Business planning as a new childminder
When considering becoming a childminder it is important to consider the steps required to run a successful childminding business.
Market research
Market research allows you to see how much demand there is in your area for a new business or service. It is important to understand the demand and requirements of your local community to ensure your childcare provision will be successful. Analysing competition will help you decide whether there is a gap in the market for your childcare setting.
The annual childcare sufficiency assessment can support new providers to identify where there is likely to be a demand for childcare and what type of childcare is most needed.
We have developed the consultation toolkit below to support you in gathering valuable information as part of your market research.
Business and financial planning
All businesses need to be well-managed to be successful and sustainable.
Business and financial planning is essential for all early years and childcare providers, as this helps you to react to challenges and adapt to new circumstances. It also enables you to identify not only where you want your business to be, but also how you are going to get there.
Comprehensive information and guidance on developing a successful business plan, along with key financial issues you will need to consider, is available on our business and financial planning page.
Premises and planning permission
The number of children you can look after will depend upon the useable space inside your premises.
The Early Years Foundation Stage (EYFS) statutory framework for group and school based providers (page 27 section 3.57) tells you how much space is needed for each child depending on their ages.
You should contact your local district or borough council for advice and to let them know that you are thinking about becoming a childminder. Each district or borough will give individualised advice on whether:
- planning permission is required for the size of your business or property
- a change of use of premises is required
Each district and borough council has their own rules and criteria. For more information, visit the Planning Portal to find contact details of your local planning department.
If you rent your property, check with your landlord or letting agency whether you have permission to operate a childminding business from the premises before you register.
Using a vehicle
If you plan to use your vehicle as part of your childminding business, you must inform your motor insurer to arrange business insurance cover.
Ofsted inspectors or the childminding agency may ask to see your MOT certificate, insurance policy document and driving license as part of your registration process. If are you going to use your car to carry minded children, you will need to use appropriate car seats.
Business tax and insurance
You will need to notify HMRC as soon as you begin working. They provide webinars (live or recorded online tutor-led seminars) to help you understand how to register, calculate and pay your tax bill.
You will also need to show that you have made provision for public liability insurance. Some organisations have dedicated products for childcare professionals. Some may also offer start-up paperwork, such as attendance registers, accounts books and accident or incident records.