How To Start A Daycare

How To Start A Daycare - Background Info:

If you find yourself paying most of your paycheck to your child care center then it is time to put that money in your pocket. In these tough times a job is unpredictable.

Start your own home child care center and make money for yourself. Be in charge of your own business and make it as big or small as you want. Here are the steps you need to take in order to start your own child cay care business

The daycare business provides an excellent home business for individuals to cash in on this booming industry.

As dual income families have become the norm, parents find no other option but to leave their children in the hands of capable daycare providers.

But this business is not for the large daycare chains. In fact, individuals who are capable of running a small business in or close to their neighborhood are in a great position to keep their business steady.

Research shows that parents prefer to drop their children off close to home rather than close to work, which bodes well for the "residential" daycare center that you provide to your neighbors.

Parents also feel safer leaving their kids with capable neighbors and people they know who limit the number of children they supervise, which has the perception of greater safety and less germs.

Anyone who truly loves children, is patient and has good family support is ideal for starting a successful home daycare. If they do their research, find low cost ways to get started, network with other daycare business owners and follow good business practices, they will reap many rewards, both financial and emotional, for years to come.

There is a tremendous amount of flexibility and lee-way when it comes to the services you choose to offer. You may limit your clients to children in certain age groups or fashion your operating hours to meet the needs of a particular parent work hours segment. You may or may not want to provide transportation between your center or home-operated daycare and the children's homes and/or schools.

If your goal is to stay home and run your own home child care center, you can make it a profitable business as long as you plan well from the start with a good business plan. Know exactly what you want before your doors open. You can start a home child care center with minimal money and it can be as successful as you want it to be.

How To Start A Daycare - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a child daycare business:

Bookkeeping

Advertising/Marketing

Scheduling

Computer literacy

Answering machine

Record-Keeping

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a child daycare business:

Make sure all paperwork for each child is complete and quick to find.

Set up an easy accounting system and keep careful track of finances.

Establish a payment policy and enforce it. Many providers require payment at the beginning of the week or month rather than the end.

Fill out and file all reports, tax forms and other paperwork clearly, completely and on time.

Prepare meals and snacks at scheduled times.

Schedule quiet or nap times.

Proper dispensing of any medications.

Plan activities around crafts, music, learning skills, motor skills.

Tend to children's specific needs according to age(s).

Make sure children are dressed properly according to weather.

Know how and when best to discipline (get children to quiet down, etc.).

How To Start A Daycare - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - Depending on your location, this job typically has longer hours that span from early in the morning to early evening.

Hours Needed to Prepare - Before Opening and After Hours Activities - Plan to spend about an hour to prepare for your little arrivals. At the end of the day, plan on closer to two hours to clean and store equipment and toys, etc. properly.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Assistant caregivers

House keeper/cleaner

Record/Bookkeeping

General office

Driver(s)

Skill Requirements for This Business:

Knowledge About Child Development – A degree in early childhood isn't necessary to be a good provider, but some basic knowledge about child development is crucial.

Patience - small children don't know how to wait. Dealing all day with many children who make constant demands takes a great deal of patience.

Basic Business Skills – A licensed day care home is a business and requires the ability to keep good records and deal with financial issues in a professional manner.

Independence – Being the only adult with a houseful of kids every day not only can get lonely at times, but requires a very self motivated and independent personality.

Reliability – It is key to ongoing success for a provider to be extremely reliable and to give parents as much warning as possible about schedule changes or illness.

A Genuine Liking for Children – Many people who get into the home daycare business do so as a way to be home with their own children. This is fine but is not a guarantee of success. Loving one's own children is not the same as having a genuine liking for children in general.

Licenses:

Fire safety equipment such as extinguishers and alarms must be installed, first aid kits must be purchased and the daycare area must be fenced to keep children within a safe play zone. Business licenses and permits will also add on to initial costs.

Every state has its own rules and regulations concerning licensed family day care on their website, usually listed under their Department of Human Services. All states require a criminal background check and most require some training and a safety inspection of the house before issuing a license. It saves time and money to make absolutely sure all requirements have been met before scheduling an inspection.

You will need to file an application with your start for starting this business and you will need to meet basic childcare requirements like taking a CPR class and having your fingerprints documented.

