Celtic Angels: Gettin' Up In Irish's Bidness

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Irish
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So, as some of you will :member: I cereally gave up my (not so) cushy job at Kellogg's and bought a Visiting Angels franchise near Hershey PA.. To say that it has been a roller coaster ride is a gross understatement. Owning any small business successfully is a challenge, to say the least, but this one is second only to the restaurant business IMHO with regard to the difficulty level of becoming profitable and managing stress... (and I say that having owned both).

I hope to use this :bread: to relate at least marginally interesting stories of my trials and tribulations. I have had some great successes and some major :wtf: moments.....one such moment was outlined in the Life Sucked Ballz thread yesterday (3/26/19). viewtopic.php?f=2&t=136&start=825 (I will turbo edit if I can figure out how to link to the actual post)

Some background...

After going through the somewhat arduous PA State Dept of Health licensing process, we opened our doors in September 2016. I hired my first caregivers in October and signed my first client in November. (2 of 3 of those first caregivers are still with me).

The biggest challenge is staffing. The very thing that makes caregivers good at what they do, makes them terrible, terrible employees. Namely heightened sensitivity. I have to tread very, very lightly with them and it is difficult to manage a workforce that will simply quit if they feel even remotely slighted.

They are in super high demand due to the :derp: mentality that reads the statistics about how old the country has gotten (and will continue to get into the 2040's) and then throw their hats in the ring thinking that this is easy money. It most certainly is not. There is A LOT of competition and we are all sharing the same caregiver pool in our geography. The caregivers know this and, thus, know that they could have another job tomorrow in their field.

The balance between supply and demand NEVER evens out. I either have too many caregivers for the amount of billable hours, or I turn business away because I don't have caregiver availability to meet the needs of the client. SO, I am constantly recruiting...I mean every day. This is made challenging by ever changing term and conditions of services like Indeed, Zip Recruiter, Hireology etc. But it's challenging mostly because we can't pay caregivers what they are truly worth and also remain priced competitively in the market.

We had our ups and downs for the first 2 years.....and I was about to dip into my 401k .........but at almost exactly the two year mark, we turned the corner and became profitable. Not enough for me to take any real money out of it for myself yet, but enough to have a comfortable surplus of operating capital.

It is wonderful and terrible, heart warming and heart wrenching, soul lifting and soul crushing.....all at the same time.........and I wouldn't trade it for the world.

We are Visiting Angels, America's Choice in Homecare, how can we help you?
Last edited by Irish on Thu Mar 04, 2021 9:51 pm, edited 1 time in total.
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:popcorn:
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:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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Cereally, in4interestingstories like the one you posted yesterday. :like:
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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Irish wrote: Thu Mar 28, 2019 4:40 pm So, as some of you will :member: I cereally gave up my (not so) cushy job at Kellogg's and bought a Visiting Angels franchise near Hershey PA.. To say that it has been a roller coaster ride is a gross understatement. Owning any small business successfully is a challenge, to say the least, but this one is second only to the restaurant business IMHO with regard to the difficulty level of becoming profitable and managing stress... (and I say that having owned both).

I hope to use this :bread: to relate at least marginally interesting stories of my trials and tribulations. I have had some great successes and some major :wtf: moments.....one such moment was outlined in the Life Sucked Ballz thread yesterday (3/26/19). viewtopic.php?f=2&t=136&start=825 (I will turbo edit if I can figure out how to link to the actual post)

Some background...

After going through the somewhat arduous PA State Dept of Health licensing process, we opened our doors in September 2016. I hired my first caregivers in October and signed my first client in November. (2 of 3 of those first caregivers are still with me).

The biggest challenge is staffing. The very thing that makes caregivers good at what they do, makes them terrible, terrible employees. Namely heightened sensitivity. I have to tread very, very lightly with them and it is difficult to manage a workforce that will simply quit if they feel even remotely slighted.

They are in super high demand due to the :derp: mentality that reads the statistics about how old the country has gotten (and will continue to get into the 2040's) and then throw their hats in the ring thinking that this is easy money. It most certainly is not. There is A LOT of competition and we are all sharing the same caregiver pool in our geography. The caregivers know this and, thus, know that they could have another job tomorrow in their field.

The balance between supply and demand NEVER evens out. I either have too many caregivers for the amount of billable hours, or I turn business away because I don't have caregiver availability to meet the needs of the client. SO, I am constantly recruiting...I mean every day. This is made challenging by ever changing term and conditions of services like Indeed, Zip Recruiter, Hireology etc. But it's challenging mostly because we can't pay caregivers what they are truly worth and also remain priced competitively in the market.

We had our ups and downs for the first 2 years.....and I was about to dip into my 401k .........but at almost exactly the two year mark, we turned the corner and became profitable. Not enough for me to take any real money out of it for myself yet, but enough to have a comfortable surplus of operating capital.

