Start a registered sessional playgroup

Parents paying directly, plus in many areas government-funded early years places claimed through the local authority.

Hourly or per-session fees from parents, plus any funded-place payments from the local authority. Income depends on how many places you fill against staffing and rent.

• Early years knowledge, ideally a Level 3 childcare qualification
• Managing staff, budgets and parent relationships
• Patience, safeguarding awareness and good record-keeping

• Registration and inspection by the relevant regulator, plus rules on qualifications, staff ratios and premises, so check these before spending money
• Enhanced DBS checks, safeguarding duties and paediatric first aid requirements
• Public liability insurance, and employer's liability insurance once you employ staff
• Funded places often pay less than private fees and may arrive later than costs fall due, so plan your cash flow
• Registration and set-up can take months, and low numbers early on can make staffing costs hard to cover

Startup costs are typically estimated at around £3,000 to £15,000, depending on your premises, equipment and set-up needs. Registration can take months, and low numbers early on can make staffing costs hard to cover.

Monthly revenue is typically estimated at around £2,000 to £10,000, depending on numbers and the mix of private fees and funded places. Funded places often pay less and may arrive later than costs fall due.

Check registration and inspection by the relevant regulator, plus rules on qualifications, staff ratios and premises. Also check enhanced DBS checks, safeguarding duties, paediatric first aid requirements, and public and employer's liability insurance.