You don't have to compete with everyone. Find your niche, and work it. Find something that will set you apart - strong attachment based philosophy of parenting/childcare, a language or skill you can highlight? Parents refer their friends not because of the amazing facility, but because of the amazing person that LOVES their children. Once your find your families, you'll be set - check out the site 'how to run a home daycare' - I love her tips (I have no affiliation other than being a fan).