Starting Your Home-Based Childcare Business: A Step-by-Step Guide

Introduction

The demand for childcare services is increasing, with some parents waiting nearly two years for a nursery placement (BBC News). One of the reasons for the demand is the UK Government’s plans to increase funded childcare hours in England. Therefore, it is a great time to consider starting a home-based childcare business, especially if you are passionate about children and childcare.

Starting a home-based childcare business can seem daunting. There is a lot to learn, consider and prepare for, as childcare providers are responsible for looking after children’s health, safety and welfare, and they also have a crucial role in their learning and development. Then there is ensuring the home is suitable for looking after and caring for other people’s children and compliance with all the legal requirements.

With appropriate information and guidance, you can learn how to start a home childcare business and ensure it is a success. This blog post aims to help with this, and it will provide a detailed step-by-step guide for aspiring childcare providers, from the basics to more complex aspects.

Understanding the Basics of Home-based Childcare

Childcare is “any form of care for a child, including education or any other supervised activity” (Childcare Act 2006 Section 18). Those who provide home-based childcare are often known as childminders. They are paid or rewarded for looking after other people’s children in their or someone else’s home, i.e. at a domestic premises, rather than in an institutional setting, such as a nursery or pre-school.

Childminders differ from babysitters and nannies, as they will look after different children in their own homes. They can also take care of early years children, e.g. 0-5 years old, but they need to register and meet additional requirements to comply with the law.

There are many advantages of home-based childcare, such as:

• It provides children with a home-like environment to help them feel more secure, and many childminders are also parents themselves, so they have experience.
• It reduces the risk of children getting sick, as there are fewer children to look after.
• It allows children to mix with other children of different ages, which helps them to develop social, language and communication skills.
• It allows childcarers to form close bonds with the children, boosting their health and well-being.
• It supports children’s education by offering learning opportunities (Ang, 2023).
• It provides children with more personalised attention and play.
• It is often a more cost-effective option for parents and caregivers than a nursery.

There are many laws surrounding the provision of home-based childcare. While you do not need extensive legal knowledge, you should be aware of the legislation with which to comply. These will vary for each UK country, i.e. England, Wales, Scotland and Northern Ireland, and will depend on the ages of the children you want to care for. Here are some examples:

England

• The Childcare Act 2006.
• The Childcare (General Childcare Register) Regulations 2008.
• The Childcare (Early Years Register) Regulations 2008.

Scotland

• The Health and Social Care Standardsand the Public Services Reform (Scotland) Act 2010.
• The Social Care and Social Work Improvement Scotland (Requirements for Care Service) Regulations 2011.

Wales

• Part II of the Children and Families (Wales) Measure 2010.
• The Child Minding and Day Care (Wales) Regulations 2010.

Northern Ireland

• The Children (Northern Ireland) Order 1995.

There are also laws regarding employment (if employing staff), self-employment, health & safety, fire safety, food hygiene and safety, anti-discrimination, data collection & protection, safeguarding, duty of care, etc.. Further information on the legal requirements is on Childminding UK and Parenta.com. Your local council should also be able to advise on the legal requirements specific to your childminding business.

You must comply with statutory frameworks, such as the early years foundation stage framework, to care for children between 0 and 5 years old. There are also Ofsted requirements if you are on the Voluntary Childcare Register or the Compulsory Childcare Register (if caring for children between 5 and 8 years old).

Planning Your Home-based Childcare Business

Children should be at the heart of a home-based childcare business. However, it will also be a source of income for you and your family, so you want it to succeed while helping children and their families. It is, therefore, vital to have a well-thought-out business plan to increase the chances of a successful home-based childcare business for the following reasons:

• It makes a business idea clear.
• It helps in making important decisions and business management.
• It determines the feasibility of the business.
• It collates all of the business information in one place.
• It helps to set clear goals and measure progress, including anticipated income and spending.
• It identifies any problems or any business strategy gaps.
• It is a requirement for a bank business loan or an investment.
• It increases understanding of any competition, as it is a competitive sector.

