How to Start Your Own Care Business
Starting your own care business can be an incredibly rewarding venture, whether you are looking to open a homecare agency or establish a residential care home. This guide will take you through each stage of the process, covering everything from initial business setup to ongoing compliance and growth strategies.
Why Start a Care Business?
The demand for quality care services continues to grow, driven by an aging population and increasing need for specialised care solutions.
Latest statistics show how our population is older than ever before. In fact, almost 40% of people in England are currently over 50, and almost 20% are over 65.
With this in mind, launching a care business offers the opportunity to make a meaningful impact in your community while also building a profitable enterprise.
Whether you're an experienced care professional seeking independence or a businessperson inspired by the potential within the care sector, this guide will provide you with the knowledge and steps required to succeed.
This guide will cover:
Planning Your Care Business
Registering Your Business
Registering with the CQC
Choosing the Right Systems and Technology
Marketing Your Care Business
Managing Finances
Compliance and Risk Management
Growing Your Care Business
Step 1: Planning Your Care Business
So, you know you want to launch a care business – amazing! But before you can open your doors, careful planning is essential. Here’s how to lay the groundwork:
Define Your Care Service
Start by identifying the type of care services you wish to provide. Options include:
Homecare Services: Delivering care within individuals' homes.
Residential Care Home: Offering round-the-clock care in a dedicated facility.
Specialist Services: Providing dementia care, mental health support, or disability care.
Step 2: Registering Your Business
With a strong business plan in place, it’s time to get you registered. Proper registration is vital for legal operation and credibility and is often the first major hurdle for new providers. So let’s go through the main steps you must take.
Register Your Business with Companies House - Choose a suitable structure such as a limited company (Ltd) or limited liability partnership (LLP).
VAT Registration - Register for VAT if your projected turnover exceeds the threshold.
Secure Business Premises - For residential care homes, ensure the property meets accessibility and safety standards.
Open a Business Bank Account - This simplifies financial management and ensures professional record-keeping.
Download your Free New Care Business Checklist
Download our step-by-step guide covering key legal, financial, and operational requirements to help you set up your care business with confidence.
Step 3: Registering with the CQC
In England, all care providers must register with the Care Quality Commission (CQC) before they can deliver regulated care services. Here at Affinity Care Advisory, we have helped countless providers successfully register with the CQC, so let’s take a look at the step-by-step process we help them follow.
CQC Registration Application — Submit a detailed application explaining your services and business structure. For more information on what documents you must provide, check out our full guide What Documents Do You Need for CQC Registration?
Business Plan Submission — Submit your comprehensive business plan that outlines your care model, staffing structure, and growth plans.
Appoint a Registered Manager — The manager must hold appropriate qualifications such as a Level 5 Diploma in Leadership for Health and Social Care. During this registration process, your Registered Manager will need to complete an interview with the CQC to assess their suitability for this role. For more information and support with preparing for this interview, you can refer to our guide: Avoid These 5 Mistakes in Your CQC Registered Manager Interview.
Designate a Nominated Individual — This person is responsible for ensuring your organisation meets CQC requirements.
Create Policies & Procedures — These must cover safeguarding, medication management, infection control, and staff conduct.
Typically, we estimate the entire CQC registration process typically to take around three months if everything goes smoothly. However, this timeline can vary depending on factors such as the completeness of your application and the current demand on CQC’s services.
For more information on this topic, read this related blog How Long Does CQC Registration Take?
Step 4: Recruiting Staff
Building a skilled and compassionate workforce is essential to the success of your care business. The quality of your staff directly impacts the level of care you provide, the reputation of your service, and your ability to meet CQC regulations. Hiring the right people ensures that your clients receive the highest standard of care while also fostering a positive working environment for your team.
When starting your recruitment process, you’ll need to consider the key roles necessary for a well-functioning care business. At the core of your team is the Registered Manager, who is responsible for overseeing daily operations, maintaining compliance with regulations, and ensuring that care recipients receive appropriate services. A strong manager is crucial for setting the tone of the business, enforcing policies, and leading the team effectively. Other vital roles include Care Coordinators, Senior Carers and Support Workers.
To make sure you’re recruiting the best candidates we suggest you follow these tips:
Crafting clear and detailed job descriptions that outline specific responsibilities, required qualifications, and expectations for each role. This helps attract the right applicants and ensures transparency from the beginning.
When conducting interviews, assess candidates not just on their experience and technical skills but also on their values and interpersonal abilities. Care is a highly personal profession, so empathy and strong communication skills are just as important as practical knowledge.
Before finalising any hires, perform enhanced DBS (Disclosure and Barring Service) checks to ensure that all staff members are legally allowed to work in the care sector and do not have any disqualifying criminal records.
By implementing thorough recruitment practices, you lay the foundation for a dedicated and effective team that upholds the highest standards of care.
