Is this the best time to set up a care business in UK?

 With Corona virus raising its deadly head again, the world holds its breath. World recession seeming more likely and many businesses in UK facing restrictions in operations  in an attempt by government to curb the spread of Covid-19. With the UK health sector hit so hard, the question I am now being frequently asked is whether this is the best time to start a care business in UK? There is never a good time to start anything. 

According to the Competition and Market Authority’s  (CMA’s) 2017 study into residential and nursing homes for older people, The care homes sector is worth around £15.9 billion a year in the UK, with around 410,000 residents. The need to support people in their own homes is even greater now due to Covid-19. According to the British Medical Association’s  research document, The impact of COVID-19 on mental health in England; Supporting services to go beyond parity of esteem , the increased isolation caused by Covid-19 has negatively impacted people’s mental health, resulting in a surge in demand for support of people of various age groups. The people affected by related post- traumatic stress disorders, confusion, infection fears, frustration and boredom will continue to exert pressure on service provision. The effect of Covid-19 affected the provision of  adequate and competent staff to support providers, especially those in Residential  care settings of various age groups. Between march 2020 and July 2020, the lockdown in UK was at its peak. Staff were fatigued and overworked. The impact of post-Covid-19 to those recovering has left a significant number of people unbale to work, needing more support as they get discharged from hospitals. 

So there will always be a need  for supported living services, domiciliary care agencies, healthcare temporary staffing agencies, children services provision, home care agencies to cater for the vulnerable within the society. They say necessity is the mother of invention. 

What should new business do before set up? 

As the opportunities are varied throughout the country, due varying effects of Covid-19, people setting up healthcare businesses need to:

• conduct due diligence. New businesses need to establish after ascertaining what their preferred local area market demand is like. 
• Produce a viable business plan  with financials so that it passes the CQC’s  assessment for financial   viability during CQC registration. It may appear counter productive, but in times of uncertainty, there is a greater environment to seek funding.
• Commission competent and skilled people/ companies to advise you before committing to long term tenancy agreement and breaching of Town Planning regulations.
• get information on your preferred  location’s workforce establishment. Top talent may be available 
• Competition my be lower as some businesses may struggle to restart after the pandemic (so competition analysis is important)

As the world deals with Covid-19, opportunities within the healthcare sector will open up. You will need to find yourself ready to take the opportunities than to wait to start when everything is alright. It may be too late to enter the market.

What we cannot advise is whether this is the correct time for you. What is apparent is the UK government is doing its best to prop up businesses and encourages them to start or continue to operate. 

Recession can be an advantage to business

What we can state is that 3 of the world’s biggest brands stated in a recession:

1. Burger King: In the 1950’s after the Korean war- James McLamore & David Edgerton. 
2. Fedex- during the 1969-71 depression-Fred Smith
3. Microsoft-Started in 1975 during a period of rising inflation-Bill Gates