Changing Jobs During a Recession?

The Business of Daycare: Making the Transition
By Anne Stephanie Cruz of ownadaycare.com

Nannies considering making the transition into the daycare business may be hesitant given the current unstable nature of the economy. Starting any business can be a lucrative venture and a rewarding career.

According to a recent report by the National Association of Child Care Resource and Referral Agencies, 24,755,834 of the nation’s children under six-years of age are in need of childcare. In addition, more than 63 percent of children ages five and under are in some type of childcare arrangement every week.

Furthermore, more than a quarter of stay-at-home parents plan to go back to work because of the economy and as a result they require quality daycare. Daycare allows parents the freedom to concentrate on the job hunt and to go on job interviews.

One of the seemingly easy ways to gain additional income is by opening your own home daycare center. With home daycare, you only need your own house as the center for kids and some tools needed for caring toddlers and kids.

There are many things to consider if finances are on an obstacle to starting a daycare business:

Grants Fundraising:

There are a variety of funding options available for daycare businesses, including grants and subsidies. A daycare grant is a one-time payment given to a childcare center for a specific need of project. A subsidy is a need based, ongoing payment usually provided by the government which covers essentials such as food. In this unstable economic climate, fundraising can help keep the daycare business going. Fundraising events also provide a means of increased visibility for your daycare, thereby increasing clientele and profitability.

Low Overhead:
The best businesses generate profit with low start-up costs. Family daycare centers can be started with very little overhead. The main expenses for starting an in-home childcare center are licensing, insurance, advertising, food, and tax deductions. You can legally write-off many of these expenses during tax season. In addition, there are federal food programs that will offset food costs.

Consider Tax Deductions:
One of the benefits of owning a family childcare business is that you can legally write-off business related expenses. Tax breaks can be given on a predetermined percentage of the mortgage, food, and supplies. In addition, the money you spend on equipment like diapers, cleaning supplies, toys, cribs, and stroller for the business, can be deducted.

Specialized Childcare Services are in Demand:

Even in times of economic uncertainty, one thing you can count on is emergencies and unintended circumstances. The demand for specialty daycare services like drop‐in care, 24-hour daycare, vacation care, sick daycare is on the rise. Now, daycare business owners now can carve out a niche for themselves by providing unique services and increase their chances for success.

You’re in Control of your Cash Flow:

Childcare business owners are in control of how much money they make, setting their own rates and hours. Daycare business owners decide who their clients will be. Aside from the usual legal and licensing requirements, the owner of a childcare business generally sets and follows his or her own rules and therefore how much money is the business generates.

Be sure to market your previous experience as a nanny and mention that you can provide excellent references. Parents will appreciate that their child is being cared for by a former nanny who has already demonstrated that she can provide the kind of love, caring, and nurturing that is so essential to a child’s development.