The startup phase of any business can be a stressful time but when your vision is to provide a safe, fun and vibrant learning haven for young children then the prospect can be quite daunting. In addition to the usual challenges that need to be overcome there are numerous statutory requirements that must to be met. All of this takes time, dedication and a healthy cash flow to ensure that the business survives past the first few months of trading.
The RedBrick Day Nursery first opened its doors in May 2016, and has been providing childcare solutions for children aged from 6 weeks to 5 years ever since. The Nursery is open from 7am to 7pm, Monday to Friday providing parents and carers with the option to have their children attend either full time, part time or after school.
The owner, Simone, soon realised that in order for the business to flourish they would need a better cashflow which could provide a safety net until their reputation was established.
Cash Flow Injection
“Our need was simple, we had used all of our funds on getting the business started and needed a cash flow injection to allow us to comfortably run for a period of time until we hit that magic break-even point. Upon speaking to Chris and the team from NGI we knew immediately that we were working with the right organisation. Our instincts were soon proven correct when they were able to secure us funding which was four times higher than our bank was willing to provide.” – Simone Wade, Business Owner
The RedBrick Day Nursery initially consulted with their Bank who unfortunately were less than supportive and highly risk adverse. After a discussion with their Accountant, RedBrick were recommended to call NGI Finance. Simone explains, “We needed help but rather than contact numerous companies we felt that the best approach was to rely on our professional network and ask for a recommendation. First impressions really do count and as soon as we made contact with NGI we knew that we had selected the right company. Chris Morris took the time to drive to our location, discuss our needs and immediately started to work with us.”
It took The RedBrick Day Nursery just over 12-months to establish the business, overcoming several major hurdles along the way. Not least of which was the building location which had to be changed towards the end of the start-up phase due to circumstances outside of their control. In addition, Ofsted took so long to arrange a visit to approve the Nursery that Simone had to wage her own Social Media campaign in order to get them to respond.
As a consequence, it was a long time before the Nursery could start accepting placements, resulting in finances becoming stretched. Upon reviewing the Business Plan though, NGI were able to identify potential funding channels and ultimately secure a significant business loan.
Simone continues, “Chris, Maria and Michael are considered an extension to the staff here at The RedBrick Day Nursery. We know that any one of them will be available to answer our questions whenever we need them. At one stage we were stuck and needed help so we called Michael, it wasn’t until we finished the call that we realised it was 8pm. NGI really have certainly eased the stresses that come with starting a business and when funding was finally secured we felt a huge weight had been lifted from our shoulders. We have ambitious growth plans with a view to opening additional nurseries in the future. I have no doubt that whatever our finance needs, NGI will be with us every step of the way.”