Tips given for starting a child care franchise
In 2009, The National Association of Child Care Resource & Referral Agencies reported that more than 389,189 working parents in New Jersey with children under age 6 are in need of child care, but in N.J., there are only 281 nationally accredited child care centers.

As the U.S. economy recovers, many may feel hesitant to start their own business due to financial fears, such as a possible loss of personal investments. While many Americans are cutting back on "want" items, the "need" items such as child care remain necessary. In these types of underserved markets with booming populations, opening an established franchise that provides the community with necessary services and/or products can help create a profitable business, no matter what is going on at Wall Street.

Instead of looking at the economy to determine whether or not to open a franchise, individuals should research industries and local markets to determine whether or not a franchise will thrive. Here in New Jersey more than 87 percent of residents are in need of full-time child care, which should suggest that there is no better time than now to open a child care franchise.

For individuals interested in opening a franchise, I offer the following tips:

Dos:

• Work with a good partner who will help facilitate access to financing. With the current credit crunch, finding a credible partner to help with lending can make opening a business easier

• Conduct thorough market research on your desired business industry. This will help identify local competitors, calculate the need for the industry in the local market and determine other successful businesses. A good partner will have resources to support your research, as well as experience knowing what factors to consider

• Align yourself with a credible brand. Benefits include smaller marketing expenses and an already established consumer base. Look for companies that have a proven business model, but also provide plenty of growth opportunities.

Don'ts: • Don't open a franchise in an industry with volatile profit margins. Instead, open a business where the ROI remains consistent regardless of economic conditions

• Don't open a business that is susceptible to recession with limited growth potential, such as high-end retail and mid-priced luxury products and services. Markets like these tend to fluctuate. Instead, look for companies who have ambitious growth strategies and can present growth opportunity to their franchisees.

• Don't rush into anything. Research several franchise establishments to hear what they can offer to you. Picking the right franchisor can make all the difference in the support you receive and the success that you achieve.

For more information about opening a franchise in a tough economy, please contact Lisa Johnson at lmj@ecius.net or at 202-296-2002, ext. 108. For more information about Kiddie Academy, visit www.kiddieacademy.com.

Greg Helwig

Corporate chief development officer

Kiddie Academy North Brunswick