Franchising statistics
GROWING OPPORTUNITY
We’ve said it before: Australia is an ageing population, and the seniors market has lots of business potential. The Wall Street Journal agrees there’s money to be made in this sector, citing US Census predictions of growth for the 65+ age group at 23 per cent over the next five decades.
On our shores, the government is looking to strengthen the way residential aged-care funding is determined. A report, Alternative Aged Care Assessment, Classification System and Funding Models, has been released by Federal Minister for Aged Care Ken Wyatt, who says the Australian government contributes about $17.5 billion a year to the aged-care sector.
“By 2019-20, that’s expected to be nearly $21 billion,” Wyatt says. “It’s important we review the way we fund aged care to ensure we create a system that is affordable, sustainable, flexible and responsive to consumers.
“In 2015-16, more than 1.3 million older people received some form of aged care, and with more Australians living longer and healthier lives, those numbers will increase.”
And that means value-for-money for aged-care services is a priority.
Regulation reforms came through on 21 February, which means seniors who are eligible for government-funded services to stay at home can now choose their care.
“We’ve been advocating these changes for 10 years,” says Martin Warner, who heads up the Australian franchise arm of Home Instead. “It’s a win-win. It gives consumers choice and control – if they are not getting value for money they can go elsewhere.”
Better efficiencies are making a difference, he says.
“The taxpayer is ultimately funding this, and they are getting better value for money. Families win too, as they are usually responsible for handling seniors’ needs.”
Warner highlights the greater level of transparency that comes with the new system, with clients now receiving monthly reports on where the money has been spent.
“It hasn’t changed the world overnight, but over time I suspect you’ll see a shift in numbers and the less-traditional companies taking a bigger share.”
While the market has opened up, it isn’t about to provide easy pickings for the opportunistic, he says. Running a home-care services business will take more than a transactional or task-based attitude. It is an opportunity suited to people who really want to make a difference in people’s lives.
“This is about relationships, and it takes time – time to build trust in the community.”
Warner expects some of the businesses that enter the arena to fall by the wayside as they fail to meet the standards required as far as service is concerned.
“Corporate governance doesn’t mean you are providing the highest care,” he says, warning that it is a complex business.
BRAIN POWER
MENTAL HEALTH UNDER PRESSURE
Franchise buyers are like any small business owner, susceptible to stress and negativity.
The Australian Small Business and Family Enterprise Ombudsman has published online resources and links to raise awareness of wellbeing issues.
Ombudsman Kate Carnell says it can be tough starting and growing a small business, with long hours and a tight cash situation.
“You have to constantly overcome obstacles,” she says.
“The results of our payment times inquiry found the stress of late payments, cashflow and debt affected the wellbeing of more than three-quarters of smallbusiness owners surveyed. In fact, 93 per cent reported personal and family hardship as a result of late payment.”
Carnell says good mental health is critical to the success of a business.
Suncorp’s new SME vs Me report found that the owners of small and medium-sized businesses were blurring the lines between their personal and business finances, which impacts their wellbeing.