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Being awarded a good or outstanding grade from Ofsted demonstrates strengths in the quality of the practice and will generate opportunities to increase occupancy and finances through 2, 3 and 4-year old early entitlement funding.

Being awarded a ‘Requires improvement’ grade from Ofsted demonstrates weaknesses in the quality of the practice and could impact on all aspects of the business including; pricing structure, staff morale, marketing and occupancy.

Settings that can demonstrate high quality are able to maximise occupancy through parent demand and offering 2, 3 and 4-year old early entitlement places.

Changes in government policy can present a threat to any business that isn’t sufficiently prepared for proposed changes that affect the sector.