Contact your local Health and Human Resources to find out what the child day care requirements are for your area. They will have a limit to how many children you can have in your home at one time. They also have a limit to how many hours you can work.

You may also need to take instructional courses while you are running your own home child care center. They will probably send you a start-up packet that will tell you everything you need to know to get your child care center up and running as soon as possible.

Additional Important Legal Issues & Policies:

In addition to deciding on your fees, you will need to make sure you have all of your policies in writing. Be sure to include things such as:
Do you credit the parent's account or do they still pay if they are on a monthly plan?
Do parents bring their own diapers or do you supply them? What if the baby runs out of diapers? Do you charge for each diaper used? If so, how much?
When is payment due? Is there a grace period? What happens if a check bounces? Are there refunds? What are the consequences of late payment? Do you refuse service?
Have your attorney write up your policies or do it yourself with daycare business legal forms available online.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost varies depending on how much of the furniture and supplies you already have. The average startup range is between $1,000 to $5,000.

Minimal exposure - There are several ways to advertise for free. If you have a computer, make yourself some fliers to pass around. In the fliers you will want to list some of the things you are offering to your children.

You can place your fliers up at schools, grocery stores, leave a few on the counter of a gas station, or find a friend on the PTA who can pass them out for you during the next meeting. You can also place an ad in the local newspaper. This does cost, but they usually charge per word and you can control the cost. You may also want to place a flier in all the local businesses in case there is a mom or dad looking for child care.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Suitable furniture and decorations are needed to create visually stimulating surroundings and you will also need play structures, toys, books, posters and art and craft supplies. Remember to always go with quality as children typically wear things out faster than adults.

Computer

Printer

Cell phone

Landline phone

First Aid Kit

Filing cabinet or boxes

Furniture - high chairs, baby cribs, beds, tables, play cushions, etc.

Baby diapers, baby products and potty training equipment.

Food and nutrition supplies

Play structures, toys and games.

Supplies for drawing and craft activities.

Disinfectant, cleaning supplies

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Separate refrigeration unit

Cubbies or shelves with dividers

Diapers in various sizes

Van for pickup/drop off service

Trash compactor

Potty chair

Monthly Expenses To Consider:

On-going child care and safety courses
Food, drinks
Wages
Furniture rental
Craft supplies
Toiletries such as wipes, toilet paper, napkins, paper towels
Phone/cell phone
Internet access
Certifications
Advertising/Marketing
Electricity
Water
First Aid Kit replenishment

Special Requirements and Considerations For This Business:

One of the most important things to do is know the rules and regulation when it comes to child care. You should also know the codes for health and cleanliness in order for you to know what to do with the area where you are going to put up your business.
You should know what areas should be kept private for you and your family and let the people know that it is a restricted area and no one is allowed to enter there but you and your family.
Buy safe to play toys for outdoor use. Make sure to choose vibrant colors as this is important to children. They are still developing their senses therefore providing them something that they can practice their senses on is definitely a must.
Find someone whom you can trust to substitute you, when you are not available. It could be a friend or a family member, just always make sure that she or he has the ability to take care of children and most specially very trustworthy.
Another important thing to remember is to provide the children meals, usually hot meals during lunch time and small snacks such as cracker or bread with juice and water during afternoon. You should follow the health and safety code locally to avoid having problems in the long run. Make sure that children don't go near the kitchen.
Learn how to talk to the parents. Be honest about everything, like if their child causes too much trouble talk to them about it, because some children might get affected by their child's attitude. Talk about certain fees like tuition; remind them about it before the due date to avoid having problems.
Plan your business hours. Since their parents are too busy working. Make your business hours available from early morning up to the normal close of business establishments. This will allow parents to pick up their children from your day care.
The biggest expense when beginning a home child care business is the added furniture, toys and supplies needed to accommodate a large number of children throughout the day. Some sources for low priced furnishings, equipment and toys are:
- Thrift stores and garage sales
- Relatives and friends with stuff their kids have outgrown
- Day care homes or centers that are upgrading or going out of business
- Special sales at school supply outlets
Your daycare may qualify for federal food program subsidies. If you choose to apply for this program, you will be required to create meals and snacks according to federal guidelines. Menus must be made up in advance. For more information about the USDA Child & Adult Care Food Program go to http://www.fns.usda.gov/cnd/care/CACFP/aboutcacfp.htm

Pros And Cons of Opening A Daycare:

The Pros of Running a Child Daycare Business:

A child daycare business is a joy to run for people who love children.

