daycare business is the location.<\/a> You first need to decide if you will operate your daycare out of your own home or if you will be renting a commercial space for the daycare.<\/span><\/p>\nMany new business owners choose to operate their daycare out of their home as they are getting started. This is an excellent way for you to keep your costs low. However, your home will need to have enough space to comfortably hold the children you care for. Since some states will require a certain amount of square footage for every daycare facility, you need to refer to your local state regulations to see if using your own home is a possibility.<\/span><\/p>\nIf you do decide to use your own home for your daycare, you also need to decide on where in the home you will set up your business. If you plan on caring for multiple children, a large living area like an open basement will be ideal for setting up your business. You also want to look at your outdoor space to ensure you have enough room for the children to play.<\/span><\/p>\nRenting commercial space can be ideal if you have more funding available and you plan on growing your daycare business quickly. Since commercial spaces tend to provide much more space than your home, you will be able to accept more clients and grow your business into a larger organization.<\/span><\/p>\nWhen searching for a commercial space, it is essential that the monthly rent fits within your budget that you\u2019ve already set. If the monthly rent is far outside of your budget, it can cause your business finances to go in the negative and risk your business failing. Other factors you need to keep in mind is the square footage available and how soon the commercial space is available for you to take over.<\/span><\/p>\n<\/span>Step 7: Purchase Business Insurance<\/span><\/span><\/h3>\nBusiness insurance is a vital tool for all daycare businesses. Insurance acts as protection for your business. Without business insurance, you can end up being financially responsible for any accidents or situations that may arise in your daycare.<\/span><\/p>\nIn some states, you will be required to have a certain amount of insurance coverage before you open your daycare. When you are searching for your insurance, you need to refer to your local regulations to make sure you meet the minimum coverage amount.<\/span><\/p>\nWhen you are looking for business insurance, we recommend getting quotes from around 3-5 different insurance companies. You want to compare the amount of coverage for each policy, the deductible you will need to pay and ask if there are any other benefits included in the insurance policy. This will help you choose the best insurance company and policy for the needs of your business.<\/span><\/p>\n<\/h3>\n<\/span>Step 8: Acquire Licenses and Permits<\/span><\/span><\/h3>\nOnce you have decided on important factors for your business like your business name and location, you will be ready to acquire your required licenses and permits. When you submit the application for your business license, you need to make sure you\u2019ve met all the regulations that are required upfront.<\/span><\/p>\nApplying for your business license is a process that requires you to pay close attention to detail. You want to ensure that you have all the required permits and documents before you submit your application. If you must edit or make changes to your application after you\u2019ve already submitted it once, it can delay the time it takes to receive your business license and it can cause you to pay more in fees. We always recommend being prepared upfront.<\/span><\/p>\nOnce you have your business license and all the required permits, you want to keep these documents in places they can easily be seen. When potential clients are looking at your daycare facility, they will want to see that your business is legal and has met all the local state requirements.
\n<\/span><\/p>\n<\/span>Step 9: Set Your Rates or Packages<\/span><\/span><\/h3>\nThe prices you charge your clients is a large part in determining how successful your business will be in the long run. If your price is too low, your business can end up struggling financially. If your prices are too high for your area, you can experience a more difficult time landing enough clients to keep your business positive.<\/span><\/p>\nBefore deciding on your rates, we recommend finding the common rates in your specific area for childcare services. To find your rate, you want to call around to 3 to 4 different daycare facilities near you that have good reviews. You want to ask for their rates for various child ages, along with part-time care verse full-time care.<\/span><\/p>\nOnce you\u2019ve collected the rates from daycares around you, it\u2019s time to evaluate the rates. Is there a common range that all the daycares fall into? As you are starting your new business, we recommend staying within this range. As you book more clients and get more experience, you can raise your prices later.
\n<\/span><\/p>\n<\/span>Step 10: Purchase Your Supplies<\/span><\/span><\/h3>\nNo matter what your vision is for your daycare, there are certain supplies that you will be required to purchase to operate properly. Every daycare facility will need safety equipment, toys, learning materials, and cleaning supplies. You must purchase all your supplies before you open your doors for business.<\/span><\/p>\nLike renting a commercial space, it is important to stay within your budget when you are purchasing supplies for your business. To help you stay within your budget, we recommend making a list of the supplies you will need before you start shopping. This will help you stay on the right track when you are out shopping.<\/span><\/p>\nYou will need to include toys on your list for each of the age ranges you plan on caring for. We recommend purchasing toys suitable for infants, toddlers, and pre-school aged children. Examples of toys you want to purchase include blocks to match colors, toy cars, and dolls. You can start with a lower amount of toys and then purchase more toys as the number of children you care for increases.<\/span><\/p>\nFor learning materials, we recommend purchasing art supplies, books, math worksheets and plenty of blank paper. As your budget increases, you can purchase other learning material like devices to introduce new sounds or music. Learning materials will need to be replenished frequently as you run out of materials.<\/span><\/p>\nCleaning supplies are also a vital part of every daycare facility. It\u2019s important for you to have the right cleaning supplies to keep the germs and sickness away from your facility. We recommend investing in a good multi-purpose cleaner, disinfecting wipes, cloths, bathroom cleaner and large amounts of hand soap.
\n<\/span><\/p>\n<\/h3>\n<\/span>Step 11: Create a Client Contract<\/span><\/span><\/h3>\nLike business insurance, client contracts act as a form of protection for your business. Well written contracts avoid any confusion between you and your clients. Each party will know the details about the services provided and will know what to expect.<\/span><\/p>\nWhen you are preparing your contracts, we recommend writing out exactly what services the parents can expect to be provided. Will you be providing snacks or meals? Is there a certain amount of exercise the children will get every day? Will the children be taking naps at certain times every day? Your contract should be clear and easy to understand.<\/span><\/p>\nAnother important factor to include in your client contract is your price rate or details regarding your package. Does your client need to pay for a certain amount of time upfront? Will each client be committing to a month of service or longer? By including the time frame in your contract, it will protect you if your client chooses to cancel early down the road.