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. 

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. 

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.

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. 

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. 

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.  

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:

England

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) 

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. 

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. 

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. 

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. 

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.

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.

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.