• by Folakemi Adegbaju
  • August 14, 2023
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  • 13 minute read

nursery business plan template

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How to start a nursery business, how to write a nursery business plan, #9. organization and management team, #10. appendix, nursery business plan template, final thoughts, can you open a nursery in a house, who regulates nurseries in the uk, is a nursery school a good business.

Starting a nursery can be your next step in your childcare career, a long-term goal, or a new area of interest. You should make sure you are well prepared for what it will entail because, even if you have worked in childcare for many years, it may be a challenging job with many factors to take into account. There are four key requirements for success, regardless of the nursery’s level of development: a strong business plan for the nursery, thorough planning, market research, and high-quality, qualified employees. You will find it difficult to offer the level of provision that will ensure success without all of these components. A nursery business plan template has been created by us in this article to make the writing easier for you.

Let’s zoom off….

What Is a Nursery Business?

Nowadays, nurseries are a common and prosperous business. They provide early childhood education to kids before they start in-school programmes, and if you like dealing with kids, this might be the ideal place for you. But there are many things to think about first if you’re thinking of opening your own nursery business.

There are some steps to follow when you plan on opening a nursery business to make it successful:

#1. Make Sure You Have the Qualifications and Experience

If your goal is to operate a nursery as a business rather than get engaged in the teaching and day-to-day management of the nursery, you technically don’t need any training or expertise to do so. If you’re going to work in the background, it’s always a good idea to educate yourself on the ins and outs of business ownership. However, there are some credentials and experience you’ll need to have if you do intend to get involved with teaching the kids directly. 

A nursery manager must have worked as a nursery nurse for at least two years, have had a supervisory position for one to two years, and possess the necessary nursery certifications.

#2. Hiring the Right Staff

In every business, but especially when working with kids and families, it’s crucial to pick the right employees. Whether or not they have appropriate behaviour management. Children’s caregivers may come across a variety of behavioural situations, and they must be able to react in a way that supports the welfare and development of the kids.

Whether or not they take pleasure in working with kids and have patience. They must share your vision because they will have to do this daily. They must also have the proper mindset. Remember that nurseries must adhere to minimum staffing ratios of one adult for every three children under the age of two, one adult for every four children ages two to two, and one adult for every eight children ages three to seven. In your adult-to-child ratios, trainees or apprentices under the age of 17 are not considered adults. Additionally, there must always be a minimum of two employees on duty.

#3. Register Your Nursery

You must be 18 years of age or older, be eligible to work in the UK, and submit to a Disclosure and Barring Services (DBS) check before you can apply for registration. The DBS check, which costs about £50, verifies that you have no criminal convictions that would prevent you from working with children. Additionally, you will be required to complete a health declaration form outlining any medical conditions you may have and any medications you are currently taking. Following registration, Ofsted will visit your nursery at least once every three years to make sure it complies with the 14 national criteria for child care. This will be used to grade you.

#4. Conducting Research

Conducting correct research is the first step in starting a successful nursery business. Included in those crucial sectors are clients, rivals, and operations. It is crucial to carry out both primary research (your own investigation, including speaking with prospective clients and keeping an eye on rivals). An annual sufficiency report, which local authorities are required by law to provide, is helpful for identifying gaps in and choosing an appropriate location to open, is available from the early years’ department of your local authority and is frequently a good source of information about early years provision in your neighbourhood. Learn what parents want from childcare services, then customise your offerings to fulfill those needs. You may set your rates at a sustainable and competitive level by conducting research on the amount of fees parents are willing to pay for childcare and learning how many local nurseries charge parents.

#5. Decide What Type of Nursery You Want To Start

You have the option of starting a nonprofit nursery or a private nursery. In either case, you must abide by the same laws and standards. However, if the organisation is a registered charity, additional reporting obligations will be applicable. The sole distinction is that the non-profit nursery’s profits support the community centre or nonprofit organisation to which you belong, whereas a private nursery operates like any other company, with shareholders and dividends or drawings if it is not incorporated.

You should also choose if you want to join a franchise or launch your business entirely from scratch. You won’t need to rush to raise startup money because the franchise organisation will help with the nursery’s resources, but they will also take a cut of the revenues.

#6. Get Your Licences and Regulations

Regardless of where you reside, your country’s regulatory body will require you to register your day nursery before you may do so, and you must first meet the Early Years Foundation Stage (EYFS) standards. A nursery insurance policy is required, covering public liability, employer’s liability, professional indemnity, commercial property, and business interruption insurance to protect you in the event that you need to temporarily close the nursery, such as during a lockdown.

There are food safety laws you must follow for the meals and snacks you offer to kids. Specifically for childcare providers, the Food Standards Agency (FSA) has created a set of hygienic guidelines for preparing and storing food. Maintaining risk assessments, evacuation plans, fire safety, injury reporting, and the storage of any hazardous goods should all be covered by a clear health and safety policy. Depending on the age range of the kids at the day nursery, there are some stringent staffing requirements for the amount of personnel you must hire.

#7. Building Your Day Nursery Brand

There is more to branding than just a logo and a colour palette. It is how you wish to present your nursery business to your target market. Your branding needs to represent all aspects of your business, from how you interact with parents to the instructional strategies you use.

It’s difficult to create a brand from scratch. The best course of action is to meet with a branding consultant like BUSINESS YIELD CONSULT who can help you achieve your goal. Once you have established your brand, you may replicate it across all of your communications, websites, buildings, uniforms, and policies.

Once you’ve established your brand, it’s time to increase brand recognition. Social media and websites can help with this. However, there are guidelines and restrictions on the internet sharing of pictures of the kids who go to your nursery. You can’t post their pictures without their parent’s or guardians’ consent.

  #8. Find a Suitable Location

When picking a location for your nursery, there are a number of things to consider. The following is to be considered:

  • If there is a parking
  • Whether it has good transportation options
  • Is the nursery going to be attached to a community centre or religious community and will it be nearby?
  • And if there are any nearby nurseries that compete
  • Perhaps there is enough room outside for a playground.
  • Whether it has enough space to install all the required facilities is not
  • Is there a demand for another nursery? Are existing nurseries in the area full?
  • Maybe it is in a neighbourhood that is safe and has lots of families around

You will also need to abide by some legal space limitations. For kids under the age of two, you need 3.5 square metres of room per child. You need 2.5 square metres per child between the ages of two and three.

Furthermore, each child needs 2.3 square metres of space between the ages of three and seven. After you’ve closely examined a potential site, consult an architect to see how much it will cost to turn the area into a daycare centre.

#9. Prepare a Business Plan

It is time to draught a business plan now that you have gone over every aspect and are aware of what it takes to build a nursery business. When you are searching for funding, the lender will want to know where their money is going. Therefore, this is important to keep you on track and is also vital. Also, it aids you in maintaining your spending plan at all times. You might engage a professional to write your business plan if you are unsure of how to proceed.

 #10. Funding

You’ll be prepared to use your business plan to raise money for your nursery now that you’ve finished writing it. Several ways to pay for your nursery include:

  • Put money of your own into the business.
  • Loans from banks
  • loans for new companies.
  • Equity funding is capital provided by shareholders.

The groundwork for establishing your new nursery business will be in place once you have done your research, written a business plan, and raised the necessary funds.

What Is a Nursery Business Plan?

When starting a nursery business, it is crucial to have a solid plan. As you move through the setup process in the nursery business, it will guide your decisions. Do you require outside funding? Or require legal advice from a professional? Do you know where to look for and how to entice the parents of prospective classmates?

You’ll be stumbling in the dark without a nursery business plan. You won’t be taken seriously by potential investors either. Get it right away and prepare for the journey ahead. But if you know what you’re doing and truly care about providing high-quality early childhood education, you could be able to create a company that will be successful for many years, perhaps even decades. The good news is that to ease your worries, we have a nursery business plan template for you!

Here, we created a nursery business plan template as a guideline to assist you in putting your aspirations on paper. If you follow these instructions, you’ll have a useful, pertinent document to help you stay relevant in the business.

 #1. Executive Summary

An executive summary is a breakdown of your nursery business plan’s main ideas. It contains important details like your earnings and loss. It should be brief and to the point and explain why your company is viable. Any childcare experience you may have should be mentioned here. You can summarize the key facts about your company in it, such as its name, aims, and ambitions. This provides a summary of your goals for both you and anyone else reading your nursery business plan.

#2. Company Overview

This is your chance to share the motivation for beginning a nursery business. To sell yourself and your vision, mention your drive, expertise, and qualifications. If you’ve never had a business before, visualise yourself as a prosperous businessperson and tap into the confidence that will result from it. Include a description of your beliefs, services, ways you stand out from the competition, your mission and vision statements, and the chances you plan to capture.

Keep in mind to adhere to the SMART principles while defining your goals;

#3. Services

Make sure to fully describe what you are giving in this part as well as how you vary from other providers and organisations in your nursery business plan. Your main component when promoting to potential clients and investors will be your unique selling point (UPS). What will offer your nursery the edge above the competition you need to succeed? Perhaps your business is next to a railway station, making pick-up and drop-off for harried parents who commute easier. Maybe there is a wooded area in your outdoor space that you could advertise as a forest school.

Even though it might seem obvious, you must list all the services you will provide. Consider carefully the following, as each childcare provider will have a slightly different offering:

  • How accommodating are your hours?
  • Specify your lower and upper age limits in the age provision.
  • How many kids will be in each class? What are the ratios? And how many employees?
  • Are there any parks, museums, or libraries near your property?
  • Will you offer services from outside providers, such as swimming lessons or language classes, as part of your activities?

#4. Market Research

Now is the moment to define your market, being sure to analyse both your target market and your competitors in your nursery business plan. You will be able to start forming an accurate company strategy, as well as a picture of the types of individuals that will be your customers and the price you will charge.

Focus on your intended audience now. Beyond the fact that they will inevitably become parents, they can diverge greatly. Some parents of two-year-olds will qualify for more government assistance than others, while others may rely on childcare vouchers provided by their employers. Some parents will only require a spot for a few mornings each week, while others will require a full-time setting. Examine the demographics of your neighbourhood, including the average pay, population size and change, and birth rates. Your plans can benefit from every piece of knowledge and become more accurate.

#5. Finances

This describes your financial situation as well as your projected income and expenses in your nursery business plan. Financial statements like your balance sheet and cash flow statements would be included. The equipment needed to start a nursery will range from furniture to toys and books to outdoor playthings to computers and tablets to first aid supplies and promotional materials.

Your largest continuous cost will be employee pay, which makes up 73 percent of all expenses for private day nurseries. Some of these may need to be changed on a regular basis. Rent or mortgage payments, training expenses, and utility bills will all significantly reduce your profit. Do you know where your funding originates, to sum up? In your nursery business plan, be very explicit about the funding you’ve previously acquired (personal savings, soft loans from family and friends, etc.) and whether further funding through a business loan, sponsorship, or business partner is necessary.

#6. Location

The location of your business is crucial to your plan, and there are several things to take into account, including its size, location, and compliance with any applicable property laws. Many structures have limitations on the number of people who are permitted to enter them as well as guidelines governing whether you are able to operate a company from them. Describe your plans in this part of your nursery business plan, being careful to mention any necessary ancillary charges.

Decide how many children you would ideally like to accommodate before you begin looking for a location. This will have an effect on the size of the property you need, the number of employees, and the cost. Your market research should guide where you decide to locate this business. Will you be flooding a market that is already having trouble or filling a gap?

Here are some things to consider while searching for a location:

  • Transportation options to provide the most convenient pick-up and drop-off
  • adequate outdoor space and parking
  • Bathroom and kitchen amenities
  • Whether a structure is suitable for conversion when it already exists

#7. Marketing Plan

Here, you should outline your strategies for attracting parents and customers, generating sales, and creating devoted followers. Furthermore, a significant portion of your business plan will be devoted to your marketing strategy. A plan for promoting your nursery before its anticipated launch date should be at its core. You need to go all out, using both conventional strategies like posting banners outside the building and distributing flyers to neighbourhood infant and toddler organisations, as well as fully embracing a social media campaign.

#8. Rules and Regulations

There are a lot of legal considerations, guidelines, and restrictions when starting a nursery. You will be taking care of kids, after all. Make sure your company plan makes it apparent that you are aware of and have taken into account these rules and regulations. Additionally, you will need to register with Ofsted. If you are qualified to care for children, you need to take the following two steps first:

  • a DBS that evaluates your fitness based on any prior convictions for crimes
  • a health declaration form in which you indicate any medical conditions you have and the medications you take

Make sure you budget at least six months for the completion of this lengthy registration process since it is necessary. Without it, you won’t be able to open your nursery business. Once your nursery is operational and registered, Ofsted will inspect it at least once every three years to ensure compliance with national requirements. With the possibility of an Ofsted inspection looming, you’ll be even more driven to succeed in your new nursery venture.

You must now specify if you plan to hire employees and how your company will be managed. This might address both the early stages and how you envision your company developing over time and adding people as it expands. Who is involved in the venture, and what are their skills and expertise?

You can include any material in this part to support your business plan. Reports, legal documents, etc. may be included. It serves to explain some of the elements you included in the business plan and provides a complete grasp of it. You can include any material in this part to support your business plan. Reports, legal documents, etc. may be included. It serves to explain some of the elements you included in the business plan and provides a complete grasp of it.

Having a nursery business plan template gives you the full confidence of starting the journey of writing your own nursery business plan. We have a nursery business plan template so you won’t get confused when writing your plan. The following are included in the nursery business plan template we’ve created for you:

  • Executive summary
  • Industry analysis
  • Market analysis
  • Operational plan
  • Management team
  • Marketing plan
  • Financial information

This nursery business plan template will surely serve as a guideline to make writing your plan easier.

Planning the ideal nursery requires consideration of how to bring toddlers’ giggles and smiles into the space. Without any children to enjoy it, operating a nursery business is pointless. Therefore, your nursery business plan needs to be carefully written. That is why we have compiled one for you to save you from the stress of writing it! Go ahead and download the template for nursery business plan

If planning approval is obtained, you are allowed to operate a nursery in your home. To find out if this is the case, you must speak with your local government, which could take some time.

The Office for Standards in Education, Children’s Services, and Skills is also known as Ofsted. In England, they oversee and inspect childcare providers such as childminders, registered nannies, nurseries, pre-schools, schools, and FE institutions.

Preschool establishments are one of the most lucrative enterprises when done with devotion, tenacity, and dedication. Preschools help you gain market recognition and goodwill in addition to improved financial returns.

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nursery business plan example uk

Welcome to the Hub, the company blog from High Speed Training.

Select a topic to find the most up to date, practical information and resources produced by our experts to support you in your professional life.

  • Health & Safety

How to Start a Nursery Business

Nurseries are popular, successful businesses in this day and age. They offer early childhood education to children before they begin compulsory education, and could be the perfect place for you if you enjoy working with children. However, if you’re thinking of starting your own nursery school, there’s a lot that needs to be taken into consideration first.

In this guide, we will cover everything you need to know about starting a nursery business, including the qualifications required. We’ll also provide a free business plan template that you can use.

The contents of the guide are as follows:

Why Start a Nursery Business?

  • Starting a Nursery Business Plan – Market Research, Choosing Your Premises, Financial Planning, Marketing and Branding

What Qualifications Do I Need to Open a Nursery?

How do i run a good nursery business.

Children learning in a nursery business

Starting your own nursery business can be extremely rewarding – the benefits include:

  • The ability to influence and be involved in children’s early development , which lays down the foundations for the rest of their lives. Early years are really important – find out more in our article here – and helping to give children the best start makes for a fulfilling career.
  • High demand and the potential for great success . The Department for Education’s 2019 report showed that there were 1.7 million childcare places offered in that year in England, with the great majority being from group-based nurseries rather than school-based ones. Few places go spare – only 19% of group-based nurseries’ places were available in 2019 – because more parents are able to work, as a result of changes in employment conditions, and new government childcare schemes.
  • Freedom to work for yourself . Starting your own nursery gives you the freedom to be your own boss, and if you decide to do it from home, you don’t even have the hassle of travelling.

Two children playing in nursery

However, there may be some drawbacks to consider. Like any start-up business, there are risks to starting a nursery: you need a really good business plan, great organisational skills, and a passion for the industry. Additionally, you have to be prepared for things to go wrong – insurance policies are particularly important, so that you don’t find yourself on the wrong end of a lawsuit.

If you plan to set up a nursery business, you don’t need any formal childcare qualifications, unless you want to be involved in the day-to-day managing of the nursery. Managers must have at least two years’ experience as a qualified nursery nurse, one to two years’ experience in a supervisory role, and a relevant nursery qualification.

However, there are a lot of other considerations that you will need to keep in mind, from registering your nursery to safeguarding requirements and health and safety regulations.

nursery business plan example uk

Registering Your Nursery

Your nursery will need to be registered the specific regulator in your country:

  • England – Ofsted. Follow the link to this page for more information.
  • Wales – CSSIW (Care and Social Services Inspectorate Wales). Look at this page for more information. 
  • Scotland – the Care Inspectorate. Follow this link for more information.
  • Northern Ireland – the Health and Social Services Board (HSSB). Follow the link to this page for more information.

In order to apply for registration, you must be aged 18 years or older, have the right to work in the UK, and must undergo a Disclosure and Barring Services (DBS) check . The DBS check ensures that you have no criminal convictions that make you unsuitable to work with children; it costs around £50. You will also need to fill in a health declaration booklet , detailing any health problems that you have and any medication you are taking.

Once you are registered with Ofsted, they will carry out inspections of your nursery at least once every three years, to ensure that it conforms with the 14 national standards for childcare . You will be graded on this.

Below is an overview of the relevant information contained in the 14 national standards.

nursery business plan example uk

You must comply with local child protection procedures, and ensure that all staff are also aware of how to safeguard effectively – including the symptoms of children at risk, and what to do to report it. You will also need to create a written procedure detailing what to do if allegations are made against a member of staff, as well as the person in your organisation that everyone with concerns should go to. Additionally, you should have a system of attendance showing the times of arrival and departure of every child at nursery, and a system where you can identify that children are being collected by the correct person.

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Need Safeguarding Training?

You and your nursery staff will need at least Level 1 Safeguarding – our Safeguarding Children in Education course will provide you with the knowledge and skills you need. We also offer higher-level safeguarding training, including Advanced Safeguarding Children (Level 2) and Designated Safeguarding Lead Training (Level 3) – visit our safeguarding course library to browse our available courses.

You will need to complete a risk assessment of your premises, and ensure that you review it if there are any significant changes or you have reason to suspect it is no longer valid. Your risk assessment will need to include an action plan to identify how and when you will minimise any existing risks. For help completing your risk assessment, have a look at our Health and Safety in Schools Checklist – much of this information will also apply to you.

Additionally, it’s really important that all your staff know what to do in an emergency. This includes fire safety measures and evacuation procedures , how to report injuries , how and when to administer medicine, how to handle hazardous substances, and how to carry out manual handling. At least one staff member on the premises must have paediatric first aid training at all times.

You will require policies about health and safety and ill or infectious children, and a procedure for what to do if a child becomes ill while they are at nursery. You should also have a no smoking policy.

nursery business plan example uk

Food Safety

If you will be preparing food and drink for children in your nursery, you will require appropriate training – there must be one trained member of staff on duty at all times. A Level 2 Food Hygiene course would be an appropriate qualification. All other members of staff must ensure that they also follow safe food hygiene practices; you should create a food hygiene policy with sections covering everything they need to know, from cross-contamination to temperature control and accidents. Don’t forget about allergens – we have created a handy poster of the 14 named allergens that you could give to staff:


You will need to ensure that you keep records relating to the children you care for – these must cover everything that your staff need to know in order to safely and effectively care for each child. After a child has left your nursery, you will still need to keep these records for a reasonable period of time (PACEY recommends this to be six years after the child has left your setting).

When handling records, you will need to follow data protection regulations. Failing to comply with data protection law can lead to serious consequences. If you need training in this, have a look at our Data Protection for Schools course.

nursery business plan example uk

Equal Opportunities

All staff must actively promote equality of opportunity and anti-discriminatory practices. You will need an equal opportunities policy that follows the current legislation and guidance on the topic – take our Equality & Diversity Training to update your knowledge. Your equal opportunities policy should be available to all staff and parents.

For more information about the 14 national standards, have a look at the Department for Education’s guidance . If you will be looking after babies, there are additional criteria in that document which will apply to you.

Starting a Nursery Business Plan

When setting up a nursery, the first thing you need to do is create a business plan. This will help you to stay on track and within budget, as well as showing any prospective lenders that you know what you’re doing.

In this section, we will detail everything you need to think about and consider including in your business plan. We will also provide a business plan template for you to fill in.

Need More Help to Start Your Business?

If you need more help to write your business plan, and you could do with advice on finding investors, accessing support, marketing and operations, try our Starting a Business course . Once you complete the training, you’ll be confident and prepared to set up and run your nursery business.

Market Research

One of the first things to think about is whether there is actually demand for a nursery in your local area. Look at the childcare providers around you which might be your competition, including other nurseries and childminders. How many of them are there? Are they full, or do they have lots of spare places?

An easy way to find this information out is through your local authority, which will have a list of all registered childcare providers. You could also contact the other providers to ask whether they are over-subscribed. If the market is already saturated in your area – in other words, if there are already plenty of nurseries, with plenty of places – then starting your own may not be such a viable plan.

Nursery teacher instructing her class

Other things you should consider are the services the existing nurseries offer, and what their fees are. This will give you guidance as to what you could provide, and for how much: if their service is limited in some way, could you be more flexible? Think about the length of their opening hours, the ages they provide for, group sizes, and activities – for example, could you offer regular trips to the park, or foreign language lessons? Could you cater for broader age ranges? You could ask your friends, family, and acquaintances what they would like in a nursery, or even contact the local authority about what provision they feel is lacking.

In terms of fees, you need to think about how many parents in your target market will be relying on government support or subsidies – research the average wage and other demographics in your area, and think about whether you would register your nursery for the Tax-Free Childcare Scheme, or make your fees reasonable for those paying individually.

