How to Start UK Based Childcare Business

Beginners guide to Start UK Based Childcare Business

How to Start Childcare Business in the UK

It’s the same as setting up any business while you’re setting up UK based childcare business or daycare business. So, we’re here to help you if you’re going to start the child care services anytime. What you need first to this business is your wish to establish the visibility. Also, you need suitable people with childcare qualifications and you have access to suitable premises. Moreover, if the service you are planning is the service required by the public, you may also wish to carry out market research to check. But, you can’t go without a child care business plan, which plays a vital role to make you successful.

What is UK Based Childcare Business?

In general, UK based childcare business is to care for children under the age of eight on non-domestic location. That is where the period on the premises exceeds two hours in any day during which the children have looked after.

Child care services have many different types, such as full-day care, seasonal care, out of school care; crèches etc. it’s to ensure that the setting gives children the best care possible, childcare provides work with carers and parents. It means that if you’re doing childcare, you have to do a variety of creative activities. These include making sure they are having fun whilst they are learning and taking them out on trips. From childminders to day nurseries, there are all kinds of settings.

What more in the next:

  • Market Research for the UK Based Childcare Business
  • Type of business
  • Decide Age Range of children
  • Business planning & financial management
  • Incorporation
  • Premises
  • Staff & Registration
  • Marketing & Startup costs

Market Research for the UK Based Childcare Business

As it’s important to know how much demand there is in your area for a new business or service, so you have to do market research. This is also important because all area is not suitable for all type of business. As a result, it’s one of the must-to-do things for the UK based childcare business.

Type of business

It’s also important to know how many hours and days a week you want to open to and the type of childcare you want to offer. There are 4 types of childcare business that are recognized by Ofsted. They are as follows:

  • Non-domestic premises childcare: This is the type where is not used as a home. Here use a playgroup, pre-school, day nursery, after-school club or breakfast club, and crèche at a gym or shopping center.
  • Domestic premises childcare:  On domestic premises, four or more people looking after children on domestic premises along with childminders and supporting persons.
  • Childminders: It’s not the home of any of the children being cared for where individuals are looking after children on domestic premises.
  • Home childcarer: It’s being cared by a nanny or au pair at home of one or more of the children.

Decide Age Range of children

It’s important to decide on the age range that you’re going to care for the children or young people. Also, different age groups have different requirements of Ofsted. You’ll need a good framework if you’re caring for children aged between birth and five years old. It sets out the learning requirements, education, and welfare. You can visit the EYFS website for more information. You may want to offer free early education if you’re caring for children aged between two and four years old. It’s a great benefit to parents because this entitles some two-year-olds and every three and four years old to free part-time early education.

Business planning & financial management

You’ll need to get budgets and cash flow forecasts for the business plan. Besides, you have to prepare a good child care business plan along with financial management.


You’re legally and financially liable for the decisions you or your organization make if you’re starting a business, either as a voluntary management committee or a sole trader, partnership. Also, your personal assets and money could be at risk when you take out insurance that may not cover you completely. So, if you change the legal status of your business to a limited company, you can limit your liability.


It’ll depend upon the usable space inside your premises, the number of children you can look after. So, depending on their ages, the “EYFS” framework document tells you how much space is needed for each child. You’ll need plenty of storage space for your equipment and enough toilets and washbasins for the children and you should ensure that access is available for those with physical disabilities. Also, they need to play each day in an outside play area. You might like to set up a forest school if your premises have access to nearby woodland.

Besides, you may want to hire a hall for a playgroup or preschool. The list of the halls and venues that are available to hire, will available in the local “District or Borough Council”. You’ll also find the conditions and the costs there. As it’s often available during the daytime because they are often nonprofit making enterprises, you can consider properties including sports pavilions and uniformed youth organizations HQ buildings. Moreover, your hire fees will benefit the whole community and help them as well.

In addition, you can try a local estate agent who deals with commercial properties or tries searching online when you’re thinking about buying a property to use. But, remember you may have pay VAT on top of the rent before you rent a commercial property. You may need to apply for planning consent for change of use because commercial premises need to have a D1 Business use classification.

Staff & Registration

You have to make an estimate of how many staff you need to employ. It depends on how old they are and how many children you look after. For details see EYFS from page 22, section 3.31. Besides, except in a small number of circumstances, your businesses offering childcare must register with Ofsted. If you want to learn details, follow the website of the Ofsted. This organization manages two registrations, such as Childcare Register and the Early Years Register. There are the Compulsory Childcare Register and the Voluntary Childcare Register in the Childcare Register.

Marketing & Startup costs

If you want to market your business effectively, you must think of the good ways. This is because the marketing of any business draws the attraction of customers. And without customers, you can’t run your business anymore. For the startup costs, you may need a lot of money to cover things like staff costs, equipment, premises, and marketing when you’re setting up a business. If you need, you can apply for our start-up grant for the childcare business.


When you’re thinking of starting a new the UK based childcare business, you have to consider a lot of things. We have made a good arrangement of them as above. If you follow them, you’ll get success definitely. So, starting a childcare business is easy if you can do these correctly. Also, let us know if you need anything more to know. And share your experience by commenting in the comment section below. Till then Good Luck!