Nursery closing down - should I buy it?!

[skiingmummy]

So heres the story.....
DS and DDs nursery has just given me 5 weeks notice of its closure. I've managed to find out that the reason for this is because Ofsted will not be renewing the operating licence, basically because the owner/manager is hopeless. However the ofsted report concerning the care of the children is excellent!! I'm very upset because the girls are good and DS has been really happy there for the last 2 years and I've only just (ie last week) started DD there.

I've just (ie last week!) gone back to a job I hate and have been considering my options for alternative careers and this just seems like a golden opportunity. BUT...I know nothing about childcare, have no childcare qualifications and don't know whether I should risk my childrens financial future by taking the plunge and buying this property and business.

Just as a starter for 10...what do you lot think about the idea?!?! And does anyone know where I can find advice on setting up a nursery.

Ta very much!!

i think it's a fab idea! not sure if i'd be brave enough to do it myself though... you need to talk to bubble i think?

Well, it depends on lots of things really:

a) is it a financially viable business? Will they show you the records to prove it?
b) will ofsted renew given a new owner? How long will that take? Will you lose customers in the meantime?
c) How many other regulatory requirements will you have to satisfy? Can you in the time allowed?
d) Do you want to do it?
e) Sod the lack of knowledge, it's something you can learn about. And presumably you'd be managing, not looking after children yourself? so,
f) do you have business experience?
g) what's the worst case scenario financially? Will you break even?

I think you should consider all the above and if the answers are good, do it! Why not? Sounds like a good idea to me, in principle anyway, go for it!

Talk to Bubble she owns a nusery

Thankyou so much for the replies. I certainly will contact Bubble. I've spent a couple of hours in the library and Borders poring over the books available on setting up a small business however I just would really like to talk to someone whos had the experience of setting up a nursery to see whether it is a worthwhile thing to do. I think the biggest concern I have is not really whether I could do it but whether financially I should do it.

Thanks again for your responses and WWW the points to consider!

Sorry, I hope they weren't patronising, you could be a business expert and I could be giving you very suck eggish advice, apologies if so!

There are grants avail for nurseries - but the paperwork is immense

Have you looked at the OFSTED website?

Will you employ a manager (as the person in charge ust be NVQ3 qual - I think)

Will your be managing it yourself? or employing a manager?

I agree that you can read up and learn a lot, but to turn yourself into a Manager of a childcare setting with no previous experience in such a short space of time would be pretty terrifying.

Ring your local authority, childcare information service, they are likely to have staff employed to support people setting up childcare settings.

Ring Ofsted for advice. I would imagine the nursery will still have to close, as there is no way you can buy a business in 5 weeks, so you are likely to lose a lot of the existing children as their parents will rush to rearrange childcare i'd imagine.

I havn't set up a nursery as a proprietor, but i did work very closely with the proprietors of the nursery i used to manage, from day 1 of its existence, so if there are any questions you wish to ask feel free.

One thing i will add - nurseries are not particularly profit making businesses, the large chains make enormous profit due to the fact they scrimp on staff salaries and in other areas. But to have a good reputation a lot more needs to be spent on staffing and quality food/equipment which leaves slightly less attractive profits.

HTH!

WWW - not patronising at all! I have IT project management experience but nothing specifically relating to running a whole business!!

Hmm - contacting Ofsted sounds like the next thing to do. Hubby is very keen (he'll be retiring in 5 years and I think wants something for him to be involved in then) but at the mo having done fag packet sums, I'm more concerned about jumping into something that on the face of it (just like you say Hattie) doesn't appear to give very big profits. I don't want to feel I'm risking my kids future financial security on something too dodgy!!

My thought was that I would run it but if you do require a min qualification might have to rethink. Lots more groundwork to do I think!!

Yes Manager or 'named person' definitely needs to be qualified.

What are the staff there like? Could you appoint a Manager on a low scale (i mean work wise and salary ) with yourself taking on a big majority of the unchildcare related matters?