Thinking of starting a childcare business

Thinking of starting a childcare business?

Starting a childcare business is a big commitment and prior to starting you will need to consider existing childcare in your chosen area and ‘demand' for the childcare you want to provide.

You will then need to decide what type of childcare you want to provide:

  • A day nursery
  • A playgroup 
  • An out of school club (after school or holiday club) 
  • A registered childminding service 
  • A parent and toddler group

In order to determine whether there is a demand for the service you intend to offer, you will need to carry out some market research.

This should cover all aspects of your proposed operation - ages of children, hours of opening, fees, programme of activities etc. This will help indicate the size and type of the premises you will be looking for.

Every local authority in Wales is required to carry out a Childcare Sufficiency Assessment (known as a CSA) every three years where childcare supply and demand is analysed and gaps in provision identified. The CSA can be a useful tool when researching ‘childcare' needs within a specific area.


ID: 1769, revised 22/02/2023