business plan for a domiciliary care agency

Domiciliary Care Business Plan: How to Navigate the Industry and Secure Long-Term Success

• January 25, 2024

Are you considering starting a domiciliary care business? With an aging global population and the increasing demand for home care services, it’s a lucrative industry to venture into. But, as with any business, success lies in careful planning and execution. In this comprehensive article, we will guide you through the process of creating an effective domiciliary care business plan that will help you navigate the industry and secure long-term success.

From understanding the market and assessing the competition to identifying your target audience and defining your unique selling point, this article covers it all. We will delve into the essential components of a strong business plan, such as financial projections, marketing strategies, staffing considerations, and quality and compliance.

By the end of this article, you will have a clear roadmap to guide you through the complexities of starting and running a domiciliary care business. Whether you’re a seasoned entrepreneur looking to diversify your portfolio or someone passionate about making a difference in people’s lives, this article is a must-read. Don’t miss out on the opportunity to carve a rewarding career in the booming domiciliary care industry.

Understanding the Domiciliary Care Industry

The domiciliary care industry, also known as home care, provides essential support and assistance to individuals who prefer to receive care in their own homes. This industry has witnessed substantial growth in recent years due to various factors, including the aging population and the desire for personalised care.

To navigate the domiciliary care industry successfully, it’s crucial to understand its dynamics and trends. The first step is to conduct thorough market research. Analyse the current landscape, including the demand for services, the demographics of the target market, and the regulatory environment. This information will help you identify opportunities and potential challenges, enabling you to develop a business plan tailored to the specific needs of your target audience.

The Importance of a Business Plan in Domiciliary Care

A well-crafted business plan is essential for any entrepreneur looking to enter the domiciliary care industry. It serves as a roadmap, guiding you through each stage of your business’s development and ensuring that you make informed decisions. A comprehensive business plan not only helps you secure funding but also demonstrates your understanding of the industry and your ability to navigate its complexities.

Your business plan should outline your mission, vision, and values, as well as your short and long-term goals. It should also include a detailed analysis of your target market, competitors, marketing strategies, financial projections, and staffing considerations. A solid business plan will serve as a reference point for your own decision-making and growth strategies.

Key Elements of a Domiciliary Care Business Plan

1. Market Analysis and Competitor Research

Before launching your domiciliary care business, a thorough analysis of the market is essential. Identify the demand for home care services in your target area, including the size of the aging population and their specific needs. Assess the competition and understand their strengths and weaknesses. This analysis will help you identify gaps in the market and position your business uniquely. At Walfinch, all franchisees get exclusive rights to a territory including a minimum of 250,000 people and a minimum of 40,000 people aged 65 years and over.

2. Identifying Your Target Audience and Niche

To succeed in the domiciliary care industry, it’s crucial to identify your target audience and define your niche. Determine the specific demographics, preferences, and needs of your target market. Consider factors such as age, medical conditions, and cultural backgrounds. This information will help you tailor your services and marketing strategies to attract and retain clients. One Walfinch franchisee serves a large community of people with Gujurati heritage, for example, so organising a traditional dance called a garba every now and again has been a great way to pick up clients.

3. Developing a Marketing and Sales Strategy

Creating a robust marketing and sales strategy is essential for attracting clients and growing your domiciliary care business. Utilise both traditional and digital marketing channels to reach your target audience. Develop a strong online presence, including a user-friendly website and active social media profiles. Establish partnerships with healthcare professionals and community organizations to expand your reach. All Walfinch franchisees get their own microsite and socials to help you quickly attract new clients.

4. Operations and Staffing Considerations

Efficient operations and adequate staffing are crucial for providing quality domiciliary care services. Develop a detailed plan for service delivery, including scheduling, equipment, and transportation. Hire qualified and compassionate carers who align with your values and mission. Provide ongoing training and support to ensure the highest standard of care.

5. Financial Projections and Funding Options

Creating realistic financial projections is vital for the long-term success of your domiciliary care business. Estimate your startup costs, including licensing, insurance, equipment, and marketing expenses. Determine your pricing strategy based on the services provided and the local market. Explore funding options, such as loans, grants, or partnerships, to secure the necessary capital. Walfinch franchisees receive support on all these things at the beginning and on an ongoing basis.

6. Legal and Regulatory Compliance

Compliance is essential in the domiciliary care industry. Familiarise yourself with the regulations governing home care services. Obtain the necessary licenses and certifications. Develop policies and procedures to ensure compliance with privacy laws, safety standards, and employee regulations. Walfinch franchisees get a dedicated Quality and Compliance Manager who will help you navigate this landscape to make sure you receive positive ratings from your regulator.

Long-Term Success and Growth Strategies

To secure long-term success in the domiciliary care industry, it’s essential to develop strategies for growth and continuous improvement. Regularly evaluate your business performance and identify areas for optimisation. Seek feedback from clients, carers, and other stakeholders to gain insights into areas that can be enhanced.

Invest in technology solutions that can improve operational efficiency and enhance the client experience. Explore opportunities for diversification, such as expanding into specialised care services like live in care. Continuously monitor industry trends and adapt your business strategies to stay ahead of the competition.

Focus on building strong relationships with clients and their families. Provide personalised and compassionate care that exceeds their expectations. Implement a robust client feedback system to measure satisfaction and address any concerns promptly.

Finally, invest in your own professional development as a business owner. Stay informed about industry advancements, attend conferences and workshops, and network with other professionals in the domiciliary care industry. Continuously strive to improve your skills and knowledge to lead your business to long-term success.

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Your Domiciliary Care Agency Business Plan: A Simple Guide

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If you’re considering setting up a care agency that supports people in their own homes, then the first task is to write a detailed business plan.

This step-by-step guide to creating a domiciliary care agency business plan will help you to design your dream business. It will include the following:

Step 1: Remind Yourself Why You’re Writing A Business Plan

Step 2: all about you, step 3: overview summary of your business, step 4: your services in more detail, step 5: deep dive on the market.

Step 6: Analyse Your Competition

Step 7: Your Plan for Marketing

Before you put pen to paper or open up your laptop to start typing, first remind yourself why a thorough, considered business plan is so important.

