My husband and I are in the planning stages of moving to a rural acreage and starting a small farm. Nothing grandiose just a vegetable garden, a cow and some chickens to keep our grocery bill down. I homeschool my two oldest children also. My husband and I would like to work from home and are looking into buying a franchise in the senior home care industry. My question is do any of you with experience feel that the homesteading lifestyle would be compatible with the home business mentioned above? Also do any of you have experience with franchises?

Thanks for any advice, Rita

-- Rita Dickens (mama2four@earthlink.net), October 12, 2001

Answers

Give more infro about the type of senior citizen franchise you are considering. If you are out in the country too far most senior based business might not work out. Seniors need medical care and lots of other things and some times quickly. There are three more farms up for sell around me just in the past couple of weeks the owners are getting older and can't keep up the farm work or feel they need to be closer to medical attention. Every time this comes up the wife looks at me and I tell her again just bury me in the garden it needs the fertilizer. A friend of mine and his wife decided since she was the manager of a highrise for elderly and he did the manintance they would open their own buisness and care for elderly that needed more care than the apartment building could do. They bought a large home redid it to meet all regulations spent lots of money and hard work but it just didn't become a success. They now are just living in the house, its a little large for them but its theirs. Be careful in buying a franchise be sure you really check it out and talk to others that are owners of the same franchises and not company pawns.

-- David (bluewaterfarm@mindspring.com), October 12, 2001.

It is basically a business doing what these people's children should be doing. Since large families have been on the demise and many peoples children live far away, this business would provide a little help (non medical) in thier every day living i.e. grocery shopping, laundry, checking in on them, tuck ins, phone calls, etc. It would also be good for new mothers or others who are in need of a little TLC and have no one to give it. It would be outside of a college town, so I don't think finding adequate help would be a problem. I am thinking of starting in a community of about 65,000 which has an elderly (over 65) pop. of 12%

-- Rita Dickens (mama2four@earthlink.net), October 13, 2001.

why buy a franchise? why not just start that kind of business yourself, be your own boss and save the franchise money???????

My husband runs a handyman business but is basically mostly a small time contractor. You wouldn't believe some of the jobs that elderly ladies call him to do! Little ladies will call and say they want on his "widow's list" because others tell of how he comes and fixes things for them. He is a licensed electrician so can fix outlets, install lights, install ceiling fans and all that but he's done everything from building porch steps and railings to plowing a woman's rose garden to putting batteries in all a woman's smoke detectors to putting plastic on a back porch.....

He fixes small plumbing problems too, but just small ones like leaky faucets, etc. He could stay busy 24 hours a day if he wanted to. And we live in a rural area outside a town of about 5000 people. He started the business in June 2000 and we wish he'd done it 20 years ago!!!

He has no long commutes like he did with his previous jobs so he is at home much more, often coming home for lunch.

-- Suzy in Bama (slgt@yahoo.com), October 13, 2001.

I agree with Susy, this is a business you could easly start out on your own. Use the money for the franchise on operating capital, and don't forget insurance. The people you are going to be helping never see their children but if some how one was injured while you were helping, the children and their lawyers would be there before the dust settled. Sounds like a good idea, take it slow, and cover all bases. Remember you have to keep a business relationship with your customers and you have to be paid. Otherwise you will end up running a charity organization, fine if you can aford it. Best of luck

-- David (bluewaterfarm@mindspring.com), October 13, 2001.

From my free e-book: How to Earn Extra Money in the Country. Available on request, but cannot be sent to hotmail.com accounts.

EXTENDED FAMILY SERVICES:

In many areas it is not unusual to find elderly per-sons who can fairly live well by themselves but have no immediate family available to help with their day-to-day needs. This opens the opportunity to offer ‘extended family’ services on a contractual basis. Services which can be provided may include providing transportation to and from grocery and other shopping; light housecleaning; menu planning with emphasis on microwave cooking and assistance in such areas as interpreting insurance policies or forms; selling of a residence and moving into a nursing home or retirement village; paying bills and helping to keep track of their finances; helping them in writing letters to family members or friends; playing card or other games to keep them mentally alert (including perhaps getting a group together); calling daily to ensure medications are taken as pre- scribed; alerting doctors or visiting nurses as conditions warrant; helping them avoid scams and just being someone to talk to from time- to-time or some-one to call in case assistance is needed.

(Scams directed towards the elderly in particular include enticing them to buy small merchandise with the promise of it leading to a grand prize, high pressure sales tactics or letters trying to scare them into making donations to scam organizations to try to protect the Social Security System, MEDICARE, etc. After making one donation, a 86-year old woman living in a senior center received over 700 such mailings within a four-month period.)

Such a service might include ten clients so one morning or afternoon a week could be devoted to them.

Nationally, the average cost for one year in a nursing home is $39,000, or over $3,000 a month! Thus, if you offered this service at $500 a month, or $6,000 a year, the savings could be fairly high since the coverage of MEDICAID and MEDICARE is rather limited in this situation. An average of ten clients at a time at $500 a month works out to a gross of $60,000 a year, and expenses would seem to be limited.

