Expert help
It pays to take professional advice and read widely before you start up a nursery.
Consultancies
* Busy Bees, as well as owning a chain of nurseries, can help develop facilities either in partnership or on behalf of large companies: The Rom Building, Easter Avenue, Lichfield, Staffs WS13 6RN, tel: 0870 380 6614.
* Childcare Consult, owned by former Ofsted Inspector Laura Henry, specialises in inspection support and staff development. tel: 020 8409 0202, e-mail: info@chilcareconsult.co.uk.
* The Children's House consultancy gives advice on starting and running a nursery, tel: 01472 504891, consultancy@the childrenshouse.org.uk, www.the childrenshouse.org.uk.
* Childcare Partners has expertise in helping employers decide on childcare strategy, particularly in the area of partnership schemes with local communities: Buffer Bears, Head Office, The Hospitium, Valpy Street, Reading RG1 1AR, tel: 0118 950 3200.
* Mark Dudek is a specialist adviser on the early years environment, tel: 07976 703760, www. educationdesign.co.uk.
* Trio Childcare Connections can help with starting a nursery, Ofsted problems, etc: Newburn Centre, Newburn Crescent, Swindon SN1 5ES, tel: 01793 514422.
* Noel Quinn is a training and management consultant company that can support the development of your nursery business: 83 Cubbington Road, Leamington Spa, Warwickshire CV32 7AQ, tel: 01926 420340, info@noel quinn.co.uk.
Childcare and professional organisations
* 4Children, formerly Kids' Club Network, Bellerive House, 3 Muirfield Crescent, London E14 9SZ, tel: 020 7512 2112, www. 4children.org.uk.
* Daycare Trust, 21 St George's Road, London SE1 6ES, tel: 020 7840 3350, www.daycaretrust.org.uk.
* National Day Nurseries Association, Oak House, Woodvale Road, Brighouse, West Yorkshire HD6 4AB, tel: 0870 774 4244, www. ndna.org.uk.
* The Pre-school Learning Alliance, 69 King's Cross Road, London WC1X 9LL, tel: 020 7833 0991, www.pre-school. org.uk.
* Scottish Independent Nurseries Association, Hyde Park Business Centre, 60 Mollins Burn Street, Glasgow G21 4SF, tel: 0141 557 3040, www.sinascotland.com.
Publications
* Nursery World, priced 1.30 a week, includes news, features and curriculum guidance (subscription hotline, tel: 0870 444 8628), www.nurseryworld.co.uk.
* Starting a Nursery - A practical guide for early years professionals by Martin Pace (Nursery World, now on offer, tel: 0870 444 8633).
* Starting a Day Nursery: The essential elements resource pack (National Day Nurseries Association, 25, tel: 0870 774 4244).
* Starting a Pre-school factsheet, included in the group membership pack (Pre-school Learning Alliance, tel: 020 7833 0991).
* Starting and Running a Nursery - the business of early years care by Helen Jameson and Madelaine Watson (Nelson Thornes, 19.75, tel: 01242 267268).
* Building for Young Children by Mark Dudek (10, tel: 07976 703760).
Market research
You will need to demonstrate that you have conducted market research if you are to gain funding to set up your nursery. Market research is to show that the area you have chosen has enough children to support your nursery, will enable you to charge a high enough fee and will enable you to fill your nursery quickly enough and stay full so you can make a profit. Research will also help define the service you are to offer.
* Look around the area for evidence of young families - primary schools, children's shops and so on.
* The business support officer within your local authority and your local Children's Information Service (CIS) are good sources of information.
* Contact major employers to ask if their employees need childcare.
* Prepare a questionnaire and conduct a survey of what age of children people have, where they live and what childcare they use. This helps gauge demand and publicise your nursery.
* Research your competition to establish whether the nurseries are full and what services they offer.
Contacts
* CACI is a market research company: Kensington Village, Avonmore Road, London W14 8TS, tel: 020 7602 6000.
* Childcare Link can provide details of your local CIS, tel: 08000 96 02 96, www.childcarelink.gov.uk.
* Experian is a market research company: Garden Floor, Bain House, 16 Connaught Place, London W2 2EP, tel: 020 7664 1157.
Business plan Your business plan should include:
* Executive summary - include key objectives, financial objectives, level of funding needed.
