One of the questions I get asked the most by people looking to start a childcare business is: “How do I find money for my childcare business start up?!” And it’s a great question! Not all of us have money in the bank to get started, right!? So I wanted to share with you some ideas about how to get those dollars flowing!
I’m NOT a financial pro, so these are tools I’ve used myself or my coachees have tried out.
The childcare industry brings in BILLIONS of dollars to the economy every year. It’s pretty much recession proof too, because who doesn’t need childcare?! Which means that there’s cash waiting to invest in new childcare businesses…
Read on to find out how you can get your hands on the financial support you need to finally start your childcare business and start living the life you love!
First thing first…
I need to ask you a question: how are you planning on setting up?
Do you actually need to set up a center? Or could you begin in your home? Are you setting up as a franchise? Will you need a center?
A little bit of money and a lot of perseverance is how you grow! I started as a home daycare because I didn’t have thousands of dollars to hire a space or invest in a franchise. And that is a great route into the industry. I’ve been able to grow and thrive. And so can you.
Should you start small?
Don’t stress about not having hundreds or thousands of dollars. You do not NEED huge amounts of cash to start your childcare business. Many of the owners I know started out with a simple daycare run from their front room! And once they became more established, they were able to find investors or access money to grow.
So I want you to think really carefully about how you start out. Don’t put off starting something you know you’ll love and feel passionate about just because you’re not cash-rich!
Grants are great because you don’t usually have to pay the money back. At the moment, there seems to be grant money in most states to support childcare businesses to stay open and grow. These tend to be for businesses that are already established. However, there’s no harm in investigating! Perhaps your local government agencies have something available for start up childcare businesses. Even if they have nothing to give you, they can be great for sign-posting you to other grants.
Look at grants outside the childcare business arena – small business grants, community grants… There are lots of options and sometimes it’s smaller amounts that you can put towards training or furniture.
Not always something people are keen on (I know I stayed away!), but loans can be a good way to getting your foot in the door. Go to your own bank and open up a conversation with your finance experts there. They might be able to help you set up and they can point you in the right direction for grants and further support.
Do not go to a loan shark or take out a loan where the interest rates are sky-high! A reputable and responsible bank or financer will ensure that your repayments are affordable and sensible. A loan could be the leg up that you’re looking for.
Perhaps you might want to look at getting a second job or doing a side hustle to gather the money you need to get started. This isn’t an option for everyone, but working a few extra shifts means being able to save cash. You can then put this directly into savings for your new business venture.
If you do have the time to spend 6 months working a second job or side hustle, then it’s a great way to plan for saving. Set yourself that deadline so you don’t get stuck and not start your childcare business.
Find a partner
If you have someone who wants to partner up with you – perhaps they’d rather be in the background while you’re doing the front of house! A great partnership can do amazing things for a business. Sometimes the partner just wants to invest, and that’s cool. But they might want to be IN the business, so you’ve got to be clear about roles. Playing on each of your strengths can be hugely beneficial.
Whatever you do on this front, make sure you’ve got it all in writing!! A partnership break up can be ugly if you don’t have things laid out officially from the get-go!
So if you’re wondering how to find the money for your childcare business start up, save some of these ideas and then dive into the video below for more!
Watch my YouTube video now to answer the biggest question I get asked about the childcare business: ”How do you find money to start one”?
Join me inside as we tackle some ideas to get those dollars you need to finally get started!
If you’ve loved this post, please leave me a comment below, or share the lessons you’ve learned so far!
I’d love for you to join the community over on Facebook, where you can hang out with like-minded and aspirational daycare owners. Dive in for more tips on how to make your childcare business the success it deserves to be! Or if you prefer Instagram, we share ideas and tips there too. We’re an army of childcare professionals who are sharing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup!
If you asked me what’s one thing I wish I’d had when I was setting up as a childcare business, it’d be a simple step-by-step guide. A guide of the things I needed to do to ensure my day care was legal, marketable and (most importantly!) AWESOME. Because when I set up 15 years ago, I had to make it up as I was going along.
So I spent years learning the ropes and figuring it out solo! It dawned on me that maybe I could create a road map for new childcare business owners. Read on to find out more!
Wishing on a star
At the time I set up, I had no such thing. I was absolutely winging it. I remember wishing that someone – a local mentor, a kind stranger, God…whoever! – might give me a hand figuring it all out. Setting up as a childcare business owner was something I wanted and needed to do, but a guide would’ve been super helpful!
