Estimate your start-up costs. These include the expenses you need to incur before you open your doors, such as premises, equipment, furniture, toys, insurance, registration fees, marketing materials, etc. These costs will vary dependent on the size of the setting. You may be able to access grants, loans or other funding sources to help you cover some of these costs.

Calculate your ongoing costs. These include the expenses you need to pay on a regular basis, such as staff wages, rent, utilities, supplies, maintenance, training, resources, food etc. You need to ensure that you have enough cash flow to cover these costs and avoid running into debt or cash flow problems. This will help you to determine your breakeven point. The breakeven point is the point at which your income exactly matches your costs and expenses. This is important to understand as it will help you to decide your hourly rate, so that you are profitable.

Forecast your income. This is the amount of money you expect to receive from your customers and other sources, such as government funding schemes, subsidies, donations, etc. You need to estimate how many children you can accommodate, how many hours they will attend, and how much you will charge them. You also need to factor in any seasonal variations or fluctuations in demand.

Create a budget and a cash flow statement. A budget is a plan that shows how much money you expect to earn and spend over a period of time, usually a year. A cash flow statement is a document that shows how much money is coming in and going out of your business on a monthly basis. These tools will help you monitor your financial performance, identify any gaps or surpluses, and adjust your plans accordingly.