| What does it take to be successful in child care? | | | | handle specific kinds of situations, and how you |
| Obviously, you should have a deep & | | | | run your business. For example, you should include |
| passionate desire to take care of children, a huge | | | | your vacation & sick day policies, how you |
| amount of patience, and the ability to juggle | | | | handle behavior issues & discipline, and how |
| several tasks at once (such as warming a bottle | | | | the children will be fed. |
| while helping toddlers with an art project). | | | | It's a good idea to require a signature page at the |
| It also helps if you have a separate space in your | | | | end of your policy handbook, where the parent |
| home, such as a finished basement, where you | | | | agrees that he or she has read the entire |
| can run your child care business. | | | | handbook and agrees to abide by the policies |
| But as if that isn't enough, there are many things | | | | you've laid out. |
| that a successful home daycare owner needs to | | | | You need to have both documents in writing. (If |
| be good at besides caring for children. Honestly, it | | | | you need actual examples that you can copy |
| can be quite daunting. | | | | & edit to fit your business, they are provided |
| Things like getting paid on time from parents, | | | | in my Daycare Success System...more about that |
| writing solid policies & contracts, marketing | | | | later). |
| your business to new potential clients, obtaining | | | | BIG MISTAKE #5: Not using the best ways to |
| the right insurance policy, understanding | | | | market your business to future customers. |
| record-keeping and how it affects your taxes, | | | | Let's face it, you may not be a marketing and |
| and overall, just getting started in a manner that | | | | advertising whiz, but you need easy and low-cost |
| will optimize success. | | | | ways to get the word out and bring in new |
| To help you get started more successfully, here | | | | customers. |
| are seven of the biggest, costliest mistakes | | | | We've all heard that the best advertising is |
| women make when starting their own | | | | word-of-mouth. That's after you've gotten |
| home-based child care business, and how to avoid | | | | started and your clients recommend you to their |
| them. | | | | friends and neighbors. |
| BIG MISTAKE #1: Not doing the proper research | | | | But what about when you first open your doors, |
| on the child care market in your town or city. | | | | and you have no proven track record? |
| This is a crucial step that many new child care | | | | Fortunately, there are lots of ways you can get |
| business owners miss, usually because they're not | | | | the word out about your new child care business, |
| sure how to go about it. Or they may think that | | | | and most of them won't cost you much money. |
| it's not really necessary to do the research, | | | | Here are 4 marketing ideas to get you started. |
| because they don't understand how it could | | | | Marketing Tip #1: Register with the Child Care |
| impact them. | | | | Resource and Referral (CCR&R) Office in |
| After all, it's just a small home-based business, | | | | Your Area. |
| right? Why do you need to do all that extra work | | | | This is the very first thing you should do to get |
| up-front? | | | | your name out there, and it should be done prior |
| The goal here is not to spend weeks or months | | | | to opening your doors. The website is located at: |
| completing some huge market research project | | | | Then enter your ZIP Code in the search field and |
| that you're not ever going to use. | | | | you will receive the contact information for your |
| I'm talking about spending a few hours over the | | | | nearest CCR&R office. You can also call |
| next few days, calling around (or maybe visiting | | | | them toll-free at (800) 424-2246. |
| some other child care businesses) and asking key | | | | As of December 2007, in order to be registered |
| questions. | | | | with most CCR&R's, you do not need to be |
| Let me give you an example of what I'm talking | | | | state-licensed or certified. However, they may |
| about. My neighbor Mary, who runs a child care | | | | have special requirements to be listed, based on |
| business in her home, discovered a couple things | | | | your state. |
| about our local market that helped her create a | | | | For example, in Ohio, they request that solo |
| more profitable business. The first thing was, our | | | | family daycare providers have a maximum of 6 |
| town has ½-day Kindergarten, not full-day. | | | | children at any time, and no more than 3 children |
| By talking to other Moms in our town, Mary found | | | | under the age of 2. If there is more than one |
| there was a need in our town for | | | | caregiver in the home/facility, the numbers can |
| "before-and-after care", that is someone who | | | | be higher. These rules vary by state, so be sure |
| could watch Kindergarteners & older kids | | | | to call your local CCR&R branch to confirm |
| before and after school. She structured her | | | | your rules. |
| daycare to fill this need. All she had to do was | | | | Once you register with your CCR&R, they |
| make sure the buses were able to pick up & | | | | will provide your contact information, along with |
| drop off these kids at her home, and she was | | | | any special information pertaining to your daycare, |
| able to start taking kids. | | | | to parents seeking child care....for free! |
| So what you want to uncover, when you do | | | | Marketing Tip #2: Contact All Elementary Schools |
| your upfront research, is a "pocket of unfulfilled | | | | on Your Bus Line and/or in Your Community. |
| need" in terms of child care. You don't need it to | | | | Most schools maintain a list of Childcare Providers, |
| be a huge pocket, but something unique about | | | | which they provide to parents upon request. Ask |