* Sector analysis - a brief explanation of the nursery marketplace.
* Market analysis - your market research.
* Operational plan - your business objectives and how you expect to achieve them, ethos, opening hours, age groups and so on.
* Management team - outline staff identified and recruitment plans.
* Implementation plan - what you will do during start-up, including securing premises, recruitment, marketing.
* Financial information - predictions about how your nursery will develop financially.
* Appendices - the back-up for your financial data, any relevant press cuttings, management CVs, market size data.
* Banks, or your EYDCP business support officer, can often provide business plan formats for reference.
Funding Types of funding There are two types of funding:
* Debt (or loan capital), which you borrow from a lender such as a high street bank, and
* Equity, which means selling a share of your business to a business partner, even though it has not yet begun trading.
Most businesses usually operate with a mix of debt and equity.
Sources of funding Debt: The easiest and quickest source is through family and friends. If you know someone with enough capital, do not be afraid to discuss your proposal.
They may expect a share in the business, in which case it will become equity funding.
A bank may be able to consider a loan if you already have some capital or assets of your own, or if you have taken on an equity partner.
Even if you have no capital, it is useful to see your bank manager for advice on loan schemes available to business start-ups, such as the Government Loan Guarantee Scheme.
Grants are another source of business funding, but the sources are very few. If you are aged under 30, the Prince's Youth Business Trust is a good place to start enquiring and your local Learning and Skills Council may also offer advice on how to source low-cost or free money.
Equity: A new business is unlikely to attract venture capital, so the best source of equity finance is a 'business angel'. This may be someone with business experience and money to invest who is keen to get involved in a profitable business. They may want to work with the business on a part-time basis, bringing valuable skills with them.
Business angels listen out for potential investments through a network of contacts and, for a fee, you should be able to access that network through either the local Learning and Skills Council, Business Link, or through private agencies called financial intermediaries (fees range from around 500 upwards). You can access these organisations through your local authority, local chamber of commerce or your accountant.
Business angels who have worked in similar sectors to childcare, such as health care or hotels, may be the most easily persuaded to see the benefits of investing in a nursery, as profit margins are likely to be similar.
Pros and cons Debt:
* The lender weighs up possible return against risk. You will be expected to put up some of the capital (for example by offering a charge on your home).
* Once you have entered into a loan agreement, you must meet repayments, irrespective of whether the nursery is making a profit.
* You retain ownership of the nursery and therefore the value of the business when you come to sell it, rather than sharing this with a partner.
You will also have a greater say in decision-making.
* Debt is quicker to implement as a lender's decision is based on financial criteria, not on building up a working relationship.
Equity:
* You will only be required to pay back your funder out of profits, giving your business greater security.
* Your partner is likely to get involved in the business, which may bring new skills to the setting. If you have a mix of equity and debt, your lender may feel more comfortable with your partner's skills on board.
* You will be surrendering some of the eventual profits of the nursery business.
* You will also be giving up some control of the running of the company and will need to work with your partner for the benefit of the business.
* Having equity funds from a partner can sometimes be a help in securing further finance from other partners or lenders.
Contacts
* Abbey Business provides commercial mortgages and loans, tel: 0800 328 0210, www.abbey.com/business.
* Armada Finance provides asset funding, tel: 01392 431171.
* BDO Stoy Hayward is a financial adviser for growing businesses, 8 Baker Street, London W1U 3LL, tel: 020 7486 5888, www.bdo. co.uk.
* GR Patrick & Co (Finance), is a nursery finance specialist, tel: 020 8336 0030.
* The Royal Bank of Scotland has a financial team specialising in assisting the nursery sector, tel: 0800 521607.
Buying a nursery Whether you are buying land or a building, converting a building or erecting a modular construction, you must get planning consent from the local authority. Ofsted will not agree to registration of the nursery until provided with evidence that planning permission is in place or that it is not required.
Sales agents
Companies that specialise in the sale of nurseries and schools include:
* AH Lansley, 111 Oxford Road, Reading, Berkshire RG1 7UH, tel: 0118 959 0271.
* Christie and Co, 39 Victoria Street, London SW1H 0EU, tel: 020 7227 0700, www.christie.com.
* Redwoods Dowling Kerr, Dipford House, Queen's Square Business Park, Honley, Huddersfield HD9 6QZ, tel: 0870 750 4958, www.redwoodsdk.com.
