Setting Up a Care Facility: A Practical Business Guide for First-Time Owners

Thinking about opening a care facility?

It’s probably one of the most fulfilling businesses you can get into. You help change someone’s life every day you work. The problem is…

Starting a care facility is hard work.

There are rules to abide by, employees to recruit, fit outs to manage and equipment to purchase. Get this wrong and it can cost you dear (and cause you headaches). The good news? With proper planning, first time owners can have their care facility up and running smoothly.

This guide walks through the exact steps needed to make it happen.

Let’s dive in!

Here’s what’s coming up:

The UK Care Sector At A Glance
Kitting Out Your Care Facility
Getting Registered With The CQC
Choosing The Right Premises
Hiring Your Care Team
Budgeting For Startup Costs

The UK Care Sector At A Glance

The care industry is booming right now.

There are more than 16,500 care homes throughout the UK and the demand continues to rise. In fact, nearly half a million people reside in UK care homes.

One factor behind the growth in demand is the UK’s ageing population. This trend is set to continue increasing demand in future. This creates massive opportunities for new entrants who understand the fundamentals.

Yet you can’t simply open your doors and wait for residents to walk in. You must have:

A registered facility
A trained care team
The right equipment
A solid business plan

Let’s get into how to make that happen.

Kitting Out Your Care Facility

The equipment side of things can feel overwhelming…

There will be hundreds of items you will need to purchase. Beds, hoists, riser recliner chairs. The list goes on and on. Make sure you have the basics down first.

Providing comfortable, supportive seating for healthcare environments is one of the best investments you can make. Your residents will spend the majority of their time seated. If chairs are uncomfortable, cheap or not purpose made, they will cause your residents discomfort and your staff more work.

Riser recliner chairs are a game changer for both residents and carers.

Here’s what to look for when picking riser recliner chairs:

Adjustable back and leg support
Built-in pressure relief cushions
Wipe-clean fabric for easy hygiene
A power lift function to help residents stand
Sturdy frames that can handle daily use

Quality riser recliner chairs help eliminate falls as residents rise to a standing position. Comfort throughout the day is appropriate and they eliminate back strain on carers lifting people from low seating.

Beyond seating, other essentials to budget for include:

Adjustable profiling beds
Patient hoists and slings
Wet room fittings
Emergency call systems
Wheelchairs and mobility aids

Don’t attempt to purchase everything upfront. Focus on what your initial residents will require and expand from there.

Getting Registered With The CQC

Every care facility in England needs to register with the Care Quality Commission (CQC).

There is no way around it.

The CQC ensures that your home is safe, effective and well-led before you are allowed to take in residents. Registration isn’t fast… most enquiries take 10-14 weeks.

Here’s what needs to be prepared:

A Statement of Purpose
Detailed policies and procedures
Enhanced DBS checks for staff
A registered manager with the right qualifications
Evidence that the premises are fit for purpose

Registration can be an uncomfortable process. However, cutting corners is much more painful. You could be hit with fines, enforcement or prosecution if CQC pick up on problems later on.

Bonus tip: Begin registering 6 months prior to when you intend to open. You’ll have lots of cushion.

Choosing The Right Premises

The building you pick will shape everything about the business.

There are two main options:

Buy an existing care facility — faster to open but more expensive upfront
Convert a property — cheaper to acquire but takes longer to set up

Either scenario, the property will have to meet stringent care home standards. Room sizes, wheelchair access, fire regulations and bathroom ratios etc. all come into play.

Location also plays a massive role. The best care facilities are:

Close to hospitals and GP surgeries
Easy for family members to visit
In quiet, safe neighbourhoods
Near local amenities and public transport

Don’t rush this step. Choosing the incorrect building will cost you thousands in alterations later.

Hiring Your Care Team

Your staff are the heart of the facility.

People visiting your home will decide if they like your facility by how your staff treat them. Hire right and everything else becomes easier. Hire wrong and you will have grievances, high turnover and CQC issues.

Every care facility needs:

A registered manager
Senior carers and shift leaders
Care assistants
Nurses (if offering nursing care)
Kitchen and cleaning staff
Maintenance and admin support

Training is compulsory. All staff must be trained in safeguarding, health and safety, moving and handling and infection control prior to working with residents.

This isn’t the place to skimp. Inexperienced, low-paid staff will end up costing you much more.

Budgeting For Startup Costs

Now for the big question — how much does this cost?

Industry reports suggest that startup costs range from £150,000 to in excess of £1.2 million, depending on size and specification.

Your budget should cover:

Premises purchase or lease
Refurbishment and fit-out
CQC registration and legal fees
Equipment and furniture
Initial staff wages
Marketing and launch costs
Working capital for the first 6 months

Many first-time owners underestimate working capital. It can take months before your beds are full and you have reliable revenue. You need adequate cash reserves to cover payroll and expenses while you build.

Most banks will want to see a full blown business plan before they offer finance. Factor in anticipated occupancy rates as well as running and staffing costs.

Bringing It All Together

Setting up a care facility takes serious planning…

However, it’s totally possible when taking each step in proper sequence. To briefly review:

Study the market and understand demand
Kit out the facility with quality equipment and comfortable seating
Register with the CQC and get all the paperwork sorted
Pick the right premises for your target residents
Hire and train a strong care team
Budget properly for startup and working capital

There is a demand for quality operators in the care industry. Plan well, hire carefully and invest in quality equipment…and you can be proud of your care business.

Now go build something great!