In today’s episode of A Drink With The Hurricane, Steve breaks down the 3 parts of the home care business sale and the importance of each one.
So we just wrapped up a meeting in our office. We discussed the importance of clients and potential clients understand the three sales that have to be made in order to be successful in your home care business. And what do I mean by that, the three sales? So let’s write this down.
The first sale that we have to be able to do to be successful, is we have to sell our referral sources.
1 ) Referral Sources
Why do we have to sell referral sources? Well, when you look at the home care polls report, and you look at all the different ways to generate clients, there’s direct to consumer marketing, which is paying big time advertising dollars, or there is direct referrals from physicians, social workers, nurses, discharge planners, case managers and so on. And from a home care business standpoint, direct professional referrals gives you your biggest return on investment.
So the first sale that has to be made, before we do anything, is you have to have inquiries coming in. And so direct referral marketing is the first step in the process.
The second sale, and unfortunately, we don’t make money just yet. We spend all this time and effort just to get the referral, but there’s no guarantee in return yet. We don’t make money yet from this sale. The second sale that we have to make is for caregivers.
2 ) Caregivers
We have to successfully be able to persuade and sell caregivers on why they should work for us and for our company. Now this is so huge of an issue, that this is a crisis. There are not enough caregivers out there. We can’t get enough caregivers, and this is a full-time job in itself. And the worst part about this is this doesn’t put revenue in our pockets, this doesn’t put revenue in our pockets. But we have to have a steady flow of inquiries, and we have to have a steady flow of caregivers.
And this is both a full-time effort. We have to constantly be marketing. We have to constantly be hiring caregivers. And this doesn’t even get me started on retention of caregivers and everything else, because that’s its own part of the business. But these are just the three sales of home care.
And finally, finally, the one that actually puts revenue in our pocket, and that’s the patient.
3 ) Patient
Once we finally, we get a referral, we have a caregiver, now we have to sell the client on why they should go with us versus the 200 competitors that we have. And then if they decide to go with us, this is finally when we get that ROI, the return on investment.
In order to get this, we have to have the first and second sales completed. And we have to master them. And so for all of my following out there, if you’ve been in business for five, 10 years, and you can’t figure out, like why is this thing not going right. I say, what does this look like for you?
Because, yeah, we may be able to sign up a client, but we can’t staff it, we got an issue. We don’t have any referrals coming, or we have one client, great. That client passes away, now we lost that client, and there’s nothing else to replace that client, what does this look like?
So to anybody who’s thinking about getting into this business, realize that home care, although it’s an amazing business to be in, and I kid you not, it’s an amazing, rewarding business to be in. It is also one of the most difficult, challenging businesses that you could have, because you have to have a three-part sale, and two parts established.
This takes three to six months to get this part going before you start getting your return on investment. So if you wanna open up a home care business, you’re gonna need at least $50,000. If you wanna buy into a franchise, which for some people a franchise is not the right idea, and other people it is the right thing to do, but if you wanna do that, then you have at least 100, $180,000 between 100, 180.
So you have at least a years worth of operating income to get these two going so that you can sign on new patients and then get your return in the second year in business. So I really wanna paint this picture so everybody sees this and everybody understands. Home care is a great business, it is a difficult business, but once you understand these three sales, and you’re good at doing all three of them, that’s when you generate the revenue. That’s when you get your return on investment.
All right, and if you need help with this, and understanding this, and how to be able to do this, give us a call. We’re here to help you, we’re here to serve you. We want you to be able to dominate so you can BLOW AWAY THE COMPETITION.