How to Start a Child Care Business
Daycare providers are in high demand with working parents who want safe, educational and fulfilling places for their children. For a person who loves children and is committed to their care and education, a childcare business can be a fulfilling career choice. Childcare businesses can be operated out of one's home or as a standalone business. You can even start a referral service where you send providers to people's homes. However you structure your business, you need to secure the proper licensing and follow important steps that will contribute to your success.
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Things You'll Need
- Licenses
- Insurance
- Building location
- Record keeping system
- Marketing materials
- Furniture
- Childcare supplies
Instructions
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Research the licensing requirements for the locality where you will have your childcare business. Read the regulations carefully regarding the caregiver-child ratios, the background checks you need to do and which employees need certification.
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Apply for licenses for your site, undergo any required background checks and obtain bonding. You may need to comply with regulations for discipline, food preparation, health care notifications and requirements, emergency procedures, building safety, physical space requirements, record keeping, sanitation, fire regulations, educational program requirements, fencing and zoning requirements.
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Conduct a competitive analysis to learn where you might fill unmet needs. Consult census data about families in your communities, recent marriages, school enrollment, number of new housing starts and family income distribution. Conduct interviews with local families or send out surveys. Make a list of existing services in the community and the type of child care they provide. Note the type of services they provide and where they are located.
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Choose a name for your childcare business that will be easy to promote and represents your business and its desired culture well. File "doing business as" papers with your state. Fill out the paperwork for becoming either a sole proprietorship, a partnership or a corporation.
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Find a location where your childcare business will be run. Choose from such options as your home, a residential home dedicated to the childcare business, a church or synagogue, a hospital or school or a commercial building. Evaluate the space for safety and adequate space.
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Hire a bookkeeper or establish a record keeping system that will track all of your finances, taxes, income, expenses and the health, discipline and care information for each child.
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Purchase the necessary insurance to protect you from liability.
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Create a budget and develop a fiscal plan. Seek financing for your business from private savings or other sources, commercial institutions, government agencies or grant programs.
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Establish a price structure that will attract people to your business while allowing you to make a profit.
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Review your competitive analysis and customer assessments to identify what will most appeal to your target market and create a marketing plan. This might include such things as newspaper or radio advertising, fliers, a website, business cards, participation in a referral agency, directory listings and networking.
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Prepare the place of business. Make the space child proof so that it is safe for all ages. Fill the space with stimulating and educational decor, supplies and toys. Create spaces where children can gather and safely move. Ensure the space is well lit and that storage spaces for toys are secure and easily accessible. Purchase child-size tables, chairs and mats. Purchase infant care equipment that is new, safe and sanitary.
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Tips & Warnings
Writing a formal business plan following standard templates can help you organize your business and ensure you aren't neglecting important steps.
Network with other childcare providers and form a support group where you can help each other out and provide referrals to each other.
Basic childcare types, according to the U.S. Small Business Administration, include family care, home care, childcare development center, infant care center, before- and after-school care, satellite child development program and a nursery school.
Be thorough about conducting background checks on any personnel that you hire.
References
Resources
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