How to home in on the £10bn market for Services (Caring Business, April 2010)

It’s a multi-million pound market that is set to grow. Want a slice of it? Peter Wickham explores some of the factors in setting up a homecare service.

Register your business

Anybody providing a service of personal care to people in their own homes must be registered with the Care Quality Commission (CQC). The rules on registration are currently changing and it may take some time to complete. You will also need to have a full understanding of the new vetting and barring procedures and new rules surrounding the employment of overseas workers.

Private homecare services need to sign a contract with the local authority pledging to provide high standards. As a large percentage of publicly-funded homecare is now provided by the independent sector, it is important to be included on the list of accredited agencies so that local authorities can contact you.

Draw up a business plan

You need a robust business plan. So ensure it is realistic as you need to take into account a range of costs including:

• Staff costs - recruitment fees, salaries, employer’s NI, holiday and sickness cover, staff training
• Catering costs
•  Accommodation - mortgage/rent and maintenance of premises
•  Insurance - sufficient cover to ensure your domiciliary care agency’s assets and liabilities are protected, as well as cover against loss or damage, including business interruption costs
• Other costs, including: operation and upkeep of a vehicle, marketing and advertising costs, office supplies and equipment, accountancy costs and registration fee

Your business plan should also include details of how you expect to obtain clients.

Always adhere to best practice

You and your staff will need to familiarise yourselves with the relevant codes of practice. This ensures the highest standards of care are provided and the rights of both the service user and care worker are protected.

References must always be followed up and thoroughly vetted to ensure they are appropriately
qualified and competent.

Your business must ensure every service user has a clear and detailed care plan that is updated regularly and shows an assessment of how each user’s needs are met.

Service users must also feel that they are treated with respect and valued at all times and that their right to privacy is upheld. In addition, there must be clear procedures that outline the complaints procedure for service users, relatives and representatives.

Measures should be taken to ensure that all money and property of service users is protected at all times when care is provided (see pages 32-33). Furthermore, ensure all service users are protected from abuse, neglect and self-harm and that they remain protected, safe and secure in their home.

Training and administration

Policies and procedures on recruitment and selection of staff must ensure the wellbeing, health and security of service users. Robust accounting and financial procedures must be in place.
Your business must have current records, policies and procedures to ensure the rights, health, safety and best interests of service users and staff are safeguarded.

Training of staff is paramount and work colleagues must receive regular training and appraisals. Assessments must be undertaken to identify potential risks. Measures should be implemented swiftly to manage any risks and minimise potential harm.

Promote your business

Most homecare businesses target people from a relatively local area. But how can you achieve this?
Reaching your audience can be difficult but there are a number of ways this can be achieved. For example, you could issue a press release to your local newspaper. Give yourself a chance of gaining precious column inches by giving the papers what they want - a compelling story, with a good angle that will interest readers.

This might sound daunting, but start by considering what benefit your service offers to users and take that as your angle. For example, most domiciliary care agencies make life more comfortable for service users; perhaps yours offers a rather unique service or a 24-hour emergency helpline. Or could you tie your business in with a local or national initiative such as Age Awareness Week? Whatever it is, be proud of it and tell others.

If you have a client who seems to particularly appreciate your service, ask them to provide you with a testimonial which you can use to market your business.

In addition, you may find that you can advertise by placing information on a notice board or intranet of
a local company.

The internet can be a great marketing tool

The web is a great place to promote local businesses. If you click on to Google and search for a service, combined with the name of an area - for example ‘domiciliary care Leeds’ – you will usually see a map with businesses plotted on it. The website is frequented by people in your area which could turn into business for you.

To literally ‘put your business on the map’, you can register it for free with the site. You need to write a listing in Google Business Centre and then submit it.

You will be sent a postcard with a validation code and some instructions. You will need these details to log in and then your listing will go live.

These are just some of the low-cost, low-risk ways you can try to find new clients for your business. You are likely to have more success if you test plenty of new ideas to find the ones that work for you. Whenever a new customer contacts you, make sure you ask them how they found you, so you have a clear idea of what marketing technique works.

Insure your business

If you or your staff conduct care duties via home visits to older people or vulnerable adults, you need to have adequate insurance tailored for your circumstances.

Consider what would happen if you were to lose your registration consultant, if an employee was injured, you had to pay for legal costs or compensation was awarded against you. An insurance policy can cover you against these eventualities. Take time to speak to a reputable insurance company to examine the cover you need.

Policies can include a wide range of options from a stress and legal helpline to providing cover for your
buildings or vehicles.

Peter Wickham works for insurance specialist Towergate Patrick. Visit Towergate at the Care Show at S41.

Source: Caring Business, April 2010.