Choosing Your Premises

The premises you run your nursery from can hugely influence its appeal to your target market. Initially, you should decide whether you want to run the business from your home, or whether you will acquire new premises.

Running a Nursery from Home

You can run a nursery in your home if planning permission is granted – you will need to contact your local authority about this, and it may take some time. If you decide to do so, be aware that the minimum space requirements set by the government might limit your capacity: you need 3.5 square metres per child under two years old, 2.5 square metres per child aged two years, and 2.3 square metres for children aged three to seven.

Tables and chairs in a nursery business

Acquiring Other Premises

If you decide to acquire other premises, consider:

  • Location: whether the venue is in an area that covers your target market. Are there plenty of family homes and lots of schools? Is it an area where parents will be able to afford your fees, or access them with subsidies? Are there lots of other nurseries nearby, and are these already full or not?
  • Access: is there parking outside or nearby, for both staff and parents? What are the transport links like – is there a nearby bus stop or train station? Are there pedestrian crossings so that parents can cross the road safely and easily?
  • Outdoor facilities: is there enough space outside for a playground? Can the grounds be enclosed, so that they are safe?
  • Indoor facilities: is there the potential to install all the necessary facilities, including toilets (one for every 10 children over the age of 2), kitchen facilities, changing areas, and a telephone? Is the building well-lit and adequately ventilated? Is there enough space to have separate areas for all the activities you plan to run, as well as for storage for equipment?
  • Potential hazards: are there multiple floors? Are staircases child-friendly? Would you be able to prevent children from accessing the kitchen?
  • Future expansion: is there scope for expansion in the future?

You might decide to convert a building into a nursery, purchase an existing nursery building, or share space with a building such as a retirement home or indoor play centre (something that is becoming popular!). If you choose to share space, bear in mind that this might limit your ability to be flexible in opening hours and expand your business.

Child playing at school

Financial Planning

Financial planning is key to any successful start-up. You will need to spend time working out each of the following:

You will have two types of costs: start-up and running . Your start-up costs involve:

  • Setting the nursery up, including buying the premises (if you choose to do so), and any building conversion costs.
  • Installing facilities such as a professional kitchen and outdoor play equipment/ground surfacing.
  • Buying furniture, toys, books, first aid kits, office equipment, uniforms, and signage.
  • Registering your nursery.
  • Initial staff training.

Start-up costs could total up to £100,000, but you could cut costs by buying things second-hand, doing as much as you can yourself, or deciding to be part of an existing nursery franchise.

Running costs will include ongoing expenses, such as:

  • Rent or mortgage payments.
  • Staff wages. The average salary for nursery staff is £19,000; paying their wages will make up the bulk of your running costs.
  • Your own salary.
  • Utilities (including council tax, water, gas, and electricity).
  • Food and other disposable resources.
  • Regular maintenance.
  • Ongoing staff training.

nursery business plan example uk

You need to project how much money you expect to make from your business, in order to find out whether or not it is going to be profitable. First, consider how much you are going to charge by looking at other nurseries’ fees to compare. You might be able to charge more if you are going to offer more services – for example, you could charge extra for snacks, meals, trips out, and other activities. Government childcare payment schemes cover the childcare rather than these extra things, so all parents could be charged for them on top of the regular fees.

Then, think about how many children you will need to have in your care, paying the fees you have decided upon, to be able to cover all your outgoing costs and give you the profit you want. You will need to make a profit for your business to be sustainable. Create a cashflow forecast for the first year of your business, anticipating what money will be coming in. Remember that the number of children in nursery can fluctuate throughout the year, so you might not be able to rely on consistently filled places in every season. Also think about whether you’re going to offer part-time, as well as full-time, places, and the difference in cost between these.

Finally, give some thought to how you’re going to collect your fees from parents. You need to ensure that fees are paid regularly and on time – if lots of parents pay you late, you can easily run out of money. It is best to set up standing orders or direct debits for this reason.

nursery business plan example uk

Insurance is included in your running costs, and it’s worth mentioning which insurance you should consider acquiring before you start your nursery. This includes:

  • Public liability insurance. This covers the cost of potential injury or sickness experienced by a member of the public (such as a child) on your premises – for example, staff administering non-prescribed medication, allergic reactions, and injuries on your play equipment.
  • Employer’s liability insurance. This covers the cost of potential injury or sickness experienced by a member of staff while on your premises. You will need to display your certificate of this insurance clearly in your nursery.
  • Professional indemnity insurance. This covers you if you give out expert advice to parents or children which turns out to be wrong.
  • Commercial property insurance. This covers your property (and potentially the contents of your property) in the event of fire, flood, or theft.
  • Business interruption insurance. This pays you a certain amount if your business has to close for a period of time.
  • Personal accident cover. If you are heavily involved in the business, personal accident cover is advisable – if you have an accident and can’t work, it will give you financial compensation during this time.

If you plan to organise trips, make sure that your insurance policies cover staff and children when they are away from the nursery premises.

nursery business plan example uk

Looking at all the costs you have in front of you, think about how you’re going to fund the business. You might have your own savings, or the potential of a ‘soft loan’ from family or friends. Your local authority might be able to provide you with some funding – look on their website or get in touch with them for more information. Additionally, you could acquire a loan, whether that is from the government (e.g. The Start Up Loans Company ), or from private equity funding sources.

Marketing and Branding

Marketing and branding are important parts of your business plan – they involve making your business known, and giving it its own style.

To create your own professional brand, consider speaking to a branding consultant. They can help you to design your logo, colour scheme, and uniform, along with giving you advice on the way you communicate, and policies. Your brand is important in showing potential customers why they should come to your nursery.

nursery business plan example uk

The next step, marketing your business, could involve:

  • Placing bold signs outside your premises , so that potential customers in your area notice you.
  • Creating a website , which includes your location, contact details, and the services you offer (at the very least). You might be able to create your website for free, but if you want lots of traffic to come to your site, it could be worth talking to an SEO specialist to help you get it listed on major search engines. It could also be worth working with a website designer, if you want to make it look extra professional – they should be able to consider SEO too.
  • Using social media accounts , including Facebook, Twitter, and Instagram. This helps to attract new customers – however, remember to get parents’ permission before posting pictures of children.
  • Leafleting and hanging banners . These methods are still effective!
  • Giving tours of the nursery, or holding an open day . This will create trust between you and your prospective customers, and show off your premises to everyone who is interested.

Marketing is never finished – it is a continuous process, because the children at your nursery will gradually grow up. Make the most of every marketing opportunity.

Now that you know what to write in your business plan, download the template – which you can edit on your computer or print out – using the button below:

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Now you know what you need to do, you might be wondering what you could do to make your nursery the best that it can be. In this section, we will provide you with some tips and advice for maximising the success of your business.

Choosing the Right Staff

It is extremely important to choose the right staff to work in any business, but particularly when you work with children and families. When choosing your staff, think about:

  • Whether they have patience and enjoy working around children . They will be required to do this day in, day out, so it’s key that they have the right attitude and share your vision.
  • Whether they are trained in Special Educational Needs and Disabilities (SEND) . Some children that pass through your nursery may have special needs, and you will need staff who can adequately provide care to them.
  • Whether they can manage behaviour effectively . Those who care for children might experience a wide range of behaviour incidents, and they need to be able to respond in a way that promotes the children’s welfare and development.
  • Their qualifications . At least half of your staff will need a Level 2 qualification that is relevant to the care or development of children – or be working towards this – and others should possess Level 3 qualifications. You can use the government tool to check whether someone’s qualifications are applicable to your setting. Additionally, consider taking on apprentices – they will have less experience, but will be rewarding and inexpensive to train.

nursery business plan example uk

Keep in mind that there are minimum staffing ratios for nurseries: there must be one adult to every three children under the age of two, 1:4 for those children aged two, and 1:8 for children aged three to seven.  Trainees or apprentices under the age of 17 do not count as an adult in your adult to child ratios. There must also be a minimum of two staff on duty at all times.

Pay and Training

Once you have hired your staff, paying them what they are worth and investing in training and development will ensure that you have high staff retention rates, as well as improving the quality of your nursery, morale, and productivity.

While all staff will require induction training within their first week – including safeguarding, food hygiene, and health and safety training – you should also think about courses they could take for their Continuing Professional Development (CPD).

For example, staff who have achieved Level 3 qualifications could be upskilled by completing Level 5 qualifications, allowing them to take on more managerial responsibilities in the nursery. Staff wanting to increase their skills might also take Challenging Behaviour Training . There are plenty of courses related to childcare and other aspects of the work environment that your staff could take, and you should ensure that they do complete extra training every year, as well as keeping on top of their compulsory safety training requirements.

nursery business plan example uk

Creating a Good Learning Environment

Your nursery school will not only provide childcare – it should also help children to develop their emotional, physical, social, and intellectual abilities. You should follow the Early Years Foundation Stage (EYFS) development structure, providing activities and play opportunities that support children’s:

  • Personal development
  • Language and communication
  • Mathematical development
  • Knowledge and understanding of the world
  • Physical development
  • Creative development.

You can use the EYFS handbook to help you to meet these goals.

Staff will need to support children in carrying out activities, listening to them and talking about what they are doing. They should also be able to teach children what is right and wrong, and encourage positive behaviour – for tips about how to do this in the early years, read our article .

In addition, you should have furniture, equipment, books, and toys that help to make your nursery an accessible and stimulating environment.

nursery business plan example uk

Working in Partnership with Parents and Carers

Finally, you can make sure you are running a good nursery business by working with parents and carers to meet children’s needs as best you can. This involves sharing relevant information with them, having an established complaints procedure, and valuing their feedback and opinions on your nursery. By building trust between you, you can ensure that they are satisfied, and your reputation will be great as a result.

We hope you’ve found our guidance on how to start a nursery business helpful, and we wish you luck if you plan to get started. If you need further information, don’t hesitate to get in touch with us to see how we could help – you might also find the range of courses we offer, alongside our other resources on the Hub , of use.

Further Resources:

  • Education Training Courses
  • How to Become an Early Years Practitioner
  • Promoting Positive Behaviour in Early Years: A Guide for Nurseries
  • How to Become a Childminder in Your Own Home
  • Professional Development in Early Years Education

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How to Write Your Nursery Business Plan (with Free Business Plan Template!)

Learning Environments

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If you are considering starting your own nursery, it is important that you know how to write a nursery business plan.

Providing the right setting for children that is safe, happy, and supportive is essential for encouraging learning and development.

Therefore, your nursery business plan should be centred around this, and take into account the wellbeing of children in every section.

Ultimately, your nursery is a business and must earn a profit in order to continue to run smoothly, so your financial plan must be factored in.

In this blog post we will outline the purpose of a nursery business plan and how to write each section from your company overview to important regulations.

If you are feeling overwhelmed by the task of starting your plan, we have included a free business plan template in this post, to help guide you through each step.

Download Nursery Business Plan Template

Just fill in the form below to get started

What Is the Purpose of a Nursery Business Plan

The purpose of this plan is to outline exactly how you are going to establish your nursery business, from marketing, to budget, to all of the legal requirements.

It must be well written and realistic, as this will help you focus your attention on the priorities of your business, and stay on track with your budget.

Your plan should hold all of the essential information about the business you are aiming to start up, and this should include sections such as:

  • A company overview
  • Services on offer
  • Market research
  • Team of staff
  • Location and premises
  • Financial plan
  • Regulations and Legalities

We have included each of these sections in more detail below to ensure you have everything covered.

Someone writing on a notepad using an orange pen

How to Write Your Nursery Business Plan

Within your nursery business plan, you will need to include everything there is to know about your nursery, as when caring for children, legalities, finances, qualifications, and health and safety must be in order.

This post will take you through each area step-by-step, in order to provide a solid foundation for your start-up.

Company Overview

At the beginning of your plan, giving a company overview can be beneficial to outline exactly what you want to achieve.

This is your opportunity to tell your story about why you are starting a nursery , including your motivations, experience, and qualifications.

It is important to provide a vision statement that highlights what success will look like for your business based on the SMART guidelines, which shows that your goals are:

In this section of your business plan, you should be clear about who will own and operate the business, how many staff members are on board, and the exact services you plan to offer.

Once you have explained the overarching goals of your business, it is the time to think about the specifics of what your nursery will offer to families.

This section should consider opening and closing times, as this is an important piece of information that could have an impact on how many places are filled.

You need to show that you are flexible as every family works to a different schedule. Therefore having strict opening hours of 10-3 for example, may limit the amount of parents who can drop their children off and pick them up on time.

It is also important to set out the age limits for your nursery by deciding on upper and lower age limits, in order to focus your care to a specific age group.

Considering ratios of children to staff and class size, will help to ensure you are providing an enabling environment for children to learn and progress.

It is essential to get the ratio right to ensure there are enough staff in your nursery to provide personalised support for each child, and to avoid any child feeling neglected.

Equally, this is the section of your plan where you can outline the extra activities and outings you can offer to extend children’s learning outside of the classroom, such as a trip to the local farm or zoo.

woman on computer

Market Research

Before you can begin to consider starting up your own nursery business, you need to find out if there is demand for a new nursery in your area.

It may be that there is already a fair amount of nurseries that are full all year round. Therefore starting a new nursery in the local area may not be beneficial to you or your community.

However, if there is a gap in the market it is a good idea to start considering the fees other nurseries charge and what they offer to parents in the area already.

This is where market research comes in useful, as you can ask the community and authorities what they think the area is lacking and see if you can fill the gap.

Once you have identified potential gaps you can come up with ideas for how your nursery will stand out from the rest. For example, you could offer different extra curricular activities such as swimming or trips to the park.

Considering fees is equally important when conducting market research, as it is important to decide on a fee that suits the community you are based in, catering to multiple family situations and incomes.

For example, some parents may require full time care for their child, whereas other parents may only be looking for a nursery that will provide care 2 or 3 mornings a week.

Location and Premises

The property you choose for your nursery will have a huge impact on whether your target market will choose you over another somewhere else.

For example, if your premises does not have access to outdoor and indoor environments to provide a range of learning activities you are already one step behind other nurseries.

The location you choose should be informed by the market research you have previously carried out, and you have the option to run your nursery from home, or to choose a new premises.

This decision will depend on how many children you wish to cater for at one time, as it’s essential to ensure you have the right size facility to care for every child individually .

In order to stay in line with government regulations of 3.5 square metres for every child under 2, and 2.3 square metres for every child aged 3-7, buying a new property is an appropriate choice.

However, this will impact your financial plan , which we will visit later in this post, as the bigger the premises, the higher the running costs.

When searching for premises, it is important to consider factors such as:

  • Location – consider your target audience and whether parents in the area will be attracted to your fees and offerings over other nurseries in the local area.
  • Access – it is important that your nursery is accessible to all families that choose you. Therefore when considering location, you should consider if the property has adequate parking facilities, has public transport links, and safe pedestrian crossings nearby.
  • Indoor and Outdoor Facilities – you must ensure you aren’t limiting the learning and development of children, thus your nursery must include enclosed grounds, kitchen and toilet facilities, a changing area, be well-lit, and have plenty of space.
  • Hazards – the premises should have minimal potential hazards, for example a property on one floor would be ideal as you can restrict access to the kitchen area.
  • Expansion – although you are only just starting up your nursery, it’s important to consider how your business will grow over time and keep in mind the possibility of future expansion to accommodate more children without moving location.

A calculator on a red notepad

Including a financial plan within your nursery business plan is key for any new start-up, as it helps to determine exactly how much money you will be spending and what you will be spending it on.

In order for your nursery to continue providing quality care for children, it’s essential that you are gaining a profit after your outgoing expenses.

First, you need to consider start-up costs, running costs, and investing in insurance as top priorities as it is then possible for you to determine where your remaining profit can be spent to better your business .

Your business costs can be split into two areas – start-up costs and running costs.

There are some costs that are unavoidable which we will outline below, however it is possible to reduce start-up costs by doing as much as you can yourself and by making savvy purchasing choices.

For example, instead of kitting out the facility with new toys, you could buy second-hand items such as books and furniture.

Start-up Costs

Start-up costs involve everything to do with the starting up of your business. This includes everything that you will spend before your nursery can open its doors, such as:

  • Setting up your nursery – this includes purchasing the property and any necessary conversions.
  • Including the correct facilities – for example indoor and outdoor play areas, a safe, clean kitchen, and a toilet and changing area.
  • Purchasing materials – this can be anything from furniture, toys, books, or materials for any planned activities.
  • Registering nursery – this involves maintaining payments to Ofsted to ensure you are a registered childcare business.
  • Marketing – this includes banners, your website, and anything that you use to advertise your business.
  • Staff training – to ensure that all staff are prepared and adequately trained before you start providing care.

Running Costs

Once your nursery business is up and running, there will be multiple monthly and annual costs that you will need to keep up with to continue providing quality child care, such as:

  • Rent or mortgage, and insurance payments
  • Staff wages and your salary
  • Utilities and maintenance
  • Food and disposable products
  • Cleaning services and products
  • Ongoing training

These costs need to be included in your financial plan, as you need to pay for them each month in order to keep your business running smoothly.

Once you have outlined your start-up and running costs, you will need to have a rough estimation of your profit goal based on your fees and the number of children in your care.

As you are starting a new business, you can’t always rely on the places in your nursery being consistently filled for the first couple of years, as it will take time to build up your reputation in the area.

Therefore, your fees must reflect this by charging an amount that suits parents, but also that suits you and your business too.

Comparing how much other nurseries in the local area charge can give you a good idea of how much to charge, as your business may offer more. As such, you can increase your prices…

Your business needs to be profitable to be able to continue supporting children’s learning and development. Therefore it’s useful to work out exactly how many places need to be filled to cover your expenses and gain a profit on top.

It is also important to consider the different costs attached to both part-time and full-time places at your nursery.

For example, by registering a large proportion of children who only require care in the mornings, or a few days a week, this may leave gaps where your nursery is consistently empty one day a week.

This may have a knock-on effect on your profit, as the less children you have in attendance the smaller your income will be.

Insurance is another priority for the financial section of your business plan, as insurance policies help to ensure that all children are safe.

This list may include policies such as:

  • Public liability insurance
  • Employers liability insurance
  • Professional Indemnity insurance
  • Commercial property insurance
  • Business interruption insurance
  • Personal accident cover

These policies help to cover you in the event of a property incident such as a flood where your business has significant damage and must be closed for a period of time. Furthermore, these policies cover you in the event of an injury or sickness in terms of your staff and children on site.

nursery practitioner and child dancing

Your marketing efforts must tell parents why they should choose your nursery over other options in the local area.

This section of your nursery business plan should outline how you are going to make your business known, and what style you are going to use to bring it to life.

You can use your market research to help pull your marketing plan together to ensure your branding is professional, and that your logo and colouring communicates your policies and brand identity.

Marketing can be carried out in various forms, such as:

  • Signage and leaflets – this type of marketing is easily noticeable as you can place banners around your local area and send leaflets with more detailed information about your nursery to families with young children.
  • Creating a website – you may wish to get the help of a SEO specialist and a web designer in order to get your website to the top of search pages, whilst providing all of the necessary information about your business.
  • Social media – digital marketing via social media is a great way to attract new customers and provide updates on your nursery.
  • Tours and open days – hosting open days and holding tours can show off your premises, giving your audience a feel for what your nursery can offer and can help to start building relationships with parents.


When running a business involving children it is important to demonstrate that you are aware of the fine print and legalities within your plan, so that when opening day arrives, all of your paperwork is filled out and up to date.

This includes documents such as:

  • Your nurseries registration with Ofsted
  • DBS checks for all staff
  • A health declaration booklet

This paperwork proves that your business complies with all standards necessary in areas such as staff training, health and safety, group size, staff and child ratios, facilities, and quality of education.

Equally, these documents confirm your suitability for opening a nursery , ensuring you have declared any health problems, criminal convictions, and your compliance with the national education standards.

As we have outlined above there are various sections to consider when creating your nursery business plan, from financial planning , to market research , all of which should be centred around providing the best care and education for children.

Do keep in mind that everything we’ve covered in this post today is just the beginning. You might later need to adapt your business plan to better suit your ambitions as you grow. Still, that’s not to say that what we have here isn’t going to help you build a solid foundation.

Writing a business plan and setting up your own nursery is a lot to think about, and that’s before the children have even arrived.

Learning Journals can help at this stage, as our platform can take care of storing parent and child data, recording observations, and tracking the progress of each and every child.

While you prioritise spending your time with your newly registered nursery class, the Learning Journals platform can put parents at ease by providing them with updates of how their child is settling into their new environment.

To learn more about how our platform can help, request a free demo today!

You'll have 30 days to see how our super simple system can help your team and engage your parents.

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Experience a live demo, get answers to your specific questions, and find out why Learning Journals is the right choice for your nursery.

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A Step-by-Step Guide to Writing Your Nursery Business Plan

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Running a nursery brings its own unique rewards: watching the children in your care grow and flourish as you offer them the very best early years education.

If you’ve got a passion for teaching and nurturing, along with the right qualifications, spending your days with a group of fun-loving toddlers will sound like a dream come true.

And with childcare costs and availability of suitable places an ongoing issue for working parents, demand will never drop off. So, in theory, it’s the perfect start-up opportunity.

But starting a nursery business isn’t all singing songs and sharing cuddles with small people. Along with the daily – and often dramatic – ups and downs of life as a toddler, you’ll have a complex business model to manage.

Rules and regulations, staff training, strategic planning, cashflow monitoring , customer service challenges, reputation management, ongoing marketing: they’ll all require your attention. And don’t forget, you need to do all this with the endless patience and energy every childcare professional must have each day.

Despite the hard work, working with young children as they start their exciting education journey is enormously satisfying. Get your nursery business plan in order from the start and you’ll have taken the first step towards opening the doors to your very first mini-customers.

Why Do I Need to Write A Business Plan?

starting a nursery business

In the private day nursery industry, it will inform your decisions as you progress through the set-up process. Do you need external investment? Do you need professional advice about the legalities? Do you know how to find and attract the parents of future classmates?

Without a business plan, you’ll be stumbling in the dark. And potential investors won’t take you seriously. Nail it now and get organised for the road ahead.

How to Start A Nursery Business

Step one: write your nursery business plan . This should follow a set structure, divided into clear, information-packed sections.

Here we outline a suggested template that will help you get your dreams out of your head and onto paper. Follow these steps and you’ll have a helpful, relevant document to keep you on track.

1. Executive Summary

This is a grand title for your introduction. Within it, you can summarise the top-line detail about your business including its name, your objectives and goals. This gives you, and anybody else who reads your plan, an overview of your intentions.

Make sure it’s clear, concise and gets to the point. Highlight what you can bring to the business to make it a success: think of it as an elevator pitch. Leave the nitty-gritty until later.

2. Company Overview

The company overview builds upon the executive summary to give further insight into your plans. This is your opportunity to tell your story about why you’re starting a nursery business . Include your motivation, experience and qualifications to sell yourself and your vision.

If you’ve never run a business before, imagine you’re already a successful entrepreneur and channel the confidence you know that will give you.

You’re seeking to impress and convince potential investors and partners to help them to understand your journey and to trust you.

Include a vision statement to really hammer home what success looks like for you. What do you envisage achieving in the next five years? How will you reach those goals?

When setting your goals, remember to follow the SMART guidelines and make them:

nursery business plan

  • Specific : e.g. to have 40 clients within six months
  • Measurable : e.g. to make a £25,000 profit in year two
  • Achievable : e.g. to break even within 12 months
  • Relevant : e.g. to gain an outstanding Ofsted rating
  • Timely : e.g. to have a team of 20 staff within 18 months

Outline who will own and operate the business, including its legal structure (for instance, have you set up a limited company?) and how many committed staff members you already have on board.

3. Services

This might seem obvious, but you need to outline all the services you’ll be covering. Every childcare provider will have a slightly different offering, so think carefully about:

  • Opening hours – how flexible can you be?
  • Age provision – specify your lower and upper age limit
  • Class sizes and ratios – how many children will be in each room? And how many staff?
  • Outings – are your premises close to a park, museum or library?
  • Activities – will you be offering services by external providers such as swimming lessons or foreign language sessions?

Remember that if you’re not in a position to offer everything on your wish list straight away, you can highlight your future development plans.

Also consider your USP. What will give your nursery that competitive edge you’ll need to thrive? Maybe your premises are located directly opposite a train station, simplifying pick up and drop off for busy parents who commute? Maybe your outdoor space has a wooded area you can market as a forest school?

Whatever makes you stand out from the childcare crowd, shout about it.

4. market research.

how to start a nursery business

The latest government figures , released in 2016, show that there are around 23,500 day care nurseries in the UK. The industry is worth £4 billion, employs over 188,000 people and provides childcare for 1.2 million children.

Since then, and due mainly to the introduction of the 30 hours free childcare policy, the number of childcare providers registered with Ofsted has fallen. Most of those leaving the market have been childminders facing unsurmountable financial pressures .

Among the private nursery market, 841 providers left the sector in the final quarter of 2017 and 772 joined. And while overall numbers may be falling, the number of spaces is actually rising.

Just as you’re doing now, those 772 people made the entrepreneurial leap: after, of course, writing a comprehensive nursery business plan .

You need to know about this competition: who’s already operating in your area, what services they offer and the demand for them, whether they’re sole traders or part of a larger chain etc. Don’t forget to consider playgroups and home-based childminders in this analysis.

Next, shift your attention to your target market. Naturally, they’re going to be parents, but beyond that they can differ widely. Some of those with two-year-olds will be entitled to more government support than others, others will be relying on childcare vouchers from their employers, some will only need a few mornings a week, others will need a full-time place.

Investigate the demographics of your area such as average wage, population levels and fluctuations, and birth rates. Every nugget of information can inform your plans and improve their accuracy.

Crucially, based on your research, you can start to gauge how much you can charge. Prices vary across the country with an average cost of £122.46 for 25 hours of childcare at a private day nursery. You can then factor this figure into your financial planning.

4. Finances

business finances

Before you can put a tick next to “write business plan”, there’s some serious number-crunching to do.

A solid business plan should be brimming with informative tables to guide you and reassure your potential investors that you’ve done your sums and are a safe bet. As a bare minimum, you should include a profit and loss forecast and cashflow forecast for the first three years, and a detailed start-up budget.

For a nursery, start-up costs will include equipment ranging from furniture, toys and books, outdoor play equipment, computers and tablets, first aid kits and marketing materials.

Beyond these, some of which will need to be regularly replaced, your highest ongoing cost will be staff wages which averages at 73% of all outgoings for private day nurseries. Add rent or mortgage payments, training and utilities costs, and your profit will quickly be dented.

Then detail your income stream based on estimated numbers and your projected fee structure. To avoid cashflow challenges, consider incorporating a Direct Debit facility for parents to pay their monthly fees. It’ll mean less hassle for them and more certainty for you: you’ll know exactly how much to expect in your business account and when.

Partnering with a Direct Debit bureau such as FastPay will ensure fees are paid upfront, avoiding the administrative headache of gathering payments by cash, cheque or debit card. Your cashflow and your customer satisfaction levels will thrive.

Finally, do you know where your funding is coming from? Be crystal clear in your nursery business plan about cash you’ve already secured (personal savings, soft loans from family and friends etc.) and whether extra capital is required from a business loan, sponsorship or business partner.

5. Premises

Before you start searching for premises, you need to establish how many children you’d ideally like to cater for. This will impact on the size of the property you need, as well as the number of staff and pricing.

Government regulations mean that you must allocate a minimum square footage per child. Calculate your requirements carefully based on these and also consider future expansion plans. The last thing you want is to be a huge hit with local parents and have capacity issues before you’re ready, and financially solvent, to move or extend.

In terms of location, your choice here should be informed by your market research. Will you be filling a gap or saturating an already struggling market?

Key considerations, beyond demand, include:

  • transport connections to make pick up and drop off as convenient as possible
  • sufficient car parking and outdoor space
  • kitchen and bathroom facilities
  • with an existing building, its suitability for conversion

Whether you’re renting or buying, adapting a building or moving into purpose-built premises, carefully consider every cost involved in every option.

6. sales and marketing.

nursery sales and marketing

Your marketing plan will form an important section of your business plan. Central to it should be a strategy for advertising your nursery before your planned opening date. From traditional methods such as hanging banners outside the building and leafleting local baby and toddler groups to embracing a full social media campaign, you need to go all out.

Tours of the nursery are also priceless. Parents will want to know exactly where they’re leaving their child and who will be caring for them: viewing your premises and meeting your staff will create trust. Whether you hold an open day or welcome potential clients in on a typical working day, this is your opportunity to showcase your facilities and share your personal approach to childcare.

Impressed parents will then spread the word to friends and family, giving you free exposure that could easily translate into clients.

Once you’re up and running, you’ll need to keep attracting clients as children grow and move on to start primary school. Your reputation will speak volumes here, so use this never-ending marketing job as added motivation to provide exemplary service and standards.

7. Rules and Regulations

rules and regulations

Your business plan must address that you fully understand these legalities and are taking the appropriate steps.

In order to look after children under the age of eight for more than two hours a day in England, you must be registered with Ofsted (the Office for Standards in Education). For a nursery, you’ll be signing up to the Early Years Register.

There are two preliminary steps:

  • a DBS check to assess your suitability based on any previous criminal convictions
  • completion of a health declaration booklet , in which you must list any health problems and medications you’re taking

Next, you’ll need to demonstrate to Ofsted that you’ll comply with all their strict standards. These cover a wide range of factors including:

  • staff training and vetting
  • child group size
  • staff-per-child ratios
  • space-per-child ratios
  • fire safety
  • bathroom facilities
  • health and safety
  • quality of education
  • welfare needs

This necessarily comprehensive registration process takes time so make sure you factor in at least six months for it to be finalised. You won’t be able to open without it.

Once you’re registered and up and running, Ofsted will assess your nursery at least once every three years to make sure it conforms with the national standards.

With the prospect of an Ofsted inspection on the horizon, you’ll have the added motivation to make your new nursery business a success.

Starting a nursery business is a slow but ultimately highly rewarding process. Prepare for a steady start and enjoy the momentum building as your reputation establishes itself.

A few years down the line, you could be revisiting your business plan with an eye towards the future. Expansion, perhaps with a second or third site, will require another impressive document to wow your investors.

For now, focus on getting its first incarnation right and you’ll soon be welcoming small, smiling faces through your doors.

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How to start a day nursery

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Written and reviewed by:

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Our independent reviews are funded in part by affiliate commissions, at no extra cost to our readers.

Without doubt, the biggest challenge currently facing UK nurseries is recruitment. Shortages of passionate, qualified early years professionals have forced many providers to close. Between 2021 and 2022, the number of childcare companies in the UK dropped by 4,000.

Thankfully, government subsidies will help to ease pressure on businesses this year. From September, the average hourly rate paid to providers will increase by 30% to around £8 per hour. This is to support Whitehall's goal of offering 30 hours of free childcare support per week for toddlers by 2025.

The support is lightweight. Combined with rising energy bills and a poor economy, it's an uncertain time to start a day nursery. But it's also a golden opportunity if done right.

Demand for the service remains has never been higher, and savvy business-starters who can offer an affordable provision to parents will hit the jackpot. By example, childminder startup, has experienced 150% growth since 2022.

This article will give you everything you need for a nursery business plan . Read on to learn about the qualifications and experience your staff will need, how to choose a premises, and building your nursery brand.

There's a huge amount of planning that needs to go into launching a nursery. Thankfully, one area which needn't cause undue stress is creating a website to promote your business. Thanks to  modern templates like the one below , you can create one of your own in under an hour.

Nursery Website Template

At, we test and rate website builder tools, and we've identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for nurseries  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it's completely  free to try  for yourself.

Starting a day nursery: a step by step guide

  • Step 1 - Make sure it’s the right decision for you
  • Step 2 - Make sure you have the qualifications and experience
  • Step 3 - Choose the type of day nursery you want to start
  • Step 4 - Check whether it’s financially viable
  • Step 5 - Research regulations and legal cover
  • Step 6 - Research business premises
  • Step 7 - Put together a business plan
  • Step 8 - Build your day nursery brand
  • Step 9 - Tick off your checklist

At, we're here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

Should you start a day nursery now?

Attitudes have changed towards working and bringing up children. According to the Institute of Fiscal studies, 78% of mothers aged 25-34 are now in employment, compared to just 50% in the 1970s.

Undoubtedly, government schemes – including free education and childcare for two year olds, and 15 or 30 free hours of childcare for three to four year olds – are helping parents to continue working through early years parenthood.

Figures also show that 69% of mothers believe that reliable childcare is their ticket back to work, with 40% believing good quality childcare is the key – even more reason why now is a great time to start a day nursery. And to start one that’ll cause waves in the community, too.

Amy Catlow is the director of publishing at a large marketing firm in London. She has two young daughters in nursery and explains to us just how valuable it is for them to attend:

“Both of my daughters attend a local children's centre nursery. The social education is fantastic, and they are excited to go everyday. They spend their days in large rooms designed for play, with a diverse group of children their own age, and a wide variety of toys to explore and interact with. 

I love the nursery community and I feel so grateful and indebted to all the staff. My children are confident talking to adults, and really benefit from the love and care from so many people. 

It’s not just the demand for high quality care that’s changing. While starting a nursery is still heavily regulated with licenses, laws, and qualification standards, finding a premises has just become easier.

With Covid-19 laying waste to the struggling high streets, the government has accelerated its overhaul of the building use category system , enabling people to convert retail, restaurant and even office units into day nursery space without the need to apply for change of use .

So, do you have what it takes to start a nursery?

Having the right qualifications and experience

Technically, you don’t need to have any qualifications or experience to start a nursery if your intent is to run it as your business, rather than be involved in the teaching and day to day management of the nursery.

It’s always good to clue yourself up on the ins and outs of owning a business if you’re going to remain behind the scenes. However, if you do intend to get directly involved with teaching the children, there are some qualifications and experience you’ll need to have.

For example, the manager of a nursery needs to have been a nursery nurse for at least two years, have held a supervisory role for one to two years, and hold a relevant nursery qualification. Take a look at this early years career progression pathway by City and Guilds to see which route you may need to take to start and manage a day nursery.

Different types of day nursery

There are three types of day nursery.

  • Private – a privately or independently owned day nursery
  • Not-for-profit – a day nursery usually attached to a community centre or religious organisation
  • State-funded – attached to a school

This article will focus purely on starting private and independently owned day nurseries and not-for-profit nurseries.

So what’s the difference between a private and independently owned nursery and a not-for-profit nursery?

Actually – not much. Whether you’re starting a nursery to turn a profit or to give back to the community, you’ll need to adhere to the same rules and regulations when it comes to standards.

The only difference is running a day nursery on a not-for-profit basis means all of the profits go back into the organisation that runs it – be it a religious community or community centre.

Private day nurseries run on a profit basis with shareholders being able to take dividends – just like with any other regular business.

Going out on your own or franchising

You’ll also need to decide whether you want to go out on your own or become part of a franchise. There are pros and cons to both. Let’s have a quick look:

Starting a day nursery costs

So you know whether you’re going to start a private day nursery or a community run not-for-profit nursery. But how much is it going to cost to set it all up?

Well, it’s almost impossible to tell you exactly how much a day nursery will cost to set up, as the price is dependent on so many factors, including how many children you’re planning on catering to, the size of your premises, and the equipment you’re looking to install.

Stone Eden Nursery is a franchise group and has a helpful breakdown of costs for a typical 32 place set up:

While this may seem expensive, it’s likely that you’d be able to start a nursery for much less. For example, you can choose whether or not it’s necessary to outsource marketing, or whether it’s necessary to install brand new equipment.

According to the listings on, you can actually purchase an up and running, profitable day nursery with 54 spaces from around £50,000.

In addition to the set up costs, you’ll need to look at on-going costs, too. This will include:

  • Premises rental cost – dependent on area and square footage
  • Staffing costs – the average nursery salary is around £21,000
  • Utilities cost – check local council tax rates, water, and gas and electric rates
  • Insurance – make sure you’re fully covered
  • Cleaning – the cost of cleaners for the nursery and food preparation areas

Make sure you take into account the cost of registering your nursery. This will differ depending on which UK country your premises is located. In England, OFSTED charges  £220 to register a day nursery with its Early Years Register.

Day nursery licenses and regulations

The regulations, licenses, and legal cover that you require for starting a day nursery differ depending on whether you’re going to be based in England, Wales, Scotland, or Northern Ireland.

But there are some core regulations that stay the same. These are:

Registering your day nursery 

No matter where you’re starting your day nursery in the UK, you’ll need to register your day nursery with your country’s specific regulator. And you must make sure that your nursery meets the standards of the Early Years Foundation Stage (EYFS) framework  before you approach the relevant authority.

It’s best to take a look at the registration process for your country early on, as there’s usually some pre-registration boxes to be ticked, including DBS checks and health checks.

The regulators for the different UK countries are:

For England – this is Ofsted (Office For Standards in Education). Take a look at the Ofsted nursery registration page for more information

For Wales – this is CSSIW (Care and Social Services Inspectorate Wales). Take a look at the page on starting a nursery in Wales for more information

For Scotland – this is the Care Inspectorate. Take a look at the Care Inspectorate nursery registration page for more information

For Northern Ireland – this is the Health and Social Services Board (HSSB). Take a look at the page on day care registration in Northern Ireland  for more information

Taking out the relevant day nursery insurance cover

You’ll also need to make sure you’re fully covered for things like public liability and sickness.

The full list includes:

  • Public liability insurance – to cover the cost of possible injury or sickness happening to the public while on your premises
  • Employer’s liability insurance – to cover the cost of injury and sickness happening to staff while on premises
  • Professional indemnity insurance – to cover you if you give out the wrong advice to parents or children
  • Commercial property insurance – to cover the your property in the event of flooding, fire, and theft

You should make sure that your insurance policies cover staff and children away from the nursery, too – in the event of a nursery trip.

It may also be a good idea to look at business interruption insurance , which will cover you if your business has to close for a certain period of time.

Food safety and hygiene

Adhering to food safety and hygiene standards is essential. If you’re responsible for managing your day nursery’s food handling and preparation, you’ll need to have qualifications as noted by the Food Standards Agency (FSA).

In fact, the FSA goes one step further in helping you to adhere to the specific requirements with its Safer food, better businesses pack for childminders. It’ll tell you all about the necessary hygiene regulations needed for storing, cooking, and chilling food in a day nursery context.

Health and safety requirements

There are strict health and safety requirements that you’ll need to adhere to, too. And you’ll need to put a health and safety policy in place to demonstrate how you’ll conduct things like:

  • Risk assessments
  • Fire safety and risk
  • Reporting injuries
  • Evacuation procedures
  • Maintenance
  • Storing and handling hazardous substances

Staffing regulations

There are some pretty strict regulations that you need to follow when it comes to staffing. Not only does there need to be a certain number of staff present per child, there also needs to be a specific number of staff with specific qualifications. Here’s what we know:

At least half of your staff should hold a level two nursery qualification or above. The government has a  handy tool which you can use to look up whether a potential staff member has the right qualifications for the role.

For lots more information on this crucial but complex area, check out the Twinkl guide to EYFS ratios .

Expert Insight – Karen Clince, Tigers Childcare

How to start a day nursery - Karen Clince, Tigers Childcare

Of course, staffing is about more than just getting the right numbers in.

In fact, Karen Clince – who has grown Tigers Childcare from taking care of five children in a disused school classroom to a thriving multinational business – says that staff satisfaction and retention is the single biggest challenge in running a nursery:

“Staffing has such a multifaceted knock-on effect on all parts of providing a high-quality service. Nursery staff pay and conditions are generally poor for the important role people are employed in, and this leads to high turnover and burn out among colleagues.

“In order to provide high-quality services, you need the same colleagues to work with children and provide continuity of care. Your staff retention therefore impacts quality, and in turn children’s experiences and parent satisfaction. The impact on this is that occupancy numbers will be affected, and that has a huge impact on your finances. And so, the most important investment is always in your team. It is about looking after the good colleagues, and making sure poor practice is not allowed.”

Karen Clince also argues that nursery owners have a responsibility to lobby for better pay and conditions, and to increase wages when you can – pointing out that Tigers Childcare have introduced benefits like funded education, financial reward schemes and employee assistance programmes as they have grown.

Finding a day nursery premises

So you know roughly how many places you plan to offer. Now it’s time to consider your day nursery premises.

As it happens, there are some strict rules around that, too. Here are the square metres of space you’re required to have per child according to age.

While the government has undoubtedly made it easier for prospective day nursery owners to find and convert an existing building, there is a checklist that you should follow when looking for the right property. 

When choosing a day nursery building, consider the following:

  • Is it in an area that covers your target market (are there plenty of family homes or lots of schools)?
  • Is there a demand for another nursery? Are existing nurseries in the area full?
  • Is the nursery going to be attached to a community centre or religious community and will it be nearby?
  • Is there parking outside or nearby?
  • What are the transport links like?
  • Does it offer reasonable outside space for a playground?
  • Is it in a safe neighbourhood?
  • Is there the potential to install all the necessary facilities, including toilets and changing rooms

Once you’ve found a building that fits the bill, consider consulting an early years architect to see how much it’ll cost to convert it into a day nursery. You’ll then have a better idea of how much you’ll need to borrow from a lender.

Coming up with a business plan

So now you know how much you need to consider before you can even start planning your day nursery business. If you fit the bill, or you’re prepared to do what it takes to fit the bill, now’s the time to create an in-depth business plan.

A business plan will help you to stay on track, remain in budget, and secure that all important funding.

It’s worth spending time on your business plan – a few notes on a piece of paper really won’t suffice. It’s good to walk into a business loan meeting with an entire folder of information so you can really instil confidence in your prospective lender.

To learn more about what a business plan should include, check out the Startups guide to creating a business plan .

Building your day nursery brand

Branding is more than just a logo and a colour scheme. It’s how you want to project your business to your audience. From the way you communicate with parents to choosing your preferred teaching methods, your branding must embody your entire business.

To build a brand from scratch is hard. It’s best to sit down with a branding consultant, who’ll be able to turn your vision into something real. You’ll then be able to emulate your branding across your communications, website, building, uniform, and policies.

Once you have your brand, it’s time to build brand awareness – that’s where social media and websites come in handy. There are, however, rules and regulations around posting images featuring the children that attend your day nursery online.

These include:

  • You must get permission from the parent to take a picture of the child
  • You can’t name the child on your social media or website
  • You must communicate a clear policy with the parents – eg. no tagging on Facebook

According to marketing experts, social media is an essential tool to building a community. If you can get people having positive public discussions about your day nursery, it’ll undoubtedly have a good impact on the demand for your spaces.

Creating a day nursery website

Creating a day nursery website can be as cheap or as expensive as you wish, with website builders including Squarespace and Wix offering attractive local business templates for as little as £15/month. All you need is high resolution images of your nursery and quality content.

Alternatively, you can work with a website designer, who’ll create your day nursery website for you. Website designers can be expensive but are a good option if you don’t have much free time or don’t feel comfortable enough creating your own.

Often, a website designer will work with copywriting agencies, meaning you won’t need to worry about creating your own content. And all of the content will be optimised for search engines, so you’ll have a better chance of ranking higher on Google.

Check out our page on creating a business website for more information. You might also want to create a business email while you're at it, this can help with communication and is a strong trust signal.

Starting a day nursery: the checklist

So there you have it. It’s safe to say that a day nursery isn’t the easiest of businesses to start but there are shortcuts in the forms of buying an existing nursery or approaching a franchise group. 

