My entrepreneur journey

I have always wanted to do my own business. It is my aspiration.

In February this year, I took the courage to resign, and to explore my homecare business. Homecare has been an area that I am passionate about, and it arose from the time when my Dad was unwell. I had wanted to consider doing this in US (home care is well received in US and there is a huge market) by taking up a franchise, however, this was only feasible and advisable only if we relocate.

I moved on to explore the local market. There are 2 major players and several smaller players in the market, and referral is largely to the voluntary welfare organisations (VWOs) by hospitals. The VWOs are partially subsidised by the government. This is a market in which there is a large demand, yet limited supply. Though it sounds like a feasible business (with high demand and low supply), market players are in fact struggling, as the market is not mature yet. I was told by a reliable source that a boss of one of the major players had to work part time to pay his staff. There are a few reasons why the market are not ready for homecare services yet and supply continues to lag behind demand:

1. There are only 1 in 1o residents now whom are 65 yrs and above. This ratio is expected to become 1 in 5 residents whom are 65 yrs and above by Yr 2030. The severity of the ageing population is probably not visibly severe enough yet to prompt finding of alternative cares to step down facilities (day care centres, nursing homes etc). Coupled with the chronic low birth rate and limited step down care facilities, home care services will be required in time to come.

2. Lack of awareness of homecare services, and what they can do. Homecare services can be in the form of nursing services, therapy services (physiotherapy, occupational therapy or counselling) and homehelp services (meal preparation, laundry, escort services, bathing of patients etc). The irony is that the existing market players do not really market their services to create awareness (which I believe they must have good reasons for it).

3. Singaporeans are not prepared to pay for homecare services as yet. They would rather hire maids to take care of their elderly loved ones who need assistance with daily living.

4. It is difficult to recruit committed and trained local staff. Hiring foreign staff would be too expensive for a start up. The severity of trained local expertise can be felt as of now when you step into nursing homes, community hospitals. One of my interviewees whom had worked with one of the big market players shared that caregiving is a tough and dirty job, and the salary does not justify for the amount of work. I agree, and yet if the charges are adjusted higher, afraid that it may shut out the demand and channel all demands to VWOs.

5. Lack of government funding or insurance coverage for homecare services. In countries such as US, Australia or Japan, home care services are either paid by insurance or subsidised by the government.

I have decided to put this business idea on hold. Though disappointing (and especially considering the opportunity cost lost), however, I am glad to have the chance to pursue and explore the idea full time. The 2.5 months of market research and business planning may be a blessing in disguise. Given a chance when the market is right for the business, I will be more than happy to go into it again!