If you’re a current or former teacher or have years of experience caring for children in another setting, you might have thought about starting your own childcare center – especially if you’ve always harbored an entrepreneurial spirit. Whether in your home or in a dedicated facility, starting this kind of venture is certainly a stable career choice; the childcare industry is projected to grow seven percent over the next decade, and no matter what, parents and guardians will always need someone trustworthy and kind to watch their children.
That said, experience caring for children alone isn’t quite enough to ensure that your childcare center gets off the ground. There’s a good amount of due diligence needed when starting this kind of business – after all, children are a gift, and preparing to care for them is a necessarily nuanced endeavor.
If you’re a pro at supporting, educating, and loving large groups of small children, half the work of starting a childcare business is already done for you. As for the rest of it? Here are some tips.
Decide and Plan
What kind of childcare business do you want to start? Do you want to work out of a home environment or a more commercial facility? Do you want to buy into a childcare franchise opportunity? What age group do you want to care for? What hours will your center have ¬¬– all day, after-school, weekend, or a combination? All of these questions will not only help you identify the necessary permits and financing you’ll need to get started but will help you write a business plan. More on that in a moment.
Next, decide on a business entity, which will impact the way you’re taxed and are required to operate your business. Will you work with partners? Own the business yourself? How much liability do you want to assume? Making your childcare center a limited liability company is probably a smart move since your business will take on liability if anything goes wrong…and with kids, that probability is high.
Next, get out a pen and paper or the device of your choice and start crafting your business plan. This plan should include a company overview, market analysis, a marketing and sales plan, and a financial plan with projections. While you don’t need this to be a big, fancy document right away and can always add to it as your business grows, having something in writing will keep you moving in the right direction as you continue to prepare for your grand opening.
Get the Right Licenses and Certifications
While a bachelor’s degree in education isn’t needed to open a childcare center, each state does require a combination of licensing and certification when it comes to starting a childcare center. Your state’s Division of Child Care Services (or its equivalent) will have all the training, experience, and credentials you need to legally operate a childcare facility.
Additionally, you’ll probably find that there are some other requirements that might come up, such as Professional development training for you and any other staff members. You and any staff will likely also need to be fingerprinted and undergo background checks before being cleared for work. Also be sure you have the right insurance at the right amount, as getting licensed in certain states often depends on that as well.
As a final note, in certain states, you’ll first need to show that your childcare facility – whether that’s a commercial building or your home – meets your state’s health and safety requirements. Make sure your facility meets zoning, health, safety, and fire laws and codes or you may get bogged down by the inspection process, which can stall other licensing and certification efforts before they even get started.
Get Financing
Until you break even, you’ll need some cash coming in to ensure your childcare can continue to provide top-tier service to children and their families. Open a business checking and savings account to keep your business finances separate from your personal finances – yes, even if you’re running your childcare center from your home – and look into applying for loans or opening a business credit card for related expenses.
When researching loans, keep in mind that your state may have special financing opportunities for individuals or businesses interested in opening childcare centers. Especially if you intend to provide financial relief for low-income families in the form of reduced childcare tuition, you may be eligible for this kind of aid – and that’s a good thing for both you and your community.
Put It in Writing
Contracts and policies may be dry and boring, but nothing demonstrates to parents and guardians that you take the health, wellbeing, and care of their child seriously like these ironclad documents – which you should have all clients sign before accepting their patronage.
Your contract should state the circumstances under which you will provide care, the compensation, payment terms, and rights of termination. Your policies should provide parents with important logistical information regarding how you’ll run your childcare center, including protocols regarding vacation, illness, inclement weather, drop-offs and pickups, trips, and more. Putting these documents together with the help of a business lawyer will ensure your childcare center is covered and parents and guardians have peace of mind when releasing children into your care.
Starting a childcare business is an incredibly rewarding venture, and is a great way to care for children by providing them a nourishing and enriching environment in which to learn and play. By following these tips, you’ll have a solid foundation on which to build something amazing.
Author: Joy Maxwell is an inspirational childcare consultant and former professor with over 20 years of experience in the education field and dual master’s degrees in Child Psychology and Multicultural Education. She founded Joy Maxwell & Co. as well as numerous childcare coaching courses dedicated to serving child care professionals and helping them achieve their dreams. Find out more on her website: https://www.joymaxwellandco.com/ or email: info@thejoyofchildcare.com
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