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Frequently asked questions

Question 1: How much does it cost to set up a co‑operative nursery?

Answer: The cost of the setting up a childcare co‑operative is dependent on;

a) The size of the nursery and the amount of places being offered.

b) The types of premises that you are looking to use i.e. will it be leasehold, freehold or rent-free?

Q2: What is my competition?

A: Check with your local Children's Information Service who will have details of all services listed in your area.

Q3: Where can I get support in writing a business plan/finance budget/market research?

A: Refer to your local co‑operative development body of Co‑operatives^UK (www.cooperatives-uk.coop/advice)

Q4: Where do I find people to go on the management board?

A: You may want to advertise in your local newspaper or other advertisement space, refer to a local stake-holder group or organise focus sessions.

Q5: Why should we bother to incorporate?

A: Incorporation provides valuable protection to the directors of the co‑operative, limiting their personal liability.

Q6: How do we know which is the best legal structure for our childcare business?

A: We have a simple multiple-choice exercise designed to help you identify the best legal structure for you.  This is available both in paper format from Co‑operatives^UK and online at www.cooperatives-uk.coop/sas.  There are also specialist co‑operative development organisations around the UK that can provide advice and support, and help you decide the best legal structure.  A list of these organisations can be found at www.cooperatives-uk.coop/advice.

Q7: We want o be able to apply for grants, isn't a charity the best model?

A: Lots of co‑operatives successfully apply for grants for specific projects or initiatives. Being a charity is a different issue.  Charities are controlled by people who are not the main stakeholders (for example employees of a charity are not allowed in law to become trustees).  Charities play an important role, but their structure does not facilitate the participation of those most closely involved in the business.  Charities are considered to be for the wider public benefit and are not there to benefit stakeholder groups such as employees or users of the organisation.

Q8: Is it possible to convert a charity into a co‑operative?

A: No, conversion is not possible but if an organisation wants to become a co‑operative it can be done only if the trustees agree to winding up the charity.  A new co‑operative business needs to be set up.

Q9: In a co‑operative who manages the business? Does everyone have to make decisions about everything?

A: According to the size of the business, strategic decisions are either taken by all of the members, where this is practical, or by an elected board of directors.  Whilst the directors are responsible for the direction of the business a manager or management team is usually given the responsibility of taking the day-to-day business decisions.

Q9: What is the difference between a co‑operative and a social enterprise?

A: A co‑operative is a specific type of social enterprise, founded on the distinctive set of co‑operative values and principles.