If you love children and are interested in caring for them while making some money at the same time, starting a childcare business could be a great option for you. However, starting an actual childcare business isn’t as easy as babysitting for your friends or neighbors occasionally. So to help ensure that you’re up for the task, here are three things you should consider before starting a childcare business.
Figure Out Your Budget And Financial Matters First
Unless you’re doing this out of the kindness of your heart, one of the very first things you’ll want to figure out is if your plan for starting a childcare business is financially feasible.
To do this, a contributor to Small Business Trends, recommends that you put together a budget model for what you anticipate your expenses being compared to how much money you think you’ll be bringing in from your work. You’ll need to make sure you include things like bills, administrative costs, fees, utilities, and potential rent and salaries if you’re thinking about starting a larger business. You’ll also need to put a plan in place for having parents pay you for your services and ensuring that you get paid the correct amount and on time each month, as you don’t want to have to be trying to figure out this part of your business when you’re counting on that money coming in.
Should You Become Licensed?
If you’re thinking that your childcare business will be small and that you’ll mainly be caring for children that you already have some kind of connection to, be it knowing their parents from the community or whatnot, then getting licensed may not be a main priority of yours.
On the other hand, Alexis Writing, a contributor to Chron Small Business, shares that states have their own guidelines for what type of childcare facilities need to be licensed and registered and what that all entails. So to ensure that you’re legally doing all that you should be for your business to function, make sure you check the laws of your area regarding licensing.
Get The Right Insurance
When you start any kind of business, you open yourself up to risk. Because of this, it’s vital that you have the right insurance in place to protect you and the kids you care for.
Generally, the U.S. Small Business Administration shares that childcare businesses should have liability insurance and accident insurance at the very least. By getting the right coverage and type of insurance for the childcare business you’ll be running, you’ll have protection in case the unthinkable happens.
If you’ve been wanting to start your own childcare business and think that now is the time to do it, consider using the tips mentioned above to help you get off on the right foot.