With over 14,500 early years registered settings in the UK, standing out might seem like a challenge.
While many nurseries offer similar services, yours is unique. Not just because of your ethos, values, and approach, but because you are the driving force behind its success.
This article will walk you through everything you need to create a strong, strategic business plan, whether refining or creating from scratch. From crafting an elevator pitch that captures the heart of your nursery, to outlining a plan that takes the weight out of decision-making for the next 12 months.
‘Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones and have a strategy in place to set yourself up for success.’
Why do I need a business plan?
As a nursery manager or owner, you’ll likely know the childcare sector inside and out. So why, you may ask, do you need a business plan?
A business plan is a necessity for managers or owners wanting to:
- Increase profitability
- Apply for additional funding support
- Prepare for retirement or acquisition
- Maintain financial comfortability
- Prepare for and manage risks to the operational running of your nursery
- Plan for nursery expansion
- Improve child development opportunities
- Unlock predictability with finances, occupancy and staffing
What should I include in a business plan?
Here’s our 8-part nursery business plan contents list:
An executive summary
of your nursery
The executive summary is your nursery business plan’s first (and arguably most important) section.
It’s your elevator pitch: a short, snappy overview that sells your nursery’s vision, strengths, and potential in just a few paragraphs. Whether you’re looking for funding, planning expansion, or just setting a clear direction, this section should be a simple snapshot of the important parts of your business.
It can be in any format you’d like, though graphs that can be easily updated are often a preferred format. Our business reporting feature provides the graphs you’ll need for an accurate executive overview.
You’ll want to include information about:
- Your nursery’s Unique Selling Points (USPs)
- Short and long-term goals
- Brief summary of your target market (who, where, how long for, when)
- Your nursery’s financial position, including forecasting graphs
A business description
and your vision
This business plan section describes who you are, what you stand for, and how your nursery operates.
Start with the basics. What’s your maximum capacity and minimum viable capacity (the number of children needed to make a profit based on your current pricing structure)?
Next, outline your mission statement. What does your nursery aim to provide for every child?
Whether it’s a nurturing home-from-home environment, an outdoor learning focus, or an emphasis on school readiness, spell out what families can expect their little ones to achieve and experience during their time with you.
Do take care not to repeat what has been mentioned in the executive summary. This is an opportunity to unpick what your mission means, looks like, and if it can be achieved.
A great way to assess your business’s strengths and potential is by using a SWOT analysis. This stands for Strengths, Weaknesses, Opportunities, and Threats.
It’s a simple but powerful tool to help you understand what you’re doing well (strengths), where you could improve (weaknesses), where there’s room for growth in the market and your business (opportunities), and any potential outside challenges (threats).
Note: Your nursery leadership team should be involved in the business plan discussions. If you’re wondering, ”what leadership team?”, then that’s your first step. For your business plan to succeed, you’ll need a wealth of experience and plenty of opportunities to bounce ideas and concerns off your colleagues.
Market research
and competitor analysis
Market research and competitor analysis aren’t about pitting nurseries against each other. It’s about understanding your community, learning from others, and making informed decisions to improve your own setting.
To start, look at both demographics and psychographics. Consider what your families value. Is it the flexibility of hours, outdoor learning provision, a home-from-home feel or excellent home
Competitor analysis is just as important, and should be approached with a learning mindset. What do nearby nurseries do well? Maybe they have a fantastic parent communication system, like an app for daily updates, or they offer extra-curricular activities that boost child development.
We know the latest Ofsted proposals (February 2025) mean those aiming to achieve an exemplary rating (from November 2025) in specific areas must have working relationships with other settings, and clearly demonstrate their expertise in systems and processes that lead to nursery or school improvement.
Your research should also feed into your pricing strategy. While we’ll explore financial forecasting in detail later, assessing what competitors charge, what parents in your area are willing to pay, and how your nursery’s value proposition justifies your fees is essential.
Your nursery’s
operational plan
Your operational plan is a crucial part of your business plan. It outlines how your nursery runs day to day and should be regularly reviewed and updated as things change. While your vision and goals remain the same, your approach may need to adapt to challenges and opportunities (as highlighted in your SWOT analysis).
One of the most important aspects of operational planning is understanding your minimum viable occupancy – the number of children needed to cover costs and remain sustainable. While full occupancy might seem like the ultimate goal, in some areas, especially where nursery places outnumber demand, that’s simply not realistic.
Instead, the focus should be on achieving a steady, financially sustainable intake that allows your nursery to thrive.
