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Setting up your own homecare agency means navigating CQC registration, understanding qualification requirements, hiring the right people, and putting systems in place before you deliver your first hour of care.
This guide covers the practical steps involved, the decisions you'll need to make early, and where technology fits into getting a new agency off the ground.
Is it easy to set up a homecare agency?
The barriers to entry are relatively low. Many agencies start with just a handful of staff, sometimes running solo initially before hiring care professionals. You don't need a large premises or significant capital investment to begin.
However, "easy to start" doesn't mean "easy to do well." Success requires navigating regulatory compliance, building robust operational systems, and delivering consistently high-quality care. Many new agencies underestimate the administrative burden and the time required to get CQC registration approved.
Starting small - with two or three care professionals - gives you time to establish processes, understand local demand, and build your reputation before scaling. Most successful agencies that began this way grew gradually as their client base and reputation expanded.
What you need to register as a homecare provider
In the UK, you must register with your national regulator before you start providing care. This isn't a quick process, so start early - registration can take several weeks to several months.
Regulators by nation
- England: Care Quality Commission (CQC)
- Wales: Care Inspectorate Wales
- Scotland: Care Inspectorate (SCSWIS)
- Northern Ireland: Regulation and Quality Improvement Authority (RQIA)
Each regulator has specific requirements, but all share the same goal: ensuring providers are fit and proper to deliver safe, high-quality care.
Registration requirements (England example)
For CQC registration in England, you'll need:
- A Statement of Purpose – sets out what services you'll provide, your aims, and your values. The CQC provides a template to guide you.
- Evidence of fitness – a reference from your GP confirming you're fit and healthy to run a care business.
- DBS checks – for you and anyone working in the business, including office staff with access to sensitive information.
- Policies and procedures – compliant with government regulations and CQC standards. These must be regularly reviewed and updated.
Who can manage a homecare agency?
If you're running the agency day-to-day yourself, you'll need the right qualifications and experience. If you're the owner but won't be the registered manager, you only need a DBS check.
Manager qualifications by nation
England (CQC):
- QCF Level 5 Diploma in Leadership for Health and Social Care (Management of Adult Services)
- Registered Manager's Award (RMA)
- NVQ Level 4 in Leadership and Management for Care Services
Note: While RMA and NVQ Level 4 are no longer offered, they're still accepted by CQC.
Scotland:
- Scottish Vocational Qualification (SVQ 4) at level 9
- The Scottish Social Services Council recognises a wider range of qualifications combined with relevant experience
Wales and Northern Ireland:
- Level 5 Diploma in Leadership for Health and Social Care Services (Adult's Management)
The registered manager ensures care recipients receive appropriate support, stays on top of compliance, and manages day-to-day care delivery. In early stages, this role is often hands-on and all-encompassing.
Care worker qualifications
Your care professionals also need proper training and induction:
- England: Care Certificate
- Scotland: SSSC codes of practice
- Wales: All Wales Induction Framework for Health and Social Care (AWIF)
- Northern Ireland: NISCC Induction Programme
The Care Certificate in England covers the 15 standards the CQC uses when rating providers.
Scotland-specific registration requirements
If you're setting up in Scotland, you'll register with the Care Inspectorate rather than CQC. The process requires demonstrating compliance with National Care Standards across multiple areas:
- Introductory information: Detailed info pack for new clients covering aims, services, fees, complaints process, and recent inspection results
- Robust staffing and management: Evidence of thorough recruitment and ongoing staff support
- Written agreements: Every service user must have a signed agreement defining care provision
- Individual care planning: Personalised care plans created with clients and key workers, regularly reviewed
- Safe and supportive settings: Clean, safe, accessible environments
- Tailored care: Respect for personal, cultural, religious, and social needs
- Equipment, nutrition, and healthcare: Correct equipment use, meal prep support, healthcare assistance
- Protective systems: Rigorous safeguarding systems with up-to-date risk assessments
Once registered, you'll be monitored regularly. Display your registration certificate prominently on your premises.
Why software matters from day one
Many new agencies underestimate how quickly administrative work scales. Even with five care professionals, you're managing schedules, care plans, medication records, visit logs, and CQC documentation.
