Michele Davison talks to NMT editor Charlotte Goddard about her journey from nursery manager to nursery owner, and offers insights for aspiring nursery entrepreneurs

Michele Davison always knew that when she opened a nursery it would be between London Fields and Victoria Park in the London borough of Hackney. She knows the area well, from visiting her grandmother who lived just around the corner from where she established Angels on the Park in 2019.

“When I was growing up this space was a Turkish garment factory, so I have memories of the ladies sitting outside and having their lunch,” she says.

Davison gained her National Nursery Examination Board (NNEB) qualification in the 1990s, going on to obtain a degree in English literature. She worked in schools and children’s centres before becoming manager of a private nursery in Hoxton.

The demographics of the Hoxton nursery were very similar to those of Angels on the Park, she explains. “On one side of the road were houses selling for a million pounds, and on the other side was a council estate,” she says. “I wanted to help children from disadvantaged backgrounds, and to narrow the attainment gap, but I knew nothing about management and had to learn very quickly.”

Davison took the nursery from “below zero – it was a terrible nursery” to Outstanding-rated. But when the nursery owner decided to focus on more affluent families, reducing the number of funded places available and increasing fees, she started to think about opening her own setting, which she did six months before the pandemic hit.

“I always felt there was a gap in this area, there are some other nurseries here now but there were none at the time,” she says. “It was in an area where the demographic meant we could pay the bills but at the same time I could have spots for children from disadvantaged backgrounds.”

“I wanted to help children from disadvantaged backgrounds, and to narrow the attainment gap, but I knew nothing about management and had to learn very quickly.”

In the same way that she had taught herself management skills, Davison now had to get up to speed on business and finance. “It was so difficult, as there was nobody in my position I could talk to. I have no formal training in terms of setting up a business, so I did a lot of reading and research,” she says. “I was trying to write my business plan, listening to lectures and reading biographies of business people, alongside my day job. It was a difficult time but I learned so much.”

Her family clubbed together to help her buy the space but could not raise enough funding as the building needed to be converted. “I tried crowdfunding, which did nothing, and then I found some angel investors,” she explains. “One my ex-husband worked with, and the other two I found on an angel investing website.”

She feels the location of the nursery and its 5,500sqf area is its main selling point. The large hall in the middle of the space is used for activities, with climbing and soft play equipment.

Angels on the Park has full occupancy with around 108 children on register, and 72 at any one time. Davison does not operate a waiting list. “We don’t have a waiting list because it’s stressful for parents – they could have their child’s name on the waiting lists of five nurseries and not get a place in any of them,” she explains. “We advertise any vacancies we have coming up on social media and on our website so they’re filled pretty quickly and being able to book a space that’s secure gives parents certainty.”

The setting runs parent workshops at the weekends, which plays a role in marketing the nursery. “Also when we take the children out in their high-vis jackets, to the Tower of London, or to the farm, they have always a bit of advertising on the back!”

“I would like the government to look at the staffing crisis and really tackle it head on. “

Recruitment is one of the biggest challenges facing nursery owners, says Davison. “I would like the government to look at the staffing crisis and really tackle it head on. We pay 20% more than the average, we offer a good amount of holiday, bespoke training plans, and we are still trying to recruit for two practitioner roles.” The nursery provides an employee assistance scheme and is just about to provide a private healthcare scheme.

Despite taking part in what seems like a cascade of consultations, Davison does not feel her voice is being heard. “The big chains have a massive voice, but small providers do not, and the day-to-day problems we have are not the same, so I find it really frustrating.”

As with much of the sector, finances are tough. Davison says she was already struggling with business rates, even before the rises in National Insurance contributions and the minimum wage.

“Our business rates are £75,000 a year because our space is so huge and that stops us investing in our provision,” she says. “The government seems to think that throwing the extended funding at us somehow mitigates what they are taking away from us in terms of business rates, and NI contributions.”

Lack of prompt payments from the local authority is also a thorn in Davison’s side. “It is now 9 January, and we have not been given our January allocation yet,” she says. “We are even still waiting for some of the money we are owed for December.”

Davison is currently undertaking a Chartered Institute of Personnel and Development Level 5 qualification in people management, and believes her leadership style is all about empathy and nurture. “I like the staff to feel valued and heard,” she says. “Once they have finished their probation we talk about what speciality they would like to have, then we upskill them as much as possible in that speciality and then they train us. It helps them understand their contribution is important to us.”

Angels on the Park is due an Ofsted inspection in 2026, and Davison’s current focus is on improving the setting’s current Good rating to Outstanding. “At that point I may think about stepping back a bit and thinking about the management structure in the nursery and how it can work without me,” she says.

Her advice to others opening a nursery is to be realistic about the work it will take. “Are you willing to work up to 80 hours a week, at weekends, because that is what you will have to do?” she says. “Are you realistic about the finances? The most important things are drive, determination and passion, if you have those you are halfway there.”