To recap, here’s a list of the steps you’ll need to take when thinking about starting a day nursery:

  • Decide on whether you’re running a day nursery as a business or whether you want to be involved in the day-to-day management. If you want to be involved in the day-to-day management, you’ll need to have nursery experience and qualifications.
  • Decide on the type of day nursery you’re looking to start. Are you starting one to help fund a local community centre or religious group? Do you want to be completely independent, or would you rather become part of an established brand (franchisee)?
  • Look at all the costs involved to see whether it’s financially viable – that’ll give you an idea of the kind of business loan you’re looking at, too. Don’t forget that in addition to set up costs, and brand establishment, you’ll need cash in the bank for salaries.
  • Take a look at the rules and regulations involved. That’ll give you an idea of the type of building you’re going to need and the level of work that may need to be carried out on it. Work out how many staff members you need for the number of places offered.
  • Come up with a business plan that covers everything you’ve had to consider so far, including justifying the need for the nursery, why you’re qualified to start one, how many places you want to give, staff costs, and how you’re going to make money.
  • Once you’ve secured financial investment, take a look at suitable buildings within your desired area. Make sure they have the required square footage, and the potential to install essentials like a kitchen, toilet, and changing space.
  • Build a brand and start creating conversation around your day nursery. Get on social media, build a website, and start spreading the reasons why parents should be entrusting their children into your care. is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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How to start a nursery business

Do you have a background in childcare and fancy running your own nursery? This comprehensive guide will explain everything you’ve ever wanted to know about how to start a nursery business. 

Why consider starting a nursery?

Running your own nursery business can be a highly rewarding experience. After all, you’ll be heavily involved in children’s early development and can help to give them a good start in life. 

Demand for new childcare settings is also high. With more parents going back to work after having a baby, and as new government schemes are introduced to help parents with costs, demand for nurseries is going up all the time. 

Of course, starting your own business also means you get to be your own boss, so once your business is up and running, you might have more flexibility in choosing your working hours. 

So, if you have a love for children’s learning and development, you’re good at managing people and you’re capable of managing everything from looking after children to marketing to bookkeeping, starting a nursery could be the perfect solution.

Are nurseries profitable?

Running a nursery can be profitable but it needs to be managed well. Startup and running costs can be very high which means you need to find ways to keep costs down and boost your profit margin .

Your nursery premises will likely be your biggest expenditure and prices will vary depending on your location and the type of premises you’re buying or renting. You might want to buy a building and convert it into a nursery, for example, or you could buy land and build your nursery from scratch. Buying an existing nursery business is another option. 

On top of this, you need to factor in any necessary renovation costs as well as all the equipment you need to purchase for your nursery. You’ll need appropriate toys and equipment for different age groups and it’s best to buy this new rather than second-hand as safety will be a top priority. Overall, you could be looking at costs of between £10,000 and £100,000, depending on the size of your business.

Other costs to think about include staffing costs, running costs such as energy bills, water and taxes, and food and ingredients. You’ll also need to spend money on marketing and advertising.  

To help you assess whether your nursery will be profitable, weigh up all these costs and then decide how much you’re going to charge families. Take a look at other nurseries’ fees to help you. You could charge more if you plan to offer other services such as nappies and baby wipes, snacks, meals and days out. You also need to think about how many children you will need to have at the nursery to cover your costs and make sure you’re profitable. 

It’s best to create a cash flow forecast for the first year of your business and predict how much money you’ll have coming in. Also think about whether you will offer both full-time and part-time places and what you policy will be for late payments.

It can be sensible to speak to an accountant or an Early Years specialist who will be able to advise you on all the costs you need to consider and make sure you’re taking a realistic approach to getting your business started. 

What are the steps to opening a nursery?

If you’ve done your research and decided to pursue your dream of opening a nursery, take a look at the steps below to get your business up and running:

Registering your day nursery 

Your first step is to register your day nursery. The correct regulator will depend on whether you live in England, Scotland, Wales or Northern Ireland. But before you go ahead, make sure your nursery meets the standards of the Early Years Foundation Stage (EYFS) framework . You might also require DBS checks and health checks. 

  • In England, you must register with Ofsted .
  • In Scotland, you need to register with the Care Inspectorate .
  • In Wales, you need to register with the Care and Social Services Inspectorate Wales (CSSIW).
  • In Northern Ireland, you must register with your local Health and Social Services Board . 

Taking out the relevant day nursery insurance cover

Another important part of running a day nursery is making sure you have the correct insurance in place. Policies you’ll need include:

  • Public liability insurance : This covers you against costs resulting from third party injury or damage to property while they are on your premises. This could include a child becoming ill due to staff administering non-prescribed medication or a child injuring themselves on play equipment. 
  • Employer’s liability insurance : This pays out if an employee becomes ill or injured as a result of the work they do for you. 
  • Professional indemnity insurance : This covers you in the event you give out the wrong advice to parents or children. It can cover legal fees and compensation payments. 
  • Commercial property insurance: This pays out if your property is damaged by flooding, fire and theft. 
  • Business interruption insurance: This covers you for loss of income if your nursery has to shut for a period of time due to an unexpected event such as flood or fire damage. 
  • Personal accident insurance: This pays out if you have an accident and cannot work for a set time. 

You also need to make sure your insurance covers staff and children when they are away from the premises – for example, if you’re on a nursery trip. 

Food safety and hygiene

It’s essential that you follow the correct food safety and hygiene standards. If you’ll be responsible for preparing and handling the nursery’s meals and snacks, you will need to have the correct qualifications as stated by the Food Standards Agency (FSA). Your nursery needs to have a food hygiene policy that adheres to Ofsted food hygiene requirements.  

It’s also the responsibility of the nursery manager to make sure all members of staff receive full training around food hygiene guidelines. 

You can find out more about food safety requirements on the website . There is also a food safety management pack that you can download that will tell you about the regulations needed for storing, cooking and chilling food.

Health and safety requirements

You’ll need to adhere to strict health and safety requirements as well. As part of this, you must have health and safety policies in place that cover how you will deal with:

  • Risk assessments
  • Evaluation procedures
  • Maintenance
  • Storing and handling hazardous substances
  • Fire safety 
  • Risks and reporting injuries

These policies will need to be shared with staff and nursery families.

The Health and Safety Work Act 1974 outlines the nursery manager’s responsibility to identify possible risks within the nursery setting and use risk assessments to eliminate that risk. Take a look at section three of the Early Years Foundation Stage statutory framework which will set out exactly what you’re expected to do to ensure children are safeguarded, the staff working with the children are suitable and safe to do so, good health is promoted, and all mandatory policies are accessible.

Some points to be aware of include:

  • there must be an adequate number of toilets and hand basins available;
  • child and adult toilet facilities must be separate;
  • children must have access to an outdoor play area or outdoor activities must be planned and taken daily;
  • you must meet set indoor space requirements;
  • staff must only release children into the care of individuals who have been notified to the provider by the parent.

At least one member of staff on the premises must have paediatric first aid training at all times.

Staffing regulations

Make sure you fully understand how many staff you need to have present in your nursery per child (this will depend on their age), as well as the number of staff you need to have with specific qualifications.

For children aged under two, you need:

  • at least one member of staff for every three children;
  • at least one member of staff with a full and relevant level 3 qualification and experience working with this age group;
  • at least half of all other staff members with a full and relevant qualification of at least level 2;
  • at least half of all other staff members with training specifically relating to the care of babies;
  • the person in charge of an under-twos room must be suitably experienced in working with this age group.

For children aged two you need:

  • at least one member of staff for every four children (this is changing to every five children from September 2023);
  • at least one member of staff with a full and relevant level 3 qualification and experience in working with this age group;
  • at least half of all other staff members with a full and relevant qualification of at least level 2.

For children aged three and over, you need:

  • at least one member of staff for every eight children;

Note that if a member of staff has a suitable level 6 qualification and they work directly with the children, you can have at least one member of staff for every 13 children when they are aged three and over. 

Securing funding for your nursery

Unless you have a stash of cash hidden away somewhere, it’s likely you’ll need to apply for funding to get your nursery up and running. It’s important that you have a business plan ready to help you secure this funding. Your business plan should include:

  • a market analysis; 
  • financial projections;
  • your marketing and sales strategy;
  • how much you plan to charge customers;
  • your management team, including the key players involved and what qualifications they have. 

Once you have this ready, you can start exploring the different funding options. As a starting point, it’s worth looking into whether you qualify for a startup loan . These loans are designed specifically to help new businesses launch and expand and can offer a lump sum of up to £25,000. You then repay this money in monthly instalments, with interest added. 

To qualify, your business must have been trading for no more than 36 months. You must be able to prove that you were unable to obtain a loan from alternative sources and that you can afford the repayments. 

If you can’t get a startup loan, you might be able to get a business loan from a high-street bank or online lender. These work in a similar way as you borrow a lump sum and then repay it over a set term in monthly instalments. 

It can also be worth checking whether you are eligible for a business grant . This is a sum of money awarded to a business to help it grow and develop. Business grants are usually awarded by the government or other companies and don’t need to be repaid. There are hundreds of different grants you can apply for across the UK, but they are often targeted to specific industries, community groups or types of business, so you’ll need to check whether you qualify. 

You might also want to try your luck with crowdfunding. This could work well if your local area desperately needs a new nursery. It works by letting you collect money from a large number of people via online platforms like Seedrs , Crowdfunder and Crowdcube . Depending on the type of crowdfunding you use, these people might get a share in the company or a reward in exchange for their investment. 

Finally, a business credit card could be a useful option for buying new equipment for the nursery or covering unexpected expenses. You can borrow flexibly up to your agreed credit limit and then repay the balance in flexible monthly instalments, with interest usually added.

Get started with Swoop

When deciding which finance option is best for your nursery, you’ll need to think about how much funding you actually need, taking into account how much it will cost to get your business up and running as well as your operating costs for the coming year. 

If you’re not sure which funding option is right for you, the team of experts at Swoop will be happy to talk through your options and help you find the best solution. Get in touch today .


Swoop was amazing! I was looking for refinancing and they were straight onto finding me the best possible option. I would highly recommend them.

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Owner, F45 Cambridge

nursery business plan example uk

Rachel has been writing about finance and consumer affairs for over a decade, helping people to get to grips with their finances and cut through the jargon. She's written for a range of websites and national newspapers including MoneySuperMarket, Money to the Masses, Forbes UK, and Mail on Sunday. Rachel has covered almost every financial topic, from car insurance and credit cards, to business bank accounts and mortgages.

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Starting a Plant Nursery Business in the United Kingdom

  • Starting a Plant Nursery Business…

Beginner’s Guide on Starting a Plant Nursery Business in the United Kingdom

Starting a Plant Nursery Business in the United Kingdom

Starting a plant nursery business in the UK can be as simple as finding a place that sells plants or looking for a community of people who want to plant trees and plants on their properties. There are many different types of nursery chains, and each has various regulations that need to be followed. If you plan to set up a garden in your front garden, it is best to look into a legal garden center first. This will help you understand what type of plants are permitted and what conditions you will need to meet to set up an adequate legal grow room.

You can choose to work for yourself or join an existing nursery business if you are passionate about starting one. Many new nursery owners start their businesses to provide additional income to their families. Choosing the right career path requires research, but once you have narrowed your interest, look for information on local job fairs and open houses. This article will help you with company incorporation services in the UK .

What Is a Plant Nursery Business?

A plant nursery is a business that specializes in growing, caring for, and selling various types of plants, including medicinal and ornamental. There are three basic types of nurseries: garden centers specializing in hardy indoor plants, specialty shops specializing in outdoor plants, and those that specialize in indoor plants only.

All of these places offer different types of plants and advice on how best to care for them. Nurseries can be run by professionals or business owners with no formal education in plant care. Most of them still rely on conventional tactics (such as digging up the garden and putting in plants) to produce quality products. However, a few have developed new, more efficient ways that offer many benefits.

It is a business that grows plants for profit. Most people assume nursery businesses only grow plants for pets, but that’s not always the case. Some people grow plants for personal use, while others may profit from the services that they provide. Regardless of what type of industry you fall under, with the correct information, you can start your nursery and supply customers’ needs in your community with high-quality, confidently designed, and environmentally-friendly plants.

Growing plants is a fun and rewarding business operation. However, each business owner will want to customize their garden to meet the specific needs of their property. Knowing what inputs are needed will help a plant nursery owner or grower select the best plant for the job.

Requirements for a Plant Nursery Business

Starting a plant nursery business is relatively easy as there are almost no requirements for creating your place. It is better if you already have some experience in a plant nursery, making the nursery much easier. This nursery business can be started with just about any size plot of land that you choose, provided you provide equal amounts of water, fertilizer, and potting soil for all your plants.

The nursery business is becoming a popular business model for owners who want to earn extra income from the position. This model work is that the owner can focus on taking care of daily business affairs and maintaining a very close relationship with their employees. While the workers are at the nursery, they are not doing manual work but executing the orders given by the owner.

The nature of this industry relies on manual labor. Therefore, the owner has more control over the ongoing profits than other business models that rely heavily on machinery or plant production (automation) to produce goods and services. These tasks are covered by 3E Accounting and will help you with company registration in the UK .

The land is a primary requirement in most nursery businesses since it provides comfort during working hours and protects the plants against adverse weather conditions. The best land will have an adequate drainage system, so that excess water does not infiltrate the ground and kill the plants, nor will it result in soil erosion. It should also be free from weeds and pests. Otherwise, it will spread among the plants and thus threaten their growth.

The following requirement is a water supply and disposal system. This means that the water is collected from tanks or wells and must be protected from contamination.

Suppose you want to take on an endeavor that involves the purchase and transportation of certain materials. It requires some planning, but harvesting industry-leading crops takes little time compared to many other farm tasks. The best way to break into the gardening industry is by acquiring basic know-how about farming from a reliable source.

The sand you will need for nursery business must be silt, clay, fine sand, or fine gravel. All these will be necessary for planting beautiful and healthy woodlands that grew a large number of seedlings.

Sand is essential to the nursery industry as it helps to ensure that all seeds have easily accessible water places and adequate airflow. It will help prevent the spread of deadly weed seeds that can quickly sweep across an area.

Simple Tools

There could be a great advantage if you prefer a more straightforward and quicker way of getting your crop. But you have to realize that this might affect your decision to choose a nursery business. Some may have a wide range of products and tools, but you will have to narrow down your choices if one product does not fulfill your requirements.

Scope of Nursery Business

The nursery business isn’t just about selling plants. It is also about creating new ways for the customer to interact with plants. It is about exploring possibilities that haven’t been thought about before. Such exploration begins with knowledge, which creates business opportunities.

As an entrepreneur, you need to explore how you can apply more modern solutions to your business. This means thinking outside the box and looking for different solutions that might be suitable for your business exactly as they are at the moment.

The nursery business has various aspects, including harvesting, growing, packaging, marketing, and selling products. Individual gardens could do the harvesting and farming. However, marketing and selling are dependent on the existence of a specific market for the products. Historically, nursery businesses have been associated with caring for young people and young families.

Plant Nursery Legal Issues

Whether you like it or not, legal issues surrounding the production, distribution, and sale of nursery products are already creating headaches for growers and distributors. There is little doubt that the growing industry will continue to be affected by these issues in the future. Managing the legal issues of any business is a very tiring job. To relieve you of some of this paperwork, you may look for a UK corporate service provider.

It is essential for you to remain aware of these legal issues. You must have adequate backup measures in place should regulation or legislation change in your area. Some of these are:

Plant Passporting and Marketing Requirements

These are essential for being an exporter of high-value fresh and food biotechnology. It provides companies with a secure channel of communication with their markets and allows for re-exporting products regardless of quarantine or importation laws. This enables exporters to remain competitive in global markets, becoming increasingly sophisticated in food safety, security, and environmental protection.

Plant Health Propagation Scheme Certification

PHPS is an exciting new initiative that will see all UK parts supported by an authorized plant health services provider. The new network will ensure a consistent, high level of service across all aspects of the UK, reducing costs and improving quality of life while making it easier for people to get the assistance they need. The new PHPS network will make it easier for anybody to get their plant pests controlled and grow more healthy, delicious fruit and veg for their consumption.

Water Abstraction License

The purpose of this license is to protect and conserve water resources for the use and benefit of the people, communities, and businesses that utilize them. For residential and commercial lawn watering, a client may obtain a license for up to three months from the date of abstraction. Commercial and industrial users may obtain a permit for up to twelve months from the date of conception for larger-scale projects. The client will pay for the entire length of the license at one time.

Pesticide Spraying

Anyone using a plant protection product authorized for professional use must hold a Specified Certificate. This is awarded following specific training, such as the Level 2 Safe Use of Pesticides award. City & Guilds Land Based Services issue-specific Certificates. You can find out more about the horticultural use of pesticides on the Pesticides website . Ofwat accredits pesticides NA.

AHDB Horticulture Levy

Farmers and gardeners pay horticultural levies in addition to others involved in the various stages of production. This levy system supports the ongoing and sustainable use of our natural heritage resources such as water, air, and sunlight. Payments are collected through a system of simple use cards, which can be purchased at participating retail outlets across the nation. The retail outlets that are part of this system include supermarkets, convenience stores, drug stores, and supermarkets of specific types.

Starting a Plant Nursery Business in the United Kingdom

If this guide seems too complicated for you, 3E Accounting is willing to be at your service. Contact us .


Setting up a Day Nursery Business

All you need to know about starting and running your business.

In this article

What is a Day Nursery Business?

Although the number of children and infants attending day nurseries in the UK fell during the Covid-19 pandemic, figures are once again on the rise. More than 800,000 children currently attend early years settings, such as nurseries, nursery schools and childminders.

The most recent figures from Statista show that there are more than 72,000 early years settings in the UK, with approximately 3.78 million children younger than five years old that are eligible to attend.

A day nursery is the most well-known of early years settings. A day nursery is an early years setting that cares for children between 6 weeks and 5 years old. When setting up your day nursery business, you can choose the age of the children you are willing to care for.

A day nursery can be run by the local authority, by a volunteer group, be attached to a local primary school (this type of nursery is known as a nursery school) or be run privately. As you are setting up a day nursery business, your nursery will likely be run privately.

Day nurseries usually open for longer hours compared to nursery schools, as they aim to cater for working parents. The majority of day nurseries in the UK are open between 7am and 8am. They usually close between 5:30pm and 6:30pm.

The typical operating days are Monday–Friday. Unlike nursery schools which usually open during term time and close during the school holidays, a day nursery usually only closes for bank holidays and a Christmas break.

Regardless of the type of nursery you run, you will need to ensure your learning curriculum is in line with the curriculum provided by the relevant governing body.

The governing body varies, depending on which country of the UK your business is based:

  • England: The Early Years Foundation Stage (EYFS) curriculum.
  • Wales: The Foundation Phase Curriculum.
  • Scotland: The Early Years Framework (EYF).
  • Northern Ireland: The Curricular Guidance for Pre-School Education.

When setting up a day nursery business, you will need to ensure you design your business and your premises in a way that makes it safe, engaging and conducive to the children’s development. Although you will want to ensure you maximise your profits, you will still need to ensure your business is child-centred.

When starting up a day nursery business, there are certain criteria you will need to fulfil:

  • Consider ways to encourage physical, social, emotional and educational development.
  • Implement a keyworker system whereby each child is assigned a keyworker, especially younger children.
  • Ensure separate rooms or areas for children of different ages.
  • Ensure toys, equipment and facilities are appropriate, safe, bright and engaging.
  • Employ staff who are qualified and experienced.

Day nurseries usually charge parents per day, although you may choose to charge per hour. You will likely provide all meals (breakfast, lunch and dinner), snacks and drinks. Provisions should be made for any child that has allergies or follows a special diet, such as halal, vegetarian or vegan. Meal costs will be included in your pricing.

If you are considering starting up a day nursery business, you should ensure you have the necessary skills to make your business succeed. If you don’t plan to be involved in caring for or teaching the children, you may not require any specific qualifications or experience.

However, having the relevant training and experiences may make your business more attractive to prospective parents. Having an understanding of the curriculum, a passion for education and a love for children is also important.

You will also need good leadership skills and a flair for business. As you will be taking care of children, a knowledge of the relevant laws and regulations and an understanding of health safety is imperative.

Types of Customers

Parents generally choose day nurseries that are close to where they live or work, so dropping off and collecting their child each day is convenient.

However, parents will also want to consider other factors when choosing their child’s day nursery, such as:

Your Ofsted (or other relevant governing body) rating

Your day nursery business will be inspected within the first 30 months of opening and then approximately every 6 months thereafter. You may receive additional inspections if there are any concerns, or you undergo significant staff changes.

Ofsted will give you a rating of:

  • Grade 1: Outstanding
  • Grade 2: Good
  • Grade 3: Requires Improvement
  • Grade 4: Inadequate

Most parents will opt for a nursery that has been rated as either Good or Outstanding.

Your food hygiene rating

Day nurseries are inspected as part of the Food Hygiene Rating Scheme (FHRS).

Your business will be given a rating between 0 and 5:

  • 5: Hygiene is very good.
  • 4: Hygiene is good.
  • 3: Hygiene is generally satisfactory.
  • 2: some improvement is necessary.
  • 1: major improvement is necessary.
  • 0: urgent improvement is necessary.

Parents generally look for a nursery that has a rating of 4 or above.

Your facilities and equipment

Prospective parents will usually attend a tour of the nursery before signing their child up. They will want to look at the facilities and equipment you have, the indoor and outdoor space that is available and whether your facilities, equipment and toys will support the development of their child.

The qualifications and experience of your staff

Training and qualifications can help ensure your staff operate at the highest possible standards. It can also help to protect the health and safety of your staff and the children.

The ages you accept in your nursery

Some nursery businesses don’t accept babies younger than 6 or 12 months whereas others don’t accept pre-school aged children (4 and 5 years old). If you opt to only care for children of a specific age, this can influence your custom.

Your opening hours

Working parents will need a nursery that opens during the hours that best suit their profession. For example, they may need to choose a nursery that opens at 7am rather than one that opens at 8am.

Child playing outside

Equipment You Will Need

When setting up your day nursery business, the equipment you choose will be pivotal to the success of your business.

The equipment you require will vary depending on the size of the rooms, your outdoor space, and the age of the children you care for.

Some of your equipment requirements may include:

Baby room equipment:

Your baby room will have specific equipment requirements.

This could include:

  • Cots, beds or sleep mats.
  • Prams or pushchairs.
  • Blankets and pillows.
  • Changing mats.
  • Baby changing supplies, such as wipes and nappies.
  • Baby seats and feeding chairs.
  • Low tables and chairs.
  • Sensory toys and equipment.
  • Discovery play mats.
  • Push and pull toys.
  • Walking aids.

