Small day nursery: how to open a registered setting

Parents paying fees, plus local authority funding for eligible children's funded hours, and in some cases employer childcare schemes.

Fees per session or per day for each child, plus funded place payments. Income depends on how many places you fill against your staffing costs, so keeping rooms well filled matters.

• Early years knowledge and a love of working with children
• Managing and supporting staff
• Budgeting and keeping to regulations
• Clear, friendly communication with parents

• You must be registered with the relevant regulator before you can open, and the process can take months, so check timescales
• Staff to child ratios and qualification rules, check the current requirements for your nation
• Enhanced DBS checks, safeguarding policies and staff training
• Premises may need planning permission for change of use, plus fire, food hygiene and health and safety checks, ask your council
• Public liability and employer's liability insurance, plus cover specific to childcare
• Funded place rates may not cover your costs, check the rate your local authority pays
• Data protection registration with the ICO, since you hold children's records

Estimates suggest startup costs are typically around £30,000 to £150,000, depending on the premises, fit-out, staffing before opening, insurance and registration. Check whether your premises need a change of use with your council.

Monthly revenue is typically around £12,000 to £50,000 in our estimates, depending on the number of places, children's ages and fees. Funded place rates may not cover your costs, so check your local authority's rate.

Check that you must be registered with the relevant regulator before opening, which can take months. Also check staff ratios and qualifications, enhanced DBS checks, planning, fire and food hygiene, insurance and ICO registration.