The 2021 Census 2021 confirmed that the UK has an ageing population. More than 11 million people in England and Wales are now aged 65 or older, which is 18.6% of the population, compared to 16.4% in the 2011 Census.
As a result, there is increasing demand for health and social care sector services, which provides a business opportunity that can be both rewarding and fulfilling.
If you are considering setting up a care home business, this blog post will help you navigate the process successfully.
Care homes provide accommodation, care and support to people who require assistance with everyday activities. Increased life expectancy and an ageing population have led to growing demand for social care, and the UK now has over 17,000 care homes which cater to a diverse range of needs.
There are two main types of care home:
Residential homes are recommended for people who don’t require 24-hour nursing care but are unable to live independently. They provide accommodation, meals, personal care and various daily activities.
In addition to the services outlined above, nursing homes also provide specialised nursing care. They are suitable for individuals with disabilities or complex medical conditions that require intensive, round-the-clock support.
Whether you choose to open a residential care home or a nursing home, you will need to determine the level of care you will offer. Here are some of the legal requirements you need to consider:
You will need to register your care home business with the relevant authority:
- In England, register with the Care Quality Commission (CQC)
- In Scotland, register with the Care Inspectorate
- In Wales, register with the Care Inspectorate Wales (CIW)
- In Northern Ireland, register with the Regulation and Quality Improvement Authority (RQIA)
You must ensure that all your staff and volunteers pass Disclosure Barring Service (DBS) checks and organise food hygiene training for any staff involved in preparing, serving or handling food.
You will need a range of insurance policies, including:
- employer’s liability
- buildings and contents
- medical malpractice
- legal expenses
- professional indemnity
- public liability
It’s best to seek professional advice to ensure that your insurance policies provide adequate cover for your needs.
You must ensure that you hire sufficient numbers of staff to provide the level of care your clients need. Your staff and volunteers must receive the appropriate mandatory health and social care training, including the Care Certificate for care home businesses based in England.
Staff and volunteers will also require training that is appropriate for their role, which could include health and safety training or fire safety training. As well as onboarding training for new staff members, you will need to organise regular refresher training and ongoing Continuous Professional Development (CPD) training.
Caredemy online health and social care courses are CPD-approved, making them ideal for your CPD training requirements. If you would like to discuss your training needs, please feel free to email our friendly Sales Team.
Every business has a range of financial considerations, and these are some of the main costs you will need to consider when starting a care home:
A significant portion (45-60%) of your annual budget will be spent on staff salaries, tax and National Insurance. Remember to budget for health and social care training courses as well as the cost of hiring cover staff when needed.
You will need to invest in essential equipment like mobility aids, lifting and handling equipment and specialist furniture. Depending on the building, you may also need to make adaptations to the care home environment to promote safety, mobility, and independence.
It’s worth investigating funding options that may be available from local councils or Community Health Services.
As well as the cost of purchasing or renting the care home premises, you will also be responsible for renovations, repairs and ongoing maintenance.
Be sure to include utility bills, insurance premiums and administrative expenses in your financial planning.
You should also allocate around 1-3% of your annual turnover for marketing and advertising costs.
Setting up a care home business requires compassion, dedication and the right resources. But owning a care home can make a positive impact on the lives of your clients while also allowing you to build a thriving business.
By ensuring you meet the regulatory requirements and budget carefully, you will lay a strong foundation for a rewarding business venture.