How to Run a Profitable Home-Based Daycare
In a society where two-income households are the norm, paying someone to watch your children is not an unusual practice. Because of this, the chance to run a day care business out of one's home is an increasingly profitable opportunity. You can start small and eventually expand as more money comes in. Just be sure to have the proper licensing and provide exceptional service. If you do this, word of mouth alone should help your day care business grow into a profitable one.
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Instructions
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Select the type of program you wish to run. You can specialize in such areas as full-day care (9 a.m. to 5 p.m.), drop-in care (parents can bring their children in on short notice), after-school care or extended care (multiple days and nights while parents are away). Be sure to focus on one type and do it well before you attempt to offer other services. Remember that this program will be run out of your house; so much of what you provide will be based on what you are willing to take on in your personal living space.
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Recruit staff to assist you with your operation. This is not always necessary depending on your state's regulations for child-to-staff ratio. This means that a certain number of children need a certain number of people on staff. For example, in New Jersey, for children age 5, the ratio is one staff member for every 15 children. There are also space requirements to consider. Depending on the size of the house, there is only a set number of children you can be caring for at one time. Contact your state licensing agency to find out exactly what its requirements are.
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Raise money to start your day care program. Again, since you are a home-based business, you can spend as much as you are comfortable with, perhaps as little as the licensing fee. Just remember that the more activities you have for the children, the more desirable your business will be, thus the more profitable it will become. Also, do not skimp on medical supplies and first aid kits, as no parent will want their child left somewhere were they will not be attended to if they do (and likely will) get hurt. Food is also important, especially if you are running an all-day program. Consult parents as to any special dietary needs or restrictions before feeding their children.
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Request inspections from the appropriate fire, building and health inspectors. Again, the state's licensing agency will be able to tell you exactly which ones are required. Usually these inspections take place within 60 days of the request. You will be required to correct any violations before beginning to provide day care. Once corrected, be sure the violations do not reoccur as you will likely be subject to regular inspections by the state to ensure you remain in compliance with codes.
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Contact your state's day care licensing agency. A link of agencies by state is provided in the "Resources" section below. Fill out any forms and applications and pay the fee. These vary from state to state, but they can be as low as $25. You will likely have to submit to a background check and inspection of the premises as well. Being a state-licensed day care provider is necessary because if it is determined that you are providing day care, but are not licensed, you could be subject to a hefty fine. This, combined with the resulting loss of business, will cut into your profits in a major way.
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Obtain comprehensive liability insurance. This is typically required by the state's licensing agency and you will be required to provide the agency with proof of insurance. It is also a good idea to make sure you have the proper homeowner's insurance with coverages for personal property as well. The possibility of injury, lawsuits or damage to your home does exist, and it's a good idea to make sure you are covered!
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Advertise your day care business. You may not have (or even want) big flashy signs outside your home, but you can get the word out in other ways. Some ideas include putting an ad in the newspaper, passing out fliers at schools or churches and posting on bulletin boards in areas where there is a high volume of professionals (i.e. people who need someone to watch their kids). Ultimately though, the best advertising method is to provide exceptional and friendly service. If a parent likes you and trusts you with her child, it is highly likely she will recommend you to other parents as well.
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References
Resources
- Photo Credit child playing image by Christopher Hall from Fotolia.com
