Small day nursery in rented premises

Working parents paying fees, plus local authorities paying for government-funded early years hours where your nursery is approved to offer them.

Fees per child per day or session, plus funded hours paid by the local authority. Income depends on how many places you fill and staffing costs, which are your biggest expense.

• Early years knowledge and a childcare qualification
• Leading and managing a team
• Organising budgets, rotas and paperwork
• Clear, reassuring communication with parents

• Registration and inspection by the regulator in your nation, which must be in place before you can open
• Staff qualification and child-to-adult ratio rules, plus DBS checks for everyone working or living on site
• Planning permission or change of use for your premises, and landlord consent, so check with your council early
• Public liability and employer's liability insurance, and fire, food hygiene and health and safety requirements
• Funded hours are often paid in arrears and at rates that may not cover costs, so plan your cash flow carefully
• Fit-out, rent deposits, equipment and staff wages before you have a full set of children can add up quickly, so keep a solid cash reserve
• Safeguarding is a serious legal and moral responsibility with ongoing training needs

Estimates suggest startup costs are typically around £70,000 to £200,000, depending on the premises, rent deposit, fit-out, equipment and staff wages before you have a full set of children. A solid cash reserve is worth planning for.

Estimated monthly revenue is typically around £10,000 to £45,000, depending on the number of children, your fees and any approved funded hours. Funded hours are often paid in arrears, so plan your cash flow carefully.

Check registration and inspection by the regulator in your nation, which must be in place before opening. Also check staff qualification and ratio rules, DBS checks, planning permission and landlord consent, insurance, and fire, food hygiene and safeguarding requirements.