Welcome to episode 24 of Continuous Quality Compliance
Today I am talking about you Business Plan.
For a New registration you require a business plan with a 3 year cashflow forecast. It is required for all Providers now before it was just in the Social care sector . Now a business plan is asked for in both Healthcare and Social care. Why because CQC wan t to know you are serious about your business that you have thought it through.
Personally I do prefer using Strategy on a Page approach but the CQC are still old fashioned and require a classic business plan. With a cash flow forecast over 3 years. It does not need to be a thick document.
A business plan should be your guiding tool to help you make decision about the business. It should also be done in advance, so you know if the business you wan to do is feasible. Nothing worse then starting a business on a hope and a whim. A business plan gets you to look at different aspects to check feasibility and financial viability.
Financial viability is actually checked by the CQC they have a form you need to ask your accountant to complete to show that you are financially viable.
Now some of my clients are already running a business and still need to provide a business plan. For these clients I recommend that they look at the past 3 years or 2 years depending on how long they have been going and use that information for the Business plan. You of course need to account for the regulated activity you will be adding and how that affects the other areas. Do you need more staff or do the current staff need further training. They would of course require training in the CQC standards and how that aligns with your business goals.
The purpose of a business plan is to help articulate a strategy for starting your business. It also provides insight on steps to be taken, resources required for achieving your business goals and a timeline of anticipated results. a business plan can be important in providing structure and management objectives to a small business.
For existing small businesses, a business plan should be updated annually as a way to guide growth and navigate the expansion into new markets. For that I like to use Strategy on a Page as everything is on one page and you can clearly see what you need to do.
The cashflow forecast is a forecast so they do not expect you to know all the numbers, but they do expect you to have an idea of expenses and income. Keep the forecast simple you do not need anything too complicated. You do need it for 3 years showing growth of some sort.