Care homes are a booming business due to an ageing population. Running a care home can be an extremely rewarding business opportunity, but it does come with a lot of responsibility and hard work. There are lots to think about, including start-up costs, how you can make a profit, dealing with regulations and hiring the right staff. Here are a few points to consider:
- A business plan
A carefully thought-out business plan can be the difference between the success or failure of a new business. You should make detailed lists about your objectives, overheads, mission, etc. Care homes can be expensive to run, so it is a good idea to include plans for finding the necessary finances to get your business up and running.
- Start-up costs
Your primary concern will be finding a suitable building and location. For a care home to be profitable, you will need to be able to provide care for a minimum of 25 clients. A purpose-built home is the best choice to go for, however, it may not give you immediate cash flow. You could look at buying a care home with a proven track record, or a home that requires some refurbishment whilst also being able to continue operating.
The ongoing costs of running a care home are also considerable. Your energy costs are going to be very high, as the elderly tend to suffer from the cold more than the average person. Therefore, it is essential to keep your care home warm and comfortable. Failure to do so could result in your residents becoming ill. It is worth looking into getting a good deal on your business energy; Utility Bidder can help you with this.
The location of your care home is also a very important decision. You need a location where you can find a considerable number of staff. You will be employing a lot of unskilled staff, so it is important that they don’t have to travel too far to work, as it is not financially viable for them to do so. You also need to consider the relatives who will be traveling to see the residents in your care home. A town is the best option as they may only like to travel a short distance or might need to use public transport. Whilst a village with amazing views is a nice idea, it isn’t very practical.
- Are you suitable?
Running a care home is not a venture that should be taken lightly. You will be looking after people who are at the end of their lives, which is a huge responsibility. If you are driven purely by the desire to make money, then you probably won’t get very far. You have got to have a genuine desire to enhance the lives of your residents, rather than just wanting to provide a room and treatment. You want to make sure they have fun as well, which could be through outings or parties.
In conclusion, you need to consider whether you have the passion to run a care home, decide on a location, look at the start-up costs and set up a business plan.