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Top 10 tips for childcare business growth

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Growing a childcare business in the UK today means more than just filling places - it means increasing revenue, improving operational efficiency, and delivering an exceptional experience for both parents and children. If you're wondering how to grow a childcare business in 2025, the answer lies in combining digital tools, strong financial planning, and community-focused service delivery. This guide shares ten proven strategies to help you achieve long-term childcare business growth - whether you're running wraparound childcare, afterschool clubs, or a multi-site childcare provider.

Running a childcare business is more demanding than ever. Between admin tasks, rising operational costs, and tighter competition, it can be hard to find time to focus on growth. But with the right strategy and tools, growth doesn't have to be complex. Here are ten practical, proven business tips to grow your childcare business in 2025 and beyond.

Inspired Learning Group says, since switching to MagicBooking “We have seen an increase in revenue at our provision, partnered with a reduction in hours spent organising everything.” You can skip the read and book a free tour of our system to see how MagicBooking helps organisations grow.

How to set up, open, and run a childcare business

Starting and running a childcare business takes clear planning, the right setup, and good systems.

Whether you're setting up a business or already running wraparound childcare, holiday clubs, or a school-linked programme, here are the key steps:

• Write a simple business plan - Set out your goals, services, pricing, and how you’ll grow. Include care like afterschool clubs or holiday sessions if needed.
• Register and follow the rules - Register with Ofsted or the correct body in your region. Make sure staff checks, training, legal requirements, and safety policies are in place.
• Secure your space - Choose a safe, legal setting such as a home, school, or childcare venue. Get insurance and meet safety standards.
• Use smart systems - Set up a childcare online booking system (like MagicBooking) to handle payments, bookings, registers, and messages from the start.
• Hire and support staff - Recruit the right team, offer training, and keep them happy to reduce turnover. Equip them with a childcare admin management platform to help with their productivity.
• Promote your business - Build a strong local presence online and in your community to attract new families.
• Engage parents - Keep communication clear and easy, with online tools that help them stay informed and involved.

1. Define and refine your childcare business plan

A solid business plan isn't a static document. It should grow and change with your service. Review your goals, performance metrics, and audience annually.

Are your marketing efforts attracting the right families? Are you priced competitively? Are your wraparound care or afterschool childcare services aligned with local demand?

Tip: For more detailed tips for starting a business in the childcare sector, refer to trusted resources like PACEY and the NDNA to shape and review your plan.

MagicBooking’s autogenerated reports and fast-to-access information allow for easy future forecasting and strategising. That’s why 80% of our schools & clubs found planning for the future easier with MagicBooking than previous systems! See it for yourself in a free demo.

How can you grow your business?

If you're pursuing childcare business growth but you are only interested in reading resources for now, visit our previous blog on growing and scaling your childcare business, activity club, sports club, or school programme. This goes into further detail on “how to expand my business”.

2. Embrace digital transformation

Still managing bookings or payments manually? That might be holding you back. Switching to a full childcare admin solution like MagicBooking helps you cut down manual processes and scale faster.

Moving to a full childcare booking platform or childcare admin solution like MagicBooking gives you back 25 hours a week!

MagicBooking is a leading childcare admin solution UK providers rely on for complete booking, payment, and management support. With our childcare management software you can:

• Automate registrations and payments
• Manage childcare vouchers and Tax-Free Childcare (TFC)
• Offer flexible online bookings for childcare services
• Track attendance and generate instant reports
• Run a full childcare booking website with branding
• Simplify a range of payment types including automated SaaS payments

Financial accessibility is a key factor for families when choosing childcare services. In 2024, 50% of parents with children registered with a childminder utilised Tax-Free Childcare to pay for services (Gov.uk).

Ensuring your wraparound care or childcare business is registered and promoting this option can make your services more attractive to cost-conscious families. Hence, having a system that not only supports TFC payments but makes them easy is imperative!

Book a free demo to explore how our childcare booking system platform UK can streamline your operations. Our clients save 4-5 hours of admin a day. Join them. Book a free demo to explore how our childcare booking system platform UK can streamline your operations. Our clients save 4-5 hours of admin a day. Join them.

3. Strengthen parent engagement

Strong communication builds trust. Use your software to send targeted emails or SMS, update parents on changes, and manage bookings easily. Parents expect modern, mobile-friendly platforms.

Consider adding a childcare booking app or parent portal that allows parents to self-serve bookings and check attendance.

For more advice on boosting parent engagement, read our previous blog.

MagicBooking improves accessibility for parents by 93% - View the full data report. Shine Clubs reported a 9/10 satisfaction score from parents in their case study! Fancy getting the same results? Book your free demo to see why we’re popular with parents.

