Business Basics

Tiny Trees Business Pack

1. Business license 

2. Business Insurance 

3. Register for a sales tax permit

4. Business and Accounting Basics

5. Marketing and Online Integration

Checklist for Starting a micro-program:

  1. Business License:

-Find out about licensing guidelines for daycare centers/nursery schools and small businesses. Every state has its own set of rules and regulations for childcare centers and preschools. Check with the Department of Child and Family Resources to determine what is required in your state. Your local government will have rules and regulations that will govern you as a small business owner and as a daycare owner, and you want to comply with both. One place to start is the Child Care Aware of America website, which covers licensing guidelines; from there research your specific state and city.

           - Customize your Business Plan

           -Purchase a business license. You will have determined how your business will operate -as a sole proprietorship or an LLC.  You will license your business accordingly.

  2.  Business Insurance.  We recommend going with a local insurance provider or Markel Insurance - Childcare https://www.markelinsurance.com/childcare.

Remember that insurance only covers you when you are in compliance with the regulations in your state,  so determining and complying with all state and local regulations is a must.

3. Register for Sales Tax Permit. In general, these are the steps to register with a state or municipality to collect sales tax:

 - Gather your business identifying information. You will either need to provide your EIN (‘Employer Identification Number’ which you can apply for through the IRS) or you can use your SSN if you are a sole proprietorship. 

-Visit your local government or State’s Department of Revenue website 

- Search or click on the “Sales and Use Tax” section of the website 

- Follow the instructions to register your business

Your state, county, or borough may offer exemptions on the collection of sales tax for childcare-based businesses, but you usually have to register and submit your income to be in compliance.

4. Business & Accounting Basics

-. Open a business account at a local bank. We love our local credit union. You need to have your business license to open a business account. Make sure that you have your checking and savings accounts linked so that the savings account will act as overdraft protection. 

-. Order checks or ask them to print you a pack of ‘counter checks’. Most banks can print counter checks with all your information on them and will give you 3-12 checks which can be a good way to get started and save the outlay of cash. Of course, if you love writing checks or think you might, then order more. 

- Order a visa debit card. Consider a credit card dedicated to your business. If you have an iffy history with credit,  just stick with your visa debit card. If you are comfortable managing your money so that you pay it off fully each month, choose a credit card that balances perks, such as miles, with a low or no annual fee.

The crux of basic accounting is that all business income and expenses go through their own dedicated account. This makes bookkeeping very straightforward. Your account history can be downloaded from your bank website into a CSV. file and opened in Excel or Numbers. You can then categorize each transaction in the main categories of business expenses on the Federal Form Schedule C (Profit or Loss from Business].

You will pay yourself from your business account each month. If you are a sole proprietorship, it is as simple as transferring the money from your business account to your personal one. (One reason we love our credit union is that they make this so easy). If you have an LLC, transferring money can be just as simple but you will have to also be on an official ‘Payroll’ system that will allow the payment of SS taxes and federal tax withholding on the ‘earnings’ that you decided upon when you set up your LLC. We have our accountant provide this bookkeeping service for us (I wouldn’t want to do it myself but it certainly could be done.)

5. Marketing and Online integration

- Create a Website. In many communities, your marketing may not need to consist of much more than telling a few friends, but it is a good idea to create a simple website that houses all of your basic information so you have a place to refer interested families. A simple menu structure:

  1. Home - This can be as simple as a great photo and the brushstrokes of your program. Include clear contact information. 

 B. About Me - A basic bio that includes your experience with, or affinity

for children and the outdoors. And a picture!  (photo?)

 C.  Program - Provide the hours, days of the week and cost, as well as the guiding influences and principles of your program. You can include a link to your online enrollment JotForm (see below)  or place it on a separate page. 

D. Contact - Provide a phone number and contact form or email. You might request some basic information for enrollment inquiries or you can just encourage getting a conversation started. Of course, if you are inspired,  you can add much, much more,  but we recommend just getting the basics out there.

- Get a Jotform account. We love the free level of Jotform - it works perfectly for creating an online enrollment form and it is perfectly adequate for your small business.

- If creating a website feels wildly out of your skill set or comfort level you could try asking a tech-savvy friend for help. Try using an online service like FiveR, or use a local web designer (budget around $750-1000). We love WordPress for its customizability.  Squarespace is another option. You can have professional designers support you on either of these platforms (and others) and you can still have access to update basic details yourself. This is very important! Make sure however you create your website that you can make simple changes to things like hours, prices, and program descriptions yourself.

- Optional online tools:

    A. Mailchimp for email newsletters and updates. Mailchimp can easily be integrated into your website and it allows interested parties to stay in touch with your offerings. In online marketing, building your ‘List’ is essential but it might not be necessary for your small brick & mortar business. 

     B. PayPal or Square for accepting credit card or online payments. We don’t do this as it does regularly and only accepting cash or check has rarely ever been a problem. 

C. Learning Genie or another private photo-sharing group for communication with your families and sharing details on the kiddo’s days with you.