Factors
to consider when purchasing a Childcare business |
| Location |
Accessibility is vital. The property should be convenient for parents
to drop off and collect their children. The business should be close
to centres of employment. Assess the competition in the area -
- How full are adjacent nurseries ?
- Do they have a waiting list ?
- Does the local primary school provide a nursery class
?
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| Property |
The property will need to comply with the accommodation
standards as laid out by the Regulating bodies (see Regulations)
- Is there potential for expansion
?
- What is the underlying Bricks and
Mortar value of the property (as this underpins your investment ) ?
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| Registration |
How many children is the nursery registered
for and which age groups ? What is the attendance / roll for Morning and
Afternoon sessions.
- Is there a waiting list ?
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| Staffing |
| Is there a qualified Manager in the business ? If you are
inexperienced in the sector you will require a qualified manager. Wages
should be circa 35% - 50% of turnover, although this can vary. |
|
| Fees |
These can be charged by session (morning / afternoon) or by day, week
or month.
Find out what rates are charged and compare against the competition in
the area , is there room for an uplift in fees ? |
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| Quality of Child Care |
| All day nurseries are inspected by OFSTED. Obtain a copy
of the latest published inspection, this will give an excellent overview
of the quality of childcare provided and is a bench mark for parents when
selecting a Nursery .
Reports can be viewed on the Ofsted website at www.ofsted.gov.uk.
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| Profitability |
| The business needs to make enough profit to afford the
level of borrowings you require, you can calculate this on the loan calculator
or talk to your adviser who can assist you with calculating the viability
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