Economies of scale provide benefits, such as cost distribution, sharing best practices, and promoting learning opportunities. However, these advantages can quickly become disadvantages,especially without a unified vision.
In recent years, I have noticed that many independent care companies outperform larger organisations in their local communities. This trend prompts an important question: Why can smaller independent care companies flourish while larger ones face difficulties?
Not long ago, technology played a minor role in the care sector. Many companies either used fragmented systems or operated without digital solutions. Today, however, technology is revolutionising the care industry daily.
Large franchised or corporate care companies often rely on their headquarters for direction, leads, and technology strategies. Unfortunately, some of these companies remain stuck in the past, behaving like the industry hasn’t evolved. Their approach to adopting new technology is frequently guided by consultants who may understand bureaucratic processes but lack expertise in care management, innovation and technology.
This approach leads to rigid and sluggish digital transformations, where decisions prioritise bureaucracy over innovation. In contrast, independent care providers may quickly adopt modern technology solutions, such as all-in-one platforms that combine care planning, AI-driven compliance, marketing automation, and real-time communication tools. This gives them a significant competitive advantage.
Large care franchises can experience disconnected leadership, which can hinder local branches from implementing necessary changes due to corporate inertia.
For instance, a franchisee once approached us to explore Careberry, believing it could transform their operations. They scheduled a meeting with their franchisor, but it was rescheduled six times, leaving the franchisee feeling frustrated and powerless. Their outdated system was inefficient, but without central approval, they felt stuck.
In contrast, independent care companies do not face these constraints. They can swiftly make decisions, adopt cutting-edge care management software, and streamline workflows within days instead of months.
In almost every industry—whether in sports, business, or skilled trades—competition typically comes from a handful of key players. However, in the social care sector, local markets can be saturated with numerous care providers, leading to intense competition.
While many new entries to the market could struggle to make an impact, some are set up by tech-savvy and determined independent operators. These providers:
- Utilise advanced care management platforms
- Automate marketing and compliance processes
- Streamline care coordination through digital tools
If a large corporate care provider is slow to adapt, it risks falling behind and becoming overly reliant on local authorities. In contrast, independent providers can make rapid changes, sometimes migrating their entire care management platform within 48 hours. Meanwhile, larger care companies often grapple with bureaucratic approvals and rigid, outdated workflows.
Agile care providers are succeeding because they embrace innovation and leverage technology effectively. Care companies that do not adopt technology, empower local leadership, and simplify decision-making risk being outpaced by smaller, tech-driven providers. These smaller companies typically face fewer bureaucratic obstacles, allowing them to deliver care more quickly.
However, larger care providers can remain competitive if they are willing to evolve. While smaller independent providers have the advantage of agility, large care companies can leverage their scale, resources, and brand reputation to maintain their position in the market.
If you're in the care sector, consider this: Is your organisation ready to evolve, or will you be left behind? Whether you are a large or small provider, Careberry is always happy to assist you. We are driven by our purpose to make care management easier, safer, and more efficient.
