Starting a childcare business

Advice and suggestions to help you start up your own childcare business, including Childminders, Nurseries, Pre-schools, Holiday Clubs and After School Care

Register as a Childminder

Providing high quality childcare can be enormously rewarding and give children a great start in life. Opening a new provision requires commitment and research.

There is a lot to consider, including knowing about your community, the competition in your area, and sustainability.

We have included some advice and suggestions, which should be useful as a starting point. All new provisions are different, and will have individual considerations.

If you are interested in becoming a childminder in Somerset, there are a number of stages you should go through. First, contact us by using the button below to register an interest, and to request an information pack.

Register an interest in becoming a childminder

This form has 1 page and will take approximately 5 minutes to complete.

What it involves for childminders

There are some other training costs associated with registering as a childminder with Ofsted or a childminder agency – your initial information pack will explain these.

You will then need to read the Ofsted pre-registration briefing session where you will be advised about the registration process and requirements. An Early Years officer will support you through the entire process.

Prospective childminders must demonstrate that they have knowledge and understanding of the Early Years Foundation Stage (EYFS), including how to implement it, as part of their registration with Ofsted or a CMA. This may require attendance at suitable childminding training that will allow you to demonstrate your ability to deliver the requirements of the Statutory Framework for the Early Years Foundation Stage (EYFS)

You will need to apply for a disclosure and barring service (DBS) check through Ofsted and sign up for the portable update service for yourself and anyone else in your home aged 16 or over.

You will be signposted to the relevant Ofsted forms, which must be filled in once you have completed all the relevant training.

Once Ofsted has received your completed application form, including payment, they will contact you to plan a date for a registration visit within 8 to 9 weeks. You must have public liability insurance to operate as a childminder. Your Early Year’s officer will advise you on how to arrange this.

As soon as your Ofsted registration certificate and public liability insurance certificate are in place you can start childminding.

Ofsted will give us the details of your service. You will be able to update information as changes in your service are implemented.

Once registered, Ofsted will first inspect you within 30 months. After that, they will carry out inspections at least once every 6 years, depending on your inspection outcome, or sooner if a complaint is made about your service. An Early Years Officer will support you until you have received your first full inspection.

You must remember to keep Ofsted informed of your changes, for example, name, address and the service you offer.

Ofsted charges an annual fee to keep your registration active.

Starting a nursery

National Day Nurseries Association (NDNA) have created a factsheet for anyone who wants to open a nursery provision. This includes helpful information for you on Regulations, Finance and Health and Safety.

The Department for Education Start Up Grant Scheme

The Department for Education Childminder Start-up Grant Scheme opened for applications on 30 November 2023, offering £600 for childminders who register with Ofsted, and £1200 to childminders who register with a childminding agency. This grant is available to childminders who have registered since 15 March 2023.

You can find more information on the GOV.UK website – Childminder start-up grants scheme update: September 2023 – GOV.UK 

Finding suitable premises - all childcare providers

Often the hardest part of starting a new childcare business is finding suitable premises. You should have an idea about what age ranges you wish to care for, and how many children. Children under 2 years old must have 3.5 square metres of floor space available per child, falling to 2.5 square metres for 2-year olds and 2.3 square metres for 3 and 4 year olds. Providers must also ensure that as far as reasonably practical, the facilities, equipment and access are suitable for children with disabilities.

Remember, it is likely that planning permission will be required, so consider whether there are enough parking, suitable drop-off points and whether neighbours are likely to object.

You should also consider where you expect parents to come from, what clientele you and whether there are other childcare groups in the area (see Childcare Sufficiency Assessments below).

Cost of premises

  • If a building is leased, what are the terms of the lease?  Are there break clauses? Can alterations to the building be made? What is the notice period?
  • If the building is to be purchased outright, how will the purchase be funded?
  • What are the business rates?
  • Will there be a need for repairs and maintenance? How much is likely to be needed?

Childcare sufficiency assessments

A childcare sufficiency assessment provides an overview of the local childcare market, comparing the supply of childcare in an area to the demand for childcare. Demand for childcare is based on the number of children in the area and the average national usage. By comparing supply with demand, we can see whether there is a requirement for more childcare in an area.

If you would like a childcare sufficiency assessment of a target area, contact educationplaces@somerset.gov.uk or phone 01278435578.

Early Years Officers can provide practical advice and support on everything from suitable premises to operational delivery – contact educationplaces@somerset.gov.uk for more information.

What are you planning to offer?

  • What age ranges will you offer care for? Babies? 2-year olds? 3 and 4 year olds? After school care?
  • What opening times will you offer?  It is worth researching the local need: Do parents need full day care, hours that fit within the school day or just mornings or afternoons?
  • What resources and equipment will you need? Budget for the costs of equipment?
  • What fees will you charge? How does this compare with other providers in the area?
  • Have you completed a business plan? A business plan is vital as it helps you consider all aspects of your business in detail.
  • Pick up from schools?
  • Will you be offering entitlement places?

Staff and timescales

Staff
Staff are usually the single largest cost for any nursery. Statutory staffing ratios must be considered. You must also meet the ratios of qualified staff (see the EYFS Framework) and consider whether you will have an Early Years Teacher or Early Years Professional on the staff team.

Timescale
The overall timescale will vary depending on individual circumstances, such as locating premises, whether planning permission is required, and recruiting staff. Ofsted registration can take up to 6 months and Ofsted will only do a registration visit when the setting is ready to open for business, so planning ahead is crucial.

Whilst every effort has been made to provide up-to-date and correct advice, we make no representations or warranties of any kind. Any reliance placed on this information is strictly at your own risk.

Last updated: October 24, 2024

Next review due: April 24, 2025

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