You should tailor your business plan to your home-based childcare setting and describe the business. Here are some tips on how to achieve this and what you will need to consider to ensure you have a robust plan:

• Add an executive summary on the front page, which gives an overview of the plan and key points. It should be clear, concise and ideally no more than two pages. It is best to do this after completing the plan.
• Provide details of the proposed setting, e.g. location, building type, size, indoor facilities, outdoor spaces and play areas, proximity to transport links, pets, own children, etc. Use this as an opportunity to sell your setting.
• Decide on the ages of the children you will care for, i.e. early years (0-5) or later years (over 5), as there will be different requirements and costs, e.g. equipment and legal. Also, include how many children you will look after, keeping the legally required ratios in mind.
• Think about the type of childcare you want to offer, i.e. full or part-time? Weekdays or weekends? Mornings, afternoons, evenings or nights? Drop-offs or pickups from nursery or school? Special Educational Needs and Disabilities (SEND)? Is there a gap in the market to fill?
• Look at the catchment area and decide what areas you want to serve. For example, if your house is in a more rural area, think about where children will travel from.
• Define markets, your position and any competitors, which will require market research. You should include the demand and need for services, the targeted clients and local competition from other childcare providers, nurseries, other childminders, etc. A SWOT analysis is a useful planning tool.
• Consider business start-up and running costs, i.e. any changes to the home, equipment, training, registration, insurance, staff and other necessary resources. Will the business need short-term or long-term finance?
• Include if you will take on any staff, e.g. assistants, and how much you will pay them, their qualifications and training, contracts and proposed working hours. Think about how you will recruit. If you do not intend to take on staff initially, consider whether you will need to in the future.
• Identify the overall goals you want to achieve and how you will achieve them, i.e. your objectives. Use SMART goals to help.
• Decide the fees you will charge, considering your location, facilities, training, experience, food provision, utilities, transport and the ages of the children you will be caring for. You will also need to consider how government funding fits in, e.g. Tax-Free Childcare, any discounts you may offer and any future changes in pricing.
• Include predicted revenue forecasts (future revenue), profits after expenses and cash flow forecasts (money flowing in and out of the business).

Review the business plan frequently and update and change it where necessary. It should be a ‘living document’ to help you achieve your goals, not just a one-off exercise.

Further information on business plans and some examples of templates and plans are on:

• CPD Online College – planning your childminding business.
• PACEY – business planning examples.
• West Sussex County Council – guidance on how to develop a successful business plan.
• UK – write a business plan.
• Calderdale Council – childminder business plan template.
• Essex County Council – business plan template guidance.

Your local council may also be able to provide advice and guidance on preparing a business plan for your home-based childcare business.

Meeting Licensing and Registration Requirements

Registration is essential when starting a home-based childcare business as a childminder. You must either register with a childminder agency or the appropriate statutory body.

England

Unless you are exempt, you must register with Ofsted or a childminding agency if:

• The children you will care for are under the age of 8.
• You will care for them for more than two hours daily.
• You will care for them in your own home.
• You will receive a payment or reward.

The ages of the children you will care for in your own home will determine the registers in which to apply, for example:

• The Early Years Register – if you want to care for children 5 and under (from birth to the 31 August after their 5th birthday).
• The Compulsory Childcare Register – if you want to care for children between 5 to 8. There is also the Voluntary Childcare Register for those caring for children over the age of 8, which is common for nannies and daycare centres.

You must apply to the Early Years and Childcare register to care for children of all ages.

Northern Ireland

You must register with your local Health and Social Care Trust (HSCT) if:

• The children are under the age of 12.
• You are not related to the children.
• You will look after them for more than two hours daily.
• You will look after them in a private home.

Scotland

You will need to register with the Care Inspectorate if:

• The children are under the age of 16.
• You are paid to look after children.
• You will look after them for more than two hours daily.
• You will look after them in a private home.

Wales

You will need to register with the Care Inspectorate Wales if:

• The children are under the age of 12.
• You are paid to look after children.
• You will look after them for more than two hours daily.

The registration steps you should follow will depend on where you are based. For further information on registration, see:

• England – UK.
• Northern Ireland – Health and Social Care Trusts.
• Scotland – Care Inspectorate.
• Wales – Care Inspectorate Wales.

Registration is mandatory, and you will be breaking the law if you work as a childminder, do not register and are not exempt. It can lead to prosecution, meaning a fine, imprisonment or both.

