One of the most in-demand healthcare services in today’s market is the elder care franchise. With an aging baby boomer population, the elder care industry seems to be experiencing the biggest boon of any healthcare sector in today’s services field. Starting up any business carries inherent risks for entrepreneurs. From a poor location decision to lack of need and beyond, there are a host of reasons that a new business can fail. However, when it comes to opening an elder care franchise, there are two mistakes that smart entrepreneurs should absolutely avoid.
Lack of Funding
Entrepreneurs who start a new business often fail due to lack of capital. This is no different when it comes to opening an elder care franchise. Running out of money comes from poor planning in the beginning stages of the business. To avoid running into serious funding troubles, make a plan before you start your business and stick to it once you’re in the thick of it. Map out a realistic timeline and plan of action with input from those who’ve been in your shoes. Advice from experience business people in your industry can be the difference between failure and success.
- Pad Your Budget. This might sound simple, but building in some emergency funds when it comes to opening a business is key. You can plan for the worst but sometimes not the unexpected. When unforeseen issues arise that require investment, your emergency fund can save you and your business.
- Insane Overhead. Don’t allow your overhead costs to get out of control. Let your revenue dictate your hiring practices and overhead costs. In love with a large space but can’t really swing the rent, downsize! It’s simple: Don’t spend more than you have or bite off more than you can chew.
- Lots of Borrowing. If you can’t realistically open your elder care franchise with a lot of your own capital, then don’t open one. Starting out your business with loads and loads of debt is a bad plan. Many businesses fail because they borrow too much money, mismanage it, and then end up not being able to repay loans.
- Separate Funds. Don’t mix personal funds and business funds. Not only does it make for really messy and complicated accounting – the IRS doesn’t look kindly upon it either. Just don’t do it!
Failing to Plan
We’ve already touched on this briefly, but one of the biggest mistakes that any business can make – whether an elder care franchise or an antique shop – is failing to make a business plan. Creating a business plan will not only guide your decisions and keep you on track during start up, it’ll make you think about the future of your business. Starting an elder care franchise can be incredibly exciting but also a bit overwhelming. Don’t get stuck in the thick of opening and fail to see what lies beyond your ribbon cutting. Starting with a sound plan can save money and time when it comes to opening your new venture.