Starting a new business in any sector involves a lot of initial planning and consideration. Scrimp on this and your start-up could fail spectacularly. But put time, effort and attention into the early preparation and your business is more likely to succeed and grow exponentially.

A comprehensive business plan will not only help to ensure success in the long term, it will also aid you in securing funding, as it clearly demonstrates you have done your homework. It will direct your attention and assist you with organising your time. And, in the future, you can refer back to it to help you expand, or guide you back on track if you’ve lost focus.

With this in mind, make sure you put aside dedicated time to research, write and prepare your home care agency business plan . It will make all the difference in the long run.

Now that your mindset is in the right place, start writing your domiciliary care agency business plan . The first step is to introduce yourself.

A detailed section upfront about who you are and why you are qualified to run a business of this kind will reassure potential investors, as well as help you to sell yourself and your business to new clients.

This summary should include the following points:

1. Your career background and experience in the industry

If you, personally, don’t have extensive experience in the industry, then detail how you plan to expand your knowledge. Perhaps you have a mentor, or plan to employ someone who is an expert in the home healthcare field.

2. Your qualifications for adult care

There are many rules and industry regulations when it comes to providing care . And those providing support in people’s own homes must have the required qualifications.

England’s independent regulator of health and social care is called the Care Quality Commission (CQC) . All domiciliary care agencies must be registered, and it carries out regular inspections and enforces high standards. The details of the relevant qualifications required are noted on the website.

If you already have these qualifications, then ensure they’re listed in your business plan. And if you don’t, then include a plan for how you will train to acquire them. Or, if your strategy is to hire qualified staff, then ensure this is explained clearly.

You, and anyone you plan to employ, must have a Disclosure Barring Service (DBS) check to ensure you’re eligible to work in healthcare.

3. Any existing connections you can utilise

Detail here any relationships you have, for example with suppliers or potential clients, that you can leverage for your business.

This section needs to showcase the most important and relevant points about you and your career history. Don’t be tempted to simply copy and paste your three-page CV here. That can be attached to the end of the business plan as an appendix, or supplied if requested.

This executive summary should clearly state what your business is, who you intend to target and how you plan to operate. You can go into more detail in supporting sections later on in the document.

This succinct statement of intent should include the following:

• The name of your business
• What services you plan to offer
• Who you plan to offer those services to (your target market)
• How you plan to operate and staff the business

This section should also contain:

Your business vision

A business vision is future-based and states, at the highest level, what a company wants to achieve in the long term. Its purpose is to inspire the leadership and employees, rather than customers, and give a purpose and meaning to the organisation. It should encapsulate where your business is going and be aspirational.

Business vision statements can feel lofty, but they should be meaningful. A famous example is Disney’s vision ‘to make people happy’.

Your mission statement

This differs from the vision in that it’s all about what you’re doing right now. A mission statement is present-based and should demonstrate how you plan to fulfil your vision. It should be actionable.

For example, if your vision is to ‘make people happy in their old-age’ then your mission might be: ‘by providing around-the-clock high-quality and affordable care to the elderly in their own homes in the city of xxx’.

SWOT analysis

A SWOT analysis details your business’ strengths, weaknesses, opportunities and threats.

In the strengths section you can detail your unique selling points and what sets you apart from your competition.

Break down your business weaknesses, such as low public awareness, recruitment difficulties or client retention.

The opportunities can highlight the number of potential customers in your target location, or other areas that you can expand to. You can illustrate your plans for future growth by using SMART goals which are specific, measurable, attainable, relevant and timely.

And the threats could include competition, change in government policies meaning expensive re-training or economic downtown impacting the elderly’s spending habits.

How you plan to finance your business

Detail here how you will fund the start-up investment required to launch your new business. Create a detailed budget which includes all the expected expenditures to get up and running. This could include premises rent, utilities bills, website development, travel, insurance, printing business cards, training etc.

Note down if you have already secured funding, for example from personal savings or private loans from family and friends, and what investment you still require. Explain what additional investment or loans you might also require and where / how you plan to acquire these, such as loans from banks or specialist providers.

This section should also include sales forecasts for the first three years, as well as any time period breakdown you would like to include (e.g. monthly, quarterly etc.). You’ll need to project what sales you need to make to cover your regular outgoings (e.g. monthly expenses), and make a profit.

Following your overview summary, this section of your domiciliary care agency business plan should go into depth about your business’ services.

This can include:

The home care services you plan to offer

For example, nursing, companionship, domestic or housekeeping, personal care or emergency care. It might also include mental health counselling or assisting with home medication management.

How you’ll carry out the services

Such as 30-minute appointments, eight-hour shifts, 24-hour live-in care or emergency call outs.

How much the services will cost you to deliver

Detail here the equipment, training, travel, business software etc. that you require to operate effectively.

Pricing strategy

This strategy includes the rate card prices you plan to charge for all your services. Include whether you will offer payment plans, contracts or pay-as-you-go hourly billing. What the payment options will be (e.g. cash, Direct Debit, mobile card machine) and any discounts for repeat business or longer-term contracts.

Sales strategy

The sales strategy determines how you’ll sell these services to customers. For example, customers can book a package of home care visits online through your website, in-person at a physical office, or over the phone etc.

Legal and insurance requirements

As noted above, the home care industry is strictly regulated. You can’t start operating until you’re registered with the CQC and staff have the appropriate qualifications.

Also detail the insurance your business will require to be able to care for clients in their own homes, administer medication and be responsible for their wellbeing.

Essential procedures and policies you’ll put in place

The CQC looks for specific procedures and policies to ensure a high standard of governance.

These could include a grievance policy, a confidentiality policy, a procedure on bullying or harassment, as well as specific policies on showering and bathing clients. You should also consider application forms for new customers, employment contracts and cancellation procedures.

Growth potential for your services

This can include your plans to expand into new locations, upsell or cross-sell different services to existing clients as well as signing up clients to annual contracts.

Following the top-line overview on your target market in your summary, this section takes a deep dive on your ideal customers.

This market evaluation can be pulled together from desk research including online searches and by consuming media such as newspapers. You can also undertake field research in the form of interviewing your potential customers, conducting questionnaires and gathering first-hand feedback on your proposed offering.

This section will help strengthen your home care agency business plan with quotes and soundbites, statistics from credible sources and industry forecasts.