Using the right software from the start helps you:
- Keep all documentation in one central, secure location
- Track care delivery in real time and spot issues before they escalate
- Build an audit trail that makes CQC inspections straightforward
- Reduce time spent on rostering, invoicing, and payroll
- Free up care professionals to spend more time with clients, not paperwork
For example, Birdie's platform is designed specifically for homecare providers of all sizes. It integrates care management, rostering, finance, and compliance tools so you're not stitching together multiple systems.
Features that matter when you're starting out:
- Digital care plans aligned to each client's needs and goals
- Electronic Medication Administration Records (eMAR) to reduce errors
- Rostering tools with conflict detection, skills matching, and travel time visibility
- Q-Score – a dashboard that uses your data to benchmark quality against CQC criteria
- Real-time alerts when carers flag concerns or changes in client wellbeing
- GP Connect – seamless access to client health records, saving hours of back-and-forth
Rather than building processes around spreadsheets and paper, you're building them around a system that scales with you.
See how Birdie helps new care businesses get set up
Budgeting for your new care agency
Start-up costs typically range from £3,000 to £15,000+, depending on your ambitions and how you plan to operate.
Key budget considerations:
Staffing costs:
- Initial wages for 2-5 care professionals
- Recruitment costs (agency fees if applicable)
- Required qualifications and training (Care Certificate, etc.)
Training and compliance:
- Ongoing staff training to meet CQC/regulator standards
- Additional specialist courses
Software:
- Care management platform (monthly or annual fees)
- Budget for robust scheduling, care planning, and compliance tools
Equipment and supplies:
- Mobile devices for staff
- Uniforms and PPE
- Any specialist equipment for your service type
Office and premises:
- Rent and utilities (if not working from home initially)
- Office equipment and furniture
Registration and compliance:
- Regulatory body registration fees (CQC, etc.)
- DBS checks for all staff
- Insurance (see below)
Local market research:
- Investigate competitor pricing in your area
- Set realistic income projections based on local rates
Scope of care:
- Type and level of care you'll provide (dementia care, overnight support, etc.)
- Hours per client per day
- Specialist services impact staffing needs
Funding sources:
- Decide if you'll accept local authority referrals, private clients, NHS funding, or charity/grant schemes
- Each affects your cash flow and pricing structure
Map out these elements in advance to avoid surprises and ensure you're financially prepared.
How much does it cost to start a care agency in the UK?
As mentioned, costs typically range from £3,000 to £15,000+. The variance depends on:
- Number of initial care professionals (fewer staff = lower wage costs initially)
- Training and specialist qualifications required
- Equipment (uniforms, PPE, devices)
- Office space (home-based vs. rented office)
- Software package choice and fees
- CQC registration fees
- DBS checks and professional development
Research the going rates for care in your area to remain competitive. Consider whether you'll work with private clients, local authority contracts, or grant-funded service users, as this impacts pricing and cash flow.
Start with absolute essentials (registration, software, insurance, training) and add nice-to-haves as your business grows.
Hiring and building your team
Every new staff member must complete the appropriate induction for your nation (Care Certificate in England). You have two main recruitment options:
Direct hiring:
- More control over who joins your team
- Time-intensive process
- You manage all vetting and onboarding
Recruitment agencies:
- Faster access to pre-qualified candidates
- Candidates often already DBS-checked
- You'll pay a fee
Insurance for homecare agencies
Standard business insurance won't cover you. As a homecare provider working with vulnerable people, you'll need specialist cover.
- Public liability insurance
- Employer's liability insurance
- Professional indemnity insurance
- Care-specific policies covering risks unique to domiciliary care
Speak to at least two or three brokers who specialise in homecare insurance. Well-known brokers include Towergate Insurance, among others.
Ask about:
- Claims processes and response times
- Exclusions specific to the type of care you'll provide
- Cover for employees, subcontractors, and volunteers
- What scenarios are and aren't covered
Don't cut corners here. The right insurance protects your business, your staff, and the people you care for.
