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Unregistered 06:19 AM 05-02-2016
I have a woman who wants to go into business with me. She is a mom of my son's friend. We have become friends. I recognize the danger of going into business with friends. I am specifically interested in the logistics of how other group daycares have made it work. I have an established business of 10+years. Does she become my employee? Do we make an LLC and become partners? In order for me to find it worth the time and effort I would need to make more than 50% of the total business income. It would be in my home. What if we lose a family? Whose income is affected? So many of my questions lead me towards her being my employee. Not an equal business partnership. I'd love to hear from other group daycares who have made it work.
Blackcat31 06:25 AM 05-02-2016
Originally Posted by Unregistered:
I have a woman who wants to go into business with me. She is a mom of my son's friend. We have become friends. I recognize the danger of going into business with friends. I am specifically interested in the logistics of how other group daycares have made it work. I have an established business of 10+years. Does she become my employee? Do we make an LLC and become partners? In order for me to find it worth the time and effort I would need to make more than 50% of the total business income. It would be in my home. What if we lose a family? Whose income is affected? So many of my questions lead me towards her being my employee. Not an equal business partnership. I'd love to hear from other group daycares who have made it work.
Why would you want to give away half of everything you've worked for and created over the last 10 years?I have a woman who wants to go into business with me. She is a mom of my son's friend. We have become friends. I recognize the danger of going into business with friends. I am specifically interested in the logistics of how other group daycares have made it work. I have an established business of 10+years. Does she become my employee? Do we make an LLC and become partners? In order for me to find it worth the time and effort I would need to make more than 50% of the total business income. It would be in my home. What if we lose a family? Whose income is affected? So many of my questions lead me towards her being my employee. Not an equal business partnership. I'd love to hear from other group daycares who have made it work.
It's your house, your wear and tear, your established reputation.
I'd consider hiring an employee if I needed or wanted to expand my business but no way would I consider going into a partnership with some one when I am the one established and they are not.
Leigh 06:49 AM 05-02-2016
Originally Posted by Blackcat31:
Why would you want to give away half of everything you've worked for and created over the last 10 years?
It's your house, your wear and tear, your established reputation.
I'd consider hiring an employee if I needed or wanted to expand my business but no way would I consider going into a partnership with some one when I am the one established and they are not.
Why would you want to give away half of everything you've worked for and created over the last 10 years?
It's your house, your wear and tear, your established reputation.
I'd consider hiring an employee if I needed or wanted to expand my business but no way would I consider going into a partnership with some one when I am the one established and they are not.
I've had a few DCM's and friends suggest this to me. Even another provider who can't get clients (and there IS a reason for that). I'm sure it sounds like a dream to go to someone else's house and just play all day and get paid for it!
I'm with Blackcat-I can't think of a single positive to letting someone else have half of what I've worked for, especially since they usually are delusional about the amount of work that goes into this. My husband has been bugging me about getting a "real" job because he's so sick of the wear and tear and the constant cleaning/sanitizing, along with me working outside of my scheduled hours (weekend paperwork, shopping, training, etc.). I think most of the people who've suggested this to me think we'll sit and drink coffee and chat while a group of well-behaved kids play in the backyard independently.
talllisa 07:39 AM 05-02-2016
LOL! Hopefully there will be some coffee drinking involved 
This other woman has been a preschool teacher for many years and her and I volunteer in the church infant room together. I LOVE her work ethic! She even came on part time a little bit last year to do arts and crafts with my kiddos.
So how about taking her on as an employee to grow my business? I see a lot of positives to that. I am going to become an infant and toddler only provider. Alone I can take four kiddos under school age. With a second adult caregiver I can take seven kiddos under school age. I would need to make more income than what I could on my own to make it worth it. But maybe pay her what I'd make from two additional kiddos?
This other woman has been a preschool teacher for many years and her and I volunteer in the church infant room together. I LOVE her work ethic! She even came on part time a little bit last year to do arts and crafts with my kiddos. So how about taking her on as an employee to grow my business? I see a lot of positives to that. I am going to become an infant and toddler only provider. Alone I can take four kiddos under school age. With a second adult caregiver I can take seven kiddos under school age. I would need to make more income than what I could on my own to make it worth it. But maybe pay her what I'd make from two additional kiddos?
Blackcat31 08:06 AM 05-02-2016
Originally Posted by talllisa:
LOL! Hopefully there will be some coffee drinking involved This other woman has been a preschool teacher for many years and her and I volunteer in the church infant room together. I LOVE her work ethic! She even came on part time a little bit last year to do arts and crafts with my kiddos.
So how about taking her on as an employee to grow my business? I see a lot of positives to that. I am going to become an infant and toddler only provider. Alone I can take four kiddos under school age. With a second adult caregiver I can take seven kiddos under school age. I would need to make more income than what I could on my own to make it worth it. But maybe pay her what I'd make from two additional kiddos?
I'd hire her as an employee and not a partner. LOL! Hopefully there will be some coffee drinking involved
This other woman has been a preschool teacher for many years and her and I volunteer in the church infant room together. I LOVE her work ethic! She even came on part time a little bit last year to do arts and crafts with my kiddos. So how about taking her on as an employee to grow my business? I see a lot of positives to that. I am going to become an infant and toddler only provider. Alone I can take four kiddos under school age. With a second adult caregiver I can take seven kiddos under school age. I would need to make more income than what I could on my own to make it worth it. But maybe pay her what I'd make from two additional kiddos?
I would also have some sort of back up plan.
In MN, infant-toddler providers with a Class D license MUST have 2 adult caregivers present at ALL times.
If your employee does not show up, you will need a back up plan so you are not over ratios.
Unregistered 10:12 AM 05-02-2016
I would not offer what you make from 2 dcks without being more specific than that. Your INCOME from 2 kids is one thing. Your PROFIT from 2 kids is another story. The wear & tear is on you. Presumably the toys, equipment, food, etc. Is on you. Who does the grocery shopping. The cleaning?
Who takes responsibility to be sure she has her training? Who pays for it? Who does the paperwork? The taxes? Who pays the taxes? (Maybe ask some good questions about this structure in the tax section.)
A lot 8f details.
Who takes responsibility to be sure she has her training? Who pays for it? Who does the paperwork? The taxes? Who pays the taxes? (Maybe ask some good questions about this structure in the tax section.)
A lot 8f details.
MunchkinWrangler 11:08 AM 05-02-2016
My question is how much does she plan on investing into your already established business? Going into businesse would mean her covering half the bills with her income and etc.
Much better off having her as an employee but that has it's own set of issues also.
Much better off having her as an employee but that has it's own set of issues also.
Leigh 11:38 AM 05-02-2016
Originally Posted by MunchkinWrangler:
My question is how much does she plan on investing into your already established business? Going into businesse would mean her covering half the bills with her income and etc.
Much better off having her as an employee but that has it's own set of issues also.
A very good point. If you were to let her in as a partner, she should be purchasing half of the existing value of your business (around twice your annual "sales"), plus paying rent on her half of using your home, utilities, etc.My question is how much does she plan on investing into your already established business? Going into businesse would mean her covering half the bills with her income and etc.
Much better off having her as an employee but that has it's own set of issues also.
Unregistered 01:25 PM 05-02-2016
There are people in Mn who do this, but I don't know how they structure it. I know one in the metro who has an infant or infant-toddler license with a friend. Their names are both on the license.