* National School Transfer, Tilshead House, Tilshead, Salisbury, Wiltshire SP3 4RX, tel: 01980 621251, www.national schooltransfer.com.
* School Transfer Consultants, Haydon Cross, Dale Road, Southfleet, Kent DA13 9NX, tel: 01474 833150, www.school transfer.co.uk.
Independent valuers
The following independent valuers understand the childcare sector and are recognised by most institutions:
* Savills, 25 Finsbury Circus, London EC2M 7EE, tel: 020 7499 8644, www.savills.com.
* Matthews and Goodman, Dorland House, 14-16 Regent Street, London SW1Y 4PH, tel: 020 7747 8847, www.matthews-goodman.co.uk.
* Pinders, Pinders House, Milton Keynes, Bucks MK9 1DS, tel: 01908 350500, www.pinders.co.uk.
* Taylors, Court House, Mill Court, Featherstone Road, Wolverton Mill, Milton Keynes, Bucks MK12 5QS, tel: 01908 226611, www.tbsv.co.uk.
Pre-engineered building suppliers
* Adroit Modular Buildings, tel: 0800 115544, www.adroitmodular. com.
* Empyrean International designs and constructs timber-framed buildings, tel: 020 7350 2345, www.empyrean.com.
* Elliott Group, tel: 01543 404040, www.elliott-group.co.uk.
* Homelodge Buildings, tel: 01962 881480, www.homelodge.co.uk.
* Pasuda, tel: 01142 540188, www.pasuda.co.uk.
* Portakabin, tel: 01904 611655, www.portakabin.co.uk.
* Rollalong, tel: 01202 812659, www.rollalong.co.uk.
* SGB Rovacabin, tel: 01865 337200, www.sgb.co.uk.
* Servaccomm, tel: 01964 624444, www.servaccomm.co.uk.
* Speaks Building Systems, tel: 01422 353022.
* Terrapin, tel: 01908 270900, www.terrapin-ltd.co.uk.
* Tingdene Homes, tel: 01933 225157, www.tingdene.co.uk.
* Wernick Buildings, tel: 01792 321222, www.wernick.co.uk.
* Wraith Accommodation, tel: 01427 711238, www.wraith accommodation.co.uk.
Architects
Architects experienced in designing nurseries include:
* Birds Portchmouth Russum Architects, Unit 11, Union Wharf, 23 Wenlock Road, London N1 7SB, tel: 020 7253 8205, www. birdsportchmouthrussum.com.
* Cottrell & Vermeulen Architecture, 1b Iliffe Street, London SE17 3LJ, tel: 020 7708 2567, www.cv-arch.co.uk.
* Dominic Burns Associates (architects, planning supervisors and project managers), 544a Bearwood Road, Smethwick, Bearwood, West Midlands B66 4BT, tel: 0121 429 7711, www.db-assocs.co.uk.
* DSDHA, 8 Iliffe Yard, London SE17 3QA, tel: 020 7703 3555, www.dsdha.co.uk.
* Gelder and Kitchen, 113 Victoria St, St Albans, Herts AL1 3TJ, tel: 01727 840911, e-mail: psg@gelderandkitchen.co.uk
* Mark Dudek Associates, formerly Education Design, 6 Ledbury Mews, London W11 2AF, tel: 07960 703760, www. educationdesign.co.uk.
* Panter Hudspith Architects, 235 Southwark Bridge Road, London SE1 6NP, tel: 020 7407 2786, www.panterhudspith.com.
Builders
The Federation of Master Builders can recommend builders:
* Gordon Fisher House, 14-15 Great James Street, London WC1N 3DP, tel: 020 7242 7583, www.fmb.org.uk.
* Timotay Landscapes Ltd, garden design and construction specialists, 190 Hinwick Rd, Wollaston, Wellingborough, Northants, NN29 7QY, tel: 01933 665151, www.timotaylandscapes.co.uk
Legislation
Care Standards
There is one set of national care standards in England, the Care Standards Act 2000, enforced by the Early Years Directorate and run by Ofsted. The Act makes requirements such as the amount of space per child and staff ratios. There are four aspects to the regulation of daycare for children under eight:
* Registration: The registration process involves checks on you, your premises, and any people who look after children with you or live or work on the premises.
