Expert help
It pays to take professional help and read widely before you start up a nursery.
Consultancies
* Sandra Brouet, a childcare development consultant, runs Childcare Plus, Unit 11, First Floor West, Universal House, 88-94 Wentworth Street, London E1 7SA, tel: 020 7247 6338, info@startingupchildcare.co.uk,www.startingupchildcare.co.uk.
* Busy Bees, as well as owning a network 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: 01543 416616.
* 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.
* Trio Childcare Connections can help with getting a nursery started, Ofsted problems etc: Newburn Centre, Newburn Crescent, Swindon SN1 5ES, tel: 01793 514422.
Childcare and professional organisations
* Kids' Clubs Network, Bellerive House, 3 Muirfield Crescent, London E14 9SZ, tel: 020 7512 2112, www.kidsclubs.co.uk.
* National Day Nurseries Association, Oak House, Woodvale Road, Huddersfield HD6 4AB, tel: 0870 774 4244, www.ndna.org.uk.
* National Early Years Network, 77 Holloway Road, London N7 8JN, tel: 020 7607 9573.
* 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, Unit 3, West Building, Rosemount Workspace, 141-147 Charles Street, Glasgow G21 2QA, tel: 0141 553 1099.
Publications
* Nursery World, priced 1.20 a week, includes news, regular management features and curriculum guidance (subscription hotline, tel: 01454 642480).
* Starting a Nursery - A practical guide for early years professionals by Martin Pace (Nursery World, 8.99, tel: 01454 617370).
* Starting a Day Nursery resource pack (National Day Nurseries Association, 15, tel: 0870 774 4244).
* Starting a Pre-school free information pack (Pre-school Learning Alliance, tel: 020 7833 0991).
* Setting up a Nursery - A step-by-step guide (2002 edition) by Sue Finch and the Network team (National Early Years Network, 7 to members, Pounds 9.50 to non-members (including p&p), tel: 020 7607 9573).
* Starting and Running a Nursery - the business of early years care by Helen Jameson and Madeline Watson (Nelson Thornes, 17.50, tel: 01242 267268).
* Building for Young Children by Mark Dudek (National Early Years Network, 10, tel: 020 7607 9573).
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) is a good source of information.
* Contact major employers to establish whether they have a need to provide childcare for their employees.
* Prepare a questionnaire and conduct a survey of what age children people have, where they live and what childcare they use. This helps gauge demand and publicise your nursery.
* Research your local competition to establish whether the nurseries are full and what childcare 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 etc.
* Management team - outline staff you have 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 can often provide you with 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 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 funding, but the sources are few. If you are under 30, the Prince's Youth Business Trust is a good place to start and your local Training & Enterprise 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 Skills Council, Business Link, or through a number of private agencies called financial intermediaries (fees range from around Pounds 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 a profit is being made.
* 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. 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 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
* 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.
* First National Commercial Banking provides funding for acquisition, refinance or business expansion, tel: 020 8909 4529.
* GR Patrick & Co (Finance), is a nursery finance specialist, tel: 020 8336 0030.
* The Royal Bank of Scotland has a team specialising in the nursery sector, tel: 020 7615 7072.
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 until it has evidence that planning permission is in place or that planning permission is not required.
Sales agents
Companies specialising 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 534 151, www.school transfer.co.uk.
Independent valuers
The following understand the childcare sector and are recognised by most institutions:
* FPD Savills, 20 Grosvenor Hill, London W1K 3HQ, 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.
Modular building suppliers
* Elliott Group, tel: 01543 404040 www.elliott-group.co.uk.
* Globalmobile, tel: 01892 722733.
* Homelodge Buildings, tel: 01962 881480, www.homelodge.co.uk.
* Portakabin, tel: 01904 611655, www.portakabin.co.uk.
* Rovacabin, tel: 01869 345858, www.sgb.co.uk.
* Securaccom, tel: 01285 850011, www.securaccom.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 Group, 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, 8 New North Place, London EC2A 4JA, tel: 020 7613 1777, www.birdsportchmouth Russum.com.
* Cottrell & Vermeulen Architecture, 1b Iliffe Street, London SE17 3LJ, tel: 020 7708 2567, www.cottrelland vermeulen.co.uk.
* Dominic Burns Associates (architects, planning supervisors and project managers), 544a Bearwood Road, Bearwood, West Midlands B66 4BT, tel: 0121 429 7711.
* 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.
* Russell Clayton Panter Hudspith Architects, 235 Southwark Park Road, London SE1 6NP, tel: 020 7407 2786.
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 now one set of national care standards, the Care Standards Act 2000, that 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 registration an Ofsted childcare inspector will check the quality of your daycare provision every year. The inspector will write a report and send a copy to you so that you can make it available to parents.
* Investigation: an Ofsted inspector may carry out an investigation to check that you meet the National Standards.
* Enforcement: Ofsted can take action if you do not meet national standards and other requirements.
Before you are registered you 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 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 and Guidance to the National Standards from your local authority, or from DfES Publications, tel: 0845 6022260 or www.dfes.gov.uk/daycare.
The Care Standards Act 2000 is available from the Stationery Office, tel: 020 7873 9090, www.hmso. gov.uk.
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, Smith Street, London SW1P 3BT, tel: 020 7925 5000, www.dfes. gov.uk.
* Management Advisory can provide advice for nurseries on policies and procedures: 6-28 Edward Centre, The Horsefair, Kinckley, Leicestershire LE10 0AN, tel: 01455 444222, www.managementadvisory.net.
