Starting Your Own Business to Serve Boomers and Seniors

Do your homework first

I have heard from a number of folks in recent months about the businesses they are starting, so I would like to ask and answer a few questions about this.

What types of businesses? I have heard about and see opportunity in home care services, home renovation and remodeling, financial advisory services, portable health records, life planning, home activity monitoring, move and organizing services, personal concierge services, adaptive and assistive services, home assessments, bathroom-specific remodeling, and companion services. In addition to the preceding possibilities, I would like to see more private transportation service businesses started in areas where the business model makes sense—not only taking older people to medical appointments, but also accompanying them to appointments or shopping locations (as does SilverRide in San Francisco).

Do these compete with nonprofit or volunteer services? One of the main objections to starting some of the above businesses is that “seniors don't have the money” and therefore won't pay for them. Like any other business, research and a business plan are required, along with a solid understanding of the demographics of the region, the availability of nonprofit and volunteer services, and how many they are able to serve. Demographics and that quantified gap become the target market. And in some cases, the target market is clearly the family caregiver(s), so awareness generation must be done where the family members—not the senior—reside.

Nationwide marketers—know the competition. Lately I have been speaking to several startups that didn't have a particularly clear idea of the current competition or price tolerance of the market they had planned to serve prior to starting the company. If you're looking for funding (angel or VC), this has got to be job one before picking the company name, hiring the first engineer, getting a prototype together, and seeking funding. If you're located near a business school, try to locate an intern interested in doing market research on emerging business areas, and ask him or her to do this legwork. Once you have all of that together, it's time for national visibility. Speaking at events sponsored by ASA, AARP, and AAHSA is appropriate—in some cases, after you join up. And just attending may be almost as useful. There are plenty of experienced business people to talk to and learn who's who in the industry. And renting ($$) booth space may be the best use of marketing money if you can afford it. Finally, call up experts, prospective competitors, and possible pilot customers, and ask them for their opinion.

Region-specific businesses—know how to gain visibility. If the product or service is for caregivers, find the local hospice, Alzheimer's Association, adult day program, or whatever is appropriate—and speak to the administration about a role you can play. This helps confirm the need for your service and gives you visibility. Write an article for a local newspaper, even paying to get the article printed. Issue a press release that is picked up in the local newspaper. Create a video that you can easily and quickly show that demonstrates successful use of your product or service. Post to the blogs of others (like this one) with comments (not anonymous) about the business that you offer. Volunteer in related organizations, where you can get to know advocates who work with your target audience. A Web site is a must-have. Without it, you don't exist.

Thoughts?

By Laurie Orlov
Aging in Place Technology Watch Blog

[Originally posted November 29, 2009, at Laurie's Aging in Place Technology Watch Web site.]