Incorporate the following:

• General standing of the UK domiciliary care market, predictions for growth, industry forecasts
• Who your target customers are e.g. age, gender, location, needs and desires, lifestyle and hobbies etc.
• How many of these customers will your business potentially be able to reach
• Any existing relationships with these target customers that you can leverage
• Why will these customers buy your services over the competition

Step 6: Analyse Your Competition  

You might have touched upon your competition in the ‘threats’ part of your SWOT analysis, however this part of your home care agency business plan will further explore your competitors.

As with your market research, scrutinising your competitors will involve desk and field research. By getting out and about in the community you plan to target, you’ll be able to identify other similar companies that operate in the same location. They might advertise in local media or on prominent billboards, or they could have signage outside their offices or branded vehicles.

Evaluate your competition by:

• identifying direct competition to your business and map out their strengths, weakness and differences (e.g. operating in the same target geography, offering the same services, offering similar prices etc.)
• identifying indirect competition (e.g. residential care homes or nursing homes) and identify their strengths and weaknesses
• mapping out how you plan to differentiate from this competition

Having a thorough understanding of your competition will enable you to see clearly any ‘gaps’ e.g. how your business can stand out from the crowd; what services aren’t currently being offered; what price points aren’t available; and what target customers’ needs aren’t being met.

A marketing strategy is an important part of your domiciliary care agency business plan . Effective marketing will target the right audience at the appropriate time and via the most relevant channels. This will ensure that you have customers flocking to your new business.

Your strategy should detail:

• any tasks that need to be completed before marketing begins e.g. creating a logo, setting up a website and business phone number etc.
• when you plan to promote your business, for example during the launch period, and then ongoing activity
• what tactics you plan to use, e.g. advertising, leaflet drops, website, branded vehicles etc.
• proposed budget for marketing activity

You can also detail incentive schemes for clients to prompt word of mouth, and any other ways you plan to promote your business, such as networking.

Write Your Home Care Agency Business Plan Today

Launching a new business takes careful consideration. Dedicating time and focus to creating a comprehensive business plan will ensure your domiciliary care agency booms rather than goes bust.

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Between the UK’s ever-growing ageing population and the NHS crisis, demand for domiciliary (or home-based) care services is skyrocketing – and the industry is worth a whopping £7.8bn per year.

While the NHS provides care to countless vulnerable adults and elderly people, there’s plenty of room for new independent care agencies to offer care services to those who need them. Just look at the success of Startups 100 2023 business, Lottie . Founded in 2021, it has taken on a valuation of £45m in just two years.

Your business will find reliable, qualified care providers for clients, collect payment, and then pay your staff a fair portion of these earnings. It’s possible to manage your care partners or carers remotely without having to pay for office space – though you’ll still face significant start-up costs in the form of staff salaries and training.

To make a successful home care business plan , you’ll need to have qualifications and ample experience in the care sector, the ability to effectively manage a team, and a burning desire to provide high-quality, compassionate care. If this sounds like you, read on to find out how to start a home care agency.

The key steps to take when starting a home care agency are:

Your care agency business plan, regulations and training, registering with the cqc, equipment and costs.

• Managing care agency finances

Attracting care workers to your agency

Securing contracts and growing your agency.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

First of all, you’ll need to think about the types of home care you’d like your home care agency to provide – for example:

• Nursing and healthcare
• Personal care – such as dressing or washing
• Emergency care
• Housekeeping or domestic work
• Help with cooking and preparing meals
• Companionship

The type of care you’re able to provide will depend on your (or your staff’s) experience, skills and qualifications. In the care sector it’s of utmost importance that you hold the qualifications necessary to carry out certain services, but more on that in section two.

You’ll also want to consider whether your agency will provide care to clients in:

• Regular 15-minute visits
• Day-long care, for example in eight-hour shifts
• Round-the-clock 24-hour care
• Anything in between
• All of the above!

Again, this will depend on what you and your staff are qualified for and experienced enough to do – and what your clients need from you.

It’s worth investigating your local area and finding out what sort of care is in high demand. Take a look at popular local care services and find out what they provide.

Will Donnelly is co-founder of Lottie , an online care agency community. Donnelly said that the past two years has shown the country how important the social care market is, creating new opportunities for healthcare startups.

“Without the incredible efforts of our social care heroes, there is no way the country would have got through COVID-19.

“I believe COVID-19 is an opportunity for homes and the wider sector to adopt more digital and tech products, which in turn will lead to huge sector efficiencies and operator savings.”

Alternatively, if you’re interested in launching  a care home  rather than a mobile home care provider, check out our detailed step-by-step guide to starting your own care home .

Writing a business plan

Though it may seem like a mammoth task, writing a business plan will help you to think in depth about every aspect of running your business – from people management to marketing to financial forecasts – helping you to plan accurately for the future and pre-empt any obstacles.

Don’t feel like your business plan has to be set in stone. As Ranjan Singh, co-founder and CEO of HealthHero , Europe’s largest telemedicine provider, told us “it is okay to walk away, change and adapt your business. Sometimes a business cannot succeed down a certain path for reasons that are completely outside your control.”

To get started, we’d suggest checking out our free business plan template .

Once you’re up and running, the  CQC  ( Care Quality Commission  – the important regulating body for all things care) will undertake regular inspections of your agency to ensure it’s up to scratch.The commission will seek to answer the below questions about your agency. Stick to these expectations and you won’t go far wrong…

Is it safe? You and your carers should:

• Respect your clients and protect their dignity.
• Rectify and investigate any mistakes or incidents openly and immediately.
• Be open with clients about their medications, and store and administer them safely.
• Be reliable, and ensure clients are made aware of any upcoming changes.

Is it effective? You and your carers should:

• Have the knowledge and skills required to work with given clients.
• Ensure clients stay in good health by understanding their needs and listening to their preferences.
• Give as much control to the clients as possible.

Is it caring? You and your carers should:

• Know your clients’ backgrounds and hopes for their care.
• Encourage clients to share their views.
• Develop trusting, positive relationships with clients and care about their wellbeing.

Is it responsive to clients’ needs? You and your carers should:

• Work with clients and their families and friends to develop personalised treatment and support plans which adapt to clients’ changing preferences.
• Plan and support with any hospital visits as required.
• Take complaints and concerns seriously and deal with them quickly.

