If you're thinking of starting a childcare business to make a profit you'll need to make sure the business is planned so you'll be able to do this.
If you're going to run the business not-for-profit you'll need to make sure you'll make enough money to re-invest.
To help you run a successful childcare business you'll need to have:
- vision - a clear idea of what you want to do and achieve
- resilience - the ability to cope with set backs
- imagination - to help you get through any problems which may arise
You'll also need to have business and childcare expertise, as well as skills in management, finance, marketing and when dealing with people.
Knowing the risks
There are always risks when setting up a new business. Some of the most common include:
- underestimating the time needed to set the business up and fill places
- underestimating the costs of starting up and continuing to provide childcare
- not having the funds to cover any losses in your first months until you're established
Completing a SWOT (strengths, weaknesses, opportunities, threats) analysis will help you whilst setting up and running your childcare business. Examples could be:
- strength - a qualification you have in childcare development
- weakness - a lack of experience setting up a business
- opportunity - attending a training course
- threat - the lack of time needed to set up the business due to other commitments
You can use our template to complete your own SWOT analysis.
Choosing a structure
You can set up your childcare business as a sole trader, partnership, limited company, charitable trust, plus others. You can find out more about setting up different types of business on the GOV.UK website.