I gush praise (if deserved) at my mindees so that they hopefully won't ever misbehave!! It's really only simple stuff like, "thankyou for putting the bricks back into the toy box" or "you are being so kind to the baby". And we have lots of cuddles - if you have a habitually "naughty" (sorry, I know I shouldn't use that word - but these children do exist!) child, I make a real effort to praise and have cuddles whenever possible if appropriate.
If bad behaviour does escalate, which will always happen when you have your OFSTED inspection, I do the following:
Say "please try not to throw the toy/tip your drink on the floor/rip the books" and will try and distract the child with something else.
If ignored, I will remove the child (or toy) from the situation, and again nicely ask them not to do whatever it is.
(If the child in trying to sit on the baby/strangle the cat, I will obviously intervene immediately and remove baby/cat/child from the situation.)
If all else fails and WW3 is inevitable, I will do time-out on a settee in the same room. I can't remember the last time I used it (my mindees are obviously so beautifully behaved or soooooo scared of me).