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profiles: Lending a Helping Hand to the Elderly

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Lending a Helping Hand to the Elderly

June 28, 2006

MOST BUSINESS OWNERS wouldn't want to boast about their time in the big house. But entrepreneur Peter Tourian of Gilbert, Ariz., says his experience in jail — especially a prison riot in which seven people were held hostage — taught him how to overcome a lot of unnecessary fears. Although, "let's be clear, I was on the right side of the bars," he says.

Tourian is a former detention officer with the Maricopa County Sheriff's Office, and after helping quell the 1996 riot in Arizona's notorious "Tent City," he gave up his 12-gauge shotgun and decided to take a shot at small business, a childhood ambition.

Now 33, Tourian has set his sights on an unusual market, considering his jailhouse résumé: aging baby boomers who want to live independently, but need help with day-to-day activities. In 2002, Tourian founded Synergy HomeCare, hiring about 100 employees in the first year to provide "caregiver-for-hire" services, helping elderly or incapacitated people cook meals, make beds, take showers, or occupy their minds with crafts or card games.

Why target boomers? "The reason is the demand, plain and simple," he says. The Department of Labor predicts that the number of home health aides will jump about 55% between 2002 and 2012, fueled by the aging of 76 million Americans born between 1946 and 1964. "It's the birth of this industry."

Showing, perhaps, some of the boldness that helped him storm the jailyard during the riot, Tourian decided to franchise within the first year of business. "I saw the growth and thought, wow, this isn't stopping," he says. "Franchising is the best way to expand fast, and penetrate the market on a larger scale."

The process of creating a franchise took more than a year, with Tourian using the services of a franchise attorney and attending seminars sponsored by the International Franchise Association, to learn more about what needed to be done. The tough part for any new franchise, he discovered, is selling the first office, especially if your business model is unproven. But by last year — the first year of the Synergy HomeCare franchise — he had sold seven offices, many to practitioners in the medical industry familiar with the needs of the aging population. He's currently drafting the sale of five more franchises, and expects to sell up to 300 in the next five years.

Tourian stresses that Synergy HomeCare provides only nonmedical-care services. His chain offers up to three different types of caregivers: daily living companions, who might play games, work on crafts or write letters with clients; homemakers, who prepare meals, wash laundry and do other light household chores; and personal-care assistants, who might help clients in and out of wheelchairs or beds.

Many insurance plans and government programs cover in-home care, which generally costs between $15 to $18 an hour, Tourian says. And the company doesn't limit the services to seniors. Anyone who needs help with routine daily tasks to stay at home could use the services, such as a working adult injured on the job, a disabled child, or an expectant mother.

The initial investment for a Synergy HomeCare franchise is between $50,000 and $70,000, which Tourian estimates is what he paid (using his own money) to start the company in the first place. Franchisees must pay a 5% royalty on monthly gross revenues, along with a 2% monthly contribution to a marketing fund. Most of the company's offices are in Arizona, although some have opened in South Dakota, Washington and Texas. (On the advice of his attorney, Tourian declined to provide revenue figures or other financial information.)

After Tourian left the jail system, he attended Arizona State University, graduating in 2000 with a bachelor's degree in human resources with a focus on small business. He'd always had an entrepreneurial bent, and remembers starting a dog-training business at age 14. "Other kids were dreaming about Superman and Spider-Man, I was dreaming about business," he says. While at ASU, he initially decided to start a health-care staffing company. But then, during a business visit to a nursing home, he was struck by inspiration to do something more.

"There was an elderly lady, and she was in the bed, as I was leaving she grabbed me and said, 'can you talk to me a little bit?'" he recalls. The woman, it turns out, only needed a small amount of assistance, but didn't want to burden her busy adult children. She longed for the comforts of her own home. "For some people who didn't need that 24-hour constant care, this was the solution for them: Send the caregiver to their home."

While he has competitors, Tourian says few people even know about nonmedical home-care services. Once his franchise is established, he hopes to be the first company to storm the scene with a national marketing campaign. "Just like any other business, we want to get out there, and we want to get it out there first," he says. And this time, he's glad he won't need to wear riot gear to do it.

Guarding Your Granny

Peter TourianYour name: Peter Tourian
Name of business: Synergy HomeCare Franchising, LLC dba. Synergy HomeCare
Year founded: 2002
Business type (industry): Nonmedical Home Care
Location: Gilbert, Ariz.
No. of employees: 10 in corporate headquarters; about 1,000 caregivers employed through franchised offices
Web address: www.synergyhomecare.com

Where do you look for business advice?
I read books often. "Winning" by Jack and Suzy Welch, "The Art of War" by Sun Tzu, and "Think & Grow Rich" by Napoleon Hill are a few of the books I have on my nightstand. I'm also a member of the International Franchise Association (IFA), National Association for Home Care & Hospice (NAHC) and the Private Duty Home Care Association (PDHCA). I have many friends who own and operate their own businesses both large and small and have noticed that they all encounter the same hurdles. I learn from all of them!

What do you know now that you wish you'd known when you started?
That I can't do it all myself. I wish when I first started I put people in place to help me do certain things to help get up and running. All true entrepreneurs feel they can do it all and want to do it all. I have quickly learned that it is impossible to do everything yourself. True entrepreneurs are great leaders who delegate and empower their employees to move forward to grow a successful company.

What's the smartest move you've made so far?
Surrounding myself with top talent and trusting them to do the right thing.

What is the best business book you've read?
"Winning." Jack Welch is one of my heroes, he puts it so simply: "Empower your employees."

What keeps you up at night?
Excitement! The journey is the part of the business that keeps me up at night. I have no fear of hurdles and battles; it's all part of business.

In brief, how did you fund the business initially?
I was fortunate enough to fully self-fund the entire start-up of Synergy HomeCare Franchising, LLC. I'm the sole managing member and have zero debt. The secret is to continually reinvest in your company. A valuable lesson I learned from a friend who owned a large business was that the best business to invest in is your own.

And extra credit, please answer: When/where was your last vacation?
Perfect timing! I just returned from my most enjoyable vacation last Monday, June 19, 2006, from the Florida Keys. I spent a week in a private villa on Duck Island, fishing, tanning and just relaxing.