To register, you must be 18 or over and have the right to work in the United Kingdom. You must also submit various information to the appropriate statutory body. Here is what you will need to register as a childminder in England and other things to be aware of:

• Enhanced background checks
• Registering as a childminder requires an enhanced background check with barred lists, which looks at whether you have a criminal record or have ever been barred from working with children.
• Any adults living with you or working at home regularly during childcare hours must also undergo a check.
• For further information, see:
• England – Disclosure and Barring Service (DBS).
• Northern Ireland – AccessNI.
• Scotland – Protecting Vulnerable Groups (PVG) scheme.
• Wales – Disclosure and Barring Service (DBS).
• Qualifications and training – you will need to show your qualifications and training relating to childcare and should have a paediatric first aid certificate.
• Health declaration form – you must complete a health declaration form to care for early years children. Your GP will also be required to complete a section, and they may charge a fee.
• References – you will need to provide contact details for two references.
• A certificate of good character – if you have lived overseas within the last five years, you must obtain a certificate of good character from an embassy, essentially a criminal record check.
• Fees – you must pay a fee to register as a childminder and also an annual fee. Registration costs differ between UK countries and the ages of the children you will look after, e.g. in England, it is £35 (early years and all ages) and £103 (over 5s).

It is essential to check you have the correct information and send it to the appropriate statutory body. If anything is missing, it may result in the application being rejected or taking longer to process. If everything is present and correct, it typically takes around twelve weeks to process applications in England.

If you want to provide food and drink to children, you must also register as a “food business”. In England, Ofsted or your childminder agency will use the details you provide to register you with your local authority (GOV.UK).

After being accepted onto the Early Years Register, you can expect an inspection from Ofsted, usually within 30 months of registration and at least every six years after that. They will inspect those on the Childcare Register at random on a risk basis. GOV.UK has further information on inspections here.

Planning Your Home-based Childcare Business

Children should be at the heart of a home-based childcare business. However, it will also be a source of income for you and your family, so you want it to succeed while helping children and their families. It is, therefore, vital to have a well-thought-out business plan to increase the chances of a successful home-based childcare business for the following reasons:

• It makes a business idea clear.
• It helps in making important decisions and business management.
• It determines the feasibility of the business.
• It collates all of the business information in one place.
• It helps to set clear goals and measure progress, including anticipated income and spending.
• It identifies any problems or any business strategy gaps.
• It is a requirement for a bank business loan or an investment.
• It increases understanding of any competition, as it is a competitive sector.

You should tailor your business plan to your home-based childcare setting and describe the business. Here are some tips on how to achieve this and what you will need to consider to ensure you have a robust plan:

• Add an executive summary on the front page, which gives an overview of the plan and key points. It should be clear, concise and ideally no more than two pages. It is best to do this after completing the plan.
• Provide details of the proposed setting, e.g. location, building type, size, indoor facilities, outdoor spaces and play areas, proximity to transport links, pets, own children, etc. Use this as an opportunity to sell your setting.
• Decide on the ages of the children you will care for, i.e. early years (0-5) or later years (over 5), as there will be different requirements and costs, e.g. equipment and legal. Also, include how many children you will look after, keeping the legally required ratios in mind.
• Think about the type of childcare you want to offer, i.e. full or part-time? Weekdays or weekends? Mornings, afternoons, evenings or nights? Drop-offs or pickups from nursery or school? Special Educational Needs and Disabilities (SEND)? Is there a gap in the market to fill?
• Look at the catchment area and decide what areas you want to serve. For example, if your house is in a more rural area, think about where children will travel from.
• Define markets, your position and any competitors, which will require market research. You should include the demand and need for services, the targeted clients and local competition from other childcare providers, nurseries, other childminders, etc. A SWOT analysis is a useful planning tool.
• Consider business start-up and running costs, i.e. any changes to the home, equipment, training, registration, insurance, staff and other necessary resources. Will the business need short-term or long-term finance?
• Include if you will take on any staff, e.g. assistants, and how much you will pay them, their qualifications and training, contracts and proposed working hours. Think about how you will recruit. If you do not intend to take on staff initially, consider whether you will need to in the future.
• Identify the overall goals you want to achieve and how you will achieve them, i.e. your objectives. Use SMART goals to help.
• Decide the fees you will charge, considering your location, facilities, training, experience, food provision, utilities, transport and the ages of the children you will be caring for. You will also need to consider how government funding fits in, e.g. Tax-Free Childcare, any discounts you may offer and any future changes in pricing.
• Include predicted revenue forecasts (future revenue), profits after expenses and cash flow forecasts (money flowing in and out of the business).

