Issue link: https://www.epageflip.net/i/12350
Tuesday, June 22, 2010 – Daily News – 5A HACKENSACK, N.J. (MCT) — Entrepreneurs with an eye on the aging demographic are starting up businesses to capitalize on the growing senior citizen population. The need for services is clear from their own experi- ences, government statistics and in their own neighbor- hoods. However, finding cus- tomers remains a challenge. "I know the road that the families go down," said Patri- cia O'Hora, a registered nurse. In December, she opened a senior-focused day care center, Senior Connec- tions LLC in Waldwick, N.J., after spending three years as a home health caregiver in nearby towns. "People are really in a crisis of what to do with their elderly family member," she said. A crisis that will likely worsen. In 2007, the U.S. Census Bureau reported 12.5 percent of America's popula- tion was 65 and older. By 2030, that is expected to jump to 19.6 percent. Many start-up companies that have been launched in the past two years are in demand because older par- ents need regular help. Their children, often parents them- selves, are trying to avoid using nursing homes. Census statistics and situ- ations of adult children have motivated entrepreneurs to buy franchises that provide home health care aides. Six franchises of Gurnee, Ill.- based BrightStar Healthcare opened in northern New Jer- sey, where the elderly popu- lation is steadily growing, since 2009. A franchisee's ALSCO, INC. Since 1948 535 Antelope Blvd., Red Bluff (530) 527-4001 • PVC PIPE & FITTINGS • LAWN AND GARDEN SUPPLIES • DESIGN & INSTALLATION ON ALL SHAPES & SIZES OF IRRIGATION PROJECTS • AGRICULTURE & DOMESTIC PUMPS Clint Heiber & Russ Harman owners Lic#381307 8am-12pm Mon.-Fri. 8am-5pm Sat. • ORANGES • GRAPEFRUIT • MANDARINS • LIME • TANGERINES & KUMQUATS HAPPY VALLEY 440 Antelope Blvd. #12 25 years professional experience. 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Lb. www.LassenMedical.com Agrowing market: Start-ups find seniors tough to sell on health services places. initial investment ranges from $102,483 to $183,793, according to the company's website. Jerry Heit and his wife, Renee, opened a home health-care franchise, Com- Forcare Home Care, in Hackensack, N.J., in Febru- ary 2009 mainly based on their reading of census data. Howard Sislin opened his franchise in Wayne, N.J., in September for the same rea- son. "It reinforced that folks who are staying at home are an older population," said Heit. "And we believe the need for this kind of service has grown and is growing." O'Hora opened her busi- ness after seeing the needs as a home health caregiver. "These people don't have any socialization, no stimula- tion," said O'Hora. Amy Fuchs, a licensed clinical social worker, had seen such an increase of younger senior patients who had fallen at home coming into the rehabilitation center she worked at in Manhattan. She started The Elder Expert LLC in Upper Saddle River, N.J., in 2008. Fuchs now helps families find rehabilitation, assisted- living facilities or local senior centers, assists them in understanding Medicare and Medicaid rules, and helps write health-care proxies on future care preferences such as advance directives. She also will check in on home health aides for distant fami- lies. Despite the census data, finding customers is a chal- lenge for the start-ups. Renee Citrus Trees ARE NOW HERE! She has 20 regular cus- tomers and does five to eight rides a day, but believes she's not serving enough people. What's worked best has been a complementary arrange- ment driving clients to and from O'Hora's center. O'Hora also thinks there's more out there than her eight to 12 regular clients. An attempt to buy a direct mail list of seniors failed when the business selling the list didn't like wording on her litera- ture. Entrepreneurs say after MCT photo Patricia O'Hora, right, watches as Kate McLaughlin, center, helps Helen Van Rosseum into her adult transportation van at Senior Connections, an adult day care center in Waldwick, NJ. Heit, who co-owns the Com- Forcare franchise, compares selling home health-care ser- vices to selling real estate for 25 years. "You're asking for busi- ness here as well but it's not quite as straightforward," said Heit. "This requires much more of building relationships with people who become referral sources." Referral sources, said Heit, are social workers at rehabilitation centers, hospi- tal staff who recommend home health-care agencies and assisted-living facilities. Other sources include elder- care attorneys and doctors. A tactic Sislin has begun is co-sponsoring continuing education seminars for social workers to earn credits to help him start relationships. John Salomone has just started tapping potential cus- tomers for when he opens Caring Transitions of North Central New Jersey later this month in Morristown, N.J., to help seniors reduce their belongings before moving. He participated in a busi- ness-to-business event at Cedar Crest's continuing care complex in Pequannock to build referral sources among management and residents because buyers have to pare before moving in. "If you're dealing with seniors in a community structure, they talk to one another and form their own alliances," said Salomone, otherwise, he said, "you're not going to get their cooper- ation." The independent start-ups are finding they have to learn the ropes themselves and be creative. Kate McLaughlin started a senior-centered driving ser- vice, BandWagon LLC in Franklin Lakes, N.J., last December, after hearing from town officials and church members that the elderly needed rides to local finding referral sources, the next challenge is to cultivate their trust. Patricia Preztunik, who opened BrightStar-Bergen County in September 2009 in River Edge, N.J., is spon- soring an upcoming Alzheimer's Walk and sits on the boards for health-related organizations in Bergen County. "Local reputation in this case matters more than any- thing, so you have to be engaged locally," said Prez- tunik. "When people see how you actually work, part of the judgment they form is whether they will give your name out as a referral." Many of the start-up own- ers were caretakers and/or decision-makers themselves such as BrightStar Skylands franchisee Bob Bongiorno and O'Hora, who both had relatives afflicted with Alzheimer's disease. They believe that will help them gain trust.