Starting a new daycare business can be overwhelming. It requires legal compliance with government policies and regulations as well as maintaining all the financial and administrative requirements of a business. This article highlights the necessary steps required to start your very own daycare business.
1. Breakdown of the Basics
Firstly, you will need to decide on a business structure. You should consider which structure will work best for your business. You should consider if your daycare business will be long day care, a family daycare, occasional care or a preschool.
Secondly, you should determine the location of your daycare business. You should consider if you will buy or rent an area and how this will affect your expenses in the short and long run. Maybe you will even consider running your business from home, however your privacy may be an issue you should consider.
Next, you will need to register for an Australian Business Number (ABN). Registering an ABN is a simple process.
Now you need to decide on a name. Once you decide on your name, you should check the availability of the business name you have chosen. If the name is available, you can then register your business as a trademark to ensure that you have the exclusive rights to your business name throughout Australia.
2. Qualifications
Whilst it is not required it is highly advisable that you have some qualification in early childhood education to work and run a daycare business. This will help you understand the requirements and responsibilities needed to run your business. It will also give you the competitive edge as you will have a greater understanding of early childhood education impressing parents and families. Additionally, you and your employees will be required to have a criminal check, up to date first aid certificate including anaphylaxis training and a valid working with children’s check.
3. Licence and Permits
When starting any business you should always check if you require any licences or permits. Your daycare business will be regulated by the National Quality Framework. You will need to obtain a provider and service approval from the National Quality Framework before operating your daycare business. You will also need to check if any of requirements will need to be met as there are national regulations surrounding educational programs, physical environments and staffing requirements. Every state and territory has different regulations so check with your local authority to ensure you have the correct licences.
4. Insurance
Insurance is a necessary part of every business. It is required to protect your business against any accidents including personal injury and any legal action such as property damage. For your daycare business a few insurances are needed. These include public liability, workers compensation and professional indemnity.
5. Hiring Employees
To run your business efficiently and meet the national requirements you will want to consider hiring qualified staff. You should consider how many employees you are looking to hire and what their working hours will be. You will then need the appropriate employment agreements drawn up and signed.
6. Market Your Business
Now you need to start thinking what type of customer you are targeting. For a daycare business your target market would be young working families who are looking for childcare. You should consider how you are going to reach these parents. You may decide to start a social media page or place advertisements on google and facebook. Another simple and effective approach of reaching new customers is through word of mouth.
To summarise, starting a daycare business is an exciting yet challenging experience. This article has outlined the essentials needed for your daycare business. If you are looking for further assistance with any aspect of your business, contact a business lawyer today.
