Child care providers have increasing challenges with demands from both kids and parents. That doesn’t even get into the challenge of running a business, but you need both to run a successful daycare center. In this article, we plan on digging into the tips you can use to ensure you understand how to run a daycare center that meets your high standards.
How to Start a Daycare Business
Before you start your first day running a child care center, there are some important considerations to make sure you get off on the right foot. For example, you should think about whether you want to start your childcare business from the ground up or take advantage of an existing business. If you choose the latter, you could either purchase an established daycare center or become a franchisee of a chain.
If you find a daycare owner who is looking to sell his or her business, there are some advantages to buying it. You’ll be taking over a childcare business with an established reputation as well as a built-in customer base. The downside to this approach is that parents already will have expectations that you will need to live up to, and you may not be able to run the daycare entirely the way you want to as a result. If you choose to join a franchised childcare center business, you’ll have support from the parent company. It most likely will provide you with training materials, marketing guidance and other elements that can help you hit the ground running without as much difficulty. However, being a franchisee also means you will have to work within the constraints of the parent company’s rules and guidelines.
If you want to have the most freedom and autonomy for your family child care center, starting from the ground up may be the way to go. If you decide to go this route, one of the most important decisions to make is the business structure you choose. There are many options out there, but in most cases daycare providers choose to set up their business as a Limited Liability Company (LLC). As an LLC, your child care business can keep its assets separate from your personal assets. This may be important in case of a bankruptcy or lawsuit, as it means your home and other personal belongings will be protected. It is worth noting, however, that if you’re running a home daycare, being an LLC does not shield any part of your home you use for the business.
With basic questions about how you’ll enter the business and your legal structure out of the way, it’s time to move on to the bigger-picture concerns pertaining to how to run a successful daycare. First and foremost is how you will set your daycare business apart from the competition. With so many options available to parents for child care and early childhood education, you need to establish an identity, so you’ll stand out from the rest of the crowd.
Creating a Mission Statement
Creating a daycare mission statement is a good first step, because it provides you, your staff and parents with a clear idea of who you are and what your goals are for providing exceptional child care. You also should be prepared to establish a strong communication policy, providing families with detailed summaries of their children’s activities and photos to put their minds at ease.
This is where having the right set of tools at your disposal can make a huge difference. An all-in-one day care management platform such as the one provided by TUIO streamlines just about every interaction your childcare center has with the families you serve. This includes billing, managing child information and communication with parents.
Complying With Child Care Licensing and Policy Regulations
Daycare providers need to be aware of their obligations when it comes to obtaining the proper licenses and complying with all regulations. If you’re unaware of what your requirements are, best place to begin is your state’s Department of Children and Family Services (DCFS). Your childcare business will need to be licensed by the state, and there will be an application process before you can receive your authorization. The requirements may vary based on where you live, but you can expect to undergo a background check and undergo CPR and first aid training. You also should be aware that there will be fees associated with the licensing process for child care programs. Learn more here about your state’s child care licensing regulations.
Tips for a Successful Daycare Business
Once you get your new childcare center up and running and establish your business plan, it’s time to get into the nuts and bolts of your day-to-day operations. Here are 10 tips you should follow if you want to be the most successful daycare provider you can be:
#1: Have Clear Policies and Follow Them
Running successful daycares starts with having a clear set of policies. These policies need to apply to all parents and children involved. By remaining consistent, your families will recognize and respect those requirements.
The system will also make it easier for you to handle complicated matters. A profitable business has a handbook that all employees will reference on standard procedure. That extends out to any business.
#2: Don’t Take Your Friends and Family’s Kids
Child care centers, and their staff, feel like a natural fit when including people you know. It feels like a comfortable fit, and both sides get their problems solved, right?
Wrong.
Friends and family may expect special treatment regarding your policies. Regardless of your best efforts, the lines are blurred often between daycare centers and watching someone’s kids. Avoid this situation entirely and keep your business professional.