4. Improve your online presence

Your website should act as a 24/7 enrolment assistant. Ensure it is:

• Mobile-optimised
• Fast! Test your page speed
• SEO-friendly with relevant keywords for your customer base e.g. kids clubs near me, fun after school club, dance classes Oxford.
• Search-friendly (from SERPs to AI) e.g. use longtail search queries to format your pages or articles
• Offer a childcare portal to an online booking system that parents can log into
• Accessible from social media e.g. Facebook, Instagram, LinkedIn, TikTok, Twitter. Your chosen platforms should be informed by your parents

Tip: Claim and update your Google Business Profile or Trustpilot and encourage parents to leave reviews.

Want a professional-looking childcare booking solution without the cost of a full website? MagicBooking gives you a branded childcare booking platform with your own unique URL - no website needed.

If you already have a website, we’ll tailor your MagicBooking system to match your brand seamlessly.

Ready to improve parent experience and streamline your online presence? Book a free demo to see how easy it is.

5. Build your brand locally for childcare business growth

Your local area is where to find your potential customers. Word of mouth is powerful, but consistency is key.

• Use the same logo, colour palette, and tone across all platforms.
• Feature real stories and testimonials on your site and social media. Try to get a mix of videos and written reviews.
• Local partnerships with schools, activity clubs, sports groups, or breakfast programmes to help broaden your reach.
• Invest in flyers, leaflets, posters, and business cards. Identify where you target market is likely to be and then ask relevant local places for permission to display them e.g. cafes, schools, hairdressers, or other non-competing clubs. You could even deliver them by hand to local households.
• Don’t forget that local advertising can refer to online means too e.g. local Google ads, Google Maps, and targeting local SEO.
• Set up a referral programmer that encourages word of mouth locally e.g. every new friend you bring wins you a free session.

6. Diversify your products or services

Can you add:

• Holiday or summer childcare?
• Broader range of ages?
• Further themed clubs and new activities?
• Monthly or yearly ticketed special events or parties?
• Field days and trips?
• Online appointments and meetings or online classes?
• Downloadable resources & content marketing?
• Social events for the whole family or parents only?
• Engage in fundraising, like an NSPCC event?
• Special sessions for kids from full time working parents?
• Uniforms, snacks, equipment etc. for purchase on your E-shop? (MagicBooking’s platform includes a free E-shop)

Adding new services increases revenue per family, encourages community building, and strengthens your value. Read this blog for business ideas and advice on how to keep your holiday club busy all year round.

MagicBooking makes it easy to expand. For example, Shine Clubs found that MagicBooking increased their term-time bookings by 40%. From childcare scheduling software to online payment solutions, we offer one system for all. Book your free demo.

7. Monitor financial performance closely

Strong financial control is crucial. A good childcare booking management system should give you:

• Live revenue dashboards
• Automated invoicing and payment reconciliation
• Late payment reminders and late fee automation
• Financial reports for auditing or growth tracking

Tools like MagicBooking support childcare payment processing, direct debits, TFC, automated fee reminders, and real-time updates.

Our clients report a 73% increase in cash flow after switching to MagicBooking!

Shine Clubs reported a 60% reduction in payment collection time and 30% increase in quicker payments and earlier bookings after switching to MagicBooking.

Ready for less chasing and more managing? Book a free demo today.

Adding new services increases revenue per family, encourages community building, and strengthens your value. Read this blog for business ideas and advice on how to keep your holiday club busy all year round.

MagicBooking makes it easy to expand. For example, Shine Clubs found that MagicBooking increased their term-time bookings by 40%. From childcare scheduling software to online payment solutions, we offer one system for all. Book your free demo.

8. Invest in your team

Staff retention remains a critical challenge in the childcare sector. In 2024, turnover rates for paid childcare staff were twice as high in group-based providers (16%) compared to school-based providers (8%) - IBIS World.

Your staff are the foundation of your childcare service - and a key driver of growth. It is essential to invest in their development and retention. Offer regular opportunities for continuing professional development (CPD), schedule structured feedback sessions, and implement systems that reduce manual admin tasks, freeing them to focus on delivering quality care.

High staff turnover not only disrupts continuity for children and parents, but also creates added costs in recruitment, onboarding, and training. A stable, well-supported team improves parent engagement, strengthens trust in your service, and ensures smoother day-to-day operations - making it much easier to scale your provision confidently.

Empower your team with instant, easy admin, and time back to focus on the kids or business growth! Book your free demo to get started.

Discover why MagicBooking is trusted as one of the leading childcare software management UK platforms for clubs, schools, and MATs.