Even if these people do not have the funds to adequately compensate for such services, a payment option may be a contractual arrangement with a social services agency or with their children or guardian living out of the area, who might be delighted to find someone to look after their parents. Part of this service could include periodic status reports, including photographs, to the children or other guardian, to help ease their mind.

Providers of these services have names such as Elderly Visiting Service, Enriched Living Quality Home Services and Friends of the Family.

If you have responsibility for an older person see Free Money and Services for Seniors and Their Families by Laurie Blum, available from The New Careers Center (303-447-1087).

-- Ken S. in WC TN (scharabo@aol.com), October 13, 2001.

Ok I guess I should rephrase the question... I am wondering if doing this sort of home-based business will be compatible with farming (subsistance only) and homeschooling four children as far as time goes. i mean do those of you who have homestead keep too busy with day to day maintenance to have time to run a business? Would I be setting myself up for having to choose one or the other? your thoughts??? Also franchising does offer some security and credibility to a business, especially in this field where many maybe wary of fly- by-night operations... what do you think?

-- Rita Dickens (mama2four@earthlink.net), October 13, 2001.

The answer to your question on whether or not an off-the-homestead job is compatible to homesteading/homeschooling with vary in every case. My gut reaction is both would suffer.

Also from my book:

FRANCHISES:

Franchising is one of the leading growth areas in the U.S. today. It offers an opportunity for people to operate their own business with support and advice from the franchiser or other franchisees. Some franchises have become quite successful. Others have the owners slaving for little more than minimum wages. Some are outright scams preying on the gullible or greedy.

As with anything, a couple of bad apples will show up. Some examples:

 At a franchise fair, which most large cities seem to have from time to time, one franchiser was caught hiring shills to pretend to be successful fran-chise operators for their promotion booth.

 One franchiser has a reputation for giving out exclusive territories, and then later advising the franchisee it has decided to open another franchise in their territory, but will give them first chance of buying it. If they do, it may financially and manage- rially strap them. If they don’t, they have direct competition in what was originally supposed to be an exclusive territory.

 One franchiser has a reputation for more or less deliberately running their franchisees out of business so they can resell the franchise, since that produces more revenue than the products they sell.

 In Nashville, TN those who responded to a classified advertisement to work for a vehicle detailing company (washing, waxing, vacuuming, etc.) for a starting pay of $12 per hour were subjected to a sales pitch to the effect for a down payment of only $10,000 they would be helped to obtain a credit line of another $90,000 to open their own franchise. The promotion was completely bogus.

 Another franchiser sold franchisees high-tech pizza vending machines which seldom worked and did not earn anywhere close to what was promised. He was eventually prosecuted, but the plea agreement did not return any money to his franchisees.

In the franchising industry, any franchise which is still open is counted as a success. It doesn’t matter if it has been bought and sold on an annual basis because it has proven to be unprofitable.

The Federal Trade Commission’s Franchise and Business Opportunity Rule requires sellers to disclose specific information: 1) Names, addresses and telephone numbers of all other purchasers. 2) A fully- audited financial statement. 3) Background and experience of the business’ key executives. 4) Cost of starting and maintaining business and 5) Responsibilities you and the seller will have to each other once you have bought into it.

Other advise from consumer groups include: 1) Study the disclosure document and proposed contract carefully. 2) Spend a lot of time talking to current owners. Ask them if the disclosure document matches their experience with the company. 3) Investigate claims about potential earnings. Be suspicious of a company which cannot substantiate its earnings representations in writing. You must be told, in writing, the number and percentage of owners who have done as well as they claim you will. 4) Shop around. Compare franchises with other busi-ness opportunities. 5) Listen carefully to sales presentations. Be warned by high-pressure practices. You have ten days after getting the documents before you have to sign the agreement or give them money. 6) Get the seller’s promises in writing as part of your contract and 7) Consider getting profes- sional advise from a qualified lawyer, accountant or business adviser.

One source of free advice is the Service Corps of Retired Executives (SCORE), 1129 20th Street, NW, Washington, DC 20036. Working under the Small Business Administration and composed of retired experts, they can help a small business owner with everything from accounting, to where to get financing, to providing advice on potential business enterprises. SCORE chapters are located in many major cities.

Even long-established, profitable franchises may not succeed in your area. Look for franchises operating successfully under circumstances similar to yours. For example, say you are interested in a Waffle House restaurant franchise. Placed in a small community it is likely to be just another so-so local coffee house. Placed at an interstate exit which also includes several motels with a high occupancy rate and few other fast food restaurants, it may do very well.

I would be particularly wary of three things: 1) A franchiser which seems to be in any way reluctant to provide a list of all of its franchises. A successful operation should be eager for their franchisees to provide positive testimonials for them. 2) Purchas- ing a franchise without knowing the full history of it. For example, has it had three previous owners in the last five years, which would indicate it is not viable in the long-run and 3) A franchiser who seems to be pushing your decision, such as saying they have oth-ers very interested in a franchise in your area.

For additional information on franchises, such as how to find out those which are available and references, send me an e-mail requesting it.

Becoming a franchisee may be a golden opportunity, but thoroughly check it out before making any commitment.

-- Ken S. in WC TN (scharabo@aol.com), October 14, 2001.