It is wonderful and terrible, heart warming and heart wrenching, soul lifting and soul crushing.....all at the same time.........and I wouldn't trade it for the world.

We are Visiting Angels, America's Choice in Homecare, how can we help you?
Always interesting to read about someone else's method of making a living.

1. How much per hour do you pay the caregivers?
2. What has made you profitable? Sufficient customers, expense management, or both?
Detroit wrote:Buy 911s instead of diamonds.
Johnny_P wrote: Thu Feb 09, 2023 3:21 pm Earn it and burn it, Val.
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wap wrote: Thu Mar 28, 2019 5:22 pm :popcorn:
In4Irishadministeredspongebaths
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Okay... but, just understand, I don't have any money to pay you for the privilege


:dock: :dock: :dock:
:dock: :wap: :dock:
:dock: :dock: :dock:

wap wrote: Thu Mar 28, 2019 5:23 pm Cereally, in4interestingstories like the one you posted yesterday. :like:
:zing: I'll do my best
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Irish wrote: Thu Mar 28, 2019 5:31 pm
wap wrote: Thu Mar 28, 2019 5:22 pm :popcorn:
In4Irishadministeredspongebaths
:gonbgud:
Okay... but, just understand, I don't have any money to pay you for the privilege


:dock: :dock: :dock:
:dock: :wap: :dock:
:dock: :dock: :dock:

wap wrote: Thu Mar 28, 2019 5:23 pm Cereally, in4interestingstories like the one you posted yesterday. :like:
:zing: I'll do my best
You don't have to pay me in money...... :hubba:
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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If I were an old :wap: I’d certainly hire you to wipe my butt. In4stories.

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Also, if I may ask, what was the draw on getting back into business ownership with a caregiver frachise? Vs. another restaurant, etc. etc.
Detroit wrote:Buy 911s instead of diamonds.
Johnny_P wrote: Thu Feb 09, 2023 3:21 pm Earn it and burn it, Val.
max225 wrote: Mon May 01, 2023 5:35 pm Yes it's a cool car. But prepare the lube/sawdust.
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Desertbreh wrote: Thu Mar 28, 2019 5:29 pm
Always interesting to read about someone else's method of making a living.

1. How much per hour do you pay the caregivers?
2. What has made you profitable? Sufficient customers, expense management, or both?
I pay the caregivers somewhere between $10-$12 per hour. Most non-certified start at $10, CNA's at $11 and certified (that drive a hard bargain) at $12.
My base rate for 4 hours or more per shift is $22/hr, 3 hour shifts =$25/ 2 hours = $28/ . I use the sliding scale both to encourage clients to take longer shifts and to incentivize the cg to take shorter ones. ( I split the difference with them paywise).

What made me profitable was crossing the threshold of # of billable hours that pay the payroll and overhead (rent, utilities. insurance, background checks, TB screening, etc). In my case its about 150 hours per week to cover my nut. So customers...but also having adequate caregivers to meet the demand

I have been able to sustain 200+ hours per week since Thanksgiving and hit a record of 300 a few weeks ago. Sadly I lost a 70 hour client the following week though.

My goal is 1000 hr/week. That will allow me to implement some of the caregiver appreciation programs that I have in mind to bolster recruitment and retention; and also pay myself the 6 figures that I think I am worth.
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Desertbreh wrote: Thu Mar 28, 2019 5:49 pm Also, if I may ask, what was the draw on getting back into business ownership with a caregiver frachise? Vs. another restaurant, etc. etc.
I have always had an entrepreneurial spirit...... but the real impetus was wife unit finding out that the Hershey territory was open from the woman who has owned VA-Harrisburg for 15 years. I went and listened to their spiel, heard that I could take 15-18% off the top while helping people everyday and I was sold.
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Irish wrote: Thu Mar 28, 2019 6:15 pm
Desertbreh wrote: Thu Mar 28, 2019 5:29 pm
Always interesting to read about someone else's method of making a living.

1. How much per hour do you pay the caregivers?
2. What has made you profitable? Sufficient customers, expense management, or both?
I pay the caregivers somewhere between $10-$12 per hour. Most non-certified start at $10, CNA's at $11 and certified (that drive a hard bargain) at $12.
My base rate for 4 hours or more per shift is $22/hr, 3 hour shifts =$25/ 2 hours = $28/ . I use the sliding scale both to encourage clients to take longer shifts and to incentivize the cg to take shorter ones. ( I split the difference with them paywise).

What made me profitable was crossing the threshold of # of billable hours that pay the payroll and overhead (rent, utilities. insurance, background checks, TB screening, etc). In my case its about 150 hours per week to cover my nut. So customers...but also having adequate caregivers to meet the demand

I have been able to sustain 200+ hours per week since Thanksgiving and hit a record of 300 a few weeks ago. Sadly I lost a 70 hour client the following week though.

