Are you thinking of starting an in-home daycare business? You may have experience as a parent or teacher and want to have a more flexible schedule. You may want to finally be your own boss.
Starting a business of any type can be daunting. New business owners often don’t know what to expect and they often don’t survive beyond five years.
There’s a way to create an in-home daycare business that thrives. That starts with building a solid foundation.
Read on to find out how you can build a business that you’ll love.
Know the Licensing Requirements
You can’t just open the doors to your home and welcome children and parents to your daycare business. There are things that you need to do before you can operate as a legal business.
When you’re working with kids, you need to know that there are strict licensing requirements to start your business.
The licensing requirements will vary from state to state, even from town to town. You want to check with your state and municipality to find out the requirements.
Some areas require that you have a certain amount of space to accommodate each child and have ample outdoor space. It’s highly unlikely that you’ll be able to run an in-home daycare business out of an apartment.
You are likely to need a background check, first aid/AED certifications, and physicals for you and members of your household. That’s to ensure that there isn’t a disease like measles or TB that could put children at risk.
You will also have to get the appropriate level of business liability insurance. Your homeowner’s insurance alone won’t cover your business. You may have to get a separate policy or have a rider attached to your policy.
Aside from the licensing requirements, you’ll need to have a separate space or spaces for your daycare. Kids aren’t going to be contained in one area for a long period of time. You’ll need to have a few spaces that are dedicated to your business.
That will keep your business and home lives somewhat separate. It will also protect your privacy as kids won’t completely take over your home.
Write a Business Plan
You may be eager to start your in-home daycare business right away. That’s a mistake that businesspeople make. They jump right in and make one expensive mistake after another.
You want to pause and take a deep breath before you jump right in. A business plan forces you to take a long-term and objective look at your business.
You’ll analyze the competition, the risks, and the potential size of the market. You’ll be able to tell if you have a viable business before you begin.
For example, you may have a great idea for your in-home daycare business. You may also live in the middle of a retirement community, which means that you could have trouble generating a lot of business if kids don’t live nearby.
A business plan will help you think about all of the possibilities of your business. You’ll also refine your pricing and run through the financials to make sure you will make a profit.
Put a Team of Experts Together
After you write your business plan, you’ll need to have a team of experts to guide you through various situations. Running a business means that you wear many hats and have to be an expert in everything from accounting to business law.
Unless you already know everything, you want to rely on other people to help you make smart decisions.
You want to consult with a business lawyer who can advise you on your business set up. Should you register your business as an LLC or S-Corp? There are advantages and disadvantages to each. An attorney will guide you in those decisions.
An accountant will help you set up your books and figure out your tax obligations. You can’t afford to make mistakes on your taxes.
A childcare consultant is another person to have your team. They can help you with marketing and strategic planning. More importantly, they can help you be profitable.
Marketing Your In-Home Daycare Business
As you get ready to open the doors of your business, you’re going to need to market it. That’s how you’re going to get a steady stream of kids to your business.
There are a few basic things that you need to know about marketing your business. The first is to understand what sets your daycare business apart from the others in your area. This is called your unique selling proposition.
It basically answers the question “Why should parents send their kids to you as opposed to anyone else?”
The next thing you need to do is to develop your brand. Your brand isn’t your logo. Your brand is how people connect with your business. You want to leave a warm and welcoming feeling that parents can trust.
Once you have the marketing basics down, you can then focus on how to let people know that your business exists.
You can invest in search engine optimization, social media, and networking.
You can connect with other teachers in the area and let them know what kind of services you offer. They are often asked for recommendations by parents. You want your business to be at the top of the list.
Starting an In-Home Daycare Business
Starting a new business venture can be exhilarating and overwhelming at the same time. There’s so much to know and do, it can be hard to keep track of everything.
Starting an in-home daycare business requires more juggling because you also have to meet strict licensing requirements to operate. However, with careful planning and strategy, you can launch a successful business.
Would you like to know more lifestyle tips? Come back to the blog regularly for the latest articles.