Is it well-led? You should ensure that:

• Your staff are happy, well supported by management, support one another and know what’s expected of them.
• Staff feel confident that, if they report any concerns, they’ll be taken seriously and their worries will be investigated.
• Staff provide the best care that they can and work well with others who are involved in their clients’ care.

Will Donnelly advises care startups not to get too bogged down in early-stage planning, as he learned when developing the Lottie MVP (minimum-viable product).

“Your assumptions will be wrong and product iteration is everything. Other than taking an MVP approach, I would always advise every new founder to speak to as many customers as possible. At Lottie, this is something I took huge pride in and before hiring any other Care Experts, I was responsible for handling Lottie’s first 1,000 enquiries and handling them in a very manual way.

“While it was incredibly exhausting, and at times felt very unproductive, [with] this unique insight that I gained that will define Lottie’s product roadmap in the future.

Chris and Will Donnelly, co-founders of Lottie

Need help staying on track?

If you’re starting a care home then you’ll be facing a number of tasks. Keeping everything organised is vital, and we recommend using a software management tool to help.

Project management software is a great help whether you’re working alone or with others. You can assign tasks, streamline projects and effectively track progress all in one place.

Find out which project management tool we recommend today .

Every care agency must have what’s known as a registered manager – an individual who manages the day-to-day running of the agency and oversees its activity, ensuring it complies with regulations.

While this doesn’t have to be the business’ owner, it also can be – so unless you decide to recruit a senior staff member right away, you’ll likely act as the registered manager yourself.

You do need to have the experience and qualifications called for by the role, though – including either:

• A QCF Level 5 Diploma in Leadership for Health and Social Care (either a pathway in Management of Adult Services or Management of Adult Residential Services),
• A Registered Manager’s Award (RMA), or
• An NVQ Level 4 in Leadership and Management for Care Services

While the latter two are no longer offered, they are still accepted by the CQC as valid qualifications.

It’s also worth noting that these qualifications do need to be supplemented by another which shows you have a practical understanding of your specific care setting. For example, a nursing or health and social care qualification.

If you’re going to be providing care to clients yourself, you (and any care staff you hire, for that matter) must also have completed what’s known as  common inductions standards (CIS) training .

Before you take  any  steps towards getting started, you must first register with:

• The Care Quality Commission (CQC) if you’re based in England
• The Care Inspectorate if you’re based in Scotland
• The CSSIW if you’re based in Wales

It’s a legal requirement under the Health and Social Care Act that you do this; registering both  your agency  and the person who’ll be your  registered manager  – whether that’s you or someone else.

Registering with the CQC is a fairly long process – but it gives you the opportunity to prove that you’re appropriately qualified, experienced enough, and truly committed to providing home care of exceptional standards.

As part of the registration process, you will:

• Apply for a  DBS (Disclosure Barring Service) check . This check aims to prove whether or not you’re legally able to work with vulnerable adults – so without passing your DBS check, you can’t legally set up a care agency. If you have any co-founders and a registered manager who isn’t you, they’ll also need to undergo a DBS check.
• Supply  references  from previous employers.
• Give a reference from  your GP  which states that you’re healthy and fit enough to provide care for others.
• Fill in the appropriate  CQC registration form .
• Apply to be named  registered manager  (or have your intended registered manager fill in an application to be named so).
• Create a  statement of purpose . This should cover every aspect of your business in detail – including the services you’ll be providing, what you intend to achieve with your agency, and your contact details. Don’t worry – the CQC provides a template to help ensure you don’t miss anything important.

Once you’ve done all of the above, you’ll be able to submit your CQC registration application! You can get started online by visiting  the CQC website .

In order to register, you’ll need to pay an annual registration fee. You can calculate what your registration fee will be by multiplying the number of clients you’ll have by 45.77, then adding 239: Your registration fee = £239 + (number of service users × 45.77)

NB: This fee can reach a maximum of £78,047. This applies to those who have 1,700 service users or more.

Because you and your staff will be responsible for your clients’ wellbeing – coming into close contact with them and administering medications and treatments – your business will need to be insured against any costly legal claims that could come your way.

You’ll need to look into getting:

• Public liability insurance
• Professional indemnity insurance
• Employers’ liability insurance
• Medical malpractice cover
• Treatments liability insurance

Plus any other covers which you believe are suitable.

Rather than buying these covers separately, it may be that you’re able to find an insurance package specifically for care agencies. Remember to shop around rather than settling on the first offer you see.

It’s difficult to predict how much it’ll cost to start a care agency. Your start-up costs don’t have to be crippling – after all, you can start from home, and won’t need to hire hordes of staff right away – but you will have a few significant outlays:

• Paying your CQC registration fee (you’ll need to pay this once a year to keep your registration)
• Getting insurance
• Paying staff salaries
• Taking on marketing costs (i.e. paying for a website building service, organising promotional materials, etc)
• Buying or renting care agency software
• Paying for any training required by you or your staff
• Renting an office space (if you’re not starting from home)

When you start up, you might find that cashflow can be problematic – for example, you might have to pay a member for staff for care that they’ve provided before the client they cared for pays you.

In the Startups Forum, forum user Hannah states the importance of having “positive cashflow”, and advises: “You need a strong factoring company to support cashflow.” You can find out more about what’s available in our guide to the best factoring companies .

When it comes to starting a care agency, you won’t need much in the way of equipment – but as you’ll be dealing with confidential care records you should ensure your business operates from a room (whether that’s a room in your home or in an office space) that can be  locked tight .

You’ll also want to invest in a fire-proof, lockable unit – such as a  safe  or  filing system  – where confidential staff and service user records can be stored.

Of course, if you opt to go paperless and only store records digitally using a  care software programme , this won’t be so much of a concern for you – though you will need to ensure your  computer or laptop  – and the software on it – is password-protected and stored securely when you’re not in your office.

You might also choose to supply  care uniforms  for your staff, although it’s also perfectly acceptable for you to ask them to purchase their own. If you do this, though, you’ll need to be able to direct them to a reputable company from which they can buy their uniform.

You will, however, need to supply your staff with  photographic ID badges  – it’s important that they have these on them when visiting clients’ homes and carrying out care services.

