How do you start a home daycare business?

Posted on Mar 17, 2013 in Stated Income Loans

Question by sold27: How do you start a home daycare business?
I am an educator and have always wanted to own a daycare business. I was thinking about starting a home daycare and then expanding from there. Are there any federal programs that can help with funding? What are the licensing procedures for running a home daycare?

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  1. 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/taxtopics/tc509.html

    As for the licenses and requirements in your state, check with your state. 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