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3 Things No One Tells You About Starting a Childcare Business

In 2020 alone, there were 1,620,029 children enrolled in state pre-K programs in the United States.

Starting a daycare business or franchise is profitable, emotionally rewarding, and sustainable – the need for committed childcare entrepreneurs has never been greater.  

As of 2021, there were 856,238 childcare centers in the United States. The growing popularity of childcare centers comes from the demand. Parents will always need a form of care for their kids. Plus, there’s a necessity, especially beyond COVID-19, to socialize children in an environment that fosters development. 

Read on to learn 3 secret steps that no one tells you when it comes to starting a childcare business.

3 Hidden Tips to Building a Successful Daycare from the Get-Go

1) Get Familiar with Daycare Licensing Requirements 

It’s good to keep in mind that all states have different licensing requirements. Generally, you’ll follow the steps below. 

  1. Attend and complete a pre-application course (you’ll receive a certificate at the end – remember to save it). 

  2. Submit your online licensing application and fees. The fee depends on your center capacity or the number of children you plan to enroll

  3. Complete inspections 

  4. Submit payment 

  5. Submit background checks (this may also be an additional charge) 

Check out the guide for more pointers on licensing requirements. 

2) Choose Your Insurance and Liability

When it comes to insurance and liability, there are different ways to keep your center protected. These are the four main types of insurance and liability to ensure your center is covered:

  • Provide general liability – stay covered if your center has any property damage or injuries to third parties (children). 
  • Abuse coverage protects your childcare business or franchise. If employees turn out to be abusive towards children, this policy covers defense costs and defends you against financial losses. 
  • Professional liability insurance provides coverage for your business and workers if there is a neglect claim. 
  • Hired and non-owned auto liability ensures everyone is covered if there is a pick-up/drop-off vehicle accident. 

3) Find the Right Vendors

Choosing the right suppliers for your business is essential. If your vendors aren’t reliable or don’t deliver quality products, your new center will struggle to attract families. As a childcare provider, you will likely need the following vendors at one point or another: 

  • Electrician 
  • Plumber 
  • Food and Beverage Supplier 
  • Educational Materials Supplier 
  • Substitute Staffing Provider 
  • Accountant 
  • Childcare Licensing Consultant 
  • Cleaning & Maintenance 
  • Childcare Management System (CMS) 
  • Customer Relationship Management (CRM) Software 
  • Digital Payments Provider 
  • Online Forms Software

Why It’s Essential to Find the Right Software to Build and Manage Your Daycare

Multiple subscription costs can really add up. 

The average multi-site childcare business has six different subscriptions. Some of these include services in lead generation, lead capture, email marketing, text messaging, digital registration, and more. All those solutions, although extremely important for the success of your business, begin to add up. And when you use a different provider for each, they can cost you several thousand dollars every month. 

Keeping track of different billing cycles is no fun for anyone.  

After signing a contract for a paid subscription at home, you may opt into an automatic payment plan and never even notice those $8.99 Netflix, $12.99 Amazon Prime, or $6.99 Hulu charges leaving your checking account.   

However, when a $1,200 payment comes out of your organization's bank account, someone is bound to notice. Managing monthly invoices and payments is a delicate dance. Eradicate the need to keep an excel of all your services and subscriptions by using just one solution for as many of your business needs as possible.  

Customer Service can be hard to track down.  

New research finds that 62% of companies don’t respond to customer service emails. At LineLeader by ChildcareCRM, we find that both shocking and sad...   

Don’t be left wondering when Company A and B are going to get back to you about your problem while being placed on hold with Company C, all because Company D somehow messed up your software integration.   

Having one provider for several software solutions means you only have to contact one Customer Service team and keep one email address or phone number on file in case you have a question. 

Streamline Your Business Development with One Provider Who Can Do It All

Establishing a business can feel taxing. LineLeader offers software solutions that can help you get rid of all those other pesky service providers, so you can easily build and oversee the opening of your childcare business. For more information on building your daycare business and brand - see the podcast below.

Take advantage of lead capture, lead management, email marketing, text messaging, automated task management, digital tour scheduling, online multi-language registration, digital registration payments, and even attracting and hiring new employees with just one monthly payment and one amazing customer support team.

Check out the guide to drive your passion forward -- today.

Check Out the Guide

Meet The Author

Asyah Jiron is a marketing intern with professional experience in field marketing, content, and advertising. She attends the University of North Texas and is pursuing a Bachelor of Arts in Communication Studies with a Marketing concentration. Asyah is passionate about growing her marketing knowledge and always tackles any new challenge thrown her way.

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