So instead of you having to do the same thing, I set up Childcare Ninjas! I want to support you on your journey. My mission is to help Childcare Ninjas (like you!) build a 6-figure business you love, so you can live life on YOUR terms. No sitting, waiting, wishing for you!
Congratulations on the best decision of your life!
A couple of weeks ago I was talking to a friend about pivotal moments in our lives. Hers was pretty huge but tainted with regret. Mine, however, was full of positivity. Can you guess what it was, Ninja? That’s right! Mine was taking the leap to build my own day care business. Doing that gave me the security I so badly needed, but also the freedom I craved. I was then able to raise my babies AND be of service in my community, in a job that I adore!
So huge congratulations on making the decision to start your own childcare business! This is honestly going to be the best business decision you’ll ever make. Welcome to the magical world of autonomy and being your own boss! This is a role that will give you all the creativity, flexibility and financial security you’ve been yearning for!
Reminder: this is not an easy option
Now, before you let anyone tell you otherwise, setting up as a childcare business is not an easy ride. It is damned hard work in the beginning. The list of things to do can seem endless and the hoops you’ve got to jump through feel frustrating. There’s no getting round the fact that it isn’t all sunshine and rainbows.
However, it doesn’t have to be a miserable journey! I am here to make it SIMPLE for you, and I am here to SUPPORT you. Truth being told, if you want to run a successful childcare business, you need the right information from someone that has already walked that road. Oh hello! That’d be me!
I want to help you create a plan of action and get crystal clear on why you’re setting up as a childcare business. Because once you’ve nailed your why, everything else feels a little less draining! Like Jiminy Cricket, let me be your guide…
Knowing WHY you’re setting up as a childcare business
It might sound a little silly, but your why really does matter. And here’s a clue: it can’t be “to make millions”. Why? Because – although that’s nice and all – when things go wrong, as they no doubt will somewhere along the way, that isn’t a strong enough reason to persevere.
Your why is key to giving you strength to keep going. I love this TED talk by Stacey Abrams, where she explains that without having a clear reason that drives you, “the ‘do’ is meaningless”. And I know things might get hard if others stop believing in you and they might even try to tell you to stop chasing your dreams. Going back to your why time and time again will motivate you and help you block out the naysayers!
Practicalities are boring but necessary!
There’s so much to think about when you’re setting up as a childcare business. Where will you run the business? From home or another location? Who’s your target market? Will you have a team to support you? What are the legal things you need to know?! So many questions. And by all means, you can Google each one of them every time a question pops up.
And so much of it is dull, right? When can you just look after the kids and help them grow into awesome human beings?! To get to the fun bit, there’s a few necessary bridges to cross first: licensing and getting registered, setting up systems, finding your families…
But having a practical plan to figure all of this out would be helpful wouldn’t it? I know I wish I’d been given some sort of guide instead of living on a wing and prayer!
Step-by-step guide to getting started
When I first decided to offer childcare in my home around my job as an admin for a small church, I hadn’t a clue what I was doing. I knew I wanted to have the chance to spend time with my daughters and earn a living at the same time.
When I sat down to think of what my Ninjas truly need to set up their businesses, I realised that they need what I never had! So I created a guide to give you what you need to get started. It’s exactly what I wish someone had given me all those years ago.
This guide explains how to start your own childcare, from choosing your logo and choosing a location, to licensing and registration, choosing our team, and managing your day-to-day operations. It’s all broken down for you, and all in one place! No more Googling every. Darned. Thing. It’s insanely simple!
We’re an army of childcare professionals who are sharing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup! Interested in becoming more involved in the community and to grow your business? Join us for more tips on how to make your childcare business the success it deserves to be! Or if you prefer Instagram, we share ideas and tips there too!
This week in Childcare Ninjas, we’re shining a light on finance again. It’s a subject that we’re not going to shy away from, because it’s vital that we feel confident discussing finances! And I want to support you as a Childcare Ninja in this area as much as any other. If you’re new to the industry, you’ll want to read this blog post!
When it comes to initially setting up your childcare business, you might not be ready to go all in just yet. You might need to spend some time raising funds so you can open up the daycare center of your dreams.
What I want to emphasize here is that you shouldn’t be letting finances get in your way. It might take you a little longer to reach your goals, but you CAN get there. I have seen financials hold so many women back from starting a business and I don’t want that to happen to you.
