News & Insights

How to Start and Grow a Care Company

Amanda Astall
Written by
Amanda Astall

Creating a new company within the care sector can be a challenging but incredibly rewarding experience. With demand set to increase over the coming years, more and more opportunities are becoming available to provide high-quality care services.

According to the Department of Health and Social Care’s most recent statistics (April 2025), the number of individuals receiving long-term social care support increased from 646,450 in January 2024 to 666,450 by December of that year, representing an overall increase of 3.1% (or 20,000 people). Growth within community-based support also saw a large increase in demand, with a rise from 464,710 service users to 484,550 in the same period representing an increase of 4.27% (or 19,840 people).

The trends identified by the Department for National Statistics present clear evidence of opportunities to prospective care providers. With the surge of individuals seeking social care support in long-term social care settings and the community, there is an increasing need for compassionate, reliable, and competent care providers. However, the sector does have some challenges to overcome, including meeting regulatory requirements, implementing systems/policies, and competing for contracts.

In this article, we will share the essential steps required to starting and growing your care business, including how we can support you in bidding for contracts – the strongest and fastest way to expand your business.

Where to start?

Building a strong foundation is at the core of any successful enterprise. Prospective clients, commissioners, and regulatory bodies will expect clear evidence that your services are trustworthy, safe, and well-governed, and that they consistently meet the standards required.

First steps will include:

  • Decide the type of care to deliver: Before you create your company, you will need to decide what kind of care you will be delivering. There are many kinds of care, from domiciliary care, supported living, and residential care. It is important you do your research and ensure you can meet the requirements of each specialism.
  • Registering with the Care Quality Commission (CQC): To provide regulated care, it is a legal requirement to be registered with the CQC. To do this, you will need to appoint a Registered Manager and a Nominated Individual with relevant qualifications to ensure your company meets standards.
  • Registering on the Central Digital Platform (CDP): In accordance with the new Procurement Act (February 2025), you will need to register your company on the CDP.
  • Creating policies and procedures: Stakeholders will expect you to have robust processes in place to ensure your services sector requirements. Polices can be sourced from specialist providers such as Quality Compliance Systems (QCS), Citation or Croner; developed internally in accordance with regulator guidance; or adapted from templates offered by Skills for Care or the NHS.
  • Care management software: Investing in quality care management and rostering tools will improve your service efficiency, monitoring, professionalism, and readiness for tenders and inspections, the most common ones we see are CarePlanner, Nourish and Birdie.
  • Get insured: It will be essential that you secure the correct levels of insurance, which includes Employers’ Liability, Public Liability, and Professional Indemnity as standard.
  • Building your team: Recruit carefully with full checks (NHS Employment Check Standards) and provide thorough inductions to ensure staff deliver high-quality care.
  • Financial planning: Creating a strong financial plan will support your company’s growth and evidence your financial stability to commissioners.

Growing your company

Once you have established your care company, you should consider the best ways to expand your service delivery. Ways to do this include collaborating with NHS trusts, brokerage teams, and charities to expand your client base, investing in marketing to local people and building community reputation to secure private clients, and start to differentiate from competition by considering what you can offer that other services cannot, such as innovative practices, technology-enabled care, or specialist services. 

However, the most reliable way to achieve continuous, large-scale expansion is by bidding for public sector contracts. This is critically important for care companies that want to grow because it provides structured access to sustainable contracts and a pathway to scale.

Here are the key reasons:

  • Access to long-term, high-value contracts: Local authorities, the NHS, and other commissioning bodies procure care services primarily through tenders. Winning a place on a framework or securing a block contract gives guaranteed revenue streams, often for several years, providing financial stability and a base for growth.
  • Market visibility and credibility: Being awarded a tender demonstrates compliance with quality, safeguarding, and regulatory standards. This builds trust with commissioners and private clients, enhancing reputation.
  • Structured growth pathway: Tendering gives access to larger volumes of clients than ad hoc private referrals. Frameworks and Dynamic Purchasing Systems (DPS) allow ongoing opportunities for work, enabling steady scaling without relying solely on word of mouth or marketing.
  • Financial growth and diversification: Public sector tenders offer more stable income compared to private clients who may reduce hours or stop care suddenly. Winning multiple contracts in different regions/services reduces reliance on a single income stream, making your business more resilient.

Tendering is a gateway to growth, stability, and credibility for care companies. Without engaging in tenders, providers risk limiting themselves to small-scale private work, while competitors build strong, long-term positions in the market through commissioned contracts.

How Bespoke Bids can help you grow

Tenders are competitive, and success will depend on your ability to evidence quality, robust policies and processes, compliance and successful client outcomes. This is where Bespoke Bids can support you.

As expert Bid Writers, we will closely analyse the tender requirements and translate your industry knowledge and experience into high-scoring bid responses that meet and exceed the expectations of commissioning authorities. Through our team’s collective years of experience, we will accurately interpret tender questions, collaborating with you to create responses which highlight your company’s values, skills, training and track record. Our tried-and-tested process will ensure your bids achieve maximum impact, giving your company the edge to win.

We have extensive experience helping companies in the care sector grow by securing public sector contracts. Below is a review from a repeat client, showcasing how transformative our bid writing support has been for their company:

Ultimately, creating and growing a care company is a highly rewarding endeavour. However, success in this sector will require preparation, compliance with industry standards and business strategy. With trends indicating a continued rise in demand for services, there are significant opportunities available to providers who can effectively showcase their expertise to commissioning authorities.

By working with Bespoke Bids, you can transform your experience and skills into high quality bid responses, increasing your chances of securing contracts and enabling your business to succeed.

For more on bidding in the care sector, click here.

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