* Inspection: After you are registered, an Ofsted inspector will regularly check the quality of your provision. The inspector will write a report and send a copy to you that can be made available to parents.
* Investigation: An Ofsted childcare inspector may carry out an investigation to check that you meet the national standards and other requirements.
* Enforcement: Ofsted can take action if you do not meet national standards and other requirements.
Before you are registered you will have to demonstrate to Ofsted that:
* Every person looking after children on the premises is suitable to look after children under the age of eight.
* Every person living or working on the premises is suitable to be in regular contact with under-eights.
* The premises are suitable, having regard to their condition and the appropriateness of any equipment and to any other factor connected with the situation, construction or size of the premises.
* You comply with the National Standards, regulations and any conditions imposed by Ofsted.
You can obtain copies of the National Standards from DfES Publications, tel: 0845 6022260 or www.standards.dfes.gov.uk and Guidance to the National Standards from Ofsted, tel: 0700 2637833 or www.ofsted.gov.uk/ publications.
The Care Standards Act 2000 is available from the Stationery Office, tel: 0870 600 5522, www.hmso. gov.uk. For Scotland, contact the Care Commission, see below.
Contacts
* Care Commission, Compass House, 11 Riverside Drive, Dundee DD1 4NY, tel: 01382 207100, www.carecommission.com.
* Department for Education and Skills (DfES), Sanctuary Buildings, Great Smith Street, London SW1P 3BT, tel: 020 7925 5000, www.dfes.gov.uk.
* Management Advisory can provide advice for nurseries on policies and procedures: 5-8 Edward Centre, The Horsefair, Hinckley, Leicestershire LE10 0AN, tel: 01455 444222, www.managementadvisory.net.
* Ofsted, 90 Union Street, London SE1 0FS. Registration helpline, tel: 0845 601 4771 (calls are directed to local centres), www.ofsted.gov.uk.
Employer responsibilities
Terms of employment
* Employment Act 2002.
* Employment Protection (Consolidation) Act 1978.
* Trade Union Reform & Employment Rights Act 1993.
* Working Time Regulations 1998.
Advertising/recruitment
* Sex Discrimination Act 1975.
* Race Relations Act 1976.
* Disability Discrimination Act 1995.
* Employment Equality Regulations 2003.
* The Employment Equality (Age) Regulations 2006.
Pay
* Equal Pay Act 1970.
* National Minimum Wage 1999.
Further advice
* The Arbitration, Conciliation and Advisory Service produces various guides on employer responsibilities, tel: 0870 242 9090, www.acas.org.uk.
* www.businesslink.gov.uk, or call its helpline on 0845 600 9006.
* The Chartered Institute of Personnel and Development (tel: 020 8263 3310) has a legal advice line for members, tel: 0870 556 1251, www.cipd.co.uk.
Premises
Regulations
* Unitary Development Plan.
* The Fire Precautions Act 1971.
* Health and Safety at Work Act 1974.
* Management of Health and Safety at Work Regulations 1992.
* Health and Safety (First Aid) Regulations 1981.
* The Reporting of Injuries, Death, Diseases and Dangerous Occurrences Regulations 1981.
* The Electricity at Work Act 1989.
* The Food Safety Act 1990.
Further advice Take advice from your local planning authority, Ofsted officer, fire officer, environmental health officer and your local authority early years advisory team.
Policies
To meet the National Standards, nurseries should have in place a range of policies, including: Organisation
* An operational plan.
* Procedure for lost or uncollected children.
* Registration system for children and staff.
Behaviour
* Policy on behaviour management.
* Incident record.
Care, learning and play
* Activities provided to develop children's emotional, physical, social and intellectual capabilities.
Equal opportunities
* Equal opportunities and anti-discriminatory policy.
Food and drink
* Diet - records covering the dietary needs of individual children.
Health
* Administration of medication to children.
* Prior parental consent to administer medicines and for emergency treatment.
* Accidents and first aid.
* Health and hygiene statement.
* Sick children policy.
Safety
* Risk assessment.
* Record of visitors.
* Fire safety and emergency procedures.
* Fire safety records and certificates.
* Operational policy for nursery outings.
* Vehicle records, including a list of approved drivers and insurance.
Special needs
* Written policy on children with special needs.
Working in partnership with parents and carers
* Admissions policy.
