The Money Side – Home Caring Franchise

Your Investment

The initial investment depends on the location that interests you and the likely costs of fitout of your premises. The potential return will also depend on whether you can fund the business yourself or whether you will need finance.

Your initial investment will consist of the Initial Franchise Fee, Induction Training Program and Initial Marketing fund. A number of items, such as office equipment and motor vehicles can be leased to reduce your initial investment.

Other items to consider will be for field supplies for your carers, office Fitout, signage, IT software, phones, internet connection, marketing material, cost of licence acquisition and insurance pre-payments.

Additionally, you may have to fund rent in advance and deposit a rental bond. You will also need to factor in the costs of obtaining legal, accounting or business advice, costs of setting up a company, the costs of drawing up the legal documentation and the amount of working capital required while the business gets to a break-even situation.

A complete breakdown of these costs will be made available at a later stage of the enquiry process. However, we estimate the total investment including all the above to be between $160,000 and $240,000, assuming you will be leasing vehicles and equipment.

Joint Venture Opportunity

Home Caring will be offering a joint venture franchise to selected applicants on a 50/50 basis, so if you are going to take advantage of that opportunity, your initial investment will only be half of the previously mentioned figure.

The other significant advantage of this model is that the franchisee will be paid a salary from the joint venture franchise, which will certainly take away the worry of whether there is enough income to meet your personal financial requirements.

A joint venture offers the significant advantages of a reduced investment amount, a regular income, an ongoing share of the profits and growth in the value of the business.

Profitability

As part of the recruitment process you will be provided with a template for a Financial Model which we will go through in detail. You should also use this model with your professional adviser/s, so that they can see how the business model works. We will give you information about the performance of existing businesses so that you have a guide for completing the Financial Model.

The model incorporates the income streams available to a franchisee with the ongoing costs of supporting the clients with home carers.

We understand that as a new franchisee, it will take time to grow the business from day 1, so a ramp up scenario is included. The model also allows you to look at the growth figures you could achieve and see what happens over the 5-year period.

The model allows you to forecast what your expenses may be. For rental costs, it may not be necessary to open an office immediately, but after an appropriate time when you start to employ other people to help operate the business.

The model can determine the number of support staff required depending on the growth of the business, which will ensure that you have sufficient people to offer the highest quality service to clients.

The financial model will provide full details of the earnings of the business for a 5-year period and will provide the Return on Investment you could enjoy, as well as look at the possible future value of the business, if you decided to sell.

What to do next

Browse through the other pages on this web site and if you are interested in getting more information, please complete the enquiry form on the Contact Us page.