Any toys or resources you buy should be age-appropriate for the children in that room. They should also be educational, engaging, fun, safe and reliable.

You will need different toys for different ages. You may buy similar toys in different varieties, to ensure they suit the age and development of the children in that room.

Some toys you may want to buy for your day nursery business are:

Arts and crafts supplies, such as:

  • Colouring pencils and crayons.
  • Paper and card.
  • Playdough and other modelling materials.
  • Glitter, sequins, feathers and other decorations.
  • Scissors and glue.

Role-play toys, such as:

  • A doll’s house.
  • Toy figures.
  • Kitchen areas.
  • Shopping tills and accessories.
  • Cleaning toys (e.g. hoover, mop, sweeping brush).
  • Trains and train tracks.
  • Cars and other vehicles.
  • Dressing up clothes and accessories.
  • Food, plates and utensils.

Construction toys, such as:

  • Building blocks.
  • Building bricks.

Electronic or battery-operated toys, such as:

  • Musical instruments.
  • Microphones.
  • Remote control vehicles.
  • Interactive toys.

Other toys, such as:

  • Jigsaws and puzzles.
  • Magnetic letters and numbers.
  • Sorting and stacking toys.
  • Cuddly toys, such as teddy bears.
  • Sand and water tables and accessories.
  • Board games.
  • Soft play toys that the children can climb, sit on, or play on.
  • Sensory toys.
  • Tents and play mats.

Outdoor equipment:

You may have different outdoor areas dedicated to the different ages of the children you care for. You may want to cover some or all of your outdoor flooring with protective materials, to help reduce the risk of injury if any of the children fall.

Some outdoor equipment you may require includes:

  • Play equipment such as slides and a climbing frame.
  • Bicycles, tricycles and scooters.
  • Other ride-on equipment.
  • Balls of different sizes.
  • Sand and water play areas.
  • Skipping ropes.
  • A playhouse or tents.
  • A mud kitchen.
  • Child-friendly gardening tools.

Other equipment requirements:

  • Fire safety equipment, such as fire extinguishers and smoke alarms
  • Fully stocked first aid kits (one for each room).
  • Cleaning equipment.
  • Spare clothes (in different sizes).
  • A music player or CD and DVD player.
  • Computers and laptops.
  • Mobile phones and landline phones.

Each room will have specific furniture requirements.

Some of the furniture your day nursery business may need includes:

  • Tables and chairs that are suitable for different ages.
  • Bookcases or bookshelves.
  • Adult sized chairs for your staff and any visitors.
  • Shelves, cupboards and other storage areas.
  • A washing machine and dryer.
  • Personal products for children, such as wipes and nappies.

Kitchen equipment:

Day nurseries usually provide food for the children. Depending on the hours you open, you may provide breakfast, lunch, dinner and snacks. Your kitchen equipment will need to be safe, reliable and an appropriate size for the number of children you care for.

Some equipment you may need in your kitchen are:

  • An oven and grill.
  • A fridge and freezer.
  • Kitchen utensils, such as knives, spatulas, spoons and ladles.
  • Cooking accessories, such as rolling pins, graters, weighing scales, colanders and sieves.
  • Food processors and blenders.
  • Chopping boards.
  • Temperature probes.
  • Child-friendly plates, bowls, cups and cutlery.
  • Personal Protective Equipment (PPE), such as hair coverings, aprons and gloves.

Young children in day nursery

Typical Pricing

Although a day nursery business can be extremely profitable, it will also have high start-up costs and running costs.

To help you better plan your business and your finances, take a look at the typical costs you can expect when setting up and running a nursery.

The premises for your day nursery will likely be your biggest expenditure. You may choose to purchase a building and convert it or build your nursery from scratch. Alternatively, you could purchase an already existing nursery business. If you are not in a position to purchase your premises, you could look at your rental options. Prices can vary significantly based on your location, the amount of land you are purchasing and any existing infrastructure.

Renovation, refurbishment and installation

You will likely need to renovate or refurbish your premises to incorporate the room divides and the furniture and equipment you need for your day nursery business. You will also want to design and decorate your nursery to make it attractive to children and their parents. Renovation costs can vary, depending on the level and scale of work required.

Equipment will be a big expenditure when starting up a day nursery business. Although you can buy more equipment as your nursery grows, you will need to have appropriate toys and equipment for each age group straight away. Prospective customers will also likely view your nursery before signing up their child and if the equipment you have is not as good as your competitors, this can make them less likely to choose your nursery. As the safety of the children is paramount, you may want to purchase your equipment new, rather than second-hand. Your equipment costs can start at £10,000 and go as high as £100,000.

Repairing and replacing equipment

Your equipment will need to be inspected regularly to ensure it is safe to use. Any equipment that shows signs of damage or could be unsafe should be repaired or replaced. Young children can also be heavy-handed, and equipment may become broken or damaged frequently. Maintenance, repairs and replacements can cost you upwards of £1,000 a year.

Your day nursery will have several insurance requirements, including:

  • Public Liability Insurance.
  • Employers’ Liability Insurance.
  • Equipment Insurance.
  • Legal Expenses Insurance.
  • Personal Accident Insurance.
  • Loss of Revenue Coverage.
  • Professional Indemnity Insurance.

The cost of insurance can vary, depending on your insurance provider and the level of coverage you require. Prices can start at £15 per month.

Running costs

These are the everyday costs associated with running your business. They could include rent or mortgage payments, electricity, gas, water and taxes. Some of your running costs will be paid monthly, whereas others will be quarterly or annually.

Food and ingredients

Plan your menus in advance and buy as much of the stock and ingredients in bulk as possible, as this can help to save money overall. Calculate how much of your nursery fees will account for feeding the children and try to ensure that your stock and ingredients don’t exceed 40% of this cost. This is because you will also need to account for paying your kitchen staff, buying equipment and the time spent preparing, cooking and cleaning.

You may need to employ a nursery manager, nursery assistants, nursery practitioners, room and team leaders, a chef, other kitchen staff and cleaners. You may also require administrative staff, such as a Human Resources manager and a finance department. Your staff will have different wage requirements, depending on their role in the nursery, their qualifications and their previous experience.

Branding can help you to establish your nursery business’s identity and set you apart from any local competition. Branding could include creating your business’s visual identity, a logo, your business name, and your business website. You can hire a professional to help you with branding or do some of the work yourself. Branding can cost between £500 and £10,000, depending on the amount of branding you require.

Marketing and advertising

This can help you to grow your business. It is recommended that you spend no more than 10% of your annual revenue on advertising costs. As many of your children will move on to start school every year, you will need to advertise for new children every year.

Once you have established your start-up costs and running costs, you can then calculate your pricing strategy.

The average cost of sending a child to a private day nursery in the UK is £53 per day or £263 per week.

However, these costs can vary significantly, depending on several factors, such as:

  • Your location – Nurseries located in big cities or middle- and upper-class areas may charge higher fees.
  • Whether the child is full time or part time.
  • The age of the child – Nursery fees are generally higher for children under two years.
  • Whether the child has a sibling at the nursery.
  • Your facilities and equipment.

Safely Running a Day Nursery Business

Safely running your day nursery business and implementing safety procedures will be a top consideration when setting up your business.

Safety procedures can help you to ensure the health and safety of the children, your staff and any visitors to your nursery.

Some safety considerations you should make include:

Ensure all equipment and furniture adhere to safety standards

You must also ensure equipment and furniture are regularly maintained and inspected for signs of damage. It must be set up or installed correctly to ensure safety standards are met.

Conduct risk assessments

Risk assessments are an essential requirement in nurseries. They can help to protect the children you care for and your staff.

Your risk assessments should:

  • Identify hazards.
  • Determine who could be at risk.
  • Evaluate the potential risks.
  • Implement safety measures.
  • Record the results of the risk assessment.

You should review all risk assessments on a regular basis.

Implement a cleaning policy

Nurseries are often full of germs. This means that illnesses and infections can spread easily. You should implement a cleaning policy and cleaning procedures, including a schedule for cleaning, the management of cleaning materials and equipment and the cleaning processes all staff will follow. Cleaning procedures should apply to all areas of the nursery, including equipment and furniture.

Implement a handwashing policy

Germs and bacteria spread very easily on hands. You can implement handwashing procedures that apply to staff and children. Teaching children how to correctly wash their hands and implementing a schedule, such as washing hands before mealtimes and after playing outdoors, can help protect the health and safety of everyone in your nursery.

Appoint trained first-aiders

All nursery businesses must have an appointed first-aider on the premises at all times. In the event of an accident or injury, you will then be able to administer the necessary first aid. Although a first aid qualification or certificate is not legally required, it is the easiest way to demonstrate your first aid training to the parents and the relevant governing body.

Children eating

Keep bins and waste away from children

This is to prevent children from touching the bins or handling the waste. Bins should be kept in staff-only areas that are not accessible to children.

Implement emergency procedures

You will need to implement procedures in the event of fires and other emergencies. All staff should be aware of the procedures, and they should be displayed around your nursery for easy access. Running emergency drills is also recommended.

Protecting staff from abusive or threatening behaviour

As the business owner, it is your responsibility to protect your staff from threats or abuse. Implement procedures for dealing with threatening behaviour, record any incidents and ensure you support your staff as much as possible.

Keep dangerous objects away from children

This includes cleaning products, knives, scissors and heavy equipment. Any potentially dangerous objects should be kept out of the reach of children at all times, and where possible in separate rooms.

Implement security measures

Security measures can help prevent the children from escaping from your nursery. They can also help to protect your nursery from break-ins. You could install a CCTV system, a reliable lock and an alarm system to help protect your business and the children.

Safety proof your nursery

As you will be looking after babies and toddlers, you will need to safety proof the indoor and outdoor areas of your nursery.

Some ways you can do this are:

  • Install safety gates.
  • Use soft close toilet lids and doors.
  • Cover furniture edges.
  • Use plug socket covers.
  • Don’t use looped cords, leads and other cords that could result in a risk of strangulation.
  • Install window restrictors.
  • Tie up or cover electrical cables.

Legal Requirements

When setting up and running your day nursery, it is essential that you adhere to the legal requirements at all times.

The early years and childcare industry is heavily regulated, and you will need to be subject to regular inspections. During your inspections, your observance of the relevant laws and guidelines will be scrutinised.

Some legal requirements you will need to adhere to are:

Register with Ofsted

You must register your day nursery business with the Office for Standards in Education (Ofsted). The registration process will look at the nursery’s ability to provide care that will conform with the 14 national standards for day care and childminding.

Adhere to the child to adult ratio guidelines

There are strict guidelines regarding the minimum ratio of staff to children.

The ratio requirements change depending on the age of the children:

  • Under two years old: one adult to three children
  • Two to three years old: one adult to four children
  • Three to seven years old: one adult to eight children

Keep in mind that a group of children should never exceed 26, regardless of how many adults are present.

Adhere to space per child ratios

The guidelines specify that you must adhere to specific guidelines regarding the space per child.

The ratio changes depending on the age of the children:

  • Under two years old: 3.5 square metres per child
  • Two to three years old: 2.5 square metres per child
  • Three to seven years old: 2.3 square metres per child

You must also ensure there is a minimum of one toilet and one handwashing facility for every 10 children above two years of age.

Ensure staff have the correct qualifications

Legal guidelines state than at least 50% of your staff must have a childcare qualification.

Examples of the qualifications your staff could hold are:

  • Level 2 Certificate in Childcare.
  • NCFE CACHE Level 3 Diploma in Child Care and Education.
  • BTEC National Diploma in Children’s Care, Learning and Development.
  • NVQ Level 3 in Children’s Care, Learning and Development.

Adhere to the EYFS

The Early Years Foundation Stage (EYFS) is a statutory framework set out by the Department for Education (DfE). It sets out the standards that school and childcare providers must adhere to for the learning, development and care of children five years of age and under.

Follow the correct early years curriculum

As mentioned earlier, different countries in the UK follow a different early years curriculum, as set out by the relevant governing body. Ensure you have a thorough understanding of the relevant curriculum and implement it in your nursery.

Ensure all staff have an up-to-date DBS check

A Disclosure and Barring Service (DBS) check looks for any previous criminal convictions and checks you are fit to work in a nursery. All staff and volunteers at your nursery require an up-to-date DBS certificate.

Adhere to food safety and hygiene standards

You will need to follow hygiene regulations when storing, handling, cooking and serving food. You should also ensure your staff are correctly trained in food hygiene. Any staff members who are involved in food handling, preparation, serving or another aspect of the food process, will require a Level 2 Food Hygiene Certificate. Chefs, kitchen staff and the nursery manager will need a Level 3 Food Hygiene Certificate.

The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) 2013

RIDDOR states that you must report all injuries, diseases and dangerous events that occur in your nursery. Reports must be made to the Health and Safety Executive (HSE) using an appropriate recording document.

Apply for a Childcare and Children’s Social Care Health Declaration Form

This form must be completed before your register with Ofsted. It includes an up-to-date medical declaration from you and your GP. Without this form, you cannot register with Ofsted or set up your day nursery business.

Purchase insurance

Some types of insurance, such as Public Indemnity Insurance, are legally required, whereas others are only recommended. Contact your insurance provider for more information.

Implement health and safety policies

Health and safety policies are legally required for all businesses in the UK. You should have policies in place that protect the children, staff and any visitors to your business. If you have five or more employees, your health and safety policies should be recorded. Your policies should also include fire safety procedures and emergency procedures.

The Electricity at Work Regulations 1989

The Electricity at Work Regulations state that any workplace that uses electricals must construct electrical systems in a way that prevents danger. You must also maintain electrical systems to ensure they are safe and ensure electrical equipment is checked by a competent person annually. Conducting Portable Appliance Tests (PAT) is also recommended.

Control of Substances Hazardous to Health (COSHH) 2002

COSHH is the law that states that all businesses, including nurseries, must control any substances that could be potentially hazardous to health. In line with COSHH, you must assess, control and reduce any risks or potential hazards and protect individuals from harm.

Keep clear records

You should keep up-to-date records of your clients, the cleaning schedules, risk assessments, health and safety policies, and food hygiene policies. Ofsted will likely want to see your records when they conduct their inspections.

Comply with employment legislation

As you will be employing staff, you must ensure you follow employment legislation. You must comply with legislation relating to recruitment, working hours, pay, sickness, discrimination, dismissals, and maternity or paternity pay.

Apply for a Notification to Process Personal Data Licence

You can apply for this licence with the Information Commissioner’s Office (ICO) . If your day nursery has a CCTV system or processes personal information such as payroll information or accounts and records, you will need to apply for a licence with the ICO and renew your registration every year.

Apply for planning permission

You will likely need to apply for planning permission to convert your building into a day nursery. You may need to extend the building, partition the space to make extra rooms or build some structures in the outdoor area. To apply for planning permission, you will need to contact your local planning authority (LPA) via your local council.

Parent leaving child in day nursery

Positives of Owning a Day Nursery Business

Owning a day nursery business can be rewarding in multiple ways. It can be both a financially and emotionally rewarding career path.

Some of the main positives of owning a day nursery business are:

Be a positive role model

The children will spend a lot of time with you, especially if they attend nursery full time. You will become a person they trust and depend on. Working so closely with children allows you to teach them important life skills and socialisation skills and help their development. You can be a positive role model and hold a special place in the child’s and their family’s hearts.

It can be a lot of fun

If you take a hands-on approach to running your business, you will be spending a lot of time playing games, singing and dancing and doing arts and crafts. You can even plan and design a lot of the activities yourself. You can have fun every day at work.

Rewarding work

Running a day nursery can be very rewarding. If you love children and spending time with people or enjoy the organisational aspects of running a day nursery business, setting up this type of business can be very rewarding.

Unlimited income potential

There is no limit to the amount of money you can make from a day nursery business. If you operate at full capacity, expand your nursery or even open additional sites, this can help to maximise your profits.

Be your own boss

You can make all key decisions yourself and steer your business in whichever direction you choose. You can choose how involved you want to be, the employees you hire and make the best decisions for you and your business.

Be involved with the local community

Children are the centre of most communities, and as a nursery owner you will develop an important connection with your local community. You can get involved in local events and get to know many local families. You will even see infants and children you used to care for growing up.

Free childcare for you and your staff

If you have young children of your own, you can bring them to the nursery and save yourself a small fortune in nursery fees. You will also know your child is receiving the best possible care and is being stimulated and encouraged.

Standard working hours

Owning a nursery business means you won’t have to work evenings or weekends. You can also reduce your hours and leave your nursery manager or another member of staff in charge.

A constant need for your business

Early years businesses will always be in demand as people need childcare for their little ones or want to aid their development and education before they begin school. You will never have to worry about your business not making a profit or experiencing a lack of demand.

High customer retention

Once a child starts attending a nursery and makes connections with staff and other children, they are likely to remain at your nursery for several years until they begin school. You are also likely to have multiple siblings from the same families and have parents recommend you to other family members or friends.

Predictable income stream

You will know exactly how many children you have at your nursery and how many available places there are. Parents often pay for each term upfront or arrange a payment scheme ahead of time. This makes it easier to predict your income.

Design your dream business

You can design your nursery business exactly how you want. You can choose the design of the nursery, the type of toys you purchase, the activities and the staff. Creating your dream business can be both fun and rewarding.

Day nursery staff keeping up high energy

Negatives of Owning a Day Nursery Business

Although running a day nursery business can be rewarding, there are some negative aspects you should be aware of.

You need to be constantly aware

Working in a nursery, you need to be hyperaware at all times. The little ones you work with can accidentally hurt themselves or others, eat something they shouldn’t or even run away. If you are not aware at all times, a child could sustain an injury or have an accident and you may be held liable.

You need constant high energy

Even if you are having a bad day or feel unwell, you need to keep up high energy to display a positive attitude and to keep the children engaged. This can be exhausting.

Strict laws and regulations

Nurseries are highly regulated and there are many laws and regulations you will need to abide by. You will need to research your legal requirements and ensure your nursery is operating in line with the law. Failure to do so could result in a fine, the forced closure of your business or even prosecution.

High liability

If a child or employee becomes injured, contracts food poisoning or is involved in an accident, you and your business could be liable. Children are vulnerable to injuries or illnesses and ensuring the health and safety of everyone in your nursery can be stressful.

Your role can be demanding and stressful

Not only will you be responsible for making your business succeed and ensuring safe practices, but you will also likely be in charge of the administrative duties and day-to-day running of the business. As the owner, you will also have to deal with parents’ worries, concerns or complaints. This can be both demanding and stressful.

It can be physically exhausting

If you work hands-on in your nursery, you will be on your feet for a lot of the day, carrying children, bending down, moving toys and playing on the floor. The physical strain can result in aches, pains and even injuries.

High start-up costs

You will need to pay for your nursery premises, renovation and refurbishment costs and the facilities, equipment and toys. Your start-up costs will be extremely high, and you may have to source outside investment. It also makes your business higher risk and will take you longer to start turning a profit.

Can be competitive

You will be competing with other day nurseries, nursery schools, childminders and other early years settings. Having multiple settings to compete with can make it more difficult for your business to succeed.

Motivation of employees

Although you will have the power to hire your employees, it can be more difficult to control their motivation once they are working for you. If your staff are unmotivated, have a negative attitude, or don’t follow your business values, this can be harmful to your business and difficult for you to deal with.

Planning Your Business

When starting up a day nursery business, you will need to create a business plan.

Some considerations you will need to make are:

What ages are you going to cater for?

This is one of the first considerations you will need to make. Determine the minimum and maximum ages you are willing to accept in your nursery and how this will affect your staffing and equipment requirements.

How many children will you be able to cater for at one time?

The size of the building and the number of staff you employ will influence your available places. The ages of the children will also influence your available places. Determining how many children you can care for can help you determine your marketing strategies and your pricing and calculate your potential profits.

What are your training and qualification requirements?

Specific training and qualifications can help ensure the health and safety of the children at your nursery and can help to improve your nursery’s curriculum and child development programme. It can also make your nursery more attractive to prospective customers. Determine what qualifications and training you want your staff to already hold and which training you will provide them with.

What are your equipment requirements?

Consult the list above to determine your equipment requirements. The equipment you require will depend on the ages and number of children you care for. Calculate the cost of the equipment and whether there is any equipment you can purchase at a later date.

What are your start-up and running costs?

Calculating your start-up costs, your estimated costs monthly and annually, staff wages, overhead costs, and operating costs is a key part of planning your business. It allows you to determine your initial investment and whether you can fund this yourself or require outside investment.

What will your pricing strategy be?

Once you have calculated your start-up costs and running costs, you can then calculate your pricing. Consider how much money your day nursery business needs to make per month and what fees you need to charge. Look at your competitors’ pricing and consider the average income in your local area when determining your pricing strategy. Your pricing policy should be transparent and easy to understand.

What is your local competition?

Parents will likely tour multiple nurseries before making a decision, meaning it is important you are aware of your local competition. Being aware of your local competition can help you determine how to make your nursery business a success. Look at how to make your nursery stand out and how to attract customers.

What are your staff requirements?

Staff are an essential part of your nursery business. You will need to hire staff before you open your business and ensure they have the necessary training. Consider how many staff you need to hire and their expected wages.

What are your business objectives?

When creating your business plan, you will need to determine your business objectives. Planning the future of your day nursery and creating a one-, three- and five-year plan can be pivotal to the success and growth of your business. Having clear business objectives and a business plan can help to attract prospective investors and help you to identify which aspects of your nursery require a particular investment.

Your business objectives should be SMART:

  • S = Specific
  • M = Measurable
  • A = Achievable
  • R = Realistic
  • T = Time bound

Do you have all of the necessary licences and have you complied with all legal requirements?

Consult the list of legal requirements above and ensure you fully comply when setting up and running your day nursery business. Failure to comply with the legal requirements could have a detrimental effect on your business or could result in a fine, the forced closure of your nursery or, in serious cases, prosecution.

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Nursery Business Plan Template

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Licensing and Requirements

Marketing and promotion, risk management, growing and maintenance tips.

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Why write a business plan?

  • Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
  • Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
  • Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
  • Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
  • Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
  • Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
  • Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
  • Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
  • Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
  • Business plans allow you to position your brand by understanding your company’s role in the marketplace.
  • Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
  • Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

  • Executive Summary
  • Company Overview
  • Industry Analysis
  • Consumer Analysis
  • Competitor Analysis & Advantages
  • Marketing Strategies & Plan
  • Plan of Action
  • Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect nursery business plan, fill out the form below and download our nursery business plan template. The template is a word document that can be edited to include information about your nursery business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

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Nursery Business Plan Template FAQs

What is a business plan for a/an nursery business, how to customize the business plan template for a nursery business, what financial information should be included in a nursery business plan, are there industry-specific considerations in the nursery business plan template, how to conduct market research for a nursery business plan, what are the common challenges when creating a business plan for a nursery business, how often should i update my nursery business plan, can i use the business plan template for seeking funding for a nursery business, what legal considerations are there in a nursery business plan.

Child Care & Nursery School Business Plan

You can now quickly and easily create your own professional business plan for your new childcare business with this comprehensive downloadable package.

Developed in Word and Excel, it makes completing your plan a breeze. Simply adapt it to your specific requirements in no time at all.

You can use it for all types of preschool businesses including nursery schools, kindergarten classes and full-time daycare for children aged up to five years old. It covers all business activities including how to build profits.

Child care business plan

The Executive Summary of This Business Plan

The information below is taken directly from the business plan you can download online now.

Nursery school finance projections graph

Summary and Overview

Littleuns Child Care Limited is a new company providing extensive childcare facilities to the under fives (preschool age).

Mrs. Jane Smith founded Littleuns Child Care, who has eight year’s kindergarten experience managing a similar nursery at the local independent school.

The market and Business

The main market sectors targeted are parents with preschool age children. This group are working full-time and require a respected and trusted organisation to take care of their children during the working day.

Littleuns will also develop the initial educational requirements required by Ofsted. The children should achieve above average grades before attending their first reception class.

Core Revenue Streams

Littleuns will have three main revenue streams:

  • Core childcare during the working day from 08:00 to 18:00.
  • Pick up and delivery service from homes or places of work.
  • Childrens’ meals for breakfast, lunch and tea time.

The core service is the first item. The others are to generate additional income for the company.

Revenues and Profitability

Revenues forecasted for the first year of operation are £282,240. Profits are forecast to be £88,000 before interest, tax and Mrs. Smith’s salary.

Revenues are forecast to increase by 7-8% per year with profits also following that trend.

The premises are secured and purchased by way of a mortgage. Mrs. Smith is also investing an additional £45,000 into the company to cover the initial start-up costs. The financial cash flow forecast includes repayment of these costs within the first year.

Management and Staffing Levels

Littleuns is a new company wholly owned and run by Mrs. Smith. There is an additional eight nursery staff recruited to satisfy the government ratios of 1:4 for two-year-olds and 1:8 for over three years of age.

Contents of this plan

1) Executive Summary 2) Business Mission 3) Ownership and Location 4) External Analysis 5) SWOT Analysis 6) Planned Objectives 7) Key Action Plans 8) Management Biographies 9) Profit & Loss Account 10) Cash flow Forecast 11) Balance Sheet

Free Bonuses Included 1) 25 Free Marketing techniques 2) Financial Planning wizard 3) Step-by-step Planning guide 4) Free Online Support 5) Comprehensive start-up guide

Why Choose This System?

  • Specific for preschool nurseries.
  • Fully complete from A-Z.
  • Economic and research data.
  • Marketing and action plans.
  • Free forecasting tools.
  • 90-day Money-back guarantee.
  • Accepted by all banks for finance.

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Customer Testimonials

“I needed to put together a long-term business plan to cover all aspects of my new venture. I read a lot of books and attended courses, but I was struggling. Then I came across Teneric and suddenly it was all there in a format I could use and in terminology I could understand. After that, it was plain sailing to the Business Department at my local HSBC Bank”

Jill Shilcock, Managing Director, SEAS Education Advisory Service Limited.

“I wanted ideas for the type of information that needed covering in a business plan, and this gave me a template for the document I submitted to the bank. The business loan we were after was approved. If you have never written a business plan before, then I would recommend your product. It was very straightforward and offered some good advice.”

Gordon Mitchell, UK

“I needed a business plan quickly. The template was easy to use, just fill in the blanks on the wizard and refer to the help guide if I wasn't sure. Your system is good value, and I would recommend them to everyone needing a plan. Attached is the basic plan I threw together in a day for the bank. They specifically wanted cash flow projections, and the Excel spreadsheets were really what I was after from your product.”

John Waterhouse, UK

How to write a business plan for a nursery?

nursery business plan

Putting together a business plan for a nursery can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing nursery, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a nursery?

  • What information is needed to create a business plan for a nursery?
  • How do I build a financial forecast for a nursery?

The written part of a nursery business plan

  • What tool should I use to write my nursery business plan?

Having a clear understanding of why you want to write a business plan for your nursery will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a nursery business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your nursery is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your nursery, you'll have to:

  • Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
  • Determine the pace at which the business needs to progress to meet its objectives as scheduled,
  • Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small nursery runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your nursery's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your nursery business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your nursery's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed nursery business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your nursery has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a nursery, let's take a look at what information is needed to create one.

Information needed to create a business plan for a nursery

Drafting a nursery business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a nursery

Before you begin writing your business plan for a nursery, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your nursery.

You may find that parents are increasingly interested in eco-friendly and organic options for their nursery furniture and décor. Additionally, you could discover that parents might be looking for a variety of styles and designs that fit their individual preferences.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your nursery.

Developing the marketing plan for a nursery

Before delving into your nursery business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a nursery

Whether you are starting or expanding a nursery, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

Staffing costs for a nursery may include wages for administrators, teachers, and assistants, as well as benefits and taxes associated with these wages. Equipment costs may include furniture, educational materials, toys, books, and outdoor play equipment such as swings and slides. Other costs may include repairs and maintenance of equipment, cleaning supplies, and technology such as computers and internet access.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your nursery, it is time to start creating your financial forecast.

What goes into your nursery's financial forecast?

The financial forecast of your nursery will enable you to assess the profitability potential of your business in the coming years and how much capital is required to fund the actions planned in the business plan.

The four key outputs of a financial forecast for a nursery are:

  • The profit and loss (P&L) statement ,
  • The projected balance sheet ,
  • The cash flow forecast ,
  • And the sources and uses table .

Let's take a closer look at each of these.

The projected P&L statement

The projected P&L statement for a nursery shows how much revenue and profits your business is expected to generate in the future.

projected profit and loss statement example in a nursery business plan

Ideally, your nursery's P&L statement should show:

  • Healthy growth - above inflation level
  • Improving or stable profit margins
  • Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established nursery. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your nursery

The balance sheet for a nursery is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

  • Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
  • Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
  • Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

example of projected balance sheet in a nursery business plan

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your nursery's liquidity and solvency:

  • Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
  • Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your nursery's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a nursery is used to show how much cash the business is generating or consuming.

cash flow forecast in a nursery business plan example

The cash flow forecast is usually organized by nature to show three key metrics:

  • The operating cash flow: do the core business activities generate or consume cash?
  • The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
  • The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your nursery business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the nursery is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a nursery.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

sources and uses table in a nursery business plan

This table helps size the investment required to set up the nursery, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your nursery business plan, let's have a look at the written part of the plan.

The written part of a nursery business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a nursery business plan is composed of 7 main sections:

  • The executive summary
  • The presentation of the company
  • The products and services
  • The market analysis
  • The strategy
  • The operations
  • The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

In your nursery's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your nursery, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

In your nursery business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your nursery to a third-party financier, you may want to emphasize the potential benefits of the area. You could mention the access to resources the area may offer, such as transportation and access to a qualified workforce. You could also highlight the potential for growth in the area, such as the potential for increased customer base and visibility. Additionally, you could mention the potential for collaboration with other businesses in the area that could increase efficiency and productivity. Finally, you could emphasize the potential for a positive return on investment that may be possible due to the location.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your nursery could offer a variety of plants for sale, such as perennials, shrubs, and trees. You could also offer installation services for customers who want to have the plants professionally placed in their garden. In addition, you could provide soil testing and nutritional consultations to help customers ensure their plants are getting the right nutrients. By offering such a wide range of services and products, your nursery could become a one-stop shop for all of your customers' gardening needs.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When outlining your market analysis in the nursery business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your nursery, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your nursery targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include new parents who are looking for plants and materials to create a safe and stimulating environment for their baby. These parents are likely to be more open to spending money and may be interested in higher quality items that will last them a long time. They may also be interested in organic products that are safe for their child's health and development.

In the competition subsection, introduce your main competitors and explain what sets your nursery apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your nursery.

5. The strategy section

When writing the strategy section of a business plan for your nursery, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your nursery could face the risk of unexpected costs from emergency repairs. For example, if a piece of equipment breaks down, you may have to pay for a replacement or repair. Additionally, your nursery might face the risk of an injury or accident. For example, if a child trips and falls, you could be held liable for any resulting medical bills.

6. The operations section

The operations of your nursery must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your nursery's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have assets such as the building and land the nursery is located on. This may include equipment such as cots, play areas, and toys. You might also have intellectual property such as your brand name, logo, and website. Your website could include a database of customer information containing contact details, customer preferences, and payment details.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into a nursery business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my nursery's business plan?

In this section, we will be reviewing the two main options for writing a nursery business plan efficiently:

  • Using specialized software,
  • Outsourcing the drafting to the business plan writer.

Using an online business plan software for your nursery's business plan

Using online business planning software is the most efficient and modern way to create a nursery business plan.

There are several advantages to using specialized software:

  • You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
  • You are guided through the writing process by detailed instructions and examples for each part of the plan
  • You can access a library of dozens of complete business plan samples and templates for inspiration
  • You get a professional business plan, formatted and ready to be sent to your bank or investors
  • You can easily track your actual financial performance against your financial forecast
  • You can create scenarios to stress test your forecast's main assumptions
  • You can easily update your forecast as time goes by to maintain visibility on future cash flows
  • You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your nursery's business plan

Outsourcing your nursery business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your nursery business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your nursery's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your nursery business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your nursery business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

  • Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
  • A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
  • A business plan has 2 main parts: a financial forecast outlining the funding requirements of your nursery and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your nursery business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

  • How to write a business plan to secure a bank loan?
  • Key steps to write a business plan?
  • Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a nursery? Share this article with them!

Guillaume Le Brouster

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Open a Nursery in the UK

Nursery Business Plan Example

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Get access to a UK nursery business plan example.

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  • Company Summary
  • Strategy and Implementation Summary
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  • Financial Plan

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What do you need to know about starting a business?

  • Start up business ideas
  • Set up a business
  • Skills and wellbeing
  • Business planning
  • Financing a business
  • Tax and National Insurance
  • Business law
  • Sales and marketing
  • Business premises
  • Business IT
  • Grow your business
  • Types of business
  • Testing business ideas
  • Product development
  • Is running a business really for you?
  • Start up stories
  • Registering as a sole trader
  • Setting up a limited company
  • Business names
  • Buy a franchise
  • Buying a business
  • Starting an online business
  • Setting up a social enterprise
  • Small business support

Protect your wellbeing from the pressures of starting and running a business and develop key business skills.

  • Dealing with stress
  • Manage your time
  • Self-confidence
  • Write a business plan
  • Business strategy
  • Start up costs
  • Start up funding
  • Setting prices
  • How to work out tax and NI
  • Accounting and bookkeeping
  • Licences and registration
  • Protecting intellectual property
  • Insurance for business
  • Workplace health, safety and environmental rules
  • Looking after your customers
  • Promote your business
  • Your marketing strategy
  • Sales techniques
  • Research your market
  • Creating and optimising a website
  • Commercial premises
  • Premises security
  • People management
  • Recruitment, contracts, discipline and grievance
  • Employment rights
  • Hiring employees
  • Buying IT for your new business
  • Basic IT security
  • Preparing for business growth
  • How to scale up your business
  • Funding business growth
  • Start exporting
  • Personal development

How to start up a plant nursery

A diverse plant nursery inside a greenhouse

Thinking about starting a plant nursery? You'll need to be physically fit and enjoy working outdoors in all weathers. You'll find all you need to know to start up and run your own business in our practical guide.

Research your target market

Establish your customer profiles, decide what to sell, promote your nursery, buy an existing business, estimate demand.

Find out whether there is enough demand for a plant nursery in your area. Establish how well your target market is already supplied. This will help you to focus on any gap or niche you could fill.

It may be that you are not planning to target a local market, perhaps because you are going to specialise in a particular plant variety and hope to make sales to customers all over the country. 

Be aware that the market for plants is competitive, with many existing specialist plant nurseries in the UK and strong competition from imports. (Any fall in the value of the pound tends to benefit you, as the cost of imported plants goes up correspondingly; and vice-versa when the pound's value rises.)

Plants are available from many major concerns such as the DIY multiples and national garden centre chains. Because they buy in such large quantities, they are in a position to undercut the prices that most plant nurseries charge. You might consider producing a specialist range of plants and targeting smaller retail outlets that are looking for something a bit more unusual. For example, you might:

  • concentrate on plants that thrive in a maritime climate
  • produce plants that do well in drier conditions
  • grow unusual plants for offices, hotels, restaurants and other commercial outlets
  • operate as a plant breeder, supplying other nurseries with mini plants or 'plugs' which they then grow on
  • open your own retail outlet - perhaps as part of a garden centre
  • supply retail customers by mail order or through your website

As part of your market research you will be:

  • establishing who your target customers are
  • deciding on the plant varieties you will offer
  • finding out how well your target customers are already supplied
  • identifying any weaknesses in your competitors' plant ranges, service levels or pricing policies so that you can carve out a share of the market for your nursery

Check out the competition to identify how many other nurseries already cater for your target market. Depending on your marketing strategy, these competitors may be based locally or all over the country.

Find out what your customers want

If you plan to supply local garden centres and other outlets, part of your market research could include a visit to some of their premises to check whether they would be interested in your plant ranges. Bear in mind that they will want to take many plants into stock at the beginning of their busy season, around Easter time. Consider whether this would give you enough time to get your plant nursery established and your plants grown to the required stage of development.

Research current trends, plus legal and tax issues

  • Sector trends for plant nurseries
  • Legal issues for plant nurseries
  • VAT rules for plant nurseries

It is likely that your customers will be mainly local residents, businesses and organisations, although if you decide to specialise in particular varieties you might have customers from all over the UK and even from overseas. This could also be the case if you decide to sell plants online.

Your trade customers might include:

  • other plant nurseries, if you breed plants for cultivation by another nursery
  • garden centres
  • retail outlets such as garage forecourts, florists, grocers
  • smallholdings (for example, you might specialise in a particular crop such as strawberry plants, or asparagus crowns)
  • the parks department of your local authority
  • schools, colleges, sports grounds and other organisations with extensive grounds
  • landscape gardeners

You might require trade customers to purchase a minimum number of plants per order. This will depend on the type of plant you produce and its cost.

Some plant nurseries only sell to the trade, while others also welcome members of the public and local gardening clubs. You will have to decide which customers your business will target, bearing in mind your location, the area your nursery covers and your resources. If you decide to open to members of the public, give some thought to how you will prevent damage to growing stock. Also, think about who will serve your retail customers. People do not want to wait while staff come from other parts of the nursery to serve them.


Ornamental plants are plants which are grown for display purposes, rather than functional ones. This includes:

  • bulbs and flowers, grown in open conditions
  • hardy ornamental nursery stock (HONS), (see below)
  • bedding plants, such as geraniums and pansies
  • pot plants, such as begonias and poinsettias
  • cut flowers, grown under glass

HONS are the largest sector and include hydrangeas and other shrubs, Christmas trees, roses, ornamental trees, perennials and fruit stock.

Bedding plants are the next biggest sector, and one which has enjoyed a lot of growth in recent years. Between them, HONS and bedding plants account for nearly three-quarters of the total value of production in the UK.

The Department for Environment, Food and Rural Affairs (DEFRA) produces an annual statistics containing useful information on the UK horticultural sector. You can download the data   from the DEFRA section of the GOV.UK website.

Choose a range to sell

Decide on the type and range of plants to sell. There has been strong demand for hardy ornamental nursery stock as well as bedding plants in recent years, but these sectors are very competitive, particularly for the more commonplace plant varieties. You might decide to concentrate on more unusual plants, for gardeners looking for something a little different.

Your plants must be healthy, vigourous specimens that will survive well in the retail garden centre or other outlet and thrive once planted in a garden, park or other location.

At times of economic downturn demand for young vegetable plants may increase. This could provide an opportunity for your nursery. Patio plants like dwarf fruit trees have also become popular.

Some plant nurseries specialise in a particular type of plant instead of growing a broad selection. For example, you might consider specialising in alpines, geraniums, herbs, roses or lavenders. You would be able to grow many different varieties of your chosen specialism in different sizes and colours and could refer to this in your promotional literature. Or you might decide to concentrate on larger plants like bamboo, ornamental grasses, hedging, trees and topiary for customers who are looking to plant mature specimens.

Grow from scratch or buy in

You will also need to decide on whether you will grow all your plants yourself, from seeds, bulbs, cuttings or graftings, or whether you will buy in mini plants or 'plugs' from plant breeders who have started them off for you. If you decide to grow them from scratch you will need mature parent plants from which to breed others.

Work out how you can help your trade customers to sell more items. For example:

  • produce the sort of plants that consumers want - for example small plants are popular, because many gardens have limited space
  • predict the varieties that will be in demand - fashion can play a part in this, as well as prevailing weather conditions
  • provide colourful plant care and point-of-sale material – for example, include a QR code on plant labels so customers can access growing tips
  • package plants in containers that help to keep them in peak condition - this is especially important if you are supplying plants that are ordered online or by mail order
  • consider supplying plants in biodegradable pots for customers who are keen to reduce packaging waste
  • supply 'instant' products, such as ready-planted hanging baskets and tubs
  • supply plant gifts matched with a complementary non-plant item - for example, herbs in attractive containers together with a recipe book


Because the horticultural sector is so seasonal, you need to plan your year carefully. Plant at the right time, so that the stock is ready when your customers want it. You may be much busier at some times of the year than others, and you may have a problem keeping all of your employees fully occupied during quieter periods. You do not want to risk losing good members of staff by only offering them employment on a seasonal basis, so consider whether there are other activities that could be undertaken to employ key staff throughout the year.

The Royal Horticultural Society (RHS ) encourages gardeners to plan their gardens six months in advance and to plant in the autumn rather than the spring. Ensure that you have sufficient stock for autumn planting, so your garden centre customers can encourage their own customers to buy in September, October and November rather than only in the spring months.

Services to offer

There are a number of services you might decide to offer your customers, such as:

  • mail order and online ordering facility
  • van sales, so that your trade customers can top up their stock during the busy season
  • point of sale labelling and promotional material
  • distribution of 'availability sheets' to trade customers throughout the season, so they know what is still in stock
  • horticultural consultancy services to other nurseries
  • arboricultural and landscaping services
  • showhouse plant and shrub packages
  • plant list sourcing and pricing (for example, for landscapers)
  • pest control services

The right image

It is important that your nursery business projects a professional image, particularly if your customers visit you to place their orders. So:

  • keep your site and any glasshouses tidy, well-maintained and weed-free
  • supply your plants in fresh, clearly labelled packaging
  • highlight your selling points, such as the fact that your plants are grown in peat-free compost
  • if you make online or mail-order sales, ensure that your plants are professionally packed in robust packaging materials
  • ensure that all plants sold are healthy specimens, free from disease or blight
  • Get a licence to play music throughout the nursery 

Catalogue, lists

Provide an online catalogue or plant list for your customers, from which to place their orders. Many nurseries update lists regularly during the main planting season so that their garden centre and wholesale customers can remain well-stocked.

There are a number of ways in which you can promote your business and its services to potential customers, such as:

  • setting up a Google Business Profile so you appear in local searches – make sure you include customer reviews, opening hours and details of offers
  • building an attractive and informative website containing the key information potential customers will need – make sure it is optimised for the relevant words potential customers might use to search for your business
  • obtaining a listing in an online directory, with a link to your own, informative website
  • producing a catalogue and plant list, to mail out to customers such as garden centres, or available to download from your website
  • exhibiting at growers' shows - The Commercial Horticultural Association (CHA) website includes details of UK shows
  • participating in your local council's roundabout sponsorship scheme
  • donating plants to local community projects - make sure your business receives a visible acknowledgement
  • advertising in the trade press, such as plant suppliers guides
  • using social media like Facebook and Twitter to let people know what is in season or on promotion

Special offers and discounts

It is commonplace in the horticultural sector for trade customers to be offered pre-season discounts for stock. In return for receiving payment for the order a couple of months ahead of delivering the stock, you offer a generous discount. Discounts are also normally offered if large quantities are ordered at a time.

You might decide to buy an existing plant nursery rather than start your own venture from scratch. Buying a going concern can mean that the products, customers, regular sales, staff, premises, tools and equipment are already in place.

Other matters to consider include:

  • The state of the premises, equipment, and so on. Will you have to spend money refurbishing or replacing assets? Check the condition of glasshouses and poly tunnels especially carefully - they are costly to replace.
  • The condition and value of any growing stock you are buying. Is it healthy and disease-free?

But  buying a business  can be a hazardous, expensive process unless you have the right skills and experience on your team, including legal and financial know-how. Establish the genuine trading and financial position, so that the price you pay for the business is not too high.

Man on roof sweeping a chimney on a sunny day

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Plant Nursery Business Plan Template & Guidebook

If you’re looking to start your own successful plant nursery business, then The #1 Plant Nursery Business Plan Template & Guidebook is an essential tool that will help you get off to the right start. This comprehensive guidebook is packed with essential information—from essential business and marketing tips, to easy-to-follow step-by-step instructions for creating a robust business plan—all designed to help you craft a solid strategy for achieving your goals and securing the funds necessary to get your plant nursery up and running. So don't wait any longer—start crafting your successful plant nursery business in no time!


