Marnie Forestieri - The Basics of Starting a Child-Care Business

Contents

Copyright

2020 Marnie Forestieri

Published by Gryphon House, Inc.
P. O. Box 10, Lewisville, NC 27023
800.638.0928; 877.638.7576 [fax]

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Cover images used under license from Shutterstock.com and courtesy of the author.

Library of Congress Cataloging-in-Publication Data

Library of Congress Control Number:2019955443

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Disclaimer

Gryphon House, Inc., cannot be held responsible for damage, mishap, or injury incurred during the use of or because of activities in this book. Appropriate and reasonable caution and adult supervision of children involved in activities and corresponding to the age and capability of each child involved are recommended at all times. Do not leave children unattended at any time. Observe safety and caution at all times.

This book is not intended to give legal or financial advice. All financial and legal opinions contained herein are from the personal research and experience of the author and are intended as educational material. Seek the advice of a qualified legal advisor or financial advisor before making legal or financial decisions.

Introduction

The scene of a new parent dropping off her child for the first time is something professionals in the industry have been accustomed to for generations. Early childhood professionals have accepted the responsibility of helping young parents deal with sacrificing time with their children and missing important milestones such as their childs first smile or first words.

In the twentieth century, a time characterized by constant change, including a monumental campaign for womens rights, women were motivated to pursue a college education and join the workforce in greater numbers. Working parents today face the same challenges as the generations that preceded them on how to provide care for their young children while away at work. New parents are increasingly aware of current research that proves the importance of the first five years of a childs development, a period in which the brain develops faster than at any other time in a childs life. The unique characteristics of millennials and the generations born into the digital era will demand more from providers than just child-care services.

Young parents want educational offerings that will set up the foundation for their childrens mental health, academic performance, and social skills. Therefore, the new generation of parents entering the market will redefine the necessary skills and credentials that it will take to join the ranks of early childhood professionals. Market demands will require programs to adapt, and programs that fail to do so might close due to financial pressures. The challengeand the opportunityis to be able to meet the new expectations of the next generation of parents.

Developing This Series

This book is the first in a series on starting and operating a child-care business. To provide information relevant to people who want to start their own child-care business and to directors who want to understand the business better, we sent out a needs-assessment survey to providers in our community serving different market segments. One of the survey findings is that, regardless of the organizational structure or business model, all child-care providers face the same challenges, such as operations, marketing, understanding finances, and customer service, on a daily basis.

In most cases, directors who responded to our survey say they report to an owner who handles the business side of the operation. One of the challenges of this dual-management system modelan investor/owner and a child-care directoris that it prevents directors from having a holistic view of the company. The high costs of setting up a program and lack of understanding of the business side of the industry, financing options, and challenges of opening a new business have kept educators on one side of the operations and owners on the other side. Owners handle the business side of the operation, including location selection, marketing the facility, securing financing, processing payroll, collecting money, and paying business expenses. Educators manage staff, provide customer service, and ensure the programs quality metrics. Nevertheless, directors know from experience that decisions made in one area of the company will affect the rest of the organization. Child-care directors who have an understanding of the business side of the operation will be able to operate more efficiently and will be able to respond faster to market trends as the organizations of the twenty-first century will demand internal departments to be interconnected.

This book is not intended to give legal or financial advice. All financial and legal opinions contained herein are from the personal research and experience of the author and are intended as educational material. Seek the advice of a qualified professional before making legal and financial decisions.

How to Use This Book

This book is designed to explain how to start a child-care business, for those who wish to operate their own centers. But it can also be used by current and aspiring center directors to help them do their jobs better. You will find the following features throughout the book:

• Main questions: key questions that shape each chapter
• Case studies: real-life or fictional scenarios that illustrate key concepts
• Build your knowledge: exercises to help you apply the concepts you are learning

We will share case studies of providers in different settings, including home care, independent day care, franchised locations, as well as data provided by funding sources. Each chapter focuses on a specific area of business management, offering terminology and concepts to help you understand the ins and outs of the child-care business. At the end of each chapter, you will have the opportunity to build your knowledge with guided questions that will help you assess your progress.

Before You Begin the Journey

Before you begin this journey, take stock of your strengths and dont forget to pack the following.

• Your passion and the commitment to follow your heart: What would you do with your time if you did not have to work for money? Your answer is a good clue to your passion. Combining your passion with your job leads to purpose. When I left the telecommunications industry, I was at the peak of my career. I had gained a reputation in that field, yet I was no longer passionate about the opportunities. I needed to find a new purpose, and in the field of child care I did. Purpose has nothing to do with income, status, or internal wiringit is the fuel that starts your internal engine, enabling you to create change.