My goal is 1000 hr/week. That will allow me to implement some of the caregiver appreciation programs that I have in mind to bolster recruitment and retention; and also pay myself the 6 figures that I think I am worth.
Sounds good. Thanks for the info.
Detroit wrote:Buy 911s instead of diamonds.
Johnny_P wrote: Thu Feb 09, 2023 3:21 pm Earn it and burn it, Val.
max225 wrote: Mon May 01, 2023 5:35 pm Yes it's a cool car. But prepare the lube/sawdust.
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wap wrote: Thu Mar 28, 2019 5:32 pm
Irish wrote: Thu Mar 28, 2019 5:31 pm

Okay... but, just understand, I don't have any money to pay you for the privilege


:dock: :dock: :dock:
:dock: :wap: :dock:
:dock: :dock: :dock:



:zing: I'll do my best
You don't have to pay me in money...... :hubba:
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:lolol:
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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Unsolicited

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:fuckyeah:
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Irish wrote: Fri Mar 29, 2019 8:21 pm Unsolicited

Image

:fuckyeah:
:fuckyeah: :impressive:
Very :nice: to get such unsolicited praise! It speaks highly of you and your business and how you run it.
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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wap wrote: Fri Mar 29, 2019 9:33 pm
Irish wrote: Fri Mar 29, 2019 8:21 pm Unsolicited

Image

:fuckyeah:
:fuckyeah: :impressive:
Very :nice: to get such unsolicited praise! It speaks highly of you and your business and how you run it.
:wub:
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Great job @irish, it sounds like a tough start but you're on your way man! You seem like the right dood for the job and i have no doubt that the business will keep growing organically and reach your goals.
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Tarspin wrote: Sat Mar 30, 2019 4:22 am Great job @irish, it sounds like a tough start but you're on your way man! You seem like the right dood for the job and i have no doubt that the business will keep growing organically and reach your goals.
Thanks man!
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Johnny_P wrote: Thu Mar 28, 2019 5:38 pm If I were an old :wap: I’d certainly hire you to wipe my butt. In4stories.

:popcorn:
For you, I'd do it for free ...... :hubba:
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:jelly:
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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wap wrote: Sun Mar 31, 2019 12:21 am:jelly:
You'll always be my first love :wap: ..... after all you invented it while traipsing around that garden.......

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Last edited by Irish on Tue Apr 02, 2019 8:06 pm, edited 1 time in total.
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True Talk

So, one of the challenges I face is caregivers who jump ship to other agencies. This happens more often than I am happy with and usually it's because I just don't have the hours for them. I can't really fault them for this.

I do have them sign a non compete clause that prohibits them from working for any of our clients directly or indirectly for 2 years. This is in place to both: a) stop them from working out a side deal to go work privately for my clients and b) prohibit them from taking one of my clients (who has grown used to them) to another agency as a means of securing employment.

But a new wrinkle has formed relative to facilities (i.e. Nursing homes and assisted living places).

There is a high end facility in Hershey that I had been trying to get into for 18 months. About 8 months ago they did away with their "personal care" division where they offered more than usual care for a price. This opened the door to agencies such as mine to come in and assist their residents. It's been mostly great, we have had a number of well heeled clients there and it is a really nice environment for our caregivers to work in. There has been some high school :bs: between their caregivers and mine, especially at first, but that has mostly dissipated by now.

SO the issue is that the top heavy management of this place is trying to poach my best caregivers. Thus far, the caregivers that have been approached have rebuked the offers, citing loyalty to me, and my agency. But today I have a recent hire who I have sent over there who wants my blessing to jump ship. While I appreciate her being forthcoming, it sucks. I have already spent time effort and money in onboarding her and now I about to lose her.

I need to talk to the management over there, but I have to tread lightly....because they can easily just prohibit us from being there. I'm between a rock and hard place and it sucks.
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If your people want more hours, isn't it good if some of them leave? You can give more hours to those who remain and everyone wins.
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troyguitar wrote: Tue Apr 02, 2019 8:04 pm If your people want more hours, isn't it good if some of them leave? You can give more hours to those who remain and everyone wins.
You'd think this would be the case but in practice, it isn't. Mostly because the hours that most clients want overlap. Prime time is Mon Wed Fri 10a-2p followed closely by Tu Thu 10-2.
Anyway losing caregivers is always a losing proposition for me because I lose availability to offer clients. Losing them early, loses me the time and money (background checks and Tuberculosis Screenings) I've spent onboarding them.
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Irish wrote: Tue Apr 02, 2019 6:33 pm
wap wrote: Sun Mar 31, 2019 12:21 am:jelly:
You'll always be my first love :wap: ..... after all you invented it while traipsing around that garden.......

Image
:lolol:
It's funny 'cause it's true.
:wap: Where are these mangos?
Detroit wrote: Fri Apr 16, 2021 1:19 pm I don't understand anything anymore.
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