It’s also a good idea to provide any  protective clothing  that your staff might need, such as aprons or disposable gloves.

Home care software

If you want your care agency to run smoothly without the need for endless paperwork on your part, investing in home care scheduling software is a must.

In short, care agency software aims to automate administrative, paperwork-heavy tasks that might otherwise take you (and your staff) hours to complete.

A good software package can enable you to:

• Plan and record your staff’s shifts and appointments in a digital timetable
• Hold a record of both your staff and clients’ details
• Possibly ask staff to check in and out of appointments so you can monitor their activity

If you opt for a cloud-based software system, you and your staff will be able to access the portal remotely using any device – from office computers to personal smartphones. So if you/they need to check schedules or upload notes on the run, you can.

You’ll save yourself a lot of time and headache if you opt for a package which also includes financial capabilities such as accounting and invoicing, and HR functions.

There are a number of software packages on the market for call scheduling, rotas, invoicing and call monitoring.

But new providers should be wary of off-the-shelf packages for policies as many of them are not compliant with the Health and Social Care Act essential standards.

You might also want to consider creating a business email to better communicate with your patients. Check out our step-by-step guide on how to create one.

Will Donnelly, co-founder of Lottie , an online care agency community,  emphasised the importance of digital solutions when starting a social care business.

“The social care market is broken in so many ways. Consumers lack transparency, it’s digitally backwards and in the long-term, the sector is unsustainable without a dramatic increase of funding and innovation.

“For me, the opportunity to redesign a sector from the ground up is incredibly exciting, but also to instil positivity in an unloved market and to champion families across the UK in one of life’s most stressful scenarios.”

Handling your care agency’s finances

Starting a business takes money and time, and accountancy software can help with both. Whether you’re self-employed, a sole trader, or running a business with staff, you’ll need to stay on top of your finances. If you’re not ready to employ an accountant to help out, then we suggest using an online accountancy tool.

Running a care agency can be hectic, so you probably don’t want to spend a lot of time thinking about your money. However, you can’t ignore it if you want your business to succeed. Accountancy software is designed to simplify the complex processes related to money.

From tracking your outgoings to managing your taxes, you’ll find any finance process simpler with the right tools in place. Take a look below at the accountancy software that we’ve rated highest.

Ranjan Singh, co-founder and CEO of HealthHero, told us that there is lots of different financial information to keep track of when running a care business: “There is a range of information that is critical to me on a very regular basis, but first and foremost it is about growth.

“I keep a close eye on metrics related to service levels, the consultations we offer people, and client satisfaction. Then, of course, product integration/development, budgets and where we are placing our bets in terms of investment in technology. We are growing so quickly and we have such a huge opportunity to change healthcare for the better, that being laser-focused on our objectives is critical for success.”

Hiring qualified, trustworthy, friendly and reliable care workers is crucial to the success of your home care agency.

First, you need to attract candidates using a  targeted recruitment strategy . Think about the type of person you want to hire, and advertise the job in the places they’ll see it. For example:

• Get in touch with local universities and ask them to share your details with graduates in care qualifications.
• Consider taking on apprentices.
• Partner with your local JobCentre Plus, asking them to put you in touch with candidates with the right values and qualifications.
• Advertising the role on your website.
• Listing the vacancy on online job websites such as Reed and Indeed, or on the government’s Find a Job service.

NB: Any staff you hire must:

• Undertake a  DBS check  to confirm that they’re legally able to work closely with vulnerable adults and children.
• Complete  CIS training  and gain a  Care Certificate  (if they’re new to the care sector). If they haven’t already done this, they can do so after you hire them – but it must be within 12 weeks of their starting to work for you.

After hiring a new care worker to your agency, you’ll need to be prepared to pay for any training they need to advance their skills, and shadow them as they go out on care visits and shifts until you’re confident that they’re strong care workers.

While inducting a new carer can be costly and time-consuming, it’s also a crucial process. One of your workers providing inadequate care to a client could lead to a loss of clients, legal claims and even bad publicity – so inducting and training carers properly will benefit your business in the long run.

Will Donnelly told us: “As a first-time founder (ignoring my events business previously), I’ve learnt so much about employment and people management. Ultimately, you can’t do everything yourself and finding/maintaining incredible talent is what defines any business.

“Thankfully, I have started Lottie with my brother, Chris, who’s previously built a successful business, which has allowed us to jump a lot of the hurdles, I would have inevitably been tripped up by.”

Care agencies can receive care contracts from their local authorities, who pay them for the services they provide to clients.

While this can be a simpler way to gain contracts than attracting private clients through marketing, it’s worth remembering that local authorities often don’t pay very well. So, while tendering for contracts from your local council can be a good way to kickstart business, it’s not always viable to rely on them as you grow.

Local authorities do give contracts to new care providers, especially those in their own borough. Some local authorities are allowing new domiciliary care providers to bid for tender; even those who have not yet been inspected by CQC and are new care service providers.

The number of service using clients is growing all the time, and there are only so many existing service providers in one borough. If the existing service providers do not have the capacity to accommodate new service users, the local authority will gladly take on new service providers and keep business in their borough – otherwise users go to their neighbouring areas for new service providers.

There are certain rules and regulations within the public sector about making space for new start-up businesses and not always going for the big fish to give new start-ups a chance, but as mentioned, different local councils work in different ways in terms of whether they follow that rule or not.

Will Donnelly, co-founder of Lottie, said: “ To date, we’ve been overwhelmed by the reception for Lottie, both from customers (families) and care partners. However, doing something different and new in any sector is always going to have its challenges, let alone a market as behind as the care home industry.

“But, persistence is key and staying true to your company’s value and mission is paramount.”

Marketing for private sector clients

Alternatively, care agencies can publicly advertise their services in order to encourage clients to organise care directly with the agency.

