Opening a home daycare is a great way to make a business from your love for children. You get to care for and teach young kids and help out families all while earning an income. Still, running a successful home daycare business means having strong organizational skills and a willingness to learn.

So, if you want to learn more about running a successful home daycare, read on.

#1 Do market research and make a business plan

When starting a home daycare, the first thing you need to do is check if there is a need for daycare in the area where you are planning to work and whether local parents are looking for more affordable child care options? Answering these questions will help you do the necessary market research.

Next, start working on your daycare business plan. This essential and strategic document will not only help you focus on the specific steps necessary to make your business ideas succeed, but it will also help you achieve your short-term and long-term objectives.

In addition, you can use it to monitor progress, hold yourself accountable and control your business’s fate. Lastly, your business plan is an excellent fundraising tool you can use to get funding or bring on new business partners later on.

#2 Purchase daycare insurance

When running a home daycare business, you need daycare insurance with comprehensive coverage. As a business owner, to protect yourself and your business from accidents, injuries, legal fees, and damaged vehicles, you need to purchase general liability, professional liability (E&O), commercial auto, workers’ compensation, and commercial property coverage.

There is always the option to go with the minimum (general liability and commercial property) as well. However, they do not protect you from all potential risks associated with owning and operating a home daycare. That being said, we would strongly advise you to be safe rather than sorry.

#3 Consider eligibility criteria, training, and licensing

Each state sets its own criteria for individuals who want to open in-home daycare businesses. In general, all home daycare operators must be at least 18 years old and have no felony convictions or child abuse arrests on their record. Also, many states require aspiring home daycare business owners to submit the results of a health examination to show that they are free of diseases that could put children at risk.

In addition, some states require you to go through specific orientations to apply to start a home daycare. As for training, you generally need to pass CPR, child health and development, and disaster preparedness.

Lastly, to do this type of business, you need to obtain licenses to provide daycare. Keep in mind that inspections of the daycare home may be required as part of the licensing process in some jurisdictions.


#4 Calculate the costs in advance

You might have enough funding saved up, or you have secured a loan from friends and family, or maybe you already have an approved business loan.

Whatever the situation, keep in mind that there are many costs involved with starting a home daycare, from equipment to licensing and advertising. That being said, set a budget to help you stay focused.

Calculating the costs for any type of startup business, especially when there are unexpected expenses, can be overwhelming. However, the best approach is to map out specific costs (and, of course, to put aside funds for emergencies as well).

#5 Obtain equipment for your daycare business

The equipment you need to run a home daycare business is generally basic and easily purchased online or in big-box stores. You can use some of the inventory you already have at home, but you will most probably need to buy things like toys, mats, markers, crayons, other art supplies, binders, papers, first-aid kits, and so on.

Furthermore, you will need to obtain cleaning supplies to clean and sanitize your facility with an effective disinfectant. Importantly, make sure you take the necessary steps to childproof your home according to the ages of the children you will be enrolling.

#6 Use online marketing to advertise your business

Marketing is crucial when running a business. As most parents start their search for child care online, it is vital to have an online marketing plan to advertise your daycare business.

That being said, consider creating a social media strategy to map and plan your business presence across social media. Use ads to target local markets and promote yourself in local Facebook groups. Importantly, make sure you register your business in online directories like Google, Yelp, and LinkedIn. As you get children, encourage parents to leave reviews on your website or social media platforms.

Finally, do not forget your website. It has to be appealing to parents and easy to navigate. If your marketing efforts are successful, that is the place where your prospects will go to find out more.

The bottom line

Successfully running a daycare at home does not have to be complicated. It is a business that has apparent legal requirements, limited startup costs, and a massive market.

However, the success of your daycare depends on you providing top-quality care to your families. And the only way to secure quality is to stay organized, learn and diligently follow the tips provided in this article.