Step 5: Choosing the Right Systems and Technology
Investing in the right technology is essential for simplifying your operations, ensuring compliance, and enhancing client care. As of late, the CQC has really been encouraging care providers to digitise all their business and care documents as it is typically safer and more secure this way. With that in mind, here are a few systems you should consider when launching your new business.
Care management software, such as Care Control or Nourish, helps with care plans, documentation, and staff scheduling, making daily tasks more efficient.
A CRM system like HubSpot or Zoho allows you to manage client relationships, track leads, and improve communication.
Payroll solutions such as Xero, Sage, or BrightPay simplify payroll processing and pension management.
Additionally, digital marketing tools like Canva, Hootsuite, and Mailchimp can support your marketing strategy, helping you reach a wider audience and maintain engagement.
Whilst waiting for your registration application to be processed, we suggest running a few free trials or demos with various system providers to really get a feel for how they operate and could possibly work within your business.
Step 6: Marketing Your Care Business
A strong marketing strategy is essential for attracting clients and establishing your care business in the community.
Start by creating a professional website with clear service details, client testimonials, and easy-to-find contact information. Optimising your site for SEO will improve its ranking on search engines, making it easier for potential clients to find you.
Building relationships with local authorities can open doors to tendering opportunities, while social media platforms like Facebook, Instagram, and LinkedIn allow you to engage with your audience and increase brand awareness.
Traditional marketing methods also have their place - leaflets, brochures, and community advertising can be effective in reaching local clients. A well-rounded marketing approach, combining digital strategies with offline efforts, will help you establish a strong presence in the care sector.
Generate more leads and enquiries for your care service.
We help organisations enhance their brand presence, attract clients, and grow their reach with our expert team that ensures personalised solutions that align with their goals.
Step 7: Managing Finances
Managing finances effectively is crucial for the long-term success of your care business. From setting up budgets to handling payroll and exploring funding opportunities, having a solid financial plan in place will help you maintain stability and growth. Care businesses often have complex financial needs, including staff wages, operational expenses, and regulatory costs, so it’s essential to plan ahead and make informed financial decisions.
Appoint an Accountant - This ensures you remain compliant with tax regulations and payroll requirements.
Develop a Pricing Model - Balance affordability with profitability, especially for self-funded clients.
Explore Funding Options - Look for government grants, bank loans, or private investors to support initial costs.
For more information on the costs of launching a new business, check out this related article: How Much Does it Cost to Start a Care Agency?
Step 8: Compliance and Risk Management
Ensuring compliance is essential for meeting CQC standards and keeping clients and staff safe. This requires ongoing monitoring, policy updates, and staff training to maintain high standards and avoid breaches.
A solid compliance framework starts with clear policies and procedures covering safeguarding, infection control, medication management, data protection, and health and safety. These should be regularly reviewed and updated to reflect best practices.
Regular audits and mock inspections help identify and resolve issues before a CQC visit. Internal audits should check care documentation, staff training, and overall service quality, while mock inspections prepare teams for real assessments.
Risk assessments are key to identifying hazards like fall risks, fire safety concerns, and infection control lapses. Mitigation strategies - such as staff training and updated safety protocols - help prevent incidents.
A business continuity plan ensures your service can handle emergencies like staff shortages, outbreaks, or IT failures. Contingency plans, including temporary staffing solutions, keep operations running smoothly.
By staying proactive with compliance and risk management, you strengthen your business’s reputation and provide clients with safe, high-quality care.
For more information on this topic, check out this related guide: The Ultimate Guide to CQC Compliance.
Step 9: Growing Your Care Business
Once your care business is established, the final step is to focus on sustainable growth. Expanding your services and client base requires strategic planning, strong partnerships, and ongoing investment in staff and infrastructure. Growth not only increases revenue but also enhances your business’s reputation and ability to provide high-quality care to more people in need.
One of the most reliable ways to scale your business is by tendering for NHS and local authority contracts. Winning these contracts provides a steady stream of referrals and financial stability. The tendering process can be competitive, so it’s essential to demonstrate compliance with CQC regulations, showcase strong client outcomes, and highlight your business’s capacity to deliver high-quality care. Researching upcoming contract opportunities and building relationships with commissioners can increase your chances of success.
In addition to public sector contracts, targeting private clients can diversify your revenue streams. Many individuals seek personalised, self-funded care options tailored to their specific needs. Offering flexible service packages, such as live-in care, respite care, or companionship services, can help attract private clients. Investing in a strong online presence, including a professional website and digital marketing efforts, will also help reach this audience.
By strategically expanding your client base, services, and workforce, your care business can achieve long-term success while continuing to provide compassionate, high-quality care.
Key Takeaways
Starting your own care business can be challenging, but with dedication, planning, and the right guidance, it’s a rewarding venture that can provide invaluable services to your community. By following this comprehensive guide, you’ll be equipped to build a successful care agency or residential care home that meets the highest standards of care.
Start Your Care Business the Right Way
From policies and recruitment to funding and compliance, our free checklist ensures you’re fully prepared for success.
