by: mel - 03-06-12 15:40
Hi everyone,
I opened a nursery 4mths ago & have already learnt lots of business mistakes such as being too flexible. The nursery is 94% full already but that doesn't mean each hour is full.
Can anyone give some good business tips or ways they handle their waiting lists, much appreciated.
Thanks guys xx
by: Maureen Askew
Hi Mel
Glad to here your new venture is doing so well, your waiting list should be managed via your admittance criteria, and not on a first come first served basis, and should be shared with all parents, when they put their child's name on the wiating list. Obviously you need to fill full time places first, followed by part time either full days or half day sessions, and then free sessions. Babies places do tend to be lost leaders but do move through the nursery providing some continuity and stability. I hope you have based your fees on the unit cost per hour and not on what the nursery down the road charges.
If managed carefully free sessions can help fill what can otherwise be 'empty' hours being flexilbe doesn't mean you have to meet every parents individual needs, just that you have to be able to offer a choice of session types.
8 places of 10 hours over 5 days provides 400 hours of childcare. if managed carefully this will provide 26 free entilement places. (38 weeks)
Give me a ring if you want to discuss further 01282 864208.
by: raramoo
Mel,
Like you I tend to be a little too flexible as I have had the mindset of any business is better than non. Now, 3 years and a little more experienced I am starting to look closer at things. It is obviously better to have any business than turn it away but make sure that the flexibility you are offering doesn't compromise and force you to spend more to accomodate.
Take a look at what the nurseries in your area offer in the way of packages and have a look at what the nursery chains offer. I takd alot of ideas from one of our local providers who are an up and coming chain.
Maureen, some great comments there that have taken my interest. It took around a year until I realised our fees needed to be based on our cost per hour. I don't have any previous experience in nursery or business so I have been picking up tips and thankfully speed along the way!
by: Maureen Askew
It has been my experience that particularly independent nursery owners open childcare businesses because they love children and have the relevant childcare qualifications, but don’t necessarily have the same level of business skills. Chains tend to have it covered. Running a nursery or childcare setting is like no other business, it comes with its own set of problems and peculiarities. All LA’s provide support in raising the quality of childcare but tend to offer very limited if any support for the business aspects of childcare. I have experienced nurseries with Outstanding and Good grades close because the owner wasn’t able to manage the business side effectively, and didn’t know where to obtain the support they needed. That’s why I started my own business offering specialist business support to the childcare sector. www.askaskew.co.uk
by: raramoo
It certainly is a business like no other. I have family who don't understand that my life is literally 'nursery' and everything I do must fit in with it. I cant simply go on holiday and forget about work for a week or two. My laptop is more prominent on my shoulder than my handbag! i have hundreds of thousands going through my bank account each year and have no money! Can someone remind me why we do this?? :-)
As I have said in other posts, our LA seems to have been a hinderence to our setting. One things that really infruriates me with LA advisors is they have no idea when it comes to Employment Law. We are constantly being told to do this and that with staff and quite simply they dont understand that it isn't that easy.
by: CJ
we often provide consultancy and training for settings and local authorities where managers are managers because they are good with children but have not had experience or training in employment law, finance, business management etc
www.acornexcel.co.uk is our managers support service giving unrivalled access to a range of professional support
by: whmon
Basically, my manager is a figurehead. As the owner, I do all of the managing. When I bought this nursery I found that the existing manager was embezelling. Now, I will never let that happen again.
by: CJ
why do you need a figure head? surely that is wasting money?
by all means keep your hand on the cheque book but why pay a manager and do it all yourself?
by: scarlett
I own and manage, no way could I support 2 supernumery staff. Maybe whmon doesnt have qual?
I have been thinking for a while now to employ an administrator and me work in the rooms sometimes. I find a lot of my time is spent doing easy admin when I could be plannning and thinking.
by: CJ
it would be cheaper to employ an administrator than do it all yourself
you could offer say school hours which would make it very attractive?
you can give them all admin to do, just keep yourself as the cheque signatory and still review all finances!
by: whmon
CJ, I need a figurehead because I don't have childcare qualifications (and don't intend to get them as I am almost retirement age)
by: Tish501
Same here Whmon....have 20 years pratical childcare experience,bit not on paper.....I too.'manage 'like you.....but have a manager with the degree in childcare.....I like it this way,although keeps me very busy....I am not responsible for any Learning Journies,but do the fees,wages,and lots of other jobs.Planning,Obs etc left to my staff,paid over the min wage,as they are my most important asset.I too nearly retiring...would love to put my feet up and relax,but my manager thinks parents should not have to pay their fees when i give invoices out,...she is always sympathetic to their plight....but in a very small village we know who our 'drinking 'mums are at the weekend....usually the ones who owe fees.......enough said....who could I trust with collection of the fees that pay the wages??
by: scarlett
Im qual to L6 and do all the leadership, ,management, wages, invoices, polices, oversee planning, moderate profiles etc (I delegated accounts to my deputy) with me overseeing it. I do all the office admin as well.
I am really tempted to get an administrator but my current staffing at the moment doesnt allow for it unless I let someone go or change hours radically. Think I need to harden up a bit and not care about the staff so much.
Scarlett I am in the same boat as you! I also feel very nervous about handing over the finances to someone else. It has taken me 12 years to build up my settings and times are hard at the moment with cash flow and keeping staff.
by: scarlett
Kaz me too, I posted another thread but noones replied yet, we are really struggling with cash flow/finances, just cant seem to break even.
Think the type of customer were getting isnt as good, eg the funded sessions, its ok for some people to say limit those sessions, but if they are the only ones wanting a space you have to take them.
We also get some children leaving us when they are 3 to go the the 'school' in the next village as parents think (no matter what marketing we do) thats what you do.
by: scarlett
Kaz me too, I posted another thread but noones replied yet, we are really struggling with cash flow/finances, just cant seem to break even.
Think the type of customer were getting isnt as good, eg the funded sessions, its ok for some people to say limit those sessions, but if they are the only ones wanting a space you have to take them.
We also get some children leaving us when they are 3 to go the the 'school' in the next village as parents think (no matter what marketing we do) thats what you do.
by: CJ
we offer consultancy services - an experienced business owner/manager can come and visit you, and give 1:1 help if required
cash flow
profitaility
profit margins
staff management
and much more
feel free to email for quote
by: scarlett
Ive had a bit of a wake up call.
(no thanks cj I have been in this particular business for 15 years and have extensive management experience, (not sounding big headed but its not that I 'was a nursery nurse before and now cant run a business')
Basically a lot of nurseries are struggling, I think its the ones that do it right, no cheap food, decent wages etc but I think I am going to have to either cut hours or let someone go. I will work more in rooms too.
It might only be in the short term ie over a few months but will help sustain my business. I need profit to reinvest back into the business and unfortunately there is none at the moment.
by: Maureen Askew
I agree with a lot of what has been said, I think a lot of independent nurseries are struggling, if anyone would like a free no obligation Business Health Check toolkit, please email me on maskew533@btinternet.com. It’s very easy to use and will help you identify priority areas of your business.
I'm also developing a quarterly childcare business newsletter if anyone would like to be added to the mailing list, just let me know.
by: CJ
scarlett- you need to look at the long term too- is cutting hours going to get you through the short time, but what the long term-
i personally have run several business and helped friends who have run their own too- a couple of them we soon got to the bottom of their finances that they just weren't viable!
you need to do what is best for the businessm but if looking at reducing contracted staffing hours or redunandcy, make sure you stay inside the law!
by: kevin cena
I think toll free numbers are good for you, why not you try to use them. They are very good for beginners.
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