How to Start a New Parent School

Start a new parent school by following these 10 steps:

1. Plan your New Parent School
2. Form your New Parent School into a Legal Entity
3. Register your New Parent School for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your New Parent School
6. Get the Necessary Permits & Licenses for your New Parent School
7. Get New Parent School Insurance
8. Define your New Parent School Brand
9. Create your New Parent School Website
10. Set up your Business Phone System

We have put together this simple guide to starting your new parent school. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening a new parent school?

A new parent school is relatively cost effective to open and operate. You’ll need to have insurance and all necessary business paperwork and filings. You’ll also want to check to see what licensing and certifications you may need through state and local governments.

Some schools operate out of a home or a community center. This reduces costs for a rented space. Utilities, internet, and phone services will be necessary, as well as a website and web hosting. If you are traveling to clients, you should include fuel and maintenance costs for a vehicle in your expenditures.

What are the ongoing expenses for a new parent school?

Most ongoing expenses will consist of insurance, travel costs, phone, internet, and web hosting. If you are a large enough business to need rental space, that cost (as well as utilities) will be included in your monthly bills.

Who is the target market?

New and expecting parents will be your target market.

How does a new parent school make money?

A new parent school collects fees from attendees of their seminars and classes.

How much can you charge customers?

Rates for consultations and classes may vary, but hourly rates for various childhood consultations can range from $150 for online or phone consultations to over $300 for specific one-on-one meetings.

How much profit can a new parent school make?

Most consulting jobs charge by the hour. If you charge $200/hour and average 30 hours of consultations per week, you’re grossing $6,000.

How can you make your business more profitable?

Create free, pre-recorded general information sessions, as well as expanded informational videos for existing clients to post on your website and online. Not only can you inform customers of your business, but you can make access to your expanded premium content part of a new parent consultation fee.

Offer to inspect homes to ensure the space is in baby-ready condition. Many new parents may overlook certain areas of their environment.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your new parent school is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Previous nannies, au pairs, nurses, and even experienced parents can structure learning seminars to cover a wide range of new parent questions, concerns, and needed skills.

What happens during a typical day at a new parent school?

As the name implies, a new parent school works with parents of newborns to help ease into the amazing world of parenting. The focus of this business is to educate new parents on as many aspects of parenting that they may need to learn, as well as some they didn’t know they needed. Daily activities will focus on the classes and seminars being taught.

Class scheduling, updating calendars and a website, posting to social media accounts, registering new students, and general office maintenance will also fill up the days.

What are some skills and experiences that will help you build a successful new parent school?

Since you’re teaching new parents about newborns and early childhood, your experience level should be substantial. Someone with prior work as a neonatal nurse, an au pair, a nanny, a home daycare owner, or a parent with exceptional experience and a background in teaching or public speaking would be an excellent candidate for this job. You’ll need to be a bit of a natural communicator, capable of speaking to crowds or just individuals. You’ll also want some experience organizing and hosting events.

What is the growth potential for a new parent school?

Somewhat of a new concept, new parent schools are gaining popularity for better preparing parents for the difficulties of early childhood. As science and medicine become even more advanced, we are able to understand human development processes with greater insight. Preparing parents with this knowledge leads to stronger families. The possibility of seeing these schools become standard institutions is significant.