How business strategy is leading the way in the Care Home sector
Business owners of care homes face many challenges. It can be a very lonely place, often you go into the care home industry as you are good at caring for people. You may have learnt some lessons of what not to do in business, but who do you turn to, in order to implement best practise in your business? Business owners often make the mistake of trying to do everything themselves, however there are areas where support from experts makes a big difference.
The government analysis of the care home market in November 2017, found that the UK care home sector is worth around £15.9 billion a year. There are 5,500 care home providers with 11,300 care homes looking after 410,000 residents. The Office for National Statistics predicts a 36% growth in persons aged 85+ between 2015 and 2025, from 1.5 million to 2 million. This is expected to lead to a substantial increase in demand for care home services. Are you one of the care homes that would like to expand and utilise the opportunities for growth? First it is essential you optimise your business by using a business strategy. This gives you firm foundations to grow your business.
A business strategy gives you the road map to success. Without it, you will not achieve your full potential, as it is like walking out of your front door without knowing where you are going. There is a skill to creating a successful business strategy that will allow you to achieve the things you didn’t think were possible. Some businesses use the strategy to expand whilst others implement a strategy to become more profitable. In the UK 20% of businesses have a business strategy in place, however how many actually use it to?
Some quick simple changes can make a big difference. A recent report by Lloyds Bank found if sole traders used the five basic digital skills, they could earn an extra £24,000. How much profit are you missing out on? Digital transformation saves 21% of working hours, which allows this time resource to be used more effectively. Digital transformation alone could increase your profits by 21.5%. If you had this extra resource, what difference would it make to your business?
A business strategy ensures that care home providers exceed the Care Home standards for services, facilities and financial aspects. The CQC reports rate care homes as an indicator to prospective customers and families about how the care home is performing. The CQC covers how safe, effective, caring, responsive, and well-led each care home is. The rating range is outstanding, good, requires improvement and inadequate for each area. By using objectives from the business strategy, this will deliver improvements in your business, ensuring you have an advantage over your competitors.
You may think that having a care home at full occupancy will give you the maximum profits. Yet profits are not just about your income stream, it is also about maximising your resources and minimising your outgoings. Without measuring your data, it is impossible to analyse what is happening and therefore you can’t manage your business effectively. Only 22% of businesses currently analyse their data. If you aren’t measuring and analysing your data, you are missing out on having an extremely effective business.
The care home sector has the opportunity to make significant changes which optimise their businesses, increase profits and expand. This is made possible through the use of a business strategy. SW Business Support Solutions is a dynamic proactive solution-based company that offers care homes both a bespoke and online service creating a business strategy and supporting the implementation. Director Alison Jenkins has a nursing background and understands the complexities of care services and business transformation. Director Colin Jolliffe provides a diverse range of business skills including implementing change and negotiating the least cost options from suppliers. We passionately love to see businesses being the best business they can be.
We are exhibiting at the Care Home Expo on March 26 - 27th at the NEC, Birmingham. Please feel free to visit our stand or contact us on 01626 903022 / www.swbss.co.uk