For many seniors, the golden years represent a period of
relaxation--a breath of fresh air after a lifetime of work and
responsibility. For today's entrepreneurs, meanwhile, the
golden years also mean a golden opportunity. Visible on the horizon
is an unprecedented demand for senior care, as the first wave of
baby boomers turns 65 in 2010. Born between 1946 and 1964, this
unique market will soon push the number of Americans ages 65 and
older to 39 million. And as America grays, the senior-care
franchise industry is gaining new life.
In the next 30 years, the number of people 65 and older is
expected to double, and the number of people over age 85 will
triple, according to James Firman, president and CEO of The National Council on the
Aging, a nonprofit advocacy organization dedicated to improving
the health and independence of seniors. "There will be a huge
expansion in the need for services to help people stay at home or
in whatever facilities they're in," he says. The
senior-care industry will "definitely be a major growth
industry."
And growth in the demand for senior care should stay vital for a
while--seniors aren't just increasing in numbers, they're
also living longer. According to the U.S. Census Bureau, the
average life expectancy in 2000 was 74 years for men and almost 80
for women, compared to 66 years for men and 72 for women in
1950.
Changing Lifestyles
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The true impact of the aging of the baby boomers won't be
felt for several years. Yet, due to Americans' changing
lifestyles, senior-care franchises already have their hands full.
Seniors are depending less on their families and more on outside
resources to receive the help they need. Comfort
Keepers and Home Instead Senior Care, which each operate more than
400 locations nationwide, are just two examples of franchises that
offer the elderly nonmedical services such as companionship, meal
preparation and transportation. Comfort Keepers reported franchise
growth of 17 percent in 2003; meanwhile, Home Instead's total
number of franchises grew by 24 percent.
The America that existed a century ago is not the same as the
America of today for seniors, due to economic issues, mobility and
people choosing to have children later in life. Traditional family
structures have changed dramatically. According to the Bureau of
Labor Statistics, there were almost 29 million married, dual-income
couples in 2002. These numbers have generally been on the rise
since the federal government started tracking them a decade ago.
For seniors, this means less help from family members who are busy
working. "Most care providers of this type of service are the
family members themselves," says Jerry Clum, who co-founded
Comfort Keepers with his wife, Kris, in 1998. And, says Jerry, the
dual-income trend is "placing a great deal of stress and
difficulty on these families."
Another trend that's increasing the need for senior care is
the mobility of Americans. Education and careers often lure the
younger generation away from their parents. "Family members
aren't as near to each other as they used to be," says
Jerry.
Another factor affecting care for elderly relatives is that many
baby boomers have in fact waited longer to have children, says
Firman. Consequently, a new generation has emerged, known as the
"sandwich generation." "In the typical American
family, people in the 40 to 55 age range have children and the
elderly to take care of at the same time," says Paul Hogan,
who founded Home Instead Senior Care with his wife, Lori, in 1994.
"That's causing a strain."
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