Business development: Making smart moves

Friday, March 2, 2012

Managers in a Durham-based nursery chain tell Michael Glenister the secrets of its success starting out in a crowded local market.

Experience in marketing for a British blue-chip company has proved a big advantage for Andrea Townsley since she made a sharp career change and founded the first Clever Clogs day nursery in Belmont, Durham back in 2007.

Since then she has launched two new branches of Clever Clogs in Hartlepool and Bowburn, Durham, while caring for her own young children. She says that personally achieving the balance between parenthood and business acumen has given her the formula for the nurseries' success.

'I understand the requirements of parents because I have first-hand experience, but I also manage the business from a profit and loss perspective,' says Ms Townsley. 'My managers are absolutely fantastic experts in childcare. What I do provide is an understanding of the figures and the importance of the bottom line.'

Hartlepool is a crowded market, but Clever Clogs nurseries intends to remain competitive by raising fees by an average 1.3 per cent in April. Last January she moved to capitalise on her investment by opening the two new branches nearby, both in existing nurseries.

Both locations were selected with a well-researched focus on their business potential. 'They were both purpose-built buildings, and both of the locations are also on main routes into towns, which is ideal in terms of generating customers,' says Ms Townsley

REBRANDING EXERCISE

She expects all three locations to reach capacity in 12 months' time. Popularity has been achieved with the help of a significant image overhaul.

'We had to do a lot to boost the image of the previous nurseries,' says Ms Townsley. 'We got the message out through hard work and some good PR so people knew what we were about and what changes were being made.'

Nursery manager at the new Bowburn setting, Emma Holtby, says, 'Dramatic changes were made to the appearance of the nursery. We had really good feedback from parents about these. They particularly enjoyed seeing the photos of their children and their work on the wall. That really matters to parents. It's a proud moment for them when they see their children celebrated.'

Ensuring that the setting communicates an inviting, family-orientated approach will be a key focus as the business continues to expand, says Ms Holtby. Numerous parent conferences were held in the early stages of re-establishing the nursery in order to confirm precisely what they were looking for from the provider.

That led the nursery to offer flexible attendance dates for children to suit parents' requirements. 'We find more and more parents are working part-time to support their partners so we provide flexibility for them in the hours they need,' says Ms Townsley. 'We have term-time-only staff to cater for children who are here during term time and there are lots of other initiatives we run in order to be flexible and work with parents.'

RECOGNITION FOR EYPS

Demonstrating expert level training is also a vital draw for parents. Ms Holtby was recently awarded Early Years Professional Status, meaning all three nurseries in the chain have at least one member of staff with EYPS.

Ms Holtby says a number of parents look for the qualification when seeking a nursery setting for their children and several parents have commended her on the achievement.

The county council funded her EYPS training, which she adds to a foundation degree and a degree in Early Childhood Education when she launched her business.

'EYPS definitely is recognised by parents,' she says. 'My staff deserve lots of praise for achieving their own excellent qualifications and we'll be pushing for everyone to continue improving and updating their training in the future. We already have another staff member doing her foundation degree and her goal is ultimately to do the EYP.'

But Ms Holtby says Clever Clogs is keen to take on staff at all levels in order to train them in the nursery ethos. 'We are keen to take on apprentices. It has the advantage of meaning we can take them fresh and shape them in our image and ensure they fully understand the way Clever Clogs works and the values that we hold.'

It is important for local authorities to focus on providing training opportunities to early years educators, according to Ms Townsley.

'It is vital for the county council to support EYPS training, and we share a very good relationship with them and are always looking for funding,' she says. 'But if it can't be gained through the local authority, then I will pay for it through the business. I am currently funding another of my managers to take the qualification, because I believe firmly in its importance.'

Ms Townsley also believes quality is absolutely vital when it comes to remaining competitive. The expansion into the two new sites has created new positions and opportunities for promotion, incentivising performance and encouraging ambitious staff to join.

Ms Holtby says that in the forthcoming months her team won't be resting on their laurels as they seek to build on their existing work. 'The last 12 months have been about re-establishing the nursery and over the next year we want to consolidate that by ensuring we keep to the fundamentals we've been getting right. We have a great platform and we don't want to take anything for granted.'

SNAPSHOT

  • The first setting in Durham opened in 2007, followed by two others in January 2011.
  • £0.5m was invested in development of the two new settings, both of which are purpose-built.
  • The chain currently employs 71 staff across the three sites, with numbers to rise as its capacity expands.
  • The flagship nursery in Durham received an outstanding grade on its first Ofsted inspection. The new Durham setting achieved a good and is aiming for outstanding next time.

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