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%.
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.
How can I access funding for my business?
There are a range of options for funding your business aside from uing 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
