Why Opening a Nursery is the Best Business to Start in the UK

If you’re looking for the best business to open in the UK, you might be surprised to find the answer in the childcare sector. Opening a day nursery (childcare center) offers a rare combination of high demand, government backing, solid profitability, and personal fulfilment. With working parents driving up the need for childcare and the government investing heavily in early years education, there has never been a better time to start a nursery business in the UK. It’s not just another business idea – it’s a chance to run a profitable, rewarding, and future-proof venture that makes a real difference. In fact, here are just a few reasons why nurseries are a standout business choice today:

In this comprehensive guide, we’ll count down 10 of the best businesses to start in the UK today. Each idea comes with an explanation of why it’s a promising opportunity, plus key pros and cons to consider. We’ll cover cutting-edge trends like e-commerce and tech startups, as well as evergreen service businesses like food and childcare. By the end, you should have plenty of inspiration – and insight into which business could be your ideal path.

Let’s dive into the top ten business ideas and see which one sparks your entrepreneurial spirit.

Unprecedented Demand: Childcare needs are booming, with many areas facing nursery place shortages and long waiting lists.
Government Support: The UK government is expanding free childcare funding and pouring money into new nursery places, creating a fertile environment for new providers
Strong Profit Potential: Nursery businesses benefit from steady, upfront payments and healthy profit margins (often in the double-digits) when run efficiently.
Resilient in Recessions: Childcare remains an essential service even when the economy dips, making nurseries comparatively recession-proof.
Community Impact: As a nursery owner, you’re shaping young lives and supporting families every day – a fulfilling mission beyond just making money.

Below, we delve into each of these advantages to show why a nursery could be your perfect business opportunity in the UK.

Unprecedented Demand for Childcare

There has never been a better time to start a nursery, largely because demand for childcare is booming. The UK faces a significant shortage of nursery places. In fact, over 85,000 new childcare places are needed by 2025 to meet demand – a gap the government is keen to fill with new providers.

Parents everywhere are looking for reliable, high-quality care for their children so they can work. This means your nursery is very likely to fill up quickly. Many areas have waiting lists for good nurseries, so opening one can make you a local hero who provides a much-needed service (while running a successful business!).

Did you know? The UK government has pledged hundreds of millions of pounds to expand free childcare, helping create more spots for children and funding for providers. This huge investment means new nursery businesses can hit the ground running with strong financial support behind them.

Meeting this demand isn’t just good for business – it’s also immensely satisfying. Every child you enroll and family you help is a testament to why nurseries matter. You’ll be providing working parents peace of mind and children a safe, nurturing place to learn and grow. High demand coupled with meaningful service makes opening a nursery a win-win.

Strong Government Support & Incentives

One of the biggest advantages of starting a nursery in the UK today is the supportive policy environment. The government strongly supports early years education and has rolled out funding initiatives that directly benefit nursery owners. For example, the expansion of free childcare hours for toddlers means the government pays nurseries to care for those children – creating a steady income stream for your business.

How government support helps your nursery:

Funded Childcare Hours: Government-funded hours for 2–4 year olds (and expanding for younger ages) guarantee you income for those children’s places. It’s income regardless of economic ups and downs.
Subsidies and Grants: In some regions, start-up grants or business rate relief are available for new childcare businesses. This can reduce your initial costs.
Training & Resources: There are subsidised training programs for nursery staff and plenty of guidance from local authorities to help new nurseries meet standards like Ofsted requirements.

All these measures lower the barriers to entry and ongoing costs for your nursery. You’re not on your own – you have a safety net of funding and advice from public programs. This kind of support is unusual in many industries, but in childcare it’s only growing. The government knows that every new nursery opened helps more parents get back to work and boosts the economy, so they have a stake in your success.

Steady Cash Flow – Even in Tough Times

Running a nursery can provide excellent cash flow. Unlike some businesses that worry about irregular sales, nurseries operate on a steady, predictable billing cycle. Parents typically pay monthly fees (often in advance), and government funding for free places arrives regularly. This means you’ll have reliable income every month.

“Parents need childcare, no matter the economy.” Even during recessions or uncertain times, working families continue to need nursery services. Childcare is a recession-resistant sector – it’s an essential service that remains in demand year in, year out.

Nurseries also usually ask for deposits or advance payments to secure a child’s spot, ensuring you have upfront cash flow. Many parents pay via direct debit. In practical terms, this stable cash inflow helps you cover salaries, rent, and other expenses with less stress. You won’t be chasing clients for payment; your revenue comes in like clockwork.

Consistent income + high demand = peace of mind for you as a business owner. You can budget and plan for growth knowing you have a stable base of monthly revenue. This stability is a valuable asset, making nurseries one of the more recession-proof businesses to own in the UK.

High Profit Potential and Room to Grow

Beyond just stability, a well-run nursery can be very profitable. Childcare fees, multiplied by the number of children you care for, add up quickly. Once you reach near full capacity, your nursery can generate strong revenues. Many successful nursery owners enjoy healthy profit margins while still delivering great care.

What’s more, there are clear paths to expansion when you start a nursery:

Increase Capacity: As demand grows, you might extend your operating hours or take on more children (if space allows) to boost income.
Open Additional Locations: Proven your model works? You could open a second nursery in a nearby town or a different neighborhood, expanding your brand.
Ancillary Services: Some nurseries add revenue by offering extras like holiday clubs, after-school care, or parenting workshops. These diversify your income while serving your community’s needs.

