To buy or to start afresh

To buy or to start afresh

by: mari - 04-04-08 14:32

Hello,

 I would like to get some advice weather to start a nursary or to buy a existing one. What are the pros and cons in each case.

 Thanks

Mari

by: Annie

 There arepros and cons for both. An up and running nursery with potential but badly run could be one to build up but would take time to win over customers and get over its previous reputation. Also staff may be resentful of change.

An up and running nursery with a good track record /reputation will cost you more but will (hopefully) have staff who know what they are doing, systems that work and of course CUSTOMERS.

Starting from new can be expensive and you will have to employ, create a new working team, provide all admin systems, jump through local authority hoops etc - more trouble , set standards and prove yourself but you can set up in an area that would lend itself well to a nursery, design into the building what you want, plan out any building problems etc.

At the end of the day it's about keeping your options open and seeing what is available. Not all houses convert well and even new build don't always turn out like you thought ( I once worked in a purpose built nursery that was a logistical nightmare). But whatever you choose, love it and be proud of it and it will show!

by: Maestro

If you buy an existing nursery many parents will be there because of how it presently run. If they decided the new owners will do things different they may leave. It is very hard to sell/buy and value a nursery business as the owners form part of the business and its very customer orientated rather than product orientated. i.e. your providing a service, not a product, and the service provided is linked directly to the owners and staff. When the owners sell they essentially take there service with them, which is why its hard to value, what % of reputation are you able to keep when buying a nursery? and how much are you willing to pay? Will you get what you pay for?

If you buy a nursery already running you need to find out what percentage they are adding as good will etc... If I was to buy a nursery I woud base my offer on the business potential rather than whats already there. If the nursery is turning over 250k a year then you know it has the potential to make 250k (gross) or more (depending on capacity etc...). If you then decide/work out that the business is worth £300k to buy but the owners want £380k you are paying 80k for good will! (The figures are all made up but you should get the basic understanding)

You cant price goodwill. There are other advantages and disadvantages as well. Also it will depend on your experience and expertise.

Many people hate change! They get scared, run a mile, moan, winge and argue to mention a few possiblilties. Depending on the staff if they are set in routines which they find comfortable, good luck breaking them out of it without a fight! No one will run a nursery the same way, it will vary in even the slightest detail and slight changes will kick start everything off. If you look at the EYFS plenty of people moaning there!

IMO If you know what you're doing and have the money then start a fresh!!

by: Lippy

I have also been wondering which is a better option and agree that one cannot put a value on goodwill. My gut feeling is that starting your own is the best solution!!

Having said that, this is still just an idea on my head, I have absolutely no idea of the nursery-child care industry, other than dropping my children at nurseries now for over 5 years and still continuing to do it.

I have looked at various sets of information on how to set one up but there is so much information out there I dont know where to start. I am even willing to go for a course to understand the basic requirements. Can anyone therefore tell me where to go, I can't follow all the information on the internet as I can't tell which comes first.

Help please!!!

by: Maestro

You are better off ringing the local council for your area and asking to speak to an Early Years Development Officer.