Q: I'd like to investigate opening and running my own nursery. How do I go about getting started and what do I need to consider?
Aug 17 2005
Answered by: Philip Wilkinson Ask a question
There has been a huge increase in the number of private day care nurseries operating in the UK over the past 20 years. In 1980 there were 800 private and voluntary nurseries. Latest estimates suggest that this figure now exceeds 10,000. Their development was encouraged in the 90s by tax changes, which made nurseries provided by employers or in which employers were involved in the arrangements and financing, a tax-free fringe benefit.
However, just because there has been rapid growth doesn't mean that this will continue. Nor does it mean a ready market for new nurseries, even if they are better provided than the ones that you have seen. Cost can often be an issue, particularly when parents need to place children in day care to go back to work. Where cost is not an issue you may also find that many parents opt for the alternative of employing a live-in or live-out nanny.
You need to research your local market place carefully to ensure that there is sufficient demand for the sort of nursery that you have in mind. When considering competition don't restrict yourself just to other private day nurseries either, but consider what threat workplace nurseries, nannies, mother's helpers and childminders pose.
I'm sure it won't surprise you to know that nurseries are closely regulated. You need to contact the Social Services Under-8s adviser or Day Care Registration Officer for a copy of the regulations. Your premises will need to be visited by the Day Care Officer to ensure that requirements are met. The Planning Department will need to approve the premises. And your local Environmental Health Officer will advise on sanitary arrangements and food safety. In addition, education watchdog Ofsted now regulates the whole industry, so it is essential that you contact them before starting up (www.ofsted.gov.uk).
The Children's Act and the Child Minding and Day Care Regulations provide the framework for your proposed business. Half of your staff need to be properly qualified (NNEB or NVQs for example) and great care needs to be taken in employing people and ensuring that they are suitable (and do not possess a criminal background). You need to ensure that there are opportunities for outside play and the Health and Safety Officer needs to advise you to make sure that your premises pose no risks for children.
Abiding by all the rules and regulations means that premises could be a very costly item in your start-up calculations. Play and other children's equipment can push the costs up further. To attract the right quality staff you will need to pay reasonable salaries. You will also need various types of insurance, such as employers' liability, public liability and so on. This all means the running costs can be high. Given a sufficient volume of demand in your area you could cover them and make a profit, but you need to be really confident about the likely number of children you will attract.
Contact your local Business Link (www.businesslink.org; 0845-6009006) for more information.
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