Review the business plan frequently and update and change it where necessary. It should be a ‘living document’ to help you achieve your goals, not just a one-off exercise.

Further information on business plans and some examples of templates and plans are on:

• CPD Online College – planning your childminding business.
• PACEY – business planning examples.
• West Sussex County Council – guidance on how to develop a successful business plan.
• UK – write a business plan.
• Calderdale Council – childminder business plan template.
• Essex County Council – business plan template guidance.

Your local council may also be able to provide advice and guidance on preparing a business plan for your home-based childcare business.

Meeting Licensing and Registration Requirements

Registration is essential when starting a home-based childcare business as a childminder. You must either register with a childminder agency or the appropriate statutory body.

England

Unless you are exempt, you must register with Ofsted or a childminding agency if:

• The children you will care for are under the age of 8.
• You will care for them for more than two hours daily.
• You will care for them in your own home.
• You will receive a payment or reward.

The ages of the children you will care for in your own home will determine the registers in which to apply, for example:

• The Early Years Register – if you want to care for children 5 and under (from birth to the 31 August after their 5th birthday).
• The Compulsory Childcare Register – if you want to care for children between 5 to 8. There is also the Voluntary Childcare Register for those caring for children over the age of 8, which is common for nannies and daycare centres.

You must apply to the Early Years and Childcare register to care for children of all ages.

Northern Ireland

You must register with your local Health and Social Care Trust (HSCT) if:

• The children are under the age of 12.
• You are not related to the children.
• You will look after them for more than two hours daily.
• You will look after them in a private home.

Scotland

You will need to register with the Care Inspectorate if:

• The children are under the age of 16.
• You are paid to look after children.
• You will look after them for more than two hours daily.
• You will look after them in a private home.

Wales

You will need to register with the Care Inspectorate Wales if:

• The children are under the age of 12.
• You are paid to look after children.
• You will look after them for more than two hours daily.

The registration steps you should follow will depend on where you are based. For further information on registration, see:

• England – UK.
• Northern Ireland – Health and Social Care Trusts.
• Scotland – Care Inspectorate.
• Wales – Care Inspectorate Wales.

Registration is mandatory, and you will be breaking the law if you work as a childminder, do not register and are not exempt. It can lead to prosecution, meaning a fine, imprisonment or both.

To register, you must be 18 or over and have the right to work in the United Kingdom. You must also submit various information to the appropriate statutory body. Here is what you will need to register as a childminder in England and other things to be aware of:

• Enhanced background checks
• Registering as a childminder requires an enhanced background check with barred lists, which looks at whether you have a criminal record or have ever been barred from working with children.
• Any adults living with you or working at home regularly during childcare hours must also undergo a check.
• For further information, see:
• England – Disclosure and Barring Service (DBS).
• Northern Ireland – AccessNI.
• Scotland – Protecting Vulnerable Groups (PVG) scheme.
• Wales – Disclosure and Barring Service (DBS).
• Qualifications and training – you will need to show your qualifications and training relating to childcare and should have a paediatric first aid certificate.
• Health declaration form – you must complete a health declaration form to care for early years children. Your GP will also be required to complete a section, and they may charge a fee.
• References – you will need to provide contact details for two references.
• A certificate of good character – if you have lived overseas within the last five years, you must obtain a certificate of good character from an embassy, essentially a criminal record check.
• Fees – you must pay a fee to register as a childminder and also an annual fee. Registration costs differ between UK countries and the ages of the children you will look after, e.g. in England, it is £35 (early years and all ages) and £103 (over 5s).

It is essential to check you have the correct information and send it to the appropriate statutory body. If anything is missing, it may result in the application being rejected or taking longer to process. If everything is present and correct, it typically takes around twelve weeks to process applications in England.

