What is a Business Plan and why do I need one?
To register with CQC, there are multiple documents that must be filed. One of these is the Business Plan and financial statements….and this we can help you with.
A Business Plan is important for any business. It helps you figure out how the business will operate, set out your goals and measure your progress. It’s not a one-off document, it’s worth updating every year or so to see where you are and what you want to achieve. Although it is a CQC requirement, it’s not a tick box exercise. A Business Plan is important for decision making and funding in the future.
As a homecare provider, a business plan is necessary to register with CQC.
The CQC website states that
“Your application must include a business plan that describes your core business activities and objectives, and how your business plans to achieve its goals.
Your plan should include at least:
- an executive summary
- a description of the company
- details of the services
- information on market research you’ve done
- the company’s management structure
- 2 years’ financial forecast “
Supporting documents (domiciliary care agencies) – Care Quality Commission (cqc.org.uk)
With the numerous other documents CQC require for registration, having help with your business plan is going to reduce stress. Get in touch to find out more about our CQC business and financial planning service.
Let’s take each point in turn
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Executive Summary:
The executive summary is the opening statement to your business plan, offering an overview of your entire Business Plan. This section details the core elements of your business. For example, providing personal care to those over 65 years in their own home. Also include here your mission, vision, and objectives. While it appears at the beginning, it’s recommended to write it last, ensuring it accurately reflects the content of your entire plan.
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Description of the Company:
This section is about the heart of your business, providing details on why you want to create this business. It should answer questions like what your company does, its unique selling propositions (USPs), and the problems it aims to solve. Additionally, include relevant background information, such as when the company was founded, its legal structure such as Directors and Shareholders, and anything that the company has already achieved.
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Details of the Services:
What services are you offering? Do you offer a shopping service? Do you have volunteers who make social calls to those who are housebound? Clearly define what you offer and the benefits, emphases how they address the needs of your target market, whether this is over 65’s or Adults with Learning Disabilities, for example. and how your services stand out from competitors. Include information on your pricing strategy, any technology and software you use. This section is to prove your understanding of your industry and how your services meet market demands.
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Market Research:
An in-depth understanding of your target market is important for your business to survive. Outline the research you’ve conducted to identify your market – whether that’s information you’ve found online or asked for feedback from people in your community, analysis of competitors – are they other providers locally and what services do they offer, and assess market trends – take a look online for example Domiciliary Care in the UK – Market Size, Industry Analysis, Trends and Forecasts (2024-2029)| IBISWorld. Provide data here supporting the demand for your services and explain how you plan to position your business in the market. This section demonstrates your commitment to evidence-based decision-making and informs your strategies for reaching and appealing to your customer base.
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Management Structure:
The success of any business is down to it’s leadership. In this section, introduce the key members of your management team, outlining their roles, expertise, and contributions to the company. Highlight relevant experience, achievements, and any unique qualifications that position your team to execute the business plan successfully. This instils confidence in your business and in you as the business owner.
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2 Years’ Financial Forecast:
Arguably one of the most critical sections, the financial forecast projects the financial trajectory of your business over the next two years. Include detailed income statements, balance sheets, and cash flow projections. This section provides insight into the viability and sustainability of your business model. It also demonstrates your ability to plan and manage financial resources effectively. As accountants who specialise in the homecare sector, we understand the financial demands on a business like yours and can provide you with the details you need.
Conclusion:
Although you need the business plan in order to register for CQC, a business plan is a great way to gain a full understanding of each element of your business and minimise any risks in the sector that may occur. Think of it as an overall holistic view of your entire business. It’s useful if you need future funding or investment in the business and helps with decision making.
Remember, you’re not alone! Ask for advice and support from your networks to make sure your registration is successful. For independent advice and support, contact us here at Fresh Clarity