You might be wondering how to start a homecare business. Perhaps you’re currently working as a self-employed carer, or you’re employed by a care agency, and want to progress your career. Or maybe you’ve identified a gap in the market in your local area and want to support people who need extra help.
Setting up a care business can be a challenge, so we’ve broken down some of the key steps to embarking on this business venture. We’ve also included some key resources that will help you get things set up.
This step-by-step guide will walk you through the essential steps on how to start a homecare business and get it running successfully.
Key Takeaways
There are some important steps to take before you open a homecare business, and it’s not always an easy process. You don’t need to have any specific educational or business background, but you’ll need to do your research before you begin.
You’ll need to take the following steps to open a care business:
- Research and understand the industry
- Create a business plan
- Register your business and obtain the necessary licences
- Arrange the correct insurance
- Develop policies and procedures
- Secure funding and manage finances
- Hire and train staff
- Purchase necessary equipment
- Market your services
- Maintain compliance and quality standards
If setting up care business plans and running a homecare organisation aren’t for you, you might be interested in becoming a self-employed carer instead.
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How to Start a Homecare Business
The majority of the 12,500 homecare business in the UK are small. They might cover just one or two towns or villages, and employ only a few care staff. And lots of people who work in care management started off as carers themselves.
You don’t need to have any particular qualifications or educational background to found a business in the UK. But if you’re going to provide care services and work with vulnerable people, there are a few things you’ll need to do before you get started.
If you’re planning to open a care business, you probably already have an idea of who you want to support and how. But first, here are some questions you should ask yourself:
- Do I want to support a certain group of people, such as people over 65, those with dementia, or people with learning disabilities?
- Do I want to provide long-term care, or short-term support for people needing respite care or help after an injury or hospitalisation?
- Do I want to offer live-in care or hourly care visits?
- Do I want to provide simply personal care, or companionship, housekeeping, or other services?
Adult social care is a growing industry. Over the next five years, it’s expected that more than half a million more care staff will be needed to meet the growing demand. But that doesn’t mean setting up a care business is easy. Let’s look at the steps in more detail.
1. Research and Understand the Industry
Before you start, it’s crucial to understand the home care industry, including the demand, competition, and regulations in your area. Conducting thorough market research will help you identify your target audience and potential challenges.
If you’ve already worked in the care sector in your area, you may already have some knowledge here, but if not, you’ll need to spend some time researching the market.
This might include researching current trends and needs, looking into existing providers in the area and nationally, and speaking to potential clients.
2. Create a Business Plan
A solid business plan is the foundation of your homecare business. Business plans can help you check that your homecare business idea makes sense, spot potential problems, set your goals, and eventually measure progress.
In your business plan, you should include:
- A description of your company, including any details about what makes it different from other homecare organisations
- The services you plan to offer
- Your target market, along with market research data that backs it up
- Information about your background, and the background of any other directors or other key personnel
- Your plans and growth strategies for the first few months and years
- Your pricing strategy
- Your financial projections
- Assessments of risks that you might face, including details about major competitors
Your business plan will be essential when seeking funding or partnerships.
The UK Government’s Business Support website offers a free business plan template and step-by-step guidance on writing a plan tailored to the care sector.
3. Register Your Business and Obtain Necessary Licences
Next, you’ll need to register your business with the appropriate authorities and obtain the necessary licences.
In the UK, you’ll need to register a limited company with Companies House.
If you plan to provide personal care services, you’ll need to register with the Care Quality Commission (CQC) in England.
The Care Quality Commission website provides detailed information on registration requirements, including guidance on compliance and inspections, making it an essential resource.
Note: If you’re based in Scotland, you’ll need to register with the Care Inspectorate, or the Care Inspectorate Wales if you’re in Wales. In Northern Ireland, it’s the Regulation and Quality Improvement Authority (RQIA).
4. Arrange the Correct Insurance
As a business owner employing staff, you’ll need to ensure that you have the correct cover to protect your business, yourself, and your employees.
It’s a legal requirement to hold employer’s liability insurance – this is insurance that covers your employees’ health and safety.
