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, Litchfield, Staffs WS13 6RN, tel: 0870 380 6614.
* The Children's House consultancy can advise on all aspects of starting and running a nursery: Station Road, Stallingborough, north-east Lincolnshire DN41 8AJ, 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 advisor on all aspects of the early years environment: 4 Westbourne Grove Mews, London W11 2RU, tel: 020 7792 1984, www. educationdesign.co.uk.
* POPITS can provide assistance with Ofsted nursery procedures and professional standards: 25 Rockington Way, Crowborough, East Sussex TM6 2NJ, tel: 01892 664526.
* Trio Childcare Connections can help with getting a nursery started, 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.
* 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 Kings 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 resource pack (National Day Nurseries Association, 15, 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, 18, tel: 01242 267268).
* Building for Young Children by Mark Dudek (Education Design, 10, tel: 020 7792 1984).
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.
* Your local Early Years Development and Childcare Partnership (EYDCP)/Children's Information Service (CIS) are a good source 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 960 296, 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 a number of 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 healthcare 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 3280210, www.anbusiness.com.
* Armada Finance provides asset funding, tel: 01392 431171.
* BDO Stoy Hayward is a financial advisor 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 acquire 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, 50 Victoria Street, London SW1H 0NW, tel: 020 7227 0700, www.christie.com.
* Dowling Kerr, 98 Huddersfield Road, Holmfirth, West Yorkshire HD9 3AX, tel: 01484 681314, www.dk-business.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:
* FPD Savills, 25 Finsbury Circus, London EC2M 7EE, tel: 020 7499 8644, www.fpdsavills.co.uk.
* 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.
* Deckhouse UK designs and constructs timber-framed buildings, tel: 020 7350 2345, www. deckhouse.com.
* Elliott Group, tel: 01543 404040, www.elliott-group.co.uk.
* Globalmobile, tel: 01892 722733.
* 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.
* Rovacabin, tel: 01865 337200, www.sgb.co.uk.
* Securaccom, tel: 01285 850011, www.securaccom.co.uk.
* Servaccomm, tel: 01964 624444, www.servaccomm.co.uk.
* Speaks Building Systems, tel: 01422 353022.
* SureSteps, tel: 01643 841643, www.sure-steps.co.uk.
* 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. CottrellandVermeulen. 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.
* Education Design, 4 Westbourne Grove Mews, London W11 2RU, tel: 020 7792 1984, 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.
Legislation
Care Standards
There is one set of national care standards in England, the Care Standards Act 2000, which are enforced by the Early Years Directorate, run by Ofsted.
The Act makes requirements such as space per child, staff ratios and administration.
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 childcare inspector will regularly check the quality of your daycare provision. The inspector will write a report and send a copy to you so that you can make it 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 children under the age of eight.
* 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.
* POPITS can offer assistance with Ofsted nursery procedures and standards, tel: 01892 664526.
Employers' 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.
Pay
* Equal Pay Act 1970.
* National Minimum Wage 1999.
Further advice
* The Arbitration, Conciliation and Advisory Service produces guides on employer responsibilities, tel: 0870 242 9090, www.acas.org.uk.
* www.businesslink.org, or phone 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 EYDCP.
Policies To meet the National Standards these should include: Organisation
* An operational plan.
* Procedure for lost or uncollected children.
* Registration system for children and staff.
Care, learning and play
* Children's activities to develop emotional, physical, social and intellectual capabilities.
Safety
* Risk assessment.
* Record of visitors.
* Fire safety and emergency procedures.
* Fire safety records and certificates.
* Operational policy for nursery outings.
* Vehicle records including insurance and a list of approved drivers.
Health
* Administration of medication.
* Prior parental consent to administer medicines and for emergency treatment.
* Accidents and first aid.
* Health and hygiene statement.
* Sick children policy.
Food and drink
* Diet - records for individual children's dietary needs.
Equal opportunities
* Equal opportunities and anti-discriminatory policy.
Special needs
* Written policy on children with special needs.
Behaviour
* Policy on behaviour management.
* Incident record.
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.
* Sweet William Nursery 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 5 May 2005).
Checklist
* Arts and crafts: 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, 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 2707070.
* Early Learning Centre Direct, tel: 08705 352352.
* Eibe UK, tel: 01483 813834.
* Galt, tel: 08702 424477.
* Hope, tel: 08702 414400.
* M&S Mercantile, tel: 0161 236 4616.
* NES Arnold, tel: 0870 6000 192.
* 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 9862126.
* The Whole Kaboodle, tel: 01773 828000.
Art and crafts
* Art2Go, tel: 01843 292333.
* Berol, tel: 01553 761221.
* 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.
* Walker Books, tel: 020 7793 0909.
Professional books
* David Fulton, tel: 020 8996 3610.
* Featherstone Books, tel: 01858 881213.
* Heinemann, tel: 01865 474000.
* Hodder, tel: 0235 400400.
* Nelson Thornes, tel: 01242 267100.
* Open University Press, tel: 01280 823388.
* Paul Chapman, tel: 020 7330 1234.
* RoutledgeFalmer (Taylor & Francis), tel: 01264 343071.
Management software
* BabyTech, owned by Parenta, specialises in nursery management software, tel: 0870 444 1330.
* Coldharbour Systems provides financial administration systems, tel: 01275 850500.
* Datamove, tel: 01162 375017.
* LogicCall, tel: 020 8385 7474.
* Parenta designs nursery websites, tel: 0870 747 9066.
* Rio Computers specialises in nursery management systems, tel: 0116 272 0742.
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 387 457.
* Cost Cutters, tel: 0121 2447070.
* E-Niko, tel: 01768 210121.
* Little Tikes Commercial, tel: 01704 833123.
* Park Leisure, tel: 0115 937 4441.
* 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: 02890 438428.
* 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 seek to enrol in the first months of the nursery's life.
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 job descriptions (duties and responsibilities to be undertaken) and person specifications (characteristics such as qualifications, experience and skills) and compose the job ads.
Job advertisements can be placed in the sector's specialist publications, eg Nursery World, national and local press and local Jobcentre Plus.
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, allowing senior staff to help you select junior staff so you build a cohesive team.
* Pay attention to equal opportunities - treat candidates equally without regard to gender, race, national or ethnic origin or marital status. You must 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 so that when you compare candidates you can show that you treated everyone equally.
* Limit the interview panel to, at the most, three people to avoid intimidating applicants.
* Use the job description to determine the essential requirements. Some interviewers keep a score sheet, ticking off each applicant's attributes so that they can compare candidates.
* Invite candidates into the nursery to see how they interact with children and staff members.
Recruitment agencies include:
* Beresford Blake Thomas, tel: 0870 6000 892.
* Capita, tel: 0800 731 6873.
* CG Recruitment, tel: 01344 761 901.
* 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 3588040.
* Tinies Childcare, tel: 020 7384 4971.
Curriculum
* Learning and Teaching Scotland, 74 Victoria Crescent Road, Glasgow G12 9JN, tel: 08700 100 297, www.ltscotland. org.uk.
* Qualifications and Curriculum Authority, 83 Piccadilly, London, W1J 8QA, 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.