Opening a new childcare business - Group Provision

Getting started - opening a new childcare business

If you are thinking about opening a preschool, day nursery or Out of School provision, we recommend you read the information detailed below.

Completing a feasibility study

  • If you are interested in setting up a childcare business, we strongly recommend completing a feasibility study to establish potential supply and demand for childcare places, within the area you intend to set up. 
  • As part of your feasibility study, we recommend you identify existing gaps in the market. Think about the predicted expenditure of your proposed business e.g. rent, utilities and staffing costs.  The age group of children you will care for and the type of care you will offer. How many children can your proposed venue accommodate? Who are your target audience and what will be your predicted income? Think about your offer to ensure it meets the needs of parents from the onset so that you can grow a sustainable business.
  • Carry out a local competitor analysis to see how the proposed business could offer a competitive option. This could inform the eventual business model that is chosen. You should also look at what competitors are offering and identify your unique selling point.
  • Coventry’s Early Years Business, Sufficiency and Funding Team produce an annual Childcare Sufficiency Assessment (CSA) which will support you in completing your feasibility study.  The CSA provides information about all childcare types within Coventry, opening hours and the number of childcare places within each area of the city.  The CSA will help you to identify potential gaps in the market.

Ofsted

  • The Office for Standards in Education, Childcare Services and Skills (Ofsted) is the government department that regulates and inspects childcare provision in England, to make sure that the quality of care and education meets the legal requirements.
  • You will need to decide which Ofsted register/s your business needs to in order to operate.
    1. The Early Years Register ~ if you intend to look after children aged from birth to 31 August after their fifth birthday.
    2. Compulsory part of the Childcare Register ~ if you intend to look after children from 1 September after their fifth birthday up to their eighth birthday.
    3. Voluntary part of the Childcare Register ~ Looking after children aged eight and over.
    4. The Childcare Registers ~ is the term used to describe both the Compulsory and Voluntary part of the Ofsted registers.

Before making your application to register with Ofsted you will need to;

  • be familiar with the registering with Ofsted information
  • contact Coventry’s Business, Sufficiency and Funding Team who will support you through the set-up and registration process.

Legal status and structure

Essential reading

The following documents are essential reading for those wishing to become registered childcare providers.  These documents will support you in understanding what is required and how to best support children on their childcare and education journey.

The Early Years Register

Providers caring for children in the early years age group need to be familiar with the following documents.

The Childcare Register

Providers who register to care for children aged 5 years and older must meet the requirements set out in the childcare registers.  This might include providers of Before, Afterschool or holiday provision for school-aged children.

Training for prospective childcare providers

The Coventry Early Years Team publish a termly training programme which highlights a variety of training opportunities to support prospective childcare providers.  Further information about our training programme is available online. 

Business training

Business courses can be sourced from a range of training providers and professional organisations.
The Chamber of Commerce provide business training and support to new businesses who are ‘starting up’.
For more details contact: 02476 654 321 or email startyourbusiness@cw-chamber.co.uk

The Safer recruitment and selection of staff

  • The registered person must have comprehensive procedures in place to ensure the suitability of those working with or coming into contact with children or vulnerable people.  This will be achieved by having robust safer recruitment practices in place, to ensure legal the requirements are met when employing staff.
  • Training is available from a variety of sources.  A Business, Sufficiency and Funding Advisor will also be able to guide you through this process.

Suitable people

In the case of childcare providers on domestic or non-domestic premises, you will need to:

  • Ensure the registered person has completed a Disclosure and Barring Service (DBS) check prior to submitting the Ofsted online application. The DBS application form can be accessed on the Capita website.  
  • It is strongly recommended that providers subscribe to the DBS update service within 19 days of the DBS certificate being issued.
  • Demonstrate that every person looking after children on the premises, where childcare is provided, is suitable to look after children.
  • Demonstrate that every person living or working on the premises, where you provide childcare, is suitable to be in regular contact with children.

Planning permission

If you own the premises you intend to operate from, you should check with the local planning department to find out whether you need planning permission to run a business from the premises.

Additional permissions may be required if the property is rented property, in accordance with your lease agreement.

Professional Associations

There are several professional organisations that support childcare providers by offering public liability insurance, documentation packs, publications, legal and forum support. 

Coventry City Council does not endorse any third-party organisation.

Local Authority advice and support

The Local Authority Early Years Service have two dedicated teams who will support you through the registration process and beyond by providing valuable advice and guidance. Following successful Ofsted registration, you can apply to the Business, Sufficiency and Funding team to receive funding, to deliver early education entitlement places for children under the age of 5. To learn more about Early Education Funded places

Want to get started?

Once you have read and considered all of the information provided, please complete an initial enquiry form if you wish to proceed.

Once you have submitted the enquiry form, it will be forwarded to the Business, Sufficiency and Funding Team.  An Officer will contact you and support you through the registration process and beyond.

It is important to note that direct support will only be offered to prospective providers where the proposed childcare provision is within the Coventry boundary.

Coventry Business, Sufficiency and Funding Team

Address: PO Box 15
Council House
Earl Street
Coventry
CV1 5RR

Telephone: 024 7697 5451