Investors
Growth in Ageing Population Drives Demand for Carers​
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The number of the Australian population aged 65 and older is expected to rapidly increase within the next several decades; in 2010, about 3 million Australians were aged 65 and older. It is predicted that this number will increase to 3.6 million by 2020 and 5.8 million by 2030.
The number of employees in the aged care sector is expected to likewise grow. In 2010, there were over 352,000 individuals working in aged care. This number is expected to double by 2050.
Chart 1: Proportion of the population that is 65 older
With the large influx in number of elderlies, and therefore, higher demand in senior health care and caregivers. Lean Care is seeking a solution to assure that the elderly demographic will receive the care they require by making sure retirement homes are properly staffed.
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Revenue Model & Value Proposition
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Institutions pay less, but carers earn more. Lean Care earns profit by taking a percentage of the wages that aged care facilities pay to their employees. However, when using our service, aged care facilities will pay less in wage expenses, making our service more attractive compared to our competitors. Nevertheless, we take a smaller percentage of these wages compared to our competitors, which results in higher salaries for employees.
We seek to differentiate from competitors through our revenue model and target markets. Compared to our competitors, our revenue model is more enticing to both businesses as well as individuals—businesses are paying less for wage expenses while individuals are actually earning more per hour. We take a smaller portion from the wages that businesses are paying than our competitors, but that is a sacrifice we are willing to make in order to provide accessible senior health care. Our target markets differ from those of our competitors. Most of our competitors in the aged care sector target retired nurses or individuals who have been working in aged care for substantial period of time. Lean Care targets nurses in training and postgraduate university students who are seeking work experience in their early years in aged care. This is a huge target market that has yet to be specifically exploited by our competitors. Furthermore, many of our competitors have B2C models rather than B2B, but Lean Care is seeking relationships with established businesses to ensure stability and quality service.
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Table 1: State breakdown of retirement village dwelling and resident numbers
From Chart 1, it can be seen that the proportion of population that is 65 and older will increase from approximately 14% in 2010 to 17% in 2020.
From Table 1, there are 184,080 number of residents in retirement villages in 2015. The increase in the proportion of elderlies in population, combined with the projected increase in penetration rate of over 65s into retirement village to 7.5% means that dwellings for 382,200 will be required by 2025. This is close to 200,000, greater than double, the number of residents currently calling a retirement village home.
Source: Australian Government, 2010a.