earlyyears.teachwire.net
27
nursery business
S
tarting your own nursery can
be very rewarding, but it’s also
challenging, even for someone
already working in the sector.
The solution? Make sure you
plan carefully at every stage of the process...
IS IT FEASIBLE?
As part of the feasibility stage, carry out
your market research. Is there a need for
another nursery? Think about customers,
competitors, operations and local market
conditions. Write a thorough SWOT
(strengths, weaknesses, opportunities,
threats) and PEST (political, economical,
social, technological) analysis of your
proposed business.
CONTACT YOUR L.A.
Get in touch with your local authority
early years team, who will be in charge of
childcare provision in your area. Look at
their Childcare Sufficiency Assessment.
They will be aware of other nurseries
planning to open shortly. They can also
offer advice about local funding and
support. Many local authorities have a
business support advisor, who can offer
you additional help.
ON THE PREMISES
Once you have found a property, you
need the relevant consents from planning,
fire and environmental health
departments. Is this premises fit for
purpose? Speak to your local planning
office before committing yourself.
BUSINESS PLANNING
Estimate your costs – think about start-up
costs (purchasing or leasing the building,
equipping it, recruitment and marketing)
and also running costs (staffing bill,
utilities, insurance, resources and food).
These delivery costs along with your
market research will help you to set your
fee levels and write your business plan.
NDNA has business plan templates to
assist this process.
Most new businesses will need to
raise finance. Can you invest money into
the business? Where will you get the
balance from – e.g. bank loans, start-up
loans, equity funding or grants.
Decide your business structure – will
you be a sole trader, limited company or
run by management committee?
Contact Companies House for
information.
If you are buying an existing
nursery premises, undertake due
diligence and seek professional
advice. Will you need to change or
adapt it? Would that require further
permission, and how will that affect
your planned timescales?
REMEMBER
TO REGISTER
You will need to register with the
appropriate regulatory body and comply
with their legal standards. The registration
process can take up to 25 weeks to
complete, so you will need to build this
into your plan. It will include a pre-
registration visit.
Nurseries in England must register
with Ofsted and comply with the Early
Years Foundation Stage. Scottish settings
should contact the Care Inspectorate and
comply with National Care Standards. In
Wales, settings need to register with Care
and Social Services Inspectorate Wales,
and comply with the National Minimum
Standards for regulated childcare for
children up to the age of 12 years and
associated regulations.
PREPARING
FOR OFSTED
During your registration visit you will need
to demonstrate the criteria set out in your
regulatory body’s registration guide. Your
first job will be recruiting your staff. Aim to
get the best people for the job so you can
provide the highest quality care and
education. Make sure they have full and
relevant qualifications. You will need to
carry out a DBS check for all staff and
meet necessary staff:child ratios. Check
your regulatory framework on issues such
as first aid qualifications.
NDNA has a factsheet and a more
in-depth step-by-step guide,
Starting
Your Nursery,
for prospective nursery
owners in its online shop. Visit
ndna.org.uk. For more support, call
01484 407 070 or email
If you’re starting out in the nursery sector, you’ll have a lot to think about. This handy
guide from
Deborah Robinson
will ensure you don’t forget anything important...
Carry out an
annual business
health check to
ensure that your
business is
sustainable.
Your first steps
Deborah Robinson
is Business Support
Manager at NDNA.
