People ask me all the time whether it’s a good idea to start a daycare business in these tough economic times. Truth is, this can be a GREAT time to start your new child care business…it just depends on your individual market, your financial position, and your mental attitude. Let’s talk more about each of these 3 success factors.
Why is your individual market important? Well, you have to know whether your neighborhood or city is in need of more child care providers, or whether there’s an unmet need that you can tap into, such as second-shift care, before & after care, bilingual care, or some other untapped “niche market.” If you fill a need that people have been searching for, you will do FINE in this economy, because you’ll have an instant clientele and maybe even a waiting list. On the other hand, if there is too much supply and not enough demand in your area for child care, you’ll be starting an uphill battle.
In any economy, it’s important to figure out how much money you’ll need to start your business, and make sure you have enough saved up, as well as some source of funds earmarked for an emergency. If you don’t have at least $3,000 to $5,000 saved, I would probably advise you to wait on your business start-up until you do. You can start a home-based daycare with as little as $1,000, but you’ll want to have a reserve in case it takes you longer than planned to build your clientele and have a full child care program.
The third thing you need is the right mindset. You will face challenges during the start-up phase of your daycare business, so you’ll want to make sure you’re clear on WHY you are going into this business, and be able to get in touch with your deep desire and passion to make it work.
If you’ve done your homework, you have some start-up funds saved, and you have the mindset, you’re going to succeed no matter how tough the economy gets. So what’s stopping you?