A new Government programme is set to help childcare providers overcome their lack of experience in business practice and deliver a better service, says Simon Vevers
Childminders, out-of-school clubs, pre-schools, playgroups and nurseries are the targets for a planned 15-month Government-backed programme to provide business training and support for up to 100,000 childcare businesses. Called the Childcare Business Support Development Programme, the scheme is being promoted jointly by the Departments for Education and Skills and Work and Pensions.
Some 400 tender packs were sent to organisations last year, challenging them 'to design and deliver an exciting and innovative national programme of high-quality business training support for up to 100,000 childcare businesses'.
A shortlist, understood to include the Kids' Club Network and the Pre-School Learning Alliance, was drawn up last month. A DfES spokeswoman says the result of the bidding process will be revealed towards the end of this month and the programme will run until March next year.
The primary target for the programme will be childminders and the managers, owners or voluntary committee members in day nurseries, pre-schools, out-of-school clubs and holiday clubs. However, the training will also be tailored for business support officers assigned to the 150 early years partnerships and childcare development workers in local authorities.
The programme
The programme will comprise three key units: adopting a business culture; business development; and childcare sector development. The Government invited tenders for one or more of the units, but stressed in an information pack that delivery of all the units needs to be 'flexible, logical and co-ordinated'.
Within the three units, there will be modules covering a range of business skills to ensure future sustainability of childcare settings and around 24 workshops. The winning training provider will also be expected to research, write and distribute 17 'mini guides' summarising the knowledge that childcarers need to promote sustainability.
Most of the mini guides will be distributed to some 37,000 childminders, 7,000 pre-schools and playgroups, 2,500 out-of-school and holiday clubs and 4,000 nurseries. There will also be guides for childcare providers on sources of business support and local funding initiatives.
1. Adopting a business culture
The first unit will aim to help childcare providers adopt a business culture 'by developing the way they view their organisations and helping them focus on key business activities which will lead to sustainability'. The tender document says research has suggested that 'while childcare providers excel in the field of childcare, some are reluctant and inexperienced in running a sustainable business'.
Other modules in the first unit will show providers how to assess where their business is now, help them develop an outline of where they would like it to be in six months or a year's time and clear up misconceptions about not-for-profit organisations, emphasising the need for childcare businesses to create surpluses to remain sustainable.
2. Business development
Unit two forms the core of the business support and development programme and will concentrate on showing business support officers and childcare providers how to manage all operational aspects of their business.
The proposed first module is targeted at childcare development workers and business support officers, who will be shown how to transfer good business practice to providers.
'Some childcare providers are finding it difficult to begin managing business aspects of their service,' the tender document states. The Government departments suggest a specific package for childminders and another for all other providers in the voluntary, maintained and private sectors.
The module will require a 'family of materials' and a variety of approaches, including distance learning, workbooks and workshops, a national telephone helpline and local support in the form of mentoring and networking.
The wide range of topics to be covered in this unit includes start-up strategies, market research, business planning, marketing, financial management, key performance criteria, management responsibilities and customer service.
3. Childcare sector development
The first module in this unit will involve the writing, production, distribution and evaluation of four guides outlining a structured management information system based on key performance indicators. They will be complemented by workshops to enable childcare providers 'to manage their businesses with simplicity and vision'.
There will also be guides on resource management and minimising business costs, pricing strategies and the benefits of 'partnering, joint ventures and general business co-operation'.
The DfES/DWP tender document says 'many childcare businesses operate in close proximity to each other limiting growth in some instances'.
The module, entitled Business Development Through Partnering, is designed to make childcare business managers and business support officers more aware of 'the positive effects of working together with other local providers of childcare to ensure sustainability and encourage growth and resource sharing which will strengthen all the businesses involved'.
Video case studies
The winning training provider will also be charged with producing four case-study videos of up to ten minutes' duration covering essential elements of good childcare business practice.
The video for childminders will focus on being self-employed, provide a simple way of keeping accounts and stress the importance of separating personal and business finances.
The video case study for pre-schools will demonstrate the importance of reducing reliance on external, non-guaranteed funding, explore alternative ways of fee generation and look at an appropriate survival strategy.
The benefits of a marketing plan for occupancy levels and business growth will be explored in the video for out-of-school clubs, while the nurseries' case study will examine how pricing strategies can be developed to maximise surpluses and ensure sustainability.
