Do you want to start a daycare business with no money from home? Here is a step-by-step guide for starting a home-based daycare with licenses, registration, setting up the daycare center, and more.
There have been a lot of changes in our lives over the years. Over the past few decades, it has gone from raising children to caring for parents. Due to the fact that most parents now work full-time, they are not always at home to take care of their children.
What is a Daycare?
An organization that provides childcare for children is called a daycare. You will be responsible for taking care of their children when they leave their children at your house. The job would be suitable for someone who enjoys working with children.
Your growth will depend on how many people you hire under you. You can expand your home daycare into a full-fledged business.
Is the Daycare Business Profitable?
The truth is, you must be aware of it from the beginning. If you plan to start a daycare business at home, you must talk to your family members first. Obtain permission from your parents if you have them. The steps below can help you start a profitable daycare business if the answer is yes.
The primary purpose of daycare is to provide all the necessary services for a fee. Despite the high demand for quality daycare services, there are only a few that offer all types of services. In the coming years, the business will see huge growth because of the enormous economic opportunity.
Here’s our guide to starting a daycare without money from home.
20 Steps to Start a Daycare Business with Almost No Money
Step 1. Conduct a market research.
In the daycare industry, location is crucial. In your immediate community, determine if there is a need for daycare services. By researching how many young couples are looking for daycare services, it is possible to determine the type of facility they prefer.
Step 2. Formulate a business plan for a daycare center that operates from a residential property.
Starting from scratch is the only way to go. Your business plan must be carefully crafted if you want to start a daycare without money. Make sure you write down all the information you will need. All aspects of your business, from licensing to insurance to marketing, must be documented. Begin by determining the way you wish to operate, the organizational structure, the target audience, the finances, and the marketing plan.
It is important to create a business plan regardless of the size of your business or investment amount. Describe the investment, the business objective, and the marketing plan. Creating a business plan on your own or with the help of an expert is an option. If you would like to write a business plan more efficiently, you can also consider using business plan software.
Step 3. Analysis of competitors.
You must research all of your competitors before starting a home daycare business. Find out which daycare services are available to your target audience after you’ve identified your target audience. If possible, find out whether the rates are good, whether customers are satisfied, etc.
Step 4. Choose a name for your daycare Business
The name of your daycare business should be catchy and attractive. As a childcare business offering childcare services, you must create a business name that is funny and relatable to parents. For more information on naming a business, check out this guide.
Step 5. Plan of Educational Program
A good educational curriculum is very important for kids. Collect information about the educational programs offered by nearby daycare centers.
Determine a specific age group of babies that you will accept for your service. This is very crucial. Ensure that you are comfortable with the age and setting up the training module.
Read Also: How to start a pet sitting business in Australia
Step 6. Set pricing
You must be very careful when setting your prices. You should charge fees that are proportional to the services you offer. It is important to charge a fair rate for your services and not undervalue them. To run a daycare business, you must also hire people. Fees should be set after considering salary expenses.
Step 7. Choosing A Location For Your Daycare Business
If you’re thinking of opening a small daycare in your home, you’re good to go. It is possible to rent a space or look for an existing daycare center if you wish to expand in the future. If you plan to move into a new location, make sure you check all the city’s zoning laws and childcare licensing guidelines.
Step 8. Set up the place.
Residential areas are the primary location of daycare businesses. It is possible to start your business either in a rented space or from home if you have enough space. The interior of the hotel should be decorated in a way that will make the kids feel at home. Additionally, make sure there is an outdoor space for extracurricular activities.
Step 9. Financing Your Home Daycare Business
As of now, you won’t be spending anything, so you can skip this step. The costs associated with operating from home are not additional since you are operating from home. Some licenses may be required, however. Alternatively, you can babysit and save some money if you do not have that much money.
Step 10. Register Your Daycare Business
You should register your daycare business and run the business legally if you want to avoid headaches. Various company formation platforms are available in different countries and states. Decide what structure is most suitable for your business under the guidance of a professional. When forming an LLC, for example, you will receive some additional benefits if you’re American.
Step 11. Daycare Business Licensing Requirements
Depending on where you live, this will vary greatly. However, most licenses and permits require general permission from the state. Your state and city may have licensing guidelines. Ensure that you are in compliance with the zoning laws of your city and the childcare/daycare licensing requirements. Open a business bank account to receive fees from parents.
Step 12. Set Up Your Policies & Procedures
Policies and procedures need to be established for your organization. Prepare handbooks and policies for families. An in-depth guide is available from Child Care Aware. You can, however, choose to offer your services without a handbook for now if you are just starting out.
Step 13. Bookkeeping & Accounting
The importance of proper bookkeeping is often overlooked by beginners. Your daycare business’s financial health will be difficult to understand if you don’t manage your finances properly. Filing annual returns might also be a problem. In this regard, it is important to choose the right accounting software.
Step 14. Formulate a plan for managing crises.
Having a crisis management plan is important because you are responsible for any problems that may arise. In times of crisis or unwanted situations, this will be helpful. It is extremely important that you are familiar with all the regulations regarding health, safety, privacy, and nutrition. You can find more information about daycare licensing requirements in your local area.
Step 15. Purchasing furnishings.
A few special supplies and furniture will be needed. Since the kids will stay at your place, you might have to purchase games, furniture, and other items for them. In-depth references can be found in any Daycare Guide.
Step 16. Safety measures
Having all the necessary safety measures in place is essential for a daycare business. It is important to set up a number of safety measures. Childproofing your home is the first step you must take when operating from home. Additionally, be sure to have emergency supplies such as fire extinguishers on hand.
Step 17. Hiring staff
Daycare staff may be needed as your business expands. Verify the criminal background of the applicant. Each employee’s record must be rigorously verified. The quality of your daycare center depends on the quality of your staff because it is a service-oriented business.
Step 18. Insurance You May Need For Your Home Daycare
Some guidelines require insurance, even if you don’t need it in some states. Liability insurance is the most important policy you will need. Property insurance and workers’ compensation are secondary insurances.
Step 19. Listing Your Home Daycare Facility
To reach interested clients directly, you need to list your home daycare in all local childcare directories. You will want to list your daycare facility in all possible local directories to receive direct inquiries as a home daycare.
Step 20. Marketing Your Home Daycare Business With No Money
Getting the word out via parent groups, local events, and communities is the best way to promote your home daycare. Get free publicity for your facility by using social media. Your new daycare business can even be advertised to people in your area.
Your small business can be promoted in many ways at a low cost. For more information, read this article.
You will have an advantage if you have formal experience in this field if you plan to start a daycare. It would be very helpful to have a degree in child education. Attend a short-term Montessori course if you don’t have one. Become involved in an existing daycare center and learn the job extensively if you have the opportunity.
Last but not least, daycare is a business for those who take the responsibility seriously. You are responsible for small children here. Therefore, you should be prepared for any action that may be necessary. Make sure you are aware of your personal traits and characteristics. In a difficult situation, you must be able to maintain control. It is also important that you have the ability to mix with children.
What daycare services will you offer?
Clients will have different needs. Providing different services to children will be a part of your job as a daycare owner. Providing daycare for a child may require preparing meals, serving snacks, and doing activities for the child such as playtime, reading, and so on.
As part of all the above services, you also need to change diapers for infants and small children.
How Much Money Can You Make With A Home Daycare?
Your specific needs and location will determine what you need. Daycare services can pay well if you offer high-quality services and have a steady clientele. Coming to growth potential, a home daycare business can grow big depending on your quality of services and demographics.
A monthly fixed rate or an hourly rate can be charged to your clients depending on their needs.
There will never be an end to the daycare business. You can start a successful daycare business from home today with almost no money, even though it is going to grow multiple times in the coming years!