The premises

Once you have identified an area where there is a need for childcare, you will need to find premises that will be suitable place for your childcare business. There are several considerations:

Demand and competition in local area

Research the local market and identify the needs and preferences of your potential customers. By analysing the existing childcare providers in the area, you can find out their strengths and weaknesses and this will help you identify how you will make your offer unique, that meets the gaps in the market and stands out from the competition -your USP or Unique Selling Point. For example, if all the providers in your area have limited access to outdoor spaces, you may want to identify a location with abundant gardens and outdoor space.

The size and layout of the premises

You should ensure that the premises have enough space and facilities to accommodate the number and age range of children you intend to care for. You should also consider the health and safety requirements and regulations for childcare settings, such as fire exits, ventilation, lighting, heating, sanitation, accessibility etc. You should also think about how you will create a stimulating and comfortable environment for the children, such as providing adequate furniture, equipment, toys, books, etc. The Early Years Foundation Stage statutory framework for group and school-based providers in England and the National Minimum Standards in Wales define the space requirements that apply to all childcare settings. Remember the space available will limit the number of children that you can care for at any one time and therefore has a direct correlation to the income you can expect.

The cost and availability of the premises

You should compare different options and negotiate the best deal for your budget and needs. Consider the rent, service charge, utilities, maintenance, insurance, taxes, etc. that you will have to pay for the premises. You should also check the availability and accessibility of the premises, such as the opening hours, parking spaces, public transport links, etc. Investigate any restrictions or limitations on the use of the premises, such as planning permission, zoning laws, noise levels, etc. You could buy a property either through freehold or leasehold, both of which will require a significant investment but can be sold on in the future, or you could choose to rent a property.

Legal obligations

It is worth noting that only certain buildings can be used for a nursery. Since 2020, these have been called E-class properties. If you purchase or rent a property that is already considered E-class, you will not have to get permission for a change of use. The sort of buildings that are covered by E-class category include buildings that are used for: retail, restaurants/cafes, professional and financial services, offices (including health and medical uses), creches, nurseries and indoor sports/recreation. Buildings with different classes can be used but you would need to apply to your local council for full planning permission first and this carries the risk of the permission being denied.