Should I start a business in this bad economy?

[Brooke]

I'm considering starting my own in-home daycare and preschool in 2011. However, I'm fairly concerned about California's economic state, and how that will affect my business. My research tells me that business is down all over the U.S. I had originally believed that more mothers would be getting jobs and therefore need babysitters. This is somewhat true, except for the fact that most people can't find jobs, and more and more people can't afford daycare.

I read the other discussion about how everyone is dealing with the economic changes, and want to know what you all think.
I really want to start a family and raise my children at home, and this is the best way for me. However, if it's a doomed business right now- then I may have to keep my current job and wait to have kids (or send them to daycare).

What do you think?

[Candice Wise]

I think that you should talk with your local child Care Resource & Referrel most states or counties have them. You could also talk with other home child care providers in the area if you know of any. I have a home child care business in Indiana and well honestly I haven't had more then 4 kids since I have started, which is frustrating. However, I am single with no kids and well it kinda balance to what I would making working in a child care program. Except now i am responsible for beneifts and retirement, so you really need to think about that. However if you are married then this might not be a major concern.

If you are doing this to stay home with your own kids then this may be a possible solution for you, because child care is very expensive these days.

I don't think anyone can truly tell you if it's a good idea or not, because it is such a personal decision. Once you start it, you will find that you will be still wondering if it is a good idea. At least I didn't realize what it truly means to work from home (ISOLATION LOL).

So my best advice would be to go to the the introductory classes if offered by the state when interested in opening a home child care business. Look around and talk to others that is operating in the area, and start recruiting perspective familes now. Also don't by alot of stuff in the beginning, but neccesaties and that way the overhead won't be as much.

Hope this helps
God Speed in your endeavours

[Rosalind]

Once you start it will actually be to late to decide. I say call the State Lic Board or visit their website and see how many daycares are in your area. Call some of them and identify yourself and see if anyone would be willing to talk to you real quick. Visit those daycare websites and see what they offer and see if they might list their pricing and openings. Then see what you think. Can you offer something that the majority of the daycares around you are not able to offer. Is it something that people are willing and able to pay ? Just a thought :)

[Rosalind]

Hi. I run a daycare business in the inland empire. I have been in business for about 11 years. Everyone that I talk to right now from other home daycare providers to the state food program inspection person is saying that they are struggling to try to get enough enrollment. One of my good friends who also runs a home daycare is very very scared because she has not had more than 3 part timmers for the last couple of months. Speaking from the business/financial side of it...it sucks rt now. I have been at 11 kids all of last year and so far this year I am operating at full capacity. This is not the norm because people come and go and so does the money. This doesn't work out well because my husband and I run our daycare. Which means we are a one income household. Four weeks ago I was getting 2 or 3 calls per day. Last week and this week so far I have only gotten 3 calls total for over a week. I can not take anymore dayshift but I can take nights and weekends. Right now you are finding a lot of grandmothers or aunts taking care of the girls kids because they need the money and how the economy is the fact of a child being in a group enviroment and learning educational things are taking a back seat with a lot of parents. Over half of the children I have right now have been with me for over 2 or 4 years....before the economy got bad. The money can be great if you are full but things can quickly go downhill if you go down in capacity especially without proper notice from the parents. Hopefully this information will add to your pro's or con list for starting a daycare. P.S. you better be ready to bring your A game. Parents want the world but do not want to pay the price for that. Don't get me wrong I love what I do and love the little kids, but in reality over half of what I do and offer to the parents and kids would be considered free.

[Emmaline Edwards]

I think 2011 is to far away to worry about this right now wait till 2010 and see how things are then and make your decision.

[Kris Murray]

I firmly beleive that this does not have to be "doomed from the start" if you employ some key success strategies, such as:

- Research your market and offer a specialty or "niche" that no one else is offering. This could be 2nd shift care, bilingual, a particular religion focus, baby sign language, music / piano, field trips, organic/green, etc. Choose a niche that fits you and market the heck out of it.

- Use testimonials in all your marketing materials. If you're new and don't have clients yet, use personal references as testimonials, or employer testimonials. Include the full name and town of the person (with permission).

- Have a solid Parent Policy Handbook & Contract and use it to enforce your policies. This includes a 2-week notice when parents want to leave, paid upfront. This way you'll never get screwed over for fees. If you implement this from the moment you open your doors, you'll set the proper expectations from the beginning. Get your weekly fee the Friday before the week of care, so you'll have time to react and not have to care for the child if you don't have payment. Be caring but firm. You are a business owner, not just a babysitter. Command respect and you'll get it.

- Get licensed, so you can demonstrate high standards and be able to charge higher fees. Consider getting a special quality accreditation such as NAFCC-accredited. (National Assoc of Family Child Care). www.nafcc.org

Good luck, you can do it!!!

For more success strategies, articles, and free reports, go here:
How to start a daycare

All the best,
kris