If you want to provide food and drink to children, you must also register as a “food business”. In England, Ofsted or your childminder agency will use the details you provide to register you with your local authority (GOV.UK).

After being accepted onto the Early Years Register, you can expect an inspection from Ofsted, usually within 30 months of registration and at least every six years after that. They will inspect those on the Childcare Register at random on a risk basis. GOV.UK has further information on inspections here.

Setting Up Your Home Environment

You do not have to live in a huge house to provide childcare. However, you must have the correct space for the number of children you intend to look after and their ages. For example, if you look after children between 0-5 in England, you will need to comply with the requirements of the early years foundation stage (EYFS) statutory framework, which requires indoor spaces to be:

• 5m² per child (children under two years).
• 5m² per child (two year olds).
• 3m² per child (children aged three to five years).

You must also ensure you create a safe and welcoming childcare space within your home, and here are some tips:

• Ensure the entrance to your home and the porch/hallway are welcoming, calm, clean and free from clutter. You could put up pictures and a notice board with menus (if providing food), certificates and policies. A storage area for children to store their personal items is also useful.
• Risk assess your home and garden, i.e. identify any hazards that could potentially harm children and consider the likelihood and severity of them falling ill or getting injured. Remove hazards where possible and take necessary precautions to reduce the risk. Kitchens are particularly hazardous, as well as chemicals and electrics in the home. Childcare.co.uk has further information on risk assessments here.
• If you have pets, ensure they are vaccinated and are not left alone with the children. However, if your pets are friendly and safe, they can be a fantastic learning tool and a selling point for some parents and caregivers. Have a pet policy, get parents’ permission, and if children touch them, ensure they wash their hands afterwards.
• Do not go overboard with the toys. It will reduce your space and also introduce hazards. It is also an expense, so try to choose a selection of toys that allow children to play freely, use their imaginations, develop skills, such as fine motor, and learn at the same time, e.g.:
• Blocks for construction, such as Lego or Duplo.
• Books with lots of pictures.
• Shape stackers and sorters.
• Puzzles and jigsaws.
• Soft toys, e.g. teddies and dolls.
• Small world, i.e. house, farm, people and animals.
• Arts and crafts, e.g. playdough, pencils, paints and modelling clay.

The equipment and resources you will need will depend on the number and ages of the children, but here are some examples of items you may want to consider:

• Entrance/hall/porch
• Coat rack.
• Storage for children’s bags, shoes and other belongings.
• Bedroom/sleeping area
• Cot.
• Sleep mats.
• Bedding and sheets (for each child).
• Baby monitor.
• Thermometer (aim for between 16-20°C).
• Kitchen
• Cooking equipment, e.g. oven, microwave, toaster and hob.
• Refrigerator and freezer.
• Pots and pans.
• Food preparation equipment and utensils.
• Baby bottle sterilising equipment.
• Personal Protective Equipment (PPE), such as hair coverings, aprons and gloves.
• Dining/eating area
• High chair.
• Low tables and chairs.
• Child-friendly plates, cups, bowls and cutlery.
• Play area
• Age-appropriate toys, games and books.
• Storage for toys and games.
• Bathroom
• Potty.
• Booster step.
• Toilet adaptor seat.
• Baby changing equipment/mat.
• Nappies, wipes and creams.
• Health and safety and fire safety
• First aid kits.
• Fire extinguishers/fire blankets.
• Garden (where present)
• Mud kitchen.
• Sand pit.
• Balls.
• Water tables.
• Pots and seeds for planting and growing.

You can use your own furniture, equipment and utensils, providing they are child-appropriate, in good condition and safe.

PACEY has further information on creating effective spaces and some great ideas here.

Policies and Procedures

Policies detail how you intend to manage a particular area of your childcare business and your commitment to caring for children at your home. Your procedures will detail the actions you will take to implement your policies. It is essential to have these documents when setting up your childminding business for the following reasons:

• It is a requirement to have specific policies and procedures, e.g. to comply with the EYFS.
• It helps to explain policies and procedures to parents, caregivers, statutory bodies and childminder agencies (if used).
• It provides consistency and helps you to make decisions if you have something to follow.
• It demonstrates to parents and caregivers that you are serious about your business, are compliant and have their children’s best interests at heart.
• It helps to clarify any issues and misunderstandings if they arise.