In order to market your agency, you should try:

• Setting up a website. No matter how you get your contracts, an informative, easy-to-use website is a must – you can set one up by either hiring a freelance web designer or using a website builder software. Be sure to list your services, price packages and contact details on your site, and optimise it for search so that it appears on Google when someone searches for care in your area.
• Leaflet drops.  These entail printing out a number of professional-looking leaflets – which detail your services and list your contact details – and delivering them through local letterboxes into peoples’ homes. This is something you can do yourself, or enlist the help of an organisation that can coordinate large-scale postal campaigns, such as Royal Mail.
• Traditional advertising.  Have an advert printed in the local paper and magazines, or read out over the radio. Just ensure what you’re putting out there is of a professional standard – you may need to hire a freelance designer or copywriter.
• Referral marketing. Reach out to local doctors and hospitals and work to build a positive relationship with them, with the aim that they will recommend you to their patients who are in need of home care. You should also ask current clients to spread the word about you.
• Social media.  This is a good way to grow your client base and connect with people who might be looking to use, or learn more about, your service. As with a website, be sure to list your services, price packages and contact details on your site, and optimise it for search so that it appears on Google when someone searches for care in your area.

Lottie’s Instagram profile

What’s next?

If you’re an experienced care professional and feel confident that you’d be able to lead a team of care workers, starting your own home care agency could be the ideal business opportunity for you.

Remember: quality of care is key. If you strive to treat every client as you’d like your own family members to be cared for – and instil this outlook into your care staff, too – your care agency could well succeed.

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How to set up a home care agency

Domiciliary care, also known as home care, is an incredibly personal and community driven business to start. Care lies at the heart of so many people’s lives and the decision to become a provider is as impactful on the lives of your clients as it will be for you. Many people become care providers because of personal experience, either with care themselves or with a loved one. Their drive born from their compassion, and a desire to help improve the services available in their community.  

Of course, it is also a substantial business decision. One that will require thorough forethought and constant attention to become successful. Domiciliary care software, preparing for the relevant care agency regulator, finding the right home care provider insurance, defining your statement of purpose, recruiting and retaining care workers and more are all important aspects to consider. 

Starting a domiciliary care business 

Here are some top tips for anyone looking to start their own home care business based on what we have learned during our decade plus years of supporting domiciliary care providers in the UK and Ireland. 

Home care market research  

A solid business plan is vital for any successful venture. Conduct extensive research on the local market and competition in the area to determine what services are in demand, what you can provide and what it is reasonable to charge. This will enable you to create a solid business plan and define a deliverable statement of purpose.

Create a business plan  

Work out your company’s structure, goals, and objectives by creating a business plan. Remember to consider the financial, legal, provider insurance, marketing, and management aspects of the organisation, including potential sources of funding and your target audience. For example, are you targeting a private client base or will you be competing for Local Authority contracts? 

The figures vary greatly when estimating how much it costs to set up a care agency. This is because the factors vary greatly too. You must account for everything from staff costs and equipment to home care provider insurance and software. If you are starting a small home care business in the UK, the consensus is generally between £3,000 to £15,000 to start a care agency. For those with larger ambitions it can increase to £35,000 up to £100,000 . 

How to register your care agency the right way  

There’s always a lot of paperwork at the start! You’ll need to obtain home care provider’s insurance, establish policies and procedures, and register your care agency with the relevant regulator. More information can be found on the relevant regulator’s website. 

• England: Care Quality Commission  
• Scotland: Care Inspectorate  
• Wales: Care Inspectorate Wales  
• Northern Ireland: Regulation and Quality Improvement Authority  
• Republic of Ireland: While the HSE have put in some controls to help quality assurance of home care there is no statutory regulation.

Develop a service model

Based on your market research, create a comprehensive business plan that outlines your services, pricing, and operations. Determine the hours of operations, create job descriptions, and develop a recruitment plan for your employees. There are a number of apps and social media groups to help you with home care recruitment.  

Build the right team

Care provision is a deeply personal experience. People are welcoming you into their homes and asking for help at their most vulnerable. You will need an amazing team of people to help you grow a successful service. The CQC’s latest ‘ State of Social Care ’ report highlights successful providers’ focus on staff development and retention. How you recruit and retain care workers will have a huge impact on the quality of your care. We advise hiring for culture and compatibility. Providing care requires the right people with the right skills, and it is much easier to learn the latter than the former. 

You will also need to ensure you have the necessary leadership and qualifications. When starting a home care agency many owners are also the registered manager. Of course that begs the questions; what qualifications do I need to start a home care agency? 

The answer varies depending on where you are:

QCF Level 5 Diploma in Leadership for Health and Social Care (Management of Adult Services)    The CQC still accepts the below qualifications, however they are no longer obtainable for those starting a home care agency. 

A Registered Manager’s Award (RMA for short) 

NVQ Level 4 in Leadership and Management for Care Services  While these qualifications are not mandatory, the CQC will expect you to demonstrate you have the relevant experience, qualifications and skills.

Scotland 

The Scottish Social Services Council accepts a range of qualifications which you can view here.

Wales and Northern Ireland 

The Level 5 Diploma in Leadership for Health and Social Care Services (Adults’ Management) 

Take care of your team (recruit and retain care workers effectively)

It is important to note that recruitment and retention is one of the major challenges in social care currently. While there is a large amount of turnover in social care, many of the people who leave their roles, leave them for another role in care . This shows just how important it is for you to take care of your team. Burnout is a serious condition and a real possibility, and something you could very well face yourself when starting out. It’s important to extend understanding, dignity and purpose to everyone in your service , and not just your clients. An increasingly popular way to promote growth is by facilitating education for your workforce , such as the care certificate in England. 

Establish a client base

If you are starting a home care business you will need clients. Community work and marketing are the cornerstones for developing a client base. Your ability to engage with your local community and raise awareness about the service you provide both at local events and online are crucial. Connect with local elderly groups, charities and associations. Utilise their events to spread the word about your service, such as exhibiting or conducting leaflet drops. Word of mouth is huge in social care, so the experience of your first few clients will shape the success of your business.  

There are also national organisations like the Home Care Association and Home and Community Care Ireland. These run many supportive and educational workshops for their members as well as representing their needs on a national stage. 

Using home care software to your advantage

At the start it will feel like you have a thousand things to do every 20 minutes. Picking the right technology partner with the right home care software is vital. They can help you establish simple clear processes with rostering software and comprehensive record keeping, empowering you to focus on more of the many other things demanding your attention each day. Nourish has supported thousands of home care agencies in streamlining their service; we have more information for effectively implementing technology in home care and case studies of people using our system. 

Develop a billing system for your domiciliary care agency 

Determine your payment model and the payment options available for your clients. A key question for everyone when starting a home care business is: will you be accepting Local Authority contracts?   

