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Marketing Your Business

February 2004

Across the country many providers are having a difficult time filling the spaces in their program. Operating a high-quality child care program is the foundation of all your marketing efforts, and promoting the benefits of your program to parents is an ongoing activity. If you are looking to attract additional children to your program, here are some suggestions that might help.

• Use visual aids (scrapbook, receipts, evaluations, daily note, video, business cards, etc.).

• Keep track of children after they leave your care.

• Advertise with other providers with whom you have something in common (neighborhood, religious viewpoint, CDA or other professional credential, philosophy, etc.).

• Keep informed about what parents want (survey centers and homes, do exit evaluations, call parents who don 't enroll, etc.).

• Turn in illegal providers to local authorities.

• Get regulated (called licensing or certification in some states). There are many tax benefits to being regulated, and the result is more credibility as a professional.

• Join your local family child care association. Attend meetings to network with other providers. They might be able to send children your way when they have no openings, and you could do the same for them in the future.

• Contact your local child care resource and referral (CCR&R) agency to make sure their information on your program is up to date.

• Consider taking in mildly ill children or caring for children in the evenings. CCR&R's are often get calls from parents needing this type of care.

• Give your business a name and register that name with your state's Secretary of State office. Doing so will prevent other businesses from using your name. Then make business cards, flyers, and letterhead with a logo you have designed using your new name. Hand out business cards to new people you meet. Word of mouth is great advertising. Someone might pass your card along. Post your flyer at clinics and hospitals (children's and maternity wards). Also post them at grocery stores, small local children's toy or clothing stores, laundromats, and convenience stores. Ask local employers if you can post flyers in their break rooms.

• Make T-shirts with your business name for your day care children to wear on field trips. Bring along business cards to pass out. Put a sign with your business name and phone number in your car window.

• Offer an incentive coupon for parents who already have children in your care. You could perhaps offer one free week of care if the parents refer another child to you and the child stays at least three months.

Finder's Fee

Consider offering a finder's fee to the parents now in your care to help you recruit new clients to your program. This is a low-cost, no-lose way to get new business. Offer your current clients a financial incentive if they refer another parent to you who decides to enroll her child. Don't pay the finder's fee until after the new child has been enrolled for at least one month to make sure the arrangement will last. Current clients are very likely to be selective in whom they refer to you because they will want the new child to be compatible with their child.

You can offer currents clients cash, a free weekend of care to allow them to get away, or a week of free care for every successful referral. Offer friends and neighbors a cash reward to an amount that would attract their interest in spreading the word about your program. The amount of a finder's fee can vary considerably by neighborhood. A rough rule of thumb is that it should be at least half of your regular weekly fee. You can also put a time limit on the fee or make it apply only to openings that are harder to fill.

Offering such finder's fees is something all providers should consider adopting because you will only pay when you have a successful enrollment. Paying to fill a space in your program is cheaper than virtually any other type of advertising you could do. Some providers dislike offering a finder's fee because they feel it is unprofessional. They believe that the idea of giving away any of their time will cause clients to put a lower value on their services. You should make your own decision about whether a finder's fee is a good idea for your program.

Celebrate Your Program

Take the time to celebrate special events or holidays in your program year round. When you do so, consider inviting families that that have left your program. One provider in Texas has a summer barbecue every year and invites current, former, and prospective clients. Last year more than 150 people attended! This is a marvelous way to promote your program, as former clients are a rich source of parent referrals. Celebrations allow parents and children to connect with and support one another. It helps to build a community around your program and sends a message to everyone involved that your service to children is valued and important.

If you have been in business for a number of years, consider having an anniversary party to celebrate the life of your program. Invite past clients. Take pictures of the event and put them in your newsletter, on the bulletin board, and in your photo album. Send an announcement about your anniversary (and a follow-up photo) to your local media to cover. The news about your longevity can help you attract new clients.

Other Marketing Strategies

Prospective Clients

• Follow-up calls
• Scrapbook
• Benefits flyer

Current Clients

• Evaluations
• Finder's fee/free days
• Bulletin board, newsletter, celebrations

Past Clients

• Business cards, newsletter
• Keep in touch with birthday/holiday cards

Low-Cost Promotions

• Incentive coupons
• Door hangers
• Keepsakes
• Distribution of materials in the neighborhood

Compete Against Center Chains

• Visit the center and get their written marketing materials.
• Compare your benefits with the center benefits.
• Distribute flyers about your program.
• Seek ways to cooperate with the center.

Compete Against Informal Caregivers

• Emphasize safety.
• Don't compete on price. Instead, stress value.
• Work with your association to educate public about value of licensing.

Conclusion

There are many ways that you can market your new business. Remember that things take time. Be patient. Eventually that good word-of-mouth advertising will pay off. As long as you offer a high-quality professional service, you will have children in your care. You don't have to take every child who interviews for a spot in your home. Listen to your instincts and watch for the little red flags that go up for you. When you have the feeling that the family is a good fit for you, then that child will likely be in your care long term. That will be easiest for you, the parents, and the children.

This handout was produced by Think Small (www.thinksmall.org).

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