You do not need policies and procedures for everything. However, if you look after early years children, you must comply with the EYFS, which requires you to have policies and procedures for complaints and safeguarding and child protection. While you do not need to write them down, it is good practice and looks more professional. It will also help you to remember them and keep on track if there are any updates.

You may also want to consider having policies and procedures on the following:

• Accident, injury and first aid.
• Emergencies.
• Administering medicines.
• Health and safety, including fire safety.
• Behaviour management.
• Equal opportunities.
• Anti-bullying.
• Admissions.
• Fees.
• Working in partnership with parents.
• Confidentiality.

There are various templates and examples of policies and procedures. The type you choose and the detail within will depend on the nature of your childminding business, your setting and the ages of the children you will look after. Always check the statutory requirements for the country where your business is based to identify any mandatory and recommended policies and procedures.

For further information, templates and examples, the following may help:

• PACEY – policies and procedures – what you need to know.
• co.uk – childminder policies & procedures.
• Bristol Early Years – Policies and Documents for Childminders.
• Local authority websites, e.g. North Somerset Council and Lambeth Council.

Marketing and Attracting Clients

Marketing is essentially undertaking various activities to promote your childminding services, and it is crucial to attracting clients and an overall successful business. Without it, your business is unlikely to get up off the ground and running. Therefore, an effective marketing strategy is a must.

You should start marketing as soon as possible. You can even do this while your registration is being processed, but be sure to mention this when advertising your services, i.e. “in the process of registration”. If you sign up with a childminder agency, they will typically support you with your marketing strategy.

Marketing strategies can include various activities, and here are some examples:

• Social media business page – whether on X (formerly Twitter), Facebook (Meta), Instagram, TikTok, LinkedIn, Pinterest or another platform, setting up a business page on social media can help to reach more clients. These platforms usually have guides on how to get started, e.g. Meta for Business.
• Website – having your own website is not essential, but it is a fantastic way to look professional to clients and make a good impression. Numerous website builders can help, with some tailored to childminding businesses.
• Advertise locally – some people may not be on social media or lack access to computers and the internet, so you should consider putting advertisements in local newspapers and magazines.
• Leaflets and business cards – have some engaging leaflets and/or business cards printed detailing your services. You could ask local facilities, such as GP surgeries, childcare centres, shops and nurseries, to display them. You could also deliver them to houses within your locality.
• Network – developing professional and social contacts through interactions and information exchange can be invaluable in getting new business and ideas. You could join online forums and local groups on social media (e.g. co.uk), attend local meetings and networking events, volunteer with children, etc.
• Word-of-mouth – as you become more experienced and acquire clients, word-of-mouth recommendations can help attract more business, but only if you provide consistent and quality service. You could develop surveys or questionnaires to gauge opinion and make improvements where needed.
• Local Council Family Information Service (FIS) – once registered, your details should be on a directory where clients can search for childcare. Contact your local council for further advice.

Everything is online these days. Therefore, to be successful, you will need a solid online presence. Also, many clients will come from word-of-mouth recommendations, so engaging with local communities is equally important. Here are some tips on how to do both:

• Set SMART goals about what you want to achieve regarding online and community presence, and monitor your progress frequently.
• Use the social media platforms that align with your goals and suit your style.
• Be active regularly online, as it will deter clients if your pages are not updated or you are not posting. However, avoid bombarding people with posts and messages as it will feel like “spam”.
• Be consistent if using multiple social media platforms, i.e. logos, colours, graphics and information.
• Make your content engaging, clear and interesting, and avoid lots of text and jargon.
• Get insights from online followers regarding your services and any suggestions for improvements. Encourage them to make recommendations and “hit that like button”.
• Try writing blogs, give tips and share ideas to provide information to parents and caregivers.
• Attend local community events regularly and chat with parents and caregivers so they can put a face to a name.
• Look for local volunteer opportunities that involve children to demonstrate your commitment and passion for this area.

If you need additional help with marketing, it is best to seek advice from those with the necessary expertise tailored to childcare services. Childminding UK has some free and paid resources to help with marketing here. PACEY also has further information here.