* Complaints procedure.
* Activities provided for children.
* Contract with parents.
Child protection
* Child protection policy.
Insurance
* Country Mutual, tel: 01204 525279.
* Dot 2 Dot, Stanmore Insurance Brokers, tel: 0161 724 2900.
* Kiddicare/PoundGates, tel: 01473 216 406.
* Morton Michel, tel: 020 8768 6700.
* Northern Counties Guarantee Corporation, tel: 0191 440 8051.
* William Taylor Insurance, tel: 01708 855141.
Equipment
Make a list of the essentials, using the reminders below, and set a budget using catalogues as a guide.
For more information see Nursery World's supplement Nursery Equipment (next issue February 2006).
Checklist
* Arts and crafts materials: paint, paper, glue, brushes, safety scissors, modelling materials, craft tables, easels, overalls, drying racks for paintings.
* Book corner: books, seating, display shelving/storage.
* Construction: traditional wooden bricks, plastic blocks, Popoids and gear systems.
* Display: pinboard, display shelves, fabric calendar.
* Games and puzzles: shape sorters, play trays, jigsaws, simple board games, memory games.
* ICT: consider a computer, digital camera or roamer.
* Music: tape recorders, rainstick, drum, maracas, xylophone.
* Outdoor play: climbing frames, slides and swings, pop-up tent/den-making equipment, ride-on or push-along toys, safe surfacing.
* Role play: home corner furniture, smaller props, such as a cash till, telephones and dressing-up clothes.
* Sand and water: raised sandpit, water table, buckets, spades, boats, jugs, funnels.
* Small world: dolls and accessories, teddies and soft toys, miniature people sets, animals, building, vehicles.
* Toys for babies and toddlers: fabric books, ring stacker, push-along toys, rattles and teething rings, playmats, mobiles.
Equipment suppliers General
* Addguards, tel: 00353 128 00106.
* Asco, tel: 0113 270 7070.
* Early Learning Centre Direct, tel: 08705 352352.
* Eibe UK, tel: 01483 813834.
* Everything Early Years, tel: 0845 458 9910, www.everythingearlyyears.co.uk
* Galt, tel: 08702 424477.
* Hope, tel: 08702 414400.
* M&S Mercantile, tel: 0161 873 8181.
* NES Arnold, tel: 0870 600 0192.
* Orchard Toys, tel: 0115 937 3547.
* Philip and Tacey, tel: 01264 332171.
* Step by Step, tel: 0845 300 1089.
* TP Activity Toys, tel: 01299 827728.
* Wesco, tel: 0115 986 2126.
* The Whole Kaboodle, tel: 01773 828000.
Art and crafts
* Art2Go, tel: 01843 292333.
* Berol, tel: 01273 513233.
* The Consortium, tel: 01225 777333.
* Crayola, tel: 01234 360 201.
Children's books
* Letterbox Library specialises in positive-image multicultural books, tel: 020 7503 4801.
* Milet publishes dual-language books, tel: 020 7603 5477.
* National Literacy Trust provides information on early years reading, tel: 020 7828 2435.
Professional books
* David Fulton, tel: 020 8996 3610.
* Featherstone Education, tel: 01858 881213.
* Heinemann, tel: 01865 474000.
* Hodder, tel: 01235 400400.
* Nelson Thornes, tel: 01242 267100.
* Nursery World, tel: 0870 444 8633
* Open University Press, tel: 01628 502720.
* Paul Chapman, tel: 020 7324 8500.
* RoutledgeFalmer (Taylor & Francis), tel: 01264 343071.
Management software and book-keeping services
* BabyTech, owned by Parenta, specialises in nursery management software, tel: 0870 444 1330.
* Parenta also designs nursery websites, tel: 0870 747 9066.
* Coldharbour Systems provides financial administration systems, tel: 01275 850500.
* Connect Software, tel: 0870 850 2362, www.connectsoftware.net.
* Datamove, tel: 0116 237 5017.
* Liquid Crystal provides a complete nursery management and accounting system with comprehensive support services, tel: 01206 394236, www.lcaccountingsystems.co.uk.
* LogicCall, tel: 020 8385 7474.
* Rio Computers specialises in nursery management systems, tel: 08703 501745.
Music
* Kindescope, tel: 01623 861157.
