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3 Ways To Make Your Nursery More Profitable – Even If You’re Receiving Government Funding

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Are you struggling with rising costs and wondering how you’ll balance the books of your nursery? Do you want to provide the best environment and resources for the children in your care but don’t have sufficient funding to make it possible? Frustrated at the lack of concern for the growing numbers of nurseries closing due to insufficient financial support?

We hear your outcry, and we know it’s particularly worrying right now with the cost of living exponentially rising.  More and more nurseries are closing, going into administration or struggling to survive the current spiralling costs.

So what can you do right now to help your nursery not only save money but make a profit?  Would you like to know what steps you can take in the future to ensure your healthy profit is maintained? We have 3 key ways to make it happen…

Profitable Nurseries Are Considered A Contradiction

Profit and early years care is often considered a contradiction. There’s a common narrative that childcare ought to be run on love and care for children alone, without any need for monetary gain.  

If you’ve dared to speak up about profit in association with your childcare setting, you’ve no doubt been made to feel that you’re being unfair – if not unethical.

The common conception is, ‘Shouldn’t early years care be focused on nurturing the youngest in society?’ Or, ‘Why should anyone make a profit from caring for young children?’  

But the truth is, there’s no such thing as cheap childcare – not if you want to provide the environment and opportunities that allow young children to thrive.  

The next generation deserves the richest of experiences and we know it’s your wish to give them that.  But how can you provide children with what they so rightly need and deserve without appropriate funding? 

At MBK Group we understand you’re doing everything you know how to keep your childcare setting open. We want to help you do that and more; we want to see your nursery not only survive but succeed as a profitable business.  

3 Simple Yet Important Ways Your Nursery Can Make A Profit

When taking advice it’s best to look to those with experience. Someone who knows a thing or two about profit is Warren Buffet, the 7th wealthiest man in the world, who has two rules when it comes to making money:

  1. Don’t lose money
  2. See rule number 1

Sometimes the simplest advice is the most significant! So how exactly can you make sure you don’t lose money from your nursery and importantly, make a profit?


#1. Remember Your Nursery Is A Business

Because the purpose of a nursery is to care for young children, it’s easy to forget that it’s a business too.  Add in the social narrative that it should be cheap, if not free, thanks to government (under) funding then the reality that your nursery is a business is lost.

You may be receiving government funding, but as we all know, this isn’t enough to cover expenses, let alone make a profit. Find out what you can and can’t charge for and don’t expect the government funding to make childcare ‘free’.  It makes it affordable, and you can charge for extras to maintain the high standard of your nursery.

You’ll likely come across some opposition, so make sure you do your research and explore what is and isn’t an option in line with government funding and the national LA guidelines. When  you’ve worked out what’s possible – go for it! 

Charging for the little yet essential things means you can provide the bigger picture – a valuable nursery setting that delivers an enriching experience for the families you serve.

#2. Take An Honest Look At Your Finances

With all that comes with running a nursery, keeping tabs on your finances can feel almost impossible. But it’s essential so you know exactly where you stand. 

Do you know all the ins and outs of your nursery running costs? Do you know how many sessions you need to sell to make a profit?

Sadly, too many nurseries measure their business success by the money in their bank account. This isn’t a true reflection of how well your nursery is doing financially. 

Costs can all too quickly run away from you, especially with the current financial situation. Invoices and bills slowly creep up and unless you’re keeping a close eye on your profit and loss, you can inadvertently begin to lose money.

Prioritise time to sift through the finances of your nursery on a regular basis. This will tell you exactly what financial position you’re in, and where you can make improvements.

If this is something you know you need to improve on, don’t put it off any longer!


#3. Plan & Prepare Your Particular Needs

We know a whole lot of planning goes into your nursery care; from meals and resources, to training and events. It’s really important you plan and prepare the logistics of your nursery too if you want it to prosper.

It’s the little things that can be critical to your success. Consider the number of children you have in on certain days and the resources and staff you assign. If you allocate more staff than needed, you’re losing essential funds.

Every nursery setting is unique so don’t be afraid to plan and prepare what you need for your particular set-up. 

By thinking ahead and carefully planning the resources you need for your particular nursery, you can ensure your nursery not only offers a supportive space for the children in your care, but will also be a successful business for many years to come.

The Little Things Make All The Difference

The great news is that no dramatic changes or huge investments are needed to make your nursery more profitable. It comes down to making a few essential yet attainable changes.

Whether government funding simply isn’t matching up, or financial hardships are making a profit seem unachievable, there are some simple things you can do to take control of your nursery’s finances. From affordable and permissible charges, to knowing your expenses and income, along with well-organised rotas and resources.

By focusing on the fact that your nursery is a business and fully understanding your finances, you can shift from struggling to thriving.

If you would like to find out more about how to make your nursery a profitable business, get in touch with our friendly team today. With more than 100 years of combined early years experience between us, we have all the know-how you need to make your early years business more profitable. 

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