Daily Operations and Childcare Activities

Daily routines in a childminding home-based setting are vital. The EYFS requires childminders to share information about children’s daily routines and activities with parents and caregivers. You will need to think about the following when planning childcare activities:

• Collecting and/or dropping off children.
• Ensuring children have sufficient rest and sleep.
• Planning meals and mealtimes.
• Managing behaviour, especially if there are children with autism and ADHD.
• Hygiene, e.g. hand washing and brushing teeth.
• Offering age-appropriate activities, e.g. reading and singing.
• Ensuring play opportunities, both inside and outdoors, and balancing adult-led play with child-led (free) play.
• Organising local outings, e.g. toddler groups.
• Your own routines, i.e. if you have children and any other commitments.
• Religious and cultural, e.g. dietary, prayer and celebrations.

It is essential to have age-appropriate routines and involve parents/caregivers and the children. A colourful chart with pictures illustrating daily routines can provide a visual prompt.

Another essential aspect of childcare is providing a stimulating environment and activities where children can play and learn, which is also beneficial for their growth and development. It will depend on the ages and needs of the children you are caring for, but here are some ideas you can adopt:

• Create an indoor environment conducive to learning, e.g. clutter-free, clean, comfortable, colourful and organised. You could display pictures and posters to help children learn or use play mats.
• Incorporate outdoor learning opportunities and allow children to explore and be physically active. According to Development Matters, children should be offered outdoor play daily for at least 45 minutes.
• Provide interesting resources, e.g. materials, books, toys, paints, pens, etc. There should be some that children are familiar with, as they enjoy repetitive activities, and introduce new resources, themes and activities to keep them engaged, e.g. role play.
• Provide a range of age-appropriate toys and games that combine play, fun and learning, e.g. STEM toys. You could even look at second-hand ones from charity shops.
• Introduce multi-sensory materials, e.g. sand and water stations, and natural resources when outdoors, such as mud, leaves, cones, etc.
• Use technology to support learning, but do not leave children alone without supervision, i.e. do not leave them stuck at the television or on a phone or tablet.
• Involve children in everyday activities, such as cooking, baking, gardening and shopping, and let them help with certain activities, e.g. planting seeds can help them learn about nature and science.
• Introduce children to your pets (if you have them) if they are safe, as it can teach them about animals and looking after them. Be mindful of children with allergies and get their parent’s permission first.
• Do not stop children from doing activities that involve some element of risk. Studies have shown that risky play can benefit children’s learning and development (Play Wales). However, it is essential to assess and manage the risks.

Do not worry if you do not know where to start, as there are plenty of tips and ideas online and on forums where you can ask for advice from experienced childminders, e.g. Childminding Forum and Mumsnet. Also, following statutory frameworks and guidance, such as the EYFS, can help you to know which areas to focus on to meet their learning and development requirements.

Managing Finances and Record-Keeping

Many childminders are self-employed, which comes with its unique challenges. You must manage your finances, pay taxes and keep financial records.

Budgeting

As a self-employed childminder, you are likely to have an irregular income and various business expenses, such as:

• Utilities, e.g. gas, electricity and water.
• Internet.
• Phone.
• Insurance, e.g. public liability and employer’s liability (if employing anyone).
• Food and drinks.
• Training.
• Registration.
• Equipment, toys and resources.
• Vehicle, fuel, insurance, wear and tear and tax
• Outings.
• Tax and national insurance.

You will also need to factor in your own home expenses and bills, such as mortgage payments or rent, council tax, income tax, energy bills, TV licence, etc.

It is crucial to keep track of where your money is going and what is coming in and be aware of your expenses to help you budget and save. There are many resources and tools to help with this, such as:

• MoneySavingExpert Budget Planner.
• MoneyHelper Budget Planner.
• PACEY Top tips for managing money when you’re self-employed.

Setting fees

You will need to decide on your fees (rates), whether you will charge an hourly or a daily/weekly rate, and whether to have different rates for specific ages, i.e. some will charge more for babies and infants.

You should also base your fees on your home setup, location, qualifications, experience and the services you will offer, i.e. you may charge more if you collect and drop children off or if you provide meals. To help you set fees, look at the average childminding rates for your local area. You can get some ideas of childcare costs here and do not forget to pay yourself a salary.

