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How to Start a Daycare Business
Article Summary: Ideas for getting started in your home daycare.
If you have a genuine and deep love for children – and have loads of
patience, kindness, and understanding – a home daycare business might be
perfect for you.
Here are some of the many benefits of this type of business:
Increasing Demand. The demand for childcare is projected to increase as
mothers and fathers continue to work outside the home.
Emotionally rewarding. The early years are such a pivotal time in the
life of a child. As a daycare provider, you can have a huge influence on
the life of all the children in your care.
Stay-at-home with your own kids. This type of career, more than many
others, offers the possibility for you to enjoy your own children while
you care for others.
Starting a Daycare Business
While it has many benefits, a home day care is not likely to create huge
financial gains. So, going into this business, it’s important that you
understand why you are starting this business. And, of course, the love
of children must be paramount.
Any parent or caregiver will affirm that being surrounded by children
all day can be incredibly demanding. You’ll want to make sure you have a
solid business plan before you embark on this type of career, and that
starts with lots of research.
Here are some of the questions you’ll need to consider:
Will your community support a home daycare? In other words, does your
area need another daycare?
Will you be able to charge enough in your area to make this a profitable
venture (or at least to stay afloat financially)? What is the “going
rate” per child in your area for daycare?
What are parents in your community looking for in a daycare center?
Interview parents in your neighborhood and find out what features they
wish they had. What kinds of unique features could you provide as a
caregiver?
What kind of changes will you need to make to your home and yard to make
this work? What kind of effect will this business have on your everyday
family life?
What are the regulations of your state and local government? You’ll need
the requirements for caregiver/child ratios, interior and exterior space
per child, nutrition, and licensing.
What kind of financial outlay would be required? As with any business,
you’ll need to start with a sound business plan that specifically
addresses income and expenses.
What is your childcare philosophy? How will you handle discipline
issues? You’ll need to have a solid, written policy and procedures
manual before you open for business.
What hours will you be open? What will you do when children are picked
up late?
Which meals will you serve? What kind of snacks will you serve - and
when?
What will your daily routine be? What kind of preschool curriculum will
you offer? Start thinking now about possible units of study, field
trips, and special guests.
Are you CPR certified? Regardless of whether it is a state requirement,
you’ll want to make sure to have CPR certification and first aid
knowledge so that you are equipped to handle anything that may occur in
the course of your day with the children.
What kind of insurance will you need? Inquire about liability insurance,
as well as changes to your homeowner’s insurance (for accidents that may
occur on your property.)
How will you market your business? Generally, this business doesn't
require a lot of marketing. That’s due in part to the large demand for
quality childcare. And, for home daycares, your neighbors and
acquaintances are likely to be your prime prospects so word of mouth is
often sufficient. Still, it's a good idea to create a professional
brochure detailing your daycare philosophy, curriculum, schedule, and
fees.
What other ways could you structure your business? Before you begin a
home daycare business, think about all the other possibilities in the
childcare industry. For example, in my town there is a very successful
babysitting service where caregivers travel to homes or vacationer’s
hotel rooms. Last time I checked, the service was charging upwards of
$20 per hour with a 3-hour minimum. Or consider a drop-in daycare that
you could provide during hours where childcare is more difficult to find
(evenings and weekends, for example). Or a service in which you provide
childcare during weddings or events. If you find a very specific niche
and fill it, you can generally charge more per hour.
If this all seems overwhelming, you can invest in a
daycare business
kit with the essentials:
daycare business
forms, policies and procedures, examples of business plans, as well
as forms that you are certain to need but that might not immediately
come to mind.
There’s nothing like owning your own business. Enjoy the process of
researching and creating your own!
More Resources:
Starting a Daycare
Business Explains in detail how to start, run, manage, and market
your home daycare, as well as curriculum development and policies and
procedures. Also includes
daycare business
forms and business plans that will save you hours of research time.
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