[Before we start I can be pretty blunt, and I apologise if I come across as rude, that is not intended]
Making a business profitable is not normally easy. As human beings we like quick and easy fixes. Sadly, the quick and easy fixes have normally been thought of… You need to ask yourself are you prepared to really give all you’ve got to make this work? Are you prepared to invest time and money in? If not, you need to ask yourself, what level of profits are you looking for? If you want the bigger profits you will need to make some changes.
So, assuming you are fully aware of all this, read on…
1. Is your home full?
The number one way of increasing profit is a full home. This needs careful and honest analysis. No good making excuses. Have you done an analysis on all the homes in the area. How do you compare? Are your potential customers choosing other facilities over yours? If so why? Can you identify your key strengths and weaknesses
2. Specialise in an area and get known for it.
Obviously needs some consideration here. You can charge more for specialist services that is for sure, but this may require investment into training and staff etc. Like any business you need to be able to differentiate your care home to the others in the area. What makes your care home “special”? What could you implement relatively easily that would allow you take on a higher paying resident. Work out a plan and get cracking!
3. Look at how you can increase your fees.
Can you get more self-funding clients? More of a longer-term consideration. Really follows on from points 1 & 2, if you want to charge more you need to offer the extra value – in whatever shape that comes. I have come across an interesting stat recently that said Around 41% of care home residents are ‘self-funders’ and pay an average of £846 per week (almost £44,000 per year). What is your split? Can you increase your number of self-funding residents? If your care is good and you are visible in the market enquiries will come, but what is going to ensure the steady flow of the profitable clients.
4. Does your home have a general unpleasant odour about it?
Not an easy one for care homes. First impressions are very important, and you will definitely be judged on how your home smells. You need to be honest about this, ask somebody else that will be honest with you. Self-funding clients will be more discerning and if they must choose between your home and another, this could easily be the deciding point. Provida can help with these issues there are a large range of products that can help.
5. Invest into your home
Is your home looking a bit out of date? Have you got newer homes in the area that give a better “experience”. Can you upgrade your home and give it a fresh look? Get the services of an interior designer (Provida have some experienced designers that can help) and make it look its best. Properly coordinated rooms etc. and specifically designed with the resident needs can make a big difference. Use your well-designed home as a selling point to attach the higher paying resident.