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  • How to Start a Profitable Plant Nursery Business [11 Steps]
  • 10+ Best & Profitable Plant Nursery Business Ideas [2023]

How to Write a Plant Nursery Business Plan in 7 Steps:

1. describe the purpose of your plant nursery business..

The first step to writing your business plan is to describe the purpose of your plant nursery business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a plant nursery business:

Our mission at Plant Nursery is to provide our customers with high-quality plants and landscaping services that meet their needs and exceed their expectations. We strive to be an industry leader in plant selection, customer service, and professionalism. We are dedicated to providing our local community with a reliable source of beautiful plants, trees, shrubs, and vegetation at affordable prices.

Image of Zenbusiness business formation

2. Products & Services Offered by Your Plant Nursery Business.

The next step is to outline your products and services for your plant nursery business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

Image of Zenbusiness business formation

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your plant nursery business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your plant nursery business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your plant nursery business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

nursery business plan example uk

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a plant nursery business?

  • Greenhouse or growing space
  • Containers and trays
  • Potting soil and organic compost
  • Landscape fabric, ground cover, and mulch
  • Fertilizers and pesticides
  • Plant tags, stakes, and labels
  • Irrigation and water systems
  • Business license or permit </

5. Management & Organization of Your Plant Nursery Business.

The second part of your plant nursery business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your plant nursery business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Plant Nursery Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a plant nursery business varies based on many different variables, but below are a few different types of startup costs for a plant nursery business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your plant nursery business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your plant nursery business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your plant nursery business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

nursery business plan example uk

Frequently Asked Questions About Plant Nursery Business Plans:

Why do you need a business plan for a plant nursery business.

A business plan for a plant nursery business is necessary because it provides potential investors and lenders with an overview of the business objectives, operational strategies and financial plans. It also allows owners to identify potential risks and explore ways to mitigate them. Additionally, a business plan helps to ensure that resources are allocated where they will be most effective and provides a road map for the future of the business.

Who should you ask for help with your plant nursery business plan?

You should ask for help from qualified professionals such as a business consultant, financial advisor, accountant, or lawyer. You might also consider reaching out to other people who have opened similar businesses in the past or are currently running a successful plant nursery business.

Can you write a plant nursery business plan yourself?

Writing a business plan for a plant nursery business can be a complex process, however it is possible to do it on your own. You will need to consider the company’s mission and objectives, assess the potential market, develop a marketing strategy, create financial projections, and analyze the competition. Additionally, you should ensure that you cover topics such as legal requirements and operational structure. Before starting the plan, research similar businesses to get an understanding of industry trends and the specific needs of this type of business. This will help you create a comprehensive and effective plan.

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Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

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Plant Nursery Business Plan

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Do you feel tired in the caught-up rat race, and just want to follow your passion for nature? Well, a plant nursery is an amazing idea that would help the environment while keeping your pockets full.

But to start a successful plant nursery or get funding you will need a solid business plan to guide you through the way.

Need help writing a business plan for your plant nursery business? You’re at the right place. Our plant nursery business plan template will help you get started.

How to Write a Plant Nursery Business Plan?

Writing a plant nursery business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduction of your Business

Start your executive summary by briefly introducing your business to your readers. Then include a short description of all the other sections of the business plan.

In short, it is a summary of the whole business plan, which is why entrepreneurs choose to write this section at the end after having the full knowledge of the business plan.

You can introduce your business like this with the help of Upmetrics:

nursery business plan example uk

Marketing & Sales Strategies

Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.

Financial Highlights

Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.

Call to Action

Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will be like business name, type of the business, location, business history, and future goals of the business.

Business Description

Describe what kind of plant nursery business you run and the name of it. You may be running one of the below types of plant nurseries:

  • Tree nursery : Focusing more on the plantation and sale of trees for both residential and commercial customers.
  • Indoor plant nursery : This kind of business specializes in indoor and houseplant settings.
  • Aquatic plant nursery : Focuses on growing and selling aquatic plants commonly utilized in ponds and water gardens.

For example, here is the business description for a nursery with the help of Upmetrics:

nursery business plan example uk

Describe the legal structure of your plant nursery, whether it is a sole proprietorship, LLC, partnership, or any other. Explain where your business is located and why you selected the place.

List the names of your nursery’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.

Business History

If you’re an established nursery, briefly describe your business history, like—when it was founded, how it evolved, etc.

Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential

Describe your market size and growth potential and whether you will target a niche or a much broader market.

For instance, in 2022, the market size of the Nursery and garden Stores industry in terms of revenue was $50.3 billion .

Competitive Analysis

Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your plant nursery services from them. Point out how you have a competitive edge in the market.

Market Trends

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends. For example here is how you should mention the market trends:

nursery business plan example uk

Regulatory Environment

List regulations and licensing requirements that may affect your plant nursery business, such as business registration, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your plant nursery business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products and services

Mention the plant nursery products or services your business will offer. This list may include:

  • Fertilizers
  • Pots and containers
  • Landscape designing
  • Garden Decor
  • Delivery services

Quality measures

This section should explain how you maintain quality standards and consistently provide the highest quality service.

This may include regular maintenance of plants and quality fertilizers.

Additional Services

Mention if your plant nursery offers any additional services. You may include services like delivery services, landscape designing, consultation, planting, etc.

In short, this section of your plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP)

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Marketing Strategies

Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.

Sales Strategies

Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls,  partnering with other businesses, offering referral programs, etc.

Customer Retention

Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, personalized service, discounts on repeat orders, etc.

Overall, this section of your plant nursery business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training

Mention your business’s staffing requirements, including the number of employees or gardeners needed. Include their qualifications, the training required, and the duties they will perform.

Operational Process

Outline the processes and procedures you will use to run your plant nursery business. Your operational processes may include seeding, cultivation, plant care, inventory management, etc.

Equipment & Machinery

Include the equipment and machinery required for the plant nursery, such as cultivation & planting equipment, pest & disease control, tools & implements, etc.

Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your plant nursery business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.


Mention the founders and CEO of your company, and describe their roles and responsibilities in successfully running the business.

Key managers

Introduce your management and key members of your team, and explain their roles and responsibilities.

For example, you can write down your management team like below with the help of Upmetrics:

nursery business plan example uk

Organizational structure

Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.


Mentioning advisors or consultants in your business plans adds credibility to your business idea.

So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your plant nursery business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement

Describe your projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.

Cash flow statement

The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.

Balance Sheet: Create a projected balance sheet documenting your plant nursery’s assets, liabilities, and equity. For example, see the below-projected balance sheet for a nursery with the help of Upmetrics:

nursery business plan example uk

Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs: Calculate costs associated with starting a plant nursery business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the plant nursery industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your plant nursery business plan should only include relevant and important information supporting your plan’s main content.

This sample plant nursery business plan will provide an idea for writing a successful plan for your plant nursery business, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our plant nursery business plan pdf .

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Frequently asked questions, why do you need a plant nursery business plan.

A business plan is an essential tool for anyone looking to start or run a successful plant nursery business. It helps to clarify your business, secure funding, and identify potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your plant nursery company.

How to get funding for your plant nursery business?

There are several ways to get funding for your plant nursery business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought-after startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your plant nursery business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your plant nursery business plan and outline your vision as you have in mind.

What is the easiest way to write your plant nursery business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any plant nursery business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my plant nursery business plan?

The level of detail of the financial projections of your plant nursery business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a plant nursery business plan include?

The following are the key components your plant nursery business plan must include:

  • Executive summary
  • Business Overview
  • Market Analysis
  • Products and services
  • Sales and marketing strategies
  • Operations plan
  • Management team
  • Financial plan

Can a good plant nursery business plan help me secure funding?

Indeed. A well-crafted plant nursery business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a plant nursery business plan?

Marketing strategy is a key component of your plant nursery business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

  • It provides your business an edge over your competitors.
  • It helps investors better understand your business and growth potential.
  • It helps you develop products with the best profit potential.
  • It helps you set accurate pricing for your products or services.

About the Author

nursery business plan example uk

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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UK Small Business Startups and Funding

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  • Business Plan for Plant Nursery

Plant Nursery Small Business Idea and Business Plan

Starting your own small business in the UK isn’t easy but having a properly developed business plan will help you achieve success.

To start a Plant Nursery business in the UK, take the time and explain the idea via a business plan.

Understanding all of the aspects of the business idea will be the key to getting the Plant Nursery business running like a well-oiled machine. The business plan you develop will help you organize the elements needed into a strategy that you can actually use to startup, by paving a clear road map as to what you need to follow for the lifespan of your business.

Starting a Plant Nursery business isn’t easy, but when done right, it can lead to a lot of success.

To help you get started, you can use the free business plan builder tool to develop your own Plant Nursery business plan.

The business plan template is very easy to use, is interactive and will quickly and easily help you create your business plan just by answering the needed questions about your small business idea.

Create your own Plant Nursery business plan for free using the Business Plan Builder

The free business plan template builder is divided into a few easy to follow steps.

The free business plan builder template is provided by to help you develop your own business plan. For step by step guidance, see the 5 steps below.

Once completed, the result will be a clean, professional plan that will help you start your own Plant Nursery small business in the UK.

When you have completed your Plant Nursery business plan, the next step will be to find available funding that will help, or to speak with a funding adviser who will assist you each step of the way to securing the needed funds to make your Plant Nursery business startup.

If you are looking to limit your startup costs when starting up a Plant Nursery small business in the UK, this free business plan builder tool will be it.

Starting a Plant Nursery business is only one of the ways others have used this free business plan tool. There are hundreds of different ideas you can start, and if you need guidance, do reach out to a UKStartups expert to get the needed assistance and guidance.

Step 1. Your business information

To develop a proper Plant Nursery business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities.

What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

Having a clear explanation will help you create a in-depth business plan that you can actually use to start the Plant Nursery business and to apply for needed funding to cover your startup costs.

Step 2. Projecting your revenues/income

The Plant Nursery industry can have great results. Planning and projecting the financial figures to approximate what you will make each year is crucial to building a strong business plan.

What do you think your business will make from each of its products/services? Simply list your products/services, enter the appropriate financial figures (costs and expenses).

If you don’t have the figures, in many cases it is recommended to do a a bit more research on other Plant Nursery businesses locally and within your own region to get an idea of potential revenue. You can do your best to estimate the figures and growth potential.

If you need assistance in projecting, you can always contact UK Startups funding experts for the help.

Step 3. Your business market

As a Plant Nursery business, having a clear explanation of the market and industry that you are in will help you plan for the figure and will ensure you can take the business to the next level.

Explain your location of business, share specifics about your customers, showcase your competition and explain the advantages you have over your competition.

Step 4. The future plan

Starting your own Plant Nursery business and getting it off the ground is important to you.

No matter if you’re planning on applying for government funding for your Plant Nursery business or not, it is important to plan out the future and provide an explanation of how you will grow the business. This means explaining your marketing plan, your sales strategy and clearly outlining a growth plan for the next few years.

Be sure to break this down step by step to show how you intend on making sure your Plant Nursery business can grow each year.

Keep in mind that often business plans are focused on key people. Be sure to discuss yourself, your role and any other key figures in the business as well.

Step 5. The financials

In the end, it all comes down to the financials. If you are seeking funding, or not – the business plan you develop needs to have clearly defined financials or projections. The business plan builder tool makes it easy to develop your financial charts by simply entering your expected revenues per month and year. If you don’t have the figures as it’s a new business be sure to project the figures based on your expectations. If you need help with this, ask the UK Startups experts .

A clear breakdown of your funding needs is also recommended in case you are seeking funding and this free business plan template will help you with exactly that. When developing your Plant Nursery business plan using this free template, the above 5 steps are recommended in order to succeed. While there are other key points that will assist you in starting your business, finding funding...etc, the free template will help put you on the right path

Be sure to request a professional to review your business plan , to answer any questions you may have and to help you with the funding search once you’ve done the initial free template. You can request this directly via and through the Small Business Startup Platform as a member.

If starting a Plant Nursery business is just one of your ideas, perhaps considering other options, here are some popular small business’s others have chosen to startup

  • Steak House
  • Tamale Shop
  • Propane Supplier
  • Amusement Ride Supplier

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Get the most out of your business plan example

Follow these tips to quickly develop a working business plan from this sample.

1. Don't worry about finding an exact match

We have over 550 sample business plan templates . So, make sure the plan is a close match, but don't get hung up on the details.

Your business is unique and will differ from any example or template you come across. So, use this example as a starting point and customize it to your needs.

2. Remember it's just an example

Our sample business plans are examples of what one business owner did. That doesn't make them perfect or require you to cram your business idea to fit the plan structure.

Use the information, financials, and formatting for inspiration. It will speed up and guide the plan writing process.

3. Know why you're writing a business plan

To create a plan that fits your needs , you need to know what you intend to do with it.

Are you planning to use your plan to apply for a loan or pitch to investors? Then it's worth following the format from your chosen sample plan to ensure you cover all necessary information.

But, if you don't plan to share your plan with anyone outside of your business—you likely don't need everything.

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Nursery Business Plan Template

SEPT.27, 2013

Nursery Business Plan Template


When it comes to realizing a nursery business idea, writing a nursery business plan is a very vital step. Many entrepreneurs are showing interest in selling and growing different types of plants for residential and commercial purpose. Nursery industry includes direct sellers who deal with consumers and businesses.

It also includes the wholesalers who deal with especially home improvement stores, garden shops, developers and with government contracts. With increasing interest in developing healthy settings and lush green space, nursery industry is flourishing.

Frequently asked questions of nursery business plan

When creating a  business plan for a nursery , these questions help an entrepreneur think of operating a nursery business successfully.

It is wholesale, landscape, or selling nursery, or all of these.

It is rooted cuttings, seedlings, or container has grown.

Almost any climate is suitable.

  • Growing and distribution plants from nersery;
  • Landscape plants into nursery;
  • Trade plants from nursery at a market;

Executive Summary

It is a very important title to show your business, its motives, name, and objectives. You can summarize the same when  starting a nursery business plan . It gives an overview of your intentions towards your business to your financers. Therefore, a golden rule in this is to make it clear, concise and to the point. You need to highlight what you need to make your business successful.

Company Overview

Nursery Business Plan Template

After writing an executive summary, the company overview of your business plan for a nursery gives further details to your business plan for a nursery . When writing a business plan for a nursery , you need to explain in brief why you are starting this business. Describe your experience, motivation, and qualifications to sell your vision and yourself. If it is your first time to start this business, feel yourself as you are already an entrepreneur and work with your confidence. Add a vision statement to explain what success means to you. What do you want in the next five years? How you are going to do that?

It is understood that a  nursery business plan example  is incomplete without describing your services. Every nursery business has a bit different offering. You need to describe how you are going to operate, like-

  • Bulk plants distribution nursery
  • Landscape plants nursery
  • Trade or market plants nursery

You can also mention what special types of plants you are offering in your nursery business .

Market Research

In this section of  sample nursery business plan , you need to explain about your competition and how you are going to stand out among them. For doing this, you should know the followings:

  • Who is operating around you already
  • The values they offering
  • The overall need of the plants.

Also, investigate the quantity around you, such as population levels, the interest of your potential customers and so on.

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Financial plan

A complete  nursery business plan pdf  must have all the informative graphs to reassure investment group for your business plan for a nursery that you have done your homework and your nursery business  is a safe bet. Include a profit and loss forecast as well as the cash flow forecast for the next few years to come along with a detailed budget for the startup as a bare minimum.

Basically, start-up costs include the followings:

  • Types of equipment
  • Fertilizers
  • Utility costs

When creating a business plan for a nursery , you need to explain how best you are going to use your premises and make it a functional area. According to the ideal conditions of the plants and growing, you may want to erect greenhouses or poly tunnels.

In addition, you need to explain whether there is need more space for expansion, for example, you are starting small but you have plans to expand or you want to grow different types of plants in future.

Nursery Business Plan

Marketing plan

When writing a perfect marketing plan for your nursery business plan, you will need to focus on how you are going to promote it. Marketing is the most important step before you actually opening it.

From traditional methods like banners out of the complex to leveraging the power of social media, you need to explain it all. Impressed customers will also give free words of mouth to their friends and family. Hence, you can have more exposure, which could translate into clients with ease.

Rules and regulations

When writing a business plan for a nursery , you need to explain what business permit you are having. There are different jurisdictions applied to your venture and they vary according to place. You need to gather information and find out what rules applicable to you.

In addition, you should think about the formalities required for construction permits if you need to build a greenhouse or you want to build a warehouse for equipment and materials.

How to order writing a business plan for a nursery ?

If you are looking for a well-written and complete  nursery business plan template free , OGS Capital is your one-stop destination. We have expertise in developing nursery business plans. We have experienced consultants to help entrepreneurs and write a well-developed business plan for a nursery to attract investors. Simply fill the online form and we will get back to you.

Download Nursery Business Plan Samplein pdf

OGScapital also specializes in writing business plans such as hydroponics farm business plan , aquaponics farm business plan , organic fertilizer business plan , fruit farm business plan , benefits of business continuity planning , preparing to succession for agriculture and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Nursery School Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Education Sector » Schooling

Are you about starting a nursery school? If YES, here is a complete sample nursery school business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a nursery school. We also took it further by analyzing and drafting a sample nursery school marketing plan template backed up by actionable guerrilla marketing ideas for nursery schools. So let’s proceed to the business planning section.

We all know that a nursery school is a pre-school childcare facility that are actually open all year round and all day to take care of kids of working or busy parents.

This business is not an easy business, which is why if you’re not certain about committing to a full-time business, there are other ways that you could be involved in childcare – from running a crèche to a playgroup. You can even start and organize a self-employed childminder at home.

It is very important to note that starting a nursery is certainly not a shortcut to wealth. In fact, you could probably make more money driving a taxi than running your own nursery. But, if you want to start a business that will be inspiring, provide hourly challenges and a lot of rewards then you should consider starting a nursery school.

Before you start your nursery, it would be wise to write down your business plan. If you are going to go through the rough patch of starting a nursery school, you should run it like a business venture, not as a hobby.

One other hurdle that you will need to scale as you start out in this industry is to write a business plan. Below is a detailed business plan for your consumption.

A Sample Nursery School Business Plan Template

1. industry overview.

Nursery Schools provide preschool education services for children aged three and four, combined with day care. Most businesses in the nursery school industry are private but may get funding from a variety of sources, including state and federal grants.

We all know that getting affordable, quality child day care, especially for children under age 5, is a major concern for many parents, particularly in recent years with the rise in families with two working parents. As the need for child day care has increased, the child day care services industry began to fill the need of non-relative child care.

It was estimated that within the past five years, strained household income and pressures on local budgets have shortened the spending on nursery schools, moving the nursery school industry revenue to reduce drastically. But it has been estimated that in the coming years, improved household income and greater public attention to early education will aid to turn the nursery school industry.

Still, grand plans for preschool expansion, including a tentative plan to provide multibillion-dollar investment by increasing taxes on tobacco and on high-income households, are unlikely to come to fruition in the near future.

Also it has been verified that this industry shows a low level of capital intensity, measured as spending on capital versus labour. It is expected that the average nursery school will spend only $0.05 on depreciable capital for every $1.00 spent on labour in the next two to three years.

It is believed that nursery schools will continue to rely on teachers and other staff, employing little capital beside school buses and software.

In addition, this capital wears out slowly, limiting depreciation spending per year. It is expected that the capital intensity of the industry will remain low through 2022. Conversely, labour intensity will remain high, with wages being the single largest cost for an industry operator.

2. Executive Summary

Covenant Academy is a new, standard, and a full-service nursery school in the Sterling City that will take care of toddlers from age three to five. We at Covenant Academy hope to focus on the upper end of the market: double-income professional parents.

We believe that these personally ambitious parents are typically eager in terms of their children’s development and will be willing to pay to have their children attend the best educational facilities. We believe that through adequate and specialized training of our prospective staff and our innovative learning systems, we at Covenant Academy will be able to take over the market entirely.

We believe that our well sustained educational curriculum, coupled with a custom designed facility and a low teacher: student ratio will make sure we achieve a top shelf service for the children and the parents.

We at Covenant Academy expect to become profitable by month 12, and have estimated a modest net profit by year three. Our objectives at Covenant Academy for the first two years of operation will be to create a service based operation whose primary goal is to exceed customer’s expectations.

We also expect the utilization of Covenant Academy by at least 40 different families in the first eight months. We at Covenant Academy hope to increase the number of client’s served by 20% each year and also develop a sustainable, profitable, start-up business.

Covenant Academy will be located in Sterling City, Texas, and will offer child care services for kids between the ages of three and five.

We at Covenant Academy plan to offer our innovative services from 6 a.m. to 7 p.m. The cute kids of our prospective clients we believe will be exposed to a large range of activities including arts and crafts, socialization, large muscle group activities, and general learning.

We at Covenant Academy believe that we will be priced out of some people’s budget, but will offer a low student to teacher ratio and well trained staff.

3. Our Products and Services

We at Covenant Academy plan to offer the good people of Sterling City an upper-end nursery school facility for toddlers age three to five.

We hope to offer a low teacher to student ratio, custom facilities, and innovative learning programs. Our operation hours at Covenant Academy will be a bit wider rage than normal business hours to accommodate the working parents, the target customer.

We at Covenant Academy understand that the two income families have children, yet both parents work. That is why Covenant Academy was established as an innovative solution that acts as virtual parents, broadening the children’s skills during the day.

It is worthwhile to note that Covenant Academy is not a babysitter facility but a fully fledged Nursery school. The children are engaged throughout the day, learning new skills and reinforcing already acquired ones.

4. Our Mission and Vision Statement

  • Our vision at Covenant Academy is to provide dedicated early education services to children within the our target market
  • Our mission at Covenant Academy is to provide top level nurse school activities. We at Covenant Academy exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

Our Business Structure

Craig Sissy, the founder and owner of Covenant Academy will be managing the daily operations of the facility. Craig Sissy got his undergraduate degree in English from the University of Washington. After graduating with a Second class upper division, Craig was no actually sure of what he wanted to do so he travelled to Australia and taught English for four years.

