Is Buying A Healthcare Franchise A Good Investment Decision?

Do you know how big the health industry is? Have you read about the entry route in health sector by becoming distributors. Want to know more ways to get plunged into this business?

Other than distribution, franchising is the best way forward to penetrate into health industry. Where it may seem a bit odd to apply the concept of franchising to healthcare to many, but to some, it makes eminent sense.

Franchise Opportunities in the Sector

It's not surprising that franchisors began to reach the health industry brand awareness, increasing the profits of their franchisees and adding value to their franchises. Those having education in medical related course or have interest in healthcare sector can join this industry. The opportunities includes franchise of medicine & health products, ayurvedic products, hospital franchise, health care equipment franchise, franchise in fitness centers and more. Becoming a franchisee comes up with the following advantages:

• Established Brand Name
• Financing And Ongoing Support
• Low Chances Of Failure
• High Returns On Invested Capital

Read the highlights of the industry to get sure about your investment decision in this healthy sector.

The Globally Diversified Health Segment

According to Department of Industrial Policy and Promotion, the drugs & pharmaceutical and medical & surgical appliances industry received FDI worth US $11,583.69 and US $741.80. Where the hospital and diagnostics center in India registered FDI worth 2,191.91 million US$, respectively during April 2000 to December 2013.

Growth Drivers

"Revenues are expected to grow at 10% a year till 2014-15" says Rakesh Goyal, Senior Vice President, Bonanza Portfolio. Healthcare industry in India will grow around 20% a year and is expected to reach US $100 billion by 2015 from the current US $65 billion. Also the healthcare expenditure is expected to rise to $88.7 by 2015.The factors behind the growth are:

• Rising per capital incomes.
• Easier access to high-quality healthcare facilities.
• Greater awareness of personal health and hygiene.

Government Initiatives

This business has shown consistent double-digit growth in the recent past. Government initiatives like allowing 100% foreign direct investment in health services will be beneficial for the sector. The government is also planning to increase expenditure on healthcare to 2.5% of GDP by the end of the 12th Five-Year Plan (2012-17), which will give the industry another big boost.

Consider all the mentioned aspects, know how to buy a franchise and get ready with your plans to start health care franchise.