Depending on your area this could be a viable approach to gaining clients, however rates for LA contracts vary based on where you are. The Home Care Association have previously produced a comprehensive examination into the varying rates of commission for home care providers across the UK that can help you understand your context . Finding the right domiciliary care software such as Nourish can help alleviate your billing stresses. 

Implement Quality Control

A quality control program can help you maintain the standard of care you offer, and continually improve your service provision. It is vital this includes feedback from both your clients and carers. Domiciliary care is community based, and you must listen to your whole community to ensure you understand what is going on. Your relevant care agency regulator will provide guidelines, but it is through community engagement you will find the best answers. Answers that will help you shape your statement of purpose as well. The right domiciliary care software can help you build a library of interactions and experiences to shape your quality control. There are also home care software platforms like our partners Altra which offer functionality to enhance your engagement .

Starting a home care business successfully 

Hopefully this article helps illustrate how to set up a home care agency. As you can see, starting a domiciliary care company can be challenging, but by following some of these top tips you could make the process smoother for yourself and your team. As a longstanding home care software supplier, we are here to help you every step of the way. Whether it is with specific functionality like rostering software, or more general advice like connecting you with other providers for guidance on best practice .

Book a demo with Nourish to find out how we can help

We’ve got over a decade of experience working with domiciliary care agencies – let us help your home care agency off the ground with sector-leading home care software.

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• Domiciliary Care Business Plan

March 27, 2023

Domiciliary care , also known as home care, is a rapidly growing sector within the United Kingdom. With an ageing population and an increasing desire for individuals to remain in their homes for as long as possible, the demand for quality home care services continues to rise. Consequently, starting a domiciliary care business can be both a rewarding and lucrative venture.

However, establishing a successful domiciliary care business requires careful planning and a comprehensive understanding of the various aspects involved.

This blog will delve into the process of writing a robust domiciliary care business plan, touching on the key components and offering tips on how to craft a compelling document that will help secure funding and attract clients.

Executive Summary

Begin your business plan with an executive summary. This section should provide an overview of your business, highlighting the key points that will be covered in more detail throughout the document. Include information on the market opportunity, your unique selling points, and the goals you hope to achieve. Be concise and clear, as this section should pique the interest of potential investors and partners.

Company Overview

In this section, outline the basic details of your business, including:

• Business name and legal structure (e.g., sole proprietorship, partnership, limited company).
• Ownership and management team, including their relevant experience and qualifications.
• The location of your business and the areas you plan to serve.
• Your company mission statement and values.

Market Analysis

A thorough market analysis is crucial to understanding the competitive landscape and identifying opportunities for your domiciliary care business. Research and include the following:

• An overview of the UK domiciliary care market, including current trends and growth projections.
• An analysis of your local market, including demographics, demand for care services, and existing providers.
• A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, identifies areas where your business can excel and potential challenges you may face.
• A clear definition of your target audience, including their needs and preferences.

Services Offered

Clearly define the range of services your domiciliary care business will offer. It’s important to strike a balance between providing a comprehensive range of services and specialising in specific areas. Consider the following:

• Personal care (e.g., assistance with bathing, dressing, grooming).
• Domestic support (e.g., housekeeping, laundry, meal preparation).
• Companionship and social care (e.g., conversation, social outings, emotional support).
• Specialist care (e.g., dementia care, end-of-life care, disability support).
• Respite care for family carers.

Marketing and Sales Strategy

A well-thought-out marketing and sales strategy is essential for attracting clients and building your business’s reputation. Outline your approach to promoting your services and engaging with potential clients, considering the following:

• Branding and positioning, including logo, colours, and key messages.
• Marketing channels, such as local newspapers, radio, social media, and online directories.
• Networking opportunities, including partnerships with local healthcare providers, community groups, and care associations.
• Client acquisition strategies, such as referrals, word of mouth, and targeted advertising campaigns.
• Customer retention tactics, including exceptional care quality, regular communication, and ongoing support for clients and their families.

Operations and Staffing

The success of your domiciliary care business hinges on the quality and efficiency of your operations. Detail your plans for managing day-to-day activities, including:

• Staff recruitment and training, ensuring that all carers meet the necessary qualifications and experience levels.
• Policies and procedures for safeguarding clients, maintaining confidentiality, and adhering to industry regulations and standards.
• Quality assurance measures, such as regular staff evaluations, client feedback, and continuous improvement initiatives.
• A system for managing client schedules, care plans, and staff rosters.
• Transportation arrangements for staff members, if required
• Plans for investing in technology and software to streamline operations and improve client care.

Regulatory Compliance and Accreditation

Domiciliary care providers must comply with a variety of regulations and guidelines in the UK. In this section, outline your plans for ensuring compliance and obtaining relevant accreditations, including:

• Registering with the Care Quality Commission ( CQC ) in England, the Care Inspectorate Wales (CIW) in Wales, or the Care Inspectorate in Scotland, depending on your location.
• Developing and implementing robust policies and procedures that adhere to the relevant regulatory frameworks (e.g., Health and Social Care Act 2008, Essential Standards of Quality and Safety).
• Ensuring staff are trained in and adhere to key legislation, such as the General Data Protection Regulation (GDPR), the Equality Act 2010, and the Health and Safety at Work Act 1974.
• Pursuing relevant industry accreditations, such as ISO 9001 or Investors in People, to demonstrate your commitment to quality and continuous improvement.

Financial Projections and Funding Requirements

A strong financial plan is essential for demonstrating the viability of your domiciliary care business and securing funding from investors or lenders. This includes:

• A detailed start-up budget, outlining the costs of setting up your business, such as registration fees, insurance, equipment, marketing, and initial staff recruitment and training.
• Revenue projections for the first three to five years of operation, based on your market analysis and projected client base.
• A cash flow forecast, illustrating your expected income and expenses on a monthly basis, including staff wages, rent, utilities, marketing, and other operational costs.
• A break-even analysis indicates when your business will become profitable.
• Funding requirements, detailing the amount of investment needed to launch and grow your business, and how the funds will be used.
• A contingency plan, outlining how your business will manage potential risks and setbacks, such as changes in regulations, market downturns, or staff shortages.

