Owning / running a children’s nursery.

[Dave O'Sullivan]

Hi all,
The owner of the nursery that my wife works at has announced that she’s retiring at the end of the summer term.
I am considering taking it on. My wife has worked there for a few years (and is a qualified teacher) but I’d like to know if anyone has experience as an owner of such a business.
Any advice? Words of wisdom?

Cheers

[r.dawson]

My wife has worked in and around nurseries for nearly 20 years.

Does the business come with any assets, building, etc?



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[Inigo]

My wife runs one that she setup.

If your wife already works there she will know if it is worth taking on. Some are focused on the children, some make a very good living as baby farms. Presumably there is a happy mid-point.

[RustyBin5]

Buy the building it’s in as part of the deal, preferably in a Sipp. If your wife retires and sells the business in the future then the ongoing rental from the new owner of the business would be a welcome boost to retirement income.

[Dave O'Sullivan]

My wife has worked in and around nurseries for nearly 20 years.

Does the business come with any assets, building, etc?



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No, aside from equipment etc..I’m getting lease agreement details.

- - - Updated - - -

My wife runs one that she setup.

If your wife already works there she will know if it is worth taking on. Some are focused on the children, some make a very good living as baby farms. Presumably there is a happy mid-point.

It’s well regarded locally and very much children focussed.

[Inigo]

Seemingly random changes in government policy can effect the viability of nurseries in certain areas, however, people will always need their children looking after. Nurseries have remained open throughout this pandemic.

[r.dawson]

If it doesn't come with the building as an asset I wouldn't bother. It only takes one bad offstead inspection or a bad experience from a parent to take a profitable business into a non profitable business and you would be left with a lease to pay.

Plus you have restrictions on what you can do with the building if the EYFS changes and you want to meet the new needs.

I'd also ask if your Mrs is more interested in running a nursery or working in one. Looking after children is very different from looking after the business. There is the battle over the cost of 15/30 hours funding, staff turnover (would they be happy her being the boss), collecting balances from parents, meeting parents needs/requirements... The list goes on.

Obviously there is the flip side of being in charge of a successful business that starts children on their path to life but I'd weight up the risks.

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