* Music Education Supplies, tel: 020 8770 3866.
* Out of the Ark Music, tel: 01932 232250.
* Playsongs Publications, tel: 01799 599054.
Play equipment/furniture
* Active Learning, tel: 0115 960 6111.
* Community Playthings, tel: 0800 387457.
* Cost Cutters, tel: 01543 495070.
* E-Niko, tel: 01768 210121.
* Hand Made Places, tel: 01420 474111, www.handmadeplaces.co.uk
* Little Tikes Commercial, tel: 01704 833123.
* Park Leisure, tel: 0115 937 2468.
* Sherwood Industries, tel: 01623 792151.
* Sovereign Playground Equipment, tel: 01702 291129.
* Timberkids, tel: 01288 353527.
* Timberline, tel: 01246 454484.
* Wicksteed Leisure, tel: 01536 517028.
Play surfaces
* Charles Lawrence Surfaces, tel: 01636 610777.
* Happy Landings, tel: 01280 822949.
* Smith Brothers, tel: 023 9238 7198.
Role play
* Charlie Crow Costumes, tel: 01782 417133.
* J and M Toys, tel: 01274 599314.
* Let's Pretend, tel: 08705 352352.
* Multirole, tel: 01422 886589.
* Three Bears Playthings, tel: 01669 620315.
Uniforms
* Grahame Gardner, tel: 0116 255 6326.
Staff
Preparing to recruit
Using your business plan, decide how many children you will be seeking to enrol in the first months after the nursery opens.
Next, consulting the Care Standards Act 2000, decide how many people you will need to employ initially and what their qualifications should be.
Draw up the job descriptions (duties and responsibilities) and person specifications (such as qualifications and skills) and compose the advertisements.
Job ads can be placed in specialist publications, eg Nursery World, national and local press and local Jobcentre Plus offices.
Appointing a manager Appoint your manager first. Under the Care Standards Act 2000 the minimum experience is two years in a daycare setting plus a Level 3 qualification appropriate to the post. A manager needs proven managerial, communication and leadership skills.
Selecting your team
* Recruit downwards, involving senior staff in selecting junior staff so you build a cohesive team.
* Ensure no applicant is discriminated against because of physical disability, age, religion, sexual orientation, trade union, family or care commitments.
* Ask applicants the same questions to make comparison easy and to demonstrate equal treatment.
* Limit the interview panel to, at most, three people to avoid intimidating applicants.
* Use the job description to determine essential requirements. Use a score sheet so that you can compare candidates' answers.
* Invite candidates to the nursery to see how they interact with children and staff.
Recruitment agencies include:
* Beresford Blake Thomas, tel: 0870 600 0892.
* Capita, tel: 0800 731 6873.
* CG Recruitment, tel: 01344 761901.
* Firstpoint Healthcare, tel: 08457 23 24 25.
* Marylebone, tel: 020 7727 2743.
* Pertemps Solutions,tel: 020 8690 9010.
* Protocol Teachers, tel: 020 7440 8445.
* TimePlan, tel: 0800 358 8040.
* Tinies Childcare, tel: 020 7384 4971.
Curriculum
* Learning and Teaching Scotland, tel: 08700 100 297, www.ltscotland.org.uk.
* Qualifications and Curriculum Authority, tel: 020 7509 5556, www.qca.org.uk.
* The Scottish Qualifications Authority, tel: 0141 242 2214, www.sqa.org.uk.
* Qualification Curriculum and Assessment Authority for Wales, tel: 029 2037 5400, www.accac.org.uk
Inclusion in this directory does not necessarily imply recommendation.
CASE STUDY MARKET RESEARCH
When former infant teacher Mariessa Devlin moved to Erskine she soon realised she might be able to achieve her dream of opening her own nursery.
The Enchanted Forest opened in rented premises in the grounds of a local hospital in June
'When my husband Bernie and I moved to Erskine in 2003 it was evident very quickly that there were no private providers in the area and there was a gap in the market.
'We talked to the local authority to ascertain the local under-fives population and also to get information on the numbers of children placed locally in community nurseries and childminders. That confirmed there was agap in the market. In two small villages nearby there are day nurseries with extensive waiting lists.
'We started looking for premises. I gather this is where other people who had looked into opening nurseries in Erskine had given up. It was almost impossible.
