The Financials
A quality homecare business providing an essential service to long-term clients provides an excellent return on investment.
The GoodOaks Way of providing care delivers for clients, employees and business owners. The model is sustainable and ethical, providing not only financial returns but a genuine sense of satisfaction knowing you are making a difference to your local clients, their families, and society more widely.
Our model is based on a gross margin of 40%, and a net profitability of 15% once established, with some offices achieving higher returns than this.
Lifestyle returns
Set your own working hours and schedules
Grow your team and ultimately work on your business, not in your business
Deliver care that matches the standards you’d expect for a loved one
Gain a sense of satisfaction from being an employer of choice
Know you are improving the lives of your clients
Be a key part of the Health and Social Care eco-system, supporting your local NHS
Average revenue growth of GoodOaks offices.
Please note that we are unable to guarantee any level of financial achievement, as individual franchise partner performance will have a significant influence on the success of the franchise. We will work with you to develop a detailed business model for your chosen franchise area.
Funding your business
As part of the package, we help you put together a comprehensive, bespoke, business plan including a three year cashflow and profit and loss forecast. Only when you are happy with the figures, and have secured the funding based on the business plan, would we sign the full franchise agreement.
We have good relationships with highstreet banks, who can lend up to 70% of the total investment needed, as well as knowledge of government start-up schemes that can provide support.
Key Figures
How much does it cost to start a GoodOaks Homecare business?
Joining fee
Working capital
Start-up funding
Maybe less than you think. Our joining fee, covering our market-leading start-up package is £19,500, which is up to 40% more cost-effective than franchise models operating in a similar space. We can do this for two main reasons:
✨ Early Adopter Pricing – Rewarding individuals who join us earlier in our journey, enabling you to invest more in growth
🚀 Shared Success Guarantee – Aligning our interests with yours by not making a profit from our joining fees
In addition to the joining fee, you’ll need roughly £50k of working capital, but this varies considerably based on how much you need to take out of the business, your specific business plan, area the you’re looking to get started in and many other factors. You can borrow up to 70% of the total amount, so you might need as little as just under £20k of your own capital. We’ll be able to provide more personalised guidance later in the process.
FAQs
Potentially, yes. As part of the initial discovery call and throughout the process we can give you guidance as to whether that would work for you, taking into account your previous work experience, background, qualifications, and business plan.
Speak to us. If you have an area in mind, give us a call. We can use our start-up expertise and socio-economic postcode-level data to help you make informed decisions about which might be the best territory for you, and where in that area you might look to locate your offices, and focus your marketing and recruitment.
By developing a good business plan and going through that process in itself, you can reduce your costs and risks. Having a watertight, thorough, and sensible business plan will help you prepare your strategy for long term success, and that’s something we can help with.
You’ll want to reduce any unnecessary expenditure; so a smaller office on a flexible lease might be a good idea, with second hand furniture and a lean office structure. How much you need to take out of the business each month to pay your own personal bills can make a massive impact on your working capital requirements, as can your staffing plans.
Compared to a lot of other businesses, homecare has relatively low overheads. You’re not investing in much stock, equipment or machinery, and can move into bigger offices as the business grows. Your Working Capital sits in your bank account and is your buffer during the period where your income hasn’t caught up with your overheads. During the first 2-3 years you’ll need to pay extra attention to your cash flow to balance and accommodate your growth, as it can be a challenge to catch up with yourself in periods of high growth. This will fluctuate at times and having that extra capital available will allow for any lags and alleviate shortages of cash.
Out of the working capital requirements would come other expenses such as office space, IT equipment, insurance, software, wages, advertising costs etc. We are here to advise and offer guidance on each, offering recommendations and help.
This is because we don’t seek to make a profit from our joining fee; we want to do well when you do well, not make it harder for you before you’ve even delivered your first care visit.
The extra £10-£15k that you’ll save can go straight into growing your business, investing in salaries to attract the best people, or increasing your working capital, reducing the pressure that comes from starting your own business.