{"id":5185,"date":"2024-12-12T08:43:07","date_gmt":"2024-12-12T08:43:07","guid":{"rendered":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/found-this\/ft28-funding-variables\/"},"modified":"2025-09-18T14:34:39","modified_gmt":"2025-09-18T13:34:39","slug":"ft28-funding-variables","status":"publish","type":"newsletters","link":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/found-this\/funding-variables\/","title":{"rendered":"Funding variables"},"content":{"rendered":"
\n

We\u2019ve been having a lot of really positive conversations recently with people looking to build something in the care sector.<\/p>\n

It feels like it\u2019s the prospect of building a company that truly changes people\u2019s lives, and the soaring, predictable demand for the sector that are two big elements informing\u00a0decisions. Funding is a huge topic at this point so I thought I\u2019d touch on the big question:<\/p>\n

\u201cSo, how much money do I need?\u201d<\/em><\/p>\n

There\u2019s a philosophical answer to that question<\/a>, but I\u2019ll give the practical one in relation to homecare start-ups. We\u2019ve updated our cashflow forecast for 2025, and the headline figure for us is \u00a370-\u00a3100k+, but with big variations. Here are the main variables:<\/p>\n

    \n
  1. Your own monthly drawings <\/strong>– if you personally need \u00a33k monthly from month 1, that\u2019s an extra \u00a336k in year one over someone else who has an understanding (and well-resourced) spouse, other sources of income, or extra savings. There\u2019s no right or wrong answer, but lenders will want to see evidence of how you plan to pay your personal bills either way.<\/li>\n
  2. Your Registered Manager plans <\/strong>– If you have a background in care or similar, you might be able to be the RM for a while. We do support owners who choose to do this, and it can save \u00a330k in the first year.<\/li>\n
  3. Your CQC Registration<\/strong> – following the traditional model of getting CQC registered can cost anywhere between \u00a37k and \u00a320k. Talk to us about how we can help manage the costs and risks involved.<\/li>\n
  4. Your franchisor initial fees –<\/strong>\u00a0Our fees are on average \u00a320k less than some of our national rivals due to our Shared Success Guarantee. When you factor in VAT and interest on that difference, the total saving with a brand like ours is \u00a332,435. If you needed to borrow to fund an extra \u00a320k initial fee with another franchisor, that will incur monthly repayments of \u00a3763 over 36 months. That\u2019s an extra \u00a38,832 in year one loan repayments, pushing up the total capital you need.<\/li>\n
  5. Your financial model –<\/strong> Are you going to provide high-touch, high-quality with associated higher margins, or Local Authority contracts with big turnover but razor-thin margins? You\u2019ll need more working capital to deal with delays in payments, increased wage bill, and potentially bigger office teams with the latter<\/li>\n
  6. Your funding arrangements<\/strong> – Big loan repayments can affect your cash flow. Loans are how most businesses get off the ground, but it\u2019s something we always talk through with prospective partners. We work with all the big banks and are able to access various options, like repayment holidays and no early repayment charges, which helps.<\/li>\n<\/ol>\n

    I hope that is of interest – If you’d like to know what all this means for you personally, do just book a call with me<\/a> and we can discuss.<\/p>\n

    Best wishes, Ben.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    We\u2019ve been having a lot of really positive conversations recently with people looking to build something in the care sector. It feels like it\u2019s the prospect of building a company that truly changes people\u2019s lives, and the soaring, predictable demand for the sector that are two big elements informing\u00a0decisions. Funding is a huge topic at […]<\/p>\n","protected":false},"featured_media":0,"template":"","newsletter_category":[16],"class_list":["post-5185","newsletters","type-newsletters","status-publish","hentry","newsletter_category-all"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/wp-json\/wp\/v2\/newsletters\/5185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/wp-json\/wp\/v2\/newsletters"}],"about":[{"href":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/wp-json\/wp\/v2\/types\/newsletters"}],"wp:attachment":[{"href":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/wp-json\/wp\/v2\/media?parent=5185"}],"wp:term":[{"taxonomy":"newsletter_category","embeddable":true,"href":"https:\/\/www.goodoakshomecare.co.uk\/franchise\/wp-json\/wp\/v2\/newsletter_category?post=5185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}