Nurseries

Although children's nurseries are catering for 'customers' at the other end of the age spectrum to care homes, they actually have quite a lot in common with care home businesses - at least in so far as their business model goes. Control of costs - particularly staff costs - is absolutely vital to the success of a nursery business, as is ensuring optimal occupancy levels.

At Condies, we have a great deal of experience in helping both children's nurseries and care homes to grow - in the case of one nursery group, we assisted the management to grow from initial start up to becoming the largest nursery group in Scotland, before its owners’ successful exit.  During the growth phase, we helped the company’s management with financial forecasting, acquisition finance and due diligence investigations of target businesses.  Of course, at the other end of the scale, we act for several children’s nursery businesses with just a single nursery, and have been able to apply our expertise in ensuring these businesses provide their owners with the maximum possible returns.

Our nursery clients rely heavily on our ComplianceAdvisoryTech and Wealth services but in addition we offer the following sector-specific services:

Benchmarking - how do you compare to your peers?

With our nurseries we have over the years made extensive use of 'benchmarking' in reviewing performance. Benchmarking is the measurement of performance against sector averages, to allow areas of underperformance to be identified, and (hopefully) rectified. To underpin this, we draw meaningful comparisons with other nurseries in the area as well as known sector averages. When this is combined with a detailed variance analysis comparing the current year with the previous years, it allows trends to be spotted quite easily. We will use graphs to highlight certain aspects of the accounts, and every possible means is employed to make the accounts more understandable. By carefully attending to the areas each year where improvement is possible, very real improvements in overall business performance over a period of time can be realised. This means more money for less work - definitely worth going for.

Profit improvement - because profit is sanity

Where the benchmarking exercise has identified areas where a business is underperforming, we are often asked to take a closer look at one or more specific areas in the business to see if a particular cost can be reduced, or an item of income increased. When doing so, we are able to draw on our wealth of experience in working with businesses in the same sector, and the net effect will be an immediate and lasting improvement in business profitability. One area we are regularly asked to look at is staff costs. In many businesses, the wage bill is the single largest expense, and a saving there will have lasting benefits to business profitability. This will involve a review of team structure, identifying any duplication of roles, and looking at ways in which technology could assist in reducing staff costs.

Should you wish to discuss the specialist services we offer to nurseries further please feel free to contact us.

Case studies

DR Newitt & Associates Testimonial

Stephanie Newitt, Managing Director of DR Newitt & Associates, discusses how Condies have provided support throughout the business lifecycle, from incorporation and software training to payroll and accounts. Read the case study

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