Most people leave the dwarf fry in with the parents and have no problems raising them in that manner. You can sell offspring so that your tank isn't overloaded, or start up other tanks.
Remember that the lifespan of dwarfs is very short, so you need to be breeding stock to replace the ones that die off. Also, they stop breeding as they get older so you need to have the replacements before they get to that point.
Before you get the dwarfs you could practice decapping brine shrimp cysts, hatching them, growing them for an extra day, and then enriching them in two 12 hours stages with new water and enrichment for each of the 12 hour stages.
The best enrichment can be purchased from Dan Underwood at seahorsesource.com.
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