How to Start a Home Daycare: What Every Mom Needs to Know

July 3, 2024

Why Starting a Home Daycare is Important

If you’ve ever thought about starting a home daycare: what every mom needs to know, you’re in the right place. Many stay-at-home moms are looking for flexible work-from-home opportunities that allow them to contribute financially while balancing family responsibilities. Here’s a quick summary to help you understand the basics:

Work from home: Care for your own children while earning an income.
Be your own boss: Set your own schedule and make decisions that suit your family.
Community impact: Provide valuable services to families in your neighborhood.
Income potential: Earn money doing work you love with flexible hours.

The journey to opening a home daycare can be both rewarding and challenging. It lets you stay close to your own kids, supports your community, and allows you to create a fulfilling career path.

I’m Annette Lode. With years of experience in childcare and coaching, I’m here to guide you through starting a home daycare: what every mom needs to know. Let’s dive into the details and make your dream a reality.

Why Start a Home Daycare?

Starting a home daycare offers many benefits that make it an attractive option for moms. Here are the top reasons why many are choosing this path:

Work from Home

Running a home daycare lets you work from home and take care of your own children at the same time. This flexibility means you can be there for your kids while also earning an income.

For example, consider the story of a mom from Salt Lake City who found herself juggling work and childcare. She realized that starting a home daycare was the perfect solution to balance both responsibilities.

Be Your Own Boss

By starting a home daycare, you become your own boss. You set your own schedule and make decisions about how your daycare operates. This autonomy allows you to create a work environment that suits your lifestyle and values.

Laura Matsuyama, a successful home daycare provider, shared her experience: “When I first started, I was working Saturdays plus every holiday. Then my daughter said, ‘Mom, what are you thinking? You are going to kill yourself!’ I adjusted my schedule, and now I have time for my family and myself.”

Community Impact

Opening a home daycare allows you to give back to your community by providing a safe and nurturing environment for children. Many parents struggle to find reliable childcare, and you can be the solution they need.

Melinda, who has a background in teaching and caring for her son with autism, dreams of opening her own daycare. She knows that her experience and passion for childcare can make a significant difference in her community.

Income Potential

Running a home daycare can be a lucrative business. Depending on your location and the number of children you care for, you can earn a substantial income. For example, some home daycares charge $150 per week per child. If you care for four children, that’s $600 a week or $2,400 a month.

A mom from church shared her “aha moment” when she started babysitting for $125 a week per child. Soon, she was watching three children and bringing in $500 a week.

Real-Life Examples

Full-Day Care: You watch children for the entire day while their parents are at work. This can be anywhere from 5 to 9 hours, depending on the parents’ schedules.
Before and After School Care: You take care of children before school and after they return. This is usually only 1-4 hours but can still be quite profitable.

Key Takeaway

Starting a home daycare is a great way to work from home, be your own boss, make a positive impact on your community, and earn a good income. If you love children and want a fulfilling career, this could be the perfect path for you.

Next up, we’ll discuss the qualifications you need to get started.

Are You Qualified?

Starting a home daycare is a rewarding venture, but you need to ensure you meet the necessary qualifications. Here’s what you need to know about experience, state requirements, and licensing.

Experience

You don’t need an advanced degree to start a home daycare. What you do need is real, valuable experience with infants and toddlers. Being a parent can be enough in many states. Some of the most successful daycare providers are moms who wanted to stay home with their own children while earning an income. Others have years of experience in early childhood education or childcare settings.

State Requirements

Each state has different requirements for starting a home daycare. For instance, some states refer to home daycares as Family Child Care (FCC) and have specific guidelines for obtaining a license. You’ll need to:

Complete online training: Most states require you to complete specific training courses. These courses cover everything from child development to safety protocols.
Pass background checks: You and any other adults in your home will need to pass criminal background checks.
Home inspection: Your home will need to pass an inspection to ensure it meets health and safety standards.

The licensing process can take 2 to 3 months in states like Massachusetts and New York. It involves filing paperwork, completing online training, and passing a home inspection.

Licensing

Getting your daycare license is crucial. Licensing ensures that you meet all health and safety standards and allows you to legally operate your daycare. Here’s a general overview of the steps:

Research State-Specific Requirements: Understand the exact requirements in your area.
Complete Necessary Training: Enroll in any required training programs.
Background Checks: Submit to background checks for yourself and any adults in your home.
Home Inspection: Prepare your home for an inspection to ensure it meets all safety and health regulations.
Submit Paperwork: File all necessary paperwork with your state’s licensing body.

Each state has its own set of rules and terminology, so make sure you understand what’s required where you live.

Licensing and Regulations

Navigating the licensing and regulations for starting a home daycare can seem overwhelming, but it’s a crucial step to ensure your daycare is safe and legal. Here’s what you need to know:

State-Specific Guides

Each state has unique requirements for licensing a home daycare. Some states, like Massachusetts and New York, require online training, background checks, and home inspections. Others may still use paper applications and have different timelines. For example, in Massachusetts, the process generally takes 2 to 3 months.