9. Strengthen safeguarding and stay Ofsted-ready

Business growth is only sustainable when safeguarding is prioritised. Digital systems like MagicBooking centralise essential child information - such as medical needs, allergies, dietary requirements, and SEND notes - ensuring that critical data is accessible when and where it’s needed.

You can log and monitor injuries or incidents in real time, generate reports instantly, and maintain a clear audit trail for inspections by Ofsted, Estyn, the Care Inspectorate, or ETI. Transparent communication with parents is built-in, with incident reports easily shared and stored.

Being able to produce childcare attendance tracking reports at the click of a button is a game-changer for Ofsted registered childcare settings. Emmer Green Primary School impressed Ofsted with our features – read the case study.

Protect what matters most while preparing for growth.Book a free demo to see how MagicBooking supports safeguarding, compliance, and parent confidence - all in one system.

10. Focus on scalable systems

Growth becomes chaotic without systems that scale. Ditch the spreadsheets and legacy tools. Opt for a flexible childcare management platform UK providers trust - one that offers:

• Online bookings and payments
• Parent communication like SMS, email, and in-system reminders
• Automated registers, financial reports, and accounting software
• Wraparound care and childcare management tools
• Breakfast club and school dinner payment tools
• School trips and field trips admin software
• Parents evening booking tools
• After school club booking software

Ready to scale without stress? One provider saw a 40% increase in term-time bookings and up to 75% less admin time post-implementation. Discover how you can scale your childcare business with smarter childcare booking software. Book a free demo today and see how MagicBooking can support your childcare business growth.

How MagicBooking can help towards childcare business growth

The bottom line? Sustainable business growth requires smart investment - and a management system like MagicBooking is a clear example of where that investment delivers real results. MagicBooking’s childcare scheduling software supports flexible bookings, reducing admin time and errors

Join the providers growing faster with less effort.

92% of schools and clubs say their old childcare booking system couldn’t do what MagicBooking can. 9 in 10 users find it easy to use, with 90% feeling more organised, 86% reporting increased savings, and 80% planning ahead more easily.

See what your business could achieve - Book a free demo today .

Frequently Asked Questions (FAQs)

How can I attract more parents to my childcare service?

Invest in SEO for your childcare booking website, list your business on directories, offer flexible booking policies, and run localised Facebook ad campaigns. Tools like MagicBooking help you manage your business, forecast for the future, and scale up.

What’s the best system for childcare booking tools?

The best full-service childcare booking system for UK-based providers use is MagicBooking. MagicBooking automates payments and bookings, boosts parent engagement, cuts admin, saves time, auto-generates reports, and enables business growth! It is built for all kinds of childcare bookings, from schools and MATs, to clubs, charities, and other childcare providers.

Can I accept childcare vouchers and tax-free childcare payments?

Yes. MagicBooking’s childcare service booking platform supports tax-free childcare integration and voucher tracking as part of its core payment features.

What’s the easiest way to manage afterschool clubs and holiday care?

No. With our highly commended guided onboarding and customer support, moving to a childcare software UK-based platform like MagicBooking is simple. Our highly regarded customer support is referenced in case studies like this one.

How do I accept childcare vouchers as a business?

To accept childcare vouchers, you must register with the voucher providers your parents use. You’ll also need to be Ofsted-registered or approved by the relevant authority. Read the article for further business tips.

How do I start a childcare business at home?

Register with Ofsted, complete DBS checks, meet safety requirements, and write a simple business plan. Use online systems to manage bookings and payments from the start. Read the full blog for our tips for starting a business. A home set up is certainly feasible for small business owners.

Is the childcare industry profitable?

Yes, when managed efficiently. Childcare businesses with strong local demand, streamlined admin, and scalable systems can be both sustainable and profitable.

What is the most difficult experience in childcare?

Managing staff shortages, safeguarding responsibilities, and balancing admin with high-quality care are some of the most challenging aspects.

What occupation and sector does childcare come under?

Childcare falls under the Early Years and Education sector. Occupations include childcare practitioner, nursery manager, and playworker.

What are the top three industries that employ childcare workers?

The top employers are private nurseries, local authority settings, and primary schools with early years provision.

What is considered a growth industry?

A growth industry shows rising demand and long-term expansion. Childcare is considered a growth industry due to increased government funding and rising parental need.

Is childcare a demanding job?

Yes. Childcare requires physical energy, emotional resilience, and strong communication skills. It’s highly rewarding but also demanding.

What is development in childcare?

Development refers to how children grow in physical, emotional, social, and cognitive skills. High-quality childcare supports all of these areas.

What industry is working in a nursery – is nursery classed as childcare?

Yes. Working in a nursery is part of the childcare sector, specifically within early years education and care.