You have the advantage of being your own boss.

You are helping to shape the minds and personalities of children.

There is plenty of work to keep you in business.

This business is completely expandable.

The Cons of Running a Child Daycare Business:

Can cause a lot of stress and noise.

It can be hard to collect payment from some parents.

Children can become ill.

You can be held personally liable for any injuries or illnesses.

Type of Customers You Need to Attract:

The target market of the child daycare business is working dual or single parents and legal guardians.

Occupations with a high number of employees working nights and weekends--such as janitorial, hospitality, customer service and technical support--are experiencing substantial growth, and workers in these fields find obtaining quality child care an even greater challenge than their 9-to-5 counterparts.

Child Daycare Business Statistics:

The demand for childcare is projected to increase as mothers and fathers continue to work outside the home along with the increase of single-parent households.

Approximately one-half of the children in the United States today are cared for by someone other than an immediate family member during some portion of each day. In two-thirds of two-parent homes, both parents work, providing a large and ever growing consumer base for the day-care industry. In addition, 12 million children, more than 20% of the children in the United States, live with single parents who need child care in order to work.

One of the biggest challenges facing American families today is caring for their children while the parents work. According to the Bureau of Labor Statistics, only 13 percent of all families fit the traditional model of husband as wage-earner and wife as home-maker. In 61 percent of married-couple families, both husband and wife work outside the home. Six out of every 10 mothers of children under age 6 are employed, and the labor-force participation of women in their childbearing years continues to expand. As the number of working parents rises, so will the demand for child care.

A recent study conducted by the Urban Institute, a nonprofit policy research organization, revealed that about 30 percent of working parents have two child-care arrangements, and another 8 percent are using at least three. The study found that 65 percent of parents juggling multiple child-care arrangements use a combination of formal day-care centers, Head Start programs, and baby-sitting by relatives and friends. Another 20 percent use two separate day-care centers.

Revenue:

The income potential largely depends on how much you can scale your business. The more children you can supervise and manage without trouble, the more money you can make.

Daycare centers typically charge around $50 a day for each child, and may charge more for meals. In other words, for every 10 children, you can bring in roughly $2,500 a week in gross profits for a 5-day/week program.

Other child care providers in the area can also give good advice on such things as what the going rate for childcare is in the area, ideas for activities to do with children and will keep each other posted about parents who don't pay their bills or are difficult to work with.

Start with visiting church and non-profit daycare centers, as they will be more willing to help out and give you advice. Once you have all the information you need, find local businesses, churches and other organizations that could benefit from a daycare. You might just get them to fund your new business start up costs.

Daycare Resources:

Industry-Specific Websites:

A Day Care

ABC Home Preschool

ChildCare.net

The Daycare Resource Connection

Courses:

Child Care Provider Program

ChildCareWare Kit

Starting a Day Care Center

Ashworth Online

Universal Class

How To Start A Daycare Without A Massive Amount Of Headaches (DVD course)

Equipment and Supplies:

Hertz

Forums:

Child Care Only

Daycare Hotline

Franchises:

Daycare Systems

Creative World

Associations:

National Association of Child Care Professionals

National Child Care Association

National Association for Family Child Care

USA Child Care

American Association of Family and Consumer Sciences

Books:

Starting a Daycare Guide

Licensed In-Home Daycare (ebook)

How to Start a Child Care Center

Start a Daycare (ebook)

Starting a Daycare Today (ebook)

The Business of Child Care: Management and Financial Strategies

Family Child Care Record-Keeping Guide: 7th Edition (Redleaf Business Series)

From Babysitter to Business Owner: Getting the Most Out of Your Home Child Care Business

Developing Your Family Child Care Business Second Edition (Participant Manual)

Family Child Care Contracts and Policies: How to Be Businesslike in a Caring Profession

Software:

Minute Menu Kids Pro Industry Leading Software for Family Child Care Providers

Other:

Starting a Day Care Package

How to Start a Daycare – Daycare Starter Kit

A Comprehensive Checklist to Start Your Daycare Business

Daycare Starter Kit

Starting a Daycare Business Info

Forbes' How to Run a Child Care Business

The Ultimate "Daycare Business in a Box"

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