Don’t forget to include information about:
- Your premises and facilities
- Potential partnerships
- Services offered (like wraparound care and summer clubs)
- Nursery management software and communication systems
Financial planning
and forecasting
Now, let’s talk income! Whether you’re fine-tuning an existing business plan or getting serious about finances for the first time, the key is to have clear financial goals and a solid understanding of your nursery’s income, outgoings, and funding streams.
Where to start? The good news is there’s software to take the legwork out of financial forecasting, tracking income and invoices sent, and creating business reports to keep you on top of your nursery’s financial health.
To make this easier, we’ve created the ultimate nursery manager budgeting guide that breaks everything down – from calculating income and managing outgoings to finding creative ways to increase revenue without compromising quality.
Funding information will be under this financial umbrella. Whether you’re receiving government-funded hours or additional grants, understanding exactly what you’re entitled to is the key to making government funding work for you.
Our nursery funding calculator can help you work out if you have a funding gap, identifying minor or major income shortfall ahead of time.
The goal of your financial planning section is to optimise your nursery’s spending, protect your bottom line, and ensure you provide the highest quality care and education without financial strain.
Marketing plans
and growth opportunities
Your nursery marketing strategy is all about how you reach the families who need your nursery. We have an in-depth marketing guide available for you to make your marketing efforts work harder for you.
This ties directly back to your market research. From completing this section of your business plan, you’ll now know who your ideal families are.
Think about how you can reach your audience both in-person and online. Traditional marketing methods like word of mouth, open days, and partnerships with local businesses or schools are still incredibly valuable.
But in today’s world, your digital presence matters just as much. A well-built nursery website, Facebook page utilised for business use, and social media presence aren’t optional – they’re essential.
Many parents begin their nursery search online, so first impressions count! Nursery managers are now aware of the dos and don’ts of successful websites and the power they hold. If you aren’t sure what your digital presence looks like to prospective parents, a social media audit is a great place to start.
Marketing isn’t just about getting noticed – it’s about building connections. From local networking to Google search rankings. There are common strategies nurseries use to market to prospective parents. These strategies should be focused on raising awareness of your nursery’s offer and turning enquiries into enrolments.
KPIs
for your nursery business plan
A solid business plan is more than goal setting – it’s about tracking progress and knowing what’s working. When you’re aware of what works, then you can streamline your efforts, saving admin time and ultimately helping your nursery’s profitability.
That’s where Key Performance Indicators (KPIs) come in. KPIs are measurable metrics that help you evaluate your nursery’s performance, ensuring you’re on track financially, operationally, and in terms of child development.
Here are some essential KPIs to include in your business plan:
- Occupancy rates and child numbers – how many children are currently enrolled? How does this compare to your nursery’s capacity and minimum viable occupancy?
- Monthly income vs. forecasted income – are you bringing in the revenue you expected? If not, where are the gaps, and what can be adjusted?
- Staff planning and retention – high staff turnover can impact consistency and quality. Tracking this helps ensure staff well-being and long-term stability.
- Social media engagement and website hits – using tools like Google Analytics, monitor how many people visit your website, engage with your social media, and interact with your content.
- Conversions from walkarounds and enquiries – how many families who visit your nursery go on to enrol? A low conversion rate might mean rethinking your tour approach or parent communication.
- Tracking child development – measuring how well children are progressing across EYFS areas ensures your nursery is delivering high-quality education and care.
Regularly monitoring these KPIs gives you all the clues you’ll need to see what’s working well and what needs adjusting.
Partnerships
for your nursery business
A successful nursery doesn’t operate in isolation – partnerships are key to creating a thriving setting. When you create your business plan, think about the partnerships you can develop with local stakeholders. Strong working relationships between home and nursery are often the reason for high parent retention rates.
Partnerships can take many forms:
- Parents and prospective parents
- Other EYFS settings
- External agencies to support child development
- Mentoring and coaching for nursery leadership
- Local businesses
- Local suppliers for your nursery menu
- Childcare apprenticeship providers
- Local libraries and services
- Primary and secondary schools
- Nursing homes and day care centres
The more connected your nursery is to the local community, the more support and opportunities you can provide for the children and families in your care.
Ultimately, a business plan is your nursery’s roadmap to success.
As Eleanor Roosevelt once wisely said:
'It takes as much energy to wish as it does to plan.’
Blossom’s ever-growing tools and features help simplify the planning, tracking, and monitoring of all aspects of nursery management, making it easier than ever to stay on top of finances, occupancy, staffing, and child development.
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