How much can a care agency turnover?
The average care agency achieving steady month on month growth will be able to comfortably achieve a turnover in excess of £1m by year five. Depending on your goals, the level of reinvestment, as well as your commitment as a business owner - it is more than possible to accelerate this.
If operating in line with our advice around pricing, on average our agencies can expect to achieve a gross profit of 35%, with operating profit of 18%.
Care Agency - Visiting Care
Financial Projections
As a care agency offering hourly (visiting care) at home, projected revenues are below.
Figures are based on onboarding one new client per month (requiring 2 hours care /day, 7 days /week), at an average hourly rate of £20 /hour. Packages of care however may be larger, or more clients could be onboarded each month.
Year 1 Revenue: £94,000 (12 Clients)
Year 2 Revenue: £263,000 (24 Clients)
Year 3 Revenue: £432,000 (36 Clients)
As part of our business startup package, we provide support with client onboarding to help you hit these goals.
Care Agency - Visiting (+ Live In Care)
Financial Projections
Offering live in care to compliment services, alongside hourly (visiting care) at home, projected revenues are shown here - with support included in our package to help you onboard new clients.
Figures based on onboarding one new client per month (requiring 2 hours care /day, 7 days /week), at an average hourly rate of £20 /hour, as well as one new live in care client every other month (at an average rate of £1,100 /week). N.B. packages of care may be larger, or more clients onboarded each month.
Year 1 Revenue: £266,000 (12 Clients + 6 Live In Clients)
Year 2 Revenue: £656,000 (24 Clients + 12 Live In Clients)
Year 3 Revenue: £1,047,000 (36 Clients + 18 Live In Clients)
How much do I need to start a care business?
In addition to the £4,500 startup investment with us, you will need anywhere between £10,000 - £30,000 in working capital to cover expenditure until you are turning a profit.
This figure varies dependent on your goals as a business, the types of services you will be offering, as well as factors such as whether you need to recruit a registered manager, or source a premises to operate your business from.
Purchasing a Franchise vs Setting Up Your Own Location
Purachasing a 'care agency franchise' typically requires significant upfront fees and working capital - due to higher operating costs. Additionally, franchise agreements allocate a portion of revenue or profits to the franchisor on an ongoing basis.
In contrast, starting an independent business allows owners to create their own brand - maintaining full ownership. It also means there are no geographical restraints, allowing for faster growth and flexiblity.
How can I access funding for my business?
There are a range of options for funding your business aside from using your own money, however these are limited when first starting out. We have included a few different options below:
- Personal Loan or Startup Loan - The most common type of funding if you are short on savings. You could either secure a personal loan from the bank, or apply for a government backed startup loan (this is also a personal loan). More information about startup loans from the British Business Bank can be found here: https://www.startuploans.co.uk/
- Angel Investment - Raise money from family & friends to start your business, or pitch your proposition to professional investors
- Business Loans or Credit Cards - there are a number of suppliers in the business finance market, providing the alternative to high street banks. These loans are often for established businesses however, and you would need some trading history before a loan would be approved
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