Online Training

Most states require some form of online training before you can open your daycare. These trainings cover essential topics like child safety, first aid, and early childhood education principles. Completing these courses ensures you’re prepared to provide high-quality care.

Background Checks

Background checks are mandatory in almost every state. This process typically includes a criminal background check and may also involve fingerprinting. It’s designed to ensure that anyone who has access to the children in your care is trustworthy and has no history of offenses that could endanger children.

Home Inspection

A home inspection is another critical step. This inspection ensures your home meets all health and safety standards. Here are some of the key areas inspectors will check:

Fire Safety: Ensure you have working smoke detectors and a clear fire escape route. The local Fire Chief often conducts this part of the inspection.
Safe Sleeping Quarters: You must provide safe sleeping areas for naps, including cribs or nap mats that meet safety standards.
Childproofing: All cabinets, furniture, and windows must be secured to prevent accidents. Electrical outlets should be covered, and hazardous materials must be out of reach.

The inspection process might seem rigorous, but it’s all about creating a safe environment for the children.

Setting Up Your Home Daycare

Creating a safe and engaging environment is crucial when starting a home daycare. Here are the essentials you’ll need:

Children’s Furniture, Equipment, and Toys

Furniture: Invest in child-sized tables and chairs. These make activities like arts and crafts more accessible.

Equipment: For gross motor skills, have large soft blocks and climbing structures. For fine motor skills, use puzzles, play-dough, and toy cars.

Toys: Ensure you have age-appropriate toys. Sensory items like water tables and textured books are excellent for sensory play.

Safety Tip: Always check toys for choking hazards.

Nap Time Needs

Infants: Each infant needs their own crib or pack-and-play.

Older Children: Provide mats or cots, spaced out for safety.

Bedding: Every child should have their own bedding. Store these items in a specific area to keep things organized.

Mealtime Supplies

Highchairs: Every infant and toddler should have a highchair.

Utensils: Stock up on kid-friendly plates, cups, and utensils.

Tip: Having a designated eating area helps keep things clean and organized.

Entryway Items

Storage: Create cubbies or hooks for each child to store jackets, shoes, and backpacks.

Documentation: This is also a good spot to post key documents like your license, CPR/first aid certification, emergency contacts, and evacuation plan.

Bathroom and Changing Station

Bathroom: Include a child-sized toilet, sink, and step stool. Ensure the door has a safety release from the outside.

Changing Station: A sturdy table with sanitary paper, diaper storage, and a locking trash can or diaper pail is essential.

Outdoor Space

Play Area: Whether it’s your backyard or a nearby park, outdoor play is crucial. Ensure the area is safe and secure.

First Aid Kit

Portability: Make sure your first aid kit is portable. You’ll need to bring it anytime you leave the house with the children.

Health and Safety Requirements

Detectors: Install smoke and carbon monoxide detectors.

Exit Signs: Clearly mark exits.

Safety Gates: Use gates at stairs and locks on cabinets.

Lead Inspection: Ensure there is no cracked or peeling paint.

Furniture: Secure furniture that could fall, like bookshelves and televisions.

Pets: Have up-to-date vaccination records for any pets. Keep litter boxes in inaccessible rooms.

By setting up your home with these essentials, you’ll create a safe, engaging, and organized environment for the children in your care. Next, we’ll dive into the business side of running your home daycare.

Business Setup

Starting a home daycare: what every mom needs to know involves not just creating a safe and engaging environment for children, but also setting up your business properly. Here’s how to get started:

Sole Proprietorship

Most home daycares operate as sole proprietorships. This means you own 100% of the business, and your personal and business income are the same. The best part? It’s simple to set up and doesn’t require formal steps or additional paperwork.

EIN (Employer Identification Number)

An EIN is crucial for your home daycare. It allows the government to track your business without using your personal Social Security Number (SSN). Plus, parents will need your EIN for their IRS tax forms to take advantage of child care tax breaks.

Taxes

Handling taxes as a home daycare provider is different from being an employee. Here are the key points:

Quarterly Estimated Taxes: Instead of having taxes withheld from a paycheck, you’ll pay taxes quarterly. This covers your income tax, social security, and medicare contributions.
Track Business Expenses: Start tracking your expenses from day one. This can include supplies, utilities, and even a portion of your home maintenance costs.
Consult a CPA: It’s a good idea to consult with a Certified Public Accountant (CPA) after 3 to 6 months to help you estimate your quarterly tax payments accurately.

Insurance

Your homeowner’s insurance won’t cover your daycare business. You need a General Liability insurance policy. This protects you if someone gets injured on your property. Such policies are affordable, usually around $50 a month, and offer up to $3 million in coverage.

By setting up your home daycare as a sole proprietorship, obtaining an EIN, managing your taxes properly, and getting the right insurance, you’ll be well-prepared for the business side of your new venture.

Next, let’s explore how to find your first families and get your daycare up and running!

Finding Your First Families

Starting a home daycare can be exciting, but finding your first families is crucial. Here’s how to get started:

Advertising

Before you even get your license, start advertising. Parents usually begin their search for child care online. Create a marketing plan that will make your daycare visible to them.

