Starting a Home Daycare: Where to Begin

Starting a home daycare sounds like the perfect home business for many parents. Being a daycare provider eliminates the childcare needs you would have if you worked outside of the home. At the same time, it provides an income source that your family likely needs. Unlike many of the options we explore on The Work at Home Wife however, far more is involved than a domain and hosting package.

The U.S. Small Business Administration has an amazing How to Start a Quality Child Care Business document available that will help you determine whether or not this is a good fit for you and your family. It certainly isn’t a business for everyone. Questions you need to ask yourself and that will be detailed in SBA’s document:

• What are the different types of child care programs? (Daycare isn’t just daycare.)
• Is there a need in my community?
• Why do I want to start this business?
• What are the legal requirements?
• Where will my business be located?
• Business structures and tax laws
• Do I need insurance?
• How will I finance my business?
• How will I market?
• How will I manage my new business?
• Safety, storage and setup
• Planning the program
• Training

There are numerous aspects here to consider. This is one of the reasons I am going to let SBA’s document do most of the heavy lifting. They outline and explain those most important details – legal and financial. You are also going to find several questionnaires and self-assessments within those pages that will help you determine if this business is right for you.

Marketing

This paper is outdated when it comes to marketing. I see a few local daycares using social media in my very rural setting. I would 100% recommend taking advantage of social marketing. Get your business on Facebook at the very least. The benefits here are many. This can for certain bring in new business, but it can also be a great way to communicate with parents. You can not only relay important announcements, you can also get them more involved.

Other marketing avenues to consider may be hanging flyers at local businesses or apartment buildings, business cards, Craigslist, online community directories, etc. I also think this may be a perfect business for implementing a referral system. A parent refers a new client, they get $X off their next bill.

Contracts

This fabulous document does not go much into contracts. You absolutely MUST have a contract. Always. There are so many little details involved with child care services. A contract will ensure both parties are clear on what is expected. You don’t want to end up on The People’s Court.

 Where to Get Help

Starting a home daycare can be a tad confusing and stressful. If you need a little helping hand or business advice, contact the U.S. Small Business Administration or SCORE. Both of these places have tons of free resources available online and/or can connect you with a knowledgeable local party for assistance.

Here is the link again for the SBA’s How to Start a Quality Child Care Business.

Have you run a home daycare? What insight can you share?