* Ofsted, Alexandra House, 33 Kingsway, London WC2B 6SE. Registration helpline, tel: 0845 601 4771 (your call will be directed to your local regional centre), www. ofsted.gov.uk.
* POPITS can offer assistance with nursery Ofsted procedures and standards: 25 Rockington Way, Crowborough, East Sussex TM6 2NJ, tel: 01892 664526.
Employers' responsibilities Terms of employment
* 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.
Pay
* Equal Pay Act 1970.
* National Minimum Wage 1999.
Further advice
* www.businesslink.org, or phone its helpline on 0845 600 9006.
* The Arbitration, Conciliation and Advisory Service produces guides on employer responsibilities, tel: 01455 852225, www.acas.org.uk.
* The Institute of Personnel and Development has a legal advice line for members, tel: 020 8263 3310.
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 and emergency procedures.
* Fire safety records and certificates.
* Operational procedures for outings.
* Vehicle records including insurance and 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 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
* GR Patrick Finance, tel: 020 8336 0030.
* Kiddicare/Pound & Gates, tel: 01473 233733.
* Morton Michel, tel: 020 8768 6700.
* Spencer Meakin & Newbroad, tel: 01204 525279.
* Sweet William Nursery Insurance, tel: 01708 855141.
Equipment
It's advisable to make a list of the essentials you will need, using the reminders below, and set a budget - you'll need at least 10,000 to Pounds 15,000 for a 40-place nursery.
For more information see Nursery World's supplement Nursery Equipment, which is published three times a year.
Checklist
* Arts and crafts: paint, paper, pens, glue, safety scissors. n Modelling materials: craft tables, easels, overalls, drying racks for paintings.
* Book corner: books, seating, display shelving/storage.n 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.
* Music: tape recorders, rainstick, drum, maracas, xylophone.
* Outdoor play: climbing frames 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, pans, telephones, food; 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, babygym and playmats, mobiles.
Equipment suppliers General
* Asco, tel: 0113 2707070.
* Addguards, tel: 00353 128 00106.
* Early Learning Centre Direct, tel: 08705 352352.
* Eibe UK, tel: 01483 813834.
* Galt, tel: 08702 424477.
* Heron, tel: 0800 373249.
* 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: 01376 503590.
Art and crafts
* Art2Go, tel: 01843 292333.
* Berol, tel: 01553 761221.
* Crayola, tel: 01234 360 201.
* The Consortium, tel: 01225 777333.
Children's books
* Walker Books runs a book scheme for nurseries entitling members to exclusive offers and discounts, tel: 020 7793 0909.
* National Literacy Trust provides information on early years reading, tel: 020 7828 243.
* Letterbox Library is a book club specialising in non-sexist, positive image multicultural books for children, tel: 020 7503 4801.
* Milet publishes dual-language books, tel: 020 7603 5477.
Professional books
* David Fulton, tel: 020 7405 5606.
* Heinemann, tel: 01865 888080.
* Hodder, tel: 020 7873 6000.
* Nelson Thornes, tel: 01242 267100.
* Open University Press, tel: 01280 823388.
* Paul Chapman, tel: 020 7330 1234.
Management software
* Coldharbour Systems provides financial administration systems, tel: 01275 850500.
* Rio Computers specialise in nursery management systems, tel: 0116 272 0742.
* Parenta designs nursery websites, tel: 0870 747 9066.
* TurnTide Software designs nursery administration software, tel: 01474 816496.
Music
* Kindescope, tel: 01623 861157.
* Music Education Supplies, tel: 020 8770 3866.
* Out of the Ark Music, tel: 01932 232250.
Play equipment/furniture
* Active Learning, tel: 0115 960 6111.
* Community Playthings, tel: 0800 387 457.
* Little Tikes, tel: 01704 833123.
* Park Leisure, tel: 0115 937 4441.
* Plants Furniture for Education, tel: 01663 732100.
* Sherwood Industries, tel: 01623 792151.
* Sovereign Playground Equipment, tel: 01702 291129.
* Wicksteed Leisure, tel: 01536 517028.
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 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 Standard 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 advertisements.
Job advertisements can be placed in specialist publications, eg Nursery World, national and local press, local Jobcentres and circulated around local groups.
Appointing a manager
Appoint your manager first. Under the Childcare 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 your manager and senior staff to help select staff so that you build a cohesive team.
* Pay attention to equal opportunities - treat every candidate equally without regard to gender, race, colour, 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 are objective and can demonstrate 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 and desirable attributes you seek. Some interviewers keep a score sheet, ticking off each applicant's possession of essential and desirable attributes so they can compare candidates.
* Invite candidates to spend time in the nursery to see how they interact with the children and other staff members.
* Trust your judgment.
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.
Curriculum
* Learning and Teaching Scotland, 74 Victoria Crescent Road, Glasgow G12 9JN, 08700 100 297, www.ltscotland.com.
* Qualifications and Curriculum Authority, 83 Piccadilly, London W1J 8QA, tel: 020 7509 5556.
* Scottish Qualifications Authority, Hanover House, 24 Douglas Street, Glasgow G2 7NQ, tel: 0141 242 2214, www.sqa.org.uk.
Books
* Managing Your Curriculum by Ruth Andreski and Sarah Nicholls (Nursery World, 8.99, tel: 01454 617370).
Inclusion in this directory does not necessarily imply recommendation.
Childcare development consultant Sandra Brouet was editorial advisor on this directory.
