The latest data released from the Australian Bureau of Statistics (ABS)shows strong growth across most services style businesses including a HUGE growth (more than double the next closet industry) in the number of new businesses starting in the Health Care and Social Assistance industry driven in no small part by the NDIS.
What does this mean for businesses and business sales? Growth has dropped in both the retail and hospitality sectors (more businesses exisiting than entering) which has resulted in less demand for businesses in these sectors, and therefore lower sale prices (or at least a smaller increase) than previously seen.
However the demand for businesses within the Disability, Aged Care and Health care sectors is soaring, driving prices up for established, well run businesses up, giving strong returns for business owners in these fields who are looking to exit, and pass their business on to the next wave of people.
With the demand and therefore the value of businesses in this sector growing, with the greatest area of growth coming from the NDIS space with new NDIS Providers entering the market, it is of the utmost importance to remember that this industry is their for the propose of supporting and caring for the most vulnerable people in our community. Profit should NEVER dictate purpose within this sector.
Whilst making a profit for these businesses is important to ensure the ongoing viability of the industry, and therefore the long term support of people living with a disability and/or within aged care, the moment that business decisions are made with the primary focus on profit, rather than the care and support of our communities most vulnerable people, the purpose of businesses within this industry has failed. The providers that are primarily focused on the individual they are supporting, with every decision based on what is in the best interest of the client/participant/patient (depending on which industry you are in) first, and the financial viability of these decisions second, are the ones that will be here for the long run and will over time be SIGNIFICANTLY more valuable, both morally and financially.