Online Profiles

Website: Set up a simple website with basic information about your daycare. Include your story, services, and contact details.

Google My Business: Register your daycare on Google My Business. This will help parents find you when they search for local daycares.

Facebook: Update your Facebook profile and join local parenting groups. Introduce yourself and share your daycare details.

Local Marketing

Flyers and Business Cards: Design flyers and business cards. Post them on community bulletin boards, at farmers’ markets, and at local events like PTO meetings or soccer games.

Word of Mouth: Tell friends, family, and neighbors about your new daycare. Word of mouth can be very effective.

Enrollment Process

When a parent shows interest, follow these steps:

Schedule a Tour: Invite them to visit your daycare. Show them around and discuss your program.
Send a Contract: If they’re interested, send them a contract outlining your policies and fees.
Get a Deposit: Secure their spot by collecting a deposit.
Enroll the Child: Complete the necessary paperwork to enroll the child in your program.

Finding your first families might seem overwhelming, but with a solid plan, you’ll fill your spots in no time. Next, we’ll discuss the daily operations that will keep your daycare running smoothly.

Daily Operations

Running a home daycare means juggling various tasks daily. Here’s how to keep things organized and efficient:

Attendance Records

Always keep a written record of attendance. This is crucial for safety and accountability. Whenever you and the kids leave the property, take this record with you. It’s not just a formality; it’s essential for emergency situations.

Observation Records

Maintain Records of Observation for anything out of the ordinary. If a child exhibits unusual behavior or gets hurt, document it immediately. Discuss these observations with the parents as soon as possible. This protects you from liability and keeps parents informed.

Program Plans

Every week, create your program plans. This involves planning activities, meals, and nap times. Make sure you have all the supplies you need for the week ahead. This not only keeps the kids engaged but also helps you stay organized.

Business Expenses

Spend an hour each week reviewing and recording your business expenses. Keep all receipts related to your daycare. This will make tax season much easier and help you understand your profit margins.

Cleaning Schedule

A clean daycare is a safe daycare. Use nap time on Friday for a deep clean. This way, you can relax over the weekend knowing your space is ready for the new week. But remember, you can’t leave children unsupervised during nap time, so plan accordingly.

Monthly and Quarterly Tasks

Don’t forget to conduct and log an evacuation drill each month. Test your smoke detectors to ensure they’re working. Quarterly, complete and share progress reports with parents and pay your estimated taxes.

Yearly Tasks

Annually, complete your required hours of certified continuing education, renew your pediatric CPR certification, and get updated permission forms from parents.

By staying on top of these daily operations, you’ll ensure your daycare runs smoothly and safely. Next, we’ll answer some frequently asked questions about starting a home daycare.

Frequently Asked Questions about Starting a Home Daycare

What are the disadvantages of an in-home daycare?

Running a home daycare has its perks, but it also comes with challenges:

Education/Certification: While you don’t need a Master’s Degree in Early Childhood Education, some states require specific training or certification. For instance, completing online training and background checks is mandatory in many states like Massachusetts and New York.

Substitute Caregivers: Finding reliable substitute caregivers can be tough. If you’re sick or need a day off, you’ll need someone qualified to step in. This can be a challenge because substitutes must also pass background checks and meet state requirements.

Resources: Home daycares often have fewer resources compared to larger centers. This can limit the variety of activities and materials you can offer. However, you can still create a rich environment with thoughtful planning and community resources.

TV Time: It’s tempting to use TV as a way to keep kids occupied, but excessive screen time isn’t recommended. Instead, focus on developmentally appropriate activities that stimulate learning and growth.

How many kids can you watch without a license in AZ?

In Arizona, you can care for up to 4 children without needing a license. However, this number includes your own children if they are under the age of 12. If you exceed this limit, you must obtain a Family Child Care License. Compensation for care is also a factor; if you receive any form of payment, licensing rules apply.

How many kids can you watch without a license in TN?

In Tennessee, you can watch up to 5 unrelated children without a license. However, this care can only be provided for up to 3 hours a day. If you plan to care for more children or for longer hours, you’ll need to go through the licensing process.

By understanding the disadvantages of an in-home daycare and the specific regulations in states like Arizona and Tennessee, you can better prepare for the challenges ahead.

Conclusion

Starting a home daycare can be a rewarding experience that allows you to work from home, be your own boss, and make a positive impact on your community. From setting up your space to understanding licensing requirements, we’ve covered all the essential steps to get you started.

At BestMomJobs.com, we offer tailored resources to help you navigate the complexities of starting your own home daycare. Our platform provides a wealth of information on flexible work and remote job opportunities, ensuring that you can maintain a healthy work-life balance while pursuing your passion for childcare.

Whether you’re looking to supplement your family’s income or seeking a fulfilling career that allows you to stay close to your own children, starting a home daycare could be the perfect solution. Explore our site for more tips, guides, and support to make your home daycare dreams a reality.

You’re not alone in this journey. With the right planning and resources, you can create a successful and enjoyable home daycare that benefits both you and your community.