Within the first two years of his stay in Australia, Craig stayed with a local family. In exchange for room and board, he cared for the family’s two children. Although he had never done any child care before, Matt found love and satisfaction just taking care of the kids.

When he returned to the united states Craig decided to start a solid career in the field that makes him happy and fulfilled. Ultimately, He entered the University of California for his Master of Education Program in toddler development.

After graduation, Craig became very confident in his abilities and decided that he would appreciate the autonomy of running his own business. He purchased a house for the facility has been working hard on this project ever since. He has layer a basic foundation that will surely guarantee success and these are the very workforce he wish to work with at Covenant Academy:

School Director

School Administrator

  • Tutors for Various Learning Areas

Marketing and Sales Executive

Accountant / Bursar

  • Client Service Executive / Front Desk Officer
  • Security Officer

5. Job Roles and Responsibilities

  • In charge of providing direction for the nursery school
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • In charge of handling high profile clients and deals
  • In charge of fixing fees and signing business deals (partnership)
  • In charge of signing checks and documents on behalf of the tutorial college
  • Coordinates all arms of the nursery school
  • Evaluates the success of the nursery school
  • Reports to the board of the nursery school
  • In charge of overseeing the smooth running of HR and administrative tasks for the pre – school
  • Design job descriptions with KPI to drive performance management for all staff members
  • Regularly hold meetings with key stakeholders (parents and member of the school board) to review the effectiveness of the schools’ Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • In charge of training, evaluation and assessment of employees
  • In charge of arranging travel, meetings and appointments
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Oversee the smooth running of the daily activities of the tutorial college.

Tutors for Various Learning Areas for Toddlers

  • Effectively teach subject / subjects as assigned by the school coordinator
  • Access the progress of kids under their care
  • Ensure that kids participate in learning activities such as potty trainings, rhymes and dancing et al
  • Contributes his / her quota towards growing the pre – school
  • Receives complaints from parents and channel it to the appropriate quarters
  • Handle any other duty as assigned by the school coordinator.
  • Identifies, prioritizes, and reaches out to new parents, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • In charge of handling business research, market surveys and feasibility studies for clients
  • In charge of supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluate new plans for expanding increase sales
  • Document all customer contact and information
  • Represents the company in strategic meetings
  • Help increase sales and growth for the company
  • In charge of preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyses financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • In charge of financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • In charge of developing and managing financial systems and policies
  • In charge of administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the nursery
  • Serves as internal auditor for the nursery school

Client Service Executive

  • Welcomes toddlers and their parents by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with parents (e-mail, walk-In centre, SMS or phone) provides them with a personalized customer service experience of the highest level
  • Through interaction with parents on the phone, uses every opportunity to build their interest in the school’s products and services
  • Manages administrative duties assigned by the school coordinator in an effective and timely manner
  • Consistently stays abreast of any new information on the schools’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to students when they make enquiries
  • Receives parcels / documents for the nursery school
  • Handles any other duties as assigned by the school authority
  • Maintain a clean nursery school facility by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
  • Ensures that toiletries and supplies don’t run out of stock
  • In charge of handling laundry
  • Handles any other duty as assigned by the school coordinator.

Security Officers

  • Ensure that the nursery facility is secured at all time
  • Control traffic and organize parking
  • Give security tips to staff members from time to time
  • Patrols around the building on a 24 hours basis
  • Submit security reports weekly
  • Any other duty as assigned by the school coordinator.

6. SWOT Analysis

We at Covenant Academy understand that just within the United States, there are approximately 20,000 businesses that provide preschool and early education services to the general public. We were meant to believe that annually, these businesses generate $10 billion of revenue while providing jobs for 180,000 people. Annual payrolls in each of the last five years have exceeded $2 billion.

Preschools are considered to be part of a mature industry, and the expected future growth rate will remain in line with that of the economy’s GDP. We also understand how competitive the industry is and how businesses in the industry are trying so hard to overshadow other ventures, which is why we are so keen to understand all possible loopholes and establish a competitive business.

We took our time to research and write a comprehensive SWOT Analysis, that explains our strength and possible weaknesses. We believe that all issues will be taken care of before we open our doors for operation. Outlined below is a comprehensive SWOT Analysis conducted by Nicklaus Communications for Covenant Academy:

According to our comprehensive SWOT Analysis, the core strength of Covenant Academy lies in the will and experience of our team; our workforce. We at Covenant Academy believe that we have a team that has the right passion and drive for taking care of toddlers, a specific workforce with excellent qualifications and experience in education industry.

Our SWOT Analysis also noted that Covenant Academy is well positioned in a community with the right demographic composition and that we will attract loads of parents who would want to register their kids from the first day we open our doors at Covenant Academy.

Our SWOT Analysis noted that our weaknesses might be the time it will take some time for our organization to break into the market and gain acceptance in the already saturated education industry. Also we might not have the required money to pump into advertising and promoting our brand the way we would want to.

  • Opportunities

The opportunities in the education industry are very huge due to the number of parents who would want their kids to be in safe place and to gain adequate knowledge. As a standard, safe and highly comfortable nursery school, we are ready to take advantage of any opportunity that comes our way.

Our SWOT Analysis noted that some of the threats that we are likely going to face as a nursery school operating in the United States of America are unfavourable government policies that might affect us directly and indirectly, the arrival of a competitor within our location of operations and global economic downturn which usually affects spending / purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.


  • Market Trends

The improvement in the Nursery industry is the main reason that is attracting parents to enrol their wards is the safe and capable institutions, cleanliness, location and of course the overall comfort of their toddlers. It is worthwhile to note that the trend in the nursery industry is such that businesses in this industry can now comfortably start their Nursery school business in a business district; a place where it is easier for working class parents to pick their kids after work and do all things necessary.

Although competition among pre-schools is one way to bring tuition costs down, government action should be taken to make pre-school education more accessible for children from all backgrounds, whether it be ethnic, economic, or social. Investing in early childhood education will benefit individual children and society as a whole.

Since most pre-school programs are administered by private organizations, more funding is being provided at the state and federal level to provide make it possible for children to have the opportunity to attend pre-school, especially children coming from families living below the poverty line.

The economic downturn hasn’t really affected this industry, especially in countries that believe in the efficacy of early education. The areas you would need to spend heavily on is in ensuring that your school is up to standard, is the facility, your advertisements, and insurance.

8. Our Target Market

We at Covenant Academy hope to concentrate solely on the double income working professional families because they are the part of the population that can most easily afford nursery schools, are the ones who need day care because of their work obligations, appreciate the advanced learning and development we at Covenant Academy are very much ready to offer.

We believe that with both parents working, this part of the American population will always need some sort of provisions for the care of their child. It is very important to note that the Department of Labour indicates that over 50% of children are cared by relatives compared to 29% for commercial education institutions.

But we are confident that our targeted group always wants a more structured learning environment. We all know that using relatives are great for nights out or weekends, but it cannot be argued or compared to a structured program when it comes to the learning and development that we at Covenant Academy are offering.

Our competitive advantage

We at Covenant Academy are bent on targeting a specific niche in child care space and we understand the market properly. We plan to always adequately spread our services to let us attract our target market. We at Covenant Academy plan to use the touring of our facilities to sell our services.

We understand how important this is, because we understand that most parents want to see a facility before they will send their kids there. Our facilities at Covenant Academy are so good that they speak for themselves. We believe that our competitive advantage is in two folds and they include:

  • Our intensive and specialized training

We at Covenant Academy understand that our educational facility can only be as good as the teachers and assistants. Which is why we at Covenant Academy have established an intensive training program that all teachers and assistants are put through so they are proficient at teaching the specific programs that we at Covenant Academy have organise for all prospective toddlers age three to five.

  • Our well researched Innovative learning programs

We at Covenant Academy understand that the specialized learning programs for toddlers within our target market will have to focus on specific traits and only work on one trait/ skill at once. We understand that as much as this is successful in reinforcing the skill, it is often very difficult for the child to appreciate the interrelationships of the different skills.

Consequently, the child can learn the skill, but has difficulty applying the skill when faced with multiple stimuli. We at Covenant Academy possess adequate experience so that the child is unsure of what to do because of the multiple stimuli and these several skills that they have learned independently, the child tends to shut down out of confusion. We are prepared to create a learning pattern that brings out the best in kids.


  • Sources of Income

Our source of income at Covenant Academy will come from providing preschool, early childhood education services and after school care for children enrolled in our well defined educational facility. We at Covenant Academy also believe that from time to time, we will be able to receive state based grants that will help us in subsidizing the costs associated with providing our services for young children within the State.

We at Covenant Academy believe that we will be able to provide a broad range of educational services including artistic training, general education, and computer training for young children. We at Covenant Academy will also serve breakfast and lunch to students enrolled in our Institute.

We will also make sure that all employees possess the necessary licensure and background check so that they are qualified to work with children under the age of six. This will be one of the foremost priorities of Covenant Academy.

10. Sales Forecast

We at Covenant plan to use the very first two months to renovate the facility and bringing it up to specifications, both for the state health and license codes. Within the same period, we must have been done with the training program and manuals. The first week of the third month will be used for training of the staff. We at Covenant Academy understand that by the middle of the third month, we will start accepting children for care.

We also expect that the facility will be under-utilized until the eighth month. By then, word will have spread and the classes will be filling up quite nicely. We at Covenant Academy believe that from month seven on, there will be a steady, incremental increase in sales. We have researched the industry and have come out with a detailed sales projection and they are:

  • First Year -: $150,000
  • Second Year -: $980,000
  • Third Year -: $3,000,000

Note : it is worthwhile to note just like we stated above that this forecast was done based on what is obtainable in the industry and with the believe that none of the threats we mentioned above will be a hindrance or may likely appear.

  • Marketing Strategy and Sales strategy

We at Covenant Academy plan to makes use a number of

It is also our plan to build relationships with public and private schools within the our target market in order to generate referrals among parents that have older children in grade school and are seeking preschool services for their younger children. We at Covenant Academy will also use an internet based strategy. This is very important as many people seeking local services, such as preschools, now the Internet to conduct their preliminary searches.

We at Covenant Academy also plan to register our Institute with online portals so that potential customers can easily reach the business. We will also develop our own online website. We will maintain a sizable amount of print and traditional advertising methods within local markets to promote the services we are offering. Below is the summary of all the marketing strategies we plan to use:

  • Introduce our nursery school by sending introductory letters alongside our brochure to parents / household and key stake holders in Sterling city
  • Print out fliers and business cards and strategically drop them in religious centres, libraries and public facilities.
  • Use friends and family to spread word about our Institute
  • Post information about our nursery school on bulletin boards in places like churches, maternity clinics, parks, libraries, and local coffee shops et al
  • Place a small or classified advertisement in the newspaper, or local publication about our nursery school
  • Leverage on referral networks such as agencies that will help match parents with toddlers under school age with our nursery school
  • Join relevant association or body that will enable you network and meet others in same industry.
  • Advertising online by using an advertising platform such as Google AdWords, that will allow us place text advertisements alongside on websites with related contents, and along results from search engines.
  • Advertise our pre – school in relevant educational magazines, newspapers, TV stations, and radio station.
  • Attend relevant educational expos, seminars, and business fairs et al
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied parents

11. Publicity and Advertising Strategy

We at Covenant Academy plan to ensure maximum visibility for our Institute within our targeted market. Below is an overview of the publicity and advertising strategies of Covenant Academy:

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our brand
  • Install our Bill Boards on strategic locations all around Sterling City
  • Engage in road show from time to time in targeted neighbourhoods
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations by calling them up and informing them of our Nursery school, and the advantage we over the others.
  • Passing general information via our social media handles like twitter, Facebook, Google hangouts etc.
  • Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our schools’ logo et al.

12. Our Pricing Strategy

Our strategy at Covenant Academy will be based on a communication effort to explain the virtues and importance of all our services and how we can successfully speed up the children’s development considerably. In addition to one on one explanation of the program and its merits, the prospective parents will be given tours of the facilities.

We at Covenant Academy hope to keep our fees below the average market rate for all of our students by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our students at regular intervals. We are aware that there are some kids that would need special assistance, we will offer flat rate for such services that will be tailored to take care of such kids’ needs.

  • Payment Options

It is very important to note that we at Covenant Academy after our extensive research and thorough discussion understand efficiently that different customers prefer different payment options as it suits them but at different times and ways.

We plan to make sure that we provide them with payment options that will make their transactions less stressful and very open. Listed below are the payment options we at Covenant Academy plan to make available to our customers;

  • Payment via bank transfer
  • Payment with cash
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft
  • Payment via POS

We have also chosen to partner with a known bank in the United States in order to give our customers the best they can ever get in the nursery school industry of the United States.

13. Startup Expenditure (Budget)

It is very crucial to note that Covenant Academy will start out as a simple proprietorship, owned by its founder. We believe that as the operation grows, the owner will consider re-registering as a Limited Liability Company or as a corporation, whichever will better suit the future business needs.

Every possible threats and analyses have been considered, and the future we see for Covenant Academy is as bright as the sun. We have analysed the possible place we wish to spend our start up capital and they include:

  • Business incorporating fees in the United States of America will cost – $750.
  • The budget for Liability insurance, permits and license will cost – $3,500
  • Acquiring a facility / property that will accommodate the number of kids that we want to take care of for at least 6 months (Re – Construction of the facility inclusive) will cost – $35,000.
  • Equipping the office (computers, printers, projectors, markers, pens and pencils, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
  • The budget for paying staff members and utility bills for at least 3 months – $70,000
  • The budget for start – up inventories (toiletries, toys, cots, and mats et al) – $2,500
  • Launching an official Website will cost – $500
  • Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000

From the above projection, we need approximately $250,000 to start Covenant Academy, and we have made all possible plans to raise the said amount.

Generating Funding / Start-up Capital for Covenant Academy

We at Covenant Academy understand that adequate funding will go a long way to make sure you achieve your desired goal. Finance basically is a very crucial factor when it comes to building any business, and building a successful business is not a one day job but a continuous job that requires consistency and hard work.

Covenant Academy is the dream of Craig Sissy, who is the founder and owner of Covenant Academy, and will be managing the daily operations of the facility. We have decided to start up the business as a sole proprietorship business, and will sponsor the business solely, but we consider other sources as the business grows. For now the strategies we hope to raise funds may include:

  • Raising part of the start – up capital from personal savings
  • Raising part of the start – up capital from family members and friends (soft loans and gifts et al)
  • Raising a larger chunk of the start-up capital from the banks (loan facility).

14. Sustainability and Expansion Strategy

We at Covenant Academy believe that we will be offering child care/development for toddlers age three to five, and that we will be targeting double income professional families who, because of work obligations, do not have the time during the day to care for their child.

We at Covenant Academy are very keen to get to families that are hungry to offer their kids something more than simple baby-sitting facilities, those individuals who like their children to be registered in a program that offers development of many different skills including: socialization skills, arts and crafts, large muscle group workouts, reading, numbers, etc.

We at Covenant Academy plan to make use of our facility tour to impress our prospective clients. We believe that our facilities were custom designed to achieve very specific educational goals and we are very proud to have it. We believe that these tours will occur during the day and will serve as a perfect opportunity for prospective patrons to view the care as it is occurring.

We hope and trust that this strategy will serve to build a trust bond between Covenant Academy and the parent who naturally is cautious about leaving the child with strangers to have the child cared for and taught the entire day.

We at Covenant Academy believe that in case of an economic downturn, we may face a decline in our incomes. But we believe that the demand for parents that want to register their children in our care will keep increasing steadily. Which means that Covenant Academy will always remain profitable and our cash flow will remain positive at all times despite certain drawbacks in the economy.


  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of All form of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Leasing, renovating and equipping our facility: Completed
  • Generating part of the start – up capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress

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  1. 34+ Business Plan Templates in Word

    nursery business plan example uk

  2. Nursery Business Plan (+ Comprehensive 3 Year Financials)

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  3. Plant Nursery Business Plan Example

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  4. Nursery Business Plan Example

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  5. Free Business Plan Templates for Nurseries, Preschools and Childcare

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  6. Nursery Business Plan

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  1. NURSERY BUSINESS PLAN: Guide and Template

    #10. Appendix Nursery Business Plan Template Final Thoughts FAQs Can you open a nursery in a house? Who regulates nurseries in the UK? Is a nursery school a good business? Related Articles Related Starting a nursery can be your next step in your childcare career, a long-term goal, or a new area of interest.

  2. How to Start a Nursery Business

    Rosalyn Sword March 22, 2021 15 min read Nurseries are popular, successful businesses in this day and age. They offer early childhood education to children before they begin compulsory education, and could be the perfect place for you if you enjoy working with children.

  3. How to Write Your Nursery Business Plan (with Free Business Plan Template!)

    Company Overview At the beginning of your plan, giving a company overview can be beneficial to outline exactly what you want to achieve. This is your opportunity to tell your story about why you are starting a nursery, including your motivations, experience, and qualifications.

  4. Writing Your Nursery Business Plan: A Step-by-Step Guide

    1. Executive Summary This is a grand title for your introduction. Within it, you can summarise the top-line detail about your business including its name, your objectives and goals. This gives you, and anybody else who reads your plan, an overview of your intentions. Make sure it's clear, concise and gets to the point.

  5. PDF Prepare a business plan for childcare services

    • Appendix • Presenting your business plan • Further help and advice EARLY CHILDHOOD SERVICE 01243 777807 - Version 3 - December 2015 For the latest version of this document visit...

  6. How to write a business plan for a nursery, daycare or preschool

    Introduction In this video we'll be going over how to create a key part of your business - your business plan. This will be primarily for a nursery. Though, these instructions will be helpful for whatever business you set up.

  7. How To Start a Day Nursery 2024: Key Steps

    Step 2 - Make sure you have the qualifications and experience. Step 3 - Choose the type of day nursery you want to start. Step 4 - Check whether it's financially viable. Step 5 - Research regulations and legal cover. Step 6 - Research business premises. Step 7 - Put together a business plan.

  8. How To Write a Business Plan For a Nursery

    1 Comment / How to open a nursery / By Open A Nursery How To Write a Business Plan For a Nursery Why Write a Business Plan? It helps you set a clear statement of your business mission and vision Sets values that you can lean upon and steer you through tough times You set benchmarks you can use to track your progress and performance

  9. How to start a nursery business: Key steps 2024

    Registering your day nursery. Your first step is to register your day nursery. The correct regulator will depend on whether you live in England, Scotland, Wales or Northern Ireland. But before you go ahead, make sure your nursery meets the standards of the Early Years Foundation Stage (EYFS) framework.

  10. Starting a Plant Nursery Business in the United Kingdom

    Starting a plant nursery business in the UK can be as simple as finding a place that sells plants or looking for a community of people who want to plant trees and plants on their properties. There are many different types of nursery chains, and each has various regulations that need to be followed. If you plan to set up a garden in your front ...

  11. How to Start a Day Nursery Business

    Your business will be given a rating between 0 and 5: 5: Hygiene is very good. 4: Hygiene is good. 3: Hygiene is generally satisfactory. 2: some improvement is necessary. 1: major improvement is necessary. 0: urgent improvement is necessary. Parents generally look for a nursery that has a rating of 4 or above.

  12. Nursery Business Plan Template

    Create a business plan for your nursery business in minutes with our easy to use template!

  13. Child Day Care Business Plan for Nursery Schools

    Child Care & Nursery School Business Plan You can now quickly and easily create your own professional business plan for your new childcare business with this comprehensive downloadable package. Developed in Word and Excel, it makes completing your plan a breeze. Simply adapt it to your specific requirements in no time at all.

  14. How to write a business plan for a nursery?

    How to write a business plan for a nursery? Why write a business plan for a nursery? What information is needed to create a business plan for a nursery? How do I build a financial forecast for a nursery? The written part of a nursery business plan What tool should I use to write my nursery business plan?

  15. Nursery Business Plan Example

    Description Reviews (0) Get access to a UK nursery business plan example. Use this as guidance, to help you to complete your own business. With each purchase you also get access to a free business plan template. The business plan example contains the following sections: Executive Summary Company Summary Services Strategy and Implementation Summary

  16. How to start up a plant nursery

    plant list sourcing and pricing (for example, for landscapers) pest control services; Promote your nursery The right image. It is important that your nursery business projects a professional image, particularly if your customers visit you to place their orders. So: keep your site and any glasshouses tidy, well-maintained and weed-free

  17. Garden Nursery Business Plan Example

    1.1 Objectives Maintain an average gross margin at or above 50%. Generate an average of $1,000 of sales each business day of each month. Realize an annual growth rate of 10% in Year 2. 1.2 Mission Rose Petal Nursery is dedicated to providing a wide variety of plants and trees in an aesthetic setting. Customer service is extremely important.

  18. Plant Nursery Business Plan Template & Guidebook

    How to Write a Plant Nursery Business Plan in 7 Steps: 1. Describe the Purpose of Your Plant Nursery Business. The first step to writing your business plan is to describe the purpose of your plant nursery business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  19. Plant Nursery Business Plan Template + Guide [Updated 2024]

    Financial Highlights Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts. Call to Action

  20. Business Plan for Plant Nursery

    Step 1. Your business information To develop a proper Plant Nursery business plan with the free business plan builder template, it is important to answer each of the questions about your business to the best of your abilities. What is your business? What are the products/services you provide? Who are your customers? What are your goals…etc?

  21. Free Garden Nursery Business Plan Template + Example

    Free Garden Nursery Business Plan Template + Example - Bplans Garden Nursery Business Plan Ready to start your own garden nursery business? Set yourself up for success by creating a solid business plan. Download this business plan template, with pre-filled examples, to inspire your own plan.

  22. Nursery Business Plan Template [2024 Updated]

    Introduction When it comes to realizing a nursery business idea, writing a nursery business plan is a very vital step. Many entrepreneurs are showing interest in selling and growing different types of plants for residential and commercial purpose. Nursery industry includes direct sellers who deal with consumers and businesses.

  23. Nursery School Business Plan [Sample Template]

    A Sample Nursery School Business Plan Template. 1. Industry Overview. Nursery Schools provide preschool education services for children aged three and four, combined with day care. Most businesses in the nursery school industry are private but may get funding from a variety of sources, including state and federal grants.