STEP-BY-STEP GUIDE TO START A DAYCARE BUSINESS FROM HOME
Congratulations on taking the first step and deciding to start a daycare business from home! Starting a home daycare business is a huge responsibility, so ask yourself “Why am I starting a home daycare business?” and “Is this type of business really for me?”
Step 1: Become Familiar with Rules and Regulation
- After deciding that this is the right path for you, research your state rules and regulation to determined what is needed to become licensed. Most states require a home child care facility to be regulated or licensed. To obtain information about requirements to become a licensed daycare provider in your state. Go to your states website.
Step 2: Complete the Required Training Courses
- Most states require you to complete state approved training courses before you can become licensed. The training courses must be in core competencies for early care and education professionals. Core competencies include growth and development, program management, social and emotional development, maintaining a commitment to professionalism, building relationships, etc.
Step 3: Choose a Name and Legal Structure
- Choose a Legal Structure and register your child care business. Visit the Secretary of State website for more about registering your child care business. For a home child care business it is recommended to register as a limited liability company (LLC). This is a business structure that offers limited personal liability on the part of the owner, meaning if you are sued the party who is suing you cannot go after your personal items. Other types of structures include sole proprietorship, incorporation, partnership etc.
Step 4: Develop a Parent and Provider Contract
- A parent and provider contract is a very important document, because it is a legal, binding agreement between two people involved in an exchange of services. This contract should include the terms of service. Be sure to include hours, tuition, withdraw policy, holiday and vacation, Meals, health and safety policy, behavior policy, termination policy, whether policy, and transportation policy.
Step 5: Set-up your Home with Daycare Items
- Organize the areas in the home that will be used for the childcare program and determine what items are needed to get started, such as furniture, toys, activities, etc. Before you start purchasing items look for other child care programs that are closing and need to get rid of their items. You can look on Craigslist, Facebook Marketplace or visit some local thrift stores. Try to find the items at the lowest price possible. Recommended items include a toddler table and chairs with adjustable legs, crayons, coloring books, reading books, activities, wall art, bookcase, a crib, rug, cots, and a toy bin with some age appropriate toys. In addition, get in contact with your state quality rated personnel, because there may be a grant available to purchase items for your home daycare business.
Step 6: Invest in a Record Keeping System
- Record keeping and organization is going to be one of the most important things to do when starting a childcare business. Record keeping is the act of keeping track of important documentation for the overall child care program. It is essential for effective management and to be successful within this industry. There will be several types of records that a child care program should maintain. These records include program information such as financial records, important dates, hours worked, proof of annual training, attendance for each child and documentation of meals for the food program. Invest in this Daycare provider planner & calendar. It’s an all-in-one monthly record keeping system specifically for child care providers. You can keep track of fire drills, income, expenses, meals, attendance sheets with a signature column and much more.
Step 7: Start Marketing your Childcare Services
- It is important to start marketing your childcare services to the community at least 3 months before you open. Create a marketing strategy plan. A marketing strategy is a plan of action designed to promote and sell a service. Things to consider when creating a marketing strategy is mission, goals, benefits, competitive rates, location (parking, easy access, etc.), different methods for advertising, and the ability to persuade families. Each factor requires an investment in dollars, time, and effort. If you want your child care program to stand out from the competition and thrive, every marketing opportunity should be embraced.
Step 8: Network, Network, Network
- It is important to network with other people in the child care industry, so that you are able to continue to learn, grow and stay up-to-date. I post daily tips such as, documentation needed for annual inspections, maximizing profits, marketing, managing enrollment, etc. to help you throughout your journey.
Table of Content
- Rules & Regulations
- Planning & Zoning
- Education Credentials
- Legal Structure
- Food Program
- Income & Expenses
- Setting up daycare area
- Setting up Outside area
- Communication methods
- Registration package
- Daycare Forms
- And much more!
- Download your step-by-step guide today.