There are a few words nobody, especially a small business owner, wants to hear. At the top of the list would probably be that we are headed into a recession. But some things we have control over and some things we don’t. In this post, we’ll cover ways to help you recession-proof your daycare business and your income.
4 Ways To Protect Your Childcare Business During A Recession
Nobody wants to even think about a recession hitting, especially after the last couple of years. But the fact is they do happen. And usually, all we can do is deal with it and try to better prepare for the next one.
So whether we are headed into one or not, let’s plan to set our businesses up for success no matter what. Keep reading for tips on how to recession-proof your daycare business.
1. Review Current Income & Expenses
Prices are up on just about everything! I mean I just read an article about how the price of ketchup is going up. Seriously! Ketchup?!
One thing that can help you conserve funds would be to make sure you are aware of your income vs expenses. Download this 12-Month FREE Daycare Income & Expenses Log. You might be surprised what you find.
2. Cut Costs
So with ketchup and everything going up, it’s probably a good idea to see where we can cut costs. Good thing we providers are masters at that.
If you don’t already, check out the dollar stores for bargains on everything from paper towels to crayons to ketchup. Consider buying in bulk if you find a fantastic deal. BTW I saw ketchup there.
3. Consider Raising Rates
Last year I asked providers if they were considering raising their daycare rates. Most said they either had or had plans to. Many stated that with inflation hitting their bottom line, they felt they had no choice.
Check out this post to decide if now is the right time for you to raise your daycare rates. And if so, download the template above to make the process easier.
4. Build An Emergency Reserve
One of the best things to do that is really a must is to build an emergency (fund) reserve for your daycare business. Many of us recognize the need for a financial safety net for our family’s finances, but few of us realize we should build one for our businesses as well.
The good news is the process is really easy to do and will give you peace of mind too.
Recession Proof Daycare Business
To recap, here are 4 ways you can use to make your childcare business recession-proof:
- Review and track your current Income & Expenses
- Double down on cost-cutting measures
- Consider if now is the time to raise your rates
- Start building an Emergency Reserve Fund for your business
No none of us wants to hear that a recession could be about to hit. But whether or not it ultimately does or not, the rate of inflation is enough to give us pause.
Take the time and consider the steps above to prepare now towards ensuring your daycare business is recession-proof no matter the state of the economy.
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How Will You Recession-Proof Your Daycare?
Now I want to hear from you. Have you been concerned about a recession hitting soon? How have you adjusted your expenses to prepare just in case? Please leave me a comment below and tell me how you will make sure your daycare business doesn’t just survive but thrives.