How to Start Your �In-Home Daycare Business

By DaycareBaby.com

For new and aspiring child care Providers

Daycare business overview

Maybe you… •  are looking to stay home with your own kids, and watch a few others? •  already have the facility, space, toys and equipment you need to start? •  have a desire to work with young children? •  have education or experience in child care? •  are just ready to be your own boss.

These are all great reasons to consider starting a home daycare.

One benefit that you may not have considered: Using your home as a place of business means you can likely qualify for tax savings on a number of things like utilities and more.

So, how do you decide where to start…?

Getting Started

A dedicated space •  You may need both an indoor and outdoor space, to become qualified in your state. Look into resources for your state (See our list of state resources at https://www.daycarebaby.com/states/)

•  How many children can you have? •  It depends on the rules in your state. • Your own kids probably count.

What are your income goals? •  Calculate how many children you can have, what you might charge per child, and what your expenses would be.

More resources •  The childcare resource and referral (CCR&R) agency. Find your local office to find out what’s available for training, which can be done over a weekend for a low cost, typically.

Getting Started Assess your market •  Discover if your local area has high demand for daycare, and what type of care set you apart from competition to meet the needs of parents.

•  Call local daycares and find out if they are at capacity or not. •  Ask about their rates so you know what you might charge. •  Consider the local work industry in your area, are there a lot of 3rd shift types of jobs? If so, maybe you consider having different care hours than the typical daytime hours, for example.

How to differentiate yourself •  The 4 P’s (Product, Price, Place, Promotion) apply to your business

•  Compared to your competitors, is your style of care more professional, structured, educational? •  Is your price equal to the value, and comparable to others? •  Do you live near others or do you live out of the way? •  Are you promoting yourself effectively?

Places to connect

CPR •  Red Cross may have local weekend classes

CCR & R •  The childcare resource and referral (CCR&R) agency. Find your local office to find out what’s available for training, which can be done over a weekend for a low cost, typically.

Create a web presence •  Create your own website or page that you can share a link to. www.DaycareBaby.com lets you create your own public profile page. •  Structure your content to help promote your business, and your:

•  Product (your care) •  Price •  Place

Marketing Yourself Your Education •  Many states require a First Aid CPR training, and a High School Diploma or GED

•  Parents would prefer someone who is well qualified

•  CDA http://www.cdacouncil.org/about/cda-credential (Certified Daycare Associate, 140 hour educational certification)

•  Associates or Bachelors Degree (child care, education, health)

•  Years of experience •  At an established daycare center or in your home •  You might gain valuable experience by working at a larger daycare center before branching out on your own. •  Though not impossible, it will be harder for parents to choose your daycare without some level of experience.

Marketing Yourself

Care Space •  Do you have a dedicated care space? •  Is your space safe in the event of a natural disaster? •  Is your property secure? Do you have a home security system, etc? •  If your care space is a basement, have you screened for Radon? •  Can your family handle the reduction in livable space as a result?

Consider all of these things before committing part of your home to be a business-only space.

Take a few well lit photographs of your space once you’ve set it up, to use as part of your marketing online.

During the parent interview, walk them through the care space as a tour of your home.

Marketing Yourself

Education and Activities •  Most likely you are required to provide a report to parents daily, and potentially a written/printed report. This report may require that you document naps, feedings, or bathroom activity for a young child

With www.DaycareBaby.com you can log activities online throughout the day, and you can later email or print when you provide the report to parents at the end of the day.

•  Parents will want to see and know that you are helping their child learn and grow. A curriculum plan is valuable, especially as kids grow past the 18 month range, they will begin talking and learning more rapidly. How do you plan to engage and challenge them to grow?

Always consider the safety aspects too. Are toys choke hazards for littler children? Have toys been on a product recall list that you were not aware of?  

Marketing Yourself

Meals and Naps •  Today’s foods can have a lot of sugar and excess fat. Do you know what healthy choices are for your daycare children? •  With more parents being health conscious, one way to stand out from your competition is to provide meals that have been recommended by a Registered Dietitian. •  How will you adapt if you have a child with special diet restrictions? •  Are you aware of the proper temperatures to cook foods at? How to prevent food-borne illnesses with proper storage and refrigeration?

Consider all of these things before committing to run a daycare business. It is your responsibility to provide the best care to young children.

Maintaining and Growing

As your daycare business gets started, be sure to operate in a way that focuses on your customers needs. Parents and children should be happy with you.

A word of mouth referral is the most valuable way to gain new business.

Always be advertising, and start a waiting list if needed, so that you can ensure your daycare is at capacity (not over capacity).

Ensure that you’re always running a safe daycare that state officials can inspect without issues.

Act professional. Be transparent about rates, rate increases, and reasons for changes.

Watch our 1 minute video at www.daycarebaby.com

Thank you!

Consider talking with a legal and tax representative to ensure proper insurance and any other items are in order before starting a business venture. This information is intended to be a starting point only, and may not be suitable for your situation.