How to Start a Daycare: Your 7-Step Guide

No matter how much advertising you do, nothing beats a recommendation from a trusted friend or family member for convincing a potential customer to choose your business. Below are some of the many things you can do to further legitimize your home daycare and attract new customers. It is also a good idea to run regular fire drills and have an action-plan ready should an emergency occur.

how to set up home daycare center

School meal contacts to seek funding for your day care center’s meals. This is a step you have to take when starting any business and it can be quite a bit of work, especially for anyone looking to get moving quickly on their business. When you start writing a business plan, start with an outline of all the things you want to include. Additionally, even though it is in your home, a home daycare is still a business and needs to be thought of as such. From budgeting and taxes to licensing and regulations, you will need to handle the business side of child care as well.

You’re our first priority.Every time.

I truly Love your home day care it is soooo cozy and lots of fun, I am a childcare teacher too and I enjoy watching other’s video thank you for sharing. Find inspiration and examples here for running a home daycare in your home. Starting a home daycare is a significant undertaking, but it’s also a rewarding career that will make a difference in your community. Learn more about how to start your home daycare in our video below.

Parents will need your EIN for their IRS tax forms, which allows them to take advantage of child care tax breaks. Having an EIN means you don’t need to share your SSN with your customers. We recommend “Sole Proprietorship,” which is the most common way for small businesses in the US.

Start » Startup

At this point, you’ll have your license and families ready to go. Join local Facebook groups for parents and introduce yourself. Then create flyers and business cards that you can post on local bulletin boards and hand out at farmers’ markets, PTO meetings, or even your own child’s soccer game. It might seem strange to begin advertising your business before you receive your license, but it’s an important part of launching your daycare successfully. For tax purposes, it’s important to start tracking business expenses immediately. But we recommend waiting 3 to 6 months to sit down with a CPA to discuss quarterly tax payments.

how to set up home daycare center

Even still, it is in your best interest to license your home daycare. Additionally, rather than opening as a brand new business, you may wish to become part of a home-based childcare center agency. This would mean more help starting up and getting children enrolled, but less profit overall because the agency will take a commission of sales.

Complete guide to starting and growing a home-based childcare center

However, in New York City, there must be two teachers or one teacher and one assistant to every six children aged 2 to 3, with a maximum of 12 students allowed in a single group. Your own children may or may not be included in that count, too. Next up, you'll have to decide on a business entity, which will have huge effects on the way you're taxed and how you operate your day care business. Will you have partners or open your business on your own? Additionally, you'll want to consider whether you want a business entity that offers you some protection. Making your day care center a limited liability company might be a good move, since the business will take on liability should anything go wrong.

how to set up home daycare center

Don’t forget to keep receipts whenever you spend money for the program. To make sure your business keeps thriving, there are a bunch of things to do on a regular basis once you start your home daycare. It’s worth noting that states use different terms to refer to home daycare. In many, it’s called Family Child Care and you’ll apply for a Family Child Care License. Since this is your home and not a traditional space, you’ll need to select which space in your home is best for the children to be in. You’ll need to select a play area, nap area, and a dining area.

Preparing to Operate a Day Care Center

This can be just a simple loan, or you may offer a percentage of your business in exchange for their funding . There are many different ways to structure your business from a legal standpoint. There may be different options based on your area, so check your government websites for information they provide on business structures. Art and craft supplies such as paper, crayons, markers, coloring books or sheets or colored pencils. I, personally, prefer coloring sheets so that I can give them one at a time, rather than a child scribbling on every page through a coloring book.

A degree is more than passing grades and a signed piece of paper. It’s about distinguishing yourself among your competitors. It’s about gaining the knowledge and experience from professionals who have gone before you.

As a Sole Proprietor, you own 100% of your business, and it isn’t taxed separately—your income and your business’ income are the same thing. Plus, you don’t need to take any formal steps to set up as a sole proprietorship, which keeps it simple. Positive reviews can work wonders to attract new clients.

Even something as simple as a $25 Starbucks gift card can give parents that extra push to tell a few more friends or post a link to your website on Facebook. Just one additional customer earned through a referral could make the entire program worth it. If you see directory websites like Yelp, you can create a free listing for your business. Make sure you are thorough and provide as much information as possible, so your business will look good when compared to the competition. When looking for employees, focus on candidates who are clearly passionate about child care. It can be demanding and low-paying work, so those who love what they do will be your greatest assets.

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Additionally, you want to keep the child to adult ratio proportional. You’ll need to research the requirements of getting a daycare license in your state. Since the requirements may vary from state to state it is important that you conduct the research specific to the state that your business is located in. This is kind of the fun part because this is when you can choose the name of the business, you’ll want to make sure that it’s something that stands out but also easy to remember. As for your legal structure you will need to decide whether you want your business to become incorporated or a Limited Liability Company . Here are a few things that your business plan should include.

A website is essential to be listed , but there are more ways to be found in search results. If your budget allows, you can also create paid social media. Even spending as little as $30 could be enough to reach thousands of parents in your area. Social media is a great way to connect with your existing and potential customers online. Create a Facebook or Instagram page for your business and begin sharing content. These can be updates from your center, sharing links to relevant articles you’ve found online, commenting on others’ posts, sharing videos, and so on.

Get the guide to learn how to open a daycare in your state. No daycare is complete without toys and supplies such as paint, crayons, and paper. Aside from that you’ll need to purchase cots for nap time, cubbies for the children to store their personal items, and kids plates and cups for lunchtime.

how to set up home daycare center

If you opt for a card with a long 0% intro APR period, you can essentially use that introductory grace period as an interest-free loan. Look into the American Express Blue Business Plus card, which, at 12 months, carries one of the longest interest-free introductory periods in a business credit card right now. Using your business card responsibly can help you build business credit. And with a healthy business credit score, you’re in a better position to secure business loans with great terms down the line. SBA microloans tend to be on the smaller side, with amounts capped at $50,000, but they may be as low as $500.

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