Writing a Business Plan for an Independent Foster Agency

INDEPENDENT FOSTER AGENCY
BUSINESS PLAN
Copyright © 2017 TCI Pathway
www.tcipathway.co.uk

For those who want to open and/or manage an
independent fostering agency. This guide will
outline the requirements of an assuring business
plan.

Why Do I Need a Business Plan?
Any new independent foster agency will need to apply to register with Ofsted
as a Child Social Services Provider. Part of this process includes writing up a
comprehensive business plan. The plan will need to demonstrate smooth
operation, compliance and sustainability within your service.
There is a lot of ground work and understanding that needs to go into the
planning of such a venture. We will introduce you to the kind of research you
will need to undertake for your business plan, and provide you with clear step-
by-step guidance.

INTRODUCTION
In this section you will need to write an introduction about your Independent
Fostering Agency. You may wish to include the following:
 The name of your IFA and why this name was chosen
 An introduction to the directors of the company
 Why they made the decision to start an IFA (although, try to keep this
brief)
 Any kind of relevant experience
 Your core values and mission statement

The Sector as it is at The Moment
In this section, you will be able to present your research and reasons as to why
you feel your IFA is needed. You may wish to include things such as:
• The geographical areas you will be covering
• Your current shortfall
• Statistics related to child placements (how many exactly require placements)
• Any specific requirements that you may be involved with: BAME families, older
children, children with special needs.
• The impact you feel your IFA will have
It would be in your best interest to include as many official statistics in this
section, as possible.

THE COMPANY
Use this section to outline the basic details of your IFA. When stating the name of your
company, remember to explain your reasons for choosing it. You will also need to
include:
 The full address of your agency’s office (or where you will be operating from)
 The company’s registration number
 Details of company directors, the senior management team and staff members.
 Details of the panel for your IFA
 Existing and/or potential foster carers: Briefly describe how many you are aiming
to recruit within the first three years, and how you will attract them.
 Relationship with Local Authorities: And how you will establish further links.
 Geographical areas that are going to be covered

FUNDING
This will be one of the most important parts of your business plan. You need to have a
clear understanding of where your company’s initial funding is going to come from, in
order to ensure its survival.
 Provide clear details of the existing funds available for your IFA, for its initial start-up.
 Demonstrate a good understanding of your ‘cash flow’ issues for the next three years.
(how much money you think you will need). You can do this by creating simple Excel
spreadsheets.
It is impossible to predict exactly how much your company is going to spend in the first
three years; however, try and ensure your estimates are realistic.

PREMISES
Provide further information about your office premises, if you have one.
Explain whether you think the office space will be large enough to
accommodate your business as it expands, and whether the location is
convenient.
Present any research you have carried out with regards to premises for the
future. Outline the costs, the process of application for it, and why you think it
will be suitable.

PRINCIPAL ASSUMPTIONS: Relating to
the Projections
How do you propose you will move forwards with the business? Are there any
specific assumptions worth considering? You may wish to state things like:
• When you expect your IFA to be registered with OFSTED by.
• How many foster families you aim to approve, in the first year.
• How soon after the foster families have been approved, do you expect to
place children.
• How much funding you are expecting to receive (and when) for the start-up of
your IFA.
• How you plan on marketing/ advertising your company: Will you launch a
website?
• What kind of technical equipment you expect to purchase during the first year
of business.

COSTS & CASH FLOW
This will be one of the most important parts of your business plan. You need to have a
clear understanding of your company’s finances, in order to ensure it’s smooth
running.
When outlining the estimated costs of your company, ensure that you include:
 Fees to Local Authorities
 Payments to Foster Carers
 Staff wages and salary
 Payments to panel
 Other consultants

COSTS & CASH FLOW
You will need to provide clear details of your IFA’s cash flow, ideally for the first
three years. Try and keep your figures as realistic as possible, and include every
cost and expense you can think- Including transport, bills, marketing etc.
Creating a simple spreadsheet on Excel doesn’t have to be difficult. There are
several sources online, that may be able to help you:
https://www.startuploans.co.uk/cash-flow-forecast-template/
https://templates.office.com/en-ca/Cash-flow-statement-TM00000055
http://www.mybusiness1st.co.uk/Assets/Articles-Finance-tools/Cash-Flow-
Forecast-Template

BUSINESS PLAN TEMPLATES
Using an existing template will save you a lot of time and unnecessary
planning. You may be able to find example business plans specifically for other
Independent Fostering Agencies online; however, the generic templates below
will be just as useful:
https://www.princes-trust.org.uk/help-for-young-people/tools-
resources/business-tools/business-plans
https://www.gov.uk/write-business-plan
https://www.startuploans.co.uk/business-plan-template/

Everything starts with a conversation, so let’s talk:
Safaraz Ali
Linkedin: https://uk.linkedin.com/in/safaraz
Twitter Handle: @SafarazAli
Tel: 0121 707 0550

Writing a Business Plan for an Independent Foster Agency

Recommended

Recommended

More Related Content

Viewers also liked

Viewers also liked (8)

Similar to Writing a Business Plan for an Independent Foster Agency

Similar to Writing a Business Plan for an Independent Foster Agency (20)

More from The Pathway Group

More from The Pathway Group (20)

Recently uploaded

Recently uploaded (20)

Writing a Business Plan for an Independent Foster Agency