1. Create a Financial Plan

Daycares require a solid financial foundation. You need enough revenue to cover your overhead costs, including paying for supplies, rent, utilities and paychecks. Before you decide to get into the business, be sure you know how much it costs to run one and stay afloat. 

If you're not a financial whiz, that's okay. Set up a time to discuss your interest with a financial advisor who can review the numbers with you and offer suggestions on an appropriate budget. You can decide how much you need to start it up and how much you require each month to do well.

Also, ask about the best ways to collect funds from your patrons, such as direct deposit and an effective online charging system. You want the financial payments to be easy for you and your customers.

2. Get a Degree in Education (or Find Someone With One)

Daycares are educational institutions, not just a place for babysitting. Parents want to know that their kids are getting the appropriate lessons and are having fun. Therefore, you should have an awareness of early childhood education. If you don't, take some classes or team up with someone who does have that expertise. You could be the business end of the deal while your partner handles the curriculum selection and teacher interviews.

3. Understand Tax Laws

You are operating a school and a business. You need to pay taxes, but parents might ask to deduct the cost on their yearly filing. Therefore, learn more about tax laws and codes. What do you need to declare? What is your tax id number? How are you going to provide information to the parents when they ask?

4. Determine Your Daycare's Educational Philosophy

There are many educational philosophies out there, especially for little ones. Do you want something scripted for teachers to follow daily? Do you believe in something with more freedom? Are you a hands-on person, or do you believe in old-school writing activities? Sift through and research the different options, picking out something centered around your educational beliefs.

5. Develop Your Company's Expectations and Policies

Be clear and concise about your policies and rules. Create a written document for parents that discusses how you plan to handle discipline issues and what parents can do on their side to help. For instance, what happens if you have a child biting others? Although common for toddlers, this practice can hurt and injure other kids and make them feel bad. State how you plan to approach the problem, work with the biting child, and protect others from injury. 

In addition, decide on your attendance policy, payment plan and general daily expectations for staff and families. Have it all in writing so that parents may refer to it when needed. Also, all families should sign an agreement when they begin at your institution.

6. Create a Strong Advertising Campaign

A new daycare certainly means availability, but it doesn't have a reputation to draw people inside. Therefore, you should focus on marketing your school to local neighborhoods. Promote your mission and vision, highlighting how your daycare delivers something these parents need or desire.

7. Recruit Teachers Who Share Your Dream

Hire professionals whose vision matches yours. When everyone is on the same wavelength, you could avoid issues down the road and minimize turnover. 

If you're ready to spend the day with little kids, hop to it. Learn about the cost of the operation, select a curriculum and find others with a similar passion. Then, recruit parents in the area. Be clear about your expectations and have a plan for collecting payment.

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