SETTING UP A NURSERY

Nurseries are popular, successful businesses in this day and age. They offer early childhood education to children before they begin compulsory education, and could be the perfect place for you if you enjoy working with children. However, if you’re thinking of starting your own nursery school, there’s a lot that needs to be taken into consideration first.

What Qualifications Do I Need to Open a Nursery?

If you plan to set up a nursery business, you don’t need any formal childcare qualifications, unless you want to be involved in the day-to-day managing of the nursery. Managers must have at least two years’ experience as a qualified nursery nurse, one to two years’ experience in a supervisory role, and a relevant nursery qualification.

Registering Your Nursery

Your nursery will need to be registered the specific regulator in your country:

Once you are registered with Ofsted, they will carry out inspections of your nursery at least once every three years, to ensure that it conforms with the 14 national standards for childcare. You will be graded on this.

Starting a Nursery Business Plan

When setting up a nursery, the first thing you need to do is create a business plan. This will help you to stay on track and within budget, as well as showing any prospective lenders that you know what you’re doing.

Market Research

One of the first things to think about is whether there is actually demand for a nursery in your local area. Look at the childcare providers around you which might be your competition, including other nurseries and childminders. How many of them are there? Are they full, or do they have lots of spare places? 

Financial Planning

Financial planning is key to any successful start-up. You will need to spend time working out each of the following:

Costs

You will have two types of costs: start-up and running. Your start-up costs involve:

• Setting the nursery up, including buying the premises (if you      choose to do so), and any building conversion costs.
• Installing facilities such as a professional kitchen and outdoor      play equipment/ground surfacing.
• Buying furniture, toys, books, first aid kits, office equipment,      uniforms, and signage.
• Registering your nursery.
• insurance costs
• decorating
• equipment
• Marketing.
• Initial staff training.

Start-up costs could total up to £120,000, but you could cut costs by buying things second-hand, doing as much as you can yourself..

Running costs will include ongoing expenses, such as:

• Rent or mortgage payments.
• Staff wages. The average salary for nursery staff is £20,000;      paying their wages will make up the bulk of your running costs.
• Your own salary, directors salary
• Utilities including council tax, telephone, water, gas, and electricity.
• Food .
• Cleaning.
• Toys/Books
• Regular maintenance.
• Ongoing staff training.
• Insurance.

Profit

You need to project how much money you expect to make from your business, in order to find out whether or not it is going to be profitable.

Insurance

Insurance is included in your running costs, and it’s worth mentioning which insurance you should consider acquiring before you start your nursery. 

If you plan to organise trips, make sure that your insurance policies cover staff and children when they are away from the nursery premises.

Marketing and Branding

Marketing and branding are important parts of your business plan – they involve making your business known, and giving it its own style.

Starting a day nursery

1. Make sure its right for you

2. Make sure you have the qualifications and experience for it

3. Choose the type of day nursery you want

4. Check if its financially viable

5. Research Ofsted, regulations and legal cover

6. Research business premises

7. Do a business Plan

8. Build your nursery brand