In-home daycare providers: How do I start my own home daycare?

Question

I just found out I am expecting our 2nd baby in March. I DO NOT want to miss everything AGAIN! I will absolutely loose it. I need money, I need to see my children. This is the best thing I can think of. I won't be starting this before the baby, because I think it unfair to start a new business and then tell the parents I am going to have a baby in March and will need a few weeks off. I live in WI, not sure if there are any rules that would specify to this state. Do I HAVE to become certified? My current sitter is not. If I should, how do I start? What is the best way to advertise? I will not start until after the baby is born, not fair to the families to start now and then tell them I need off several weeks after the baby is born. Any help from someone who has been there, done that is VERY appreciated! If you did it and now don't, what didn't you like - what didn't work out?

My current sitter watches my son 5 days a week from 8-4 and I pay her $150 per week. She is not liscenced.

Answer 1

I started my daycare after my second child was born. I feel just like you that I missed everything with the first one. I live in MN so I don't know your state rules. Contact your local Child Care Resource and Referral Agency and county Human Services to find out licensing requirements. Search the web for other providers sites www.daycarematch.com and look that their contracts. Make your rules for your house and stick to them. I advertise on our local dayare association website www.fccimn.com and at the local hospital's internal want ads. I haven't had much luck getting good families from the newspaper. It is a lot of work and a lot of time but you will get to raise your own children. Another resource for financial and tax information is www.redleafinstitute.org for books and information on recordkeeping and taxes. Join the food program. It seems like a lot of paper work, but it is extra money and a good selling point www.providerschoice.com.

Answer 2

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Associations may be a good avenue to explore as well. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* Start & Run a Home Daycare by Catherine M. Pruissen
* Starting a Child Care Center: The Indispensable Guidebook for Starting a Day Care or Child Care Business by Millicent Gray Lownes-Jackson,
* Opening & Operating A Successful Child Care Center by Dorothy June Sciarra
* The Business of Child Care: Management and Financial Strategies by Gail H Jack

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

I suggest you check with your state...most day cares that I know of have to be licensed. If they aren't they can come up against a lot of trouble with the state that includes shutting it down to having to pay high fines and even jail time. Find out what you need education wise as well as business wise. Being a "babysitter" is a lot different than opening up a day care center. You need to check into it all first.

Answer 4

The first step is to prepare a business plan. Even if you will not be applying for a bank loan, a business plan helps you to think through your business - what it needs, who it will benefit, how much it will cost, and what is its potential. Here are free business plans on childcare business that you may want to look into:

http://www.sba.gov/library/pubs/mp-30.doc
http://www.misbtdc.org/documents/BPWORKBK.pdf
http://www.misbtdc.org/documents/CDCPLAN.pdf
http://sbdcnet.utsa.edu/sbic/bplans.htm

You may want to read the free article "How To Start Your Own Day Care Center" http://www.powerhomebiz.com/vol40/daycare.htm It covers various aspects of starting and running a daycare center including the demand for daycare centers, how to start this business, shoestring strategies, how to operate a daycare center, tips on caring for the children, income potential, how to manage your daycare, marketing your business and other additional income potential. There are so many things to learn about the business that the first step is to read everything you can find.

Other articles you may want to read:

Starting a Child Day Care Business http://www.libsci.sc.edu/BOB/class/clis748/Studentwebguides/ss02/pollack2.htm
Childcare.net http://childcare.net/indexnew.shtml
Starting a child-care services business http://www.entrepreneur.com/article/0,4621,290241,00.html
HOW TO START A QUALITY CHILD CARE BUSINESS http://www.sba.gov/library/pubs/mp-29.pdf

For in-depth information, I suggest checking out the following books:

- Start and Run a Profitable Home Day Care
- The Daycare Provider's Workbook
- Start Your Own At-Home Child Care Business
- So You Want to Open a Profitable Child Care Center :
Everything You Need to Know to Plan, Organize and Implement a Successful Program

It is also important that you learn the tax rules affecting daycare centers, especially if you are going to open one from your home. Here is the IRS page on child care centers: http://www.irs.gov/businesses/small/industries/content/0,,id=99878,00.html

As for the licenses and requirements in your state, the Administration for Children and Families provide a state by state listing of contacts for licensing and regulations governing child care businesses:
http://www.nccic.org/statedata/dirs/regoffic.html

In Connecticut, for example, you would need http://www.dph.state.ct.us/Licensure/apps/G_C_InitialAppReq.pdf
- child day care center initial application
- supplemental application
- lead testing (for pre 1979 buildings/houses)
- first aid course certification
- proof of worker's compensation form
- verification of experience for head teacher
- local health department approval
- fingerprints of staff
- many more