Financial viability of your project
It is important to be realistic about costs and to be aware of the cost implications of caring for different age groups. Babies and toddlers require more space, more facilities and a much higher staff ratio than older children. You will need to consider the following costs:
- purchase and lease of premises
- legal fees, architect’s fees etc
- conversion costs
- equipment
- registration and insurance
- on-going running costs
- staff costs.
Most new early years and childcare businesses take time to get established, this may result in a loss or just breaking even for a number of months. It is good practice to complete a cash flow forecast for at least 3 years for the new business to ensure that all costs have been considered.