April 4, 2024

Why agencies need to win more public contracts

Table of contents

Owners and registered managers of care agencies often find themselves at a crossroads, wondering how to secure the future success of their businesses.

One clear path towards sustained growth and financial resilience lies in winning more public contracts.

In this article, we explore the vital role of public contracts for domiciliary care agencies and the potential risks they face if they neglect this avenue. By the end, you'll have actionable insights on how to take your first steps towards securing these valuable contracts and ensuring the longevity of your agency. Let’s go!

The Importance of Public Contracts for Domiciliary Care Agencies

Unlocking Growth Opportunities

Public contracts, those awarded by local authorities and the NHS, offer a golden opportunity for domiciliary care agencies to expand their horizons. These contracts not only provide a steady influx of care recipients but also open doors to increased revenue. As Jane, a registered manager of a small care agency, puts it, "Winning public contracts has been a game-changer for us. It not only boosted our client base but also gave us financial stability we never had before."

The Impact: Neglecting public contracts can limit your agency's growth potential. It means missing out on a pool of potential care recipients and a more predictable income stream.

Actionable Takeaway: Start actively seeking public contracts in your area. Explore government websites and portals where these opportunities are listed. Begin networking with local authorities to understand their needs and requirements. Look at other care businesses, what have they done to secure growth?

Ensuring Financial Stability Through Public Contracts

Financial stability is a cornerstone of a successful domiciliary care agency. The healthcare industry's landscape is unpredictable, making a stable income stream crucial. Public contracts, with their regular payments, can provide the financial resilience your agency needs.

The Impact: Neglecting public contracts can leave your agency vulnerable to financial instability, making it challenging to maintain quality care services.

Actionable Takeaway: Kickstart your journey towards securing public contracts by establishing a dedicated team or individual responsible for identifying and bidding on these opportunities. Assign roles and responsibilities, and set clear targets for submitting bids on a regular basis. This proactive approach can significantly reduce financial risk and uncertainty while increasing your chances of winning public contracts.

Elevating Your Reputation and Credibility

Building Trust in Your Community

Trust and credibility are invaluable assets in the domiciliary care sector. Winning public contracts can significantly enhance your agency's reputation. And why I hear you ask -  When a public authority or healthcare institution awards a contract to your agency, it serves as third-party validation of your competence and reliability. These organisations have rigorous standards and criteria for selecting providers, and being chosen indicates that your agency meets these high standards.

The Impact: Neglecting public contracts may hinder your agency's ability to build trust and credibility in your community, potentially leading to difficulties in attracting both care recipients and care professionals.

Actionable Takeaway: Leverage your successful public contracts to build trust. Showcase your achievements on your website, and consider requesting endorsements from satisfied care recipients and care professionals.

Mitigating the Risk of Dependency on Private Clients

While private clients are essential, over-reliance on them can be risky. A sudden loss of private clients could spell disaster. Public contracts offer a vital source of diversification. Private contracts can be unpredictable, leading to fluctuations in income. Private clients may come and go, and their needs may change over time. This unpredictability makes it challenging for care business owners to maintain a consistent cash flow, which is essential for covering operational expenses and ensuring financial stability.

The Impact: Neglecting public contracts leaves your agency overly dependent on private clients, putting your business at risk during challenging times.

Actionable Takeaway: Ensure your agency meets and maintains the required quality standards and certifications, such as CQC (Care Quality Commission) registration. Compliance with regulatory standards is often a prerequisite for public contracts. Pursue relevant industry accreditations and certifications, such as ISO 9001 or ISO 14001, which demonstrate your commitment to quality and environmental standards.

Embracing Digital Solutions for Effective Contract Management

In today's digital age, embracing technology is essential for domiciliary care agencies. Digital tools can streamline your processes, making it easier to fulfil public contracts efficiently.

The Impact: Neglecting digital solutions can lead to inefficiencies in contract management, potentially affecting your agency's ability to meet contract obligations effectively.

Actionable Takeaway: Invest in contract management software to efficiently handle public contracts. You could also seek some legal assistance with the hard task of applying for public contracts! While digital tools are essential, manual processes such as well-structured filing systems and regular team meetings are equally crucial for success.

To conclude, the path to success for SME domiciliary care agencies in the UK is paved with opportunities presented by public contracts. Neglecting these contracts can limit growth, jeopardise financial stability, hinder reputation-building, and create a dangerous dependency on private clients. To mitigate these risks, actively seek public contracts, prioritise diversification, and embrace digital tools while maintaining effective manual processes. Your agency's future success depends on it.


  1. "Public Contracts Regulations 2015" - UK Government Legislation.
  2. "The Financial Benefits of Diversifying Revenue Sources" - Small Business Administration.
  3. "Building Trust and Credibility in Healthcare" - Healthcare Financial Management Association.
  4. "The Risks of Overdependence on Private Clients" - Entrepreneur.
  5. "The Advantages of Contract Management Software" - Harvard Business Review.

Want to read more on this? Click the button below to read our article ‘Why agencies lose public contracts’

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