So, in this blog I’m going to share a few ideas to get your creative juices flowing. I’m going to get you flexing your resourcefulness muscles!
What are your needs?
First things first, you’ve got to take a look at how much you need to actually get set up. This might seem minimal to begin with, but once you take into account the rent, the health and safety aspects, the registration, the licences, the insurance…it all adds up. So be honest with yourself here. Keep it real: are you currently in a position to set up immediately?
Maybe you’re beginning in your home, which will reduce the cost in the short term. Even so, there’s the equipment you’ll need, the additional costs of utilities (amazing how those little kids use up all that extra electricity and water!)…
But I’m not saying this to get you to stop! Far from it! I’m asking you to take a good long look at your needs in a financial sense, because I want you to succeed! I want you to know exactly what you’ve got to have in place before you can launch into your childcare business. And if you’ve got any questions or don’t know where to start, please drop me an email! After 14 years in the business, I’m happy to help!
So how can you raise the money to get started?
We’ve established that you’re likely to need more cash coming in before you can really dive deep into your childcare ownership dreams, so how are you going to do this exactly?
Honestly? This comes down to how much money you have and how much time. Finances play a part here too because there are some income streams that require a little investment before you can get going and others that you can just jump straight into with out much thought!
Become a representative
Not in the House (one day, maybe…!), I’m talking about buying into a scheme where you’re the representative of a brand. These roles offer a range of opportunities, from flexible working and franchises, to direct selling and party planning.
There are a number of these that can be lucrative for people who have time and a small amount for buying the products for demonstrations. Beauty companies like Avon, Mary Kay or Arbonne have a fairly low investment requirement to become a representative.
So those are options for you if you have a little cash to reap rewards with. However, I’ve got a few more ideas if you don’t!
Everyone has something that everyone else needs!
This is what I tell the women I coach. They’ll often say, “But Nyckie, I haven’t got anything to offer. How on earth can I have a side hustle going on?” And I am quick to remind them that they certainly do have things to offer. Whether that’s a resource that their community is lacking (like reliable transport) or a skill they can see a need for (gardening!) each and every one of us has something that their neighborhood needs.
Take an audit of your resources
Take a look around your home and figure out if you have resources at your fingertips that could earn you some of the funds you need for your business.
Perhaps you’ve got a car and are happy to be driving to make some side hustle money. You could do some Uber driving in the evenings when your partner gets in from work. Or perhaps if you know there’s people in your community who’d rather pay you than Uber to drive them to and from appointments, then get driving! Drum up interest and bring in those dollars!
Have you got furniture that could go to a new home, or a ton of dresses sat unworn in your wardrobe? Kids finished playing their consoles or moved on to the next craze? Why not have a yard sale?
Start something from scratch
If you’ve got skills that you could utilize, then why not put them up on Fiverr or Upwork? If you’ve got admin capabilities or can write, or maybe you’re handy with a camera, then put up a page and watch the requests come rolling in. When you’ve got skills other people need, you’re valuable and it will help your finances!
Perhaps you can offer tutoring for local families, or teach piano? Know how to grow vegetables? Maybe you’re a whizz with a chainsaw? Think about the dormant skills you could put to good use!
Make the most of what you’ve got!
I’ve mentioned skills above, but it really is about making the most of what you’ve got and flying with it! Take a look around your local community and look at what’s missing. What are people moaning about? Have you got friends with elderly parents who need healthy meals but can’t cook anymore? Could you cook them nutritious food and charge for it? You could start a small take away service. (Don’t go crazy here! It’s a childcare business we’re aiming for, right?! Not a restaurant!)
Choosing a way of bringing in some extra money means you can rest easy knowing that you’ll raise the dollars you need. Thinking about your finances and making some cash in a side hustle is a sensible move to avoiding stress.
I’d love to help you more with ideas that’ll solve the gaps in your finances, and I’m so excited to see you achieve success, so why not head here and you can download my FREE Side Hustle Checklist!
If you’d like to see more like this and chat with other childcare business owners, I wonder whether you’d like to head over here: Childcare Ninja Facebook group!Join us for more tips – not just on finances! – on how to make your childcare business the success it deserves to be!
While you’re here, are you in the Childcare Ninja membership yet? We’re an army of childcare professionals who are sharing ninja-sharp skills to transform our businesses into childcare empires! This is Childcare Ownership all Grownup! It’s full of exclusive resources and support to help you grow your Childcare Business.