1
MARKET RESEARCH GUIDE
MARKET RESEARCH
In order to establish whether there is a need for childcare provision in your area, you need to carry out some basic market research. This can be done by speaking to local parents at schools, toddler groups or other community venues.
The Early Years and Childcare Sufficiency Team (01422 392576) can send you a list of childcare in your area. You will need to contact at least three different settings from that list as part of your market research (see enclosed guidance on this).
In order to draw up a business plan you will need to investigate what childcare is currently on offer in your area. Think about the following questions:
How many childcare providers, (e.g. - Childminders, Out of School Clubs, Holiday Clubs, Nurseries, Playgroups) are active in your area?
Have you noticed where and how childcare providers advertise their services?
What is the total number of childcare places on offer in your area?
How does this compare with the number of children living in your area or attending local schools?
Which providers have vacancies? Which have waiting lists? If they are fairly new to the sector then how quickly did they attract new customers?
What services do other providers offer? (e.g. pick-up from which schools, regular trips to swimming pool / park, flexible opening hours.)
What can you offer in order to compete successfully with established services?
How much do providers charge? (Childcare fees should be set after full consideration of your prospective outgoings and expectations of earnings but it can be useful to obtain an average cost of childcare in your area.)
What help can parents get towards the cost of childcare?
Are there any current or planned housing developments or large business developments in your area? Or are there any large local employers scaling down their business?
2
Where can you find the answers?You will not be able to find out everything you need to know from one source. You will need to consider how best to approach different people and organisations. Here are some suggested sources.
The Early Years and Childcare Sufficiency Team can provide you with a summary for a specific postcode area; this will include the number of childcare places offered in each type of provision and information about the ages of the local population.
The Early Years and Childcare Sufficiency Team can provide you with the contact details of schools, nurseries, playgroups, childminders and parent and toddler groups in a specific post code. Before contacting any providers consider very carefully the bullet points in the ’Making Contact’ part of this guide.
Read the local newspaper for up to date community news on housing, business and childcare issues.
Talk to local childcare providers, local businesses and employers, your local councillor, community/church groups.
Talk to friends, other parents – do you know people who have used local childcare or worked in childcare and do they have any useful tips for you?
Contact national organisations e.g. PACEY (The Professional Association for Childcare and Early Years). The Family & Childcare Trust compiles annual surveys of the average costs of childcare by region.
Your Quality Improvement and Support Officer will also be able to forward you a copy of the Local Authority’s E-Bulletin, which contains a summary of local and national news items.
Making Contact
Tips for telephoning other childcare providers:
1.
Prepare your approach and your questions carefully in advance.2.
Explain who you are, tell them where you got their number from and say that you are trying to find out about the services offered for children in the area as part of the research process for your business plan. Ask them if this is a convenient time to talk or if they would like you to ring back at a specific time.3.
Explain that you would appreciate any information that they feel able to give. Reassure them that they are not obliged to answer any of your questions; they can simply say that they don’t wish to discuss that area of their provision. Some providers will give you as much information as you wish and may even invite you to look round their provision, others might be reluctant to discuss prices, vacancies or plans for the future.4.
Keep your phone call brief and to the point; let them know you appreciate how busy they probably are.5.
Give them your contact details (they may be able to pass business your way when you are registered).6.
Thank them for their time, and say that you would appreciate any further support they may be able to offer you. Although you are in effect competing for business within the same locality there is much to be gained from keeping in-touch and sharing ideas. It might be possible to meet up in the near future, especially with other childminders, and offer mutual support. Some childminders organise a vacancy network, get-togethers, coffee mornings, emergency cover, and bulk-buying schemes.3
Market ResearchAim to ring at least 3 providers in your area. Contact the Early Years & Childcare Sufficiency Team for a list of childcare providers on 01422 392576. Record the responses below. This will inform your business plan if you decide to proceed with childminding.
Question Provider 1 Provider 2 Provider 3
1. What are your opening hours
2. Which schools do you collect from?
3. How do you market your service?
4. Do you have any vacancies?
5. What fees do you charge?
6. What to your fees include? Do you charge for any extras, if so what for types of things?
7.What is your unique selling point
Using the information
Other useful information can be found online at:
http://www.calderdale.gov.uk/education/childcare/sufficiency-assessment/index.html http://www.calderdale.gov.uk/education/childcare/providers/index.jsp
4
Now you can start to build up a picture of what is on offer in your area.Consider:
Whether you can identify that there is a demand for the service you propose to offer?
Whether you can identify any possible barriers to your business? What strategies could you adopt to help you overcome those barriers?
Whether you have identified any gaps in the market? For example, are there any schools that aren’t currently being served by childcare providers? Can you tailor what you offer to fill any gaps?
What your service can offer in order to compete successfully with established services?
Carefully consider your market research and the impact childminding will have on you and your family.