A daycare business is a great undertaking if you have enthusiasm for children. What you have to do is learn more about the rules and regulations in Ontario, think of any problems and challenges, write a good business plan, and apply for financing.
Regulations
Daycare businesses are governed under the Child Care and Early Years Act of 2014 which applies to licensed child care centres and home child care agencies as well as unlicensed child care. If you plan to start a licensed child care centre, it is important to learn about the ratio of staff to children for different age groups, including kindergarten, preschool, toddlers, and infants. The ratio is 3 to 10 for infants, and the maximum number of infants in one group is 10. The ratios for toddlers and preschool are 1 to 5 and 1 to 8, respectively. The maximum number of kids is 15 for the toddler group and 16 for preschool. There are safety and health regulations as well. All teachers and staff working at child care centers are required to undergo a criminal reference check. A valid first aid certification is also required for employees and supervisors, which includes child and infant cardiopulmonary resuscitation.
Staff and Teachers
To run a successful child care centre, it is important to hire staff with good qualities, including communication and management skills, passion for children, engaging personality, and patience. Keep in mind that some of the staff may still pay off student loans. To learn more you can click here: https://www.lifeoncredit.ca/student-loans-in-canada-the-ultimate-guide/
Business Plan
Writing a good business plan is the next step if you plan to apply for financing for your daycare business (helpful tools to write a business plan: https://www.lifeoncredit.ca/). In your business plan, it is important to highlight the fact that your daycare centre is dedicated to promoting the social, emotional, psychological, and physical development of children from different age groups. You may want to describe the activities offered for different age groups, for example, play, singing, movement activities, activities that encourage language development, communication, and interaction, etc. Make a list of your start-up requirements and costs as well, including equipment, rent, insurance, consultants, brochures, advertisements, legal costs, etc. You can include sections that focus on market segmentation and analysis, sales forecast and sales strategy and personnel plan.
Financing
There are different options for financing, depending on your requirements, credit rating, whether you can offer a major asset as collateral, and other factors. If you have a valuable asset, then one option is to apply for a loan under the Canada Small Business Financing Program. Hundreds of unions, banks, and other financial establishments participate in the program. This is one way to obtain a low-cost loan but keep in mind that there are administration and registration fees. Another option is a loan from a private provider such as a finance company, credit union, or bank. Many banks offer the full array of financial solutions designed for business owners, including business leases and loans, mortgages, business lines of credit and cards (to see full list click here: https://www.lifeoncredit.ca/top-12-best-credit-cards-in-canada-for-2018/), term loans, and other loans. Banks offer loans to customers looking to finance the purchase of a vehicle or equipment, to renovate equipment, increase their cash flow, finance a start-up, etc. In addition, there are short-term financial products to look into, including payable financing, accounts receivable, letter of guarantee, bridge loan, operating line of credit, and more. Some accounts receivable, for example, allow business owners to increase their working capital and meet expenses while a business line of credit helps businesses manage their finances and cash flow more effectively.