'Bernie's mother works at the local hospital and suggested we contact them.
They had this disused building, which had been a day centre for Alzheimer's patients. My initial impression was that it was fantastic, and in a wonderful location surrounded by beautiful grounds.
'We sent questionnaires about childcare to the major employers in the area for their staff. We didn't expect to get many back but the response rate was 80 per cent.
'The childcare team at the council has supported us and been helpful, but it was tough getting planning permission because they said it was a green belt site. We wrote to councillors, MPs and MSPS and went to the director of planning and got the permission.
'From the outset we got the Care Commission and the fire department involved and explained what we wanted to do so they could advise us. We had a nightmare with the builders and learned a few hard lessons on the way.
'We had an open day which was very busy. We had Susie Sweet from 'Balamory', and although booking her was the most expensive part of the day, lots of people came because she was here.
'The numbers are building up. We are finding the local supermarket is a good place to advertise. I change the posters every month to keep them looking fresh.
'The biggest thing working in our favour already is word of mouth. We put posters up with the major employers and advertise in the local press and I am trying to generate articles in the local papers.
'A recent article in the Glasgow Evening Times on recruitment focused on our staff who said what a nice, enthusiastic place to work the nursery was.'
CASE STUDY - PREMISES
When the Sussex-based chain Early Years Childcare was looking to expand to the thriving town of Haywards Heath, they found a unique property to convert: the Grade 2-listed chapel at St Francis Hospital, a Victorian lunatic asylum 'The hospital closed in 1995 and was developed into a luxury housing complex,' says Alice Vine, the nursery manager. 'The chapel stayed empty until we bought it in 2004.
'As it is a Grade 2-listed building, our plans had to be approved by the council's conservation team. I'm thrilled with the results. We've achieved a balance of old and new with all the original features but incorporating modern design.
'The planners suggested having glass internal walls to retain the original views across the building, and so appreciate its architectural features, but we thought it could be a bit like a zoo. So, while we have a glass corridor down the centre of the chapel, there are solid walls between the rooms.
'We obviously used safety glass and to give some privacy, we have etched it. We ran an art competition through our nine other nurseries to choose drawings that were etched on to the glass at child height.
'There are stained glass windows, so to make the building light, we have put in spotlights on the beams and some strip lighting. We have also had to put in blinds and curtains so the rooms can be dimmed for nap time.
'We like our children to be in small, homely groups so we put in a mezzanine floor to create two levels. Upstairs is designed for older children with three family rooms for two- to five-year-olds, plus children's toilets and a staff room.
'The stone angels and gargoyles at the tops of the pillars are now at child height, which the children find fascinating. The children can see across the building, there are nooks to explore, and they can take a peak from upstairs into the baby room or my office.
'Downstairs are two toddler rooms with an adjoining changing area, the fourth family room and my office. A self-contained baby unit with cot room and milk kitchen has been incorporated into the curved apse. Where the altar was is now the nursery kitchen and utility rooms.
'The baby room has a double height ceiling to the top of the building so we are monitoring the noise. We have installed under-floor heating and have fans in the ceilings which force the warm air back down again.
'The building work and decoration took 40 weeks. We then set the nursery up in just a week ready for opening on 22 July, almost 147 years to the day since the chapel originally opened. The chapel cost 625,000 to buy, 880,000 to convert and a further 100,000 to equip.'
CASE STUDY - FRANCHISE
The struggle to find a nursery for his daughter encouraged engineer Mark Bates to diversify into childcare and he now has two nurseries based in Leamington Spa and franchised through Monkey Puzzle, whose head office is in Hemel Hempstead.
'We have a family engineering business and, engineering being in the state it is, we were looking to diversify and whenever I sat down and thought about it, I kept coming back to childcare.
'I started my market research two years ago by ringing round everywhere within a ten-mile radius saying I wanted places for two children. The good nurseries were so full they didn't want to know.
'We did not know enough about the business to set up on our own. It is a minefield with Ofsted and the legal aspects. In engineering you can make a mistake and have a chance to put it right - not in childcare.
'We decided to franchise and went to Monkey Puzzle and were very impressed by what they have achieved and the standards they set.
'They guided us through the process from acquiring the property, sorting out the change of use for planning and coming with me for the interview to be classed as the suitable person to operate the nurseries.
