The Business of Child Care: March 2014

Monday, March 31, 2014

Starting a Child Care Business - Chapter 9 Licensing

Contact your state licensing department. Find out what the rules and regulations are with regard to opening a child care center. They will usually send you a packet with a licensing book and application form. Read through this book from cover to cover. Then read this book again taking notes and studying. This books is the Bible of child day care. You will want to know this book better than your licensing agent who comes to visit your center. You will probably need to take classes and training before getting a license to operate the child care business, so give yourself time. In some states you will be assigned a technical adviser who will be there to guide you through the process. They will usually give you a checklist of everything that needs to be completed initially. They will want to know about your business structure, building that you will be using and so on. More...

To purchase the book: A Practical Guide to Starting and Operating a Child Care Business, visit Networx LLC.

Sunday, March 30, 2014

Starting a Child Care Business - Chapter 7/8 Developing Your Team

It is extremely important that you develop a TEAM of masterminds to support you in your child care business. Two very important members of your team are your attorney or law firm and your accountant.

It is very important to seek legal advise whenever you intend to start a new business venture. Let them know what you are trying to accomplish and let them lead you legally into the right direction. Please read my previous post on Legal Service Membership.

Your accountant, along with your attorney, should be a major part of your team. Meet with your accounted as soon as you are done speaking with your attorney. Pay your accountant to sit down with you and discuss what your business goals are and they should be able to map out what your path should be. Accountants, like attorneys charge by the hour so make sure to have your questions written down ahead of time and take good notes. If you have to call them back later, they may charge you by the hour to review. When looking for a good accountant, make sure that they have other clients in your type of business and that they are familiar with all of the deductions that you are allowed to take. Read the post on Quickbooks University to find out how to save money on your accounting. More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, visit Networx LLC.

Saturday, March 29, 2014

Starting a Child Care Business - Chapter 6 Business Entity Structure

Decide if you want to go into business by yourself or with someone else. My advise is that you should be very careful when deciding to go into businesses with someone. If you really feel that this is the best option for you, make sure that you have your legal paperwork in place. Also, make sure that you and your partner or partners have the same business goals and philosophy.

There are several different types of business structures to consider, as described below.
Sole Proprietorships

A sole proprietorship is an unincorporated business that is owned by one individual, YOU! It is the easiest form of business structure to start and maintain. Without you, there is no business. All liabilities are your personal liabilities. You take all the risks of the business for all assets owned, whether used in the business or personally owned. You include the income and expenses of the business on your personal tax return. These days there is no reason why someone should go into business as a sole proprietorship. It is too risky and it is very simple to just start a partnership or corporation. More...

To purchase the book: A Practical Guide to Starting and Operating a Child Care Business, visit Networx LLC.

Friday, March 28, 2014

Legal Service - A Must Have for Business!

I continue to be baffled about business owners (both small and medium) who do not see the value in having an attorney and what's better a legal firm on your team... When you are in business for a good length of time, it is inevitable that you WILL have a legal situation to occur. It may be a serious situation or it may just be questions that you have, that when answered, will keep you from finding yourself or your business in a serious legal situation.

There is a company called Legal Shield that provides legal services for individuals and business owners. I have been using this service for over 5 years. I wish that I had known about the company 20 years ago when I first started my businesses. I would have saved thousands of dollars. Instead of paying $200-$400 per hour, I only pay $17 per month and I can call my attorney as much as I want to ask legal questions, have them look over legal documents and have them represent me in a legal matter, if needed.

If you would like more information about this service, watch this video and then call 1.800.844.9639

1.800.844.9639 ext. 4211.

T.Oliver M.Ed.
Networx LLC

Starting a Child Care Business - Chapter 5 Business Plan

A business plan is a personal and professional guide for your business. It shows where you are and where you hope to be in 3 - 5 years and how you plan to get there.

Here are the Elements of a Business Plan
1. Cover sheet
2. Statement of purpose

3. Table of contents

I. The Business
A. Description of business
B. Marketing
C. Competition
D. Operating procedures
E. Personnel
F. Business insurance

II. Financial Data
A. Loan applications
B. Capital equipment and supply list
C. Balance sheet
D. Breakeven analysis
E. Pro-forma income projections (profit & loss statements)
Three-year summary
Detail by month, first year
Detail by quarters, second and third years
Assumptions upon which projections were based
F. Pro-forma cash flow

III. Supporting Documents
Tax returns of principals for last three years Personal financial statement (all banks have these forms)
For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchiser

Copy of proposed lease or purchase agreement for building space
Copy of licenses and other legal documents
Copy of resumes of all principals
Copies of letters of intent from suppliers, etc.

There are many computer programs on the market that will guide you through the process of putting together your business plan. Check the internet or your office supply store. More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, visit Networx LLC.

Thursday, March 27, 2014

Starting a Child Care Business - Chapter 4 Develop a Mission (Mission Statement)

What do you hope to accomplish for your child care business? What are your dreams and goals for the business and for the children and families that you serve? My goal was to run a financially successful child care facility that would care for and educate children in a safe and structured environment.

Look within yourself and find out how you want to affect positive change in your area. What are the needs in your community and what abilities and talents do you possess that could enable you to meet those needs. More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, contact Networx LLC.

Wednesday, March 26, 2014

Starting a Child Care Business - Chapter 3 Developing a Program Philosophy

What is your basic philosophy (what you believe is important)?
ex. Children learn best through play.
ex. Children learn best when they feel love and acceptance.

Supporting documentation for your belief? (optional)
ex. In the 2005 study by the National Childhood Association, children were found to have learned best when……

What are your goals in reference to this philosophy? (Mission)
ex. Our goal is to make sure that every child in our center…
ex. We will have considered ourselves a success if 95% of the children in our center…..

What will be the method used to implement /support this belief?
ex. Children who participate in our program will ….
ex. Staff will undergo continuous training in …..

Learn more...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, contact Networx LLC

Tuesday, March 25, 2014

Starting a Child Care Business - Chapter 2 Market Research

Marketing plays a critical role in the success of any business venture.

A marketing plan is an important part of your child care business program. Marketing allows you to control your business. You decide what services or parts of services you will offer along with which ones will keep your child care full and add to your revenue. Your business needs will change from time to time and your marketing plan will change along with it. Marketing is also tax deductible.

Marketing does not have to be expensive, fancy, or overly time consuming but it must be done with regularity and careful thought. More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, contact Networx LLC

Monday, March 24, 2014

Starting a Child Care Business - Chapter 1 Getting Started

Before you seriously consider this business, make sure that you love children. While it is not always the case, most people start this business by actually working directly with the children. If you are planning to start big or purchasing a franchise, your contact with the children may be minimal. For most of us, we started out in this business as the teacher, the cook, the driver, the director and the administrator. So if you don’t really love working with children, other than your own, this business is probably not going to work for you. Even the money that you could potentially make will not be worth it.

Anytime you are considering a business venture, the first step is to think about what you love and follow your heart. It will be that much more rewarding. More..More...

To purchase the book: A Practical Guild to Starting and Operating a Child Care Business, visit Networx LLC.