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If you are a teacher, former teacher, or simply have years of childcare experience (with a business background), consider starting your own daycare, either at home or in a private residence. With employment predicted to grow by 7 percent over the next decade, childcare is a stable occupation. So, if you’re seriously thinking about how to start a daycare, you’ve come to the right place.
How To Start Your Own At Home Daycare
However, as with starting a business in any industry, your passion for your craft (or, in this case, your students) is not enough to ensure the success of your daycare business. Stress, whether financial or legal. When considering how to start a daycare business, you need to do a lot of due diligence, paying particular attention to licensing requirements and making sure your home and program are in compliance with your state’s health and safety laws.
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If you are an expert in teaching, training, supporting and facilitating large groups of young children, you should not be distracted by the work involved in starting a daycare business. Here’s what you need to know.
While every approach to starting a business looks different for every business owner, there are a few steps that every prospective daycare owner should consider when it comes to the best way to start a daycare.
Before writing a business plan for your daycare business, you need to decide what type of business you want to open. Find out if you want to start a daycare business from your home or if you want a more commercial building – different permits may be required in your area, it’s up to you. You also need to decide which age groups you want to target.
Then you have to choose the type of business, which will have a big impact on how you pay taxes and how you run your daycare business. Do you have a partner or do you run the business yourself? Also, you need to consider whether you want a job that will protect you. Converting your daycare center to an LLC can be a good move because the business will be responsible if something goes wrong.
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You also have the option of shopping at a special day care facility. This option will greatly simplify the steps you need to take to start your daily care.
Once you’ve summarized the following information about your business, you can move on to the next step in starting your daycare business: writing a business plan.
This is a step you have to take when starting any business, and it can be a lot of work, especially for those looking to start a business quickly. When you start writing your business plan, start by listing everything you want to cover.
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Your plan should include an outline, a company overview, a market analysis (including a needs assessment for a business like yours), a marketing and sales plan, and a financial plan with financial information. But don’t worry, you can always add to it as your business grows.
However, one thing you should include is market research. The last thing you want is to go through all these “how to start a daycare business” steps only to find out there is no market or too many daycares to start in the area. It’s a lucrative business.
Your business plan should also include a budget. The costs associated with opening and running a daycare center can’t be quantified, but developing a budget will give you something to work with (and some peace of mind).
Also keep in mind that day care centers are tax exempt, which can reduce your annual financial burden.
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You must also include a marketing plan. If you’re serious about starting a daycare business, chances are you’ve been caring for children in your area for a long time and have developed a network of local parents. This is one of the most important ways to attract customers (word of mouth). However, implementing a marketing plan can help define and justify your business – if you need to implement a waiting list, that’s great too!
Your marketing efforts can be simple and affordable. You can start by creating a Facebook page for your day care center and then create a business website, making sure to include your contact information and some information about your business. If possible, plan to include photos of your home and testimonials from satisfied customers.
If you’re a fan of social media, it doesn’t hurt to create an Instagram, LinkedIn, and/or Twitter account to keep your business up to date with all of your customers and prospects. Of course, just make sure that when you do, you get permission from a parent or guardian before posting a picture of your child.
Similar marketing techniques work well here. If possible, consider distributing flyers or pamphlets at nearby libraries, schools, places of worship, or any other local specialty.
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You may not need a master’s degree in education to become a daycare teacher, but every state requires a combination of licensure and certification when it comes to how to start a daycare. Visit your state’s Department of Child Care (or equivalent) to learn more about the training, experience, and certification required to legally manage a home.
For example, in New York State, a day care center manager must have one of the following:
You may find that certain requirements come up a lot when you’re looking for how to start a home or second-home day care business. First, your state may require that you and any workers you hire be CPR certified. Another safety factor to keep in mind is that you should be trained in first aid for children. You and your employees may also be required to pass a background check before they are granted a work permit.
Even if your state doesn’t require you to be licensed, you should consider it, because your license plate will cover all the boxes you need to check to operate a day care center in your state – including health and safety laws such as applicable. Food preparation and the relationship between children and adults.
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In some states, in order to obtain the necessary license or registration to start a day care business, you must first demonstrate that your day care facility complies with your state’s health and safety requirements.
So whether you decide to open a day care center in your home, or buy or rent a new home, you need to make sure your home meets zoning, fire, and health and safety standards. When it comes to starting a home daycare, you may need to make some changes to your home to comply with your state’s daycare requirements, so be sure to factor that into your budget.
Another license requirement? buy insurance. In some states, you need a license from the Department of Health and Human Services to operate your day care facility, but if you do, you’ll need liability insurance first.
Except for day care centers, insurance does not require a DHHS license. However, those day care centers that are open should seriously consider purchasing small business insurance. If you run your own business, you’re always at risk of lawsuits, but that risk increases when you’re raising someone else’s child – protect yourself as much as possible.
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There are several types of day care insurance – general liability, workers compensation, property, malpractice and damage and more – contact an insurance agent to help you choose the best policy for your business.
Answer a few questions and we’ll match you with an insurance partner who can help you get a quote.
Get a business card and business checking account early to help separate business expenses from expenses when you first start your daycare.
Separating your personal and business expenses is important for a number of reasons, including reducing the burden on you (or your accountant) during tax season. that’s it
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