is to help clients live safely and independently in their homes and provide companionship.

If you’re worried you don’t have the skills to own a home care franchise, know you won’t enter the industry blindly. Your franchisor will give you the training you need to excel as a home care franchisee. For example, at HomeWell, we offer step-by-step support, industry education and ongoing training. Our approach enables you and your staff to put your passion for helping others to work without a medical degree.

Health care franchises may also involve much higher startup costs than home care businesses. For example, an urgent care franchise might require an initial investment of over a million dollars. With an urgent care franchise, you’ll need to buy or rent a large space so you can have a waiting room, triage area, exam rooms, restrooms and offices. The American Academy of Urgent Care Medicine recommends 3,000 square feet for an urgent care center. You’ll also need to purchase expensive equipment and employ licensed medical staff to get started. With a home care franchise, your startup and overhead costs will be much lower.

A restaurant franchise may include fast-food restaurants, cafes or full-service establishments. Restaurant franchises offer instant brand recognition, which seems like an attractive feature. However, that doesn’t mean a restaurant franchisee will make a substantial profit.

Owning a restaurant comes with many risks, even if you operate under a well-known name. Any restaurant can be affected by changes in the economy, consumers’ tastes, industry trends and currency fluctuations. 

Home care franchises are less affected by those external factors. For many older adults, being able to live safely in their homes is a priority, and they are willing to pay for home care services no matter what.

Restaurants also need a great location to be successful. Location is the primary reason around 60% of new restaurants fail. With a home care franchise, you travel to your client’s homes within a given territory. You don’t need to worry about opening your business in a high-traffic location or paying for a property in a highly desirable area.

Perhaps one of the biggest deterrents to owning a restaurant franchise is cost. Many restaurant franchises require an initial investment of hundreds of thousands of dollars. Some require over a million dollars to get started. In addition, you’ll also need to cover a long list of costs to operate a restaurant franchise including rent, utilities, kitchen equipment, product inventory and many other expenses related to managing a brick-and-mortar establishment.

The restaurant industry is highly competitive. As a restaurant franchise owner, you may be competing against hundreds, maybe even thousands of other restaurants in your area — including your own brand. Although home care isn’t without competition, it is an in-demand industry that’s expected to continue growing.

Overall, owning a restaurant is risky business. If you want to make a more sound investment, a home care franchise is an excellent option.