The Strong Foundation That All Successful Businesses Are Built On, And Why Your Care Home Must Be Too.
If you’re an independent care provider – whether the owner, registered manager, home manager or all three – then we can help you make your care home business the success you want it to be.
I know we can do this, not because I have more experience than you in care, but because I know how to build the strong foundation that businesses need to be built on if they are to be successful.
Strong foundation = Successful business
Weak foundation = failed business
It’s not quite that black and white. A strong foundation does not guarantee a successful business. (Bad luck can play a part. How many otherwise successful businesses have been lost in the past year to the pandemic? How may were lost in the years after the global financial crisis of 2008?) But a weak foundation will result in a business eventually having to close, usually because it runs out of money.
If you want your care home business to succeed, then it needs this foundation.
A strong business foundation has 3, what I call, fundamental building blocks, which I’ll introduce to you in a minute. I gained a huge amount of experience in these building blocks during the many years I worked in the electronics industry for companies like Hitachi, where I secured multi-million-pound deals and managed global projects. From Sky boxes, to mobile phones and base stations to infotainment systems for auto companies like Mercedes and BMW – you’ll find my fingerprints.
I then co-founded a software company and went on to consult and coach business owners in how to build strong foundations for their businesses. My focus moved from hi-tech sector to the care sector a few years ago when I met my wife. She’s been a successful registered manager and owner of nursing homes for over 20 years.
In the first sentence I said, “care home business” – this brings is a key point…the care home that you own/manage is a business. It:
- Delivers a service,
- Employs people,
- Must meet industry standards,
- Pays corporation tax,
- Must cover its costs and return enough profit to invest back into it.
Like a factory, a coffee shop or a law firm, your care home is a business – not a charity or a government-owned public organisation.
This brings me nicely onto my second key point. For your care home to be successful you must think of it as, and run it like, a business. If this sounds a bit obvious then great, you are thinking like a business leader and we’re on the same page, which is an excellent start.
If it doesn’t sound obvious then, like many independent care providers, you might see yourself as a care provider first and business person second. To many, thinking of their care home as a business that needs to make enough revenue to cover its costs and to return enough profit, makes them uncomfortable.
If this describes you, then I urge you to explore this website and also read my eBook, The Secret to a Successful Care Home Business. In it I explain why your top priority needs to be making your business work.
Actually, I narrow it down further to say your top priority is to make sure your care home is financially viable.
You run a business and if your business isn’t financially strong and healthy then nothing you do will work and you will eventually go under.
The average – that is most – businesses don’t make it. I’ve spoken to many business owners – some who made it and many who didn’t – I’ve looked at my own successes and failures and carried out a ton of research. I discovered common reasons as to why most businesses failed, regardless of the sector they work in.
I narrowed these common reasons for success and failure down to 3 fundamental causes. Their presence increased the chances of success and their absence almost certainly caused their failure.
I say, ‘increased their chances of success’ because there is still no guarantee. Luck (both good and bad) has, as I said earlier, a key role to play, for example, companies like Zoom and Peloton have inadvertently exceeded all growth projections because of the Coronavirus pandemic, whilst many ‘healthy’ retail and entertainment businesses have gone under.
Luck aside, successful businesses are built on a foundation based on certainty and control. They have the certainty of knowing where they want to get to and how to get there and they have the control needed to get there. This intangible need to have certainty and control translates into the tangible components of strategy and leadership.
Now, of course, we live in a world where 100% certainty isn’t possible. So, when I talk about establishing certainty, I am talking about eliminating as much uncertainty, risks and threats as possible.
Business owners and leaders need to step away from their business knowing that it will still work without their daily intervention. Good businesses have systems in place that keep things working like an efficient engine. Without the right systems and processes in place there would be no strategy that would guide the way and no strong leadership that would ensure the strategy was implemented. Systems is the 3rd fundamental building block.
Here are those 3 fundamental building blocks that make up a strong business foundation in more detail.
Strategy Building Block
This is the core building block of your foundation. A strong, coherent strategy lies at the heart of every successful business. The Strategy building block comprises a system or framework for creating and implementing a coherent, balanced strategy plan. Without this building block, even the best CEO will struggle to steer a true course towards his vision. The business has no direction and no destination. History is littered with examples of companies that had strong leadership, which confidently took the business in the wrong direction and off a cliff.
No strategy and you’re ‘winging it’ – you’re being opportunistic not strategic. You can only hope that with luck your business will be successful.
Leadership Building Block
The Leadership building block is essentially the leadership skills and attributes needed by you and all of your people – for you and your management team to create and implement the right strategy plan and the rest of your team to deliver a quality service. Without this building block, a strategy will be weak, if it exists at all, will likely sit on the shelf, milestones and targets will be missed and the supporting framework will fall apart. The service you provide will deteriorate and you’ll spend more and more time fixing issues. The leader will lose control and the business will veer off course.
Systems Building Block
The Systems building block must be in place and working in order for the other two blocks to work. Without this building block, leaders will not have the time and space to step back and create a good strategy nor check that it is working. They will not be able to maintain course nor correct deviations from it because they will be spending all their time in the business and reacting to it.
You need the right systems and processes in place so that your business runs efficiently and effectively without you in it every day. With a well systemised business you will be able to step back and be the leader it needs you to be.
This is the strong foundation that supports all successful businesses and is the same one you need for your own care home business.
Without these 3 building blocks your business foundation will be weak – that is to say, instead of based on certainty and control, it will be based on hope and luck. You can only hope you are doing the right things to run and grow your business and that with luck nothing unexpected will happen that will hurt it.
With this foundation your business is like a stone castle built into a cliff that has withstood the elements for hundreds of years – it’s strong enough to weather the storms ahead. Without this foundation, your business is more like a sandcastle – it’s weak and vulnerable and won’t last beyond the next incoming tide.
If you’re in this to build an incredibly successful care home business that delivers the best of care to its residents and that brings the best out in its people and that you’re proud to stand at the helm of then you must eliminate hope and luck and instead establish the certainty and control that these building blocks give you.
The care sector is in crisis because too many care homes go under each year. These homes aren’t built on strong enough foundations. In fact, as I mentioned earlier, the main cause of their demise is a critical element within the strategy building block – financial viability.
This one critical element above anything else can make or will break a care home. If you question this statement, then read this report now, Will Your Care Home Survive This Crisis?
The financial health of your care home is where our help starts. Only when you care home is financially viable, can we help you build your care home on a strong foundation that not only protects it against crises like the pandemic but ensures it stands out from the crowd as the best care home around.