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Nursery Boom Provides Investment Opportunity

by International Commercial Investment on September 29, 2014

Government initiatives are encouraging more parents to resume work after the birth of their children. Record levels of mums are looking to earn an income as soon as their maternity pay runs out. The age at which the government is prepared to fund children attending nursery is falling and this is encouraging parents to enter the workplace earlier than they may have otherwise planned. Nurseries are being awarded grants to fund expansion tinvestment opportunityo cope with the surge in demand for places.

Nurseries are cash generative businesses as child places are often funded by the state or paid in advance by parents who want their children to access the same opportunities as others located in their immediate area. Nurseries that are booming are able to demonstrate their worth to their local community. A good relationship with Ofsted is crucial to attracting children to a nursery and a strong reputation may lead to the local authority directly placing children in a particular nursery. A rising threat comes from schools offering a cost effective means for parents to allow their child to be cared for whilst at work. Many schools are operating at capacity and do not have the land required to build extensions which would cater for an increasing early years unit.

Investors who do not have the cash to buy a nursery can still raise significant amounts of capital against the value of a business or commercial property. Once operational a business should generate funds, which can be used to build a margin on the cost of debt or to plough into further business operations. The birth rate in most areas is greater than a decade or two decades ago and the culture is very much in favour of an early return to work aided by a growing childcare sector. A daycare nursery represents a great opportunity for anyone looking to expand their portfolio of investments into a solid industry, which can offer swift returns.

International Commercial InvestmentNursery Boom Provides Investment Opportunity