How to Start Your Own Daycare Business

Daycare is in demand. Of all the jobs that may become obsolete in the future, daycare is not one of them. You can start your own daycare business fulfilling a need of many and along the way you may have a lot of fun and even build a really nice nest egg for yourself. Starting a daycare business may take some time and will definitely take some effort, but it will generally be a very rewarding experience!

Getting Prepared

In most jurisdictions, you cannot simply decide one day that you will open your own daycare business and proceed; there are laws that you must abide by. Most areas will require that you pass a criminal background check and that you have a suitable space that is free of hazards for the children in your care. This location may also be subject to inspection. You may have to apply and pay for a permit to have a business and you may even have other permits that you have to acquire to care for young children. If you plan on preparing meals in the space you may have to get additional health department inspections and permits. Head down to City Hall – they’ll be able to tell you exactly what you need.

You will also want to prepare yourself for possible problems. Make sure that you buy business insurance that will protect you against liability and losses in property. Insurance is an important part of running any business, but is even more important when you will be responsible for minor children who are left in your care.

In addition to the legal aspects of preparation, you will need to prepare in terms of supplies. You’ll need to buy toys, playground equipment, educational materials, and more. These items can be quite costly but will pay for themselves over time when parents are attracted to your business because of all of the supplies you have on hand.

Finding Your Space

You can choose to start your own daycare business out of your home, if you would like. Many people do this, but don’t think that you will be exempt from inspections and permits, as this is not the case. You will need to determine if you are legally allowed to run a business out of your home, as many residential areas do not allow such activities to transpire. Talk to the zoning department in your municipality.

If you are not going to run your business out of your home, you will probably need to rent or buy space. Renting/leasing is much more affordable for a new business owner and you can choose from a wide variety of spaces. Make sure that you have enough space to accommodate the number of children you would ideally have.

Hiring Help

One thing you definitely need to consider is who you are going to hire to help you. If you are only going to have a couple of children at a time, you may not need help. Check into your area’s laws about child to adult ratios, as most jurisdictions have them. You want to ensure the safety of all your children by having enough adults to supervise. You will be required to obtain a criminal background check on all employees. And don’t forget: you’ll then have to look into the tax implications of having employees in addition to filing taxes for your business.

The Job

Daycare can be a lot of fun if you have the support and business structure needed. Do your homework before hand to set up a business model that will help you create a system for accepting new children into your daycare. Also, create a schedule that all children will follow so you will have structure every day and you can tell parents what their child will be doing in your care, and when.

Running your own daycare business is not as simple as watching kids. You will also need to keep your finances running smoothly, keep books, keep your space clean and up to code so you pass inspection. The job is all encompassing and this is why a schedule and structure are so important.


Advertising for your daycare business doesn’t have to be complicated or expensive. You can advertise in your local phone books, newspapers, and newsletters. You should also consider advertising through school newsletters and websites, neighborhood association websites, and more. Anywhere that there are children is a possible advertising avenue!

How Much Money Can You Make?

This depends on many things including how much your overhead costs are, how many children you are watching, and what area of town you are in. Most well functioning daycare businesses can make $4,000 a month in profits. It may take you awhile to start profiting because of all the costs associated with starting a new business, but it is possible to earn a great living with this sort of venture while fulfilling a real need in our society.

How to Operate a Successful Daycare Business