Business planning workbook:
Getting started
This is a supporting document to help you start writing a business plan. A full business plan guide
is available at www.westsussex.gov.uk/ecsbusiness. These documents should be used in
conjunction with one another.
December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
1
Basing decisions on good business practice
PEST analysis
PEST analysis is a useful tool for understanding how external factors may impact on your business and your plans, by
considering the environment in which your service is provided. PEST is an acronym for Political, Economic, Social, and
Technological factors. .
E.g. 30 Hours,
Right to request,
Pensions
legislation,
National Living
wage, National
Funding Formula,
Ofsted. H &S
Political
E.g. flexible
Social
working ,
weekend working,
shift working and
a typical hours
Economical
E.g.. New
businesses,
recession, Tax
Free Childcare,
Changes to
benefits, WTC
etc.
Technological
E.g. Social
media,
electronic
payments via,
email and
internet.
December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
2
Basing decisions on good business
practice
SWOT analysis
This is a useful tool to review your business. It helps you to look at your service
and will help you to work out where you are now before you start to plan for
change, growth, or expansion.
Strengths and weaknesses look inward at the service you are offering .
• Strengths - things that are good about your business that can be improved
or built on.
• Weaknesses - things that could let you down if they are not dealt with or
resolved.
Opportunities and threats consider outside influences which affect your service.
• Opportunities – areas that have potential for development; things that could
improve your sustainability, income, etc.
• Threats - risks that could affect the success of your plan; things that need to
be prepared for, controlled, or minimised.
You are likely to find it easier to control internal factors (Strengths and
Weaknesses) than external factors (Opportunities and Threats), but you should
be aware of as many external factors as possible to best prepare for them.
The SWOT analysis should be used to inform your development plan. For
example:
• If the quality of your service is a strength, how will you promote this?
• If business planning is a weakness, what will you need to do improve your
business planning skills?
• Do you know of a new housing development in your area that may create
opportunities for your service?
• How are you prepared for the threat of competition in your area from other
childcare providers?
The template on the next page can be used to complete a SWOT for your
business
December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
3
Basing decisions on good business practice
SWOT analysis
Strengths (Things that are good about your business that
can be improved or built on).
Weakness (Things that could let you down if they are not dealt
with or resolved).
Opportunities (Areas that have potential for development.
Things that could improve your sustainability, income,
etc.).
Threats (The risk that could affect the success of your plan.
Things that need to be prepared for, controlled, or minimised).
December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
4
Market research to inform your
business planning
Understanding the market in your locality
Think about your business and the childcare market in a 1.5–3 mile radius:
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What childcare is available to families?
What do they charge?
What hours do they offer?
What flexibility is available?
How many weeks are they open?
What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
5
Market research to inform your
business planning
Understanding the needs of your community
Think about the families who currently use your services:
• Will they be eligible in September 2017?
• How do they currently use free entitlement?
• What arrangements do working parents who use your services currently
make?
• Do you anticipate any changes in demand?
What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
6
Market research to inform your
business planning
Understanding the needs of families who use your
services
This is your chance to find out what families want. Think about who you may
want to focus on in your market research:
• Children on waiting lists
• Younger siblings of existing families
• Local toddler groups
Think about the things you need to know about each family to inform your
planning. Develop questions to get the answers you need to inform your
decisions:
• Would they be eligible?
• What plans (if any) do they have for using the additional hours?
• What changes could you make to your delivery model to assist parents work
more hours or return to work?
• Would they use before, after school, or holiday care?
• Would they use stretched entitlement over more than 38 weeks?
• Would they pay for additional hours beyond the 1,140 hours entitlement?
What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
7
Developing a model which works for
your business and community
What can I do?
Think about your business:
• What are the risks of doing nothing?
These may be minimal; demand may be low, or you may not be able to do
anything beyond 15 hours for 38 weeks. The important question to ask yourself
is: Will I be a setting who only offers 15 hours or will I be a setting who can, as
part of an effective collaborative local market, meet the needs of parents and
working families? What opportunities will 30 hours offer me?
What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
8
Developing a model which works for
your business and community
What can I do?
Think about your setting:
Can you offer 30 hours?
Do you have capacity to expand and increase your intake?
Could you extend your day or extend your weeks beyond term time?
Could you reconfigure your delivery model to offer places differently?
(increase flexibility and offer some 30 hour places?)
• Could you work collaboratively with local partners to offer parents the
additional hours?
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What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
9
Developing a model which works for
your business and community
Which model could work for your setting?
Think about your preferred delivery model:
• What are the barriers and challenges you have identified?
• What do you need help with?
What actions do I need to take?
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December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
www.westsussex.gov.uk/earlyyearsandchildcare
10
Action Planning
What are the next steps and actions you need to take?
Action
December 2016
For the latest version of this document and /or to make a Targeted Setting Support (TSS) request visit
By who
By when
www.westsussex.gov.uk/earlyyearsandchildcare
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