Do You Have Enough Working Cash to Live on While Your Home Care Franchise Gets Up and Running?
You’re looking into purchasing a home care franchise. Maybe this has been a dream of yours for a long time. It’s a wonderful operation, especially when you find a quality company that sells those franchises. It’s going to take a financial investment to get started, but you’ll want to make sure you don’t leave yourself short on cash as you get this operation up and running.
How much working cash will you need?
Every business is different, but the less working, available cash you have, the more trouble you might face as the weeks turn into months. Why are you going to need working cash? Every business, every brick-and-mortar business, that is, has to have some type of cash reserve to avoid extra strain and pressure on the owner.
When you first open your home care franchise, you will have to follow the rules and regulations set forth by the company. You will also need to consider hiring people to work for you. You’re not going to be a one-person operation as you own a home care franchise. You may be able to take care of much of the administrative issues yourself for a while, but you will need caregivers and possibly other employees quickly.
When those caregivers and other individuals start working for you, they need to get paid. You won’t be seeing the revenue right away, so you have to have some type of available cash flow or reserve cash to pay these initial expenses.
You also have to consider marketing.
While the franchise company will certainly provide valuable resources to help you get things up and running, you will still be responsible for marketing your new agency. Advertising in the newspaper may not be the most efficient, but reaching out to hospitals, doctors, clinics, and using other resources, like Internet marketing could be. All of that requires some investment in time and financial resources.
To answer this question best, it’s a good idea to ask the franchise company. They will be able to offer you clear insight into what the average franchise requires regarding related expenses during the initial weeks and months of operation. Once you get past those first couple of months, though, the revenue will be coming in and you should be able to start turning a profit quicker. That will allow you to focus your energies on what drove you to open this home care franchise from the start: helping people.
If you have questions about franchise opportunities with Golden Heart Senior Care Franchise, please contact our office at 1-800-601-2792, or check out our form at https://goldenheartfranchise.com/apply-now/.