Why Family Day Care Start-ups Fail?


There could be many reasons why a family day care business fails. These include:

  • The service provided may not meet the needs and expectations of parents of children in care.
  • The family day care scheme selected provides limited support or assistance.
  • The business owner may not possess the skills, expertise or experience and knowledge required to run the business.
  • The business owner may not have the necessary information at hand to make informed business decisions.
  • Even when information is available the business owner might not know how to use that data or interpret it to work it in their favor.
  • There could be too much information available in the industry to consider and it is common for startups to be unsure of what sources to trust.
  • There could be stiff competition in the marketplace and the branding and marketing of the business may be ineffective.

Of all the reasons why businesses or startups fail, the most common is improper planning, lack of relevant information and guidance, poor or uninformed decisions and lack of resources including cash.

Starting a  family day care and ensuring it is a success is hard work! It takes time, commitment and persistence to overcome the stumbling blocks which might fall in your way.

As a start-up you may find yourself working well into the evening to get set-up and sometimes the time spent is futile and could be better spent in other areas.

I challenge you to compare the rate you charge per hour multiplied by the time spent to the cost of hiring an expert – you might be surprised at how much your time really costs!

You could be better off spending the time on something more worthwhile.

Furthermore, one of the quintessential needs that family day care business owners struggle to get their head around is a family day care tax return. There are well defined family day care tax deductions and GST requirements. A family day care accountant will be able to cater to all these.


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