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#3: Always Ask For Parental Feedback
Long-term success for daycare providers is determined heavily by word-of-mouth advertising. The most successful home daycare centers have a myriad of reviews available on Google. The public reviews increase your exposure to potential clients.
This feedback focus also highlights the importance of claiming your business on sites like Google, Yelp, and other community information systems. If these available systems don’t recognize your daycare as a business, you may miss out on that feedback boosting your business.
#4: Have A Social Media Presence
When you are trying to look up local businesses’ information, what is one of the most common places you stop? If your answer is social media, this is a sign that you need to follow suit. For a smaller provider, Facebook is typically good enough to reach out to your clients.
Larger organizations may be able to expand their social media presence. You may wish to hire a social media manager to handle all of your platforms in those cases.
#5: Add Value With Unique Services
Look around at your fellow daycare providers to see what they offer. Various childcare centers may have their unique take on the field. Many of them incorporate them into curriculum plans, which is something you should consider.
Bounce ideas off of online communities to see what they have. New ideas come out of this field every day. Always be asking yourself how you can improve your offering.
#6: Have A Properly Trained Staff Who Believes In Your Vision
Child care businesses may be encouraged to save money by hiring a staff that lacks childcare experience. However, you run the risk of having educational gaps and safety exposures in this case. Be sure that your team has some knowledge or you have an excellent staff training program. Experience is essential when you are handling large quantities of children.
You also want to hire childcare professionals who believe in the vision behind your daycare. Their passion for your ideal daycare scenario will inspire them to come to work every day. Their focus on the inspiration of your business will give them the same level of passion you have.
#7: Don’t Forget To Take A Vacation
Business owners who handle their own time typically forget that managing daycares can be an exhausting experience. If you count yourselves among this underappreciated populace, don’t forget to take some time for yourself and your staff. A fresh mind allows you to be more engaged so that your time with children can be beneficial.
#8: Simplify The Business Side Of Things
Many times the business side of daycare can prevent owners from properly focusing. Making a business plan is complicated in other environments that don’t involve loud kids. Imagine trying to discuss business strategy while having a full daycare center.
It also helps to have a consistent payment system for all people. This system prevents you from having to track a combination of cash, checks, and whatever other payment methods parents might have. Many standardized systems exist to help daycare centers track information easily.
#9: Try To Be Flexible (Within Reason)
Your parents will appreciate flexibility in their daycares, as some situations may prevent them from arriving on time. If you stay flexible, you send a message to your parents that you are willing to work with this. This willingness to assist also involves catering to your kids’ unique needs, which may include dietary restrictions or mental health concerns.
Be sure not to stretch yourself too thin. If your parent is regularly late picking up their kids, you need to be upfront with their respect for your time. If they are outside of your available hours and aren’t willing to expand your ours, there is no shame in saying that it is a bad fit.
#10: Charge Upfront
While we hate to see it, there is always a chance for flaky parents who won’t pay you. If they can get a month of free daycare out of you, it is straightforward for them to vanish. You can take them to small claims court in this case, but you could be spending that time on other aspects of your business.
Daycares can be incredibly busy, and you don’t need to waste time chasing after this. To avoid this situation altogether, charge your clients upfront.
Continue Improving Your Child Care Center
When it comes to providing the highest-quality daycare services, there’s no finish line. There are always opportunities for improvement as a child care provider, and as a small business owner you need to secure every advantage you can against your competitors. The most important tips to remember in this regard include paying attention to what other daycare centers in your area are doing. It’s also crucial to solicit feedback from your families, checking in with them to find out what you’re doing right as well as what might need adjustment.
Final Thoughts
A successful home daycare places the needs of child care at the center of their business. With a focus on innovation and simplifying the business side of things, your daycare will see a high potential for long-term success.
Your clients are people too, so don’t forget that they put a lot of trust in you when they leave their kids behind. Creating the best child care experience, a solid vision, and great staff will help you meet these goals.