If you are thinking of starting your own childcare business, there’s a lot that you need to take into consideration. From costs to government requirements and marketing, it is important to cover all your bases before moving forward with your plans. With a growing demand for childcare services across the UK, starting your own business could work well in your favor.
Despite the various factors that require attention when getting to grips with a new venture, running your own business might not be as challenging as you think. Here, we have outlined some key considerations on how to begin establishing a childcare business and our top tips for success.
1) Conduct Market Research
Before you do anything, it is important to conduct market research on the childcare industry in your area to see who your competitors would be, how they currently operate, and where your place in the market would be.
This can help you find a niche to make you stand out amongst other service providers. For example, Keren’s Nursery has three branches allowing more children to be cared for under their name, dominating the area in which they reside. By knowing where you will stand in the market, you will have a better understanding of your operations and success rate.
2) Decide On Your Type Of Childcare Business
There are many different types of childcare that can be offered. Depending on how many hours and days of the week you’ll be open, you should think about which childcare route you want to go down.
There are officially four types of childcare in the UK: home childcarer (at the home of the child/ren being cared for), childminders (on domestic premises which is not the home of the child/ren cared for), childcare on domestic premises (4 or more people caring for children on domestic premises), and childcare on non-domestic premises (on premises that are not used as a home e.g. a day nursery).
Once you have decided which childcare service you are looking to offer, you will be able to get the ball rolling to make it happen.
3) Meet Government Requirements
It is essential that you and your business meet the requirements outlined by the government and Ofsted. You should also work to rigorously protect data of the children under your care (source: Lucidica.co.uk) as well as ensure you are operating your business in a safe environment.
This will again depend on the type of childcare business you are wishing to run, but generally, you will have to register your organization and have a DBS check. In order to be registered with Ofsted you will need to pay an annual fee, so be sure to research this to stay fully licensed.
4) Establish A Budget
Next, you will need to establish a financial plan for your business. It is advisable that you calculate all your potential outgoings for your business venture, taking the potential premises, staffing, equipment, and marketing costs into consideration to ensure the business is viable. These factors might also highlight additional requirements for your business which you may not have been aware of.
For instance, the number of children you can care for at any one time will depend upon the size of your premises. By figuring out where your costs will go, you can get a financial plan in place which will be largely beneficial for keeping track of cash flow.
5) Create A Brand
Finally, once you have figured out the logistics of running your childcare business, you can get creative with branding and marketing. You’ll be able to pick a business name, design a website, set up social media accounts, and advertise your services around the local area.
Make sure to choose a business name that reflects your services and attracts the ideal demographic, it should be obvious what you offer even from a glance. A website and social media accounts are also good ideas as they will get your business name out there and drum up business. All going smoothly, your childcare business will then be underway!