How to build a business on caring for the elderly. History of Right at Home.
An elderly farmer whose daughter worked in the navy and could not provide her father with decent care, named Art. His requirements for a person helping with the housework were not at all trivial: in addition to ordinary help with purchases, the person had to be able to drive a 1959 Chevrolet truck with a steering column gearbox and three speeds, since the farmer dreamed of daily inspections of his own possessions.
Allan recalls that when he heard the client’s demands, he couldn’t even imagine that he could find such a multifunctional assistant who could manage the economy and drive a truck. But “patience and work” helped Haiger not stop halfway and find such a person – long telephone conversations, a lot of calls and failures, in the end were crowned with success!
For many years, Art has been a grateful client of Right at Home.
This incident occurred about 20 years ago, but allowed Hager to once and for all understand his “secret of success.”
In life, Allan Hager tried many professions – he worked as a hospital administrator, was educated as a nurse, and before opening his own company he worked in this area to better feel the nuances of the profession and understand its subtleties.
Right at Home today provides older people with a wide range of services: cleaning assistance, shopping assistance, and nursing home care.
The company’s head office is located in Omaha, and there are branches in eight countries of the world; about 400 the world provide elderly care services. Over the past year, the company’s revenue amounted to approximately $ 265 million. Also in 2013, the company was able to carry out capital optimization and reduce costs by $ 17 million.
Worthy old age – a fairy tale and reality in one company
This year, Right at Home took second place in the Forbes franchise rating with an initial capital of up to $ 150 thousand.
What is the difference between Right at Home and its competitors? What is the secret to success?
The main distinguishing feature is the compulsory training and development of company employees. Right at Home provides its customers with exclusively qualified carers with experience. At the same time, competing companies often provide customers with only personal assistants, without special education and skills.
In the past 5 years, Right at Home has been actively exploring international services markets – the first franchise appeared in England in 2009, then representative offices appeared in China and Brazil.
Although these steps can’t be called global conquest of the market, we can safely say that Right at Home is finding its own path that will help provide quality home care to older people around the world. In the United States, most families live separately, and matured children, who have often become parents themselves, are far from always able to give due attention and care to their elderly parents – in this case, Right at Home comes to the rescue.
In addition, home care is becoming increasingly popular and has even been proposed for inclusion in medical policies as a separate point of the services provided.
The rapid aging of people born during the “baby boom” of the mid-20th century, and a high standard of living will inevitably lead to the fact that by the middle of the 21st century the number of people over 60 years old will exceed 2 billion people. Already, there has been a rapid growth in the market for home care services for elderly people – over the past 5 years, the market has grown by 70%, increasing to $ 30 billion.
At the moment, the company provides services, regardless of state and insurance payments, all services are paid by customers, as the company provides services that are not covered by medical insurance.
Ben Solomon, who opened a representative office in Seattle in 2004, talks about his ten-year experience with Right at Home. Right now, the Right at Home franchise business is worth $ 125,000, the smallest part of this money, $ 45,000, is spent on licensing fees, and the rest is on office fees and recruiting the main “backbone” of marketing staff, headhunters and planners.
Prior to this business, Ben was engaged in the sale of dietary supplements of drugs and organic products, but somehow he saw his neighbor crawling on all fours to his mailbox and several times fell along the road.
At this point, Solomon realized that his future career would be related to caring for the elderly. Having studied the franchises offered on the market, he chose Right at Home, which offered two-week training for its new employees.
After choosing a franchise, Ben Solomon was faced with the fact that the number of qualified personnel in Seattle allows us to wish for the best. This was especially noticeable when looking for people who would have to look after the elderly for several years in a row.