'We are independent, but have the back-up of Monkey Puzzle. They are not going to say, "You've got to paint the rooms this or that colour," but if they see you doing something untoward they will step in and guide you how to do it right. They are only a telephone call away. They give you their policies and procedures, which I don't think could be bettered.
'We were going for the building we are now renting for our 128-place nursery and heard that a little nursery, Rainbow's End, was coming up for sale in the town. It was full and turning babies away. We put it to the bank, "Is it a stupid idea to buy this?" They said no because they felt that the one could feed into the other.
'We bought it and are now re-branding it under the Monkey Puzzle franchise.
The great thing is that if for some reason the manager and her deputy did not turn up one day, I could just call Monkey Puzzle and they would send up a manager and deputy to cover.
'You pay to be part of the franchise but it is money well spent and I am only tied in for five years.'
CASE STUDY - TAKING OVER AN EXISTING SETTING
Faced with the prospect of her son Jack's nursery closing, Rebecca Warner decided to buy an Oxford nursery, change its name to Little Troopers and make the transition from parent to proprietor, just eight weeks after her daughter Stella was born 'Jack had been at the nursery for two years when we heard it was closing as the proprietor had been head-hunted to open a nursery across town.
'We decided to buy it. All but one of the staff left to join the new nursery. I appointed Faye O'Connor as manager. She had worked here for years, but was on a break away from the nursery. We managed to get her back and the children are thrilled to see her again.
'I am a facilities manager in London for a business consultancy, looking after all the support functions and have experience of business planning, budgeting, and management.
'Faye and I work very well together but it would be much harder if I didn't have my business background. When we are discussing something I can give her a parent's point of view and she knows the Ofsted view.
'As a parent, I actually did not have a huge amount to do with the nursery, as it was either my husband or my mother who collected my son, so a lot of the parents didn't know who I was.
'I had a lot of support from the parents once they knew the nursery was being saved. People offered to deliver leaflets or help paint the rooms.
Sometimes parents mention how things used to be done and I explain this is a new business. We sent out new terms and conditions.
'I think a lot would have liked the nursery to be repainted straight away.
But we felt that could do more harm than good because the children will find getting to know the new staff quite a challenge without the rooms changing too.
'We sent a letter to the parents asking what sessions they wanted and also if there was anything they would like done differently. Most said the food.
It used to be sausages, fish fingers and chips.
'The children now get crudites to start with at lunchtime and we have lots of fresh fruit, and the cooked meals are predominantly vegetarian. We can experiment with things like sweet potatoes.
'We are getting an allotment so the children can learn about growing their food. Our children come from a range of different cultural backgrounds and we want to share the different foods with all the children.'
CASE STUDY - OUTDOOR AREA
Mark McArdle, managing director of Kids 1st Day Nurseries, has given top priority to the outdoor area in its fifth nursery which opened last month in Hexham 'The site is half an acre and the grounds cover about a quarter of an acre.
We have made a big feature of the outside area and have created a fabulous garden for the children to enjoy.
'We deliberately did not level the grounds but used the natural contours to make it interesting for the children so that they have a grassy bank they can roll down or play hide and seek around.
'I am a big believer in encouraging the children to be outdoors and, within reason, in all weathers. We have some areas with canopies so even if it is raining, the children can be in the fresh air but in the dry.
'We believe in using natural materials, being environmentally friendly and giving children a natural environment in which to explore and have adventures.
'We have this big storytelling chair which is carved out of an old tree and around it are big logs for the children to sit on.
The idea is that the staff can sit on the chair and the children will gather around, but we know some older children will also want to take their turn and sit in the storytelling chair to tell stories there.
'There are three main areas: a special area for the tiny tots, an area with the traditional climbing frames and trike trail. Then there are the special features of the garden such as the summer meadow. It is surrounded by a little picket fence and is designed as a special place where the children can go - maybe for picnics.
'We also put in an adventure trail. When it is mature, the children will be able to walk along it on a path through tall bamboo to a minibeast area.
'We also made it attractive for the parents. It can be quite traumatic for parents when they first start leaving a child and particularly if they are driving up to a nursery on a bleak, dark morning at 7am.
'The building is purpose-built with cedar cladding which gives off a lovely fragrance. The path meanders up and is well lit as is the glass porch so it shines out at parents as they approach.'