Why Almost All New Childcare Providers Fail And How You Can Avoid Them

Why Almost All New Childcare Providers Fail

Ever wonder why almost all new childcare providers fail? Probably not. Well, today I want to address something most providers want to avoid.  I want to share a few things which could cause our businesses to fail.  Then I’ll give you some tips for how to sidestep these business killers so you can flourish and grow your business on solid ground.  So why do almost all new childcare providers fail?Why Almost All New Providers Fail

When we start our businesses, most childcare providers are optimistic about their new business.  We have all these great ideas of what we want to do.  How we want to care for, teach and inspire young learners.  

Most of us don’t think about failing.  That’s just not in the forefront of our minds.  Understandably, we are concentrated on the positive and building our business to succeed.  

But the thing is if we don’t make certain moves from the start we might actually be setting our business to fail.

But no worries, in this post I’ll share how to avoid a few of the biggest mistakes providers don’t take into account.

Reasons Why Almost All New Providers Fail

Top 3 Reasons Why Almost All New Childcare Providers Fail And How You Can Avoid Them

1. Contract

Not surprisingly, many childcare providers start their business without a contract.  Since many of us start with one client, a contract just doesn’t seem to be that necessary.  

The problem is oftentimes we continue without a contract until one day when we wish we had one.  A parent is all but demanding this consideration or that consideration.  

Why Almost All New Childcare Providers Fail

Whether it’s longer hours or an extension on the terms of payment.  That’s when we regret not putting the details of our services in a binding contract.

Do yourself a favor and skip the regret.  Starting with even a basic contract can help to avoid so many conflicts and misunderstandings.  Even though it won’t alleviate every issue, it will tackle more than a few and at the same time give your business credibility.  

Most likely you will need to make additions or clarifications over time.  But just like your business, your contract should grow and develop too. Why Almost All New Providers Fail 

Protect your business. Get this FREE Daycare Contract!

    We respect your privacy. Unsubscribe at any time.

    Why Almost All New Providers Fail

    2. Burnout

    I will admit only a few years into my childcare journey I was burned out. Parents were running rickshaw over me and taking advantage at every turn.  I was working alone and even going to the bathroom at times seemed impossible.  Not to mention the long days and the constant intrusion of my personal time from parents.


    Instead of walking away from the business I had worked so hard to build, I decided to make some changes.  

    I developed a handbook full of policies and procedures.  I hired an assistant and went to the bathroom whenever I wanted.  And I created strict hours of operation and maximum attendance.

    Don’t be afraid to make a change!

    Why Almost All New Childcare Providers Fail

    Many childcare providers face burnout during the course of their journey.  Most of us can recover if we take the time to make changes.  

    You are the boss so you get to decide when to make a change in the way your business is run.  If something isn’t working, CHANGE IT!

    Related Reading:

    3. Planning

    Another thing that can kill your passion is not planning for the future.  In particular, not planning for a dip in your enrollment, income, and the need to rebuild.  I talked about the first time I experienced a mass exodus here.

    The thing is a childcare business is a growing thing.  As soon as you have a good enrollment, some of the children usually begin to leave.  Either they go on to preschools, age out of your program, or move.  

    There always seems to be someone leaving.  The challenge is to be sure there is always someone coming too.

    It can be daunting at times to constantly be marketing and searching for clients, but that’s what most businesses are faced with.  The key is to build it into your usual routine.

    Regularly try to find new resources for advertising.  Consider pre-enrolling for any upcoming open spots.  Come up with new services to offer.  Find new ways to market your business whenever you can.

    Related Reading:

    Why Almost All New Childcare Providers Fail

    There are three reasons childcare providers fail and ways you can avoid some big mistakes. Give your childcare business a better chance of success by:

    • Having a contract – even a basic one
    • Avoid burnout – create policies, set limits & boundaries
    • Plan for changes in enrollment – make it routine to rebuild enrollment

    Want to remember this post? Pin “Why Almost All New Childcare Providers Fail And How You Can Avoid Them” to your favorite Pinterest boards.

    Are any of these challenges for you?  What is causing you a problem with your business right now?  Please leave a comment below and tell me about it.

    Share Post

    Related Posts

    Leave a Reply

    Your email address will not be published.

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Hey there, I'm Adrienne. I help daycare providers like you create businesses they love!

    Are you ready to create a thriving childcare business?  Let me show you just how build a business that is profitable and sustainable!

    The PlayBook Business Success Plan
    Grab this FREE Grant Checklist
    Run Your Business + Save Time!
    New Provider's Club
    Join The New Provider's Club - $7
    free daycare contract
    Join The New Provider's Club - $7
    Start A New Stream Of Income


    There are some things I only share with our subscribers – get on the list & never miss out!