How to Start A Home-Based Day Care Center

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

Knowledge of governmental requirements.
Ability to be amongst children daily.
Information in this article.

Step 1

Consider whether your house is suitable for home-based child care center by consulting your local, County and/or State regulations.
Step 2

Common requirements for a home-based day care center include smoke alarms, railed stairways, covered outlets, a specific part of your home designated for play, rest, and eating, an outdoor play area protected from nearby traffic or other hazards, etc.
Step 3

There are two kinds of home-based day care that can be provided - registered and licensed. Registered care may entail a basic background check and limit the number of children you can provide child care for. Licensing your Day Care include requirements such as annual checks by the health and/or fire departments, periodic drop-in inspections, etc. Having your home based day care registered or licensed is often a consideration of parents when looking for care and can also be a valuable advertising tool.
Step 4

Overhead costs included in caring for children at home are not usually intensive, but there will be upfront expenses. You need to make purchases to ensure your home safe (gate, receptacle plugs, door locks, etc.) and equip your home toys and other equipment. Some states maintain resource banks for day-care providers that make toys and other equipment available on a loan or exchange basis.
Step 5

Look to your local, County and State agencies for day care guidelines and other information on programs and support networks to assist you with the day-to-day operation of your home based day care business. Stay informed on current events, pertinent legal issues, industry trends and new ideas that will help the small business owner provide better care and to increase the chances of being profitable
Step 6

Create a document that outlines your day care center policies and procedures that include strict hours and sick policy for yourself and the children. Draft a contract for parents/Clients to sign when they come to interview you and look at your home. This will legalize your home based business and avoid conflict in the future.
Step 7

At this same interview obtain the necessary information about emergency contacts, Doctor’s name and Clinic, and preferred hospital.
Step 8

Develop a daily day care center schedule outlining what you anticipate the children will do during the day. Include reading, crafts, lunch, nap/rest, and play times. Provide this information to the Parents which will help them feel comfortable knowing what their children will be doing, and the children will adapt to your day care schedule when there is a sense of order to their day.
Step 9

The first payment should be retained which is considered good business and show the Parents that you are running a small business and are serious about maintaining a level of professionalism.
Step 10

Track payments received and create a day care center attendance record and for tax purposes and to provide to your Parents/Clients who need the information to figure their tax credits.
Step 11

Good small business record keeping should include a detailed list of all revenues and expenses, the total number of hours of care for each child and the payment received, and any reimbursements received from the your County or State (such as Child Care Food Program). See link in Resources.
Step 12

Check with your Tax Preparer which home based Day Care Center expenses can be deducted on your income tax return. These may include food, toys, bookkeeping costs, miles and/or gas if required to transport the children to Pre-school or other activities, allowances for major purchases, your home expenses such as utility costs, garbage pickup, real estate taxes, and home repairs and maintenance. Keep all receipts and document these as they happen throughout the year so you are not overwhelmed at the end of the year. See link in Resources.
Step 13

Develop a small business marketing plan for your home based Day Care Center. Know where else there are in-home child care providers and Day Care Centers in your area to ensure that you are competitive with your rates. Determine how much your budget will allow for marketing. Select advertise mediums including your local government agency, local papers, passing out flyers, putting flyers or ads on bulletin boards such as the local grocery store, gas station or anywhere you go with your children. Tell friends, contact schools, churches, and any place frequented by families of working parents.
Step 14

Advantages of a home-based day care are that you, as a child care provider, can provide a closer, family-type setting for the children at a lower cost than center-based Day Care. These features should be the axiom of all your marketing since a home-like environment and cost are main concerns to parents who must leave their children on a daily basis.