It is wise to have a policy for fees and a written agreement stating your rates clearly. It is a contract which you and parents/caregivers should sign. If there are any fee increases, they will also need to be agreed upon in writing.

Tax and national insurance

Tax, national insurance contributions and completing annual tax returns (self-assessment) can be a bit of a minefield, especially if you are newly self-employed. You must register with the HMRC if you run your own childminding business. Further information on this is on GOV.UK.

Get good advice from professionals, such as accountants, who can help you navigate the tax system. You can then focus on your business rather than getting bogged down with figures. However, you must keep track of your incomings and outgoings and have good financial records.

PACEY has further advice on tax here.

Financial records

You must keep detailed and accurate financial records as a self-employed childminder. Not only is it a legal requirement, it is also important for the following reasons:

• It helps you provide evidence to the HMRC if there are any issues or if they want to conduct an investigation.
• It will make it easier to complete a self-assessment (if doing it yourself) or help your accountant make sense of your expenditure and incomings.
• It gives you an idea of how much tax and national insurance you will pay.
• It helps you to maximise claimed expenses.
• It makes it easier to determine whether you are entitled to any help, such as benefits.
• It enables you to manage your business better, which can help it to grow.

Further information

• com – accounting for your childminding business.
• PACEY – top tips for managing money when you’re self-employed.
• co.uk – childminder accounts.
• UK – self assessment: guide to keeping records.

Navigating Challenges and Growing Your Business

As with all types of businesses, childcare also has its fair share of challenges. Some of the ones most commonly encountered include:

• Parents do not pay or pay late, making it difficult to manage finances.
• Have a robust fee policy and contracts with terms and conditions detailing the actions if payments are late and not received.
• You could also consider late fee penalties, getting paid upfront and having invoices with deadlines.
• Childminding Help has further information here.
• Lack of stability with self-employment, as demand for services can decrease.
• A detailed business plan will help with cash flow and forecasts, and good marketing will attract more clients.
• Identify what makes your business stand out, and is there anything you can offer that other childcare services cannot?
• It does not hurt to have a backup plan and an additional source of income, especially when starting.
• Legal, Ofsted and other statutory body demands can often be tricky to meet and navigate, and there is a lot of paperwork.
• Knowing legal and registration requirements can help you understand what is mandatory and recommended. Focus on the mandatory tasks first.
• Use the wealth of information and guidance from Ofsted, the Care Inspectorates and Health and Social Care Trusts. Your local council can also advise on how to meet the requirements.
• Ensure you take time to look after your own health and well-being and do not take on too much you cannot cope with.

The Department for Education has a research report on the challenges and opportunities that childminders can face here. If you decide to offer funded places in England, be aware of the new government funding scheme coming into force in April 2024. Childminding Best Practice has further information on this here.

Even when starting your home-based childcare business, you may envisage what it will look like in the future. Do you want to care for children of different ages or those with specific needs, such as SEND? Do you want to offer additional placements? Will you need additional staff, such as assistants? Do you envisage offering new services or going into partnerships?

If you wish to expand your home-based childcare business, review your business plan to ensure the expansion is feasible, inform your statutory body of any changes and take the appropriate actions. For further information, see:

• The HUB – Expanding your Childminding Business.
• PACEY – Growing your childminding business.
• Early Years Educator – Grow your childminder business.

Conclusion

It may appear overwhelming when first looking at starting your home-based childcare business, and there is indeed a lot to consider and paperwork, from legislation and registration to setting up your home, marketing, looking after the children and self-employment tasks. However, there is plenty of guidance on registration from Ofsted or equivalent statutory bodies. You may also be able to get help and advice from local councils, childminding associations and experienced childminders.

If you are passionate about children and childcare, this is a fantastic start, as it will motivate you to work hard towards becoming a childminder. You can use the information and advice within this guide as a starting point and develop your knowledge from here. The minimum requirements are the legal ones and registration, so it is vital to get a good grasp of these first to ensure compliance with the law and get registered. Then, you can really begin to think about how to make your home-based childcare business a success.

Remember, every childminder is new at some point, and while this new venture can be a tad daunting, you will learn more and build your experience and skills as time goes on. You are not alone on this new journey, so do not be afraid to ask for help and support where needed. You can do this!