Marek Niedzwiedz, Sheffield-based investor and turnaround expert, along with his business partner acquired a small home care provider called Joghide Home Care in August 2021. Unhesitant to offer shares to his partners, Mr Niedzwiedz quickly managed to find an industry expert to join the team. At the time, the business only worked with one local authority - Worcestershire Council - and all clients were residing in Malvern. Although the business was still compliant, operationally and financially it was in distress.
“As of today, 14 months on, the revenue has grown by 400% and the business has contracts with two Councils. It has become a preferred supplier for Continuing Health Care (NHS), and has private clients too. The Homecare.co.uk score is 9.9 out of 10, and the company is regarded as one of the best home care providers in the area” - Mr Niedzwiedz provides.
The biggest challenge the industry has faced after Brexit is staffing. To overcome this obstacle, Joghide applied for and was awarded a Government Sponsor License to recruit candidates from abroad. At the moment, the company successfully employs carers from Nigeria and aims to open new directions, such as the Philippines or one day maybe Ukraine.
Joghide wants to open new locations soon. To do this, Mr Niedzwiedz is looking for more acquisitions in this sector in 2023 to grow geometrically rather than organically. He is however aware that this industry in the UK is very fragmented with mainly small providers making it a highly challenging initiative. Given the current and future market turbulences, in Marek’s opinion, only larger and well-organised providers will survive.
Mr Niedzwiedz and his team achieved rapid and exceptional results through careful planning and constant review. Niedzwiedz says, “we developed a strategic vision for the company as soon as we had completed my “7-day diagnostics review”. This provided us with a framework for the turnaround. Everyone in the organisation was expected to contribute towards achieving the vision. For Joghide reaching a stage of sustainable recovery required fundamental change to the internal processes and organisation culture”.
Beyond the “7-day diagnostics review”, the company also implemented Marek’s “7 principles for developing business strategies in a turnaround”. These are:
1. Articulate a vision for the organisation and how it will be achieved.2. The strategy must be built around a customer value proposition. The difficulty in this industry is that a home care company does not have just one client. There are other stakeholders around such as Councils, regulator, families of the client, NHS, etc.3. Identifying and building fast on the company's strengths is critical to success.4. Develop a focused strategy.5. Be credible in light of the company’s strengths and weaknesses.6. Strategies that use cash are not usually feasible in the short term. Therefore, Joghide rather focused on other resources.7. Stabilisation is the prime objective, so new strategies often have to wait until recovery is underway.
This is a success story not only because jobs have been rescued and new ones created, but also it’s a success for and about the most vulnerable - people under care.
We’ll be watching and anticipating Joghide and Mr Niedzwiedz’s future actions.