@Hollywhiskey - they don’t make a profit unless you own the building. A company like Bright Horizons makes a profit obviously because they own loads of different buildings, but a nursery that isn’t part of a chain is generally just limping along from one month to the next.
You can make a bit of a profit if you sell the business, but most nurseries have business debts as well, so they have to be deducted from any gains.
It’s very hard. Nurseries are unusual businesses to run because the overheads are so enormous and the expectations from both Ofsted and parents are so unrealistic.
First off, you can’t pay your staff a decent wage if childcare is ‘free’.
Secondly, you can’t look after a roomful of kids while writing essays on each of them that will be scrutinised and pulled apart by both Ofsted and the parents (who by the way, do not think they should pay).
Ofsted don’t have a clue about kids. Every few years they decide they have been doing it all wrong and a new set of rules are made up. Educational standards are at an all time low so none of the rules are working. The whole system needs a complete overhaul by someone with a bit of common sense. Sadly, that precludes everyone who works for Ofsted in my experience.