Carer employment insurance includes public liability insurance, employer’s liability insurance, and legal expenses cover. You may also need insurance to cover equipment and any business premises.
If your care staff drive between care calls or transport clients in their cars, they will need to check the details of their car insurance policy.
5. Develop Policies and Procedures
Creating detailed policies and procedures is critical to ensuring the quality and consistency of your services. These documents will guide your daily operations and help you maintain high standards of care. A policy explains what should be done and why, and a procedure will provide instructions on how to carry out an activity.
Your policies must comply with current legislation, and should be updated if regulations or best practice change in time.
You’ll need to have policies and procedures that cover topics such as:
- Safeguarding
- Record-keeping and confidentiality
- Whistleblowing
- Health and safety
- First aid
- Equality and diversity
- Medication administration
Skills for Care, an established organisation in the care sector, offers templates and resources for setting up care business policies and procedures.
6. Secure Funding and Manage Finances
When you’re considering how to start a homecare business, you’ll need to consider finances. Starting a business requires initial capital for expenses, including staffing, equipment, insurance, registration fees, and marketing.
The costs involved in setting up a care business can vary widely, depending on how many people you intend to employ and the wages you’ll pay, whether you have a physical office, the costs of any equipment you purchase, and your initial marketing plans.
Explore funding options such as business loans, grants, or even personal savings to finance your venture.
The British Business Bank offers insights into various funding options available to small businesses in the UK, along with advice on financial management and planning.
7. Hire and Train Staff
Hiring compassionate staff is crucial to the success of your care business – you can train people to carry out activities, but they need to have the right personality for care work.
Ensure that your recruitment process is thorough and that your employees receive adequate training to meet industry standards.
As part of your recruitment and on-boarding process, you should:
- Get references from previous employers
- Arrange DBS checks
- Involve clients in the recruitment process
- Plan thorough induction programmes, including explaining your organisation’s policies and procedures
- Support new starters to take necessary qualifications, such as the Care Certificate
The Recruitment and Employment Confederation (REC) provides guidance on best practices for recruitment, including legal considerations and training resources specific to the care industry.
8. Purchase Necessary Equipment
Setting up a care business may involve purchasing a range of equipment.
Some of the equipment used by your clients may already be in place in their homes, such as hoists, bath rails, or specialist beds. Other equipment might be provided by the local authority or NHS when needed.
However, you may need to purchase equipment such as:
- Personal Protective Equipment (PPE), including face masks, gloves, and aprons
- Hand sanitiser, so your carers can clean their hands even if running water is not available
- Assorted useful items for providing care, such as cotton wool, tissues, scissors, and tweezers
- Staff uniforms, if you ask your carers to wear them
- Computers, mobile phones, and other necessary technology
9. Market Your Services
Effective marketing is key to attracting clients. At this point, you’ll need to go back to your business plan and think about your target market. Who are you hoping to attract with your marketing?
You may want to talk to local authorities and commissioning teams, or target clients directly. Where are your ideal clients to be found?
Use both online and offline strategies, such as building a professional website and focusing on search engine optimisation, creating a social media presence, leafleting the local area, and networking with local healthcare providers.
For tips on building an effective marketing strategy, the Chartered Institute of Marketing offers free resources and courses that can help you develop a strong presence in your local market.
10. Maintain Compliance and Quality Standards
Learning how to start a homecare business isn’t the end of the story. Once your organisation is operational, it’s important to regularly review and update your policies, procedures, and training to make sure you’re compliant with regulations and following best practice.
Maintaining high-quality care standards will not only protect your business but also build trust with your clients.
The CQC website provides ongoing updates and resources on maintaining compliance, ensuring that your business stays on track with the latest regulations.
Conclusion: Setting up a Care Business
Setting up a care business isn’t always easy, but it can be incredibly rewarding and the next step in your social care career.
However, whether you’re a self-employed carer or operating a care agency, you need to protect yourself, your business, and your staff with the correct insurance.
Read more about our carers insurance policies and how we can best serve you.
