To buy a nursery?

[raininginspringtime]

There's one for sale. I could (just) afford it.

Here are the problems:

I have an educational background although not in early years.
I haven't ever owned a business before.
It would take ALL my money!

Here are some solutions such as they are:

I own my apartment outright (lucky I know)
Do I need to be physically present at all times? I was wondering about possibly doing a day or two of supply teaching while things get set up.

I can't think of any other relevant info but I'm sure there is some.

On the news today a nursery owner was saying that the new living wage was going to cost her £38k more in wages each year. Something else to bare in mind.

I work 40+ hours a week to continue to go on courses and training required to ensure that I stay ontop of the new rules and regulations there is literally no way to do that and work part time.

I barely make any profit these days and when the funding changes to 30 hours along with the introduction of the living wage ontop of the workplace pension scheme it's a lot and means my business may not survive despite being at 98% capacity with a waiting list for next year already.
The insurance went up this year as well as taxes and I have to routinely replace toys and send staff on training courses that cost hundreds of pounds as requirements of post as well as ensuring the new legislation they throw at me every few months is adhered to which costs more money.

It was just a question, chicken, obviously I want to minimise debt so I wondered if a bit of work 'on the side' would be possible! Just asking!

It's definitely something to look into. I am just very unhappy in current job and I want my life to change. It's daunting and I have a LOT of work to do not least in terms of getting my own property ready to sell but it's a beacon of light so to speak.

raining I appreciate this is part of your research stage The businesses I work with that actually move beyond a plan and become successful businesses have a clear criteria before they identify a base iyswim.

If you want a nursery business then work out the best area for accessibility, costs and demand; the best type of property for facilities, maintenance, etc. The training you will need - business training would be a good idea as well as the relevant early years' training.

Take a step back and start from the idea of a nursery business rather than that specific nursery business iyswim.

There are always lots of businesses for sale. This one has caught your eye but it doesn't mean it's the best one for you or that it's even viable.

And as a small business owner I'd also second what dont says about the living wage and the pension scheme. Not only do they impact on your financial projections but they add another layer of paperwork and administration that either eats into your time or means you need to employ someone else to manage that side for you.

Oh I was in Cheshire visiting friends a couple of weekends ago and a nursery they used and withdrew their child from is for sale. I wonder if it's the same one. But Cheshires a big place. We used to live there too. This one was highly rated by O but lots of issues including unhappy staff. Not sure if it's closed or just for sale though. Friend is golden triangle area (trying to be vague)

Probably a completely different nursery or different part of Cheshire but check if any complaints registered with O and what their findings were if they investigated. Sounds like a lot of hard work though with all the legislation and requirements these days.

I would sorry APlace - I meant that as a hypothethical starting point but I appreciate that was not clear! I just (having never owned a business before!) didn't know how much they were likely to cost and they range from 'yeah right, in my wildest dreams' to 'actually I could.'

(Golden triangle? :))

I will be poring over some details for business and working out some form of muddled plan. This will be hard as I haven't got a business head but I like to think I have common sense so we shall see!

Although depending on whereabouts in Cheshire you are, you can charge quite a bit more. We were paying £75 a day per child up there almost 5yrs ago. We moved down to the south coast and paid £45 a day for a similar nursery. That's quite a difference.

Was that confirmation or asking me what it is?
If confirmation then I hope it's not the same one. I've just texted friend to ask if that one closed or just for sale but no answer yet.

Nurseries near me charge around £650 for a full time place. I suppose as with all things it's supply and demand.

You say your a teacher so your aware of prevent and the British values and how you need to promote it right ? But as an owner your responsible for ensuring that all your staff do as well as ensuring their suitability because just passing a dbs check is not enough any more you have to ensure they don't live with anyone who is disbarred, come into contact with anyone with a conviction and that they have disclosed all their medical info to you and what medicine they are taking before you then have to research it to ensure that medicine does not effect their work or their suitability.
You also need to ensure that you regularly report any items related to the new prevent duty in the correct way and if you don't you could be convicted and that is just one of the lastest things on a laundry list of things you need to do.

If for some reason you think childcare is the way for you for whatever reason may I recommend childminding to see how it feels for you ? You'll get to know some of the paper work and now it works without the staff costs and you will have lower over heads and if in a year it's for you and you can handle double the paperwork and more costs then try it then

Mini sorry I don't know what it is!

People have some very good advice here. Nothing is easy and after closer investigation you might decide against it - but you will have learnt something.

Many of these businesses have been regulated to the point of non-viability though dontdoitchicken has some very good points. There may be ways to offer "added value" which might not increase costs too much but which are profitable.

Have fun looking into it and if it not this business - another one!!

Unfortunately childminding isn't hugely practical right now due to where I live. Of course I could move but then I'd still be spending the same as on a nursery but without the profit although conceded without the admin too.

There's a lot to look into definitely :)

You can download business plan templates from the web. Remember to do a detailed financial breakdown for the first 12 months. Then whatever you think it will cost have a safety net of between 5% - 10% more. There are always hidden snags and costs

Since you're just starting to explore the idea, you might find a business networking group helpful, either a local one, or something like the Business Bakery. The latter is an online group that runs a 100 day goal project. People often take the 100 days to research and/or launch new businesses.

Sorry, Hale/Bowdon across to Alderley Edge and down to Knutsford.

Everyone I know (close family members & good friends) are all unhappy in their careers in early years education. The paperwork linked to funding and ofsted is over the top and unnecessary taking away from actually caring for the children. The whole system is over complicated and causes a huge amount stress to the owners of the nurseries and pre-schools. Also sadly stress is also caused by unpleasant parents and the ability for parents to act vindictively and make fake complaints about individuals which is extremely upsetting and will affect you personally. This has happened in more than one nursery that I know of locally and the accusations were proved false in all incidences. Finally many nursery providers have been reporting problems financially with the new living wage and with the further increases to come. The wage raise has not been matched with a raise in the amount that the providers can claim for the free funding that most parents to pay for their childcare. So providers have a big difference they are struggling to match.

I would not move in to this area of employment if you don't have too.

My boys did 4 days so that was 2 lots of £300 so £600 a week. I am also a teacher and was obviously working .8 but it wasn't sustainable for us as nursery fees cost more that I was taking home so I had a period of sah until we moved.

Early Years is pretty tough at the moment, I know many nursery owners making a loss, with the increase in minimum wage, new pension rules, changes to SSP and increasing bills it is hard to keep afloat, especially if you want to offer any of the funded hours. There will be a lot of nurseries up for sale over the next year or two so if you really want to do it then you can wait and take your pick.

This video about some of the pressures is a good one to watch before you jump in.

You've been incredibly helpful APlace - thank you! Very useful advice.

What don'tdoit said, especially point 7.

Also what chilly said.

Unpaid bills are also a big problem where I work. We've had parents laugh in our faces, they know the costs of pursuing them are too high.

Sorry, I know you want to hear the opposite.

Thanks too OddBoots cross post there.

Just to add to the doom and gloom (sorry) you would be highly unlikely to get a business loan due to your lack of qualifications and experience in this sector, and the fact you have no experience of running a business.

No it's fine I obviously need a real impression, however aren't fees paid in advance?

Here en.m.wikipedia.org/wiki/Golden_Triangle_(Cheshire)

Ah no sadly Streetcar that's a tad posher than me!