Have you always wanted to start a daycare center? If so, then you’ve come to the right place. Today, we’re sharing how to start a daycare with no money using 4 effective methods.
You might think that you have to jump through all kinds of hoops to get the daycare center of your dreams off the ground. It doesn’t take any luck, or jumping through hoops to start the business you’ve spent a lifetime fantasizing about.
All you need is a love for children and the desire to improve their lives. If money is a concern, then it shouldn’t be.
There are more than enough ways for you to finance your daycare while turning it into a business that you can be proud of.
How to Start a Daycare With No Money: 4 Methods
Let’s look at 4 proven methods to help you learn how to start a daycare with no money but passion.
4. Get a Loan From a Bank
The most obvious answer to your money woes is to get a loan from the bank. By going to a bank, you’ll bypass all the hurdles that you otherwise would’ve faced. A bank will lay it down and tell you if they think it’s a good idea to start a daycare.
Excellent credit is a must, so if you’re planning on opening up a daycare sometime down the line, now is the time to start working on your credit score. Pay all of your debts on time and do your best to be as appealing as possible to the bank.
A bank is a business, and they will asses the risk when it comes to giving you a loan. Banks don’t turn a profit by giving people loans who can’t pay them back. If you have any doubts about what your credit history will show up, then it might be best to skip going the bank route altogether.
Long before you step foot in the bank, you should know what your strengths and weaknesses are. You also want to have a business plan drawn up along with all the other legal requirements for starting a daycare facility in your area.
3. Charge Everything Onto Your Credit Cards
Do you have decent credit, but not good enough credit to get a bank loan? If so, then you might have a stack of credit cards in your wallet.
Charging anything to a credit card should always be a last resort, but sometimes it’s got to be done. You know deep down inside that your daycare is going to do so well. If you’re so sure of yourself, then put all of your expenses on your credit card.
You need to be aware of the insanely high-interest rates credit cards charge. The interest you pay will be much less if you ask the bank for money, but sometimes it’s not possible.
Whatever you do, don’t keep the profits and put them in your pocket. Any money that you make needs to go directly to the credit card company until all of your debt is paid off. Now isn’t the time to think about buying a sports car with all the money you make from taking care of kids.
Every last cent needs to be used to pay off your credit card bill, so you don’t end up paying a massive amount of interest. The interest you pay will end up eating away at any profits that you make from running your business.
2. Borrow Money From People You Know
Do you know some people with deep pockets? If so, then ask if they have the money that you can borrow from them. The people you know are less likely to charge you high interest if any at all.
Your friends and family care more about you succeeding than they do about getting rich. It would be a huge mistake to ask them to give you the money and not pay them anything in return. A modest amount of money plus what you owe is what you should give them.
Don’t allow your feelings to be hurt if the people who lend you money want a written agreement. Your family loves you, but they’re not suckers. Anyone who lends money to you out of their pocket needs some reassurance that you’re going to pay them back.
Only promising that you’ll pay back all that you owe them isn’t enough. You might consider drafting up a document yourself or seeking out the help of a lawyer who can do it for a modest fee.
1. Seek Out Government Grants and Loans
Depending on where you live, the government might have grants and loans available to those who are starting a daycare facility. Do a quick search online to see if the government in your city, state, or country offers any such loans or grants.
If the language of the government sites is too difficult to understand, then call or visit their office. Sometimes legal mumbo jumbo is hard to understand that it’s impossible to know what they’re talking about.
Expect there to be some strings attached if you receive a grant or a loan from the government. Rarely does the government hand over money without there being an expectation of you doing what they want with it.
If it’s a grant, then you won’t have to pay the money back. A loan, on the other hand, you will have to pay back. Make sure you fully understand if you’re receiving a loan or a grant before accepting the money.
Final Words
Daycare centers are a must in today’s busy world.
Parents work, and that means someone has to watch their children. You could be the lucky person who gets to watch their child. There will always be a need for loving people to help take care of children of all ages.
If you love children, then there’s no better business for you to get into than running a daycare. You get to shape and mold the lives of the children while showing them the love and guidance that they so desperately need.
You make the world a better place every time you show a child tender loving care and your business as a daycare operator will allow you to do just that.
If your dream is to run your own daycare center, then make sure today is the day you put yourself on the path of making it happen.