Securing your first clients: Local authorities vs private clients
Once you're registered and ready, you need clients. There are two main pathways: local authority contracts and private (self-funding) clients.
Local authority contracts
Advantages:
- More immediate and consistent source of clients
- Helps establish your reputation
- Demand often outstrips supply, creating opportunities for new providers
Disadvantages:
- Lower rates than private clients (£16-18 per hour vs £32+ for private)
- Requires tendering process
- More administrative requirements
When you're starting out, working with local authorities provides volume and cash flow. Local authority-funded clients still make up the majority of the UK's social care market.
Tendering usually begins with a Pre-Qualification Questionnaire (PQQ). Keep an eye on your local authority's online tender hub for opportunities.
What you'll need for a PQQ:
- Evidence of financial stability
- Proof of CQC registration
- Details of relevant care experience
- Information about your company and directors
- Staff qualifications and training records
- Reference contacts
- Certificate of incorporation
- Up-to-date health and safety policies
- Financial statements and business continuity plans
Review other tenders to understand expectations before you bid. Be honest about your capacity—taking on more than you can deliver damages your reputation with councils and regulators.
Tips for winning social care tenders:
- Decide how you'll stand out:
- Competitive pricing: emphasise affordability if you can deliver excellent care efficiently
- Unique quality: Distinguish your agency with family updates via digital tools, personalised care plans, well-trained staff
- Play to your strengths in a niche: Focus on specialist areas like dementia care, learning disabilities, or young adult services
- Use SWOT analysis: Understand your strengths, weaknesses, opportunities, and threats before bidding
- Show evidence and adaptability: Demonstrate financial stability, regulatory compliance, robust policies, and well-trained staff. Highlight your nimbleness as a startup
- Build relationships: Network with local authorities, NHS trusts, and voluntary organizations
While winning contracts is exciting, be realistic about your capacity. Stretching yourself too thin can:
- Put care recipients at risk if you can't provide promised support
- Lead to complaints from families if visits are missed or standards slip
- Damage your reputation with councils and regulators
- Result in negative CQC inspection reports or sanctions
Start small and grow sustainably.
Private (self-funding) clients
Advantages:
- Higher rates (often £32+ per hour)
- More control over services you provide
- Can build deeper relationships with clients and families
Disadvantages:
- Requires more investment in marketing
- Clients typically more geographically dispersed
- Takes longer to build a consistent pipeline
Private individuals choosing homecare make decisions based on emotional reassurance and personal connection, not just checklists. Three factors matter most:
1. Reputation:
- Word-of-mouth recommendations from neighbours, friends, community groups
- Independent review sites (Trustpilot, Google Reviews)
- CQC ratings
- Local press coverage
2. Presentation:
- Professional, approachable website
- Staff profiles and clear "about us" page
- Branded uniforms
- Clear contact information
3. Proof:
- Real-life testimonials
- Up-to-date inspection reports
- References available on request
- Accreditations and awards
- Partnerships with respected organisations
When thinking about how to start to market your agency, use the 'R.A.C.E' framework:
Reach: Expand awareness of your agency
- Maintain an up-to-date website
- Post on social media and join local community groups
- List on platforms like Care.com
- Partner with local GPs and attend community events
Act: Encourage prospects to take the next step
- Make it simple with clear contact details
- Provide straightforward enquiry forms
- Offer helpful resources prominently
Convert: Turn interest into action
- Respond quickly to enquiries
- Offer free consultations
- Provide clear, transparent pricing
- Showcase testimonials, CQC ratings, and case studies
Engage: Build ongoing relationships
- Follow up for feedback
- Share newsletters
- Offer helpful tips
- Regular check-ins
Online presence is critical:
- Easy-to-navigate website with clear service information
- Search engine optimisation (SEO) so families find you when searching
- Google Ads for local visibility
- Active social media presence
raditional marketing still works:
- Partnerships with hospitals, GP practices, and medical centres
- Local newspaper advertising
- Community noticeboards and parish magazines
- Information packs for healthcare professionals
One of the most effective ways to grow is through referrals and recommendations. When someone hears about your agency from a trusted friend or healthcare professional, it instantly builds credibility. To encourage referrals:
- Set up a referral scheme for existing clients and families
- Offer simple incentives (discounts for both referrer and new client)
- Ask satisfied clients if you can share their stories on your website
- Build relationships with local hospitals, GPs, and healthcare professionals
Strong relationships with the local healthcare community generate valuable referrals. By consistently delivering excellent care and being visible in your community, your reputation will spread naturally.
Competing as a new care agency
Understanding how you'll compete helps you make strategic decisions about pricing, services, and marketing.
Competitive strategies for homecare
1. Cost Leadership:
Provide a wide range of services at lower prices than competitors. This might help win local authority tenders, but private clients often prioritise compassion, safety, and personal touch over price.
2. Differentiation:
Make your service unique and trusted. Focus on exceptional communication, innovative family updates, stand-out recruitment ensuring carers are passionate, not just qualified. Testimonials, heartfelt stories, and clear values on your website help differentiate you.
3. Cost Focus:
Target a specific type of service (e.g., high-dependency care) while leveraging cost advantages. You're not catering to everyone, but you're affordable within your specialism.
4. Differentiation Focus:
Create a niche for yourself. Perhaps you specialise in supporting young adults with learning disabilities, offering creative therapies. Or you become the go-to agency in a specific postcode, working with local health clubs and cafés to arrange group outings.
Using SWOT analysis
A SWOT analysis helps you understand your competitive position:
Strengths: What sets you apart (e.g., all staff dementia-trained, highly personalised care)
Weaknesses: Areas for improvement (e.g., new agency without testimonials yet)
Opportunities: Emerging demand (e.g., growing need for respite care or Parkinson's support)
Threats: Competition (e.g., larger agencies with bigger marketing budgets)
By mapping your position, you can decide which strategy—affordable rates, highest quality, or specialised service—aligns with your resources and local community needs.
What success looks like in year one
Most successful new agencies:
- Start with 2-3 care professionals and grow gradually
- Secure a mix of local authority and private clients
- Achieve CQC registration within 3-6 months of starting the process
- Build systems and processes that make quality repeatable, not accidental
- Invest in technology that reduces admin and improves oversight
- Focus on staff retention through supportive culture and development opportunities
- Build reputation through excellent care delivery, not just marketing
The agencies that scale sustainably get the fundamentals right early: compliance, quality care delivery, operational efficiency, and team stability.
Next steps after registration
Once you've received approval from your regulator, take these essential next steps:
1. Secure the right insurance
As covered above, generic business insurance won't suffice. Get specialist homecare coverage from brokers like Towergate or others who understand the sector.
2. Strengthen recruitment and retention
Beyond hiring, focus on developing a positive working environment. Recognition, ongoing training, opportunities for growth, and fair workloads create a culture where people want to stay.
3. Start marketing strategically
Implement your marketing plan for both local authority and private clients. Build your online presence, establish local partnerships, and begin generating referrals.
4. Monitor and improve continuously
Use your software's analytics to track care quality, visit punctuality, staff utilisation, and client satisfaction. Make data-driven improvements.
Final thoughts
Getting started is often the hardest part. Once you're up and running with regular care recipients, providing exemplary care builds your reputation. Combined with a good or outstanding CQC rating, this plays a vital role in becoming one of the best local providers.
Key takeaways:
- Start small and scale sustainably
- Invest in the right technology from day one
- Build a supportive culture that retains staff
- Balance local authority and private clients
- Focus on quality, not just growth
- Use data to make informed decisions
If you're serious about setting up a homecare agency, start by:
- Registering with your regulator (CQC or equivalent)
- Choosing software that handles care management, rostering, and compliance in one place
- Building a small, well-trained team
- Tendering for local authority work while building private client relationships
Book a demo with Birdie to see how an smart care management platform can support your new agency from day one. Or explore case studies from agencies that have grown with Birdie, including providers who went from zero to 60+ clients in their first year.
Setting up a care agency is hard work. But with the right systems, the right people, and a focus on delivering excellent care, it's entirely possible to build something sustainable and worthwhile.
Published date:
March 1, 2024
Author:
Hannah Nakano Stewart
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