| your business that will bring you customers who | | | | to have your name and phone number added to |
| have that need. | | | | their Provider list. |
| Other examples of this are: | | | | Marketing Tip #3: Verbally Communicate to |
| - offering second or third shift care if you have | | | | Everyone You Know. |
| large companies in your town who employ people | | | | Tell everyone you know that you are providing |
| on evening or overnight shifts | | | | child care and ask them if they know anyone |
| - offering bilingual care or special languages, such | | | | who is seeking childcare in your area. Make an |
| as sign language for babies | | | | announcement at your church, and at all other |
| - offering special meals (such as organic or | | | | groups to which you belong. If you don't belong to |
| vegetarian) if you live in a town where that would | | | | any community groups, join some! You're an |
| be considered desirable (like Boulder, Colorado or a | | | | entrepreneur now, it's time to start networking! |
| similar college town) | | | | This may be your strongest source for enrolling |
| Again, you are asking key questions and trying to | | | | daycare children. Most parents prefer to leave |
| uncover an unfulfilled need in your town or city. | | | | their children with a provider that was |
| You can begin by calling your local Child Care | | | | recommended by a friend, neighbor, coworker or |
| Resource & Referral Agency (CCR&R), | | | | family member. |
| your local elementary schools, talking to neighbors | | | | Marketing Tip #4: Place Announcements or Small |
| and friends, and visiting other child care businesses | | | | Ads in Community Newsletters. |
| in your town. You can even call other home child | | | | Ask every organization you know and/or belong |
| care businesses and talk to these women about | | | | to such as a Church, Play Group, or Community |
| what they are seeing in the market. Usually, | | | | Group, if you can place an announcement in their |
| women in child care help each other out by | | | | Newsletter. |
| forming friendships and partnerships, so don't be | | | | If you know a community group, church, and/or |
| intimidated. | | | | business professional that mails out a newsletter, |
| By taking the time to do the research, you will | | | | ask them to advertise your business for the local |
| gain a huge advantage by understanding your | | | | residents on their database. In your |
| market and how you can be successful within | | | | advertisement, focus on the unique features of |
| that market. | | | | your business and the benefits that children and |
| BIG MISTAKE #2: Not getting the right liability | | | | parents will receive from being enrolled with you. |
| protection for you and your business. | | | | Remember, this is just the tip of the iceberg. |
| If you want to be able to sleep easy at night and | | | | When you learn these easy and inexpensive (or |
| not worry about getting sued, you'll need to be | | | | free) methods to bring in new leads, you'll have a |
| properly covered. You need the real scoop on | | | | full and profitable daycare center and you'll |
| what type of insurance to buy, and how much it | | | | establish an ongoing relationship with your |
| should cost, so you don't overpay. | | | | parent-clients that will have them raving about |
| Many new child care business owners make the | | | | you to their friends and family! |
| mistake of thinking that their homeowner's policy | | | | Now let's get back to the 7 Biggest Mistakes and |
| is enough to cover them if there's a problem. But | | | | how you can avoid them. |
| the truth is, that policy usually doesn't provide | | | | BIG MISTAKE #6: Not utilizing the tons of free |
| enough protection, nor the right kind of protection | | | | resources in your local area, including sources of |
| you need for special situations that a daycare | | | | grant money. |
| owner can face. | | | | Many new daycare or preschool owners don't |
| An example of this situation would be if your | | | | know about the local resources available to them, |
| house had a power outage, and you had to close | | | | and how to navigate the waters of state, |
| temporarily due to the loss of electricity. If you | | | | regional, and local government agencies. |
| had a business liability policy with coverage for | | | | With so many organizations and websites out |
| "business income interruption", you would be | | | | there, it can be really tough to figure out where |
| covered by your policy and you would still get | | | | to go and who to ask, if you don't know where |
| that income. | | | | to begin. |
| Likewise, if you were sued by a parent for some | | | | The best place to start is with your state. Every |
| situation, your policy would cover you in most | | | | state in the U.S. has an agency within their state |
| cases. | | | | government that sets the rules for family child |
| Surprisingly, a business liability policy for a home | | | | care providers. This agency is usually called |
| daycare is not that expensive, and is well worth | | | | something like the Department of Child & |
| the investment (in my opinion). These type of | | | | Family Services (DCFS), or the Department of |
| policies usually cost $30 to $40 per month. Is that | | | | Job & Family Services (DJFS) and they all |
| worth a good night's sleep? | | | | have websites. |
| BIG MISTAKE #3: Not charging the right fees. | | | | (If you are in Canada or another country, you |
| Do you know how to find out what other child | | | | probably have a similar office in your |
| care homes and centers are charging? Most new | | | | government). |
| daycare owners literally leave money on the table | | | | Simply go to your state's website (such as and |
| by not setting their rates properly. You'll get | | | | look for the appropriate department, or type |
