Set up or expand early years and childcare provision

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.

• Consultation toolkit (PDF, 657KB)

The first thing you need to consider is what kind of early years and childcare (EYC) provision are you hoping to offer. This could be:

Early years provision

Childcare and education for children under the age of 5 years:

• pre-school - typically term time only, 9.00am to 3.00pm
• day nursery - typically all year round, 8.00am to 6.00pm

Childminding

Looking after other families’ children in someone’s home. This can be your home, or someone else’s. For further information, refer to our become a childminder page.

Wraparound childcare

Childcare for school aged children that wraps around the conventional school day:

• before school childcare (breakfast club) - typically term time only from at least 8.00am
• after school childcare - typically term time only until at least 6.00pm

Holiday playscheme

Provide childcare for school aged children during school holidays.

Business planning is essential for all early years and childcare providers as this helps you to react to challenges and adapt to new circumstances. Business planning also enables you to identify not only where you want your business to be but also how you are going to get there.

Comprehensive guidance on developing a successful business plan is available on the business and financial planning page for your early years and childcare setting webpage.

There are a range of different business legal structures, and it will be important to find about these to ensure that the one you choose is right for you.

All businesses need to be well managed to be successful and sustainable. Running a childcare business can have fluctuations that you will need to plan for ongoing.

Information and guidance on key financial issues you will need to consider is available on our financial planning page.

The suitability of premises, including space requirements, are set out in the early years foundation stage (EYFS) statutory framework for group and school based providers.

You should ensure that access is available for those with physical disabilities and you will need plenty of storage space for your equipment. You will also need to ensure that you have enough toilets and washbasins for the children, as well as giving them access to an outside play area each day. If your premises has access to nearby woodland you might like to set up a forest school if you have had the necessary training to run one.

For a playscheme or pre-school, you may want to hire a hall. Your local district or borough council may have lists of halls and venues that are available to hire, along with their costs and conditions.

If you are thinking about buying a property, contact a local estate agent who deals with commercial properties. You could also rent a commercial property, but you may have pay VAT on top of the rent. Commercial premises need to have a D1 Business use classification so you may need to apply for planning consent for change of use.

You will need to check with the fire and rescue service to ensure the building meets fire regulations.

If you are planning to prepare food on the premises, you will need a certificate from the relevant District or Borough Environmental Health team. See suitable premises information for further guidance.

If you are thinking about extending or changing your own home to offer childcare, you'll need to contact the planning office at your local district or borough council. You'll need permission to change residential premises into business use.

Ofsted is a government department responsible for registering and inspecting early years and childcare settings for children aged 8 and under.

Businesses offering childcare must register with Ofsted except in a small number of circumstances. Ofsted manage 2 registers - the Early Years Register and the Childcare Register.

The Childcare Register is made up of 2 parts - the Compulsory Childcare Register and the Voluntary Childcare Register. You may be required to register on more than one of these registers.

The county council have an extensive, reasonably priced training offer to support new and expanding childcare businesses. For details, see our early years and childcare training and support programme.

We have also developed a series of self-led, eLearning courses for new and expanding businesses. The eLearning courses are available on the West Sussex Learning Pool.

No booking is needed, but you must create an account to access the course. You can complete the course at a time that suits you, as many times as you need. New courses may be added during the year.

Individual courses applicable to new and potential businesses:

• New early years setting - There is a lot to consider when setting up a new childcare business. This course presents an overview of the process and is both a guide and reference point to build your knowledge. It contains a wealth of information and support.
• Developing a Business Plan for Childcare Services - This will support you to prepare or redraft your business plan to concisely describe your business, objectives and strategies. It will help you plan its financial forecasts to support you to ensure your business' sustainability and growth
• Marketing for early years and childcare providers - Why should parents and carers choose you when looking for childcare? Discover why marketing is a crucial activity for successful childcare businesses.
• Effective leadership: New manager support - Provides an overview of the role and the support available in for new managers and leaders in West Sussex.
• New early years practitioner - For new or returning early years practitioners. It will introduce the responsibilities of the role and support the development of knowledge and skills around key topics.
• New early years room leader - Suitable for new room leaders. It will introduce the responsibilities of the role and support the development of knowledge, skills, and confidence needed to be an effective and successful room leader.

How many staff you need to employ depends on how many children you look after and how old they are. Providers offering early years or wraparound childcare provision for children aged 0 to 5, including children who normally attend reception class during the school day, must ensure they have sufficient staff.

This is stated in the early years foundation stage (EYFS) statutory framework for group and school based providers (see from paragraph 3.35).

You must follow safer recruitment guidelines including interviews and pre-employment checks. For further guidance, visit our staff suitability page.

If your planned provision is intending to replace existing provision through a business transfer or take-over, steps must be taken to ensure Transfer of Undertakings Protection of Employment (TUPE) regulations are met to protect employee rights.

This means that if the work is continuing but a different childcare provider is taking over the work, then TUPE applies. For further information on TUPE visit the GOV.UK website.

The Early Years Funded Entitlement (EYFE) is available for children aged over 9 months old to statutory school age who meet relevant eligibility criteria.

For further information on EYFE funding rates and how to join the scheme, view our providing early years funded entitlements page.

Local authority funding operational guidance is available from GOV.UK.

As well as being financially viable, you will also need to consider how you will ensure you are providing high quality, inclusive education and childcare. Research is clear that high quality education in early years improves outcomes for all children and has a particularly positive impact for the most vulnerable children.

The early years foundation stage statutory framework for group and schools-based providers sets standards for the learning, development and care of children from birth to 5 years old. All Ofsted registered early years and childcare providers must follow the EYFS.

Our information for childcare providers offers support and guidance, which will be of use both prior to opening your setting and as an on-going resource to help you.

The West Sussex Safeguarding Children Partnership details all the procedures you are expected to follow in West Sussex. Every adult working with children has a duty to report concerns regarding the welfare of any child. This must be reported to children’s services, in line with the Childcare Act 2006 and local safeguarding children board procedures.

• Sussex Child Protection and Safeguarding Procedures

The county council provides the following local courses at competitive prices:

• Safeguarding and child protection for early years and childcare practitioners
• Safeguarding and child protection designated refresher training for childminders (if you have previously completed a safeguarding course)

Please check the Early Years training brochure for the latest dates and booking information.

Further information and guidance for Early Years and Childcare providers is available on our safeguarding pages.

All early years and childcare providers must ‘have regard to the Special Educational Needs and Disabilities (SEND) Code of Practice 2015’.

Chapter 5 of the Code of Practice explains the actions early years and childcare providers should take to meet their duties in relation to identifying and supporting all children with SEND.

This guidance is relevant to children with and without an Education, Health and Care plan (EHCP). The majority of children with additional or SEND will not require special resources or enhanced staffing to be successfully included.

Most early years and childcare providers will meet the additional needs of their children well using reasonable adjustments and Ordinarily Available Inclusive Practice (OAIP).

Further information and support:

• diversity and inclusion
• inclusive practice
• SEND