Risk Management and Mitigation

Every business faces risks, and it’s crucial to identify and plan for potential challenges in your domiciliary care business. In this section, discuss the key risks associated with your business and the strategies you’ll employ to mitigate them. Some common risks and mitigation strategies include:

• Staff shortages: Implement an effective recruitment and retention strategy, offering competitive wages, comprehensive training, and opportunities for career development.
• Client safety and well-being: Develop and enforce robust policies and procedures for safeguarding clients, providing ongoing staff training, and maintaining high care standards.
• Regulatory compliance: Stay up to date with industry regulations and guidelines, conducting regular internal audits and seeking external guidance as needed.
• Market competition: Continuously improve your services and marketing efforts, differentiating your business from competitors and building a strong reputation in the community.

Exit Strategy

While it may seem counterintuitive to plan for the end of your business at the outset, having an exit strategy in place can be beneficial for both you and potential investors. Your exit strategy should outline the circumstances under which you might consider selling or closing your business, as well as the steps you would take to ensure a smooth transition. Common exit strategies include:

• Selling the business to a larger domiciliary care provider or another interested party.
• Merging with another care provider to create a larger, more competitive entity.
• Passing the business on to a family member or trusted employee.
• Liquidating the business and distributing assets to stakeholders.

Let’s sum it up!

Writing a comprehensive domiciliary care business plan is a crucial step in establishing a successful and sustainable business in this growing sector. By thoroughly researching and addressing each aspect of your business, from market analysis and services offered to financial projections and risk management, you can create a robust roadmap for your domiciliary care venture. Not only will a well-crafted business plan help you secure funding and attract clients, but it will also serve as a valuable tool for guiding your business’s growth and development over time.

Remember, the business plan is a living document, and it’s essential to revisit and update it regularly to reflect changes in the market, regulations, and your business’s evolving needs. By staying proactive and adaptive, you can ensure that your domiciliary care business remains competitive and continues to provide exceptional care to your clients.

In summary, crafting a compelling and comprehensive domiciliary care business plan involves:

• Writing a clear and concise executive summary.
• Providing an overview of your company’s structure and values.
• Conducting thorough market analysis and defining your target audience.
• Detailing the services, you’ll offer and any specialisations.
• Outlining your marketing and sales strategy for client acquisition and retention.
• Developing plans for efficient operations and staffing.
• Ensuring regulatory compliance and pursuing relevant accreditations.
• Creating detailed financial projections and identifying funding requirements.
• Addressing risk management and mitigation strategies.
• Considering exit strategies for potential future scenarios.

By addressing these key components in your business plan, you will be well-prepared to navigate the challenges and opportunities that come with running a domiciliary care business. As you embark on this rewarding journey, always keep your client’s needs and well-being at the heart of your decision-making and strive for continuous improvement in both your services and operations. With dedication, passion, and a solid plan in place, you can make a meaningful impact on the lives of those in need of quality home care, while building a thriving and sustainable business in the process.

Need help with developing a business plan?

Now you know about Business Plans, you may wonder how we can help you.

At Hudson, we specialise in writing bespoke business plans for Care Agencies for your marketing endeavour or as a part of the tender response. If you want an outsourced approach to writing a business plan for your care agency, our Succeed division is here to help. Our  Bid Management Consultants have over 60 years of experience in bid writing and an 87% success rate, allowing us to create a business plan funders like to see.

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Once you’ve found the perfect bid for your business,  send it  our way. Our  Bid Writers  can take care of the whole thing for you they’ll even submit it on your behalf. They’ll let you know what they need from you, providing you with a full  Tender Writing  breakdown.

Tender Ready

Our  Tender Ready  4-week programme is perfect for businesses that have never tendered before. A Bid Writer will work with you to ensure you have everything in place to tender successfully. Tender Ready offers your business:

• A 12-month subscription to one  Hudson Discover
• Access to Global Bid Directors and Senior Bidding Professionals.
• An Organisation-wide Bid library, including 3  case studies , 5 CVs and policies.
• Additional flexible benefits.

Tender Improvement

If you’ve been tendering but aren’t seeing success from your current efforts, our  Tender Improvement  package can help. Our Bid Team will assess your previous responses and  tender documents . They will work with you to improve for future submissions. This package includes a 12-month subscription to a Hudson Discover portal and additional tendering development services.

Tender Mentor

If you’ve written your tender response and need it double-checked for errors, Tender Mentor can help. A Bid Writer will proofread your work for any inconsistencies, grammar, or spelling mistakes. They will also ensure it’s in line with the specification before you submit it. This is a great way of improving your skills and understanding of how to polish your tender.

Additional support:

Do you only require assistance with PQQs or SQs? We can help!

Submit the relevant information regarding the work you need, and we will provide a quote for the work agreed upon.

We provide support at all levels of the bid writing process, so if you simply need it proofread before you submit it, we can also help with that!

Discover Elite

Need help finding healthcare tenders ? At Hudson, we can help you find the right tenders for your business through our sector-specific portals!

Upgrading to Discover Elite can optimise your tendering efforts!

Our two new time-saving tools can improve competitor awareness and success rate when bidding for a contract:

The Ultimate Time Save Package (for those on the go!)

• Five tender breakdowns per month.
• Annual subscription to two sector-specific portals.
• Dedicated account manager.

The Become a Pre-Bid Master package

• All of the above.
• Seven tender breakdowns per month.
• Bid Strategy delivered by a Senior Bid Manager (minimum five years experience). Our Global Bid Director will manage the bid strategy.

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From micro-businesses to large organisations, we provide ways to make your business stand out from the crowd. We can transform your bid into a professionally designed tender document!

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Find more helpful tips and advice in our blogs. We cover topics including:

• How to Prepare Your Graphic Design Business Plan
• How to Write a Good Business Plan: 7 Tips from the Experts
• Cleaning Services Business Plan: Explained 
• How to Make a Business Plan Step by Step
• How to Write Up a Business Plan: 6 Tips You Need to Know!
• How to Prepare a Business Plan in 8 Steps

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Contact a consultant, the importance of financial projections in a business plan, navigating the business planning process: step-by-step guide, funding your business: how to use your business plan to attract investors, from idea to execution: the role of a business plan in startups, the role of market research in business planning, how to tailor your business plan for different audiences.

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