InRatio

The commercial question

Is there a business in this?

The question now is whether we sell it to other nurseries, or build it just for Naturally Learning. Here is what the research turned up, told straight.

Use the arrows, or swipe
InRatio

Who we could sell to

The whole field, and the slice that's ours.

27,300 nursery settings in England. This is how they are owned.

The giants80+ settings
~7 groups
On bespoke deals with the big platforms. Not for us.
Mid groups20 to 80 settings
~20 groups
Worth more each, but there are only about twenty, and they are hard to reach.
Our focus
Small groups5 to 19 settings
~235 groups
Big enough to feel the pain, small enough that no one has built for them. Your own tier, and the most reachable of the four.
Single and tiny1 to 4 settings
~18,000
Can keep a rota on the wall and cope by hand. Not worth selling to.

Too big, taken, or too small to bother. The band you sit in is the one that's left.

On the numbers: ~235 is the figure we could verify, by counting the sector directory ourselves. Savills puts the 5 to 19 band nearer 1,600, though we could not confirm that.

InRatio

What we would be taking on

One stays simple. The other gets serious.

Keep it between us

Build it for Naturally Learning. No one else.

  • No company, just a light agreement
  • Runs in your own setup
  • A few hours a month

Light to run, and low risk.

Naturally Learning stays the registered person, so the compliance responsibility sits with them.

Turn it into a company

Sell it to other nursery groups.

  • Limited company plus accountant£800 to £2k a year
  • Solicitor contract and terms£2k to £5k to set up
  • Indemnity and cyber insurance£850 to £1,800 a year
  • Someone on call, with holiday cover
  • The ruleset kept current for every client
  • 15 to 30 hours a month, every month£9k to £18k of time
£2k to £5.4k a year in cash, plus £9k to £18k of our own time

Every setting that relies on it becomes ours to answer for.

On £12k to £25k of realistic revenue, once the overhead and our own hours are paid, what is left is pocket money. And the money is the smaller worry. Sell it to other nurseries and we vouch for their compliance, in a system built around children's safety. Insurance can cover the money if something goes wrong; it cannot lift the responsibility, and the law will not let you sign away liability for harm to a child. That is a serious thing for two people to carry, and the revenue does not make it worth it.
InRatio

If we decided to chase it

Where it becomes a business, and how we'd find out.

5 to 10 customers

£10k to 25k a year

A paid side project

Roughly what your own network might bring on its own. A side income at most.

Aim here first

~20 customers

£40k to 60k a year

It pays for our time

The first line worth aiming at. It stops being a favour with costs and becomes a real side income.

~50 customers

£100k+ a year

A proper business

Worth going all in on. But it needs a bigger market than we can prove today, so treat it as the upside.

How we'd find out, before a penny goes on the company

  • A join the waitlist page on the domain. A weekend to build, next to nothing to run.
  • You put it in front of a few peers. We learn fast whether they would buy a bolt-on, and what they would pay.
  • Set the company up only if the signups and the yeses turn up. Demand first, overhead second.

The honest verdict

Build it for you. Prove the rest before we bet on it.

The tool is good and the gap is real. But the slice of the market we can actually reach is small, the money in it is thin, and turning it into a company is a real step up in cost, time and responsibility, more than the revenue justifies today.

So build it for Naturally Learning now. That part stands on its own, contained and low risk. Setting up a company is the decision to be careful with.

If we want to know whether there is more in it, the waitlist answers that for the price of a weekend. Aim for twenty. If the demand shows up, we cross the line then, with our eyes open. If it does not, we have lost nothing but a domain and a Saturday.

A good tool today. A business only if the market proves it.

InRatio
01 / 05