Nursery closing argh!

abby1234519

Just found out from assistant manager/friend at nursery that the owner has just decided to close down the nursery and is going to close it at the end of February.

We both said we want to save it, but a) manager wants 40k from the business and b) if my friend was just to start again she would need financing from a bank. I don't think the business is failing, the owner isn't proactive in putting the nursery out there.

It is in such a good location, its on the main route to the city centre and it is lovely and caring place. It currently has space for another 10 children but as she doesn't have it advertised on various websites people don't really know it is there.

What can I do? I don't want to start looking elsewhere even though its supposed to shut in 3 weeks because my heart really does rest with this place. I want to do everything I can do to either save or reboot it but I don't know where to start.

whitewing

If it hasn't been formally announced that it is closing that is not very much notice really for its customers.

grey_lady

Erm, try talking to an accountant - get him to go over the books and see if it is really viable, get business link to help you if you don't know of anyone, they can also help you with a business plan. Come up with a deposit and talk to the bank about borrowing the rest.

Or find a new nursery and go through settling in again.

balletshoes

First things first - you need to get this information confirmed from the manager, from the horses mouth. So phone in the morning and get this confirmed one way or the other.

If its true and the nursery is closing at the end of this month, then you need to think with your head. I take it you're not considering buying into this business? I hope not, that would to me appear to be a knee-jerk reaction, and its a lot to invest.

If theres no guarantee the nursery will continue, then you need to start looking around for a new place for your little one.

meritaten

grey_lady wrote: »

Erm, try talking to an accountant - get him to go over the books and see if it is really viable, get business link to help you if you don't know of anyone, they can also help you with a business plan. Come up with a deposit and talk to the bank about borrowing the rest.

Or find a new nursery and go through settling in again.

Try to find out the reason behind the closure - then consider taking a risk and buying into this business. and do what the above poster suggests. From what you say, with the right advertising, this could be a nice investment! Good nurseries are always oversubscribed!

whitewing

I am surprised that people who are pregnant/ have young children don't know it's there.

Maybe people worry about it being on a main route?

abby1234519

I wouldn't be buying into it, too risky and I have debt to pay off as opposed to spending money. I just wanted to see what the routes were for the assistant manager to look into. She was thinking of asking the parents to form a co operative as most of them are people with good jobs ie doctors but I think she has no idea where to start.

There is a nursery near to work I could attempt to move my son to but I think part of it is that I am attached to the nursery and its staff, rather than worrying about my son. Probably a bit selfish really I know he will adapt but he has been there since he was 2 months old.

A letter was given to all the parents tonight however my son isn't in on Wednesdays so I was made aware by Facebook.

Savvy_Sue

abby1234519 wrote: »

We both said we want to save it, but a) manager wants 40k from the business and b) if my friend was just to start again she would need financing from a bank. I don't think the business is failing, the owner isn't proactive in putting the nursery out there.

What the manager WANTS and what they're likely to get are two rather different figures.

IF your friend wants to pursue this, she needs to get a hard business head on, and cost it all up. Fast. Bearing in mind there's a big difference between working with children and running a childcare facility ... and your friend may not know the half of it.

Who owns the premises? How many staff are there? What's the breakeven point, per member of staff? How many children / members of staff are going to move on because of the uncertainty? How much are rates / waste disposal / utilities / insurance / materials / food?

And so on!

elsien

My mother owned and ran a nursery which she sold a few years back.
And although it was a nursery with a very good reputation in a good location, it was a begger to sell on when she wanted to retire.
Too much local competition, the venture capitalists couldn't see enough profit and the property wasn't ideal to do other things with so no-one wanted it just for the premises themselves.
Childcare, if done properly, isn't a licence to print money. Obviously it depends on location etc, but I'd advise anyone to look at the figures really carefully before going ahead. Unless there's a well-off cachment area, the balance between charging enough to pay the bills/live on and what local families are willing and able to pay can be quite a fine line.