How to Keep Costs Down in Your Infant Daycare Business

 

Starting an infant daycare business can be an expensive proposition. You need to invest in furniture, toys, and supplies. You also have to pay for licensing and insurance. However, there are ways to keep your costs down and still provide a high-quality experience for your young charges. Here are some tips for keeping costs down in your infant daycare business.

 

Do Your Research

Before starting your infant daycare business, research the competition and find out what similar services in your area are charging. This will help you to price your services competitively.

Setting your prices too high will turn away many potential clients. On the other hand, putting your prices too low will eat into your profit margin. You must hit the right price that is acceptable to your market. You can increase your profitability by maximizing all means to keep your costs down.

 

Join Conference Room: More content on accounting, personal finance, and humor/ short story topics. Video, blog posts.

 

 

Shop Around for Insurance

Insurance is a necessity when operating an infant daycare business. You will need liability insurance to protect you in the event that a child is injured while in your care. That is also a requirement in most states. You may also want to consider getting insurance to cover the cost of any damage that may occur to your property.

Insurance will save you money in the long run but it doesn’t have to be expensive. Shop around and compare rates from different companies to find the best deal.

 

Get Creative with Your Furniture

You don’t need to buy new furniture for your infant daycare business. Get creative and repurpose items you already have or look for gently used items at yard sales, thrift stores, or online marketplaces.

You do not have to spend much to make old furniture look new. Just give each one a fresh coat of paint. Use paint that is easy to clean. Remember, you must make everything in your daycare neat and clean.

 

Go to Accounting Accidentally for 600+ blog posts and 450+ You Tube videos on accounting, personal finance, and humor/ short story topics.

 

Find Deals on Supplies

Toys, diapers, wipes, and other supplies can be expensive if you’re buying them full price. You must be wise when buying baby products to get the best deals. You can get these items at a fraction of the cost if you do it right.

For consumables like diapers and wipes, look for wholesale sources. Bulk prices are always lower, meaning you spend less for each unit of the item. Usually, the price goes lower for packages with more items. So, buy the biggest available wholesale package you can afford on your cash flow.

However, you do not need multiple pieces of items that are not consumable. For toys, bedding, and similar items, buy only marked-down items. Always look for sales.

 

Take Advantage of Free Marketing

You do not need to spend on marketing and advertising. Set up a simple but professional website on a free site. Make sure it has all the information potential clients need to decide on using your business. Post pictures of your facility.

Sign up for a Google Business Profile. This is free. Again, ensure that you provide complete information about your business.

Set up accounts on social media. Most parents are on Facebook, Instagram, and Twitter. Post regularly about your services. Include photos of your facility. (Never post photos of the children, though.) Use hashtags related to your business so that people looking for your service can find your posts. For instance, you can add your locality to #InfantDaycare.

Ask satisfied clients if they would like to provide testimonials on social media. These are more powerful than any advertising. It would be best if they posted on their own accounts and tagged your account. That will prove they are real people recommending your service.

Keep Utility and Repair Bills Down

Water and energy bills are recurring expenses. You can keep your water bill down by using low-flow faucets throughout your facility. Your energy bill can be reduced significantly if all your appliances are energy-efficient. Choose only appliances recommended by the government’s Energy Star program.

Ensure proper and regular maintenance of your heating, ventilation, and air conditioning (HVAC) system, plumbing, and electrical system. Only hire licensed professionals. They will be able to spot potential problems and act on these with your permission. That will prevent breakdowns that need major and expensive repairs.

 

Keep Your Infant Daycare Competitive by Keeping Costs Down

By following these tips, you can keep your costs down and provide a high-quality experience for the infants in your care. Research the competition, get creative with your furniture, buy supplies wisely, and take advantage of free marketing opportunities to keep your business running smoothly on a tight budget. You will soon see your infant daycare business thrive by providing a quality service at a competitive price.

 

Ken Boyd

St. Louis Test Preparation

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies