There’s a reason why the job outlook for childcare workers is expected to rise by 6% over the next decade. Millions of families rely on these professionals every day to look after their children while they work.
Consider starting your own daycare business if you work as a nanny or babysitter. Unfortunately, like starting any other business, daycare centers require a lot of research and planning before you can open up.
We’ve made this guide to give you a better idea of what’s involved when starting this type of business.
In it, we’ll walk you through the basic steps you’ll need to go through. That way, you can decide if running a daycare business is the right call for you.
Learn About the Licensing Requirements Where You Live
Daycares are different from babysitting or nannying because they require much more strict regulation. However, it’s important to note that the rules and regulations for daycare licensing requirements will vary depending on the state and even the city you live in.
As such, it’s important to do your research before you proceed. You should contact your state’s Department of Children and Family Services (or DCFS) to find out these requirements.
As we mentioned, the requirements will vary, but most states require the following:
- Child development associate (CDA) credential
- CPR certification
- Documentation of your experience with childcare
If you feel overwhelmed by this process, consider hiring a child care consultant. These professionals can ensure that your business complies with federal and state regulations.
Create a Business Plan
You’ll likely need a loan to get your daycare business up. It is much easier if you have a dependable and thorough business plan. This document should contain important information like:
- Childcare business name
- Mission statement
- Marketing strategy
- Organization plan
- Staffing needs
- Budget
The more detail you put into your child daycare business plan, the more you show investors that you’ve thought out every angle of the business.
Also, remember that business loans are just one avenue you can go to for funding your business. It would help if you also looked into daycare grants to fund your daycare center.
Find a Location and Facility
Next, you must find a location and facility for your daycare center operations. You have a variety of options for this. First, you could run an in-home daycare operation out of your residence.
Alternatively, you could rent out a daycare business that already exists. Lastly, you can start from scratch and build an entire daycare business from the ground up.
It’s essential to take a close look at your budget before making this decision. It will dictate which option is right for you. Also, remember that location can play an important factor in whether or not clients choose you.
If your facility is located in an area with a lot of crime, parents might not want their children to go there.
Get Insurance
The amount of insurance you will need depends on the size and operations of your daycare. However, unless you’re running the daycare out of your home, you will need licensing from the Department of Health and Human Services (or DHHS).
Part of this licensing requires you to get liability insurance which protects you if a child is hurt on your property. It would help if you also looked at getting workers’ compensation insurance to protect your employees in case they’re injured.
Commercial property insurance, which protects your place of business, is also a good idea for daycare businesses.
Organize Policies and Procedures
Next, you’ll want to start developing policies and procedures for your daycare center. It doesn’t just include rules for how you want the children to behave.
It should include things like enrollment forms for prospective parents to fill out. Some other best practices include daily report forms.
These forms allow your staff to communicate with parents about their child’s progress. Staff evaluation forms also ensure that your worker’s performance properly aligns with your company’s culture.
Hire Staff
Remember the saying it takes a village to raise a kid? Well, the same is true for daycare businesses. If your operation is small, it might be possible for you to handle things entirely on your own.
But as you grow, you will need to bring on staff to help you out. Typically, states have specific requirements on the ratio of staff to children for daycare businesses.
Make sure to look for candidates with backgrounds in childcare, like education majors and previous babysitters. Do rigorous research into these individuals’ credentials and qualifications.
You should also conduct a background check on the individuals and fingerprint them in case of an investigation.
Begin Marketing
Now that your business is up and off the ground, you’ll need to get the word out. The first thing you should do is make sure that your business is listed in the local childcare directories found in your area.
You can also try advertising on childcare blogs, parent Facebook groups, local businesses, and at local events.
If you’re marketing budget is spread thin, consider engaging in social media marketing. It tends to be a more affordable advertising option, allowing you to hone in on your target market.
Appreciate Learning How to Start a Daycare Business? Keep Exploring
We hope this article helped you learn how to start a daycare business. As you can see, there are many things you need to keep track of before getting started. But if you stay organized and follow each step carefully, you should be off to a great start. And remember that you can always meet with a consultant to optimize your business. Want more articles about business advice? Keep scrolling through our website to find more topics right up your alley.