Importantly, the childcare sector isn’t a fad – it’s a cornerstone of the economy. With more parents working and the population of under-fives holding steady, the need for nurseries is constant. That gives you confidence that your business can keep growing over the years. You’re building an asset that could even be sold in the future or passed on as a family business.

And remember, you won’t be alone on this journey. With the right support and mentorship, navigating growth is very achievable. I have helped many nursery owners plan their expansion and can guide you when you’re ready to scale up!

Childcare Is One of the Most Recession-Proof Businesses

When starting a business, it’s natural to ask:
“What happens if the economy takes a turn?”

This is where nurseries stand out. Childcare is widely considered recession-proof. The need for childcare doesn’t disappear when times are tough. In fact, demand can even increase during a recession. Why? Because families may need both parents—or single parents—to work longer hours just to keep up with rising costs.

As one report put it:

“Working parents continue to require childcare, and that means educational support remains a priority. Childcare services have shown resilience during downturns.”

This was proven during the COVID-19 recovery. While many industries struggled to bounce back, nurseries recovered quickly. Parents urgently needed to return to work, and they couldn’t do that without trusted childcare. Childcare isn’t a luxury—it’s a necessity.

Government support also helps keep nursery incomes steady.
During hard times, the government has stepped in to increase funding or expand subsidies to make sure parents stay in work. That means your nursery benefits from a cushion of support even when the wider economy is struggling.

Plus, nurseries often receive fees in advance or operate under contracts. That gives you more reliable cash flow compared to businesses that depend on unpredictable daily sales.

Let’s put it in perspective:

In a recession, people might eat out less.
They might delay buying a new phone or cancelling subscriptions.
But if they have young children, childcare isn’t something they can just pause. They need it to keep working.

That’s why childcare services are often at the top of “most recession-proof businesses” lists. As long as your nursery delivers good quality and builds trust with families, enrollment tends to stay strong even in uncertain times.

In short: A nursery business offers more than just income. It gives you peace of mind, knowing that your service will remain essential no matter what’s happening in the economy.

Making a Difference (The Personal Rewards)

While profits are important, part of what makes opening a nursery the best business is the personal fulfillment it brings. Running a nursery is unlike any other venture – you get to shape young lives and contribute to your community every single day. The smiles and milestones of the children in your care become your daily rewards.

If you’re someone who loves working with kids or wants to create a nurturing environment you never had as a child, a nursery lets you do that on your own terms. You’re not just building a business; you’re building futures – helping children learn, socialise, and thrive during their most important early years.

Many nursery owners say this impact is the best part of the job. You end each day knowing you made a positive difference, whether it’s helping a toddler say their first words or giving parents the freedom to pursue their careers knowing their little ones are in good hands. This sense of purpose keeps you motivated even when long days or challenges come up.

“Opening my own nursery was the best decision I ever made. I’m earning a living and doing something that changes children’s lives for the better – it’s incredibly rewarding.” – Edwina, Nursery Owner and proud client

The warm, family-like relationships you build – with kids, parents, and your team – are priceless. Birthday parties, first-day photos, graduation from preschool… as a nursery owner, you get to share in all these special moments. Few businesses offer this kind of heart-warming satisfaction.

Ready to Open Your Own Nursery?

By now, you can see why opening a nursery is such a compelling business opportunity in the UK. It hits the sweet spot of high demand, stable income, strong profits, and genuine purpose. It’s no surprise that more and more people – from educators to aspiring entrepreneurs – are deciding to start their own childcare business.

If you’ve been dreaming about running your own nursery (or even just curious after hearing all this), now is the time to explore it further. The conditions have never been better, and with the right guidance you can navigate the process smoothly. Here’s a quick snapshot of how to get started:

Research and Plan: Look into the childcare needs in your area and outline a business plan. Consider what will make your nursery unique.
Secure a Location and Funding: Find a suitable, safe premises and explore financing options (loans, grants, or personal savings) to cover start-up costs.
Meet Regulations: Register with Ofsted and ensure you meet all health, safety, and staffing requirements. This step is crucial but very achievable with support.
Build a Great Team: Hire qualified, caring staff who share your vision. A strong team is the heart of a great nursery.
Open Your Doors: With everything in place – from learning materials to licenses – you’re ready to welcome your first families and start making a difference!

Need a helping hand? Starting a nursery may feel complex, but you don’t have to do it alone. I have helped countless people open, run, and grow successful nurseries across the UK. If you’re feeling inspired and want expert support on your journey, reach out! I am happy to chat with aspiring nursery owners about how to turn your dream into reality.

“The ‘Open a Nursery’ courses and YouTube videos have been excellent resources for me as I embarked on starting my own nursery. They guided me from the initial idea all the way to a successful visit from Ofsted. I highly recommend these courses to anyone who dreams of starting their own nursery.”– New Nursery Owner(Trust Pilot Review), 2025

Your Next Step

Every successful nursery began with someone taking that first step. If you think a nursery could be the perfect business for you, get in touch with me for friendly advice and guidance. Whether you’re ready to start now or just exploring the idea, I can provide the insight and reassurance you need to move forward with confidence.

Opening a nursery could very well be your best business decision – profitable, purpose-driven, and future-proof. When you’re ready, I’m here to help you make it happen. Don’t let this opportunity pass by; the smiles of children and a rewarding business venture await you!

“Curtly has created a rich resource of valuable content for everyday people looking to open a childcare business. The content is highly insightful, practical and up to date. As soon as there are changes in legislation and policy, Curtly will publish a video or article explaining the implications. …I’ve found it extremely helpful as a new entrant to the nursery business… It’s simply brilliant.” – Aspiring Nursery Entrepreneur (Trust Pilot Review), 2024