How to set up a day nursery

Your Mission

A new business needs to have a clear focus. This is likely going to be based on your original driver for starting your nursery in the first place. By analysing your motivations you can create your mission, and by sticking to it, you give yourself the best chance of realising your dream.

Your mission statement should articulate the essence of your nursery's identity and resonate with all stakeholders involved. Consider what your business will provide not only to your investors and clientele but also to your employees and, most critically, the children in your care.

The following are some examples of how a nursery owner’s own impetus could inform their mission, but every business will be unique.

• Going it alone: Many nursery owners began as childcare or education professionals. They have worked for someone else and now they want to do things their way, based on their own experiences. Their mission is likely to be based on what they have seen that works, and perhaps even more importantly, what they want to do differently.


• Dream job: Being an entrepreneur can feel like a calling and so can working with children. For some nursery owners, their decision to open a business was driven by a desire to bring these two vocations together. Their mission is to build a business where their commercial goals always work in synergy with their passion for childcare.


• Local needs: Sometimes if you want something to exist you have to build it yourself. Many nursery owners started their business because there was real demand that existing provision could not fulfil. They are tuned into their community and delivering what’s really needed in the local area.

The information below is intended to be used as guidance about what you will need to consider when setting up your own nursery. It does not cover each area in detail but will give you an overview of what to consider and where to go for more information.

Business Plan

A nursery’s business plan must take into account the unique features of operating in the childcare sector. New entrants should ensure they have a clear understanding of the market and the regulatory environment in which you will be operating. Be careful not to be mislead by assumptions based on headlines, or experiences within a limited division of the sector.

The following are some particular considerations that you may wish to reflect upon when constructing your business plan:

• Finance and funding You may want to consider private equity funding sources. Investors are increasingly looking at the childcare sector as a strong long-term prospect. There are numerous introducer agencies who can help you make connections with sources of finance.


• Government subsidies These are playing a greater role in childcare than ever before, but vary substantially from area to area. In some, they may be more than enough to break even. In others they might need to be supplemented, but there may also be restrictions on how they can be topped up.


• Fees and charges Look carefully at what you charge for as an option and what is included in your regular fees. Your local authority may provide guidance for what is acceptable as an extra charge on top of funding they provide. Consider demand too, and what added extras will help drive revenue, while fulfilling your overall mission.


• Local environment Take-up of subsidised places a varies regionally and a nursery’s business plan should take into account local demand or be prepared with a strategy to disrupt it. For example, by providing help for parents to access subsidies, or developing an offer that is strong enough to attract parents who are prepared to pay privately.


• Future planning Consider the size of your setting and the scope for expansion. Regulators set minimum requirements for space per child and this could limit your growth. Similarly, if you are hiring a multi-use space, this might limit your ability to increase your operating hours. There has been a growing trend in recent years towards settings with 60+ places operating for 10 or more hours per day. If you do not intend to fit into this trend, make sure you understand the challenges it will entail.

Morton Michel’s Nursery Care insurance is there to protect your nursery as you grow, contact us to find out more when deciding how insurance fits into your business plan.

Training and CPD

Working in childcare will be an ongoing learning journey for both you and your staff. Building a robust training programme into your business can be vital to your sustainability, encouraging staff to develop and grow within your setting and business. But it is also important to ensuring you deliver the high-quality provision that parents expect.

By building training into your delivery model, you can ensure your business remains at the cutting edge, capable of handling new challenges as they arise. Staff who have undertaken regular CPD will be more confident and less stressed, while professional training courses ensure they are able to further their own careers within the sector.

There are several options for training to consider:

• Online CPD: There are many excellent training courses available online to keep your staff’s skills up to date. These might be childcare specific, but they can also include generally applicable skills such as people management, health and safety, or digital awareness.


• Face to face: Whether you bring in an expert or send staff on an away day, face to face courses can be invaluable, especially for practical skills such as first aid. It is important to plan time for them however, especially if your setting will need to close while they take place.


• Events and networking: Not all training and development needs to be formal. Attending event such as the Childcare and Education expo, or even local forums can be invaluable for developing skills and discovering new ideas.


• Formal courses: Qualifications are important both for staff development and ensuring regulatory compliance. Giving your staff access to in depth training courses and certifications can be a powerful benefit both to them and your business.

Morton Michel’s Nursery Care insurance package includes access to a vast suite of free online training from flick Learning, as well as discounts from our Childcare Club for face to face training providers.

England

Ofsted is England’s register. It operates two registers. The Early Years Register, which accounts for all childcare providers who offer the Early Years Foundation Stage, and the Childcare Register, which accounts for all other childcare providers (such as those who operate for very limited hours, or solely with older children). The Childcare Register is split into compulsory and voluntary components. Ofsted’s official guidance can be found here.

Scotland

Childcare in Scotland is regulated by the Care Inspectorate. It is responsible for registering and inspecting day care providers. In some circumstances they may also check the financial viability of the service being offered. The Care Inspectorate’s registration page can be found here.

Wales

Day Nurseries in Wales must register with the Care Inspectorate Wales. It is responsible for inspecting and regulating all private care services in the country. CIW’s registration page can be found here.

Northern Ireland

In Northern Ireland, nurseries are still regulated by Health and Social Care Trusts (HSC). Each trust has an Early Years Team that is responsible for annually inspecting childcare settings and ensuring they meet minimum standards. Information from the Northern Irish government on local Early Years Teams can be found here.