| short-changed by charging too little, and if you | | | | "child care" in the search box. |
| charge too much, you won't get any clients! | | | | The website should contain phone numbers for |
| So how do you go about figuring out what to | | | | the Child Care contact person in your state. Call |
| charge? This is a similar process as doing the | | | | them on the phone and inquire about your state's |
| upfront research in your town...it's simply a matter | | | | rules and what they recommend for people who |
| of making some phone calls or visits to other child | | | | are just getting started in family child care. |
| care businesses and setting you prices | | | | Most counties also have a child care office that |
| appropriately. | | | | helps people at the county level. Ask your state |
| Many new family daycare owners charge the | | | | contact person how to find help for your specific |
| same weekly rate for each child, regardless of | | | | county. Then, contact your county rep and ask |
| the child's age. However, if you talk to centers in | | | | the following questions (these are also good |
| your town, most of them charge the highest rate | | | | questions to ask your state rep): |
| for infants, and the lowest rate for older kids | | | | - What do you need to know that's specific rules |
| (pre-K and older). Many parents are used to this | | | | or regulations for your county? |
| type of pricing structure. | | | | - What training are you required to take before |
| So depending on the ages of kids that you can | | | | you open your doors? |
| accept, if you charge a bit more for infants and | | | | - What kind of ongoing training / learning is |
| young toddlers, you may find that your income | | | | required? |
| will be a bit higher than a flat-rate for all ages. | | | | - Do they have any recommendations on |
| You'll have to look at your individual scenario and | | | | insurance providers for child care owners in your |
| choose what's best for you. | | | | county? |
| For example, let's say that according to your | | | | - What resources do they have to help you get |
| state, and the ages of your own children, you can | | | | started? |
| accept 1 infant, 3 young toddlers (15-24 months), | | | | - Do they know about any sources for grants or |
| and 2 older toddlers (3-4 year olds). If you charge | | | | low-interest start-up loans? |
| $120 per week as a flat rate, you would have a | | | | - Are there local or county support groups that |
| weekly income of $720. | | | | meet to discuss child care issues? |
| If, however, you charged a bit more for infants | | | | There may be other questions you'll think of, too. |
| ($135/week), and young toddlers ($125/week) | | | | Don't be intimidated. You have the right to get |
| and less for older toddlers ($115/week), your | | | | the best information to get started, and you owe |
| weekly income with this scenario would be $740. | | | | it to yourself to start out as successfully and as |
| That amounts to an extra $80 per month, or an | | | | knowledgably as possible. |
| extra $1,040 per year. | | | | BIG MISTAKE #7: Not getting licensed or certified |
| Small adjustments like these in your price, if it | | | | by your state. |
| makes sense based on your local area, can make | | | | Getting licensed or certified with your state can |
| a difference in your take-home profits at the end | | | | be a bit of work, but it's probably easier than you |
| of the day. | | | | think. Usually, to get licensed you are required to |
| BIG MISTAKE #4: Not covering yourself with a | | | | take a certain amount of training (often very |
| proper daycare policy handbook and contract. | | | | low-cost or even free) and your home will be |
| Okay, this is a really big one. You need to have a | | | | inspected once or twice a year by a state |
| well-written contract for your parents, and you | | | | inspector to ensure that guidelines are being met. |
| need a comprehensive policy handbook. If you | | | | There are lots of reasons why you should |
| use your contract and policy handbook properly, | | | | consider it...the top reason being that you can |
| you can literally save yourself thousands of dollars | | | | charge higher rates! |
| of lost income (and countless hours of | | | | Here are some of the other benefits you will gain |
| headaches!). | | | | by being licensed or certified with your state: |
| So what's the difference between a contract and | | | | - You will be proud to know you are providing the |
| a policy? | | | | highest quality of care (and you can communicate |
| A contract is a binding legal agreement between | | | | this to others). |
| two people. If you agree to care for a child and | | | | - Potential parents will be more likely to choose |
| the child's parent agrees to pay you for that care, | | | | you, so you won't have to spend as much on |
| you've made a verbal contract. If you put the | | | | marketing and advertising |
| contract in writing, it becomes a written contract. | | | | - Schools and other businesses will be more likely |
| There are 5 key elements of a child care | | | | to recommend you. |
| contract: the names of the parties, the hours of | | | | - You may be eligible for grants or low-interest |
| operation, the termination procedure (that is, how | | | | loans to expand your daycare or improve it with |
| either party may terminate the agreement), | | | | a new outdoor play area, etc. |
| terms of payment (including rates, due dates, and | | | | - You will stand out from the crowd as a superior |
| extra fees), and the signatures of the parties. Be | | | | business. |
| specific and clear with your wording. | | | | You will have the highest chance for success if |
| A policy handbook is longer and more detailed | | | | you strive to be the best at what you do. |
| than a contract. It should contain all the rules that | | | | Good luck! |
| state how you will care for the children, how you'll | | | | |