7 things you need to consider when opening your own nursery

Matt | December 2, 2015 | 0 Comments

Nurseries, it seems, are permanently in demand. That’s why, if you have the skills and the inclination, opening a nursery can seem like a natural step in your career. You may have spent time caring for young children, running a nursery or doing something completely different. Whatever your background, you may have spotted a gap in the market.

There are many factors to think about, from the brand of nappies you use to the team you hire to provide the best care possible. Done right, all of these factors will help build up a bond of trust between your establishment and the children – and parents – you’ll be working with.

1 Research your market

Before anything else, make sure there’s room for your nursery. Are you in a commuter hotspot with few to no childcare facilities? Perfect – you’ve found the dream spot for a brand new nursery. But if there are three or four successful nurseries nearby already, each with plenty of room for new children to join, then you might have to think more carefully about what could set your operation apart. Make sure you research potential customers, the local market and competitors.

2 Figure out your overheads

Costs can vary hugely depending on a range of factors, not least of which is whether you’re starting afresh or buying an existing business. What are the opening hours, staff expenses, rent and kind of care you’ll be providing?

Look at both your initial outlay and the day-to-day running costs. The former will include expenses such as the purchase or lease of the building your nursery will be housed in, as well as the cost of equipment, recruitment and marketing your business.

The latter will cover things like energy bills, insurance, wages and disposables – nappies, food, art supplies and so on.

An accurate idea of the costs involved will help you set the right fee levels.

3 Raise your capital

With a business plan completed, it’s time to think about raising the finances you’ll need to get those doors open. Think about the amount you can invest from your personal savings, what the best bank loans are, whether you should apply for a business start-up loan or if you are entitled to funding. The latter option might include funds obtained from the Childcare Business Grants Scheme, the Start Up Loan Company, two-year-old capital grant or Local Enterprise Partnerships. You’ll also need funds to properly equip the nursery with furniture, toys, room dividers, cots and lots more.

4 Know your regulations inside out

Without exception, every nursery in the UK must register with a regulatory organisation, although these vary across England, Scotland and Wales.

In England, check Ofsted and the Early Years Foundation Stage.

In Scotland, visit Care Inspectorate and National Care Standards.

In Wales, look at CSSIW and the National Minimum Standards for Regulated Child Care.

5 Employ the right people

Finding the right team is not only a question of blending talent with experience, there are also legal requirements to consider. Chief among these is ensuring all staff have up-to-date Disclosure and Barring Scheme (DBS) checks before they begin work. There are also defined child-staff ratios to meet and minimum educational qualifications to specify. You’ll find more details with your relevant regulatory body.